G52-10 Ordinance No. G52-10
•
AN ORDINANCE
AMENDING TITLE 6 OF THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED,
TO REGULATE "RESALE DEALERS" AND "RECYCLABLE METAL DEALERS"
WHEREAS, 65 ILCS 5/11-42-3 provides that the corporate authorities of each
municipality may license, tax, locate and regulate all places of business of dealers in junk,
dismantled or wrecked motor vehicles or parts thereof, rags and any second-hand article
whatsoever: and
WHEREAS, the City of Elgin is a home-rule unit; and
WHEREAS, pursuant to Article 7, Section 6 of the Constitution of the State of Illinois,
the City of Elgin, as a home-rule unit, may exercise any power and perform any function
pertaining to its government and affairs, including, but not limited to, the power to regulate for
the protection of the public health, safety, morals and welfare, and to license; and
WHEREAS, the regulation of resale shops and recyclable metal dealers through licensing
and other regulations, is necessary to deter and detect crime; and
WHEREAS, deterring crime, detecting crime, protecting theft victims and recovering
stolen property relates to the protection of the public health, safety, morals and welfare and
pertains to the government and affairs of the City of Elgin.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS:
Section 1. That Title 6 of the Elgin Municipal Code, 1976, as amended, entitled
""Business Licenses and Regulations," be and is hereby amended by creating Chapter 6.43,
entitled. "Resale Dealers," to read as follows:
SECTION:
6.43.010: Definitions
6.43.020: License Required
6.43.030: Exemptions
6.43.040: Application
6.43.050: Fees
6.43.060: Investigation of Applicant
6.43.070: Bond Prerequisite to Issuance
6.43.080: Issuance
6.43.090: Posting
6.43.100: Transfer
• 6.43.110: Change of Location
• 6.43.120: Hours of Operation
6.43.130: Prohibited Purchases
6.43.140: Purchasing, Selling; Weapons Prohibited
6.43.150: Records of Purchases
6.43.160: Reports to Chief of Police
6.43.170: Inspections of Premises
6.43.180: Waiting Period
6.43.190: Removal of Identifying Marks Prohibited
6.43.200: Video Camera Surveillance Required
6.43.210: Inventory System
6.43.220: Suspension or Revocation
6.43.230: Summary Suspension
6.43.240: Notice of Hearing
6.43.250: Hearings
6.4').260: Appeals
6.43.270: Penalty for Violation
6.4').280: Severability
6.43.010: DEFINITIONS:
"Approved Identification" means any one of the following validly issued and unexpired
forms of identification, which includes a photograph of the person: (i) a United States
passport, (ii) a state driver's license, (iii) a state issued identification card, (iv) a military
identification card, or (v) a United States permanent resident card.
"Audio-Video Equipment" means items which include any stereo, speaker, radio, video
recorder, video camera, camera, television, tape or disk player, MP3 player or satellite
signal device.
"Person" means a natural person, joint venture, joint stock company, partnership;
association, club, company, corporation, business, trust or organization; or the manager,
lessee, agent, servant, officer or employee of any of them.
"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, coins, audio-video equipment or any precious metals
which may have been previously owned by a consumer; or which derives more than
thirty-five percent of its gross receipts from the sale, consignment for sale, pledge or
trade of any goods, wares or merchandise which have previously been owned by a
consumer, including but not limited to furniture, appliances, clothing, automobile
accessories, books or metals, whether in bulk or manufactured state.
A. The term "resale dealer" shall include, but not be limited to, businesses commonly
known as swapshop operators, stamp dealers, coin dealers and jewelers that
purchase and resell items from persons other than dealers and suppliers and
•
engage in disassembling, melting and otherwise altering jewelry. The term
• "resale dealer" shall not include pawnbrokers.
B. The fact that any business does any of the following acts shall be prima facie
proof that such business is a resale dealer:
1. Advertises in any fashion that it buys or sells used items. Such advertisements
shall include, but not be limited to, media advertisements, web sites, telephone
listings, and signs whether on the exterior or interior of the business.
2. Devotes a significant segment or section of the business premises to the
purchase or sale of used items.
"Used" means any goods, wares or merchandise which have previously been owned by a
consumer, including but not limited to jewelry, stamps, coins, audio-video equipment, or
any precious metals, furniture, appliances, clothing, automobile accessories, books or
metals, whether in bulk or manufactured state.
6.43.020: LICENSE REQUIRED:
No person, either as owner, manager, lessee, officer or agent, or in any other capacity,
shall operate or permit to be operated a resale dealership without first having obtained a
license from the city to do so. The license fee shall be due and payable on or before
• February 1 of each year. The requisite fee shall accompany all original or renewal
applications. Such licenses shall expire on January 31, next after the date of issue.
Failure or neglect to pay the requisite license fee in a timely manner shall be cause for
denial of issuance or non-renewal or revocation as the case may be.
6.43.030: EXEMPTIONS:
The following activities shall be exempt from the requirements of this chapter:
A. "Residential garage sales," as that term is defined in section 19.90.015 of this
Code.
B. Sales conducted by governmental, civic, patriotic, fraternal, educational, religious
or benevolent organizations which have been in active and continuous existence
for at least one year prior to the holding of the sale, or which are exempt from
taxation under Section 501 of the Internal Revenue Code.
C. Sales or purchases which are regulated by the licensing laws of the state,
including automobile dealers, used parts dealers and automotive parts recyclers.
D. Consumer shows or exhibitions of collectibles.
• E. Sales by auctioneers holding a license pursuant to chapter 6.12 of this Code.
F. Sales by pawnbrokers holding a license pursuant to chapter 6.42 of this Code.
•
G. Sales of recyclable metal by a recyclable metal dealer holding a license pursuant
to chapter 6.44 of this Code.
H. Sales of recyclable materials by a scavenger holding a license pursuant to chapter
6.54 of this Code.
I. Sales or trades of used books between a customer and owner of a used bookstore.
6.43.040: APPLICATION:
An application for a license required by this chapter shall be made in writing under oath
to the city's finance director on a form prescribed by the city's finance director. All
references to the finance director in this chapter shall be deemed to include the finance
director or his authorized designee. Each application shall include, but not be limited to,
the following information:
A. The name of the individual, partnership, corporation or association applying for a
license.
B. The residence, phone number, date of birth and driver's license number of the
applicant or partners; or, if a corporation or association, the residence, phone
• number and driver's license number of the officers and all shareholders owning
more than five percent (5%) of the outstanding shares of stock.
C. The location for which the license is requested.
D. Whether the applicant, its partners, officers or listed shareholders have been
convicted of any criminal offense or ordinance violation (other than traffic or
parking offenses) in any jurisdiction and, if so, a list of such convictions with date
and prosecuting jurisdiction.
E. Such information as required by the Chief of Police in order to conduct a criminal
history background investigation on the applicant, its partners, officers or listed
shareholders owning more than five percent (5%) of the outstanding shares of
stock.
F. Whether the applicant, its partners, officers or listed shareholders have held a
license or had an interest in a license issued by the city or any other jurisdiction
regulating the purchase or sale of used property revoked for cause, and, if so, list
the date of revocation and jurisdiction.
G. A statement whether the applicant has made application for a similar or other
license on premises other than described in the application, and the disposition of
• such application.
6.43.050: FEES:
The applicant for a license required by this chapter shall pay the finance director at the
time of filing an application a license fee of two hundred dollars ($200.00) per calendar
year or part thereof. Should the license be denied, the license fee shall be refunded to the
applicant.
6.43.060: INVESTIGATION OF APPLICANT:
Upon receipt of an application for a license under this chapter, the finance director shall
cause a copy thereof to be sent to the chief of police and the community development
group director both of whom shall report back to the finance director in thirty (30) days
whether the applicant is in accordance with applicable city codes. The investigation by
the chief of police shall include, but not be limited to, conducting a criminal history
background investigation on the applicant, its partners, officers or listed shareholders
owning more than five percent (5%) of the outstanding shares of stock.
6.43.070: BOND PREREQUISITE TO ISSUANCE:
Every applicant for a license under this chapter shall file with the city a license and
permit bond in the penal sum of one thousand dollars ($1,000.00), approved by the
corporation counsel, with the city as obligee, conditioned for the faithful and due
performance of the provisions of this chapter and the laws of the state concerning the
operation of the licensed business, and the payment of all fines and penalties by reason of
the violation thereof.
6.43.080: ISSUANCE:
Upon receipt of the report from the chief of police and community development group
director, the finance director shall issue the license requested under this chapter unless it
is determined that:
A. The applicant is under the age of 18.
B. The location requested is not in a permanent structure.
C. The applicant plans to operate as a transient merchant as that term is defined in
chapter 6.30 of this Code.
D. The applicant, its partners, officers or listed shareholders have been convicted of
or had plead guilty to any offense related to theft, burglary, or purchasing or
receiving stolen items under the laws of this state, city or any other jurisdiction
within the past ten years, or have forfeited a bond to appear in court to answer for
charges for such offenses during such time.
•
E. The location requested and structure to be used would not comply with all
applicable laws including, but not limited to, the zoning code of the city.
F. The applicant, its partners, officers or listed shareholders have held a license or
had an interest in a license issued by the city or any other jurisdiction regulating
the purchase or sale of used property which was revoked for cause.
G. The applicant, its partners, officers or listed shareholders has knowingly furnished
false or misleading information or withheld relevant information on any
application for a license required by this division or any investigation into any
application.
H. The application has not been properly completed and/or the licensing fee required
in this chapter has not been paid.
I. An investigation reveals that the applicant has falsified information on the
application.
J. There is an outstanding code violation on the proposed premises, unless the
applicant can provide satisfactory evidence that the condition will be corrected
within a reasonable time, and the conduct of the business pending the correction
of such condition will not endanger the public health, safety or welfare.
• K. Failure to comply with other provisions of this chapter or applicable requirements
of law.
6.43.090: POSTING:
Every license issued under the provisions of this chapter shall, at all times during the
period for which it is effective, be posted in a conspicuous place at or near the principal
entrance to the premises for which the license is issued.
6.43.100: TRANSFER:
A. No license issued under this division may be transferred to any other person.
B. No corporate resale dealer licensee shall permit any transfer of its stock which
would vest in aggregate more than five percent (5%) of the stock outstanding in
such corporation in any shareholder unless such shareholder has been certified by
the finance director as meeting the requirements of this chapter.
6.43.110: CHANGE OF LOCATION:
No resale dealer shall carry on any business required to be licensed under this chapter
except at the location designated on the license. Should the resale dealer wish to change
the location, application shall be made to the finance director for such change in writing.
The finance director shall approve the change of location unless the new location would
be contrary to the provisions of this chapter the ordinances of the city or any other
applicable requirements of law.
6.43.120: HOURS OF OPERATION:
No resale dealer shall purchase any goods, wares, articles or things whatsoever from any
person before the hour of 6:00 a.m. or after the hour of 9:00 p.m.
6.43.130: PROHIBITED PURCHASES:
No resale dealer under this chapter shall purchase or accept any goods, wares, articles, or
things under any of the following circumstances:
A. Where the seller is less than the age of 18.
B. Where the seller is intoxicated, as that term is defined in section 10.33.010 of this
Code.
C. Where the seller fails to present at least one (1) form of Approved Identification
that contains the seller's full legal name, residence address and a photograph, as
required in section 6.43.150A6.
• D. Where 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.
E. Where the seller is known to be a thief or has been convicted of theft, burglary,
robbery or possession of stolen property.
6.43.140: PURCHASING, SELLING; WEAPONS PROHIBITED:
No resale dealer shall deal in, or buy or sell, or display in his shop, any pistol, revolver,
derringer, Bowie knife, dirk or other deadly weapon of like character, capable of being
secreted upon the person unless such resale dealer shall also possess a valid and current
license for such deadly weapon as provided by state and federal law.
6.43.150: RECORDS OF PURCHASES:
A. Every resale dealer shall keep and maintain at the licensed location a book in
which the resale dealer shall cause to be entered in English for each purchase or
receipt of property the following information:
1. A succinct and accurate description of all property taken, purchased or received
in the course of the business licensed under this chapter, including any number or
inscription that may be in or on such property, and the amount paid by the resale
• dealer for such property. The description of each audio-video equipment, musical
instrument, camera, appliance or machine of any type shall include the brand
• name; the model number, if available; any serial number or other identification
number installed by the manufacturer; and a description of every other identifying
marking, such as inscription, a Social Security number, a name, a nickname or
address appearing on the item. The description of each watch shall include the
brand name; model number, if available; a description of the metal or metals of its
composition; a description of the brand, if any; a description of the face by
number, color, cut, shape and type of stone or stones, if any; and a description of
any inscriptions appearing on the watch. The description of each item of jewelry
shall include the type; a description of the metal or metals of its composition; the
type, shape and cut of each stone; and a description of all inscriptions.
2. The full legal name of the person from whom the property is received including
full first name and middle initial, if any.
3. Such person's current residential address, date of birth and physical description;
the amount given or loaned to such person and the terms thereof. The physical
description of the person who sells property to the resale dealer shall consist of
such person's height (as estimated by the resale dealer) and gender.
4. The signature of the employee who received the property.
5. A signed statement of the person from whom the property was obtained that he
• or she is over 18 years of age and the legal owner of same clear of all attachments
and with the legal right to sell. Resale dealer shall inquire with the person selling
the property where the property was obtained for the purposes of determining if
the transfer of the property from that person was a lawful transaction and will
enter the seller's response in such records. If the seller presents a bill of sale,
receipt or other document indicating that the person is in lawful possession of the
property, or otherwise was lawfully acquired, the resale dealer shall photocopy
such document and maintain it with the records otherwise required by this section.
6. The name and address of the person or persons from whom the property is
received shall be verified from two forms of identification, to be shown to the
resale dealer by each person selling any property or other items to the resale
dealer. At least one of the two forms of identification must include an Approved
Identification which lists the person's name and residence address and includes a
photocopy of such person. The resale dealer shall make and record a photocopy
or electronic scan of the presented form(s) of Approved Identification. If the
person delivering the used property does not have at least one (1) of the forms of
Approved Identification required by this ordinance, the resale dealer shall not
complete the transaction.
7. The vehicle license plate number of the seller.
B. Entries made in the register shall be printed or typed in ink and shall be legible.
C. All entries shall be made immediately upon receipt or purchase of any property.
• No entry made in the record of purchases shall be erased, obliterated or defaced.
D. For purposes of this section, the phrase "printed or typed in ink" may include a
computer printout, and "book" includes an accessible computer database capable
of being printed at the resale dealer's business location.
E. A copy of the completed record shall be kept in a separate book or register by the
resale dealer and shall be retained for a period of three (3) years. Such book or
register shall at all times during the resale dealer's business hours be open to the
inspection of any member of the city's police department.
6.43.160: REPORTS TO CHIEF OF POLICE:
A. It shall be the duty of every resale dealer under this chapter to have available for
delivery to the chief of police, or officer designated by the chief of police, every
business day and before the hour of 12:00 noon, a legible and correct copy from
the register of all personal property, or the valuable things, received or deposited
or purchased the preceding day in whatever quantity received, including property
purchased as used merchandise at wholesale, used merchandise taken in for sale
or possessed on consignment for sale, and used merchandise taken in for trade.
B. No resale dealer shall be required to furnish such description of any new property
purchased by the resale dealer from manufacturers, other retailers or wholesale
dealers having an established place of business, or of any goods purchased at open
sale, or from a bankrupt stock. Such goods must be accompanied by a bill of sale
or other evidence of open and legitimate purchase and shall at all times during the
resale dealer's business hours be open to the inspection of members of the city's
police department.
6.43.170: INSPECTION OF PREMISES;
Every resale dealer under this chapter and every person employed by him in the conduct
of business shall admit to any and every part of the premises designated in the license,
during the resale dealer's business hours, any police officer of the city to examine any
goods, articles, things or books or other records on the premises dealing with purchase or
sale of used property.
6.43.180: WAITING PERIOD:
Every resale dealer under this chapter shall keep all property purchased or received
available for inspection on the licensed premises for a period of ten (10) days from the
date of purchase or receipt. The resale dealer shall hold such property on the licensed
premises for such ten (10)-day period in such a manner as to be identifiable and separate
from property obtained in other transactions. The resale dealer shall not alter such
property purchased or received in any manner during the ten-day waiting period.
• 6.43.190: REMOVAL OF IDENTIFYING MARKS PROHIBITED:
No resale dealer shall remove, alter or obliterate any manufacturers 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.
6.43.200: VIDEO CAMERA SURVEILLANCE REQUIRED:
Each resale dealer shall be required to install, operate and maintain a video camera
surveillance system capable of recording clear and unobstructed photographic
representations of the resale dealer's customers and shall retain the video tape recordings
produced therefrom for at least thirty (30) days. Said video tape recording shall be
subject to inspection and copying by members of the city's police department during the
licensee's business hours.
6.43.210: INVENTORY SYSTEM:
Every resale dealer shall maintain an inventory system of all property purchased or
received in such a manner that members of the city's police department making an
inspection pursuant to this chapter can readily ascertain the identity of such property and
readily locate such property on the licensed premises.
6.43.220: SUSPENSION OR REVOCATION:
• In addition to any other penalty which may be authorized by this Chapter or other city
ordinances, the finance director may suspend or revoke any license issued pursuant to this
Chapter for:
A. Failure of the resale dealer licensee, its officers, agents or employees to comply
with any provision of this Chapter, any other applicable ordinances, the laws of
the State, federal laws or other applicable legal requirements.
B. Finding that the resale dealer licensee, its partners, officers or shareholders have
been convicted of any offense set forth in section 6.43.080D of this Chapter; or
C. Finding that the resale dealer licensee, its partners, officers or shareholders have
knowingly furnished false or misleading information or withheld relevant
information on any application for a license required by this Chapter or any
investigation on any application.
The resale dealer shall be responsible for the acts of its agents, servants and employees in
the operation of the business. Prior to holding a hearing concerning the question of
whether a license shall be revoked or suspended, the finance director shall give at least
ten (10) days written notice to the resale dealer setting forth the alleged violation
specifically. The resale dealer may present evidence and cross-examine witnesses at such
. hearing.
6.43.230: SUMMARY SUSPENSION:
Where the finance director presents to the city manager sufficient evidence demonstrating
probable cause to believe that the licensee has violated the provisions of this code or the
laws of the United States or the State, and that said violation will immediately threaten
the public health, safety or welfare, the city manager may, upon the issuance of a written
order stating the reason for such conclusion, and without prior notice or hearing, order the
licensed premises closed and the license summarily suspended pending a public hearing
and determination on suspension or revocation. Such hearing shall be commenced not
more than seven (7) days following entry of such an order, unless the licensee shall agree
to a longer period of time. The procedures for such a hearing or any appeal with respect
thereto shall be as otherwise provided in this chapter. Upon entry of an order of
summary suspension, the licensee shall be served with a copy of the order and notice of
violation and a hearing in the manner provided by this chapter.
6.43.240: NOTICE OF HEARING:
Except as provided in section 6.43.220 hereof prior to suspension or revocation of a
license under this chapter, the licensee shall be notified in writing of the nature of the
violation(s) and an opportunity for a hearing will be provided if a written request for a
hearing is filed with the finance director by the holder of the license within ten (10) days.
If a written request is filed within ten (10) days, a hearing date shall be set within ten (10)
days of receipt of the request. If no written request for a hearing is filed within ten (10)
• days; the suspension or revocation shall be sustained.
6.43.250: HEARINGS:
As provided in this chapter, a hearing shall be conducted by the finance director or his
designee affording the licensee an opportunity to appear and defend the charges. The
finance director shall make a final decision in writing, including the reasons for such
decision, and shall serve such decision on the licensee within ten (10) days after the
conclusion of the hearing.
6.43.260: APPEALS:
A. Any person aggrieved by the action or decision of the city's finance director to
deny, suspend or revoke a license applied for or issued under the provisions of
this chapter shall have the right to appeal such action or decision to the city
manager within ten (10) days after the notice of action or decision has been
mailed to the licensee's address as shown on the license application form, or to
the licensee's last known address.
is
B. An appeal shall be taken by filing with the city's finance director a written
• statement sending forth the grounds for appeal.
C. The city's finance director shall transmit the written statement to the city manager
within ten days of its receipt and the city manager shall set a time and place for a
hearing on the appeal. The city manager may designate an authorized
representative to conduct such hearing.
D. A hearing shall be set not later than twenty (20) days from the date of receipt of
the appellant's written statement.
E. Notice of the time and place of the hearing shall be given to the appellant in the
same manner as provided for the mailing of notice of action decision.
F. The city manager or the city manager's designee shall serve a decision on the
licensee within ten (10) days after the conclusion of the hearing on such appeal.
6.43.270: PENALTY FOR VIOLATION:
A. Any person violating any of the provisions or failure to comply with any of the
mandatory requirements of this chapter shall be guilty of an offense. Any person
convicted of an offense under this chapter, in addition to other legal and equitable
remedies available to the city, shall be punished by a fine in an amount of not less
than five hundred dollars ($500.00) for each offense.
B. Any person shall be guilty of a separate offense for each and every day during any
portion of which any violation of any provision of this chapter is committed,
continued or permitted by any such person, and he shall be punished accordingly.
C. The levy and/or payment of any payment or fine provided in this chapter shall not
be deemed a waiver of the power of the city to suspend, revoke or to refuse to
renew a license or to refuse to renew a license or to seek injunctive relief to enjoin
violations of this chapter or other applicable provisions of law.
6.43.280: SEVERABILITY:
If any provision, cause, sentence, paragraph, section or part of this chapter or application
thereof to any person or circumstance, shall or any reason to be adjudged by a court of
competent jurisdiction to be unconstitutional or invalid, said judgment shall not effect,
impair or invalidate the remainder of this chapter and the application of such provision to
other persons or circumstances, but shall be confined in its operation to the provision,
clause, sentence, paragraph, section or part thereof directly involved in the controversy in
which such judgment shall have been rendered and to the person or circumstances
involved. It is hereby declared to be the legislative intent of the city council that this
chapter would have been adopted had such constitutional or invalid provisions, clause,
is sentence, paragraph, section or part thereof not been included.
Section 2. That Title 6 of the Elgin Municipal Code, 1976, as amended, entitled
• -Business Licenses and Regulations," be and is hereby amended by creating Chapter 6.44,
entitled, "Recyclable Metal Dealers," to read as follows:
SECTION:
6.44.010: Definitions
6.44.020: License Required
6.44.030: Application
6.44.040: Fees
6.44.050: Investigation of Applicant
6.44.060: Bond Prerequisite to Issuance
6.44.070: Issuance
6.44.080: Posting
6.44.090: Transfer
6.44.100: Change of Location
6.44.110: Hours of Operation
6.44.120: Records of Purchases
6.44.130: Prohibited Purchases
6.44.140: Reports to Chief of Police
6.44.150: Inspections of Premises
6.44.160: Waiting Period
6.44.170: Video Camera Surveillance Required
6.44.180: Inventory System
6.44.190: Suspension or Revocation
6.44.200: Summary Suspension
6.44.210: Notice of Hearing
6.44.220: Hearings
6.44.230: Appeals
6.44.240: Penalty for Violation
6.44.250: Severability
6.44.010: DEFINITIONS:
"Approved Identification' shall mean any one of the following validly issued and
unexpired forms of identification, which includes a photograph of the person: (i) a United
States passport, (ii) a state driver's license, (iii) a state issued identification card, (iv) a
military identification card, or (v) a United States permanent resident card.
"Person" means a natural person, joint venture, joint stock company, partnership,
association, club, company, corporation, business, trust or organization; or the manager,
lessee, agent, servant, officer or employee of any of them.
"Recyclable metal" means any copper, brass, or aluminum, or any combination of those
metals, purchased by a recyclable metal dealer, irrespective of form or quantity, except
• that "recyclable metal" does not include: (i) items designed to contain, or to be used in
the preparation of beverages or food for human consumption; (ii) discarded items of non-
commercial or household waste; (iii) gold, silver, platinum, and other precious metals
used in jewelry; or (iv) vehicles,junk vehicles, vehicle cowls, or essential vehicle parts.
"Recyclable metal dealer" means any individual, firm, corporation or partnership engaged
in the business of purchasing and reselling recyclable metal either at a permanently
established place of business or in connection with a business of an itinerant nature,
including junk shops, junk yards, or junk stores, except that "recyclable metal dealer"
does not include automotive parts recyclers, scrap processors, repairers and rebuilders
licensed pursuant to section 5-301 of the Illinois Vehicle Code, as amended. Recyclable
metal dealers shall not be engaged in the business of purchasing or reselling vehicles,
junk vehicles, vehicle cowls, or essential vehicle parts
6.44.020: LICENSE REQUIRED:
No person, either as owner, manager, lessee, officer or agent, or in any other capacity,
shall operate or permit to be operated a recyclable metal dealership without first having
obtained a license from the city to do so. The license fee shall be due and payable on or
before February 1 of each year. The requisite fee shall accompany all original or renewal
applications. Such licenses shall expire on January 31, next after the date of issue.
Failure or neglect to pay the requisite license fee in a timely manner shall be cause for
denial of issuance or non-renewal or revocation as the case may be.
• 6.44.030: APPLICATION:
An application for a license required by this chapter shall be made in writing under oath
to the city's finance director on a form prescribed by the city's finance director. All
references to the finance director in this chapter shall be deemed to include the finance
director or his authorized designee. Each application shall include, but not be limited to,
the following information:
A. The name of the individual, partnership, corporation or association applying for a
license.
B. The residence, phone number, date of birth and driver's license number of the
applicant or partners; or, if a corporation or association, the residence, phone
number and driver's license number of the officers and all shareholders owning
more than five percent (5%) of the outstanding shares of stock.
C. The location for which the license is requested.
D. Whether the applicant, its partners, officers or listed shareholders have been
convicted of any criminal offense or ordinance violation (other than traffic or
parking offenses) in any jurisdiction and, if so, a list of such convictions with date
and prosecuting jurisdiction.
•
E. Such information as required by the chief of police in order to conduct a criminal
• history background investigation on the applicant, its partners, officers or listed
shareholders owning more than five percent (5%) of the outstanding shares of
stock.
F. Whether the applicant, its partners, officers or listed shareholders have held a
license or had an interest in a license issued by the city, state or any other
jurisdiction regulating the purchase or sale of recyclable metals revoked for cause,
and, if so, list the date of revocation and jurisdiction.
G. A statement whether the applicant has made application for a similar or other
license on premises other than described in the application, and the disposition of
such application.
6.44.040: FEES:
The applicant for a license required by this chapter shall pay the finance director at the
time of filing an application a license fee of two hundred dollars ($200.00) per calendar
year or part thereof. Should the license be denied, the license fee shall be refunded to the
applicant.
6.44.050: INVESTIGATION OF APPLICANT:
• Upon receipt of an application for a license under this chapter, the finance director shall
cause a copy thereof to be sent to the chief of police and the community development
group director both of whom shall report back to the finance director in thirty (30) days
whether the applicant is in accordance with applicable city codes. The investigation by
the chief of police shall include, but not be limited to, conducting a criminal history
background investigation on the applicant, its partners, officers or listed shareholders
owning more than five percent (5%) of the outstanding shares of stock.
6.44.060: BOND PREREQUISITE TO ISSUANCE:
Every applicant for a license under this chapter shall file with the city a license and
permit bond in the penal sum of one thousand dollars ($1,000.00), approved by the
corporation counsel, with the city as obligee, conditioned for the faithful and due
performance of the provisions of this chapter and the laws of the state concerning the
operation of the licensed business, and the payment of all fines and penalties by reason of
the violation thereof.
6.44.070: ISSUANCE:
Upon receipt of the report from the chief of police and community development group
director, the finance director shall issue the license requested under this chapter unless it
is determined that:
•
• A. The applicant is under the age of 18.
B. The location requested is not in a permanent structure.
C. The applicant, its partners, officers or listed shareholders have been convicted of
or had plead guilty to any offense related to theft, burglary, or purchasing or
receiving stolen items under the laws of this state, city or any other jurisdiction
within the past ten years, or have forfeited a bond to appear in court to answer for
charges for such offenses during such time.
D. The location requested and structure to be used would not comply with all
applicable laws, including, but not limited to, the zoning code of the city.
E. The applicant, its partners, officers or listed shareholders have held a license or
had an interest in a license issued by the city, state or any other jurisdiction
regulating the purchase or sale of recyclable metals which was revoked for cause.
F. The applicant, its partners, officers or listed shareholders has knowingly furnished
false or misleading information or withheld relevant information on any
application for a license required by this chapter or any investigation into any
application.
G. The application has not been properly completed and/or the licensing fee required
• in this chapter has not been paid.
H. An investigation reveals that the applicant has falsified information on the
application.
I. There is an outstanding code violation on the proposed premises, unless the
applicant can provide satisfactory evidence that the condition will be corrected
within a reasonable time, and the conduct of the business pending the correction
of such condition will not endanger the public health, safety or welfare.
J. Failure to comply with other provisions of this chapter or applicable requirements
of law.
6.44.080: POSTING:
Every license issued under the provisions of this chapter shall, at all times during the
period for which it is effective, be posted in a conspicuous place at or near the principal
entrance to the premises for which the license is issued.
6.44.090: TRANSFER:
A. No license issued under this division may be transferred to any other person.
•
• B. No corporate recyclable metal dealer licensee shall permit any transfer of its stock
which would vest in aggregate more than five percent (5%) of the stock
outstanding in such corporation in any shareholder unless such shareholder has
been certified by the finance director as meeting the requirements of this chapter.
6.44.100: CHANGE OF LOCATION:
No recyclable metal dealer shall carry on any business required to be licensed under this
chapter except at the location designated on the license. Should the recyclable metal
dealer wish to change the location, application shall be made to the finance director for
such change in writing. The finance director shall approve the change of location unless
the new location would be contrary to the provisions of this chapter or any 'of the
ordinances of the city.
6.44.110: HOURS OF OPERATION:
No recyclable metal dealer shall purchase any goods, wares, articles or things whatsoever
from any person before the hour of 6:00 a.m. or after the hour of 9:00 p.m.
6.44.120: RECORDS OF PURCHASES:
A. Every recyclable metal dealer shall keep and maintain at the licensed location a
book in which the recyclable metal dealer shall cause to be entered, in English, for
• each purchase or receipt of recyclable metal, the following information:
1. The name and address of the recyclable metal dealer.
2. The date and place of each purchase.
3. The full legal name and address of the person or persons from whom the
recyclable metal was purchased. The name and address of the person or persons
from whom the recyclable metal is received shall be verified from two forms of
identification, to be shown to the recyclable metal dealer by each person selling
any recyclable metal or other items to the recyclable metal dealer. At least one of
the two forms of identification must include an Approved Identification which
lists the person's name and residence address and include a photograph of such
person. The recyclable metal dealer shall make and record a photocopy or
electronic scan of the presented form(s) of Approved Identification. If the person
delivering the recyclable metal does not have at least one (1) of the forms of
Approved Identification required by this ordinance, the recyclable metal dealer
shall not complete the transaction. The requirement to provide two (2) forms of
identification as provided in this subsection shall not apply to electrical
contractors, to agencies or instrumentalities of the State of Illinois or of the United
States, to common carriers or to purchases from persons, firms or corporations
regularly engaged in the business of manufacturing recyclable metal, the business
• of selling recyclable metal at retail or wholesale, in the business of razing,
• demolishing, destroying or removing buildings, to the purchase of one recyclable
metal dealer from another or the purchase from persons, firms or corporations
engaged in either the generation, transmission or distribution of electric energy or
in telephone, telegraph and other communications if such common carriers,
persons, firms or corporations at the time of the purchase provide the recyclable
metal dealer with a bill of sale or other written evidence of title to the recyclable
metal. The requirement for two (2) forms of identification as provided in this
subsection shall also not apply to contractual arrangements between recyclable
metal dealers.
4. The motor vehicle license number and state of issuance of the motor vehicle
license number of the vehicle or conveyance on which the recyclable metal was
delivered to the recyclable metal dealer.
5. A description of the recyclable metal purchased, including the kind of metal
and the weight and whether it consists of bars, cable, ingots, rods, tubing, wire,
wire scraps, clamps, connectors, other appurtenances, or some combination
thereof.
6. The recyclable metal dealer shall inquire with the person selling the recyclable
metal where the recyclable metal was obtained for the purposes of determining if
the recyclable metal from that person is a lawful transaction and will enter the
seller's response in such records. If the seller presents a bill of sale, receipt or
• other document indicating that the person is in lawful possession of the recyclable
metal, or otherwise was lawfully acquired, the recyclable metal dealer shall
photocopy such document and maintain it with the records otherwise required by
this section.
7. The vehicle license plate number of the seller.
B. Entries made in the records shall be printed or typed in ink and shall be legible.
C. All entries shall be made immediately upon receipt or purchase of any recyclable
metal or other property. No entry made in the record of purchases shall be erased,
obliterated or defaced.
D. For purposes of this section, the phrase "printed or typed in ink" may include a
computer printout, and "book" includes an accessible computer database capable
of being printed at the recyclable metal dealer's business location.
E. A copy of the completed record shall be kept in a separate book or register by the
recyclable metal dealer and shall be retained for a period of three (3) years. Such
book or register shall at all times during the recyclable metal dealer's business
hours be open to the inspection of any member of the city's police department.
• 6.44.130: PROHIBITED PURCHASES:
No recyclable metal dealer under this chapter shall purchase or accept any recyclable
metals under any of the following circumstances:
A. Where the seller is less than the age of 18.
B. Where the seller is intoxicated, as that term is defined in section 10.33.0 10 of this
Code.
C. Where the seller fails to present at least one (1) form of Approved Identification
that contains the seller's full legal name, residence address and a photograph, as
required in section 6.44.120A3.
D. Where the seller is known to be a thief or has been convicted of theft, burglary,
robbery or possession of stolen property.
E. A recyclable metal dealer shall not purchase metal beer kegs from any person
other than the beer manufacturer whose identity is printed, stamped, attached, or
otherwise displayed on the beer keg, or from the manufacturer's authorized
representative. The recyclable metal dealer shall obtain a proof of ownership
record from a person selling the beer keg, including any person selling a beer keg
with an indicia of ownership that is obliterated, unreadable, or missing, and shall
is also verify the seller's identity by a driver's license or other government-issued
photo identification. The proof of ownership record shall include all of the
following information:
1. The name, address, telephone number, and signature of the seller or the seller's
authorized representative.
2. The name and address of the buyer, or consignee if not sold.
3. A description of the beer keg, including its capacity and any indicia of
ownership or other distinguishing marks appearing on the exterior surface.
4. The date of transaction.
The information required to be collected by this subsection shall be kept for one
(1) year from the date of purchase or delivery, whichever is later.
F. Except as provided below, a recyclable metal dealer shall not purchase or attempt
to purchase the following types of scrap metal:
1. Scrap metal marked with the initials of an electrical, telephone, cable or other
public utility.
2. Utility access covers.
3. Street light poles and fixtures.
4. Road and bridge guard rails.
5. Highway or street signs.
6. Water meter covers.
7. Traffic directional and control signs.
8. Traffic light signals.
9. Any recyclable metal visibly marked or painted with a name of a
governmental agency, business, company or the name of the owner of such metal.
10. Property owned by a telephone company, a cable, electric, water or other
utility or by a railroad and marked or otherwise identified as such.
11. Unused and undamaged historical markers or grave markers and vases.
It is an exception to the application of this subsection that the person attempting to
sell the recyclable metal provides reasonable, written documentation that the
seller is the owner of the recyclable metal or is an employee, agent or other person
authorized to sell the recyclable metal on behalf of the owner. The recyclable
metal dealer shall make a photocopy of any documentation provided pursuant to
this subsection and retain a copy as part of the transaction record, and shall
maintain such photocopy for a period of three (3) years following the transaction.
All photocopies shall at all times during the licensee's business hours be open to
the inspection of members of the city's police department.
6.44.140: REPORTS TO CHIEF OF POLICE:
• A. It shall be the duty of every recyclable metal dealer under this chapter to have
available for delivery to the chief of police, or officer designated by the chief of
police, every business day and before the hour of 12:00 noon, a legible and
correct copy from the register of all recyclable metal received or deposited or
purchased the preceding day in whatever quantity received, including recyclable
metal purchased at wholesale, recyclable metal taken in for sale or possessed on
consignment for sale, and recyclable metal taken in for trade.
B. No recyclable metal dealer shall be required to furnish such description of any
recyclable metals purchased by the recyclable metal dealer from manufacturers,
other retailers or wholesale dealers having an established place of business, or of
any recyclable metal purchased at open sale, or from a bankrupt stock. Such
recyclable metal purchases must be accompanied by a bill of sale or other
evidence of open and legitimate purchase and shall at all times during the
licensee's business hours be open to the inspection of members of the city's
police department
6.44.150: INSPECTION OF PREMISES:
Every recyclable metal dealer under this chapter and every person employed by him or
her in the conduct of business shall admit to any and every part of the premises
designated in the license, during the recyclable metal dealer's business hours, any police
officer of the city to examine any recyclable metal or books or other records on the
premises dealing with purchase or sale of recyclable metal.
6.44.160: WAITING PERIOD:
Every recyclable metal dealer under this chapter shall keep all recyclable metal purchased
or received available for inspection on the licensed premises for a period of ten (10) days
from the date of purchase or receipt. The recyclable metal dealer shall hold such
recyclable metal on the licensed premises for such ten (10)-day period in such a manner
as to be identifiable and separate from recyclable metal obtained in other transactions.
The recyclable metal dealer shall not alter such recyclable metal purchased or received in
any manner during the ten-day waiting period.
6.44.170: VIDEO CAMERA SURVEILLANCE REQUIRED:
Each recyclable metal dealer shall be required to install, operate and maintain a video
camera surveillance system capable of recording clear and unobstructed photographic
representations of the recyclable metal dealer's customers and shall retain the video tape
recordings produced therefrom for at least thirty (30) days. Said video tape recording
shall be subject to inspection and copying by members of the city's police department
during the licensee's business hours.
6.44.180: INVENTORY SYSTEM:
Every recyclable metal dealer shall maintain an inventory system of all recyclable metal
purchased or received in such a manner that members of the city's police department
making an inspection pursuant to this chapter can readily ascertain the identity of such
recyclable metal and readily locate such recyclable metal on the licensed premises.
6.44.190: SUSPENSION OR REVOCATION:
In addition to any other penalty which may be authorized by this Chapter or other city
ordinances, the finance director may suspend or revoke any license issued pursuant to this
Chapter for:
A. Failure of the recyclable metal dealer licensee, its officers, agents or employees to
comply with any provision of this Chapter, any other applicable ordinances, the
laws of the State, federal laws or other applicable legal requirements.
B. Finding that the recyclable metal dealer licensee, its partners, officers or
shareholders have been convicted of any offense set forth in section 6.43.0801) of
this Chapter; or
C. Finding that the recyclable metal dealer licensee, its partners, officers or
shareholders have knowingly furnished false or misleading information or
withheld relevant information on any application for a license required by this
Chapter or any investigation on any application.
The recyclable metal dealer shall be responsible for the acts of its agents; servants and
employees in the operation of the business. Prior to holding a hearing concerning the
question of whether a license shall be revoked or suspended, the finance director shall
give at least ten (10) days' written notice to the recyclable metal dealer setting forth the
alleged violation specifically. The recyclable metal dealer may present evidence and
cross-examine witnesses at such hearing.
6.44.200: SUMMARY SUSPENSION:
Where the finance director presents to the city manager sufficient evidence demonstrating
probable cause to believe that the licensee has violated the provisions of this code or the
laws of the United States or the State, and that said violation will immediately threaten
the public health, safety or welfare, the city manager may, upon the issuance of a written
order stating the reason for such conclusion, and without prior notice or hearing, order the
licensed premises closed and the license summarily suspended pending a public hearing
and determination on suspension or revocation. Such hearing shall be commenced not
more than seven (7) days following entry of such an order, unless the licensee shall agree
to a longer period of time. The procedures for such a hearing or any appeal with respect
thereto shall be as otherwise provided in this chapter. Upon entry of an order of
summary suspension, the licensee shall be served with a copy of the order and notice of
• violation and a hearing in the manner provided by this chapter.
6.44.210: NOTICE OF HEARING:
Except as provided in section 6.43.200 hereof, prior to suspension or revocation of a
license under this chapter, the licensee shall be notified in writing of the nature of the
violation(s) and an opportunity for a hearing will be provided if a written request for a
hearing is filed with the finance director by the holder of the license within ten (10) days.
If a written request is filed within ten (10) days, a hearing date shall be set within ten (10)
days of receipt of the request. If no written request for a hearing is filed within ten (10)
days, the suspension or revocation shall be sustained.
6.44.220: HEARINGS:
As provided in this chapter, a hearing shall be conducted by the finance director or his
designee affording the licensee an opportunity to appear and defend the charges. The
finance director shall make a final decision in writing, including the reasons for such
decision, and shall serve such decision on the licensee within ten (10) days after the
conclusion of the hearing.
•
6.44.230: APPEALS:
A. Any person aggrieved by the action or decision of the city's finance director to
deny, suspend or revoke a license applied for or issued under the provisions of
this chapter shall have the right to appeal such action or decision to the city
manager within ten (10) days after the notice of action or decision has been
mailed to the licensee's address as shown on the license application form, or to
the licensee's last known address.
B. An appeal shall be taken by filing with the city's finance director a written
statement sending forth the grounds for appeal.
C. The city's finance director shall transmit the written statement to the city manager
within ten days of its receipt and the city manager shall set a time and place for a
hearing on the appeal. The city manager may designate an authorized
representative to conduct such hearing.
D. A hearing shall be set not later than twenty (20) days from the date of receipt of
the appellant's written statement.
E. Notice of the time and place of the hearing shall be given to the appellant in the
same manner as provided for the mailing of notice of action decision.
• F. The city manager or the city manager's designee shall serve a decision on the
licensee within ten (10) days after the conclusion of the hearing on such appeal.
6.44.240: PENALTY FOR VIOLATION:
A. Any person violating any of the provisions or failure to comply with any of the
mandatory requirements of this chapter shall be guilty of an offense. Any person
convicted of an offense under this chapter, in addition to other legal and equitable
remedies available to the city, shall be punished by a fine in an amount of not less
than five hundred dollars ($500.00) for each offense.
B. Any person shall be guilty of a separate offense for each and every day during any
portion of which any violation of any provision of this chapter is committed,
continued or permitted by any such person, and he shall be punished accordingly.
C. The levy and/or payment of any payment or fine provided in this chapter shall not
be deemed a waiver of the power of the city to suspend, revoke or to refuse to
renew a license or to refuse to renew a license or to seek injunctive relief to enjoin
violations of this chapter or other applicable provisions of law.
i
•
6.44.250: SEVERABILITY:
If any provision, cause, sentence, paragraph, section or part of this chapter or application
thereof to any person or circumstance, shall or any reason to be adjudged by a court of
competent jurisdiction to be unconstitutional or invalid, said judgment shall not effect,
impair or invalidate the remainder of this chapter and the application of such provision to
other persons or circumstances, but shall be confined in its operation to the provision,
clause, sentence, paragraph, section or part thereof directly involved in the controversy in
which such judgment shall have been rendered and to the person or circumstances
involved. It is hereby declared to be the legislative intent of the city council that this
chapter would have been adopted had such constitutional or invalid provisions, clause,
sentence, paragraph, section or part thereof not been included.
Section 3. That all ordinances or parts of ordinances in conflict with the provisions of this
ordinance be and are hereby repealed.
Section 4. That this ordinance shall be in full force and effect on and after January 1,
2011, upon its passage and publication in the manner provided by law.
Ed Schock, Mayor
• Presented: November 17, 2010 e
Passed: November 17, 2010 �M.SFW
Omnibus Vote: Yeas: 7 Nays: 0 C c��'\w*,
Recorded: November 17 20 �W--
Published: November 19, 2010
Attest:
Diane Robertson, City Cl rk
•