Illinois General Assembly - Full Text of SB1778
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Full Text of SB1778  98th General Assembly




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1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Resale
5Dealers Act.
6    Section 5. Definitions. For the purposes of this Act:
7    "Appropriate law enforcement official" means the sheriff
8of the county where a resale dealer is located or, if the
9resale dealer is located within a municipality, the police
10chief of the municipality, provided, however, that the sheriff
11or police chief may designate an appropriate official of the
12county or municipality as applicable.
13    "Precious metals" means any item containing gold, silver,
14platinum, palladium, or rhodium or any combination of gold,
15silver, platinum, palladium, or rhodium. "Precious metals" do
16not include items containing any chemical or any automotive,
17photographic, electrical, medical or dental materials, or
18electronic parts, except for those containing precious metals.
19    "Recyclable metal" means items made of copper, brass, or
21    "Resale dealer" means any individual, firm, corporation,
22or partnership engaged in the business of operating a business
23for profit, which buys, sells, possesses on consignment for



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1sale, or trades jewelry, stamps, electronic equipment, or any
2precious metals that have been previously owned by a consumer.
3The term "resale dealer" includes without limitation
4businesses commonly known as swapshop operators, cash for gold
5operators, and jewelers that purchase and resell items from
6persons other than dealers possessing a federal employee
7identification number and suppliers and engage in
8disassembling for purposes other than appraisals, melting, or
9otherwise altering jewelry. The term "resale dealer" does not
10include pawnbrokers, coin dealers, providers of commercial
11mobile services as defined in 47 U.S.C. 332(d) or their
12authorized dealers, or retail merchants that do not purchase
13previously owned items directly from the public at the retail
14location. The fact that any business does any of the following
15acts shall be prima facie proof that such business is a resale
16dealer: (i) advertises in any fashion, including through media
17advertisements, websites, telephone listings, or signs on the
18exterior or interior of buildings, that it buys or sells used
19items and (ii) devotes a significant segment or section of the
20business premises to the purchase or sale of used items.
21    Section 10. Exemptions. The following shall be exempt from
22the requirements of this Act:
23        (1) Residential garage sales.
24        (2) Sales conducted by governmental, civic, patriotic,
25    fraternal, educational, religious, or benevolent



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1    organizations that have been active and in continuous
2    existence for at least one year prior to the holding of the
3    sale or that are exempt from taxation under Section 501(c)
4    of the federal Internal Revenue Code.
5        (3) Sales or purchases that are regulated by the
6    licensing laws of this State, including automobile
7    dealers, used parts dealers, and automotive parts
8    recyclers.
9        (4) Consumer shows or exhibitions of collectibles
10    other than a show or convention that offers to buy second
11    hand jewelry from attendees.
12        (5) Auctioneers.
13        (6) Pawnbrokers.
14        (7) Sales of recyclable metal by a recyclable metal
15    dealer.
16        (8) Coin dealers.
17        (9) Providers of commercial mobile services as defined
18    in 47 U.S.C. 332(d) or their authorized dealers.
19    Section 15. Recordkeeping requirements.
20    (a) Every resale dealer shall keep a standard record book
21that has been approved by the appropriate law enforcement
22official. At the time of each sale, an accurate account and
23description, in the English language, of all the goods,
24articles, and other things purchased, the amount of money,
25value, or thing loaned thereon, the time of sale, and the name



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1and address of the person selling such items shall be printed,
2typed, or written in ink in the record book. Such entry shall
3include the serial number or identification number of the items
4received. Except for items purchased from dealers possessing a
5federal employee identification number who have provided a
6receipt to the resale dealer, every resale dealer shall also
7record in his or her book an accurate account and description,
8in the English language, of all goods, articles and other
9things purchased or received by the resale dealer from any
10source, the time of such purchase or receipt, and the name and
11address of the person or business that sold or delivered such
12goods, articles, or other things to the resale dealer. No
13completed entry in such book shall be erased, mutilated, or
15    (b) Every resale dealer shall require and keep a record of
16identification to be shown by each person selling any goods,
17articles, or other things to the resale dealer. If the
18identification shown is a driver's license or a State
19identification card issued by the Secretary of State and
20contains a photograph of the person being identified, only one
21form of identification must be shown. If the identification
22shown is not a driver's license or a State identification card
23issued by the Secretary of State and does not contain a
24photograph, 2 forms of identification must be shown, and one of
25the 2 forms of identification must include his or her address.
26These forms of identification shall include, but not be limited



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1to, any of the following: a driver's license, utility bill,
2employee or student identification card, credit card, or a
3civic, union, or professional association membership card. In
4addition, in a municipality with a population of 1,000,000 or
5more inhabitants, if the seller does not have a form of
6identification issued by a governmental entity containing a
7photograph of the person being identified, the resale dealer
8shall photograph the seller in color and record the seller's
9name, address, date of birth, gender, height, and weight on the
10reverse side of the photograph. All resale dealers regulated by
11this Act shall maintain transaction records for 3 years.
12    (c) A resale dealer may maintain the records required by
13subsection (a) in computer form if the computer form has been
14approved by the appropriate law enforcement official.
15    (d) Every resale dealer shall maintain an inventory system
16of all property purchased or received in such a manner that
17members of the appropriate law enforcement agency making an
18inspection of such property can readily locate such property on
19the licensed premises.
20    Section 20. Daily report. It shall be the duty of every
21resale dealer to make out and deliver to the appropriate law
22enforcement official where such resale dealer does business, on
23each day before the hours of 12 o'clock noon, a legible and
24exact copy from the standard record book, as required in
25Section 15. Such report may be made by means authorized by the



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1appropriate law enforcement official.
2    Section 25. Prohibited purchases. No resale dealer under
3this Act shall purchase or accept any goods or articles if:
4        (1) the seller is less than 18 years of age;
5        (2) the seller fails to present the appropriate form of
6    identification as required by subsection (b) of Section 15;
7    or
8        (3) the article to be purchased had an original
9    manufacturer's serial number at the time it was new, but no
10    longer legibly exhibits such number.
11    Section 30. Removal of identifying marks prohibited. No
12resale dealer shall remove, alter, or obliterate any
13manufacturer's make, model or serial number, personal
14identification number, or identifying marks engraved or etched
15upon an item of personal property that was purchased or
16received by the resale dealer.
17    Section 35. Inspection of records and premises of resale
18dealers. The required records of each resale dealer are
19subject to inspection during regular business hours by the
20appropriate law enforcement official for compliance purposes
21only on an annual basis or more frequently if needed to
22investigate a matter or to respond to any complaint expressed
23by the public or by a law enforcement official.



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1    Section 40. Holding period.
2    (a) No resale dealer shall expose for sale, sell, trade,
3barter, melt, crush or compact, destroy, or otherwise dispose
4of any individually identifiable article within 10 days after
5the date of purchasing or receiving the article. No resale
6dealer shall expose for sale, sell, trade, barter, melt, crush
7or compact, destroy, or otherwise dispose of any
8non-identifiable article within 3 days after the date of
9purchasing or receiving the article.
10    (b) All items subject to this Section shall be stored at
11the location in which they were purchased during the holding
13    Section 45. Hold order.
14    (a) For the purposes of this Section, "hold order" means a
15written legal instrument issued to a resale dealer by a law
16enforcement officer commissioned by the appropriate law
17enforcement official of the municipality or county that
18licenses and regulates the resale dealer ordering the resale
19dealer to retain physical possession of pledged goods in the
20possession of the resale dealer or property purchased by and in
21the possession of the resale dealer and not to return, sell, or
22otherwise dispose of such property on the basis that the
23property is believed to be misappropriated goods.
24    (b) Upon receipt of written notice from the appropriate law



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1enforcement official indicating that property in the
2possession of the resale dealer and subject to a hold order is
3needed for the purpose of furthering a criminal investigation
4and prosecution, the resale dealer shall release the property
5to the custody of the law enforcement official for such purpose
6and the officer shall provide a written acknowledgment that the
7property has been released to the official. The release of the
8property to the custody of the appropriate law enforcement
9official shall not be considered a waiver or release of the
10resale dealer's property rights or interest in the property.
11Upon completion of the criminal investigation, the property
12shall be returned to the resale dealer; except that, if the
13appropriate law enforcement official has not completed the
14criminal investigation within 120 days after the property's
15release, the official shall immediately return the property to
16the resale dealer or obtain and furnish to the resale dealer a
17warrant for the continued custody of the property.
18    The resale dealer shall not release or dispose of the
19property except pursuant to a court order or the expiration of
20the holding period of the hold order, including all extensions.
21    In cases where criminal charges have been filed and the
22property may be needed as evidence, the prosecuting attorney
23shall notify the resale dealer in writing. The notice shall
24contain the case number, the style of the case, and a
25description of the property. The resale dealer shall hold such
26property until receiving notice of the disposition of the case



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1from the prosecuting attorney. The prosecuting attorney shall
2notify the resale dealer and claimant in writing within 15 days
3after the disposition of the case. When such other disposition
4is ordered, the court shall additionally order the person from
5whom the resale dealer acquired the property to pay restitution
6to the resale dealer in the amount that the resale dealer paid
7for the property together with reasonable attorney's fees and
9    When any person is found to be the owner of stolen property
10that has been sold to resale dealer, the property shall be
11returned to the owner without the payment of the money paid by
12the resale dealer or any costs or charges of any kind that the
13resale dealer may have placed on the property.
14    Section 50. Violations.
15    (a) Any person who knowingly fails to obey, observe, or
16comply with the provisions of Sections 15, 20, 25, or 35 of
17this Act shall be: (i) guilty of a petty offense for which a
18$750 fine shall be imposed for a first or second offense; (ii)
19guilty of a Class B misdemeanor for a third offense; and (iii)
20guilty of a Class A misdemeanor for a fourth or subsequent
22    (b) Any person who knowingly fails to obey, observe, or
23comply with the provisions of Sections 30, 40, or 45 of this
24Act shall be: (i) guilty of a petty offense for which a $750
25fine shall be imposed for a first or second offense; (ii)



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1guilty of a Class A misdemeanor for a third offense; and (iii)
2guilty of a Class 4 felony for a fourth or subsequent offense.
3    Section 55. Local regulation. Nothing in this Act shall be
4construed to impair the power of a county or municipality,
5including home rule units, to enforce the provisions of this
6Act or to license, regulate, suppress, or prohibit resale
7dealers, provided that any such actions are no less restrictive
8than required by this Act. This Section is a limitation under
9subsection (i) of Section 6 of Article VII of the Illinois
10Constitution on the concurrent exercise by home rule units of
11the powers and functions exercised by the State. Such local
12licensing regulation may include the requirement to install,
13operate, and maintain a video camera surveillance system
14capable of recording clear and unobstructed photographic
15representations of the resale dealer's customers. Such
16videotape recording may be subject to inspection by the
17appropriate law enforcement official.
18    (205 ILCS 510/15 rep.)
19    Section 70. The Pawnbroker Regulation Act is amended by
20repealing Section 15.