HOUSE BILL No. 4593

 

April 18, 2013, Introduced by Reps. Muxlow, Tlaib, Pagel, Victory, Lauwers, Zemke, Faris, Brown, Callton, Price, Zorn, MacGregor, Hobbs, Switalski, Talabi, Kandrevas and Roberts and referred to the Committee on Regulatory Reform.

 

     A bill to amend 2008 PA 429, entitled

 

"Nonferrous metal regulatory act,"

 

by amending sections 7, 11, 13, and 17 (MCL 445.427, 445.431,

 

445.433, and 445.437), and by adding section 10; and to repeal acts

 

and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7. (1) Except Subject to subsection (4), and except as

 

otherwise provided in this subsection, section, a scrap metal

 

dealer shall produce prepare and maintain an a separate, 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; , the dealer 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 the dealer 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:

 

     (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; the name of the scale operator who weighs

 

and inspects that property; and the name of the employee of the

 

scrap metal dealer who purchased or authorized the purchase of the

 

scrap metal on the dealer's behalf if the purchaser was not the

 

scale operator.

 

     (g) A photograph or digital or electronic image of the scrap

 

metal purchased. A digital or electronic image that meets 1 of the

 

following is sufficient for purposes of this subdivision even if

 

each item of scrap metal is not shown in the image:

 

     (i) If the scrap metal and the vehicle in which it is delivered

 

are weighed, an overhead image of the vehicle and the scrap metal

 

in the vehicle on the scale.

 

     (ii) If only the scrap metal is weighed, an image of the scrap

 

metal on the scale.

 

     (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 is

 

not required to obtain the information described in subsection (2)

 

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.

 

     (4) A scrap metal dealer may utilize an electronic record-

 

keeping system for purposes of subsection (1) if that system allows

 

for immediate access to each seller's purchase transaction

 

activities, documents, and images, including, but not limited to,

 

electronic copies of the records described in subsection (2) or

 

(3), the payment information contained in the card or receipt, and

 

the image of the seller described in section 5(1)(a)(ii).

 

     Sec. 10. A person shall not knowingly sell or attempt to sell

 

to a scrap metal dealer, and a scrap metal dealer shall not


 

knowingly purchase or attempt to purchase, any of the following

 

types of personal property:

 

     (a) Public fixtures.

 

     (b) New metal articles or materials, such as those used in a

 

manufacturing process or construction.

 

     (c) Equipment or tools used by contractors.

 

     (d) Metal articles or materials that are clearly marked as

 

property belonging to a person other than the seller.

 

     (e) A commemorative, decorative, or other cemetery-related or

 

apparently ceremonial article.

 

     (f) Metal articles or materials removed from property owned by

 

a railroad company or from a railroad right-of-way.

 

     Sec. 11. (1) A scrap metal dealer shall register with or

 

subscribe to, and maintain that registration or subscription with,

 

and use in the conduct of its business, an internet-based database

 

available to scrap metal dealers, law enforcement agencies, and the

 

general public that lists and tracks, at a minimum, thefts of

 

nonferrous scrap metal. and articles containing nonferrous metals.

 

The database may be reasonably limited in terms of time and

 

geographical area.

 

     (2) The existing database established by the institute of

 

scrap recycling industries, inc., referred to as the ISRI theft

 

alert system, is considered an appropriate internet-based database.

 

A scrap metal dealer may register with or subscribe to any other

 

database that provides substantially the same services as the a

 

database described in subsection (1).

 

     (3) A scrap metal dealer shall ensure that it makes available


 

to each of its employees engaged in purchasing or weighing scrap

 

metal sold or offered for sale to the scrap metal dealer each theft

 

alert, or similar notice that a scrap metal theft has occurred,

 

that the scrap metal dealer receives from the database service

 

described in this section, and that those employees review the

 

alerts or similar notices on a daily basis.

 

     Sec. 13. (1) A person who violates section 7(1) or section 9

 

knowing or having reason to know that he or she is violating those

 

sections If a person violates section 7, and knows or has reason to

 

know that section 7 was violated, the person is guilty of a

 

misdemeanor punishable by a fine of not more than $500.00 or

 

imprisonment for not more than 93 days, or both.

 

     (2) A person who buys or sells nonferrous metal articles

 

knowing or having reason to know that they are stolen Each of the

 

following is guilty of a felony punishable by imprisonment for not

 

more than 5 years or a fine of not more than $5,000.00, or both,

 

for a first offense and is guilty of a felony punishable by

 

imprisonment for not more than 5 years or a fine of not more than

 

$10,000.00, or both, for a second or subsequent offense:.

 

     (a) A scrap metal dealer that purchases scrap metal or an item

 

of personal property described in section 10 and knows or has

 

reason to know that it was stolen.

 

     (b) A person that sells scrap metal or an item of personal

 

property described in section 10 to a scrap metal dealer and knows

 

or has reason to know that it was stolen.

 

     Sec. 17. (1) A person may bring a private cause of action

 

against a seller or a scrap metal dealer, in a court of competent


 

jurisdiction, for monetary damages suffered from violation of this

 

act. by a seller or a dealer, or both.

 

     (2) The If the court in an action described in subsection (1)

 

finds that the violation included the purchase or sale of stolen

 

property, the court shall award treble damages for the value of the

 

nonferrous metal article property stolen. The court may award costs

 

regarding any aspect of an action brought under subsection (1). As

 

used in this subsection, "value of the nonferrous metal article

 

property stolen" means the greatest of the following:

 

     (a) The replacement cost of the stolen article.property.

 

     (b) The cost of repairing the damage caused by the larceny of

 

that article.the property.

 

     (c) The total of subdivisions (a) and (b).

 

     (3) The court may award costs and reasonable attorney fees in

 

an action brought under subsection (1).

 

     Enacting section 1. Section 9 of the nonferrous metal

 

regulatory act, 2008 PA 429, MCL 445.429, is repealed.

 

     Enacting section 2. This amendatory act does not take effect

 

unless both of the following bills of the 97th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. ____ or House Bill No. 4594(request no.

 

00702'13).

 

     (b) Senate Bill No. ____ or House Bill No. 4595(request no.

 

00752'13).