HOUSE BILL No. 5919

 

September 19, 2012, Introduced by Rep. Lipton and referred to the Committee on Regulatory Reform.

 

     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 3 and 8 (MCL 445.403 and 445.408), section 3

 

as amended by 2006 PA 675 and section 8 as amended by 2008 PA 428,

 

and by adding section 7a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. As used in this act:

 

     (a) "Automotive recycler" means a person who 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 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) "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, or firm whose principal business is the

 

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

 

business.

 

     (c) "Internet drop-off store" 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 1(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 an internet drop-off store conducts

 

business.

 

     (e) "Person" means an individual, a general partner, or a

 

corporation, limited liability company, partnership, or other legal

 

entity.

 

     (f) (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, foundries,

 

and other scrap processors.

 

     (g) (f) "Second hand dealer" or "junk dealer" means any a

 

person , corporation, or member or members of a copartnership 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 by a city, village,

 

or county.

 

     Sec. 7a. (1) A second hand or junk dealer shall not conduct

 

business as a pawnbroker without a license under 1917 PA 273, MCL

 

446.201 to 446.219. A second hand or junk dealer that violates this

 

section is guilty of a misdemeanor punishable by 1 of the

 

following:

 

     (a) Except as provided in subdivision (b), imprisonment for

 

not fewer than 10 days or more than 90 days or a fine of not less

 

than $25.00 or more than $100.00, or both.

 

     (b) For a second or subsequent violation of this section,

 

imprisonment for not fewer than 10 days or more than 90 days or a

 

fine of not less than $1,000.00 or more than $2,500.00, or both.

 

     (2) As used in this section:

 

     (a) "Conduct business as a pawnbroker" means to engage in any

 

conduct or activity described in section 1(1) of 1917 PA 273, MCL

 

446.201.

 

     (b) "Pawnbroker" means that term as defined in section 3 of

 

1917 PA 273, MCL 446.203.

 

     Sec. 8. (1) Except as otherwise provided for in this section

 

or section 7a, a person who that violates this act is guilty of a

 

misdemeanor and shall be imprisoned punishable by imprisonment for


 

not more than 6 months and shall be fined 180 days or a fine of not

 

less than $500.00 or more than $1,000.00, or both.

 

     (2) A second hand or junk dealer who that buys or sells scrap

 

metal, knowing that it is stolen, 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. The penalties imposed under this

 

subsection apply only to a first violation of this subsection.

 

     (3) A second hand or junk dealer who that buys or sells stolen

 

scrap metal knowing that it was stolen 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. The penalties imposed under this

 

subsection apply to a second or subsequent violation.

 

     (4) The license of a person , corporation, copartnership, or

 

firm that is found guilty of violating any of the provisions of

 

this act shall be is considered to be revoked upon entry of a when

 

the conviction and such is entered, and the person , corporation,

 

copartnership, or firm shall not be is not permitted to carry on

 

the business of being a second hand or junk dealer within in this

 

state for a period of 1 year after that conviction.

 

     (5) The remedies under this act are independent and

 

cumulative. The use of 1 remedy by a person does not bar the use of

 

other lawful remedies by that person or the use of a lawful remedy

 

by another person.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 96th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. ____ or House Bill No. 5920(request no.


 

01496'11).

 

     (b) Senate Bill No. ____ or House Bill No. 5918(request no.

 

02061'11).