Full Text of HB1345 99th General Assembly
HB1345enr 99TH GENERAL ASSEMBLY |
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| 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 | | Sections 3-904, 5-101, and 5-102 and by adding Section 3-904.5 | 6 | | as follows:
| 7 | | (625 ILCS 5/3-904) (from Ch. 95 1/2, par. 3-904)
| 8 | | Sec. 3-904. Application ; contents; affidavits; prelicense | 9 | | education certification - Contents - Affidavits . | 10 | | (a) Any person who desires to act as a "remittance agent" | 11 | | shall first file
with the Secretary of State a written | 12 | | application for a license. The
application shall be under oath | 13 | | and shall contain the following:
| 14 | | 1. The name and address of the applicant.
| 15 | | 2. The address of each location at which the applicant | 16 | | intends to act as
a remittance agent.
| 17 | | 3. The applicant's business, occupation or profession.
| 18 | | 4. A statement disclosing whether he has been involved | 19 | | in any civil or
criminal litigation and if so, the material | 20 | | facts pertaining thereto.
| 21 | | 5. A statement that the applicant has not committed in | 22 | | the past 3 years any violation as determined in any civil, | 23 | | criminal, or administrative proceedings under the |
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| 1 | | Retailers' Occupation Tax Act or under Article I or VII of | 2 | | Chapter 3 of this Code. | 3 | | 6. Any other information concerning the business of the | 4 | | applicant that the Secretary of State may prescribe. | 5 | | (b) The application under subsection (a) shall be | 6 | | accompanied by the affidavits of two persons
residing in the | 7 | | city or town of such applicant's residence. Such affiants
shall | 8 | | state that they have known the applicant for a period of at | 9 | | least two
years; that the applicant is of good moral character | 10 | | and that his
reputation for honesty and business integrity in | 11 | | the community in which he
resides is good. If the applicant is | 12 | | not an individual, the requirements of
this paragraph shall | 13 | | apply to each of its officers or members.
| 14 | | (c) The application under subsection (a) shall be | 15 | | accompanied by a copy of the certification from the | 16 | | prelicensing education program as required by Section 3-904.5 | 17 | | of this Code. | 18 | | (Source: P.A. 97-832, eff. 7-20-12.)
| 19 | | (625 ILCS 5/3-904.5 new) | 20 | | Sec. 3-904.5. Remittance agent prelicensing education | 21 | | program courses. | 22 | | (a) An applicant for a license as a remittance agent shall | 23 | | complete a minimum of 8 hours of prelicensing education program | 24 | | courses under this Section prior to submitting an application | 25 | | to the Secretary of State. |
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| 1 | | (b) To meet the requirements of this Section, at least one | 2 | | person who is associated with the remittance agent as an owner, | 3 | | principal, corporate officer, director, or member or partner of | 4 | | a limited liability company or limited liability partnership | 5 | | shall complete the education program courses. | 6 | | (c) The prelicensing education program courses shall be | 7 | | provided by public or private entities with an expertise in the | 8 | | area as approved by the Secretary of State. The Secretary of | 9 | | State must approve course curricula and instruction, in | 10 | | consultation with the Department of Transportation and any | 11 | | private entity with expertise in the area in the Secretary's | 12 | | discretion. | 13 | | (d) Each person who successfully completes an approved | 14 | | prelicensing education program under this Section shall be | 15 | | issued a certificate by the education program provider. The | 16 | | current certificate of completion, or a copy of the current | 17 | | certificate, shall be posted conspicuously in the principal | 18 | | office of the licensee. | 19 | | (e) The provisions of this Section apply to all remittance | 20 | | agents including, but not limited to, persons, corporations, | 21 | | 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 |
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| 1 | | vehicle dealer; and | 2 | | (5) banks, credit unions, and savings and loan | 3 | | associations.
| 4 | | (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
| 5 | | Sec. 5-101. New vehicle dealers must be licensed.
| 6 | | (a) No person shall engage in this State in the business of | 7 | | selling
or dealing in, on consignment or otherwise, new | 8 | | vehicles of any make, or
act as an intermediary or agent or | 9 | | broker for any licensed dealer or
vehicle purchaser other than | 10 | | as a salesperson, or represent or advertise
that he is so | 11 | | engaged or intends to so engage in such business unless
| 12 | | licensed to do so in writing by the Secretary of State under | 13 | | the
provisions of this Section.
| 14 | | (b) An application for a new vehicle dealer's license shall | 15 | | be filed
with the Secretary of State, duly verified by oath, on | 16 | | such form as the
Secretary of State may by rule or regulation | 17 | | prescribe and shall contain:
| 18 | | 1. The name and type of business organization of the | 19 | | applicant and
his established and additional places of | 20 | | business, if any, in this State.
| 21 | | 2. If the applicant is a corporation, a list of its | 22 | | officers,
directors, and shareholders having a ten percent | 23 | | or greater ownership
interest in the corporation, setting | 24 | | forth the residence address of
each; if the applicant is a | 25 | | sole proprietorship, a partnership, an
unincorporated |
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| 1 | | association, a trust, or any similar form of business
| 2 | | organization, the name and residence address of the | 3 | | proprietor or of
each partner, member, officer, director, | 4 | | trustee, or manager.
| 5 | | 3. The make or makes of new vehicles which the | 6 | | applicant will offer
for sale at retail in this State.
| 7 | | 4. The name of each manufacturer or franchised | 8 | | distributor, if any,
of new vehicles with whom the | 9 | | applicant has contracted for the sale of
such new vehicles. | 10 | | As evidence of this fact, the application shall be
| 11 | | accompanied by a signed statement from each such | 12 | | manufacturer or
franchised distributor. If the applicant | 13 | | is in the business of
offering for sale new conversion | 14 | | vehicles, trucks or vans, except for
trucks modified to | 15 | | serve a special purpose which includes but is not
limited | 16 | | to the following vehicles: street sweepers, fertilizer | 17 | | spreaders,
emergency vehicles, implements of husbandry or | 18 | | maintenance type vehicles,
he must furnish evidence of a | 19 | | sales and service agreement from both the
chassis | 20 | | manufacturer and second stage manufacturer.
| 21 | | 5. A statement that the applicant has been approved for | 22 | | registration
under the Retailers' Occupation Tax Act by the | 23 | | Department of Revenue:
Provided that this requirement does | 24 | | not apply to a dealer who is already
licensed hereunder | 25 | | with the Secretary of State, and who is merely applying
for | 26 | | a renewal of his license. As evidence of this fact, the |
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| 1 | | application
shall be accompanied by a certification from | 2 | | the Department of Revenue
showing that that Department has | 3 | | approved the applicant for registration
under the | 4 | | Retailers' Occupation Tax Act.
| 5 | | 6. A statement that the applicant has complied with the | 6 | | appropriate
liability insurance requirement. A Certificate | 7 | | of Insurance in a solvent
company authorized to do business | 8 | | in the State of Illinois shall be included
with each | 9 | | application covering each location at which he proposes to | 10 | | act
as a new vehicle dealer. The policy must provide | 11 | | liability coverage in
the minimum amounts of $100,000 for | 12 | | bodily injury to, or death of, any person,
$300,000 for | 13 | | bodily injury to, or death of, two or more persons in any | 14 | | one
accident, and $50,000 for damage to property. Such | 15 | | policy shall expire
not sooner than December 31 of the year | 16 | | for which the license was issued
or renewed. The expiration | 17 | | of the insurance policy shall not terminate
the liability | 18 | | under the policy arising during the period for which the
| 19 | | policy was filed. Trailer and mobile home dealers are | 20 | | exempt from this
requirement.
| 21 | | If the permitted user has a liability insurance policy | 22 | | that provides
automobile
liability insurance coverage of | 23 | | at least $100,000 for bodily injury to or the
death of any
| 24 | | person, $300,000 for bodily injury to or the death of any 2 | 25 | | or more persons in
any one
accident, and $50,000 for damage | 26 | | to property,
then the permitted user's insurer shall be the |
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| 1 | | primary
insurer and the
dealer's insurer shall be the | 2 | | secondary insurer. If the permitted user does not
have a | 3 | | liability
insurance policy that provides automobile | 4 | | liability insurance coverage of at
least
$100,000 for | 5 | | bodily injury to or the death of any person, $300,000 for | 6 | | bodily
injury to or the death of any 2 or more persons in | 7 | | any one accident, and
$50,000 for damage to property, or | 8 | | does not have any insurance at all,
then the dealer's | 9 | | insurer shall be the primary insurer and the permitted | 10 | | user's
insurer shall be the secondary
insurer.
| 11 | | When a permitted user is "test driving" a new vehicle | 12 | | dealer's automobile,
the new vehicle dealer's insurance | 13 | | shall be primary and the permitted user's
insurance shall | 14 | | be secondary.
| 15 | | As used in this paragraph 6, a "permitted user" is a | 16 | | person who, with the
permission of the new vehicle dealer | 17 | | or an employee of the new vehicle dealer,
drives a vehicle | 18 | | owned and held for sale or lease by the new vehicle dealer
| 19 | | which the person is considering
to purchase or lease, in | 20 | | order to evaluate the performance, reliability, or
| 21 | | condition of the vehicle.
The term "permitted user" also | 22 | | includes a person who, with the permission of
the new
| 23 | | vehicle dealer, drives a vehicle owned or held for sale or | 24 | | lease by the new
vehicle dealer
for loaner purposes while | 25 | | the user's vehicle is being repaired or evaluated.
| 26 | | As used in this paragraph 6, "test driving" occurs when |
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| 1 | | a permitted user
who,
with the permission of the new | 2 | | vehicle dealer or an employee of the new vehicle
dealer, | 3 | | drives a vehicle owned and held for sale or lease by a new | 4 | | vehicle
dealer that the person is considering to purchase | 5 | | or lease, in order to
evaluate the performance, | 6 | | reliability, or condition of the
vehicle.
| 7 | | As used in this paragraph 6, "loaner purposes" means | 8 | | when a person who,
with the permission of the new vehicle | 9 | | dealer, drives a vehicle owned or held
for sale or lease by | 10 | | the new vehicle dealer while the
user's vehicle is being | 11 | | repaired or evaluated.
| 12 | | 7. (A) An application for a new motor vehicle dealer's | 13 | | license shall be
accompanied by the following license fees:
| 14 | | (i) $1,000 for applicant's established place of | 15 | | business, and
$100 for each
additional place of | 16 | | business, if any, to which the application
pertains; | 17 | | but if the application is made after June 15 of any | 18 | | year, the license
fee shall be $500 for applicant's | 19 | | established place of business
plus
$50 for each | 20 | | additional place of business, if any, to which the
| 21 | | application pertains. License fees shall be returnable | 22 | | only in the event that
the application is denied by the | 23 | | Secretary of State.
All moneys received by the | 24 | | Secretary of State as license fees under this | 25 | | subparagraph (i) prior to applications for the 2004
| 26 | | licensing year
shall be
deposited into the Motor |
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| 1 | | Vehicle Review Board Fund and shall
be used to | 2 | | administer the Motor Vehicle Review Board under the | 3 | | Motor Vehicle
Franchise Act. Of the money received by | 4 | | the Secretary of State as license
fees under this | 5 | | subparagraph (i) for the 2004
licensing year and
| 6 | | thereafter, 10% shall
be deposited into the Motor | 7 | | Vehicle Review Board Fund and shall be used to
| 8 | | administer the Motor Vehicle Review Board under the | 9 | | Motor Vehicle Franchise Act
and 90% shall be deposited | 10 | | into the General Revenue Fund.
| 11 | | (ii) Except for dealers selling 25 or fewer | 12 | | automobiles or as provided in subsection (h) of Section | 13 | | 5-102.7 of this Code, an Annual Dealer Recovery Fund | 14 | | Fee in the amount of $500 for the applicant's | 15 | | established place of business, and $50 for each | 16 | | additional place of business, if any, to which the | 17 | | application pertains; but if the application is made | 18 | | after June 15 of any year, the fee shall be $250 for | 19 | | the applicant's established place of business plus $25 | 20 | | for each additional place of business, if any, to which | 21 | | the application pertains. For a license renewal | 22 | | application, the fee shall be based on the amount of | 23 | | automobiles sold in the past year according to the | 24 | | following formula: | 25 | | (1) $0 for dealers selling 25 or less | 26 | | automobiles; |
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| 1 | | (2) $150 for dealers selling more than 25 but | 2 | | less than 200 automobiles; | 3 | | (3) $300 for dealers selling 200 or more | 4 | | automobiles but less than 300 automobiles; and | 5 | | (4) $500 for dealers selling 300 or more | 6 | | automobiles. | 7 | | License fees shall be returnable only in the event | 8 | | that the application is denied by the Secretary of | 9 | | State. Moneys received under this subparagraph (ii) | 10 | | shall be deposited into the Dealer Recovery Trust Fund. | 11 | | (B) An application for a new vehicle dealer's license, | 12 | | other than for
a new motor vehicle dealer's license, shall | 13 | | be accompanied by the following
license fees:
| 14 | | (i) $1,000 for applicant's established place of | 15 | | business, and
$50 for each
additional place of | 16 | | business, if any, to which the application pertains; | 17 | | but if
the application is made after June 15 of any | 18 | | year, the license fee shall be
$500
for applicant's | 19 | | established place of business plus $25 for each
| 20 | | additional
place of business, if any, to which the | 21 | | application pertains. License fees
shall be returnable | 22 | | only in the event that the application is denied by the
| 23 | | Secretary of State. Of the money received by the | 24 | | Secretary of State as
license fees under this | 25 | | subparagraph (i) for the 2004 licensing year and | 26 | | thereafter,
95% shall be deposited into the General |
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| 1 | | Revenue Fund.
| 2 | | (ii) Except as provided in subsection (h) of | 3 | | Section 5-102.7 of this Code, an Annual Dealer Recovery | 4 | | Fund Fee in the amount of $500 for the applicant's | 5 | | established place of business, and $50 for each | 6 | | additional place of business, if any, to which the | 7 | | application pertains; but if the application is made | 8 | | after June 15 of any year, the fee shall be $250 for | 9 | | the applicant's established place of business plus $25 | 10 | | for each additional place of business, if any, to which | 11 | | the application pertains. License fees shall be | 12 | | returnable only in the event that the application is | 13 | | denied by the Secretary of State. Moneys received under | 14 | | this subparagraph (ii) shall be deposited into the | 15 | | Dealer Recovery Trust Fund. | 16 | | 8. A statement that the applicant's officers, | 17 | | directors,
shareholders having a 10% or greater ownership | 18 | | interest
therein, proprietor, a partner, member, officer, | 19 | | director, trustee, manager
or other principals in the | 20 | | business have not committed in the past 3
years any one | 21 | | violation as determined in any civil, criminal or
| 22 | | administrative proceedings of any one of the following | 23 | | Acts:
| 24 | | (A) The Anti-Theft Anti Theft Laws of the Illinois | 25 | | Vehicle Code;
| 26 | | (B) The Certificate of Title Laws of the Illinois |
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| 1 | | Vehicle Code;
| 2 | | (C) The Offenses against Registration and | 3 | | Certificates of Title
Laws of the Illinois Vehicle | 4 | | Code;
| 5 | | (D) The Dealers, Transporters, Wreckers and | 6 | | Rebuilders
Laws of the Illinois Vehicle Code;
| 7 | | (E) Section 21-2 of the Criminal Code of 1961 or | 8 | | the Criminal Code of 2012, Criminal Trespass to
| 9 | | Vehicles; or
| 10 | | (F) The Retailers' Occupation Tax Act.
| 11 | | 9. A statement that the applicant's officers, | 12 | | directors,
shareholders having a 10% or greater ownership | 13 | | interest
therein, proprietor, partner, member, officer, | 14 | | director, trustee, manager
or other principals in the | 15 | | business have not committed in any calendar year
3 or more | 16 | | violations, as determined in any civil, criminal or
| 17 | | administrative proceedings, of any one or more of the | 18 | | following Acts:
| 19 | | (A) The Consumer Finance Act;
| 20 | | (B) The Consumer Installment Loan Act;
| 21 | | (C) The Retail Installment Sales Act;
| 22 | | (D) The Motor Vehicle Retail Installment Sales | 23 | | Act;
| 24 | | (E) The Interest Act;
| 25 | | (F) The Illinois Wage Assignment Act;
| 26 | | (G) Part 8 of Article XII of the Code of Civil |
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| 1 | | Procedure; or
| 2 | | (H) The Consumer Fraud Act.
| 3 | | 9.5. A statement that, within 10 years of application, | 4 | | the applicant's officers, directors, shareholders having a | 5 | | 10% or greater ownership interest therein, proprietor, | 6 | | partner, member, officer, director, trustee, manager or | 7 | | other principals in the business have not been convicted in | 8 | | any calendar year of one or more violations, as determined | 9 | | in any civil, criminal or administrative proceedings, of a | 10 | | forcible felony under the Criminal Code of 1961 or the | 11 | | Criminal Code of 2012 or a similar out-of-state offense. | 12 | | For the purposes of this paragraph, "forcible felony" has | 13 | | the meaning as defined in Section 2-8 of the Criminal Code | 14 | | of 2012. | 15 | | 10. A bond or certificate of deposit in the amount of | 16 | | $20,000 for
each location at which the applicant intends to | 17 | | act as a new vehicle
dealer. The bond shall be for the term | 18 | | of the license, or its renewal, for
which application is | 19 | | made, and shall expire not sooner than
December 31 of the | 20 | | year for which the license was issued or renewed. The bond
| 21 | | shall run to the People of the State of Illinois, with | 22 | | surety by a bonding or
insurance company authorized to do | 23 | | business in this State. It shall be
conditioned upon the | 24 | | proper transmittal of all title and registration fees and
| 25 | | taxes (excluding taxes under the Retailers' Occupation Tax | 26 | | Act) accepted by the
applicant as a new vehicle dealer.
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| 1 | | 11. Such other information concerning the business of | 2 | | the applicant as
the Secretary of State may by rule or | 3 | | regulation prescribe.
| 4 | | 12. A statement that the applicant understands Chapter | 5 | | 1 One through
Chapter 5 Five of this Code.
| 6 | | (c) Any change which renders no longer accurate any | 7 | | information
contained in any application for a new vehicle | 8 | | dealer's license shall be
amended within 30 days after the | 9 | | occurrence of such change on such form
as the Secretary of | 10 | | State may prescribe by rule or regulation,
accompanied by an | 11 | | amendatory fee of $2.
| 12 | | (d) Anything in this Chapter 5 to the contrary | 13 | | notwithstanding no
person shall be licensed as a new vehicle | 14 | | dealer unless:
| 15 | | 1. He is authorized by contract in writing between | 16 | | himself and the
manufacturer or franchised distributor of | 17 | | such make of vehicle to so
sell the same in this State, and
| 18 | | 2. Such person shall maintain an established place of | 19 | | business as
defined in this Act.
| 20 | | (e) The Secretary of State shall, within a reasonable time | 21 | | after
receipt, examine an application submitted to him under | 22 | | this Section and
unless he makes a determination that the | 23 | | application submitted to him
does not conform with the | 24 | | requirements of this Section or that grounds
exist for a denial | 25 | | of the application, under Section 5-501 of this
Chapter, grant | 26 | | the applicant an original new vehicle dealer's license in
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| 1 | | writing for his established place of business and a | 2 | | supplemental license
in writing for each additional place of | 3 | | business in such form as he may
prescribe by rule or regulation | 4 | | which shall include the following:
| 5 | | 1. The name of the person licensed;
| 6 | | 2. If a corporation, the name and address of its | 7 | | officers or if a
sole proprietorship, a partnership, an | 8 | | unincorporated association or any
similar form of business | 9 | | organization, the name and address of the
proprietor or of | 10 | | each partner, member, officer, director, trustee or
| 11 | | manager;
| 12 | | 3. In the case of an original license, the established | 13 | | place of
business of the licensee;
| 14 | | 4. In the case of a supplemental license, the | 15 | | established place of
business of the licensee and the | 16 | | additional place of business to which such
supplemental | 17 | | license pertains;
| 18 | | 5. The make or makes of new vehicles which the licensee | 19 | | is licensed
to sell.
| 20 | | (f) The appropriate instrument evidencing the license or a | 21 | | certified
copy thereof, provided by the Secretary of State, | 22 | | shall be kept posted
conspicuously in the established place of | 23 | | business of the licensee and
in each additional place of | 24 | | business, if any, maintained by such
licensee.
| 25 | | (g) Except as provided in subsection (h) hereof, all new | 26 | | vehicle
dealer's licenses granted under this Section shall |
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| 1 | | expire by operation
of law on December 31 of the calendar year | 2 | | for which they are granted
unless sooner revoked or cancelled | 3 | | under the provisions of Section 5-501
of this Chapter.
| 4 | | (h) A new vehicle dealer's license may be renewed upon | 5 | | application
and payment of the fee required herein, and | 6 | | submission of proof of
coverage under an approved bond under | 7 | | the " Retailers' Occupation Tax
Act " or proof that applicant is | 8 | | not subject to such bonding
requirements, as in the case of an | 9 | | original license, but in case an
application for the renewal of | 10 | | an effective license is made during the
month of December, the | 11 | | effective license shall remain in force until the
application | 12 | | is granted or denied by the Secretary of State.
| 13 | | (i) All persons licensed as a new vehicle dealer are | 14 | | required to
furnish each purchaser of a motor vehicle:
| 15 | | 1. In the case of a new vehicle a manufacturer's | 16 | | statement of origin
and in the case of a used motor vehicle | 17 | | a certificate of title, in
either case properly assigned to | 18 | | the purchaser;
| 19 | | 2. A statement verified under oath that all identifying | 20 | | numbers on
the vehicle agree with those on the certificate | 21 | | of title or
manufacturer's statement of origin;
| 22 | | 3. A bill of sale properly executed on behalf of such | 23 | | person;
| 24 | | 4. A copy of the Uniform Invoice-transaction reporting | 25 | | return
referred to in Section 5-402 hereof;
| 26 | | 5. In the case of a rebuilt vehicle, a copy of the |
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| 1 | | Disclosure of Rebuilt
Vehicle Status; and
| 2 | | 6. In the case of a vehicle for which the warranty has | 3 | | been reinstated, a
copy of the warranty.
| 4 | | (j) Except at the time of sale or repossession of the | 5 | | vehicle, no person
licensed as a new vehicle dealer may issue | 6 | | any other person a newly created
key to a vehicle unless the | 7 | | new vehicle dealer makes a copy of the driver's
license or | 8 | | State identification card of the person requesting or obtaining | 9 | | the
newly created key. The new vehicle dealer must retain the | 10 | | copy for 30 days.
| 11 | | A new vehicle dealer who violates this subsection (j) is | 12 | | guilty of a
petty offense. Violation of this subsection (j) is | 13 | | not cause to suspend,
revoke,
cancel, or deny renewal of the | 14 | | new vehicle dealer's license.
| 15 | | This amendatory Act of 1983 shall be applicable to the 1984 | 16 | | registration
year and thereafter.
| 17 | | (Source: P.A. 97-480, eff. 10-1-11; 97-1150, eff. 1-25-13; | 18 | | 98-450, eff. 1-1-14; revised 12-10-14.)
| 19 | | (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
| 20 | | Sec. 5-102. Used vehicle dealers must be licensed.
| 21 | | (a) No person, other than a licensed new vehicle dealer, | 22 | | shall engage in
the business of selling or dealing in, on | 23 | | consignment or otherwise, 5 or
more used vehicles of any make | 24 | | during the year (except house trailers as
authorized by | 25 | | paragraph (j) of this Section and rebuilt salvage vehicles
sold |
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| 1 | | by their rebuilders to persons licensed under this Chapter), or | 2 | | act as
an intermediary, agent or broker for any licensed dealer | 3 | | or vehicle
purchaser (other than as a salesperson) or represent | 4 | | or advertise that he
is so engaged or intends to so engage in | 5 | | such business unless licensed to
do so by the Secretary of | 6 | | State under the provisions of this Section.
| 7 | | (b) An application for a used vehicle dealer's license | 8 | | shall be
filed with the Secretary of State, duly verified by | 9 | | oath, in such form
as the Secretary of State may by rule or | 10 | | regulation prescribe and shall
contain:
| 11 | | 1. The name and type of business organization | 12 | | established and additional
places of business, if any, in | 13 | | this State.
| 14 | | 2. If the applicant is a corporation, a list of its | 15 | | officers,
directors, and shareholders having a ten percent | 16 | | or greater ownership
interest in the corporation, setting | 17 | | forth the residence address of
each; if the applicant is a | 18 | | sole proprietorship, a partnership, an
unincorporated | 19 | | association, a trust, or any similar form of business
| 20 | | organization, the names and residence address of the | 21 | | proprietor or of
each partner, member, officer, director, | 22 | | trustee or manager.
| 23 | | 3. A statement that the applicant has been approved for | 24 | | registration
under the Retailers' Occupation Tax Act by the | 25 | | Department of Revenue. However,
this requirement does not | 26 | | apply to a dealer who is already licensed
hereunder with |
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| 1 | | the Secretary of State, and who is merely applying for a
| 2 | | renewal of his license. As evidence of this fact, the | 3 | | application shall be
accompanied by a certification from | 4 | | the Department of Revenue showing that
the Department has | 5 | | approved the applicant for registration under the
| 6 | | Retailers' Occupation Tax Act.
| 7 | | 4. A statement that the applicant has complied with the | 8 | | appropriate
liability insurance requirement. A Certificate | 9 | | of Insurance in a solvent
company authorized to do business | 10 | | in the State of Illinois shall be included
with each | 11 | | application covering each location at which he proposes to | 12 | | act
as a used vehicle dealer. The policy must provide | 13 | | liability coverage in
the minimum amounts of $100,000 for | 14 | | bodily injury to, or death of, any person,
$300,000 for | 15 | | bodily injury to, or death of, two or more persons in any | 16 | | one
accident, and $50,000 for damage to property. Such | 17 | | policy shall expire
not sooner than December 31 of the year | 18 | | for which the license was issued
or renewed. The expiration | 19 | | of the insurance policy shall not terminate
the liability | 20 | | under the policy arising during the period for which the | 21 | | policy
was filed. Trailer and mobile home dealers are | 22 | | exempt from this requirement.
| 23 | | If the permitted user has a liability insurance policy | 24 | | that provides
automobile
liability insurance coverage of | 25 | | at least $100,000 for bodily injury to or the
death of any
| 26 | | person, $300,000 for bodily injury to or the death of any 2 |
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| 1 | | or more persons in
any one
accident, and $50,000 for damage | 2 | | to property,
then the permitted user's insurer shall be the | 3 | | primary
insurer and the
dealer's insurer shall be the | 4 | | secondary insurer. If the permitted user does not
have a | 5 | | liability
insurance policy that provides automobile | 6 | | liability insurance coverage of at
least
$100,000 for | 7 | | bodily injury to or the death of any person, $300,000 for | 8 | | bodily
injury to or
the death of any 2 or more persons in | 9 | | any one accident, and $50,000 for damage
to
property, or | 10 | | does not have any insurance at all,
then the
dealer's
| 11 | | insurer shall be the primary insurer and the permitted | 12 | | user's insurer shall be
the secondary
insurer.
| 13 | | When a permitted user is "test driving" a used vehicle | 14 | | dealer's automobile,
the used vehicle dealer's insurance | 15 | | shall be primary and the permitted user's
insurance shall | 16 | | be secondary.
| 17 | | As used in this paragraph 4, a "permitted user" is a | 18 | | person who, with the
permission of the used vehicle dealer | 19 | | or an employee of the used vehicle
dealer, drives a vehicle | 20 | | owned and held for sale or lease by the used vehicle
dealer | 21 | | which the person is considering to purchase or lease, in | 22 | | order to
evaluate the performance, reliability, or | 23 | | condition of the vehicle.
The term "permitted user" also | 24 | | includes a person who, with the permission of
the used
| 25 | | vehicle dealer, drives a vehicle owned or held for sale or | 26 | | lease by the used
vehicle dealer
for loaner purposes while |
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| 1 | | the user's vehicle is being repaired or evaluated.
| 2 | | As used in this paragraph 4, "test driving" occurs when | 3 | | a permitted user
who,
with the permission of the used | 4 | | vehicle dealer or an employee of the used
vehicle
dealer, | 5 | | drives a vehicle owned and held for sale or lease by a used | 6 | | vehicle
dealer that the person is considering to purchase | 7 | | or lease, in order to
evaluate the performance, | 8 | | reliability, or condition of the
vehicle.
| 9 | | As used in this paragraph 4, "loaner purposes" means | 10 | | when a person who,
with the permission of the used vehicle | 11 | | dealer, drives a vehicle owned or held
for sale or lease by | 12 | | the used vehicle dealer while the
user's vehicle is being | 13 | | repaired or evaluated.
| 14 | | 5. An application for a used vehicle dealer's license | 15 | | shall be
accompanied by the following license fees:
| 16 | | (A) $1,000 for applicant's established place of | 17 | | business, and
$50 for
each additional place of | 18 | | business, if any, to which the application
pertains; | 19 | | however, if the application is made after June 15 of | 20 | | any
year, the license fee shall be $500 for applicant's | 21 | | established
place of
business plus $25 for each | 22 | | additional place of business, if any,
to
which the | 23 | | application pertains. License fees shall be returnable | 24 | | only in
the event that the application is denied by
the | 25 | | Secretary of State. Of the money received by the | 26 | | Secretary of State as
license fees under this |
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| 1 | | subparagraph (A) for the 2004 licensing year and | 2 | | thereafter, 95%
shall be deposited into the General | 3 | | Revenue Fund.
| 4 | | (B) Except for dealers selling 25 or fewer | 5 | | automobiles or as provided in subsection (h) of Section | 6 | | 5-102.7 of this Code, an Annual Dealer Recovery Fund | 7 | | Fee in the amount of $500 for the applicant's | 8 | | established place of business, and $50 for each | 9 | | additional place of business, if any, to which the | 10 | | application pertains; but if the application is made | 11 | | after June 15 of any year, the fee shall be $250 for | 12 | | the applicant's established place of business plus $25 | 13 | | for each additional place of business, if any, to which | 14 | | the application pertains. For a license renewal | 15 | | application, the fee shall be based on the amount of | 16 | | automobiles sold in the past year according to the | 17 | | following formula: | 18 | | (1) $0 for dealers selling 25 or less | 19 | | automobiles; | 20 | | (2) $150 for dealers selling more than 25 but | 21 | | less than 200 automobiles; | 22 | | (3) $300 for dealers selling 200 or more | 23 | | automobiles but less than 300 automobiles; and | 24 | | (4) $500 for dealers selling 300 or more | 25 | | automobiles. | 26 | | License fees shall be returnable only in the event |
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| 1 | | that the application is denied by the Secretary of | 2 | | State. Moneys received under this subparagraph (B) | 3 | | shall be deposited into the Dealer Recovery Trust Fund.
| 4 | | 6. A statement that the applicant's officers, | 5 | | directors, shareholders
having a 10% or greater ownership | 6 | | interest therein, proprietor, partner,
member, officer, | 7 | | director, trustee, manager or other principals in the
| 8 | | business have not committed in the past 3 years any one | 9 | | violation as
determined in any civil, criminal or | 10 | | administrative proceedings of any one
of the following | 11 | | Acts:
| 12 | | (A) The Anti-Theft Anti Theft Laws of the Illinois | 13 | | Vehicle Code;
| 14 | | (B) The Certificate of Title Laws of the Illinois | 15 | | Vehicle Code;
| 16 | | (C) The Offenses against Registration and | 17 | | Certificates of Title
Laws of the Illinois Vehicle | 18 | | Code;
| 19 | | (D) The Dealers, Transporters, Wreckers and | 20 | | Rebuilders Laws of the
Illinois Vehicle Code;
| 21 | | (E) Section 21-2 of the Illinois Criminal Code of | 22 | | 1961 or the Criminal Code of 2012, Criminal
Trespass to | 23 | | Vehicles; or
| 24 | | (F) The Retailers' Occupation Tax Act.
| 25 | | 7. A statement that the applicant's officers, | 26 | | directors,
shareholders having a 10% or greater ownership |
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| 1 | | interest therein,
proprietor, partner, member, officer, | 2 | | director, trustee, manager or
other principals in the | 3 | | business have not committed in any calendar year
3 or more | 4 | | violations, as determined in any civil or criminal or
| 5 | | administrative proceedings, of any one or more of the | 6 | | following Acts:
| 7 | | (A) The Consumer Finance Act;
| 8 | | (B) The Consumer Installment Loan Act;
| 9 | | (C) The Retail Installment Sales Act;
| 10 | | (D) The Motor Vehicle Retail Installment Sales | 11 | | Act;
| 12 | | (E) The Interest Act;
| 13 | | (F) The Illinois Wage Assignment Act;
| 14 | | (G) Part 8 of Article XII of the Code of Civil | 15 | | Procedure; or
| 16 | | (H) The Consumer Fraud Act.
| 17 | | 7.5. A statement that, within 10 years of application, | 18 | | the applicant's officers, directors, shareholders having a | 19 | | 10% or greater ownership interest therein, proprietor, | 20 | | partner, member, officer, director, trustee, manager or | 21 | | other principals in the business have not been convicted in | 22 | | any calendar year of one or more violations of a forcible | 23 | | felony under the Criminal Code of 1961 or the Criminal Code | 24 | | of 2012 or a similar out-of-state offense. For the purposes | 25 | | of this paragraph, "forcible felony" has the meaning as | 26 | | defined in Section 2-8 of the Criminal Code of 2012.
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| 1 | | 8. A bond or Certificate of Deposit in the amount of | 2 | | $20,000 for
each location at which the applicant intends to | 3 | | act as a used vehicle
dealer. The bond shall be for the | 4 | | term of the license, or its renewal, for
which application | 5 | | is made, and shall expire not sooner than December 31 of
| 6 | | the year for which the license was issued or renewed. The | 7 | | bond shall run
to the People of the State of Illinois, with | 8 | | surety by a bonding or
insurance company authorized to do | 9 | | business in this State. It shall be
conditioned upon the | 10 | | proper transmittal of all title and registration fees
and | 11 | | taxes (excluding taxes under the Retailers' Occupation Tax | 12 | | Act) accepted
by the applicant as a used vehicle dealer.
| 13 | | 9. Such other information concerning the business of | 14 | | the applicant as
the Secretary of State may by rule or | 15 | | regulation prescribe.
| 16 | | 10. A statement that the applicant understands Chapter | 17 | | 1 through
Chapter 5 of this Code.
| 18 | | 11. A copy of the certification from the prelicensing | 19 | | education
program. | 20 | | (c) Any change which renders no longer accurate any | 21 | | information
contained in any application for a used vehicle | 22 | | dealer's license shall
be amended within 30 days after the | 23 | | occurrence of each change on such
form as the Secretary of | 24 | | State may prescribe by rule or regulation,
accompanied by an | 25 | | amendatory fee of $2.
| 26 | | (d) Anything in this Chapter to the contrary |
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| 1 | | notwithstanding, no
person shall be licensed as a used vehicle | 2 | | dealer unless such person
maintains an established place of | 3 | | business as
defined in this Chapter.
| 4 | | (e) The Secretary of State shall, within a reasonable time | 5 | | after
receipt, examine an application submitted to him under | 6 | | this Section.
Unless the Secretary makes a determination that | 7 | | the application
submitted to him does not conform to this | 8 | | Section or that grounds exist
for a denial of the application | 9 | | under Section 5-501 of this Chapter, he
must grant the | 10 | | applicant an original used vehicle dealer's license in
writing | 11 | | for his established place of business and a supplemental | 12 | | license
in writing for each additional place of business in | 13 | | such form as he may
prescribe by rule or regulation which shall | 14 | | include the following:
| 15 | | 1. The name of the person licensed;
| 16 | | 2. If a corporation, the name and address of its | 17 | | officers or if a
sole proprietorship, a partnership, an | 18 | | unincorporated association or any
similar form of business | 19 | | organization, the name and address of the
proprietor or of | 20 | | each partner, member, officer, director, trustee or
| 21 | | manager;
| 22 | | 3. In case of an original license, the established | 23 | | place of business
of the licensee;
| 24 | | 4. In the case of a supplemental license, the | 25 | | established place of
business of the licensee and the | 26 | | additional place of business to which such
supplemental |
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| 1 | | license pertains.
| 2 | | (f) The appropriate instrument evidencing the license or a | 3 | | certified
copy thereof, provided by the Secretary of State | 4 | | shall be kept posted,
conspicuously, in the established place | 5 | | of business of the licensee and
in each additional place of | 6 | | business, if any, maintained by such
licensee.
| 7 | | (g) Except as provided in subsection (h) of this Section, | 8 | | all used
vehicle dealer's licenses granted under this Section | 9 | | expire by operation
of law on December 31 of the calendar year | 10 | | for which they are granted
unless sooner revoked or cancelled | 11 | | under Section 5-501 of this Chapter.
| 12 | | (h) A used vehicle dealer's license may be renewed upon | 13 | | application
and payment of the fee required herein, and | 14 | | submission of proof of
coverage by an approved bond under the | 15 | | "Retailers' Occupation Tax Act"
or proof that applicant is not | 16 | | subject to such bonding requirements, as
in the case of an | 17 | | original license, but in case an application for the
renewal of | 18 | | an effective license is made during the month of December,
the | 19 | | effective license shall remain in force until the application | 20 | | for
renewal is granted or denied by the Secretary of State.
| 21 | | (i) All persons licensed as a used vehicle dealer are | 22 | | required to
furnish each purchaser of a motor vehicle:
| 23 | | 1. A certificate of title properly assigned to the | 24 | | purchaser;
| 25 | | 2. A statement verified under oath that all identifying | 26 | | numbers on
the vehicle agree with those on the certificate |
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| 1 | | of title;
| 2 | | 3. A bill of sale properly executed on behalf of such | 3 | | person;
| 4 | | 4. A copy of the Uniform Invoice-transaction reporting | 5 | | return
referred to in Section 5-402 of this Chapter;
| 6 | | 5. In the case of a rebuilt vehicle, a copy of the | 7 | | Disclosure of Rebuilt
Vehicle Status; and
| 8 | | 6. In the case of a vehicle for which the warranty has | 9 | | been reinstated, a
copy of the warranty.
| 10 | | (j) A real estate broker holding a valid certificate of | 11 | | registration issued
pursuant to "The Real Estate Brokers and | 12 | | Salesmen License Act" may engage
in the business of selling or | 13 | | dealing in house trailers not his own without
being licensed as | 14 | | a used vehicle dealer under this Section; however such
broker | 15 | | shall maintain a record of the transaction including the | 16 | | following:
| 17 | | (1) the name and address of the buyer and seller,
| 18 | | (2) the date of sale,
| 19 | | (3) a description of the mobile home, including the | 20 | | vehicle identification
number, make, model, and year, and
| 21 | | (4) the Illinois certificate of title number.
| 22 | | The foregoing records shall be available for inspection by | 23 | | any officer
of the Secretary of State's Office at any | 24 | | reasonable hour.
| 25 | | (k) Except at the time of sale or repossession of the | 26 | | vehicle, no
person licensed as a used vehicle dealer may issue |
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| 1 | | any other person a newly
created key to a vehicle unless the | 2 | | used vehicle dealer makes a copy of the
driver's license or | 3 | | State identification card of the person requesting or
obtaining | 4 | | the newly created key. The used vehicle dealer must retain the
| 5 | | copy for 30 days.
| 6 | | A used vehicle dealer who violates this subsection (k) is | 7 | | guilty of a
petty offense. Violation of this subsection (k) is | 8 | | not cause to suspend,
revoke, cancel, or deny renewal of the | 9 | | used vehicle dealer's license. | 10 | | (l) Used vehicle dealers licensed under this Section shall | 11 | | provide the Secretary of State a register for the sale at | 12 | | auction of each salvage or junk certificate vehicle. Each | 13 | | register shall include the following information: | 14 | | 1. The year, make, model, style and color of the | 15 | | vehicle; | 16 | | 2. The vehicle's manufacturer's identification number | 17 | | or, if applicable, the Secretary of State or Illinois | 18 | | Department of State Police identification number; | 19 | | 3. The date of acquisition of the vehicle; | 20 | | 4. The name and address of the person from whom the | 21 | | vehicle was acquired; | 22 | | 5. The name and address of the person to whom any | 23 | | vehicle was disposed, the person's Illinois license number | 24 | | or if the person is an out-of-state salvage vehicle buyer, | 25 | | the license number from the state or jurisdiction where the | 26 | | buyer is licensed; and |
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| 1 | | 6. The purchase price of the vehicle. | 2 | | The register shall be submitted to the Secretary of State | 3 | | via written or electronic means within 10 calendar days from | 4 | | the date of the auction.
| 5 | | (Source: P.A. 97-480, eff. 10-1-11; 97-1150, eff. 1-25-13; | 6 | | 98-450, eff. 1-1-14; revised 12-10-14.)
| 7 | | Section 99. Effective date. This Act takes effect January | 8 | | 1, 2016.
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