OFFICE OF THE MAYOR
CITY OF CHICAGO
LORI E. LIGHTFOOT
MAYOR
December 15. 2021
TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO
Ladies and Gentlemen:
At the request ofthe Commissioner of Business Affairs and Consumer Protection, I transmit herewith, together with Alderman Hairston, an ordinance amending the Municipal Code to enhance the regulation of secondhand dealers and pawnbrokers.
Your favorable consideration of this ordinance will be appreciated.
Very truly yours,
ORDINANCE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Section 4-240-170 of the Municipal Code of Chicago is hereby amended by adding the language underscored, and by deleting the language struck through, as follows:
4-240-170 Violation - Penalty.
Any person violating any ofthe provisions of this chapter or any rule promulgated thereunder shall be fined not less than $1,000.00 $2,000.00 nor more than $2,000.00 $10,000.00 for each offense. Each violation in regard to a separate transaction shall constitute a separate and distinct offense to which a separate fine shall apply. Where the provisions of this chapter impose a requirement on a licensee, an unlicensed person engaged in the activity shall be subject to the same penalty for violating the requirement.
In addition to any other penalty provided by law, any violation of this chapter or rule promulgated thereunder may result in license suspension or revocation in accordance with the requirements of Section 4-4-280 of this Code. If a person commits two or more violations within any 24-month period of Section 4-240-150, the Commissioner shall revoke that person's licenses. For purposes of this section: (1) "licenses" includes any and all licenses issued by the City of Chicago to engage in business operations at the location at which the violations occurred; (2) multiple offenses occurring on the same date shall be deemed a single violation while offenses occurring on separate dates shall be deemed separate violations; and (3) a "violation" may include a finding of liability or a finding sustaining the offense or offenses charged in the same or in any contemporaneous proceeding or evidence of any previously resolved final disposition against the licensee on a charge brought pursuant to any of the provisions of this chapter including, but not limited to, any finding of liability after adjudication on the merits, any default finding of liability, any uncontested finding of liability, any negotiated prehearing settlement ofthe charge, and any voluntary payment of the fine corresponding to the charge. Any revocation hearing shall be limited to the issue of whether the licensee's record and the resolution of any pending charges in the same or contemporaneous proceedings, if applicable, accurately reflect the existence of a sufficient number of violations to support the revocation decision. The licensee shall not be permitted to challenge the previously resolved violations themselves, nor any underlying facts asserted or determined therein.
When any license issued pursuant to this Chapter is revoked for any cause, no pawnbroker license shall be granted to such person for any premises for a period of four years thereafter. In the case of a legal entitv, all persons who have a substantial ownership or controlling interest in the entity shall be subject to the prohibition in this subsection.
When a pawnbroker license under this Chapter is revoked for any cause, no pawnbroker license under this Chapter shall be granted to any person for a period of one year thereafter for the premises described in such revoked license unless the revocation order was entered as to the licensee only.
SECTION 2. Section 4-264-230 ofthe Municipal Code of Chicago is hereby amended by adding the language underscored, and by deleting the language struck through, as follows:
4-264-230 Violation - Penalty.
(a) Except as otherwise provided in subsection (c), any person who violates any requirement of this chapter or any rule promulgated thereunder shall be fined not less than $500.00 $1,000.00 nor more than $1,000.00 $2,000.00 for each offense. Each violation in regard to a separate transaction shall constitute a separate and distinct offense to which a separate fine shall apply. Where the provisions of this chapter impose a requirement on a
licensee, an unlicensed person engaged in the activity shall be subject to the same penalty for violating the reguirement.
In addition to any other penalty provided by law, any violation of this chapter or rule promulgated thereunder may result in license suspension or revocation in accordance with the requirements of Section 4-4-280 of this Code. If a person commits two or more violations within any 24-month period of Section 4-264-090, the Commissioner shall revoke that person's licenses. For purposes of this section: (1) "licenses" includes any and all licenses issued by the City of Chicago to engage in business operations at the location at which the violations occurred; (2) multiple offenses occurring on the same date shall be deemed a single violation while offenses occurring on separate dates shall be deemed separate violations; and (3) a "violation" may include a finding of liability or a finding sustaining the offense or offenses charged in the same or in any contemporaneous proceeding or evidence of any previously resolved final disposition against the licensee on a charge brought pursuant to any of the provisions of this chapter including, but not limited to, any finding of liability after adjudication on the merits, any default finding of liability, any uncontested finding of liability, any negotiated prehearing settlement ofthe charge, and any voluntary payment of the fine corresponding to the charge. Any revocation hearing shall be limited to the issue of whether the licensee's record and the resolution of any pending charges in the same or contemporaneous proceedings, if applicable, accurately reflect the existence of a sufficient number of violations to support the revocation decision. The licensee shall not be permitted to challenge the previously resolved violations themselves, nor any underlying facts asserted or determined therein.
In addition to any other penalty provided by law, any person who purchases or offers for sale secondhand cell phones in violation of this chapter or who otherwise violates subsection (e) of Section 4-264-090 of this chapter, as applicable, shall be fined not less than $1,000.00 $2,000.00 nor more than $2,000.00 $10,000.00 for each offense. Each violation shall constitute a separate and distinct offense.
When any license issued pursuant to this Chapter is revoked for any cause, no secondhand dealer license shall be granted to such person for any premises for a period of four years thereafter. In the case of a legal entitv, all persons who have a substantial ownership or controlling interest in the entitv shall be subject to the prohibition in this subsection.
When a secondhand dealer license under this Chapter is revoked for any cause, no secondhand dealer license under this Chapter shall be granted to.any person for a period of one year thereafter for the premises described in such revoked license unless the revocation order was entered as to the licensee only.
SECTION 3. Section 4-264-240 ofthe Municipal Code of Chicago is hereby amended by adding the language underscored, and by deleting the language struck through, as follows:
4-264-240 Confiscation of secondhand cell phones - Illegal purchase or offer for sale.
In addition to any other applicable penalty, if any licensee or unlicensed secondhand dealer purchases or off ers for sale secondhand cell phones in violation of this chapter, the suporintondent of police or any member of the City's Department of Chicago Police Department and the Department of Business Affairs and Consumer Protection shall have the authority: (1) to issue notices of violation, in accordance with Section 2-14-074, to such licensee or unlicensed secondhand dealer found in possession of such cell phones; and (2) to seize and store all such cell phones.
Within ton days of tho issuanco of a notice of violation pursuant to subsoction (a) of this section, the commissioner of businoss affairs and consumer protection, shall notify by United States mail tho licensoo or the unlicensed secondhand dealer of the date, time and location of a hearing to detormino whether the cell phones, at the time of issuance ofthe notice of violation, woro purchased or offored for sale in violation of this chapter.
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(©) At any time before a determination is mado by an administrativo law officer undor subsection (d) of this section, tho commissioner of business affairs and consumer protection shall notify by United Statos mail tho ownor of each cell phono, if tho identity of tho owner is reasonably ascertainable, of the date, time, and location of a hearing to dotormino whothor tho coll phones, at the time of issuance of tho notice of violation, were purchased or offered for salo in violation of this chapter.
{4) After issuing a notice of violation, the commissioner of business affairs and consumer protection Commissioner of Business Affairs and Consumer Protection shall institute an action with the department of administrative hearings Department of Administrative Hearings, which shall appoint an administrative law officer who shall conduct the hearing, no later than 45 days after tho issuance of tho notico of violation, to determine whothor tho coll phonos, at tho time of issuance of tho notice of violation, woro purchased or offorod for salo in violation of this chapter. If the alleged violation is not contested or the administrative law officer determines by a preponderance ofthe evidence that any or all ofthe cell phones, at the time of issuance ofthe notice of violation, woro purchased or offorod for sale in violation of this chaptor, tho administrativo law officer shall ontor an ordor requiring payment by tho licensee or tho unliconsod secondhand dealer of a penalty of $1,000.00 for each cell phone purchased or offered for sale in violation of this chapter. Any penalty imposed under this section shall be in addition to any othor penalty imposed undor this chapter. If the administrative law officer determines that a violation has occurred, in addition to any other penalty imposed under this Chapter 4-264, (1) the respondent shall be liable for a $1,000.00 fine for each cell phone purchased or offered for sale in violation of this chapter and (2) all cell phones that were purchased or offered for sale in violation of this chapter shall be: (i) forfeited to the City; or (ii), in case of stolen or lost cell phones, returned to each lawful owner, if the identity of the owner is known or reasonably ascertainable. If the administrative law officer determines that a violation has not occurred, all cell phones that were seized pursuant to this section shall bef-(t) returned to the licensee; or («), in case of stolen or lost cell phones, returned to each lawful owner, if the identity of the owner is known or reasonably ascertainable.
SECTION 4. Section 8-4-053 of the Municipal Code of Chicago is hereby amended by adding the language underscored, and by deleting the language struck through, as follows:
8-4-053 Stolen cell phone database.
(Omitted text is unaffected by this ordinance)
(d) Any person who violates this section shall be subject to a fine of not less than $1,000.00 $2,000.00 nor more than $2,000.00 $10,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.
SECTION 5. This ordinance shall be in full force and effect 10 days following passage and publication.
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