State of Illinois
92nd General Assembly
Legislation

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92_SB0547eng

 
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 1        AN ACT concerning vehicles.

 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
 5    changing Sections 2-124, 3-402.2, and 3-824 as follows:

 6        (625 ILCS 5/2-124) (from Ch. 95 1/2, par. 2-124)
 7        Sec. 2-124.  Audits, interest and penalties.
 8        (a)  Audits. The Secretary  of  State  or  employees  and
 9    agents  designated  by him, may audit the books, records, tax
10    returns, reports, and any and all other pertinent records  or
11    documents  of  any person licensed or registered, or required
12    to be licensed or registered, under any  provisions  of  this
13    Act,  for  the purpose of determining whether such person has
14    not paid any fees  or  taxes  required  to  be  paid  to  the
15    Secretary  of  State  and  due  to the State of Illinois. For
16    purposes of  this  Section,  "person"  means  an  individual,
17    corporation,  or partnership, or an officer or an employee of
18    any corporation, including  a  dissolved  corporation,  or  a
19    member  or an employee of any partnership, who as an officer,
20    employee, or member under  a  duty  to  perform  the  act  in
21    respect to which the violation occurs.
22        (b)  Joint  Audits. The Secretary of State may enter into
23    reciprocal audit agreements with officers, agents or agencies
24    of another State or States, for joint audits  of  any  person
25    subject to audit under this Act.
26        (c)  Special  Audits.  If  the  Secretary of State is not
27    satisfied  with  the  books,  records  and   documents   made
28    available  for  an  audit,  or  if  the Secretary of State is
29    unable to determine therefrom whether any fees or  taxes  are
30    due to the State of Illinois, or if there is cause to believe
31    that the person audited has declined or refused to supply the
 
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 1    books, records and documents necessary to determine whether a
 2    deficiency  exists,  the Secretary of State may either seek a
 3    court order for production of any and all books, records  and
 4    documents   he  deems  relevant  and  material,  or,  in  his
 5    discretion, the Secretary of State may instead  give  written
 6    notice  to  such  person requiring him to produce any and all
 7    books, records and documents necessary to properly audit  and
 8    determine  whether  any fees or taxes are due to the State of
 9    Illinois. If such person fails, refuses or declines to comply
10    with either the court order or written notice within the time
11    specified, the Secretary of State shall then order a  special
12    audit  at the expense of the person affected. Upon completion
13    of the special audit, the Secretary of State shall  determine
14    if  any fees or taxes required to be paid under this Act have
15    not been paid, and make an assessment of any deficiency based
16    upon the books, records and documents available to  him,  and
17    in  an  assessment, he may rely upon records of other persons
18    having an operation similar to that  of  the  person  audited
19    specially.  A person audited specially and subject to a court
20    order and in default thereof, shall in addition,  be  subject
21    to  any  penalty  or punishment imposed by the court entering
22    the order.
23        (d)  Deficiency; Audit Costs. When a deficiency is  found
24    and any fees or taxes required to be paid under this Act have
25    not  been  paid  to  the  State of Illinois, the Secretary of
26    State may impose an audit fee of $50  per  day,  or  $25  per
27    half-day,  per  auditor,  plus  in  the  case of out-of-state
28    travel, transportation expenses incurred by  the  auditor  or
29    auditors.  Where  more than one person is audited on the same
30    out-of-state trip, the additional transportation expenses may
31    be apportioned. The actual costs of a special audit shall  be
32    imposed upon the person audited.
33        (e)  Interest. When a deficiency is found and any fees or
34    taxes  required  to be paid under this Act have not been paid
 
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 1    to the State of Illinois, the amount of  the  deficiency,  if
 2    greater  than $100 for all registration years examined, shall
 3    also bear interest at the rate of 1/2  of  1%  per  month  or
 4    fraction  thereof,  from  the  date  when  the fee or tax due
 5    should have been paid  under  the  provisions  of  this  Act,
 6    subject to a maximum of 6% per annum.
 7        (f)  Willful  Negligence. When a deficiency is determined
 8    by the Secretary to be  caused  by  the  willful  neglect  or
 9    negligence  of the person audited, an additional 10% penalty,
10    that is 10% of the amount of the  deficiency  or  assessment,
11    shall  be imposed, and the 10% penalty shall bear interest at
12    the rate of 1/2 of 1% on and after the  30th  day  after  the
13    penalty is imposed until paid in full.
14        (g)  Fraud or Evasion. When a deficiency is determined by
15    the Secretary to be caused by fraud or willful evasion of the
16    provisions of this Act, an additional penalty, that is 20% of
17    the amount of the deficiency or assessment, shall be imposed,
18    and the 20% penalty shall bear interest at the rate of 1/2 of
19    1%  on  and  after  the 30th day after the penalty is imposed
20    until paid in full.
21        (h)  Notice. The Secretary of State  shall  give  written
22    notice to any person audited, of the amount of any deficiency
23    found or assessment made, of the costs of an audit or special
24    audit,  and of the penalty imposed, and payment shall be made
25    within 30 days of the date of the notice unless  such  person
26    petitions for a hearing.
27        However,  except in the case of fraud or willful evasion,
28    or the inaccessibility of books and records for audit or with
29    the express consent of the person audited,  no  notice  of  a
30    deficiency or assessment shall be issued by the Secretary for
31    more   than  3  registration  years.  This  limitation  shall
32    commence on any January 1 as to calendar  year  registrations
33    and  on  any  July  1  as  to fiscal year registrations. This
34    limitation shall not apply for any period  during  which  the
 
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 1    person affected has declined or refuses to make his books and
 2    records available for audit, nor during any period of time in
 3    which  an  Order  of any Court has the effect of enjoining or
 4    restraining the Secretary from making an audit or  issuing  a
 5    notice.  Notwithstanding,  each  person  licensed  under  the
 6    International  Registration Plan and audited by this State or
 7    any member  jurisdiction  shall  follow  the  assessment  and
 8    refund procedures as adopted and amended by the International
 9    Registration Plan members.  The Secretary of State shall have
10    the  final decision as to which registrants may be subject to
11    the netting of audit fees as outlined  in  the  International
12    Registration  Plan.   Persons  audited  may  be  subject to a
13    review process to determine the final outcome  of  the  audit
14    finding.   This process shall follow the adopted procedure as
15    outlined  in  the  International  Registration   Plan.    All
16    decisions by the IRP designated tribunal shall be binding.
17        (i)  Every  person  subject  to licensing or registration
18    and audit under the provisions of this Chapter  shall  retain
19    all  pertinent  licensing  and registration documents, books,
20    records, tax returns, reports and all supporting records  and
21    documents for a period of 4 years.
22        (j)  Hearings.  Any  person receiving written notice of a
23    deficiency or assessment may, within 30 days after  the  date
24    of the notice, petition for a hearing before the Secretary of
25    State  or  his  duly appointed hearing officer to contest the
26    audit  in  whole  or  in  part,  and  the  petitioner   shall
27    simultaneously  file  a  certified  check  or money order, or
28    certificate of deposit, or a  surety  bond  approved  by  the
29    Secretary  in  the  amount  of  the deficiency or assessment.
30    Hearings shall be held pursuant to the provisions of  Section
31    2-118 of this Act.
32        (k)  Judgments.  The  Secretary  of State may enforce any
33    notice of deficiency or assessment pursuant to the provisions
34    of Section 3-831 of this Act.
 
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 1    (Source: P.A. 89-570, eff. 7-26-96.)

 2        (625 ILCS 5/3-402.2) (from Ch. 95 1/2, par. 3-402.2)
 3        Sec. 3-402.2.  Audits.  In addition  to  audit  authority
 4    set  forth  in  Section  2-124  of this Act, the Secretary of
 5    State, when this state is the base  jurisdiction,  may  audit
 6    such  owners  displaying  a  base  plate  of this state as to
 7    authenticity of mileage figures and registrations and at such
 8    time and frequency as determined by the Secretary  of  State.
 9    Audits  may be made by officials of other jurisdictions which
10    are members of an International Registration  Plan  (IRP)  of
11    which this state is also a member.
12        Upon completion of any such audit, the Secretary of State
13    shall  notify  all  jurisdictions  in  which  such  owner was
14    proportionally registered on the accuracy of the  records  of
15    such  owner.   Should  such  owner have underpaid or overpaid
16    under paid  any  jurisdiction  in  which  his  vehicles  were
17    proportionally   registered,   such   information   shall  be
18    furnished to the jurisdiction for  processing  in  accordance
19    with  the  procedures  as  set  forth under the International
20    Registration Plan collection.
21    (Source: P.A. 87-206.)

22        (625 ILCS 5/3-824) (from Ch. 95 1/2, par. 3-824)
23        Sec. 3-824.  When fees returnable.
24        (a)  Whenever any application to the Secretary  of  State
25    is  accompanied  by  any  fee  as  required  by  law and such
26    application  is  refused  or  rejected,  said  fee  shall  be
27    returned to said applicant.
28        (b)  Whenever the Secretary of State collects any fee not
29    required to be paid under the provisions  of  this  Act,  the
30    same  shall  be  refunded  to the person paying the same upon
31    application therefor made within 6 months after the  date  of
32    such  payment,  except  as follows:  (1) whenever a refund is
 
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 1    determined to be due and owing as a result of  an  audit,  by
 2    this State or any other state or province, in accordance with
 3    Section 2-124 of this Code, of a prorate or apportion license
 4    fee  payment  pursuant to any reciprocal compact or agreement
 5    between this State and any other state or province,  and  the
 6    Secretary  for any reason fails to promptly make such refund,
 7    the licensee shall  have  one  year  from  the  date  of  the
 8    notification of the audit result to file, with the Secretary,
 9    an  application  for  refund  found  to be due and owing as a
10    result of such audit; and (2) whenever a person eligible  for
11    a  reduced  registration  fee  pursuant to Section 3-806.3 of
12    this Code has paid in excess of the reduced registration  fee
13    owed,  the  refund applicant shall have 2 years from the date
14    of overpayment to apply with the Secretary for  a  refund  of
15    that  part  of  payment  made  in  excess  of the established
16    reduced registration fee.
17        (c)  Whenever a person dies after making application  for
18    registration,  application  for  a refund of the registration
19    fees and taxes may be made if the vehicle  is  then  sold  or
20    disposed  of  so  that  the registration plates, registration
21    sticker and card are never  used.   The  Secretary  of  State
22    shall  refund  the  registration  fees and taxes upon receipt
23    within 6 months after the application for registration of  an
24    application   for   refund   accompanied   with   the  unused
25    registration plates or  registration  sticker  and  card  and
26    proof  of  both  the  death  of the applicant and the sale or
27    disposition of the vehicle.
28        (d)  Any application for refund received after the times
29    specified in this Section shall be denied and  the  applicant
30    in  order  to  receive  a  refund  must apply to the Court of
31    Claims.
32        (e)  The Secretary of State is authorized to  maintain  a
33    two  signature  revolving  checking  account  with a suitable
34    commercial  bank  for   the   purpose   of   depositing   and
 
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 1    withdrawal-for-return  those  monies  received and determined
 2    upon receipt to  be  in  excess  of  the  amount  or  amounts
 3    required by law.
 4        (f)  Refunds  on  audits performed by Illinois or another
 5    member of the International Registration Plan shall  be  made
 6    in  accordance  with  the  procedures  as  set  forth  in the
 7    agreement.
 8    (Source: P.A. 86-131.)

 9        Section 99.  Effective date.  This Act takes effect  upon
10    becoming law.

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