HB3964ham001 98TH GENERAL ASSEMBLY

Rep. Anna Moeller

Filed: 4/11/2014

09800HB3964ham001 LRB098 15523 ZMM 58492 a

AMENDMENT TO HOUSE BILL 3964

AMENDMENT NO. ______. Amend House Bill 3964 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Resale Dealers Act.

Section 5. Definitions. For the purposes of this Act:

"Appropriate law enforcement official" means the sheriff of the county where a resale dealer is located or, if the resale dealer is located within a municipality, both the police chief of the municipality and the sheriff, provided, however, that the sheriff or police chief may designate an appropriate official of the county or municipality as applicable.

"Precious metals" means any item containing gold, silver, or platinum or any combination of gold, silver, or platinum. "Precious metals" do not include items containing any chemical or any automotive, photographic, electrical, medical or dental materials, or electronic parts.

"Resale dealer" means any individual, firm, corporation, or partnership engaged in the business of operating a business for profit, which buys, sells, possesses on consignment for sale, or trades jewelry, stamps, electronic equipment, or any precious metals that have been previously owned by a consumer. The term "resale dealer" includes without limitation businesses commonly known as swapshop operators, cash for gold operators, and jewelers that purchase and resell items from persons other than dealers and suppliers and engage in disassembling, melting, or otherwise altering jewelry. The term "resale dealer" does not include pawnbrokers or coin dealers. The fact that any business does any of the following acts shall be prima facie proof that such business is a resale dealer: (i) advertises in any fashion, including through media advertisements, websites, telephone listings, or signs on the exterior or interior of buildings, that it buys or sells used items and (ii) devotes a significant segment or section of the business premises to the purchase or sale of used items.

Section 10. Exemptions. The following shall be exempt from the requirements of this Act:

(1) Residential garage sales.

(2) Sales conducted by governmental, civic, patriotic, fraternal, educational, religious, or benevolent organizations that have been active and in continuous existence for at least one year prior to the holding of the sale or that are exempt from taxation under Section 501(c) of the federal Internal Revenue Code.

(3) Sales or purchases that are regulated by the licensing laws of this State, including automobile dealers, used parts dealers, and automotive parts recyclers.

(4) Consumer shows or exhibitions of collectibles.

(5) Auctioneers.

(6) Pawnbrokers.

(7) Sales of recyclable metal by a recyclable metal dealer.

(8) Coin dealers.

Section 15. Recordkeeping requirements.

(a) Except in municipalities located in counties having 3,000,000 or more inhabitants, every resale dealer shall keep a standard record book that has been approved by the sheriff of the county where the resale dealer does business. In municipalities located in counties with 3,000,000 or more inhabitants, the record book shall be approved by the police department of the municipality where the resale dealer does business. At the time of each sale, an accurate account and description, in the English language, of all the goods, articles, and other things purchased, the amount of money, value, or thing loaned thereon, the time of sale, and the name and address of the person selling such items shall be printed, typed, or written in ink in the record book. Such entry shall include the serial number or identification number of the items received. Except for items purchased from dealers possessing a federal employee identification number who have provided a receipt to the resale dealer, every resale dealer shall also record in his or her book an accurate account and description, in the English language, of all goods, articles and other things purchased or received by the resale dealer from any source, the time of such purchase or receipt, and the name and address of the person or business that sold or delivered such goods, articles, or other things to the resale dealer. No entry in such book shall be erased, mutilated, or changed.

(b) Every resale dealer shall require and keep a record of identification to be shown by each person selling any goods, articles, or other things to the resale dealer. If the identification shown is a driver's license or a State identification card issued by the Secretary of State and contains a photograph of the person being identified, only one form of identification must be shown. If the identification shown is not a driver's license or a State identification card issued by the Secretary of State and does not contain a photograph, 2 forms of identification must be shown, and one of the 2 forms of identification must include his or her address. These forms of identification shall include, but not be limited to, any of the following: a driver's license, social security card, utility bill, employee or student identification card, credit card, or a civic, union, or professional association membership card. In addition, in a municipality with a population of 1,000,000 or more inhabitants, if the seller does not have a form of identification issued by a governmental entity containing a photograph of the person being identified, the resale dealer shall photograph the seller in color and record the seller's name, address, date of birth, gender, height, and weight on the reverse side of the photograph.

(c) A county or municipality, including home rule units, may regulate a resale dealer's identification requirements for persons selling goods, articles, or other things to the resale dealer in a manner that is not less restrictive than the regulation by the State of a resale dealer's identification requirements for persons selling goods, articles, or other things. A home rule unit may not regulate a resale dealer's identification requirements for persons selling goods, articles, or other things to the resale dealer in a manner less restrictive than the regulation by the State of a resale dealer's identification requirements for persons selling goods, articles, or other things. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of the powers and functions exercised by the State.

(d) A resale dealer may maintain the records required by subsection (a) in computer form if the computer form has been approved by the sheriff of the county where the shop is located and the police department of the municipality where the shop is located.

Section 20. Daily report.

(a) Except as provided in subsection (b), it shall be the duty of every resale dealer to make out and deliver to the sheriff of the county where such resale dealer does business, on each day before the hours of 12 o'clock noon, a legible and exact copy from the standard record book, as required in Section 10, that lists all personal property and any other valuable item purchased during the preceding day, including the exact time when the personal property or valuable item was received or purchased and a description of the person or persons that sold or left in pledge the personal property or valuable item. In municipalities having 25,000 or more inhabitants, a copy of the report shall also be delivered to the superintendent of police or the chief police officer of such city or town. The report may be made by computer printout or input memory device if the format has been approved in the manner provided in subsection (d) of Section 10.

(b) In counties with more than 3,000,000 inhabitants, a resale dealer shall provide the daily report to the sheriff if the resale dealer is located in an unincorporated area of the county. Resale dealers located in municipalities in such counties shall deliver such reports to the chief police official of such municipality.

Section 25. Prohibited purchases. No resale dealer under this Act shall purchase or accept any goods or articles if:

(1) the seller is less than 18 years of age;

(2) the seller is intoxicated;

(3) the seller fails to present the appropriate form of identification as required by subsection (b) of Section 10;

(4) the article to be purchased had an original manufacturer's serial number at the time it was new, but no longer legibly exhibits such number; or

(5) the seller is known to be a thief or has been convicted of theft, burglary, robbery, or possession of stolen property.

Section 30. Removal of identifying marks prohibited. No resale dealer shall remove, alter, or obliterate any manufacturer's make, model or serial number, personal identification number, or identifying marks engraved or etched upon an item of personal property that was purchased or received by the resale dealer.

Section 35. Inspection of records and premises of resale dealers.

(a) The entire registered premises and required records of each resale dealer are subject to inspection during regular business hours by any law enforcement officer having jurisdiction.

(b) The inspection authorized by subsection (a) shall consist of an examination on the premises as required by this Act and an examination to determine whether the holding period required by this Act is being complied with.

Section 40. Video camera surveillance required. Each resale dealer shall be required to install, operate, and maintain a video camera surveillance system capable of recording clear and unobstructed photographic representations of the resale dealer's customers and shall retain the videotape recordings produced for at least 30 days after production. All videotape recordings shall be subject to inspection and copying by members of the appropriate law enforcement agency during the resale dealer's business hours.

Section 45. Holding period.

(a) No resale dealer shall expose for sale, sell, trade, barter, melt, crush or compact, destroy, or otherwise dispose of any individually identifiable article within 10 days after the date of purchasing or receiving the article. No resale dealer shall expose for sale, sell, trade, barter, melt, crush or compact, destroy, or otherwise dispose of any non-identifiable article within 3 days after the date of purchasing or receiving the article.

(b) All resale dealers shall maintain transaction records for 3 years after the date of transaction.

Section 50. Inventory system. Every resale dealer shall maintain an inventory system of all property purchased or received in such a manner that members of the appropriate law enforcement agency making an inspection of the property can readily locate such property on the licensed premises.

Section 55. Hold order.

(a) For the purposes of this Section, "hold order" means a written legal instrument issued to a resale dealer by a law enforcement officer commissioned by the law enforcement agency of the municipality or county that licenses and regulates the resale dealer ordering the resale dealer to retain physical possession of pledged goods in the possession of the resale dealer or property purchased by and in the possession of the resale dealer and not to return, sell, or otherwise dispose of such property on the basis that the property is believed to be misappropriated goods.

(b) Upon receipt of written notice from a law enforcement officer indicating that property in the possession of the resale dealer and subject to a hold order is needed for the purpose of furthering a criminal investigation and prosecution, the resale dealer shall release the property to the custody of the law enforcement officer for such purpose and the officer shall provide a written acknowledgment that the property has been released to the officer. The release of the property to the custody of the law enforcement officer shall not be considered a waiver or release of the resale dealer's property rights or interest in the property. Upon completion of the criminal investigation, the property shall be returned to the resale dealer; except that, if the law enforcement officer has not completed the criminal investigation within 120 days after the property's release, the officer shall immediately return the property to the resale dealer or obtain and furnish to the resale dealer a warrant for the continued custody of the property.

The resale dealer shall not release or dispose of the property except pursuant to a court order or the expiration of the holding period of the hold order, including all extensions.

In cases where criminal charges have been filed and the property may be needed as evidence, the prosecuting attorney shall notify the resale dealer in writing. The notice shall contain the case number, the style of the case, and a description of the property. The resale dealer shall hold such property until receiving notice of the disposition of the case from the prosecuting attorney. The prosecuting attorney shall notify the resale dealer and claimant in writing within 15 days after the disposition of the case. When such other disposition is ordered, the court shall additionally order the person from whom the resale dealer acquired the property to pay restitution to the resale dealer in the amount that the resale dealer paid for the property together with reasonable attorney's fees and costs.

Section 60. Violations. A first or second violation of this Act is a petty offense for which a $750 fine shall be imposed. A third violation of this Act is a Class C misdemeanor. A fourth or subsequent violation of this Act is a Class A misdemeanor.

Section 65. Local regulation. Except as provided in subsection (c) of Section 15, nothing in this Act shall be construed to impair the power of a county or municipality, including home rule units, to enforce the provisions of this Act or to license, regulate, suppress, or prohibit resellers, provided that any such actions are no less restrictive than required by this Act. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of the powers and functions exercised by the State.".