SENATE SUBSTITUTE FOR

HB-4593, As Passed Senate, December 11, 2013

HOUSE BILL NO. 4593

A bill to amend 2008 PA 429, entitled

"Nonferrous metal regulatory act,"

by amending the title and sections 1, 3, 5, 7, 9, 11, 13, and 17

(MCL 445.421, 445.423, 445.425, 445.427, 445.429, 445.431, 445.433,

and 445.437) and by adding sections 6 and 10.

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 items that contain ferrous or

nonferrous metal 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.~~

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

significant quantities of iron or steel.

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

manufactured ~~product containing~~ item that contains ferrous or

nonferrous metal in a retail or business-to-business transaction.

~~Persons purchasing nonferrous metal~~ A person that purchases scrap

metal, or other 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.

department, county, parish, municipality, or other unit of the

government of the United States, this state, another state, or a

foreign country.

(d) ~~(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

that provides for regular or periodic sale, delivery, purchase, or

receiving of scrap metal.

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

significant quantities of ferrous metal but contains copper, brass,

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

or alloys of those metals.

(f) ~~(g)~~ "Person" means an individual, partnership,

corporation, limited liability company, joint venture, trust,

association, or other legal entity.

(g) ~~(h)~~ "Public ~~fixtures~~ fixture" means ~~articles containing~~

~~nonferrous metal that are used or located in areas open to the~~

~~public and include, but are not limited to, utility access covers;~~

~~street light and fixtures; road and bridge guard rails; highway or~~

~~street signs; water meter covers; traffic directional and control~~

~~signs; traffic light signals; telecommunications cable; utility-~~

~~related articles; and historical markers.~~an item that contains

ferrous or nonferrous metal and is owned or under the exclusive

control of a governmental unit. The term includes, but is not

limited to, a street light pole or fixture, road or bridge

guardrail, traffic sign, traffic light signal, or historical

marker.

(h) "Purchase transaction" means a purchase of scrap metal, or

the purchase of property described in section 10(a) to (d) if the

knowing purchase or offer to purchase that property is not

prohibited by that section, by a scrap metal dealer. The term does

not include any of the following:

(i) The purchase of 1 or more used or secondhand, distressed,

or salvage vehicles or vehicle parts by a used or secondhand

vehicle dealer or used or secondhand vehicle parts dealer that is

licensed as a dealer under section 248 of the Michigan vehicle

code, 1949 PA 300, MCL 257.248, and is acting within the scope of

that dealer's license.

(ii) The purchase of 1 or more used or secondhand, distressed,

or salvage vehicles, vehicle parts, or vehicle scrap by a vehicle

scrap metal processor, vehicle salvage pool operator, or foreign

salvage vehicle dealer that is licensed as a dealer under section

248 of the Michigan vehicle code, 1949 PA 300, MCL 257.248, and is

acting within the scope of that dealer's license.

(iii) The purchase of 1 or more used or secondhand, distressed,

or salvage vehicles, vehicle parts, or vehicle scrap by an

automotive recycler that is licensed as a dealer under section 248

of the Michigan vehicle code, 1949 PA 300, MCL 257.248, if the

transaction is authorized under section 217c of the Michigan

vehicle code, 1949 PA 300, MCL 257.217c; 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.

(iv) The purchase of scrap metal by a mill, foundry, die

caster, or other manufacturing facility that purchases scrap metal

from an industrial or commercial customer for its own use in the

production of metal articles or materials and does not in the

ordinary course of its business purchase scrap metal for resale.

(v) The purchase of scrap metal from a governmental unit.

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

accepted method of storing information in a retrievable form.

(j) "Scale operator" means the employee of a scrap metal

dealer who operates or attends a scale that is used to weigh the

scrap metal in a purchase transaction.

(k) "Scrap metal" means ferrous or nonferrous metal, or items

that contain ferrous or nonferrous metal, that are sold or offered

for sale for the value of the ferrous or nonferrous metal they

contain rather than their original intended use; ferrous or

nonferrous 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, die caster, or

other manufacturing facility.

(l) "Scrap metal dealer" means a person or governmental unit

that buys 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.

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

ferrous or nonferrous metal that is intended for recycling or

reuse, whether regarded as a scrap processor, core buyer, or other

similar business operation.

(n) ~~(k)~~ "Scrap processor" means that term as defined in

section 3 of 1917 PA 350, MCL 445.403.

(o) (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) Unless section 6 applies, and except as provided in

subdivision (b), beginning 120 days after the effective date of the

amendatory act that added this subdivision, a scrap metal dealer

shall only pay a seller with 1 of the following in a purchase

transaction:

(i) A check or money order. A scrap metal dealer shall make and

retain a photograph or digital or electronic image of the delivery

of the check or money order to the seller or individual acting on

behalf of the seller in the purchase transaction.

(ii) An electronic payment card or encrypted receipt that may

only be converted to cash in an automated teller machine that is

located on the scrap metal dealer's premises; is used for the sole

purpose of dispensing cash in connection with purchase

transactions; and provides a digital or electronic image of the

dispensing of the cash to the seller.

(b) All of the following apply in a purchase transaction with

an industrial or commercial customer:

(i) The scrap metal dealer may pay using any of the following

forms of payment, as agreed to by the scrap metal dealer and the

industrial or commercial customer:

(A) By check, money order, or payment card or receipt

described in subdivision (a)(ii). If a payment described in this

sub-subparagraph is mailed to the industrial or commercial

customer, the scrap metal dealer may mail that payment to the

street address or post office box of the industrial or commercial

customer or to another person or post office box as directed by the

industrial or commercial customer.

(B) By bank wire transfer or other electronic delivery to an

account of the industrial or commercial customer.

(ii) The 3-day waiting period described in section 6 does not

apply to the purchase of any of the items described in that section

by an industrial or commercial customer.

exchange of scrap metal or other property in a purchase transaction

as all or part of the consideration for that transaction.

(d) A scrap metal dealer in a purchase transaction shall

examine the identification presented under subsection (2)(a) by the

seller or individual acting on behalf of the seller, and if the

identification presented displays the date of birth of the

individual, confirm that the individual is at least 16 years old

based on that date of birth.

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

scale operator, purchaser, and supervisor employed by the dealer

concerning the legal requirements of this act and the

responsibilities of the scrap metal dealer under this 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 an~~ He or she must present his or her

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

Michigan identification card, passport, or other government-issued

identification containing a his or her 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 take his or her thumbprint, to be used only for identification

purposes by the scrap metal dealer and for investigation purposes

by a law enforcement agency.

a signed statement ~~indicating~~ that ~~the seller~~ certifies that 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 and is at least 16 years old.

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

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

the conversion, or the sale of ~~nonferrous metals.~~scrap metal may

not enter into a purchase transaction. As part of a purchase

transaction, the individual shall certify that he or she has not

been convicted of a crime described in this subdivision.

Sec. 6. (1) Subject to subsection (2), beginning October 1,

2014, in a purchase transaction of any of the following items, a

House Bill No. 4593 as amended December 11, 2013

scrap metal dealer shall not pay the seller until 3 business days

after the date of the transaction, and shall pay the seller after

that period by making a direct deposit or electronic transfer to

the seller's account at a financial institution; by mailing a

check, money order, payment card, or receipt described in section

5(1)(a) to the seller, at the address shown on the identification

presented under section 5(2)(a); or by delivering a check, money

order, payment card, or receipt described in section 5(1)(a) to the

seller at the scrap metal dealer's premises:

(a) Catalytic converters, unless the seller is an automotive

recycler as defined in section 2a of the Michigan vehicle code,

1949 PA 300, MCL 257.2a; a manufacturer or wholesaler of catalytic

converters; or a muffler shop, tire store, or other retail business

that sells converters separately or as part of an exhaust system.

(b) Air conditioners, air conditioner evaporator coils or

condensers, or parts of air conditioner evaporator coils and

condensers.

or in part to remove the insulation, copper pipe, or copper

fittings.

(2) Subsection (1) does not apply, and a scrap metal dealer is

not required to delay payment in a purchase transaction of an item

described in subsection (1)(a) to (c), if<< >>

representatives of the scrap metal industry, in consultation with

the department of state police, implement and maintain an

electronic database that meets all of the following:

(a) Is available to all scrap metal dealers in this state.

(b) Is web-based.

by item description or seller.

(d) Is accessible to law enforcement agencies through a

password supported, internet-based platform.

(e) Allows a scrap metal dealer to report all of the following

information concerning the purchase of 1 or more of the items

described in subsection (1)(a) to (c):

(i) Name and address of the scrap metal dealer and seller.

(ii) Date and time of the purchase transaction.

(iii) A description of the item or items purchased.

(iv) The weight or volume of the item or items purchased.

(3) In addition to the requirements of subsection (2), the

person or persons that develop the database described in subsection

(2) shall endeavor, but are not required, to include the following

capabilities in the database:

(a) Allow the reporting of the information described in

subsection (2)(e) for the purchase of 1 or more items described in

subsection (1)(a) to (c) concurrently with the closing of the

purchase transaction of those items.

(b) Allow a law enforcement agency to flag the name of a

seller that appears in the database and, if a law enforcement

agency has flagged the name of a seller, the database will notify

the law enforcement agency if that seller is the seller in

subsequent purchase transactions and provide the agency all of the

information about the seller and its purchase transactions that

scrap metal dealers have reported to the database.

(4) If the database described in subsection (2) is implemented

as described in that subsection, beginning not later than 30 days

after implementation a scrap metal dealer shall do all of the

following:

(a) Register or subscribe to the database and pay a reasonable

fee for that registration or subscription.

(b) By the end of the business day following the date of a

purchase transaction of 1 or more items described in subsection

(1)(a) to (c), electronically report the purchase of the item or

items to the database. The report described in this subdivision

shall include all of the information described in subsection

(2)(e). A scrap metal dealer is not required to report the

consideration paid for the item or items or other pricing

information for inclusion in the database.

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, or to railroad police in investigation of

stolen railroad property, for inspection during normal business

hours; , and the dealer shall make the records, or copies of those

records, available on request to any local, state, or federal law

enforcement agency. ~~upon reasonable suspicion of violation of this~~

~~act.~~

(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.

vehicle, the license plate number of the vehicle. ~~delivering the~~

~~nonferrous 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, electronic, or video image of the

scrap metal purchased. A photograph or digital, electronic, or

video 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 photograph or image of the vehicle and the

scrap metal in the vehicle on the scale.

(ii) If only the scrap metal is weighed, a photograph or 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 metal 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.

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 described in section 5(1)(a)(i) or (ii).

Sec. 9. (1) A Subject to subsection (3), a scrap metal dealer

shall tag and hold, for 7 calendar days, any ~~article containing~~

~~nonferrous metal purchased from a seller and that is offered for~~

House Bill No. 4593 as amended December 11, 2013

~~purchase under any of the following circumstances:~~ of the following

items acquired in a purchase transaction:

~~(a) The article has altered or obliterated serial numbers, and~~

~~the person delivering the article does not have a written receipt~~

~~or documentation.~~

~~(b) Where, due to the identification on the article or due to~~

~~the type of article, the dealer would reasonably be considered to~~

~~have knowledge that the article is, or was, the property of a~~

~~governmental entity, and the person delivering the article does not~~

~~have a written receipt or documentation.~~

~~(c) Where, due to the identification on the article, the~~

~~dealer would reasonably be considered to have knowledge that the~~

~~article is, or was, the property of a business, and the person~~

~~delivering the article does not have a written receipt or~~

~~documentation.~~

~~(d) The article is a commemorative, decorative, or other~~

~~cemetery-related or apparently ceremonial article, and the person~~

~~delivering the article does not have a written receipt or~~

~~documentation.~~

~~(e) The article is subject to a notification or bulletin from~~

~~any law enforcement agency that is received by the dealer prior to~~

~~the purchase of the article.~~

(a) ~~(f) Where the article is copper~~ Copper wiring, whether

burned or with sheathing. ~~, and the person delivering the article~~

~~does not have a written receipt or documentation.~~

(b) A catalytic converter.

<<(c) clearly identifiable non-automotive air conditioning coils

which are sold separately from an air conditioner.>>

(2) ~~The tag and hold requirements of this section require the~~

~~dealer to also~~ A scrap metal dealer that purchases an item

described in subsection (1) shall create and maintain the records

required under section 7 regarding those articles, and if the

database described in section 6 is implemented, report the purchase

to the database.

(3) The tag and hold requirements of subsection (1) do not

apply to ~~any of the following:~~the acquisition of an item described

in subsection (1) from an industrial or commercial customer.

~~(a) Any article containing nonferrous metal that does not~~

~~conform to the circumstances described in subsection (1).~~

~~(b) Any article that has been the subject of tag and hold by 1~~

~~dealer in compliance with this section if that article is resold~~

~~directly to another dealer. In addition, any article that was not~~

~~initially subject to the tag and hold provisions of this section is~~

~~not thereafter subject to the tag and hold provisions if that~~

~~article is resold to another dealer.~~

~~(4) Except in the case where the seller has specific written~~

~~documentation that the seller is the owner, agent, or person with~~

~~authority to possess and sell certain articles, a seller shall not~~

~~sell or offer for sale, and a dealer shall not purchase, any~~

~~article containing nonferrous metal that is marked with any form of~~

~~the name, initials, markings, or logo of a governmental entity,~~

~~utility, cemetery, or railroad; any beer kegs; or any public~~

~~fixtures. Any sale is subject to the provisions of this act.~~

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 offer to purchase, any of the following types

of property:

(a) Public fixtures. This subdivision does not apply if the

seller is a governmental unit or the seller has written

authorization from the governmental unit that owned the property to

sell the property.

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

property belonging to a person other than the seller. This

subdivision does not apply if the seller has authorization from

that person to sell the property.

apparently ceremonial article. This subdivision does not apply if

the seller is the owner of the article; if the seller is authorized

by the owner of the article to sell the article; or if the seller

of a cemetery-related article is the cemetery in which the article

was located.

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

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

subdivision does not apply if the seller is the owner of the metal

articles or materials; is the manufacturer of the metal articles or

materials; is a contractor engaged in the business of repairing

railroad equipment; or is a person that has written authorization

from that owner, manufacturer, or contractor to sell those metal

articles or materials.

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 any

recent alerts or similar notices that they have not previously

reviewed 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, or section 9, and knows or

should have known that the person has violated that section, 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. If

a violation of section 7 is the result of a malfunction of an

electronic record-keeping system described in section 7(4), it is

an affirmative defense in an action against the scrap metal dealer

that utilizes that system that the dealer diligently pursued repair

of the electronic record-keeping system after the malfunction

occurred, and implemented and maintained a manual record-keeping

system for purchase transactions that occurred while the electronic

record-keeping system was malfunctioning.

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

~~knowing or having reason to know that they are stolen~~ In connection

with a purchase transaction, 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 property described in section 10 and knew or should have known

that it was stolen.

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

described in section 10 to a scrap metal dealer and knew or should

have known 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 and finds that the purchaser in an action against the

purchaser, or the seller in an action against the seller, knew or

should have known that the property was stolen, 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.

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

an action brought under subsection (1).

Enacting section 1. This amendatory act does not take effect

unless House Bill No. 4595 of the 97th Legislature is enacted into

law.