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Public Act 92-0069
SB547 Enrolled LRB9202484DHmb
AN ACT concerning vehicles.
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 Sections 2-124, 3-402.2, and 3-824 as follows:
(625 ILCS 5/2-124) (from Ch. 95 1/2, par. 2-124)
Sec. 2-124. Audits, interest and penalties.
(a) Audits. The Secretary of State or employees and
agents designated by him, may audit the books, records, tax
returns, reports, and any and all other pertinent records or
documents of any person licensed or registered, or required
to be licensed or registered, under any provisions of this
Act, for the purpose of determining whether such person has
not paid any fees or taxes required to be paid to the
Secretary of State and due to the State of Illinois. For
purposes of this Section, "person" means an individual,
corporation, or partnership, or an officer or an employee of
any corporation, including a dissolved corporation, or a
member or an employee of any partnership, who as an officer,
employee, or member under a duty to perform the act in
respect to which the violation occurs.
(b) Joint Audits. The Secretary of State may enter into
reciprocal audit agreements with officers, agents or agencies
of another State or States, for joint audits of any person
subject to audit under this Act.
(c) Special Audits. If the Secretary of State is not
satisfied with the books, records and documents made
available for an audit, or if the Secretary of State is
unable to determine therefrom whether any fees or taxes are
due to the State of Illinois, or if there is cause to believe
that the person audited has declined or refused to supply the
books, records and documents necessary to determine whether a
deficiency exists, the Secretary of State may either seek a
court order for production of any and all books, records and
documents he deems relevant and material, or, in his
discretion, the Secretary of State may instead give written
notice to such person requiring him to produce any and all
books, records and documents necessary to properly audit and
determine whether any fees or taxes are due to the State of
Illinois. If such person fails, refuses or declines to comply
with either the court order or written notice within the time
specified, the Secretary of State shall then order a special
audit at the expense of the person affected. Upon completion
of the special audit, the Secretary of State shall determine
if any fees or taxes required to be paid under this Act have
not been paid, and make an assessment of any deficiency based
upon the books, records and documents available to him, and
in an assessment, he may rely upon records of other persons
having an operation similar to that of the person audited
specially. A person audited specially and subject to a court
order and in default thereof, shall in addition, be subject
to any penalty or punishment imposed by the court entering
the order.
(d) Deficiency; Audit Costs. When a deficiency is found
and any fees or taxes required to be paid under this Act have
not been paid to the State of Illinois, the Secretary of
State may impose an audit fee of $50 per day, or $25 per
half-day, per auditor, plus in the case of out-of-state
travel, transportation expenses incurred by the auditor or
auditors. Where more than one person is audited on the same
out-of-state trip, the additional transportation expenses may
be apportioned. The actual costs of a special audit shall be
imposed upon the person audited.
(e) Interest. When a deficiency is found and any fees or
taxes required to be paid under this Act have not been paid
to the State of Illinois, the amount of the deficiency, if
greater than $100 for all registration years examined, shall
also bear interest at the rate of 1/2 of 1% per month or
fraction thereof, from the date when the fee or tax due
should have been paid under the provisions of this Act,
subject to a maximum of 6% per annum.
(f) Willful Negligence. When a deficiency is determined
by the Secretary to be caused by the willful neglect or
negligence of the person audited, an additional 10% penalty,
that is 10% of the amount of the deficiency or assessment,
shall be imposed, and the 10% penalty shall bear interest at
the rate of 1/2 of 1% on and after the 30th day after the
penalty is imposed until paid in full.
(g) Fraud or Evasion. When a deficiency is determined by
the Secretary to be caused by fraud or willful evasion of the
provisions of this Act, an additional penalty, that is 20% of
the amount of the deficiency or assessment, shall be imposed,
and the 20% penalty shall bear interest at the rate of 1/2 of
1% on and after the 30th day after the penalty is imposed
until paid in full.
(h) Notice. The Secretary of State shall give written
notice to any person audited, of the amount of any deficiency
found or assessment made, of the costs of an audit or special
audit, and of the penalty imposed, and payment shall be made
within 30 days of the date of the notice unless such person
petitions for a hearing.
However, except in the case of fraud or willful evasion,
or the inaccessibility of books and records for audit or with
the express consent of the person audited, no notice of a
deficiency or assessment shall be issued by the Secretary for
more than 3 registration years. This limitation shall
commence on any January 1 as to calendar year registrations
and on any July 1 as to fiscal year registrations. This
limitation shall not apply for any period during which the
person affected has declined or refuses to make his books and
records available for audit, nor during any period of time in
which an Order of any Court has the effect of enjoining or
restraining the Secretary from making an audit or issuing a
notice. Notwithstanding, each person licensed under the
International Registration Plan and audited by this State or
any member jurisdiction shall follow the assessment and
refund procedures as adopted and amended by the International
Registration Plan members. The Secretary of State shall have
the final decision as to which registrants may be subject to
the netting of audit fees as outlined in the International
Registration Plan. Persons audited may be subject to a
review process to determine the final outcome of the audit
finding. This process shall follow the adopted procedure as
outlined in the International Registration Plan. All
decisions by the IRP designated tribunal shall be binding.
(i) Every person subject to licensing or registration
and audit under the provisions of this Chapter shall retain
all pertinent licensing and registration documents, books,
records, tax returns, reports and all supporting records and
documents for a period of 4 years.
(j) Hearings. Any person receiving written notice of a
deficiency or assessment may, within 30 days after the date
of the notice, petition for a hearing before the Secretary of
State or his duly appointed hearing officer to contest the
audit in whole or in part, and the petitioner shall
simultaneously file a certified check or money order, or
certificate of deposit, or a surety bond approved by the
Secretary in the amount of the deficiency or assessment.
Hearings shall be held pursuant to the provisions of Section
2-118 of this Act.
(k) Judgments. The Secretary of State may enforce any
notice of deficiency or assessment pursuant to the provisions
of Section 3-831 of this Act.
(Source: P.A. 89-570, eff. 7-26-96.)
(625 ILCS 5/3-402.2) (from Ch. 95 1/2, par. 3-402.2)
Sec. 3-402.2. Audits. In addition to audit authority
set forth in Section 2-124 of this Act, the Secretary of
State, when this state is the base jurisdiction, may audit
such owners displaying a base plate of this state as to
authenticity of mileage figures and registrations and at such
time and frequency as determined by the Secretary of State.
Audits may be made by officials of other jurisdictions which
are members of an International Registration Plan (IRP) of
which this state is also a member.
Upon completion of any such audit, the Secretary of State
shall notify all jurisdictions in which such owner was
proportionally registered on the accuracy of the records of
such owner. Should such owner have underpaid or overpaid
under paid any jurisdiction in which his vehicles were
proportionally registered, such information shall be
furnished to the jurisdiction for processing in accordance
with the procedures as set forth under the International
Registration Plan collection.
(Source: P.A. 87-206.)
(625 ILCS 5/3-824) (from Ch. 95 1/2, par. 3-824)
Sec. 3-824. When fees returnable.
(a) Whenever any application to the Secretary of State
is accompanied by any fee as required by law and such
application is refused or rejected, said fee shall be
returned to said applicant.
(b) Whenever the Secretary of State collects any fee not
required to be paid under the provisions of this Act, the
same shall be refunded to the person paying the same upon
application therefor made within 6 months after the date of
such payment, except as follows: (1) whenever a refund is
determined to be due and owing as a result of an audit, by
this State or any other state or province, in accordance with
Section 2-124 of this Code, of a prorate or apportion license
fee payment pursuant to any reciprocal compact or agreement
between this State and any other state or province, and the
Secretary for any reason fails to promptly make such refund,
the licensee shall have one year from the date of the
notification of the audit result to file, with the Secretary,
an application for refund found to be due and owing as a
result of such audit; and (2) whenever a person eligible for
a reduced registration fee pursuant to Section 3-806.3 of
this Code has paid in excess of the reduced registration fee
owed, the refund applicant shall have 2 years from the date
of overpayment to apply with the Secretary for a refund of
that part of payment made in excess of the established
reduced registration fee.
(c) Whenever a person dies after making application for
registration, application for a refund of the registration
fees and taxes may be made if the vehicle is then sold or
disposed of so that the registration plates, registration
sticker and card are never used. The Secretary of State
shall refund the registration fees and taxes upon receipt
within 6 months after the application for registration of an
application for refund accompanied with the unused
registration plates or registration sticker and card and
proof of both the death of the applicant and the sale or
disposition of the vehicle.
(d) Any application for refund received after the times
specified in this Section shall be denied and the applicant
in order to receive a refund must apply to the Court of
Claims.
(e) The Secretary of State is authorized to maintain a
two signature revolving checking account with a suitable
commercial bank for the purpose of depositing and
withdrawal-for-return those monies received and determined
upon receipt to be in excess of the amount or amounts
required by law.
(f) Refunds on audits performed by Illinois or another
member of the International Registration Plan shall be made
in accordance with the procedures as set forth in the
agreement.
(Source: P.A. 86-131.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly April 24, 2001.
Approved July 12, 2001.
Effective July 12, 2001.
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