2014-12-01 - Ordinance 2014-078 - CREATING CHAPTER 5.46, PAWNBROKERS AND RESALE DEALERS 11/19/2014
ORDINANCE NO.2014-78
AN ORDINANCE CREATING
CHAPTER 5.46 PAWNBROKERS AND RESALE DEALERS
OF THE VILLAGE OF BUFFALO GROVE MUNICIPAL CODE
WHEREAS, the Village of Buffalo Grove is a Home Rule Unit pursuant to the Illinois
Constitution of 1970; and
WHEREAS, a home rule unit may exercise any power and perform any function
pertaining to its government and affairs for the protection of the public health, safety,morals and
welfare; and
WHEREAS, stolen goods are often sold for cash at Pawn Shops and Resale Stores; and
WHEREAS, the Village's Police Department has reported that identifying and retrieving
stolen goods from such businesses and identifying the individuals who sold such stolen goods is
a difficult and labor-intensive task; and
WHEREAS, the goals of deterrence of crime, apprehension of criminals, retrieval or
stolen goods for return to the lawful owners, and maintenance of public order are served by an
effective and efficient system of recording and reporting such sales and delaying the resale or
destruction of such purchased items; and
WHEREAS, the Village of Buffalo Grove has a significant governmental interest in
preventing and deterring the sale,resale or destructions of stolen goods, and;
WHEREAS, the Village of Buffalo Grove believes it is in the best interests of the health,
safety and welfare of the general public to regulate and license Pawnbrokers and Resale Dealers.
WHEREAS, the Village of Buffalo Grove desires to implement a moratorium on
enforcing the license requirements under newly created Chapter 5.46 until July 1, 2015, and
therefore, all initial licenses issued under the Chapter 5.46 shall be effective from July 1, 2015 or
from the date of issuance, whichever is later, and shall terminate on December 31, 2015, and the
corresponding fee for each such initial license shall be prorated accordingly.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT and BOARD OF
TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, LAKE and COOK COUNTIES,
ILLINOIS,pursuant to its Home Rule authority, as follows:
Section 1. The foregoing recitals are made a part hereof as if fully restated hereby.
Section 2. Chapter 5.46 of the Village of Buffalo Grove Municipal Code is hereby
created to read as follows:
Chapter 5.46 PAWNBROKERS AND RESALE DEALERS
5.46.010 DEFINITIONS.
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For the purpose of this Chapter, the following definitions shall apply unless the context
clearly indicates or requires a different meaning.
A. "License"means a Village of Buffalo Grove Pawnbroker or Resale Dealer's License.
S. "Licensee"means an individual or business who has received a valid License.
C. "Pawnbroker" means every individual or business entity which lends money on the
deposit or pledge of physically delivered Second Hand Articles or who deals in the
purchase of such Second Hand Articles on the condition of selling the property back
again at a stipulated price. The business of a pawnbroker does not include the lending of
money on deposit or pledge of title to property or property in which the ownership of
such is subject to a legal dispute, securities, printed evidence of indebtedness or printed
evidence of ownership of the personal property.
D. "Pawn Shop"means the location where a Pawnbroker conducts business.
E. "Resale Dealers" means every individual or business entity engaged in the business of
purchase, sale, consignment or barter of Second Hand Articles, not otherwise exempted
from this Chapter.
F. "Resale Shop"means the location where a Resale Dealer conducts business.
G. "Second Hand Articles" mean any and all goods previously owned by a consumer that is
not a dealer possessing a federal employee identification number, that are not expressly
exempted in this Chapter,which shall include but not be limited to:
1. antiques,
2. artwork,
3. bicycles, scooters, and skateboards,
4. clothing,
5. collectibles and memorabilia,
6. electronics,
7. furniture,
8. household goods and appliances,
9. jewelry,
10.musical instruments,
1 l.recyclable materials,
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12. scrap metals,
13. sports equipment,
14. tools,
15. valuable and/or precious metals and stones.
5.46.020 EXEMPTIONS
This Chapter shall not apply to:
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 by State of Illinois licensed automobile dealers, used parts dealers, or
automotive parts recyclers.
4. Consumer shows or exhibitions of�collectibles.
5. Providers of commercial mobile services as defined in 47 U.S.C. 332(d) or their
authorized dealers.
6. Sa1es or purchase of Second Hand Articles by an individual conducted through a website,
not oumed or operated by the seller or purchaser.
7. Sales or purchase of tickets for sporting events, recreational events, or concerts, which is
otherwise allowed by law.
8. Individuals or business entities at a physical location within the Village that are
exclusively engaged in the sale of jewelry but are not exclusively engaged in the sale of
Second Hand Articles.
5.46.030 LICENSE REQUIRED
A. No individual or business entity shall engage in the business of a Pawnbroker or Resale
Dealer within the Village without obtaining a License in addition to any other federal,
state, and local requirements.
B. No License issued under the provisions of this Chapter shall be transferable.
C. No License shall be issued for a Pawnbroker until the applicant obtains and provides a
valid State of Illinois Pawnbroker's License as required by the Illinois Pawnbroker's Act
(205 ILCS 510/0.01 et. seq.) and the Pawnbrokers Administrative Rules (38
I11.Adm.Code 360.10 et.seq.).
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5.46.040 APPLICATION; APPLICATION FEE.
A. Application for a License shall be made in writing to the Village Clerk on a form
provided by the Village for that purpose and must state thereon the following
information:
1. The name of applicant.
2. Type of business entity the applicant is.
3. The permanent business address of the applicant.
4. The permanent business telephone number of the applicant.
5. In the case of a firm, limited liability company, or corporation, the names, permanent
residence addresses, and permanent residence telephone numbers of the partners or
officers and all shareholders owning more than five percent (5%) of the outstanding
shares of stock. If a listed shareholder is a firm, limited liability company, or
corporation, the above information shall be provided for that entity and other such
entities in the line of ownership.
6. The name of the Pawn Shop or Resale Shop under which the applicant will operate.
7. The location of the property for which the License is requested.
(A)All applicable deeds, leases or other documentation showing the Applicants
lawful ability to use the location property as a Pawn Shop or Resale Shop.
8. Whether the applicant, partners, officers, or listed shareholders have been convicted
of any criminal offense (excluding non jailable traffic violations) in any jurisdiction
and, if so, a list of such convictions with the date and prosecuting jurisdiction. All
applicants, including those shareholders owning more than five (5%) of the
outstanding shares of stock of an application corporation or limited liability company
individuals shall be required to submit to and pass a background check performed by
the Village or its designee(s).
9. The social security number/federal employer identification number ("FEIN") of the
applicant.
10. The principal contact person of the applicant.
11. The list, including name and location, of any other Pawn Shops or Resale Shops
owned or operated by the applicant.
B. Each application for a License from an applicant who at the time of application does not
hold a valid License shall be accompanied by an applicant fee of $250.00. This
application fee shall be in addition to all other fees set forth in this Chapter and shall not
be refunded in the event that the application for a License is withdrawn or denied.
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C. A separate application and License for each separate location is required.
5.46.050 DURATION OF LICENSE.
All Licenses granted under this Chapter shall be effective from January 1 or from the date of
issuance,whichever is later, and shall ternunate on December 31.
5.46.060 LICENSE FEE.
The License fee for a Resale Shop shall be $1,500.00 which must be paid in full prior to any
valid License being issued.
The License fee for a Pawn Shop shall be $2,000.00 which must be paid in full prior to any valid
License being issued.
5.46.070 SIGNAGE
A. Every Pawnbroker shall at all times have and keep Section 2 of the Illinois Pawnbrokers
Act (205 ILCS 510/0.01 et. seq.) printed in the English language and framed and posted
in a prominent and conspicuous position at the business location.
B. Every Licensee shall at all times have and keep the License framed and posted in a
prominent and conspicuous position at the business location.
5.46.080 ADVANCEMENTS AND LOANS
A. All advancements and loans made by any Pawnbroker shall be done in the manner
prescribed by the Illinois Pawnbroker'.s Act (205 ILCS 510/0.01 et. seq.) and the
Pawnbrokers Administrative Rules (38 I11.Adm.Code 360.10 et. seq.).
B. Resale Dealers shall not make any advancements and loans, except those dealers that are
licensed as Pawnbrokers with State of Illinois.
5.46.090 MAINTENANCE OF RECORDS.
A. Pawnbrokers Records
Every Pawnbroker shall keep a book in which there shall be typed or printed in ink,
which may include a computer printout,in the English language, containing the following
information for each and every loan or taking of a pledge made by the licensee:
1. an accurate account and description of the goods, articles or things pawned or pledged
including, the serial number and/or identification number of the items received which
bear such number(s);
2. the amount of money,value or thing loaned thereon;
3. the date and time of pledging the same;
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4. the rate of interest to be paid on the loan;
5. name and residence of the person pawning or pledging the said goods, article or
thing;
B. Licensee Records
1. Except for items purchased from dealers possessing a federal employee identification
number who have provided a receipt to the Licensee, every Licensee shall also record
in its book(s), an accurate account and description in the same manner described for
Pawnbroker's Records above, of all Second Hand Articles purchased or received for
the purpose of resale by the Licensee, not in the course of a pledge or loan. No entry
in such book shall be erased,mutilated or changed.
2. Every Licensee shall require one form of photographic identification by each person
offering for sale, pledging or pawning any Second Hand Articles to the Licensee. The
form of identification must be photographic identification issued by a federal or state
governmental entity. Forms of identification must contain a photograph of the
individual and must be: a state driver's license, a state identification card, a passport,
or a military identification card. Required forms of identification shall be copied and
maintained for all transactions completed by Licensees for a period of three years
following each transaction.
3. If the person offering for sale, pledging or pawning any Second Hand Articles to the
Licensee does not have a photographic identification card issued by a federal or state
governmental entity, the Licensee shall photograph the person and require two forms
of other identification, one of which shall contain both the person's name and
residential address. The. photograph shall be in color. On the reverse side of the
photograph the Licensee shall record the person's name, residence address, date of
birth, social security number, gender, height and weight. If the person has no social
security number,the Licensee shall record this fact.
4. Whenever any Pawnbroker shall buy any article of pawned or pledged Second Hand
Articles, the same shall be recorded in the same manner as a pledge and the record
shall show all information required for a pawn or pledge.
5.46.100 REPORT TO POLICE.
A. It shall be the duty of every Licensee to make out and deliver to a designated email
account or facsimile designated by the Chief of Police, before the hour of 12:00 p.m.
noon, a legible and exact copy from the books required by state law and this Chapter of
all Second Hand Articles received on deposit or purchased during the preceding day.
B. It shall be the duty of every Licensee to immediately report to the Chief of Police, or his
designee, any Second Hand Article sought to be sold, deposited, pawned or pledged with
the Licensee, if it is reasonably believed that the said Second Hand Article was stolen or
lost and found by the person attempting to sell, deposit, pawn or pledge the said Second
Hand Article.
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5.46.110 INSPECTION OF RECORDS.
The book, the photographs required under this Chapter and every Second Hand Article sold,
pawned or pledged shall at all times during the Licensee's business hours be open to the
inspection of any member of the Village's Police Department or any other authorized law
enforcement agency.
5.46.120 MEMORANDUM TO PLEDGER(PAWNBROKER).
Every Pawnbroker shall, at the time of each loan, deliver to the person pawning or pledging any
goods, article or thing, a memorandum or note signed by Pawnbroker containing an accurate
account and description, in the English language, of all Second Hand Articles pawned or pledge,
the amount of money, value of things loaned thereon, the time of pledging the same, the rate of
interest to be paid on the loan, the name and residence of the person making the pawn or pledge,
and the amount of any fees.
5.46.130 REMOVAL OF IDENTIFYING MARKS PROHIBITED.
No Licensee shall remove, alter or obliterate any manufacturer's make, model, or serial number,
personal identification number, or identifying marks engraved or etched upon a Second Hand
Article that was purchased or received in pledge until such time that the Licensee becomes the
legal owner of the property. In addition, an item shall not be accepted for pledge or purchase
where the manufacturer's make, model, or serial number, personal identification number or
identifying marks engraved or etched upon a Second Hand Article has been removed, altered or
obliterated.
5.46.140 SALES AND REDEMPTIONS REGULATED.
No Second Hand Article received for sale or on deposit or pledge by any Licensee shall be sold
or permitted to be redeemed or removed from the place of business of the Licensee for a period
of 48 hours after the delivery of the copy and statement required by the State of Illinois
Pawnbroker's License and this Chapter.
If the person fails to repay the loan during the period specified on the pawn ticket to a
Pawnbroker, the Pawnbroker shall automatically extend a grace period of 30 days from the
default date on the loan during which the Pawnbroker shall not dispose of or sell the Second
Hand Article. The parties may agree to extend or renew a loan upon terms agreed upon by the
parties.
5.46.150 PROHIBITED PLEDGES OR PURCHASES.
A. No Licensee shall purchase or take, nor shall any Pawnbroker take or receive in pawn or
pledge for any advancement or loan, any Second Hand Article from a minor, or the
ownership of which is in, or which is claimed by, any minor, or which may be in the
possession or under the control of any minor.
B. No Licensee shall purchase or take, nor shall any Pawnbroker take or receive any Second
Hand Article in pawn or buy from any person appearing to be intoxicated or under the
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influence of any narcotic, nor from any person known to be a thief or to have been
convicted of theft or burglary, and when any person is found to be in possession of stolen
Second Hand Article which has been presented for pledge, pawn or sale. The stolen
Second Hand Article that has been obtained by a Licensee shall return it to the owner
without the payment of the amount advanced �by the Licensee thereon or any costs or
charges of any kind which the Licensee may have placed upon the same.
5.46.160 HOLD ORDER.
A. For the purposes of this Section, "hold order" means a written legal instrument issued to a
Licensee by any member of the Village of Buffalo Grove Police ("Department"),
ordering the Licensee to retain physical possession of a Second Hand Article in the
possession of the Licensee or a Second Hand Article purchased by and in the possession
of the Licensee and not to return, sell, or otherwise dispose of such Second Hand Article
when such Second Hand Article is believed to be lost, stolen or is otherwise necessary to
enforce any law.
B. Upon written notice from the Department indicating that Second Hand Article in the
possession of a Licensee and subject to a hold order is needed for the purpose of
furthering a criminal investigation and prosecution, the Licensee shall release the Second
Hand Article subject to the hold order to the custody of the Department for such purpose
and the Department shall provide a written acknowledgment that the Second Hand
Article has been released to the Deparhnent. The release of the Second Hand Article to
the custody of the Department shall not be considered a waiver or release of the
Licensee's property rights or interest in the Second Hand Article. Upon completion of the
criminal investigation, the property shall be returned to the Licensee who consented to its
release; except that, if the Department has not completed the criminal investigation
within 120 days after its release, the Department shall immediately return the property to
the Licensee or obtain and furnish to the Licensee a warrant for the continued custody of
the property, unless the Licensee otherwise agrees to the extended possession of the
Second Hand Article.
C. The Licensee shall not release or dispose of the Second Hand Article except pursuant to a
court order or the expiration of the holding period of the hold order, including all
extensions.
D. In cases where criminal charges have been filed and the Second Hand Article may be
needed as evidence, the Department or prosecuting attorney shall notify the Licensee in
writing. The notice shall contain the case number, the style of the case, and a description
of the Second Hand Article. The Licensee shall hold such Second Hand Article until
receiving notice of the disposition of the case from the Department or prosecuting
attorney. The Department or prosecuting attorney shall notify the Licensee and claimant
in writing within 15 days after the disposition of the criminal case.
5.46.170 VIOLATION; PENALTIES.
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addition to the provisions of this chapter, every Pawnbroker shall operate in a manner
prescribed by this Chapter and by the Illinois Pawnbroker's Act (205 ILCS 51010.01 et.
seq.) and the Pawnbrokers Administrative Rules (38 III.Adm.Code 360.10 et. seq.).
B. Every act or omission constituting a violation of any provision of this Chapter by any
officer, director, manager, agent or employee of any Licensee shall be deemed and held
to be the act of such employer or Licensee and the employer or Licensee shall be
punishable in the same manner as if such act or omission had been committed or omitted
by him or her personally.
C. Any Licensee violating any of the provisions of this Chapter shall be deemed guilty of a
business offense and upon conviction thereof shall be fined in an amount not exceeding
seven hundred fifty dollars ($750.00). Each day that such violation is committed or
permitted to continue shall constitute a separate offense and shall be punishable as such
hereunder.
D. In addition to the imposition of • fine as established in Subsection C abov-
1 1 to be found guilty of business offense for a violation of this Chapter or fou
guilty of a misdemeanor for violation of the Illinois Pawnbroker's Act (205 IL
51010.01 et. seq.) and the Pawnbrokers Administrative Rules (38 III.Adm.Code 360.10
seq.) may also result in the suspension, cancellation or revocation of a License. I
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PASSED: December 1, 2014
APPROVED: December 1. 2014
APPRO
1XVISW
Jan S�Irablan, Village Clerk
an, `Village President