Full Text of HB4925 103rd General Assembly
HB4925eng 103RD GENERAL ASSEMBLY | | | HB4925 Engrossed | | LRB103 37949 SPS 68081 b |
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| 1 | | AN ACT concerning business. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Motor Vehicle Franchise Act is amended by | 5 | | changing Section 10.1 as follows: | 6 | | (815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1) | 7 | | Sec. 10.1. (a) As used in this Section, "motorcycle" means | 8 | | every motor vehicle having a seat or saddle for the use of the | 9 | | rider and designed to travel with 3 or less wheels in contact | 10 | | with the ground, excluding farm, garden, and lawn equipment, | 11 | | and including off-highway vehicles. | 12 | | (b) It shall be deemed a violation for a manufacturer, a | 13 | | distributor, a wholesaler, a distributor branch or division, | 14 | | or officer, agent, or other representative thereof: | 15 | | (1) To require a motorcycle franchisee to participate | 16 | | in a retail financing plan or retail leasing plan or to | 17 | | participate in any retail consumer insurance plan. | 18 | | (2) To own, to operate or to control any motorcycle | 19 | | dealership in this State for a period longer than 2 years. | 20 | | (3) (Blank). | 21 | | (4) To require a motorcycle dealer to utilize | 22 | | manufacturer approved floor fixtures for the display of | 23 | | any product that is not a product of the manufacturer. |
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| 1 | | (5) To require a motorcycle dealer to purchase | 2 | | lighting fixtures that are to be installed in the | 3 | | dealership only from the manufacturer's approved vendors. | 4 | | (6) To require a motorcycle dealer to relocate to a | 5 | | new or alternate facility. | 6 | | (7) To coerce or require any motorcycle dealer to | 7 | | construct improvements to the dealer's facility at a | 8 | | substantial cost to the dealer or to condition any | 9 | | motorcycle dealer's eligibility for payments under any | 10 | | discount, credit, rebate, sales incentive, or similar | 11 | | program on the dealer constructing improvements to the | 12 | | dealer's facility at a substantial cost to the dealer. | 13 | | Whenever any motorcycle dealer enters into a franchise | 14 | | agreement, evidenced by a contract, with a wholesaler, | 15 | | manufacturer, or distributor wherein the franchisee agrees to | 16 | | maintain an inventory and the contract is terminated by the | 17 | | wholesaler, manufacturer, distributor, or franchisee, then the | 18 | | franchisee may require the repurchase of the inventory as | 19 | | provided for in this Act. If the franchisee has any | 20 | | outstanding debts to the wholesaler, manufacturer, or | 21 | | distributor, then the repurchase amount may be credited to the | 22 | | franchisee's account. The franchise agreement shall either | 23 | | expressly or by operation of law have as part of its terms a | 24 | | security agreement whereby the wholesaler, manufacturer, or | 25 | | distributor agrees to and does grant a security interest to | 26 | | the motorcycle dealer in the repurchased inventory to secure |
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| 1 | | payment of the repurchase amount to the dealer. The | 2 | | perfection, priority, and other matters relating to the | 3 | | security interest shall be governed by Article 9 of the | 4 | | Uniform Commercial Code. The provisions of this Section shall | 5 | | not be construed to affect in any way any security interest | 6 | | that any financial institution, person, wholesaler, | 7 | | manufacturer, or distributor may have in the inventory of the | 8 | | motorcycle dealer. | 9 | | (c) The provisions of this Section 10.1 are applicable to | 10 | | all new or existing motorcycle franchisees and franchisers and | 11 | | are in addition to the other rights and remedies provided in | 12 | | this Act, and, in the case of a conflict with other provisions | 13 | | contained in this Act, with respect to motorcycle franchises, | 14 | | this Section shall be controlling. | 15 | | (d) The filing of a timely protest by a motorcycle | 16 | | franchise before the Motor Vehicle Review Board as prescribed | 17 | | by Sections 12 and 29 of this Act, shall stay the effective | 18 | | date of a proposed additional franchise or selling agreement, | 19 | | or the effective date of a proposed motorcycle dealership | 20 | | relocation, or the effective date of a cancellation, | 21 | | termination, or modification, or extend the expiration date of | 22 | | a franchise or selling agreement by refusal to honor | 23 | | succession to ownership or refusal to approve a sale or | 24 | | transfer pending a final determination of the issues in the | 25 | | hearing. | 26 | | (Source: P.A. 100-863, eff. 8-14-18.) |
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law. |
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