HB3269enr 101ST GENERAL ASSEMBLY

  
  
  

 


 
HB3269 EnrolledLRB101 10800 TAE 55929 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Alternate Fuels Act is amended by changing
5Section 35 as follows:
 
6    (415 ILCS 120/35)
7    Sec. 35. User fees.
8    (a) The Office of the Secretary of State shall collect
9annual user fees from any individual, partnership,
10association, corporation, or agency of the United States
11government that registers any combination of 10 or more of the
12following types of motor vehicles in the Covered Area: (1)
13vehicles of the First Division, as defined in the Illinois
14Vehicle Code; (2) vehicles of the Second Division registered
15under the B, C, D, F, H, MD, MF, MG, MH and MJ plate categories,
16as defined in the Illinois Vehicle Code; and (3) commuter vans
17and livery vehicles as defined in the Illinois Vehicle Code.
18This Section does not apply to vehicles registered under the
19International Registration Plan under Section 3-402.1 of the
20Illinois Vehicle Code. The user fee shall be $20 for each
21vehicle registered in the Covered Area for each fiscal year.
22The Office of the Secretary of State shall collect the $20 when
23a vehicle's registration fee is paid.

 

 

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1    (b) Owners of State, county, and local government vehicles,
2rental vehicles, antique vehicles, expanded-use antique
3vehicles, electric vehicles, and motorcycles are exempt from
4paying the user fees on such vehicles.
5    (c) The Office of the Secretary of State shall deposit the
6user fees collected into the Alternate Fuels Fund.
7(Source: P.A. 97-412, eff. 1-1-12.)
 
8    Section 10. The Illinois Vehicle Code is amended by
9changing Sections 3-601, 3-602, 3-904, 5-101, 5-102, 5-102.5,
105-102.7, 5-401.2, 5-402.1, 5-403.1, 5-501 and 5-503 and by
11adding Sections 3-904.2, 3-904.5, 5-102.8, and 5-102.9 as
12follows:
 
13    (625 ILCS 5/3-601)  (from Ch. 95 1/2, par. 3-601)
14    Sec. 3-601. Operation of vehicles under special plates.
15    (a) A manufacturer owning any unregistered vehicle of a
16type otherwise required to be registered under this Act may
17operate or move such upon the highways without registering each
18such vehicle upon condition that any such vehicle display
19thereon, a special plate or plates issued to such owner as
20provided in this Article.
21    (b) A dealer owning any unregistered vehicle of a type
22otherwise required to be registered under this Act and held by
23him for sale or resale, may operate or move such upon the
24highways without registering each such vehicle upon condition

 

 

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1that any such vehicle display thereon a special plate or plates
2issued to such owner as provided in this Article. A dealer may
3use a special plate issued to the dealer to transport a vehicle
4sold to a customer either by towing or by driving the sold
5vehicle with the special plate attached to the vehicle.
6    (c) A transporter may operate or move any vehicle not owned
7by him upon the highways by the driveaway or towaway methods
8solely for the purpose of delivery upon likewise displaying
9thereon like plates issued to him as provided in this Article.
10    (d) A boat dealer owning any boat trailer of a type
11otherwise required to be registered under this Act may operate
12or move such upon the highways and haul a boat customarily sold
13with such boat trailer, without registering each such boat
14trailer upon condition that any such boat trailer display
15thereon, in the manner prescribed in Section 3-413, a special
16plate or plates issued to such owner as provided in this
17Article.
18    (e) Any person owning unregistered vehicles of a type
19required to be registered and which are exclusively operated
20off the highways and upon private property, may move such
21vehicles from one plant location to another upon the highways
22without registering each such vehicle upon conditions that any
23such vehicle display thereon a special plate or plates issued
24to such persons as provided in this Article. Such vehicles must
25be unladen and may not be operated upon any highways with such
26special plates except for the interplant movement.

 

 

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1    (f) Any person owning a vehicle of a type required to be
2registered which when purchased is not yet equipped for work or
3service, may move such vehicle from the point of original
4manufacture or sale to a body shop or other place where the
5vehicle is to be equipped for work or service and from such
6point to the owner's place of business without first
7registering each such vehicle upon condition that any such
8vehicle display thereon a special plate or plates issued to
9such person as provided in this Article. Upon completion of
10such movement, any such vehicle subject to registration must be
11properly registered.
12    (g) Special plates issued under this Article must be
13displayed in the manner provided for in Section 3-413.
14    (h) Any such vehicle bearing such special plate or plates
15may be operated without registration for any purpose, except
16that no such special plate or plates shall be used on any
17vehicle which is rented by the manufacturer or dealer to
18another person or which is used to transport passengers or
19property for hire, nor, except as provided in paragraph (i) of
20this Section, shall any such special plate or plates be used on
21a second division vehicle which is carrying cargo or
22merchandise except in demonstrating such second division
23vehicle for the purposes of sale, or for the purpose of testing
24engine and driveline components.
25    (i) The provisions of this Article authorizing special
26plates shall not apply to work or service vehicles owned by a

 

 

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1manufacturer, transporter or dealer except a truck up to 8,000
2pounds gross weight owned by a dealer and used for hauling
3parts incidental to the operation of the dealer's business.
4    (j) The Secretary of State may limit the number of special
5plates issued to any applicant.
6(Source: P.A. 78-753; 78-1297.)
 
7    (625 ILCS 5/3-602)  (from Ch. 95 1/2, par. 3-602)
8    Sec. 3-602. Certificate and special plates for dealers,
9manufacturers, and transporters.
10    (a) Any dealer, manufacturer, or transporter may make
11application to the Secretary of State upon the appropriate form
12for a certificate containing a general distinguishing number
13and for one or more sets of special plates as appropriate to
14various types of vehicles subject to registration hereunder.
15The applicant shall submit such proof of his or her status as a
16bona fide dealer, manufacturer, or transporter as may be
17reasonably required by the Secretary of State.
18    (b) The Secretary of State, upon granting any such
19application, shall issue to the applicant a certificate
20containing the applicant's name and address and special plates
21as applied for. Both the certificates and special plates shall
22display the general distinguishing number assigned to the
23applicant.
24    (c) The Secretary of State shall issue special plates to
25dealers and manufacturers in accordance with the following

 

 

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1formula:
2number vehiclesmaximum number setsmaximum number
3sold in previousof special platesadditional sets
4calendar yearissued at fee setissued at fee
5by Sec. 3-810set by Sec. 3-806
60 0 0
71-10 1 1
811-25 2 2
926-100 8 8
10101-2501212
11251-5002020
12501-7503030
13751-10004040
141001-15005050
151501-20006060
162001-25007070
172501+9090
18    For those Dealers with annual sales over 2501, special
19plates will be allocated based on 10 sets of plates under each
20section for each additional 500 vehicles sold.
21    The limit on the maximum number of additional sets issued
22to manufacturers at the fee set by Section 3-806 may be lifted
23at the discretion of the Secretary of State.
24    The Secretary shall issue to a new dealer or manufacturer
25not more than 8 sets of special plates at each fee. If the new
26dealer or manufacturer has acquired his or her business from a

 

 

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1previous dealer or manufacturer, he or she may be issued a
2number of sets based upon the number of vehicles sold in the
3previous calendar year by the previous dealer or manufacturer.
4If the new dealer or manufacturer was in business for only a
5part of the previous calendar year, the number of special
6plates to which he or she is entitled may be extrapolated from
7the number of vehicles he or she sold during that part of the
8year.
9    (c-5) The Secretary may limit the number of special plates
10authorized under this Section that are issued to dealers,
11manufacturers, or transporters based on factors including, but
12not limited to, sales of vehicles, revenue, or number of
13employees.
14    (d) Any manufacturer of engine and driveline components may
15apply to the Secretary of State for a license to operate
16vehicles in which such components are installed on the public
17highways of the State for the purpose of testing such
18components. The application shall describe the components and
19the vehicles in which they are installed, and shall contain
20such additional information as the Secretary shall prescribe.
21Upon receipt of an application and an accompanying fee of
22$1000, the Secretary shall issue to the applicant a license for
23the entire test period of the components described in the
24application.
25    Every licensee shall keep a record of each vehicle operated
26under such license which shall be open to inspection by the

 

 

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1Secretary or his authorized representative for inspection at
2any reasonable time during the day or night.
3    The license of a manufacturer of engine and driveline
4components may be denied, revoked or suspended if the Secretary
5finds that the manufacturer has:
6        (1) violated this Code;
7        (2) made any material misrepresentation to the
8    Secretary of State in connection with an application for a
9    license; or
10        (3) failed to produce for the Secretary of State any
11    record required to be produced by this Code.
12    This amendatory Act of 1983 shall be applicable to the 1984
13registration year and thereafter.
14(Source: P.A. 91-357, eff. 7-29-99.)
 
15    (625 ILCS 5/3-904)  (from Ch. 95 1/2, par. 3-904)
16    Sec. 3-904. Application; contents; affidavits; prelicense
17education certification - Contents - Affidavits.
18    (a) Any person who desires to act as a "remittance agent"
19shall first file with the Secretary of State a written
20application for a license. The application shall be under oath
21and shall contain the following:
22        1. The name and address of the applicant.
23        2. The address of each location at which the applicant
24    intends to act as a remittance agent.
25        3. The applicant's business, occupation or profession.

 

 

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1        4. A statement disclosing whether he has been involved
2    in any civil or criminal litigation and if so, the material
3    facts pertaining thereto.
4        5. A statement that the applicant has not committed in
5    the past 3 years any violation as determined in any civil,
6    criminal, or administrative proceedings under the
7    Retailers' Occupation Tax Act or under Article I or VII of
8    Chapter 3 of this Code.
9        6. Any other information concerning the business of the
10    applicant that the Secretary of State may prescribe.
11    (b) The application under subsection (a) shall be
12accompanied by the affidavits of two persons residing in the
13city or town of such applicant's residence. Such affiants shall
14state that they have known the applicant for a period of at
15least two years; that the applicant is of good moral character
16and that his reputation for honesty and business integrity in
17the community in which he resides is good. If the applicant is
18not an individual, the requirements of this paragraph shall
19apply to each of its officers or members.
20    (c) The application under subsection (a) shall be
21accompanied by a copy of the certification from the
22prelicensing education program required by Section 3-904.5.
23(Source: P.A. 97-832, eff. 7-20-12.)
 
24    (625 ILCS 5/3-904.2 new)
25    Sec. 3-904.2. Remittance agent background check. Each

 

 

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1applicant for a remittance license shall have his or her
2fingerprints submitted to the Department of State Police in an
3electronic format that complies with the form and manner for
4requesting and furnishing criminal history record information
5as prescribed by the Department of State Police. These
6fingerprints shall be checked against the Department of State
7Police and Federal Bureau of Investigation criminal history
8record databases now and hereafter filed, including, but not
9limited to, civil, criminal, and latent fingerprint databases.
10The Department of State Police shall charge applicants a fee
11for conducting the criminal history records check, which shall
12be deposited in the State Police Services Fund and shall not
13exceed the actual cost of the records check. The Department of
14State Police shall furnish, pursuant to positive
15identification, records of Illinois convictions to the
16Secretary of State.
 
17    (625 ILCS 5/3-904.5 new)
18    Sec. 3-904.5. Remittance agent prelicensing education
19program courses.
20    (a) An applicant for a license as a remittance agent shall
21complete a minimum of 8 hours of prelicensing education program
22courses under this Section prior to submitting an application
23to the Secretary of State.
24    (b) To meet the requirements of this Section, at least one
25person who is associated with the remittance agent as an owner,

 

 

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1principal, corporate officer, director, or member or partner of
2a limited liability company or limited liability partnership
3shall complete the education program courses.
4    (c) The prelicensing education program courses shall be
5provided by public or private entities with an expertise in the
6area as approved by the Secretary of State. The Secretary of
7State must approve course curricula and instruction, in
8consultation with the Department of Transportation and any
9private entity with expertise in the area in the Secretary's
10discretion.
11    (d) Each person who successfully completes an approved
12prelicensing education program under this Section shall be
13issued a certificate by the education program provider. The
14current certificate of completion, or a copy of the current
15certificate, shall be posted conspicuously in the principal
16office of the licensee.
17    (e) The provisions of this Section apply to all remittance
18agents including, but not limited to, persons, corporations,
19and partnerships, except for the following:
20        (1) motor vehicle rental companies having a national
21    franchise;
22        (2) national motor vehicle auction companies;
23        (3) wholesale dealer-only auction companies;
24        (4) used vehicle dealerships owned by a franchise motor
25    vehicle dealer; and
26        (5) banks, credit unions, and savings and loan

 

 

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1    associations.
 
2    (625 ILCS 5/5-101)  (from Ch. 95 1/2, par. 5-101)
3    Sec. 5-101. New vehicle dealers must be licensed.
4    (a) No person shall engage in this State in the business of
5selling or dealing in, on consignment or otherwise, new
6vehicles of any make, or act as an intermediary or agent or
7broker for any licensed dealer or vehicle purchaser other than
8as a salesperson, or represent or advertise that he is so
9engaged or intends to so engage in such business unless
10licensed to do so in writing by the Secretary of State under
11the provisions of this Section.
12    (b) An application for a new vehicle dealer's license shall
13be filed with the Secretary of State, duly verified by oath, on
14such form as the Secretary of State may by rule or regulation
15prescribe and shall contain:
16        1. The name and type of business organization of the
17    applicant and his established and additional places of
18    business, if any, in this State.
19        2. If the applicant is a corporation, a list of its
20    officers, directors, and shareholders having a ten percent
21    or greater ownership interest in the corporation, setting
22    forth the residence address of each; if the applicant is a
23    sole proprietorship, a partnership, an unincorporated
24    association, a trust, or any similar form of business
25    organization, the name and residence address of the

 

 

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1    proprietor or of each partner, member, officer, director,
2    trustee, or manager.
3        3. The make or makes of new vehicles which the
4    applicant will offer for sale at retail in this State.
5        4. The name of each manufacturer or franchised
6    distributor, if any, of new vehicles with whom the
7    applicant has contracted for the sale of such new vehicles.
8    As evidence of this fact, the application shall be
9    accompanied by a signed statement from each such
10    manufacturer or franchised distributor. If the applicant
11    is in the business of offering for sale new conversion
12    vehicles, trucks or vans, except for trucks modified to
13    serve a special purpose which includes but is not limited
14    to the following vehicles: street sweepers, fertilizer
15    spreaders, emergency vehicles, implements of husbandry or
16    maintenance type vehicles, he must furnish evidence of a
17    sales and service agreement from both the chassis
18    manufacturer and second stage manufacturer.
19        5. A statement that the applicant has been approved for
20    registration under the Retailers' Occupation Tax Act by the
21    Department of Revenue: Provided that this requirement does
22    not apply to a dealer who is already licensed hereunder
23    with the Secretary of State, and who is merely applying for
24    a renewal of his license. As evidence of this fact, the
25    application shall be accompanied by a certification from
26    the Department of Revenue showing that that Department has

 

 

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1    approved the applicant for registration under the
2    Retailers' Occupation Tax Act.
3        6. A statement that the applicant has complied with the
4    appropriate liability insurance requirement. A Certificate
5    of Insurance in a solvent company authorized to do business
6    in the State of Illinois shall be included with each
7    application covering each location at which he proposes to
8    act as a new vehicle dealer. The policy must provide
9    liability coverage in the minimum amounts of $100,000 for
10    bodily injury to, or death of, any person, $300,000 for
11    bodily injury to, or death of, two or more persons in any
12    one accident, and $50,000 for damage to property. Such
13    policy shall expire not sooner than December 31 of the year
14    for which the license was issued or renewed. The expiration
15    of the insurance policy shall not terminate the liability
16    under the policy arising during the period for which the
17    policy was filed. Trailer and mobile home dealers are
18    exempt from this requirement.
19        If the permitted user has a liability insurance policy
20    that provides automobile liability insurance coverage of
21    at least $100,000 for bodily injury to or the death of any
22    person, $300,000 for bodily injury to or the death of any 2
23    or more persons in any one accident, and $50,000 for damage
24    to property, then the permitted user's insurer shall be the
25    primary insurer and the dealer's insurer shall be the
26    secondary insurer. If the permitted user does not have a

 

 

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1    liability insurance policy that provides automobile
2    liability insurance coverage of at least $100,000 for
3    bodily injury to or the death of any person, $300,000 for
4    bodily injury to or the death of any 2 or more persons in
5    any one accident, and $50,000 for damage to property, or
6    does not have any insurance at all, then the dealer's
7    insurer shall be the primary insurer and the permitted
8    user's insurer shall be the secondary insurer.
9        When a permitted user is "test driving" a new vehicle
10    dealer's automobile, the new vehicle dealer's insurance
11    shall be primary and the permitted user's insurance shall
12    be secondary.
13        As used in this paragraph 6, a "permitted user" is a
14    person who, with the permission of the new vehicle dealer
15    or an employee of the new vehicle dealer, drives a vehicle
16    owned and held for sale or lease by the new vehicle dealer
17    which the person is considering to purchase or lease, in
18    order to evaluate the performance, reliability, or
19    condition of the vehicle. The term "permitted user" also
20    includes a person who, with the permission of the new
21    vehicle dealer, drives a vehicle owned or held for sale or
22    lease by the new vehicle dealer for loaner purposes while
23    the user's vehicle is being repaired or evaluated.
24        As used in this paragraph 6, "test driving" occurs when
25    a permitted user who, with the permission of the new
26    vehicle dealer or an employee of the new vehicle dealer,

 

 

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1    drives a vehicle owned and held for sale or lease by a new
2    vehicle dealer that the person is considering to purchase
3    or lease, in order to evaluate the performance,
4    reliability, or condition of the vehicle.
5        As used in this paragraph 6, "loaner purposes" means
6    when a person who, with the permission of the new vehicle
7    dealer, drives a vehicle owned or held for sale or lease by
8    the new vehicle dealer while the user's vehicle is being
9    repaired or evaluated.
10        7. (A) An application for a new motor vehicle dealer's
11    license shall be accompanied by the following license fees:
12            (i) $1,000 for applicant's established place of
13        business, and $100 for each additional place of
14        business, if any, to which the application pertains;
15        but if the application is made after June 15 of any
16        year, the license fee shall be $500 for applicant's
17        established place of business plus $50 for each
18        additional place of business, if any, to which the
19        application pertains. License fees shall be returnable
20        only in the event that the application is denied by the
21        Secretary of State. All moneys received by the
22        Secretary of State as license fees under this
23        subparagraph (i) prior to applications for the 2004
24        licensing year shall be deposited into the Motor
25        Vehicle Review Board Fund and shall be used to
26        administer the Motor Vehicle Review Board under the

 

 

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1        Motor Vehicle Franchise Act. Of the money received by
2        the Secretary of State as license fees under this
3        subparagraph (i) for the 2004 licensing year and
4        thereafter, 10% shall be deposited into the Motor
5        Vehicle Review Board Fund and shall be used to
6        administer the Motor Vehicle Review Board under the
7        Motor Vehicle Franchise Act and 90% shall be deposited
8        into the General Revenue Fund.
9            (ii) Except for dealers selling 25 or fewer
10        automobiles or as provided in subsection (h) of Section
11        5-102.7 of this Code, an Annual Dealer Recovery Fund
12        Fee in the amount of $500 for the applicant's
13        established place of business, and $50 for each
14        additional place of business, if any, to which the
15        application pertains; but if the application is made
16        after June 15 of any year, the fee shall be $250 for
17        the applicant's established place of business plus $25
18        for each additional place of business, if any, to which
19        the application pertains. For a license renewal
20        application, the fee shall be based on the amount of
21        automobiles sold in the past year according to the
22        following formula:
23                (1) $0 for dealers selling 25 or less
24            automobiles;
25                (2) $150 for dealers selling more than 25 but
26            less than 200 automobiles;

 

 

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1                (3) $300 for dealers selling 200 or more
2            automobiles but less than 300 automobiles; and
3                (4) $500 for dealers selling 300 or more
4            automobiles.
5            License fees shall be returnable only in the event
6        that the application is denied by the Secretary of
7        State. Moneys received under this subparagraph (ii)
8        shall be deposited into the Dealer Recovery Trust Fund.
9        (B) An application for a new vehicle dealer's license,
10    other than for a new motor vehicle dealer's license, shall
11    be accompanied by the following license fees:
12            (i) $1,000 for applicant's established place of
13        business, and $50 for each additional place of
14        business, if any, to which the application pertains;
15        but if the application is made after June 15 of any
16        year, the license fee shall be $500 for applicant's
17        established place of business plus $25 for each
18        additional place of business, if any, to which the
19        application pertains. License fees shall be returnable
20        only in the event that the application is denied by the
21        Secretary of State. Of the money received by the
22        Secretary of State as license fees under this
23        subparagraph (i) for the 2004 licensing year and
24        thereafter, 95% shall be deposited into the General
25        Revenue Fund.
26            (ii) Except as provided in subsection (h) of

 

 

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1        Section 5-102.7 of this Code, an Annual Dealer Recovery
2        Fund Fee in the amount of $500 for the applicant's
3        established place of business, and $50 for each
4        additional place of business, if any, to which the
5        application pertains; but if the application is made
6        after June 15 of any year, the fee shall be $250 for
7        the applicant's established place of business plus $25
8        for each additional place of business, if any, to which
9        the application pertains. License fees shall be
10        returnable only in the event that the application is
11        denied by the Secretary of State. Moneys received under
12        this subparagraph (ii) shall be deposited into the
13        Dealer Recovery Trust Fund.
14        8. A statement that the applicant's officers,
15    directors, shareholders having a 10% or greater ownership
16    interest therein, proprietor, a partner, member, officer,
17    director, trustee, manager or other principals in the
18    business have not committed in the past 3 years any one
19    violation as determined in any civil, criminal or
20    administrative proceedings of any one of the following
21    Acts:
22            (A) The Anti-Theft Laws of the Illinois Vehicle
23        Code;
24            (B) The Certificate of Title Laws of the Illinois
25        Vehicle Code;
26            (C) The Offenses against Registration and

 

 

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1        Certificates of Title Laws of the Illinois Vehicle
2        Code;
3            (D) The Dealers, Transporters, Wreckers and
4        Rebuilders Laws of the Illinois Vehicle Code;
5            (E) Section 21-2 of the Criminal Code of 1961 or
6        the Criminal Code of 2012, Criminal Trespass to
7        Vehicles; or
8            (F) The Retailers' Occupation Tax Act.
9        9. A statement that the applicant's officers,
10    directors, shareholders having a 10% or greater ownership
11    interest therein, proprietor, partner, member, officer,
12    director, trustee, manager or other principals in the
13    business have not committed in any calendar year 3 or more
14    violations, as determined in any civil, criminal or
15    administrative proceedings, of any one or more of the
16    following Acts:
17            (A) The Consumer Finance Act;
18            (B) The Consumer Installment Loan Act;
19            (C) The Retail Installment Sales Act;
20            (D) The Motor Vehicle Retail Installment Sales
21        Act;
22            (E) The Interest Act;
23            (F) The Illinois Wage Assignment Act;
24            (G) Part 8 of Article XII of the Code of Civil
25        Procedure; or
26            (H) The Consumer Fraud Act.

 

 

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1        9.5. A statement that, within 10 years of application,
2    each officer, director, shareholder having a 10% or greater
3    ownership interest therein, proprietor, partner, member,
4    officer, director, trustee, manager, or other principal in
5    the business of the applicant has not committed, as
6    determined in any civil, criminal, or administrative
7    proceeding, in any calendar year one or more forcible
8    felonies under the Criminal Code of 1961 or the Criminal
9    Code of 2012, or a violation of either or both Article 16
10    or 17 of the Criminal Code of 1961 or a violation of either
11    or both Article 16 or 17 of the Criminal Code of 2012,
12    Article 29B of the Criminal Code of 1961 or the Criminal
13    Code of 2012, or a similar out-of-state offense. For the
14    purposes of this paragraph, "forcible felony" has the
15    meaning provided in Section 2-8 of the Criminal Code of
16    2012.
17        10. A bond or certificate of deposit in the amount of
18    $50,000 for each location at which the applicant intends to
19    act as a new vehicle dealer. The bond shall be for the term
20    of the license, or its renewal, for which application is
21    made, and shall expire not sooner than December 31 of the
22    year for which the license was issued or renewed. The bond
23    shall run to the People of the State of Illinois, with
24    surety by a bonding or insurance company authorized to do
25    business in this State. It shall be conditioned upon the
26    proper transmittal of all title and registration fees and

 

 

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1    taxes (excluding taxes under the Retailers' Occupation Tax
2    Act) accepted by the applicant as a new vehicle dealer.
3        11. Such other information concerning the business of
4    the applicant as the Secretary of State may by rule or
5    regulation prescribe.
6        12. A statement that the applicant understands Chapter
7    1 through Chapter 5 of this Code.
8    (c) Any change which renders no longer accurate any
9information contained in any application for a new vehicle
10dealer's license shall be amended within 30 days after the
11occurrence of such change on such form as the Secretary of
12State may prescribe by rule or regulation, accompanied by an
13amendatory fee of $2.
14    (d) Anything in this Chapter 5 to the contrary
15notwithstanding no person shall be licensed as a new vehicle
16dealer unless:
17        1. He is authorized by contract in writing between
18    himself and the manufacturer or franchised distributor of
19    such make of vehicle to so sell the same in this State, and
20        2. Such person shall maintain an established place of
21    business as defined in this Act.
22    (e) The Secretary of State shall, within a reasonable time
23after receipt, examine an application submitted to him under
24this Section and unless he makes a determination that the
25application submitted to him does not conform with the
26requirements of this Section or that grounds exist for a denial

 

 

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1of the application, under Section 5-501 of this Chapter, grant
2the applicant an original new vehicle dealer's license in
3writing for his established place of business and a
4supplemental license in writing for each additional place of
5business in such form as he may prescribe by rule or regulation
6which shall include the following:
7        1. The name of the person licensed;
8        2. If a corporation, the name and address of its
9    officers or if a sole proprietorship, a partnership, an
10    unincorporated association or any similar form of business
11    organization, the name and address of the proprietor or of
12    each partner, member, officer, director, trustee or
13    manager;
14        3. In the case of an original license, the established
15    place of business of the licensee;
16        4. In the case of a supplemental license, the
17    established place of business of the licensee and the
18    additional place of business to which such supplemental
19    license pertains;
20        5. The make or makes of new vehicles which the licensee
21    is licensed to sell.
22    (f) The appropriate instrument evidencing the license or a
23certified copy thereof, provided by the Secretary of State,
24shall be kept posted conspicuously in the established place of
25business of the licensee and in each additional place of
26business, if any, maintained by such licensee.

 

 

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1    (g) Except as provided in subsection (h) hereof, all new
2vehicle dealer's licenses granted under this Section shall
3expire by operation of law on December 31 of the calendar year
4for which they are granted unless sooner revoked or cancelled
5under the provisions of Section 5-501 of this Chapter.
6    (h) A new vehicle dealer's license may be renewed upon
7application and payment of the fee required herein, and
8submission of proof of coverage under an approved bond under
9the Retailers' Occupation Tax Act or proof that applicant is
10not subject to such bonding requirements, as in the case of an
11original license, but in case an application for the renewal of
12an effective license is made during the month of December, the
13effective license shall remain in force until the application
14is granted or denied by the Secretary of State.
15    (i) All persons licensed as a new vehicle dealer are
16required to furnish each purchaser of a motor vehicle:
17        1. In the case of a new vehicle a manufacturer's
18    statement of origin and in the case of a used motor vehicle
19    a certificate of title, in either case properly assigned to
20    the purchaser;
21        2. A statement verified under oath that all identifying
22    numbers on the vehicle agree with those on the certificate
23    of title or manufacturer's statement of origin;
24        3. A bill of sale properly executed on behalf of such
25    person;
26        4. A copy of the Uniform Invoice-transaction reporting

 

 

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1    return referred to in Section 5-402 hereof;
2        5. In the case of a rebuilt vehicle, a copy of the
3    Disclosure of Rebuilt Vehicle Status; and
4        6. In the case of a vehicle for which the warranty has
5    been reinstated, a copy of the warranty.
6    (j) Except at the time of sale or repossession of the
7vehicle, no person licensed as a new vehicle dealer may issue
8any other person a newly created key to a vehicle unless the
9new vehicle dealer makes a color photocopy or electronic scan
10of the driver's license or State identification card of the
11person requesting or obtaining the newly created key. The new
12vehicle dealer must retain the photocopy or scan for 30 days.
13    A new vehicle dealer who violates this subsection (j) is
14guilty of a petty offense. Violation of this subsection (j) is
15not cause to suspend, revoke, cancel, or deny renewal of the
16new vehicle dealer's license.
17    This amendatory Act of 1983 shall be applicable to the 1984
18registration year and thereafter.
19(Source: P.A. 99-78, eff. 7-20-15; 100-450, eff. 1-1-18;
20100-956, eff. 1-1-19.)
 
21    (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)
22    Sec. 5-102. Used vehicle dealers must be licensed.
23    (a) No person, other than a licensed new vehicle dealer,
24shall engage in the business of selling or dealing in, on
25consignment or otherwise, 5 or more used vehicles of any make

 

 

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1during the year (except house trailers as authorized by
2paragraph (j) of this Section and rebuilt salvage vehicles sold
3by their rebuilders to persons licensed under this Chapter), or
4act as an intermediary, agent or broker for any licensed dealer
5or vehicle purchaser (other than as a salesperson) or represent
6or advertise that he is so engaged or intends to so engage in
7such business unless licensed to do so by the Secretary of
8State under the provisions of this Section.
9    (b) An application for a used vehicle dealer's license
10shall be filed with the Secretary of State, duly verified by
11oath, in such form as the Secretary of State may by rule or
12regulation prescribe and shall contain:
13        1. The name and type of business organization
14    established and additional places of business, if any, in
15    this State.
16        2. If the applicant is a corporation, a list of its
17    officers, directors, and shareholders having a ten percent
18    or greater ownership interest in the corporation, setting
19    forth the residence address of each; if the applicant is a
20    sole proprietorship, a partnership, an unincorporated
21    association, a trust, or any similar form of business
22    organization, the names and residence address of the
23    proprietor or of each partner, member, officer, director,
24    trustee or manager.
25        3. A statement that the applicant has been approved for
26    registration under the Retailers' Occupation Tax Act by the

 

 

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1    Department of Revenue. However, this requirement does not
2    apply to a dealer who is already licensed hereunder with
3    the Secretary of State, and who is merely applying for a
4    renewal of his license. As evidence of this fact, the
5    application shall be accompanied by a certification from
6    the Department of Revenue showing that the Department has
7    approved the applicant for registration under the
8    Retailers' Occupation Tax Act.
9        4. A statement that the applicant has complied with the
10    appropriate liability insurance requirement. A Certificate
11    of Insurance in a solvent company authorized to do business
12    in the State of Illinois shall be included with each
13    application covering each location at which he proposes to
14    act as a used vehicle dealer. The policy must provide
15    liability coverage in the minimum amounts of $100,000 for
16    bodily injury to, or death of, any person, $300,000 for
17    bodily injury to, or death of, two or more persons in any
18    one accident, and $50,000 for damage to property. Such
19    policy shall expire not sooner than December 31 of the year
20    for which the license was issued or renewed. The expiration
21    of the insurance policy shall not terminate the liability
22    under the policy arising during the period for which the
23    policy was filed. Trailer and mobile home dealers are
24    exempt from this requirement.
25        If the permitted user has a liability insurance policy
26    that provides automobile liability insurance coverage of

 

 

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1    at least $100,000 for bodily injury to or the death of any
2    person, $300,000 for bodily injury to or the death of any 2
3    or more persons in any one accident, and $50,000 for damage
4    to property, then the permitted user's insurer shall be the
5    primary insurer and the dealer's insurer shall be the
6    secondary insurer. If the permitted user does not have a
7    liability insurance policy that provides automobile
8    liability insurance coverage of at least $100,000 for
9    bodily injury to or the death of any person, $300,000 for
10    bodily injury to or the death of any 2 or more persons in
11    any one accident, and $50,000 for damage to property, or
12    does not have any insurance at all, then the dealer's
13    insurer shall be the primary insurer and the permitted
14    user's insurer shall be the secondary insurer.
15        When a permitted user is "test driving" a used vehicle
16    dealer's automobile, the used vehicle dealer's insurance
17    shall be primary and the permitted user's insurance shall
18    be secondary.
19        As used in this paragraph 4, a "permitted user" is a
20    person who, with the permission of the used vehicle dealer
21    or an employee of the used vehicle dealer, drives a vehicle
22    owned and held for sale or lease by the used vehicle dealer
23    which the person is considering to purchase or lease, in
24    order to evaluate the performance, reliability, or
25    condition of the vehicle. The term "permitted user" also
26    includes a person who, with the permission of the used

 

 

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1    vehicle dealer, drives a vehicle owned or held for sale or
2    lease by the used vehicle dealer for loaner purposes while
3    the user's vehicle is being repaired or evaluated.
4        As used in this paragraph 4, "test driving" occurs when
5    a permitted user who, with the permission of the used
6    vehicle dealer or an employee of the used vehicle dealer,
7    drives a vehicle owned and held for sale or lease by a used
8    vehicle dealer that the person is considering to purchase
9    or lease, in order to evaluate the performance,
10    reliability, or condition of the vehicle.
11        As used in this paragraph 4, "loaner purposes" means
12    when a person who, with the permission of the used vehicle
13    dealer, drives a vehicle owned or held for sale or lease by
14    the used vehicle dealer while the user's vehicle is being
15    repaired or evaluated.
16        5. An application for a used vehicle dealer's license
17    shall be accompanied by the following license fees:
18            (A) $1,000 for applicant's established place of
19        business, and $50 for each additional place of
20        business, if any, to which the application pertains;
21        however, if the application is made after June 15 of
22        any year, the license fee shall be $500 for applicant's
23        established place of business plus $25 for each
24        additional place of business, if any, to which the
25        application pertains. License fees shall be returnable
26        only in the event that the application is denied by the

 

 

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1        Secretary of State. Of the money received by the
2        Secretary of State as license fees under this
3        subparagraph (A) for the 2004 licensing year and
4        thereafter, 95% shall be deposited into the General
5        Revenue Fund.
6            (B) Except for dealers selling 25 or fewer
7        automobiles or as provided in subsection (h) of Section
8        5-102.7 of this Code, an Annual Dealer Recovery Fund
9        Fee in the amount of $500 for the applicant's
10        established place of business, and $50 for each
11        additional place of business, if any, to which the
12        application pertains; but if the application is made
13        after June 15 of any year, the fee shall be $250 for
14        the applicant's established place of business plus $25
15        for each additional place of business, if any, to which
16        the application pertains. For a license renewal
17        application, the fee shall be based on the amount of
18        automobiles sold in the past year according to the
19        following formula:
20                (1) $0 for dealers selling 25 or less
21            automobiles;
22                (2) $150 for dealers selling more than 25 but
23            less than 200 automobiles;
24                (3) $300 for dealers selling 200 or more
25            automobiles but less than 300 automobiles; and
26                (4) $500 for dealers selling 300 or more

 

 

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1            automobiles.
2            License fees shall be returnable only in the event
3        that the application is denied by the Secretary of
4        State. Moneys received under this subparagraph (B)
5        shall be deposited into the Dealer Recovery Trust Fund.
6        6. A statement that the applicant's officers,
7    directors, shareholders having a 10% or greater ownership
8    interest therein, proprietor, partner, member, officer,
9    director, trustee, manager or other principals in the
10    business have not committed in the past 3 years any one
11    violation as determined in any civil, criminal or
12    administrative proceedings of any one of the following
13    Acts:
14            (A) The Anti-Theft Laws of the Illinois Vehicle
15        Code;
16            (B) The Certificate of Title Laws of the Illinois
17        Vehicle Code;
18            (C) The Offenses against Registration and
19        Certificates of Title Laws of the Illinois Vehicle
20        Code;
21            (D) The Dealers, Transporters, Wreckers and
22        Rebuilders Laws of the Illinois Vehicle Code;
23            (E) Section 21-2 of the Illinois Criminal Code of
24        1961 or the Criminal Code of 2012, Criminal Trespass to
25        Vehicles; or
26            (F) The Retailers' Occupation Tax Act.

 

 

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1        7. A statement that the applicant's officers,
2    directors, shareholders having a 10% or greater ownership
3    interest therein, proprietor, partner, member, officer,
4    director, trustee, manager or other principals in the
5    business have not committed in any calendar year 3 or more
6    violations, as determined in any civil or criminal or
7    administrative proceedings, of any one or more of the
8    following Acts:
9            (A) The Consumer Finance Act;
10            (B) The Consumer Installment Loan Act;
11            (C) The Retail Installment Sales Act;
12            (D) The Motor Vehicle Retail Installment Sales
13        Act;
14            (E) The Interest Act;
15            (F) The Illinois Wage Assignment Act;
16            (G) Part 8 of Article XII of the Code of Civil
17        Procedure; or
18            (H) The Consumer Fraud and Deceptive Business
19        Practices Act.
20        7.5. A statement that, within 10 years of application,
21    each officer, director, shareholder having a 10% or greater
22    ownership interest therein, proprietor, partner, member,
23    officer, director, trustee, manager, or other principal in
24    the business of the applicant has not committed, as
25    determined in any civil, criminal, or administrative
26    proceeding, in any calendar year one or more forcible

 

 

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1    felonies under the Criminal Code of 1961 or the Criminal
2    Code of 2012, or a violation of either or both Article 16
3    or 17 of the Criminal Code of 1961 or a violation of either
4    or both Article 16 or 17 of the Criminal Code of 2012,
5    Article 29B of the Criminal Code of 1961 or the Criminal
6    Code of 2012, or a similar out-of-state offense. For the
7    purposes of this paragraph, "forcible felony" has the
8    meaning provided in Section 2-8 of the Criminal Code of
9    2012.
10        8. A bond or Certificate of Deposit in the amount of
11    $50,000 for each location at which the applicant intends to
12    act as a used vehicle dealer. The bond shall be for the
13    term of the license, or its renewal, for which application
14    is made, and shall expire not sooner than December 31 of
15    the year for which the license was issued or renewed. The
16    bond shall run to the People of the State of Illinois, with
17    surety by a bonding or insurance company authorized to do
18    business in this State. It shall be conditioned upon the
19    proper transmittal of all title and registration fees and
20    taxes (excluding taxes under the Retailers' Occupation Tax
21    Act) accepted by the applicant as a used vehicle dealer.
22        9. Such other information concerning the business of
23    the applicant as the Secretary of State may by rule or
24    regulation prescribe.
25        10. A statement that the applicant understands Chapter
26    1 through Chapter 5 of this Code.

 

 

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1        11. A copy of the certification from the prelicensing
2    education program.
3    (c) Any change which renders no longer accurate any
4information contained in any application for a used vehicle
5dealer's license shall be amended within 30 days after the
6occurrence of each change on such form as the Secretary of
7State may prescribe by rule or regulation, accompanied by an
8amendatory fee of $2.
9    (d) Anything in this Chapter to the contrary
10notwithstanding, no person shall be licensed as a used vehicle
11dealer unless such person maintains an established place of
12business as defined in this Chapter.
13    (e) The Secretary of State shall, within a reasonable time
14after receipt, examine an application submitted to him under
15this Section. Unless the Secretary makes a determination that
16the application submitted to him does not conform to this
17Section or that grounds exist for a denial of the application
18under Section 5-501 of this Chapter, he must grant the
19applicant an original used vehicle dealer's license in writing
20for his established place of business and a supplemental
21license in writing for each additional place of business in
22such form as he may prescribe by rule or regulation which shall
23include the following:
24        1. The name of the person licensed;
25        2. If a corporation, the name and address of its
26    officers or if a sole proprietorship, a partnership, an

 

 

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1    unincorporated association or any similar form of business
2    organization, the name and address of the proprietor or of
3    each partner, member, officer, director, trustee or
4    manager;
5        3. In case of an original license, the established
6    place of business of the licensee;
7        4. In the case of a supplemental license, the
8    established place of business of the licensee and the
9    additional place of business to which such supplemental
10    license pertains.
11    (f) The appropriate instrument evidencing the license or a
12certified copy thereof, provided by the Secretary of State
13shall be kept posted, conspicuously, in the established place
14of business of the licensee and in each additional place of
15business, if any, maintained by such licensee.
16    (g) Except as provided in subsection (h) of this Section,
17all used vehicle dealer's licenses granted under this Section
18expire by operation of law on December 31 of the calendar year
19for which they are granted unless sooner revoked or cancelled
20under Section 5-501 of this Chapter.
21    (h) A used vehicle dealer's license may be renewed upon
22application and payment of the fee required herein, and
23submission of proof of coverage by an approved bond under the
24"Retailers' Occupation Tax Act" or proof that applicant is not
25subject to such bonding requirements, as in the case of an
26original license, but in case an application for the renewal of

 

 

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1an effective license is made during the month of December, the
2effective license shall remain in force until the application
3for renewal is granted or denied by the Secretary of State.
4    (i) All persons licensed as a used vehicle dealer are
5required to furnish each purchaser of a motor vehicle:
6        1. A certificate of title properly assigned to the
7    purchaser;
8        2. A statement verified under oath that all identifying
9    numbers on the vehicle agree with those on the certificate
10    of title;
11        3. A bill of sale properly executed on behalf of such
12    person;
13        4. A copy of the Uniform Invoice-transaction reporting
14    return referred to in Section 5-402 of this Chapter;
15        5. In the case of a rebuilt vehicle, a copy of the
16    Disclosure of Rebuilt Vehicle Status; and
17        6. In the case of a vehicle for which the warranty has
18    been reinstated, a copy of the warranty.
19    (j) A real estate broker holding a valid certificate of
20registration issued pursuant to "The Real Estate Brokers and
21Salesmen License Act" may engage in the business of selling or
22dealing in house trailers not his own without being licensed as
23a used vehicle dealer under this Section; however such broker
24shall maintain a record of the transaction including the
25following:
26        (1) the name and address of the buyer and seller,

 

 

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1        (2) the date of sale,
2        (3) a description of the mobile home, including the
3    vehicle identification number, make, model, and year, and
4        (4) the Illinois certificate of title number.
5    The foregoing records shall be available for inspection by
6any officer of the Secretary of State's Office at any
7reasonable hour.
8    (k) Except at the time of sale or repossession of the
9vehicle, no person licensed as a used vehicle dealer may issue
10any other person a newly created key to a vehicle unless the
11used vehicle dealer makes a color photocopy or electronic scan
12of the driver's license or State identification card of the
13person requesting or obtaining the newly created key. The used
14vehicle dealer must retain the photocopy or scan for 30 days.
15    A used vehicle dealer who violates this subsection (k) is
16guilty of a petty offense. Violation of this subsection (k) is
17not cause to suspend, revoke, cancel, or deny renewal of the
18used vehicle dealer's license.
19    (l) Used vehicle dealers licensed under this Section shall
20provide the Secretary of State a register for the sale at
21auction of each salvage or junk certificate vehicle. Each
22register shall include the following information:
23        1. The year, make, model, style and color of the
24    vehicle;
25        2. The vehicle's manufacturer's identification number
26    or, if applicable, the Secretary of State or Illinois

 

 

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1    Department of State Police identification number;
2        3. The date of acquisition of the vehicle;
3        4. The name and address of the person from whom the
4    vehicle was acquired;
5        5. The name and address of the person to whom any
6    vehicle was disposed, the person's Illinois license number
7    or if the person is an out-of-state salvage vehicle buyer,
8    the license number from the state or jurisdiction where the
9    buyer is licensed; and
10        6. The purchase price of the vehicle.
11    The register shall be submitted to the Secretary of State
12via written or electronic means within 10 calendar days from
13the date of the auction.
14(Source: P.A. 99-78, eff. 7-20-15; 100-450, eff. 1-1-18;
15100-956, eff. 1-1-19.)
 
16    (625 ILCS 5/5-102.5)
17    Sec. 5-102.5. Used vehicle dealer prelicensing education
18program courses.
19    (a) An applicant for a license as a Buy Here, Pay Here used
20vehicle dealer under Section 5-102.8 or a used vehicle dealer
21shall complete a minimum of 8 hours of prelicensing education
22program courses pursuant to this Section prior to submitting an
23application to the Secretary of State.
24    (b) To meet the requirements of this Section, at least one
25individual who is associated with the used vehicle dealer or

 

 

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1Buy Here, Pay Here used vehicle dealer as an owner, principal,
2corporate officer, director, or member or partner of a limited
3liability company or limited liability partnership shall
4complete the education program courses.
5    (c) The education program courses shall be provided by
6public or private entities with an expertise in the area as
7approved by the Secretary of State. The Secretary of State must
8approve course curricula and instruction, in consultation with
9the Illinois Department of Transportation and any private
10entity with expertise in the area in the Secretary of State's
11discretion.
12    (d) Each person who successfully completes an approved
13prelicensing education program under this Section shall be
14issued a certificate by the education program provider of the
15course. The current certificate of completion, or a copy of the
16certificate, shall be posted conspicuously in the principal
17office of the licensee.
18    (e) The provisions of this Section apply to all Buy Here,
19Pay Here used vehicle dealers under Section 5-1028 or used
20vehicle dealers including, but not limited to, individuals,
21corporations, and partnerships, except for the following:
22        (1) Motor vehicle rental companies having a national
23    franchise;
24        (2) National motor vehicle auction companies;
25        (3) Wholesale dealer-only auction companies;
26        (4) Used vehicle dealerships owned by a franchise motor

 

 

HB3269 Enrolled- 40 -LRB101 10800 TAE 55929 b

1    vehicle dealer; and
2        (5) Banks, credit unions, and savings and loan
3    associations.
4(Source: P.A. 96-678, eff. 8-25-09.)
 
5    (625 ILCS 5/5-102.7)
6    Sec. 5-102.7. Dealer Recovery Trust Fund.
7    (a) The General Assembly finds that motor vehicle dealers
8that go out of business without fulfilling agreements to pay
9off the balance of their customers' liens on traded-in vehicles
10cause financial harm to those customers by leaving those
11customers liable for multiple vehicle loans and cause harm to
12the integrity of the motor vehicle retailing industry. It is
13the intent of the General Assembly to protect vehicle
14purchasers by creating a Dealer Recovery Trust Fund to
15reimburse these consumers.
16    (b) The Dealer Recovery Trust Fund shall be used solely for
17the limited purpose of helping victims of dealership closings.
18Any interest accrued by moneys in the Fund shall be deposited
19and become part of the Dealer Recovery Trust Fund and its
20purpose. The sole beneficiaries of the Dealer Recovery Trust
21Fund are victims of dealership closings.
22    (c) Except where the context otherwise requires, the
23following words and phrases, when used in this Section, have
24the meanings ascribed to them in this subsection (c):
25    "Applicant" means a person who applies for reimbursement

 

 

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1from the Dealer Recovery Trust Fund Board.
2    "Board" means the Dealer Recovery Trust Fund Board created
3under this Section.
4    "Dealer" means a new vehicle dealer licensed under Section
55-101, or a used vehicle dealer licensed under Section 5-102,
6or a Buy Here, Pay Here used vehicle dealer licensed under
75-102.8, excepting a dealer who primarily sells mobile homes,
8recreational vehicles, or trailers.
9    "Fund" means the Dealer Recovery Trust Fund created under
10this Section.
11    "Fund Administrator" means the private entity, which shall
12be appointed by the Board, that administers the Dealer Recovery
13Trust Fund.
14    (d) Beginning October 1, 2011, each application or renewal
15for a new vehicle dealer's license and each application or
16renewal for a Buy Here, Pay Here used vehicle dealer licensed
17under 5-102.8 or a used vehicle dealer's license shall be
18accompanied by the applicable Annual Dealer Recovery Fund Fee
19under Section 5-101 or 5-102 of this Code. The fee shall be in
20addition to any other fees imposed under this Article, shall be
21submitted at the same time an application or renewal for a new
22vehicle dealer's license, or used vehicle dealer's license, or
23Buy Here, Pay Here used vehicle dealer is submitted, and shall
24be made payable to and remitted directly to the Dealer Recovery
25Trust Fund, a trust fund outside of the State Treasury which is
26hereby created. In addition, the Dealer Recovery Trust Fund may

 

 

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1accept any federal, State, or private moneys for deposit into
2the Fund.
3    (e) The Fund Administrator shall maintain a list of all
4dealers who have paid the fee under subsection (d) of this
5Section for the current year, which shall be available to the
6Secretary of State and the Board. The Secretary of State shall
7revoke the dealer license of any dealer who does not pay the
8fee imposed under subsection (d) of this Section. The Secretary
9of State and the Fund Administrator may enter into information
10sharing agreements as needed to implement this Section.
11    (f) The Fund shall be audited annually by an independent
12auditor who is a certified public accountant and who has been
13selected by the Board. The independent auditor shall compile an
14annual report, which shall be filed with the Board and shall be
15a public record. The auditor shall be paid by the Fund,
16pursuant to an order of the Board.
17    (g) The Fund shall be maintained by the Fund Administrator,
18who shall keep current records of the amounts deposited into
19the Fund and the amounts paid out of the Fund pursuant to an
20order of the Board. These records shall be made available to
21all members of the Board upon reasonable request during normal
22business hours. The Fund Administrator shall report the balance
23in the Fund to the Board monthly, by the 15th day of each
24month. For purposes of determining the amount available to pay
25claims under this Section at any meeting of the Board, the
26Board shall use the Fund Administrator's most recent monthly

 

 

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1report. The Fund Administrator shall purchase liability
2insurance to cover management of the Fund at a cost not to
3exceed 2% of the balance in the Fund as of January 15th of that
4year.
5    (h) In any year for which the balance in the Fund as of
6August 31st is greater than $3,500,000, the Fund Administrator
7shall notify the Secretary of State and the Secretary of State
8shall suspend collection of the fee for the following year for
9any dealer who has not had a claim paid from the Fund, has not
10had his or her license suspended or revoked, and has not been
11assessed any civil penalties under this Code during the 3
12previous years.
13    (i) Moneys in the Dealer Recovery Trust Fund may be paid
14from the Fund only as directed by a written order of the Board
15and used only for the following purposes:
16        (i) to pay claims under a written order of the Board as
17    provided in this Section; or
18        (ii) to reimburse the Fund Administrator for its
19    expenses related to the administration of the Fund,
20    provided that the reimbursement to the Fund Administrator
21    in any year shall not exceed 2% of the balance in the Fund
22    as of January 15th of that year.
23    (j) The Dealer Recovery Trust Fund Board is hereby created.
24The Board shall consist of the Secretary of State, or his or
25her designee, who shall serve as chair, the Attorney General,
26or his or her designee, who shall serve as secretary, and one

 

 

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1person alternatively representing new and independent Illinois
2automobile dealers, selected collectively by the Attorney
3General, or his or her designee, and the Secretary of State, or
4his or her designee. The Secretary of State may propose
5procedures and employ personnel as necessary to implement this
6Section. The Board shall meet quarterly, and as needed, as
7directed by the chair. The Board may not pay out any claims
8before the balance deposited into the Fund exceeds $500,000.
9Board meetings shall be open to the public. The Board has the
10authority to take any action by at least a two-thirds majority
11vote.
12    (k) The following persons may apply to the Board for
13reimbursement from the Dealer Recovery Trust Fund:
14        (i) A retail customer who, on or after October 1, 2011,
15    purchases a vehicle from a dealer who subsequently files
16    for bankruptcy or whose vehicle dealer's license is
17    subsequently revoked by the Secretary of State or otherwise
18    terminated and, as part of the purchase transaction, trades
19    in a vehicle with an outstanding lien to the dealer if lien
20    satisfaction was a condition of the purchase agreement and
21    the retail customer determines that the lien has not been
22    satisfied;
23        (ii) A retail customer who, on or after October 1,
24    2011, purchases a vehicle with an undisclosed lien from a
25    dealer who subsequently files for bankruptcy or whose
26    vehicle dealer's license is subsequently revoked by the

 

 

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1    Secretary of State or otherwise terminated;
2        (iii) A dealer who, on or after October 1, 2011,
3    purchases a vehicle with an undisclosed lien from another
4    dealer who subsequently files for bankruptcy or whose
5    vehicle dealer's license is subsequently revoked by the
6    Secretary of State or otherwise terminated.
7    (l) To be considered by the Board, an applicant must submit
8his or her claim to the Board within 2 years after the date of
9the transaction that gave rise to the claim.
10    (m) At each meeting of the Board, it shall consider all
11claims that are properly submitted to it on forms prescribed by
12the Secretary of State at least 30 days before the date of the
13Board's meeting. Before the Board may consider a claim against
14a dealer, it must make a written determination that the dealer
15has filed for bankruptcy under the provisions of 11 U.S.C.
16Chapter 7; that the Secretary of State has revoked his or her
17dealer's license; or that the license has been otherwise
18terminated. Once the Board has made this determination, it may
19consider the applicant's claim against the dealer. If a
20two-thirds majority of the Board determines that the dealer has
21committed a violation under subsection (k), it shall grant the
22applicant's claim. Except as otherwise provided in this
23Section, the maximum amount of any award for a claim under
24paragraph (i) of subsection (k) of this Section shall be equal
25to the amount of the unpaid balance of the lien that the dealer
26agreed to pay off on behalf of the applicant as shown on the

 

 

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1bill of sale or the retail installment sales contract. The
2maximum amount of any claim under paragraph (ii) or (iii) of
3subsection (k) of this Section shall be equal to the amount of
4the undisclosed lien. However, no award for a claim under
5subsection (k) of this Section shall exceed $35,000.
6    (n) If the balance in the Fund at the time of any Board
7meeting is less than the amount of the total amount of all
8claims awarded at that meeting, then all awards made at that
9meeting shall be reduced, pro rata, so that the amount of
10claims does not exceed the balance in the Fund. Before it
11reviews new claims, the Board shall issue written orders to pay
12the remaining portion of any claims that were so reduced,
13provided that the balance in the Fund is sufficient to pay
14those claims.
15    (o) Whenever the balance of the Fund falls below $500,000,
16the Board may charge dealers an additional assessment of up to
17$50 to bring the balance to at least $500,000. Not more than
18one additional assessment may be made against a dealer in any
1912-month period.
20    (p) If the total amount of claims awarded against any
21dealer exceeds 33% of the balance in the Fund, the Board may
22permanently reduce the amount of those claims, pro rata, so
23that those claims do not exceed 33% of the balance in the Fund.
24    (q) The Board shall issue a written order directing the
25Fund Administrator to pay an applicant's claim to a secured
26party where the Board has received a signed agreement between

 

 

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1the applicant and the secured party holding the lien. The
2agreement must (i) state that the applicant and the secured
3party agree to accept payment from the Fund to the secured
4party as settlement in full of all claims against the dealer;
5and (ii) release the lien and the title, if applicable, to the
6vehicle that was the subject of the claim. The written order
7shall state the amount of the claim and the name and address of
8the secured party to whom the claim shall be paid. The Fund
9Administrator shall pay the claim within 30 days after it
10receives the Board's order.
11    (r) No dealer or principal associated with a dealer's
12license is eligible for licensure, renewal or relicensure until
13the full amount of reimbursement for an unpaid claim, plus
14interest as determined by the Board, is paid to the Fund.
15Nothing in this Section shall limit the authority of the
16Secretary of State to suspend, revoke, or levy civil penalties
17against a dealer, nor shall full repayment of the amount owed
18to the Fund nullify or modify the effect of any action by the
19Secretary.
20    (s) Nothing in this Section shall limit the right of any
21person to seek relief though civil action against any other
22person as an alternative to seeking reimbursement from the
23Fund.
24(Source: P.A. 97-480, eff. 10-1-11; 98-450, eff. 1-1-14.)
 
25    (625 ILCS 5/5-102.8 new)

 

 

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1    Sec. 5-102.8. Licensure of Buy Here, Pay Here used vehicle
2dealers.
3    (a) As used in this Section, "Buy Here, Pay Here used
4vehicle dealer" means any entity that engages in the business
5of selling or leasing of vehicles and finances the sale or
6purchase price of the vehicle to a customer without the
7customer using a third-party lender.
8    (b) No person shall engage in the business of selling or
9dealing in, on consignment or otherwise, 5 or more used
10vehicles of any make during the year (except rebuilt salvage
11vehicles sold by their rebuilders to persons licensed under
12this Chapter), or act as an intermediary, agent, or broker for
13any licensed dealer or vehicle purchaser (other than as a
14salesperson) or represent or advertise that he or she is so
15engaged or intends to so engage in such business of a Buy Here,
16Pay Here used vehicle dealer unless licensed to do so by the
17Secretary of State under the provisions of this Section.
18    (c) An application for a Buy Here, Pay Here used vehicle
19dealer's license shall be filed with the Secretary of State,
20duly verified by oath, in such form as the Secretary of State
21may by rule or regulation prescribe and shall contain:
22        (1) The name and type of business organization
23    established and additional places of business, if any, in
24    this State.
25        (2) If the applicant is a corporation, a list of its
26    officers, directors, and shareholders having a 10% or

 

 

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1    greater ownership interest in the corporation, setting
2    forth the residence address of each; if the applicant is a
3    sole proprietorship, a partnership, an unincorporated
4    association, a trust, or any similar form of business
5    organization, the names and residence address of the
6    proprietor or of each partner, member, officer, director,
7    trustee, or manager.
8        (3) A statement that the applicant has been approved
9    for registration under the Retailers' Occupation Tax Act by
10    the Department of Revenue. However, this requirement does
11    not apply to a dealer who is already licensed hereunder
12    with the Secretary of State, and who is merely applying for
13    a renewal of his or her license. As evidence of this fact,
14    the application shall be accompanied by a certification
15    from the Department of Revenue showing that the Department
16    has approved the applicant for registration under the
17    Retailers' Occupation Tax Act.
18        (4) A statement that the applicant has complied with
19    the appropriate liability insurance requirement. A
20    Certificate of Insurance in a solvent company authorized to
21    do business in the State of Illinois shall be included with
22    each application covering each location at which he or she
23    proposes to act as a Buy Here, Pay Here used vehicle
24    dealer. The policy must provide liability coverage in the
25    minimum amounts of $100,000 for bodily injury to, or death
26    of, any person, $300,000 for bodily injury to, or death of,

 

 

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

 

 

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

 

 

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1        (5) An application for a Buy Here, Pay Here used
2    vehicle dealer's license shall be accompanied by the
3    following license fees:
4            (A) $1,000 for the applicant's established place
5        of business, and $50 for each additional place of
6        business, if any, to which the application pertains;
7        however, if the application is made after June 15 of
8        any year, the license fee shall be $500 for the
9        applicant's established place of business plus $25 for
10        each additional place of business, if any, to which the
11        application pertains. License fees shall be returnable
12        only if the application is denied by the Secretary of
13        State. Of the money received by the Secretary of State
14        as license fees under this subparagraph, 95% shall be
15        deposited into the General Revenue Fund.
16            (B) Except for dealers selling 25 or fewer
17        automobiles or as provided in subsection (h) of Section
18        5-102.7 of this Code, an Annual Dealer Recovery Fund
19        Fee in the amount of $500 for the applicant's
20        established place of business, and $50 for each
21        additional place of business, if any, to which the
22        application pertains; but if the application is made
23        after June 15 of any year, the fee shall be $250 for
24        the applicant's established place of business plus $25
25        for each additional place of business, if any, to which
26        the application pertains. For a license renewal

 

 

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1        application, the fee shall be based on the amount of
2        automobiles sold in the past year according to the
3        following formula:
4                (1) $0 for dealers selling 25 or less
5            automobiles;
6                (2) $150 for dealers selling more than 25 but
7            less than 200 automobiles;
8                (3) $300 for dealers selling 200 or more
9            automobiles but less than 300 automobiles; and
10                (4) $500 for dealers selling 300 or more
11            automobiles.
12            Fees shall be returnable only if the application is
13        denied by the Secretary of State. Money received under
14        this subparagraph shall be deposited into the Dealer
15        Recovery Trust Fund. A Buy Here, Pay Here used vehicle
16        dealer shall pay into the Dealer Recovery Trust Fund
17        for every vehicle that is financed, sold, or otherwise
18        transferred to an individual or entity other than the
19        Buy Here, Pay Here used vehicle dealer even if the
20        individual or entity to which the Buy Here, Pay Here
21        used vehicle dealer transfers the vehicle is unable to
22        continue to adhere to the terms of the transaction by
23        the Buy Here, Pay Here used vehicle dealer.
24        (6) A statement that each officer, director,
25    shareholder having a 10% or greater ownership interest
26    therein, proprietor, partner, member, officer, director,

 

 

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1    trustee, manager, or other principal in the business of the
2    applicant has not committed in the past 3 years any one
3    violation as determined in any civil, criminal, or
4    administrative proceedings of any one of the following:
5            (A) the Anti-Theft Laws of this Code;
6            (B) the Certificate of Title Laws of this Code;
7            (C) the Offenses against Registration and
8        Certificates of Title Laws of this Code;
9            (D) the Dealers, Transporters, Wreckers and
10        Rebuilders Laws of this Code;
11            (E) Section 21-2 of the Illinois Criminal Code of
12        1961 or the Criminal Code of 2012, Criminal Trespass to
13        Vehicles; or
14            (F) the Retailers' Occupation Tax Act.
15        (7) A statement that each officer, director,
16    shareholder having a 10% or greater ownership interest
17    therein, proprietor, partner, member, officer, director,
18    trustee, manager, or other principal in the business of the
19    applicant has not committed in any calendar year 3 or more
20    violations, as determined in any civil, criminal, or
21    administrative proceedings, of any one or more of the
22    following:
23            (A) the Consumer Finance Act;
24            (B) the Consumer Installment Loan Act;
25            (C) the Retail Installment Sales Act;
26            (D) the Motor Vehicle Retail Installment Sales

 

 

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1        Act;
2            (E) the Interest Act;
3            (F) the Illinois Wage Assignment Act;
4            (G) Part 8 of Article XII of the Code of Civil
5        Procedure; or
6            (H) the Consumer Fraud and Deceptive Business
7        Practices Act.
8        (8) A statement that, within 10 years of application,
9    each officer, director, shareholder having a 10% or greater
10    ownership interest therein, proprietor, partner, member,
11    officer, director, trustee, manager, or other principal in
12    the business of the applicant has not committed, as
13    determined in any civil, criminal, or administrative
14    proceeding, in any calendar year one or more forcible
15    felonies under the Criminal Code of 1961 or the Criminal
16    Code of 2012, or a violation of either or both Article 16
17    or 17 of the Criminal Code of 1961, or a violation of
18    either or both Article 16 or 17 of the Criminal Code of
19    2012, Article 29B of the Criminal Code of 1961 or the
20    Criminal Code of 2012, or a similar out-of-state offense.
21    For the purposes of this paragraph, "forcible felony" has
22    the meaning provided in Section 2-8 of the Criminal Code of
23    2012.
24        (9) A bond or Certificate of Deposit in the amount of
25    $50,000 for each location at which the applicant intends to
26    act as a Buy Here, Pay Here used vehicle dealer. The bond

 

 

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1    shall be for the term of the license. The bond shall run to
2    the People of the State of Illinois, with surety by a
3    bonding or insurance company authorized to do business in
4    this State. It shall be conditioned upon the proper
5    transmittal of all title and registration fees and taxes
6    (excluding taxes under the Retailers' Occupation Tax Act)
7    accepted by the applicant as a Buy Here, Pay Here used
8    vehicle dealer.
9        (10) Such other information concerning the business of
10    the applicant as the Secretary of State may by rule
11    prescribe.
12        (11) A statement that the applicant understands
13    Chapter 1 through Chapter 5 of this Code.
14        (12) A copy of the certification from the prelicensing
15    education program.
16    (d) Any change that renders no longer accurate any
17information contained in any application for a Buy Here, Pay
18Here used vehicle dealer's license shall be amended within 30
19days after the occurrence of each change on such form as the
20Secretary of State may prescribe by rule, accompanied by an
21amendatory fee of $2.
22    (e) Anything in this Chapter to the contrary
23notwithstanding, no person shall be licensed as a Buy Here, Pay
24Here used vehicle dealer unless the person maintains an
25established place of business as defined in this Chapter.
26    (f) The Secretary of State shall, within a reasonable time

 

 

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1after receipt, examine an application submitted under this
2Section. Unless the Secretary makes a determination that the
3application does not conform to this Section or that grounds
4exist for a denial of the application under Section 5-501 of
5this Chapter, the Secretary must grant the applicant an
6original Buy Here, Pay Here used vehicle dealer's license in
7writing for his or her established place of business and a
8supplemental license in writing for each additional place of
9business in such form as the Secretary may prescribe by rule
10that shall include the following:
11        (1) The name of the person licensed.
12        (2) If a corporation, the name and address of its
13    officers or if a sole proprietorship, a partnership, an
14    unincorporated association, or any similar form of
15    business organization, the name and address of the
16    proprietor or of each partner, member, officer, director,
17    trustee, or manager.
18        (3) In the case of an original license, the established
19    place of business of the licensee.
20        (4) In the case of a supplemental license, the
21    established place of business of the licensee and the
22    additional place of business to which the supplemental
23    license pertains.
24    (g) The appropriate instrument evidencing the license or a
25certified copy thereof, provided by the Secretary of State
26shall be kept posted, conspicuously, in the established place

 

 

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1of business of the licensee and in each additional place of
2business, if any, maintained by the licensee.
3    (h) Except as provided in subsection (i), all Buy Here, Pay
4Here used vehicle dealer's licenses granted under this Section
5expire by operation of law on December 31 of the calendar year
6for which they are granted unless sooner revoked or cancelled
7under Section 5-501 of this Chapter.
8    (i) A Buy Here, Pay Here used vehicle dealer's license may
9be renewed upon application and payment of the fee required
10herein, and submission of proof of coverage by an approved bond
11under the Retailers' Occupation Tax Act or proof that the
12applicant is not subject to such bonding requirements, as in
13the case of an original license, but in the case of an
14application for the renewal of an effective license made during
15the month of December, the effective license shall remain in
16force until the application for renewal is granted or denied by
17the Secretary of State.
18    (j) Each person licensed as a Buy Here, Pay Here used
19vehicle dealer is required to furnish each purchaser of a motor
20vehicle:
21        (1) a certificate of title properly assigned to the
22    purchaser;
23        (2) a statement verified under oath that all
24    identifying numbers on the vehicle agree with those on the
25    certificate of title;
26        (3) a bill of sale properly executed on behalf of the

 

 

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1    person;
2        (4) a copy of the Uniform Invoice-transaction
3    reporting return referred to in Section 5-402;
4        (5) in the case of a rebuilt vehicle, a copy of the
5    Disclosure of Rebuilt Vehicle Status; and
6        (6) in the case of a vehicle for which the warranty has
7    been reinstated, a copy of the warranty.
8    (k) Except at the time of sale or repossession of the
9vehicle, no person licensed as a Buy Here, Pay Here used
10vehicle dealer may issue any other person a newly created key
11to a vehicle unless the Buy Here, Pay Here used vehicle dealer
12makes a color photocopy or electronic scan of the driver's
13license or State identification card of the person requesting
14or obtaining the newly created key. The Buy Here, Pay Here used
15vehicle dealer must retain the photocopy or scan for 30 days.
16    A Buy Here, Pay Here used vehicle dealer who violates this
17subsection (k) is guilty of a petty offense. Violation of this
18subsection (k) is not cause to suspend, revoke, cancel, or deny
19renewal of the used vehicle dealer's license.
20    (l) A Buy Here, Pay Here used vehicle dealer licensed under
21this Section shall provide the Secretary of State a register
22for the sale at auction of each salvage or junk certificate
23vehicle. Each register shall include the following
24information:
25        (1) the year, make, model, style, and color of the
26    vehicle;

 

 

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1        (2) the vehicle's manufacturer's identification number
2    or, if applicable, the Secretary of State or Illinois
3    Department of State Police identification number;
4        (3) the date of acquisition of the vehicle;
5        (4) the name and address of the person from whom the
6    vehicle was acquired;
7        (5) the name and address of the person to whom any
8    vehicle was disposed, the person's Illinois license number
9    or, if the person is an out-of-state salvage vehicle buyer,
10    the license number from the state or jurisdiction where the
11    buyer is licensed; and
12        (6) the purchase price of the vehicle.
13    The register shall be submitted to the Secretary of State
14via written or electronic means within 10 calendar days from
15the date of the auction.
 
16    (625 ILCS 5/5-102.9 new)
17    Sec. 5-102.9. Alternative vehicle sales and ownership.
18    (a) The Secretary may create special dealership licenses
19for entities that specialize in specific types of used motor
20vehicles that may be based on model, make, age, or any other
21factor that the Secretary deems appropriate.
22    (b) Any owner who is not a manufacturer of the vehicle and
23chooses to lease a used vehicle for a period of less than 12
24months shall ensure that the lessee maintains valid
25registration and liability insurance as set forth in Chapter 7

 

 

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1of this Code. The owner of the vehicle shall not collect any
2fees in connection with the registration of the vehicle unless
3the owner is also a licensed remittance agent under this Code.
4    (c) The Secretary may adopt any rules necessary to
5implement this Section.
 
6    (625 ILCS 5/5-401.2)  (from Ch. 95 1/2, par. 5-401.2)
7    Sec. 5-401.2. Licensees required to keep records and make
8inspections.
9    (a) Every person licensed or required to be licensed under
10Section 5-101, 5-101.1, 5-101.2, 5-102, 5-102.8, 5-301, or
115-302 of this Code, shall, with the exception of scrap
12processors, maintain for 3 years, in a form as the Secretary of
13State may by rule or regulation prescribe, at his established
14place of business, additional place of business, or principal
15place of business if licensed under Section 5-302, the
16following records relating to the acquisition or disposition of
17vehicles and their essential parts possessed in this State,
18brought into this State from another state, territory or
19country, or sold or transferred to another person in this State
20or in another state, territory, or country.
21        (1) The following records pertaining to new or used
22    vehicles shall be kept:
23            (A) the year, make, model, style and color of the
24        vehicle;
25            (B) the vehicle's manufacturer's identification

 

 

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1        number or, if applicable, the Secretary of State or
2        Illinois Department of State Police identification
3        number;
4            (C) the date of acquisition of the vehicle;
5            (D) the name and address of the person from whom
6        the vehicle was acquired and, if that person is a
7        dealer, the Illinois or out-of-state dealer license
8        number of such person;
9            (E) the signature of the person making the
10        inspection of a used vehicle as required under
11        subsection (d) of this Section, if applicable;
12            (F) the purchase price of the vehicle, if
13        applicable;
14            (G) the date of the disposition of the vehicle;
15            (H) the name and address of the person to whom any
16        vehicle was disposed, and if that person is a dealer,
17        the Illinois or out-of-State dealer's license number
18        of that dealer;
19            (I) the uniform invoice number reflecting the
20        disposition of the vehicle, if applicable; and
21            (J) The sale price of the vehicle, if applicable.
22        (2) (A) The following records pertaining to used
23    essential parts other than quarter panels and
24    transmissions of vehicles of the first division shall be
25    kept:
26            (i) the year, make, model, color and type of such

 

 

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1        part;
2            (ii) the vehicle's manufacturer's identification
3        number, derivative number, or, if applicable, the
4        Secretary of State or Illinois Department of State
5        Police identification number of such part;
6            (iii) the date of the acquisition of each part;
7            (iv) the name and address of the person from whom
8        the part was acquired and, if that person is a dealer,
9        the Illinois or out-of-state dealer license number of
10        such person; if the essential part being acquired is
11        from a person other than a dealer, the licensee shall
12        verify and record that person's identity by recording
13        the identification numbers from at least two sources of
14        identification, one of which shall be a drivers license
15        or State identification card;
16            (v) the uniform invoice number or out-of-state
17        bill of sale number reflecting the acquisition of such
18        part;
19            (vi) the stock number assigned to the essential
20        part by the licensee, if applicable;
21            (vii) the date of the disposition of such part;
22            (viii) the name and address of the person to whom
23        such part was disposed of and, if that person is a
24        dealer, the Illinois or out-of-state dealer license
25        number of that person;
26            (ix) the uniform invoice number reflecting the

 

 

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1        disposition of such part.
2        (B) Inspections of all essential parts shall be
3    conducted in accordance with Section 5-402.1.
4        (C) A separate entry containing all of the information
5    required to be recorded in subparagraph (A) of paragraph
6    (2) of subsection (a) of this Section shall be made for
7    each separate essential part. Separate entries shall be
8    made regardless of whether the part was a large purchase
9    acquisition. In addition, a separate entry shall be made
10    for each part acquired for immediate sale or transfer, or
11    for placement into the overall inventory or stock to be
12    disposed of at a later time, or for use on a vehicle to be
13    materially altered by the licensee, or acquired for any
14    other purpose or reason. Failure to make a separate entry
15    for each essential part acquired or disposed of, or a
16    failure to record any of the specific information required
17    to be recorded concerning the acquisition or disposition of
18    each essential part as set forth in subparagraph (A) of
19    paragraph (2) of subsection (a) shall constitute a failure
20    to keep records.
21        (D) The vehicle's manufacturer's identification number
22    or Secretary of State or Illinois Department of State
23    Police identification number for the essential part shall
24    be ascertained and recorded even if such part is acquired
25    from a person or dealer located in a State, territory, or
26    country which does not require that such information be

 

 

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1    recorded. If the vehicle's manufacturer's identification
2    number or Secretary of State or Illinois Department of
3    State Police identification number for an essential part
4    cannot be obtained, that part shall not be acquired by the
5    licensee or any of his agents or employees. If such part or
6    parts were physically acquired by the licensee or any of
7    his agents or employees while the licensee or agent or
8    employee was outside this State, that licensee or agent or
9    employee was outside the State, that licensee, agent or
10    employee shall not bring such essential part into this
11    State or cause it to be brought into this State. The
12    acquisition or disposition of an essential part by a
13    licensee without the recording of the vehicle
14    identification number or Secretary of State identification
15    number for such part or the transportation into the State
16    by the licensee or his agent or employee of such part or
17    parts shall constitute a failure to keep records.
18        (E) The records of essential parts required to be kept
19    by this Section shall apply to all hulks, chassis, frames
20    or cowls, regardless of the age of those essential parts.
21    The records required to be kept by this Section for
22    essential parts other than hulks, chassis, frames or cowls,
23    shall apply only to those essential parts which are 6 model
24    years of age or newer. In determining the model year of
25    such an essential part it may be presumed that the
26    identification number of the vehicle from which the

 

 

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1    essential part came or the identification number affixed to
2    the essential part itself acquired by the licensee denotes
3    the model year of that essential part. This presumption,
4    however, shall not apply if the gross appearance of the
5    essential part does not correspond to the year, make or
6    model of either the identification number of the vehicle
7    from which the essential part is alleged to have come or
8    the identification number which is affixed to the essential
9    part itself. To determine whether an essential part is 6
10    years of age or newer within this paragraph, the model year
11    of the essential part shall be subtracted from the calendar
12    year in which the essential part is acquired or disposed of
13    by the licensee. If the remainder is 6 or less, the record
14    of the acquisition or disposition of that essential part
15    shall be kept as required by this Section.
16        (F) The requirements of paragraph (2) of subsection (a)
17    of this Section shall not apply to the disposition of an
18    essential part other than a cowl which has been damaged or
19    altered to a state in which it can no longer be returned to
20    a usable condition and which is being sold or transferred
21    to a scrap processor or for delivery to a scrap processor.
22    (3) the following records for vehicles on which junking
23certificates are obtained shall be kept:
24        (A) the year, make, model, style and color of the
25    vehicle;
26        (B) the vehicle's manufacturer's identification number

 

 

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1    or, if applicable, the Secretary of State or Illinois
2    Department of State Police identification number;
3        (C) the date the vehicle was acquired;
4        (D) the name and address of the person from whom the
5    vehicle was acquired and, if that person is a dealer, the
6    Illinois or out-of-state dealer license number of that
7    person;
8        (E) the certificate of title number or salvage
9    certificate number for the vehicle, if applicable;
10        (F) the junking certificate number obtained by the
11    licensee; this entry shall be recorded at the close of
12    business of the fifth business day after receiving the
13    junking certificate;
14        (G) the name and address of the person to whom the
15    junking certificate has been assigned, if applicable, and
16    if that person is a dealer, the Illinois or out-of-state
17    dealer license number of that dealer;
18        (H) if the vehicle or any part of the vehicle is
19    dismantled for its parts to be disposed of in any way, or
20    if such parts are to be used by the licensee to materially
21    alter a vehicle, those essential parts shall be recorded
22    and the entries required by paragraph (2) of subsection (a)
23    shall be made.
24    (4) The following records for rebuilt vehicles shall be
25kept:
26        (A) the year, make, model, style and color of the

 

 

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1    vehicle;
2        (B) the vehicle's manufacturer's identification number
3    of the vehicle or, if applicable, the Secretary of State or
4    Illinois Department of State Police identification number;
5        (C) the date the vehicle was acquired;
6        (D) the name and address of the person from whom the
7    vehicle was acquired, and if that person is a dealer, the
8    Illinois or out-of-state dealer license number of that
9    person;
10        (E) the salvage certificate number for the vehicle;
11        (F) the newly issued certificate of title number for
12    the vehicle;
13        (G) the date of disposition of the vehicle;
14        (H) the name and address of the person to whom the
15    vehicle was disposed, and if a dealer, the Illinois or
16    out-of-state dealer license number of that dealer;
17        (I) The sale price of the vehicle.
18    (a-1) A person licensed or required to be licensed under
19Section 5-101 or Section 5-102 of this Code who issues
20temporary registration permits as permitted by this Code and by
21rule must electronically file the registration with the
22Secretary and must maintain records of the registration in the
23manner prescribed by the Secretary.
24    (b) A failure to make separate entries for each vehicle
25acquired, disposed of, or assigned, or a failure to record any
26of the specific information required to be recorded concerning

 

 

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1the acquisition or disposition of each vehicle as set forth in
2paragraphs (1), (3) and (4) of subsection (a) shall constitute
3a failure to keep records.
4    (c) All entries relating to the acquisition of a vehicle or
5essential part required by subsection (a) of this Section shall
6be recorded no later than the close of business on the seventh
7calendar day following such acquisition. All entries relating
8to the disposition of a vehicle or an essential part shall be
9made at the time of such disposition. If the vehicle or
10essential part was disposed of on the same day as its
11acquisition or the day thereafter, the entries relating to the
12acquisition of the vehicle or essential part shall be made at
13the time of the disposition of the vehicle or essential part.
14Failure to make the entries required in or at the times
15prescribed by this subsection following the acquisition or
16disposition of such vehicle or essential part shall constitute
17a failure to keep records.
18    (d) Every person licensed or required to be licensed shall,
19before accepting delivery of a used vehicle, inspect the
20vehicle to determine whether the manufacturer's public vehicle
21identification number has been defaced, destroyed, falsified,
22removed, altered, or tampered with in any way. If the person
23making the inspection determines that the manufacturer's
24public vehicle identification number has been altered,
25removed, defaced, destroyed, falsified or tampered with he
26shall not acquire that vehicle but instead shall promptly

 

 

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1notify law enforcement authorities of his finding.
2    (e) The information required to be kept in subsection (a)
3of this Section shall be kept in a manner prescribed by rule or
4regulation of the Secretary of State.
5    (f) Every person licensed or required to be licensed shall
6have in his possession a separate certificate of title, salvage
7certificate, junking certificate, certificate of purchase,
8uniform invoice, out-of-state bill of sale or other acceptable
9documentary evidence of his right to the possession of every
10vehicle or essential part.
11    (g) Every person licensed or required to be licensed as a
12transporter under Section 5-201 shall maintain for 3 years, in
13such form as the Secretary of State may by rule or regulation
14prescribe, at his principal place of business a record of every
15vehicle transported by him, including numbers of or other marks
16of identification thereof, the names and addresses of persons
17from whom and to whom the vehicle was delivered and the dates
18of delivery.
19    (h) No later than 15 days prior to going out of business,
20selling the business, or transferring the ownership of the
21business, the licensee shall notify the Secretary of State that
22he is going out of business or that he is transferring the
23ownership of the business. Failure to notify under this
24paragraph shall constitute a failure to keep records.
25    (i) (Blank).
26    (j) A person who knowingly fails to comply with the

 

 

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1provisions of this Section or knowingly fails to obey, observe,
2or comply with any order of the Secretary or any law
3enforcement agency issued in accordance with this Section is
4guilty of a Class B misdemeanor for the first violation and a
5Class A misdemeanor for the second and subsequent violations.
6Each violation constitutes a separate and distinct offense and
7a separate count may be brought in the same indictment or
8information for each vehicle or each essential part of a
9vehicle for which a record was not kept as required by this
10Section.
11    (k) Any person convicted of failing to keep the records
12required by this Section with intent to conceal the identity or
13origin of a vehicle or its essential parts or with intent to
14defraud the public in the transfer or sale of vehicles or their
15essential parts is guilty of a Class 2 felony. Each violation
16constitutes a separate and distinct offense and a separate
17count may be brought in the same indictment or information for
18each vehicle or essential part of a vehicle for which a record
19was not kept as required by this Section.
20    (l) A person may not be criminally charged with or
21convicted of both a knowing failure to comply with this Section
22and a knowing failure to comply with any order, if both
23offenses involve the same record keeping violation.
24    (m) The Secretary shall adopt rules necessary for
25implementation of this Section, which may include the
26imposition of administrative fines.

 

 

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1(Source: P.A. 99-593, eff. 7-22-16.)
 
2    (625 ILCS 5/5-402.1)  (from Ch. 95 1/2, par. 5-402.1)
3    Sec. 5-402.1. Use of Secretary of State Uniform Invoice for
4Essential Parts.
5    (a) Except for scrap processors, every person licensed or
6required to be licensed under Section 5-101, 5-101.1, 5-102,
75-102.8, or 5-301 of this Code shall issue, in a form the
8Secretary of State may by rule or regulation prescribe, a
9Uniform Invoice, which may also act as a bill of sale, made out
10in triplicate with respect to each transaction in which he
11disposes of an essential part other than quarter panels and
12transmissions of vehicles of the first division. Such Invoice
13shall be made out at the time of the disposition of the
14essential part. If the licensee disposes of several essential
15parts in the same transaction, the licensee may issue one
16Uniform Invoice covering all essential parts disposed of in
17that transaction.
18    (b) The following information shall be contained on the
19Uniform Invoice:
20        (1) the business name, address and dealer license
21    number of the person disposing of the essential part;
22        (2) the name and address of the person acquiring the
23    essential part, and if that person is a dealer, the
24    Illinois or out-of-state dealer license number of that
25    dealer;

 

 

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1        (3) the date of the disposition of the essential part;
2        (4) the year, make, model, color and description of
3    each essential part disposed of by the person;
4        (5) the manufacturer's vehicle identification number,
5    Secretary of State identification number or Illinois
6    Department of State Police identification number, for each
7    essential part disposed of by the person;
8        (6) the printed name and legible signature of the
9    person or agent disposing of the essential part; and
10        (7) if the person is a dealer the printed name and
11    legible signature of the dealer or his agent or employee
12    accepting delivery of the essential part.
13    (c) Except for scrap processors, and except as set forth in
14subsection (d) of this Section, whenever a person licensed or
15required to be licensed by Section 5-101, 5-101.1, 5-102, or
165-301 accepts delivery of an essential part, other than quarter
17panels and transmissions of vehicles of the first division,
18that person shall, at the time of the acceptance or delivery,
19comply with the following procedures:
20        (1) Before acquiring or accepting delivery of any
21    essential part, the licensee or his authorized agent or
22    employee shall inspect the part to determine whether the
23    vehicle identification number, Secretary of State
24    identification number, Illinois Department of State Police
25    identification number, or identification plate or sticker
26    attached to or stamped on any part being acquired or

 

 

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1    delivered has been removed, falsified, altered, defaced,
2    destroyed, or tampered with. If the licensee or his agent
3    or employee determines that the vehicle identification
4    number, Secretary of State identification number, Illinois
5    Department of State Police identification number,
6    identification plate or identification sticker containing
7    an identification number, or Federal Certificate label of
8    an essential part has been removed, falsified, altered,
9    defaced, destroyed or tampered with, the licensee or agent
10    shall not accept or receive that part.
11        If that part was physically acquired by or delivered to
12    a licensee or his agent or employee while that licensee,
13    agent or employee was outside this State, that licensee or
14    agent or employee shall not bring that essential part into
15    this State or cause it to be brought into this State.
16        (2) If the person disposing of or delivering the
17    essential part to the licensee is a licensed in-state or
18    out-of-state dealer, the licensee or his agent or employee,
19    after inspecting the essential part as required by
20    paragraph (1) of this subsection (c), shall examine the
21    Uniform Invoice, or bill of sale, as the case may be, to
22    ensure that it contains all the information required to be
23    provided by persons disposing of essential parts as set
24    forth in subsection (b) of this Section. If the Uniform
25    Invoice or bill of sale does not contain all the
26    information required to be listed by subsection (b) of this

 

 

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1    Section, the dealer disposing of or delivering such part or
2    his agent or employee shall record such additional
3    information or other needed modifications on the Uniform
4    Invoice or bill of sale or, if needed, an attachment
5    thereto. The dealer or his agent or employee delivering the
6    essential part shall initial all additions or
7    modifications to the Uniform Invoice or bill of sale and
8    legibly print his name at the bottom of each document
9    containing his initials. If the transaction involves a bill
10    of sale rather than a Uniform Invoice, the licensee or his
11    agent or employee accepting delivery of or acquiring the
12    essential part shall affix his printed name and legible
13    signature on the space on the bill of sale provided for his
14    signature or, if no space is provided, on the back of the
15    bill of sale. If the dealer or his agent or employee
16    disposing of or delivering the essential part cannot or
17    does not provide all the information required by subsection
18    (b) of this Section, the licensee or his agent or employee
19    shall not accept or receive any essential part for which
20    that required information is not provided. If such
21    essential part for which the information required is not
22    fully provided was physically acquired while the licensee
23    or his agent or employee was outside this State, the
24    licensee or his agent or employee shall not bring that
25    essential part into this State or cause it to be brought
26    into this State.

 

 

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1        (3) If the person disposing of the essential part is
2    not a licensed dealer, the licensee or his agent or
3    employee shall, after inspecting the essential part as
4    required by paragraph (1) of subsection (c) of this Section
5    verify the identity of the person disposing of the
6    essential part by examining 2 sources of identification,
7    one of which shall be either a driver's license or state
8    identification card. The licensee or his agent or employee
9    shall then prepare a Uniform Invoice listing all the
10    information required to be provided by subsection (b) of
11    this Section. In the space on the Uniform Invoice provided
12    for the dealer license number of the person disposing of
13    the part, the licensee or his agent or employee shall list
14    the numbers taken from the documents of identification
15    provided by the person disposing of the part. The person
16    disposing of the part shall affix his printed name and
17    legible signature on the space on the Uniform Invoice
18    provided for the person disposing of the essential part and
19    the licensee or his agent or employee acquiring the part
20    shall affix his printed name and legible signature on the
21    space provided on the Uniform Invoice for the person
22    acquiring the essential part. If the person disposing of
23    the essential part cannot or does not provide all the
24    information required to be provided by this paragraph, or
25    does not present 2 satisfactory forms of identification,
26    the licensee or his agent or employee shall not acquire

 

 

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1    that essential part.
2    (d) If an essential part other than quarter panels and
3transmissions of vehicles of the first division was delivered
4by a licensed commercial delivery service delivering such part
5on behalf of a licensed dealer, the person required to comply
6with subsection (c) of this Section may conduct the inspection
7of that part required by paragraph (1) of subsection (c) and
8examination of the Uniform Invoice or bill of sale required by
9paragraph (2) of subsection (c) of this Section immediately
10after the acceptance of the part.
11        (1) If the inspection of the essential part pursuant to
12    paragraph (1) of subsection (c) reveals that the vehicle
13    identification number, Secretary of State identification
14    number, Illinois Department of State Police identification
15    number, identification plate or sticker containing an
16    identification number, or Federal Certificate label of an
17    essential part has been removed, falsified, altered,
18    defaced, destroyed or tampered with, the licensee or his
19    agent shall immediately record such fact on the Uniform
20    Invoice or bill of sale, assign the part an inventory or
21    stock number, place such inventory or stock number on both
22    the essential part and the Uniform Invoice or bill of sale,
23    and record the date of the inspection of the part on the
24    Uniform Invoice or bill of sale. The licensee shall, within
25    7 days of such inspection, return such part to the dealer
26    from whom it was acquired.

 

 

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1        (2) If the examination of the Uniform Invoice or bill
2    of sale pursuant to paragraph (2) of subsection (c) reveals
3    that any of the information required to be listed by
4    subsection (b) of this Section is missing, the licensee or
5    person required to be licensed shall immediately assign a
6    stock or inventory number to such part, place such stock or
7    inventory number on both the essential part and the Uniform
8    Invoice or bill of sale, and record the date of examination
9    on the Uniform Invoice or bill of sale. The licensee or
10    person required to be licensed shall acquire the
11    information missing from the Uniform Invoice or bill of
12    sale within 7 days of the examination of such Uniform
13    Invoice or bill of sale. Such information may be received
14    by telephone conversation with the dealer from whom the
15    part was acquired. If the dealer provides the missing
16    information the licensee shall record such information on
17    the Uniform Invoice or bill of sale along with the name of
18    the person providing the information. If the dealer does
19    not provide the required information within the
20    aforementioned 7 day period, the licensee shall return the
21    part to that dealer.
22    (e) Except for scrap processors, all persons licensed or
23required to be licensed who acquire or dispose of essential
24parts other than quarter panels and transmissions of vehicles
25of the first division shall retain a copy of the Uniform
26Invoice required to be made by subsections (a), (b) and (c) of

 

 

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1this Section for a period of 3 years.
2    (f) Except for scrap processors, any person licensed or
3required to be licensed under Sections 5-101, 5-102 or 5-301
4who knowingly fails to record on a Uniform Invoice any of the
5information or entries required to be recorded by subsections
6(a), (b) and (c) of this Section, or who knowingly places false
7entries or other misleading information on such Uniform
8Invoice, or who knowingly fails to retain for 3 years a copy of
9a Uniform Invoice reflecting transactions required to be
10recorded by subsections (a), (b) and (c) of this Section, or
11who knowingly acquires or disposes of essential parts without
12receiving, issuing, or executing a Uniform Invoice reflecting
13that transaction as required by subsections (a), (b) and (c) of
14this Section, or who brings or causes to be brought into this
15State essential parts for which the information required to be
16recorded on a Uniform Invoice is not recorded as prohibited by
17subsection (c) of this Section, or who knowingly fails to
18comply with the provisions of this Section in any other manner
19shall be guilty of a Class 2 felony. Each violation shall
20constitute a separate and distinct offense and a separate count
21may be brought in the same indictment or information for each
22essential part for which a record was not kept as required by
23this Section or for which the person failed to comply with
24other provisions of this Section.
25    (g) The records required to be kept by this Section may be
26examined by a person or persons making a lawful inspection of

 

 

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1the licensee's premises pursuant to Section 5-403.
2    (h) The records required to be kept by this Section shall
3be retained by the licensee at his principal place of business
4for a period of 7 years.
5    (i) The requirements of this Section shall not apply to the
6disposition of an essential part other than a cowl which has
7been damaged or altered to a state in which it can no longer be
8returned to a usable condition and which is being sold or
9transferred to a scrap processor or for delivery to a scrap
10processor.
11(Source: P.A. 91-415, eff. 1-1-00.)
 
12    (625 ILCS 5/5-403.1)  (from Ch. 95 1/2, par. 5-403.1)
13    Sec. 5-403.1. Inventory System.
14    (a) Every person licensed or required to be licensed under
15the provisions of Sections 5-101, 5-101.1, 5-102, 5-102.8, and
165-301 of this Code shall, under rule and regulation prescribed
17by the Secretary of State, maintain an inventory system of all
18vehicles or essential parts in such a manner that a person
19making an inspection pursuant to the provisions of Section
205-403 of this Code can readily ascertain the identity of such
21vehicles or essential parts and readily locate such parts on
22the licensees premises.
23    (b) Failure to maintain an inventory system as required
24under this Section is a Class A misdemeanor.
25    (c) This Section does not apply to vehicles or essential

 

 

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1parts which have been acquired by a scrap processor for
2processing into a form other than a vehicle or essential part.
3(Source: P.A. 91-415, eff. 1-1-00.)
 
4    (625 ILCS 5/5-501)  (from Ch. 95 1/2, par. 5-501)
5    Sec. 5-501. Denial, suspension or revocation or
6cancellation of a license.
7    (a) The license of a person issued under this Chapter may
8be denied, revoked or suspended if the Secretary of State finds
9that the applicant, or the officer, director, shareholder
10having a ten percent or greater ownership interest in the
11corporation, owner, partner, trustee, manager, employee or the
12licensee has:
13        1. Violated this Act;
14        2. Made any material misrepresentation to the
15    Secretary of State in connection with an application for a
16    license, junking certificate, salvage certificate, title
17    or registration;
18        3. Committed a fraudulent act in connection with
19    selling, bartering, exchanging, offering for sale or
20    otherwise dealing in vehicles, chassis, essential parts,
21    or vehicle shells;
22        4. As a new vehicle dealer has no contract with a
23    manufacturer or enfranchised distributor to sell that new
24    vehicle in this State;
25        5. Not maintained an established place of business as

 

 

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1    defined in this Code;
2        6. Failed to file or produce for the Secretary of State
3    any application, report, document or other pertinent
4    books, records, documents, letters, contracts, required to
5    be filed or produced under this Code or any rule or
6    regulation made by the Secretary of State pursuant to this
7    Code;
8        7. Previously had, within 3 years, such a license
9    denied, suspended, revoked, or cancelled under the
10    provisions of subsection (c)(2) of this Section;
11        8. Has committed in any calendar year 3 or more
12    violations, as determined in any civil or criminal
13    proceeding, of any one or more of the following Acts:
14            a. the "Consumer Finance Act";
15            b. the "Consumer Installment Loan Act";
16            c. the "Retail Installment Sales Act";
17            d. the "Motor Vehicle Retail Installment Sales
18        Act";
19            e. "An Act in relation to the rate of interest and
20        other charges in connection with sales on credit and
21        the lending of money", approved May 24, 1879, as
22        amended;
23            f. "An Act to promote the welfare of wage-earners
24        by regulating the assignment of wages, and prescribing
25        a penalty for the violation thereof", approved July 1,
26        1935, as amended;

 

 

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1            g. Part 8 of Article XII of the Code of Civil
2        Procedure; or
3            h. the "Consumer Fraud Act";
4        9. Failed to pay any fees or taxes due under this Act,
5    or has failed to transmit any fees or taxes received by him
6    for transmittal by him to the Secretary of State or the
7    State of Illinois;
8        10. Converted an abandoned vehicle;
9        11. Used a vehicle identification plate or number
10    assigned to a vehicle other than the one to which
11    originally assigned;
12        12. Violated the provisions of Chapter 5 of this Act,
13    as amended;
14        13. Violated the provisions of Chapter 4 of this Act,
15    as amended;
16        14. Violated the provisions of Chapter 3 of this Act,
17    as amended;
18        15. Violated Section 21-2 of the Criminal Code of 1961
19    or the Criminal Code of 2012, Criminal Trespass to
20    Vehicles;
21        16. Made or concealed a material fact in connection
22    with his application for a license;
23        17. Acted in the capacity of a person licensed or acted
24    as a licensee under this Chapter without having a license
25    therefor;
26        18. Failed to pay, within 90 days after a final

 

 

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1    judgment, any fines assessed against the licensee pursuant
2    to an action brought under Section 5-404;
3        19. Failed to pay the Dealer Recovery Trust Fund fee
4    under Section 5-102.7 of this Code;
5        20. Failed to pay, within 90 days after notice has been
6    given, any fine or fee owed as a result of an
7    administrative citation issued by the Secretary under this
8    Code; .
9        21. Violated Article 16 or 17 of the Criminal Code of
10    2102;
11        22. Was convicted of a forcible felony under either the
12    Criminal Code of 1961 or Criminal Code of 2012 or convicted
13    of a similar out-of-state offense.
14    (b) In addition to other grounds specified in this Chapter,
15the Secretary of State, on complaint of the Department of
16Revenue, shall refuse the issuance or renewal of a license, or
17suspend or revoke such license, for any of the following
18violations of the "Retailers' Occupation Tax Act", the tax
19imposed on corporations under subsection (b) of Section 201 of
20the Illinois Income Tax Act, the Personal Property Tax
21Replacement Income Tax imposed under subsections (c) and (d) of
22Section 201 of the Illinois Income Tax Act, or the tax imposed
23under Section 704A of the Illinois Income Tax Act:
24        1. Failure to make a tax return;
25        2. The filing of a fraudulent return;
26        3. Failure to pay all or part of any tax or penalty

 

 

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1    finally determined to be due;
2        4. Failure to comply with the bonding requirements of
3    the "Retailers' Occupation Tax Act".
4    (b-1) In addition to other grounds specified in this
5Chapter, the Secretary of State, on complaint of the Motor
6Vehicle Review Board, shall refuse the issuance or renewal of a
7license, or suspend or revoke that license, if costs or fees
8assessed under Section 29 or Section 30 of the Motor Vehicle
9Franchise Act have remained unpaid for a period in excess of 90
10days after the licensee received from the Motor Vehicle Board a
11second notice and demand for the costs or fees. The Motor
12Vehicle Review Board must send the licensee written notice and
13demand for payment of the fees or costs at least 2 times, and
14the second notice and demand must be sent by certified mail.
15    (c) Cancellation of a license.
16        1. The license of a person issued under this Chapter
17    may be cancelled by the Secretary of State prior to its
18    expiration in any of the following situations:
19            A. When a license is voluntarily surrendered, by
20        the licensed person; or
21            B. If the business enterprise is a sole
22        proprietorship, which is not a franchised dealership,
23        when the sole proprietor dies or is imprisoned for any
24        period of time exceeding 30 days; or
25            C. If the license was issued to the wrong person or
26        corporation, or contains an error on its face. If any

 

 

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1        person above whose license has been cancelled wishes to
2        apply for another license, whether during the same
3        license year or any other year, that person shall be
4        treated as any other new applicant and the cancellation
5        of the person's prior license shall not, in and of
6        itself, be a bar to the issuance of a new license.
7        2. The license of a person issued under this Chapter
8    may be cancelled without a hearing when the Secretary of
9    State is notified that the applicant, or any officer,
10    director, shareholder having a 10 per cent or greater
11    ownership interest in the corporation, owner, partner,
12    trustee, manager, employee or member of the applicant or
13    the licensee has been convicted of any felony involving the
14    selling, bartering, exchanging, offering for sale, or
15    otherwise dealing in vehicles, chassis, essential parts,
16    vehicle shells, or ownership documents relating to any of
17    the above items.
18(Source: P.A. 97-480, eff. 10-1-11; 97-838, eff. 7-20-12;
1997-1150, eff. 1-25-13; 98-1080, eff. 8-26-14.)
 
20    (625 ILCS 5/5-503)  (from Ch. 95 1/2, par. 5-503)
21    Sec. 5-503. Failure to obtain dealer's license, operation
22of a business with a suspended or revoked license.
23    (a) Any person operating a business for which he is
24required to be licensed under Section 5-101, 5-101.2, 5-102,
255-102.8, 5-201, or 5-301 who fails to apply for such a license

 

 

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1or licenses within 15 days after being informed in writing by
2the Secretary of State that he must obtain such a license or
3licenses is subject to a civil action brought by the Secretary
4of State for operating a business without a license in the
5circuit court in the county in which the business is located.
6If the person is found to be in violation of Section 5-101,
75-101.2, 5-102, 5-102.8, 5-201, or 5-301 by carrying on a
8business without being properly licensed, that person shall be
9fined $300 for each business day he conducted his business
10without such a license after the expiration of the 15-day
11period specified in this subsection (a).
12    (b) Any person who, having had his license or licenses
13issued under Section 5-101, 5-101.2, 5-102, 5-201, or 5-301
14suspended, revoked, nonrenewed, cancelled, or denied by the
15Secretary of State under Section 5-501 or 5-501.5 of this Code,
16continues to operate business after the effective date of such
17revocation, nonrenewal, suspension, cancellation, or denial
18may be sued in a civil action by the Secretary of State in the
19county in which the established or additional place of such
20business is located. Except as provided in subsection (e) of
21Section 5-501.5 of this Code, if such person is found by the
22court to have operated such a business after the license or
23licenses required for conducting such business have been
24suspended, revoked, nonrenewed, cancelled, or denied, that
25person shall be fined $500 for each day he conducted business
26thereafter.

 

 

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1(Source: P.A. 100-409, eff. 8-25-17; 100-450, eff. 1-1-18;
2100-863, eff. 8-14-18.)

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    415 ILCS 120/35
4    625 ILCS 5/3-601from Ch. 95 1/2, par. 3-601
5    625 ILCS 5/3-602from Ch. 95 1/2, par. 3-602
6    625 ILCS 5/3-904from Ch. 95 1/2, par. 3-904
7    625 ILCS 5/3-904.2 new
8    625 ILCS 5/3-904.5 new
9    625 ILCS 5/5-101from Ch. 95 1/2, par. 5-101
10    625 ILCS 5/5-102from Ch. 95 1/2, par. 5-102
11    625 ILCS 5/5-102.5
12    625 ILCS 5/5-102.7
13    625 ILCS 5/5-102.8 new
14    625 ILCS 5/5-102.9 new
15    625 ILCS 5/5-401.2from Ch. 95 1/2, par. 5-401.2
16    625 ILCS 5/5-402.1from Ch. 95 1/2, par. 5-402.1
17    625 ILCS 5/5-403.1from Ch. 95 1/2, par. 5-403.1
18    625 ILCS 5/5-501from Ch. 95 1/2, par. 5-501
19    625 ILCS 5/5-503from Ch. 95 1/2, par. 5-503