Bill Text: MI HB5490 | 2011-2012 | 96th Legislature | Introduced

---

Bill Title: Occupations; junk and secondhand dealers; nonferrous metal regulatory act; extend to other scrap metal and scrap metal dealers. Amends title & sections 1, 3, 5 & 7 of 2008 PA 429 (MCL 445.421 et seq.). TIE BAR WITH: HB 5491'12, HB 5492'12

Spectrum: Moderate Partisan Bill (Democrat 8-2)

Status: (Introduced - Dead) 2012-03-21 - Printed Bill Filed 03/21/2012 [HB5490 Detail]

Download: Michigan-2011-HB5490-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5490

 

March 20, 2012, Introduced by Reps. Tlaib, Greimel, Smiley, Olson, Muxlow, Irwin, Liss, Kandrevas, Bauer and Rutledge and referred to the Committee on Regulatory Reform.

 

     A bill to amend 2008 PA 429, entitled

 

"Nonferrous metal regulatory act,"

 

by amending the title and sections 1, 3, 5, and 7 (MCL 445.421,

 

445.423, 445.425, and 445.427).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to regulate the purchase and sale of certain nonferrous

 

metals; to provide for disclosures by certain persons regarding

 

certain transactions; to require the creation of records for

 

certain purposes and for the use of certain databases by certain

 

persons; scrap metal and other metal articles to scrap metal

 

dealers; to require sellers to provide and scrap metal dealers to

 

obtain certain information at the time of a purchase transaction;

 

to require that scrap metal dealers implement and maintain records

 

of their purchase transactions and to make those records available

 

for law enforcement purposes; and to provide for penalties and

 

remedies.

 

     Sec. 1. This act shall be known and may be cited as the

 

"nonferrous "scrap metal regulatory act".

 

     Sec. 3. As used in this act:

 

     (a) "Dealer" means any person that is not a first purchaser

 

who purchases nonferrous metals from any seller. Dealer includes,

 

but is not limited to, a person, whether or not licensed under

 

state law or local ordinance, that operates a business as a scrap

 

metal recycler, scrap processor, secondhand and junk dealer, or

 

other person who purchases any amount of nonferrous metal on a

 

regular, sporadic, or 1-time basis. Dealer does not include an

 

automotive recycler regulated by and complying with section 217 of

 

the Michigan vehicle code, 1949 PA 300, MCL 257.217; section 18 of

 

the motor vehicle service and repair act, 1974 PA 300, MCL

 

257.1318; or section 2 of 1986 PA 119, MCL 257.1352, when engaging

 

in activities that meet the definition of automotive recycler as

 

defined in section 2a of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.2a.

 

     (b) "Documentation" means a signed statement that indicates

 

where the person obtained the article, that the person is

 

authorized to sell the article, or other evidence that reasonably

 

demonstrates ownership of the article and the source of the

 

article.

 

     (c) "Ferrous metal" means a metal that contains significant

 

quantities of iron or steel.

 

     (a) (d) "First purchaser" means the first buyer of a metal

 

article or other manufactured product containing nonferrous item

 

that contains metal in a retail or business-to-business

 

transaction. Persons purchasing nonferrous metal A person that

 

purchases scrap metal, or other personal property described in

 

section 10, in violation of this act, or an automotive recyclers,

 

pawnshops, recycler, pawnshop, scrap metal recyclers, and recycler,

 

or scrap processors are processor is not considered a first

 

purchasers.purchaser.

 

     (b) (e) "Industrial or commercial account customer" means any

 

person, operating a person that operates from a fixed location ,

 

that and is a seller of ferrous or nonferrous scrap metal to a

 

scrap metal recycler pursuant to dealer under a written agreement.

 

     (f) "Nonferrous metal" means a metal that does not contain

 

significant quantities of ferrous metal but contains copper, brass,

 

platinum-based metals, aluminum, bronze, lead, zinc, nickel, or

 

alloys of those metals.

 

     (c) "Metal article" means a metal item, including, but not

 

limited to, a public fixture, that is usable for its original

 

intended purpose without processing, repair, or alteration, but is

 

offered for sale for the value of the metal it contains.

 

     (d) (g) "Person" means an individual, partnership,

 

corporation, limited liability company, joint venture, trust,

 

association, or other legal entity.

 

     (e) (h) "Public fixtures fixture" means articles containing

 

nonferrous metal that are a metal article that is used or located

 

in areas an area open to the public. and include The term includes,

 

but are is not limited to, a utility access covers cover; street

 

light and fixtures pole or fixture; road and or bridge guard rails

 

guardrail; highway or street signs sign; water meter covers cover;

 

traffic directional and or control signs sign; traffic light

 

signals signal; telecommunications cable; utility-related articles

 

metal article; and or historical markers.marker.

 

     (f) "Purchase transaction" means a purchase of scrap metal by

 

a scrap metal dealer.

 

     (g) (i) "Record" means a paper, electronic, or other generally

 

accepted method of storing information in a retrievable form.

 

     (h) "Scrap metal" means a metal article; metal removed from or

 

obtained by cutting, demolishing, or disassembling a building,

 

structure, or manufactured item; or other metal that cannot be used

 

for its original intended purpose but can be processed for reuse in

 

a mill, foundry, or other manufacturing facility.

 

     (i) "Scrap metal dealer" means a person that buys or sells

 

scrap metal and is not a first purchaser. The term includes, but is

 

not limited to, a person, whether or not licensed under state law

 

or local ordinance, that operates a business as a scrap metal

 

recycler, scrap processor, secondhand and junk dealer, or other

 

person that purchases any amount of scrap metal on a regular,

 

sporadic, or 1-time basis. The term does not include an automotive

 

recycler regulated by and complying with section 217 of the

 

Michigan vehicle code, 1949 PA 300, MCL 257.217; section 18 of the

 

motor vehicle service and repair act, 1974 PA 300, MCL 257.1318; or

 

section 2 of 1986 PA 119, MCL 257.1352, when engaging in activities

 

that meet the definition of automotive recycler as defined in

 

section 2a of the Michigan vehicle code, 1949 PA 300, MCL 257.2a.

 

     (j) "Scrap metal recycler" means a person that purchases

 

nonferrous metal that is intended for recycling or reuse, whether

 

regarded as a scrap processor, core buyer, or other similar

 

business operation.

 

     (k) "Scrap processor" means that term as defined in section 3

 

of 1917 PA 350, MCL 445.403.

 

     (l) "Seller" means any individual or a person that either

 

regularly, sporadically, or on a 1-time basis receives

 

consideration from any other person from the purchase by a scrap

 

metal dealer of nonferrous scrap metal offered by that seller.

 

     Sec. 5. (1) A dealer shall do all All of the following apply

 

to a scrap metal dealer:

 

     (a) Produce and maintain records as required under section

 

7(2).

 

     (b) Participate in a database meeting the requirements of

 

section 11.

 

     (c) Tag and hold any nonferrous metal as provided for in

 

section 9.

 

     (d) Pay a seller by a method capable of being traced from the

 

dealer to the seller. Payment by cash or currency of more than

 

$50.00, barter, or trade is not considered a payment that complies

 

with the requirement of this subdivision. Payment of cash in any

 

amount in a transaction involving predominantly copper articles is

 

considered a violation of this subdivision.

 

     (e) In the case of a transaction involving nonferrous metal,

 

verify that the seller is at least 16 years of age.

 

     (a) In a purchase transaction, a scrap metal dealer shall only

 

pay a seller by check or money order, mailed within 3 business days

 

to a street address provided to scrap metal dealer by the seller. A

 

scrap metal dealer shall not mail an instrument described in this

 

section to a post office box and shall not pay all or any part of

 

the purchase price in cash.

 

     (b) A scrap metal dealer in a purchase transaction shall not

 

accept barter or a trade or exchange of scrap metal or other

 

personal property.

 

     (c) A scrap metal dealer shall not enter into a purchase

 

transaction if the seller, if the seller is an individual, or the

 

individual acting as an agent or representative of the seller, is

 

not at least 16 years old. A scrap metal dealer shall not enter

 

into a purchase transaction without verifying the age of that

 

individual.

 

     (d) A scrap metal dealer shall not purchase scrap metal that

 

is not delivered in or on a vehicle licensed and titled for use on

 

public highways.

 

     (e) A scrap metal dealer shall ensure that it provides each

 

scale operator, purchaser, and supervisor employed by the dealer

 

the training described in section 13 of the scrap metal licensing

 

act.

 

     (2) A seller shall do all of the following:In a purchase

 

transaction, all of the following apply to a seller, if the seller

 

is an individual, or to an individual acting as an agent or

 

representative of a seller:

 

     (a) Present to the dealer He or she must present an operator's

 

or chauffeur's license, military identification card, Michigan

 

identification card, passport, or other government-issued

 

identification containing a photograph to the scrap metal dealer

 

and allow the scrap metal dealer to make a photocopy or electronic

 

copy of the identification.

 

     (b) Allow He or she must allow the scrap metal dealer to make

 

a thumbprint, to be used only for identification purposes by the

 

scrap metal dealer and for investigation purposes by a law

 

enforcement agency.

 

     (c) Execute He or she must execute and deliver to the scrap

 

metal dealer a signed statement indicating that the seller he or

 

she is the owner of, or is otherwise authorized to sell, the

 

nonferrous scrap metal offered for purchase to the scrap metal

 

dealer.

 

     (d) Attest to the lack of any criminal convictions An

 

individual who has been convicted of a crime involving the theft,

 

conversion, or sale of nonferrous metals.scrap metal may not enter

 

into a purchase transaction. As part of a purchase transaction, the

 

individual shall attest that he or she has not been convicted of a

 

crime described in this subdivision.

 

     Sec. 7. (1) Except as otherwise provided in this subsection,

 

section, a scrap metal dealer shall produce prepare and maintain an

 

accurate and legible record of each purchase transaction. The

 

dealer shall maintain the records produced under described in this

 

section for at least 1 year, shall keep the records in a location

 

that is readily accessible to a local, state, or federal law

 

enforcement agency for inspection during normal business hours, and

 

shall make the records, or copies of those records, available to

 

any local, state, or federal law enforcement agency upon that has a

 

reasonable suspicion of that a violation of this act has occurred.

 

     (2) The record of a purchase transaction regarding nonferrous

 

metal shall contain described in subsection (1) must include all of

 

the following, on a form provided by the department of state

 

police:

 

     (a) The name and address of the seller and the name and

 

address of the individual who is delivering the scrap metal if he

 

or she is not the seller. If an individual is a seller or

 

representative of a seller in more than 1 purchase transaction, the

 

scrap metal dealer may retain a copy of the individual's

 

information or document described in this subdivision in a separate

 

file and use that information in future purchase transactions.

 

     (b) (a) The name, address, and identifying number from the

 

seller's operator's or chauffeur's license, military identification

 

card, Michigan identification card, passport, or other government-

 

issued identification containing a photograph. presented under

 

section 5(2)(a). A legible scan or photocopy of the identification

 

is considered satisfactory in fulfilling meets the requirement of

 

this subdivision. In the case of a repeat seller, a copy of the

 

information may be kept on file with the dealer and be used for If

 

an individual is a seller or representative of a seller in more

 

than 1 purchase transaction, the scrap metal dealer may retain a

 

copy of the information or document described in this subdivision

 

in a separate file and use that information in future purchase

 

transactions.

 

     (c) (b) The license plate number of the vehicle delivering the

 

nonferrous metal.that delivered the scrap metal.

 

     (d) (c) The date and time of the purchase transaction.

 

     (e) (d) A description of the predominant types of scrap metal

 

purchases, purchased, made in accordance with the custom of the

 

trade.

 

     (f) (e) The weight, quantity, or volume of metal, made the

 

scrap metal purchased, described and calculated in accordance with

 

the custom of the trade, and the name of the employee of the scrap

 

metal dealer who weighs and inspects that property.

 

     (g) A photograph of the scrap metal purchased.

 

     (h) (f) The consideration paid and the method of payment.

 

     (i) (g) A The signed statement from the seller that the seller

 

is the owner of the metal or is otherwise authorized to sell the

 

metal subject to the transaction.described in section 5(2)(c).

 

     (j) (h) A legible thumbprint of the seller.described in

 

section 5(2)(b).

 

     (3) In the case of a seller that is A scrap metal dealer shall

 

retain the original of the completed record form prepared under

 

subsection (2) and provide the seller a copy of that completed

 

form.

 

     (4) A scrap metal dealer is not required to obtain all of the

 

information described in subsection (2) and complete the record

 

form described in that subsection for a purchase transaction with

 

an industrial or commercial account where payment is made by a

 

method capable of being traced from the dealer to the seller and

 

payment is made customer that meets all of the following:

 

     (a) Payment is made directly to the business, the dealer is

 

not required to produce the record described in subsection (2) so

 

long as the industrial or commercial customer.

 

     (b) The personal and business identifying information of the

 

industrial or commercial account seller customer is on file with

 

the scrap dealer and conforms to a written description of the type

 

of nonferrous scrap metal or articles customarily purchased by the

 

scrap metal dealer from that seller, and the information customer.

 

     (c) The information on file with the scrap metal dealer under

 

subdivision (b) is periodically reviewed at least every 2 years and

 

validated as current or updated by the scrap metal dealer.

 

     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. 5491(request no.

 

03565'11 *).

 

     (b) Senate Bill No. ____ or House Bill No. 5492(request no.

 

03566'11 *).