Full Text of HB0880 97th General Assembly
HB0880ham004 97TH GENERAL ASSEMBLY | Rep. Marlow H. Colvin Filed: 4/13/2011
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| 1 | | AMENDMENT TO HOUSE BILL 880
| 2 | | AMENDMENT NO. ______. Amend House Bill 880 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Vehicle Code is amended by | 5 | | changing Sections 5-101, 5-102, and 5-501 and by adding Section | 6 | | 5-102.7 as follows:
| 7 | | (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
| 8 | | Sec. 5-101. New vehicle dealers must be licensed.
| 9 | | (a) No person shall engage in this State in the business of | 10 | | selling
or dealing in, on consignment or otherwise, new | 11 | | vehicles of any make, or
act as an intermediary or agent or | 12 | | broker for any licensed dealer or
vehicle purchaser other than | 13 | | as a salesperson, or represent or advertise
that he is so | 14 | | engaged or intends to so engage in such business unless
| 15 | | licensed to do so in writing by the Secretary of State under | 16 | | the
provisions of this Section.
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| 1 | | (b) An application for a new vehicle dealer's license shall | 2 | | be filed
with the Secretary of State, duly verified by oath, on | 3 | | such form as the
Secretary of State may by rule or regulation | 4 | | prescribe and shall contain:
| 5 | | 1. The name and type of business organization of the | 6 | | applicant and
his established and additional places of | 7 | | business, if any, in this State.
| 8 | | 2. If the applicant is a corporation, a list of its | 9 | | officers,
directors, and shareholders having a ten percent | 10 | | or greater ownership
interest in the corporation, setting | 11 | | forth the residence address of
each; if the applicant is a | 12 | | sole proprietorship, a partnership, an
unincorporated | 13 | | association, a trust, or any similar form of business
| 14 | | organization, the name and residence address of the | 15 | | proprietor or of
each partner, member, officer, director, | 16 | | trustee, or manager.
| 17 | | 3. The make or makes of new vehicles which the | 18 | | applicant will offer
for sale at retail in this State.
| 19 | | 4. The name of each manufacturer or franchised | 20 | | distributor, if any,
of new vehicles with whom the | 21 | | applicant has contracted for the sale of
such new vehicles. | 22 | | As evidence of this fact, the application shall be
| 23 | | accompanied by a signed statement from each such | 24 | | manufacturer or
franchised distributor. If the applicant | 25 | | is in the business of
offering for sale new conversion | 26 | | vehicles, trucks or vans, except for
trucks modified to |
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| 1 | | serve a special purpose which includes but is not
limited | 2 | | to the following vehicles: street sweepers, fertilizer | 3 | | spreaders,
emergency vehicles, implements of husbandry or | 4 | | maintenance type vehicles,
he must furnish evidence of a | 5 | | sales and service agreement from both the
chassis | 6 | | manufacturer and second stage manufacturer.
| 7 | | 5. A statement that the applicant has been approved for | 8 | | registration
under the Retailers' Occupation Tax Act by the | 9 | | Department of Revenue:
Provided that this requirement does | 10 | | not apply to a dealer who is already
licensed hereunder | 11 | | with the Secretary of State, and who is merely applying
for | 12 | | a renewal of his license. As evidence of this fact, the | 13 | | application
shall be accompanied by a certification from | 14 | | the Department of Revenue
showing that that Department has | 15 | | approved the applicant for registration
under the | 16 | | Retailers' Occupation Tax Act.
| 17 | | 6. A statement that the applicant has complied with the | 18 | | appropriate
liability insurance requirement. A Certificate | 19 | | of Insurance in a solvent
company authorized to do business | 20 | | in the State of Illinois shall be included
with each | 21 | | application covering each location at which he proposes to | 22 | | act
as a new vehicle dealer. The policy must provide | 23 | | liability coverage in
the minimum amounts of $100,000 for | 24 | | bodily injury to, or death of, any person,
$300,000 for | 25 | | bodily injury to, or death of, two or more persons in any | 26 | | one
accident, and $50,000 for damage to property. Such |
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| 1 | | policy shall expire
not sooner than December 31 of the year | 2 | | for which the license was issued
or renewed. The expiration | 3 | | of the insurance policy shall not terminate
the liability | 4 | | under the policy arising during the period for which the
| 5 | | policy was filed. Trailer and mobile home dealers are | 6 | | exempt from this
requirement.
| 7 | | If the permitted user has a liability insurance policy | 8 | | that provides
automobile
liability insurance coverage of | 9 | | at least $100,000 for bodily injury to or the
death of any
| 10 | | person, $300,000 for bodily injury to or the death of any 2 | 11 | | or more persons in
any one
accident, and $50,000 for damage | 12 | | to property,
then the permitted user's insurer shall be the | 13 | | primary
insurer and the
dealer's insurer shall be the | 14 | | secondary insurer. If the permitted user does not
have a | 15 | | liability
insurance policy that provides automobile | 16 | | liability insurance coverage of at
least
$100,000 for | 17 | | bodily injury to or the death of any person, $300,000 for | 18 | | bodily
injury to or the death of any 2 or more persons in | 19 | | any one accident, and
$50,000 for damage to property, or | 20 | | does not have any insurance at all,
then the dealer's | 21 | | insurer shall be the primary insurer and the permitted | 22 | | user's
insurer shall be the secondary
insurer.
| 23 | | When a permitted user is "test driving" a new vehicle | 24 | | dealer's automobile,
the new vehicle dealer's insurance | 25 | | shall be primary and the permitted user's
insurance shall | 26 | | be secondary.
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| 1 | | As used in this paragraph 6, a "permitted user" is a | 2 | | person who, with the
permission of the new vehicle dealer | 3 | | or an employee of the new vehicle dealer,
drives a vehicle | 4 | | owned and held for sale or lease by the new vehicle dealer
| 5 | | which the person is considering
to purchase or lease, in | 6 | | order to evaluate the performance, reliability, or
| 7 | | condition of the vehicle.
The term "permitted user" also | 8 | | includes a person who, with the permission of
the new
| 9 | | vehicle dealer, drives a vehicle owned or held for sale or | 10 | | lease by the new
vehicle dealer
for loaner purposes while | 11 | | the user's vehicle is being repaired or evaluated.
| 12 | | As used in this paragraph 6, "test driving" occurs when | 13 | | a permitted user
who,
with the permission of the new | 14 | | vehicle dealer or an employee of the new vehicle
dealer, | 15 | | drives a vehicle owned and held for sale or lease by a new | 16 | | vehicle
dealer that the person is considering to purchase | 17 | | or lease, in order to
evaluate the performance, | 18 | | reliability, or condition of the
vehicle.
| 19 | | As used in this paragraph 6, "loaner purposes" means | 20 | | when a person who,
with the permission of the new vehicle | 21 | | dealer, drives a vehicle owned or held
for sale or lease by | 22 | | the new vehicle dealer while the
user's vehicle is being | 23 | | repaired or evaluated.
| 24 | | 7. (A) An application for a new motor vehicle dealer's | 25 | | license shall be
accompanied by the following license fees:
| 26 | | (i) $1,000 for applicant's established place of |
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| 1 | | business, and
$100 for each
additional place of | 2 | | business, if any, to which the application
pertains; | 3 | | but if the application is made after June 15 of any | 4 | | year, the license
fee shall be $500 for applicant's | 5 | | established place of business
plus
$50 for each | 6 | | additional place of business, if any, to which the
| 7 | | application pertains. License fees shall be returnable | 8 | | only in the event that
the application is denied by the | 9 | | Secretary of State.
All moneys received by the | 10 | | Secretary of State as license fees under this | 11 | | subparagraph (i) paragraph
(7)(A) of subsection (b) of | 12 | | this Section prior to applications for the 2004
| 13 | | licensing year
shall be
deposited into the Motor | 14 | | Vehicle Review Board Fund and shall
be used to | 15 | | administer the Motor Vehicle Review Board under the | 16 | | Motor Vehicle
Franchise Act. Of the money received by | 17 | | the Secretary of State as license
fees under this | 18 | | subparagraph (i) paragraph (7)(A) of subsection (b) of | 19 | | this Section for the 2004
licensing year and
| 20 | | thereafter, 10% shall
be deposited into the Motor | 21 | | Vehicle Review Board Fund and shall be used to
| 22 | | administer the Motor Vehicle Review Board under the | 23 | | Motor Vehicle Franchise Act
and 90% shall be deposited | 24 | | into the General Revenue Fund.
| 25 | | (ii) Except as provided in subsection (h) of | 26 | | Section 5-102.7 of this Code, an Annual Dealer Recovery |
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| 1 | | Fund Fee in the amount of $500 for the applicant's | 2 | | established place of business, and $50 for each | 3 | | additional place of business, if any, to which the | 4 | | application pertains; but if the application is made | 5 | | after June 15 of any year, the fee shall be $250 for | 6 | | the applicant's established place of business plus $25 | 7 | | for each additional place of business, if any, to which | 8 | | the application pertains. License fees shall be | 9 | | returnable only in the event that the application is | 10 | | denied by the Secretary of State. Moneys received under | 11 | | this subparagraph (ii) shall be deposited into the | 12 | | Dealer Recovery Trust Fund.
| 13 | | (B) An application for a new vehicle dealer's license, | 14 | | other than for
a new motor vehicle dealer's license, shall | 15 | | be accompanied by the following
license fees:
| 16 | | (i) $1,000 for applicant's established place of | 17 | | business, and
$50 for each
additional place of | 18 | | business, if any, to which the application pertains; | 19 | | but if
the application is made after June 15 of any | 20 | | year, the license fee shall be
$500
for applicant's | 21 | | established place of business plus $25 for each
| 22 | | additional
place of business, if any, to which the | 23 | | application pertains. License fees
shall be returnable | 24 | | only in the event that the application is denied by the
| 25 | | Secretary of State. Of the money received by the | 26 | | Secretary of State as
license fees under this |
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| 1 | | subparagraph (i) subsection for the 2004 licensing | 2 | | year and thereafter,
95% shall be deposited into the | 3 | | General Revenue Fund.
| 4 | | (ii) Except as provided in subsection (h) of | 5 | | Section 5-102.7 of this Code, an Annual Dealer Recovery | 6 | | Fund Fee in the amount of $500 for the applicant's | 7 | | established place of business, and $50 for each | 8 | | additional place of business, if any, to which the | 9 | | application pertains; but if the application is made | 10 | | after June 15 of any year, the fee shall be $250 for | 11 | | the applicant's established place of business plus $25 | 12 | | for each additional place of business, if any, to which | 13 | | the application pertains. License fees shall be | 14 | | returnable only in the event that the application is | 15 | | denied by the Secretary of State. Moneys received under | 16 | | this subparagraph (ii) shall be deposited into the | 17 | | Dealer Recovery Trust Fund.
| 18 | | 8. A statement that the applicant's officers, | 19 | | directors,
shareholders having a 10% or greater ownership | 20 | | interest
therein, proprietor, a partner, member, officer, | 21 | | director, trustee, manager
or other principals in the | 22 | | business have not committed in the past 3
years any one | 23 | | violation as determined in any civil, criminal or
| 24 | | administrative proceedings of any one of the following | 25 | | Acts:
| 26 | | (A) The Anti Theft Laws of the Illinois Vehicle |
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| 1 | | Code;
| 2 | | (B) The Certificate of Title Laws of the Illinois | 3 | | Vehicle Code;
| 4 | | (C) The Offenses against Registration and | 5 | | Certificates of Title
Laws of the Illinois Vehicle | 6 | | Code;
| 7 | | (D) The Dealers, Transporters, Wreckers and | 8 | | Rebuilders
Laws of the Illinois Vehicle Code;
| 9 | | (E) Section 21-2 of the Criminal Code of 1961, | 10 | | Criminal Trespass to
Vehicles; or
| 11 | | (F) The Retailers' Occupation Tax Act.
| 12 | | 9. A statement that the applicant's officers, | 13 | | directors,
shareholders having a 10% or greater ownership | 14 | | interest
therein, proprietor, partner, member, officer, | 15 | | director, trustee, manager
or other principals in the | 16 | | business have not committed in any calendar year
3 or more | 17 | | violations, as determined in any civil, criminal or
| 18 | | administrative proceedings, of any one or more of the | 19 | | following Acts:
| 20 | | (A) The Consumer Finance Act;
| 21 | | (B) The Consumer Installment Loan Act;
| 22 | | (C) The Retail Installment Sales Act;
| 23 | | (D) The Motor Vehicle Retail Installment Sales | 24 | | Act;
| 25 | | (E) The Interest Act;
| 26 | | (F) The Illinois Wage Assignment Act;
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| 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 of | 5 | | $20,000 for
each location at which the applicant intends to | 6 | | act as a new vehicle
dealer. The bond shall be for the term | 7 | | of the license, or its renewal, for
which application is | 8 | | made, and shall expire not sooner than
December 31 of the | 9 | | year for which the license was issued or renewed. The bond
| 10 | | shall run to the People of the State of Illinois, with | 11 | | surety by a bonding or
insurance company authorized to do | 12 | | business in this State. It shall be
conditioned upon the | 13 | | proper transmittal of all title and registration fees and
| 14 | | taxes (excluding taxes under the Retailers' Occupation Tax | 15 | | Act) accepted by the
applicant as a new vehicle dealer.
| 16 | | 11. Such other information concerning the business of | 17 | | the applicant as
the Secretary of State may by rule or | 18 | | regulation prescribe.
| 19 | | 12. A statement that the applicant understands Chapter | 20 | | One through
Chapter Five of this Code.
| 21 | | (c) Any change which renders no longer accurate any | 22 | | information
contained in any application for a new vehicle | 23 | | dealer's license shall be
amended within 30 days after the | 24 | | occurrence of such change on such form
as the Secretary of | 25 | | State may prescribe by rule or regulation,
accompanied by an | 26 | | amendatory fee of $2.
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| 1 | | (d) Anything in this Chapter 5 to the contrary | 2 | | notwithstanding no
person shall be licensed as a new vehicle | 3 | | dealer unless:
| 4 | | 1. He is authorized by contract in writing between | 5 | | himself and the
manufacturer or franchised distributor of | 6 | | such make of vehicle to so
sell the same in this State, and
| 7 | | 2. Such person shall maintain an established place of | 8 | | business as
defined in this Act.
| 9 | | (e) The Secretary of State shall, within a reasonable time | 10 | | after
receipt, examine an application submitted to him under | 11 | | this Section and
unless he makes a determination that the | 12 | | application submitted to him
does not conform with the | 13 | | requirements of this Section or that grounds
exist for a denial | 14 | | of the application, under Section 5-501 of this
Chapter, grant | 15 | | the applicant an original new vehicle dealer's license in
| 16 | | writing for his established place of business and a | 17 | | supplemental license
in writing for each additional place of | 18 | | business in such form as he may
prescribe by rule or regulation | 19 | | which shall include the following:
| 20 | | 1. The name of the person licensed;
| 21 | | 2. If a corporation, the name and address of its | 22 | | officers or if a
sole proprietorship, a partnership, an | 23 | | unincorporated association or any
similar form of business | 24 | | organization, the name and address of the
proprietor or of | 25 | | each partner, member, officer, director, trustee or
| 26 | | manager;
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| 1 | | 3. In the case of an original license, the established | 2 | | place of
business of the licensee;
| 3 | | 4. In the case of a supplemental license, the | 4 | | established place of
business of the licensee and the | 5 | | additional place of business to which such
supplemental | 6 | | license pertains;
| 7 | | 5. The make or makes of new vehicles which the licensee | 8 | | is licensed
to sell.
| 9 | | (f) The appropriate instrument evidencing the license or a | 10 | | certified
copy thereof, provided by the Secretary of State, | 11 | | shall be kept posted
conspicuously in the established place of | 12 | | business of the licensee and
in each additional place of | 13 | | business, if any, maintained by such
licensee.
| 14 | | (g) Except as provided in subsection (h) hereof, all new | 15 | | vehicle
dealer's licenses granted under this Section shall | 16 | | expire by operation
of law on December 31 of the calendar year | 17 | | for which they are granted
unless sooner revoked or cancelled | 18 | | under the provisions of Section 5-501
of this Chapter.
| 19 | | (h) A new vehicle dealer's license may be renewed upon | 20 | | application
and payment of the fee required herein, and | 21 | | submission of proof of
coverage under an approved bond under | 22 | | the "Retailers' Occupation Tax
Act" or proof that applicant is | 23 | | not subject to such bonding
requirements, as in the case of an | 24 | | original license, but in case an
application for the renewal of | 25 | | an effective license is made during the
month of December, the | 26 | | effective license shall remain in force until the
application |
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| 1 | | is granted or denied by the Secretary of State.
| 2 | | (i) All persons licensed as a new vehicle dealer are | 3 | | required to
furnish each purchaser of a motor vehicle:
| 4 | | 1. In the case of a new vehicle a manufacturer's | 5 | | statement of origin
and in the case of a used motor vehicle | 6 | | a certificate of title, in
either case properly assigned to | 7 | | the purchaser;
| 8 | | 2. A statement verified under oath that all identifying | 9 | | numbers on
the vehicle agree with those on the certificate | 10 | | of title or
manufacturer's statement of origin;
| 11 | | 3. A bill of sale properly executed on behalf of such | 12 | | person;
| 13 | | 4. A copy of the Uniform Invoice-transaction reporting | 14 | | return
referred to in Section 5-402 hereof;
| 15 | | 5. In the case of a rebuilt vehicle, a copy of the | 16 | | Disclosure of Rebuilt
Vehicle Status; and
| 17 | | 6. In the case of a vehicle for which the warranty has | 18 | | been reinstated, a
copy of the warranty.
| 19 | | (j) Except at the time of sale or repossession of the | 20 | | vehicle, no person
licensed as a new vehicle dealer may issue | 21 | | any other person a newly created
key to a vehicle unless the | 22 | | new vehicle dealer makes a copy of the driver's
license or | 23 | | State identification card of the person requesting or obtaining | 24 | | the
newly created key. The new vehicle dealer must retain the | 25 | | copy for 30 days.
| 26 | | A new vehicle dealer who violates this subsection (j) is |
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| 1 | | guilty of a
petty offense. Violation of this subsection (j) is | 2 | | not cause to suspend,
revoke,
cancel, or deny renewal of the | 3 | | new vehicle dealer's license.
| 4 | | This amendatory Act of 1983 shall be applicable to the 1984 | 5 | | registration
year and thereafter.
| 6 | | (Source: P.A. 92-391, eff. 8-16-01; 92-835, eff. 6-1-03; 93-32, | 7 | | eff. 7-1-03.)
| 8 | | (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
| 9 | | Sec. 5-102. Used vehicle dealers must be licensed.
| 10 | | (a) No person, other than a licensed new vehicle dealer, | 11 | | shall engage in
the business of selling or dealing in, on | 12 | | consignment or otherwise, 5 or
more used vehicles of any make | 13 | | during the year (except house trailers as
authorized by | 14 | | paragraph (j) of this Section and rebuilt salvage vehicles
sold | 15 | | by their rebuilders to persons licensed under this Chapter), or | 16 | | act as
an intermediary, agent or broker for any licensed dealer | 17 | | or vehicle
purchaser (other than as a salesperson) or represent | 18 | | or advertise that he
is so engaged or intends to so engage in | 19 | | such business unless licensed to
do so by the Secretary of | 20 | | State under the provisions of this Section.
| 21 | | (b) An application for a used vehicle dealer's license | 22 | | shall be
filed with the Secretary of State, duly verified by | 23 | | oath, in such form
as the Secretary of State may by rule or | 24 | | regulation prescribe and shall
contain:
| 25 | | 1. The name and type of business organization |
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| 1 | | established and additional
places of business, if any, in | 2 | | this State.
| 3 | | 2. If the applicant is a corporation, a list of its | 4 | | officers,
directors, and shareholders having a ten percent | 5 | | or greater ownership
interest in the corporation, setting | 6 | | forth the residence address of
each; if the applicant is a | 7 | | sole proprietorship, a partnership, an
unincorporated | 8 | | association, a trust, or any similar form of business
| 9 | | organization, the names and residence address of the | 10 | | proprietor or of
each partner, member, officer, director, | 11 | | trustee or manager.
| 12 | | 3. A statement that the applicant has been approved for | 13 | | registration
under the Retailers' Occupation Tax Act by the | 14 | | Department of Revenue. However,
this requirement does not | 15 | | apply to a dealer who is already licensed
hereunder with | 16 | | the Secretary of State, and who is merely applying for a
| 17 | | renewal of his license. As evidence of this fact, the | 18 | | application shall be
accompanied by a certification from | 19 | | the Department of Revenue showing that
the Department has | 20 | | approved the applicant for registration under the
| 21 | | Retailers' Occupation Tax Act.
| 22 | | 4. A statement that the applicant has complied with the | 23 | | appropriate
liability insurance requirement. A Certificate | 24 | | of Insurance in a solvent
company authorized to do business | 25 | | in the State of Illinois shall be included
with each | 26 | | application covering each location at which he proposes to |
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| 1 | | act
as a used vehicle dealer. The policy must provide | 2 | | liability coverage in
the minimum amounts of $100,000 for | 3 | | bodily injury to, or death of, any person,
$300,000 for | 4 | | bodily injury to, or death of, two or more persons in any | 5 | | one
accident, and $50,000 for damage to property. Such | 6 | | policy shall expire
not sooner than December 31 of the year | 7 | | for which the license was issued
or renewed. The expiration | 8 | | of the insurance policy shall not terminate
the liability | 9 | | under the policy arising during the period for which the | 10 | | policy
was filed. Trailer and mobile home dealers are | 11 | | exempt from this requirement.
| 12 | | If the permitted user has a liability insurance policy | 13 | | that provides
automobile
liability insurance coverage of | 14 | | at least $100,000 for bodily injury to or the
death of any
| 15 | | person, $300,000 for bodily injury to or the death of any 2 | 16 | | or more persons in
any one
accident, and $50,000 for damage | 17 | | to property,
then the permitted user's insurer shall be the | 18 | | primary
insurer and the
dealer's insurer shall be the | 19 | | secondary insurer. If the permitted user does not
have a | 20 | | liability
insurance policy that provides automobile | 21 | | liability insurance coverage of at
least
$100,000 for | 22 | | bodily injury to or the death of any person, $300,000 for | 23 | | bodily
injury to or
the death of any 2 or more persons in | 24 | | any one accident, and $50,000 for damage
to
property, or | 25 | | does not have any insurance at all,
then the
dealer's
| 26 | | insurer shall be the primary insurer and the permitted |
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| 1 | | user's insurer shall be
the secondary
insurer.
| 2 | | When a permitted user is "test driving" a used vehicle | 3 | | dealer's automobile,
the used vehicle dealer's insurance | 4 | | shall be primary and the permitted user's
insurance shall | 5 | | be secondary.
| 6 | | As used in this paragraph 4, a "permitted user" is a | 7 | | person who, with the
permission of the used vehicle dealer | 8 | | or an employee of the used vehicle
dealer, drives a vehicle | 9 | | owned and held for sale or lease by the used vehicle
dealer | 10 | | which the person is considering to purchase or lease, in | 11 | | order to
evaluate the performance, reliability, or | 12 | | condition of the vehicle.
The term "permitted user" also | 13 | | includes a person who, with the permission of
the used
| 14 | | vehicle dealer, drives a vehicle owned or held for sale or | 15 | | lease by the used
vehicle dealer
for loaner purposes while | 16 | | the user's vehicle is being repaired or evaluated.
| 17 | | As used in this paragraph 4, "test driving" occurs when | 18 | | a permitted user
who,
with the permission of the used | 19 | | vehicle dealer or an employee of the used
vehicle
dealer, | 20 | | drives a vehicle owned and held for sale or lease by a used | 21 | | vehicle
dealer that the person is considering to purchase | 22 | | or lease, in order to
evaluate the performance, | 23 | | reliability, or condition of the
vehicle.
| 24 | | As used in this paragraph 4, "loaner purposes" means | 25 | | when a person who,
with the permission of the used vehicle | 26 | | dealer, drives a vehicle owned or held
for sale or lease by |
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| 1 | | the used vehicle dealer while the
user's vehicle is being | 2 | | repaired or evaluated.
| 3 | | 5. An application for a used vehicle dealer's license | 4 | | shall be
accompanied by the following license fees:
| 5 | | (A) $1,000 for applicant's established place of | 6 | | business, and
$50 for
each additional place of | 7 | | business, if any, to which the application
pertains; | 8 | | however, if the application is made after June 15 of | 9 | | any
year, the license fee shall be $500 for applicant's | 10 | | established
place of
business plus $25 for each | 11 | | additional place of business, if any,
to
which the | 12 | | application pertains. License fees shall be returnable | 13 | | only in
the event that the application is denied by
the | 14 | | Secretary of State. Of the money received by the | 15 | | Secretary of State as
license fees under this | 16 | | subparagraph (A) Section for the 2004 licensing year | 17 | | and thereafter, 95%
shall be deposited into the General | 18 | | Revenue Fund.
| 19 | | (B) Except as provided in subsection (h) of Section | 20 | | 5-102.7 of this Code, an Annual Dealer Recovery Fund | 21 | | Fee in the amount of $500 for the applicant's | 22 | | established place of business, and $50 for each | 23 | | additional place of business, if any, to which the | 24 | | application pertains; but if the application is made | 25 | | after June 15 of any year, the fee shall be $250 for | 26 | | the applicant's established place of business plus $25 |
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| 1 | | for each additional place of business, if any, to which | 2 | | the application pertains. License fees shall be | 3 | | returnable only in the event that the application is | 4 | | denied by the Secretary of State. Moneys received under | 5 | | this subparagraph (B) shall be deposited into the | 6 | | Dealer Recovery Trust Fund.
| 7 | | 6. A statement that the applicant's officers, | 8 | | directors, shareholders
having a 10% or greater ownership | 9 | | interest therein, proprietor, partner,
member, officer, | 10 | | director, trustee, manager or other principals in the
| 11 | | business have not committed in the past 3 years any one | 12 | | violation as
determined in any civil, criminal or | 13 | | administrative proceedings of any one
of the following | 14 | | Acts:
| 15 | | (A) The Anti Theft Laws of the Illinois Vehicle | 16 | | Code;
| 17 | | (B) The Certificate of Title Laws of the Illinois | 18 | | Vehicle Code;
| 19 | | (C) The Offenses against Registration and | 20 | | Certificates of Title
Laws of the Illinois Vehicle | 21 | | Code;
| 22 | | (D) The Dealers, Transporters, Wreckers and | 23 | | Rebuilders Laws of the
Illinois Vehicle Code;
| 24 | | (E) Section 21-2 of the Illinois Criminal Code of | 25 | | 1961, Criminal
Trespass to Vehicles; or
| 26 | | (F) The Retailers' Occupation Tax Act.
|
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| 1 | | 7. A statement that the applicant's officers, | 2 | | directors,
shareholders having a 10% or greater ownership | 3 | | interest therein,
proprietor, partner, member, officer, | 4 | | director, trustee, manager or
other principals in the | 5 | | business have not committed in any calendar year
3 or more | 6 | | violations, as determined in any civil or criminal or
| 7 | | administrative proceedings, of any one or more of the | 8 | | following Acts:
| 9 | | (A) The Consumer Finance Act;
| 10 | | (B) The Consumer Installment Loan Act;
| 11 | | (C) The Retail Installment Sales Act;
| 12 | | (D) The Motor Vehicle Retail Installment Sales | 13 | | Act;
| 14 | | (E) The Interest Act;
| 15 | | (F) The Illinois Wage Assignment Act;
| 16 | | (G) Part 8 of Article XII of the Code of Civil | 17 | | Procedure; or
| 18 | | (H) The Consumer Fraud Act.
| 19 | | 8. A bond or Certificate of Deposit in the amount of | 20 | | $20,000 for
each location at which the applicant intends to | 21 | | act as a used vehicle
dealer. The bond shall be for the | 22 | | term of the license, or its renewal, for
which application | 23 | | is made, and shall expire not sooner than December 31 of
| 24 | | the year for which the license was issued or renewed. The | 25 | | bond shall run
to the People of the State of Illinois, with | 26 | | surety by a bonding or
insurance company authorized to do |
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| 1 | | business in this State. It shall be
conditioned upon the | 2 | | proper transmittal of all title and registration fees
and | 3 | | taxes (excluding taxes under the Retailers' Occupation Tax | 4 | | Act) accepted
by the applicant as a used vehicle dealer.
| 5 | | 9. Such other information concerning the business of | 6 | | the applicant as
the Secretary of State may by rule or | 7 | | regulation prescribe.
| 8 | | 10. A statement that the applicant understands Chapter | 9 | | 1 through
Chapter 5 of this Code.
| 10 | | 11. A copy of the certification from the prelicensing | 11 | | education
program. | 12 | | (c) Any change which renders no longer accurate any | 13 | | information
contained in any application for a used vehicle | 14 | | dealer's license shall
be amended within 30 days after the | 15 | | occurrence of each change on such
form as the Secretary of | 16 | | State may prescribe by rule or regulation,
accompanied by an | 17 | | amendatory fee of $2.
| 18 | | (d) Anything in this Chapter to the contrary | 19 | | notwithstanding, no
person shall be licensed as a used vehicle | 20 | | dealer unless such person
maintains an established place of | 21 | | business as
defined in this Chapter.
| 22 | | (e) The Secretary of State shall, within a reasonable time | 23 | | after
receipt, examine an application submitted to him under | 24 | | this Section.
Unless the Secretary makes a determination that | 25 | | the application
submitted to him does not conform to this | 26 | | Section or that grounds exist
for a denial of the application |
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| 1 | | under Section 5-501 of this Chapter, he
must grant the | 2 | | applicant an original used vehicle dealer's license in
writing | 3 | | for his established place of business and a supplemental | 4 | | license
in writing for each additional place of business in | 5 | | such form as he may
prescribe by rule or regulation which shall | 6 | | include the following:
| 7 | | 1. The name of the person licensed;
| 8 | | 2. If a corporation, the name and address of its | 9 | | officers or if a
sole proprietorship, a partnership, an | 10 | | unincorporated association or any
similar form of business | 11 | | organization, the name and address of the
proprietor or of | 12 | | each partner, member, officer, director, trustee or
| 13 | | manager;
| 14 | | 3. In case of an original license, the established | 15 | | place of business
of the licensee;
| 16 | | 4. In the case of a supplemental license, the | 17 | | established place of
business of the licensee and the | 18 | | additional place of business to which such
supplemental | 19 | | license pertains.
| 20 | | (f) The appropriate instrument evidencing the license or a | 21 | | certified
copy thereof, provided by the Secretary of State | 22 | | shall be kept posted,
conspicuously, in the established place | 23 | | of business of the licensee and
in each additional place of | 24 | | business, if any, maintained by such
licensee.
| 25 | | (g) Except as provided in subsection (h) of this Section, | 26 | | all used
vehicle dealer's licenses granted under this Section |
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| 1 | | expire by operation
of law on December 31 of the calendar year | 2 | | for which they are granted
unless sooner revoked or cancelled | 3 | | under Section 5-501 of this Chapter.
| 4 | | (h) A used vehicle dealer's license may be renewed upon | 5 | | application
and payment of the fee required herein, and | 6 | | submission of proof of
coverage by an approved bond under the | 7 | | "Retailers' Occupation Tax Act"
or proof that applicant is not | 8 | | subject to such bonding requirements, as
in the case of an | 9 | | original license, but in case an application for the
renewal of | 10 | | an effective license is made during the month of December,
the | 11 | | effective license shall remain in force until the application | 12 | | for
renewal is granted or denied by the Secretary of State.
| 13 | | (i) All persons licensed as a used vehicle dealer are | 14 | | required to
furnish each purchaser of a motor vehicle:
| 15 | | 1. A certificate of title properly assigned to the | 16 | | purchaser;
| 17 | | 2. A statement verified under oath that all identifying | 18 | | numbers on
the vehicle agree with those on the certificate | 19 | | of title;
| 20 | | 3. A bill of sale properly executed on behalf of such | 21 | | person;
| 22 | | 4. A copy of the Uniform Invoice-transaction reporting | 23 | | return
referred to in Section 5-402 of this Chapter;
| 24 | | 5. In the case of a rebuilt vehicle, a copy of the | 25 | | Disclosure of Rebuilt
Vehicle Status; and
| 26 | | 6. In the case of a vehicle for which the warranty has |
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| 1 | | been reinstated, a
copy of the warranty.
| 2 | | (j) A real estate broker holding a valid certificate of | 3 | | registration issued
pursuant to "The Real Estate Brokers and | 4 | | Salesmen License Act" may engage
in the business of selling or | 5 | | dealing in house trailers not his own without
being licensed as | 6 | | a used vehicle dealer under this Section; however such
broker | 7 | | shall maintain a record of the transaction including the | 8 | | following:
| 9 | | (1) the name and address of the buyer and seller,
| 10 | | (2) the date of sale,
| 11 | | (3) a description of the mobile home, including the | 12 | | vehicle identification
number, make, model, and year, and
| 13 | | (4) the Illinois certificate of title number.
| 14 | | The foregoing records shall be available for inspection by | 15 | | any officer
of the Secretary of State's Office at any | 16 | | reasonable hour.
| 17 | | (k) Except at the time of sale or repossession of the | 18 | | vehicle, no
person licensed as a used vehicle dealer may issue | 19 | | any other person a newly
created key to a vehicle unless the | 20 | | used vehicle dealer makes a copy of the
driver's license or | 21 | | State identification card of the person requesting or
obtaining | 22 | | the newly created key. The used vehicle dealer must retain the
| 23 | | copy for 30 days.
| 24 | | A used vehicle dealer who violates this subsection (k) is | 25 | | guilty of a
petty offense. Violation of this subsection (k) is | 26 | | not cause to suspend,
revoke, cancel, or deny renewal of the |
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| 1 | | used vehicle dealer's license. | 2 | | (l) Used vehicle dealers licensed under this Section shall | 3 | | provide the Secretary of State a register for the sale at | 4 | | auction of each salvage or junk certificate vehicle. Each | 5 | | register shall include the following information: | 6 | | 1. The year, make, model, style and color of the | 7 | | vehicle; | 8 | | 2. The vehicle's manufacturer's identification number | 9 | | or, if applicable, the Secretary of State or Illinois | 10 | | Department of State Police identification number; | 11 | | 3. The date of acquisition of the vehicle; | 12 | | 4. The name and address of the person from whom the | 13 | | vehicle was acquired; | 14 | | 5. The name and address of the person to whom any | 15 | | vehicle was disposed, the person's Illinois license number | 16 | | or if the person is an out-of-state salvage vehicle buyer, | 17 | | the license number from the state or jurisdiction where the | 18 | | buyer is licensed; and | 19 | | 6. The purchase price of the vehicle. | 20 | | The register shall be submitted to the Secretary of State | 21 | | via written or electronic means within 10 calendar days from | 22 | | the date of the auction.
| 23 | | (Source: P.A. 95-783, eff. 1-1-09; 96-678, eff. 8-25-09.)
| 24 | | (625 ILCS 5/5-102.7 new) | 25 | | Sec. 5-102.7. Dealer Recovery Trust Fund. |
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| 1 | | (a) The General Assembly finds that motor vehicle dealers | 2 | | that go out of business without fulfilling agreements to pay | 3 | | off the balance of their customers' liens on traded-in vehicles | 4 | | cause financial harm to those customers by leaving those | 5 | | customers liable for multiple vehicle loans and cause harm to | 6 | | the integrity of the motor vehicle retailing industry. It is | 7 | | the intent of the General Assembly to protect vehicle | 8 | | purchasers by creating a Dealer Recovery Trust Fund to | 9 | | reimburse these consumers. | 10 | | (b) The Dealer Recovery Trust Fund shall be used solely for | 11 | | the limited purpose of
helping victims of dealership closings. | 12 | | Any interest accrued by moneys in the Fund shall be
deposited | 13 | | and become part of the Dealer Recovery Trust Fund and its | 14 | | purpose. The sole beneficiaries of the Dealer Recovery Trust | 15 | | Fund are victims of
dealership closings. | 16 | | (c) Except where the context otherwise requires, the | 17 | | following words and phrases, when used in this Section, have | 18 | | the meanings ascribed to them in this subsection (c): | 19 | | "Applicant" means a person who applies for reimbursement | 20 | | from the Dealer Recovery Trust Fund Board. | 21 | | "Board" means the Dealer Recovery Trust Fund Board created | 22 | | under this Section. | 23 | | "Dealer" means a new vehicle dealer licensed under Section | 24 | | 5-101 or a used vehicle dealer licensed under Section 5-102, | 25 | | excepting a dealer who primarily sells mobile homes, | 26 | | recreational vehicles, or trailers. |
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| 1 | | "Fund" means the Dealer Recovery Trust Fund created under | 2 | | this Section. | 3 | | "Fund Administrator" means the entity that administers the | 4 | | Dealer Recovery Trust Fund, which shall be appointed by the | 5 | | Board. | 6 | | (d) Beginning October 1, 2011, each application or renewal | 7 | | for a new vehicle dealer's license and each application or | 8 | | renewal for a used vehicle dealer's license shall be | 9 | | accompanied by the applicable Annual Dealer Recovery Fund Fee | 10 | | under Section 5-101 or 5-102 of this Code. The fee shall be in | 11 | | addition to any other fees imposed under this Article, shall be | 12 | | submitted at the same time an application or renewal for a new | 13 | | vehicle dealer's license or used vehicle dealer's license is | 14 | | submitted, and shall be made payable to and remitted directly | 15 | | to the Dealer Recovery Trust Fund, a trust fund outside of the | 16 | | State Treasury which is hereby created. In addition, the Dealer | 17 | | Recovery Trust Fund may accept any federal, State, or private | 18 | | moneys for deposit into the Fund. | 19 | | (e) The Fund Administrator shall maintain a list of all | 20 | | dealers who have paid the fee under subsection (d) of this | 21 | | Section for the current year, which shall be available to the | 22 | | Secretary of State and the Board. The Secretary of State shall | 23 | | revoke the dealer license of any dealer who does not pay the | 24 | | fee imposed under subsection (d) of this Section. The Secretary | 25 | | of State and the Fund Administrator may enter into information | 26 | | sharing agreements as needed to implement this Section. |
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| 1 | | (f) The Fund shall be audited annually by an independent | 2 | | auditor who is a certified public accountant and who has been | 3 | | selected by the Board. The independent auditor shall compile an | 4 | | annual report, which shall be filed with the Board and shall be | 5 | | a public record. The auditor shall be paid by the Fund, | 6 | | pursuant to an order of the Board. | 7 | | (g) The Fund shall be maintained by the Fund Administrator, | 8 | | who shall keep current records of the amounts deposited into | 9 | | the Fund and the amounts paid out of the Fund pursuant to an | 10 | | order of the Board. These records shall be made available to | 11 | | all members of the Board upon reasonable request during normal | 12 | | business hours. The Fund Administrator shall report the balance | 13 | | in the Fund to the Board monthly, by the 15th day of each | 14 | | month. For purposes of determining the amount available to pay | 15 | | claims under this Section at any meeting of the Board, the | 16 | | Board shall use the Fund Administrator's most recent monthly | 17 | | report. The Fund Administrator shall purchase liability | 18 | | insurance to cover management of the Fund at a cost not to | 19 | | exceed 2% of the balance in the Fund as of January 15th of that | 20 | | year. | 21 | | (h) In any year for which the balance in the Fund as of | 22 | | August 31st is greater than $3,500,000, the Fund Administrator | 23 | | shall notify the Secretary of State and the Secretary of State | 24 | | shall suspend collection of the fee for the following year for | 25 | | any dealer who has not had a claim paid from the Fund, has not | 26 | | had his or her license suspended or revoked, and has not been |
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| 1 | | assessed any civil penalties under this Code during the 3 | 2 | | previous years. | 3 | | (i) Moneys in the Dealer Recovery Trust Fund may be paid | 4 | | from the Fund only as directed by a written order of the Board | 5 | | and used only for the following purposes: | 6 | | (i) to pay claims under a written order of the Board as | 7 | | provided in this Section; or | 8 | | (ii) to reimburse the Fund Administrator for its | 9 | | expenses related to the administration of the Fund, | 10 | | provided that the reimbursement to the Fund Administrator | 11 | | in any year shall not exceed 2% of the balance in the Fund | 12 | | as of January 15th of that year. | 13 | | (j) The Dealer Recovery Trust Fund Board is hereby created. | 14 | | The Board shall consist of the Secretary of State, or his or | 15 | | her designee, who shall serve as chair, the Attorney General, | 16 | | or his or her designee, who shall serve as secretary, and one | 17 | | person representing Illinois automobile dealers, selected | 18 | | collectively by the Attorney General, or his or her designee, | 19 | | and the Secretary of State, or his or her designee. The | 20 | | Secretary of State may propose procedures and employ personnel | 21 | | as necessary to implement this Section. The Board shall meet at | 22 | | least twice per year, and as needed, as directed by the chair. | 23 | | The Board may not pay out any claims before the balance | 24 | | deposited into the Fund exceeds $500,000. Board meetings shall | 25 | | be open to the public. The Board has the authority to take any | 26 | | action by at least a two-thirds majority vote. |
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| 1 | | (k) The following persons may apply to the Board for | 2 | | reimbursement from the Dealer Recovery Trust Fund: | 3 | | (i) A retail customer who, on or after October 1, 2011, | 4 | | purchases a vehicle from a dealer who subsequently files | 5 | | for bankruptcy or whose vehicle dealer's license is | 6 | | subsequently revoked by the Secretary of State or otherwise | 7 | | terminated and, as part of the purchase transaction, trades | 8 | | in a vehicle with an outstanding lien to the dealer if lien | 9 | | satisfaction was a condition of the purchase agreement and | 10 | | the retail customer determines that the lien has not been | 11 | | satisfied; | 12 | | (ii) A retail customer who, on or after October 1, | 13 | | 2011, purchases a vehicle with an undisclosed lien from a | 14 | | dealer who subsequently files for bankruptcy or whose | 15 | | vehicle dealer's license is subsequently revoked by the | 16 | | Secretary of State or otherwise terminated; | 17 | | (iii) A dealer who, on or after October 1, 2011, | 18 | | purchases a vehicle with an undisclosed lien from another | 19 | | dealer who subsequently files for bankruptcy or whose | 20 | | vehicle dealer's license is subsequently revoked by the | 21 | | Secretary of State or otherwise terminated. | 22 | | (l) To be considered by the Board, an applicant must submit | 23 | | his or her claim to the Board within 9 months after the date of | 24 | | the transaction that gave rise to the claim. | 25 | | (m) At each meeting of the Board, it shall consider all | 26 | | claims that are properly submitted to it on forms prescribed by |
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| 1 | | the Secretary of State at least 30 days before the date of the | 2 | | Board's meeting. Before the Board may consider a claim against | 3 | | a dealer, it must make a written determination that the dealer | 4 | | has filed for bankruptcy under the provisions of 11 U.S.C. | 5 | | Chapter 7; that the Secretary of State has revoked his or her | 6 | | dealer's license; or that the license has been otherwise | 7 | | terminated. Once the Board has made this determination, it may | 8 | | consider the applicant's claim against the dealer. If a | 9 | | two-thirds majority of the Board determines that the dealer has | 10 | | committed a violation under subsection (k), it shall grant the | 11 | | applicant's claim. Except as otherwise provided in this | 12 | | Section, the maximum amount of any award for a claim under | 13 | | paragraph (i) of subsection (k) of this Section shall be equal | 14 | | to the amount of the unpaid balance of the lien that the dealer | 15 | | agreed to pay off on behalf of the applicant as shown on the | 16 | | bill of sale or the retail installment sales contract. The | 17 | | maximum amount of any claim under paragraph (ii) or (iii) of | 18 | | subsection (k) of this Section shall be equal to the amount of | 19 | | the undisclosed lien. However, no award for a claim under | 20 | | subsection (k) of this Section shall exceed $35,000. | 21 | | (n) If the balance in the Fund at the time of any Board | 22 | | meeting is less than the amount of the total amount of all | 23 | | claims awarded at that meeting, then all awards made at that | 24 | | meeting shall be reduced, pro rata, so that the amount of | 25 | | claims does not exceed the balance in the Fund. Before it | 26 | | reviews new claims, the Board shall issue written orders to pay |
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| 1 | | the remaining portion of any claims that were so reduced, | 2 | | provided that the balance in the Fund is sufficient to pay | 3 | | those claims. | 4 | | (o) Whenever the balance of the Fund falls below $500,000, | 5 | | the Board may charge dealers
an additional assessment of up to | 6 | | $50 to bring the balance to at least $500,000.
Not more than | 7 | | one additional assessment may be made against a dealer in any | 8 | | 12-month period. | 9 | | (p) If the total amount of claims awarded against any | 10 | | dealer exceeds 33% of the balance in the Fund, the Board may | 11 | | permanently reduce the amount of those claims, pro rata, so | 12 | | that those claims do not exceed 33% of the balance in the Fund. | 13 | | (q) The Board shall issue a written order directing the | 14 | | Fund Administrator to pay an applicant's claim to a secured | 15 | | party where the Board has received a signed agreement between | 16 | | the applicant and the secured party holding the lien. The | 17 | | agreement must (i) state that the applicant and the secured | 18 | | party agree to accept payment from the Fund to the secured | 19 | | party as settlement in full of all claims against the dealer; | 20 | | and (ii) release the lien and the title, if applicable, to the | 21 | | vehicle that was the subject of the claim. The written order | 22 | | shall state the amount of the claim and the name and address of | 23 | | the secured party to whom the claim shall be paid. The Fund | 24 | | Administrator shall pay the claim within 30 days after it | 25 | | receives the Board's order. | 26 | | (r) No dealer or principal associated with a dealer's |
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| 1 | | license is eligible for licensure, renewal or relicensure until | 2 | | the full amount of reimbursement for an unpaid claim, plus | 3 | | interest as determined by the Board, is paid to the Fund. | 4 | | Nothing in this Section shall limit the authority of the | 5 | | Secretary of State to suspend, revoke, or levy civil penalties | 6 | | against a dealer, nor shall full repayment of the amount owed | 7 | | to the Fund nullify or modify the effect of any action by the | 8 | | Secretary. | 9 | | (s) Nothing in this Section shall limit the right of any | 10 | | person to seek relief though civil action against any other | 11 | | person as an alternative to seeking reimbursement from the | 12 | | Fund.
| 13 | | (625 ILCS 5/5-501) (from Ch. 95 1/2, par. 5-501)
| 14 | | Sec. 5-501. Denial, suspension or revocation or | 15 | | cancellation of a license. | 16 | | (a) The license of a person issued under this Chapter may | 17 | | be denied,
revoked or suspended if the Secretary of State finds | 18 | | that the applicant,
or the officer, director, shareholder | 19 | | having a ten percent or
greater ownership interest in the | 20 | | corporation, owner, partner, trustee,
manager, employee or the | 21 | | licensee
has:
| 22 | | 1. Violated this Act;
| 23 | | 2. Made any material misrepresentation to the | 24 | | Secretary of State in
connection with an application for a | 25 | | license, junking certificate,
salvage certificate, title |
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| 1 | | or registration;
| 2 | | 3. Committed a fraudulent act in connection with | 3 | | selling,
bartering, exchanging, offering for sale or | 4 | | otherwise dealing in
vehicles, chassis, essential parts, | 5 | | or vehicle shells;
| 6 | | 4. As a new vehicle dealer has no contract with a | 7 | | manufacturer or
enfranchised distributor to sell that new | 8 | | vehicle in this State;
| 9 | | 5. Not maintained an established place of business as | 10 | | defined in
this Code;
| 11 | | 6. Failed to file or produce for the Secretary of State | 12 | | any
application, report, document or other pertinent | 13 | | books, records,
documents, letters, contracts, required to | 14 | | be filed or produced under
this Code or any rule or | 15 | | regulation made by the Secretary of State
pursuant to this | 16 | | Code;
| 17 | | 7. Previously had, within 3 years, such a license | 18 | | denied, suspended,
revoked, or cancelled under the | 19 | | provisions of subsection (c)(2)
of this Section;
| 20 | | 8. Has committed in any calendar year 3 or more | 21 | | violations, as
determined in any civil or criminal | 22 | | proceeding, of any one or more of
the following Acts:
| 23 | | a. the "Consumer Finance Act";
| 24 | | b. the "Consumer Installment Loan Act";
| 25 | | c. the "Retail Installment Sales Act";
| 26 | | d. the "Motor Vehicle Retail Installment Sales |
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| 1 | | Act";
| 2 | | e. "An Act in relation to the rate of interest and | 3 | | other charges in
connection with sales on credit and | 4 | | the lending of money", approved May
24, 1879, as | 5 | | amended;
| 6 | | f. "An Act to promote the welfare of wage-earners | 7 | | by regulating the
assignment of wages, and prescribing | 8 | | a penalty for the violation
thereof", approved July 1, | 9 | | 1935, as amended;
| 10 | | g. Part 8 of Article XII of the Code of Civil | 11 | | Procedure; or
| 12 | | h. the "Consumer Fraud Act";
| 13 | | 9. Failed to pay any fees or taxes due under this Act, | 14 | | or has
failed to transmit any fees or taxes received by him | 15 | | for transmittal by
him to the Secretary of State or the | 16 | | State of Illinois;
| 17 | | 10. Converted an abandoned vehicle;
| 18 | | 11. Used a vehicle identification plate or number | 19 | | assigned to a
vehicle other than the one to which | 20 | | originally assigned;
| 21 | | 12. Violated the provisions of Chapter 5 of this Act, | 22 | | as amended;
| 23 | | 13. Violated the provisions of Chapter 4 of this Act, | 24 | | as amended;
| 25 | | 14. Violated the provisions of Chapter 3 of this Act, | 26 | | as amended;
|
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| 1 | | 15. Violated Section 21-2 of the Criminal Code of 1961, | 2 | | Criminal Trespass
to Vehicles;
| 3 | | 16. Made or concealed a material fact in connection | 4 | | with his application
for a license;
| 5 | | 17. Acted in the capacity of a person licensed or acted | 6 | | as a licensee
under this Chapter without having a license | 7 | | therefor;
| 8 | | 18. Failed to pay, within 90 days after a final | 9 | | judgment, any fines
assessed against the licensee pursuant | 10 | | to an action brought under Section 5-404 ; .
| 11 | | 19. Failed to pay the Dealer Recovery Trust Fund fee | 12 | | under Section 5-102.7 of this Code. | 13 | | (b) In addition to other grounds specified in this Chapter, | 14 | | the
Secretary of State, on complaint of the Department of | 15 | | Revenue, shall
refuse the issuance or renewal of a license, or | 16 | | suspend or revoke such
license, for any of the following | 17 | | violations of the "Retailers'
Occupation Tax Act":
| 18 | | 1. Failure to make a tax return;
| 19 | | 2. The filing of a fraudulent return;
| 20 | | 3. Failure to pay all or part of any tax or penalty | 21 | | finally
determined to be due;
| 22 | | 4. Failure to comply with the bonding requirements of | 23 | | the
"Retailers' Occupation Tax Act".
| 24 | | (b-1) In addition to other grounds specified in this | 25 | | Chapter, the
Secretary of State, on complaint of the Motor | 26 | | Vehicle Review Board, shall
refuse the issuance or renewal of a |
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| 1 | | license, or suspend or revoke that
license, if costs or fees | 2 | | assessed under Section 29 or Section 30 of the Motor Vehicle | 3 | | Franchise Act have remained unpaid for a period in excess of 90 | 4 | | days after the licensee received from the Motor Vehicle Board a | 5 | | second notice and demand for the costs or fees. The Motor | 6 | | Vehicle Review Board must send the licensee written notice and | 7 | | demand for payment of the fees or costs at least 2 times, and | 8 | | the second notice and demand must be sent by certified mail.
| 9 | | (c) Cancellation of a license.
| 10 | | 1. The license of a person issued under this Chapter | 11 | | may be cancelled
by the Secretary of State prior to its | 12 | | expiration in any of the following
situations:
| 13 | | A. When a license is voluntarily surrendered, by | 14 | | the licensed person;
or
| 15 | | B. If the business enterprise is a sole | 16 | | proprietorship, which is not a
franchised dealership, | 17 | | when the sole proprietor dies or is imprisoned for
any | 18 | | period of time exceeding 30 days; or
| 19 | | C. If the license was issued to the wrong person or | 20 | | corporation, or
contains an error on its face. If any | 21 | | person above whose license
has been cancelled wishes to | 22 | | apply for another license, whether during the
same | 23 | | license year or any other year, that person shall be | 24 | | treated as any
other new applicant and the cancellation | 25 | | of the person's prior license
shall not, in and of | 26 | | itself, be a bar to the issuance of a new license.
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| 1 | | 2. The license of a person issued under this Chapter | 2 | | may be cancelled
without a hearing when the Secretary of | 3 | | State is notified that the
applicant, or any officer, | 4 | | director, shareholder having a 10 per cent or
greater | 5 | | ownership interest in the corporation, owner, partner, | 6 | | trustee,
manager, employee or member of the applicant or | 7 | | the licensee has been
convicted of any felony involving the | 8 | | selling, bartering, exchanging,
offering for sale, or | 9 | | otherwise dealing in vehicles, chassis, essential
parts, | 10 | | vehicle shells, or ownership documents relating to any of | 11 | | the
above items.
| 12 | | (Source: P.A. 94-287, eff. 1-1-06.)
| 13 | | Section 99. Effective date. This Act takes effect October | 14 | | 1, 2011.".
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