Public Act 096-0678
 		





HB2322 Enrolled
LRB096 09106 AJT 19249 b






    AN ACT concerning transportation.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:

 
    Section 5. The Illinois Vehicle Code is amended  by changing 
Section 5-102 and  by adding Section 5-102.5 as follows:
 



    (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)


    Sec. 5-102. Used vehicle dealers must be licensed. 

    (a) No person, other than a licensed new vehicle dealer, 
shall engage in
the business of selling or dealing in, on 
consignment or otherwise, 5 or
more used vehicles of any make 
during the year (except house trailers as
authorized by 
paragraph (j) of this Section and rebuilt salvage vehicles
sold 
by their rebuilders to persons licensed under this Chapter), or 
act as
an intermediary, agent or broker for any licensed dealer 
or vehicle
purchaser (other than as a salesperson) or represent 
or advertise that he
is so engaged or intends to so engage in 
such business unless licensed to
do so by the Secretary of 
State under the provisions of this Section.

    (b) An application for a used vehicle dealer's license 
shall be
filed with the Secretary of State, duly verified by 
oath, in such form
as the Secretary of State may by rule or 
regulation prescribe and shall
contain:


        1. The name and type of business organization 
    established and additional
places of business, if any, in 
    this State.


        2. If the applicant is a corporation, a list of its 
    officers,
directors, and shareholders having a ten percent 
    or greater ownership
interest in the corporation, setting 
    forth the residence address of
each; if the applicant is a 
    sole proprietorship, a partnership, an
unincorporated 
    association, a trust, or any similar form of business

    organization, the names and residence address of the 
    proprietor or 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. However,
this requirement does not 
    apply to a dealer who is already licensed
hereunder with 
    the Secretary of State, and who is merely applying for a

    renewal of his 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. A statement that the applicant has complied with the 
    appropriate
liability insurance requirement.  A Certificate 
    of Insurance in a solvent
company authorized to do business 
    in the State of Illinois shall be included
with each 
    application covering each location at which he proposes to 
    act
as a used vehicle dealer.  The policy must provide 
    liability coverage in
the minimum amounts of $100,000 for 
    bodily injury to, or death of, any person,
$300,000 for 
    bodily injury to, or death of, two or more persons in any 
    one
accident, and $50,000 for damage to property.  Such 
    policy shall expire
not sooner than December 31 of the year 
    for which the license was issued
or renewed.  The expiration 
    of the insurance policy shall not terminate
the liability 
    under the policy arising during the period for which the 
    policy
was filed.  Trailer and mobile home dealers are 
    exempt from this requirement.


        If the permitted user has a liability insurance policy 
    that provides
automobile
liability insurance coverage of 
    at least $100,000 for bodily injury to or the
death of any

    person, $300,000 for bodily injury to or the death of any 2 
    or more persons in
any one
accident, and $50,000 for damage 
    to property,
then the permitted user's insurer shall be the 
    primary
insurer and the
dealer's insurer shall be the 
    secondary insurer. If the permitted user does not
have a 
    liability
insurance policy that provides automobile 
    liability insurance coverage of at
least
$100,000 for 
    bodily injury to or the death of any person, $300,000 for 
    bodily
injury to or
the death of any 2 or more persons in 
    any one accident, and $50,000 for damage
to
property, or 
    does not have any insurance at all,
then the
dealer's

    insurer shall be the primary insurer and the permitted 
    user's insurer shall be
the secondary
insurer.


        When a permitted user is "test driving" a used vehicle 
    dealer's automobile,
the used vehicle dealer's insurance 
    shall be primary and the permitted user's
insurance shall 
    be secondary.


        As used in this paragraph 4, a "permitted user" is a 
    person who, with the
permission of the used vehicle dealer 
    or an employee of the used vehicle
dealer, drives a vehicle 
    owned and held for sale or lease by the used vehicle
dealer 
    which the person is considering to purchase or lease, in 
    order to
evaluate the performance, reliability, or 
    condition of the vehicle.
The term "permitted user" also 
    includes a person who, with the permission of
the used

    vehicle dealer, drives a vehicle owned or held for sale or 
    lease by the used
vehicle dealer
for loaner purposes while 
    the user's vehicle is being repaired or evaluated.


        As used in this paragraph 4, "test driving" occurs when 
    a permitted user
who,
with the permission of the used 
    vehicle dealer or an employee of the used
vehicle
dealer, 
    drives a vehicle owned and held for sale or lease by a used 
    vehicle
dealer that the person is considering to purchase 
    or lease, in order to
evaluate the performance, 
    reliability, or condition of the
vehicle.


        As used in this paragraph 4, "loaner purposes" means 
    when a person who,
with the permission of the used vehicle 
    dealer, drives a vehicle owned or held
for sale or lease by 
    the used vehicle dealer while the
user's vehicle is being 
    repaired or evaluated.


        5. An application for a used vehicle dealer's license 
    shall be
accompanied by the following license fees:


        $1,000 for applicant's established place of business, 
    and
$50 for
each additional place of business, if any, to 
    which the application
pertains; however, if the 
    application is made after June 15 of any
year, the license 
    fee shall be $500 for applicant's established
place of

    business plus $25 for each additional place of business, if 
    any,
to
which the application pertains.  License fees shall 
    be returnable only in
the event that the application is 
    denied by
the Secretary of State.  Of the money received by 
    the Secretary of State as
license fees under this Section 
    for the 2004 licensing year and thereafter, 95%
shall be 
    deposited into the General Revenue Fund.


        6. A statement that the applicant's officers, 
    directors, shareholders
having a 10% or greater ownership 
    interest therein, proprietor, partner,
member, officer, 
    director, trustee, manager or other principals in the

    business have not committed in the past 3 years any one 
    violation as
determined in any civil, criminal or 
    administrative proceedings of any one
of the following 
    Acts:


            (A) The Anti Theft Laws of the Illinois Vehicle 
        Code;


            (B) The Certificate of Title Laws of the Illinois 
        Vehicle Code;


            (C) The Offenses against Registration and 
        Certificates of Title
Laws of the Illinois Vehicle 
        Code;


            (D) The Dealers, Transporters, Wreckers and 
        Rebuilders Laws of the
Illinois Vehicle Code;


            (E) Section 21-2 of the Illinois Criminal Code of 
        1961, Criminal
Trespass to Vehicles; or


            (F) The Retailers' Occupation Tax Act.


        7. A statement that the applicant's officers, 
    directors,
shareholders having a 10% or greater ownership 
    interest therein,
proprietor, partner, member, officer, 
    director, trustee, manager or
other principals in the 
    business have not committed in any calendar year
3 or more 
    violations, as determined in any civil or criminal or

    administrative proceedings, of any one or more of the 
    following Acts:


            (A) The Consumer Finance Act;


            (B) The Consumer Installment Loan Act;


            (C) The Retail Installment Sales Act;


            (D) The Motor Vehicle Retail Installment Sales 
        Act;


            (E) The Interest Act;


            (F) The Illinois Wage Assignment Act;


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


            (H) The Consumer Fraud Act.


        8. A bond or Certificate of Deposit in the amount of 
    $20,000 for
each location at which the applicant intends to 
    act as a used vehicle
dealer.  The bond shall be for the 
    term of the license, or its renewal, for
which application 
    is made, and shall expire not sooner than December 31 of

    the year for which the license was issued or renewed.  The 
    bond shall run
to the People of the State of Illinois, 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 used vehicle dealer.


        9. Such other information concerning the business of 
    the applicant as
the Secretary of State may by rule or 
    regulation prescribe.


        10. A statement that the applicant understands Chapter 
    1 through
Chapter 5 of this Code.

        11. A copy of the certification from the prelicensing 
    education
   program. 
    (c) Any change which renders no longer accurate any 
information
contained in any application for a used vehicle 
dealer's license shall
be amended within 30 days after the 
occurrence of each change on such
form as the Secretary of 
State may prescribe by rule or regulation,
accompanied by an 
amendatory fee of $2.

    (d) Anything in this Chapter to the contrary 
notwithstanding, no
person shall be licensed as a used vehicle 
dealer unless such person
maintains an established place of 
business as
defined in this Chapter.

    (e) The Secretary of State shall, within a reasonable time 
after
receipt, examine an application submitted to him  under 
this Section.
Unless the Secretary makes a determination that 
the application
submitted to him  does not conform to this 
Section or that grounds exist
for a denial of the application 
under Section 5-501 of this Chapter, he
 must grant the 
applicant an original used vehicle dealer's license in
writing 
for his established place of business and a supplemental 
license
in writing for each additional place of business in 
such form as he may
prescribe by rule or regulation which shall 
include the following:


        1. The name of the person licensed;


        2. If a corporation, the name and address of its 
    officers or if a
sole proprietorship, a partnership, an 
    unincorporated association or any
similar form of business 
    organization, the name and address of the
proprietor or of 
    each partner, member, officer, director, trustee or

    manager;


        3. In case of an original license, the established 
    place of business
of the licensee;


        4. In the case of a supplemental license, the 
    established place of
business of the licensee and the 
    additional place of business to which such
supplemental 
    license pertains.

    (f) The appropriate instrument evidencing the license or a 
certified
copy thereof, provided by the Secretary of State 
shall be kept posted,
conspicuously, in the established place 
of business of the licensee and
in each additional place of 
business, if any, maintained by such
licensee.

    (g) Except as provided in subsection (h) of this Section, 
all used
vehicle dealer's licenses granted under this Section 
expire by operation
of law on December 31 of the calendar year 
for which they are granted
unless sooner revoked or cancelled 
under Section 5-501 of this Chapter.

    (h) A used vehicle dealer's license may be renewed upon 
application
and payment of the fee required herein, and 
submission of proof of
coverage by an approved bond under the 
"Retailers' Occupation Tax Act"
or proof that applicant is not 
subject to such bonding requirements, as
in the case of an 
original license, but in case an application for the
renewal of 
an effective license is made during the month of December,
the 
effective license shall remain in force until the application 
for
renewal is granted or denied by the Secretary of State.

    (i) All persons licensed as a used vehicle dealer are 
required to
furnish each purchaser of a motor vehicle:


        1. A certificate of title properly assigned to the 
    purchaser;


        2. A statement verified under oath that all identifying 
    numbers on
the vehicle agree with those on the certificate 
    of title;


        3. A bill of sale properly executed on behalf of such 
    person;


        4. A copy of the Uniform Invoice-transaction reporting 
    return
referred to in Section 5-402 of this Chapter;


        5. In the case of a rebuilt vehicle, a copy of the 
    Disclosure of Rebuilt
Vehicle Status; and


        6. In the case of a vehicle for which the warranty has 
    been reinstated, a
copy of the warranty.

    (j) A real estate broker holding a valid certificate of 
registration issued
pursuant to "The Real Estate Brokers and 
Salesmen License Act" may engage
in the business of selling or 
dealing in house trailers not his own without
being licensed as 
a used vehicle dealer under this Section; however such
broker 
shall maintain a record of the transaction including the 
following:


        (1) the name and address of the buyer and seller,


        (2) the date of sale,


        (3) a description of the mobile home, including the 
    vehicle identification
number, make, model, and year, and


        (4) the Illinois certificate of title number.

    The foregoing records shall be available for inspection by 
any officer
of the Secretary of State's Office at any 
reasonable hour.

    (k) Except at the time of sale or repossession of the 
vehicle, no
person licensed as a used vehicle dealer may issue 
any other person a newly
created key to a vehicle unless the 
used vehicle dealer makes a copy of the
driver's license or 
State identification card of the person requesting or
obtaining 
the newly created key. The used vehicle dealer must retain the

copy for 30 days.

    A used vehicle dealer who violates this subsection (k) is 
guilty of a
petty offense. Violation of this subsection (k) is 
not cause to suspend,
revoke, cancel, or deny renewal of the 
used vehicle dealer's license.
    (l)   Used vehicle dealers licensed under this Section shall 
provide the Secretary of State a register for the sale at 
auction of each salvage or junk certificate vehicle.  Each 
register shall include  the following information:
        1. The year, make, model, style and color of the 
    vehicle;
        2. The vehicle's manufacturer's identification number 
    or, if applicable, the Secretary of State or Illinois 
    Department of State Police identification number;
        3. The date of acquisition of the vehicle;
        4. The name and address of the person from whom the 
    vehicle was acquired;
        5. The name and address of the person to whom any 
    vehicle was disposed, the person's Illinois license number 
    or if the person is an out-of-state salvage vehicle buyer, 
    the license number from the state or jurisdiction where the 
    buyer is licensed; and
        6. The purchase price of the vehicle.
    The register shall be submitted to the Secretary of State 
via written or electronic means within 10 calendar days from 
the date of the auction. 

(Source: P.A. 95-783, eff. 1-1-09.)

 
    (625 ILCS 5/5-102.5  new)
    Sec. 5-102.5. Used vehicle dealer prelicensing education 
program courses.
    (a) An applicant for a license as a used vehicle
  dealer 
shall complete a minimum of 8 hours of prelicensing
  education 
program courses pursuant to this Section prior to
  submitting an 
application to the Secretary of State.
    (b) To meet the requirements of this Section, at least one
  
individual who is associated with the used vehicle
  dealer as an 
owner, principal, corporate officer, director, or
  member or 
partner of a limited liability company or limited
  liability 
partnership shall complete the education program
  courses.
    (c) The education program courses shall be provided by 
public or private entities with an expertise in the area as 
approved by the Secretary of State. The Secretary of State must 
approve course curricula and instruction, in consultation with 
the Illinois Department of Transportation and any private 
entity with expertise in the area in the Secretary of State's 
discretion.
    (d) Each person who successfully completes an approved 
prelicensing education program under this Section shall be 
issued a certificate by the education program provider of the 
course. The current certificate of completion, or a copy of the 
certificate, shall be posted conspicuously in the principal 
office of the licensee.
    (e) The provisions of this Section apply to all used 
vehicle dealers including, but not limited to, individuals,
   
corporations, and partnerships, except for the following:
        (1)  Motor vehicle rental companies having a national
   
    franchise;
        (2) National motor vehicle auction companies;
        (3) Wholesale dealer-only auction companies;
        (4) Used vehicle dealerships owned by a franchise motor 
    vehicle
   dealer; and
        (5) Banks, credit unions, and savings and loan
   
    associations.
 

    Section 99. Effective date. This Act takes effect August 1, 
2009.





Effective Date:  8/25/2009