SB2351 104TH GENERAL ASSEMBLY

LRB104 05051 AAS 15079 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2351

Introduced 2/7/2025, by Sen. Michael W. Halpin

SYNOPSIS AS INTRODUCED:

225 ILCS 407/5-10
225 ILCS 407/10-1

Amends the Auction License Act. Adds definitions for "estate sale", "estate sale service", and "online auction". Provides that "Internet auction listing service" does not include an online auction. Adds an online auction, an estate sale, and providing an estate service to events that are unlawful for any person, corporation, limited liability company, partnership, or other entity to conduct in the State of Illinois without a licensed issued by the Department of Financial and Professional Regulation. Adds online auctions and estate sales with certain conditions to exemptions to the license requirement. Provides that nothing in the Act shall be construed to apply to a sale conducted by an individual of his or her own property if such an individual is not engaged in the business of selling such property or if the individual did not acquire such goods for resale. Provides that nothing in provisions regarding the license requirement shall be construed to apply to any person as a receiver, trustee in bankruptcy, guardian, administrator, or executor or any such person acting under order of any court, nor shall the provisions regarding the license requirement apply to a trustee acting under a trust agreement, deed of trust, or will, or sales at auction conducted by or under the direction of any public authority or pursuant to any judicial order or decree. Effective January 1, 2026.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Auction License Act is amended by changing Sections 5-10 and 10-1 as follows:

(225 ILCS 407/5-10)

(Section scheduled to be repealed on January 1, 2030)

Sec. 5-10. Definitions. As used in this Act:

"Advertisement" means any written, oral, or electronic communication that contains a promotion, inducement, or offer to conduct an auction or offer to provide an auction service, including but not limited to brochures, pamphlets, radio and television scripts, telephone and direct mail solicitations, electronic media, and other means of promotion.

"Advisory Board" or "Board" means the Auctioneer Advisory Board.

"Auction" means the sale or lease of property, real or personal, by means of exchanges between an auctioneer and prospective purchasers or lessees, which consists of a series of invitations for offers made by the auctioneer and offers by prospective purchasers or lessees for the purpose of obtaining an acceptable offer for the sale or lease of the property, including the sale or lease of property via mail, telecommunications, or the Internet.

"Auction contract" means a written agreement between an auctioneer or auction firm and a seller or sellers.

"Auction firm" means any corporation, partnership, or limited liability company that acts as an auctioneer and provides an auction service.

"Auction school" means any educational institution, public or private, that offers a curriculum of auctioneer education and training approved by the Department.

"Auction service" means the service of arranging, managing, advertising, or conducting auctions.

"Auctioneer" means a person or entity who, for another, for a fee, compensation, commission, or any other valuable consideration at auction or with the intention or expectation of receiving valuable consideration by the means of or process of an auction or sale at auction or providing an auction service, offers, negotiates, or attempts to negotiate an auction contract, sale, purchase, or exchange of goods, chattels, merchandise, personal property, real property, or any commodity that may be lawfully kept or offered for sale by or at auction.

"Address of record" means the designated address recorded by the Department in the applicant's or licensee's application file or license file maintained by the Department.

"Buyer premium" means any fee or compensation paid by the successful purchaser of property sold or leased at or by auction, to the auctioneer, auction firms, seller, lessor, or other party to the transaction, other than the purchase price.

"Department" means the Department of Financial and Professional Regulation.

"Division" means the Division of Real Estate within the Department.

"Email address of record" means the designated email address recorded by the Department in the applicant's application file or the licensee's license file maintained by the Department's licensure maintenance unit.

"Estate sale" means a sale, to which the public is invited, of physical assets suited primarily for household or personal use and owned by one or more individuals or families or by the estate of a deceased individual.

"Estate sale service" means entering into and performing an agreement with the owner or owners of property to be sold at an estate sale in which an auctioneer undertakes the responsibility for conducting the sale, including functions such as advising; advertising; pricing and displaying of merchandise; selling; receiving and accounting for payments; and recordkeeping.

"Goods" means chattels, movable goods, merchandise, or personal property or commodities of any form or type that may be lawfully kept or offered for sale.

"Interactive computer service" means any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet.

"Internet auction listing service" means a website on the Internet, or other interactive computer service, that is designed to allow or advertise as a means of allowing users to offer personal property or services for sale or lease to a prospective buyer or lessee through an online bid submission process using that website or interactive computer service and that does not examine, set the price, prepare the description of the personal property or service to be offered, or in any way utilize the services of a natural person as an auctioneer. "Internet auction listing service" does not include an online auction.

"Licensee" means any person licensed under this Act.

"Managing auctioneer" means any person licensed as an auctioneer who manages and supervises licensees.

"Online auction" means an auction or auction service conducted by an auctioneer via a website on the Internet, an application, an interactive computer service, or other similar media, where the auctioneer examines, sets the price, or prepares the description of the personal property or service offered for sale.

"Person" means an individual, association, partnership, corporation, or limited liability company or the officers, directors, or employees of the same.

"Pre-renewal period" means the 24 months prior to the expiration date of a license issued under this Act.

"Real estate" means real estate as defined in Section 1-10 of the Real Estate License Act of 2000 or its successor Acts.

"Secretary" means the Secretary of Financial and Professional Regulation or his or her designee.

(Source: P.A. 100-534, eff. 9-22-17; 101-345, eff. 8-9-19.)

(225 ILCS 407/10-1)

(Section scheduled to be repealed on January 1, 2030)

Sec. 10-1. Necessity of license; exemptions.

(a) It is unlawful for any person, corporation, limited liability company, partnership, or other entity to conduct an auction, online auction, or estate sale provide an auction service or estate service, hold himself or herself out as an auctioneer, or advertise his or her services as an auctioneer in the State of Illinois without a license issued by the Department under this Act, except at:

(1) an auction, online auction, or estate sale conducted solely by or for a not-for-profit organization for charitable purposes in which the individual receives no compensation;

(2) an auction, online auction, or estate sale conducted by the owner of the property, real or personal;

(3) an auction, online auction, or estate sale for the sale or lease of real property conducted by a licensee under the Real Estate License Act, or its successor Acts, in accordance with the terms of that Act;

(4) an auction, online auction, or estate sale conducted by a business registered as a market agency under the federal Packers and Stockyards Act (7 U.S.C. 181 et seq.) or under the Livestock Auction Market Law;

(5) an auction, online auction, or estate sale conducted by an agent, officer, or employee of a federal agency in the conduct of his or her official duties; and

(6) an auction, online auction, or estate sale conducted by an agent, officer, or employee of the State government or any political subdivision thereof performing his or her official duties.

(b) Nothing in this Act shall be construed to apply to a new or used vehicle dealer or a vehicle auctioneer licensed by the Secretary of State of Illinois, or to any employee of the licensee, who is a resident of the State of Illinois, while the employee is acting in the regular scope of his or her employment for the licensee while conducting an auction that is not open to the public, provided that only new or used vehicle dealers, rebuilders, automotive parts recyclers, or scrap processors licensed by the Secretary of State or licensed by another state or jurisdiction may buy property at the auction, or to sales by or through the licensee. Out-of-state salvage vehicle buyers licensed in another state or jurisdiction may also buy property at the auction.

(c) Nothing in this Act shall be construed to prohibit a person under the age of 18 from selling property under $250 in value while under the direct supervision of a licensed auctioneer.

(d) Nothing in this Act shall be construed to apply to a person providing an Internet auction listing service as defined in Section 5-10.

(e) Nothing in this Act shall be construed to apply to a sale conducted by an individual of his or her own property if the individual is not engaged in the business of selling such property or the individual did not acquire such goods for resale.

(f) Nothing in this Section shall be construed to apply to any person as a receiver, trustee in bankruptcy, guardian, administrator, or executor or any such person acting under order of any court, nor shall this Section apply to a trustee acting under a trust agreement, deed of trust, or will, or sales at auction conducted by or under the direction of any public authority or pursuant to any judicial order or decree.

(Source: P.A. 100-534, eff. 9-22-17.)

Section 99. Effective date. This Act takes effect January 1, 2026.