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92_HB5803enr HB5803 Enrolled LRB9215552OBsb 1 AN ACT relating to auctions. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Auction License Act is amended by 5 changing Section 10-1 and adding Section 10-27 as follows: 6 (225 ILCS 407/10-1) 7 (Section scheduled to be repealed on January 1, 2010) 8 Sec. 10-1. Necessity of license; exemptions. 9 (a) It is unlawful for any person, corporation, limited 10 liability company, partnership, or other entity to conduct an 11 auction, provide an auction service, hold himself or herself 12 out as an auctioneer, or advertise his or her services as an 13 auctioneer in the State of Illinois without a license issued 14 by OBRE under this Act, except at: 15 (1) an auction conducted solely by or for a 16 not-for-profit organization for charitable purposes; 17 (2) an auction conducted by the owner of the 18 property, real or personal; 19 (3) an auction for the sale or lease of real 20 property conducted by a licensee under the Real Estate 21 License Act, or its successor Acts, in accordance with 22 the terms of that Act;and23 (4) an auction conducted by a business registered 24 as a market agency under the federal Packers and 25 Stockyards Act (7 U.S.C. 181 et seq.) or under the 26 Livestock Auction Market Law;.27 (5) an auction conducted by an agent, officer, or 28 employee of a federal agency in the conduct of his or her 29 official duties; and 30 (6) an auction conducted by an agent, officer, or 31 employee of the State government or any political HB5803 Enrolled -2- LRB9215552OBsb 1 subdivision thereof performing his or her official 2 duties. 3 (b) Nothing in this Act shall be construed to apply to a 4 new or used vehicle dealer or a vehicle auctioneer licensed 5 by the Secretary of State of Illinois, or to any employee of 6 the licensee, who is a resident of the State of Illinois, 7 while the employee is acting in the regular scope of his or 8 her employment for the licensee while conducting an auction 9 that is not open to the public, provided that only new or 10 used vehicle dealers, rebuilders, automotive parts recyclers, 11 scrap processors, or out-of-state salvage vehicle buyers 12 licensed by the Secretary of State or licensed by another 13 jurisdiction may buy property at the auction, or to sales by 14 or through the licensee. 15 (c) Nothing in this Act shall be construed to prohibit a 16 person under the age of 18 from selling property under $250 17 in value while under the direct supervision of a licensed 18 auctioneer. 19 (d) Nothing in this Act, except Section 10-27, shall be 20 construed to apply to a person while providing an Internet 21 auction listing service as defined in Section 10-27. 22 (Source: P.A. 91-603, eff. 1-1-00.) 23 (225 ILCS 407/10-27 new) 24 Sec. 10-27. Registration of Internet Auction Listing 25 Service. 26 (a) For the purposes of this Section: 27 (1) "Internet Auction Listing Service" means a 28 website on the Internet, or other interactive computer 29 service that is designed to allow or advertised as a 30 means of allowing users to offer personal property or 31 services for sale or lease to a prospective buyer or 32 lessee through an on-line bid submission process using 33 that website or interactive computer service and that HB5803 Enrolled -3- LRB9215552OBsb 1 does not examine, set the price, or prepare the 2 description of the personal property or service to be 3 offered, or in any way utilize the services of a natural 4 person as an auctioneer. 5 (2) "Interactive computer service" means any 6 information service, system, or access software provider 7 that provides or enables computer access by multiple 8 users to a computer server, including specifically a 9 service or system that provides access to the Internet. 10 (b) It is unlawful for any person, corporation, limited 11 liability company, partnership, or other entity to provide an 12 Internet auction listing service in the State of Illinois for 13 compensation without being registered with the Office of 14 Banks and Real Estate (OBRE) when: 15 (1) the person, corporation, limited liability 16 company, partnership, or other entity providing the 17 Internet auction listing service is located in the State 18 of Illinois; 19 (2) the prospective seller or seller, prospective 20 lessor or lessor, or prospective purchaser or purchaser 21 is located in the State of Illinois and is required to 22 agree to terms with the person, corporation, limited 23 liability company, partnership, or other entity providing 24 the Internet auction listing service, no matter where 25 that person, corporation, limited liability company, 26 partnership, or other entity is located; or 27 (3) the personal property or services offered for 28 sale or lease are located or will be provided in the 29 State of Illinois. 30 (c) Any person, corporation, limited liability company, 31 partnership, or other entity that provides an Internet 32 auction listing service in the State of Illinois for 33 compensation under any of the circumstances listed in 34 subsection (b) shall register with OBRE on forms provided by HB5803 Enrolled -4- LRB9215552OBsb 1 OBRE accompanied by the required fee as provided by rule. 2 Such registration shall include information as required by 3 OBRE and established by rule as OBRE deems necessary to 4 enable users of the Internet auction listing service in 5 Illinois to identify the entity providing the service and to 6 seek redress or further information from such entity. The fee 7 shall be sufficient to cover the reasonable costs of OBRE in 8 administering and enforcing the provisions of this Section. 9 The registrant shall be required to certify: 10 (1) that the registrant does not act as the agent 11 of users who sell items on its website, and acts only as 12 a venue for user transactions; 13 (2) that the registrant requires sellers and 14 bidders to register with the website and provide their 15 name, address, telephone number and e-mail address; 16 (3) that the registrant retains such information 17 for a period of at least 2 years; 18 (4) that the registrant retains transactional 19 information consisting of at least seller identification, 20 high bidder identification, and item sold for at least 2 21 years from the close of a transaction, and has a 22 mechanism to identify all transactions involving a 23 particular seller or buyer; 24 (5) that the registrant has a mechanism to receive 25 complaints or inquiries from users; 26 (6) that the registrant adopts and reasonably 27 implements a policy of suspending, in appropriate 28 circumstances, the accounts of users who, based on the 29 registrant's investigation, are proven to have engaged in 30 a pattern of activity that appears to be deliberately 31 designed to defraud consumers on the registrant's 32 website; and 33 (7) that the registrant will comply with OBRE and 34 law enforcement requests for stored data in its HB5803 Enrolled -5- LRB9215552OBsb 1 possession, subject to the requirements of applicable 2 law. 3 (d) OBRE may refuse to accept a registration which is 4 incomplete or not accompanied by the required fee. OBRE may 5 impose a civil penalty not to exceed $10,000 upon any 6 Internet auction listing service that intentionally fails to 7 register as required by this Section, and may impose such 8 penalty or revoke, suspend, or place on probation or 9 administrative supervision the registration of any Internet 10 auction listing service that: 11 (1) intentionally makes a false or fraudulent 12 material representation or material misstatement or 13 misrepresentation to OBRE in connection with its 14 registration, including in the certification required 15 under subsection (c); 16 (2) is convicted of any crime, an essential element 17 of which is dishonesty, fraud, larceny, embezzlement, or 18 obtaining money, property, or credit by false pretenses 19 or by means of a confidence game; or is convicted in this 20 or another state of a crime that is a felony under the 21 laws of this State; or is convicted of a felony in a 22 federal court; 23 (3) is adjudged to be a person under legal 24 disability or subject to involuntary admission or to meet 25 the standard for judicial admission as provided in the 26 Mental Health and Developmental Disabilities Code; 27 (4) has been subject to discipline by another 28 state, the District of Columbia, a territory of the 29 United States, a foreign nation, a governmental agency, 30 or any other entity authorized to impose discipline if at 31 least one of the grounds for that discipline is the same 32 as or equivalent to one of the grounds for discipline set 33 forth in this Section or for failing to report to OBRE, 34 within 30 days, any adverse final action taken against HB5803 Enrolled -6- LRB9215552OBsb 1 the registrant by any other licensing or registering 2 jurisdiction, government agency, law enforcement agency, 3 or court, or liability for conduct that would constitute 4 grounds for action as set forth in this Section; 5 (5) fails to make available to OBRE personnel 6 during normal business hours all records and related 7 documents maintained in connection with the activities 8 subject to registration under this Section; 9 (6) makes or files false records or reports in 10 connection with activities subject to registration, 11 including but not limited to false records or reports 12 filed with State agencies; 13 (7) fails to provide information within 30 days in 14 response to a written request made by the OBRE to a 15 person designated in the registration for receipt of such 16 requests; or 17 (8) fails to perform any act or procedure described 18 in subsection (c) of this Section. 19 (e) Registrations issued pursuant to this Section shall 20 expire on September 30 of odd-numbered years. A registrant 21 shall submit a renewal application to OBRE on forms provided 22 by OBRE along with the required fee as established by rule. 23 (f) Operating an Internet auction listing service under 24 any of the circumstances listed in subsection (b) without 25 being currently registered under this Section is declared to 26 be adverse to the public welfare, to constitute a public 27 nuisance, and to cause irreparable harm to the public 28 welfare. The Commissioner of OBRE, the Attorney General of 29 the State of Illinois, the State's Attorney of any county in 30 the State, or any other person may maintain an action and 31 apply for injunctive relief in any circuit court to enjoin 32 the person or entity from engaging in such practice. 33 (g) The provisions of Sections 20-25, 20-30, 20-35, 34 20-40, 20-45, 20-50, 20-55, 20-60 and 20-75 of this Act shall HB5803 Enrolled -7- LRB9215552OBsb 1 apply to any actions of OBRE exercising its authority under 2 subsection (d) as if a person required to register under this 3 Section were a person holding or claiming to hold a license 4 under this Act. 5 (h) OBRE shall have the authority to adopt such rules as 6 may be necessary to implement or interpret the provisions of 7 this Section. 8 Section 99. Effective date. This Act takes effect upon 9 becoming law.