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Public Act 096-0678 |
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AN ACT concerning transportation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Vehicle Code is amended by changing | ||||
Section 5-102 and by adding Section 5-102.5 as follows:
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(625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
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Sec. 5-102. Used vehicle dealers must be licensed.
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(a) No person, other than a licensed new vehicle dealer, | ||||
shall engage in
the business of selling or dealing in, on | ||||
consignment or otherwise, 5 or
more used vehicles of any make | ||||
during the year (except house trailers as
authorized by | ||||
paragraph (j) of this Section and rebuilt salvage vehicles
sold | ||||
by their rebuilders to persons licensed under this Chapter), or | ||||
act as
an intermediary, agent or broker for any licensed dealer | ||||
or vehicle
purchaser (other than as a salesperson) or represent | ||||
or advertise that he
is so engaged or intends to so engage in | ||||
such business unless licensed to
do so by the Secretary of | ||||
State under the provisions of this Section.
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(b) An application for a used vehicle dealer's license | ||||
shall be
filed with the Secretary of State, duly verified by | ||||
oath, in such form
as the Secretary of State may by rule or | ||||
regulation prescribe and shall
contain:
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1. The name and type of business organization |
established and additional
places of business, if any, in | ||
this State.
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2. If the applicant is a corporation, a list of its | ||
officers,
directors, and shareholders having a ten percent | ||
or greater ownership
interest in the corporation, setting | ||
forth the residence address of
each; if the applicant is a | ||
sole proprietorship, a partnership, an
unincorporated | ||
association, a trust, or any similar form of business
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organization, the names and residence address of the | ||
proprietor or of
each partner, member, officer, director, | ||
trustee or manager.
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3. A statement that the applicant has been approved for | ||
registration
under the Retailers' Occupation Tax Act by the | ||
Department of Revenue. However,
this requirement does not | ||
apply to a dealer who is already licensed
hereunder with | ||
the Secretary of State, and who is merely applying for a
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renewal of his license. As evidence of this fact, the | ||
application shall be
accompanied by a certification from | ||
the Department of Revenue showing that
the Department has | ||
approved the applicant for registration under the
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Retailers' Occupation Tax Act.
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4. A statement that the applicant has complied with the | ||
appropriate
liability insurance requirement. A Certificate | ||
of Insurance in a solvent
company authorized to do business | ||
in the State of Illinois shall be included
with each | ||
application covering each location at which he proposes to |
act
as a used vehicle dealer. The policy must provide | ||
liability coverage in
the minimum amounts of $100,000 for | ||
bodily injury to, or death of, any person,
$300,000 for | ||
bodily injury to, or death of, two or more persons in any | ||
one
accident, and $50,000 for damage to property. Such | ||
policy shall expire
not sooner than December 31 of the year | ||
for which the license was issued
or renewed. The expiration | ||
of the insurance policy shall not terminate
the liability | ||
under the policy arising during the period for which the | ||
policy
was filed. Trailer and mobile home dealers are | ||
exempt from this requirement.
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If the permitted user has a liability insurance policy | ||
that provides
automobile
liability insurance coverage of | ||
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 | ||
or more persons in
any one
accident, and $50,000 for damage | ||
to property,
then the permitted user's insurer shall be the | ||
primary
insurer and the
dealer's insurer shall be the | ||
secondary insurer. If the permitted user does not
have a | ||
liability
insurance policy that provides automobile | ||
liability insurance coverage of at
least
$100,000 for | ||
bodily injury to or the death of any person, $300,000 for | ||
bodily
injury to or
the death of any 2 or more persons in | ||
any one accident, and $50,000 for damage
to
property, or | ||
does not have any insurance at all,
then the
dealer's
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insurer shall be the primary insurer and the permitted |
user's insurer shall be
the secondary
insurer.
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When a permitted user is "test driving" a used vehicle | ||
dealer's automobile,
the used vehicle dealer's insurance | ||
shall be primary and the permitted user's
insurance shall | ||
be secondary.
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As used in this paragraph 4, a "permitted user" is a | ||
person who, with the
permission of the used vehicle dealer | ||
or an employee of the used vehicle
dealer, drives a vehicle | ||
owned and held for sale or lease by the used vehicle
dealer | ||
which the person is considering to purchase or lease, in | ||
order to
evaluate the performance, reliability, or | ||
condition of the vehicle.
The term "permitted user" also | ||
includes a person who, with the permission of
the used
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vehicle dealer, drives a vehicle owned or held for sale or | ||
lease by the used
vehicle dealer
for loaner purposes while | ||
the user's vehicle is being repaired or evaluated.
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As used in this paragraph 4, "test driving" occurs when | ||
a permitted user
who,
with the permission of the used | ||
vehicle dealer or an employee of the used
vehicle
dealer, | ||
drives a vehicle owned and held for sale or lease by a used | ||
vehicle
dealer that the person is considering to purchase | ||
or lease, in order to
evaluate the performance, | ||
reliability, or condition of the
vehicle.
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As used in this paragraph 4, "loaner purposes" means | ||
when a person who,
with the permission of the used vehicle | ||
dealer, drives a vehicle owned or held
for sale or lease by |
the used vehicle dealer while the
user's vehicle is being | ||
repaired or evaluated.
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5. An application for a used vehicle dealer's license | ||
shall be
accompanied by the following license fees:
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$1,000 for applicant's established place of business, | ||
and
$50 for
each additional place of business, if any, to | ||
which the application
pertains; however, if the | ||
application is made after June 15 of any
year, the license | ||
fee shall be $500 for applicant's established
place of
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business plus $25 for each additional place of business, if | ||
any,
to
which the application pertains. License fees shall | ||
be returnable only in
the event that the application is | ||
denied by
the Secretary of State. Of the money received by | ||
the Secretary of State as
license fees under this Section | ||
for the 2004 licensing year and thereafter, 95%
shall be | ||
deposited into the General Revenue Fund.
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6. A statement that the applicant's officers, | ||
directors, shareholders
having a 10% or greater ownership | ||
interest therein, proprietor, partner,
member, officer, | ||
director, trustee, manager or other principals in the
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business have not committed in the past 3 years any one | ||
violation as
determined in any civil, criminal or | ||
administrative proceedings of any one
of the following | ||
Acts:
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(A) The Anti Theft Laws of the Illinois Vehicle | ||
Code;
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(B) The Certificate of Title Laws of the Illinois | ||
Vehicle Code;
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(C) The Offenses against Registration and | ||
Certificates of Title
Laws of the Illinois Vehicle | ||
Code;
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(D) The Dealers, Transporters, Wreckers and | ||
Rebuilders Laws of the
Illinois Vehicle Code;
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(E) Section 21-2 of the Illinois Criminal Code of | ||
1961, Criminal
Trespass to Vehicles; or
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(F) The Retailers' Occupation Tax Act.
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7. A statement that the applicant's officers, | ||
directors,
shareholders having a 10% or greater ownership | ||
interest therein,
proprietor, partner, member, officer, | ||
director, trustee, manager or
other principals in the | ||
business have not committed in any calendar year
3 or more | ||
violations, as determined in any civil or criminal or
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administrative proceedings, of any one or more of the | ||
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 | ||
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 |
Procedure; or
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(H) The Consumer Fraud Act.
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8. A bond or Certificate of Deposit in the amount of | ||
$20,000 for
each location at which the applicant intends to | ||
act as a used vehicle
dealer. The bond shall be for the | ||
term of the license, or its renewal, for
which application | ||
is made, and shall expire not sooner than December 31 of
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the year for which the license was issued or renewed. The | ||
bond shall run
to the People of the State of Illinois, with | ||
surety by a bonding or
insurance company authorized to do | ||
business in this State. It shall be
conditioned upon the | ||
proper transmittal of all title and registration fees
and | ||
taxes (excluding taxes under the Retailers' Occupation Tax | ||
Act) accepted
by the applicant as a used vehicle dealer.
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9. Such other information concerning the business of | ||
the applicant as
the Secretary of State may by rule or | ||
regulation prescribe.
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10. A statement that the applicant understands Chapter | ||
1 through
Chapter 5 of this Code.
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11. A copy of the certification from the prelicensing | ||
education
program. | ||
(c) Any change which renders no longer accurate any | ||
information
contained in any application for a used vehicle | ||
dealer's license shall
be amended within 30 days after the | ||
occurrence of each change on such
form as the Secretary of | ||
State may prescribe by rule or regulation,
accompanied by an |
amendatory fee of $2.
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(d) Anything in this Chapter to the contrary | ||
notwithstanding, no
person shall be licensed as a used vehicle | ||
dealer unless such person
maintains an established place of | ||
business as
defined in this Chapter.
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(e) The Secretary of State shall, within a reasonable time | ||
after
receipt, examine an application submitted to him under | ||
this Section.
Unless the Secretary makes a determination that | ||
the application
submitted to him does not conform to this | ||
Section or that grounds exist
for a denial of the application | ||
under Section 5-501 of this Chapter, he
must grant the | ||
applicant an original used vehicle dealer's license in
writing | ||
for his established place of business and a supplemental | ||
license
in writing for each additional place of business in | ||
such form as he may
prescribe by rule or regulation 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 | ||
officers or if a
sole proprietorship, a partnership, an | ||
unincorporated association or any
similar form of business | ||
organization, the name and address of the
proprietor or of | ||
each partner, member, officer, director, trustee or
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manager;
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3. In case of an original license, the established | ||
place of business
of the licensee;
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4. In the case of a supplemental license, the |
established place of
business of the licensee and the | ||
additional place of business to which such
supplemental | ||
license pertains.
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(f) The appropriate instrument evidencing the license or a | ||
certified
copy thereof, provided by the Secretary of State | ||
shall be kept posted,
conspicuously, in the established place | ||
of business of the licensee and
in each additional place of | ||
business, if any, maintained by such
licensee.
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(g) Except as provided in subsection (h) of this Section, | ||
all used
vehicle dealer's licenses granted under this Section | ||
expire by operation
of law on December 31 of the calendar year | ||
for which they are granted
unless sooner revoked or cancelled | ||
under Section 5-501 of this Chapter.
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(h) A used vehicle dealer's license may be renewed upon | ||
application
and payment of the fee required herein, and | ||
submission of proof of
coverage by an approved bond under the | ||
"Retailers' Occupation Tax Act"
or proof that applicant is not | ||
subject to such bonding requirements, as
in the case of an | ||
original license, but in case an application for the
renewal of | ||
an effective license is made during the month of December,
the | ||
effective license shall remain in force until the application | ||
for
renewal is granted or denied by the Secretary of State.
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(i) All persons licensed as a used vehicle dealer are | ||
required to
furnish each purchaser of a motor vehicle:
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1. A certificate of title properly assigned to the | ||
purchaser;
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2. A statement verified under oath that all identifying | ||
numbers on
the vehicle agree with those on the certificate | ||
of title;
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3. A bill of sale properly executed on behalf of such | ||
person;
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4. A copy of the Uniform Invoice-transaction reporting | ||
return
referred to in Section 5-402 of this Chapter;
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5. In the case of a rebuilt vehicle, a copy of the | ||
Disclosure of Rebuilt
Vehicle Status; and
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6. In the case of a vehicle for which the warranty has | ||
been reinstated, a
copy of the warranty.
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(j) A real estate broker holding a valid certificate of | ||
registration issued
pursuant to "The Real Estate Brokers and | ||
Salesmen License Act" may engage
in the business of selling or | ||
dealing in house trailers not his own without
being licensed as | ||
a used vehicle dealer under this Section; however such
broker | ||
shall maintain a record of the transaction including the | ||
following:
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(1) the name and address of the buyer and seller,
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(2) the date of sale,
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(3) a description of the mobile home, including the | ||
vehicle identification
number, make, model, and year, and
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(4) the Illinois certificate of title number.
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The foregoing records shall be available for inspection by | ||
any officer
of the Secretary of State's Office at any | ||
reasonable hour.
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(k) Except at the time of sale or repossession of the | ||
vehicle, no
person licensed as a used vehicle dealer may issue | ||
any other person a newly
created key to a vehicle unless the | ||
used vehicle dealer makes a copy of the
driver's license or | ||
State identification card of the person requesting or
obtaining | ||
the newly created key. The used vehicle dealer must retain the
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copy for 30 days.
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A used vehicle dealer who violates this subsection (k) is | ||
guilty of a
petty offense. Violation of this subsection (k) is | ||
not cause to suspend,
revoke, cancel, or deny renewal of the | ||
used vehicle dealer's license. | ||
(l) Used vehicle dealers licensed under this Section shall | ||
provide the Secretary of State a register for the sale at | ||
auction of each salvage or junk certificate vehicle. Each | ||
register shall include the following information: | ||
1. The year, make, model, style and color of the | ||
vehicle; | ||
2. The vehicle's manufacturer's identification number | ||
or, if applicable, the Secretary of State or Illinois | ||
Department of State Police identification number; | ||
3. The date of acquisition of the vehicle; | ||
4. The name and address of the person from whom the | ||
vehicle was acquired; | ||
5. The name and address of the person to whom any | ||
vehicle was disposed, the person's Illinois license number | ||
or if the person is an out-of-state salvage vehicle buyer, |
the license number from the state or jurisdiction where the | ||
buyer is licensed; and | ||
6. The purchase price of the vehicle. | ||
The register shall be submitted to the Secretary of State | ||
via written or electronic means within 10 calendar days from | ||
the date of the auction.
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(Source: P.A. 95-783, eff. 1-1-09.)
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(625 ILCS 5/5-102.5 new) | ||
Sec. 5-102.5. Used vehicle dealer prelicensing education | ||
program courses. | ||
(a) An applicant for a license as a used vehicle
dealer | ||
shall complete a minimum of 8 hours of prelicensing
education | ||
program courses pursuant to this Section prior to
submitting an | ||
application to the Secretary of State. | ||
(b) To meet the requirements of this Section, at least one
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individual who is associated with the used vehicle
dealer as an | ||
owner, principal, corporate officer, director, or
member or | ||
partner of a limited liability company or limited
liability | ||
partnership shall complete the education program
courses. | ||
(c) The education program courses shall be provided by | ||
public or private entities with an expertise in the area as | ||
approved by the Secretary of State. The Secretary of State must | ||
approve course curricula and instruction, in consultation with | ||
the Illinois Department of Transportation and any private | ||
entity with expertise in the area in the Secretary of State's |
discretion. | ||
(d) Each person who successfully completes an approved | ||
prelicensing education program under this Section shall be | ||
issued a certificate by the education program provider of the | ||
course. The current certificate of completion, or a copy of the | ||
certificate, shall be posted conspicuously in the principal | ||
office of the licensee. | ||
(e) The provisions of this Section apply to all used | ||
vehicle dealers including, but not limited to, individuals,
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corporations, and partnerships, except for the following: | ||
(1) Motor vehicle rental companies having a national
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franchise; | ||
(2) National motor vehicle auction companies; | ||
(3) Wholesale dealer-only auction companies; | ||
(4) Used vehicle dealerships owned by a franchise motor | ||
vehicle
dealer; and | ||
(5) Banks, credit unions, and savings and loan
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associations.
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Section 99. Effective date. This Act takes effect August 1, | ||
2009.
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