96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB0942

 

Introduced 2/6/2009, by Sen. John J. Cullerton

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/5-101   from Ch. 95 1/2, par. 5-101

    Amends the Illinois Vehicle Code. Makes a technical change in a Section concerning new vehicle dealers.


LRB096 07051 AJT 17137 b

 

 

A BILL FOR

 

SB0942 LRB096 07051 AJT 17137 b

1     AN ACT concerning transportation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Vehicle Code is amended by changing
5 Section 5-101 as follows:
 
6     (625 ILCS 5/5-101)  (from Ch. 95 1/2, par. 5-101)
7     Sec. 5-101. New vehicle dealers must be licensed.
8     (a) No person shall engage in this State in the the
9 business of selling or dealing in, on consignment or otherwise,
10 new vehicles of any make, or act as an intermediary or agent or
11 broker for any licensed dealer or vehicle purchaser other than
12 as a salesperson, or represent or advertise that he is so
13 engaged or intends to so engage in such business unless
14 licensed to do so in writing by the Secretary of State under
15 the provisions of this Section.
16     (b) An application for a new vehicle dealer's license shall
17 be filed with the Secretary of State, duly verified by oath, on
18 such form as the Secretary of State may by rule or regulation
19 prescribe and shall contain:
20         1. The name and type of business organization of the
21     applicant and his established and additional places of
22     business, if any, in this State.
23         2. If the applicant is a corporation, a list of its

 

 

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1     officers, directors, and shareholders having a ten percent
2     or greater ownership interest in the corporation, setting
3     forth the residence address of each; if the applicant is a
4     sole proprietorship, a partnership, an unincorporated
5     association, a trust, or any similar form of business
6     organization, the name and residence address of the
7     proprietor or of each partner, member, officer, director,
8     trustee, or manager.
9         3. The make or makes of new vehicles which the
10     applicant will offer for sale at retail in this State.
11         4. The name of each manufacturer or franchised
12     distributor, if any, of new vehicles with whom the
13     applicant has contracted for the sale of such new vehicles.
14     As evidence of this fact, the application shall be
15     accompanied by a signed statement from each such
16     manufacturer or franchised distributor. If the applicant
17     is in the business of offering for sale new conversion
18     vehicles, trucks or vans, except for trucks modified to
19     serve a special purpose which includes but is not limited
20     to the following vehicles: street sweepers, fertilizer
21     spreaders, emergency vehicles, implements of husbandry or
22     maintenance type vehicles, he must furnish evidence of a
23     sales and service agreement from both the chassis
24     manufacturer and second stage manufacturer.
25         5. A statement that the applicant has been approved for
26     registration under the Retailers' Occupation Tax Act by the

 

 

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1     Department of Revenue: Provided that this requirement does
2     not apply to a dealer who is already licensed hereunder
3     with the Secretary of State, and who is merely applying for
4     a renewal of his license. As evidence of this fact, the
5     application shall be accompanied by a certification from
6     the Department of Revenue showing that that Department has
7     approved the applicant for registration under the
8     Retailers' Occupation Tax Act.
9         6. A statement that the applicant has complied with the
10     appropriate liability insurance requirement. A Certificate
11     of Insurance in a solvent company authorized to do business
12     in the State of Illinois shall be included with each
13     application covering each location at which he proposes to
14     act as a new vehicle dealer. The policy must provide
15     liability coverage in the minimum amounts of $100,000 for
16     bodily injury to, or death of, any person, $300,000 for
17     bodily injury to, or death of, two or more persons in any
18     one accident, and $50,000 for damage to property. Such
19     policy shall expire not sooner than December 31 of the year
20     for which the license was issued or renewed. The expiration
21     of the insurance policy shall not terminate the liability
22     under the policy arising during the period for which the
23     policy was filed. Trailer and mobile home dealers are
24     exempt from this requirement.
25         If the permitted user has a liability insurance policy
26     that provides automobile liability insurance coverage of

 

 

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1     at least $100,000 for bodily injury to or the death of any
2     person, $300,000 for bodily injury to or the death of any 2
3     or more persons in any one accident, and $50,000 for damage
4     to property, then the permitted user's insurer shall be the
5     primary insurer and the dealer's insurer shall be the
6     secondary insurer. If the permitted user does not have a
7     liability insurance policy that provides automobile
8     liability insurance coverage of at least $100,000 for
9     bodily injury to or the death of any person, $300,000 for
10     bodily injury to or the death of any 2 or more persons in
11     any one accident, and $50,000 for damage to property, or
12     does not have any insurance at all, then the dealer's
13     insurer shall be the primary insurer and the permitted
14     user's insurer shall be the secondary insurer.
15         When a permitted user is "test driving" a new vehicle
16     dealer's automobile, the new vehicle dealer's insurance
17     shall be primary and the permitted user's insurance shall
18     be secondary.
19         As used in this paragraph 6, a "permitted user" is a
20     person who, with the permission of the new vehicle dealer
21     or an employee of the new vehicle dealer, drives a vehicle
22     owned and held for sale or lease by the new vehicle dealer
23     which the person is considering to purchase or lease, in
24     order to evaluate the performance, reliability, or
25     condition of the vehicle. The term "permitted user" also
26     includes a person who, with the permission of the new

 

 

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1     vehicle dealer, drives a vehicle owned or held for sale or
2     lease by the new vehicle dealer for loaner purposes while
3     the user's vehicle is being repaired or evaluated.
4         As used in this paragraph 6, "test driving" occurs when
5     a permitted user who, with the permission of the new
6     vehicle dealer or an employee of the new vehicle dealer,
7     drives a vehicle owned and held for sale or lease by a new
8     vehicle dealer that the person is considering to purchase
9     or lease, in order to evaluate the performance,
10     reliability, or condition of the vehicle.
11         As used in this paragraph 6, "loaner purposes" means
12     when a person who, with the permission of the new vehicle
13     dealer, drives a vehicle owned or held for sale or lease by
14     the new vehicle dealer while the user's vehicle is being
15     repaired or evaluated.
16         7. (A) An application for a new motor vehicle dealer's
17     license shall be accompanied by the following license fees:
18             $1,000 for applicant's established place of
19         business, and $100 for each additional place of
20         business, if any, to which the application pertains;
21         but if the application is made after June 15 of any
22         year, the license fee shall be $500 for applicant's
23         established place of business plus $50 for each
24         additional place of business, if any, to which the
25         application pertains. License fees shall be returnable
26         only in the event that the application is denied by the

 

 

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1         Secretary of State. All moneys received by the
2         Secretary of State as license fees under paragraph
3         (7)(A) of subsection (b) of this Section prior to
4         applications for the 2004 licensing year shall be
5         deposited into the Motor Vehicle Review Board Fund and
6         shall be used to administer the Motor Vehicle Review
7         Board under the Motor Vehicle Franchise Act. Of the
8         money received by the Secretary of State as license
9         fees under paragraph (7)(A) of subsection (b) of this
10         Section for the 2004 licensing year and thereafter, 10%
11         shall be deposited into the Motor Vehicle Review Board
12         Fund and shall be used to administer the Motor Vehicle
13         Review Board under the Motor Vehicle Franchise Act and
14         90% shall be deposited into the General Revenue Fund.
15             (B) An application for a new vehicle dealer's
16         license, other than for a new motor vehicle dealer's
17         license, shall be accompanied by the following license
18         fees:
19             $1,000 for applicant's established place of
20         business, and $50 for each additional place of
21         business, if any, to which the application pertains;
22         but if the application is made after June 15 of any
23         year, the license fee shall be $500 for applicant's
24         established place of business plus $25 for each
25         additional place of business, if any, to which the
26         application pertains. License fees shall be returnable

 

 

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1         only in the event that the application is denied by the
2         Secretary of State. Of the money received by the
3         Secretary of State as license fees under this
4         subsection for the 2004 licensing year and thereafter,
5         95% shall be deposited into the General Revenue Fund.
6         8. A statement that the applicant's officers,
7     directors, shareholders having a 10% or greater ownership
8     interest therein, proprietor, a partner, member, officer,
9     director, trustee, manager or other principals in the
10     business have not committed in the past 3 years any one
11     violation as determined in any civil, criminal or
12     administrative proceedings of any one of the following
13     Acts:
14             (A) The Anti Theft Laws of the Illinois Vehicle
15         Code;
16             (B) The Certificate of Title Laws of the Illinois
17         Vehicle Code;
18             (C) The Offenses against Registration and
19         Certificates of Title Laws of the Illinois Vehicle
20         Code;
21             (D) The Dealers, Transporters, Wreckers and
22         Rebuilders Laws of the Illinois Vehicle Code;
23             (E) Section 21-2 of the Criminal Code of 1961,
24         Criminal Trespass to Vehicles; or
25             (F) The Retailers' Occupation Tax Act.
26         9. A statement that the applicant's officers,

 

 

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1     directors, shareholders having a 10% or greater ownership
2     interest therein, proprietor, partner, member, officer,
3     director, trustee, manager or other principals in the
4     business have not committed in any calendar year 3 or more
5     violations, as determined in any civil, criminal or
6     administrative proceedings, of any one or more of the
7     following Acts:
8             (A) The Consumer Finance Act;
9             (B) The Consumer Installment Loan Act;
10             (C) The Retail Installment Sales Act;
11             (D) The Motor Vehicle Retail Installment Sales
12         Act;
13             (E) The Interest Act;
14             (F) The Illinois Wage Assignment Act;
15             (G) Part 8 of Article XII of the Code of Civil
16         Procedure; or
17             (H) The Consumer Fraud Act.
18         10. A bond or certificate of deposit in the amount of
19     $20,000 for each location at which the applicant intends to
20     act as a new vehicle dealer. The bond shall be for the term
21     of the license, or its renewal, for which application is
22     made, and shall expire not sooner than December 31 of the
23     year for which the license was issued or renewed. The bond
24     shall run to the People of the State of Illinois, with
25     surety by a bonding or insurance company authorized to do
26     business in this State. It shall be conditioned upon the

 

 

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1     proper transmittal of all title and registration fees and
2     taxes (excluding taxes under the Retailers' Occupation Tax
3     Act) accepted by the applicant as a new vehicle dealer.
4         11. Such other information concerning the business of
5     the applicant as the Secretary of State may by rule or
6     regulation prescribe.
7         12. A statement that the applicant understands Chapter
8     One through Chapter Five of this Code.
9     (c) Any change which renders no longer accurate any
10 information contained in any application for a new vehicle
11 dealer's license shall be amended within 30 days after the
12 occurrence of such change on such form as the Secretary of
13 State may prescribe by rule or regulation, accompanied by an
14 amendatory fee of $2.
15     (d) Anything in this Chapter 5 to the contrary
16 notwithstanding no person shall be licensed as a new vehicle
17 dealer unless:
18         1. He is authorized by contract in writing between
19     himself and the manufacturer or franchised distributor of
20     such make of vehicle to so sell the same in this State, and
21         2. Such person shall maintain an established place of
22     business as defined in this Act.
23     (e) The Secretary of State shall, within a reasonable time
24 after receipt, examine an application submitted to him under
25 this Section and unless he makes a determination that the
26 application submitted to him does not conform with the

 

 

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1 requirements of this Section or that grounds exist for a denial
2 of the application, under Section 5-501 of this Chapter, grant
3 the applicant an original new vehicle dealer's license in
4 writing for his established place of business and a
5 supplemental license in writing for each additional place of
6 business in such form as he may prescribe by rule or regulation
7 which shall include the following:
8         1. The name of the person licensed;
9         2. If a corporation, the name and address of its
10     officers or if a sole proprietorship, a partnership, an
11     unincorporated association or any similar form of business
12     organization, the name and address of the proprietor or of
13     each partner, member, officer, director, trustee or
14     manager;
15         3. In the case of an original license, the established
16     place of business of the licensee;
17         4. In the case of a supplemental license, the
18     established place of business of the licensee and the
19     additional place of business to which such supplemental
20     license pertains;
21         5. The make or makes of new vehicles which the licensee
22     is licensed to sell.
23     (f) The appropriate instrument evidencing the license or a
24 certified copy thereof, provided by the Secretary of State,
25 shall be kept posted conspicuously in the established place of
26 business of the licensee and in each additional place of

 

 

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

 

 

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1         4. A copy of the Uniform Invoice-transaction reporting
2     return referred to in Section 5-402 hereof;
3         5. In the case of a rebuilt vehicle, a copy of the
4     Disclosure of Rebuilt Vehicle Status; and
5         6. In the case of a vehicle for which the warranty has
6     been reinstated, a copy of the warranty.
7     (j) Except at the time of sale or repossession of the
8 vehicle, no person licensed as a new vehicle dealer may issue
9 any other person a newly created key to a vehicle unless the
10 new vehicle dealer makes a copy of the driver's license or
11 State identification card of the person requesting or obtaining
12 the newly created key. The new vehicle dealer must retain the
13 copy for 30 days.
14     A new vehicle dealer who violates this subsection (j) is
15 guilty of a petty offense. Violation of this subsection (j) is
16 not cause to suspend, revoke, cancel, or deny renewal of the
17 new vehicle dealer's license.
18     This amendatory Act of 1983 shall be applicable to the 1984
19 registration year and thereafter.
20 (Source: P.A. 92-391, eff. 8-16-01; 92-835, eff. 6-1-03; 93-32,
21 eff. 7-1-03.)