HOUSE BILL No. 5956

 

April 19, 2006, Introduced by Reps. Clemente, Hildenbrand, Palsrok and Nofs and referred to the Committee on Energy and Technology.

 

     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

 

     (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.

 

     (c) "Trading assistant" means a person, corporation, or 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).

 

     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 a trading assistant 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) A trading assistant 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.

 

     (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.

 

     (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 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 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) Senate Bill No.____ or House Bill No. 5955(request no.

 

05001'05).

 

     (b) Senate Bill No.____ or House Bill No. 5957(request no.

 

05001'05 b).

 

     (c) Senate Bill No.____ or House Bill No. 5958(request no.

 

05001'05 c).