Bill Text: MI HB5997 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Occupations: business licensing and registration; statewide database of transactions by secondhand dealers, precious metal and gem dealers, and pawnbrokers; require participation by precious metal and gem dealers. Amends secs. 3, 4, 5 & 8 of 1981 PA 95 (MCL 445.483 et seq.) & adds sec. 4a.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2020-08-06 - Bill Electronically Reproduced 07/23/2020 [HB5997 Detail]
Download: Michigan-2019-HB5997-Introduced.html
HOUSE BILL NO. 5997
July 23, 2020, Introduced by Reps. Wakeman and
Marino and referred to the Committee on Regulatory Reform.
A bill to amend 1981 PA 95, entitled
"The precious metal and gem dealer act,"
by amending sections 3, 4, 5, and 8 (MCL 445.483, 445.484, 445.485, and 445.488), section 3 as amended by 2006 PA 295 and sections 4 and 5 as amended by 1990 PA 34, and by adding section 4a.
the people of the state of michigan enact:
Sec. 3. (1) A dealer shall not conduct business in a local governmental unit in this state unless the dealer has obtained a valid certificate of registration from that local governmental unit or local police agency.
(2) This section does not require an internet drop-off store complying that complies with subsection (3), or a person an individual engaged in the sale, purchase, consignment, or trade of precious items for himself or herself, to obtain a registration under this act.
(3) An internet drop-off store in compliance that complies with the following conditions is exempt from registration as a dealer under this act:
(a) Has a fixed place of business within in this state, except that he or she the dealer exclusively transacts all purchases or sales by means of the internet and the purchases and sales are not physically transacted on the premises of that fixed place of business.
(b) Has the personal property or other valuable thing available on a website for viewing by photograph, if available, by the general public at no charge. , which website shall be The dealer shall ensure that the website is searchable by zip code or state, or both, . The website viewing shall include, and that the website includes for viewing, as applicable, any serial number, make, model, and other unique identifying marks, numbers, names, or letters appearing that appear on the personal property or other valuable thing.
(c) Maintains records of the sale, purchase, consignment, or trade of the personal property or other valuable thing for at least 2 years. , which records shall The dealer shall ensure that the records contain a description, including a photograph, if available, and, if applicable, any serial number, make, model, and other unique identifying marks, numbers, names, or letters appearing that appear on the personal property or other valuable thing.
(d) Provide the local police agency with any name under which it conducts business on the website and access to the business premises at any time during normal business hours for purposes of inspection.
(e) Within 24 hours after a request from a local police agency, provide an electronic copy of the seller's or consignor's name, address, telephone number, driver license number and issuing state, the buyer's name and address if applicable, and a description of the personal property or other valuable thing as described in subdivision (c). The provision of information shall be in a format acceptable to the local police agency but shall at least be in a legible format and in the English language.
(e) (f) Provide that payment for the personal property or other valuable thing is executed by means of check or other electronic payment system , so long as the payment is and not made in cash. No payment shall be provided to the A dealer shall not pay a seller until the item is sold.
(f) (g) Immediately remove the personal property or other valuable thing from the website if the local police agency determines that the personal property or other valuable thing is stolen.
(4) A dealer shall apply to the local police agency for a certificate of registration, and pay a fee not to exceed $50.00 to cover the reasonable cost of processing and issuing the certificate of registration, by disclosing the following information:
(a) The name, address, and thumbprint of the applicant.
(b) The name and address under which the applicant does business.
(c) The name, address, and thumbprint of all agents or employees of the dealer. Within 24 hours after hiring a new employee, the dealer shall forward to the local police agency the name, address, and thumbprint of the new employee.
(5) A dealer or an agent or employee of a dealer who that is convicted of a misdemeanor under this act or under section 535 of the Michigan penal code, 1931 PA 328, MCL 750.535, shall not be is not permitted to operate as a dealer within this state for a period of 1 year after conviction.
(6) A dealer or an agent or employee of a dealer who that is convicted of a felony under this act or under section 535 of the Michigan penal code, 1931 PA 328, MCL 750.535, shall not be is not permitted to operate as a dealer within this state for a period of 5 years after the conviction.
(7) This act shall not be construed to excuse a dealer from complying with the local zoning ordinance or any local ordinance regulating commercial activities. However, a local government may not pass an ordinance, or enforce an existing ordinance, that provides additional standards which must be met before the issuance of a certificate of registration.governmental unit shall not adopt or enforce a local law, ordinance, resolution, or rule that duplicates, extends, revises, or conflicts with any provision of this act.
(8) Upon receipt of the When it receives an application described in subsection (4), the local police agency shall issue a certificate of registration in accordance with this section.
(9) Upon receipt of the When it receives a certificate of registration from the local police agency under subsection (8), the dealer shall post it in a conspicuous place in the dealer's place of business.
(10) Not less than 10 days before a dealer changes the name or address under which the dealer does business, the dealer shall notify the local police agency of the change.
Sec. 4. (1) A dealer shall maintain a permanent record of each transaction, on a record of transaction forms provided for form described in subsection (6), (3), legibly written in ink in the English language, . Each record of transaction form shall be filled out in quadruplicate and completed by the dealer or agent or employee of the dealer. One copy of the form shall go to the appropriate police agency or sheriff's department pursuant to subsection (3); The dealer shall provide 1 copy shall go of the form to the customer ; and 1 copy shall be retained by the dealer pursuant retain 1 copy, subject to subsection (5). (4). At the time a dealer receives or purchases a precious item, the dealer or the agent or employee of the dealer shall insure ensure that the following information is recorded accurately on a record of transaction form:
(a) The dealer dealer's name, address, and certificate of registration number.
(b) A general complete and accurate description of the precious item or precious items received or purchased, including the type of metal or precious gem. In the case of watches, the description shall contain the name of the maker and the number of both the works and the case. In the case of jewelry, all letters and marks inscribed on the jewelry shall be included in the description.
(c) The date and time of the transaction and the transaction number described in subsection (2).
(d) The name of the person individual conducting the transaction.
(e) The first and last name, date of birth, driver's driver license number or state of Michigan personal identification card number, and street and house number of the customer, together with a legible imprint of the right thumb of the customer, or if that is not possible, of the left thumb or a finger of the customer. However, the thumbprint or fingerprint shall is only be required on the record of transaction form retained by the dealer. The dealer shall make the thumbprint or fingerprint shall be made available to a police agency during the course of a police investigation involving a precious item or items described on the record of transaction. After Except as provided in section 4a, after a period of 1 year from the date of the record of transaction, if a police investigation concerning a precious item or items described on the record of transaction has not occurred, the dealer and any police agency or sheriff's department holding that holds a copy of the record of transaction shall destroy, and not keep a permanent record of, the record of transaction. A dealer who that goes out of business or changes his or her its business address to another local jurisdiction either within or out of this state shall transmit the records of all transactions, made by the dealer within 1 year before his or her closing or moving, the dealer closes or moves, to the local police agency.
(f) The price to be paid by the dealer for the precious item or precious items.
(g) The form of payment made to the customer; check, money order, bank draft, or cash. If the payment is by check, money order, or bank draft, the dealer shall indicate the number of the check, money order, or bank draft.
(h) The customer's signature.
(2) The A dealer shall number each record of each a transaction shall be numbered consecutively, commencing with the number 1 and the calendar year.
(3) Within 48 hours after receiving or purchasing a precious item, the dealer shall send a copy of the record of transaction form to the local police agency and, if the record of transaction form indicates that the customer resides outside the jurisdiction of the local police agency, shall send a copy of the record of transaction form to the police agency of the city, village, or township in which the customer resides as set forth on the record of transaction, or, if that city, village, or township does not have a police agency, to the sheriff's department of the county in which the customer resides as set forth on the record of transaction. The record of transaction forms received by a police agency or sheriff's department shall not be open to inspection by the general public. Each police agency or sheriff's department holding record of transaction forms shall be responsible for insuring the confidentiality of the record of transaction forms and insuring that the record of transaction forms are used only for the purpose for which they were received.
(3) (4) The A dealer shall make each record of transaction forms of a dealer form and each precious item received shall be it receives open to an inspection by the county prosecuting attorney, the local police agency, the police agency or sheriff's department of the local governmental unit in which the customer resides, and the Michigan department of state police, at all times during the ordinary business hours of the dealer. As a condition of doing business, a dealer is considered to have given consent to the inspection prescribed by described in this subsection. The record of transaction forms of a dealer shall are not be open to inspection by the general public.
(4) (5) Except as otherwise provided in this section, a dealer shall retain each record of a transaction shall be retained by the dealer for not less than at least 1 year after the transaction to which the record pertains.
(5) (6) The form of the record of transaction shall have an 8-1/2- by 11 11-inch size and shall be as follows:
(Dealer's Name and Address)
"Record of Transaction
Dealer Certificate # ______________ #_________________________
(Printed on (Transaction number
the form) printed on the form)
(1) Description of Property - ________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
(2) _______________, 1920___ (3) ____________________________
(Date and time) (Name of Dealer/Employee)
(4) ____________________, _____________________ 19____
(Name of Customer) (Date of Birth)
____________________, ____________________________
(Driver's license No./ (Street Address)
Mich. Personal ID Number) __________________ ________
(City & State) (Zip)
(5) ______________________ ______________________________
(Price Paid) (County of Residence)
(6) _____________________________
(Check no., bank draft
no., money order no., or cash)
______________________________________________________________
(Name of police agency of city, village,
or township in which customer resides)
Thumbprint ___________________________"
(Signature of Customer)
(6) (7) As used in this section, "customer" means the person individual from whom the dealer or the agent or employee of the dealer receives or purchases a precious item.
Sec. 4a. (1) Within 48 hours after a transaction in which it receives or purchases a precious item, a dealer shall electronically transmit the following information to the department, in a format determined by the department, for inclusion in the database:
(a) A description of the precious item that includes the information described in section 4(1)(b).
(b) If applicable, the serial number or model number of the precious item.
(c) The purchase price of the precious item.
(d) The 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 precious item, or authorized the purchase or receipt of the precious item, 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 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 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 dealer under subsection (2).
(4) A dealer shall pay an annual fee of not more than $250.00 for each of its registered locations for the implementation and maintenance of the database. The department shall determine the specific amount of the fee and collect the fee.
(5) As used in this section:
(a) "Database" means the statewide electronic database implemented and maintained by the department under section 6 of 1917 PA 273, MCL 446.206.
(b) "Department" means the department of state police.
Sec. 5. A precious item received by a dealer shall be retained by the dealer for 9 15 calendar days after it was received, without any form of alteration other than that required to make an accurate appraisal of its value.
Sec. 8. (1) A dealer who that knowingly violates section 3(7), 3(8), 4(1)(e), 4(3), 4(4), or 4(5) 4a is guilty of a misdemeanor , punishable by imprisonment for not more than 1 year , or a fine of $1,000.00, or both.
(2) A dealer who that violates section 3(7), 3(8), 4(1)(e), 4(3), 4(4), or 4(5) 4a a subsequent time is guilty of a felony , punishable by imprisonment for not more than 2 years , or a fine of $5,000.00, or both.
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. 5995 (request no. 05255'19).
(b) Senate Bill No.____ or House Bill No. 5996 (request no. 05989'20).
