Sen. Jil Tracy

Filed: 3/10/2017

 

 


 

 


 
10000SB1755sam003LRB100 09574 AXK 23380 a

1
AMENDMENT TO SENATE BILL 1755

2    AMENDMENT NO. ______. Amend Senate Bill 1755, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Vehicle Code is amended by
6changing Sections 5-101 and 5-102 as follows:
 
7    (625 ILCS 5/5-101)  (from Ch. 95 1/2, par. 5-101)
8    Sec. 5-101. New vehicle dealers must be licensed.
9    (a) No person shall engage in this State in the business of
10selling or dealing in, on consignment or otherwise, new
11vehicles of any make, or act as an intermediary or agent or
12broker for any licensed dealer or vehicle purchaser other than
13as a salesperson, or represent or advertise that he is so
14engaged or intends to so engage in such business unless
15licensed to do so in writing by the Secretary of State under
16the provisions of this Section.

 

 

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1    (b) An application for a new vehicle dealer's license shall
2be filed with the Secretary of State, duly verified by oath, on
3such form as the Secretary of State may by rule or regulation
4prescribe and shall contain:
5        1. The name and type of business organization of the
6    applicant and his established and additional places of
7    business, if any, in this State.
8        2. If the applicant is a corporation, a list of its
9    officers, directors, and shareholders having a ten percent
10    or greater ownership interest in the corporation, setting
11    forth the residence address of each; if the applicant is a
12    sole proprietorship, a partnership, an unincorporated
13    association, a trust, or any similar form of business
14    organization, the name and residence address of the
15    proprietor or of each partner, member, officer, director,
16    trustee, or manager.
17        3. The make or makes of new vehicles which the
18    applicant will offer for sale at retail in this State.
19        4. The name of each manufacturer or franchised
20    distributor, if any, of new vehicles with whom the
21    applicant has contracted for the sale of such new vehicles.
22    As evidence of this fact, the application shall be
23    accompanied by a signed statement from each such
24    manufacturer or franchised distributor. If the applicant
25    is in the business of offering for sale new conversion
26    vehicles, trucks or vans, except for trucks modified to

 

 

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1    serve a special purpose which includes but is not limited
2    to the following vehicles: street sweepers, fertilizer
3    spreaders, emergency vehicles, implements of husbandry or
4    maintenance type vehicles, he must furnish evidence of a
5    sales and service agreement from both the chassis
6    manufacturer and second stage manufacturer.
7        5. A statement that the applicant has been approved for
8    registration under the Retailers' Occupation Tax Act by the
9    Department of Revenue: Provided that this requirement does
10    not apply to a dealer who is already licensed hereunder
11    with the Secretary of State, and who is merely applying for
12    a renewal of his license. As evidence of this fact, the
13    application shall be accompanied by a certification from
14    the Department of Revenue showing that that Department has
15    approved the applicant for registration under the
16    Retailers' Occupation Tax Act.
17        6. A statement that the applicant has complied with the
18    appropriate liability insurance requirement. A Certificate
19    of Insurance in a solvent company authorized to do business
20    in the State of Illinois shall be included with each
21    application covering each location at which he proposes to
22    act as a new vehicle dealer. The policy must provide
23    liability coverage in the minimum amounts of $100,000 for
24    bodily injury to, or death of, any person, $300,000 for
25    bodily injury to, or death of, two or more persons in any
26    one accident, and $50,000 for damage to property. Such

 

 

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1    policy shall expire not sooner than December 31 of the year
2    for which the license was issued or renewed. The expiration
3    of the insurance policy shall not terminate the liability
4    under the policy arising during the period for which the
5    policy was filed. Trailer and mobile home dealers are
6    exempt from this requirement.
7        If the permitted user has a liability insurance policy
8    that provides automobile liability insurance coverage of
9    at least $100,000 for bodily injury to or the death of any
10    person, $300,000 for bodily injury to or the death of any 2
11    or more persons in any one accident, and $50,000 for damage
12    to property, then the permitted user's insurer shall be the
13    primary insurer and the dealer's insurer shall be the
14    secondary insurer. If the permitted user does not have a
15    liability insurance policy that provides automobile
16    liability insurance coverage of at least $100,000 for
17    bodily injury to or the death of any person, $300,000 for
18    bodily injury to or the death of any 2 or more persons in
19    any one accident, and $50,000 for damage to property, or
20    does not have any insurance at all, then the dealer's
21    insurer shall be the primary insurer and the permitted
22    user's insurer shall be the secondary insurer.
23        When a permitted user is "test driving" a new vehicle
24    dealer's automobile, the new vehicle dealer's insurance
25    shall be primary and the permitted user's insurance shall
26    be secondary.

 

 

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1        As used in this paragraph 6, a "permitted user" is a
2    person who, with the permission of the new vehicle dealer
3    or an employee of the new vehicle dealer, drives a vehicle
4    owned and held for sale or lease by the new vehicle dealer
5    which the person is considering to purchase or lease, in
6    order to evaluate the performance, reliability, or
7    condition of the vehicle. The term "permitted user" also
8    includes a person who, with the permission of the new
9    vehicle dealer, drives a vehicle owned or held for sale or
10    lease by the new vehicle dealer for loaner purposes while
11    the user's vehicle is being repaired or evaluated.
12        As used in this paragraph 6, "test driving" occurs when
13    a permitted user who, with the permission of the new
14    vehicle dealer or an employee of the new vehicle dealer,
15    drives a vehicle owned and held for sale or lease by a new
16    vehicle dealer that the person is considering to purchase
17    or lease, in order to evaluate the performance,
18    reliability, or condition of the vehicle.
19        As used in this paragraph 6, "loaner purposes" means
20    when a person who, with the permission of the new vehicle
21    dealer, drives a vehicle owned or held for sale or lease by
22    the new vehicle dealer while the user's vehicle is being
23    repaired or evaluated.
24        7. (A) An application for a new motor vehicle dealer's
25    license shall be accompanied by the following license fees:
26            (i) $1,000 for applicant's established place of

 

 

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1        business, and $100 for each additional place of
2        business, if any, to which the application pertains;
3        but if the application is made after June 15 of any
4        year, the license fee shall be $500 for applicant's
5        established place of business plus $50 for each
6        additional place of business, if any, to which the
7        application pertains. License fees shall be returnable
8        only in the event that the application is denied by the
9        Secretary of State. All moneys received by the
10        Secretary of State as license fees under this
11        subparagraph (i) prior to applications for the 2004
12        licensing year shall be deposited into the Motor
13        Vehicle Review Board Fund and shall be used to
14        administer the Motor Vehicle Review Board under the
15        Motor Vehicle Franchise Act. Of the money received by
16        the Secretary of State as license fees under this
17        subparagraph (i) for the 2004 licensing year and
18        thereafter, 10% shall be deposited into the Motor
19        Vehicle Review Board Fund and shall be used to
20        administer the Motor Vehicle Review Board under the
21        Motor Vehicle Franchise Act and 90% shall be deposited
22        into the General Revenue Fund.
23            (ii) Except for dealers selling 25 or fewer
24        automobiles or as provided in subsection (h) of Section
25        5-102.7 of this Code, an Annual Dealer Recovery Fund
26        Fee in the amount of $500 for the applicant's

 

 

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1        established place of business, and $50 for each
2        additional place of business, if any, to which the
3        application pertains; but if the application is made
4        after June 15 of any year, the fee shall be $250 for
5        the applicant's established place of business plus $25
6        for each additional place of business, if any, to which
7        the application pertains. For a license renewal
8        application, the fee shall be based on the amount of
9        automobiles sold in the past year according to the
10        following formula:
11                (1) $0 for dealers selling 25 or less
12            automobiles;
13                (2) $150 for dealers selling more than 25 but
14            less than 200 automobiles;
15                (3) $300 for dealers selling 200 or more
16            automobiles but less than 300 automobiles; and
17                (4) $500 for dealers selling 300 or more
18            automobiles.
19            License fees shall be returnable only in the event
20        that the application is denied by the Secretary of
21        State. Moneys received under this subparagraph (ii)
22        shall be deposited into the Dealer Recovery Trust Fund.
23        (B) An application for a new vehicle dealer's license,
24    other than for a new motor vehicle dealer's license, shall
25    be accompanied by the following license fees:
26            (i) $1,000 for applicant's established place of

 

 

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1        business, and $50 for each additional place of
2        business, if any, to which the application pertains;
3        but if the application is made after June 15 of any
4        year, the license fee shall be $500 for applicant's
5        established place of business plus $25 for each
6        additional place of business, if any, to which the
7        application pertains. License fees shall be returnable
8        only in the event that the application is denied by the
9        Secretary of State. Of the money received by the
10        Secretary of State as license fees under this
11        subparagraph (i) for the 2004 licensing year and
12        thereafter, 95% shall be deposited into the General
13        Revenue Fund.
14            (ii) Except as provided in subsection (h) of
15        Section 5-102.7 of this Code, an Annual Dealer Recovery
16        Fund Fee in the amount of $500 for the applicant's
17        established place of business, and $50 for each
18        additional place of business, if any, to which the
19        application pertains; but if the application is made
20        after June 15 of any year, the fee shall be $250 for
21        the applicant's established place of business plus $25
22        for each additional place of business, if any, to which
23        the application pertains. License fees shall be
24        returnable only in the event that the application is
25        denied by the Secretary of State. Moneys received under
26        this subparagraph (ii) shall be deposited into the

 

 

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1        Dealer Recovery Trust Fund.
2        8. A statement that the applicant's officers,
3    directors, shareholders having a 10% or greater ownership
4    interest therein, proprietor, a partner, member, officer,
5    director, trustee, manager or other principals in the
6    business have not committed in the past 3 years any one
7    violation as determined in any civil, criminal or
8    administrative proceedings of any one of the following
9    Acts:
10            (A) The Anti-Theft Laws of the Illinois Vehicle
11        Code;
12            (B) The Certificate of Title Laws of the Illinois
13        Vehicle Code;
14            (C) The Offenses against Registration and
15        Certificates of Title Laws of the Illinois Vehicle
16        Code;
17            (D) The Dealers, Transporters, Wreckers and
18        Rebuilders Laws of the Illinois Vehicle Code;
19            (E) Section 21-2 of the Criminal Code of 1961 or
20        the Criminal Code of 2012, Criminal Trespass to
21        Vehicles; or
22            (F) The Retailers' Occupation Tax Act.
23        9. A statement that the applicant's officers,
24    directors, shareholders having a 10% or greater ownership
25    interest therein, proprietor, partner, member, officer,
26    director, trustee, manager or other principals in the

 

 

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1    business have not committed in any calendar year 3 or more
2    violations, as determined in any civil, criminal or
3    administrative proceedings, of any one or more of the
4    following Acts:
5            (A) The Consumer Finance Act;
6            (B) The Consumer Installment Loan Act;
7            (C) The Retail Installment Sales Act;
8            (D) The Motor Vehicle Retail Installment Sales
9        Act;
10            (E) The Interest Act;
11            (F) The Illinois Wage Assignment Act;
12            (G) Part 8 of Article XII of the Code of Civil
13        Procedure; or
14            (H) The Consumer Fraud Act.
15        10. A bond or certificate of deposit in the amount of
16    $20,000 for each location at which the applicant intends to
17    act as a new vehicle dealer. The bond shall be for the term
18    of the license, or its renewal, for which application is
19    made, and shall expire not sooner than December 31 of the
20    year for which the license was issued or renewed. The bond
21    shall run to the People of the State of Illinois, with
22    surety by a bonding or insurance company authorized to do
23    business in this State. It shall be conditioned upon the
24    proper transmittal of all title and registration fees and
25    taxes (excluding taxes under the Retailers' Occupation Tax
26    Act) accepted by the applicant as a new vehicle dealer.

 

 

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1        11. Such other information concerning the business of
2    the applicant as the Secretary of State may by rule or
3    regulation prescribe.
4        12. A statement that the applicant understands Chapter
5    1 through Chapter 5 of this Code.
6    (c) Any change which renders no longer accurate any
7information contained in any application for a new vehicle
8dealer's license shall be amended within 30 days after the
9occurrence of such change on such form as the Secretary of
10State may prescribe by rule or regulation, accompanied by an
11amendatory fee of $2.
12    (d) Anything in this Chapter 5 to the contrary
13notwithstanding no person shall be licensed as a new vehicle
14dealer unless:
15        1. He is authorized by contract in writing between
16    himself and the manufacturer or franchised distributor of
17    such make of vehicle to so sell the same in this State, and
18        2. Such person shall maintain an established place of
19    business as defined in this Act.
20    (e) The Secretary of State shall, within a reasonable time
21after receipt, examine an application submitted to him under
22this Section and unless he makes a determination that the
23application submitted to him does not conform with the
24requirements of this Section or that grounds exist for a denial
25of the application, under Section 5-501 of this Chapter, grant
26the applicant an original new vehicle dealer's license in

 

 

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1writing for his established place of business and a
2supplemental license in writing for each additional place of
3business in such form as he may prescribe by rule or regulation
4which shall include the following:
5        1. The name of the person licensed;
6        2. If a corporation, the name and address of its
7    officers or if a sole proprietorship, a partnership, an
8    unincorporated association or any similar form of business
9    organization, the name and address of the proprietor or of
10    each partner, member, officer, director, trustee or
11    manager;
12        3. In the case of an original license, the established
13    place of business of the licensee;
14        4. In the case of a supplemental license, the
15    established place of business of the licensee and the
16    additional place of business to which such supplemental
17    license pertains;
18        5. The make or makes of new vehicles which the licensee
19    is licensed to sell.
20    (f) The appropriate instrument evidencing the license or a
21certified copy thereof, provided by the Secretary of State,
22shall be kept posted conspicuously in the established place of
23business of the licensee and in each additional place of
24business, if any, maintained by such licensee.
25    (g) Except as provided in subsection (h) hereof, all new
26vehicle dealer's licenses granted under this Section shall

 

 

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1expire by operation of law on December 31 of the calendar year
2for which they are granted unless sooner revoked or cancelled
3under the provisions of Section 5-501 of this Chapter.
4    (h) A new vehicle dealer's license may be renewed upon
5application and payment of the fee required herein, and
6submission of proof of coverage under an approved bond under
7the Retailers' Occupation Tax Act or proof that applicant is
8not subject to such bonding requirements, as in the case of an
9original license, but in case an application for the renewal of
10an effective license is made during the month of December, the
11effective license shall remain in force until the application
12is granted or denied by the Secretary of State.
13    (i) All persons licensed as a new vehicle dealer are
14required to furnish each purchaser of a motor vehicle:
15        1. In the case of a new vehicle a manufacturer's
16    statement of origin and in the case of a used motor vehicle
17    a certificate of title, in either case properly assigned to
18    the purchaser;
19        2. A statement verified under oath that all identifying
20    numbers on the vehicle agree with those on the certificate
21    of title or manufacturer's statement of origin;
22        3. A bill of sale properly executed on behalf of such
23    person;
24        4. A copy of the Uniform Invoice-transaction reporting
25    return referred to in Section 5-402 hereof;
26        5. In the case of a rebuilt vehicle, a copy of the

 

 

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1    Disclosure of Rebuilt Vehicle Status; and
2        6. In the case of a vehicle for which the warranty has
3    been reinstated, a copy of the warranty.
4    (i-5) A person licensed as a new vehicle dealer shall make
5a record of when a permitted user is test driving a vehicle. A
6permitted user shall be liable for any citation issued for a
7violation of a traffic regulation, any fines relating to the
8citation, toll charges, or accidents that occur while test
9driving the vehicle.
10    For purposes of this subsection (i-5), "permitted user" and
11"test driving" have the meanings ascribed to those terms under
12paragraph 6 of subsection (b) of this Section.
13    (j) Except at the time of sale or repossession of the
14vehicle, no person licensed as a new vehicle dealer may issue
15any other person a newly created key to a vehicle unless the
16new vehicle dealer makes a copy of the driver's license or
17State identification card of the person requesting or obtaining
18the newly created key. The new vehicle dealer must retain the
19copy for 30 days.
20    A new vehicle dealer who violates this subsection (j) is
21guilty of a petty offense. Violation of this subsection (j) is
22not cause to suspend, revoke, cancel, or deny renewal of the
23new vehicle dealer's license.
24    This amendatory Act of 1983 shall be applicable to the 1984
25registration year and thereafter.
26    (j-5) A person licensed as a new vehicle dealer shall make

 

 

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1a report to a local law enforcement agency upon discovery of
2any registration plates stolen off the premises where motor
3vehicles are being offered for sale or lease. If a new vehicle
4dealer reports the stolen registration plates as required under
5this subsection (j-5), the dealer shall not be liable for any
6citation issued for a violation of a traffic regulation, any
7fines relating to the citation, toll charges, or accidents
8involving a motor vehicle bearing the stolen registration
9plates, or a motor vehicle bearing expired registration plates
10and being operated by a person without the approval of the new
11vehicle dealer, that occur before or after the report is made.
12(Source: P.A. 98-450, eff. 1-1-14; 99-78, eff. 7-20-15.)
 
13    (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)
14    Sec. 5-102. Used vehicle dealers must be licensed.
15    (a) No person, other than a licensed new vehicle dealer,
16shall engage in the business of selling or dealing in, on
17consignment or otherwise, 5 or more used vehicles of any make
18during the year (except house trailers as authorized by
19paragraph (j) of this Section and rebuilt salvage vehicles sold
20by their rebuilders to persons licensed under this Chapter), or
21act as an intermediary, agent or broker for any licensed dealer
22or vehicle purchaser (other than as a salesperson) or represent
23or advertise that he is so engaged or intends to so engage in
24such business unless licensed to do so by the Secretary of
25State under the provisions of this Section.

 

 

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1    (b) An application for a used vehicle dealer's license
2shall be filed with the Secretary of State, duly verified by
3oath, in such form as the Secretary of State may by rule or
4regulation prescribe and shall contain:
5        1. The name and type of business organization
6    established and additional places of business, if any, in
7    this State.
8        2. If the applicant is a corporation, a list of its
9    officers, directors, and shareholders having a ten percent
10    or greater ownership interest in the corporation, setting
11    forth the residence address of each; if the applicant is a
12    sole proprietorship, a partnership, an unincorporated
13    association, a trust, or any similar form of business
14    organization, the names and residence address of the
15    proprietor or of each partner, member, officer, director,
16    trustee or manager.
17        3. A statement that the applicant has been approved for
18    registration under the Retailers' Occupation Tax Act by the
19    Department of Revenue. However, this requirement does not
20    apply to a dealer who is already licensed hereunder with
21    the Secretary of State, and who is merely applying for a
22    renewal of his license. As evidence of this fact, the
23    application shall be accompanied by a certification from
24    the Department of Revenue showing that the Department has
25    approved the applicant for registration under the
26    Retailers' Occupation Tax Act.

 

 

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1        4. A statement that the applicant has complied with the
2    appropriate liability insurance requirement. A Certificate
3    of Insurance in a solvent company authorized to do business
4    in the State of Illinois shall be included with each
5    application covering each location at which he proposes to
6    act as a used vehicle dealer. The policy must provide
7    liability coverage in the minimum amounts of $100,000 for
8    bodily injury to, or death of, any person, $300,000 for
9    bodily injury to, or death of, two or more persons in any
10    one accident, and $50,000 for damage to property. Such
11    policy shall expire not sooner than December 31 of the year
12    for which the license was issued or renewed. The expiration
13    of the insurance policy shall not terminate the liability
14    under the policy arising during the period for which the
15    policy was filed. Trailer and mobile home dealers are
16    exempt from this requirement.
17        If the permitted user has a liability insurance policy
18    that provides automobile liability insurance coverage of
19    at least $100,000 for bodily injury to or the death of any
20    person, $300,000 for bodily injury to or the death of any 2
21    or more persons in any one accident, and $50,000 for damage
22    to property, then the permitted user's insurer shall be the
23    primary insurer and the dealer's insurer shall be the
24    secondary insurer. If the permitted user does not have a
25    liability insurance policy that provides automobile
26    liability insurance coverage of at least $100,000 for

 

 

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1    bodily injury to or the death of any person, $300,000 for
2    bodily injury to or the death of any 2 or more persons in
3    any one accident, and $50,000 for damage to property, or
4    does not have any insurance at all, then the dealer's
5    insurer shall be the primary insurer and the permitted
6    user's insurer shall be the secondary insurer.
7        When a permitted user is "test driving" a used vehicle
8    dealer's automobile, the used vehicle dealer's insurance
9    shall be primary and the permitted user's insurance shall
10    be secondary.
11        As used in this paragraph 4, a "permitted user" is a
12    person who, with the permission of the used vehicle dealer
13    or an employee of the used vehicle dealer, drives a vehicle
14    owned and held for sale or lease by the used vehicle dealer
15    which the person is considering to purchase or lease, in
16    order to evaluate the performance, reliability, or
17    condition of the vehicle. The term "permitted user" also
18    includes a person who, with the permission of the used
19    vehicle dealer, drives a vehicle owned or held for sale or
20    lease by the used vehicle dealer for loaner purposes while
21    the user's vehicle is being repaired or evaluated.
22        As used in this paragraph 4, "test driving" occurs when
23    a permitted user who, with the permission of the used
24    vehicle dealer or an employee of the used vehicle dealer,
25    drives a vehicle owned and held for sale or lease by a used
26    vehicle dealer that the person is considering to purchase

 

 

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1    or lease, in order to evaluate the performance,
2    reliability, or condition of the vehicle.
3        As used in this paragraph 4, "loaner purposes" means
4    when a person who, with the permission of the used vehicle
5    dealer, drives a vehicle owned or held for sale or lease by
6    the used vehicle dealer while the user's vehicle is being
7    repaired or evaluated.
8        5. An application for a used vehicle dealer's license
9    shall be accompanied by the following license fees:
10            (A) $1,000 for applicant's established place of
11        business, and $50 for each additional place of
12        business, if any, to which the application pertains;
13        however, if the application is made after June 15 of
14        any year, the license fee shall be $500 for applicant's
15        established place of business plus $25 for each
16        additional place of business, if any, to which the
17        application pertains. License fees shall be returnable
18        only in the event that the application is denied by the
19        Secretary of State. Of the money received by the
20        Secretary of State as license fees under this
21        subparagraph (A) for the 2004 licensing year and
22        thereafter, 95% shall be deposited into the General
23        Revenue Fund.
24            (B) Except for dealers selling 25 or fewer
25        automobiles or as provided in subsection (h) of Section
26        5-102.7 of this Code, an Annual Dealer Recovery Fund

 

 

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1        Fee in the amount of $500 for the applicant's
2        established place of business, and $50 for each
3        additional place of business, if any, to which the
4        application pertains; but if the application is made
5        after June 15 of any year, the fee shall be $250 for
6        the applicant's established place of business plus $25
7        for each additional place of business, if any, to which
8        the application pertains. For a license renewal
9        application, the fee shall be based on the amount of
10        automobiles sold in the past year according to the
11        following formula:
12                (1) $0 for dealers selling 25 or less
13            automobiles;
14                (2) $150 for dealers selling more than 25 but
15            less than 200 automobiles;
16                (3) $300 for dealers selling 200 or more
17            automobiles but less than 300 automobiles; and
18                (4) $500 for dealers selling 300 or more
19            automobiles.
20            License fees shall be returnable only in the event
21        that the application is denied by the Secretary of
22        State. Moneys received under this subparagraph (B)
23        shall be deposited into the Dealer Recovery Trust Fund.
24        6. A statement that the applicant's officers,
25    directors, shareholders having a 10% or greater ownership
26    interest therein, proprietor, partner, member, officer,

 

 

10000SB1755sam003- 21 -LRB100 09574 AXK 23380 a

1    director, trustee, manager or other principals in the
2    business have not committed in the past 3 years any one
3    violation as determined in any civil, criminal or
4    administrative proceedings of any one of the following
5    Acts:
6            (A) The Anti-Theft Laws of the Illinois Vehicle
7        Code;
8            (B) The Certificate of Title Laws of the Illinois
9        Vehicle Code;
10            (C) The Offenses against Registration and
11        Certificates of Title Laws of the Illinois Vehicle
12        Code;
13            (D) The Dealers, Transporters, Wreckers and
14        Rebuilders Laws of the Illinois Vehicle Code;
15            (E) Section 21-2 of the Illinois Criminal Code of
16        1961 or the Criminal Code of 2012, Criminal Trespass to
17        Vehicles; or
18            (F) The Retailers' Occupation Tax Act.
19        7. A statement that the applicant's officers,
20    directors, shareholders having a 10% or greater ownership
21    interest therein, proprietor, partner, member, officer,
22    director, trustee, manager or other principals in the
23    business have not committed in any calendar year 3 or more
24    violations, as determined in any civil or criminal or
25    administrative proceedings, of any one or more of the
26    following Acts:

 

 

10000SB1755sam003- 22 -LRB100 09574 AXK 23380 a

1            (A) The Consumer Finance Act;
2            (B) The Consumer Installment Loan Act;
3            (C) The Retail Installment Sales Act;
4            (D) The Motor Vehicle Retail Installment Sales
5        Act;
6            (E) The Interest Act;
7            (F) The Illinois Wage Assignment Act;
8            (G) Part 8 of Article XII of the Code of Civil
9        Procedure; or
10            (H) The Consumer Fraud Act.
11        8. A bond or Certificate of Deposit in the amount of
12    $20,000 for each location at which the applicant intends to
13    act as a used vehicle dealer. The bond shall be for the
14    term of the license, or its renewal, for which application
15    is made, and shall expire not sooner than December 31 of
16    the year for which the license was issued or renewed. The
17    bond shall run to the People of the State of Illinois, with
18    surety by a bonding or insurance company authorized to do
19    business in this State. It shall be conditioned upon the
20    proper transmittal of all title and registration fees and
21    taxes (excluding taxes under the Retailers' Occupation Tax
22    Act) accepted by the applicant as a used vehicle dealer.
23        9. Such other information concerning the business of
24    the applicant as the Secretary of State may by rule or
25    regulation prescribe.
26        10. A statement that the applicant understands Chapter

 

 

10000SB1755sam003- 23 -LRB100 09574 AXK 23380 a

1    1 through Chapter 5 of this Code.
2        11. A copy of the certification from the prelicensing
3    education program.
4    (c) Any change which renders no longer accurate any
5information contained in any application for a used vehicle
6dealer's license shall be amended within 30 days after the
7occurrence of each change on such form as the Secretary of
8State may prescribe by rule or regulation, accompanied by an
9amendatory fee of $2.
10    (d) Anything in this Chapter to the contrary
11notwithstanding, no person shall be licensed as a used vehicle
12dealer unless such person maintains an established place of
13business as defined in this Chapter.
14    (e) The Secretary of State shall, within a reasonable time
15after receipt, examine an application submitted to him under
16this Section. Unless the Secretary makes a determination that
17the application submitted to him does not conform to this
18Section or that grounds exist for a denial of the application
19under Section 5-501 of this Chapter, he must grant the
20applicant an original used vehicle dealer's license in writing
21for his established place of business and a supplemental
22license in writing for each additional place of business in
23such form as he may prescribe by rule or regulation which shall
24include the following:
25        1. The name of the person licensed;
26        2. If a corporation, the name and address of its

 

 

10000SB1755sam003- 24 -LRB100 09574 AXK 23380 a

1    officers or if a sole proprietorship, a partnership, an
2    unincorporated association or any similar form of business
3    organization, the name and address of the proprietor or of
4    each partner, member, officer, director, trustee or
5    manager;
6        3. In case of an original license, the established
7    place of business of the licensee;
8        4. In the case of a supplemental license, the
9    established place of business of the licensee and the
10    additional place of business to which such supplemental
11    license pertains.
12    (f) The appropriate instrument evidencing the license or a
13certified copy thereof, provided by the Secretary of State
14shall be kept posted, conspicuously, in the established place
15of business of the licensee and in each additional place of
16business, if any, maintained by such licensee.
17    (g) Except as provided in subsection (h) of this Section,
18all used vehicle dealer's licenses granted under this Section
19expire by operation of law on December 31 of the calendar year
20for which they are granted unless sooner revoked or cancelled
21under Section 5-501 of this Chapter.
22    (h) A used vehicle dealer's license may be renewed upon
23application and payment of the fee required herein, and
24submission of proof of coverage by an approved bond under the
25"Retailers' Occupation Tax Act" or proof that applicant is not
26subject to such bonding requirements, as in the case of an

 

 

10000SB1755sam003- 25 -LRB100 09574 AXK 23380 a

1original license, but in case an application for the renewal of
2an effective license is made during the month of December, the
3effective license shall remain in force until the application
4for renewal is granted or denied by the Secretary of State.
5    (i) All persons licensed as a used vehicle dealer are
6required to furnish each purchaser of a motor vehicle:
7        1. A certificate of title properly assigned to the
8    purchaser;
9        2. A statement verified under oath that all identifying
10    numbers on the vehicle agree with those on the certificate
11    of title;
12        3. A bill of sale properly executed on behalf of such
13    person;
14        4. A copy of the Uniform Invoice-transaction reporting
15    return referred to in Section 5-402 of this Chapter;
16        5. In the case of a rebuilt vehicle, a copy of the
17    Disclosure of Rebuilt Vehicle Status; and
18        6. In the case of a vehicle for which the warranty has
19    been reinstated, a copy of the warranty.
20    (j) A real estate broker holding a valid certificate of
21registration issued pursuant to "The Real Estate Brokers and
22Salesmen License Act" may engage in the business of selling or
23dealing in house trailers not his own without being licensed as
24a used vehicle dealer under this Section; however such broker
25shall maintain a record of the transaction including the
26following:

 

 

10000SB1755sam003- 26 -LRB100 09574 AXK 23380 a

1        (1) the name and address of the buyer and seller,
2        (2) the date of sale,
3        (3) a description of the mobile home, including the
4    vehicle identification number, make, model, and year, and
5        (4) the Illinois certificate of title number.
6    The foregoing records shall be available for inspection by
7any officer of the Secretary of State's Office at any
8reasonable hour.
9    (k) Except at the time of sale or repossession of the
10vehicle, no person licensed as a used vehicle dealer may issue
11any other person a newly created key to a vehicle unless the
12used vehicle dealer makes a copy of the driver's license or
13State identification card of the person requesting or obtaining
14the newly created key. The used vehicle dealer must retain the
15copy for 30 days.
16    A used vehicle dealer who violates this subsection (k) is
17guilty of a petty offense. Violation of this subsection (k) is
18not cause to suspend, revoke, cancel, or deny renewal of the
19used vehicle dealer's license.
20    (k-5) A person licensed as a used vehicle dealer shall make
21a record of when a permitted user is test driving a vehicle. A
22permitted user shall be liable for any citation issued for a
23violation of a traffic regulation, any fines relating to the
24citation, toll charges, or accidents that occur while test
25driving the vehicle.
26    For purposes of this subsection (k-5), "permitted user" and

 

 

10000SB1755sam003- 27 -LRB100 09574 AXK 23380 a

1"test driving" have the meanings ascribed to those terms under
2paragraph 4 of subsection (b) of this Section.
3    (k-7) A person licensed as a used vehicle dealer shall make
4a report to a local law enforcement agency upon discovery of
5any registration plates stolen off the premises where the motor
6vehicle is being offered for sale or lease. If a used vehicle
7dealer reports the stolen registration plates as required under
8this subsection (k-7), the dealer shall not be liable for any
9citation issued for a violation of a traffic regulation, any
10fines relating to the citation, toll charges, or accidents
11involving a motor vehicle bearing the stolen registration
12plates, or a motor vehicle bearing expired registration plates
13and being operated by a person without the approval of the used
14vehicle dealer, that occur before or after the report is made.
15    (l) Used vehicle dealers licensed under this Section shall
16provide the Secretary of State a register for the sale at
17auction of each salvage or junk certificate vehicle. Each
18register shall include the following information:
19        1. The year, make, model, style and color of the
20    vehicle;
21        2. The vehicle's manufacturer's identification number
22    or, if applicable, the Secretary of State or Illinois
23    Department of State Police identification number;
24        3. The date of acquisition of the vehicle;
25        4. The name and address of the person from whom the
26    vehicle was acquired;

 

 

10000SB1755sam003- 28 -LRB100 09574 AXK 23380 a

1        5. The name and address of the person to whom any
2    vehicle was disposed, the person's Illinois license number
3    or if the person is an out-of-state salvage vehicle buyer,
4    the license number from the state or jurisdiction where the
5    buyer is licensed; and
6        6. The purchase price of the vehicle.
7    The register shall be submitted to the Secretary of State
8via written or electronic means within 10 calendar days from
9the date of the auction.
10(Source: P.A. 98-450, eff. 1-1-14; 99-78, eff. 7-20-15.)".