MI HB5494

Individuals and firms must obtain a license from the city or county chief executive officer to operate as a second-hand dealer or junk dealer, except as provided in the act.

Internet drop-off stores meeting specific conditions are exempt from licensing requirements: they must have a fixed Michigan location, conduct all transactions exclusively online with no physical sales on premises, display items with photos searchable by zip code or state, and maintain 2-year transaction records including seller and buyer information.

Internet drop-off stores must provide local law enforcement access to business premises during normal hours, remove stolen items from websites within 24 hours of notification, and pay sellers only by check or electronic payment after items are sold (no cash payments).

Scrap metal dealers licensed under the scrap metal licensing act are exempt from second-hand dealer or junk dealer licensing if the city, county, or village elects to exempt them.

The bill does not take effect unless House Bills 5490, 5491, and 5493 are also enacted into law.