Full Text of HB2322 96th General Assembly
HB2322 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB2322
Introduced 2/18/2009, by Rep. Jim Sacia SYNOPSIS AS INTRODUCED: |
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625 ILCS 5/5-102 |
from Ch. 95 1/2, par. 5-102 |
625 ILCS 5/5-102.5 new |
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Amends the Illinois Vehicle Code. Establishes a prelicensing education
program for used vehicle dealers. Requires at least one person who is associated with a used vehicle dealer to complete a minimum of 8 hours of prelicensing
education program courses prior to the dealership applying for a license with the Secretary of State. Provides that the Illinois Independent Automobile Dealers Association, in
consultation with the Secretary of State, the Department of Transportation, and the Attorney General, shall develop the
prelicensing course curricula for the
used vehicle dealer education program, which shall
include, but not be limited to, examination of federal and State
laws applicable to the motor vehicle industry and federal and
State regulations pertaining to used vehicle dealers.
Provides that the education program courses shall be provided by the Illinois Independent Automobile Dealers Association. Effective August 1, 2009.
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A BILL FOR
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HB2322 |
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LRB096 09106 AJT 19249 b |
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| AN ACT concerning transportation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Vehicle Code is amended by changing | 5 |
| Section 5-102 and by adding Section 5-102.5 as follows:
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| (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
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| Sec. 5-102. Used vehicle dealers must be licensed.
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| (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.
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| (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:
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| 1. The name and type of business organization |
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| established and additional
places of business, if any, in | 2 |
| this State.
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| 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
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| organization, the names and residence address of the | 10 |
| proprietor or of
each partner, member, officer, director, | 11 |
| trustee or manager.
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| 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
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| 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
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| Retailers' Occupation Tax Act.
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| 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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| 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.
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| 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
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| 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
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| insurer shall be the primary insurer and the permitted |
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| user's insurer shall be
the secondary
insurer.
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| 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.
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| 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
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| 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.
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| 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.
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| 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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| the used vehicle dealer while the
user's vehicle is being | 2 |
| repaired or evaluated.
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| 5. An application for a used vehicle dealer's license | 4 |
| shall be
accompanied by the following license fees:
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| $1,000 for applicant's established place of business, | 6 |
| and
$50 for
each additional place of business, if any, to | 7 |
| which the application
pertains; however, if the | 8 |
| application is made after June 15 of any
year, the license | 9 |
| fee shall be $500 for applicant's established
place of
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| business plus $25 for each additional place of business, if | 11 |
| any,
to
which the application pertains. License fees shall | 12 |
| be returnable only in
the event that the application is | 13 |
| denied by
the Secretary of State. Of the money received by | 14 |
| the Secretary of State as
license fees under this Section | 15 |
| for the 2004 licensing year and thereafter, 95%
shall be | 16 |
| deposited into the General Revenue Fund.
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| 6. A statement that the applicant's officers, | 18 |
| directors, shareholders
having a 10% or greater ownership | 19 |
| interest therein, proprietor, partner,
member, officer, | 20 |
| director, trustee, manager or other principals in the
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| business have not committed in the past 3 years any one | 22 |
| violation as
determined in any civil, criminal or | 23 |
| administrative proceedings of any one
of the following | 24 |
| Acts:
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| (A) The Anti Theft Laws of the Illinois Vehicle | 26 |
| Code;
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| (B) The Certificate of Title Laws of the Illinois | 2 |
| Vehicle Code;
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| (C) The Offenses against Registration and | 4 |
| Certificates of Title
Laws of the Illinois Vehicle | 5 |
| Code;
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| (D) The Dealers, Transporters, Wreckers and | 7 |
| Rebuilders Laws of the
Illinois Vehicle Code;
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| (E) Section 21-2 of the Illinois Criminal Code of | 9 |
| 1961, Criminal
Trespass to Vehicles; or
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| (F) The Retailers' Occupation Tax Act.
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| 7. A statement that the applicant's officers, | 12 |
| directors,
shareholders having a 10% or greater ownership | 13 |
| interest therein,
proprietor, partner, member, officer, | 14 |
| director, trustee, manager or
other principals in the | 15 |
| business have not committed in any calendar year
3 or more | 16 |
| violations, as determined in any civil or criminal or
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| administrative proceedings, of any one or more of the | 18 |
| following Acts:
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| (A) The Consumer Finance Act;
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| (B) The Consumer Installment Loan Act;
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| (C) The Retail Installment Sales Act;
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| (D) The Motor Vehicle Retail Installment Sales | 23 |
| Act;
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| (E) The Interest Act;
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| (F) The Illinois Wage Assignment Act;
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| (G) Part 8 of Article XII of the Code of Civil |
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| Procedure; or
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| (H) The Consumer Fraud Act.
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| 8. A bond or Certificate of Deposit in the amount of | 4 |
| $20,000 for
each location at which the applicant intends to | 5 |
| act as a used vehicle
dealer. The bond shall be for the | 6 |
| term of the license, or its renewal, for
which application | 7 |
| is made, and shall expire not sooner than December 31 of
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| the year for which the license was issued or renewed. The | 9 |
| bond shall run
to the People of the State of Illinois, with | 10 |
| surety by a bonding or
insurance company authorized to do | 11 |
| business in this State. It shall be
conditioned upon the | 12 |
| proper transmittal of all title and registration fees
and | 13 |
| taxes (excluding taxes under the Retailers' Occupation Tax | 14 |
| Act) accepted
by the applicant as a used vehicle dealer.
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| 9. Such other information concerning the business of | 16 |
| the applicant as
the Secretary of State may by rule or | 17 |
| regulation prescribe.
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| 10. A statement that the applicant understands Chapter | 19 |
| 1 through
Chapter 5 of this Code.
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| 11. A copy of the certification from the prelicensing | 21 |
| education
program. | 22 |
| (c) Any change which renders no longer accurate any | 23 |
| information
contained in any application for a used vehicle | 24 |
| dealer's license shall
be amended within 30 days after the | 25 |
| occurrence of each change on such
form as the Secretary of | 26 |
| State may prescribe by rule or regulation,
accompanied by an |
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| amendatory fee of $2.
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| (d) Anything in this Chapter to the contrary | 3 |
| notwithstanding, no
person shall be licensed as a used vehicle | 4 |
| dealer unless such person
maintains an established place of | 5 |
| business as
defined in this Chapter.
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| (e) The Secretary of State shall, within a reasonable time | 7 |
| after
receipt, examine an application submitted to him under | 8 |
| this Section.
Unless the Secretary makes a determination that | 9 |
| the application
submitted to him does not conform to this | 10 |
| Section or that grounds exist
for a denial of the application | 11 |
| under Section 5-501 of this Chapter, he
must grant the | 12 |
| applicant an original used vehicle dealer's license in
writing | 13 |
| for his established place of business and a supplemental | 14 |
| license
in writing for each additional place of business in | 15 |
| such form as he may
prescribe by rule or regulation which shall | 16 |
| include the following:
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| 1. The name of the person licensed;
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| 2. If a corporation, the name and address of its | 19 |
| officers or if a
sole proprietorship, a partnership, an | 20 |
| unincorporated association or any
similar form of business | 21 |
| organization, the name and address of the
proprietor or of | 22 |
| each partner, member, officer, director, trustee or
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| manager;
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| 3. In case of an original license, the established | 25 |
| 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 | 2 |
| additional place of business to which such
supplemental | 3 |
| license pertains.
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| (f) The appropriate instrument evidencing the license or a | 5 |
| certified
copy thereof, provided by the Secretary of State | 6 |
| shall be kept posted,
conspicuously, in the established place | 7 |
| of business of the licensee and
in each additional place of | 8 |
| business, if any, maintained by such
licensee.
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| (g) Except as provided in subsection (h) of this Section, | 10 |
| all used
vehicle dealer's licenses granted under this Section | 11 |
| expire by operation
of law on December 31 of the calendar year | 12 |
| for which they are granted
unless sooner revoked or cancelled | 13 |
| under Section 5-501 of this Chapter.
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| (h) A used vehicle dealer's license may be renewed upon | 15 |
| application
and payment of the fee required herein, and | 16 |
| submission of proof of
coverage by an approved bond under the | 17 |
| "Retailers' Occupation Tax Act"
or proof that applicant is not | 18 |
| subject to such bonding requirements, as
in the case of an | 19 |
| original license, but in case an application for the
renewal of | 20 |
| an effective license is made during the month of December,
the | 21 |
| effective license shall remain in force until the application | 22 |
| for
renewal is granted or denied by the Secretary of State.
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| (i) All persons licensed as a used vehicle dealer are | 24 |
| required to
furnish each purchaser of a motor vehicle:
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| 1. A certificate of title properly assigned to the | 26 |
| purchaser;
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| 2. A statement verified under oath that all identifying | 2 |
| numbers on
the vehicle agree with those on the certificate | 3 |
| of title;
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| 3. A bill of sale properly executed on behalf of such | 5 |
| person;
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| 4. A copy of the Uniform Invoice-transaction reporting | 7 |
| return
referred to in Section 5-402 of this Chapter;
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| 5. In the case of a rebuilt vehicle, a copy of the | 9 |
| Disclosure of Rebuilt
Vehicle Status; and
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| 6. In the case of a vehicle for which the warranty has | 11 |
| been reinstated, a
copy of the warranty.
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| (j) A real estate broker holding a valid certificate of | 13 |
| registration issued
pursuant to "The Real Estate Brokers and | 14 |
| Salesmen License Act" may engage
in the business of selling or | 15 |
| dealing in house trailers not his own without
being licensed as | 16 |
| a used vehicle dealer under this Section; however such
broker | 17 |
| shall maintain a record of the transaction including the | 18 |
| following:
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| (1) the name and address of the buyer and seller,
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| (2) the date of sale,
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| (3) a description of the mobile home, including the | 22 |
| vehicle identification
number, make, model, and year, and
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| (4) the Illinois certificate of title number.
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| The foregoing records shall be available for inspection by | 25 |
| any officer
of the Secretary of State's Office at any | 26 |
| reasonable hour.
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| (k) Except at the time of sale or repossession of the | 2 |
| vehicle, no
person licensed as a used vehicle dealer may issue | 3 |
| any other person a newly
created key to a vehicle unless the | 4 |
| used vehicle dealer makes a copy of the
driver's license or | 5 |
| State identification card of the person requesting or
obtaining | 6 |
| the newly created key. The used vehicle dealer must retain the
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| copy for 30 days.
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| A used vehicle dealer who violates this subsection (k) is | 9 |
| guilty of a
petty offense. Violation of this subsection (k) is | 10 |
| not cause to suspend,
revoke, cancel, or deny renewal of the | 11 |
| used vehicle dealer's license. | 12 |
| (l) Used vehicle dealers licensed under this Section shall | 13 |
| provide the Secretary of State a register for the sale at | 14 |
| auction of each salvage or junk certificate vehicle. Each | 15 |
| register shall include the following information: | 16 |
| 1. The year, make, model, style and color of the | 17 |
| vehicle; | 18 |
| 2. The vehicle's manufacturer's identification number | 19 |
| or, if applicable, the Secretary of State or Illinois | 20 |
| Department of State Police identification number; | 21 |
| 3. The date of acquisition of the vehicle; | 22 |
| 4. The name and address of the person from whom the | 23 |
| vehicle was acquired; | 24 |
| 5. The name and address of the person to whom any | 25 |
| vehicle was disposed, the person's Illinois license number | 26 |
| or if the person is an out-of-state salvage vehicle buyer, |
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| the license number from the state or jurisdiction where the | 2 |
| buyer is licensed; and | 3 |
| 6. The purchase price of the vehicle. | 4 |
| The register shall be submitted to the Secretary of State | 5 |
| via written or electronic means within 10 calendar days from | 6 |
| the date of the auction.
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| (Source: P.A. 95-783, eff. 1-1-09.)
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| (625 ILCS 5/5-102.5 new) | 9 |
| Sec. 5-102.5. Used vehicle dealer prelicensing education | 10 |
| program courses. | 11 |
| (a) An applicant for a license as a used vehicle
dealer | 12 |
| shall complete a minimum of 8 hours of prelicensing
education | 13 |
| program courses pursuant to this Section prior to
submitting an | 14 |
| application to the Secretary of State. | 15 |
| (b) To meet the requirements of this Section, at least one
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| individual who is associated with the used vehicle
dealer as an | 17 |
| owner, principal, corporate officer, director, or
member or | 18 |
| partner of a limited liability company or limited
liability | 19 |
| partnership shall complete the education program
courses. | 20 |
| (c) The Illinois Independent Automobile Dealers | 21 |
| Association, in
consultation with the Secretary of State, the | 22 |
| Department of Transportation, and the Attorney General, shall | 23 |
| develop the
prelicensing course curricula for the
used vehicle | 24 |
| dealer education program, which shall
include, but not be | 25 |
| limited to, examination of federal and State
laws applicable to |
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| the motor vehicle industry and federal and
State regulations | 2 |
| pertaining to used vehicle dealers.
The education program | 3 |
| courses shall be provided by the Illinois Independent | 4 |
| Automobile Dealers Association. | 5 |
| (d) The Illinois Independent Automobile Dealers | 6 |
| Association shall issue a certificate to each
person who | 7 |
| successfully completes the prelicensing education
program | 8 |
| under this Section.
The current certificate of completion, or a | 9 |
| copy of the
certificate, shall be posted conspicuously in the | 10 |
| principal
office of the licensee. | 11 |
| (e) The provisions of this Section apply to all used | 12 |
| vehicle dealers including, but not limited to, individuals,
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| corporations, and partnerships, except for the following: | 14 |
| (1) Motor vehicle rental companies having a national
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| franchise; | 16 |
| (2) National motor vehicle auction companies; | 17 |
| (3) Wholesale dealer-only auction companies; | 18 |
| (4) Used vehicle dealerships owned by a franchise motor | 19 |
| vehicle
dealer; and | 20 |
| (5) Banks, credit unions, and savings and loan
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| associations.
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| Section 99. Effective date. This Act takes effect August 1, | 23 |
| 2009.
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