Bill Text: IL SB0066 | 2015-2016 | 99th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Creates the Smart Phone Theft Protection Act. Requires wireless communications device dealers to maintain a written record of every purchase or acquisition of a used wireless communications device for resale. Sets forth information that must be included in the written record. Provides that a law enforcement agency that has probable cause to believe a device has been stolen or is evidence of a crime may place an investigative hold on or confiscate the device. Requires the installation of video security cameras at a dealer's physical location. Provides that a violation of the Act is a Class B misdemeanor. Provides exemption from the application of the Act, including dealers who acquire devices for trade-in, or repair and refurbishment programs.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2015-08-10 - Public Act . . . . . . . . . 99-0327 [SB0066 Detail]
Download: Illinois-2015-SB0066-Engrossed.html
Bill Title: Creates the Smart Phone Theft Protection Act. Requires wireless communications device dealers to maintain a written record of every purchase or acquisition of a used wireless communications device for resale. Sets forth information that must be included in the written record. Provides that a law enforcement agency that has probable cause to believe a device has been stolen or is evidence of a crime may place an investigative hold on or confiscate the device. Requires the installation of video security cameras at a dealer's physical location. Provides that a violation of the Act is a Class B misdemeanor. Provides exemption from the application of the Act, including dealers who acquire devices for trade-in, or repair and refurbishment programs.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2015-08-10 - Public Act . . . . . . . . . 99-0327 [SB0066 Detail]
Download: Illinois-2015-SB0066-Engrossed.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Smart | ||||||
5 | Phone Theft Protection Act.
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6 | Section 5. Definitions. As used in this Act: | ||||||
7 | "Appropriate law enforcement official" means the sheriff | ||||||
8 | of the county where a dealer is located or, if the dealer is | ||||||
9 | located within a municipality, the police chief of the | ||||||
10 | municipality, provided, however, that the sheriff or police | ||||||
11 | chief may designate an appropriate official of the county or | ||||||
12 | municipality as applicable. | ||||||
13 | "Internet marketplace" or "online platform" means a | ||||||
14 | digitally accessible platform that facilitates commercial | ||||||
15 | transactions between buyers and community-rated sellers where | ||||||
16 | the operator or the platform does not take possession of, or | ||||||
17 | title to, the goods bought or sold. | ||||||
18 | "Law enforcement agency" means a duly authorized local, | ||||||
19 | county, State, or federal law enforcement agency. | ||||||
20 | "Repair and refurbishment program" means a program, | ||||||
21 | offered by a wireless telephone service provider, | ||||||
22 | manufacturer, or retailer who is not primarily engaged in | ||||||
23 | purchasing personal property of any type from a person who is |
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1 | not a wholesaler, through which used or previously owned | ||||||
2 | wireless communications devices are restored to good working | ||||||
3 | order. | ||||||
4 | "Trade-in program" means a program offered by a wireless | ||||||
5 | telephone service provider, manufacturer, or retailer who is | ||||||
6 | not primarily engaged in purchasing personal property of any | ||||||
7 | type from a person who is not a wholesaler, pursuant to which | ||||||
8 | used wireless communications devices are accepted from | ||||||
9 | customers for trade-in when purchasing a new device or in | ||||||
10 | exchange for a noncash credit usable only for the purchase of | ||||||
11 | goods or services from the wireless telephone service provider, | ||||||
12 | manufacturer, or retailer or a rebate from a manufacturer on | ||||||
13 | the purchase of one of the manufacturer's wireless | ||||||
14 | communications devices. | ||||||
15 | "Wireless communications device" means a hand-held | ||||||
16 | cellular phone or other hand-held mobile
device that (1) is | ||||||
17 | built on a smart phone mobile operating system; (2) possesses | ||||||
18 | advanced computing capability; (3) enables network | ||||||
19 | connectivity; (4) enables the user to engage in voice | ||||||
20 | communications via commercial mobile radio service, as defined | ||||||
21 | in 47 CFR 20.3; and (5) is capable of operating on a long-term | ||||||
22 | evolution network and successor wireless data network | ||||||
23 | communication standards. Capabilities a wireless | ||||||
24 | communications device may possess include, but are not limited | ||||||
25 | to, built-in applications, Internet access, digital voice | ||||||
26 | service, text messaging, email, and web browsing. "Wireless |
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1 | communications device" does not include a phone commonly | ||||||
2 | referred to as a feature or messaging phone, a laptop computer, | ||||||
3 | a tablet device, or a device that has only electronic reading | ||||||
4 | capability. | ||||||
5 | "Wireless communications device dealer" or "dealer" means | ||||||
6 | an individual, partnership, limited partnership, limited | ||||||
7 | liability company, corporation, or other entity engaged in the | ||||||
8 | business of buying or selling used wireless communications | ||||||
9 | devices. | ||||||
10 | "Wireless communications device manufacturer" or | ||||||
11 | "manufacturer" means an individual, partnership, limited | ||||||
12 | partnership, limited liability company, corporation, or other | ||||||
13 | entity engaged in the business of manufacturing wireless | ||||||
14 | communications devices.
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15 | "Wireless telephone service provider" means a provider of | ||||||
16 | wireless telephone services and its authorized dealers, | ||||||
17 | distributors, and agents.
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18 | Section 10. Wireless communications devices; acquisition | ||||||
19 | for resale; purchase or acquisition record required. | ||||||
20 | (a) Every wireless communications device dealer, including | ||||||
21 | an agent, employee, or representative of the dealer, but not an | ||||||
22 | internet marketplace, shall keep a written record at the time | ||||||
23 | of each purchase or acquisition of a used wireless | ||||||
24 | communications device for resale. The record must include the | ||||||
25 | following: |
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1 | (1) an accurate account or description of the wireless | ||||||
2 | communications device purchased or acquired; | ||||||
3 | (2) the date, time, and place or the online platform | ||||||
4 | the wireless communications device was purchased or | ||||||
5 | acquired; | ||||||
6 | (3) the name and address of the person selling or | ||||||
7 | delivering the wireless communications device; | ||||||
8 | (4) the number of the check or electronic transfer used | ||||||
9 | to purchase the wireless communications device; | ||||||
10 | (5) the number from an identification document issued | ||||||
11 | by any state, federal, or foreign government if the | ||||||
12 | document includes the person's photograph, full name, | ||||||
13 | birth date, and signature; and | ||||||
14 | (6) a statement signed by the seller, under penalty of | ||||||
15 | perjury, attesting that the wireless communications device | ||||||
16 | is not stolen and is free of any liens or encumbrances and | ||||||
17 | the seller has the right to sell it. | ||||||
18 | (a-5) A wireless communications device dealer covered by | ||||||
19 | this Section may maintain the records required by subsection | ||||||
20 | (a) of this Section in an electronic form approved by the | ||||||
21 | appropriate law enforcement official. | ||||||
22 | (b) Records required to be maintained under this Section | ||||||
23 | shall be retained by the wireless communications device dealer | ||||||
24 | for a period of 3 years. | ||||||
25 | (c) The record, as well as the wireless communications | ||||||
26 | device purchased or received, shall at all reasonable times be |
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1 | available for inspection by any law enforcement agency. | ||||||
2 | (d) No record is required for wireless communications | ||||||
3 | devices purchased from merchants, manufacturers, or wholesale | ||||||
4 | dealers having an established place of business, but a bill of | ||||||
5 | sale or other evidence of open or legitimate purchase of the | ||||||
6 | wireless communications device shall be obtained and kept by | ||||||
7 | the wireless communications device dealer, which must be shown | ||||||
8 | upon demand to any law enforcement agency. | ||||||
9 | (e) Except as otherwise provided in this Section, a | ||||||
10 | wireless communications device dealer or the dealer's agent, | ||||||
11 | employee, or representative may not disclose personal | ||||||
12 | information received pursuant to subsection (a) concerning a | ||||||
13 | customer without the customer's consent unless the disclosure | ||||||
14 | is made in response to a request from a law enforcement agency. | ||||||
15 | A wireless communications device dealer must implement | ||||||
16 | reasonable safeguards to protect the security of the personal | ||||||
17 | information and prevent unauthorized access to or disclosure of | ||||||
18 | the information. For purposes of this Section, "personal | ||||||
19 | information" is any individually identifiable information | ||||||
20 | gathered in connection with a record under subsection (a).
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21 | Section 15. Records; prohibitions. A wireless | ||||||
22 | communications device dealer, including an agent, employee, or | ||||||
23 | representative of the dealer, shall not: | ||||||
24 | (1) make any false entry in the records of transactions | ||||||
25 | involving a used wireless communications device; |
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1 | (2) falsify, obliterate, destroy, or remove from the | ||||||
2 | place of business the records, books, or accounts relating | ||||||
3 | to used wireless communications device transactions;
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4 | (3) refuse to allow the appropriate law enforcement | ||||||
5 | agency to inspect records or any used wireless | ||||||
6 | communications device in the dealer's possession during | ||||||
7 | the ordinary hours of business or other times acceptable to | ||||||
8 | both parties; | ||||||
9 | (4) fail to maintain a record of each used wireless | ||||||
10 | communications device transaction for 3 years; or | ||||||
11 | (5) purchase a used wireless communications device | ||||||
12 | from a person under the age of 18 years.
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13 | Section 20. Payment for used wireless communications | ||||||
14 | devices. A wireless communications device dealer shall pay for | ||||||
15 | purchases of all used wireless communications devices by check | ||||||
16 | mailed to a specific address or by electronic transfer.
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17 | Section 25. Investigative holds; confiscation of property.
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18 | (a) Whenever a law enforcement official from any agency has | ||||||
19 | probable cause to believe that a wireless communications device | ||||||
20 | in the possession of a wireless communications device dealer is | ||||||
21 | stolen or is evidence of a crime and notifies the dealer not to | ||||||
22 | sell the item, the dealer shall not process or sell the item or | ||||||
23 | remove or allow its removal from the premises. This | ||||||
24 | investigative hold must be confirmed in writing by the |
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1 | originating agency within 72 hours and remain in effect for 120 | ||||||
2 | days from the date of initial notification, until the | ||||||
3 | investigative hold is canceled or renewed, or until a law | ||||||
4 | enforcement notification to confiscate or directive to release | ||||||
5 | is issued, whichever comes first. | ||||||
6 | (b) If a wireless communications device is identified as | ||||||
7 | stolen or as evidence in a criminal case, a law enforcement | ||||||
8 | official may: | ||||||
9 | (1) physically confiscate and remove the wireless | ||||||
10 | communications device from the wireless communications | ||||||
11 | device dealer pursuant to a written notification; | ||||||
12 | (2) place the wireless communications device on hold or | ||||||
13 | extend the hold under subsection (a) and leave the device | ||||||
14 | at the premises; or | ||||||
15 | (3) direct its release to a registered owner or owner's | ||||||
16 | agent. | ||||||
17 | (c) When an item is confiscated, the law enforcement agency | ||||||
18 | doing so shall provide identification upon request of the | ||||||
19 | wireless communications device dealer, and shall provide the | ||||||
20 | name and telephone number of the confiscating agency and | ||||||
21 | investigator and the case number related to the confiscation. | ||||||
22 | (d) When an investigative hold or notification to | ||||||
23 | confiscate is no longer necessary, the law enforcement official | ||||||
24 | or designee shall notify the wireless communications device | ||||||
25 | dealer. | ||||||
26 | (e) A wireless communications device dealer may sell or |
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1 | otherwise dispose of the wireless communications device if:
(1) | ||||||
2 | a notification to confiscate is not issued during the | ||||||
3 | investigative hold; or
(2) a law enforcement official does not | ||||||
4 | physically remove the wireless communications device from the | ||||||
5 | premises within 15 calendar days from issuance of a | ||||||
6 | notification to confiscate. | ||||||
7 | (f) If a wireless communications device dealer is required | ||||||
8 | to hold the wireless communications device at the direction of | ||||||
9 | law enforcement for purposes of investigation or prosecution, | ||||||
10 | or if the device is seized by law enforcement, the wireless | ||||||
11 | communications device dealer and any other victim is entitled | ||||||
12 | to seek restitution, including any out-of-pocket expenses for | ||||||
13 | storage and lost profit, in any criminal case that may arise | ||||||
14 | from the investigation against the individual who sold the | ||||||
15 | wireless communications device to the wireless communications | ||||||
16 | device dealer.
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17 | Section 30. Video security cameras required.
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18 | (a) Each wireless communications device dealer shall | ||||||
19 | install and maintain at each physical location video | ||||||
20 | surveillance cameras, still digital cameras, or similar | ||||||
21 | devices positioned to record or photograph a frontal view | ||||||
22 | showing a readily identifiable image of the face of each seller | ||||||
23 | of a wireless communications device who enters the physical | ||||||
24 | location. | ||||||
25 | (b) The video camera or still digital camera must be kept |
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1 | in operating condition and must be shown upon request to a | ||||||
2 | properly identified law enforcement officer for inspection. | ||||||
3 | The camera must record and display the accurate date and time. | ||||||
4 | The video camera or still digital camera must be turned on at | ||||||
5 | all times when the physical location is open for business and | ||||||
6 | at any other time when wireless communications devices are | ||||||
7 | purchased or sold. | ||||||
8 | (c) Recordings and images required by subsection (a) shall | ||||||
9 | be retained by the wireless communications device dealer for a | ||||||
10 | minimum period of 120 days and shall at all reasonable times be | ||||||
11 | open to the inspection of any properly identified law | ||||||
12 | enforcement officer.
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13 | Section 35. Penalty. A wireless communications device | ||||||
14 | dealer, or the agent, employee, or representative of the | ||||||
15 | wireless communications device dealer, who intentionally | ||||||
16 | violates a provision of this Act is guilty of a business | ||||||
17 | offense and shall be fined more than $500 but not more than | ||||||
18 | $1,000.
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19 | Section 40. Application of Act.
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20 | (a) This Act does not apply with respect to a wireless | ||||||
21 | communications device returned pursuant to the return policies | ||||||
22 | of the wireless communications device dealer, wireless | ||||||
23 | telephone service provider, manufacturer, or retailer from | ||||||
24 | whom it was originally purchased. |
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1 | (b) This Act does not apply to: | ||||||
2 | (1) a wireless telephone service provider or retailer | ||||||
3 | who has 25 or more locations in this State who acquires | ||||||
4 | wireless communications devices as part of a trade-in or a | ||||||
5 | repair and refurbishment program; | ||||||
6 | (2) a manufacturer who acquires wireless | ||||||
7 | communications devices as part of a trade-in program; or | ||||||
8 | (3) an entity that complies with the requirements of | ||||||
9 | the Resale Dealers Act and purchases used wireless | ||||||
10 | communications devices for the purpose of recycling and | ||||||
11 | refurbishment. | ||||||
12 | (c) This Act does not apply to wireless communications | ||||||
13 | device dealers regulated under the Pawnbroker Regulation Act. | ||||||
14 | (d) This Act does not alter or affect a dealer's separate | ||||||
15 | obligations under the Resale Dealers Act, if applicable, except | ||||||
16 | that any violation under this Act, by a person covered by the | ||||||
17 | Resale Dealers Act, which has the same or similar elements as a | ||||||
18 | violation under the Resale Dealers Act shall be punished as | ||||||
19 | provided under the Resale Dealers Act.
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