Public Act 103-0839
 
HB4925 EnrolledLRB103 37949 SPS 68081 b

    AN ACT concerning business.
 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly:
 
    Section 5. The Motor Vehicle Franchise Act is amended by 
changing Section 10.1 as follows:
 
    (815 ILCS 710/10.1)  (from Ch. 121 1/2, par. 760.1)
    Sec. 10.1. (a) As used in this Section, "motorcycle" means 
every motor vehicle having a seat or saddle for the use of the 
rider and designed to travel with 3 or less wheels in contact 
with the ground, excluding farm, garden, and lawn equipment, 
and including off-highway vehicles.
    (b) It shall be deemed a violation for a manufacturer, a 
distributor, a wholesaler, a distributor branch or division, 
or officer, agent, or other representative thereof: 
        (1) To require a motorcycle franchisee to participate 
    in a retail financing plan or retail leasing plan or to 
    participate in any retail consumer insurance plan. 
        (2) To own, to operate or to control any motorcycle 
    dealership in this State for a period longer than 2 years. 
        (3) (Blank).
        (4) To require a motorcycle dealer to utilize 
    manufacturer approved floor fixtures for the display of 
    any product that is not a product of the manufacturer. 
        (5) To require a motorcycle dealer to purchase 
    lighting fixtures that are to be installed in the 
    dealership only from the manufacturer's approved vendors. 
        (6) To require a motorcycle dealer to relocate to a 
    new or alternate facility. 
        (7) To coerce or require any motorcycle dealer to 
    construct improvements to the dealer's facility at a 
    substantial cost to the dealer or to condition any 
    motorcycle dealer's eligibility for payments under any 
    discount, credit, rebate, sales incentive, or similar 
    program on the dealer constructing improvements to the 
    dealer's facility at a substantial cost to the dealer. As 
    used in this paragraph (7), "substantial cost" means an 
    amount equal to or greater than 10% of a motorcycle 
    dealer's average annual net profits for the 3 years 
    preceding the proposed improvements to that dealer's 
    facility. 
    Whenever any motorcycle dealer enters into a franchise 
agreement, evidenced by a contract, with a wholesaler, 
manufacturer, or distributor wherein the franchisee agrees to 
maintain an inventory and the contract is terminated by the 
wholesaler, manufacturer, distributor, or franchisee, then the 
franchisee may require the repurchase of the inventory as 
provided for in this Act. If the franchisee has any 
outstanding debts to the wholesaler, manufacturer, or 
distributor, then the repurchase amount may be credited to the 
franchisee's account. The franchise agreement shall either 
expressly or by operation of law have as part of its terms a 
security agreement whereby the wholesaler, manufacturer, or 
distributor agrees to and does grant a security interest to 
the motorcycle dealer in the repurchased inventory to secure 
payment of the repurchase amount to the dealer. The 
perfection, priority, and other matters relating to the 
security interest shall be governed by Article 9 of the 
Uniform Commercial Code. The provisions of this Section shall 
not be construed to affect in any way any security interest 
that any financial institution, person, wholesaler, 
manufacturer, or distributor may have in the inventory of the 
motorcycle dealer. 
    (c) The provisions of this Section 10.1 are applicable to 
all new or existing motorcycle franchisees and franchisers and 
are in addition to the other rights and remedies provided in 
this Act, and, in the case of a conflict with other provisions 
contained in this Act, with respect to motorcycle franchises, 
this Section shall be controlling.
    (d) The filing of a timely protest by a motorcycle 
franchise before the Motor Vehicle Review Board as prescribed 
by Sections 12 and 29 of this Act, shall stay the effective 
date of a proposed additional franchise or selling agreement, 
or the effective date of a proposed motorcycle dealership 
relocation, or the effective date of a cancellation, 
termination, or modification, or extend the expiration date of 
a franchise or selling agreement by refusal to honor 
succession to ownership or refusal to approve a sale or 
transfer pending a final determination of the issues in the 
hearing.
(Source: P.A. 100-863, eff. 8-14-18.)
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.

Effective Date:  8/9/2024