[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 92-0835
HB4975 Enrolled LRB9215737LDtm
AN ACT regarding 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 5-101 and 5-102 as follows:
(625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
Sec. 5-101. New vehicle dealers must be licensed.
(a) No person shall engage in this State in the business
of selling or dealing in, on consignment or otherwise, new
vehicles of any make, or act as an intermediary or 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 in writing by the Secretary of State under
the provisions of this Section.
(b) An application for a new vehicle dealer's license
shall be filed with the Secretary of State, duly verified by
oath, on such form as the Secretary of State may by rule or
regulation prescribe and shall contain:
1. The name and type of business organization of
the applicant and his 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 name and residence address
of the proprietor or of each partner, member, officer,
director, trustee, or manager.
3. The make or makes of new vehicles which the
applicant will offer for sale at retail in this State.
4. The name of each manufacturer or franchised
distributor, if any, of new vehicles with whom the
applicant has contracted for the sale of such new
vehicles. As evidence of this fact, the application shall
be accompanied by a signed statement from each such
manufacturer or franchised distributor. If the applicant
is in the business of offering for sale new conversion
vehicles, trucks or vans, except for trucks modified to
serve a special purpose which includes but is not limited
to the following vehicles: street sweepers, fertilizer
spreaders, emergency vehicles, implements of husbandry or
maintenance type vehicles, he must furnish evidence of a
sales and service agreement from both the chassis
manufacturer and second stage manufacturer.
5. A statement that the applicant has been approved
for registration under the Retailers' Occupation Tax Act
by the Department of Revenue: Provided that 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 that Department has approved the
applicant for registration under the Retailers'
Occupation Tax Act.
6. 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 new 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 new
vehicle dealer's automobile, the new vehicle dealer's
insurance shall be primary and the permitted user's
insurance shall be secondary.
As used in this paragraph 6, a "permitted user" is a
person who, with the permission of the new vehicle dealer
or an employee of the new vehicle dealer, drives a
vehicle owned and held for sale or lease by the new
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 new vehicle dealer, drives a vehicle
owned or held for sale or lease by the new vehicle dealer
for loaner purposes while the user's vehicle is being
repaired or evaluated.
As used in this paragraph 6, "test driving" occurs
when a permitted user who, with the permission of the new
vehicle dealer or an employee of the new vehicle dealer,
drives a vehicle owned and held for sale or lease by a
new 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 6, "loaner purposes" means
when a person who, with the permission of the new vehicle
dealer, drives a vehicle owned or held for sale or lease
by the new vehicle dealer while the user's vehicle is
being repaired or evaluated.
7. (A) An application for a new motor vehicle
dealer's license shall be accompanied by the following
license fees:
$100 for applicant's established place of
business, and $50 for each additional place of
business, if any, to which the application pertains;
but if the application is made after June 15 of any
year, the license fee shall be $50 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. All moneys
received by the Secretary of State as license fees
under this Section shall be deposited into the Motor
Vehicle Review Board Fund and shall be used to
administer the Motor Vehicle Review Board under the
Motor Vehicle Franchise Act.
(B) An application for a new vehicle dealer's
license, other than for a new motor vehicle dealer's
license, shall be accompanied by the following
license fees:
$50 for applicant's established place of
business, and $25 for each additional place of
business, if any, to which the application pertains;
but if the application is made after June 15 of any
year, the license fee shall be $25 for applicant's
established place of business plus $12.50 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.
8. A statement that the applicant's officers,
directors, shareholders having a 10% or greater ownership
interest therein, proprietor, a 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 Criminal Code of 1961,
Criminal Trespass to Vehicles; or
(F) The Retailers' Occupation Tax Act.
9. 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, 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.
10. A bond or certificate of deposit in the amount
of $20,000 for each location at which the applicant
intends to act as a new 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 new vehicle dealer.
11. Such other information concerning the business
of the applicant as the Secretary of State may by rule or
regulation prescribe.
12. A statement that the applicant understands
Chapter One through Chapter Five of this Code.
(c) Any change which renders no longer accurate any
information contained in any application for a new vehicle
dealer's license shall be amended within 30 days after the
occurrence of such 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 5 to the contrary
notwithstanding no person shall be licensed as a new vehicle
dealer unless:
1. He is authorized by contract in writing between
himself and the manufacturer or franchised distributor of
such make of vehicle to so sell the same in this State,
and
2. Such person shall maintain an established place
of business as defined in this Act.
(e) The Secretary of State shall, within a reasonable
time after receipt, examine an application submitted to him
under this Section and unless he makes a determination that
the application submitted to him does not conform with the
requirements of this Section or that grounds exist for a
denial of the application, under Section 5-501 of this
Chapter, grant the applicant an original new 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 the 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;
5. The make or makes of new vehicles which the
licensee is licensed to sell.
(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) hereof, all new
vehicle dealer's licenses granted under this Section shall
expire by operation of law on December 31 of the calendar
year for which they are granted unless sooner revoked or
cancelled under the provisions of Section 5-501 of this
Chapter.
(h) A new vehicle dealer's license may be renewed upon
application and payment of the fee required herein, and
submission of proof of coverage under 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 is granted or denied by the Secretary of
State.
(i) All persons licensed as a new vehicle dealer are
required to furnish each purchaser of a motor vehicle:
1. In the case of a new vehicle a manufacturer's
statement of origin and in the case of a used motor
vehicle 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 agree with those on
the certificate of title or manufacturer's statement of
origin;
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 hereof;
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) Except at the time of sale or repossession of the
vehicle, no person licensed as a new vehicle dealer may issue
any other person a newly created key to a vehicle unless the
new 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 new vehicle dealer must
retain the copy for 30 days.
A new vehicle dealer who violates this subsection (j) is
guilty of a petty offense. Violation of this subsection (j)
is not cause to suspend, revoke, cancel, or deny renewal of
the new vehicle dealer's license.
This amendatory Act of 1983 shall be applicable to the
1984 registration year and thereafter.
(Source: P.A. 92-391, eff. 8-16-01.)
(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:
$50 for applicant's established place of business,
and $25 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 $25 for applicant's established
place of business plus $12.50 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.
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.
(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.
(Source: P.A. 92-391, eff. 8-16-01.)
Passed in the General Assembly June 01, 2002.
Approved August 22, 2002.
Effective June 01, 2003.
[ Top ]