This is our starting text

HB-5955, As Passed Senate, June 28, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5955

A bill to amend 1917 PA 273, entitled

"An act to regulate and license pawnbrokers in certain governmental

units of this state; and to prescribe certain powers and duties of

certain local governmental units and state agencies,"

by amending sections 1 and 3 (MCL 446.201 and 446.203), section 1

as amended by 2004 PA 585 and section 3 as amended by 2002 PA 469.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. (1) A person, corporation, or firm shall not conduct

business as a pawnbroker in any of the governmental units of this

state without having first obtained from the chief executive

officer of that governmental unit a license under this act that

authorizes that person, corporation, or firm to conduct that

business. This subsection does not require an internet drop-off

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

sale, purchase, consignment, or trade of personal property or other

valuable thing for himself or herself, to obtain a license under

this act.

(2) Licensure under either or both of the following acts does

not exempt a person from obtaining a license under this act:

(a) The precious metal and gem dealer act, 1981 PA 95, MCL

445.481 to 445.492.

(b) 1917 PA 350, MCL 445.401 to 445.408.

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

following conditions is exempt from licensure as a pawnbroker 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.

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 and access to the business

premises at any time during normal business hours for purposes of

inspection.

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

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

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

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

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.

(f) 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. No

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

(g) Immediately remove the personal property or other valuable

thing from the website if the local police agency determines that

the personal property or other valuable thing is stolen.

Sec. 3. As used in this act:

(a) "Chief executive officer" means any of the following:

(i) For a city, the mayor.

(ii) For a village, the village president.

(iii) For a township or charter township, the township

supervisor.

(iv) For a county, the county executive or, if there is no

county executive, the person designated by a resolution of the

county board of commissioners.

(b) "Governmental unit" means a city, township, charter

township, county, or incorporated village.

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

offer its personal property or other valuable thing for sale,

purchase, consignment, or trade through means of an internet

website and meets the conditions described in section 1(3).

(d) "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 internet drop-off store conducts business.

(e) ~~(c)~~ "Pawnbroker" means a person, corporation, or member,

or members of a copartnership or firm, who loans money on deposit,

or pledge of personal property, or other valuable thing, other than

securities or printed evidence of indebtedness, or who deals in the

purchasing of personal property or other valuable thing on

condition of selling the same back again at a stipulated price.

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. 5956.

(b) House Bill No. 5957.