September 18, 2014, Introduced by Rep. Callton and referred to the Committee on Financial Services.
A bill to amend 1917 PA 273, entitled
"An act to regulate and license pawnbrokers in certain
governmental units of this state; and to prescribe certain powers
and duties of certain local governmental units and state
agencies,"
by amending the title and sections 1, 2, 3, 5, 6, and 18 (MCL
446.201, 446.202, 446.203, 446.205, 446.206, and 446.218), the
title and sections 2, 5, and 6 as amended by 2002 PA 469 and
sections 1 and 3 as amended by 2006 PA 292.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 TITLE
2 An act to regulate and license pawnbrokers in certain
3 governmental units of that
conduct business in this state; to
4 provide for the implementation, maintenance, and administration
5 of a statewide electronic database of pawned items and certain
6 other articles of personal property; to provide remedies and
1
prescribe penalties; and to prescribe
certain provide for the
2 powers and duties of certain local governmental units and state
3 agencies.
4
Sec. 1. (1) A person ,
corporation, or firm shall not
5 conduct business as a pawnbroker in any of the governmental units
6 of this state without having first obtained from a license issued
7
by the chief executive officer of that
governmental unit a
8 license under this act that
authorizes that person, corporation,
9 or firm to conduct that
business. This However,
this subsection
10 does not require an internet drop-off store complying that
11
complies with subsection (3), or a
person an individual who is
12 engaged in the sale, purchase, consignment, or trade of personal
13 property or other valuable thing for himself or herself, to
14 obtain a license under this act.
15 (2) Licensure under either or both of the following acts
16 does not exempt a person from obtaining a license under this act:
17 (a) The Registration
under the precious metal and gem dealer
18 act, 1981 PA 95, MCL 445.481 to 445.492, .
19 (b) does not
exempt a person that is conducting business as
20 a pawnbroker from the requirement to obtain a license under this
21 act. Licensure under 1917 PA 350, MCL 445.401 to 445.408, does
22 not exempt a person that is conducting business as a pawnbroker
23 from the requirement to obtain a license under this act.
24 (3) An A
person that operates an internet
drop-off store in
25 compliance with that
meets the following conditions is
exempt
26 from licensure the
requirement to obtain a license as a
27 pawnbroker under this act:
1 (a) Has The
person has a fixed place of business within
in
2 this state. except that he or she
3 (b) The person exclusively transacts all purchases or sales
4 by means of the internet and the purchases and sales are not
5 physically transacted on the premises of that the fixed
place of
6 business described in subdivision (a).
7 (c) (b) Has The
person has the personal property or
other
8 valuable thing available on a website for viewing by photograph,
9 if available, by the general public at no charge, which website
10 shall be and the
website is searchable by zip code or
state, or
11 both. The website viewing shall include, as applicable, serial
12 number, make, model, and other unique identifying marks, numbers,
13 names, or letters appearing on the personal property or other
14 valuable thing.
15 (d) (c) Maintains The person maintains records
of the sale,
16 purchase, consignment, or trade of the personal property or other
17 valuable thing for at least 2 years. , which The records
shall
18 contain a description, including a photograph, if available, and,
19 if applicable, serial number, make, model, and other unique
20 identifying marks, numbers, names, or letters appearing on the
21 personal property or other valuable thing.
22 (e) (d) Provide the The person provides a local
police
23 agency with any name under which it conducts business on the
24 website and access to the business premises at any time during
25 normal business hours for purposes of inspection.
26 (f) (e) Within
24 hours after a request from a local police
27 agency, provide the
person provides an electronic copy of
the
1 seller's or consignor's name, address, telephone number, driver
2 license number and issuing state, the buyer's name and address,
3 if applicable, and a description of the personal property or
4 other valuable thing as described in subdivision (c). (d). The
5 provision of person
shall provide the information shall
be in a
6 format that is acceptable to the local police agency but shall at
7 least be in a legible format and in the English language.
8 (g) (f) Provide The person provides that
payment for the
9 personal property or other valuable thing is executed by means of
10 check or other electronic payment system , so long as the payment
11 is not made and not in cash. No The person shall not provide
12 payment shall be provided to the seller until the item is sold.
13 (h) (g) Immediately remove The person immediately removes
14 the personal property or other valuable thing from the website if
15 the local police agency determines that the personal property or
16 other valuable thing is stolen.
17 Sec. 2. (1) The Subject
to subsection (5), the chief
18 executive officer of the a governmental unit may grant
under his
19 or her hand, and the official seal of his or her office, to any
20 suitable person, corporation, or firm a license authorizing issue
21 a license to any suitable person under this act that authorizes
22 that person , corporation, or firm to conduct the business of a
23 pawnbroker in that governmental unit, subject to the provisions
24 of this act.
25 (2) The A license issued
under this section shall designate
26 the particular place in the governmental unit where that person ,
27 corporation, or firm shall
conduct the pawnbroker business. A
1 person , corporation, or firm receiving that receives a license
2
under this section shall not conduct the
a pawnbroker business in
3 any other place than the place designated in the license.
4 (3) The term of a license issued under this section is 1
5 year, from beginning on the date of
issuance. , unless revoked
6
The license is revocable for cause , and is not transferable.
7 (4) Before issuance of the license, the applicant shall pay
8 A chief executive officer shall not issue a license under this
9 section unless the applicant does all of the following at the
10 time the application is submitted:
11 (a) Pays to the treasurer of the governmental unit an annual
12 license fee. in the amount determined under subsection (5)
and
13 give The governmental
unit shall determine the specific amount of
14 the annual license fee, but the governmental unit shall not
15 establish an annual license fee that is less than $50.00 or more
16 than $500.00.
17 (b) Provides a bond to the governmental unit that is in its
18 corporate name, in the penal sum of $3,000.00, with at least 2
19 sureties, that is conditioned for on the
faithful performance of
20 the duties and obligations pertaining to the conduct of the
21 pawnbroker business and for the payment of all costs and damages
22 incurred by as a
result of any violation of this act, .
The
23 governmental unit shall approve the bond.and that is satisfactory
24 to the governmental unit.
25 (5) The governmental unit may fix the amount to be paid as
26 the annual license fee at any amount not less than $50.00 or more
27 than $500.00.
1 (c) Pays the fee described in section 6(5) to the treasurer
2 of the governmental unit. The treasurer shall forward that fee to
3 the department on receipt.
4 (d) Pays the treasurer of the governmental unit an
5 application processing fee, if any. A governmental unit may
6 establish an application processing fee, in an amount that does
7 not exceed $50.00, for the review and processing of license
8 applications under this section.
9 (e) Pays the treasurer the processing fee described in
10 section 6(6), if any.
11 (5) (6) Notwithstanding any other provision of this
section,
12 the The authority of a governmental unit to issue a license
under
13 this act section is limited as follows:
14 (a) A county may shall
not issue a license for a location
15 within in a city or village with that has a
population greater of
16 more than 3,000.
17 (b) A county may shall
not issue a license for a location
18 within in a city or village with that has a
population of 3,000
19 or less fewer or within in a township or charter
township if that
20 city, village, township, or charter township has established the
21 license fee pursuant to under
subsection (5).(4)(a).
22 (c) A township or charter township may shall not
issue a
23 license for a location within in a village with that has a
24 population over of
more than 3,000 or a village with that has a
25 population of 3,000 or less fewer that has established a
an
26
annual license fee under subsection (5).(4)(a).
27 Sec. 3. As used in this act:
1 (a) "Chief executive officer" means any of the following:
2 (i) For a city, the mayor.
3 (ii) For a village, the village president.
4 (iii) For a township or charter township, the township
5 supervisor.
6 (iv) For a county, the county executive or, if there is no
7 county executive, the person an individual designated by
a
8 resolution of the county board of commissioners.
9 (b) "Department" means the department of state police.
10 (c) (b) "Governmental
unit" means a city, township, charter
11 township, county, or incorporated village.
12 (d) (c) "Internet
drop-off store" means a person
,
13 corporation, or firm that
contracts with other persons,
14 corporations, or firms another
person or persons to offer its
15 personal property or other valuable thing items for
sale,
16 purchase, consignment, or trade through means of an internet
17 website and meets the conditions described in section 1(3).
18 (e) "Item" means an article of personal property or any
19 other valuable thing, except securities or printed evidence of
20 indebtedness.
21 (f) (d) "Local
police agency" means the police agency of the
22 city, village, or township, or if none, the county sheriff of the
23 county, in which the a pawnbroker or internet
drop-off store
24 conducts business.
25 (g) (e) "Pawnbroker"
means a person , corporation, or
26 member, or members of a copartnership or firm, who that loans
27 money on deposit , or
pledge of personal property, or other
1 valuable thing, other than securities or printed evidence of
2 indebtedness, or who 1
or more items or that deals in the
3 purchasing of personal property or other valuable thing items on
4 condition of selling the same those items back again at a
5 stipulated price.
6 (h) "Pawned item" means an item taken by a pawnbroker as
7 collateral for a loan.
8 (i) "Person" means an individual, partnership, corporation,
9 limited liability company, or other legal entity.
10 (j) "Purchased item" means an item that is acquired for cash
11 by a pawnbroker without the intent to sell or return that item
12 back to the seller.
13 (k) "Reportable item" means any of the following:
14 (i) An item pawned to or purchased by a pawnbroker in this
15 state.
16 (ii) A precious item received or purchased by a dealer in
17 this state under the precious metal and gem dealer act, 1981 PA
18 95, MCL 445.481 to 445.492. As used in this subparagraph,
19 "dealer" and "precious item" mean those terms as defined in
20 section 2 of the precious metal and gem dealer act, 1981 PA 95,
21 MCL 445.482.
22 (iii) A second hand article purchased or received in exchange
23 by a second hand dealer or junk dealer under 1917 PA 350, MCL
24 445.401 to 445.408. As used in this subparagraph, "second hand
25 dealer" and "junk dealer" mean those terms as defined in section
26 3 of 1917 PA 350, MCL 445.403.
27 Sec. 5. (1) A pawnbroker shall keep a record prepare in
1 English, at the time the pawnbroker receives any article of
2 personal property or other valuable thing by way of pawn, that
3 includes a description of the article, a sequential transaction
4 number, any amount of money loaned on the article, the name,
5 residence, general description, and driver license number,
6 official state personal identification card number, or government
7 identification number of the person from whom the article was
8 received, and the day and hour when the article was received. and
9 permanently retain, a separate, accurate, and legible record of
10 each transaction in which it acquires a pawned item or purchased
11
item. The record, the pawnbroker's place where the of
business,
12 is carried on, and all articles
of property items in that place
13 of business are subject to examination at any time by the
14 attorney of the governmental unit, a local police agency, the
15 county prosecuting attorney of the county in which the
16 governmental unit is situated, or the department. of
state
17 police.
18 (2) Upon the receipt of any article of personal property or
19 other valuable thing by way of pawn, the pawnbroker shall make a
20 permanent record of the transaction on a form provided by the
21 pawnbroker that substantially complies with the form described in
22 subsection (4). Each record of transaction shall be completed in
23 duplicate by the pawnbroker, legibly in the English language, and
24 shall contain all applicable information required to complete the
25 record of transaction form under subsection (4). This subsection
26 does not prohibit the use and transmission of the information
27 required in the record of the transaction by means of computer or
1 other electronic media as permitted by the local police agency
2 within the applicable governmental unit.
3 (3) The pawnbroker shall retain a record of each transaction
4 and, within 48 hours after the property is received, shall send 1
5 copy of the record of transaction to the local police agency.
6 (4) The record of transaction form shall be 8-1/2 inches by
7 11 inches in size and shall be as follows:
8 RECORD
OF TRANSACTION
9 FRONT
10
11 Article |Serial No. |
12 | |
13 Model No. or Case No. |Lens No. or Move. No. |
14 | |
15 Trade Name |Color | Size | No. Jewels |
16 | | | |
17 Material | Stone Set Design |
18 | |
19 Description |No. |Kind of Stone |Size |
20 | | | |
21 | | | |
22 Inscription or Initials | | | |
23 | | | |
24 Purchase Price | Amt. Loaned | | | |
25 | | | | |
26 Dealer | | | |
27 | | | |
28 City | Date | Ticket No. |
29 | | |
30 Lady's[] Gent's [] Wrist [] Pocket [] Lapel []
31
BACK
32
33 Operator's License # or Other I.D. # |
34 |
35 Customer's Name (PRINT) |
36 |
37 Street No. or RFD |
38 |
39 City and State |
40 |
41 Employed By: | Rolled print of right thumb|
42 | (If impossible then some |
1 Age Height | other fingerprint. |
2 | Designate which.) |
3 Weight Race W [] B [] O []| |
4 | |
5 Time Received: AM PM | |
6 | |
7 Mail reports within 48 hours to | |
8 local officers | [] Male [] Female |
9 | |
10 Signature of person taking print| |
11 | |
12 (2) The record described in subsection (1) must include all
13 of the following information about each pawned item or purchased
14 item acquired by the pawnbroker:
15 (a) A description of the item.
16 (b) If applicable, the serial number, model number, case
17 number, or lens number of the item.
18 (c) If applicable, the item's trade name, color, size,
19 number of jewels, material, stone set design, number of stones,
20 description, kind, and size of each stone, inscription, or
21 initials.
22 (d) For a pawned item, the amount loaned on the item.
23 (e) For a purchased item, the purchase price of the item.
24 (f) The pawnbroker's name and address.
25 (g) The date and time of the transaction.
26 (h) The transaction number.
27 (i) The name and address of the owner of the pawned or
28 purchased item.
29 (j) The name and operator's license number or other
30 identification number of the individual from whom the item was
31 received; his or her date of birth, height, gender, weight, and
32 race; and his or her signature.
1 Sec. 6. A pawnbroker shall make daily, except Sunday, a
2 sworn statement of his or her transactions, describing the
3 articles received, and setting forth the name, residence, and
4 description of the person from whom the articles were received,
5 to the chief of police or chief law enforcement officer of the
6 governmental unit.
7 (1) Within 48 hours after it receives a pawned item in a
8 transaction described in section 5(1), a pawnbroker shall
9 electronically transmit the information described in section
10 5(2)(a), (b), (d), and (f) to (h) for that item to the
11 department, in a format determined by the department.
12 (2) Within 48 hours after it receives a purchased item in a
13 transaction described in section 5(1), a pawnbroker shall
14 electronically transmit the information described in section
15 5(2)(a), (b), and (e) to (h) for that item to the department, in
16 a format determined by the department.
17 (3) Within 90 days after the effective date of the
18 amendatory act that added this subsection, the department shall
19 implement and maintain a statewide electronic database of items.
20 All of the following apply to the database:
21 (a) The database shall include the information transmitted
22 to the department under any of the following:
23 (i) Subsection (1) or (2).
24 (ii) Section 4a of the precious metal and gem dealer act,
25 1981 PA 95, MCL 445.484a.
26 (iii) Section 4a of 1917 PA 350, MCL 445.404a.
27 (b) Only the department and other law enforcement agencies
1 shall have access to the information in the database.
2 (c) The department may operate the database or may select
3 and contract with a single third-party provider to operate the
4 database. If the department contracts with a third-party provider
5 for the operation of the database, all information obtained from
6 any of the following shall be electronically stored in the
7 department:
8 (i) Pawnbrokers under this section.
9 (ii) Dealers under the precious metal and gem dealer act,
10 1981 PA 95, MCL 445.481 to 445.492. As used in this subparagraph,
11 "dealer" means that term as defined in section 2 of the precious
12 metal and gem dealer act, 1981 PA 95, MCL 445.482.
13 (iii) Second hand dealers or junk dealers under 1917 PA 350,
14 MCL 445.401 to 445.408. As used in this subparagraph, "second
15 hand dealer" and "junk dealer" mean those terms as defined in
16 section 3 of 1917 PA 350, MCL 445.403.
17 (d) Information in the database is confidential, is not
18 subject to disclosure under the freedom of information act, 1976
19 PA 442, MCL 15.231 to 15.246, and shall not be disclosed to any
20 person except for purposes of this act and for law enforcement
21 purposes.
22 (4) By July 1, 2015, each pawnbroker shall implement any
23 software that the department determines is necessary to
24 administer the collection of information required under this
25 section.
26 (5) Each pawnbroker shall pay an annual fee of not more than
27 $250.00 for each of its licensed locations for the implementation
1 and maintenance of the database described in this section. The
2 department shall determine the specific amount of the fee. The
3 treasurer of each governmental unit shall collect the fee on
4 behalf of the department under section 2(4)(c).
5 (6) The treasurer of a governmental unit that collects a
6 database fee on behalf of the department may charge and collect a
7 fee for processing the database fee. The amount of a processing
8 fee under this subsection shall not exceed $50.00. As used in
9 this subsection, "database fee" means the fee described in
10 subsection (5).
11 Sec. 18. (1) Any person who shall violate any of the
12 provisions of this act, whether as owner, or as clerk, agent,
13 servant or employe, shall be guilty of a misdemeanor and upon
14 conviction thereof in any court of competent jurisdiction be
15 fined not less than 25 dollars nor more than 100 dollars, or by
16 imprisonment in the county jail not less than 10 days nor more
17 than 3 months, or by both such fine and imprisonment in the
18 discretion of the court.A
pawnbroker that knowingly violates this
19 act is guilty of a misdemeanor punishable by imprisonment for not
20 more than 1 year or a fine of $1,000.00, or both.
21 (2) A pawnbroker that violates this act a subsequent time is
22 guilty of a felony punishable by imprisonment for not more than 2
23 years or a fine of $5,000.00, or both.
24 Enacting section 1. This amendatory act takes effect January
25 1, 2015.
26 Enacting section 2. This amendatory act does not take effect
27 unless all of the following bills of the 97th Legislature are
1 enacted into law:
2 (a) Senate Bill No. ____ or House Bill No. 5835 (request no.
3 04964'14 *).
4 (b) Senate Bill No. ____ or House Bill No. 5836 (request no.
5 04965'14 *).