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92nd General Assembly

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Public Act 92-0069

SB547 Enrolled                                 LRB9202484DHmb

    AN ACT concerning vehicles.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The  Illinois  Vehicle  Code  is amended by
changing Sections 2-124, 3-402.2, and 3-824 as follows:

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

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

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

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.
    Passed in the General Assembly April 24, 2001.
    Approved July 12, 2001.
    Effective July 12, 2001.

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