Rep. Brandon W. Phelps

Filed: 4/9/2008

 

 


 

 


 
09500HB5204ham001 LRB095 14708 RLC 49204 a

1
AMENDMENT TO HOUSE BILL 5204

2     AMENDMENT NO. ______. Amend House Bill 5204 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Auction License Act is amended by changing
5 Section 10-1 as follows:
 
6     (225 ILCS 407/10-1)
7     (Text of Section after amendment by P.A. 95-572)
8     (Section scheduled to be repealed on January 1, 2010)
9     Sec. 10-1. Necessity of license; exemptions.
10     (a) It is unlawful for any person, corporation, limited
11 liability company, partnership, or other entity to conduct an
12 auction, provide an auction service, hold himself or herself
13 out as an auctioneer, or advertise his or her services as an
14 auctioneer in the State of Illinois without a license issued by
15 the Department under this Act, except at:
16         (1) an auction conducted solely by or for a

 

 

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1     not-for-profit organization for charitable purposes;
2         (2) an auction conducted by the owner of the property,
3     real or personal;
4         (3) an auction for the sale or lease of real property
5     conducted by a licensee under the Real Estate License Act,
6     or its successor Acts, in accordance with the terms of that
7     Act;
8         (4) an auction conducted by a business registered as a
9     market agency under the federal Packers and Stockyards Act
10     (7 U.S.C. 181 et seq.) or under the Livestock Auction
11     Market Law;
12         (5) an auction conducted by an agent, officer, or
13     employee of a federal agency in the conduct of his or her
14     official duties; and
15         (6) an auction conducted by an agent, officer, or
16     employee of the State government or any political
17     subdivision thereof performing his or her official duties.
18     (b) Nothing in this Act shall be construed to apply to a
19 new or used vehicle dealer or a vehicle auctioneer licensed by
20 the Secretary of State of Illinois, or to any employee of the
21 licensee, who is a resident of the State of Illinois, while the
22 employee is acting in the regular scope of his or her
23 employment for the licensee while conducting an auction that is
24 not open to the public, provided that only new or used vehicle
25 dealers, rebuilders, automotive parts recyclers, scrap
26 processors licensed by the Secretary of State, or out-of-state

 

 

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1 salvage vehicle buyers licensed in by the Secretary of State or
2 licensed by another state or jurisdiction may buy property at
3 the auction, or to sales by or through the licensee.
4     (c) Nothing in this Act shall be construed to prohibit a
5 person under the age of 18 from selling property under $250 in
6 value while under the direct supervision of a licensed
7 auctioneer.
8     (d) Nothing in this Act, except Section 10-27, shall be
9 construed to apply to a person while providing an Internet
10 auction listing service as defined in Section 10-27.
11 (Source: P.A. 95-572, eff. 6-1-08.)
 
12     Section 10. The Illinois Vehicle Code is amended by
13 changing Sections 1-154.7, 3-117.1, 3-118, 5-102, 5-302,
14 5-403, and 5-702 as follows:
 
15     (625 ILCS 5/1-154.7)
16     Sec. 1-154.7. Out-of-state salvage vehicle buyer. A person
17 who is licensed in another state or jurisdiction and acquires
18 salvage or junk vehicles state for the primary purpose of
19 acquiring salvage vehicles and who is issued an out-of-state
20 salvage vehicle buyer's identification card in this State for
21 the sole purpose of acquiring salvage vehicles and taking them
22 out of state.
23 (Source: P.A. 90-89, eff. 1-1-98.)
 

 

 

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1     (625 ILCS 5/3-117.1)  (from Ch. 95 1/2, par. 3-117.1)
2     Sec. 3-117.1. When junking certificates or salvage
3 certificates must be obtained.
4     (a) Except as provided in Chapter 4 of this Code, a person
5 who possesses a junk vehicle shall within 15 days cause the
6 certificate of title, salvage certificate, certificate of
7 purchase, or a similarly acceptable out of state document of
8 ownership to be surrendered to the Secretary of State along
9 with an application for a junking certificate, except as
10 provided in Section 3-117.2, whereupon the Secretary of State
11 shall issue to such a person a junking certificate, which shall
12 authorize the holder thereof to possess, transport, or, by an
13 endorsement, transfer ownership in such junked vehicle, and a
14 certificate of title shall not again be issued for such
15 vehicle.
16     A licensee who possesses a junk vehicle and a Certificate
17 of Title, Salvage Certificate, Certificate of Purchase, or a
18 similarly acceptable out-of-state document of ownership for
19 such junk vehicle, may transport the junk vehicle to another
20 licensee prior to applying for or obtaining a junking
21 certificate, by executing a uniform invoice. The licensee
22 transferor shall furnish a copy of the uniform invoice to the
23 licensee transferee at the time of transfer. In any case, the
24 licensee transferor shall apply for a junking certificate in
25 conformance with Section 3-117.1 of this Chapter. The following
26 information shall be contained on a uniform invoice:

 

 

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1         (1) The business name, address and dealer license
2     number of the person disposing of the vehicle, junk vehicle
3     or vehicle cowl;
4         (2) The name and address of the person acquiring the
5     vehicle, junk vehicle or vehicle cowl, and if that person
6     is a dealer, the Illinois or out-of-state dealer license
7     number of that dealer;
8         (3) The date of the disposition of the vehicle, junk
9     vehicle or vehicle cowl;
10         (4) The year, make, model, color and description of
11     each vehicle, junk vehicle or vehicle cowl disposed of by
12     such person;
13         (5) The manufacturer's vehicle identification number,
14     Secretary of State identification number or Illinois
15     Department of State Police number, for each vehicle, junk
16     vehicle or vehicle cowl part disposed of by such person;
17         (6) The printed name and legible signature of the
18     person or agent disposing of the vehicle, junk vehicle or
19     vehicle cowl; and
20         (7) The printed name and legible signature of the
21     person accepting delivery of the vehicle, junk vehicle or
22     vehicle cowl.
23     The Secretary of State may certify a junking manifest in a
24 form prescribed by the Secretary of State that reflects those
25 vehicles for which junking certificates have been applied or
26 issued. A junking manifest may be issued to any person and it

 

 

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1 shall constitute evidence of ownership for the vehicle listed
2 upon it. A junking manifest may be transferred only to a person
3 licensed under Section 5-301 of this Code as a scrap processor.
4 A junking manifest will allow the transportation of those
5 vehicles to a scrap processor prior to receiving the junk
6 certificate from the Secretary of State.
7     (b) An application for a salvage certificate shall be
8 submitted to the Secretary of State in any of the following
9 situations:
10         (1) When an insurance company makes a payment of
11     damages on a total loss claim for a vehicle, the insurance
12     company shall be deemed to be the owner of such vehicle and
13     the vehicle shall be considered to be salvage except that
14     ownership of (i) a vehicle that has incurred only hail
15     damage that does not affect the operational safety of the
16     vehicle or (ii) any vehicle 9 model years of age or older
17     may, by agreement between the registered owner and the
18     insurance company, be retained by the registered owner of
19     such vehicle. The insurance company shall promptly deliver
20     or mail within 20 days the certificate of title along with
21     proper application and fee to the Secretary of State, and a
22     salvage certificate shall be issued in the name of the
23     insurance company. Notwithstanding the foregoing, an
24     insurer making payment of damages on a total loss claim for
25     the theft of a vehicle shall not be required to apply for a
26     salvage certificate unless the vehicle is recovered and has

 

 

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1     incurred damage that initially would have caused the
2     vehicle to be declared a total loss by the insurer. An
3     insurer making payment of damages on a total loss claim for
4     the theft of a vehicle may exchange the salvage certificate
5     for a certificate of title if the vehicle is recovered
6     without damage. In such a situation, the insurer shall fill
7     out and sign a form prescribed by the Secretary of State
8     which contains an affirmation under penalty of perjury that
9     the vehicle was recovered without damage and the Secretary
10     of State may, by rule or regulation, require photographs to
11     be submitted.
12         (1.1) When a vehicle of a self-insured company is to be
13     sold in the State of Illinois and has sustained damaged by
14     collision, fire, theft, rust corrosion, or other means so
15     that the self-insured company determines the vehicle to be
16     a total loss, or if the cost of repairing the damage,
17     including labor, would be greater than 50% of its fair
18     market value without that damage, the vehicle shall be
19     considered salvage. The self-insured company shall
20     promptly deliver the certificate of title along with proper
21     application and fee to the Secretary of State, and a
22     salvage certificate shall be issued in the name of the
23     self-insured company. A self-insured company making
24     payment of damages on a total loss claim for the theft of a
25     vehicle may exchange the salvage certificate for a
26     certificate of title if the vehicle is recovered without

 

 

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1     damage. In such a situation, the self-insured shall fill
2     out and sign a form prescribed by the Secretary of State
3     which contains an affirmation under penalty of perjury that
4     the vehicle was recovered without damage and the Secretary
5     of State may, by rule, require photographs to be submitted.
6         (2) When a vehicle the ownership of which has been
7     transferred to any person through a certificate of purchase
8     from acquisition of the vehicle at an auction, other
9     dispositions as set forth in Sections 4-208 and 4-209 of
10     this Code, a lien arising under Section 18a-501 of this
11     Code, or a public sale under the Abandoned Mobile Home Act
12     shall be deemed salvage or junk at the option of the
13     purchaser. The person acquiring such vehicle in such manner
14     shall promptly deliver or mail, within 20 days after the
15     acquisition of the vehicle, the certificate of purchase,
16     the proper application and fee, and, if the vehicle is an
17     abandoned mobile home under the Abandoned Mobile Home Act,
18     a certification from a local law enforcement agency that
19     the vehicle was purchased or acquired at a public sale
20     under the Abandoned Mobile Home Act to the Secretary of
21     State and a salvage certificate or junking certificate
22     shall be issued in the name of that person. The salvage
23     certificate or junking certificate issued by the Secretary
24     of State under this Section shall be free of any lien that
25     existed against the vehicle prior to the time the vehicle
26     was acquired by the applicant under this Code.

 

 

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1         (3) A vehicle which has been repossessed by a
2     lienholder shall be considered to be salvage only when the
3     repossessed vehicle, on the date of repossession by the
4     lienholder, has sustained damage by collision, fire,
5     theft, rust corrosion, or other means so that the cost of
6     repairing such damage, including labor, would be greater
7     than 33 1/3% of its fair market value without such damage.
8     If the lienholder determines that such vehicle is damaged
9     in excess of 33 1/3% of such fair market value, the
10     lienholder shall, before sale, transfer or assignment of
11     the vehicle, make application for a salvage certificate,
12     and shall submit with such application the proper fee and
13     evidence of possession. If the facts required to be shown
14     in subsection (f) of Section 3-114 are satisfied, the
15     Secretary of State shall issue a salvage certificate in the
16     name of the lienholder making the application. In any case
17     wherein the vehicle repossessed is not damaged in excess of
18     33 1/3% of its fair market value, the lienholder shall
19     comply with the requirements of subsections (f), (f-5), and
20     (f-10) of Section 3-114, except that the affidavit of
21     repossession made by or on behalf of the lienholder shall
22     also contain an affirmation under penalty of perjury that
23     the vehicle on the date of sale is not damaged in excess of
24     33 1/3% of its fair market value. If the facts required to
25     be shown in subsection (f) of Section 3-114 are satisfied,
26     the Secretary of State shall issue a certificate of title

 

 

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1     as set forth in Section 3-116 of this Code. The Secretary
2     of State may by rule or regulation require photographs to
3     be submitted.
4         (4) A vehicle which is a part of a fleet of more than 5
5     commercial vehicles registered in this State or any other
6     state or registered proportionately among several states
7     shall be considered to be salvage when such vehicle has
8     sustained damage by collision, fire, theft, rust,
9     corrosion or similar means so that the cost of repairing
10     such damage, including labor, would be greater than 33 1/3%
11     of the fair market value of the vehicle without such
12     damage. If the owner of a fleet vehicle desires to sell,
13     transfer, or assign his interest in such vehicle to a
14     person within this State other than an insurance company
15     licensed to do business within this State, and the owner
16     determines that such vehicle, at the time of the proposed
17     sale, transfer or assignment is damaged in excess of 33
18     1/3% of its fair market value, the owner shall, before such
19     sale, transfer or assignment, make application for a
20     salvage certificate. The application shall contain with it
21     evidence of possession of the vehicle. If the fleet vehicle
22     at the time of its sale, transfer, or assignment is not
23     damaged in excess of 33 1/3% of its fair market value, the
24     owner shall so state in a written affirmation on a form
25     prescribed by the Secretary of State by rule or regulation.
26     The Secretary of State may by rule or regulation require

 

 

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1     photographs to be submitted. Upon sale, transfer or
2     assignment of the fleet vehicle the owner shall mail the
3     affirmation to the Secretary of State.
4         (5) A vehicle that has been submerged in water to the
5     point that rising water has reached over the door sill and
6     has entered the passenger or trunk compartment is a "flood
7     vehicle". A flood vehicle shall be considered to be salvage
8     only if the vehicle has sustained damage so that the cost
9     of repairing the damage, including labor, would be greater
10     than 33 1/3% of the fair market value of the vehicle
11     without that damage. The salvage certificate issued under
12     this Section shall indicate the word "flood", and the word
13     "flood" shall be conspicuously entered on subsequent
14     titles for the vehicle. A person who possesses or acquires
15     a flood vehicle that is not damaged in excess of 33 1/3% of
16     its fair market value shall make application for title in
17     accordance with Section 3-116 of this Code, designating the
18     vehicle as "flood" in a manner prescribed by the Secretary
19     of State. The certificate of title issued shall indicate
20     the word "flood", and the word "flood" shall be
21     conspicuously entered on subsequent titles for the
22     vehicle.
23     (c) Any person who without authority acquires, sells,
24 exchanges, gives away, transfers or destroys or offers to
25 acquire, sell, exchange, give away, transfer or destroy the
26 certificate of title to any vehicle which is a junk or salvage

 

 

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1 vehicle shall be guilty of a Class 3 felony.
2     (d) Any person who knowingly fails to surrender to the
3 Secretary of State a certificate of title, salvage certificate,
4 certificate of purchase or a similarly acceptable out-of-state
5 document of ownership as required under the provisions of this
6 Section is guilty of a Class A misdemeanor for a first offense
7 and a Class 4 felony for a subsequent offense; except that a
8 person licensed under this Code who violates paragraph (5) of
9 subsection (b) of this Section is guilty of a business offense
10 and shall be fined not less than $1,000 nor more than $5,000
11 for a first offense and is guilty of a Class 4 felony for a
12 second or subsequent violation.
13     (e) Any vehicle which is salvage or junk may not be driven
14 or operated on roads and highways within this State. A
15 violation of this subsection is a Class A misdemeanor. A
16 salvage vehicle displaying valid special plates issued under
17 Section 3-601(b) of this Code, which is being driven to or from
18 an inspection conducted under Section 3-308 of this Code, is
19 exempt from the provisions of this subsection. A salvage
20 vehicle for which a short term permit has been issued under
21 Section 3-307 of this Code is exempt from the provisions of
22 this subsection for the duration of the permit.
23 (Source: P.A. 95-495, eff. 1-1-08.)
 
24     (625 ILCS 5/3-118)  (from Ch. 95 1/2, par. 3-118)
25     Sec. 3-118. Application for salvage or junking

 

 

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1 certificate; contents.
2     (a) An application for a salvage certificate or junking
3 certificate shall be made upon the forms prescribed by the
4 Secretary of State and contain:
5         1. The name and address of the owner;
6         2. A description of the vehicle including, so far as
7     the following data exists: its make, year-model,
8     identifying number, type of body, whether new or used;
9         3. The date of purchase by applicant; and
10         4. Any further information reasonably required by the
11     Secretary of State.
12     (b) The application for salvage certificate must also
13 contain the current odometer reading and that the stated
14 odometer reading is one of the following: actual mileage, not
15 the actual mileage or mileage is in excess of its mechanical
16 limits.
17     (c) A salvage certificate may be assigned to any person
18 licensed under this Act as a rebuilder, automotive parts
19 recycler, or scrap processor, or to an out-of-state salvage
20 vehicle buyer. A salvage certificate for a vehicle that has
21 come from a police impoundment may be assigned to a municipal
22 fire department. A junking certificate may be assigned to
23 anyone. The provisions for reassignment by dealers under
24 paragraph (a) of Section 3-113 shall apply to salvage
25 certificates, except as provided in Section 3-117.2. A salvage
26 certificate may be reassigned to one other person to whom a

 

 

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1 salvage certificate may be assigned pursuant to this Section
2 licensed under this Act.
3 (Source: P.A. 95-301, eff. 1-1-08.)
 
4     (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)
5     Sec. 5-102. Used vehicle dealers must be licensed.
6     (a) No person, other than a licensed new vehicle dealer,
7 shall engage in the business of selling or dealing in, on
8 consignment or otherwise, 5 or more used vehicles of any make
9 during the year (except house trailers as authorized by
10 paragraph (j) of this Section and rebuilt salvage vehicles sold
11 by their rebuilders to persons licensed under this Chapter), or
12 act as an intermediary, agent or broker for any licensed dealer
13 or vehicle purchaser (other than as a salesperson) or represent
14 or advertise that he is so engaged or intends to so engage in
15 such business unless licensed to do so by the Secretary of
16 State under the provisions of this Section.
17     (b) An application for a used vehicle dealer's license
18 shall be filed with the Secretary of State, duly verified by
19 oath, in such form as the Secretary of State may by rule or
20 regulation prescribe and shall contain:
21         1. The name and type of business organization
22     established and additional places of business, if any, in
23     this State.
24         2. If the applicant is a corporation, a list of its
25     officers, directors, and shareholders having a ten percent

 

 

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1     or greater ownership interest in the corporation, setting
2     forth the residence address of each; if the applicant is a
3     sole proprietorship, a partnership, an unincorporated
4     association, a trust, or any similar form of business
5     organization, the names and residence address of the
6     proprietor or of each partner, member, officer, director,
7     trustee or manager.
8         3. A statement that the applicant has been approved for
9     registration under the Retailers' Occupation Tax Act by the
10     Department of Revenue. However, this requirement does not
11     apply to a dealer who is already licensed hereunder with
12     the Secretary of State, and who is merely applying for a
13     renewal of his license. As evidence of this fact, the
14     application shall be accompanied by a certification from
15     the Department of Revenue showing that the Department has
16     approved the applicant for registration under the
17     Retailers' Occupation Tax Act.
18         4. A statement that the applicant has complied with the
19     appropriate liability insurance requirement. A Certificate
20     of Insurance in a solvent company authorized to do business
21     in the State of Illinois shall be included with each
22     application covering each location at which he proposes to
23     act as a used vehicle dealer. The policy must provide
24     liability coverage in the minimum amounts of $100,000 for
25     bodily injury to, or death of, any person, $300,000 for
26     bodily injury to, or death of, two or more persons in any

 

 

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1     one accident, and $50,000 for damage to property. Such
2     policy shall expire not sooner than December 31 of the year
3     for which the license was issued or renewed. The expiration
4     of the insurance policy shall not terminate the liability
5     under the policy arising during the period for which the
6     policy was filed. Trailer and mobile home dealers are
7     exempt from this requirement.
8         If the permitted user has a liability insurance policy
9     that provides automobile liability insurance coverage of
10     at least $100,000 for bodily injury to or the death of any
11     person, $300,000 for bodily injury to or the death of any 2
12     or more persons in any one accident, and $50,000 for damage
13     to property, then the permitted user's insurer shall be the
14     primary insurer and the dealer's insurer shall be the
15     secondary insurer. If the permitted user does not have a
16     liability insurance policy that provides automobile
17     liability insurance coverage of at least $100,000 for
18     bodily injury to or the death of any person, $300,000 for
19     bodily injury to or the death of any 2 or more persons in
20     any one accident, and $50,000 for damage to property, or
21     does not have any insurance at all, then the dealer's
22     insurer shall be the primary insurer and the permitted
23     user's insurer shall be the secondary insurer.
24         When a permitted user is "test driving" a used vehicle
25     dealer's automobile, the used vehicle dealer's insurance
26     shall be primary and the permitted user's insurance shall

 

 

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1     be secondary.
2         As used in this paragraph 4, a "permitted user" is a
3     person who, with the permission of the used vehicle dealer
4     or an employee of the used vehicle dealer, drives a vehicle
5     owned and held for sale or lease by the used vehicle dealer
6     which the person is considering to purchase or lease, in
7     order to evaluate the performance, reliability, or
8     condition of the vehicle. The term "permitted user" also
9     includes a person who, with the permission of the used
10     vehicle dealer, drives a vehicle owned or held for sale or
11     lease by the used vehicle dealer for loaner purposes while
12     the user's vehicle is being repaired or evaluated.
13         As used in this paragraph 4, "test driving" occurs when
14     a permitted user who, with the permission of the used
15     vehicle dealer or an employee of the used vehicle dealer,
16     drives a vehicle owned and held for sale or lease by a used
17     vehicle dealer that the person is considering to purchase
18     or lease, in order to evaluate the performance,
19     reliability, or condition of the vehicle.
20         As used in this paragraph 4, "loaner purposes" means
21     when a person who, with the permission of the used vehicle
22     dealer, drives a vehicle owned or held for sale or lease by
23     the used vehicle dealer while the user's vehicle is being
24     repaired or evaluated.
25         5. An application for a used vehicle dealer's license
26     shall be accompanied by the following license fees:

 

 

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1         $1,000 for applicant's established place of business,
2     and $50 for each additional place of business, if any, to
3     which the application pertains; however, if the
4     application is made after June 15 of any year, the license
5     fee shall be $500 for applicant's established place of
6     business plus $25 for each additional place of business, if
7     any, to which the application pertains. License fees shall
8     be returnable only in the event that the application is
9     denied by the Secretary of State. Of the money received by
10     the Secretary of State as license fees under this Section
11     for the 2004 licensing year and thereafter, 95% shall be
12     deposited into the General Revenue Fund.
13         6. A statement that the applicant's officers,
14     directors, shareholders having a 10% or greater ownership
15     interest therein, proprietor, partner, member, officer,
16     director, trustee, manager or other principals in the
17     business have not committed in the past 3 years any one
18     violation as determined in any civil, criminal or
19     administrative proceedings of any one of the following
20     Acts:
21             (A) The Anti Theft Laws of the Illinois Vehicle
22         Code;
23             (B) The Certificate of Title Laws of the Illinois
24         Vehicle Code;
25             (C) The Offenses against Registration and
26         Certificates of Title Laws of the Illinois Vehicle

 

 

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1         Code;
2             (D) The Dealers, Transporters, Wreckers and
3         Rebuilders Laws of the Illinois Vehicle Code;
4             (E) Section 21-2 of the Illinois Criminal Code of
5         1961, Criminal Trespass to Vehicles; or
6             (F) The Retailers' Occupation Tax Act.
7         7. A statement that the applicant's officers,
8     directors, shareholders having a 10% or greater ownership
9     interest therein, proprietor, partner, member, officer,
10     director, trustee, manager or other principals in the
11     business have not committed in any calendar year 3 or more
12     violations, as determined in any civil or criminal or
13     administrative proceedings, of any one or more of the
14     following Acts:
15             (A) The Consumer Finance Act;
16             (B) The Consumer Installment Loan Act;
17             (C) The Retail Installment Sales Act;
18             (D) The Motor Vehicle Retail Installment Sales
19         Act;
20             (E) The Interest Act;
21             (F) The Illinois Wage Assignment Act;
22             (G) Part 8 of Article XII of the Code of Civil
23         Procedure; or
24             (H) The Consumer Fraud Act.
25         8. A bond or Certificate of Deposit in the amount of
26     $20,000 for each location at which the applicant intends to

 

 

09500HB5204ham001 - 20 - LRB095 14708 RLC 49204 a

1     act as a used vehicle dealer. The bond shall be for the
2     term of the license, or its renewal, for which application
3     is made, and shall expire not sooner than December 31 of
4     the year for which the license was issued or renewed. The
5     bond shall run to the People of the State of Illinois, with
6     surety by a bonding or insurance company authorized to do
7     business in this State. It shall be conditioned upon the
8     proper transmittal of all title and registration fees and
9     taxes (excluding taxes under the Retailers' Occupation Tax
10     Act) accepted by the applicant as a used vehicle dealer.
11         9. Such other information concerning the business of
12     the applicant as the Secretary of State may by rule or
13     regulation prescribe.
14         10. A statement that the applicant understands Chapter
15     1 through Chapter 5 of this Code.
16     (c) Any change which renders no longer accurate any
17 information contained in any application for a used vehicle
18 dealer's license shall be amended within 30 days after the
19 occurrence of each change on such form as the Secretary of
20 State may prescribe by rule or regulation, accompanied by an
21 amendatory fee of $2.
22     (d) Anything in this Chapter to the contrary
23 notwithstanding, no person shall be licensed as a used vehicle
24 dealer unless such person maintains an established place of
25 business as defined in this Chapter.
26     (e) The Secretary of State shall, within a reasonable time

 

 

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1 after receipt, examine an application submitted to him under
2 this Section. Unless the Secretary makes a determination that
3 the application submitted to him does not conform to this
4 Section or that grounds exist for a denial of the application
5 under Section 5-501 of this Chapter, he must grant the
6 applicant an original used vehicle dealer's license in writing
7 for his established place of business and a supplemental
8 license in writing for each additional place of business in
9 such form as he may prescribe by rule or regulation which shall
10 include the following:
11         1. The name of the person licensed;
12         2. If a corporation, the name and address of its
13     officers or if a sole proprietorship, a partnership, an
14     unincorporated association or any similar form of business
15     organization, the name and address of the proprietor or of
16     each partner, member, officer, director, trustee or
17     manager;
18         3. In case of an original license, the established
19     place of business of the licensee;
20         4. In the case of a supplemental license, the
21     established place of business of the licensee and the
22     additional place of business to which such supplemental
23     license pertains.
24     (f) The appropriate instrument evidencing the license or a
25 certified copy thereof, provided by the Secretary of State
26 shall be kept posted, conspicuously, in the established place

 

 

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1 of business of the licensee and in each additional place of
2 business, if any, maintained by such licensee.
3     (g) Except as provided in subsection (h) of this Section,
4 all used vehicle dealer's licenses granted under this Section
5 expire by operation of law on December 31 of the calendar year
6 for which they are granted unless sooner revoked or cancelled
7 under Section 5-501 of this Chapter.
8     (h) A used vehicle dealer's license may be renewed upon
9 application and payment of the fee required herein, and
10 submission of proof of coverage by an approved bond under the
11 "Retailers' Occupation Tax Act" or proof that applicant is not
12 subject to such bonding requirements, as in the case of an
13 original license, but in case an application for the renewal of
14 an effective license is made during the month of December, the
15 effective license shall remain in force until the application
16 for renewal is granted or denied by the Secretary of State.
17     (i) All persons licensed as a used vehicle dealer are
18 required to furnish each purchaser of a motor vehicle:
19         1. A certificate of title properly assigned to the
20     purchaser;
21         2. A statement verified under oath that all identifying
22     numbers on the vehicle agree with those on the certificate
23     of title;
24         3. A bill of sale properly executed on behalf of such
25     person;
26         4. A copy of the Uniform Invoice-transaction reporting

 

 

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1     return referred to in Section 5-402 of this Chapter;
2         5. In the case of a rebuilt vehicle, a copy of the
3     Disclosure of Rebuilt Vehicle Status; and
4         6. In the case of a vehicle for which the warranty has
5     been reinstated, a copy of the warranty.
6     (j) A real estate broker holding a valid certificate of
7 registration issued pursuant to "The Real Estate Brokers and
8 Salesmen License Act" may engage in the business of selling or
9 dealing in house trailers not his own without being licensed as
10 a used vehicle dealer under this Section; however such broker
11 shall maintain a record of the transaction including the
12 following:
13         (1) the name and address of the buyer and seller,
14         (2) the date of sale,
15         (3) a description of the mobile home, including the
16     vehicle identification number, make, model, and year, and
17         (4) the Illinois certificate of title number.
18     The foregoing records shall be available for inspection by
19 any officer of the Secretary of State's Office at any
20 reasonable hour.
21     (k) Except at the time of sale or repossession of the
22 vehicle, no person licensed as a used vehicle dealer may issue
23 any other person a newly created key to a vehicle unless the
24 used vehicle dealer makes a copy of the driver's license or
25 State identification card of the person requesting or obtaining
26 the newly created key. The used vehicle dealer must retain the

 

 

09500HB5204ham001 - 24 - LRB095 14708 RLC 49204 a

1 copy for 30 days.
2     A used vehicle dealer who violates this subsection (k) is
3 guilty of a petty offense. Violation of this subsection (k) is
4 not cause to suspend, revoke, cancel, or deny renewal of the
5 used vehicle dealer's license.
6     (l) Used vehicle dealers licensed under this Section shall
7 provide the Secretary of State a register for the sale at
8 auction of each salvage or junk certificate vehicle. Each
9 register shall include the following information:
10         1. The year, make, model, style and color of the
11     vehicle;
12         2. The vehicle's manufacturer's identification number
13     or, if applicable, the Secretary of State or Illinois
14     Department of State Police identification number;
15         3. The date of acquisition of the vehicle;
16         4. The name and address of the person from whom the
17     vehicle was acquired;
18         5. The name and address of the person to whom any
19     vehicle was disposed, the person's Illinois license number
20     or if the person is an out-of-state salvage vehicle buyer,
21     the license number from the state or jurisdiction where the
22     buyer is licensed; and
23         6. The purchase price of the vehicle.
24     The register shall be submitted to the Secretary of State
25 via written or electronic means within 10 calendar days from
26 the date of the auction.

 

 

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1 (Source: P.A. 92-391, eff. 8-16-01; 92-835, eff. 6-1-03; 93-32,
2 eff. 7-1-03.)
 
3     (625 ILCS 5/5-302)  (from Ch. 95 1/2, par. 5-302)
4     Sec. 5-302. Out-of-state salvage vehicle buyer must be
5 licensed. (a) No person in this State shall sell or offer at
6 auction salvage vehicles to a nonresident who is not licensed
7 in another state or jurisdiction. has not been issued an
8 out-of-state salvage vehicle buyer's ID card from the Secretary
9 of State under this Section. To qualify for this ID card, the
10 applicant shall submit with the application an out-of-state
11 dealer license which is issued by the applicant's state and is
12 substantially equivalent to that of a rebuilder, automotive
13 parts recycler or scrap processor, as licensed under this Code.
14     (b) (Blank) Any application filed with the Secretary of
15 State, shall be duly verified by oath, in such form as the
16 Secretary of State may by rule or regulation prescribe.
17     (c) (Blank) An application for an out-of-state ID card
18 shall be accompanied by a fee of $100; provided however, that
19 if an application is made after June 15 of any year, the ID
20 card fee shall be $50. Any fees shall be returnable only in the
21 event that such application is denied by the Secretary of
22 State.
23     (d) (Blank) The Secretary of State shall within a
24 reasonable time after receipt thereof, examine an application
25 submitted to him under this Section and unless he makes a

 

 

09500HB5204ham001 - 26 - LRB095 14708 RLC 49204 a

1 determination that the application submitted to him does not
2 conform with the requirements of this Section or that grounds
3 exist for a denial of the application, as prescribed in Section
4 5-501 of this Chapter, grant the applicant an out-of-state
5 salvage vehicle buyer's ID card.
6     (e) (Blank) Except as provided in subsection (f) of this
7 Section, licenses granted under this Section shall expire by
8 operation of law on December 31 of the calendar year for which
9 they are granted unless revoked or cancelled under the
10 provisions of Section 5-501 of this Chapter.
11     (f) (Blank) Any license granted under this Section may be
12 renewed upon application and payment of the fee required for an
13 original license, provided however, that where an application
14 for the renewal of a license is made during the month of
15 December, the license in effect at the time of application for
16 renewal shall remain in force until such application is granted
17 or denied by the Secretary of State.
18     (g) An out-of-state salvage vehicle buyer shall be subject
19 to the inspection of records pertaining to the acquisition of
20 salvage vehicles in this State in accordance with this Code and
21 such rules as the Secretary of State may promulgate.
22     (h) (Blank) Beginning July 1, 1988, the application filed
23 with the Secretary of State shall also contain:
24     1. The name and type of business organization of the
25 applicant and his principal or other places of business;
26     2. If the applicant is a corporation, a list of its

 

 

09500HB5204ham001 - 27 - LRB095 14708 RLC 49204 a

1 officers, directors, and shareholders having a 10% or greater
2 ownership interest in the corporation, setting forth the
3 residence address of each; if the applicant is a sole
4 proprietorship, a partnership, an unincorporated association,
5 a trust, or any similar form of business organization, the
6 names and residence address of the proprietor, or of each
7 partner, member, officer, director, trustee or manager;
8     3. A statement that the applicant's officers, directors,
9 shareholders having a 10% or greater ownership interest
10 therein, proprietor, partner, member, officer, director,
11 trustee, manager, or other principals in the business have not
12 committed in the past 3 years any one violation as determined
13 in any civil or criminal or administrative proceedings of any
14 one of the following Acts:
15     (A) The "Anti Theft Laws" of the Illinois Vehicle Code;
16     (B) The "Certificate of Title Laws" of the Illinois Vehicle
17 Code;
18     (C) The "Offenses against Registration and Certificates of
19 Title Laws" of the Illinois Vehicle Code;
20     (D) The "Dealers, Transporters, Wreckers and Rebuilders
21 Laws" of the Illinois Vehicle Code;
22     (E) Section 21-2 of the Criminal Code of 1961, Criminal
23 Trespass to Vehicles; or
24     (F) The "Retailers Occupation Tax Act";
25     4. A statement that the applicant's officers, directors,
26 shareholders having a 10% or greater ownership interest

 

 

09500HB5204ham001 - 28 - LRB095 14708 RLC 49204 a

1 therein, proprietor, partner, member, officer, director,
2 trustee, manager or other principals in the business have not
3 committed in any calendar year 3 or more violations, as
4 determined in any civil or criminal or administrative
5 proceedings, of any one or more of the following Acts:
6     (A) The "Consumer Finance Act";
7     (B) The "Consumer Installment Loan Act";
8     (C) The "Retail Installment Sales Act";
9     (D) The "Motor Vehicle Retail Installment Sales Act";
10     (E) "An Act in relation to the rate of interest and other
11 charges in connection with sales on credit and the lending of
12 money", approved May 24, 1879, as amended;
13     (F) "An Act to promote the welfare of wage earners by
14 regulating the assignment of wages, and prescribing a penalty
15 for the violation thereof", approved July 1, 1935, as amended;
16     (G) Part 8 of Article XII of the Code of Civil Procedure;
17 or
18     (H) The "Consumer Fraud Act"; and
19     5. A statement that the applicant understands Chapters 1
20 through 5 of this Code.
21     (i) (Blank) Any change which renders no longer accurate any
22 information contained in any application for a license filed
23 with the Secretary of State shall be amended within 30 days
24 after the occurrence of such change on such form as the
25 Secretary of State may prescribe by rule or regulation,
26 accompanied by an amendatory fee of $2.

 

 

09500HB5204ham001 - 29 - LRB095 14708 RLC 49204 a

1 (Source: P.A. 86-444.)
 
2     (625 ILCS 5/5-403)  (from Ch. 95 1/2, par. 5-403)
3     Sec. 5-403. (1) Authorized representatives of the
4 Secretary of State including officers of the Secretary of
5 State's Department of Police, other peace officers, and such
6 other individuals as the Secretary may designate from time to
7 time shall make inspections of individuals and facilities
8 licensed or required to be licensed under Chapter 5 of the
9 Illinois Vehicle Code for the purpose of reviewing records
10 required to be maintained under Chapter 5 for accuracy and
11 completeness and reviewing and examining the premises of the
12 licensee's established or additional place of business for the
13 purpose of determining the accuracy of the required records.
14 Premises that may be inspected in order to determine the
15 accuracy of the books and records required to be kept includes
16 all premises used by the licensee to store vehicles and parts
17 that are reflected by the required books and records.
18     (2) Persons having knowledge of or conducting inspections
19 pursuant to this Chapter shall not in advance of such
20 inspections knowingly notify a licensee or representative of a
21 licensee of the contemplated inspection unless the Secretary or
22 an individual designated by him for this purpose authorizes
23 such notification. Any individual who, without authorization,
24 knowingly violates this subparagraph shall be guilty of a Class
25 A misdemeanor.

 

 

09500HB5204ham001 - 30 - LRB095 14708 RLC 49204 a

1     (3) The licensee or a representative of the licensee shall
2 be entitled to be present during an inspection conducted
3 pursuant to Chapter 5, however, the presence of the licensee or
4 an authorized representative of the licensee is not a condition
5 precedent to such an inspection.
6     (4) Inspection conducted pursuant to Chapter 5 may be
7 initiated at any time that business is being conducted or work
8 is being performed, whether or not open to the public or when
9 the licensee or a representative of the licensee, other than a
10 mere custodian or watchman, is present. The fact that a
11 licensee or representative of the licensee leaves the licensed
12 premises after an inspection has been initiated shall not
13 require the termination of the inspection.
14     (5) Any inspection conducted pursuant to Chapter 5 shall
15 not continue for more than 24 hours after initiation.
16     (6) In the event information comes to the attention of the
17 individuals conducting an inspection that may give rise to the
18 necessity of obtaining a search warrant, and in the event steps
19 are initiated for the procurement of a search warrant, the
20 individuals conducting such inspection may take all necessary
21 steps to secure the premises under inspection until the warrant
22 application is acted upon by a judicial officer.
23     (7) No more than 6 inspections of a premises may be
24 conducted pursuant to Chapter 5 within any 6 month period
25 except pursuant to a search warrant. Notwithstanding this
26 limitation, nothing in this subparagraph (7) shall be construed

 

 

09500HB5204ham001 - 31 - LRB095 14708 RLC 49204 a

1 to limit the authority of law enforcement agents to respond to
2 public complaints of violations of the Code. For the purpose of
3 this subparagraph (7), a public complaint is one in which the
4 complainant identifies himself or herself and sets forth, in
5 writing, the specific basis for their complaint against the
6 licensee. For the purpose of this subparagraph (7), the
7 inspection of records pertaining only to scrap metals, as
8 provided in subdivision (a)(5) of Section 5-401.3 of this Code,
9 shall not be counted as an inspection of a premises.
10     (8) Nothing in this Section shall be construed to limit the
11 authority of individuals by the Secretary pursuant to this
12 Section to conduct searches of licensees pursuant to a duly
13 issued and authorized search warrant.
14     (9) Any licensee who, having been informed by a person
15 authorized to make inspections and examine records under this
16 Section that he desires to inspect records and the licensee's
17 premises as authorized by this Section, refuses either to
18 produce for that person records required to be kept by this
19 Chapter or to permit such authorized person to make an
20 inspection of the premises in accordance with this Section
21 shall subject the license to immediate suspension by the
22 Secretary of State.
23     (10) Beginning July 1, 1988, any person referenced licensed
24 under Section 5-302 shall produce for inspection upon demand
25 those records pertaining to the acquisition of salvage vehicles
26 in this State. This inspection may be conducted at the

 

 

09500HB5204ham001 - 32 - LRB095 14708 RLC 49204 a

1 principal offices of the Secretary of State.
2 (Source: P.A. 95-253, eff. 1-1-08.)
 
3     (625 ILCS 5/5-702)  (from Ch. 95 1/2, par. 5-702)
4     Sec. 5-702. No person shall engage in the business of
5 auctioning any vehicles for which a salvage certificate is
6 required by law except to a bidder who is an out-of-state
7 salvage vehicle buyer or who is properly licensed as a
8 rebuilder, automotive parts recycler, or scrap processor or
9 out-of-state salvage buyer, as required by Section Sections
10 5-301 and 5-302 of this Chapter.
11 (Source: P.A. 89-663, eff. 8-14-96.)".