(625 ILCS 5/5-102.7) Sec. 5-102.7. Dealer Recovery Trust Fund. (a) The General Assembly finds that motor vehicle dealers that go out of business without fulfilling agreements to pay off the balance of their customers' liens on traded-in vehicles cause financial harm to those customers by leaving those customers liable for multiple vehicle loans and cause harm to the integrity of the motor vehicle retailing industry. It is the intent of the General Assembly to protect vehicle purchasers by creating a Dealer Recovery Trust Fund to reimburse these consumers. (b) The Dealer Recovery Trust Fund shall be used solely for the limited purpose of
helping victims of dealership closings. Any interest accrued by moneys in the Fund shall be
deposited and become part of the Dealer Recovery Trust Fund and its purpose. The sole beneficiaries of the Dealer Recovery Trust Fund are victims of
dealership closings. (c) Except where the context otherwise requires, the following words and phrases, when used in this Section, have the meanings ascribed to them in this subsection (c): "Applicant" means a person who applies for reimbursement from the Dealer Recovery Trust Fund Board. "Board" means the Dealer Recovery Trust Fund Board created under this Section. "Dealer" means a new vehicle dealer licensed under Section 5-101, a used vehicle dealer licensed under Section 5-102, or a Buy Here, Pay Here used vehicle dealer licensed under 5-102.8, excepting a dealer who primarily sells mobile homes, recreational vehicles, or trailers. "Fund" means the Dealer Recovery Trust Fund created under this Section. "Fund Administrator" means the private entity, which shall be appointed by the Board, that administers the Dealer Recovery Trust Fund. (d) Beginning October 1, 2011, each application or renewal for a new vehicle dealer's license and each application or renewal for a Buy Here, Pay Here used vehicle dealer licensed under 5-102.8 or a used vehicle dealer's license shall be accompanied by the applicable Annual Dealer Recovery Fund Fee under Section 5-101 or 5-102 of this Code. The fee shall be in addition to any other fees imposed under this Article, shall be submitted at the same time an application or renewal for a new vehicle dealer's license, used vehicle dealer's license, or Buy Here, Pay Here used vehicle dealer is submitted, and shall be made payable to and remitted directly to the Dealer Recovery Trust Fund, a trust fund outside of the State Treasury which is hereby created. In addition, the Dealer Recovery Trust Fund may accept any federal, State, or private moneys for deposit into the Fund. (e) The Fund Administrator shall maintain a list of all dealers who have paid the fee under subsection (d) of this Section for the current year, which shall be available to the Secretary of State and the Board. The Secretary of State shall revoke the dealer license of any dealer who does not pay the fee imposed under subsection (d) of this Section. The Secretary of State and the Fund Administrator may enter into information sharing agreements as needed to implement this Section. (f) The Fund shall be audited annually by an independent auditor who is a certified public accountant and who has been selected by the Board. The independent auditor shall compile an annual report, which shall be filed with the Board and shall be a public record. The auditor shall be paid by the Fund, pursuant to an order of the Board. (g) The Fund shall be maintained by the Fund Administrator, who shall keep current records of the amounts deposited into the Fund and the amounts paid out of the Fund pursuant to an order of the Board. These records shall be made available to all members of the Board upon reasonable request during normal business hours. The Fund Administrator shall report the balance in the Fund to the Board monthly, by the 15th day of each month. For purposes of determining the amount available to pay claims under this Section at any meeting of the Board, the Board shall use the Fund Administrator's most recent monthly report. The Fund Administrator shall purchase liability insurance to cover management of the Fund at a cost not to exceed 2% of the balance in the Fund as of January 15th of that year. (h) In any year for which the balance in the Fund as of August 31st is greater than $3,500,000, the Fund Administrator shall notify the Secretary of State and the Secretary of State shall suspend collection of the fee for the following year for any dealer who has not had a claim paid from the Fund, has not had his or her license suspended or revoked, and has not been assessed any civil penalties under this Code during the 3 previous years. (i) Moneys in the Dealer Recovery Trust Fund may be paid from the Fund only as directed by a written order of the Board and used only for the following purposes: (i) to pay claims under a written order of the Board |
| as provided in this Section; or
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(ii) to reimburse the Fund Administrator for its
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| expenses related to the administration of the Fund, provided that the reimbursement to the Fund Administrator in any year shall not exceed 2% of the balance in the Fund as of January 15th of that year.
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(j) The Dealer Recovery Trust Fund Board is hereby created. The Board shall consist of the Secretary of State, or his or her designee, who shall serve as chair, the Attorney General, or his or her designee, who shall serve as secretary, and one person alternatively representing new and independent Illinois automobile dealers, selected collectively by the Attorney General, or his or her designee, and the Secretary of State, or his or her designee. The Secretary of State may propose procedures and employ personnel as necessary to implement this Section. The Board shall meet quarterly, and as needed, as directed by the chair. The Board may not pay out any claims before the balance deposited into the Fund exceeds $500,000. Board meetings shall be open to the public. The Board has the authority to take any action by at least a two-thirds majority vote.
(k) The following persons may apply to the Board for reimbursement from the Dealer Recovery Trust Fund:
(i) A retail customer who, on or after October 1,
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| 2011, purchases a vehicle from a dealer who subsequently files for bankruptcy or whose vehicle dealer's license is subsequently revoked by the Secretary of State or otherwise terminated and, as part of the purchase transaction, trades in a vehicle with an outstanding lien to the dealer if lien satisfaction was a condition of the purchase agreement and the retail customer determines that the lien has not been satisfied;
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(ii) A retail customer who, on or after October 1,
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| 2011, purchases a vehicle with an undisclosed lien from a dealer who subsequently files for bankruptcy or whose vehicle dealer's license is subsequently revoked by the Secretary of State or otherwise terminated;
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(iii) A dealer who, on or after October 1, 2011,
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| purchases a vehicle with an undisclosed lien from another dealer who subsequently files for bankruptcy or whose vehicle dealer's license is subsequently revoked by the Secretary of State or otherwise terminated.
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(l) To be considered by the Board, an applicant must submit his or her claim to the Board within 2 years after the date of the transaction that gave rise to the claim.
(m) At each meeting of the Board, it shall consider all claims that are properly submitted to it on forms prescribed by the Secretary of State at least 30 days before the date of the Board's meeting. Before the Board may consider a claim against a dealer, it must make a written determination that the dealer has filed for bankruptcy under the provisions of 11 U.S.C. Chapter 7; that the Secretary of State has revoked his or her dealer's license; or that the license has been otherwise terminated. Once the Board has made this determination, it may consider the applicant's claim against the dealer. If a two-thirds majority of the Board determines that the dealer has committed a violation under subsection (k), it shall grant the applicant's claim. Except as otherwise provided in this Section, the maximum amount of any award for a claim under paragraph (i) of subsection (k) of this Section shall be equal to the amount of the unpaid balance of the lien that the dealer agreed to pay off on behalf of the applicant as shown on the bill of sale or the retail installment sales contract. The maximum amount of any claim under paragraph (ii) or (iii) of subsection (k) of this Section shall be equal to the amount of the undisclosed lien. However, no award for a claim under subsection (k) of this Section shall exceed $35,000.
(n) If the balance in the Fund at the time of any Board meeting is less than the amount of the total amount of all claims awarded at that meeting, then all awards made at that meeting shall be reduced, pro rata, so that the amount of claims does not exceed the balance in the Fund. Before it reviews new claims, the Board shall issue written orders to pay the remaining portion of any claims that were so reduced, provided that the balance in the Fund is sufficient to pay those claims.
(o) Whenever the balance of the Fund falls below $500,000, the Board may charge dealers
an additional assessment of up to $50 to bring the balance to at least $500,000.
Not more than one additional assessment may be made against a dealer in any 12-month period.
(p) If the total amount of claims awarded against any dealer exceeds 33% of the balance in the Fund, the Board may permanently reduce the amount of those claims, pro rata, so that those claims do not exceed 33% of the balance in the Fund.
(q) The Board shall issue a written order directing the Fund Administrator to pay an applicant's claim to a secured party where the Board has received a signed agreement between the applicant and the secured party holding the lien. The agreement must (i) state that the applicant and the secured party agree to accept payment from the Fund to the secured party as settlement in full of all claims against the dealer; and (ii) release the lien and the title, if applicable, to the vehicle that was the subject of the claim. The written order shall state the amount of the claim and the name and address of the secured party to whom the claim shall be paid. The Fund Administrator shall pay the claim within 30 days after it receives the Board's order.
(r) No dealer or principal associated with a dealer's license is eligible for licensure, renewal or relicensure until the full amount of reimbursement for an unpaid claim, plus interest as determined by the Board, is paid to the Fund. Nothing in this Section shall limit the authority of the Secretary of State to suspend, revoke, or levy civil penalties against a dealer, nor shall full repayment of the amount owed to the Fund nullify or modify the effect of any action by the Secretary.
(s) Nothing in this Section shall limit the right of any person to seek relief though civil action against any other person as an alternative to seeking reimbursement from the Fund.
(Source: P.A. 101-505, eff. 1-1-20 .)
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(625 ILCS 5/5-102.8) Sec. 5-102.8. Licensure of Buy Here, Pay Here used vehicle dealers. (a) As used in this Section, "Buy Here, Pay Here used vehicle dealer" means any entity that engages in the business of selling or leasing of vehicles and finances the sale or purchase price of the vehicle to a customer without the customer using a third-party lender. (b) No person shall engage in
the business of selling or dealing in, on consignment or otherwise, 5 or
more used vehicles of any make during the year (except rebuilt salvage vehicles
sold by their rebuilders to persons licensed under this Chapter), or act as
an intermediary, agent, or broker for any licensed dealer or vehicle
purchaser (other than as a salesperson) or represent or advertise that he or she
is so engaged or intends to so engage in such business of a Buy Here, Pay Here used vehicle dealer unless licensed to
do so by the Secretary of State under the provisions of this Section.
(c) An application for a Buy Here, Pay Here used vehicle dealer's license shall be
filed with the Secretary of State, duly verified by oath, in such form
as the Secretary of State may by rule or regulation prescribe and shall
contain:
(1) The name and type of business organization |
| established and additional places of business, if any, in this State.
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(2) If the applicant is a corporation, a list of its
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| officers, directors, and shareholders having a 10% or greater ownership interest in the corporation, setting forth the residence address of each; if the applicant is a sole proprietorship, a partnership, an unincorporated association, a trust, or any similar form of business organization, the names and residence address of the proprietor or of each partner, member, officer, director, trustee, or manager.
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(3) A statement that the applicant has been approved
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| for registration under the Retailers' Occupation Tax Act by the Department of Revenue. However, this requirement does not apply to a dealer who is already licensed hereunder with the Secretary of State, and who is merely applying for a renewal of his or her license. As evidence of this fact, the application shall be accompanied by a certification from the Department of Revenue showing that the Department has approved the applicant for registration under the Retailers' Occupation Tax Act.
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(4) A statement that the applicant has complied with
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| the appropriate liability insurance requirement. A Certificate of Insurance in a solvent company authorized to do business in the State of Illinois shall be included with each application covering each location at which he or she proposes to act as a Buy Here, Pay Here used vehicle dealer. The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, 2 or more persons in any one crash, and $50,000 for damage to property. Such policy shall expire not sooner than December 31 of the year for which the license was issued or renewed. The expiration of the insurance policy shall not terminate the liability under the policy arising during the period for which the policy was filed.
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If the permitted user has a liability insurance
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| policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one crash, and $50,000 for damage to property, then the permitted user's insurer shall be the primary insurer and the dealer's insurer shall be the secondary insurer. If the permitted user does not have a liability insurance policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one crash, and $50,000 for damage to property, or does not have any insurance at all, then the dealer's insurer shall be the primary insurer and the permitted user's insurer shall be the secondary insurer.
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When a permitted user is "test driving" a Buy Here,
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| Pay Here used vehicle dealer's automobile, the Buy Here, Pay Here used vehicle dealer's insurance shall be primary and the permitted user's insurance shall be secondary.
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As used in this paragraph, "permitted user" means a
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| person who, with the permission of the Buy Here, Pay Here used vehicle dealer or an employee of the Buy Here, Pay Here used vehicle dealer, drives a vehicle owned and held for sale or lease by the Buy Here, Pay Here used vehicle dealer that the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle. "Permitted user" includes a person who, with the permission of the Buy Here, Pay Here used vehicle dealer, drives a vehicle owned or held for sale or lease by the Buy Here, Pay Here used vehicle dealer for loaner purposes while the user's vehicle is being repaired or evaluated.
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As used in this paragraph, "test driving" occurs when
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| a permitted user who, with the permission of the Buy Here, Pay Here used vehicle dealer or an employee of the Buy Here, Pay Here used vehicle dealer, drives a vehicle owned and held for sale or lease by a Buy Here, Pay Here used vehicle dealer that the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle.
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As used in this paragraph, "loaner purposes" means
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| when a person who, with the permission of the Buy Here, Pay Here used vehicle dealer, drives a vehicle owned or held for sale or lease by the used vehicle dealer while the user's vehicle is being repaired or evaluated.
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(5) An application for a Buy Here, Pay Here used
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| vehicle dealer's license shall be accompanied by the following license fees:
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(A) $1,000 for the applicant's established place
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| of business, and $50 for each additional place of business, if any, to which the application pertains; however, if the application is made after June 15 of any year, the license fee shall be $500 for the applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only if the application is denied by the Secretary of State. Of the money received by the Secretary of State as license fees under this subparagraph, 95% shall be deposited into the General Revenue Fund.
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(B) Except for dealers selling 25 or fewer
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| automobiles or as provided in subsection (h) of Section 5-102.7 of this Code, an Annual Dealer Recovery Fund Fee in the amount of $500 for the applicant's established place of business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the fee shall be $250 for the applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. For a license renewal application, the fee shall be based on the amount of automobiles sold in the past year according to the following formula:
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(1) $0 for dealers selling 25 or less
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(2) $150 for dealers selling more than 25 but
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| less than 200 automobiles;
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(3) $300 for dealers selling 200 or more
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| automobiles but less than 300 automobiles; and
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(4) $500 for dealers selling 300 or more
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Fees shall be returnable only if the application
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| is denied by the Secretary of State. Money received under this subparagraph shall be deposited into the Dealer Recovery Trust Fund. A Buy Here, Pay Here used vehicle dealer shall pay into the Dealer Recovery Trust Fund for every vehicle that is financed, sold, or otherwise transferred to an individual or entity other than the Buy Here, Pay Here used vehicle dealer even if the individual or entity to which the Buy Here, Pay Here used vehicle dealer transfers the vehicle is unable to continue to adhere to the terms of the transaction by the Buy Here, Pay Here used vehicle dealer.
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(6) A statement that each officer, director,
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| shareholder having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principal in the business of the applicant has not committed in the past 3 years any one violation as determined in any civil, criminal, or administrative proceedings of any one of the following:
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(A) the Anti-Theft Laws of this Code;
(B) the Certificate of Title Laws of this Code;
(C) the Offenses against Registration and
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| Certificates of Title Laws of this Code;
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(D) the Dealers, Transporters, Wreckers and
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| Rebuilders Laws of this Code;
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(E) Section 21-2 of the Illinois Criminal Code of
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| 1961 or the Criminal Code of 2012, Criminal Trespass to Vehicles; or
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(F) the Retailers' Occupation Tax Act.
(7) A statement that each officer, director,
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| shareholder having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principal in the business of the applicant has not committed in any calendar year 3 or more violations, as determined in any civil, criminal, or administrative proceedings, of any one or more of the following:
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(A) the Consumer Finance Act;
(B) the Consumer Installment Loan Act;
(C) the Retail Installment Sales Act;
(D) the Motor Vehicle Retail Installment Sales
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(E) the Interest Act;
(F) the Illinois Wage Assignment Act;
(G) Part 8 of Article XII of the Code of Civil
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(H) the Consumer Fraud and Deceptive Business
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(8) A statement that, within 10 years of application,
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| each officer, director, shareholder having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principal in the business of the applicant has not committed, as determined in any civil, criminal, or administrative proceeding, in any calendar year one or more forcible felonies under the Criminal Code of 1961 or the Criminal Code of 2012, or a violation of either or both Article 16 or 17 of the Criminal Code of 1961, or a violation of either or both Article 16 or 17 of the Criminal Code of 2012, Article 29B of the Criminal Code of 1961 or the Criminal Code of 2012, or a similar out-of-state offense. For the purposes of this paragraph, "forcible felony" has the meaning provided in Section 2-8 of the Criminal Code of 2012.
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(9) A bond or Certificate of Deposit in the amount of
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| $50,000 for each location at which the applicant intends to act as a Buy Here, Pay Here used vehicle dealer. The bond shall be for the term of the license. The bond shall run to the People of the State of Illinois, with surety by a bonding or insurance company authorized to do business in this State. It shall be conditioned upon the proper transmittal of all title and registration fees and taxes (excluding taxes under the Retailers' Occupation Tax Act) accepted by the applicant as a Buy Here, Pay Here used vehicle dealer.
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(10) Such other information concerning the business
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| of the applicant as the Secretary of State may by rule prescribe.
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(11) A statement that the applicant understands
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| Chapter 1 through Chapter 5 of this Code.
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(12) A copy of the certification from the
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| prelicensing education program.
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(13) The full name, address, and contact information
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| of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
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(d) Any change that renders no longer accurate any information
contained in any application for a Buy Here, Pay Here used vehicle dealer's license shall
be amended within 30 days after the occurrence of each change on such
form as the Secretary of State may prescribe by rule,
accompanied by an amendatory fee of $2.
(e) Anything in this Chapter to the contrary notwithstanding, no
person shall be licensed as a Buy Here, Pay Here used vehicle dealer unless the person
maintains an established place of business as
defined in this Chapter.
(f) The Secretary of State shall, within a reasonable time after
receipt, examine an application submitted under this Section.
Unless the Secretary makes a determination that the application does not conform to this Section or that grounds exist
for a denial of the application under Section 5-501 of this Chapter, the Secretary
must grant the applicant an original Buy Here, Pay Here used vehicle dealer's license in
writing for his or her established place of business and a supplemental license
in writing for each additional place of business in such form as the Secretary may
prescribe by rule that shall include the following:
(1) The name of the person licensed.
(2) If a corporation, the name and address of its
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| officers or if a sole proprietorship, a partnership, an unincorporated association, or any similar form of business organization, the name and address of the proprietor or of each partner, member, officer, director, trustee, or manager.
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(3) In the case of an original license, the
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| established place of business of the licensee.
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(4) In the case of a supplemental license, the
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| established place of business of the licensee and the additional place of business to which the supplemental license pertains.
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(5) The full name, address, and contact information
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| of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
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(g) The appropriate instrument evidencing the license or a certified
copy thereof, provided by the Secretary of State shall be kept posted,
conspicuously, in the established place of business of the licensee and
in each additional place of business, if any, maintained by the
licensee.
(h) Except as provided in subsection (i), all Buy Here, Pay Here used
vehicle dealer's licenses granted under this Section expire by operation
of law on December 31 of the calendar year for which they are granted
unless sooner revoked or cancelled under Section 5-501 of this Chapter.
(i) A Buy Here, Pay Here used vehicle dealer's license may be renewed upon application
and payment of the fee required herein, and submission of proof of
coverage by an approved bond under the Retailers' Occupation Tax Act
or proof that the applicant is not subject to such bonding requirements, as
in the case of an original license, but in the case of an application for the
renewal of an effective license made during the month of December,
the effective license shall remain in force until the application for
renewal is granted or denied by the Secretary of State.
(j) Each person licensed as a Buy Here, Pay Here used vehicle dealer is required to
furnish each purchaser of a motor vehicle:
(1) a certificate of title properly assigned to the
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(2) a statement verified under oath that all
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| identifying numbers on the vehicle agree with those on the certificate of title;
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(3) a bill of sale properly executed on behalf of the
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(4) a copy of the Uniform Invoice-transaction
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| reporting return referred to in Section 5-402;
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(5) in the case of a rebuilt vehicle, a copy of the
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| Disclosure of Rebuilt Vehicle Status; and
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(6) in the case of a vehicle for which the warranty
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| has been reinstated, a copy of the warranty.
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(k) Except at the time of sale or repossession of the vehicle, no
person licensed as a Buy Here, Pay Here used vehicle dealer may issue any other person a newly
created key to a vehicle unless the Buy Here, Pay Here used vehicle dealer makes a color photocopy or electronic scan of the
driver's license or State identification card of the person requesting or
obtaining the newly created key. The Buy Here, Pay Here used vehicle dealer must retain the photocopy or scan
for 30 days.
A Buy Here, Pay Here used vehicle dealer who violates this subsection (k) is guilty of a
petty offense. Violation of this subsection (k) is not cause to suspend,
revoke, cancel, or deny renewal of the used vehicle dealer's license.
(l) A Buy Here, Pay Here used vehicle dealer licensed under this Section shall provide the Secretary of State a register for the sale at auction of each salvage or junk certificate vehicle. Each register shall include the following information:
(1) the year, make, model, style, and color of the
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(2) the vehicle's manufacturer's identification
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| number or, if applicable, the Secretary of State or Illinois Department of State Police identification number;
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(3) the date of acquisition of the vehicle;
(4) the name and address of the person from whom the
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(5) the name and address of the person to whom any
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| vehicle was disposed, the person's Illinois license number or, if the person is an out-of-state salvage vehicle buyer, the license number from the state or jurisdiction where the buyer is licensed; and
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(6) the purchase price of the vehicle.
The register shall be submitted to the Secretary of State via written or electronic means within 10 calendar days from the date of the auction.
(m) If a licensee under this Section voluntarily surrenders a license to the Illinois Secretary of State Police or a representative of the Secretary of State Vehicle Services Department due to the licensee's inability to adhere to recordkeeping provisions, or the inability to properly issue certificates of title or registrations under this Code, or the Secretary revokes a license under this Section, then the licensee and the licensee's agent, designee, or legal representative, if applicable, may not be named on a new application for a licensee under this Section or under this Chapter, nor is the licensee or the licensee's agent, designee, or legal representative permitted to work for another licensee under this Chapter in a recordkeeping, management, or financial position or as an employee who handles certificate of title and registration documents and applications.
(Source: P.A. 101-505, eff. 1-1-20; 102-154, eff. 1-1-22; 102-982, eff. 7-1-23 .)
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(625 ILCS 5/5-301) (from Ch. 95 1/2, par. 5-301)
Sec. 5-301. Automotive parts recyclers, scrap processors, repairers and
rebuilders must be licensed. (a) No person in this State shall, except as an incident to
the servicing of vehicles, carry on or conduct the business
of an automotive parts recycler, a scrap processor, a repairer,
or a rebuilder, unless licensed to do so in writing by the Secretary of
State under this Section. No person shall rebuild a salvage vehicle
unless such person is licensed as a rebuilder by the Secretary of State
under this Section. No person shall engage in the business of acquiring 5 or more previously owned vehicles in one calendar year for the primary purpose of disposing of those vehicles in the manner described in the definition of a "scrap processor" in this Code unless the person is licensed as an automotive parts recycler by the Secretary of State under this Section. No person shall engage in the act of dismantling, crushing, or altering a vehicle into another form using machinery or equipment unless licensed to do so and only from the fixed location identified on the license issued by the Secretary. Each license shall be applied for and issued
separately, except that a license issued to a new vehicle dealer under
Section 5-101 of this Code shall also be deemed to be a repairer license.
(b) Any application filed with the Secretary of State, shall be duly
verified by oath, in such form as the Secretary of State may by rule or
regulation prescribe and shall contain:
1. The name and type of business organization of the |
| applicant and his principal or additional places of business, if any, in this State.
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2. The kind or kinds of business enumerated in
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| subsection (a) of this Section to be conducted at each location.
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3. If the applicant is a corporation, a list of its
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| officers, directors, and shareholders having a ten percent or greater ownership interest in the corporation, setting forth the residence address of each; if the applicant is a sole proprietorship, a partnership, an unincorporated association, a trust, or any similar form of business organization, the names and residence address of the proprietor or of each partner, member, officer, director, trustee or manager.
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4. A statement that the applicant's officers,
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| directors, shareholders having a ten percent or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principals in the business have not committed in the past three years any one violation as determined in any civil or criminal or administrative proceedings of any one of the following Acts:
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(a) the Anti-Theft Laws of the Illinois Vehicle
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(b) the "Certificate of Title Laws" of the
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(c) the "Offenses against Registration and
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| Certificates of Title Laws" of the Illinois Vehicle Code;
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(d) the "Dealers, Transporters, Wreckers and
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| Rebuilders Laws" of the Illinois Vehicle Code;
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|
(e) Section 21-2 of the Criminal Code of 1961 or
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| the Criminal Code of 2012, Criminal Trespass to Vehicles; or
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(f) the Retailers Occupation Tax Act.
5. A statement that the applicant's officers,
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| directors, shareholders having a ten percent or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager or other principals in the business have not committed in any calendar year 3 or more violations, as determined in any civil or criminal or administrative proceedings, of any one or more of the following Acts:
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|
(a) the Consumer Finance Act;
(b) the Consumer Installment Loan Act;
(c) the Retail Installment Sales Act;
(d) the Motor Vehicle Retail Installment Sales
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|
(e) the Interest Act;
(f) the Illinois Wage Assignment Act;
(g) Part 8 of Article XII of the Code of Civil
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|
(h) the Consumer Fraud Act.
6. An application for a license shall be accompanied
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| by the following fees: $50 for applicant's established place of business; $25 for each additional place of business, if any, to which the application pertains; provided, however, that if such an application is made after June 15 of any year, the license fee shall be $25 for applicant's established place of business plus $12.50 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that such application shall be denied by the Secretary of State.
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|
7. A statement that the applicant understands Chapter
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| 1 through Chapter 5 of this Code.
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|
8. A statement that the applicant shall comply with
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| subsection (e) of this Section.
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|
9. A statement indicating if the applicant, including
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| any of the applicant's affiliates or predecessor corporations, has been subject to the revocation or nonrenewal of a business license by a municipality under Section 5-501.5 of this Code.
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10. The applicant's National Motor Vehicle Title
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| Information System number and a statement of compliance if applicable.
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|
11. The full name, address, and contact information
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| of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
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|
(c) Any change which renders no longer accurate any information
contained in any application for a license filed with the Secretary of
State shall be amended within 30 days after the occurrence of such
change on such form as the Secretary of State may prescribe by rule or
regulation, accompanied by an amendatory fee of $2.
(d) Anything in this Chapter to the contrary, notwithstanding, no
person shall be licensed under this Section unless such person shall
maintain an established place of business as defined in this Chapter.
(e) The Secretary of State shall within a reasonable time after
receipt thereof, examine an application submitted to him under this
Section and unless he makes a determination that the application
submitted to him does not conform with the requirements of this Section
or that grounds exist for a denial of the application, as prescribed in
Section 5-501 of this Chapter, grant the applicant an original license
as applied for in writing for his established place of business and a
supplemental license in writing for each additional place of
business in such form as he may prescribe by rule or regulation which shall
include the following:
1. the name of the person licensed;
2. if a corporation, the name and address of its
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| officers or if a sole proprietorship, a partnership, an unincorporated association or any similar form of business organization, the name and address of the proprietor or of each partner, member, officer, director, trustee or manager;
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|
3. a designation of the kind or kinds of business
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| enumerated in subsection (a) of this Section to be conducted at each location;
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|
4. in the case of an original license, the
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| established place of business of the licensee;
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|
5. in the case of a supplemental license, the
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| established place of business of the licensee and the additional place of business to which such supplemental license pertains;
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|
6. the full name, address, and contact information of
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| each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
|
|
(f) The appropriate instrument evidencing the license or a certified
copy thereof, provided by the Secretary of State shall be kept, posted,
conspicuously in the established place of business of the
licensee and in each additional place of business, if any, maintained by
such licensee. The licensee also shall post conspicuously in the
established place of business and in each additional place of business a
notice which states that such business is required to be licensed by the
Secretary of State under Section 5-301, and which provides the license
number of the business and the license expiration date. This notice also
shall advise the consumer that any complaints as to the quality of service
may be brought to the attention of the Attorney General. The information
required on this notice also shall be printed conspicuously on all
estimates and receipts for work by the licensee subject to this Section.
The Secretary of State shall prescribe the specific format of this notice.
(g) Except as provided in subsection (h) hereof, licenses granted
under this Section shall expire by operation of law on December 31 of
the calendar year for which they are granted unless sooner revoked, nonrenewed, or
cancelled under the provisions of Section 5-501 or 5-501.5 of this Chapter.
(h) Any license granted under this Section may be renewed upon
application and payment of the fee required herein as in the case of an
original license, provided, however, that in case an application for the
renewal of an effective license is made during the month of December,
such effective license shall remain in force until such application is
granted or denied by the Secretary of State.
(i) All automotive
repairers and
rebuilders shall, in addition to the requirements of subsections (a)
through
(h) of this Section, meet the following licensing requirements:
1. provide proof that the property on which first
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| time applicants plan to do business is in compliance with local zoning laws and regulations, and a listing of zoning classification;
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|
2. provide proof that the applicant for a repairer's
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| license complies with the proper workers' compensation rate code or classification, and listing the code of classification for that industry;
|
|
3. provide proof that the applicant for a rebuilder's
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| license complies with the proper workers' compensation rate code or classification for the repair industry or the auto parts recycling industry and listing the code of classification;
|
|
4. provide proof that the applicant has obtained or
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| applied for a hazardous waste generator number, and listing the actual number if available or certificate of exemption;
|
|
5. provide proof that applicant has proper liability
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| insurance, and listing the name of the insurer and the policy number; and
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|
6. provide proof that the applicant has obtained or
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| applied for the proper State sales tax classification and federal identification tax number, and listing the actual numbers if available.
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|
(i-1) All automotive repairers shall provide proof that they comply with all requirements of the Automotive Collision Repair Act.
(j) All automotive
parts
recyclers shall, in addition to the requirements of subsections (a) through
(h) of this Section, meet the following licensing requirements:
1. provide a statement that the applicant purchases 5
|
| vehicles per year or has 5 hulks or chassis in stock;
|
|
2. provide proof that the property on which all first
|
| time applicants will do business does comply to the proper local zoning laws in existence, and a listing of zoning classifications;
|
|
3. provide proof that applicant complies with the
|
| proper workers' compensation rate code or classification, and listing the code of classification; and
|
|
4. provide proof that applicant has obtained or
|
| applied for the proper State sales tax classification and federal identification tax number, and listing the actual numbers if available.
|
|
(Source: P.A. 101-572, eff. 8-23-19; 102-154, eff. 1-1-22 .)
|
(625 ILCS 5/5-401.2) (from Ch. 95 1/2, par. 5-401.2)
Sec. 5-401.2. Licensees required to keep records and make inspections.
(a) Every person licensed or required to be licensed under Section 5-101,
5-101.1, 5-101.2, 5-102, 5-102.8, 5-301, or 5-302 of this Code, shall, with the exception of
scrap
processors, maintain for 3 years, in a form as the Secretary of State may by
rule or regulation prescribe, at his established place of business, additional
place of business, or principal place of business if licensed under Section
5-302, the following records relating to the acquisition or disposition of
vehicles and their essential parts possessed in this State, brought into this
State from another state, territory or country, or sold or transferred to
another person in this State or in another state, territory, or country.
(1) The following records pertaining to new or used |
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(A) the year, make, model, style and color of the
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|
(B) the vehicle's manufacturer's identification
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| number or, if applicable, the Secretary of State or Illinois State Police identification number;
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|
(C) the date of acquisition of the vehicle;
(D) the name and address of the person from whom
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| the vehicle was acquired and, if that person is a dealer, the Illinois or out-of-state dealer license number of such person;
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|
(E) the signature of the person making the
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| inspection of a used vehicle as required under subsection (d) of this Section, if applicable;
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|
(F) the purchase price of the vehicle, if
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|
(G) the date of the disposition of the vehicle;
(H) the name and address of the person to whom
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| any vehicle was disposed, and if that person is a dealer, the Illinois or out-of-State dealer's license number of that dealer;
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|
(I) the uniform invoice number reflecting the
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| disposition of the vehicle, if applicable; and
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|
(J) The sale price of the vehicle, if applicable.
(2) (A) The following records pertaining to used
|
| essential parts other than quarter panels and transmissions of vehicles of the first division shall be kept:
|
|
(i) the year, make, model, color and type of such
|
|
(ii) the vehicle's manufacturer's identification
|
| number, derivative number, or, if applicable, the Secretary of State or Illinois State Police identification number of such part;
|
|
(iii) the date of the acquisition of each part;
(iv) the name and address of the person from whom
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| the part was acquired and, if that person is a dealer, the Illinois or out-of-state dealer license number of such person; if the essential part being acquired is from a person other than a dealer, the licensee shall verify and record that person's identity by recording the identification numbers from at least two sources of identification, one of which shall be a drivers license or State identification card;
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|
(v) the uniform invoice number or out-of-state
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| bill of sale number reflecting the acquisition of such part;
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|
(vi) the stock number assigned to the essential
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| part by the licensee, if applicable;
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|
(vii) the date of the disposition of such part;
(viii) the name and address of the person to whom
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| such part was disposed of and, if that person is a dealer, the Illinois or out-of-state dealer license number of that person;
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|
(ix) the uniform invoice number reflecting the
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| disposition of such part.
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|
(B) Inspections of all essential parts shall be
|
| conducted in accordance with Section 5-402.1.
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|
(C) A separate entry containing all of the
|
| information required to be recorded in subparagraph (A) of paragraph (2) of subsection (a) of this Section shall be made for each separate essential part. Separate entries shall be made regardless of whether the part was a large purchase acquisition. In addition, a separate entry shall be made for each part acquired for immediate sale or transfer, or for placement into the overall inventory or stock to be disposed of at a later time, or for use on a vehicle to be materially altered by the licensee, or acquired for any other purpose or reason. Failure to make a separate entry for each essential part acquired or disposed of, or a failure to record any of the specific information required to be recorded concerning the acquisition or disposition of each essential part as set forth in subparagraph (A) of paragraph (2) of subsection (a) shall constitute a failure to keep records.
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|
(D) The vehicle's manufacturer's identification
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| number or Secretary of State or Illinois State Police identification number for the essential part shall be ascertained and recorded even if such part is acquired from a person or dealer located in a State, territory, or country which does not require that such information be recorded. If the vehicle's manufacturer's identification number or Secretary of State or Illinois State Police identification number for an essential part cannot be obtained, that part shall not be acquired by the licensee or any of his agents or employees. If such part or parts were physically acquired by the licensee or any of his agents or employees while the licensee or agent or employee was outside this State, that licensee or agent or employee was outside the State, that licensee, agent or employee shall not bring such essential part into this State or cause it to be brought into this State. The acquisition or disposition of an essential part by a licensee without the recording of the vehicle identification number or Secretary of State identification number for such part or the transportation into the State by the licensee or his agent or employee of such part or parts shall constitute a failure to keep records.
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|
(E) The records of essential parts required to be
|
| kept by this Section shall apply to all hulks, chassis, frames or cowls, regardless of the age of those essential parts. The records required to be kept by this Section for essential parts other than hulks, chassis, frames or cowls, shall apply only to those essential parts which are 6 model years of age or newer. In determining the model year of such an essential part it may be presumed that the identification number of the vehicle from which the essential part came or the identification number affixed to the essential part itself acquired by the licensee denotes the model year of that essential part. This presumption, however, shall not apply if the gross appearance of the essential part does not correspond to the year, make or model of either the identification number of the vehicle from which the essential part is alleged to have come or the identification number which is affixed to the essential part itself. To determine whether an essential part is 6 years of age or newer within this paragraph, the model year of the essential part shall be subtracted from the calendar year in which the essential part is acquired or disposed of by the licensee. If the remainder is 6 or less, the record of the acquisition or disposition of that essential part shall be kept as required by this Section.
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|
(F) The requirements of paragraph (2) of subsection
|
| (a) of this Section shall not apply to the disposition of an essential part other than a cowl which has been damaged or altered to a state in which it can no longer be returned to a usable condition and which is being sold or transferred to a scrap processor or for delivery to a scrap processor.
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|
(3) the following records for vehicles on which junking certificates are
obtained shall be kept:
(A) the year, make, model, style and color of the
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|
(B) the vehicle's manufacturer's identification
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| number or, if applicable, the Secretary of State or Illinois State Police identification number;
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|
(C) the date the vehicle was acquired;
(D) the name and address of the person from whom the
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| vehicle was acquired and, if that person is a dealer, the Illinois or out-of-state dealer license number of that person;
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|
(E) the certificate of title number or salvage
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| certificate number for the vehicle, if applicable;
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|
(F) the junking certificate number obtained by the
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| licensee; this entry shall be recorded at the close of business of the fifth business day after receiving the junking certificate;
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|
(G) the name and address of the person to whom the
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| junking certificate has been assigned, if applicable, and if that person is a dealer, the Illinois or out-of-state dealer license number of that dealer;
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|
(H) if the vehicle or any part of the vehicle is
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| dismantled for its parts to be disposed of in any way, or if such parts are to be used by the licensee to materially alter a vehicle, those essential parts shall be recorded and the entries required by paragraph (2) of subsection (a) shall be made.
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|
(4) The following records for rebuilt vehicles shall be kept:
(A) the year, make, model, style and color of the
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|
(B) the vehicle's manufacturer's identification
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| number of the vehicle or, if applicable, the Secretary of State or Illinois State Police identification number;
|
|
(C) the date the vehicle was acquired;
(D) the name and address of the person from whom the
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| vehicle was acquired, and if that person is a dealer, the Illinois or out-of-state dealer license number of that person;
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|
(E) the salvage certificate number for the vehicle;
(F) the newly issued certificate of title number for
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|
(G) the date of disposition of the vehicle;
(H) the name and address of the person to whom the
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| vehicle was disposed, and if a dealer, the Illinois or out-of-state dealer license number of that dealer;
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|
(I) The sale price of the vehicle.
(a-1) A person licensed or required to be licensed under Section 5-101 or
Section 5-102 of this Code who issues temporary registration permits as
permitted by
this Code and by rule must electronically file the registration with the
Secretary and must maintain records of the registration in the manner
prescribed by the Secretary.
(b) A failure to make separate entries for each vehicle acquired,
disposed of, or assigned, or a failure to record any of the specific
information required to be recorded concerning the acquisition or
disposition of each vehicle as set forth in paragraphs (1),
(3) and (4) of subsection (a) shall constitute a failure to keep records.
(c) All entries relating to the acquisition of a vehicle or essential
part required by subsection (a) of this Section shall be recorded no later than
the close of business on the seventh calendar day following such acquisition.
All entries relating to the disposition of a vehicle or an essential part
shall be made at the time of such disposition. If the vehicle or essential
part was disposed of on the same day as its acquisition or the day
thereafter, the entries relating to the acquisition of the vehicle or
essential part shall be made at the time of the disposition of the vehicle
or essential part. Failure to make the entries required in or at the times
prescribed by this subsection following the acquisition or disposition of
such vehicle or essential part shall constitute a failure to keep records.
(d) Every person licensed or required to be licensed shall,
before accepting delivery of a used vehicle, inspect the
vehicle to determine whether the manufacturer's public vehicle
identification number has been defaced, destroyed,
falsified, removed, altered, or tampered with in any way. If the person
making the inspection determines that the manufacturer's public vehicle
identification number has been altered, removed, defaced, destroyed,
falsified or tampered with he shall not acquire that vehicle but instead
shall promptly notify law enforcement authorities of his finding.
(e) The information required to be kept in subsection (a) of this
Section shall be kept in a manner prescribed by rule or regulation of the
Secretary of State.
(f) Every person licensed or required to be licensed shall have in his
possession a separate certificate of title, salvage certificate, junking
certificate, certificate of purchase, uniform invoice, out-of-state bill of
sale or other acceptable documentary evidence of his right to the
possession of every vehicle or essential part.
(g) Every person licensed or required to be licensed as a transporter
under Section 5-201 shall maintain for 3 years, in such form as the
Secretary of State may by rule or regulation prescribe, at his principal
place of business a record of every vehicle transported by him, including
numbers of or other marks of identification thereof, the names and
addresses of persons from whom and to whom the vehicle was delivered and
the dates of delivery.
(h) No later than 15 days prior to going out of business, selling the
business, or transferring the ownership of the business, the licensee shall
notify the Secretary of State that he is going out of business or that he
is transferring the ownership of the business. Failure to notify under this
paragraph shall constitute a failure to keep records.
(i) (Blank).
(j) A person who knowingly fails to comply with the provisions of this
Section or
knowingly fails to obey, observe, or comply with any order of the Secretary or
any law
enforcement agency issued
in accordance with this Section is guilty of a Class B misdemeanor for the
first violation and a Class A misdemeanor for the second and subsequent
violations. Each violation constitutes a separate and distinct offense and a
separate count may be brought in the same indictment or information for each
vehicle or each essential part of a vehicle for which a record was not kept as
required by this Section.
(k) Any person convicted of failing to keep the records required by this
Section with intent to conceal the identity or origin of a vehicle or its
essential parts or with intent to defraud the public in the transfer or sale of
vehicles or their essential parts is guilty of a Class 2 felony. Each violation
constitutes a separate and distinct offense and a separate count may be brought
in the same indictment or information for each vehicle or
essential part of a vehicle for which a record was not kept as required by this
Section.
(l) A person may not be criminally charged with or convicted of both a
knowing failure to comply with this Section and a knowing failure to comply
with any order, if both offenses involve the same record keeping violation.
(m) The Secretary shall adopt rules necessary for implementation of this
Section, which may include the imposition of administrative fines.
(Source: P.A. 101-505, eff. 1-1-20; 102-538, eff. 8-20-21.)
|
(625 ILCS 5/5-401.3) (from Ch. 95 1/2, par. 5-401.3)
Sec. 5-401.3. Scrap processors required to keep records. (a) Every person licensed or required to be licensed as a scrap processor
pursuant to Section 5-301 of this Chapter shall maintain for 3 years, at
his established place of business, the following records relating to the
acquisition of recyclable metals or the acquisition of a vehicle, junk vehicle, or vehicle cowl which has been
acquired for the purpose of processing into a form other than a vehicle,
junk vehicle or vehicle cowl which is possessed in the State or brought
into this State from another state, territory or country.
No scrap metal processor shall sell a vehicle or essential part, as such,
except for engines, transmissions, and powertrains, unless licensed to do so
under another provision of this Code. A scrap processor who is additionally
licensed as an automotive parts recycler shall not be subject to the record
keeping requirements for a scrap processor
when acting as an automotive parts
recycler.
(1) For a vehicle, junk vehicle, or vehicle cowl |
| acquired from a person who is licensed under this Chapter, the scrap processor shall record the name and address of the person, and the Illinois or out-of-state dealer license number of such person on the scrap processor's weight ticket at the time of the acquisition. The person disposing of the vehicle, junk vehicle, or vehicle cowl shall furnish the scrap processor with documentary proof of ownership of the vehicle, junk vehicle, or vehicle cowl in one of the following forms: a Certificate of Title, a Salvage Certificate, a Junking Certificate, a Secretary of State Junking Manifest, a Uniform Invoice, a Certificate of Purchase, or other similar documentary proof of ownership. The scrap processor shall not acquire a vehicle, junk vehicle or vehicle cowl without obtaining one of the aforementioned documentary proofs of ownership.
|
|
(2) For a vehicle, junk vehicle or vehicle cowl
|
| acquired from a person who is not licensed under this Chapter, the scrap processor shall verify and record that person's identity by recording the identification of such person from at least 2 sources of identification, one of which shall be a driver's license or State Identification Card, on the scrap processor's weight ticket at the time of the acquisition. The person disposing of the vehicle, junk vehicle, or vehicle cowl shall furnish the scrap processor with documentary proof of ownership of the vehicle, junk vehicle, or vehicle cowl in one of the following forms: a Certificate of Title, a Salvage Certificate, a Junking Certificate, a Secretary of State Junking Manifest, a Certificate of Purchase, or other similar documentary proof of ownership. The scrap processor shall not acquire a vehicle, junk vehicle or vehicle cowl without obtaining one of the aforementioned documentary proofs of ownership.
|
|
(3) In addition to the other information required on
|
| the scrap processor's weight ticket, a scrap processor who at the time of acquisition of a vehicle, junk vehicle, or vehicle cowl is furnished a Certificate of Title, Salvage Certificate or Certificate of Purchase shall record the Vehicle Identification Number on the weight ticket or affix a copy of the Certificate of Title, Salvage Certificate or Certificate of Purchase to the weight ticket and the identification of the person acquiring the information on the behalf of the scrap processor.
|
|
(4) The scrap processor shall maintain a copy of a
|
| Junk Vehicle Notification relating to any Certificate of Title, Salvage Certificate, Certificate of Purchase or similarly acceptable out-of-state document surrendered to the Secretary of State pursuant to the provisions of Section 3-117.2 of this Code.
|
|
(5) For recyclable metals valued at $100 or more, the
|
| scrap processor shall, for each transaction, record the identity of the person from whom the recyclable metals were acquired by verifying the identification of that person from one source of identification, which shall be a valid driver's license or State Identification Card, on the scrap processor's weight ticket at the time of the acquisition and by making and recording a color photocopy or electronic scan of the driver's license or State Identification Card. Such information shall be available for inspection by any law enforcement official. If the person delivering the recyclable metal does not have a valid driver's license or State Identification Card, the scrap processor shall not complete the transaction. The inspection of records pertaining only to recyclable metals shall not be counted as an inspection of a premises for purposes of subparagraph (7) of Section 5-403 of this Code.
|
|
This subdivision (a)(5) does not apply to electrical
|
| contractors, to agencies or instrumentalities of the State of Illinois or of the United States, to common carriers, to purchases from persons, firms, or corporations regularly engaged in the business of manufacturing recyclable metal, in the business of selling recyclable metal at retail or wholesale, or in the business of razing, demolishing, destroying, or removing buildings, to the purchase by 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. This subdivision (a)(5) also does not apply to contractual arrangements between dealers.
|
|
(b) Any licensee who knowingly fails to record any of the specific
information required to be recorded on the weight ticket required under any other subsection of this Section, or Section 5-401 of this Code, or who knowingly
fails to acquire and maintain for 3 years documentary proof of ownership in
one of the prescribed forms shall be guilty of a Class A misdemeanor and
subject to a fine not to exceed $1,000. Each violation shall constitute a
separate and distinct offense and a separate count may be brought in the
same complaint for each violation. Any licensee who commits a second
violation of this Section within two years of a previous conviction of a
violation of this Section shall be guilty of a Class 4 felony.
(c) It shall be an affirmative defense to an offense brought under
paragraph (b) of this Section that the licensee or person required to be
licensed both reasonably and in good faith relied on information appearing
on a Certificate of Title, a Salvage Certificate, a Junking Certificate, a
Secretary of State Manifest, a Secretary of State's Uniform Invoice, a
Certificate of Purchase, or other documentary proof of ownership prepared
under Section 3-117.1(a) of this Code, relating to the transaction for
which the required record was not kept which was supplied to the licensee
by another licensee or an out-of-state dealer.
(d) No later than 15 days prior to going out of business, selling the
business, or transferring the ownership of the business, the scrap
processor shall notify the Secretary of that fact. Failure to so notify
the Secretary of State shall constitute a failure to keep
records under this Section.
(e) Evidence derived directly or indirectly from the keeping of records
required to be kept under this Section shall not be admissible in a
prosecution of the licensee for an alleged violation of Section 4-102(a)(3) of this Code.
(Source: P.A. 100-956, eff. 1-1-19 .)
|
(625 ILCS 5/5-402.1) (from Ch. 95 1/2, par. 5-402.1)
Sec. 5-402.1. Use of Secretary of State Uniform Invoice for Essential
Parts. (a) Except for scrap processors, every person licensed or required
to be licensed under Section 5-101, 5-101.1, 5-102, 5-102.8, or 5-301 of this Code
shall
issue, in a form the Secretary of State may by rule or regulation
prescribe, a Uniform Invoice, which may also act as a bill of sale, with respect to each transaction in which he disposes of
an essential part other than quarter panels and transmissions of vehicles
of the first division. Such Invoice shall be made out at the time of the
disposition of the essential part. If the licensee disposes of several
essential parts in the same transaction, the licensee may issue one Uniform
Invoice covering all essential parts disposed of in that transaction.
(b) The following information shall be contained on the Uniform Invoice:
(1) the business name, address, and dealer license |
| number of the person disposing of the essential part;
|
|
(2) the name and address of the person acquiring the
|
| essential part, and if that person is a dealer, the Illinois or out-of-state dealer license number of that dealer;
|
|
(3) the date of the disposition of the essential part;
(4) the year, make, model, color, and description of
|
| each essential part disposed of by the person;
|
|
(5) the manufacturer's vehicle identification number,
|
| Secretary of State identification number, or Illinois State Police identification number for each essential part disposed of by the person;
|
|
(6) the printed name and legible signature of the
|
| person or agent disposing of the essential part; and
|
|
(7) if the person is a dealer the printed name and
|
| legible signature of the dealer or his agent or employee accepting delivery of the essential part.
|
|
(c) Except for scrap processors, and except as set forth in subsection
(d) of this Section, whenever a person licensed or
required to be licensed by Section
5-101, 5-101.1, 5-102, or 5-301 accepts delivery of an essential
part, other than quarter panels and transmissions of vehicles of the
first division, that person shall, at the time of the acceptance or
delivery, comply
with the following procedures:
(1) Before acquiring or accepting delivery of any
|
| essential part, the licensee or his authorized agent or employee shall inspect the part to determine whether the vehicle identification number, Secretary of State identification number, Illinois State Police identification number, or identification plate or sticker attached to or stamped on any part being acquired or delivered has been removed, falsified, altered, defaced, destroyed, or tampered with. If the licensee or his agent or employee determines that the vehicle identification number, Secretary of State identification number, Illinois State Police identification number, identification plate or identification sticker containing an identification number, or Federal Certificate label of an essential part has been removed, falsified, altered, defaced, destroyed, or tampered with, the licensee or agent shall not accept or receive that part.
|
|
If that part was physically acquired by or delivered
|
| to a licensee or his agent or employee while that licensee, agent, or employee was outside this State, that licensee or agent or employee shall not bring that essential part into this State or cause it to be brought into this State.
|
|
(2) If the person disposing of or delivering the
|
| essential part to the licensee is a licensed in-state or out-of-state dealer, the licensee or his agent or employee, after inspecting the essential part as required by paragraph (1) of this subsection (c), shall examine the Uniform Invoice, or bill of sale, as the case may be, to ensure that it contains all the information required to be provided by persons disposing of essential parts as set forth in subsection (b) of this Section. If the Uniform Invoice or bill of sale does not contain all the information required to be listed by subsection (b) of this Section, the dealer disposing of or delivering such part or his agent or employee shall record such additional information or other needed modifications on the Uniform Invoice or bill of sale or, if needed, an attachment thereto. The dealer or his agent or employee delivering the essential part shall initial all additions or modifications to the Uniform Invoice or bill of sale and legibly print his name at the bottom of each document containing his initials. If the transaction involves a bill of sale rather than a Uniform Invoice, the licensee or his agent or employee accepting delivery of or acquiring the essential part shall affix his printed name and legible signature on the space on the bill of sale provided for his signature or, if no space is provided, on the back of the bill of sale. If the dealer or his agent or employee disposing of or delivering the essential part cannot or does not provide all the information required by subsection (b) of this Section, the licensee or his agent or employee shall not accept or receive any essential part for which that required information is not provided. If such essential part for which the information required is not fully provided was physically acquired while the licensee or his agent or employee was outside this State, the licensee or his agent or employee shall not bring that essential part into this State or cause it to be brought into this State.
|
|
(3) If the person disposing of the essential part is
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| not a licensed dealer, the licensee or his agent or employee shall, after inspecting the essential part as required by paragraph (1) of subsection (c) of this Section verify the identity of the person disposing of the essential part by examining 2 sources of identification, one of which shall be either a driver's license or state identification card. The licensee or his agent or employee shall then prepare a Uniform Invoice listing all the information required to be provided by subsection (b) of this Section. In the space on the Uniform Invoice provided for the dealer license number of the person disposing of the part, the licensee or his agent or employee shall list the numbers taken from the documents of identification provided by the person disposing of the part. The person disposing of the part shall affix his printed name and legible signature on the space on the Uniform Invoice provided for the person disposing of the essential part and the licensee or his agent or employee acquiring the part shall affix his printed name and legible signature on the space provided on the Uniform Invoice for the person acquiring the essential part. If the person disposing of the essential part cannot or does not provide all the information required to be provided by this paragraph, or does not present 2 satisfactory forms of identification, the licensee or his agent or employee shall not acquire that essential part.
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(d) If an essential part other than quarter panels and
transmissions of vehicles of the first division was delivered by a licensed commercial
delivery service delivering such part on behalf of a licensed dealer, the
person required to comply with subsection (c) of this Section may conduct
the inspection of that part required by paragraph (1) of subsection (c) and examination
of the Uniform Invoice or bill of sale required by paragraph (2) of subsection (c) of
this Section immediately after the acceptance of the part.
(1) If the inspection of the essential part pursuant
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| to paragraph (1) of subsection (c) reveals that the vehicle identification number, Secretary of State identification number, Illinois State Police identification number, identification plate or sticker containing an identification number, or Federal Certificate label of an essential part has been removed, falsified, altered, defaced, destroyed, or tampered with, the licensee or his agent shall immediately record such fact on the Uniform Invoice or bill of sale, assign the part an inventory or stock number, place such inventory or stock number on both the essential part and the Uniform Invoice or bill of sale, and record the date of the inspection of the part on the Uniform Invoice or bill of sale. The licensee shall, within 7 days of such inspection, return such part to the dealer from whom it was acquired.
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(2) If the examination of the Uniform Invoice or bill
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| of sale pursuant to paragraph (2) of subsection (c) reveals that any of the information required to be listed by subsection (b) of this Section is missing, the licensee or person required to be licensed shall immediately assign a stock or inventory number to such part, place such stock or inventory number on both the essential part and the Uniform Invoice or bill of sale, and record the date of examination on the Uniform Invoice or bill of sale. The licensee or person required to be licensed shall acquire the information missing from the Uniform Invoice or bill of sale within 7 days of the examination of such Uniform Invoice or bill of sale. Such information may be received by telephone conversation with the dealer from whom the part was acquired. If the dealer provides the missing information the licensee shall record such information on the Uniform Invoice or bill of sale along with the name of the person providing the information. If the dealer does not provide the required information within the aforementioned 7-day period, the licensee shall return the part to that dealer.
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(e) Except for scrap processors, all persons licensed or required to
be licensed who acquire or
dispose of essential parts other than quarter panels and transmissions of
vehicles of the first division shall retain a copy of the Uniform Invoice
required to be made by subsections (a), (b), and (c) of this Section for a
period of 3 years.
(f) Except for scrap processors, any person licensed or required to
be licensed under Section 5-101,
5-102, or 5-301 who knowingly fails to record on a Uniform Invoice any of the
information or entries required to be recorded by subsections (a), (b), and
(c) of this Section, or who knowingly places false entries or other misleading
information on such Uniform Invoice, or who knowingly fails to retain for 3 years a
copy of a Uniform Invoice reflecting transactions required to be recorded
by subsections (a), (b), and (c) of this Section, or who knowingly acquires or
disposes of essential parts without receiving, issuing, or executing a
Uniform Invoice reflecting that transaction as required by subsections (a),
(b), and (c) of this Section, or who brings or causes to be brought into
this State essential parts for which the information required to be
recorded on a Uniform Invoice is not recorded as prohibited by subsection
(c) of this Section, or who knowingly fails to comply with the provisions of
this
Section in any other manner shall be guilty of a Class 2 felony. Each
violation shall constitute a separate and distinct offense and a separate
count may be brought in the same indictment or information for each
essential part for which a record was not kept as required by this Section
or for which the person failed to comply with other provisions of this
Section.
(g) The records required to be kept by this Section
may be examined by a person or persons making a lawful
inspection of the licensee's premises pursuant to Section 5-403.
(h) The records required to be kept by this Section shall be retained by
the licensee at his principal place of business for a period of 3 years.
(i) The requirements of this Section shall not apply to the disposition
of an essential part other than a cowl which has been damaged or altered to
a state in which it can no longer be returned to a usable condition and
which is being sold or transferred to a scrap processor or for delivery to
a scrap processor.
(Source: P.A. 101-505, eff. 1-1-20; 102-318, eff. 1-1-22; 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
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(625 ILCS 5/5-501) (from Ch. 95 1/2, par. 5-501)
Sec. 5-501. Denial, suspension or revocation or cancellation of a license. (a) The license of a person issued under this Chapter may be denied,
revoked or suspended if the Secretary of State finds that the applicant,
or the officer, director, shareholder having a ten percent or
greater ownership interest in the corporation, owner, partner, trustee,
manager, employee or the licensee
has:
1. Violated this Act;
2. Made any material misrepresentation to the |
| Secretary of State in connection with an application for a license, junking certificate, salvage certificate, title or registration;
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3. Committed a fraudulent act in connection with
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| selling, bartering, exchanging, offering for sale or otherwise dealing in vehicles, chassis, essential parts, or vehicle shells;
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4. As a new vehicle dealer has no contract with a
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| manufacturer or enfranchised distributor to sell that new vehicle in this State;
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5. Not maintained an established place of business as
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6. Failed to file or produce for the Secretary of
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| State any application, report, document or other pertinent books, records, documents, letters, contracts, required to be filed or produced under this Code or any rule or regulation made by the Secretary of State pursuant to this Code;
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7. Previously had, within 3 years, such a license
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| denied, suspended, revoked, or cancelled under the provisions of subsection (c)(2) of this Section;
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8. Has committed in any calendar year 3 or more
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| violations, as determined in any civil or criminal proceeding, of any one or more of the following Acts:
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a. the "Consumer Finance Act";
b. the "Consumer Installment Loan Act";
c. the "Retail Installment Sales Act";
d. the "Motor Vehicle Retail Installment Sales
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e. "An Act in relation to the rate of interest
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| and other charges in connection with sales on credit and the lending of money", approved May 24, 1879, as amended;
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f. "An Act to promote the welfare of wage-earners
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| by regulating the assignment of wages, and prescribing a penalty for the violation thereof", approved July 1, 1935, as amended;
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g. Part 8 of Article XII of the Code of Civil
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h. the "Consumer Fraud Act";
9. Failed to pay any fees or taxes due under this
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| Act, or has failed to transmit any fees or taxes received by him for transmittal by him to the Secretary of State or the State of Illinois;
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10. Converted an abandoned vehicle;
11. Used a vehicle identification plate or number
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| assigned to a vehicle other than the one to which originally assigned;
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12. Violated the provisions of Chapter 5 of this Act,
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13. Violated the provisions of Chapter 4 of this Act,
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14. Violated the provisions of Chapter 3 of this Act,
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15. Violated Section 21-2 of the Criminal Code of
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| 1961 or the Criminal Code of 2012, Criminal Trespass to Vehicles;
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16. Made or concealed a material fact in connection
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| with his application for a license;
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17. Acted in the capacity of a person licensed or
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| acted as a licensee under this Chapter without having a license therefor;
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18. Failed to pay, within 90 days after a final
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| judgment, any fines assessed against the licensee pursuant to an action brought under Section 5-404;
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19. Failed to pay the Dealer Recovery Trust Fund fee
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| under Section 5-102.7 of this Code;
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20. Failed to pay, within 90 days after notice has
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| been given, any fine or fee owed as a result of an administrative citation issued by the Secretary under this Code;
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21. Violated Article 16 or 17 of the Criminal Code of
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22. Was convicted of a forcible felony under either
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| the Criminal Code of 1961 or Criminal Code of 2012 or convicted of a similar out-of-state offense.
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(b) In addition to other grounds specified in this Chapter, the
Secretary of State, on complaint of the Department of Revenue, shall
refuse the issuance or renewal of a license, or suspend or revoke such
license, for any of the following violations of the "Retailers'
Occupation Tax Act", the tax imposed on corporations under subsection (b) of Section 201 of the Illinois Income Tax Act, the Personal Property Tax Replacement Income Tax imposed under subsections (c) and (d) of Section 201 of the Illinois Income Tax Act, or the tax imposed under Section 704A of the Illinois Income Tax Act:
1. Failure to make a tax return;
2. The filing of a fraudulent return;
3. Failure to pay all or part of any tax or penalty
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| finally determined to be due;
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4. Failure to comply with the bonding requirements of
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| the "Retailers' Occupation Tax Act".
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(b-1) In addition to other grounds specified in this Chapter, the
Secretary of State, on complaint of the Motor Vehicle Review Board, shall
refuse the issuance or renewal of a license, or suspend or revoke that
license, if costs or fees assessed under Section 29 or Section 30 of the Motor Vehicle Franchise Act have remained unpaid for a period in excess of 90 days after the licensee received from the Motor Vehicle Board a second notice and demand for the costs or fees. The Motor Vehicle Review Board must send the licensee written notice and demand for payment of the fees or costs at least 2 times, and the second notice and demand must be sent by certified mail.
(c) Cancellation of a license.
1. The license of a person issued under this Chapter
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| may be cancelled by the Secretary of State prior to its expiration in any of the following situations:
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A. When a license is voluntarily surrendered, by
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B. If the business enterprise is a sole
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| proprietorship, which is not a franchised dealership, when the sole proprietor dies or is imprisoned for any period of time exceeding 30 days; or
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C. If the license was issued to the wrong person
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| or corporation, or contains an error on its face. If any person above whose license has been cancelled wishes to apply for another license, whether during the same license year or any other year, that person shall be treated as any other new applicant and the cancellation of the person's prior license shall not, in and of itself, be a bar to the issuance of a new license.
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2. The license of a person issued under this Chapter
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| may be cancelled without a hearing when the Secretary of State is notified that the applicant, or any officer, director, shareholder having a 10 per cent or greater ownership interest in the corporation, owner, partner, trustee, manager, employee or member of the applicant or the licensee has been convicted of any felony involving the selling, bartering, exchanging, offering for sale, or otherwise dealing in vehicles, chassis, essential parts, vehicle shells, or ownership documents relating to any of the above items.
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(Source: P.A. 101-505, eff. 1-1-20 .)
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