HOUSE SUBSTITUTE FOR SENATE SUBSTITUTE FOR

HB-4593, As Passed House, March 19, 2014

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, 11, 13, 15, and 17

(MCL 445.421, 445.423, 445.425, 445.427, 445.431, 445.433, 445.435,

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; to provide for the powers and duties of

certain state and local governmental officers and entities; 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 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.~~

House Bill No. 4593 (H-6) as amended March 19, 2014

~~(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), [ ] a scrap metal dealer

shall only pay a seller using 1 of the following methods of payment

in a purchase transaction and shall not pay the seller in cash or

using any other method of payment:

(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 that includes the

face of that seller or individual.

(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 or individual acting on behalf

of the seller in the purchase transaction that includes the face of

that seller or individual. For purposes of this section and section

6, payment using an electronic payment card or encrypted receipt

described in this subparagraph is not considered a payment in cash.

(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

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

industrial or commercial customer, and except as provided in

subdivision (c), shall not pay the seller in cash or using any

other method of payment:

(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 payment requirements described in section 6(1) do not

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

6(1)(a) to (c) 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.

House Bill No. 4593 (H-6) as amended March 19, 2014

(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) [in ] a purchase

transaction of any of the following items, the only methods of

payment a scrap metal dealer may use to pay a seller are a direct

deposit or electronic transfer to the seller's account at a

financial institution; subject to subsection (5), payment with a

check or money order described in section 5(1)(a)(i); or, subject to

subsection (5), payment with an electronic payment card or

encrypted receipt described in section 5(1)(a)(ii):

(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) Representatives of a group of companies in the scrap metal

industry, at their expense, may in consultation with the department

of state police develop or contract for the development of, and if

selected by the department of state police under subsection (3) may

implement, operate, 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) by noon of the next business

day after the purchase transaction of the item or items:

(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.

(f) Allows a law enforcement agency to flag the name of any

seller that appears in the database and who is an individual who

has been convicted of a crime involving the theft, conversion, or

sale of scrap metal; and, if a law enforcement agency has flagged

the name of that convicted seller, to notify the law enforcement

agency if he or she is the seller in subsequent purchase

transactions and provide the agency all of the information about

that convicted seller and his or her purchase transactions that

scrap metal dealers have reported to the database.

House Bill No. 4593 (H-6) as amended March 19, 2014

(3) If 1 or more electronic databases are developed under

subsection (2), the department of state police shall determine, and

shall notify each group of companies in the scrap metal industry

that developed a database or contracted for its development,

whether the features of the electronic database meet the

requirements of subsection (2)(a) to (f); and shall select a single

shared electronic database that meets the requirements of

subsection (2)(a) to (f) for implementation and operation in this

state for purposes of subsection (4). A person that objects to a

determination or selection by the department of state police under

this subsection may file a petition with the department that

describes the basis of the person's objection. If a person files a

petition under this subsection, the department of state police

shall provide that person an opportunity for an administrative

hearing. The hearing shall be conducted as a contested case under

the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

to 24.328.

(4) If a single shared electronic database selected by the

department of state police is implemented under subsection (3),

beginning not later than 30 days after the database is implemented

and in operation, as determined by the department of state police, [and

after the department of state police publishes notice that the database is implemented and in operation,]

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 noon of the next business day after a purchase

transaction of 1 or more items described in subsection (1)(a) to

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.

(5) If the purchase price in a purchase transaction described

in subsection (1) is $25.00 or more, or if the purchase price for

all of a seller's purchase transactions in a business day is $25.00

or more, the scrap metal dealer must pay the seller by mailing 1 of

the following items to the seller at the address shown on the

identification card presented under section 5(2)(a), and shall not

deliver that payment in person or using any other form of delivery:

(a) A check or money order described in section 5(1)(a)(i).

(b) An electronic payment card or encrypted receipt described

in section 5(1)(a)(ii).

the scrap dealer's premises for 1 of the items described in

subdivision (a) or (b).

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).

(k) A digital photograph of the seller, or the individual who

is delivering the scrap metal if he or she is not the seller, that

includes his or her face and is taken at the time the scrap metal

is delivered to the scrap metal dealer.

(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. 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

House Bill No. 4593 (H-6) as amended March 19, 2014

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.

[(e) A silver alloy telecommunication battery with a threaded insert terminal connection. This subdivision does not apply to a battery used in auto or mobile equipment. This subdivision does not apply if the seller is a provider of telecommunication service or if the seller has written authorization from the provider of telecommunication service that owned the property to sell the property.]

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.

House Bill No. 4593 (H-6) as amended March 19, 2014

(3) By [JULY ] 1, 2016, the department of state police shall

provide a written report to the governor, the speaker of the house

of representatives, and the senate majority leader concerning that

department's assessment of the effectiveness of this act in

reducing scrap metal theft and assisting in the investigation and

prosecution of scrap metal theft. The report shall also include any

recommendations the department of state police may have for further

legislative action.

Sec. 15. (1) A Except as provided in subsection (2), a person

~~violating~~ that violates this act knowing or having reason to know

that ~~he or she~~ the person is violating this act is responsible for

a state civil infraction and may be ordered to pay a civil fine of

not more than $5,000.00.

(2) A scrap metal dealer that knowingly violates section 6(4)

is responsible for a state civil infraction and shall pay a civil

fine of $500.00 for the first violation, $1,000.00 for a second

violation, and $5,000.00 for a third or subsequent violation.

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~~

House Bill No. 4593 (H-6) as amended March 19, 2014

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 takes effect July 1, 2014.]

Enacting section [2]. This amendatory act does not take effect

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

law.