Rep. Anna Moeller

Filed: 4/11/2014

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3964

2    AMENDMENT NO. ______. Amend House Bill 3964 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, both the police
10chief of the municipality and the sheriff, provided, however,
11that the sheriff or police chief may designate an appropriate
12official of the county 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

 

 

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1materials, or electronic parts.
2    "Resale dealer" means any individual, firm, corporation,
3or partnership engaged in the business of operating a business
4for profit, which buys, sells, possesses on consignment for
5sale, or trades jewelry, stamps, electronic equipment, or any
6precious metals that have been previously owned by a consumer.
7The term "resale dealer" includes without limitation
8businesses commonly known as swapshop operators, cash for gold
9operators, and jewelers that purchase and resell items from
10persons other than dealers and suppliers and engage in
11disassembling, melting, or otherwise altering jewelry. The
12term "resale dealer" does not include pawnbrokers or coin
13dealers. The fact that any business does any of the following
14acts shall be prima facie proof that such business is a resale
15dealer: (i) advertises in any fashion, including through media
16advertisements, websites, telephone listings, or signs on the
17exterior or interior of buildings, that it buys or sells used
18items and (ii) devotes a significant segment or section of the
19business premises to the purchase or sale of used items.
 
20    Section 10. Exemptions. The following shall be exempt from
21the requirements of this Act:
22        (1) Residential garage sales.
23        (2) Sales conducted by governmental, civic, patriotic,
24    fraternal, educational, religious, or benevolent
25    organizations that have been active and in continuous

 

 

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1    existence for at least one year prior to the holding of the
2    sale or that are exempt from taxation under Section 501(c)
3    of the federal Internal Revenue Code.
4        (3) Sales or purchases that are regulated by the
5    licensing laws of this State, including automobile
6    dealers, used parts dealers, and automotive parts
7    recyclers.
8        (4) Consumer shows or exhibitions of collectibles.
9        (5) Auctioneers.
10        (6) Pawnbrokers.
11        (7) Sales of recyclable metal by a recyclable metal
12    dealer.
13        (8) Coin dealers.
 
14    Section 15. Recordkeeping requirements.
15    (a) Except in municipalities located in counties having
163,000,000 or more inhabitants, every resale dealer shall keep a
17standard record book that has been approved by the sheriff of
18the county where the resale dealer does business. In
19municipalities located in counties with 3,000,000 or more
20inhabitants, the record book shall be approved by the police
21department of the municipality where the resale dealer does
22business. 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 entry
13in such book shall be erased, mutilated, or changed.
14    (b) Every resale dealer shall require and keep a record of
15identification to be shown by each person selling any goods,
16articles, or other things to the resale dealer. If the
17identification shown is a driver's license or a State
18identification card issued by the Secretary of State and
19contains a photograph of the person being identified, only one
20form of identification must be shown. If the identification
21shown is not a driver's license or a State identification card
22issued by the Secretary of State and does not contain a
23photograph, 2 forms of identification must be shown, and one of
24the 2 forms of identification must include his or her address.
25These forms of identification shall include, but not be limited
26to, any of the following: a driver's license, social security

 

 

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1card, utility bill, employee or student identification card,
2credit card, or a civic, union, or professional association
3membership card. In addition, in a municipality with a
4population of 1,000,000 or more inhabitants, if the seller does
5not have a form of identification issued by a governmental
6entity containing a photograph of the person being identified,
7the resale dealer shall photograph the seller in color and
8record the seller's name, address, date of birth, gender,
9height, and weight on the reverse side of the photograph.
10    (c) A county or municipality, including home rule units,
11may regulate a resale dealer's identification requirements for
12persons selling goods, articles, or other things to the resale
13dealer in a manner that is not less restrictive than the
14regulation by the State of a resale dealer's identification
15requirements for persons selling goods, articles, or other
16things. A home rule unit may not regulate a resale dealer's
17identification requirements for persons selling goods,
18articles, or other things to the resale dealer in a manner less
19restrictive than the regulation by the State of a resale
20dealer's identification requirements for persons selling
21goods, articles, or other things. This Section is a limitation
22under subsection (i) of Section 6 of Article VII of the
23Illinois Constitution on the concurrent exercise by home rule
24units of the powers and functions exercised by the State.
25    (d) A resale dealer may maintain the records required by
26subsection (a) in computer form if the computer form has been

 

 

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1approved by the sheriff of the county where the shop is located
2and the police department of the municipality where the shop is
3located.
 
4    Section 20. Daily report.
5     (a) Except as provided in subsection (b), it shall be the
6duty of every resale dealer to make out and deliver to the
7sheriff of the county where such resale dealer does business,
8on each day before the hours of 12 o'clock noon, a legible and
9exact copy from the standard record book, as required in
10Section 10, that lists all personal property and any other
11valuable item purchased during the preceding day, including the
12exact time when the personal property or valuable item was
13received or purchased and a description of the person or
14persons that sold or left in pledge the personal property or
15valuable item. In municipalities having 25,000 or more
16inhabitants, a copy of the report shall also be delivered to
17the superintendent of police or the chief police officer of
18such city or town. The report may be made by computer printout
19or input memory device if the format has been approved in the
20manner provided in subsection (d) of Section 10.
21    (b) In counties with more than 3,000,000 inhabitants, a
22resale dealer shall provide the daily report to the sheriff if
23the resale dealer is located in an unincorporated area of the
24county. Resale dealers located in municipalities in such
25counties shall deliver such reports to the chief police

 

 

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1official of such municipality.
 
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 is intoxicated;
6        (3) the seller fails to present the appropriate form of
7    identification as required by subsection (b) of Section 10;
8        (4) 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; or
11        (5) the seller is known to be a thief or has been
12    convicted of theft, burglary, robbery, or possession of
13    stolen property.
 
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.
22    (a) The entire registered premises and required records of
23each resale dealer are subject to inspection during regular

 

 

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1business hours by any law enforcement officer having
2jurisdiction.
3    (b) The inspection authorized by subsection (a) shall
4consist of an examination on the premises as required by this
5Act and an examination to determine whether the holding period
6required by this Act is being complied with.
 
7    Section 40. Video camera surveillance required. Each
8resale dealer shall be required to install, operate, and
9maintain a video camera surveillance system capable of
10recording clear and unobstructed photographic representations
11of the resale dealer's customers and shall retain the videotape
12recordings produced for at least 30 days after production. All
13videotape recordings shall be subject to inspection and copying
14by members of the appropriate law enforcement agency during the
15resale dealer's business hours.
 
16    Section 45. Holding period.
17    (a) No resale dealer shall expose for sale, sell, trade,
18barter, melt, crush or compact, destroy, or otherwise dispose
19of any individually identifiable article within 10 days after
20the date of purchasing or receiving the article. No resale
21dealer shall expose for sale, sell, trade, barter, melt, crush
22or compact, destroy, or otherwise dispose of any
23non-identifiable article within 3 days after the date of
24purchasing or receiving the article.

 

 

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1    (b) All resale dealers shall maintain transaction records
2for 3 years after the date of transaction.
 
3    Section 50. Inventory system. Every resale dealer shall
4maintain an inventory system of all property purchased or
5received in such a manner that members of the appropriate law
6enforcement agency making an inspection of the property can
7readily locate such property on the licensed premises.
 
8    Section 55. Hold order.
9    (a) For the purposes of this Section, "hold order" means a
10written legal instrument issued to a resale dealer by a law
11enforcement officer commissioned by the law enforcement agency
12of the municipality or county that licenses and regulates the
13resale dealer ordering the resale dealer to retain physical
14possession of pledged goods in the possession of the resale
15dealer or property purchased by and in the possession of the
16resale dealer and not to return, sell, or otherwise dispose of
17such property on the basis that the property is believed to be
18misappropriated goods.
19    (b) Upon receipt of written notice from a law enforcement
20officer indicating that property in the possession of the
21resale dealer and subject to a hold order is needed for the
22purpose of furthering a criminal investigation and
23prosecution, the resale dealer shall release the property to
24the custody of the law enforcement officer for such purpose and

 

 

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

 

 

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1to the resale dealer in the amount that the resale dealer paid
2for the property together with reasonable attorney's fees and
3costs.
 
4    Section 60. Violations. A first or second violation of this
5Act is a petty offense for which a $750 fine shall be imposed.
6A third violation of this Act is a Class C misdemeanor. A
7fourth or subsequent violation of this Act is a Class A
8misdemeanor.
 
9    Section 65. Local regulation. Except as provided in
10subsection (c) of Section 15, nothing in this Act shall be
11construed to impair the power of a county or municipality,
12including home rule units, to enforce the provisions of this
13Act or to license, regulate, suppress, or prohibit resellers,
14provided that any such actions are no less restrictive than
15required by this Act. This Section is a limitation under
16subsection (i) of Section 6 of Article VII of the Illinois
17Constitution on the concurrent exercise by home rule units of
18the powers and functions exercised by the State.".