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1     AN ACT concerning transportation.
 
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 changing
5 Section 5-102 as follows:
 
6     (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)
7     Sec. 5-102. Used vehicle dealers must be licensed.
8     (a) No person, other than a licensed new vehicle dealer,
9 shall engage in the business of selling or dealing in, on
10 consignment or otherwise, 5 or more used vehicles of any make
11 during the year (except house trailers as authorized by
12 paragraph (j) of this Section and rebuilt salvage vehicles sold
13 by their rebuilders to persons licensed under this Chapter), or
14 act as an intermediary, agent or broker for any licensed dealer
15 or vehicle purchaser (other than as a salesperson) or represent
16 or advertise that he is so engaged or intends to so engage in
17 such business unless licensed to do so by the Secretary of
18 State under the provisions of this Section.
19     (b) An application for a used vehicle dealer's license
20 shall be filed with the Secretary of State, duly verified by
21 oath, in such form as the Secretary of State may by rule or
22 regulation prescribe and shall contain:
23         1. The name and type of business organization
24     established and additional places of business, if any, in
25     this State.
26         2. If the applicant is a corporation, a list of its
27     officers, directors, and shareholders having a ten percent
28     or greater ownership interest in the corporation, setting
29     forth the residence address of each; if the applicant is a
30     sole proprietorship, a partnership, an unincorporated
31     association, a trust, or any similar form of business
32     organization, the names and residence address of the

 

 

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1     proprietor or of each partner, member, officer, director,
2     trustee or manager.
3         3. A statement that the applicant has been approved for
4     registration under the Retailers' Occupation Tax Act by the
5     Department of Revenue. However, this requirement does not
6     apply to a dealer who is already licensed hereunder with
7     the Secretary of State, and who is merely applying for a
8     renewal of his license. As evidence of this fact, the
9     application shall be accompanied by a certification from
10     the Department of Revenue showing that the Department has
11     approved the applicant for registration under the
12     Retailers' Occupation Tax Act.
13         4. A statement that the applicant has complied with the
14     appropriate liability insurance requirement. A Certificate
15     of Insurance in a solvent company authorized to do business
16     in the State of Illinois shall be included with each
17     application covering each location at which he proposes to
18     act as a used vehicle dealer. The policy must provide
19     liability coverage in the minimum amounts of $100,000 for
20     bodily injury to, or death of, any person, $300,000 for
21     bodily injury to, or death of, two or more persons in any
22     one accident, and $50,000 for damage to property. Such
23     policy shall expire not sooner than December 31 of the year
24     for which the license was issued or renewed. The expiration
25     of the insurance policy shall not terminate the liability
26     under the policy arising during the period for which the
27     policy was filed. Trailer and mobile home dealers are
28     exempt from this requirement.
29         If the permitted user has a liability insurance policy
30     that provides automobile liability insurance coverage of
31     at least $100,000 for bodily injury to or the death of any
32     person, $300,000 for bodily injury to or the death of any 2
33     or more persons in any one accident, and $50,000 for damage
34     to property, then the permitted user's insurer shall be the
35     primary insurer and the dealer's insurer shall be the
36     secondary insurer. If the permitted user does not have a

 

 

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1     liability insurance policy that provides automobile
2     liability insurance coverage of at least $100,000 for
3     bodily injury to or the death of any person, $300,000 for
4     bodily injury to or the death of any 2 or more persons in
5     any one accident, and $50,000 for damage to property, or
6     does not have any insurance at all, then the dealer's
7     insurer shall be the primary insurer and the permitted
8     user's insurer shall be the secondary insurer.
9         When a permitted user is "test driving" a used vehicle
10     dealer's automobile, the used vehicle dealer's insurance
11     shall be primary and the permitted user's insurance shall
12     be secondary.
13         As used in this paragraph 4, a "permitted user" is a
14     person who, with the permission of the used vehicle dealer
15     or an employee of the used vehicle dealer, drives a vehicle
16     owned and held for sale or lease by the used vehicle dealer
17     which the person is considering to purchase or lease, in
18     order to evaluate the performance, reliability, or
19     condition of the vehicle. The term "permitted user" also
20     includes a person who, with the permission of the used
21     vehicle dealer, drives a vehicle owned or held for sale or
22     lease by the used vehicle dealer for loaner purposes while
23     the user's vehicle is being repaired or evaluated.
24         As used in this paragraph 4, "test driving" occurs when
25     a permitted user who, with the permission of the used
26     vehicle dealer or an employee of the used vehicle dealer,
27     drives a vehicle owned and held for sale or lease by a used
28     vehicle dealer that the person is considering to purchase
29     or lease, in order to evaluate the performance,
30     reliability, or condition of the vehicle.
31         As used in this paragraph 4, "loaner purposes" means
32     when a person who, with the permission of the used vehicle
33     dealer, drives a vehicle owned or held for sale or lease by
34     the used vehicle dealer while the user's vehicle is being
35     repaired or evaluated.
36         5. An application for a used vehicle dealer's license

 

 

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1     shall indicate the number of vehicles sold by the dealer
2     during the previous year, supported by documentation
3     prescribed by the Secretary, and shall be accompanied by
4     the following license fees:
5              (A) for dealers that sold 2,500 or more vehicles
6         the previous year: $1,500 for the applicant's
7         established place of business; $750 for each
8         additional place of business, if any, to which the
9         application pertains;
10             (B) for dealers that sold 1,500 to 2,499 vehicles
11         the previous year: $1,250 for the applicant's
12         established place of business; $625 for each
13         additional place of business, if any, to which the
14         application pertains;
15             (C) for dealers that sold 750 to 1,499 vehicles the
16         previous year: $1,000 for the applicant's established
17         place of business, $500 for each additional place of
18         business, if any, to which the application pertains;
19             (D) for dealers that sold 500 to 749 vehicles the
20         previous year: $750 for the applicant's established
21         place of business; $375 for each additional place of
22         business, if any, to which the application pertains;
23             (E) for dealers that sold 200 to 499 vehicles the
24         previous year: $500 for the applicant's established
25         place of business; $250 for each additional place of
26         business, if any, to which the application pertains;
27             (F) for dealers that sold 0 to 199 vehicles the
28         previous year: $250 for the applicant's established
29         place of business; $125 for each additional place of
30         business, if any, to which the application pertains;
31         but if the application is made after June 15 of any
32         year, the license fee shall be $125 for the applicant's
33         established place of business and $62.50 for each
34         additional place of business, if any, to which the
35         application pertains.
36         5.5. License fees for dealers that were not in business

 

 

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1 the previous year: $1,000 for the applicant's primary place of
2 business and $100 for each additional place of business to
3 which the application pertains; but if the application is made
4 after June 15 of any year, the license fee shall be $500 for
5 the applicant's primary place of business and $50 for each
6 additional place of business, if any, to which the application
7 pertains.
8         $1,000 for applicant's established place of business,
9     and $50 for each additional place of business, if any, to
10     which the application pertains; however, if the
11     application is made after June 15 of any year, the license
12     fee shall be $500 for applicant's established place of
13     business plus $25 for each additional place of business, if
14     any, to which the application pertains.
15         License fees shall be returnable only in the event that
16     the application is denied by the Secretary of State. Of the
17     money received by the Secretary of State as license fees
18     under this Section for the 2004 licensing year and
19     thereafter, 95% shall be deposited into the General Revenue
20     Fund.
21         6. A statement that the applicant's officers,
22     directors, shareholders having a 10% or greater ownership
23     interest therein, proprietor, partner, member, officer,
24     director, trustee, manager or other principals in the
25     business have not committed in the past 3 years any one
26     violation as determined in any civil, criminal or
27     administrative proceedings of any one of the following
28     Acts:
29             (A) The Anti Theft Laws of the Illinois Vehicle
30         Code;
31             (B) The Certificate of Title Laws of the Illinois
32         Vehicle Code;
33             (C) The Offenses against Registration and
34         Certificates of Title Laws of the Illinois Vehicle
35         Code;
36             (D) The Dealers, Transporters, Wreckers and

 

 

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1         Rebuilders Laws of the Illinois Vehicle Code;
2             (E) Section 21-2 of the Illinois Criminal Code of
3         1961, Criminal Trespass to Vehicles; or
4             (F) The Retailers' Occupation Tax Act.
5         7. A statement that the applicant's officers,
6     directors, shareholders having a 10% or greater ownership
7     interest therein, proprietor, partner, member, officer,
8     director, trustee, manager or other principals in the
9     business have not committed in any calendar year 3 or more
10     violations, as determined in any civil or criminal or
11     administrative proceedings, of any one or more of the
12     following Acts:
13             (A) The Consumer Finance Act;
14             (B) The Consumer Installment Loan Act;
15             (C) The Retail Installment Sales Act;
16             (D) The Motor Vehicle Retail Installment Sales
17         Act;
18             (E) The Interest Act;
19             (F) The Illinois Wage Assignment Act;
20             (G) Part 8 of Article XII of the Code of Civil
21         Procedure; or
22             (H) The Consumer Fraud Act.
23         8. A bond or Certificate of Deposit in the amount of
24     $20,000 for each location at which the applicant intends to
25     act as a used vehicle dealer. The bond shall be for the
26     term of the license, or its renewal, for which application
27     is made, and shall expire not sooner than December 31 of
28     the year for which the license was issued or renewed. The
29     bond shall run to the People of the State of Illinois, with
30     surety by a bonding or insurance company authorized to do
31     business in this State. It shall be conditioned upon the
32     proper transmittal of all title and registration fees and
33     taxes (excluding taxes under the Retailers' Occupation Tax
34     Act) accepted by the applicant as a used vehicle dealer.
35         9. Such other information concerning the business of
36     the applicant as the Secretary of State may by rule or

 

 

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1     regulation prescribe.
2         10. A statement that the applicant understands Chapter
3     1 through Chapter 5 of this Code.
4     (c) Any change which renders no longer accurate any
5 information contained in any application for a used vehicle
6 dealer's license shall be amended within 30 days after the
7 occurrence of each change on such form as the Secretary of
8 State may prescribe by rule or regulation, accompanied by an
9 amendatory fee of $2.
10     (d) Anything in this Chapter to the contrary
11 notwithstanding, no person shall be licensed as a used vehicle
12 dealer unless such person maintains an established place of
13 business as defined in this Chapter.
14     (e) The Secretary of State shall, within a reasonable time
15 after receipt, examine an application submitted to him under
16 this Section. Unless the Secretary makes a determination that
17 the application submitted to him does not conform to this
18 Section or that grounds exist for a denial of the application
19 under Section 5-501 of this Chapter, he must grant the
20 applicant an original used vehicle dealer's license in writing
21 for his established place of business and a supplemental
22 license in writing for each additional place of business in
23 such form as he may prescribe by rule or regulation which shall
24 include the following:
25         1. The name of the person licensed;
26         2. If a corporation, the name and address of its
27     officers or if a sole proprietorship, a partnership, an
28     unincorporated association or any similar form of business
29     organization, the name and address of the proprietor or of
30     each partner, member, officer, director, trustee or
31     manager;
32         3. In case of an original license, the established
33     place of business of the licensee;
34         4. In the case of a supplemental license, the
35     established place of business of the licensee and the
36     additional place of business to which such supplemental

 

 

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1     license pertains.
2     (f) The appropriate instrument evidencing the license or a
3 certified copy thereof, provided by the Secretary of State
4 shall be kept posted, conspicuously, in the established place
5 of business of the licensee and in each additional place of
6 business, if any, maintained by such licensee.
7     (g) Except as provided in subsection (h) of this Section,
8 all used vehicle dealer's licenses granted under this Section
9 expire by operation of law on December 31 of the calendar year
10 for which they are granted unless sooner revoked or cancelled
11 under Section 5-501 of this Chapter.
12     (h) A used vehicle dealer's license may be renewed upon
13 application and payment of the fee required herein, and
14 submission of proof of coverage by an approved bond under the
15 "Retailers' Occupation Tax Act" or proof that applicant is not
16 subject to such bonding requirements, as in the case of an
17 original license, but in case an application for the renewal of
18 an effective license is made during the month of December, the
19 effective license shall remain in force until the application
20 for renewal is granted or denied by the Secretary of State.
21     (i) All persons licensed as a used vehicle dealer are
22 required to furnish each purchaser of a motor vehicle:
23         1. A certificate of title properly assigned to the
24     purchaser;
25         2. A statement verified under oath that all identifying
26     numbers on the vehicle agree with those on the certificate
27     of title;
28         3. A bill of sale properly executed on behalf of such
29     person;
30         4. A copy of the Uniform Invoice-transaction reporting
31     return referred to in Section 5-402 of this Chapter;
32         5. In the case of a rebuilt vehicle, a copy of the
33     Disclosure of Rebuilt Vehicle Status; and
34         6. In the case of a vehicle for which the warranty has
35     been reinstated, a copy of the warranty.
36     (j) A real estate broker holding a valid certificate of

 

 

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1 registration issued pursuant to "The Real Estate Brokers and
2 Salesmen License Act" may engage in the business of selling or
3 dealing in house trailers not his own without being licensed as
4 a used vehicle dealer under this Section; however such broker
5 shall maintain a record of the transaction including the
6 following:
7         (1) the name and address of the buyer and seller,
8         (2) the date of sale,
9         (3) a description of the mobile home, including the
10     vehicle identification number, make, model, and year, and
11         (4) the Illinois certificate of title number.
12     The foregoing records shall be available for inspection by
13 any officer of the Secretary of State's Office at any
14 reasonable hour.
15     (k) Except at the time of sale or repossession of the
16 vehicle, no person licensed as a used vehicle dealer may issue
17 any other person a newly created key to a vehicle unless the
18 used vehicle dealer makes a copy of the driver's license or
19 State identification card of the person requesting or obtaining
20 the newly created key. The used vehicle dealer must retain the
21 copy for 30 days.
22     A used vehicle dealer who violates this subsection (k) is
23 guilty of a petty offense. Violation of this subsection (k) is
24 not cause to suspend, revoke, cancel, or deny renewal of the
25 used vehicle dealer's license.
26 (Source: P.A. 92-391, eff. 8-16-01; 92-835, eff. 6-1-03; 93-32,
27 eff. 7-1-03.)
 
28     Section 99. Effective date. This Act takes effect upon
29 becoming law.