Public Act 096-0678
 
HB2322 Enrolled LRB096 09106 AJT 19249 b

    AN ACT concerning transportation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Vehicle Code is amended by changing
Section 5-102 and by adding Section 5-102.5 as follows:
 
    (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)
    Sec. 5-102. Used vehicle dealers must be licensed.
    (a) No person, other than a licensed new vehicle dealer,
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 house trailers as authorized by
paragraph (j) of this Section and 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 is so engaged or intends to so engage in
such business unless licensed to do so by the Secretary of
State under the provisions of this Section.
    (b) An application for a 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.
        2. If the applicant is a corporation, a list of its
    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.
        3. A statement that the applicant has been approved 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 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.
        4. A statement that the applicant has complied with 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 proposes to
    act as a 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, two or more persons in any
    one accident, 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. Trailer and mobile home dealers are
    exempt from this requirement.
        If the permitted user has 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 accident, 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 accident, 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.
        When a permitted user is "test driving" a used vehicle
    dealer's automobile, the used vehicle dealer's insurance
    shall be primary and the permitted user's insurance shall
    be secondary.
        As used in this paragraph 4, a "permitted user" is a
    person who, with the permission of the used vehicle dealer
    or an employee of the used vehicle dealer, drives a vehicle
    owned and held for sale or lease by the used vehicle dealer
    which the person is considering to purchase or lease, in
    order to evaluate the performance, reliability, or
    condition of the vehicle. The term "permitted user" also
    includes a person who, with the permission of the used
    vehicle dealer, drives a vehicle owned or held for sale or
    lease by the used vehicle dealer for loaner purposes while
    the user's vehicle is being repaired or evaluated.
        As used in this paragraph 4, "test driving" occurs when
    a permitted user who, with the permission of the used
    vehicle dealer or an employee of the used vehicle dealer,
    drives a vehicle owned and held for sale or lease by a used
    vehicle dealer that the person is considering to purchase
    or lease, in order to evaluate the performance,
    reliability, or condition of the vehicle.
        As used in this paragraph 4, "loaner purposes" means
    when a person who, with the permission of the 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.
        5. An application for a used vehicle dealer's license
    shall be accompanied by the following license fees:
        $1,000 for applicant's established place 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 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 in the event that the application is
    denied by the Secretary of State. Of the money received by
    the Secretary of State as license fees under this Section
    for the 2004 licensing year and thereafter, 95% shall be
    deposited into the General Revenue Fund.
        6. A statement that the applicant's officers,
    directors, shareholders having a 10% or greater ownership
    interest therein, proprietor, partner, member, officer,
    director, trustee, manager or other principals in the
    business have 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
    Acts:
            (A) The Anti Theft Laws of the Illinois Vehicle
        Code;
            (B) The Certificate of Title Laws of the Illinois
        Vehicle Code;
            (C) The Offenses against Registration and
        Certificates of Title Laws of the Illinois Vehicle
        Code;
            (D) The Dealers, Transporters, Wreckers and
        Rebuilders Laws of the Illinois Vehicle Code;
            (E) Section 21-2 of the Illinois Criminal Code of
        1961, Criminal Trespass to Vehicles; or
            (F) The Retailers' Occupation Tax Act.
        7. A statement that the applicant's officers,
    directors, shareholders having a 10% 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:
            (A) The Consumer Finance Act;
            (B) The Consumer Installment Loan Act;
            (C) The Retail Installment Sales Act;
            (D) The Motor Vehicle Retail Installment Sales
        Act;
            (E) The Interest Act;
            (F) The Illinois Wage Assignment Act;
            (G) Part 8 of Article XII of the Code of Civil
        Procedure; or
            (H) The Consumer Fraud Act.
        8. A bond or Certificate of Deposit in the amount of
    $20,000 for each location at which the applicant intends to
    act as a used vehicle dealer. The bond shall be for the
    term of the license, or its renewal, for which application
    is made, and shall expire not sooner than December 31 of
    the year for which the license was issued or renewed. 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 used vehicle dealer.
        9. Such other information concerning the business of
    the applicant as the Secretary of State may by rule or
    regulation prescribe.
        10. A statement that the applicant understands Chapter
    1 through Chapter 5 of this Code.
        11. A copy of the certification from the prelicensing
    education program.
    (c) Any change which renders no longer accurate any
information contained in any application for a 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 or regulation, accompanied by an
amendatory fee of $2.
    (d) Anything in this Chapter to the contrary
notwithstanding, no person shall be licensed as a used vehicle
dealer unless such person maintains an established place of
business as defined in this Chapter.
    (e) The Secretary of State shall, within a reasonable time
after receipt, examine an application submitted to him under
this Section. Unless the Secretary makes a determination that
the application submitted to him does not conform to this
Section or that grounds exist for a denial of the application
under Section 5-501 of this Chapter, he must grant the
applicant an original used vehicle dealer's license 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
    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;
        3. In case of an original license, the established
    place of business of the licensee;
        4. In the case of a supplemental license, the
    established place of business of the licensee and the
    additional place of business to which such supplemental
    license pertains.
    (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.
    (g) Except as provided in subsection (h) of this Section,
all 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.
    (h) A 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 applicant is not
subject to such bonding requirements, as in the case of an
original license, but in case an application for the renewal of
an effective license is 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.
    (i) All persons licensed as a used vehicle dealer are
required to furnish each purchaser of a motor vehicle:
        1. A certificate of title properly assigned to the
    purchaser;
        2. A statement verified under oath that all identifying
    numbers on the vehicle agree with those on the certificate
    of title;
        3. A bill of sale properly executed on behalf of such
    person;
        4. A copy of the Uniform Invoice-transaction reporting
    return referred to in Section 5-402 of this Chapter;
        5. In the case of a rebuilt vehicle, a copy of the
    Disclosure of Rebuilt Vehicle Status; and
        6. In the case of a vehicle for which the warranty has
    been reinstated, a copy of the warranty.
    (j) A real estate broker holding a valid certificate of
registration issued pursuant to "The Real Estate Brokers and
Salesmen License Act" may engage in the business of selling or
dealing in house trailers not his own without being licensed as
a used vehicle dealer under this Section; however such broker
shall maintain a record of the transaction including the
following:
        (1) the name and address of the buyer and seller,
        (2) the date of sale,
        (3) a description of the mobile home, including the
    vehicle identification number, make, model, and year, and
        (4) the Illinois certificate of title number.
    The foregoing records shall be available for inspection by
any officer of the Secretary of State's Office at any
reasonable hour.
    (k) Except at the time of sale or repossession of the
vehicle, no person licensed as a used vehicle dealer may issue
any other person a newly created key to a vehicle unless the
used vehicle dealer makes a copy of the driver's license or
State identification card of the person requesting or obtaining
the newly created key. The used vehicle dealer must retain the
copy for 30 days.
    A 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) Used vehicle dealers 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
    vehicle;
        2. The vehicle's manufacturer's identification number
    or, if applicable, the Secretary of State or Illinois
    Department of State Police identification number;
        3. The date of acquisition of the vehicle;
        4. The name and address of the person from whom the
    vehicle was acquired;
        5. The name and address of the person to whom any
    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
        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.
(Source: P.A. 95-783, eff. 1-1-09.)
 
    (625 ILCS 5/5-102.5 new)
    Sec. 5-102.5. Used vehicle dealer prelicensing education
program courses.
    (a) An applicant for a license as a used vehicle dealer
shall complete a minimum of 8 hours of prelicensing education
program courses pursuant to this Section prior to submitting an
application to the Secretary of State.
    (b) To meet the requirements of this Section, at least one
individual who is associated with the used vehicle dealer as an
owner, principal, corporate officer, director, or member or
partner of a limited liability company or limited liability
partnership shall complete the education program courses.
    (c) The education program courses shall be provided by
public or private entities with an expertise in the area as
approved by the Secretary of State. The Secretary of State must
approve course curricula and instruction, in consultation with
the Illinois Department of Transportation and any private
entity with expertise in the area in the Secretary of State's
discretion.
    (d) Each person who successfully completes an approved
prelicensing education program under this Section shall be
issued a certificate by the education program provider of the
course. The current certificate of completion, or a copy of the
certificate, shall be posted conspicuously in the principal
office of the licensee.
    (e) The provisions of this Section apply to all used
vehicle dealers including, but not limited to, individuals,
corporations, and partnerships, except for the following:
        (1) Motor vehicle rental companies having a national
    franchise;
        (2) National motor vehicle auction companies;
        (3) Wholesale dealer-only auction companies;
        (4) Used vehicle dealerships owned by a franchise motor
    vehicle dealer; and
        (5) Banks, credit unions, and savings and loan
    associations.
 
    Section 99. Effective date. This Act takes effect August 1,
2009.