Bill Text: MI SB0707 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Occupations; business licensing and regulation; state licensing of scrap metal dealers; establish. Creates new act. TIE BAR WITH: HB 4593'13
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-12-04 - Referred To Committee On Economic Development [SB0707 Detail]
Download: Michigan-2013-SB0707-Introduced.html
SENATE BILL No. 707
December 4, 2013, Introduced by Senator SMITH and referred to the Committee on Economic Development.
A bill to regulate and license scrap metal dealers; to provide
for the powers and duties of certain state officers and entities;
and to prescribe penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "scrap
metal licensing act".
Sec. 3. As used in this act:
(a) "Department" means the department of licensing and
regulatory affairs.
(b) "License" means a scrap metal dealer license under this
act.
(c) "Person" means an individual, partnership, corporation,
limited liability company, association, or other legal entity.
(d) "Scrap metal dealer" means that term as defined in section
3 of the scrap metal regulatory act, 2008 PA 429, MCL 445.423.
Sec. 5. (1) A person shall not engage in business as a scrap
metal dealer in this state without a scrap metal dealer license
from the department under this act.
(2) Except for an initial license, the term of a license is 1
year, beginning on January 1 and expiring on December 31 of the
next calendar year.
(3) The department shall issue an initial license for a term
from the effective date of that initial license, as determined by
the department, to the next December 31 after that effective date
or, at the option of the department, to the second December 31
after the effective date. If the effective date of the initial
license is not January 1, the department shall adjust the amount of
the license fee under section 9(3) for that initial term on a pro
rata basis to reflect the length of the initial term, as determined
by the department.
Sec. 7. This act or the issuance of a license under this act
does not affect an obligation a person may have under 1917 PA 350,
MCL 445.401 to 445.408, to obtain a license to carry on the
business of a second hand dealer or junk dealer in a city, county,
or village.
Sec. 9. (1) An applicant for a scrap metal dealer license
under this act shall file a written application with the
department. The application shall include all of the following
information about the scrap metal dealer:
(a) The name of the applicant for the license and, if the
applicant is a partnership, corporation, association, or other
legal entity, the name and the position of the individual filing
the application on behalf of the entity.
(b) The address of the principal office of the applicant.
(c) The business address of the location or locations in this
state where the scrap metal dealer conducts business or will
conduct business as a scrap metal dealer.
(2) The department may charge an application fee in the amount
of $100.00 for processing an initial application for a license.
(3) A scrap metal dealer shall pay an annual license fee of
$100.00 for a new or renewal license.
Sec. 11. (1) If the department receives an application
containing all of the information required under section 9(1), any
application fee charged by the department under section 9(2), and
the license fee described in section 9(3), the department may issue
a scrap metal dealer license to the applicant. A scrap metal dealer
license authorizes the applicant to engage in business as a scrap
metal dealer under this act in this state.
(2) A scrap metal dealer license issued under this act is
valid for the conduct of business as a scrap metal dealer only at
the location specified in the application under section 9(1)(c). A
separate scrap metal dealer license is required for each location
specified in the application under section 9(1)(c).
Sec. 13. (1) A scrap metal dealer shall ensure that any of its
employees who perform the duties of a scale operator, purchaser, or
supervisor has received training that meets the standards
established under subsection (2).
(2) After consultation with the department of state police and
persons familiar with the scrap metal industry, the department by
rule shall establish training standards for the training of scale
operators, purchasers, or supervisors employed by scrap metal
dealers. The training standards shall require training in at least
the following areas:
(a) The legal requirements of this act and the scrap metal
regulatory act, 2008 PA 429, MCL 445.421 to 445.443, and the
penalties for a violation of those requirements.
(b) How to identify stolen or illegal property.
(c) Safety procedures.
Sec. 15. (1) A scrap metal dealer licensed under this act
shall maintain a system of books and records and make them
available, on request during normal business hours, to the
department or local, state, or law enforcement agencies.
(2) A scrap metal dealer licensed under this act shall retain
the books and records described in this section for 1 of the
following periods, whichever is longer:
(a) For a record the scrap metal dealer is required to prepare
or maintain under the scrap metal regulatory act, 2008 PA 429, MCL
445.421 to 445.443, any time period required under that act.
(b) For a record the scrap metal dealer is required to prepare
or maintain as a licensee of a city, county, or village under 1917
PA 350, MCL 445.401 to 445.408, any time period required under that
act.
(c) For any other books and records, 5 years.
(3) As used in this section, "books and records" includes, but
is not limited to, any of the following records:
(a) The records the scrap metal dealer is required to prepare
or maintain under the scrap metal regulatory act, 2008 PA 429, MCL
445.421 to 445.443.
(b) If the scrap metal dealer is required to obtain a license
to carry on the business of a second hand dealer or junk dealer in
a city, county, or village under 1917 PA 350, MCL 445.401 to
445.408, the records the scrap metal dealer is required to prepare
or maintain under that act.
Sec. 17. (1) A scrap metal dealer or other person that does
any of the following is subject to the remedies described in
subsection (2):
(a) Engages in fraud or deceit in obtaining or renewing a
license.
(b) Acts as a scrap metal dealer in this state without a
license.
(c) Aids or abets another person in acting as a scrap metal
dealer without a license.
(d) Violates this act or the scrap metal regulatory act, 2008
PA 429, MCL 445.421 to 445.443.
(e) If the person is required to obtain a license to carry on
the business of a second hand dealer or junk dealer in a city,
county, or village under 1917 PA 350, MCL 445.401 to 445.408,
failing or neglecting to obtain that city, county, or village
license or otherwise violating that act.
(2) After notice and opportunity for hearing under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, the department shall do 1 or more of the following if it
determines that a person violated this act, a rule adopted under
this act, or an order issued under this act:
(a) If the person is a licensee, limit, suspend, or revoke the
person's license.
(b) Deny an initial license or the renewal of a license.
(c) Impose an administrative fine to be paid to the
department, in an amount that does not exceed $5,000.00.
(d) Require that the person pay restitution, based on proofs
submitted to and findings made by the hearing examiner after a
contested case.
Sec. 19. (1) A person shall not make a false statement in an
application for a scrap metal dealer license. A person that
violates this subsection is guilty of a misdemeanor punishable by
imprisonment for not more than 1 year or a fine of not more than
$500.00, or both.
(2) A person shall not conduct business as a scrap metal
dealer in this state without a scrap metal dealer license under
this act. A person that violates this subsection is guilty of a
misdemeanor punishable by imprisonment for not more than 1 year or
a fine of not more than $500.00, or both.
(3) Except for a violation described in subsection (1) or (2),
a person that commits any other violation of this act is guilty of
a misdemeanor punishable by imprisonment for not more than 1 year
or a fine of not more than $500.00, or both.
(4) Whether or not a person seeks damages under subsection (5)
or has an adequate remedy at law, a person may bring an action to
do any of the following:
(a) Obtain a declaratory judgment that a practice is in
violation of this act.
(b) Enjoin by temporary or permanent injunction a person that
is engaging or is about to engage in a practice in violation of
this act.
(5) In addition to obtaining equitable relief under subsection
(4), a person that suffers loss as a result of a violation of this
act may bring an individual or a class action to recover the
person's actual damages and reasonable attorney fees.
Enacting section 1. This act does not take effect unless House
Bill No. 4593 of the 97th Legislature is enacted into law.
