093_SB2113

 
                                     LRB093 14128 LCB 19599 b

 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 Section 5-101 as follows:

 6        (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
 7        Sec. 5-101.  New vehicle dealers must be licensed.
 8        (a)  No person shall engage in this State in the business
 9    of selling or dealing in, on consignment  or  otherwise,  new
10    vehicles  of  any make, or act as an intermediary or agent or
11    broker for any licensed dealer  or  vehicle  purchaser  other
12    than  as  a salesperson, or represent or advertise that he is
13    so engaged or intends to so engage in  such  business  unless
14    licensed  to do so in writing by the Secretary of State under
15    the provisions of this Section.
16        (b)  An application for a new  vehicle  dealer's  license
17    shall  be filed with the Secretary of State, duly verified by
18    oath, on such form as the Secretary of State may by  rule  or
19    regulation prescribe and shall contain:
20             1.  The  name  and  type of business organization of
21        the applicant and his  established and additional  places
22        of business, if any, in this State.
23             2.  If the applicant is a corporation, a list of its
24        officers,   directors,  and  shareholders  having  a  ten
25        percent or greater ownership interest in the corporation,
26        setting forth the  residence  address  of  each;  if  the
27        applicant  is  a  sole  proprietorship, a partnership, an
28        unincorporated association, a trust, or any similar  form
29        of  business organization, the name and residence address
30        of the proprietor or of each  partner,  member,  officer,
31        director, trustee, or manager.
 
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 1             3.  The  make  or  makes  of  new vehicles which the
 2        applicant will offer for sale at retail in this State.
 3             4.  The name  of  each  manufacturer  or  franchised
 4        distributor,  if  any,  of  new  vehicles  with  whom the
 5        applicant  has  contracted  for  the  sale  of  such  new
 6        vehicles. As evidence of this fact, the application shall
 7        be accompanied by  a  signed  statement  from  each  such
 8        manufacturer or franchised distributor.  If the applicant
 9        is  in  the  business of offering for sale new conversion
10        vehicles, trucks or vans, except for trucks  modified  to
11        serve a special purpose which includes but is not limited
12        to  the  following vehicles:  street sweepers, fertilizer
13        spreaders, emergency vehicles, implements of husbandry or
14        maintenance type vehicles, he must furnish evidence of  a
15        sales   and  service  agreement  from  both  the  chassis
16        manufacturer and second stage manufacturer.
17             5.  A statement that the applicant has been approved
18        for registration under the Retailers' Occupation Tax  Act
19        by   the   Department  of  Revenue:  Provided  that  this
20        requirement does not apply to a  dealer  who  is  already
21        licensed  hereunder  with the Secretary of State, and who
22        is merely applying for  a  renewal  of  his  license.  As
23        evidence   of   this   fact,  the  application  shall  be
24        accompanied by a certification  from  the  Department  of
25        Revenue  showing  that  that  Department has approved the
26        applicant   for   registration   under   the   Retailers'
27        Occupation Tax Act.
28             6.  A statement that the applicant has complied with
29        the  appropriate  liability  insurance  requirement.    A
30        Certificate  of Insurance in a solvent company authorized
31        to do business in the State of Illinois shall be included
32        with each application covering each location at which  he
33        proposes to act as a new vehicle dealer.  The policy must
34        provide  liability  coverage  in  the  minimum amounts of
 
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 1        $100,000 for bodily injury to, or death of,  any  person,
 2        $300,000  for  bodily injury to, or death of, two or more
 3        persons in any one accident, and $50,000  for  damage  to
 4        property.   Such  policy  shall  expire  not  sooner than
 5        December 31 of the year for which the license was  issued
 6        or renewed.  The expiration of the insurance policy shall
 7        not  terminate  the  liability  under  the policy arising
 8        during  the  period  for  which  the  policy  was  filed.
 9        Trailer and mobile home  dealers  are  exempt  from  this
10        requirement.
11             If  the  permitted  user  has  a liability insurance
12        policy  that  provides  automobile  liability   insurance
13        coverage of at least $100,000 for bodily injury to or the
14        death of any person, $300,000 for bodily injury to or the
15        death  of  any 2 or more persons in any one accident, and
16        $50,000 for damage to property, then the permitted user's
17        insurer shall be the primary  insurer  and  the  dealer's
18        insurer  shall be the secondary insurer. If the permitted
19        user does not have  a  liability  insurance  policy  that
20        provides  automobile  liability  insurance coverage of at
21        least $100,000 for bodily injury to or the death  of  any
22        person, $300,000 for bodily injury to or the death of any
23        2  or  more  persons in any one accident, and $50,000 for
24        damage to property, or does not  have  any  insurance  at
25        all,  then  the  dealer's  insurer  shall  be the primary
26        insurer and the permitted user's  insurer  shall  be  the
27        secondary insurer.
28             When  a  permitted  user   is  "test  driving" a new
29        vehicle dealer's automobile,  the  new  vehicle  dealer's
30        insurance  shall  be  primary  and  the  permitted user's
31        insurance shall be secondary.
32             As used in this paragraph 6, a "permitted user" is a
33        person who, with the permission of the new vehicle dealer
34        or an employee  of  the  new  vehicle  dealer,  drives  a
 
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 1        vehicle  owned  and  held  for  sale  or lease by the new
 2        vehicle  dealer  which  the  person  is  considering   to
 3        purchase  or lease, in order to evaluate the performance,
 4        reliability,  or  condition  of  the  vehicle.  The  term
 5        "permitted user" also includes a  person  who,  with  the
 6        permission  of  the  new vehicle dealer, drives a vehicle
 7        owned or held for sale or lease by the new vehicle dealer
 8        for loaner purposes while the  user's  vehicle  is  being
 9        repaired or evaluated.
10             As  used  in this paragraph 6, "test driving" occurs
11        when a permitted user who, with the permission of the new
12        vehicle dealer or an employee of the new vehicle  dealer,
13        drives  a  vehicle  owned and held for sale or lease by a
14        new vehicle dealer that  the  person  is  considering  to
15        purchase  or lease, in order to evaluate the performance,
16        reliability, or condition of the vehicle.
17             As used in this paragraph 6, "loaner purposes" means
18        when a person who, with the permission of the new vehicle
19        dealer, drives a vehicle owned or held for sale or  lease
20        by  the  new  vehicle  dealer while the user's vehicle is
21        being repaired or evaluated.
22             7. (A)  An  application  for  a  new  motor  vehicle
23        dealer's license shall be accompanied  by  the  following
24        license fees:
25                  $1,000  for  applicant's  established  place of
26             business, and $100  for  each  additional  place  of
27             business, if any, to which the application pertains;
28             but  if the application is made after June 15 of any
29             year, the license fee shall be $500 for  applicant's
30             established  place  of  business  plus  $50 for each
31             additional place of business, if any, to  which  the
32             application   pertains.   License   fees   shall  be
33             returnable only in the event that the application is
34             denied  by  the  Secretary  of  State.  All   moneys
 
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 1             received  by  the Secretary of State as license fees
 2             under paragraph (7)(A) of  subsection  (b)  of  this
 3             Section prior to applications for the 2004 licensing
 4             year  shall  be  deposited  into  the  Motor Vehicle
 5             Review Board Fund and shall be  used  to  administer
 6             the  Motor  Vehicle  Review  Board  under  the Motor
 7             Vehicle Franchise Act.  Of the money received by the
 8             Secretary of State as license fees  under  paragraph
 9             (7)(A)  of  subsection  (b)  of this Section for the
10             2004 licensing year and  thereafter,  10%  shall  be
11             deposited  into  the Motor Vehicle Review Board Fund
12             and shall be used to administer  the  Motor  Vehicle
13             Review  Board  under the Motor Vehicle Franchise Act
14             and 90% shall be deposited into the General  Revenue
15             Fund.
16                  (B)  An  application for a new vehicle dealer's
17             license, other than for a new motor vehicle dealer's
18             license,  shall  be  accompanied  by  the  following
19             license fees:
20                  $50 $1,000 for applicant's established place of
21             business, and $25 $50 for each additional  place  of
22             business, if any, to which the application pertains;
23             but  if the application is made after June 15 of any
24             year,  the  license  fee  shall  be  $25  $500   for
25             applicant's   established  place  of  business  plus
26             $12.50 $25 for each additional place of business, if
27             any, to which  the  application  pertains.   License
28             fees  shall be returnable only in the event that the
29             application is denied by the Secretary of State.  Of
30             the money received by  the  Secretary  of  State  as
31             license  fees  under  this  subsection  for the 2004
32             licensing  year  and  thereafter,   95%   shall   be
33             deposited into the General Revenue Fund.
34             8.  A   statement  that  the  applicant's  officers,
 
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 1        directors, shareholders having a 10% or greater ownership
 2        interest therein, proprietor, a partner, member, officer,
 3        director, trustee, manager or  other  principals  in  the
 4        business  have  not committed in the past 3 years any one
 5        violation  as  determined  in  any  civil,  criminal   or
 6        administrative  proceedings  of  any one of the following
 7        Acts:
 8                  (A)  The  Anti  Theft  Laws  of  the   Illinois
 9             Vehicle Code;
10                  (B)  The  Certificate  of  Title  Laws  of  the
11             Illinois Vehicle Code;
12                  (C)  The   Offenses  against  Registration  and
13             Certificates of Title Laws of the  Illinois  Vehicle
14             Code;
15                  (D)  The  Dealers,  Transporters,  Wreckers and
16             Rebuilders Laws of the Illinois Vehicle Code;
17                  (E)  Section 21-2 of the Criminal Code of 1961,
18             Criminal Trespass to Vehicles; or
19                  (F)  The Retailers' Occupation Tax Act.
20             9.  A  statement  that  the  applicant's   officers,
21        directors, shareholders having a 10% or greater ownership
22        interest  therein,  proprietor, partner, member, officer,
23        director, trustee, manager or  other  principals  in  the
24        business  have  not  committed  in any calendar year 3 or
25        more violations, as determined in any civil, criminal  or
26        administrative  proceedings,  of  any  one or more of the
27        following Acts:
28                  (A)  The Consumer Finance Act;
29                  (B)  The Consumer Installment Loan Act;
30                  (C)  The Retail Installment Sales Act;
31                  (D)  The Motor Vehicle Retail Installment Sales
32             Act;
33                  (E)  The Interest Act;
34                  (F)  The Illinois Wage Assignment Act;
 
                            -7-      LRB093 14128 LCB 19599 b
 1                  (G)  Part 8 of Article XII of the Code of Civil
 2             Procedure; or
 3                  (H)  The Consumer Fraud Act.
 4             10.  A bond or certificate of deposit in the  amount
 5        of  $20,000  for  each  location  at  which the applicant
 6        intends to act as a new vehicle dealer.  The  bond  shall
 7        be for the term of the license, or its renewal, for which
 8        application  is  made,  and  shall expire not sooner than
 9        December 31 of the year for which the license was  issued
10        or  renewed.   The  bond  shall  run to the People of the
11        State of Illinois, with surety by a bonding or  insurance
12        company  authorized  to  do  business  in this State.  It
13        shall be conditioned upon the proper transmittal  of  all
14        title  and  registration  fees and taxes (excluding taxes
15        under the Retailers' Occupation Tax Act) accepted by  the
16        applicant as a new vehicle dealer.
17             11.  Such  other information concerning the business
18        of the applicant as the Secretary of State may by rule or
19        regulation prescribe.
20             12.  A  statement  that  the  applicant  understands
21        Chapter One through Chapter Five of this Code.
22        (c)  Any change which  renders  no  longer  accurate  any
23    information  contained  in  any application for a new vehicle
24    dealer's license shall be amended within 30  days  after  the
25    occurrence  of  such  change on such form as the Secretary of
26    State may prescribe by rule or regulation, accompanied by  an
27    amendatory fee of $2.
28        (d)  Anything   in   this   Chapter  5  to  the  contrary
29    notwithstanding no person shall be licensed as a new  vehicle
30    dealer unless:
31             1.  He  is authorized by contract in writing between
32        himself and the manufacturer or franchised distributor of
33        such make of vehicle to so sell the same in  this  State,
34        and
 
                            -8-      LRB093 14128 LCB 19599 b
 1             2.  Such  person shall maintain an established place
 2        of business as defined in this Act.
 3        (e)  The Secretary of State shall,  within  a  reasonable
 4    time  after  receipt, examine an application submitted to him
 5    under this Section and unless he  makes a determination  that
 6    the  application  submitted  to him does not conform with the
 7    requirements of this Section or  that  grounds  exist  for  a
 8    denial  of  the  application,  under  Section  5-501  of this
 9    Chapter, grant the applicant an original new vehicle dealer's
10    license in writing for his  established place of business and
11    a supplemental license in writing for each  additional  place
12    of  business  in  such  form  as  he may prescribe by rule or
13    regulation which shall include the following:
14             1.  The name of the person licensed;
15             2.  If a corporation, the name and  address  of  its
16        officers  or  if a sole proprietorship, a partnership, an
17        unincorporated  association  or  any  similar   form   of
18        business  organization,  the  name  and  address  of  the
19        proprietor or of each partner, member, officer, director,
20        trustee or manager;
21             3.  In   the   case  of  an  original  license,  the
22        established place of business of the licensee;
23             4.  In the  case  of  a  supplemental  license,  the
24        established  place  of  business  of the licensee and the
25        additional place of business to which  such  supplemental
26        license pertains;
27             5.  The  make  or  makes  of  new vehicles which the
28        licensee is licensed to sell.
29        (f)  The appropriate instrument evidencing the license or
30    a certified copy thereof, provided by the Secretary of State,
31    shall be kept posted conspicuously in the  established  place
32    of  business  of the licensee and in each additional place of
33    business, if any, maintained by such licensee.
34        (g)  Except as provided in subsection (h) hereof, all new
 
                            -9-      LRB093 14128 LCB 19599 b
 1    vehicle dealer's licenses granted under  this  Section  shall
 2    expire  by  operation  of  law on December 31 of the calendar
 3    year for which they are  granted  unless  sooner  revoked  or
 4    cancelled  under  the  provisions  of  Section  5-501 of this
 5    Chapter.
 6        (h)  A new vehicle dealer's license may be  renewed  upon
 7    application  and  payment  of  the  fee  required herein, and
 8    submission of proof of coverage under an approved bond  under
 9    the  "Retailers'  Occupation Tax Act" or proof that applicant
10    is not subject to such bonding requirements, as in  the  case
11    of  an  original  license, but in case an application for the
12    renewal of an effective license is made during the  month  of
13    December,  the  effective license shall remain in force until
14    the application is granted or  denied  by  the  Secretary  of
15    State.
16        (i)  All  persons  licensed  as  a new vehicle dealer are
17    required to furnish each purchaser of a motor vehicle:
18             1.  In the case of a new  vehicle  a  manufacturer's
19        statement  of  origin  and  in  the  case of a used motor
20        vehicle a certificate of title, in either  case  properly
21        assigned to the purchaser;
22             2.  A   statement   verified  under  oath  that  all
23        identifying numbers on the vehicle agree  with  those  on
24        the  certificate  of title or manufacturer's statement of
25        origin;
26             3.  A bill of sale properly executed  on  behalf  of
27        such person;
28             4.  A   copy   of  the  Uniform  Invoice-transaction
29        reporting return referred to in Section 5-402 hereof;
30             5.  In the case of a rebuilt vehicle, a copy of  the
31        Disclosure of Rebuilt Vehicle Status; and
32             6.  In  the case of a vehicle for which the warranty
33        has been reinstated, a copy of the warranty.
34        (j)  Except at the time of sale or  repossession  of  the
 
                            -10-     LRB093 14128 LCB 19599 b
 1    vehicle, no person licensed as a new vehicle dealer may issue
 2    any  other person a newly created key to a vehicle unless the
 3    new vehicle dealer makes a copy of the  driver's  license  or
 4    State   identification  card  of  the  person  requesting  or
 5    obtaining the newly created key. The new vehicle dealer  must
 6    retain the copy for 30 days.
 7        A  new vehicle dealer who violates this subsection (j) is
 8    guilty of a petty offense. Violation of this  subsection  (j)
 9    is  not  cause to suspend, revoke, cancel, or deny renewal of
10    the new vehicle dealer's license.
11        This amendatory Act of 1983 shall be  applicable  to  the
12    1984 registration year and thereafter.
13    (Source:  P.A.  92-391,  eff.  8-16-01;  92-835, eff. 6-1-03;
14    93-32, eff. 7-1-03.)

15        Section 99.  Effective date.  This Act takes effect  upon
16    becoming law.