Full Text of HB2322 96th General Assembly
HB2322enr 96TH GENERAL ASSEMBLY
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| AN ACT concerning transportation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Vehicle Code is amended by changing | 5 |
| Section 5-102 and by adding Section 5-102.5 as follows:
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| (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
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| Sec. 5-102. Used vehicle dealers must be licensed.
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| (a) No person, other than a licensed new vehicle dealer, | 9 |
| shall engage in
the business of selling or dealing in, on | 10 |
| consignment or otherwise, 5 or
more used vehicles of any make | 11 |
| during the year (except house trailers as
authorized by | 12 |
| paragraph (j) of this Section and rebuilt salvage vehicles
sold | 13 |
| by their rebuilders to persons licensed under this Chapter), or | 14 |
| act as
an intermediary, agent or broker for any licensed dealer | 15 |
| or vehicle
purchaser (other than as a salesperson) or represent | 16 |
| or advertise that he
is so engaged or intends to so engage in | 17 |
| such business unless licensed to
do so by the Secretary of | 18 |
| State under the provisions of this Section.
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| (b) An application for a used vehicle dealer's license | 20 |
| shall be
filed with the Secretary of State, duly verified by | 21 |
| oath, in such form
as the Secretary of State may by rule or | 22 |
| regulation prescribe and shall
contain:
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| 1. The name and type of business organization |
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| established and additional
places of business, if any, in | 2 |
| this State.
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| 2. If the applicant is a corporation, a list of its | 4 |
| officers,
directors, and shareholders having a ten percent | 5 |
| or greater ownership
interest in the corporation, setting | 6 |
| forth the residence address of
each; if the applicant is a | 7 |
| sole proprietorship, a partnership, an
unincorporated | 8 |
| association, a trust, or any similar form of business
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| organization, the names and residence address of the | 10 |
| proprietor or of
each partner, member, officer, director, | 11 |
| trustee or manager.
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| 3. A statement that the applicant has been approved for | 13 |
| registration
under the Retailers' Occupation Tax Act by the | 14 |
| Department of Revenue. However,
this requirement does not | 15 |
| apply to a dealer who is already licensed
hereunder with | 16 |
| the Secretary of State, and who is merely applying for a
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| renewal of his license. As evidence of this fact, the | 18 |
| application shall be
accompanied by a certification from | 19 |
| the Department of Revenue showing that
the Department has | 20 |
| approved the applicant for registration under the
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| Retailers' Occupation Tax Act.
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| 4. A statement that the applicant has complied with the | 23 |
| appropriate
liability insurance requirement. A Certificate | 24 |
| of Insurance in a solvent
company authorized to do business | 25 |
| in the State of Illinois shall be included
with each | 26 |
| application covering each location at which he proposes to |
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| act
as a used vehicle dealer. The policy must provide | 2 |
| liability coverage in
the minimum amounts of $100,000 for | 3 |
| bodily injury to, or death of, any person,
$300,000 for | 4 |
| bodily injury to, or death of, two or more persons in any | 5 |
| one
accident, and $50,000 for damage to property. Such | 6 |
| policy shall expire
not sooner than December 31 of the year | 7 |
| for which the license was issued
or renewed. The expiration | 8 |
| of the insurance policy shall not terminate
the liability | 9 |
| under the policy arising during the period for which the | 10 |
| policy
was filed. Trailer and mobile home dealers are | 11 |
| exempt from this requirement.
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| If the permitted user has a liability insurance policy | 13 |
| that provides
automobile
liability insurance coverage of | 14 |
| at least $100,000 for bodily injury to or the
death of any
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| person, $300,000 for bodily injury to or the death of any 2 | 16 |
| or more persons in
any one
accident, and $50,000 for damage | 17 |
| to property,
then the permitted user's insurer shall be the | 18 |
| primary
insurer and the
dealer's insurer shall be the | 19 |
| secondary insurer. If the permitted user does not
have a | 20 |
| liability
insurance policy that provides automobile | 21 |
| liability insurance coverage of at
least
$100,000 for | 22 |
| bodily injury to or the death of any person, $300,000 for | 23 |
| bodily
injury to or
the death of any 2 or more persons in | 24 |
| any one accident, and $50,000 for damage
to
property, or | 25 |
| does not have any insurance at all,
then the
dealer's
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| insurer shall be the primary insurer and the permitted |
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| user's insurer shall be
the secondary
insurer.
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| When a permitted user is "test driving" a used vehicle | 3 |
| dealer's automobile,
the used vehicle dealer's insurance | 4 |
| shall be primary and the permitted user's
insurance shall | 5 |
| be secondary.
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| As used in this paragraph 4, a "permitted user" is a | 7 |
| person who, with the
permission of the used vehicle dealer | 8 |
| or an employee of the used vehicle
dealer, drives a vehicle | 9 |
| owned and held for sale or lease by the used vehicle
dealer | 10 |
| which the person is considering to purchase or lease, in | 11 |
| order to
evaluate the performance, reliability, or | 12 |
| condition of the vehicle.
The term "permitted user" also | 13 |
| includes a person who, with the permission of
the used
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| vehicle dealer, drives a vehicle owned or held for sale or | 15 |
| lease by the used
vehicle dealer
for loaner purposes while | 16 |
| the user's vehicle is being repaired or evaluated.
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| As used in this paragraph 4, "test driving" occurs when | 18 |
| a permitted user
who,
with the permission of the used | 19 |
| vehicle dealer or an employee of the used
vehicle
dealer, | 20 |
| drives a vehicle owned and held for sale or lease by a used | 21 |
| vehicle
dealer that the person is considering to purchase | 22 |
| or lease, in order to
evaluate the performance, | 23 |
| reliability, or condition of the
vehicle.
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| As used in this paragraph 4, "loaner purposes" means | 25 |
| when a person who,
with the permission of the used vehicle | 26 |
| dealer, drives a vehicle owned or held
for sale or lease by |
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| the used vehicle dealer while the
user's vehicle is being | 2 |
| repaired or evaluated.
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| 5. An application for a used vehicle dealer's license | 4 |
| shall be
accompanied by the following license fees:
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| $1,000 for applicant's established place of business, | 6 |
| and
$50 for
each additional place of business, if any, to | 7 |
| which the application
pertains; however, if the | 8 |
| application is made after June 15 of any
year, the license | 9 |
| fee shall be $500 for applicant's established
place of
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| business plus $25 for each additional place of business, if | 11 |
| any,
to
which the application pertains. License fees shall | 12 |
| be returnable only in
the event that the application is | 13 |
| denied by
the Secretary of State. Of the money received by | 14 |
| the Secretary of State as
license fees under this Section | 15 |
| for the 2004 licensing year and thereafter, 95%
shall be | 16 |
| deposited into the General Revenue Fund.
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| 6. A statement that the applicant's officers, | 18 |
| directors, shareholders
having a 10% or greater ownership | 19 |
| interest therein, proprietor, partner,
member, officer, | 20 |
| director, trustee, manager or other principals in the
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| business have not committed in the past 3 years any one | 22 |
| violation as
determined in any civil, criminal or | 23 |
| administrative proceedings of any one
of the following | 24 |
| Acts:
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| (A) The Anti Theft Laws of the Illinois Vehicle | 26 |
| Code;
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| (B) The Certificate of Title Laws of the Illinois | 2 |
| Vehicle Code;
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| (C) The Offenses against Registration and | 4 |
| Certificates of Title
Laws of the Illinois Vehicle | 5 |
| Code;
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| (D) The Dealers, Transporters, Wreckers and | 7 |
| Rebuilders Laws of the
Illinois Vehicle Code;
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| (E) Section 21-2 of the Illinois Criminal Code of | 9 |
| 1961, Criminal
Trespass to Vehicles; or
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| (F) The Retailers' Occupation Tax Act.
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| 7. 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 or criminal or
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| administrative proceedings, of any one or more of the | 18 |
| following Acts:
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| (A) The Consumer Finance Act;
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| (B) The Consumer Installment Loan Act;
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| (C) The Retail Installment Sales Act;
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| (D) The Motor Vehicle Retail Installment Sales | 23 |
| Act;
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| (E) The Interest Act;
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| (F) The Illinois Wage Assignment Act;
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| (G) Part 8 of Article XII of the Code of Civil |
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| Procedure; or
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| (H) The Consumer Fraud Act.
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| 8. A bond or Certificate of Deposit in the amount of | 4 |
| $20,000 for
each location at which the applicant intends to | 5 |
| act as a used vehicle
dealer. The bond shall be for the | 6 |
| term of the license, or its renewal, for
which application | 7 |
| is made, and shall expire not sooner than December 31 of
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| the year for which the license was issued or renewed. The | 9 |
| bond shall run
to the People of the State of Illinois, with | 10 |
| surety by a bonding or
insurance company authorized to do | 11 |
| business in this State. It shall be
conditioned upon the | 12 |
| proper transmittal of all title and registration fees
and | 13 |
| taxes (excluding taxes under the Retailers' Occupation Tax | 14 |
| Act) accepted
by the applicant as a used vehicle dealer.
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| 9. Such other information concerning the business of | 16 |
| the applicant as
the Secretary of State may by rule or | 17 |
| regulation prescribe.
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| 10. A statement that the applicant understands Chapter | 19 |
| 1 through
Chapter 5 of this Code.
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| 11. A copy of the certification from the prelicensing | 21 |
| education
program. | 22 |
| (c) Any change which renders no longer accurate any | 23 |
| information
contained in any application for a used vehicle | 24 |
| dealer's license shall
be amended within 30 days after the | 25 |
| occurrence of each change on such
form as the Secretary of | 26 |
| State may prescribe by rule or regulation,
accompanied by an |
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| amendatory fee of $2.
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| (d) Anything in this Chapter to the contrary | 3 |
| notwithstanding, no
person shall be licensed as a used vehicle | 4 |
| dealer unless such person
maintains an established place of | 5 |
| business as
defined in this Chapter.
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| (e) The Secretary of State shall, within a reasonable time | 7 |
| after
receipt, examine an application submitted to him under | 8 |
| this Section.
Unless the Secretary makes a determination that | 9 |
| the application
submitted to him does not conform to this | 10 |
| Section or that grounds exist
for a denial of the application | 11 |
| under Section 5-501 of this Chapter, he
must grant the | 12 |
| applicant an original used vehicle dealer's license in
writing | 13 |
| for his established place of business and a supplemental | 14 |
| license
in writing for each additional place of business in | 15 |
| such form as he may
prescribe by rule or regulation which shall | 16 |
| include the following:
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| 1. The name of the person licensed;
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| 2. If a corporation, the name and address of its | 19 |
| officers or if a
sole proprietorship, a partnership, an | 20 |
| unincorporated association or any
similar form of business | 21 |
| organization, the name and address of the
proprietor or of | 22 |
| each partner, member, officer, director, trustee or
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| manager;
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| 3. In case of an original license, the established | 25 |
| place of business
of the licensee;
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| 4. In the case of a supplemental license, the |
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| established place of
business of the licensee and the | 2 |
| additional place of business to which such
supplemental | 3 |
| license pertains.
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| (f) The appropriate instrument evidencing the license or a | 5 |
| certified
copy thereof, provided by the Secretary of State | 6 |
| shall be kept posted,
conspicuously, in the established place | 7 |
| of business of the licensee and
in each additional place of | 8 |
| business, if any, maintained by such
licensee.
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| (g) Except as provided in subsection (h) of this Section, | 10 |
| all used
vehicle dealer's licenses granted under this Section | 11 |
| expire by operation
of law on December 31 of the calendar year | 12 |
| for which they are granted
unless sooner revoked or cancelled | 13 |
| under Section 5-501 of this Chapter.
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| (h) A used vehicle dealer's license may be renewed upon | 15 |
| application
and payment of the fee required herein, and | 16 |
| submission of proof of
coverage by an approved bond under the | 17 |
| "Retailers' Occupation Tax Act"
or proof that applicant is not | 18 |
| subject to such bonding requirements, as
in the case of an | 19 |
| original license, but in case an application for the
renewal of | 20 |
| an effective license is made during the month of December,
the | 21 |
| effective license shall remain in force until the application | 22 |
| for
renewal is granted or denied by the Secretary of State.
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| (i) All persons licensed as a used vehicle dealer are | 24 |
| required to
furnish each purchaser of a motor vehicle:
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| 1. A certificate of title properly assigned to the | 26 |
| purchaser;
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| 2. A statement verified under oath that all identifying | 2 |
| numbers on
the vehicle agree with those on the certificate | 3 |
| of title;
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| 3. A bill of sale properly executed on behalf of such | 5 |
| person;
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| 4. A copy of the Uniform Invoice-transaction reporting | 7 |
| return
referred to in Section 5-402 of this Chapter;
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| 5. In the case of a rebuilt vehicle, a copy of the | 9 |
| Disclosure of Rebuilt
Vehicle Status; and
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| 6. In the case of a vehicle for which the warranty has | 11 |
| been reinstated, a
copy of the warranty.
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| (j) A real estate broker holding a valid certificate of | 13 |
| registration issued
pursuant to "The Real Estate Brokers and | 14 |
| Salesmen License Act" may engage
in the business of selling or | 15 |
| dealing in house trailers not his own without
being licensed as | 16 |
| a used vehicle dealer under this Section; however such
broker | 17 |
| shall maintain a record of the transaction including the | 18 |
| following:
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| (1) the name and address of the buyer and seller,
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| (2) the date of sale,
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| (3) a description of the mobile home, including the | 22 |
| vehicle identification
number, make, model, and year, and
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| (4) the Illinois certificate of title number.
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| The foregoing records shall be available for inspection by | 25 |
| any officer
of the Secretary of State's Office at any | 26 |
| reasonable hour.
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| (k) Except at the time of sale or repossession of the | 2 |
| vehicle, no
person licensed as a used vehicle dealer may issue | 3 |
| any other person a newly
created key to a vehicle unless the | 4 |
| used vehicle dealer makes a copy of the
driver's license or | 5 |
| State identification card of the person requesting or
obtaining | 6 |
| the newly created key. The used vehicle dealer must retain the
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| copy for 30 days.
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| A used vehicle dealer who violates this subsection (k) is | 9 |
| guilty of a
petty offense. Violation of this subsection (k) is | 10 |
| not cause to suspend,
revoke, cancel, or deny renewal of the | 11 |
| used vehicle dealer's license. | 12 |
| (l) Used vehicle dealers licensed under this Section shall | 13 |
| provide the Secretary of State a register for the sale at | 14 |
| auction of each salvage or junk certificate vehicle. Each | 15 |
| register shall include the following information: | 16 |
| 1. The year, make, model, style and color of the | 17 |
| vehicle; | 18 |
| 2. The vehicle's manufacturer's identification number | 19 |
| or, if applicable, the Secretary of State or Illinois | 20 |
| Department of State Police identification number; | 21 |
| 3. The date of acquisition of the vehicle; | 22 |
| 4. The name and address of the person from whom the | 23 |
| vehicle was acquired; | 24 |
| 5. The name and address of the person to whom any | 25 |
| vehicle was disposed, the person's Illinois license number | 26 |
| or if the person is an out-of-state salvage vehicle buyer, |
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| the license number from the state or jurisdiction where the | 2 |
| buyer is licensed; and | 3 |
| 6. The purchase price of the vehicle. | 4 |
| The register shall be submitted to the Secretary of State | 5 |
| via written or electronic means within 10 calendar days from | 6 |
| the date of the auction.
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| (Source: P.A. 95-783, eff. 1-1-09.)
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| (625 ILCS 5/5-102.5 new) | 9 |
| Sec. 5-102.5. Used vehicle dealer prelicensing education | 10 |
| program courses. | 11 |
| (a) An applicant for a license as a used vehicle
dealer | 12 |
| shall complete a minimum of 8 hours of prelicensing
education | 13 |
| program courses pursuant to this Section prior to
submitting an | 14 |
| application to the Secretary of State. | 15 |
| (b) To meet the requirements of this Section, at least one
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| individual who is associated with the used vehicle
dealer as an | 17 |
| owner, principal, corporate officer, director, or
member or | 18 |
| partner of a limited liability company or limited
liability | 19 |
| partnership shall complete the education program
courses. | 20 |
| (c) The education program courses shall be provided by | 21 |
| public or private entities with an expertise in the area as | 22 |
| approved by the Secretary of State. The Secretary of State must | 23 |
| approve course curricula and instruction, in consultation with | 24 |
| the Illinois Department of Transportation and any private | 25 |
| entity with expertise in the area in the Secretary of State's |
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| discretion. | 2 |
| (d) Each person who successfully completes an approved | 3 |
| prelicensing education program under this Section shall be | 4 |
| issued a certificate by the education program provider of the | 5 |
| course. The current certificate of completion, or a copy of the | 6 |
| certificate, shall be posted conspicuously in the principal | 7 |
| office of the licensee. | 8 |
| (e) The provisions of this Section apply to all used | 9 |
| vehicle dealers including, but not limited to, individuals,
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| corporations, and partnerships, except for the following: | 11 |
| (1) Motor vehicle rental companies having a national
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| franchise; | 13 |
| (2) National motor vehicle auction companies; | 14 |
| (3) Wholesale dealer-only auction companies; | 15 |
| (4) Used vehicle dealerships owned by a franchise motor | 16 |
| vehicle
dealer; and | 17 |
| (5) Banks, credit unions, and savings and loan
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| associations.
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| Section 99. Effective date. This Act takes effect August 1, | 20 |
| 2009.
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