Bill Text: MI HB5447 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Occupations; business licensing and regulation; precious metal and gem dealer's business location; provide for designation in license and allow additional outlets under certain circumstances. Amends secs. 2, 3 & 4 of 1981 PA 95 (MCL 445.482 et seq.).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-09-23 - Printed Bill Filed 09/23/2009 [HB5447 Detail]

Download: Michigan-2009-HB5447-Introduced.html

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HOUSE BILL No. 5447

 

September 22, 2009, Introduced by Rep. Johnson and referred to the Committee on Regulatory Reform.

 

      A bill to amend 1981 PA 95, entitled

 

"The precious metal and gem dealer act,"

 

by amending sections 2, 3, and 4 (MCL 445.482, 445.483, and

 

445.484), sections 2 and 3 as amended by 2006 PA 295 and section

 

4 as amended by 1990 PA 34.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 2. (1) As used in this act:

 

 2        (a) "Agent or employee" means a person who, for compensation

 

 3  or valuable consideration, is employed either directly or

 

 4  indirectly by a dealer.

 

 5        (b) "Dealer" means any person, corporation, partnership,

 

 6  limited liability company, or association, which, in whole or in

 

 1  part, engages in the ordinary course of repeated either or both

 

 2  of the following:

 

 3        (i) Repeated and recurrent transactions of buying or

 

 4  receiving precious items from the public within this state.

 

 5        (ii) One or more sporadic or intermittent transactions of

 

 6  buying or receiving precious items from the public that meets any

 

 7  of the following conditions:

 

 8        (A) Occurs in 1 or more locations within this state even

 

 9  though the locations may be temporary.

 

10        (B) Is sponsored or cosponsored by a member of the public.

 

11        (C) Is held in a residence or a place of public gathering or

 

12  accommodation.

 

13        (D) Is conducted on a limited or invitation-only basis.

 

14        (E) Involves payment to, or the sharing of profits with,

 

15  another person who is not a dealer.

 

16        (c) "Gold" means elemental gold having an atomic weight of

 

17  196.967 and the chemical element symbol of Au, whether found by

 

18  itself or in combination with its alloys or any other metal.

 

19        (d) "Internet drop-off store" means a person, corporation,

 

20  or firm that contracts with other persons, corporations, or firms

 

21  to offer its precious items for sale, purchase, consignment, or

 

22  trade through means of an internet website and meets the

 

23  conditions described in section 3(3).

 

24        (e) "Jewelry" means an ornamental item made of a material

 

25  that includes a precious gem.

 

26        (f) "Local governmental unit" means a city, village,

 

27  township, or county.

 

 1        (g) "Local police agency" means the police agency of the

 

 2  city, village, or township local governmental unit, or if none,

 

 3  the county sheriff of the county, in which the dealer or internet

 

 4  drop-off store conducts business.

 

 5        (h) "Platinum" means elemental platinum having an atomic

 

 6  weight of 195.09 and the chemical element symbol of Pt, whether

 

 7  found by itself or in combination with its alloys or any other

 

 8  metal.

 

 9        (i) "Precious gem" means a diamond, alexandrite, ruby,

 

10  sapphire, opal, amethyst, emerald, aquamarine, morganite, garnet,

 

11  jadeite, topaz, tourmaline, turquoise, or pearl.

 

12        (j) "Precious item" means jewelry, a precious gem, or an

 

13  item containing gold, silver, or platinum. Precious item does not

 

14  include the following:

 

15        (i) Coins, commemorative medals, and tokens struck by, or in

 

16  behalf of, a government or private mint.

 

17        (ii) Bullion bars and discs of the type traded by banks and

 

18  commodity exchanges.

 

19        (iii) Items at the time they are purchased directly from a

 

20  dealer registered under this act, a manufacturer, or a wholesaler

 

21  who purchased them directly from a manufacturer.

 

22        (iv) Industrial machinery or equipment.

 

23        (v) An item being returned to or exchanged at the dealer

 

24  where the item was purchased and that is accompanied by a valid

 

25  sales receipt.

 

26        (vi) An item which is received for alteration, redesign, or

 

27  repair in a manner that does not substantially change its use and

 

 1  returned directly to the customer.

 

 2        (vii) An item which does not have a jeweler's identifying

 

 3  mark or a serial mark and which the dealer purchases for less

 

 4  than $5.00.

 

 5        (viii) Scrap metal which contains incidental traces of gold,

 

 6  silver, or platinum that are recoverable as a by-product.

 

 7        (ix) Jewelry which a customer trades for other jewelry having

 

 8  a greater value, and which difference in value is paid by the

 

 9  customer.

 

10        (k) "Silver" means elemental silver having an atomic weight

 

11  of 107.869 and the chemical element symbol of Ag, whether found

 

12  by itself or in combination with its alloys or any other metal.

 

13        (2) Use of the name "gold party" or other similar name that

 

14  may connote the conduct of a private or nonpublic transaction or

 

15  the absence of a permanent business location does not exempt a

 

16  person, corporation, partnership, association, or limited

 

17  liability company from the requirements of this act if the

 

18  person, corporation, partnership, association, or limited

 

19  liability company is acting or offering to act as a dealer.

 

20        Sec. 3. (1) A dealer shall not conduct business in a local

 

21  governmental unit in this state unless the dealer has obtained a

 

22  valid certificate of registration from that local governmental

 

23  unit or local police agency.

 

24        (2) This section does not require an internet drop-off store

 

25  complying with subsection (3), or a person engaged in the sale,

 

26  purchase, consignment, or trade of precious items for himself or

 

27  herself, to obtain a registration under this act.

 

 1        (3) An internet drop-off store in compliance with the

 

 2  following conditions is exempt from registration as a dealer

 

 3  under this act:

 

 4        (a) Has a fixed place of business within this state except

 

 5  that he or she exclusively transacts all purchases or sales by

 

 6  means of the internet and the purchases and sales are not

 

 7  physically transacted on the premises of that fixed place of

 

 8  business.

 

 9        (b) Has the personal property or other valuable thing

 

10  available on a website for viewing by photograph, if available,

 

11  by the general public at no charge, which website shall be

 

12  searchable by zip code or state, or both. The website viewing

 

13  shall include, as applicable, serial number, make, model, and

 

14  other unique identifying marks, numbers, names, or letters

 

15  appearing on the personal property or other valuable thing.

 

16        (c) Maintains records of the sale, purchase, consignment, or

 

17  trade of the personal property or other valuable thing for at

 

18  least 2 years, which records shall contain a description,

 

19  including a photograph, if available, and, if applicable, serial

 

20  number, make, model, and other unique identifying marks, numbers,

 

21  names, or letters appearing on the personal property or other

 

22  valuable thing.

 

23        (d) Provide the local police agency with any name under

 

24  which it conducts business on the website and access to the

 

25  business premises at any time during normal business hours for

 

26  purposes of inspection.

 

27        (e) Within 24 hours after a request from a local police

 

 1  agency, provide an electronic copy of the seller's or consignor's

 

 2  name, address, telephone number, driver license number and

 

 3  issuing state, the buyer's name and address if applicable, and a

 

 4  description of the personal property or other valuable thing as

 

 5  described in subdivision (c). The provision of information shall

 

 6  be in a format acceptable to the local police agency but shall at

 

 7  least be in a legible format and in the English language.

 

 8        (f) Provide that payment for the personal property or other

 

 9  valuable thing is executed by means of check or other electronic

 

10  payment system, so long as the payment is not made in cash. No

 

11  payment shall be provided to the seller until the item is sold.

 

12        (g) Immediately remove the personal property or other

 

13  valuable thing from the website if the local police agency

 

14  determines that the personal property or other valuable thing is

 

15  stolen.

 

16        (4) A dealer shall apply to the local police agency for a

 

17  certificate of registration, and pay a fee not to exceed $50.00

 

18  to cover the reasonable cost of processing and issuing the

 

19  certificate of registration, by disclosing the following

 

20  information:

 

21        (a) The name, home address, and thumbprint of the applicant.

 

22        (b) The name and business address under which the applicant

 

23  does business.

 

24        (c) The name, home address, and thumbprint of all agents or

 

25  employees of the dealer. Within 24 hours after hiring a new

 

26  employee, the dealer shall forward to the local police agency the

 

27  name, home address, and thumbprint of the new employee.

 

 1        (5) A dealer or an agent or employee of a dealer who is

 

 2  convicted of a misdemeanor under this act or under section 535 of

 

 3  the Michigan penal code, 1931 PA 328, MCL 750.535, shall not be

 

 4  permitted to operate as a dealer within this state for a period

 

 5  of 1 year after the date of the conviction.

 

 6        (6) A dealer or an agent or employee of a dealer who is

 

 7  convicted of a felony under this act or under section 535 of the

 

 8  Michigan penal code, 1931 PA 328, MCL 750.535, shall not be

 

 9  permitted to operate as a dealer within this state for a period

 

10  of 5 years after the date of the conviction.

 

11        (7) This act shall not be construed to excuse a dealer from

 

12  complying with the local zoning ordinance or any local ordinance

 

13  regulating commercial activities. However, a local government

 

14  governmental unit may not pass an ordinance, or enforce an

 

15  existing ordinance, that provides additional standards which that

 

16  must be met before the issuance of a certificate of registration.

 

17        (8) Upon receipt of the application described in subsection

 

18  (4), the local police agency shall issue a certificate of

 

19  registration in accordance with this section.

 

20        (9) Upon receipt of the certificate of registration from the

 

21  local police agency, the dealer shall post it in a conspicuous

 

22  place in the dealer's place of business.

 

23        (10) Not less than 10 days before a dealer changes the name

 

24  or address under which the dealer does business, the dealer shall

 

25  notify the local police agency of the change.

 

26        (11) Except as otherwise provided in this subsection, a

 

27  dealer shall operate from a fixed location. A person,

 

 1  corporation, partnership, association, or limited liability

 

 2  company desiring to operate at, or conduct an event at, a

 

 3  location within the local governmental unit issuing the dealer

 

 4  registration other than that location for which the registration

 

 5  was issued shall send a written or electronic notice regarding

 

 6  the conduct of the event to the local governmental unit and the

 

 7  local police agency, not less that 10 days before any proposed

 

 8  event. The dealer shall state the date, time, and address at

 

 9  which the event will occur. If a dealer desires to operate at, or

 

10  conduct an event at, a location outside the local governmental

 

11  unit issuing the dealer registration, the dealer shall apply for

 

12  a registration within the new local governmental unit. A local

 

13  governmental unit may enact an ordinance to administer the

 

14  provisions of this subsection and may provide for the imposition

 

15  of an additional fee based upon the actual cost of administering

 

16  the ordinance.

 

17        (12) In the case of a dealer buying or selling gold, silver,

 

18  or other precious item having an ascertainable market value, a

 

19  dealer shall post or otherwise make available the following:

 

20        (a) The market price, current as of 24 hours from the

 

21  closing of the previous market day.

 

22        (b) The specific type of weights and measures being used by

 

23  the dealer.

 

24        (c) The buying and selling policies of the dealer.

 

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

 

26  each transaction, on record of transaction forms provided for in

 

27  subsection (6), legibly written in ink in the English language.

 

 1  Each record of transaction form shall be filled out in

 

 2  quadruplicate by the dealer or agent or employee of the dealer.

 

 3  One copy of the form shall go to the appropriate local police

 

 4  agency or sheriff's department pursuant to subsection (3); 1 copy

 

 5  shall go to the customer; and 1 copy shall be retained by the

 

 6  dealer pursuant to subsection (5). At the time a dealer receives

 

 7  or purchases a precious item, the dealer or the agent or employee

 

 8  of the dealer shall insure that the following information is

 

 9  recorded accurately on a record of transaction form:

 

10        (a) The dealer certificate of registration number.

 

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

 

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

 

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

 

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

 

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

 

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

 

17        (c) The date and location of the transaction.

 

18        (d) The name of the person conducting the transaction and,

 

19  if applicable, the name and home address of the person receiving

 

20  a payment or share of the profits regarding the transaction.

 

21        (e) The name, date of birth, driver's license number or

 

22  state of Michigan personal identification card number, and street

 

23  and house number home address of the customer, together with a

 

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

 

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

 

26  However, the thumbprint or fingerprint shall only be required on

 

27  the record of transaction form retained by the dealer. The

 

 1  thumbprint or fingerprint shall be made available to a local

 

 2  police agency during the course of a police investigation

 

 3  involving a precious item or items described on the record of

 

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

 

 5  of transaction, if a police investigation concerning a precious

 

 6  item or items described on the record of transaction has not

 

 7  occurred, the dealer and any local police agency or sheriff's

 

 8  department holding a copy of the record of transaction shall

 

 9  destroy, and not keep a permanent record of, the record of

 

10  transaction. A dealer who goes out of business or changes his or

 

11  her business address to another local jurisdiction either within

 

12  or out of this state shall transmit the records of all

 

13  transactions made by the dealer within 1 year before his or her

 

14  closing or moving, to the local police agency.

 

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

 

16  or precious items.

 

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

 

18  order, bank draft, electronic credit or funds transfer, or cash.

 

19  If the payment is by check, money order, or bank draft, the

 

20  dealer shall indicate the number of the check, money order, or

 

21  bank draft.

 

22        (h) The customer's signature.

 

23        (2) The record of each transaction shall be numbered

 

24  consecutively, commencing with the number 1 and the calendar

 

25  year.

 

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

 

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

 

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

 

 2  form indicates that the customer resides outside the jurisdiction

 

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

 

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

 

 5  township local governmental unit in which the customer resides as

 

 6  set forth on the record of transaction, or, if that city,

 

 7  village, or township local governmental unit does not have a

 

 8  police agency, to the sheriff's department of the county in which

 

 9  the customer resides as set forth on the record of transaction.

 

10  The record of transaction forms received by a local police agency

 

11  or sheriff's department shall not be open to inspection by the

 

12  general public. Each local police agency or sheriff's department

 

13  holding record of transaction forms shall be responsible for

 

14  insuring the confidentiality of the record of transaction forms

 

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

 

16  for the purpose for which they were received.

 

17        (4) The record of transaction forms of a dealer and each

 

18  precious item received shall be open to an inspection by the

 

19  county prosecuting attorney, the local police agency, the police

 

20  agency or sheriff's department of the local governmental unit in

 

21  which the customer resides, and the Michigan state police, at all

 

22  times during the ordinary business hours of the dealer. As a

 

23  condition of doing business, a dealer is considered to have given

 

24  consent to the inspection prescribed by this subsection. The

 

25  record of transaction forms of a dealer shall not be open to

 

26  inspection by the general public.

 

27        (5) Except as otherwise provided in this section, each

 

 1  record of a transaction shall be retained by the dealer for not

 

 2  less than 1 year after the transaction to which the record

 

 3  pertains.

 

 4        (6) The form of the record of transaction shall have an 8-

 

 5  1/2 by 11 inch size and shall be as follows:

 

 

6                        "Record of Transaction

7  Dealer Certificate # ______________ #  _________________________

8                        (Printed on      (Transaction number

9                         the form)        printed on the form)

10      (1) Description of Property - ____________________________

11 _______________________________________________________________

12 _______________________________________________________________

13 _______________________________________________________________

14 _______________________________________________________________

15      (2) _______________, 19___  (3) __________________________

16              (Date)                  (Name of Dealer/Employee)

17      (4) ____________________,       _____________________ 19__

18          (Name of Customer)               (Date of Birth)

19          ____________________,       __________________________

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

21       Mich. Personal ID Number)

22                                      __________________  ______

23                                        (City & State)     (Zip)

24      (5) ______________________      __________________________

25              (Price Paid)              (County of Residence)

26      (6) ______________________

27          (Check no., bank draft

28           no., money order no., or

29                     cash)

30 _______________________________________________________________

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

32                    in which customer resides)

33

34

35         Thumbprint                   _________________________"

1                                        (Signature of Customer)

 

 

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

 

 3  from whom the dealer or the agent or employee of the dealer

 

 4  receives or purchases a precious item.