HB-5958, As Passed House, May 16, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5958

     A bill to amend 1981 PA 95, entitled

"The precious metal and gem dealer act,"

by amending sections 2 and 3 (MCL 445.482 and 445.483), section 2

as amended by 1990 PA 34.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

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

or valuable consideration, is employed either directly or

indirectly by a dealer.

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

association, which, in whole or in part, engages in the ordinary

course of repeated and recurrent transactions of buying or

receiving precious items from the public within this state.

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

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

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

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

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

offer its precious items for sale, purchase, consignment, or trade

through means of an internet website and meets the conditions

described in section 3(3).

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

material that includes a precious gem.

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

township, or county.

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

city, village, or township, or if none, the county sheriff of the

county, in which the dealer or internet drop-off store conducts

business.

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

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

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

metal.

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

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

jadeite, topaz, tourmaline, turquoise, or pearl.

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

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

include the following:

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

behalf of, a government or private mint.

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

commodity exchanges.

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

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

who purchased them directly from a manufacturer.

     (iv) Industrial machinery or equipment.

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

the item was purchased and  which  that is accompanied by a valid

sales receipt.

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

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

returned directly to the customer.

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

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

$5.00.

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

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

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

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

customer.

(k)  (j) "Silver" means elemental silver having an atomic

weight of 107.869 and the chemical element symbol of Ag, whether

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

metal.

     Sec. 3. (1) A dealer shall not conduct business in a  city,

village, or township  local governmental unit in this state unless

the dealer has obtained a valid certificate of registration from

that local  city, village  governmental unit or  township  local

police agency.

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

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

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

herself, to obtain a registration under this act.

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

following conditions is exempt from registration as a dealer under

this act:

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

that he or she exclusively transacts all purchases or sales by

means of the internet and the purchases and sales are not

physically transacted on the premises of that fixed place of

business.

     (b) Has the personal property or other valuable thing

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

the general public at no charge, which website shall be searchable

by zip code or state, or both. The website viewing shall include,

as applicable, serial number, make, model, and other unique

identifying marks, numbers, names, or letters appearing on the

personal property or other valuable thing.

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

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

2 years, which records shall contain a description, including a

photograph, if available, and, if applicable, serial number, make,

model, and other unique identifying marks, numbers, names, or

letters appearing on the personal property or other valuable thing.

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

it conducts business on the website, access to the business

premises at any time during normal business hours for purposes of

inspection, and, within 24 hours after entering into the contract

for the sale, purchase, consignment, or trade of the personal

property or other valuable thing, an electronic copy of the

seller's or consignor's name, address, telephone number, driver

license number and issuing state, and description of the personal

property or other valuable thing as described in subdivision (c).

The provision of information shall be in a format acceptable to the

local police agency but shall at least be in a legible format and

in the English language.

     (e) Provide that payment for the personal property or other

valuable thing is executed by means of check or other electronic

payment system, so long as the payment is not made in cash.

     (f) Immediately remove the personal property or other valuable

thing from the website and notify the local police agency upon

learning if the verification reveals that the personal property or

other valuable thing is stolen.

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

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

to cover the reasonable cost of processing and issuing the

certificate of registration, by disclosing the following

information:

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

     (b) The name and address under which the applicant does

business.

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

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

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

name, address, and thumbprint of the new employee.

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

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

Act No. 328 of the Public Acts of 1931, as amended, being section

750.535 of the Michigan Compiled Laws  the Michigan penal code,

1931 PA 328, MCL 750.535, shall not be permitted to operate as a

dealer within this state for a period of 1 year after conviction.

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

convicted of a felony under this act or under section 535 of  Act

No. 328 of the Public Acts of 1931, as amended,  the Michigan penal

code, 1931 PA 328, MCL 750.535, shall not be permitted to operate

as a dealer within this state for a period of 5 years after the

conviction.

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

from complying with the local zoning ordinance or any local

ordinance regulating commercial activities. However, a local

government may not pass an ordinance, or enforce an existing

ordinance, that provides additional standards which must be met

before the issuance of a certificate of registration.

(8)  (6) Upon receipt of the application described in

subsection  (2)  (4), the local police agency shall issue a

certificate of registration in accordance with this section.

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

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

place in the dealer's place of business.

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

name or address under which the dealer does business, the dealer

shall notify the local police agency of the change.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) House Bill No. 5955.

     (b) House Bill No. 5956.

     (c) House Bill No. 5957.