Bill Text: IL SB1778 | 2013-2014 | 98th General Assembly | Chaptered

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Bill Title: Amends the Division of Banking Act. Authorizes the Secretary of Financial and Professional Regulation to establish a Commercial Bank Regulatory Section and a Savings Bank Regulatory Section within the Division. Amends the State Finance Act. Changes the name of the Savings and Residential Finance Regulatory Fund to the Residential Finance Regulatory Fund. Provides for expenditures from the Savings Institution Regulatory Fund and the Residential Finance Regulatory Fund related to the disposition of unclaimed property. Amends the Savings Bank Act. Provides that the Secretary may charter mutual and stock holding companies in connection with a mutual savings bank reorganization. Establishes the effect of the repeal of the Illinois Savings and Loan Act of 1985, including the regulation of entities formerly under the Illinois Savings and Loan Act as savings banks under the Savings Bank Act. Changes references from "member or shareholder" to "customer". Changes references from "Commissioner" to "Secretary". Makes changes to provisions concerning articles of incorporation, proxies, directors, access to books and records, regulations, investment in loans, loans to one borrower, mergers, conversion of an existing depository institution to a savings bank, powers of the Secretary, regulatory fees, and disclosure of reports of examinations and confidential supervisory information. Repeals the Illinois Savings and Loan Act of 1985. Makes other changes. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 28-9)

Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1096 [SB1778 Detail]

Download: Illinois-2013-SB1778-Chaptered.html

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Public Act 098-1096
SB1778 Enrolled LRB098 09391 MGM 39532 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the Resale
Dealers Act.
Section 5. Definitions. For the purposes of this Act:
"Appropriate law enforcement official" means the sheriff
of the county where a resale dealer is located or, if the
resale dealer is located within a municipality, the police
chief of the municipality, provided, however, that the sheriff
or police chief may designate an appropriate official of the
county or municipality as applicable.
"Precious metals" means any item containing gold, silver,
platinum, palladium, or rhodium or any combination of gold,
silver, platinum, palladium, or rhodium. "Precious metals" do
not include items containing any chemical or any automotive,
photographic, electrical, medical or dental materials, or
electronic parts, except for those containing precious metals.
"Recyclable metal" means items made of copper, brass, or
aluminum.
"Resale dealer" means any individual, firm, corporation,
or partnership engaged in the business of operating a business
for profit, which buys, sells, possesses on consignment for

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

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

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

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

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

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

enforcement official indicating that property in the
possession of the resale dealer and subject to a hold order is
needed for the purpose of furthering a criminal investigation
and prosecution, the resale dealer shall release the property
to the custody of the law enforcement official for such purpose
and the officer shall provide a written acknowledgment that the
property has been released to the official. The release of the
property to the custody of the appropriate law enforcement
official shall not be considered a waiver or release of the
resale dealer's property rights or interest in the property.
Upon completion of the criminal investigation, the property
shall be returned to the resale dealer; except that, if the
appropriate law enforcement official has not completed the
criminal investigation within 120 days after the property's
release, the official shall immediately return the property to
the resale dealer or obtain and furnish to the resale dealer a
warrant for the continued custody of the property.
The resale dealer shall not release or dispose of the
property except pursuant to a court order or the expiration of
the holding period of the hold order, including all extensions.
In cases where criminal charges have been filed and the
property may be needed as evidence, the prosecuting attorney
shall notify the resale dealer in writing. The notice shall
contain the case number, the style of the case, and a
description of the property. The resale dealer shall hold such
property until receiving notice of the disposition of the case

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

guilty of a Class A misdemeanor for a third offense; and (iii)
guilty of a Class 4 felony for a fourth or subsequent offense.
Section 55. Local regulation. Nothing in this Act shall be
construed to impair the power of a county or municipality,
including home rule units, to enforce the provisions of this
Act or to license, regulate, suppress, or prohibit resale
dealers, provided that any such actions are no less restrictive
than required by this Act. This Section is a limitation under
subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by home rule units of
the powers and functions exercised by the State. Such local
licensing regulation may include the requirement to install,
operate, and maintain a video camera surveillance system
capable of recording clear and unobstructed photographic
representations of the resale dealer's customers. Such
videotape recording may be subject to inspection by the
appropriate law enforcement official.