HB4639 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4639

 

Introduced 1/21/2022, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/Ch. 5 Art. IX heading new
625 ILCS 5/5-901 new
625 ILCS 5/5-101.2 rep.

    Amends the Illinois Vehicle Code. Repeals a Section concerning the licensing of manufactured home dealers. Creates a new Article concerning the regulation of manufactured home dealers within the Chapter of the Code concerning the licensing of dealers, transporters, wreckers, and rebuilders. Defines terms and provides that no person shall engage in the business of selling or dealing in manufactured homes of any make unless licensed to do so by the Secretary of State. Adds provisions governing: applications; fees; fees; bonding; insurance; business requirements; term of license; cancellation or revocation of licenses; and other matters. Effective July 1, 2023.


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A BILL FOR

 

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1    AN ACT concerning manufactured home dealers.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by adding
5Article IX to Chapter 5 as follows:
 
6    (625 ILCS 5/Ch. 5 Art. IX heading new)
7
ARTICLE IX. MANUFACTURED HOME DEALERS

 
8    (625 ILCS 5/5-901 new)
9    Sec. 5-901. Regulation of manufactured home dealers.
10    (a) As used in this Article:
11    "Established place of business" means the place owned or
12leased and occupied by any person duly licensed or required to
13be licensed as a manufactured home dealer for the purpose of
14engaging in selling, buying, bartering, displaying,
15exchanging, or dealing in, on consignment or otherwise,
16manufactured homes and for such other ancillary purposes as
17may be permitted by the Secretary by rule.
18    "Manufactured home" means a factory-assembled structure
19built on a permanent chassis, transportable in one or more
20sections in the travel mode, incapable of self-propulsion,
21bears a label indicating the manufacturer's compliance with
22the United States Department of Housing and Urban Development

 

 

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1standards, as applicable, and is designed for year-round
2occupancy as a single-family residence when connected to
3approved water, sewer, and electrical utilities.
4    "Manufactured home dealer" means: (1) an individual or
5entity that engages in the business of acquiring or disposing
6of new or used manufactured homes; (2) an individual or entity
7who advertises or otherwise holds the individual or the entity
8out as being engaged in the business of acquiring or selling
9new or used manufactured homes; or (3) an individual or entity
10who buys or sells more than 2 new or used manufactured homes
11within a 12-month period.
12    (b) No person shall engage in this State in the business of
13selling or dealing in, on consignment or otherwise,
14manufactured homes of any make, or act as an intermediary,
15agent, or broker for any manufactured home purchaser, other
16than as a salesperson, or to represent or advertise that he or
17she is so engaged, or intends to so engage, in the business,
18unless licensed to do so by the Secretary of State under this
19Section.
20    (c) An application for a manufactured home dealer's
21license shall be filed with the Secretary of State Vehicle
22Services Department and duly verified by oath, on such form as
23the Secretary of State may prescribe, and shall contain all of
24the following:
25        (1) The name and type of business organization of the
26    applicant, and his or her established place of business in

 

 

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1    this State.
2        (2) If the applicant is a corporation, a list of its
3    officers, directors, and shareholders having a 10% or
4    greater ownership interest in the corporation. If the
5    applicant is a sole proprietorship, a partnership, a
6    limited liability company, an unincorporated association,
7    a trust, or any similar form of business organization, the
8    name and residence address of the proprietor, or the name
9    and residence address of each partner, member, officer,
10    director, trustee, or manager.
11        (3) A statement that the applicant has been approved
12    for registration under the Retailers' Occupation Tax Act
13    by the Department of Revenue, except that this requirement
14    does not apply to a manufactured home dealer who is
15    already licensed with the Secretary of State, and who is
16    only applying for a renewal of his or her license. As
17    evidence of this fact, the application shall be
18    accompanied by a certification from the Department of
19    Revenue showing that the Department has approved the
20    applicant for registration under the Retailers' Occupation
21    Tax Act.
22        (4) An application for a manufactured home dealer's
23    license shall be accompanied by a $1,000 license fee for
24    the applicant's established place of business. If the
25    application is made after June 15 of any year, the license
26    fee shall be $500 for the applicant's established place of

 

 

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1    business. License fees shall be returnable only if the
2    application is denied by the Secretary of State.
3        Of the money received by the Secretary of State as
4    license fees under this paragraph (4), 95% shall be
5    deposited into the General Revenue Fund and 5% into the
6    Motor Vehicle License Plate Fund.
7        (5) A statement that no officer, director, shareholder
8    having a 10% or greater ownership interest, proprietor,
9    partner, member, officer, director, trustee, manager, or
10    other principal in the business of the applicant has
11    committed in the past 3 years any violation, as determined
12    in any civil, criminal, or administrative hearing
13    proceeding, of any one of the following Acts:
14            (A) the Anti-Theft Laws of this Code;
15            (B) the Certificate of Title Laws of this Code;
16            (C) the Offenses against Registration and
17        Certificates of Title Laws of this Code;
18            (D) the Dealers, Transporters, Wreckers, and
19        Rebuilders Laws of this Code;
20            (E) Section 21-2 of the Criminal Code of 2012,
21        criminal trespass to vehicles;
22            (F) the Retailers' Occupation Tax Act;
23            (G) the Consumer Installment Loan Act;
24            (H) the Retail Installment Sales Act;
25            (I) the Interest Act;
26            (J) the Illinois Wage Assignment Act;

 

 

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1            (K) Part 8 of Article XII of the Code of Civil
2        Procedure; or
3            (L) the Consumer Fraud and Deceptive Business
4        Practices Act.
5        (6) A bond or certificate of deposit in the amount of
6    $150,000 for each license holder applicant intending to
7    act as a manufactured home dealer under this Section. The
8    bond shall be for the term of the license for which
9    application is made and shall expire not sooner than
10    December 31st of the year for which the license was
11    issued. The bond shall run to the People of the State of
12    Illinois and to customers asserting financial claims
13    against the dealer, with surety by a bonding or insurance
14    company authorized to do business in this State. It shall
15    be conditioned upon the proper transmittal of all title
16    and registration fees and taxes (excluding taxes under the
17    Retailers' Occupation Tax Act) accepted by the applicant
18    as a manufactured home dealer, and the execution of all of
19    the dealer's obligations to the customer, including
20    financial duties related to the acceptance and
21    disbursement of any funds paid to the dealer by the
22    customer, and conveyance of possession or ownership
23    documents of a manufactured home.
24        (7) Dealers in business for over 10 years may
25    substitute a certificate of insurance in lieu of the bond
26    or certificate of deposit upon renewing their license.

 

 

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1        (8) Any other information concerning the business of
2    the applicant as the Secretary of State may by rule
3    prescribe.
4    (d) Any change that renders no longer accurate any
5information contained in any application for a license under
6this Section shall be amended within 30 days after the
7occurrence of the change on a form the Secretary of State may
8prescribe, by rule, accompanied by an amendatory fee of $25.
9    (e) The Secretary of State shall, within a reasonable time
10after receipt, examine an application submitted under this
11Section, and unless the Secretary makes a determination that
12the application submitted does not conform with the
13requirements of this Section or that grounds exist for a
14denial of the application under subsection (f), grant the
15applicant an initial manufactured home dealer's license in
16writing for the established place of business of the applicant
17in a form the Secretary may prescribe by rule, which shall
18include the following:
19        (1) the name of the person or entity licensed;
20        (2) if a corporation, the name and address of its
21    officers; if a sole proprietorship, a partnership, an
22    unincorporated association, or any similar form of
23    business organization, the name and address of the
24    proprietor, or the name and address of each partner,
25    member, officer, director, trustee or manager; or if a
26    limited liability company, the name and address of the

 

 

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1    general partner or partners, or managing member or
2    members; and
3        (3) the established place of business of the licensee.
4    (f) A license issued under this Section may be denied,
5revoked, or suspended if the Secretary of State finds that the
6applicant, or the officer, director, shareholder having a 10%
7or greater ownership interest in the corporation, owner,
8partner, trustee, manager, employee or the licensee has:
9        (1) violated this Section;
10        (2) made any material misrepresentation to the
11    Secretary of State in connection with an application for a
12    license, title, or registration;
13        (3) committed a fraudulent act in connection with
14    selling, bartering, exchanging, offering for sale, or
15    otherwise dealing in manufactured homes;
16        (4) not maintained an established place of business as
17    defined in this Section;
18        (5) failed to file or produce to the Secretary of
19    State any application, report, document, or other
20    pertinent books, records, documents, letters, contracts
21    required to be filed or produced under this Section or any
22    rule adopted by the Secretary of State pursuant to this
23    Section;
24        (6) failed to pay any fees or taxes due under this
25    Code, or has failed to transmit any fees or taxes received
26    by him or her for transmittal by him or her to the

 

 

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1    Secretary of State or the State of Illinois;
2        (7) failed to transfer title to a manufactured home
3    when legally required to do so; or
4        (8) violated any 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 Criminal Code of 2012,
12        criminal trespass to vehicles;
13            (F) the Retailers' Occupation Tax Act;
14            (G) the Consumer Installment Loan Act;
15            (H) the Retail Installment Sales Act;
16            (I) the Interest Act;
17            (J) the Illinois Wage Assignment Act;
18            (K) Part 8 of Article XII of the Code of Civil
19        Procedure; or
20            (L) the Consumer Fraud and Deceptive Business
21        Practices Act.
22    (g) In addition to other grounds specified in this
23Section, the Secretary of State, on complaint of the
24Department of Revenue, shall refuse the issuance or renewal of
25a license, or suspend or revoke such a license, for any of the
26following violations of the Retailers' Occupation Tax Act, the

 

 

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1tax imposed on corporations under subsection (b) of Section
2201 of the Illinois Income Tax Act, the Personal Property Tax
3Replacement Income Tax imposed under subsections (c) and (d)
4of Section 201 of the Illinois Income Tax Act, or the tax
5imposed under Section 704A of the Illinois Income Tax Act:
6        (1) failure to make a tax return;
7        (2) the filing of a fraudulent return;
8        (3) failure to pay all or part of any tax or penalty
9    finally determined to be due;
10        (4) failure to comply with the bonding requirements of
11    the Retailers' Occupation Tax Act.
12    (h) A license issued under this Section may be canceled by
13the Secretary of State prior to its expiration in any of the
14following situations:
15        (1) if a license is voluntarily surrendered by the
16    licensed person;
17        (2) if the business enterprise is a sole
18    proprietorship and the sole proprietor dies or is
19    imprisoned for any period exceeding 30 days; or
20        (3) if the license was issued to the wrong person or
21    corporation or contains an error on its face.
22    If any person whose license has been canceled wishes to
23apply for another license, whether during the same license
24year or any other year, that person shall be treated as a new
25applicant and the cancellation of the person's prior license
26shall not, in and of itself, be a bar to the issuance of a new

 

 

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1license.
2    (i) A license issued under this Section may be canceled
3without a hearing if the Secretary of State is notified that
4the applicant, or any officer, director, shareholder having a
510% or greater ownership interest, owner, partner, trustee,
6manager, employee, or member of the applicant or the licensee
7has been convicted of any forcible felony or any felony
8involving the selling, bartering, exchanging, offering for
9sale, or otherwise dealing in ownership documents relating to
10any of the above actions.
11    (j) The appropriate instrument evidencing the license or a
12certified copy of the instrument, provided by the Secretary of
13State, shall be kept posted conspicuously in the established
14place of business of the licensee.
15    (k) All records related to the purchase, sale, or
16acceptance for sale on consignment of any manufactured home
17shall be maintained at the licensee's established place of
18business. These records shall be retained for a period of not
19less than 7 years, and shall be made available for inspection
20upon the request of a Secretary of State auditor or an
21investigator with the Secretary of State Department of Police.
22    (l) Except as provided in subsection (i), all licenses
23granted under this Section shall expire by operation of law on
24December 31st of the calendar year for which the licenses were
25granted, unless sooner revoked or canceled under subsection
26(f).

 

 

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1    (m) Each person licensed as a manufactured home dealer is
2required to furnish each purchaser of a manufactured home:
3        (1) in the case of a new manufactured home, a
4    manufacturer's statement of origin, and in the case of a
5    previously owned manufactured home, a certificate of
6    title, in either case properly assigned to the purchaser;
7        (2) a statement verified under oath that all
8    identifying numbers on the vehicle match the identifying
9    numbers on the certificate of title or manufacturer's
10    statement of origin;
11        (3) a bill of sale properly executed on behalf of the
12    purchaser; and
13        (4) for a new manufactured home, a warranty, and in
14    the case of a manufactured home for which the warranty has
15    been reinstated, a copy of the warranty; if no warranty is
16    provided, a disclosure or statement that the manufactured
17    home is being sold "AS IS".
18    (n) This Section does not apply to a seller who privately
19owns his or her manufactured home as his or her main residence
20and is selling the manufactured home to another individual or
21to a licensee so long as that individual does not sell more
22than 2 manufactured homes in one 12-month period.
23    (o) This Section does not apply to any person licensed
24under the Real Estate License Act of 2000.
25    (p) The Secretary of State may adopt any rules necessary
26to implement this Section.

 

 

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1    (q) Any individual or entity licensed as a manufactured
2home dealer or a community-based manufactured home dealer on
3the effective date of this Section shall be entitled to act as
4a manufactured home dealer under this Section for the duration
5of any license in effect on the effective date of this
6amendatory Act of the 102nd General Assembly, and shall be
7eligible to be issued a manufactured home dealer's license
8under this Section upon the expiration of any such license.
 
9    (625 ILCS 5/5-101.2 rep.)
10    Section 10. The Illinois Vehicle Code is amended by
11repealing Section 5-101.2.
 
12    Section 99. Effective date. This Act takes effect July 1,
132022.