State of Illinois
2019 and 2020


Introduced , by Rep. Michelle Mussman


205 ILCS 510/9  from Ch. 17, par. 4659
205 ILCS 510/12

    Amends the Pawnbroker Regulation Act. Removes language providing that when a person is found to be the owner of stolen property that has been pawned, the property shall be returned to the owner without payment of money advanced to the pawnbroker or any costs or charges. Provides that stolen property subject to a hold order shall be returned to the owner without the payment. Provides that when a hold order expires, title to the property shall vest in the pawnbroker. Provides that a hold order must specify certain information concerning the criminal investigation and property subject to the hold order. Sets forth the requirements for the contents of the hold order. Provides that a pawnbroker or its representative must sign and date a copy of a hold order as evidence of receipt of the hold order and the beginning of the 90-day hold period.

LRB101 04919 JRG 49928 b





HB1438LRB101 04919 JRG 49928 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Pawnbroker Regulation Act is amended by
5changing Sections 9 and 12 as follows:
6    (205 ILCS 510/9)  (from Ch. 17, par. 4659)
7    Sec. 9. No pawnbroker shall purchase or take any article in
8pawn or pledge from any person appearing to be intoxicated, nor
9from any person known to have been convicted of theft. A law
10enforcement officer may provide such criminal conviction
11information to a pawnbroker. When any person is found to be the
12owner of stolen property which has been pawned, such property
13shall be returned to the owner thereof without the payment of
14the money advanced by the pawnbroker thereon or any costs or
15charges of any kind which the pawnbroker may have placed upon
16the same.
17(Source: P.A. 84-1308.)
18    (205 ILCS 510/12)
19    Sec. 12. Hold order.
20    (a) For the purposes of this Section, "hold order" means a
21written legal instrument issued to a pawnbroker by a law
22enforcement officer commissioned by the law enforcement agency



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1of the municipality or county that licenses and regulates the
2pawnbroker, ordering the pawnbroker to retain physical
3possession of pledged goods in the possession of the pawnbroker
4or property purchased by and in the possession of the
5pawnbroker and not to return, sell, or otherwise dispose of
6such property as such property is believed to be
7misappropriated goods.
8    (b) Upon written notice from a law enforcement officer
9indicating that property in the possession of a pawnbroker and
10subject to a hold order is needed for the purpose of furthering
11a criminal investigation and prosecution, the pawnbroker shall
12release the property subject to the hold order to the custody
13of the law enforcement officer for such purpose and the officer
14shall provide a written acknowledgment that the property has
15been released to the officer. The release of the property to
16the custody of the law enforcement officer shall not be
17considered a waiver or release of the pawnbroker's property
18rights or interest in the property. Upon completion of the
19criminal investigation, the property shall be returned to the
20pawnbroker who consented to its release; except that, if the
21law enforcement officer at the completion of the criminal
22investigation is able to determine the property subject to the
23hold order is stolen property and has identified the owner of
24the stolen property, the property shall be returned to the
25owner without the payment of the money advanced by the
26pawnbroker or any costs or charges of any kind that the



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1pawnbroker may have placed upon the same. In the event that the
2law enforcement officer has not completed the criminal
3investigation within 120 days after its release, the officer
4shall immediately return the property to the pawnbroker or
5obtain and furnish to the pawnbroker a warrant for the
6continued custody of the property. Once the hold order expires
7without an extension by court order or is rescinded, title to
8the property shall vest in and be deemed conveyed by operation
9of law to the pawnbroker, free of any liability for claims, but
10subject to any restrictions contained in the pawn transaction
11contract and subject to the provisions of this Section.
12    The pawnbroker shall not release or dispose of the property
13except pursuant to a court order or the expiration of the
14holding period of the hold order, including all extensions.
15    In cases where criminal charges have been filed and the
16property may be needed as evidence, the prosecuting attorney
17shall notify the pawnbroker in writing. The notice shall
18contain the case number, the style of the case, and a
19description of the property. The pawnbroker shall hold such
20property until receiving notice of the disposition of the case
21from the prosecuting attorney. The prosecuting attorney shall
22notify the pawnbroker and claimant in writing within 15 days
23after the disposition of the case.
24    (c) A hold order must specify:
25        (1) the name and address of the pawnbroker;
26        (2) the name, title, and identification number of the



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1    law enforcement officer placing the hold order or the court
2    placing the hold order;
3        (3) a complete description of the property to be held,
4    including model number and serial number, if applicable;
5        (4) the name of the person reporting the property to be
6    misappropriated unless otherwise prohibited by law;
7        (5) the mailing address of the pawnbroker where the
8    property is held; and
9        (6) the expiration date of the holding period.
10    (d) The pawnbroker or the pawnbroker's representative must
11sign and date a copy of the hold order as evidence of receipt
12of the hold order and the beginning of the 90-day holding
14(Source: P.A. 96-1365, eff. 7-28-10.)