SB0066 EngrossedLRB099 04020 HAF 24038 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 1. Short title. This Act may be cited as the Smart
5Phone Theft Protection Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Appropriate law enforcement official" means the sheriff
8of the county where a dealer is located or, if the dealer is
9located within a municipality, the police chief of the
10municipality, provided, however, that the sheriff or police
11chief may designate an appropriate official of the county or
12municipality as applicable.
13    "Internet marketplace" or "online platform" means a
14digitally accessible platform that facilitates commercial
15transactions between buyers and community-rated sellers where
16the operator or the platform does not take possession of, or
17title to, the goods bought or sold.
18    "Law enforcement agency" means a duly authorized local,
19county, State, or federal law enforcement agency.
20    "Repair and refurbishment program" means a program,
21offered by a wireless telephone service provider,
22manufacturer, or retailer who is not primarily engaged in
23purchasing personal property of any type from a person who is

 

 

SB0066 Engrossed- 2 -LRB099 04020 HAF 24038 b

1not a wholesaler, through which used or previously owned
2wireless communications devices are restored to good working
3order.
4    "Trade-in program" means a program offered by a wireless
5telephone service provider, manufacturer, or retailer who is
6not primarily engaged in purchasing personal property of any
7type from a person who is not a wholesaler, pursuant to which
8used wireless communications devices are accepted from
9customers for trade-in when purchasing a new device or in
10exchange for a noncash credit usable only for the purchase of
11goods or services from the wireless telephone service provider,
12manufacturer, or retailer or a rebate from a manufacturer on
13the purchase of one of the manufacturer's wireless
14communications devices.
15    "Wireless communications device" means a hand-held
16cellular phone or other hand-held mobile device that (1) is
17built on a smart phone mobile operating system; (2) possesses
18advanced computing capability; (3) enables network
19connectivity; (4) enables the user to engage in voice
20communications via commercial mobile radio service, as defined
21in 47 CFR 20.3; and (5) is capable of operating on a long-term
22evolution network and successor wireless data network
23communication standards. Capabilities a wireless
24communications device may possess include, but are not limited
25to, built-in applications, Internet access, digital voice
26service, text messaging, email, and web browsing. "Wireless

 

 

SB0066 Engrossed- 3 -LRB099 04020 HAF 24038 b

1communications device" does not include a phone commonly
2referred to as a feature or messaging phone, a laptop computer,
3a tablet device, or a device that has only electronic reading
4capability.
5    "Wireless communications device dealer" or "dealer" means
6an individual, partnership, limited partnership, limited
7liability company, corporation, or other entity engaged in the
8business of buying or selling used wireless communications
9devices.
10    "Wireless communications device manufacturer" or
11"manufacturer" means an individual, partnership, limited
12partnership, limited liability company, corporation, or other
13entity engaged in the business of manufacturing wireless
14communications devices.
15    "Wireless telephone service provider" means a provider of
16wireless telephone services and its authorized dealers,
17distributors, and agents.
 
18    Section 10. Wireless communications devices; acquisition
19for resale; purchase or acquisition record required.
20    (a) Every wireless communications device dealer, including
21an agent, employee, or representative of the dealer, but not an
22internet marketplace, shall keep a written record at the time
23of each purchase or acquisition of a used wireless
24communications device for resale. The record must include the
25following:

 

 

SB0066 Engrossed- 4 -LRB099 04020 HAF 24038 b

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
19this Section may maintain the records required by subsection
20(a) of this Section in an electronic form approved by the
21appropriate law enforcement official.
22    (b) Records required to be maintained under this Section
23shall be retained by the wireless communications device dealer
24for a period of 3 years.
25    (c) The record, as well as the wireless communications
26device purchased or received, shall at all reasonable times be

 

 

SB0066 Engrossed- 5 -LRB099 04020 HAF 24038 b

1available for inspection by any law enforcement agency.
2    (d) No record is required for wireless communications
3devices purchased from merchants, manufacturers, or wholesale
4dealers having an established place of business, but a bill of
5sale or other evidence of open or legitimate purchase of the
6wireless communications device shall be obtained and kept by
7the wireless communications device dealer, which must be shown
8upon demand to any law enforcement agency.
9    (e) Except as otherwise provided in this Section, a
10wireless communications device dealer or the dealer's agent,
11employee, or representative may not disclose personal
12information received pursuant to subsection (a) concerning a
13customer without the customer's consent unless the disclosure
14is made in response to a request from a law enforcement agency.
15A wireless communications device dealer must implement
16reasonable safeguards to protect the security of the personal
17information and prevent unauthorized access to or disclosure of
18the information. For purposes of this Section, "personal
19information" is any individually identifiable information
20gathered in connection with a record under subsection (a).
 
21    Section 15. Records; prohibitions. A wireless
22communications device dealer, including an agent, employee, or
23representative of the dealer, shall not:
24        (1) make any false entry in the records of transactions
25    involving a used wireless communications device;

 

 

SB0066 Engrossed- 6 -LRB099 04020 HAF 24038 b

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;
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.
 
13    Section 20. Payment for used wireless communications
14devices. A wireless communications device dealer shall pay for
15purchases of all used wireless communications devices by check
16mailed to a specific address or by electronic transfer.
 
17    Section 25. Investigative holds; confiscation of property.
18    (a) Whenever a law enforcement official from any agency has
19probable cause to believe that a wireless communications device
20in the possession of a wireless communications device dealer is
21stolen or is evidence of a crime and notifies the dealer not to
22sell the item, the dealer shall not process or sell the item or
23remove or allow its removal from the premises. This
24investigative hold must be confirmed in writing by the

 

 

SB0066 Engrossed- 7 -LRB099 04020 HAF 24038 b

1originating agency within 72 hours and remain in effect for 120
2days from the date of initial notification, until the
3investigative hold is canceled or renewed, or until a law
4enforcement notification to confiscate or directive to release
5is issued, whichever comes first.
6    (b) If a wireless communications device is identified as
7stolen or as evidence in a criminal case, a law enforcement
8official 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
18doing so shall provide identification upon request of the
19wireless communications device dealer, and shall provide the
20name and telephone number of the confiscating agency and
21investigator and the case number related to the confiscation.
22    (d) When an investigative hold or notification to
23confiscate is no longer necessary, the law enforcement official
24or designee shall notify the wireless communications device
25dealer.
26    (e) A wireless communications device dealer may sell or

 

 

SB0066 Engrossed- 8 -LRB099 04020 HAF 24038 b

1otherwise dispose of the wireless communications device if: (1)
2a notification to confiscate is not issued during the
3investigative hold; or (2) a law enforcement official does not
4physically remove the wireless communications device from the
5premises within 15 calendar days from issuance of a
6notification to confiscate.
7    (f) If a wireless communications device dealer is required
8to hold the wireless communications device at the direction of
9law enforcement for purposes of investigation or prosecution,
10or if the device is seized by law enforcement, the wireless
11communications device dealer and any other victim is entitled
12to seek restitution, including any out-of-pocket expenses for
13storage and lost profit, in any criminal case that may arise
14from the investigation against the individual who sold the
15wireless communications device to the wireless communications
16device dealer.
 
17    Section 30. Video security cameras required.
18    (a) Each wireless communications device dealer shall
19install and maintain at each physical location video
20surveillance cameras, still digital cameras, or similar
21devices positioned to record or photograph a frontal view
22showing a readily identifiable image of the face of each seller
23of a wireless communications device who enters the physical
24location.
25    (b) The video camera or still digital camera must be kept

 

 

SB0066 Engrossed- 9 -LRB099 04020 HAF 24038 b

1in operating condition and must be shown upon request to a
2properly identified law enforcement officer for inspection.
3The camera must record and display the accurate date and time.
4The video camera or still digital camera must be turned on at
5all times when the physical location is open for business and
6at any other time when wireless communications devices are
7purchased or sold.
8    (c) Recordings and images required by subsection (a) shall
9be retained by the wireless communications device dealer for a
10minimum period of 120 days and shall at all reasonable times be
11open to the inspection of any properly identified law
12enforcement officer.
 
13    Section 35. Penalty. A wireless communications device
14dealer, or the agent, employee, or representative of the
15wireless communications device dealer, who intentionally
16violates a provision of this Act is guilty of a business
17offense and shall be fined more than $500 but not more than
18$1,000.
 
19    Section 40. Application of Act.
20    (a) This Act does not apply with respect to a wireless
21communications device returned pursuant to the return policies
22of the wireless communications device dealer, wireless
23telephone service provider, manufacturer, or retailer from
24whom it was originally purchased.

 

 

SB0066 Engrossed- 10 -LRB099 04020 HAF 24038 b

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
13device dealers regulated under the Pawnbroker Regulation Act.
14    (d) This Act does not alter or affect a dealer's separate
15obligations under the Resale Dealers Act, if applicable, except
16that any violation under this Act, by a person covered by the
17Resale Dealers Act, which has the same or similar elements as a
18violation under the Resale Dealers Act shall be punished as
19provided under the Resale Dealers Act.