HOUSE BILL No. 5835

 

September 18, 2014, Introduced by Rep. Callton and referred to the Committee on Financial Services.

 

      A bill to amend 1981 PA 95, entitled

 

"The precious metal and gem dealer act,"

 

by amending sections 4 and 8 (MCL 445.484 and 445.488), section 4

 

as amended by 1990 PA 34, and by adding section 4a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 4. (1) A dealer shall maintain a permanent record of

 

 2  each transaction, on a record of transaction forms provided for

 

 3  form described in subsection (6), (5), legibly written in ink in

 

 4  the English language, . Each record of transaction form shall be

 

 5  filled out in quadruplicate and completed by the dealer or agent

 

 6  or employee of the dealer. One copy of the form shall go to the

 

 7  appropriate police agency or sheriff's department pursuant to

 

 8  subsection (3); The dealer shall provide 1 copy shall go of the

 

 9  form to the customer ; and 1 copy shall be retained by the dealer

 


 1  pursuant retain 1 copy, subject to subsection (5). (4). At the

 

 2  time a dealer receives or purchases a precious item, the dealer

 

 3  or the agent or employee of the dealer shall insure ensure that

 

 4  the following information is recorded accurately on a record of

 

 5  transaction form:

 

 6        (a) The dealer dealer's name, address, and certificate of

 

 7  registration number.

 

 8        (b) A general description of the precious item or precious

 

 9  items received or purchased, including the type of metal or

 

10  precious gem. In the case of watches, the description shall

 

11  contain the name of the maker and the number of both the works

 

12  and the case. In the case of jewelry, all letters and marks

 

13  inscribed on the jewelry shall be included in the description.

 

14        (c) The date and time of the transaction and the transaction

 

15  number described in subsection (2).

 

16        (d) The name of the person individual conducting the

 

17  transaction.

 

18        (e) The first and last name, date of birth, driver's license

 

19  number or state of Michigan personal identification card number,

 

20  and street and house number of the customer, together with a

 

21  legible imprint of the right thumb of the customer, or if that is

 

22  not possible, of the left thumb or a finger of the customer.

 

23  However, the thumbprint or fingerprint shall is only be required

 

24  on the record of transaction form retained by the dealer. The

 

25  dealer shall make the thumbprint or fingerprint shall be made

 

26  available to a police agency during the course of a police

 

27  investigation involving a precious item or items described on the

 


 1  record of transaction. After a period of 1 year from the date of

 

 2  the record of transaction, if a police investigation concerning a

 

 3  precious item or items described on the record of transaction has

 

 4  not occurred, the dealer and any police agency or sheriff's

 

 5  department holding that holds a copy of the record of transaction

 

 6  shall destroy, and not keep a permanent record of, the record of

 

 7  transaction. A dealer who that goes out of business or changes

 

 8  his or her its business address to another local jurisdiction

 

 9  either within or out of this state shall transmit the records of

 

10  all transactions, made by the dealer within 1 year before his or

 

11  her closing or moving, the dealer closes or moves, to the local

 

12  police agency.

 

13        (f) The price to be paid by the dealer for the precious item

 

14  or precious items.

 

15        (g) The form of payment made to the customer; check, money

 

16  order, bank draft, or cash. If the payment is by check, money

 

17  order, or bank draft, the dealer shall indicate the number of the

 

18  check, money order, or bank draft.

 

19        (h) The customer's signature.

 

20        (2) The A dealer shall number each record of each a

 

21  transaction shall be numbered consecutively, commencing with the

 

22  number 1 and the calendar year.

 

23        (3) Within 48 hours after receiving or purchasing a precious

 

24  item, the dealer shall send a copy of the record of transaction

 

25  form to the local police agency and, if the record of transaction

 

26  form indicates that the customer resides outside the jurisdiction

 

27  of the local police agency, shall send a copy of the record of

 


 1  transaction form to the police agency of the city, village, or

 

 2  township in which the customer resides as set forth on the record

 

 3  of transaction, or, if that city, village, or township does not

 

 4  have a police agency, to the sheriff's department of the county

 

 5  in which the customer resides as set forth on the record of

 

 6  transaction. The record of transaction forms received by a police

 

 7  agency or sheriff's department shall not be open to inspection by

 

 8  the general public. Each police agency or sheriff's department

 

 9  holding record of transaction forms shall be responsible for

 

10  insuring the confidentiality of the record of transaction forms

 

11  and insuring that the record of transaction forms are used only

 

12  for the purpose for which they were received.

 

13        (3) (4) The A dealer shall make each record of transaction

 

14  forms of a dealer form and each precious item received shall be

 

15  it receives open to an inspection by the county prosecuting

 

16  attorney, the local police agency, the police agency or sheriff's

 

17  department of the local governmental unit in which the customer

 

18  resides, and the Michigan state police, at all times during the

 

19  ordinary business hours of the dealer. As a condition of doing

 

20  business, a dealer is considered to have given consent to the

 

21  inspection prescribed by described in this subsection. The record

 

22  of transaction forms of a dealer shall are not be open to

 

23  inspection by the general public.

 

24        (4) (5) Except as otherwise provided in this section, a

 

25  dealer shall retain each record of a transaction shall be

 

26  retained by the dealer for not less than at least 1 year after

 

27  the transaction to which the record pertains.

 


 1        (5) (6) The form of the record of transaction shall have an

 

 2  8-1/2 by 11 inch size and shall be as follows:

 

 

                    (Dealer's name and address)

                      "Record of Transaction

Dealer Certificate # ______________ #  _________________________

                      (Printed on      (Transaction number

                       the form)        printed on the form)

     (1) Description of Property - ____________________________

_______________________________________________________________

10 _______________________________________________________________

11 _______________________________________________________________

12 _______________________________________________________________

13      (2) _______________, 1920___  (3) ________________________

14              (Date and time)           (Name of Dealer/Employee)

15      (4) ____________________,       _____________________ 19__

16          (Name of Customer)               (Date of Birth)

17          ____________________,       __________________________

18         (Driver's license No./             (Street Address)

19       Mich. Personal ID Number)

20                                      __________________  ______

21                                        (City & State)     (Zip)

22      (5) ______________________      __________________________

23              (Price Paid)              (County of Residence)

24      (6) ______________________

25          (Check no., bank draft

26           no., money order no., or

27                     cash)

28 _______________________________________________________________

29       (Name of police agency of city, village, or township

30                    in which customer resides)

31

32

33         Thumbprint                   _________________________"

34                                       (Signature of Customer)

 

 

35        (6) (7) As used in this section, "customer" means the person

 


 1  individual from whom the dealer or the agent or employee of the

 

 2  dealer receives or purchases a precious item.

 

 3        Sec. 4a. (1) Within 48 hours after a transaction in which it

 

 4  receives or purchases a precious item, a dealer shall

 

 5  electronically transmit the following information to the

 

 6  department, in a format determined by the department, for

 

 7  inclusion in the database:

 

 8        (a) A description of the precious item that includes the

 

 9  information described in section 4(1)(b).

 

10        (b) If applicable, the serial number or model number of the

 

11  precious item.

 

12        (c) The purchase price of the precious item.

 

13        (d) The dealer's name and address.

 

14        (e) The date and time of the transaction.

 

15        (f) The transaction number.

 

16        (g) The customer's date of birth; operator's license number

 

17  or other identification number; street address, including city,

 

18  village, or township of residence, state, and zip code; and

 

19  county of residence.

 

20        (h) The number of the dealer's check, bank draft, or money

 

21  order or the notation "cash" if the dealer paid the purchase

 

22  price in cash.

 

23        (i) The customer's thumbprint.

 

24        (2) By July 1, 2015, each dealer shall implement any

 

25  software that the department determines is necessary to

 

26  administer the collection of information required under this

 

27  section.

 


 1        (3) A dealer shall pay an annual fee of not more than

 

 2  $250.00 for each of its registered locations for the

 

 3  implementation and maintenance of the database. The department

 

 4  shall determine the specific amount of the fee. The treasurer of

 

 5  each local governmental unit shall collect the fee on behalf of

 

 6  the department under subsection (4).

 

 7        (4) Annually, a dealer shall pay the database fee to the

 

 8  treasurer of the local governmental unit. The treasurer shall

 

 9  forward the database fee to the department on receipt.

 

10        (5) The treasurer of a governmental unit that collects a

 

11  database fee on behalf of the department may charge and collect a

 

12  fee for processing the database fee. The amount of a processing

 

13  fee under this subsection shall not exceed $50.00.

 

14        (6) As used in this section:

 

15        (a) "Database" means the statewide electronic database

 

16  implemented and maintained by the department under section 6 of

 

17  1917 PA 273, MCL 446.206.

 

18        (b) "Database fee" means the fee described in subsection

 

19  (3).

 

20        (c) "Department" means the department of state police.

 

21        Sec. 8. (1) A dealer who that knowingly violates section

 

22  3(7), 3(8), 4(1)(e), 4(3), 4(4), or 4(5) 4a is guilty of a

 

23  misdemeanor , punishable by imprisonment for not more than 1 year

 

24  , or a fine of $1,000.00, or both.

 

25        (2) A dealer who that violates section 3(7), 3(8), 4(1)(e),

 

26  4(3), 4(4), or 4(5) 4a a subsequent time is guilty of a felony ,

 

27  punishable by imprisonment for not more than 2 years , or a fine

 


 1  of $5,000.00, or both.

 

 2        Enacting section 1. This amendatory act takes effect January

 

 3  1, 2015.

 

 4        Enacting section 2. This amendatory act does not take effect

 

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

 

 6  enacted into law:

 

 7        (a) Senate Bill No.____ or House Bill No. 5837 (request no.

 

 8  04841'14 *).

 

 9        (b) Senate Bill No.____ or House Bill No. 5836 (request no.

 

10  04965'14 *).