Illinois General Assembly - Full Text of SB1778
Illinois General Assembly

Previous General Assemblies

Full Text of SB1778  98th General Assembly


Rep. Anna Moeller

Filed: 5/13/2014





09800SB1778ham001LRB098 09391 ZMM 59230 a


2    AMENDMENT NO. ______. Amend Senate Bill 1778 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Resale Dealers 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,
14or platinum or any combination of gold, silver, or platinum.
15"Precious metals" do not include items containing any chemical
16or any automotive, photographic, electrical, medical or dental



09800SB1778ham001- 2 -LRB098 09391 ZMM 59230 a

1materials, or electronic parts, except for those containing
2precious metals.
3    "Recyclable metal" means items made of copper, brass, or
5    "Resale dealer" means any individual, firm, corporation,
6or partnership engaged in the business of operating a business
7for profit, which buys, sells, possesses on consignment for
8sale, or trades jewelry, stamps, electronic equipment, or any
9precious metals that have been previously owned by a consumer.
10The term "resale dealer" includes without limitation
11businesses commonly known as swapshop operators, cash for gold
12operators, and jewelers that purchase and resell items from
13persons other than dealers possessing a federal employee
14identification number and suppliers and engage in
15disassembling, melting, or otherwise altering jewelry. The
16term "resale dealer" does not include pawnbrokers, coin
17dealers, or retail merchants that do not purchase
18previously-owned items directly from the public at the retail
19location. The fact that any business does any of the following
20acts shall be prima facie proof that such business is a resale
21dealer: (i) advertises in any fashion, including through media
22advertisements, websites, telephone listings, or signs on the
23exterior or interior of buildings, that it buys or sells used
24items and (ii) devotes a significant segment or section of the
25business premises to the purchase or sale of used items.



09800SB1778ham001- 3 -LRB098 09391 ZMM 59230 a

1    Section 10. Exemptions. The following shall be exempt from
2the requirements of this Act:
3        (1) Residential garage sales.
4        (2) Sales conducted by governmental, civic, patriotic,
5    fraternal, educational, religious, or benevolent
6    organizations that have been active and in continuous
7    existence for at least one year prior to the holding of the
8    sale or that are exempt from taxation under Section 501(c)
9    of the federal Internal Revenue Code.
10        (3) Sales or purchases that are regulated by the
11    licensing laws of this State, including automobile
12    dealers, used parts dealers, and automotive parts
13    recyclers.
14        (4) Consumer shows or exhibitions of collectibles
15    other than a show or convention that offers to buy second
16    hand jewelry from attendees.
17        (5) Auctioneers.
18        (6) Pawnbrokers.
19        (7) Sales of recyclable metal by a recyclable metal
20    dealer.
21        (8) Coin dealers.
22    Section 15. Recordkeeping requirements.
23    (a) Every resale dealer shall keep a standard record book
24that has been approved by the appropriate law enforcement
25official. At the time of each sale, an accurate account and



09800SB1778ham001- 4 -LRB098 09391 ZMM 59230 a

1description, in the English language, of all the goods,
2articles, and other things purchased, the amount of money,
3value, or thing loaned thereon, the time of sale, and the name
4and address of the person selling such items shall be printed,
5typed, or written in ink in the record book. Such entry shall
6include the serial number or identification number of the items
7received. Except for items purchased from dealers possessing a
8federal employee identification number who have provided a
9receipt to the resale dealer, every resale dealer shall also
10record in his or her book an accurate account and description,
11in the English language, of all goods, articles and other
12things purchased or received by the resale dealer from any
13source, the time of such purchase or receipt, and the name and
14address of the person or business that sold or delivered such
15goods, articles, or other things to the resale dealer. No
16completed entry in such book shall be erased, mutilated, or
18    (b) Every resale dealer shall require and keep a record of
19identification to be shown by each person selling any goods,
20articles, or other things to the resale dealer. If the
21identification shown is a driver's license or a State
22identification card issued by the Secretary of State and
23contains a photograph of the person being identified, only one
24form of identification must be shown. If the identification
25shown is not a driver's license or a State identification card
26issued by the Secretary of State and does not contain a



09800SB1778ham001- 5 -LRB098 09391 ZMM 59230 a

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



09800SB1778ham001- 6 -LRB098 09391 ZMM 59230 a

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



09800SB1778ham001- 7 -LRB098 09391 ZMM 59230 a

1only on an annual basis or more frequently if needed to
2investigate a matter or to respond to any complaint expressed
3by the public or by a law enforcement official.
4    Section 40. Holding period.
5    (a) No resale dealer shall expose for sale, sell, trade,
6barter, melt, crush or compact, destroy, or otherwise dispose
7of any individually identifiable article within 10 days after
8the date of purchasing or receiving the article. No resale
9dealer shall expose for sale, sell, trade, barter, melt, crush
10or compact, destroy, or otherwise dispose of any
11non-identifiable article within 3 days after the date of
12purchasing or receiving the article.
13    (b) All items subject to this Section shall be stored at
14the location in which they were purchased during the holding
16    Section 45. Hold order.
17    (a) For the purposes of this Section, "hold order" means a
18written legal instrument issued to a resale dealer by a law
19enforcement officer commissioned by the appropriate law
20enforcement official of the municipality or county that
21licenses and regulates the resale dealer ordering the resale
22dealer to retain physical possession of pledged goods in the
23possession of the resale dealer or property purchased by and in
24the possession of the resale dealer and not to return, sell, or



09800SB1778ham001- 8 -LRB098 09391 ZMM 59230 a

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



09800SB1778ham001- 9 -LRB098 09391 ZMM 59230 a

1contain the case number, the style of the case, and a
2description of the property. The resale dealer shall hold such
3property until receiving notice of the disposition of the case
4from the prosecuting attorney. The prosecuting attorney shall
5notify the resale dealer and claimant in writing within 15 days
6after the disposition of the case. When such other disposition
7is ordered, the court shall additionally order the person from
8whom the resale dealer acquired the property to pay restitution
9to the resale dealer in the amount that the resale dealer paid
10for the property together with reasonable attorney's fees and
12    When any person is found to be the owner of stolen property
13that has been sold to resale dealer, the property shall be
14returned to the owner without the payment of the money paid by
15the resale dealer or any costs or charges of any kind that the
16resale dealer may have placed on the property.
17    Section 50. Violations.
18    (a) Any person who knowingly fails to obey, observe, or
19comply with the provisions of Sections 15, 20, 25, or 35 of
20this Act shall be: (i) guilty of a petty offense for which a
21$750 fine shall be imposed for a first or second offense; (ii)
22guilty of a Class B misdemeanor for a third offense; and (iii)
23guilty of a Class A misdemeanor for a fourth or subsequent
25    (b) Any person who knowingly fails to obey, observe, or



09800SB1778ham001- 10 -LRB098 09391 ZMM 59230 a

1comply with the provisions of Sections 30, 40, or 45 of this
2Act shall be: (i) guilty of a petty offense for which a $750
3fine shall be imposed for a first or second offense; (ii)
4guilty of a Class A misdemeanor for a third offense; and (iii)
5guilty of a Class 4 felony for a fourth or subsequent offense.
6    Section 55. Local regulation. Nothing in this Act shall be
7construed to impair the power of a county or municipality,
8including home rule units, to enforce the provisions of this
9Act or to license, regulate, suppress, or prohibit resale
10dealers, provided that any such actions are no less restrictive
11than required by this Act. This Section is a limitation under
12subsection (i) of Section 6 of Article VII of the Illinois
13Constitution on the concurrent exercise by home rule units of
14the powers and functions exercised by the State. Such local
15licensing regulation may include the requirement to install,
16operate, and maintain a video camera surveillance system
17capable of recording clear and unobstructed photographic
18representations of the resale dealer's customers. Such
19videotape recording may be subject to inspection by the
20appropriate law enforcement official.
21    (205 ILCS 510/15 rep.)
22    Section 70. The Pawnbroker Regulation Act is amended by
23repealing Section 15.".