September 18, 2014, Introduced by Rep. Callton and referred to the Committee on Financial Services.
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 4, 5, and 8 (MCL 445.404, 445.405, and
445.408), as amended by 2008 PA 428, and by adding section 4a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) A second hand dealer or junk dealer shall post in
a
conspicuous place in or upon on
its place of business a sign
having
that states its name and occupation.
(2) A second hand or junk dealer shall make and maintain a
separate book or other written or electronic record, numbered
consecutively, and open to inspection by a member of a local law
enforcement
agency and the Michigan state police, in which shall be
written
or entered it writes or
enters in the English language at
the
time of the purchase or exchange of any
second hand article, a
all of the following:
(a)
A description of the article, and
all of the
following:including, but not limited to, any serial
number, model
number, or other identifying number or mark that appears on the
article.
(b) (a)
The name, date of birth, description, fingerprint,
operator's or chauffeur's license or state identification number,
registration
plate number, and address of the person individual
from
whom the article was is purchased and received. The second
hand dealer or junk dealer shall make a copy of the operator's
license, chauffeur's license, or state identification card as part
of the book or record.
(c) (b)
The day date and
hour time the purchase or exchange
was made.
(d) (c)
The location from which the item
was obtained.
(e) A transaction number.
(f) The purchase price of the article, or if the article was
taken in exchange, the value of the item exchanged.
(3) (d)
Payment for an item shall be made only A second hand
dealer or junk dealer shall only pay for a second hand article by
check or by an electronic payment system. The record described in
subsection (2) shall indicate the method of payment.
Sec. 4a. (1) Within 48 hours after a transaction in which it
receives or purchases a second hand article, a second hand dealer
or junk dealer shall electronically transmit the following
information to the department, in a format determined by the
department, for inclusion in the database:
(a) A full and complete description of the article.
(b) If applicable, the serial number, model number, or other
identifying number or mark that appears on the article.
(c) The purchase price of the article or the value of any item
given in exchange for the article.
(d) The second hand dealer's or junk dealer's name and
address.
(e) The date and time of the transaction.
(f) The transaction number.
(g) The customer's date of birth; operator's license number or
other identification number; street address, including city,
village, or township of residence, state, and zip code; and county
of residence.
(h) The number of the dealer's check, bank draft, or money
order or the notation "cash" if the dealer paid the purchase price
in cash.
(i) The customer's thumbprint
(2) By July 1, 2015, each second hand dealer or junk dealer
shall implement any software that the department determines is
necessary to administer the collection of information required
under this section.
(3) A second hand dealer or junk dealer shall pay an annual
fee of not more than $250.00 for each of its licensed locations for
the implementation and maintenance of the database. The department
shall determine the specific amount of the fee. The treasurer of
each local governmental unit shall collect the fee on behalf of the
department under subsection (4).
(4) Annually, a second hand dealer or junk dealer shall pay
the fee described in subsection (3) to the treasurer of the local
governmental unit. The treasurer shall forward that fee to the
department on receipt.
(5) The treasurer of a governmental unit that collects a
database fee on behalf of the department may charge and collect a
fee for processing the database fee. The amount of a processing fee
under this subsection shall not exceed $50.00.
(6) As used in this section:
(a) "Customer" means an individual from whom a second hand or
junk dealer purchases or receives a second hand article.
(b) "Database" means the statewide electronic database
implemented and maintained by the department under section 6 of
1917 PA 273, MCL 446.206.
(c) "Database fee" means the fee described in subsection (3).
(d) "Department" means the department of state police.
Sec.
5. (1) The articles purchased or exchanged shall be
retained
by the purchaser A second
hand dealer or junk dealer shall
retain each second hand article it purchases or receives in
exchange
for at least 15 days before disposing
of them, it, in an
accessible
place in the building where the second
hand articles are
purchased
and received. A The dealer
shall attach a tag shall be
attached
to the articles article in
some visible and convenient
place,
with the transaction number written thereupon, to correspond
with
the entry number in the book or other record.on the tag.
(2)
The purchaser shall prepare and deliver on Monday of each
week
to the chief of police or chief law enforcement officer of the
local
unit of government in which that business is carried on,
before
12 noon, a legible and correct paper or electronic copy, in
the
English language, from the book or other written or electronic
record,
containing a description of each article purchased or
received
during the preceding week, the hour and day when the
purchase
was made, the description of the person from whom it was
purchased,
and a copy of the documentation required under section 4
regarding
the person from whom it was purchased. The statement
shall
be verified in a manner acceptable to the chief of police or
chief
law enforcement officer.
(2) (3)
This section Subsection (1) does not apply to old
rags, waste paper, and household goods except radios, televisions,
record players, and electrical appliances and does not require the
purchaser
to retain articles purchased from individuals, firms, or
corporations
having a person that has a fixed place of business
after
those articles shall have been that
article is reported under
section 4a. As used in this subsection, "person" means an
individual, corporation, limited liability company, partnership, or
other legal entity.
Sec. 8. (1) Except as otherwise provided for in this section,
a
person who that violates this act is guilty of a misdemeanor and
shall
be imprisoned for not more than 6 months and shall be fined
not
less than $500.00 or more than $1,000.00.punishable by
imprisonment for not more than 1 year or a fine of $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 2 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 2 years or a fine of
not
more than $10,000.00, $5,000.00,
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 at the time of
entry
of a the conviction and such that 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 takes effect January
1, 2015.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 97th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5837 (request no.
04841'14 *).
(b) Senate Bill No.____ or House Bill No. 5835 (request no.
04964'14 *).