862.01 Definitions.
862.02 Certificates of registration.
862.03 Records of transactions.
862.04 Waiting period before sale.
862.05 Purchase of precious items from minors or criminals; identification required.
862.06 Investigation of violations.
862.99 Penalty.
Appendix I. Certificate of registration.
Appendix II. Record of transaction.
CROSS REFERENCES
Usury - see M.C.L. Sec. 438.31
Transient merchants - see M.C.L. Secs. 445.371 et seq.
Pawnbrokers - see M.C.L. Secs. 445.471 et seq., 446.201 et seq.
Theft generally - see M.C.L. Secs. 750.356 et seq.
As used in this chapter:
(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 a 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 in the 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) "Jewelry" means an ornamental item made of a material that includes a precious gem.
(e) "Local police agency" means the Police Department.
(f) "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.
(g) "Precious gem" means a diamond, alexandrite, ruby, sapphire, opal, amethyst, emerald, aquamarine, morganite, garnet, jadeite, topaz, tourmaline, turquoise or pearl.
(h) "Precious item" means jewelry, a precious gem, or an item containing gold, silver or platinum. "Precious item" does not include the following:
(1) Coins, commemorative medals and tokens struck by, or on behalf of, a government or private mint;
(2) Bullion bars and discs of the type traded by banks and commodity exchanges;
(3) Items at the time they are purchased directly from a dealer registered as provided in this chapter, a manufacturer or a wholesaler who purchased them directly from a manufacturer;
(4) Industrial machinery or equipment;
(5) An item being returned to or exchanged at the dealer where the item was purchased and which is accompanied by a valid sales receipt;
(6) An item which is received for alteration, redesign or repair in a manner that does not substantially change its use and which is returned directly to the customer;
(7) An item which does not have a jeweler's identifying mark or a serial mark and which the dealer purchases for less than five dollars ($5.00);
(8) Scrap metal which contains incidental traces of gold, silver or platinum which are recoverable as a by-product; or
(9) Jewelry which a customer trades for other jewelry having a greater value, which difference in value is paid by the customer.
(i) "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.
(Ord. 415. Passed 9-8-81.)
(a) No dealer shall conduct business in the City unless the dealer has obtained a valid certificate of registration therefor from the Police Department, a sample of which appears at the end of this chapter as Appendix I.
(b) A dealer shall apply to the Police Department for a certificate of registration, paying a fee of fifty dollars ($50.00) to cover the reasonable cost of processing and issuing the certificate, and providing the following information:
(1) The name, address and thumbprint of the applicant;
(2) The name and address under which the applicant does business; and
(3) The names, addresses and thumbprints of all agents or employees of the dealer. Within twenty-four hours after hiring a new employee, the dealer shall forward to the Police Department the name, address and thumbprint of the new employee.
(c) Upon receipt of the application for registration provided for in subsection (b)hereof, the Police Department shall issue a certificate of registration in accordance with this section.
(d) Upon receipt of the certificate from the Police Department, the dealer shall post it in a conspicuous place in the dealer's place of business.
(e) Not less than ten days before a dealer changes the name or address under which he or she does business, the dealer shall notify the Police Department of the change.
(Ord. 415. Passed 9-8-81.)
(a) A dealer shall maintain a permanent record of each transaction, a sample of which appears at the end of this chapter as Appendix II. Each such record shall be legibly written in ink in English and shall be filled out in triplicate by the dealer or an agent or employee of the dealer with one copy going to the Police Department, pursuant to subsection (c)hereof, one copy going to the customer and one copy to be retained by the dealer, pursuant to subsection (e)hereof. At the time a dealer receives or purchases a precious item, the dealer or the agent or employee of the dealer shall ensure that the following information is recorded accurately on a record of transaction form:
(1) The dealer's certificate of registration number;
(2) A general description of the precious item received or purchased, including its type of metal or precious gem. In the case of watches, the description shall contain the name of the maker and the number of both the works and the case. In the case of jewelry, all letters and marks inscribed on the jewelry shall be included in the description.
(3) The date of the transaction;
(4) The name of the person conducting the transaction;
(5) The name, date of birth, driver's license number or State personal identification card number and street and house number of the person with whom the transaction is made, together with a legible imprint of the right thumb of the person with whom the transaction is made. If that is not possible, then a legible imprint of the left thumb or a finger of that person shall be used. However, the thumbprint or fingerprint shall only be required on the record of transaction form retained by the dealer. The thumbprint or fingerprint shall be made available to the Police Department only during the course of a police investigation involving a precious item described on the record of transaction. After a period of one year from the date of the record of transaction, if a police investigation concerning a precious item described on the record of transaction has not occurred, the dealer and the Police Department shall destroy, and not keep a permanent record of, the record of transaction. A dealer who goes out of business or who changes his or her business address to another local jurisdiction, either within or outside the State, shall transmit the records of all transactions made by him or her, within one year before his or her closing or moving, to the local police agency.
(6) The price to be paid by the dealer for the precious item;
(7) The form of payment made to the customer, such as check, money order, bank draft or cash. If the payment is by check, money order or bank draft, the dealer shall indicate the number of the check, money order or bank draft.
(8) The customer's signature.
(b) The record of each transaction shall be numbered consecutively, commencing with the number one and the calendar year.
(c) Within forty-eight hours after receiving or purchasing a precious item, the dealer shall send a copy of the record of transaction form to the Police Department. Such forms received by the Police Department shall not be open to inspection by the general public. The Police Department shall be responsible for ensuring the confidentiality of the record of transaction forms and ensuring that the record of transaction forms are used only for the purpose for which they were received.
(d) The record of transaction forms of a dealer and each precious item received shall be open to an inspection by the County Prosecuting Attorney, the Police Department and the Michigan State Police, at all times during the ordinary business hours of the dealer. As a condition of doing business, a dealer is deemed to have given consent to the inspection prescribed by this subsection. The record of transaction forms of a dealer shall not be open to inspection by the general public.
(e) Except as otherwise provided in this section, each record of a transaction shall be retained by the dealer for not less than one year after the transaction to which the record pertains.
(f) The form of the record of transaction shall be provided by the dealer, shall be eight and one-half by eleven inches in size and shall be as set forth in Appendix II immediately following the text of this chapter.
(Ord. 415. Passed 9-8-81.)
No dealer or agent or employee of a dealer shall knowingly receive or purchase a precious item from a person:
(a) Who is less than eighteen years of age or who is known by the dealer or agent or employee of the dealer to have been convicted of theft or receipt of stolen property within the preceding five years, whether the person is acting in his or her own behalf or as the agent of another;
(b) Unless such person presents a valid driver's license or a valid State personal identification card.
(Ord. 415. Passed 9-8-81.)
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