Full Text of HB5248 95th General Assembly
HB5248 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB5248
Introduced , by Rep. Chapin Rose SYNOPSIS AS INTRODUCED: |
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625 ILCS 5/5-101 |
from Ch. 95 1/2, par. 5-101 |
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Amends the Illinois Vehicle Code. Makes a technical change in a
Section concerning new vehicle dealers.
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A BILL FOR
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HB5248 |
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LRB095 17950 LCT 44032 b |
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| AN ACT concerning transportation.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Vehicle Code is amended by changing | 5 |
| Section 5-101 as follows:
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| (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
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| Sec. 5-101. New vehicle dealers must be licensed.
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| (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
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| 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:
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| 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.
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| 2. If the applicant is a corporation, a list of its |
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| 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
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| organization, the name and residence address of the | 7 |
| proprietor or of
each partner, member, officer, director, | 8 |
| trustee, or manager.
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| 3. The make or makes of new vehicles which the | 10 |
| applicant will offer
for sale at retail in this State.
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| 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
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| 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.
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| 5. A statement that the applicant has been approved for | 26 |
| registration
under the Retailers' Occupation Tax Act by the |
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| 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.
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| 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
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| policy was filed. Trailer and mobile home dealers are | 24 |
| exempt from this
requirement.
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| If the permitted user has a liability insurance policy | 26 |
| that provides
automobile
liability insurance coverage of |
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| at least $100,000 for bodily injury to or the
death of any
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| 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.
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| 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.
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| 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
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| which the person is considering
to purchase or lease, in | 24 |
| order to evaluate the performance, reliability, or
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| condition of the vehicle.
The term "permitted user" also | 26 |
| includes a person who, with the permission of
the new
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| 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.
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| 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.
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| 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.
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| 7. (A) An application for a new motor vehicle dealer's | 17 |
| license shall be
accompanied by the following license fees:
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| $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
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| application pertains. License fees shall be returnable | 26 |
| only in the event that
the application is denied by the |
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| Secretary of State.
All moneys received by the | 2 |
| Secretary of State as license fees under paragraph
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| (7)(A) of subsection (b) of this Section prior to | 4 |
| applications for the 2004
licensing year
shall be
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| 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
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| 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.
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| (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:
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| $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
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| additional
place of business, if any, to which the | 26 |
| application pertains. License fees
shall be returnable |
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| only in the event that the application is denied by the
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| 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,
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| 95% shall be deposited into the General Revenue Fund.
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| 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
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| administrative proceedings of any one of the following | 13 |
| Acts:
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| (A) The Anti Theft Laws of the Illinois Vehicle | 15 |
| Code;
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| (B) The Certificate of Title Laws of the Illinois | 17 |
| Vehicle Code;
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| (C) The Offenses against Registration and | 19 |
| Certificates of Title
Laws of the Illinois Vehicle | 20 |
| Code;
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| (D) The Dealers, Transporters, Wreckers and | 22 |
| Rebuilders
Laws of the Illinois Vehicle Code;
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| (E) Section 21-2 of the Criminal Code of 1961, | 24 |
| Criminal Trespass to
Vehicles; or
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| (F) The Retailers' Occupation Tax Act.
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| 9. A statement that the applicant's officers, |
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| 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
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| administrative proceedings, of any one or more of the | 7 |
| following Acts:
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| (A) The Consumer Finance Act;
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| (B) The Consumer Installment Loan Act;
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| (C) The Retail Installment Sales Act;
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| (D) The Motor Vehicle Retail Installment Sales | 12 |
| Act;
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| (E) The Interest Act;
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| (F) The Illinois Wage Assignment Act;
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| (G) Part 8 of Article XII of the Code of Civil | 16 |
| Procedure; or
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| (H) The Consumer Fraud Act.
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| 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
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| 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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| proper transmittal of all title and registration fees and
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| taxes (excluding taxes under the Retailers' Occupation Tax | 3 |
| Act) accepted by the
applicant as a new vehicle dealer.
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| 11. Such other information concerning the business of | 5 |
| the applicant as
the Secretary of State may by rule or | 6 |
| regulation prescribe.
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| 12. A statement that the applicant understands Chapter | 8 |
| One through
Chapter Five of this Code.
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| (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.
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| (d) Anything in this Chapter 5 to the contrary | 16 |
| notwithstanding no
person shall be licensed as a new vehicle | 17 |
| dealer unless:
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| 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
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| 2. Such person shall maintain an established place of | 22 |
| business as
defined in this Act.
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| (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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| 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
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| 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:
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| 1. The name of the person licensed;
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| 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
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| manager;
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| 3. In the case of an original license, the established | 16 |
| place of
business of the licensee;
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| 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;
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| 5. The make or makes of new vehicles which the licensee | 22 |
| is licensed
to sell.
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| (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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| business, if any, maintained by such
licensee.
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| (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.
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| (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.
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| (i) All persons licensed as a new vehicle dealer are | 17 |
| required to
furnish each purchaser of a motor vehicle:
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| 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;
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| 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;
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| 3. A bill of sale properly executed on behalf of such | 26 |
| person;
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| 4. A copy of the Uniform Invoice-transaction reporting | 2 |
| return
referred to in Section 5-402 hereof;
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| 5. In the case of a rebuilt vehicle, a copy of the | 4 |
| Disclosure of Rebuilt
Vehicle Status; and
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| 6. In the case of a vehicle for which the warranty has | 6 |
| been reinstated, a
copy of the warranty.
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| (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.
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| 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.
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| This amendatory Act of 1983 shall be applicable to the 1984 | 19 |
| registration
year and thereafter.
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| (Source: P.A. 92-391, eff. 8-16-01; 92-835, eff. 6-1-03; 93-32, | 21 |
| eff. 7-1-03.)
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