Public Act 098-0424
HB2508 EnrolledLRB098 08562 JLS 38677 b

    AN ACT concerning business.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Motor Vehicle Franchise Act is amended by
changing Section 10.1 as follows:
    (815 ILCS 710/10.1)  (from Ch. 121 1/2, par. 760.1)
    Sec. 10.1. (a) As used in this Section, "motorcycle" means
every motor vehicle having a seat or saddle for the use of the
rider and designed to travel with 3 or less wheels in contact
with the ground, excluding farm, garden, and lawn equipment,
and including off-highway vehicles.
    (b) It shall be deemed a violation for a manufacturer, a
distributor, a wholesaler, a distributor branch or division, or
officer, agent or other representative thereof:
        (1) To require a motorcycle franchisee to participate
    in a retail financing plan or retail leasing plan or to
    participate in any retail consumer insurance plan.
        (2) To own, to operate or to control any motorcycle
    dealership in this State for a period longer than 2 years.
        (3) Whenever any motorcycle dealer enters into a
    franchise agreement, evidenced by a contract, with a
    wholesaler, manufacturer or distributor wherein the
    franchisee agrees to maintain an inventory and the contract
    is terminated by the wholesaler, manufacturer,
    distributor, or franchisee, then the franchisee may
    require the repurchase of the inventory as provided for in
    this Act. If the franchisee has any outstanding debts to
    the wholesaler, manufacturer or distributor then the
    repurchase amount may be credited to the franchisee's
    account. The franchise agreement shall either expressly or
    by operation of law have as part of its terms a security
    agreement whereby the wholesaler, manufacturer, or
    distributor agrees to and does grant a security interest to
    the motorcycle dealer in the repurchased inventory to
    secure payment of the repurchase amount to the dealer. The
    perfection, priority, and other matters relating to the
    security interest shall be governed by Article 9 of the
    Uniform Commercial Code. The provisions of this Section
    shall not be construed to affect in any way any security
    interest that any financial institution, person,
    wholesaler, manufacturer, or distributor may have in the
    inventory of the motorcycle dealer.
        (4) To require a motorcycle dealer to utilize
    manufacturer approved floor fixtures for the display of any
    product that is not a product of the manufacturer.
        (5) To require a motorcycle dealer to purchase lighting
    fixtures that are to be installed in the dealership only
    from the manufacturer's approved vendors.
        (6) To require a motorcycle dealer to relocate to a new
    or alternate facility.
    (c) The provisions of this Section 10.1 are applicable to
all new or existing motorcycle franchisees and franchisors and
are in addition to the other rights and remedies provided in
this Act, and, in the case of a conflict with other provisions
contained in this Act, with respect to motorcycle franchises,
this Section shall be controlling.
    (d) The filing of a timely protest by a motorcycle
franchise before the Motor Vehicle Review Board as prescribed
by Sections 12 and 29 of this Act, shall stay the effective
date of a proposed additional franchise or selling agreement,
or the effective date of a proposed motorcycle dealership
relocation, or the effective date of a cancellation,
termination or modification, or extend the expiration date of a
franchise or selling agreement by refusal to honor succession
to ownership or refusal to approve a sale or transfer pending a
final determination of the issues in the hearing.
(Source: P.A. 91-142, eff. 7-16-99.)