Bartlett trustees to vote on regulations on gold dealers

While meeting as a committee of the whole Tuesday, Bartlett trustees were presented with a proposed ordinance that would impose regulations on village businesses that buy items of jewelry or gold.

Bartlett police Chief Kent Williams, who presented the ordinance, said shortly after the economic downturn there was an influx of new businesses — commonly referred to as “Cash for Gold” outlets — that buy “precious-metal scrap” without recording sellers' identities or the items bought.

The no-questions-asked business model that many of the businesses use, he said, may unintentionally encourage people in desperate circumstances to commit theft and burglaries so they have items to sell for quick money.

The ordinance would require precious-metal dealers and pawnbrokers, as well as dealers of second-hand articles who purchase “precious-metal scrap,” to take digital photos of all the items they buy and keep a record of each seller's identity. The information would be turned over to police on the day of the sale and entered into a database shared with other municipalities.

The businesses would also be required to hold the items they sell for a seven-day period to allow for a police examination to ensure they are not evidence to a crime.

Village attorney Bryan Mraz said the ordinance would not apply to items of gold that are used for investment purposes, such as bullion.

“That would be onerous to make them (the business owners) hold that,” he said, adding that it is important for those goods to be sold in a timely manner because of the market. “What we're talking about are things that are more likely to be proceeds of a burglary, things like gold jewelry, that we're identifying so we know where it came from.

“Because of the registry the police department has, they can look at the items and see if it matches up with the report of a burglary in Bartlett or somewhere else.”

Williams said three businesses in Bartlett — including Bartlett Coin Shop in the village's downtown area and two outlet-style stores — would be affected by the ordinance. He said he knew neighboring communities that are considering or have already adopted similar ordinances but did not list them.

“Police departments all across the country are working with their village boards to try to get this ordinance going because there are no state laws that have caught up to the dilemma,” he said.

“It will eventually have to be the law of the land simply because it is a loophole,” he added. “We have to close that up, and this is our attempt to do that.”

If the ordinance passes, police would also encourage the owners to file a report of suspicious behavior if customers are ready to quickly sell jewelry but refuse to give identification.

The village board is expected to vote on the ordinance next month.