HB3359 98TH GENERAL ASSEMBLY

LRB098 09667 MGM 39813 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3359

Introduced , by Rep. Michael W. Tryon

SYNOPSIS AS INTRODUCED:

See Index

Amends the Pawnbroker Regulation Act. Changes the short title of the Act to the Pawnbroker, Consignment Shop, Secondhand Shop, and Recyclable Metal Shop Regulation Act. Provides for the licensure and regulation of consignment shops, secondhand shops, and recyclable metal shops in the same manner as pawnshops. Defines "consignment shop", "secondhand shop", and "recyclable metal shop". Amends the Recyclable Metal Purchase Registration Law. Changes the definition of "recyclable metal" to include gold, silver, platinum, or other precious metal used in jewelry, and "recyclable metal dealer" to include any business whose primary purpose is the purchase and sale of precious metals, secondhand jewelry, or items that contain precious metals. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 Pawnbroker Regulation Act is amended by changing the title of the Act and Sections 0.01, 0.05, 1, 1.5, 4, 5, 5.5, 6, 7, 7.5, 8, 9, 10, 11, and 12 as follows:

(205 ILCS 510/Act title)

An Act for the regulation of pawnbrokers, consignment shops, secondhand shops, and recyclable metal shops and repealing a certain act therein named.

(205 ILCS 510/0.01) (from Ch. 17, par. 4650)

Sec. 0.01. Short title. This Act may be cited as the Pawnbroker, Consignment Shop, Secondhand Shop, and Recyclable Metal Shop Regulation Act.

(Source: P.A. 86-1324.)

(205 ILCS 510/0.05)

Sec. 0.05. Administration of Act.

(a) This Act shall be administered by the Secretary of Financial and Professional Regulation, and, beginning on July 28, 2010 (the effective date of Public Act 96-1365), all references in this Act to the Commissioner of Banks and Real Estate are deemed, in appropriate contexts, to be references to the Secretary of Financial and Professional Regulation, who shall have all of the following powers and duties in administering this Act:

(1) To promulgate reasonable rules for the purpose of administering the provisions of this Act.

(2) To issue orders for the purpose of administering the provisions of this Act and any rule promulgated in accordance with this Act.

(2.5) To order restitution to consumers suffering damages resulting from violations of this Act, rules promulgated in accordance with this Act, or other laws or regulations related to the operation of a pawnshop consignment shop, secondhand shop, or recyclable metal shop.

(3) To appoint hearing officers and to hire employees or to contract with appropriate persons to execute any of the powers granted to the Secretary under this Section for the purpose of administering this Act and any rule promulgated in accordance with this Act.

(4) To subpoena witnesses, to compel their attendance, to administer an oath, to examine any person under oath, and to require the production of any relevant books, papers, accounts, and documents in the course of and pursuant to any investigation being conducted, or any action being taken, by the Secretary in respect of any matter relating to the duties imposed upon, or the powers vested in, the Secretary under the provisions of this Act or any rule promulgated in accordance with this Act.

(5) To conduct hearings.

(6) To impose civil penalties graduated up to $1,000 against any person for each violation of any provision of this Act, any rule promulgated in accordance with this Act, or any order of the Secretary based upon the seriousness of the violation.

(6.5) To initiate, through the Attorney General, injunction proceedings whenever it appears to the Secretary that any person, whether licensed under this Act or not, is engaged or about to engage in an act or practice that constitutes or will constitute a violation of this Act or any rule prescribed under the authority of this Act. The Secretary may, in his or her discretion, through the Attorney General, apply for an injunction, and upon a proper showing, any circuit court may enter a permanent or preliminary injunction or a temporary restraining order without bond to enforce this Act in addition to the penalties and other remedies provided for in this Act.

(7) To issue a cease and desist order and, for violations of this Act, any order issued by the Secretary pursuant to this Act, any rule promulgated in accordance with this Act, or any other applicable law in connection with the operation of a pawnshop, consignment shop, secondhand shop, or recyclable metal shop, to suspend a license issued under this Act for up to 30 days.

(8) To determine compliance with applicable law and rules related to the operation of pawnshops, consignment shops, secondhand shops, or recyclable metal shops, and to verify the accuracy of reports filed with the Secretary, the Secretary, not more than one time every 2 years, may, but is not required to, conduct a routine examination of a pawnshop, consignment shop, secondhand shop, or recyclable metal shop, and in addition, the Secretary may examine the affairs of any pawnshop, consignment shop, secondhand shop, or recyclable metal shop at any time if the Secretary has reasonable cause to believe that unlawful or fraudulent activity is occurring, or has occurred, therein.

(9) In response to a complaint, to address any inquiries to any pawnshop, consignment shop, secondhand shop, or recyclable metal shop in relation to its affairs, and it shall be the duty of the pawnshop, consignment shop, secondhand shop, or recyclable metal shop to promptly reply in writing to such inquiries. The Secretary may also require reports or information from any pawnshop, consignment shop, secondhand shop, or recyclable metal shop at any time the Secretary may deem desirable.

(10) To revoke a license issued under this Act if the Secretary determines that (a) a licensee has been convicted of a felony in connection with the operations of a pawnshop, consignment shop, secondhand shop, or recyclable metal shop; (b) a licensee knowingly, recklessly, or continuously violated this Act or State or federal law or regulation, a rule promulgated in accordance with this Act, or any order of the Secretary; (c) a fact or condition exists that, if it had existed or had been known at the time of the original application, would have justified license refusal; (d) the licensee knowingly submits materially false or misleading documents with the intent to deceive the Secretary or any other party; or (e) the licensee is unable or ceases to continue to operate the pawnshop, consignment shop, secondhand shop, or recyclable metal shop.

(10.2) To remove or prohibit the employment of any officer, director, employee, or agent of the pawnshop, consignment shop, secondhand shop, or recyclable metal shop who engages in or has engaged in unlawful activities that relate to the operation of a pawnshop, consignment shop, secondhand shop, or recyclable metal shop.

(10.7) To prohibit the hiring of employees who have been convicted of a financial crime or any crime involving breach of trust who do not meet exceptions as established by rule of the Secretary.

(11) Following license revocation, to take possession and control of a pawnshop, consignment shop, secondhand shop, or recyclable metal shop for the purpose of examination, reorganization, or liquidation through receivership and to appoint a receiver, which may be the Secretary, a pawnshop, consignment shop, secondhand shop, recyclable metal shop, or another suitable person.

(b) After consultation with local law enforcement officers, the Attorney General, and the industry, the Secretary may by rule require that pawnbrokers, consignment shop owners, secondhand shop owners, or recyclable metal shop dealers operate video camera surveillance systems to record photographic representations of customers and retain the tapes produced for up to 30 days.

(c) Pursuant to rule, the Secretary shall issue licenses on an annual or multi-year basis for operating a pawnshop, consignment shop, secondhand shop, or recyclable metal shop. Any person currently operating or who has operated a pawnshop, consignment shop, secondhand shop, or recyclable metal shop in this State during the 2 years preceding the effective date of this amendatory Act of 1997 shall be issued a license upon payment of the fee required under this Act. New applicants shall meet standards for a license as established by the Secretary. Except with the prior written consent of the Secretary, no individual, either a new applicant or a person currently operating a pawnshop, consignment shop, secondhand shop, or recyclable metal shop, may be issued a license to operate a pawnshop, consignment shop, secondhand shop, or recyclable metal shop if the individual has been convicted of a felony or of any criminal offense relating to dishonesty or breach of trust in connection with the operations of a pawnshop, consignment shop, secondhand shop, or recyclable metal shop. The Secretary shall establish license fees. The fees shall not exceed the amount reasonably required for administration of this Act. It shall be unlawful to operate a pawnshop, consignment shop, secondhand shop, or recyclable metal shop without a license issued by the Secretary.

(d) In addition to license fees, the Secretary may, by rule, establish fees in connection with a review, approval, or provision of a service, and levy a reasonable charge to recover the cost of the review, approval, or service (such as a change in control, change in location, or renewal of a license). The Secretary may also levy a reasonable charge to recover the cost of an examination if the Secretary determines that unlawful or fraudulent activity has occurred. The Secretary may require payment of the fees and charges provided in this Act by certified check, money order, an electronic transfer of funds, or an automatic debit of an account.

(e) The Pawnbroker Regulation Fund is established as a special fund in the State treasury. Moneys collected under this Act shall be deposited into the Fund and used for the administration of this Act. In the event that General Revenue Funds are appropriated to the Department of Financial and Professional Regulation for the initial implementation of this Act, the Governor may direct the repayment from the Pawnbroker Regulation Fund to the General Revenue Fund of such advance in an amount not to exceed $30,000. The Governor may direct this interfund transfer at such time as he deems appropriate by giving appropriate written notice. Moneys in the Pawnbroker Regulation Fund may be transferred to the Professions Indirect Cost Fund, as authorized under Section 2105-300 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.

(f) The Secretary may, by rule, require all pawnshops, consignment shops, secondhand shops, and recyclable metal shops to provide for the expenses that would arise from the administration of the receivership of a pawnshop, consignment shop, secondhand shop, or recyclable metal shop under this Act through the assessment of fees, the requirement to pledge surety bonds, or such other methods as determined by the Secretary.

(g) All final administrative decisions of the Secretary under this Act shall be subject to judicial review pursuant to the provisions of the Administrative Review Law. For matters involving administrative review, venue shall be in either Sangamon County or Cook County.

(Source: P.A. 96-1038, eff. 7-14-10; 96-1365, eff. 7-28-10; 97-333, eff. 8-12-11.)

(205 ILCS 510/1) (from Ch. 17, par. 4651)

Sec. 1. (a) Every individual or business entity which lends money on the deposit or pledge of physically delivered personal property, other than property the ownership of which is subject to a legal dispute, securities, printed evidence of indebtedness or printed evidence of ownership of the personal property, or who deals in the purchase of such property on the condition of selling the property back again at a stipulated price, shall be held and is hereby declared and defined to be a pawnbroker. The business of a pawnbroker does not include the lending of money on deposit or pledge of title to property.

(b) The Secretary may require employees of pawnshops, consignment shops, secondhand shops, and recyclable metal shops who have the authority to act in a managerial capacity to obtain a license from the Department. For the purposes of this Section, "managerial capacity" shall mean the ability to direct the operations or activities of the pawnshop. If the Secretary determines a pawnshop, consignment shop, secondhand shop, or recyclable metal shop employee's duties and responsibilities or other factors amount to acting in a managerial capacity, the Secretary may require licensing. The license shall be valid for 2 years. The Secretary may by rule specify the form of the application for licensure, fees to be imposed and conditions for licensure. The licensed employees shall report their places of employment to the Secretary.

(c) For the purposes of this Act:

"Consignment shop" means a shop, either in a physical location or via the Internet, engaged in the business of selling secondhand personal property as the agent of another person who (i) has placed the property in the physical possession of the agent when the other person has not been paid for the property, (ii) retains legal title to the property, and (iii) bears the risk of loss until such property is sold to a third person.

"Recyclable metal shop" has the same definition as "recyclable metal dealer" in the Recyclable Metal Purchase Registration Act.

"Secondhand shop" means a shop, either in a physical location or via the Internet, that is primarily engaged in the business of purchasing personal property of any type from a person who is not a wholesaler for the purpose of reselling or exchanging such property and has physical possession of the property.

(Source: P.A. 96-1365, eff. 7-28-10.)

(205 ILCS 510/1.5)

Sec. 1.5. Misleading practices and names prohibited. It shall not be lawful for an individual or business entity to conduct business in this State using the word "pawn", "pawnshop", or "pawnbroker", "consignment store", "secondhand shop", or "recyclable metal shop" in connection with the business or to transact business in this State in a manner which has a substantial likelihood of misleading the public by implying that the business is a pawnshop, consignment shop, secondhand shop, or recyclable metal shop, without first obtaining a license from the Commissioner.

(Source: P.A. 90-602, eff. 7-1-98.)

(205 ILCS 510/4) (from Ch. 17, par. 4654)

Sec. 4. Every pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall, at the time of making any advancement, purchase, or loan, deliver to the person pawning or pledging any property, a memorandum, contract, or note signed by him containing an accurate account and description, in the English language, of all the goods, articles or other things pawned, sold, or pledged, the amount of money, value of things loaned thereon, the time of pledging or selling the same, the rate of interest to be paid on the loan, the name and residence of the person making the pawn, sale, or pledge, and the amount of any fees as specified in Section 2 of this Act.

(Source: P.A. 87-802.)

(205 ILCS 510/5) (from Ch. 17, par. 4655)

Sec. 5. Record requirements.

(a) Except in municipalities located in counties having 3,000,000 or more inhabitants, every pawn and loan broker, consignment shop, secondhand shop, and recyclable metal shop shall keep a standard record book that has been approved by the sheriff of the county in which the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop does business. In municipalities in counties with 3,000,000 or more inhabitants, the record book shall be approved by the police department of the municipality in which the pawn or loan broker, consignment shop, secondhand shop, or recyclable metal shop does business. At the time of each and every loan, sale, or taking of a pledge, an accurate account and description, in the English language, of all the goods, articles and other things pawned, sold, or pledged, the amount of money, value or thing loaned thereon, the time of pledging the same, the rate of interest to be paid on such loan, and the name and residence of the person making such pawn, sale, or pledge shall be printed, typed, or written in ink in the record book. Such entry shall include the serial number or identification number of items received which bear such number. Except for items purchased from dealers possessing a federal employee identification number who have provided a receipt to the pawnbroker, every pawnbroker shall also record in his book, an accurate account and description, in the English language, of all goods, articles and other things purchased or received for the purpose of resale or loan collateral by the pawnbroker from any source, not in the course of a pledge or loan, the time of such purchase or receipt and the name and address of the person or business which sold or delivered such goods, articles, or other things to the pawnbroker. No entry in such book shall be erased, mutilated or changed.

(b) Every pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall require identification to be shown him by each person pledging, selling, or pawning any goods, articles or other things to the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop. 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 residence address. These forms of identification shall include, but not be limited to, any of the following: 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 customer does not have an identification issued by a governmental entity containing a photograph of the person being identified, the pawnbroker, consignment shop owner, secondhand shop owner, or recyclable metal shop owner shall photograph the customer in color and record the customer's name, residence address, date of birth, social security number, gender, height, and weight on the reverse side of the photograph. If the customer has no social security number, the pawnbroker, consignment shop owner, secondhand shop owner, or recyclable metal shop owner shall record this fact.

A county or municipality, including a home rule unit, may regulate a pawnbroker's, consignment shop owner's, secondhand shop owner's, or recyclable metal shop owner's identification requirements for persons pledging, selling, or pawning goods, articles, or other things to the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop in a manner that is not less restrictive than the regulation by the State of a pawnbroker's, consignment shop owner's, secondhand shop owner's, or recyclable metal shop owner's identification requirements for persons pledging, selling, or pawning goods, articles, or other things. A home rule unit may not regulate a pawnbroker's, consignment shop owner's, secondhand shop owner's, or recyclable metal shop owner's identification requirements for persons pledging, selling, or pawning goods, articles, or other things to the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop in a manner less restrictive than the regulation by the State of a pawnbroker's, consignment shop owner's, secondhand shop owner's, or recyclable metal shop owner's identification requirements for persons pledging, selling, or pawning 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.

(c) A pawnbroker, consignment shop, secondhand shop, or recyclable metal shop may maintain the records required by subsection (a) in computer form if the computer form has been approved by the Commissioner, the sheriff of the county in which the shop is located, and the police department of the municipality in which the shop is located.

(d) Records, including reports to the Secretary, maintained by pawnbrokers, consignment shops, secondhand shops, or recyclable metal shops shall be confidential, and no disclosure of pawnbroker, consignment shop, secondhand shop, or recyclable metal shop records shall be made except disclosures authorized by this Act or ordered by a court of competent jurisdiction. No record transferred to a governmental official shall be improperly disclosed, provided that use of those records as evidence of a felony or misdemeanor shall be a proper purpose.

(e) Pawnbrokers, consignment shops, secondhand shops, or recyclable metal shops and their associations may lawfully give appropriate governmental agencies computer equipment for the purpose of transferring information pursuant to this Act.

(Source: P.A. 96-1038, eff. 7-14-10.)

(205 ILCS 510/5.5)

Sec. 5.5. Replacement of articles or property; insurance.

In the event that any articles or property pledged or sold are lost or rendered inoperable, the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall replace the articles or property with identical articles or property, except that if the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop cannot reasonably obtain identical articles or property, the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall replace the articles or property with like articles or property.

No pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall conduct business in this State, unless the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop maintains insurance coverage covering all hazards equal to at least 2 times the aggregate value of the outstanding loans for items held in pawn. Such insurance shall be obtained from an insurance company authorized to do business in Illinois.

The pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall file a copy of proof of insurance coverage with the Secretary. A pawnbroker, consignment shop, secondhand shop, or recyclable metal shop or an insurance company shall not cancel the insurance coverage except upon notice to the Secretary by certified mail, return receipt requested. The cancellation is not effective prior to 30 days after the Secretary receives the notice.

(Source: P.A. 96-1365, eff. 7-28-10.)

(205 ILCS 510/6) (from Ch. 17, par. 4656)

Sec. 6. Inspection of records.

(a) The book or computer records, as well as every article or other thing of value so pawned, sold, or pledged, shall at all times be open to the inspection of the Secretary, the sheriff of the county, his deputies, or any members of the police force of any city in the county in which such pawnbroker, consignment shop, secondhand shop, or recyclable metal shop does business. In addition, the Secretary shall be authorized to inspect the books or records of any business he or she has reasonable cause to believe is conducting pawn, consignment, or recyclable metal transactions and should be licensed under this Act.

(b) The book or computer records, pawn tickets, or any other records required by the Secretary under this Act or any rule promulgated in accordance with this Act shall be maintained for a period of 3 years after the date on which the record or ticket was prepared. These records and tickets shall be open to inspection of the Secretary at all times during the 3-year period.

(Source: P.A. 96-1038, eff. 7-14-10.)

(205 ILCS 510/7) (from Ch. 17, par. 4657)

Sec. 7. Daily report.

(a) Except as provided in subsection (b), it shall be the duty of every pawnbroker, consignment shop, secondhand shop, and recyclable metal shop to make out and deliver to the sheriff of the county in which such pawnbroker, consignment shop, secondhand shop, or recyclable metal shop 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 5 of this Act, that lists all personal property and any other valuable thing received on deposit or purchased during the preceding day, including the exact time when received or purchased, and a description of the person or person by whom left in pledge, or from whom the same were purchased; provided, that in cities or towns having 25,000 or more inhabitants, a copy of the such report shall at the same time also be delivered to the superintendent of police or the chief police officer of such city or town. Such report may be made by computer printout or input memory device if the format has been approved by the local law enforcement agency.

(b) In counties with more than 3,000,000 inhabitants, pawnbrokers, consignment shops, secondhand shops, and recyclable metal shops shall a pawnbroker must provide the daily report to the sheriff only if the pawnshop, consignment shop, secondhand shop, or recyclable metal shop is located in an unincorporated area of the county. Pawnbrokers, consignment shops, secondhand shops, and recyclable metal shops located in cities or towns in such counties must deliver such reports to the superintendent of police or the chief police officer of such city or town.

(Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)

(205 ILCS 510/7.5)

Sec. 7.5. Report to the Secretary. The Secretary, as often as the Secretary shall deem necessary or proper, may require a pawnshop, consignment shop, secondhand shop, or recyclable metal shop to submit a full and detailed report of its operations including, but not limited to, the number of pawns, sales, or purchases made, the amount financed on pawn transactions, and the number and amount of pawns or sales surrendered to law enforcement.

The Secretary shall prescribe the form of the report and establish the date by which the report must be filed.

(Source: P.A. 96-1038, eff. 7-14-10.)

(205 ILCS 510/8) (from Ch. 17, par. 4658)

Sec. 8. No pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall take or receive any pawn, sale, or pledge for any advancement or loan, any property of any kind from any minor who is under 18 years of age, or the ownership of which is in, or which is claimed by, any such minor, or which may be in the possession or under the control of any such minor.

(Source: P.A. 84-478.)

(205 ILCS 510/9) (from Ch. 17, par. 4659)

Sec. 9. No pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall purchase or take any article in pawn, sale, or pledge from any person appearing to be intoxicated, nor from any person known to have been convicted of theft. A law enforcement officer may provide such criminal conviction information to a pawnbroker, consignment shop, secondhand shop, or recyclable metal shop. When any person is found to be the owner of stolen property which has been pawned or sold, such property shall be returned to the owner thereof without the payment of the money advanced by the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop thereon or any costs or charges of any kind which the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop may have placed upon the same.

(Source: P.A. 84-1308.)

(205 ILCS 510/10) (from Ch. 17, par. 4660)

Sec. 10. Sale of property. No personal property received on deposit or pledge or purchased by any pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall be sold or permitted to be redeemed or removed from the place of business of such pawnbroker, consignment shop, secondhand shop, or recyclable metal shop for the space of 48 hours after the delivery of the copy and statement required by Section 7 of this Act required to be delivered to the officer or officers named therein. If the pawner or pledger fails to repay the loan during the period specified on the pawn ticket, the pawnbroker shall automatically extend a grace period of 30 days from the default date on the loan during which the pawnbroker shall not dispose of or sell the personal property pledged. The parties may agree to extend or renew a loan upon terms agreed upon by the parties, provided the terms comply with the requirements of this Act.

(Source: P.A. 90-477, eff. 7-1-98.)

(205 ILCS 510/11) (from Ch. 17, par. 4661)

Sec. 11. Violations. Every person who knowingly violates the provisions of this Act shall, for the first offense, be guilty of a Class C misdemeanor, and for each subsequent offense shall be guilty of a Class A misdemeanor, except that a person who knowingly violates this Act by operating a pawnshop, consignment shop, secondhand shop, or recyclable metal shop without a license shall be guilty of a Class B misdemeanor for the first offense and shall be guilty of a Class A misdemeanor for any subsequent offense. This Act shall not be construed as to, in any wise, impair the power of cities or villages in this State to license, tax, regulate except as to fee amounts, suppress, and prohibit pawnbrokers, consignment shops, secondhand shops, or recyclable metal shops as now provided by law.

(Source: P.A. 92-215, eff. 8-2-01.)

(205 ILCS 510/12)

Sec. 12. Hold order.

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

(b) Upon written notice from a law enforcement officer indicating that property in the possession of a pawnbroker, consignment shop, secondhand shop, or recyclable metal shop and subject to a hold order is needed for the purpose of furthering a criminal investigation and prosecution, the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall release the property subject to the hold order 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 pawnbroker's, consignment shop's, secondhand shop's, or recyclable metal shop's property rights or interest in the property. Upon completion of the criminal investigation, the property shall be returned to the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop who consented to its release; except that, if the law enforcement officer has not completed the criminal investigation within 120 days after its release, the officer shall immediately return the property to the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop or obtain and furnish to the pawnbroker , consignment shop, secondhand shop, or recyclable metal shopa warrant for the continued custody of the property.

The pawnbroker, consignment shop, secondhand shop, or recyclable metal shop 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 pawnbroker, consignment shop, secondhand shop, or recyclable metal shop in writing. The notice shall contain the case number, the style of the case, and a description of the property. The pawnbroker, consignment shop, secondhand shop, or recyclable metal shop shall hold such property until receiving notice of the disposition of the case from the prosecuting attorney. The prosecuting attorney shall notify the pawnbroker, consignment shop, secondhand shop, or recyclable metal shop and claimant in writing within 15 days after the disposition of the case.

(Source: P.A. 96-1365, eff. 7-28-10.)

Section 10. The Recyclable Metal Purchase Registration Law is amended by changing Section 2 as follows:

(815 ILCS 325/2) (from Ch. 121 1/2, par. 322)

Sec. 2. Definitions. When used in this Act:

"Recyclable metal" means any copper, brass, or aluminum, or any combination of copper, brass, or aluminum, gold, silver, platinum, or other precious metal used in jewelry those metals, purchased by a recyclable metal dealer, irrespective of form or quantity, except that "recyclable metal" does not include: (i) items designed to contain, or to be used in the preparation of, beverages or food for human consumption; (ii) discarded items of non-commercial or household waste; or (iii) gold, silver, platinum, and other precious metals used in jewelry; or (iv) vehicles, junk vehicles, vehicle cowls, or essential vehicle parts.

"Recyclable metal dealer" means any individual, firm, corporation or partnership engaged in the business of purchasing and reselling recyclable metal either at a permanently established place of business or in connection with a business of an itinerant nature, including junk shops, junk yards, or junk stores, except that "recyclable metal dealer" does not include automotive parts recyclers, scrap processors, repairers and rebuilders licensed pursuant to Section 5-301 of the Illinois Vehicle Code. Recyclable metal dealers shall not be engaged in the business of purchasing or reselling vehicles, junk vehicles, vehicle cowls, or essential vehicle parts. "Recyclable metal dealer" includes any business whose primary purpose is the purchase and sale of precious metals, secondhand jewelry, or items that contain precious metals.

(Source: P.A. 95-979, eff. 1-2-09.)

Section 99. Effective date. This Act takes effect upon becoming law.