95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0483

 

Introduced 2/1/2007, by Rep. Jack McGuire

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/5-102   from Ch. 95 1/2, par. 5-102

    Amends the Illinois Vehicle Code with regard to new and used vehicle dealer license fees. Provides that the fee varies according to the number of vehicles sold by the dealer during the previous year. Provides that a dealer's license application shall indicate the number of vehicles sold by the dealer the previous year, supported by documentation prescribed by the Secretary of State. Sets a new schedule of license fees for new and used vehicle dealers, including one fee for the applicant's established place of business and a lower fee for each additional place of business, if any, to which the application pertains. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0483 LRB095 07271 DRH 27409 b

1     AN ACT concerning transportation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Vehicle Code is amended by changing
5 Section 5-102 as follows:
 
6     (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)
7     Sec. 5-102. Used vehicle dealers must be licensed.
8     (a) No person, other than a licensed new vehicle dealer,
9 shall engage in the business of selling or dealing in, on
10 consignment or otherwise, 5 or more used vehicles of any make
11 during the year (except house trailers as authorized by
12 paragraph (j) of this Section and rebuilt salvage vehicles sold
13 by their rebuilders to persons licensed under this Chapter), or
14 act as an intermediary, agent or broker for any licensed dealer
15 or vehicle purchaser (other than as a salesperson) or represent
16 or advertise that he is so engaged or intends to so engage in
17 such business unless licensed to do so by the Secretary of
18 State under the provisions of this Section.
19     (b) An application for a used vehicle dealer's license
20 shall be filed with the Secretary of State, duly verified by
21 oath, in such form as the Secretary of State may by rule or
22 regulation prescribe and shall contain:
23         1. The name and type of business organization

 

 

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1     established and additional places of business, if any, in
2     this State.
3         2. If the applicant is a corporation, a list of its
4     officers, directors, and shareholders having a ten percent
5     or greater ownership interest in the corporation, setting
6     forth the residence address of each; if the applicant is a
7     sole proprietorship, a partnership, an unincorporated
8     association, a trust, or any similar form of business
9     organization, the names and residence address of the
10     proprietor or of each partner, member, officer, director,
11     trustee or manager.
12         3. A statement that the applicant has been approved for
13     registration under the Retailers' Occupation Tax Act by the
14     Department of Revenue. However, this requirement does not
15     apply to a dealer who is already licensed hereunder with
16     the Secretary of State, and who is merely applying for a
17     renewal of his license. As evidence of this fact, the
18     application shall be accompanied by a certification from
19     the Department of Revenue showing that the Department has
20     approved the applicant for registration under the
21     Retailers' Occupation Tax Act.
22         4. A statement that the applicant has complied with the
23     appropriate liability insurance requirement. A Certificate
24     of Insurance in a solvent company authorized to do business
25     in the State of Illinois shall be included with each
26     application covering each location at which he proposes to

 

 

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

 

 

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1     user's insurer shall be the secondary insurer.
2         When a permitted user is "test driving" a used vehicle
3     dealer's automobile, the used vehicle dealer's insurance
4     shall be primary and the permitted user's insurance shall
5     be secondary.
6         As used in this paragraph 4, a "permitted user" is a
7     person who, with the permission of the used vehicle dealer
8     or an employee of the used vehicle dealer, drives a vehicle
9     owned and held for sale or lease by the used vehicle dealer
10     which the person is considering to purchase or lease, in
11     order to evaluate the performance, reliability, or
12     condition of the vehicle. The term "permitted user" also
13     includes a person who, with the permission of the used
14     vehicle dealer, drives a vehicle owned or held for sale or
15     lease by the used vehicle dealer for loaner purposes while
16     the user's vehicle is being repaired or evaluated.
17         As used in this paragraph 4, "test driving" occurs when
18     a permitted user who, with the permission of the used
19     vehicle dealer or an employee of the used vehicle dealer,
20     drives a vehicle owned and held for sale or lease by a used
21     vehicle dealer that the person is considering to purchase
22     or lease, in order to evaluate the performance,
23     reliability, or condition of the vehicle.
24         As used in this paragraph 4, "loaner purposes" means
25     when a person who, with the permission of the used vehicle
26     dealer, drives a vehicle owned or held for sale or lease by

 

 

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1     the used vehicle dealer while the user's vehicle is being
2     repaired or evaluated.
3         5. An application for a used vehicle dealer's license
4     shall indicate the number of vehicles sold by the dealer
5     during the previous year, supported by documentation
6     prescribed by the Secretary, and shall be accompanied by
7     the following license fees:
8              (A) for dealers that sold 2,500 or more vehicles
9         the previous year: $1,500 for the applicant's
10         established place of business; $750 for each
11         additional place of business, if any, to which the
12         application pertains;
13             (B) for dealers that sold 1,500 to 2,499 vehicles
14         the previous year: $1,250 for the applicant's
15         established place of business; $625 for each
16         additional place of business, if any, to which the
17         application pertains;
18             (C) for dealers that sold 750 to 1,499 vehicles the
19         previous year: $1,000 for the applicant's established
20         place of business, $500 for each additional place of
21         business, if any, to which the application pertains;
22             (D) for dealers that sold 500 to 749 vehicles the
23         previous year: $750 for the applicant's established
24         place of business; $375 for each additional place of
25         business, if any, to which the application pertains;
26             (E) for dealers that sold 200 to 499 vehicles the

 

 

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1         previous year: $500 for the applicant's established
2         place of business; $250 for each additional place of
3         business, if any, to which the application pertains;
4             (F) for dealers that sold 0 to 199 vehicles the
5         previous year: $250 for the applicant's established
6         place of business; $125 for each additional place of
7         business, if any, to which the application pertains;
8         but if the application is made after June 15 of any
9         year, the license fee shall be $125 for the applicant's
10         established place of business and $62.50 for each
11         additional place of business, if any, to which the
12         application pertains.
13         5.5. License fees for dealers that were not in business
14 the previous year: $1,000 for the applicant's primary place of
15 business and $100 for each additional place of business to
16 which the application pertains; but if the application is made
17 after June 15 of any year, the license fee shall be $500 for
18 the applicant's primary place of business and $50 for each
19 additional place of business, if any, to which the application
20 pertains.
21         $1,000 for applicant's established place of business,
22     and $50 for each additional place of business, if any, to
23     which the application pertains; however, if the
24     application is made after June 15 of any year, the license
25     fee shall be $500 for applicant's established place of
26     business plus $25 for each additional place of business, if

 

 

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1     any, to which the application pertains.
2         License fees shall be returnable only in the event that
3     the application is denied by the Secretary of State. Of the
4     money received by the Secretary of State as license fees
5     under this Section for the 2004 licensing year and
6     thereafter, 95% shall be deposited into the General Revenue
7     Fund.
8         6. A statement that the applicant's officers,
9     directors, shareholders having a 10% or greater ownership
10     interest therein, proprietor, partner, member, officer,
11     director, trustee, manager or other principals in the
12     business have not committed in the past 3 years any one
13     violation as determined in any civil, criminal or
14     administrative proceedings of any one of the following
15     Acts:
16             (A) The Anti Theft Laws of the Illinois Vehicle
17         Code;
18             (B) The Certificate of Title Laws of the Illinois
19         Vehicle Code;
20             (C) The Offenses against Registration and
21         Certificates of Title Laws of the Illinois Vehicle
22         Code;
23             (D) The Dealers, Transporters, Wreckers and
24         Rebuilders Laws of the Illinois Vehicle Code;
25             (E) Section 21-2 of the Illinois Criminal Code of
26         1961, Criminal Trespass to Vehicles; or

 

 

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1             (F) The Retailers' Occupation Tax Act.
2         7. A statement that the applicant's officers,
3     directors, shareholders having a 10% or greater ownership
4     interest therein, proprietor, partner, member, officer,
5     director, trustee, manager or other principals in the
6     business have not committed in any calendar year 3 or more
7     violations, as determined in any civil or criminal or
8     administrative proceedings, of any one or more of the
9     following Acts:
10             (A) The Consumer Finance Act;
11             (B) The Consumer Installment Loan Act;
12             (C) The Retail Installment Sales Act;
13             (D) The Motor Vehicle Retail Installment Sales
14         Act;
15             (E) The Interest Act;
16             (F) The Illinois Wage Assignment Act;
17             (G) Part 8 of Article XII of the Code of Civil
18         Procedure; or
19             (H) The Consumer Fraud Act.
20         8. A bond or Certificate of Deposit in the amount of
21     $20,000 for each location at which the applicant intends to
22     act as a used vehicle dealer. The bond shall be for the
23     term of the license, or its renewal, for which application
24     is made, and shall expire not sooner than December 31 of
25     the year for which the license was issued or renewed. The
26     bond shall run to the People of the State of Illinois, with

 

 

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1     surety by a bonding or insurance company authorized to do
2     business in this State. It shall be conditioned upon the
3     proper transmittal of all title and registration fees and
4     taxes (excluding taxes under the Retailers' Occupation Tax
5     Act) accepted by the applicant as a used vehicle dealer.
6         9. Such other information concerning the business of
7     the applicant as the Secretary of State may by rule or
8     regulation prescribe.
9         10. A statement that the applicant understands Chapter
10     1 through Chapter 5 of this Code.
11     (c) Any change which renders no longer accurate any
12 information contained in any application for a used vehicle
13 dealer's license shall be amended within 30 days after the
14 occurrence of each change on such form as the Secretary of
15 State may prescribe by rule or regulation, accompanied by an
16 amendatory fee of $2.
17     (d) Anything in this Chapter to the contrary
18 notwithstanding, no person shall be licensed as a used vehicle
19 dealer unless such person maintains an established place of
20 business as defined in this Chapter.
21     (e) The Secretary of State shall, within a reasonable time
22 after receipt, examine an application submitted to him under
23 this Section. Unless the Secretary makes a determination that
24 the application submitted to him does not conform to this
25 Section or that grounds exist for a denial of the application
26 under Section 5-501 of this Chapter, he must grant the

 

 

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1 applicant an original used vehicle dealer's license in writing
2 for his established place of business and a supplemental
3 license in writing for each additional place of business in
4 such form as he may prescribe by rule or regulation which shall
5 include the following:
6         1. The name of the person licensed;
7         2. If a corporation, the name and address of its
8     officers or if a sole proprietorship, a partnership, an
9     unincorporated association or any similar form of business
10     organization, the name and address of the proprietor or of
11     each partner, member, officer, director, trustee or
12     manager;
13         3. In case of an original license, the established
14     place of business of the licensee;
15         4. In the case of a supplemental license, the
16     established place of business of the licensee and the
17     additional place of business to which such supplemental
18     license pertains.
19     (f) The appropriate instrument evidencing the license or a
20 certified copy thereof, provided by the Secretary of State
21 shall be kept posted, conspicuously, in the established place
22 of business of the licensee and in each additional place of
23 business, if any, maintained by such licensee.
24     (g) Except as provided in subsection (h) of this Section,
25 all used vehicle dealer's licenses granted under this Section
26 expire by operation of law on December 31 of the calendar year

 

 

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

 

 

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1     (j) A real estate broker holding a valid certificate of
2 registration issued pursuant to "The Real Estate Brokers and
3 Salesmen License Act" may engage in the business of selling or
4 dealing in house trailers not his own without being licensed as
5 a used vehicle dealer under this Section; however such broker
6 shall maintain a record of the transaction including the
7 following:
8         (1) the name and address of the buyer and seller,
9         (2) the date of sale,
10         (3) a description of the mobile home, including the
11     vehicle identification number, make, model, and year, and
12         (4) the Illinois certificate of title number.
13     The foregoing records shall be available for inspection by
14 any officer of the Secretary of State's Office at any
15 reasonable hour.
16     (k) Except at the time of sale or repossession of the
17 vehicle, no person licensed as a used vehicle dealer may issue
18 any other person a newly created key to a vehicle unless the
19 used vehicle dealer makes a copy of the driver's license or
20 State identification card of the person requesting or obtaining
21 the newly created key. The used vehicle dealer must retain the
22 copy for 30 days.
23     A used vehicle dealer who violates this subsection (k) is
24 guilty of a petty offense. Violation of this subsection (k) is
25 not cause to suspend, revoke, cancel, or deny renewal of the
26 used vehicle dealer's license.

 

 

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1 (Source: P.A. 92-391, eff. 8-16-01; 92-835, eff. 6-1-03; 93-32,
2 eff. 7-1-03.)
 
3     Section 99. Effective date. This Act takes effect upon
4 becoming law.