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| | HB4925 Enrolled | | LRB103 37949 SPS 68081 b |
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| 1 | | AN ACT concerning business.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Motor Vehicle Franchise Act is amended by |
| 5 | | changing Section 10.1 as follows:
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| 6 | | (815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1) |
| 7 | | Sec. 10.1. (a) As used in this Section, "motorcycle" means |
| 8 | | every motor vehicle having a seat or saddle for the use of the |
| 9 | | rider and designed to travel with 3 or less wheels in contact |
| 10 | | with the ground, excluding farm, garden, and lawn equipment, |
| 11 | | and including off-highway vehicles. |
| 12 | | (b) It shall be deemed a violation for a manufacturer, a |
| 13 | | distributor, a wholesaler, a distributor branch or division, |
| 14 | | or officer, agent, or other representative thereof: |
| 15 | | (1) To require a motorcycle franchisee to participate |
| 16 | | in a retail financing plan or retail leasing plan or to |
| 17 | | participate in any retail consumer insurance plan. |
| 18 | | (2) To own, to operate or to control any motorcycle |
| 19 | | dealership in this State for a period longer than 2 years. |
| 20 | | (3) (Blank). |
| 21 | | (4) To require a motorcycle dealer to utilize |
| 22 | | manufacturer approved floor fixtures for the display of |
| 23 | | any product that is not a product of the manufacturer. |
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| 1 | | (5) To require a motorcycle dealer to purchase |
| 2 | | lighting fixtures that are to be installed in the |
| 3 | | dealership only from the manufacturer's approved vendors. |
| 4 | | (6) To require a motorcycle dealer to relocate to a |
| 5 | | new or alternate facility. |
| 6 | | (7) To coerce or require any motorcycle dealer to |
| 7 | | construct improvements to the dealer's facility at a |
| 8 | | substantial cost to the dealer or to condition any |
| 9 | | motorcycle dealer's eligibility for payments under any |
| 10 | | discount, credit, rebate, sales incentive, or similar |
| 11 | | program on the dealer constructing improvements to the |
| 12 | | dealer's facility at a substantial cost to the dealer. As |
| 13 | | used in this paragraph (7), "substantial cost" means an |
| 14 | | amount equal to or greater than 10% of a motorcycle |
| 15 | | dealer's average annual net profits for the 3 years |
| 16 | | preceding the proposed improvements to that dealer's |
| 17 | | facility. |
| 18 | | Whenever any motorcycle dealer enters into a franchise |
| 19 | | agreement, evidenced by a contract, with a wholesaler, |
| 20 | | manufacturer, or distributor wherein the franchisee agrees to |
| 21 | | maintain an inventory and the contract is terminated by the |
| 22 | | wholesaler, manufacturer, distributor, or franchisee, then the |
| 23 | | franchisee may require the repurchase of the inventory as |
| 24 | | provided for in this Act. If the franchisee has any |
| 25 | | outstanding debts to the wholesaler, manufacturer, or |
| 26 | | distributor, then the repurchase amount may be credited to the |
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| 1 | | franchisee's account. The franchise agreement shall either |
| 2 | | expressly or by operation of law have as part of its terms a |
| 3 | | security agreement whereby the wholesaler, manufacturer, or |
| 4 | | distributor agrees to and does grant a security interest to |
| 5 | | the motorcycle dealer in the repurchased inventory to secure |
| 6 | | payment of the repurchase amount to the dealer. The |
| 7 | | perfection, priority, and other matters relating to the |
| 8 | | security interest shall be governed by Article 9 of the |
| 9 | | Uniform Commercial Code. The provisions of this Section shall |
| 10 | | not be construed to affect in any way any security interest |
| 11 | | that any financial institution, person, wholesaler, |
| 12 | | manufacturer, or distributor may have in the inventory of the |
| 13 | | motorcycle dealer. |
| 14 | | (c) The provisions of this Section 10.1 are applicable to |
| 15 | | all new or existing motorcycle franchisees and franchisers and |
| 16 | | are in addition to the other rights and remedies provided in |
| 17 | | this Act, and, in the case of a conflict with other provisions |
| 18 | | contained in this Act, with respect to motorcycle franchises, |
| 19 | | this Section shall be controlling. |
| 20 | | (d) The filing of a timely protest by a motorcycle |
| 21 | | franchise before the Motor Vehicle Review Board as prescribed |
| 22 | | by Sections 12 and 29 of this Act, shall stay the effective |
| 23 | | date of a proposed additional franchise or selling agreement, |
| 24 | | or the effective date of a proposed motorcycle dealership |
| 25 | | relocation, or the effective date of a cancellation, |
| 26 | | termination, or modification, or extend the expiration date of |