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92_SB0115eng SB115 Engrossed LRB9200602DHmb 1 AN ACT to amend the Illinois Vehicle Code by changing 2 Sections 5-101 and 5-102. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Vehicle Code is amended by 6 changing Sections 5-101 and 5-102 as follows: 7 (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101) 8 Sec. 5-101. New vehicle dealers must be licensed. 9 (a) No person shall engage in this State in the business 10 of selling or dealing in, on consignment or otherwise, new 11 vehicles of any make, or act as an intermediary or agent or 12 broker for any licensed dealer or vehicle purchaser other 13 than as a salesperson, or represent or advertise that he is 14 so engaged or intends to so engage in such business unless 15 licensed to do so in writing by the Secretary of State under 16 the provisions of this Section. 17 (b) An application for a new vehicle dealer's license 18 shall be filed with the Secretary of State, duly verified by 19 oath, on 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 of 22 the applicant and his established and additional places 23 of business, if any, in this State. 24 2. If the applicant is a corporation, a list of its 25 officers, directors, and shareholders having a ten 26 percent or greater ownership interest in the corporation, 27 setting forth the residence address of each; if the 28 applicant is a sole proprietorship, a partnership, an 29 unincorporated association, a trust, or any similar form 30 of business organization, the name and residence address 31 of the proprietor or of each partner, member, officer, SB115 Engrossed -2- LRB9200602DHmb 1 director, trustee, or manager. 2 3. The make or makes of new vehicles which the 3 applicant will offer for sale at retail in this State. 4 4. The name of each manufacturer or franchised 5 distributor, if any, of new vehicles with whom the 6 applicant has contracted for the sale of such new 7 vehicles. As evidence of this fact, the application shall 8 be accompanied by a signed statement from each such 9 manufacturer or franchised distributor. If the applicant 10 is in the business of offering for sale new conversion 11 vehicles, trucks or vans, except for trucks modified to 12 serve a special purpose which includes but is not limited 13 to the following vehicles: street sweepers, fertilizer 14 spreaders, emergency vehicles, implements of husbandry or 15 maintenance type vehicles, he must furnish evidence of a 16 sales and service agreement from both the chassis 17 manufacturer and second stage manufacturer. 18 5. A statement that the applicant has been approved 19 for registration under the Retailers' Occupation Tax Act 20 by the Department of Revenue: Provided that this 21 requirement does not apply to a dealer who is already 22 licensed hereunder with the Secretary of State, and who 23 is merely applying for a renewal of his license. As 24 evidence of this fact, the application shall be 25 accompanied by a certification from the Department of 26 Revenue showing that that Department has approved the 27 applicant for registration under the Retailers' 28 Occupation Tax Act. 29 6. A statement that the applicant has complied with 30 the appropriate liability insurance requirement. A 31 Certificate of Insurance in a solvent company authorized 32 to do business in the State of Illinois shall be included 33 with each application covering each location at which he 34 proposes to act as a new vehicle dealer. The policy must SB115 Engrossed -3- LRB9200602DHmb 1 provide liability coverage in the minimum amounts of 2 $100,000 for bodily injury to, or death of, any person, 3 $300,000 for bodily injury to, or death of, two or more 4 persons in any one accident, and $50,000 for damage to 5 property. Such policy shall expire not sooner than 6 December 31 of the year for which the license was issued 7 or renewed. The expiration of the insurance policy shall 8 not terminate the liability under the policy arising 9 during the period for which the policy was filed. 10 Trailer and mobile home dealers are exempt from this 11 requirement. 12 7. (A) An application for a new motor vehicle 13 dealer's license shall be accompanied by the 14 following license fees: 15 $100 for applicant's established place of 16 business, and $50 for each additional place of 17 business, if any, to which the application pertains; 18 but if the application is made after June 15 of any 19 year, the license fee shall be $50 for applicant's 20 established place of business plus $25 for each 21 additional place of business, if any, to which the 22 application pertains. License fees shall be 23 returnable only in the event that the application is 24 denied by the Secretary of State. All moneys 25 received by the Secretary of State as license fees 26 under this Section shall be deposited into the Motor 27 Vehicle Review Board Fund and shall be used to 28 administer the Motor Vehicle Review Board under the 29 Motor Vehicle Franchise Act. 30 (B) An application for a new vehicle dealer's 31 license, other than for a new motor vehicle dealer's 32 license, shall be accompanied by the following 33 license fees: 34 $50 for applicant's established place of SB115 Engrossed -4- LRB9200602DHmb 1 business, and $25 for each additional place of 2 business, if any, to which the application pertains; 3 but if the application is made after June 15 of any 4 year, the license fee shall be $25 for applicant's 5 established place of business plus $12.50 for each 6 additional place of business, if any, to which the 7 application pertains. License fees shall be 8 returnable only in the event that the application is 9 denied by the Secretary of State. 10 8. A statement that the applicant's officers, 11 directors, shareholders having a 10% or greater ownership 12 interest therein, proprietor, a partner, member, officer, 13 director, trustee, manager or other principals in the 14 business have not committed in the past 3 years any one 15 violation as determined in any civil, criminal or 16 administrative proceedings of any one of the following 17 Acts: 18 (A) The Anti Theft Laws of the Illinois 19 Vehicle Code; 20 (B) The Certificate of Title Laws of the 21 Illinois Vehicle Code; 22 (C) The Offenses against Registration and 23 Certificates of Title Laws of the Illinois Vehicle 24 Code; 25 (D) The Dealers, Transporters, Wreckers and 26 Rebuilders Laws of the Illinois Vehicle Code; 27 (E) Section 21-2 of the Criminal Code of 1961, 28 Criminal Trespass to Vehicles; or 29 (F) The Retailers' Occupation Tax Act. 30 9. A statement that the applicant's officers, 31 directors, shareholders having a 10% or greater ownership 32 interest therein, proprietor, partner, member, officer, 33 director, trustee, manager or other principals in the 34 business have not committed in any calendar year 3 or SB115 Engrossed -5- LRB9200602DHmb 1 more violations, as determined in any civil, criminal or 2 administrative proceedings, of any one or more of the 3 following Acts: 4 (A) The Consumer Finance Act; 5 (B) The Consumer Installment Loan Act; 6 (C) The Retail Installment Sales Act; 7 (D) The Motor Vehicle Retail Installment Sales 8 Act; 9 (E) The Interest Act; 10 (F) The Illinois Wage Assignment Act; 11 (G) Part 8 of Article XII of the Code of Civil 12 Procedure; or 13 (H) The Consumer Fraud Act. 14 10. A bond or certificate of deposit in the amount 15 of $20,000 for each location at which the applicant 16 intends to act as a new vehicle dealer. The bond shall 17 be for the term of the license, or its renewal, for which 18 application is made, and shall expire not sooner than 19 December 31 of the year for which the license was issued 20 or renewed. The bond shall run to the People of the 21 State of Illinois, with surety by a bonding or insurance 22 company authorized to do business in this State. It 23 shall be conditioned upon the proper transmittal of all 24 title and registration fees and taxes (excluding taxes 25 under the Retailers' Occupation Tax Act) accepted by the 26 applicant as a new vehicle dealer. 27 11. Such other information concerning the business 28 of the applicant as the Secretary of State may by rule or 29 regulation prescribe. 30 12. A statement that the applicant understands 31 Chapter One through Chapter Five of this Code. 32 (c) Any change which renders no longer accurate any 33 information contained in any application for a new vehicle 34 dealer's license shall be amended within 30 days after the SB115 Engrossed -6- LRB9200602DHmb 1 occurrence of such change on such form as the Secretary of 2 State may prescribe by rule or regulation, accompanied by an 3 amendatory fee of $2. 4 (d) Anything in this Chapter 5 to the contrary 5 notwithstanding no person shall be licensed as a new vehicle 6 dealer unless: 7 1. He is authorized by contract in writing between 8 himself and the manufacturer or franchised distributor of 9 such make of vehicle to so sell the same in this State, 10 and 11 2. Such person shall maintain an established place 12 of business as defined in this Act. 13 (e) The Secretary of State shall, within a reasonable 14 time after receipt, examine an application submitted to him 15 under this Section and unless he makes a determination that 16 the application submitted to him does not conform with the 17 requirements of this Section or that grounds exist for a 18 denial of the application, under Section 5-501 of this 19 Chapter, grant the applicant an original new vehicle dealer's 20 license in writing for his established place of business and 21 a supplemental license in writing for each additional place 22 of business in such form as he may prescribe by rule or 23 regulation which shall include the following: 24 1. The name of the person licensed; 25 2. If a corporation, the name and address of its 26 officers or if a sole proprietorship, a partnership, an 27 unincorporated association or any similar form of 28 business organization, the name and address of the 29 proprietor or of each partner, member, officer, director, 30 trustee or manager; 31 3. In the case of an original license, the 32 established place of business of the licensee; 33 4. In the case of a supplemental license, the 34 established place of business of the licensee and the SB115 Engrossed -7- LRB9200602DHmb 1 additional place of business to which such supplemental 2 license pertains; 3 5. The make or makes of new vehicles which the 4 licensee is licensed to sell. 5 (f) The appropriate instrument evidencing the license or 6 a certified copy thereof, provided by the Secretary of State, 7 shall be kept posted conspicuously in the established place 8 of business of the licensee and in each additional place of 9 business, if any, maintained by such licensee. 10 (g) Except as provided in subsection (h) hereof, all new 11 vehicle dealer's licenses granted under this Section shall 12 expire by operation of law on December 31 of the calendar 13 year for which they are granted unless sooner revoked or 14 cancelled under the provisions of Section 5-501 of this 15 Chapter. 16 (h) A new vehicle dealer's license may be renewed upon 17 application and payment of the fee required herein, and 18 submission of proof of coverage under an approved bond under 19 the "Retailers' Occupation Tax Act" or proof that applicant 20 is not subject to such bonding requirements, as in the case 21 of an original license, but in case an application for the 22 renewal of an effective license is made during the month of 23 December, the effective license shall remain in force until 24 the application is granted or denied by the Secretary of 25 State. 26 (i) All persons licensed as a new vehicle dealer are 27 required to furnish each purchaser of a motor vehicle: 28 1. In the case of a new vehicle a manufacturer's 29 statement of origin and in the case of a used motor 30 vehicle a certificate of title, in either case properly 31 assigned to the purchaser; 32 2. A statement verified under oath that all 33 identifying numbers on the vehicle agree with those on 34 the certificate of title or manufacturer's statement of SB115 Engrossed -8- LRB9200602DHmb 1 origin; 2 3. A bill of sale properly executed on behalf of 3 such person; 4 4. A copy of the Uniform Invoice-transaction 5 reporting return referred to in Section 5-402 hereof; 6 5. In the case of a rebuilt vehicle, a copy of the 7 Disclosure of Rebuilt Vehicle Status; and 8 6. In the case of a vehicle for which the warranty 9 has been reinstated, a copy of the warranty. 10 (j) Except at the time of sale or repossession of the 11 vehicle, no person licensed as a new vehicle dealer may issue 12 to any other person a newly created key to a vehicle unless 13 (i) the new vehicle dealer has contacted the vehicle dealer 14 from whom the vehicle was purchased and has confirmed that 15 the person requesting the newly created key is the person who 16 purchased the vehicle or (ii) that person can prove that he 17 or she is the owner or lessee of that vehicle by presenting 18 any of the following: 19 (1) The certificate of title. 20 (2) The motor vehicle registration card. 21 (3) The purchase documents or finance contract. 22 (4) The rental or lease agreement. 23 The new vehicle dealer must make a copy of the driver's 24 license or State identification card of the person requesting 25 the newly created key and must retain the copy for 6 months. 26 A new vehicle dealer who violates this subsection (j) is 27 guilty of a petty offense. Violation of this subsection (j) 28 is not cause to suspend, revoke, cancel, or deny renewal of 29 the new vehicle dealer's license. 30 This amendatory Act of 1983 shall be applicable to the 31 1984 registration year and thereafter. 32 (Source: P.A. 88-158; 89-145, eff. 7-14-95; 89-189, eff. 33 1-1-96; 89-433, eff. 12-15-95.) SB115 Engrossed -9- LRB9200602DHmb 1 (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102) 2 Sec. 5-102. Used vehicle dealers must be licensed. 3 (a) No person, other than a licensed new vehicle dealer, 4 shall engage in the business of selling or dealing in, on 5 consignment or otherwise, 5 or more used vehicles of any make 6 during the year (except house trailers as authorized by 7 paragraph (j) of this Section and rebuilt salvage vehicles 8 sold by their rebuilders to persons licensed under this 9 Chapter), or act as an intermediary, agent or broker for any 10 licensed dealer or vehicle purchaser (other than as a 11 salesperson) or represent or advertise that he is so engaged 12 or intends to so engage in such business unless licensed to 13 do so by the Secretary of State under the provisions of this 14 Section. 15 (b) An application for a used vehicle dealer's license 16 shall be filed with the Secretary of State, duly verified by 17 oath, in such form as the Secretary of State may by rule or 18 regulation prescribe and shall contain: 19 1. The name and type of business organization 20 established and additional places of business, if any, in 21 this State. 22 2. If the applicant is a corporation, a list of its 23 officers, directors, and shareholders having a ten 24 percent or greater ownership interest in the corporation, 25 setting forth the residence address of each; if the 26 applicant is a sole proprietorship, a partnership, an 27 unincorporated association, a trust, or any similar form 28 of business organization, the names and residence address 29 of the proprietor or of each partner, member, officer, 30 director, trustee or manager. 31 3. A statement that the applicant has been approved 32 for registration under the Retailers' Occupation Tax Act 33 by the Department of Revenue. However, this requirement 34 does not apply to a dealer who is already licensed SB115 Engrossed -10- LRB9200602DHmb 1 hereunder with the Secretary of State, and who is merely 2 applying for a renewal of his license. As evidence of 3 this fact, the application shall be accompanied by a 4 certification from the Department of Revenue showing that 5 the Department has approved the applicant for 6 registration under the Retailers' Occupation Tax Act. 7 4. A statement that the applicant has complied with 8 the appropriate liability insurance requirement. A 9 Certificate of Insurance in a solvent company authorized 10 to do business in the State of Illinois shall be included 11 with each application covering each location at which he 12 proposes to act as a used vehicle dealer. The policy 13 must provide liability coverage in the minimum amounts of 14 $100,000 for bodily injury to, or death of, any person, 15 $300,000 for bodily injury to, or death of, two or more 16 persons in any one accident, and $50,000 for damage to 17 property. Such policy shall expire not sooner than 18 December 31 of the year for which the license was issued 19 or renewed. The expiration of the insurance policy shall 20 not terminate the liability under the policy arising 21 during the period for which the policy was filed. 22 Trailer and mobile home dealers are exempt from this 23 requirement. 24 5. An application for a used vehicle dealer's 25 license shall be accompanied by the following license 26 fees: 27 $50 for applicant's established place of business, 28 and $25 for each additional place of business, if any, to 29 which the application pertains; however, if the 30 application is made after June 15 of any year, the 31 license fee shall be $25 for applicant's established 32 place of business plus $12.50 for each additional place 33 of business, if any, to which the application pertains. 34 License fees shall be returnable only in the event that SB115 Engrossed -11- LRB9200602DHmb 1 the application is denied by the Secretary of State. 2 6. A statement that the applicant's officers, 3 directors, shareholders having a 10% or greater ownership 4 interest therein, proprietor, partner, member, officer, 5 director, trustee, manager or other principals in the 6 business have not committed in the past 3 years any one 7 violation as determined in any civil, criminal or 8 administrative proceedings of any one of the following 9 Acts: 10 (A) The Anti Theft Laws of the Illinois 11 Vehicle Code; 12 (B) The Certificate of Title Laws of the 13 Illinois Vehicle Code; 14 (C) The Offenses against Registration and 15 Certificates of Title Laws of the Illinois Vehicle 16 Code; 17 (D) The Dealers, Transporters, Wreckers and 18 Rebuilders Laws of the Illinois Vehicle Code; 19 (E) Section 21-2 of the Illinois Criminal Code 20 of 1961, Criminal Trespass to Vehicles; or 21 (F) The Retailers' Occupation Tax Act. 22 7. A statement that the applicant's officers, 23 directors, shareholders having a 10% or greater ownership 24 interest therein, proprietor, partner, member, officer, 25 director, trustee, manager or other principals in the 26 business have not committed in any calendar year 3 or 27 more violations, as determined in any civil or criminal 28 or administrative proceedings, of any one or more of the 29 following Acts: 30 (A) The Consumer Finance Act; 31 (B) The Consumer Installment Loan Act; 32 (C) The Retail Installment Sales Act; 33 (D) The Motor Vehicle Retail Installment Sales 34 Act; SB115 Engrossed -12- LRB9200602DHmb 1 (E) The Interest Act; 2 (F) The Illinois Wage Assignment Act; 3 (G) Part 8 of Article XII of the Code of Civil 4 Procedure; or 5 (H) The Consumer Fraud Act. 6 8. A bond or Certificate of Deposit in the amount 7 of $20,000 for each location at which the applicant 8 intends to act as a used vehicle dealer. The bond shall 9 be for the term of the license, or its renewal, for which 10 application is made, and shall expire not sooner than 11 December 31 of the year for which the license was issued 12 or renewed. The bond shall run to the People of the 13 State of Illinois, with surety by a bonding or insurance 14 company authorized to do business in this State. It 15 shall be conditioned upon the proper transmittal of all 16 title and registration fees and taxes (excluding taxes 17 under the Retailers' Occupation Tax Act) accepted by the 18 applicant as a used vehicle dealer. 19 9. Such other information concerning the business 20 of the applicant as the Secretary of State may by rule or 21 regulation prescribe. 22 10. A statement that the applicant understands 23 Chapter 1 through Chapter 5 of this Code. 24 (c) Any change which renders no longer accurate any 25 information contained in any application for a used vehicle 26 dealer's license shall be amended within 30 days after the 27 occurrence of each change on such form as the Secretary of 28 State may prescribe by rule or regulation, accompanied by an 29 amendatory fee of $2. 30 (d) Anything in this Chapter to the contrary 31 notwithstanding, no person shall be licensed as a used 32 vehicle dealer unless such person maintains an established 33 place of business as defined in this Chapter. 34 (e) The Secretary of State shall, within a reasonable SB115 Engrossed -13- LRB9200602DHmb 1 time after receipt, examine an application submitted to him 2 under this Section. Unless the Secretary makes a 3 determination that the application submitted to him does not 4 conform to this Section or that grounds exist for a denial of 5 the application under Section 5-501 of this Chapter, he must 6 grant the applicant an original used vehicle dealer's license 7 in writing for his established place of business and a 8 supplemental license in writing for each additional place of 9 business in such form as he may prescribe by rule or 10 regulation which shall 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 15 business organization, the name and address of the 16 proprietor or of each partner, member, officer, director, 17 trustee or 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 25 a certified copy thereof, provided by the Secretary of State 26 shall be kept posted, conspicuously, in the established place 27 of business of the licensee and in each additional place of 28 business, if any, maintained by such licensee. 29 (g) Except as provided in subsection (h) of this 30 Section, all used vehicle dealer's licenses granted under 31 this Section expire by operation of law on December 31 of the 32 calendar year for which they are granted unless sooner 33 revoked or cancelled under Section 5-501 of this Chapter. 34 (h) A used vehicle dealer's license may be renewed upon SB115 Engrossed -14- LRB9200602DHmb 1 application and payment of the fee required herein, and 2 submission of proof of coverage by an approved bond under the 3 "Retailers' Occupation Tax Act" or proof that applicant is 4 not subject to such bonding requirements, as in the case of 5 an original license, but in case an application for the 6 renewal of an effective license is made during the month of 7 December, the effective license shall remain in force until 8 the application for renewal is granted or denied by the 9 Secretary of State. 10 (i) All persons licensed as a used vehicle dealer are 11 required to furnish each purchaser of a motor vehicle: 12 1. A certificate of title properly assigned to the 13 purchaser; 14 2. A statement verified under oath that all 15 identifying numbers on the vehicle agree with those on 16 the certificate of title; 17 3. A bill of sale properly executed on behalf of 18 such person; 19 4. A copy of the Uniform Invoice-transaction 20 reporting return referred to in Section 5-402 of this 21 Chapter; 22 5. In the case of a rebuilt vehicle, a copy of the 23 Disclosure of Rebuilt Vehicle Status; and 24 6. In the case of a vehicle for which the warranty 25 has been reinstated, a copy of the warranty. 26 (j) A real estate broker holding a valid certificate of 27 registration issued pursuant to "The Real Estate Brokers and 28 Salesmen License Act" may engage in the business of selling 29 or dealing in house trailers not his own without being 30 licensed as a used vehicle dealer under this Section; however 31 such broker shall maintain a record of the transaction 32 including the following: 33 (1) the name and address of the buyer and seller, 34 (2) the date of sale, SB115 Engrossed -15- LRB9200602DHmb 1 (3) a description of the mobile home, including the 2 vehicle identification number, make, model, and year, and 3 (4) the Illinois certificate of title number. 4 The foregoing records shall be available for inspection 5 by any officer of the Secretary of State's Office at any 6 reasonable hour. 7 (k) Except at the time of sale or repossession of the 8 vehicle, no person licensed as a used vehicle dealer may 9 issue to any other person a newly created key to a vehicle 10 unless (i) the used vehicle dealer has contacted the vehicle 11 dealer from whom the vehicle was purchased and has confirmed 12 that the person requesting the newly created key is the 13 person who purchased the vehicle or (ii) that person can 14 prove that he or she is the owner or lessee of that vehicle 15 by presenting any of the following: 16 (1) The certificate of title. 17 (2) The motor vehicle registration card. 18 (3) The purchase documents or finance contract. 19 (4) The rental or lease agreement. 20 The used vehicle dealer must make a copy of the driver's 21 license State identification card of the person requesting 22 the newly created key and must retain the copy for 6 months. 23 A used vehicle dealer who violates this subsection (k) is 24 guilty of a petty offense. Violation of this subsection (k) 25 is not cause to suspend, revoke, cancel, or deny renewal of 26 the used vehicle dealer's license. 27 (Source: P.A. 88-158; 89-189, eff. 1-1-96.) 28 Section 99. Effective date. This Act takes effect upon 29 becoming law.