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HB-5956, As Passed House, May 16, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5956

A bill to amend 1945 PA 231, entitled

"An act to prescribe additional regulations and requirements for

pawnbrokers, secondhand dealers and junk dealers; to provide for

the taking of fingerprints and the making of reports to enforcement

officers; to prescribe penalties for the violation of the

provisions of this act; and to declare the effect of this act,"

by amending sections 1 and 6 (MCL 445.471 and 445.476).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. (1) This act shall be construed as supplementing the

laws of this state and city and village ordinances and charters

regulating or licensing pawnbrokers, secondhand dealers, and junk

dealers.

(2) ~~The term "secondhand~~ As used in this act:

(a) "Secondhand dealer" or "junk dealer" ~~as used in this act~~

~~shall mean~~ means any person, corporation, or member or members of

a co-partnership or firm, whose principal business is that of

purchasing, storing, selling, exchanging, and receiving ~~second~~

~~hand~~ secondhand personal property of any kind or description. ~~The~~

~~term "pawnbroker" as used in this act shall mean~~ Secondhand dealer

or junk dealer does not include a scrap processor.

(b) "Pawnbroker" means any person, corporation, or member or

members of a co-partnership or firm, who loans money on deposit or

pledge of personal property, or other valuable thing, other than

securities or printed evidence of indebtedness, or who deals in the

purchasing of personal property or other valuable thing on

condition of selling the same back again at a stipulated price.

firm that contracts with other persons, corporations, or firms to

offer its personal property or other valuable thing for sale,

purchase, consignment, or trade through means of an internet

website and meets the conditions described in section 6(3).

(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 internet drop-off store conducts business.

(e) "Scrap processor" means a person, utilizing machinery and

equipment and operating from a fixed location, 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 and

foundries.

Sec. 6. (1) ~~Nothing in this act shall be deemed to~~ This act

does not apply to any secondhand or junk dealer purchasing scrap

iron and metal, except scrapped motor vehicles not purchased from a

licensed ~~second hand~~ secondhand or junk dealer.

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

complying with subsection (3), or a person engaged in the sale,

purchase, consignment, or trade of personal property or other

valuable thing for himself or herself, to obtain a license under

this act or any ordinance being supplemented by this act.

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

following conditions is exempt from licensure as a pawnbroker,

secondhand dealer, or junk dealer under this act:

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

that he or she 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 searchable

by zip code or state, or both. The website viewing shall include,

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

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

personal property or other valuable thing.

trade of the personal property or other valuable thing for at least

2 years, which records shall 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.

(d) Provide the local law enforcement agency with any name

under which it conducts business on the website, access to the

business premises at any time during normal business hours for

purposes of inspection, and, within 24 hours after entering into

the contract for the sale, purchase, consignment, or trade of the

personal property or other valuable thing, an electronic copy of

the seller's or consignor's name, address, telephone number, driver

license number and issuing state, and 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 law enforcement agency but shall at least be in a legible

format and in the English language.

(e) 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 not made in cash.

(f) Immediately remove the personal property or other valuable

thing from the website and notify the local law enforcement agency

upon learning if the verification reveals that the personal

property or other valuable thing is stolen.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

(a) House Bill No. 5955.

(b) House Bill No. 5957.