Full Text of SB0982 97th General Assembly
SB0982 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB0982 Introduced 2/8/2011, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: | | 625 ILCS 5/5-101 | from Ch. 95 1/2, par. 5-101 |
|
Amends the Illinois Vehicle Code. Makes a technical change in a
Section concerning new vehicle dealers.
|
| |
| | A BILL FOR |
|
| | | SB0982 | | LRB097 04721 HEP 44760 b |
|
| 1 | | AN ACT concerning transportation.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Vehicle Code is amended by changing | 5 | | Section 5-101 as follows:
| 6 | | (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
| 7 | | Sec. 5-101. New vehicle dealers must be licensed.
| 8 | | (a) No person shall engage in this State in the
the | 9 | | business of selling
or dealing in, on consignment or otherwise, | 10 | | new vehicles of any make, or
act as an intermediary or agent or | 11 | | broker for any licensed dealer or
vehicle purchaser other than | 12 | | as a salesperson, or represent or advertise
that he is so | 13 | | engaged or intends to so engage in such business unless
| 14 | | licensed to do so in writing by the Secretary of State under | 15 | | the
provisions of this Section. | 16 | | (b) An application for a new vehicle dealer's license shall | 17 | | be filed
with the Secretary of State, duly verified by oath, on | 18 | | such form as the
Secretary of State may by rule or regulation | 19 | | prescribe and shall contain:
| 20 | | 1. The name and type of business organization of the | 21 | | applicant and
his established and additional places of | 22 | | business, if any, in this State.
| 23 | | 2. If the applicant is a corporation, a list of its |
| | | SB0982 | - 2 - | LRB097 04721 HEP 44760 b |
|
| 1 | | officers,
directors, and shareholders having a ten percent | 2 | | or greater ownership
interest in the corporation, setting | 3 | | forth the residence address of
each; if the applicant is a | 4 | | sole proprietorship, a partnership, an
unincorporated | 5 | | association, a trust, or any similar form of business
| 6 | | organization, the name and residence address of the | 7 | | proprietor or of
each partner, member, officer, director, | 8 | | trustee, or manager.
| 9 | | 3. The make or makes of new vehicles which the | 10 | | applicant will offer
for sale at retail in this State.
| 11 | | 4. The name of each manufacturer or franchised | 12 | | distributor, if any,
of new vehicles with whom the | 13 | | applicant has contracted for the sale of
such new vehicles. | 14 | | As evidence of this fact, the application shall be
| 15 | | accompanied by a signed statement from each such | 16 | | manufacturer or
franchised distributor. If the applicant | 17 | | is in the business of
offering for sale new conversion | 18 | | vehicles, trucks or vans, except for
trucks modified to | 19 | | serve a special purpose which includes but is not
limited | 20 | | to the following vehicles: street sweepers, fertilizer | 21 | | spreaders,
emergency vehicles, implements of husbandry or | 22 | | maintenance type vehicles,
he must furnish evidence of a | 23 | | sales and service agreement from both the
chassis | 24 | | manufacturer and second stage manufacturer.
| 25 | | 5. A statement that the applicant has been approved for | 26 | | registration
under the Retailers' Occupation Tax Act by the |
| | | SB0982 | - 3 - | LRB097 04721 HEP 44760 b |
|
| 1 | | Department of Revenue:
Provided that this requirement does | 2 | | not apply to a dealer who is already
licensed hereunder | 3 | | with the Secretary of State, and who is merely applying
for | 4 | | a 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 that Department has | 7 | | approved the applicant for registration
under the | 8 | | Retailers' Occupation Tax Act.
| 9 | | 6. 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 new 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 |
| | | SB0982 | - 4 - | LRB097 04721 HEP 44760 b |
|
| 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 new vehicle | 16 | | dealer's automobile,
the new vehicle dealer's insurance | 17 | | shall be primary and the permitted user's
insurance shall | 18 | | be secondary.
| 19 | | As used in this paragraph 6, a "permitted user" is a | 20 | | person who, with the
permission of the new vehicle dealer | 21 | | or an employee of the new vehicle dealer,
drives a vehicle | 22 | | owned and held for sale or lease by the new 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 new
|
| | | SB0982 | - 5 - | LRB097 04721 HEP 44760 b |
|
| 1 | | vehicle dealer, drives a vehicle owned or held for sale or | 2 | | lease by the new
vehicle dealer
for loaner purposes while | 3 | | the user's vehicle is being repaired or evaluated.
| 4 | | As used in this paragraph 6, "test driving" occurs when | 5 | | a permitted user
who,
with the permission of the new | 6 | | vehicle dealer or an employee of the new vehicle
dealer, | 7 | | drives a vehicle owned and held for sale or lease by a new | 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 6, "loaner purposes" means | 12 | | when a person who,
with the permission of the new vehicle | 13 | | dealer, drives a vehicle owned or held
for sale or lease by | 14 | | the new vehicle dealer while the
user's vehicle is being | 15 | | repaired or evaluated.
| 16 | | 7. (A) An application for a new motor vehicle dealer's | 17 | | license shall be
accompanied by the following license fees:
| 18 | | $1,000 for applicant's established place of | 19 | | business, and
$100 for each
additional place of | 20 | | business, if any, to which the application
pertains; | 21 | | but if the application is made after June 15 of any | 22 | | year, the license
fee shall be $500 for applicant's | 23 | | established place of business
plus
$50 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 |
| | | SB0982 | - 6 - | LRB097 04721 HEP 44760 b |
|
| 1 | | Secretary of State.
All moneys received by the | 2 | | Secretary of State as license fees under paragraph
| 3 | | (7)(A) of subsection (b) of this Section prior to | 4 | | applications for the 2004
licensing year
shall be
| 5 | | deposited into the Motor Vehicle Review Board Fund and | 6 | | shall
be used to administer the Motor Vehicle Review | 7 | | Board under the Motor Vehicle
Franchise Act. Of the | 8 | | money received by the Secretary of State as license
| 9 | | fees under paragraph (7)(A) of subsection (b) of this | 10 | | Section for the 2004
licensing year and
thereafter, 10% | 11 | | shall
be deposited into the Motor Vehicle Review Board | 12 | | Fund and shall be used to
administer the Motor Vehicle | 13 | | Review Board under the Motor Vehicle Franchise Act
and | 14 | | 90% shall be deposited into the General Revenue Fund.
| 15 | | (B) An application for a new vehicle dealer's | 16 | | license, other than for
a new motor vehicle dealer's | 17 | | license, shall be accompanied by the following
license | 18 | | fees:
| 19 | | $1,000 for applicant's established place of | 20 | | business, and
$50 for each
additional place of | 21 | | business, if any, to which the application pertains; | 22 | | but if
the application is made after June 15 of any | 23 | | year, the license fee shall be
$500
for applicant's | 24 | | established place of business plus $25 for each
| 25 | | additional
place of business, if any, to which the | 26 | | application pertains. License fees
shall be returnable |
| | | SB0982 | - 7 - | LRB097 04721 HEP 44760 b |
|
| 1 | | only in the event that the application is denied by the
| 2 | | Secretary of State. Of the money received by the | 3 | | Secretary of State as
license fees under this | 4 | | subsection for the 2004 licensing year and thereafter,
| 5 | | 95% shall be deposited into the General Revenue Fund.
| 6 | | 8. A statement that the applicant's officers, | 7 | | directors,
shareholders having a 10% or greater ownership | 8 | | interest
therein, proprietor, a 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 Criminal Code of 1961, | 24 | | Criminal Trespass to
Vehicles; or
| 25 | | (F) The Retailers' Occupation Tax Act.
| 26 | | 9. A statement that the applicant's officers, |
| | | SB0982 | - 8 - | LRB097 04721 HEP 44760 b |
|
| 1 | | directors,
shareholders having a 10% or greater ownership | 2 | | interest
therein, proprietor, partner, member, officer, | 3 | | director, trustee, manager
or other principals in the | 4 | | business have not committed in any calendar year
3 or more | 5 | | violations, as determined in any civil, criminal or
| 6 | | administrative proceedings, of any one or more of the | 7 | | following Acts:
| 8 | | (A) The Consumer Finance Act;
| 9 | | (B) The Consumer Installment Loan Act;
| 10 | | (C) The Retail Installment Sales Act;
| 11 | | (D) The Motor Vehicle Retail Installment Sales | 12 | | Act;
| 13 | | (E) The Interest Act;
| 14 | | (F) The Illinois Wage Assignment Act;
| 15 | | (G) Part 8 of Article XII of the Code of Civil | 16 | | Procedure; or
| 17 | | (H) The Consumer Fraud Act.
| 18 | | 10. A bond or certificate of deposit in the amount of | 19 | | $20,000 for
each location at which the applicant intends to | 20 | | act as a new vehicle
dealer. The bond shall be for the term | 21 | | of the license, or its renewal, for
which application is | 22 | | made, and shall expire not sooner than
December 31 of the | 23 | | year for which the license was issued or renewed. The bond
| 24 | | shall run to the People of the State of Illinois, with | 25 | | surety by a bonding or
insurance company authorized to do | 26 | | business in this State. It shall be
conditioned upon the |
| | | SB0982 | - 9 - | LRB097 04721 HEP 44760 b |
|
| 1 | | proper transmittal of all title and registration fees and
| 2 | | taxes (excluding taxes under the Retailers' Occupation Tax | 3 | | Act) accepted by the
applicant as a new vehicle dealer.
| 4 | | 11. Such other information concerning the business of | 5 | | the applicant as
the Secretary of State may by rule or | 6 | | regulation prescribe.
| 7 | | 12. A statement that the applicant understands Chapter | 8 | | One through
Chapter Five of this Code.
| 9 | | (c) Any change which renders no longer accurate any | 10 | | information
contained in any application for a new vehicle | 11 | | dealer's license shall be
amended within 30 days after the | 12 | | occurrence of such change on such form
as the Secretary of | 13 | | State may prescribe by rule or regulation,
accompanied by an | 14 | | amendatory fee of $2.
| 15 | | (d) Anything in this Chapter 5 to the contrary | 16 | | notwithstanding no
person shall be licensed as a new vehicle | 17 | | dealer unless:
| 18 | | 1. He is authorized by contract in writing between | 19 | | himself and the
manufacturer or franchised distributor of | 20 | | such make of vehicle to so
sell the same in this State, and
| 21 | | 2. Such person shall maintain an established place of | 22 | | business as
defined in this Act.
| 23 | | (e) The Secretary of State shall, within a reasonable time | 24 | | after
receipt, examine an application submitted to him under | 25 | | this Section and
unless he makes a determination that the | 26 | | application submitted to him
does not conform with the |
| | | SB0982 | - 10 - | LRB097 04721 HEP 44760 b |
|
| 1 | | requirements of this Section or that grounds
exist for a denial | 2 | | of the application, under Section 5-501 of this
Chapter, grant | 3 | | the applicant an original new vehicle dealer's license in
| 4 | | writing for his established place of business and a | 5 | | supplemental license
in writing for each additional place of | 6 | | business in such form as he may
prescribe by rule or regulation | 7 | | which shall include the following:
| 8 | | 1. The name of the person licensed;
| 9 | | 2. If a corporation, the name and address of its | 10 | | officers or if a
sole proprietorship, a partnership, an | 11 | | unincorporated association or any
similar form of business | 12 | | organization, the name and address of the
proprietor or of | 13 | | each partner, member, officer, director, trustee or
| 14 | | manager;
| 15 | | 3. In the case of an original license, the established | 16 | | place of
business of the licensee;
| 17 | | 4. In the case of a supplemental license, the | 18 | | established place of
business of the licensee and the | 19 | | additional place of business to which such
supplemental | 20 | | license pertains;
| 21 | | 5. The make or makes of new vehicles which the licensee | 22 | | is licensed
to sell.
| 23 | | (f) The appropriate instrument evidencing the license or a | 24 | | certified
copy thereof, provided by the Secretary of State, | 25 | | shall be kept posted
conspicuously in the established place of | 26 | | business of the licensee and
in each additional place of |
| | | SB0982 | - 11 - | LRB097 04721 HEP 44760 b |
|
| 1 | | business, if any, maintained by such
licensee.
| 2 | | (g) Except as provided in subsection (h) hereof, all new | 3 | | vehicle
dealer's licenses granted under this Section shall | 4 | | expire by operation
of law on December 31 of the calendar year | 5 | | for which they are granted
unless sooner revoked or cancelled | 6 | | under the provisions of Section 5-501
of this Chapter.
| 7 | | (h) A new vehicle dealer's license may be renewed upon | 8 | | application
and payment of the fee required herein, and | 9 | | submission of proof of
coverage under an approved bond under | 10 | | the "Retailers' Occupation Tax
Act" or proof that applicant is | 11 | | not subject to such bonding
requirements, as in the case of an | 12 | | original license, but in case an
application for the renewal of | 13 | | an effective license is made during the
month of December, the | 14 | | effective license shall remain in force until the
application | 15 | | is granted or denied by the Secretary of State.
| 16 | | (i) All persons licensed as a new vehicle dealer are | 17 | | required to
furnish each purchaser of a motor vehicle:
| 18 | | 1. In the case of a new vehicle a manufacturer's | 19 | | statement of origin
and in the case of a used motor vehicle | 20 | | a certificate of title, in
either case properly assigned to | 21 | | the purchaser;
| 22 | | 2. A statement verified under oath that all identifying | 23 | | numbers on
the vehicle agree with those on the certificate | 24 | | of title or
manufacturer's statement of origin;
| 25 | | 3. A bill of sale properly executed on behalf of such | 26 | | person;
|
| | | SB0982 | - 12 - | LRB097 04721 HEP 44760 b |
|
| 1 | | 4. A copy of the Uniform Invoice-transaction reporting | 2 | | return
referred to in Section 5-402 hereof;
| 3 | | 5. In the case of a rebuilt vehicle, a copy of the | 4 | | Disclosure of Rebuilt
Vehicle Status; and
| 5 | | 6. In the case of a vehicle for which the warranty has | 6 | | been reinstated, a
copy of the warranty.
| 7 | | (j) Except at the time of sale or repossession of the | 8 | | vehicle, no person
licensed as a new vehicle dealer may issue | 9 | | any other person a newly created
key to a vehicle unless the | 10 | | new vehicle dealer makes a copy of the driver's
license or | 11 | | State identification card of the person requesting or obtaining | 12 | | the
newly created key. The new vehicle dealer must retain the | 13 | | copy for 30 days.
| 14 | | A new vehicle dealer who violates this subsection (j) is | 15 | | guilty of a
petty offense. Violation of this subsection (j) is | 16 | | not cause to suspend,
revoke,
cancel, or deny renewal of the | 17 | | new vehicle dealer's license.
| 18 | | This amendatory Act of 1983 shall be applicable to the 1984 | 19 | | registration
year and thereafter.
| 20 | | (Source: P.A. 92-391, eff. 8-16-01; 92-835, eff. 6-1-03; 93-32, | 21 | | eff. 7-1-03.)
|
|