Illinois General Assembly - Full Text of HB2508
Illinois General Assembly

Previous General Assemblies

Full Text of HB2508  98th General Assembly




HB2508 EngrossedLRB098 08562 JLS 38677 b

1    AN ACT concerning business.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Motor Vehicle Franchise Act is amended by
5changing Section 10.1 as follows:
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
8every motor vehicle having a seat or saddle for the use of the
9rider and designed to travel with 3 or less wheels in contact
10with the ground, excluding farm, garden, and lawn equipment,
11and including off-highway vehicles.
12    (b) It shall be deemed a violation for a manufacturer, a
13distributor, a wholesaler, a distributor branch or division, or
14officer, 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) Whenever any motorcycle dealer enters into a
21    franchise agreement, evidenced by a contract, with a
22    wholesaler, manufacturer or distributor wherein the
23    franchisee agrees to maintain an inventory and the contract



HB2508 Engrossed- 2 -LRB098 08562 JLS 38677 b

1    is terminated by the wholesaler, manufacturer,
2    distributor, or franchisee, then the franchisee may
3    require the repurchase of the inventory as provided for in
4    this Act. If the franchisee has any outstanding debts to
5    the wholesaler, manufacturer or distributor then the
6    repurchase amount may be credited to the franchisee's
7    account. The franchise agreement shall either expressly or
8    by operation of law have as part of its terms a security
9    agreement whereby the wholesaler, manufacturer, or
10    distributor agrees to and does grant a security interest to
11    the motorcycle dealer in the repurchased inventory to
12    secure payment of the repurchase amount to the dealer. The
13    perfection, priority, and other matters relating to the
14    security interest shall be governed by Article 9 of the
15    Uniform Commercial Code. The provisions of this Section
16    shall not be construed to affect in any way any security
17    interest that any financial institution, person,
18    wholesaler, manufacturer, or distributor may have in the
19    inventory of the motorcycle dealer.
20        (4) To require a motorcycle dealer to install on the
21    dealership premises any fixtures, displays, or lighting
22    not specifically related to products not made by the
23    manufacturer.
24        (5) To require a motorcycle dealer to buy fixtures or
25    lighting that is to be installed in the dealership only
26    from the manufacturer's approved fixture, display, or



HB2508 Engrossed- 3 -LRB098 08562 JLS 38677 b

1    lighting distributor.
2        (6) To require a motorcycle dealer to segregate or
3    locate aftermarket products of one manufacturer into or
4    away from products of other manufacturers.
5        (7) To require a motorcycle dealer to relocate to a new
6    or alternate facility.
7    (c) The provisions of this Section 10.1 are applicable to
8all new or existing motorcycle franchisees and franchisors and
9are in addition to the other rights and remedies provided in
10this Act, and, in the case of a conflict with other provisions
11contained in this Act, with respect to motorcycle franchises,
12this Section shall be controlling.
13    (d) The filing of a timely protest by a motorcycle
14franchise before the Motor Vehicle Review Board as prescribed
15by Sections 12 and 29 of this Act, shall stay the effective
16date of a proposed additional franchise or selling agreement,
17or the effective date of a proposed motorcycle dealership
18relocation, or the effective date of a cancellation,
19termination or modification, or extend the expiration date of a
20franchise or selling agreement by refusal to honor succession
21to ownership or refusal to approve a sale or transfer pending a
22final determination of the issues in the hearing.
23(Source: P.A. 91-142, eff. 7-16-99.)