625 ILCS 5/5-901

(625 ILCS 5/5-901)

Sec. 5-901. Regulation of manufactured home dealers.

(a) As used in this Article:

"Established place of business" means the place owned or leased and occupied by any person duly licensed or required to be licensed as a manufactured home dealer for the purpose of engaging in selling, buying, bartering, displaying, exchanging, or dealing in, on consignment or otherwise, manufactured homes and for such other ancillary purposes as may be permitted by the Secretary by rule.

"Manufactured home" means a factory-assembled structure built on a permanent chassis, transportable in one or more sections in the travel mode, incapable of self-propulsion, bears a label indicating the manufacturer's compliance with the United States Department of Housing and Urban Development standards, as applicable, and is designed for year-round occupancy as a single-family residence when connected to approved water, sewer, and electrical utilities.

"Manufactured home dealer" means: (1) an individual or entity that engages in the business of acquiring or disposing of new or used manufactured homes; (2) an individual or entity who advertises or otherwise holds the individual or the entity out as being engaged in the business of acquiring or selling new or used manufactured homes; or (3) an individual or entity who buys or sells more than 2 new or used manufactured homes within a 12-month period.

(b) No person shall engage in this State in the business of selling or dealing in, on consignment or otherwise, manufactured homes of any make, or act as an intermediary, agent, or broker for any manufactured home purchaser, other than as a salesperson, or to represent or advertise that he or she is so engaged, or intends to so engage, in the business, unless licensed to do so by the Secretary of State under this Section.

(c) An application for a manufactured home dealer's license shall be filed with the Secretary of State Vehicle Services Department and duly verified by oath, on such form as the Secretary of State may prescribe, and shall contain all of the following:

(1) The name and type of business organization of the applicant, and his or her established place of business in this State.

(2) If the applicant is a corporation, a list of its officers, directors, and shareholders having a 10% or greater ownership interest in the corporation. If the applicant is a sole proprietorship, a partnership, a limited liability company, an unincorporated association, a trust, or any similar form of business organization, the name and residence address of the proprietor, or the name and residence address of each partner, member, officer, director, trustee, or manager.

(3) A statement that the applicant has been approved for registration under the Retailers' Occupation Tax Act by the Department of Revenue, except that this requirement does not apply to a manufactured home dealer who is already licensed with the Secretary of State, and who is only applying for a renewal of his or her license. As evidence of this fact, the application shall be accompanied by a certification from the Department of Revenue showing that the Department has approved the applicant for registration under the Retailers' Occupation Tax Act.

(4) An application for a manufactured home dealer's license shall be accompanied by a $1,000 license fee for the applicant's established place of business. If the application is made after June 15 of any year, the license fee shall be $500 for the applicant's established place of business. License fees shall be returnable only if the application is denied by the Secretary of State.

Of the money received by the Secretary of State as license fees under this paragraph (4), 95% shall be deposited into the General Revenue Fund and 5% into the Motor Vehicle License Plate Fund.

(5) A statement that no officer, director, shareholder having a 10% or greater ownership interest, proprietor, partner, member, officer, director, trustee, manager, or other principal in the business of the applicant has committed in the past 3 years any violation, as determined in any civil, criminal, or administrative hearing proceeding, of any one of the following Acts:

(A) the Anti-Theft Laws of this Code;

(B) the Certificate of Title Laws of this Code;

(C) the Offenses against Registration and Certificates of Title Laws of this Code;

(D) the Dealers, Transporters, Wreckers, and Rebuilders Laws of this Code;

(E) Section 21-2 of the Criminal Code of 2012, criminal trespass to vehicles;

(F) the Retailers' Occupation Tax Act;

(G) the Consumer Installment Loan Act;

(H) the Retail Installment Sales Act;

(I) the Interest Act;

(J) the Illinois Wage Assignment Act;

(K) Part 8 of Article XII of the Code of Civil Procedure; or

(L) the Consumer Fraud and Deceptive Business Practices Act.

(6) A bond or certificate of deposit in the amount of $150,000 for each license holder applicant intending to act as a manufactured home dealer under this Section. The bond shall be for the term of the license for which application is made and shall expire not sooner than December 31st of the year for which the license was issued. The bond shall run to the People of the State of Illinois and to customers asserting financial claims against the dealer, with surety by a bonding or insurance company authorized to do business in this State. It shall be conditioned upon the proper transmittal of all title and registration fees and taxes (excluding taxes under the Retailers' Occupation Tax Act) accepted by the applicant as a manufactured home dealer, and the execution of all of the dealer's obligations to the customer, including financial duties related to the acceptance and disbursement of any funds paid to the dealer by the customer, and conveyance of possession or ownership documents of a manufactured home.

(7) Dealers in business for over 10 years may substitute a certificate of insurance in lieu of the bond or certificate of deposit upon renewing their license.

(8) Any other information concerning the business of the applicant as the Secretary of State may by rule prescribe.

(d) Any change that renders no longer accurate any information contained in any application for a license under this Section shall be amended within 30 days after the occurrence of the change on a form the Secretary of State may prescribe, by rule, accompanied by an amendatory fee of $25.

(e) The Secretary of State shall, within a reasonable time after receipt, examine an application submitted under this Section, and unless the Secretary makes a determination that the application submitted does not conform with the requirements of this Section or that grounds exist for a denial of the application under subsection (f), grant the applicant an initial manufactured home dealer's license in writing for the established place of business of the applicant in a form the Secretary may prescribe by rule, which shall include the following:

(1) the name of the person or entity licensed;

(2) if a corporation, the name and address of its officers; if a sole proprietorship, a partnership, an unincorporated association, or any similar form of business organization, the name and address of the proprietor, or the name and address of each partner, member, officer, director, trustee or manager; or if a limited liability company, the name and address of the general partner or partners, or managing member or members; and

(3) the established place of business of the licensee.

(f) A license issued under this Section may be denied, revoked, or suspended if the Secretary of State finds that the applicant, or the officer, director, shareholder having a 10% or greater ownership interest in the corporation, owner, partner, trustee, manager, employee or the licensee has:

(1) violated this Section;

(2) made any material misrepresentation to the Secretary of State in connection with an application for a license, title, or registration;

(3) committed a fraudulent act in connection with selling, bartering, exchanging, offering for sale, or otherwise dealing in manufactured homes;

(4) not maintained an established place of business as defined in this Section;

(5) failed to file or produce to the Secretary of State any application, report, document, or other pertinent books, records, documents, letters, contracts required to be filed or produced under this Section or any rule adopted by the Secretary of State pursuant to this Section;

(6) failed to pay any fees or taxes due under this Code, or has failed to transmit any fees or taxes received by him or her for transmittal by him or her to the Secretary of State or the State of Illinois;

(7) failed to transfer title to a manufactured home when legally required to do so; or

(8) violated any of the following:

(A) the Anti-Theft Laws of this Code;

(B) the Certificate of Title Laws of this Code;

(C) the Offenses against Registration and Certificates of Title Laws of this Code;

(D) the Dealers, Transporters, Wreckers, and Rebuilders Laws of this Code;

(E) Section 21-2 of the Criminal Code of 2012, criminal trespass to vehicles;

(F) the Retailers' Occupation Tax Act;

(G) the Consumer Installment Loan Act;

(H) the Retail Installment Sales Act;

(I) the Interest Act;

(J) the Illinois Wage Assignment Act;

(K) Part 8 of Article XII of the Code of Civil Procedure; or

(L) the Consumer Fraud and Deceptive Business Practices Act.

(g) In addition to other grounds specified in this Section, the Secretary of State, on complaint of the Department of Revenue, shall refuse the issuance or renewal of a license, or suspend or revoke such a license, for any of the following violations of the Retailers' Occupation Tax Act, the tax imposed on corporations under subsection (b) of Section 201 of the Illinois Income Tax Act, the Personal Property Tax Replacement Income Tax imposed under subsections (c) and (d) of Section 201 of the Illinois Income Tax Act, or the tax imposed under Section 704A of the Illinois Income Tax Act:

(1) failure to make a tax return;

(2) the filing of a fraudulent return;

(3) failure to pay all or part of any tax or penalty finally determined to be due;

(4) failure to comply with the bonding requirements of the Retailers' Occupation Tax Act.

(h) A license issued under this Section may be canceled by the Secretary of State prior to its expiration in any of the following situations:

(1) if a license is voluntarily surrendered by the licensed person;

(2) if the business enterprise is a sole proprietorship and the sole proprietor dies or is imprisoned for any period exceeding 30 days; or

(3) if the license was issued to the wrong person or corporation or contains an error on its face.

If any person whose license has been canceled wishes to apply for another license, whether during the same license year or any other year, that person shall be treated as a new applicant and the cancellation of the person's prior license shall not, in and of itself, be a bar to the issuance of a new license.

(i) A license issued under this Section may be canceled without a hearing if the Secretary of State is notified that the applicant, or any officer, director, shareholder having a 10% or greater ownership interest, owner, partner, trustee, manager, employee, or member of the applicant or the licensee has been convicted of any forcible felony or any felony involving the selling, bartering, exchanging, offering for sale, or otherwise dealing in ownership documents relating to any of the above actions.

(j) The appropriate instrument evidencing the license or a certified copy of the instrument, provided by the Secretary of State, shall be kept posted conspicuously in the established place of business of the licensee.

(k) All records related to the purchase, sale, or acceptance for sale on consignment of any manufactured home shall be maintained at the licensee's established place of business. These records shall be retained for a period of not less than 7 years, and shall be made available for inspection upon the request of a Secretary of State auditor or an investigator with the Secretary of State Department of Police.

(l) Except as provided in subsection (i), all licenses granted under this Section shall expire by operation of law on December 31st of the calendar year for which the licenses were granted, unless sooner revoked or canceled under subsection (f).

(m) Each person licensed as a manufactured home dealer is required to furnish each purchaser of a manufactured home:

(1) in the case of a new manufactured home, a manufacturer's statement of origin, and in the case of a previously owned manufactured home, a certificate of title, in either case properly assigned to the purchaser;

(2) a statement verified under oath that all identifying numbers on the vehicle match the identifying numbers on the certificate of title or manufacturer's statement of origin;

(3) a bill of sale properly executed on behalf of the purchaser; and

(4) for a new manufactured home, a warranty, and in the case of a manufactured home for which the warranty has been reinstated, a copy of the warranty; if no warranty is provided, a disclosure or statement that the manufactured home is being sold "AS IS".

(n) This Section does not apply to a seller who privately owns his or her manufactured home as his or her main residence and is selling the manufactured home to another individual or to a licensee so long as that individual does not sell more than 2 manufactured homes in one 12-month period.

(o) This Section does not apply to any person licensed under the Real Estate License Act of 2000.

(p) The Secretary of State may adopt any rules necessary to implement this Section.

(q) Any individual or entity licensed as a manufactured home dealer or a community-based manufactured home dealer on the effective date of this Section shall be entitled to act as a manufactured home dealer under this Section for the duration of any license in effect on the effective date of this amendatory Act of the 102nd General Assembly, and shall be eligible to be issued a manufactured home dealer's license under this Section upon the expiration of any such license.

(Source: P.A. 102-941, eff. 7-1-22.)