Bill Text: MI SB0487 | 2013-2014 | 97th Legislature | Introduced

---

Bill Title: Occupations; junk and secondhand dealers; nonferrous metal regulatory act; expand to include other scrap metal and scrap metal dealers. Amends title & secs. 1, 3, 5, 7, 11, 13 & 17 of 2008 PA 429 (MCL 445.421 et seq.); adds sec. 10 & repeals sec. 9 of 2008 PA 429 (MCL 445.429). TIE BAR WITH: SB 0488'13

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-09-12 - Referred To Committee On Government Operations [SB0487 Detail]

Download: Michigan-2013-SB0487-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 487

 

 

September 12, 2013, Introduced by Senator HUNTER and referred to the Committee on Government Operations.

 

 

 

     A bill to amend 2008 PA 429, entitled

 

"Nonferrous metal regulatory act,"

 

by amending the title and sections 1, 3, 5, 7, 11, 13, and 17 (MCL

 

445.421, 445.423, 445.425, 445.427, 445.431, 445.433, and 445.437),

 

and by adding section 10; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to regulate the purchase and sale of certain nonferrous

 

metals; to provide for disclosures by certain persons regarding

 

certain transactions; to require the creation of records for

 

certain purposes and for the use of certain databases by certain

 

persons; scrap metal and other items that contain ferrous or

 

nonferrous metal to scrap metal dealers; to require sellers to

 

provide and scrap metal dealers to obtain certain information at

 

the time of a purchase transaction; to require that scrap metal

 

dealers implement and maintain records of their purchase

 

transactions and to make those records available for law

 

enforcement purposes; and to provide for penalties and remedies.

 

     Sec. 1. This act shall be known and may be cited as the

 

"nonferrous "scrap metal regulatory act".

 

     Sec. 3. As used in this act:

 

     (a) "Dealer" means any person that is not a first purchaser

 

who purchases nonferrous metals from any seller. Dealer includes,

 

but is not limited to, a person, whether or not licensed under

 

state law or local ordinance, that operates a business as a scrap

 

metal recycler, scrap processor, secondhand and junk dealer, or

 

other person who purchases any amount of nonferrous metal on a

 

regular, sporadic, or 1-time basis. Dealer does not include an

 

automotive recycler regulated by and complying with section 217 of

 

the Michigan vehicle code, 1949 PA 300, MCL 257.217; section 18 of

 

the motor vehicle service and repair act, 1974 PA 300, MCL

 

257.1318; or section 2 of 1986 PA 119, MCL 257.1352, when engaging

 

in activities that meet the definition of automotive recycler as

 

defined in section 2a of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.2a.

 

     (b) "Documentation" means a signed statement that indicates

 

where the person obtained the article, that the person is

 

authorized to sell the article, or other evidence that reasonably

 

demonstrates ownership of the article and the source of the

 

article.

 

     (a) (c) "Ferrous metal" means a metal that contains

 

significant quantities of iron or steel.

 

     (b) (d) "First purchaser" means the first buyer of a

 

manufactured product containing item that contains ferrous or

 

nonferrous metal in a retail or business-to-business transaction.

 

Persons purchasing nonferrous metal A person that purchases scrap

 

metal, or other personal property described in section 10, in

 

violation of this act, or an automotive recyclers, pawnshops,

 

recycler, pawnshop, scrap metal recyclers, and recycler, or scrap

 

processors are processor is not considered a first

 

purchasers.purchaser.

 

     (c) "Governmental unit" means a subdivision, agency,

 

department, county, parish, municipality, or other unit of the

 

government of the United States, this state, another state, or a

 

foreign country.

 

     (d) (e) "Industrial or commercial account customer" means any

 

person, operating a person that operates from a fixed location ,

 

that and is a seller of ferrous or nonferrous scrap metal to a

 

scrap metal recycler pursuant to dealer under a written agreement.

 

     (e) (f) "Nonferrous metal" means a metal that does not contain

 

significant quantities of ferrous metal but contains copper, brass,

 

platinum-based metals, aluminum, bronze, lead, zinc, nickel, or

 

alloys of those metals.

 

     (f) (g) "Person" means an individual, partnership,

 

corporation, limited liability company, joint venture, trust,

 

association, or other legal entity.

 

     (g) (h) "Public fixtures fixture" means articles containing

 

nonferrous metal that are used or located in areas open to the

 

public and include, but are not limited to, utility access covers;

 

street light and fixtures; road and bridge guard rails; highway or

 

street signs; water meter covers; traffic directional and control

 

signs; traffic light signals; telecommunications cable; utility-

 

related articles; and historical markers.an item that contains

 

ferrous or nonferrous metal and is owned or under the exclusive

 

control of a governmental unit. The term includes, but is not

 

limited to, a street light pole or fixture, road or bridge

 

guardrail, traffic sign, traffic light signal, or historical

 

marker.

 

     (h) "Purchase transaction" means a purchase of scrap metal by

 

a scrap metal dealer. The term does not include any of the

 

following:

 

     (i) The purchase of 1 or more used or secondhand, distressed,

 

or salvage vehicles or vehicle parts by a used or secondhand

 

vehicle dealer or used or secondhand vehicle parts dealer that is

 

licensed as a dealer under section 248 of the Michigan vehicle

 

code, 1949 PA 300, MCL 257.248, and is acting within the scope of

 

that dealer's license.

 

     (ii) The purchase of 1 or more used or secondhand, distressed,

 

or salvage vehicles, vehicle parts, or vehicle scrap by a vehicle

 

scrap metal processor, vehicle salvage pool operator, or foreign

 

salvage vehicle dealer that is licensed as a dealer under section

 

248 of the Michigan vehicle code, 1949 PA 300, MCL 257.248, and is

 

acting within the scope of that dealer's license.

 

     (iii) The purchase of 1 or more used or secondhand, distressed,

 

or salvage vehicles, vehicle parts, or vehicle scrap by an

 

automotive recycler that is licensed as a dealer under section 248

 

of the Michigan vehicle code, 1949 PA 300, MCL 257.248, if the

 

transaction is authorized under section 217c of the Michigan

 

vehicle code, 1949 PA 300, MCL 257.217c; section 18 of the motor

 

vehicle service and repair act, 1974 PA 300, MCL 257.1318; or

 

section 2 of 1986 PA 119, MCL 257.1352.

 

     (iv) The purchase of scrap metal by a mill, foundry, die

 

caster, or other manufacturing facility that purchases scrap metal

 

for its own use in the production of metal articles or materials

 

and does not in the ordinary course of its business purchase scrap

 

metal for resale.

 

     (i) "Record" means a paper, electronic, or other generally

 

accepted method of storing information in a retrievable form.

 

     (j) "Scale operator" means the employee of a scrap metal

 

dealer who operates or attends a scale that is used to weigh the

 

scrap metal in a purchase transaction.

 

     (k) "Scrap metal" means ferrous or nonferrous metal, or items

 

that contain ferrous or nonferrous metal, that are sold or offered

 

for sale for the value of the ferrous or nonferrous metal they

 

contain rather than their original intended use; ferrous or

 

nonferrous metal removed from or obtained by cutting, demolishing,

 

or disassembling a building, structure, or manufactured item; or

 

other metal that cannot be used for its original intended purpose

 

but can be processed for reuse in a mill, foundry, die caster, or

 

other manufacturing facility.

 

     (l) "Scrap metal dealer" means a person that buys or sells

 

scrap metal and is not a first purchaser. The term includes, but is

 

not limited to, a person, whether or not licensed under state law

 

or local ordinance, that operates a business as a scrap metal

 

recycler, scrap processor, secondhand and junk dealer, or other

 

person that purchases any amount of scrap metal on a regular,

 

sporadic, or 1-time basis. The term does not include a governmental

 

unit that buys or sells scrap metal.

 

     (m) (j) "Scrap metal recycler" means a person that purchases

 

ferrous or nonferrous metal that is intended for recycling or

 

reuse, whether regarded as a scrap processor, core buyer, or other

 

similar business operation.

 

     (n) (k) "Scrap processor" means that term as defined in

 

section 3 of 1917 PA 350, MCL 445.403.

 

     (o) (l) "Seller" means any individual or a person that either

 

regularly, sporadically, or on a 1-time basis receives

 

consideration from any other person from the purchase by a scrap

 

metal dealer of nonferrous scrap metal offered by that seller.

 

     Sec. 5. (1) A dealer shall do all All of the following apply

 

to a scrap metal dealer:

 

     (a) Produce and maintain records as required under section

 

7(2).

 

     (b) Participate in a database meeting the requirements of

 

section 11.

 

     (c) Tag and hold any nonferrous metal as provided for in

 

section 9.

 

     (d) Pay a seller by a method capable of being traced from the

 

dealer to the seller. Payment by cash or currency of more than

 

$50.00, barter, or trade is not considered a payment that complies

 

with the requirement of this subdivision. Payment of cash in any

 

amount in a transaction involving predominantly copper articles is

 

considered a violation of this subdivision.

 

     (e) In the case of a transaction involving nonferrous metal,

 

verify that the seller is at least 16 years of age.

 

     (a) Unless subdivision (b) applies, and except as provided in

 

subdivision (c), a scrap metal dealer shall only pay a seller with

 

1 of the following in a purchase transaction:

 

     (i) A check or money order. A scrap metal dealer shall make and

 

retain a photograph or digital or electronic image of the delivery

 

of the check or money order to the seller or individual acting on

 

behalf of the seller in the purchase transaction.

 

     (ii) An electronic payment card or encrypted receipt that may

 

only be converted to cash in an automated teller machine that is

 

located on the seller's premises; is used for the sole purpose of

 

dispensing cash in connection with purchase transactions; and

 

provides a digital or electronic image of the dispensing of the

 

cash to the seller.

 

     (b) Except as provided in subdivision (c), in a purchase

 

transaction of any of the following items, a scrap metal dealer

 

shall not pay the seller until 3 business days after the date of

 

the transaction, and shall only pay the seller after that period by

 

making a direct deposit or electronic transfer to the seller's

 

account at a financial institution or mailing a check or money

 

order, payable to the seller, to a street address provided to the

 

dealer by the seller and not to a post office box:

 

     (i) Vehicles or vehicle parts, including catalytic converters,

 

unless the seller has proof of ownership or unless the seller is an

 

automotive recycler as defined in section 2a of the Michigan

 

vehicle code, 1949 PA 300, MCL 257.2a.

 

     (ii) Air conditioners, air conditioner evaporator coils or

 

condensers, or parts of air conditioner evaporator coils and

 

condensers.

 

     (iii) Copper wire, including copper wire that is burned in whole

 

or in part to remove the insulation.

 

     (c) In a purchase transaction with an industrial or business

 

customer, a scrap metal dealer may pay that customer in any manner

 

described in subdivision (a) or (b).

 

     (d) Unless the transaction is with an industrial or commercial

 

customer, a scrap metal dealer shall not accept barter or a trade

 

or exchange of scrap metal or other personal property.

 

     (e) A scrap metal dealer in a purchase transaction shall

 

examine the identification presented under subsection (2)(a) by the

 

seller or individual acting on behalf of the seller, and if the

 

identification presented displays the date of birth of the

 

individual, confirm that the individual is at least 16 years old

 

based on that date of birth.

 

     (f) A scrap metal dealer shall not purchase scrap metal that

 

is not delivered in or on a vehicle licensed and titled for use on

 

public highways.

 

     (g) A scrap metal dealer shall ensure that it trains each

 

scale operator, purchaser, and supervisor employed by the dealer

 

concerning the legal requirements of this act and the

 

responsibilities of the scrap metal dealer under this act.

 

     (2) A seller shall do all of the following:In a purchase

 

transaction, all of the following apply to a seller, if the seller

 

is an individual, or to an individual acting as an agent or

 

representative of a seller:

 

     (a) Present to the dealer an He or she must present his or her

 

operator's or chauffeur's license, military identification card,

 

Michigan identification card, passport, or other government-issued

 

identification containing a his or her photograph to the scrap

 

metal dealer and allow the scrap metal dealer to make a photocopy

 

or electronic copy of the identification.

 

     (b) Allow He or she must allow the scrap metal dealer to make

 

a take his or her thumbprint, to be used only for identification

 

purposes by the scrap metal dealer and for investigation purposes

 

by a law enforcement agency.

 

     (c) Execute He or she must provide the scrap metal dealer with

 

a signed statement indicating that the seller certifies that he or

 

she is the owner of, or is otherwise authorized to sell, the

 

nonferrous scrap metal offered for purchase to the scrap metal

 

dealer.

 

     (d) Attest to the lack of any criminal convictions An

 

individual who has been convicted of a crime involving the theft,

 

conversion, or sale of nonferrous metals.scrap metal may not enter

 

into a purchase transaction. As part of a purchase transaction, the

 

individual shall certify that he or she has not been convicted of a

 

crime described in this subdivision.

 

     Sec. 7. (1) Except Subject to subsection (4), and except as

 

otherwise provided in this subsection, section, a scrap metal

 

dealer shall produce prepare and maintain an a separate, accurate,

 

and legible record of each purchase transaction. The dealer shall

 

maintain the records produced under described in this section for

 

at least 1 year; , the dealer shall keep the records in a location

 

that is readily accessible to a local, state, or federal law

 

enforcement agency for inspection during normal business hours; ,

 

and the dealer shall make the records, or copies of those records,

 

available to any local, state, or federal law enforcement agency

 

upon that has a reasonable suspicion of that a violation of this

 

act has occurred.

 

     (2) The record of a purchase transaction regarding nonferrous

 

metal shall contain described in subsection (1) must include all of

 

the following:

 

     (a) The name and address of the seller and the name and

 

address of the individual who is delivering the scrap metal if he

 

or she is not the seller. If an individual is a seller or

 

representative of a seller in more than 1 purchase transaction, the

 

scrap metal dealer may retain a copy of the individual's

 

information or document described in this subdivision in a separate

 

file and use that information in future purchase transactions.

 

     (b) (a) The name, address, and identifying number from the

 

seller's operator's or chauffeur's license, military identification

 

card, Michigan identification card, passport, or other government-

 

issued identification containing a photograph. presented under

 

section 5(2)(a). A legible scan or photocopy of the identification

 

is considered satisfactory in fulfilling meets the requirement of

 

this subdivision. In the case of a repeat seller, a copy of the

 

information may be kept on file with the dealer and be used for If

 

an individual is a seller or representative of a seller in more

 

than 1 purchase transaction, the scrap metal dealer may retain a

 

copy of the information or document described in this subdivision

 

in a separate file and use that information in future purchase

 

transactions.

 

     (c) (b) The license plate number of the vehicle delivering the

 

nonferrous metal.that delivered the scrap metal.

 

     (d) (c) The date and time of the purchase transaction.

 

     (e) (d) A description of the predominant types of scrap metal

 

purchases, purchased, made in accordance with the custom of the

 

trade.

 

     (f) (e) The weight, quantity, or volume of metal, made the

 

scrap metal purchased, described and calculated in accordance with

 

the custom of the trade; the name of the scale operator who weighs

 

and inspects that property; and the name of the employee of the

 

scrap metal dealer who purchased or authorized the purchase of the

 

scrap metal on the dealer's behalf if the purchaser was not the

 

scale operator.

 

     (g) A photograph or digital or electronic image of the scrap

 

metal purchased. A digital or electronic image that meets 1 of the

 

following is sufficient for purposes of this subdivision even if

 

each item of scrap metal is not shown in the image:

 

     (i) If the scrap metal and the vehicle in which it is delivered

 

are weighed, an overhead image of the vehicle and the scrap metal

 

in the vehicle on the scale.

 

     (ii) If only the scrap metal is weighed, an image of the scrap

 

metal on the scale.

 

     (h) (f) The consideration paid and the method of payment.

 

     (i) (g) A The signed statement from the seller that the seller

 

is the owner of the metal or is otherwise authorized to sell the

 

metal subject to the transaction.described in section 5(2)(c).

 

     (j) (h) A legible thumbprint of the seller.described in

 

section 5(2)(b).

 

     (3) In the case of a seller that is A scrap metal dealer is

 

not required to obtain the information described in subsection (2)

 

for a purchase transaction with an industrial or commercial account

 

where payment is made by a method capable of being traced from the

 

dealer to the seller and payment is made customer that meets all of

 

the following:

 

     (a) Payment is made directly to the business, the dealer is

 

not required to produce the record described in subsection (2) so

 

long as the industrial or commercial customer.

 

     (b) The personal and business identifying information of the

 

industrial or commercial account seller customer is on file with

 

the scrap dealer and conforms to a written description of the type

 

of nonferrous scrap metal or articles customarily purchased by the

 

scrap metal dealer from that seller, and the information customer.

 

     (c) The information on file with the scrap metal dealer under

 

subdivision (b) is periodically reviewed at least every 2 years and

 

validated as current or updated by the scrap metal dealer.

 

     (4) A scrap metal dealer may utilize an electronic record-

 

keeping system for purposes of subsection (1) if that system allows

 

for immediate access to each seller's purchase transaction

 

activities, documents, and images, including, but not limited to,

 

electronic copies of the records described in subsection (2) or

 

(3), the payment information contained in the card or receipt, and

 

the image of the seller described in section 5(1)(a)(ii).

 

     Sec. 10. A person shall not knowingly sell or attempt to sell

 

to a scrap metal dealer, and a scrap metal dealer shall not

 

knowingly purchase or attempt to purchase, any of the following

 

types of personal property:

 

     (a) Public fixtures.

 

     (b) New metal articles or materials, such as those used in a

 

manufacturing process or construction.

 

     (c) Equipment or tools used by contractors.

 

     (d) Metal articles or materials that are clearly marked as

 

property belonging to a person other than the seller.

 

     (e) A commemorative, decorative, or other cemetery-related or

 

apparently ceremonial article.

 

     (f) Metal articles or materials removed from property owned by

 

a railroad company or from a railroad right-of-way.

 

     Sec. 11. (1) A scrap metal dealer shall register with or

 

subscribe to, and maintain that registration or subscription with,

 

and use in the conduct of its business, an internet-based database

 

available to scrap metal dealers, law enforcement agencies, and the

 

general public that lists and tracks, at a minimum, thefts of

 

nonferrous scrap metal. and articles containing nonferrous metals.

 

The database may be reasonably limited in terms of time and

 

geographical area.

 

     (2) The existing database established by the institute of

 

scrap recycling industries, inc., referred to as the ISRI theft

 

alert system, is considered an appropriate internet-based database.

 

A scrap metal dealer may register with or subscribe to any other

 

database that provides substantially the same services as the a

 

database described in subsection (1).

 

     (3) A scrap metal dealer shall ensure that it makes available

 

to each of its employees engaged in purchasing or weighing scrap

 

metal sold or offered for sale to the scrap metal dealer each theft

 

alert, or similar notice that a scrap metal theft has occurred,

 

that the scrap metal dealer receives from the database service

 

described in this section, and that those employees review the

 

alerts or similar notices on a daily basis.

 

     Sec. 13. (1) A person who violates section 7(1) or section 9

 

knowing or having reason to know that he or she is violating those

 

sections If a person violates section 7, and knows or has reason to

 

know that section 7 was violated, the person is guilty of a

 

misdemeanor punishable by a fine of not more than $500.00 or

 

imprisonment for not more than 93 days, or both.

 

     (2) A person who buys or sells nonferrous metal articles

 

knowing or having reason to know that they are stolen Each of the

 

following is guilty of a felony punishable by imprisonment for not

 

more than 5 years or a fine of not more than $5,000.00, or both,

 

for a first offense and is guilty of a felony punishable by

 

imprisonment for not more than 5 years or a fine of not more than

 

$10,000.00, or both, for a second or subsequent offense:.

 

     (a) A scrap metal dealer that purchases scrap metal or an item

 

of personal property described in section 10 and knows or has

 

reason to know that it was stolen.

 

     (b) A person that sells scrap metal or an item of personal

 

property described in section 10 to a scrap metal dealer and knows

 

or has reason to know that it was stolen.

 

     Sec. 17. (1) A person may bring a private cause of action

 

against a seller or a scrap metal dealer, in a court of competent

 

jurisdiction, for monetary damages suffered from violation of this

 

act. by a seller or a dealer, or both.

 

     (2) The If the court in an action described in subsection (1)

 

finds that the violation included the purchase or sale of stolen

 

property, the court shall award treble damages for the value of the

 

nonferrous metal article property stolen. The court may award costs

 

regarding any aspect of an action brought under subsection (1). As

 

used in this subsection, "value of the nonferrous metal article

 

property stolen" means the greatest of the following:

 

     (a) The replacement cost of the stolen article.property.

 

     (b) The cost of repairing the damage caused by the larceny of

 

that article.the property.

 

     (c) The total of subdivisions (a) and (b).

 

     (3) The court may award costs and reasonable attorney fees in

 

an action brought under subsection (1).

 

     Enacting section 1. Section 9 of the nonferrous metal

 

regulatory act, 2008 PA 429, MCL 445.429, is repealed.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No. 488                                      

 

          of the 97th Legislature is enacted into law.