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 *).