Bill Text: MI SB0304 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Occupations; junk and secondhand dealers; payment requirements for certain scrap metal purchase transactions; modify. Amends sec. 6 of 2008 PA 429 (MCL 445.426).
Spectrum: Moderate Partisan Bill (Republican 7-1)
Status: (Passed) 2015-06-17 - Assigned Pa 0080'15 With Immediate Effect [SB0304 Detail]
Download: Michigan-2015-SB0304-Engrossed.html
SB-0304, As Passed House, May 27, 2015
SENATE BILL No. 304
April 29, 2015, Introduced by Senators KOWALL, ROBERTSON, HORN, EMMONS, BIEDA, MARLEAU, BOOHER and HILDENBRAND and referred to the Committee on Economic Development and International Investment.
A bill to amend 2008 PA 429, entitled
"Scrap metal regulatory act,"
by amending section 6 (MCL 445.426), as added by 2014 PA 99.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) In a purchase transaction of any of the following
items, the only methods of payment a scrap metal dealer may use to
pay a seller are a direct deposit or electronic transfer to the
seller's account at a financial institution; subject to subsection
(5), payment with a check or money order described in section
5(1)(a)(i); or, subject to subsection (5), payment with an
electronic payment card or encrypted receipt described in section
5(1)(a)(ii):
(a) Catalytic converters, unless the seller is an automotive
recycler as defined in section 2a of the Michigan vehicle code,
1949 PA 300, MCL 257.2a; a manufacturer or wholesaler of catalytic
converters; or a muffler shop, tire store, or other retail business
that sells converters separately or as part of an exhaust system.
(b) Air conditioners, air conditioner evaporator coils or
condensers, or parts of air conditioner evaporator coils and
condensers.
(c) Copper wire, including copper wire that is burned in whole
or in part to remove the insulation, copper pipe, or copper
fittings.
(2) Representatives of a group of companies in the scrap metal
industry, at their expense, may in consultation with the department
of state police develop or contract for the development of, and if
selected by the department of state police under subsection (3) may
implement, operate, and maintain, an electronic database that meets
all of the following:
(a) Is available to all scrap metal dealers in this state.
(b) Is web-based.
(c) Has the capability to conduct statewide real-time searches
by item description or seller.
(d) Is accessible to law enforcement agencies through a
password supported, internet-based platform.
(e) Allows a scrap metal dealer to report all of the following
information concerning the purchase of 1 or more of the items
described in subsection (1)(a) to (c) by 12 noon of the next
business day after the purchase transaction of the item or items:
(i) Name and address of the scrap metal dealer and seller.
(ii) Date and time of the purchase transaction.
(iii) A description of the item or items purchased.
(iv) The weight or volume of the item or items purchased.
(f) Allows a law enforcement agency to flag the name of any
seller that appears in the database and who is an individual who
has been convicted of a crime involving the theft, conversion, or
sale of scrap metal; and, if a law enforcement agency has flagged
the name of that convicted seller, to notify the law enforcement
agency if he or she is the seller in subsequent purchase
transactions and provide the agency all of the information about
that convicted seller and his or her purchase transactions that
scrap metal dealers have reported to the database.
(3) If 1 or more electronic databases are developed under
subsection (2), the department of state police shall determine, and
shall notify each group of companies in the scrap metal industry
that developed a database or contracted for its development,
whether the features of the electronic database meet the
requirements of subsection (2)(a) to (f); and shall select a single
shared electronic database that meets the requirements of
subsection (2)(a) to (f) for implementation and operation in this
state for purposes of subsection (4). A person that objects to a
determination or selection by the department of state police under
this subsection may file a petition with the department that
describes the basis of the person's objection. If a person files a
petition under this subsection, the department of state police
shall provide that person an opportunity for an administrative
hearing. The hearing shall be conducted as a contested case under
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328.
(4) If a single shared electronic database selected by the
department of state police is implemented under subsection (3),
beginning not later than 30 days after the database is implemented
and in operation, as determined by the department of state police,
and after the department of state police publishes notice that the
database is implemented and in operation, a scrap metal dealer
shall do all of the following:
(a) Register or subscribe to the database and pay a reasonable
fee for that registration or subscription.
(b) By 12 noon of the next business day after a purchase
transaction of 1 or more items described in subsection (1)(a) to
(c) occurs, electronically report the purchase of the item or items
to the database. The report described in this subdivision shall
include all of the information described in subsection (2)(e). A
scrap metal dealer is not required to report the consideration paid
for the item or items or other pricing information for inclusion in
the database.
(5) If the purchase price in a purchase transaction described
in subsection (1) is $25.00 or more, or if the purchase price for
all of a seller's purchase transactions described in subsection (1)
in a business day is $25.00 or more, the scrap metal dealer must
pay the seller, for those items described in subsection (1) only,
by mailing 1 of the following items to the seller at the address
shown on the identification card presented under section 5(2)(a),
and shall not deliver that payment in person or using any other
form of delivery:
Senate Bill No. 304 as amended May 26, 2015
(a) A check or money order described in section 5(1)(a)(i).
(b) An electronic payment card or encrypted receipt described
in section 5(1)(a)(ii).
(c) A nontransferable receipt that the seller may redeem at
the scrap dealer's premises for 1 of the items described in
subdivision (a) or (b).
[
]
