Bill Text: MI HB5996 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Occupations: junk and secondhand dealers; statewide database of transactions by secondhand dealers, precious metal and gem dealers, and pawnbrokers; require participation. Amends secs. 2, 4 & 5 of 1917 PA 350 (MCL 445.402 et seq.) & adds sec. 4a.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2020-08-06 - Bill Electronically Reproduced 07/23/2020 [HB5996 Detail]
Download: Michigan-2019-HB5996-Introduced.html
HOUSE BILL NO. 5996
July 23, 2020, Introduced by Reps. Wakeman and
Marino and referred to the Committee on Regulatory Reform.
A bill to amend 1917 PA 350, entitled
"An act to regulate and license second hand dealers and junk dealers; and to prescribe penalties for the violation of the provisions of this act,"
by amending sections 2, 4, and 5 (MCL 445.402, 445.404, and 445.405), as amended by 2018 PA 329, and by adding section 4a.
the people of the state of michigan enact:
Sec. 2. (1) The mayor of a city or chief executive
officer of a county or village may grant a license to a person that authorizes
that person to carry on the business of a second hand dealer or junk dealer in
that city, county, or village, subject to the provisions of this act. For
purposes of this subsection, a second hand dealer that uses an automated
recycling kiosk to receive articles is considered to be carrying on the
business of a second hand dealer in the city, county, or village in which the
kiosk is installed.
(2) A license granted
under this section must designate the particular place where the person shall
carry on the business of a second hand dealer or junk dealer. The person must
conduct that business only in the place designated in the license.
(3) The term of a license
granted under this section is 1 year from date of issuance unless sooner
revoked for cause. The license is not transferable. The legislative body of any
city, or the trustees and chief executive officer of any county or village,
shall establish the fee for processing and issuing a license in accordance with
its charter or local ordinance, based on the cost of issuance and
administration of that license.
(4)
A city, village, or county shall not adopt or enforce a local law, ordinance,
resolution, or rule that duplicates, extends, revises, or conflicts with any
provision of this act.
(5)
(4) The A city, village, or county may inspect the premises of a
licensed second hand dealer or junk dealer during normal business hours. As
used in this subsection, "premises" includes the place where an
automated recycling kiosk is installed.
Sec. 4. (1) A
second hand dealer or junk dealer shall post in a conspicuous place in or on
its place of business a sign that states its name and occupation.
(2) A second hand dealer or junk dealer shall make and
maintain a separate book or other written or electronic record, numbered
consecutively, and open to inspection by a member of a local law enforcement
agency and the Michigan state police, in which the dealer writes or enters in
the English language at the time of the purchase or exchange of any second hand article,
all of the following:
(a) A description of the article, including, but not limited to, any serial number, model
number, or other identifying number or mark that appears on the article.
(b) The name, date
of birth, description, fingerprint, operator's or chauffeur's
license or state identification number, registration plate number, and address
of the individual from whom the article is purchased and received. The second
hand dealer or junk dealer shall make a copy of the operator's license,
chauffeur's license, or state identification card as part of the book or
record.
(c) The day
and hour date and
time the purchase or exchange is made.
(d) The location from which the item is obtained.
(e) Subject to subsection (3), the method of payment.
(f) A transaction number.
(g) The purchase price of the article, or if the article was
taken in exchange, the value of the item exchanged.
(3) A second hand dealer or junk dealer must pay for an item
by check or by an electronic payment system, except that if payment is made by
an automated recycling kiosk, the second hand dealer may pay cash for the item.
Sec. 4a. (1) Within 48 hours after a transaction in which it receives or purchases a second hand article described in subsection (5), a second hand dealer or junk dealer shall electronically transmit the following information to the department, in a format determined by the department, for inclusion in the database:
(a) A full and complete description of the article.
(b) If applicable, the serial number, model number, or other identifying number or mark that appears on the article.
(c) The purchase price of the article or the value of any item given in exchange for the article.
(d) The second hand dealer's or junk dealer's name and address.
(e) The date and time of the transaction and the name of the employee of the dealer who purchased or received the article, or authorized the purchase or receipt of the article, on the dealer's behalf.
(f) The transaction number.
(g) The customer's date of birth; operator's license number or other identification number; street address, including city, village, or township of residence, state, and zip code; and county of residence.
(h) The number of the dealer's check, bank draft, or money order or the notation "cash" if the dealer paid the purchase price in cash.
(i) The customer's thumbprint.
(2) A second hand dealer or junk dealer shall retain an electronic copy of any information transmitted under subsection (1) for at least 5 years in a format determined by the department.
(3) Within 180 days after the effective date of this section, each second hand dealer or junk dealer shall implement any software that the department determines is necessary to administer the collection of information required under this section and the retention of information by the second hand dealer or junk dealer under subsection (2).
(4) A second hand dealer or junk dealer shall pay an annual fee of not more than $250.00 for each of its licensed locations for the implementation and maintenance of the database. The department shall determine the specific amount of the fee and collect the fee.
(5) Subsection (1) only applies to a second hand article received or purchased by a second hand dealer or junk dealer that meets 1 of the following:
(a) A second hand article on which a serial number appears.
(b) A second hand article, other than an article described in subdivision (a), for which the price paid by the dealer, or the value of the item or items given in exchange for the article, is $15.00 or more.
(6) As used in this section:
(a) "Customer" means an individual from whom a second hand or junk dealer purchases or receives a second hand article.
(b) "Database" means the statewide electronic database implemented and maintained by the department under section 6 of 1917 PA 273, MCL 446.206.
(c) "Department" means the department of state police.
Sec. 5. (1) Except
as provided in subsection (2), a second hand dealer or junk dealer shall retain
each article it purchases or receives in exchange for at least 15 days before
disposing of it, in an accessible place in the building where the second hand article is
purchased and received. The dealer shall attach a tag to the article in a
visible and convenient place , and write on the
tag the number that corresponds with the entry number in the book or other
record.
(2) A second hand dealer that operates an automated recycling
kiosk may store articles acquired at the kiosk in a secure off-site location. A
dealer must retain an article stored under this subsection for 30 days, and
upon request return that article to a law enforcement officer of this state without
cost.
(3) A second hand dealer or junk dealer shall prepare and
deliver on Monday of each week to the local law enforcement agency of the local
unit of government in which the dealer's business is carried on, before 12
noon, a legible and correct paper or electronic copy, in the English language,
from the book or other written or electronic record, that contains a
description of each article purchased or received in exchange during the
preceding week, the hour and day when the purchase or exchange was made, a
description of the individual from whom it was purchased or received in
exchange, and a copy of the documentation required under section 4 concerning
the individual from whom it was purchased or received in exchange. The
statement shall be verified in a manner acceptable to the chief of police or
chief law enforcement officer of the local law enforcement agency.
(3) (4) This section does not apply to old rags, waste
paper, and household goods except radios, televisions, record players, and
electrical appliances and does not require a second hand dealer or junk dealer
to retain articles purchased from a person that has a fixed place of business
after those articles are reported under subsection (3).section 4a.
Enacting section 1. This amendatory act takes effect
90 days after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 100th Legislature are enacted into law:
(a) Senate Bill No.____ or House Bill No. 5997 (request no. 05113'19).
(b) Senate Bill No.____ or House Bill No. 5995 (request no. 05255'19).
