Bill Text: MI SB0708 | 2013-2014 | 97th Legislature | Introduced

---

Bill Title: Occupations; junk and secondhand dealers; requirement for local business license; modify for scrap metal dealers. Amends secs. 1 & 3 of 1917 PA 350 (MCL 445.401 & 445.403). TIE BAR WITH: HB 4593'13, SB 0707'13

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-12-04 - Referred To Committee On Economic Development [SB0708 Detail]

Download: Michigan-2013-SB0708-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 708

 

 

December 4, 2013, Introduced by Senator SMITH and referred to the Committee on Economic Development.

 

 

 

     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 1 and 3 (MCL 445.401 and 445.403), section 1

 

as amended by 2008 PA 432 and section 3 as amended by 2006 PA 675.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. (1) A person, corporation, copartnership, Except as

 

otherwise provided in this section, an individual or firm shall not

 

carry on the business of dealer in a second hand goods dealer or

 

junk dealer in any of the counties, cities, or villages of a

 

county, city, or village in this state without having first

 

obtained, obtaining a license that authorizes the individual or

 

firm to carry on that business from the mayor of the city or the

 

chief executive officer of the county or village. where the

 

business is to be carried on, a license under this act authorizing

 

that person, corporation, copartnership, or firm to carry on that

 

business.

 

     (2) This section does not require an internet drop-off store

 

complying with subsection (3), or a person An individual engaged in

 

the sale, purchase, consignment, or trade of personal property or

 

other valuable thing an item for himself or herself , to is not

 

required to obtain a license under this act.

 

     (3) An internet drop-off store in compliance with that meets

 

all of the following conditions is exempt from licensure as a

 

second hand dealer or junk dealer not required to obtain a license

 

under this act:

 

     (a) Has a fixed place of business within in this state, except

 

that he or she exclusively transacts and all purchases or sales of

 

items are exclusively transacted 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 an item

 

it offers available on a website for viewing by photograph, if

 

available, by the general public at no charge, which and the

 

website shall be is searchable by zip code, or state, or both. The

 

website viewing shall include, must also display, 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.item.

 

     (c) Maintains records of the sale, purchase, consignment, or

 

trade of the personal property or other valuable thing an item it

 

offers for at least 2 years. , which records shall The records must

 

contain a description, including a photograph, if available, and,

 

if applicable, serial number, make, model, and other unique

 

identifying marks, numbers, names, or letters appearing on the

 

personal property or other valuable thing.item.

 

     (d) Provide Provides the local law enforcement 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 law

 

enforcement agency concerning an item it offers or offered, provide

 

provides an electronic copy of the seller's or consignor's name,

 

address, telephone number, and 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

 

item that includes the information described in subdivision (c).

 

The provision of store shall provide the information shall be in a

 

format acceptable to the local law enforcement agency but shall at

 

least be in a legible format and in the English language.

 

     (f) Provide Provides that payment for the personal property or

 

other valuable thing is executed an item it offers is made by means

 

of a check or other electronic payment system , so long as the

 

payment and is not made in cash. No payment shall be provided to

 

the A store shall not pay a seller for an item until the item is

 

sold.

 

     (g) Immediately remove the personal property or other valuable

 

thing removes an item it offers from the website if the local law

 

enforcement agency determines that the personal property or other

 

valuable thing item is stolen.

 

     (4) An individual or firm is not required to obtain a license

 

from a city, county, or village under this act if all of the

 

following are met:

 

     (a) The individual's or firm's business as a second hand

 

dealer or junk dealer in the city, county, or village is acting as

 

a scrap metal dealer.

 

     (b) The individual or firm is licensed as a scrap metal dealer

 

under the scrap metal licensing act.

 

     (c) The city, county, or village elects to exempt scrap metal

 

dealers from the obligation to obtain a license as a second hand

 

dealer or junk dealer.

 

     (5) (4) This section does not exempt a person purchasing or

 

selling articles of nonferrous metals from compliance with the

 

nonferrous metal regulatory act.an individual or firm engaged in

 

purchasing or selling scrap metal from complying with the scrap

 

metal licensing act.

 

     Sec. 3. As used in this act:

 

     (a) "Automotive recycler" means a person who an individual or

 

firm that engages in business primarily for the purpose of selling

 

retail salvage vehicle parts and secondarily for the purpose of

 

selling retail salvage motor vehicles or manufacturing or selling a

 

product of gradable scrap metal; or a person an individual employed

 

as a salvage vehicle agent as that term is defined in section 56c

 

of the Michigan vehicle code, 1949 PA 300, MCL 257.56c.

 

     (b) "Firm" means a corporation, limited liability company,

 

partnership, or other legal entity.

 

     (c) (b) "Industrial scrap" means materials that are a direct

 

product or by-product of any form of manufacturing, shaping, or

 

cutting process from a person, company, corporation, copartnership,

 

an individual or firm whose principal business is the

 

manufacturing, shaping, or cutting of materials at a fixed place of

 

business.

 

     (d) (c) "Internet drop-off store" means a person, corporation,

 

an individual or firm that contracts with other persons,

 

corporations, individuals or firms to offer its personal property

 

or other valuable thing an item for sale, purchase, consignment, or

 

trade through means of an internet website and meets the conditions

 

described in section 1(3).

 

     (e) "Item" means an item of personal property or any other

 

valuable thing.

 

     (f) (d) "Local law enforcement agency" means the police agency

 

of the city, village, or township, or if none, the county sheriff

 

of the county in which the an internet drop-off store conducts

 

business.

 

     (g) "Scrap metal" means that term as defined in section 3 of

 

the scrap metal regulatory act, MCL 445.423.

 

     (h) "Scrap metal dealer" means that term as defined in section

 

3 of the scrap metal regulatory act, MCL 445.423.

 

     (i) "Scrap metal regulatory act" means the scrap metal

 

regulatory act, 2008 PA 429, MCL 445.421 to 445.443.

 

     (j) (e) "Scrap processor" means a person, utilizing an

 

individual or firm that utilizes machinery and equipment, and

 

operating that operates from a fixed location, and whose principal

 

business is the processing and manufacturing of iron, steel,

 

nonferrous metals, paper, plastic, or glass, into prepared grades

 

of products suitable for consumption by recycling mills, foundries,

 

and or other scrap processors.

 

     (k) (f) "Second hand dealer" or "junk dealer" means any

 

person, corporation, or member or members of a copartnership an

 

individual or firm whose principal business is that of purchasing,

 

selling, exchanging, storing, or receiving second hand articles of

 

any kind, scrap metals, cast iron, old iron, old steel, tool steel,

 

aluminum, copper, brass, lead pipe or tools, or lighting and

 

plumbing fixtures. Second hand dealer or junk dealer does not

 

include a scrap processor, an automotive recycler, or a junkyard

 

that deals principally in industrial scrap and is licensed to

 

conduct that business by a city, village, or county.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 97th Legislature are

 

enacted into law:

 

     (a) House Bill No. 4593.

 

     (b) Senate Bill No. 707.