(625 ILCS 5/4-203) (from Ch. 95 1/2, par. 4-203)
Sec. 4-203. Removal of motor vehicles or other vehicles; towing or
hauling away.
(a) When a vehicle is abandoned, or left unattended, on a toll
highway, interstate highway, or expressway for 2 hours or more, its
removal by a towing service may be authorized by a law enforcement
agency having jurisdiction.
(b) When a vehicle is abandoned on a highway in an urban district for 10
hours or more, its removal by a towing service may be authorized by a
law enforcement agency having jurisdiction.
(c) When a vehicle is abandoned or left unattended on a highway
other than a toll highway, interstate highway, or expressway, outside of
an urban district for 24 hours or more, its removal by a towing service
may be authorized by a law enforcement agency having jurisdiction.
(d) When an abandoned, unattended, wrecked, burned, or partially
dismantled vehicle is creating a traffic hazard because of its position
in relation to the highway or its physical appearance is causing the
impeding of traffic, its immediate removal from the highway or private
property adjacent to the highway by a towing service may be authorized
by a law enforcement agency having jurisdiction.
(e) Whenever a
peace officer reasonably believes that a person under
arrest for a violation of Section 11-501 of this Code or a similar
provision of a local ordinance is likely, upon release, to commit a
subsequent violation of Section 11-501, or a similar provision of a local
ordinance, the arresting officer shall have the vehicle which the person
was operating at the time of the arrest impounded for a period of 12 hours after the time of arrest. However, such vehicle may be
released by the arresting law enforcement agency prior to the end of the
impoundment period if:
(1) the vehicle was not owned by the person under |
| arrest, and the lawful owner requesting such release possesses a valid operator's license, proof of ownership, and would not, as determined by the arresting law enforcement agency, indicate a lack of ability to operate a motor vehicle in a safe manner, or who would otherwise, by operating such motor vehicle, be in violation of this Code; or
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(2) the vehicle is owned by the person under arrest,
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| and the person under arrest gives permission to another person to operate such vehicle, provided however, that the other person possesses a valid operator's license and would not, as determined by the arresting law enforcement agency, indicate a lack of ability to operate a motor vehicle in a safe manner or who would otherwise, by operating such motor vehicle, be in violation of this Code.
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(e-5) Whenever a registered owner of a vehicle is taken into custody for
operating the vehicle in violation of Section 11-501 of this Code or a similar
provision of a local ordinance or Section 6-303 of this Code, a
law enforcement officer
may have the vehicle immediately impounded for a period not less than:
(1) 24 hours for a second violation of Section 11-501
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| of this Code or a similar provision of a local ordinance or Section 6-303 of this Code or a combination of these offenses; or
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(2) 48 hours for a third violation of Section 11-501
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| of this Code or a similar provision of a local ordinance or Section 6-303 of this Code or a combination of these offenses.
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The vehicle may be released sooner if the vehicle is owned by the person
under arrest and the person under arrest gives permission to another person to
operate the vehicle and that other person possesses a valid operator's license
and would not, as determined by the arresting law enforcement agency, indicate
a lack of ability to operate a motor vehicle in a safe manner or would
otherwise, by operating the motor vehicle, be in violation of this Code.
(f) Except as provided in Chapter 18a of this Code, the owner or
lessor of privately owned real property within this State, or any person
authorized by such owner or lessor, or any law enforcement agency in the
case of publicly owned real property may cause any motor vehicle abandoned
or left unattended upon such property without permission to be removed by a
towing service without liability for the costs of removal, transportation
or storage or damage caused by such removal, transportation or storage.
The towing or removal of any vehicle from private property without the
consent of the registered owner or other legally authorized person in
control of the vehicle is subject to compliance with the following
conditions and restrictions:
1. Any towed or removed vehicle must be stored at the
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| site of the towing service's place of business. The site must be open during business hours, and for the purpose of redemption of vehicles, during the time that the person or firm towing such vehicle is open for towing purposes.
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2. The towing service shall within 30 minutes of
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| completion of such towing or removal, notify the law enforcement agency having jurisdiction of such towing or removal, and the make, model, color, and license plate number of the vehicle, and shall obtain and record the name of the person at the law enforcement agency to whom such information was reported.
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3. If the registered owner or legally authorized
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| person entitled to possession of the vehicle shall arrive at the scene prior to actual removal or towing of the vehicle, the vehicle shall be disconnected from the tow truck and that person shall be allowed to remove the vehicle without interference, upon the payment of a reasonable service fee of not more than one-half the posted rate of the towing service as provided in paragraph 6 of this subsection, for which a receipt shall be given.
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4. The rebate or payment of money or any other
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| valuable consideration from the towing service or its owners, managers, or employees to the owners or operators of the premises from which the vehicles are towed or removed, for the privilege of removing or towing those vehicles, is prohibited. Any individual who violates this paragraph shall be guilty of a Class A misdemeanor.
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5. Except for property appurtenant to and obviously a
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| part of a single family residence, and except for instances where notice is personally given to the owner or other legally authorized person in control of the vehicle that the area in which that vehicle is parked is reserved or otherwise unavailable to unauthorized vehicles and they are subject to being removed at the owner or operator's expense, any property owner or lessor, prior to towing or removing any vehicle from private property without the consent of the owner or other legally authorized person in control of that vehicle, must post a notice meeting the following requirements:
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a. Except as otherwise provided in subparagraph
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| a.1 of this subdivision (f)5, the notice must be prominently placed at each driveway access or curb cut allowing vehicular access to the property within 5 feet from the public right-of-way line. If there are no curbs or access barriers, the sign must be posted not less than one sign each 100 feet of lot frontage.
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a.1. In a municipality with a population of less
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| than 250,000, as an alternative to the requirement of subparagraph a of this subdivision (f)5, the notice for a parking lot contained within property used solely for a 2-family, 3-family, or 4-family residence may be prominently placed at the perimeter of the parking lot, in a position where the notice is visible to the occupants of vehicles entering the lot.
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b. The notice must indicate clearly, in not less
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| than 2 inch high light-reflective letters on a contrasting background, that unauthorized vehicles will be towed away at the owner's expense.
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c. The notice must also provide the name and
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| current telephone number of the towing service towing or removing the vehicle.
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d. The sign structure containing the required
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| notices must be permanently installed with the bottom of the sign not less than 4 feet above ground level, and must be continuously maintained on the property for not less than 24 hours prior to the towing or removing of any vehicle.
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6. Any towing service that tows or removes vehicles
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| and proposes to require the owner, operator, or person in control of the vehicle to pay the costs of towing and storage prior to redemption of the vehicle must file and keep on record with the local law enforcement agency a complete copy of the current rates to be charged for such services, and post at the storage site an identical rate schedule and any written contracts with property owners, lessors, or persons in control of property which authorize them to remove vehicles as provided in this Section. The towing and storage charges, however, shall not exceed the maximum allowed by the Illinois Commerce Commission under Section 18a-200.
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7. No person shall engage in the removal of vehicles
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| from private property as described in this Section without filing a notice of intent in each community where he intends to do such removal, and such notice shall be filed at least 7 days before commencing such towing.
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8. No removal of a vehicle from private property
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| shall be done except upon express written instructions of the owners or persons in charge of the private property upon which the vehicle is said to be trespassing.
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9. Vehicle entry for the purpose of removal shall be
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| allowed with reasonable care on the part of the person or firm towing the vehicle. Such person or firm shall be liable for any damages occasioned to the vehicle if such entry is not in accordance with the standards of reasonable care.
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9.5. Except as authorized by a law enforcement
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| officer, no towing service shall engage in the removal of a commercial motor vehicle that requires a commercial driver's license to operate by operating the vehicle under its own power on a highway.
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10. When a vehicle has been towed or removed pursuant
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| to this Section, it must be released to its owner, custodian, agent, or lienholder within one-half hour after requested, if such request is made during business hours. Any vehicle owner, custodian, agent, or lienholder shall have the right to inspect the vehicle before accepting its return, and no release or waiver of any kind which would release the towing service from liability for damages incurred during the towing and storage may be required from any vehicle owner or other legally authorized person as a condition of release of the vehicle. A detailed, signed receipt showing the legal name of the towing service must be given to the person paying towing or storage charges at the time of payment, whether requested or not.
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This Section shall not apply to law enforcement,
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| firefighting, rescue, ambulance, or other emergency vehicles which are marked as such or to property owned by any governmental entity.
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When an authorized person improperly causes a motor
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| vehicle to be removed, such person shall be liable to the owner or lessee of the vehicle for the cost of removal, transportation and storage, any damages resulting from the removal, transportation and storage, attorney's fee and court costs.
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Any towing or storage charges accrued shall be
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| payable in cash or by cashier's check, certified check, debit card, credit card, or wire transfer, at the option of the party taking possession of the vehicle.
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11. Towing companies shall also provide insurance
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| coverage for areas where vehicles towed under the provisions of this Chapter will be impounded or otherwise stored, and shall adequately cover loss by fire, theft, or other risks.
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Any person who fails to comply with the conditions and restrictions of
this subsection shall be guilty of a Class C misdemeanor and shall be fined
not less than $100 nor more than $500.
(g)(1) When a vehicle is determined to be a hazardous dilapidated
motor
vehicle pursuant to Section 11-40-3.1 of the Illinois Municipal Code or Section 5-12002.1 of the Counties Code, its
removal and impoundment by a towing service may be authorized by a law
enforcement agency with appropriate jurisdiction.
(2) When a vehicle removal from either public or private property is
authorized by a law enforcement agency, the owner of the vehicle shall be
responsible for all towing and storage charges.
(3) Vehicles removed from public or private property and
stored by a commercial vehicle relocator or any other towing service authorized by a law enforcement agency in
compliance with this Section and Sections 4-201 and 4-202
of this Code, or at the request of the vehicle owner or operator,
shall
be subject to a possessor lien for services
pursuant to the Labor and Storage Lien (Small Amount) Act. The provisions of Section 1 of that Act relating to notice
and implied consent shall be deemed satisfied by compliance with Section
18a-302 and subsection (6) of Section 18a-300. In no event shall such lien
be greater than the rate or rates established in accordance with subsection
(6) of Section 18a-200 of this Code. In no event shall such lien be
increased or altered to reflect any charge for services or materials
rendered in addition to those authorized by this Code. Every such lien
shall be payable in cash or by cashier's check, certified check, debit card, credit card, or wire transfer, at the option of the party taking possession of the vehicle.
(4) Any personal property belonging to the vehicle owner in a vehicle subject to a lien under this
subsection
(g) shall likewise be subject to that lien, excepting only:
child restraint systems as defined in Section 4 of the Child Passenger Protection Act and other child booster seats; eyeglasses; food; medicine; perishable property; any operator's licenses; any cash, credit
cards, or checks or checkbooks; any wallet, purse, or other property
containing any operator's license or other identifying documents or materials,
cash, credit cards, checks, or checkbooks; and any personal property belonging to a person other than the vehicle owner if that person provides adequate proof that the personal property belongs to that person. The spouse, child, mother, father, brother, or sister of the vehicle owner may claim personal property excepted under this paragraph (4) if the person claiming the personal property provides the commercial vehicle relocator or towing service with the authorization of the vehicle owner.
(5) This paragraph (5) applies only in the case of a vehicle that is towed as a result of being involved in a crash. In addition to the personal property excepted under paragraph (4), all other personal property in a vehicle subject to a lien under this subsection (g) is exempt from that lien and may be claimed by the vehicle owner if the vehicle owner provides the commercial vehicle relocator or towing service with proof that the vehicle owner has an insurance policy covering towing and storage fees. The spouse, child, mother, father, brother, or sister of the vehicle owner may claim personal property in a vehicle subject to a lien under this subsection (g) if the person claiming the personal property provides the commercial vehicle relocator or towing service with the authorization of the vehicle owner and proof that the vehicle owner has an insurance policy covering towing and storage fees. The regulation of liens on personal property and exceptions to those liens in the case of vehicles towed as a result of being involved in a crash are
exclusive powers and functions of the State. A home
rule unit may not regulate liens on personal property and exceptions to those liens in the case of vehicles towed as a result of being involved in a crash. This paragraph (5) is a denial and
limitation of home rule powers and functions under
subsection (h) of Section 6 of Article VII of the
Illinois Constitution.
(6) No lien under this subsection (g) shall:
exceed $2,000 in its total amount; or
be increased or altered to reflect any charge for services or
materials rendered in addition to those authorized by this Code.
(h) Whenever a peace officer issues a citation to a driver for a violation of subsection (a) of Section 11-506 of this Code, the arresting officer may have the vehicle which the person was operating at the time of the arrest impounded for a period of 5 days after the time of arrest.
An impounding agency shall release a motor vehicle impounded under this subsection (h) to the registered owner of the vehicle under any of the following circumstances:
(1) if the vehicle is a stolen vehicle; or
(2) if the person ticketed for a violation of
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| subsection (a) of Section 11-506 of this Code was not authorized by the registered owner of the vehicle to operate the vehicle at the time of the violation; or
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(3) if the registered owner of the vehicle was
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| neither the driver nor a passenger in the vehicle at the time of the violation or was unaware that the driver was using the vehicle to engage in street racing; or
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(4) if the legal owner or registered owner of the
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| vehicle is a rental car agency; or
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(5) if, prior to the expiration of the impoundment
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| period specified above, the citation is dismissed or the defendant is found not guilty of the offense.
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(i) Except for vehicles exempted under subsection (b) of Section 7-601 of this Code, whenever a law enforcement officer issues a citation to a driver for a violation of Section 3-707 of this Code, and the driver has a prior conviction for a violation of Section 3-707 of this Code in the past 12 months, the arresting officer shall authorize the removal and impoundment of the vehicle by a towing service.
(Source: P.A. 102-982, eff. 7-1-23; 103-154, eff. 6-30-23.)
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(625 ILCS 5/4-203.5) Sec. 4-203.5. Tow rotation list. (a) Each law enforcement agency whose duties include the patrol of highways in this State shall maintain a tow rotation list which shall be used by law enforcement officers authorizing the tow of a vehicle within the jurisdiction of the law enforcement agency. To ensure adequate response time, a law enforcement agency may maintain multiple tow rotation lists, with each tow rotation list covering tows authorized in different geographic locations within the jurisdiction of the law enforcement agency. A towing service may be included on more than one tow rotation list. (b) Any towing service operating within the jurisdiction of a law enforcement agency may submit an application in a form and manner prescribed by the law enforcement agency for inclusion on the law enforcement agency's tow rotation list. The towing service does not need to be located within the jurisdiction of the law enforcement agency. To be included on a tow rotation list the towing service must meet the following requirements: (1) possess a license permitting the towing service |
| to operate in every unit of local government in the law enforcement agency's jurisdiction that requires a license for the operation of a towing service;
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(2) if required by the law enforcement agency for
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| inclusion on that law enforcement agency's tow rotation list, each owner of the towing service and each person operating a vehicle on behalf of the towing service shall submit his or her fingerprints to the Illinois State Police in the form and manner prescribed by the Illinois State Police. These fingerprints should be transmitted through a live scan fingerprint vendor licensed by the Department of Financial and Professional Regulation. These fingerprints shall be checked against the fingerprint records now and hereafter filed in the Illinois State Police and Federal Bureau of Investigation criminal history records databases. The Illinois State Police shall charge a fee for conducting the criminal history record check, which shall be deposited in the State Police Services Fund and shall not exceed the actual cost of the State and national criminal history record check. The Illinois State Police shall furnish, pursuant to positive identification, all Illinois conviction information to the law enforcement agency maintaining the tow rotation list and shall forward the national criminal history record information to the law enforcement agency maintaining the tow rotation list. A person may not own a towing service or operate a vehicle on behalf of a towing service included on a tow rotation list if that person has been convicted during the 5 years preceding the application of a criminal offense involving one or more of the following:
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(A) bodily injury or attempt to inflict bodily
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| injury to another person;
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(B) theft of property or attempted theft of
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(C) sexual assault or attempted sexual assault
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(3) each person operating a vehicle on behalf of
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| the towing service must be classified for the type of towing operation he or she shall be performing and the vehicle he or she shall be operating;
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(4) possess and maintain the following insurance in
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| addition to any other insurance required by law:
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(A) comprehensive automobile liability
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| insurance with a minimum combined single limit coverage of $1,000,000;
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(B) commercial general liability insurance with
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| limits of not less than $1,000,000 per occurrence, $100,000 minimum garage keepers legal liability insurance, and $100,000 minimum on-hook coverage or cargo insurance; and
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(C) a worker's compensation policy covering
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| every person operating a tow truck on behalf of the towing service, if required under current law;
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(5) possess a secure parking lot used for
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| short-term vehicle storage after a vehicle is towed that is open during business hours and is equipped with security features as required by the law enforcement agency;
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(6) utilize only vehicles that possess a valid
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| vehicle registration, display a valid Illinois license plate in accordance with Section 5-202 of this Code, and comply with the weight requirements of this Code;
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(7) every person operating a towing or recovery
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| vehicle on behalf of the towing service must have completed a Traffic Incident Management Training Program approved by the Department of Transportation;
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(8) hold a valid authority issued to it by the
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| Illinois Commerce Commission;
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(9) comply with all other applicable federal,
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| State, and local laws; and
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(10) comply with any additional requirements the
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| applicable law enforcement agency deems necessary.
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The law enforcement agency may select which towing services meeting the requirements of this subsection (b) shall be included on a tow rotation list. The law enforcement agency may choose to have only one towing service on its tow rotation list. Complaints regarding the process for inclusion on a tow rotation list or the use of a tow rotation list may be referred in writing to the head of the law enforcement agency administering that tow rotation list. The head of the law enforcement agency shall make the final determination as to which qualified towing services shall be included on a tow rotation list, and shall not be held liable for the exclusion of any towing service from a tow rotation list.
(c) Whenever a law enforcement officer initiates a tow of a vehicle, the officer shall contact his or her law enforcement agency and inform the agency that a tow has been authorized. The law enforcement agency shall then select a towing service from the law enforcement agency's tow rotation list corresponding to the geographical area where the tow was authorized, and shall contact that towing service directly by phone, computer, or similar means. Towing services shall be contacted in the order listed on the appropriate tow rotation list, at which point the towing service shall be placed at the end of that tow rotation list. In the event a listed towing service is not available, the next listed towing service on that tow rotation list shall be contacted.
(d) A law enforcement agency may deviate from the order listed on a tow rotation list if the towing service next on that tow rotation list is, in the judgment of the authorizing officer or the law enforcement agency making the selection, incapable of or not properly equipped for handling a specific task related to the tow that requires special skills or equipment. A deviation from the order listed on the tow rotation list for this reason shall not cause a loss of rotation turn by the towing service determined to be incapable or not properly equipped for handling the request.
(e) In the event of an emergency a law enforcement officer or agency, taking into account the safety and location of the situation, may deviate from the order of the tow rotation list and obtain towing service from any source deemed appropriate.
(f) If the owner or operator of a disabled vehicle is present at the scene of the disabled vehicle, is not under arrest, and does not abandon his or her vehicle, and in the law enforcement officer's opinion the disabled vehicle is not impeding or obstructing traffic, illegally parked, or posing a security or safety risk, the law enforcement officer shall allow the owner of the vehicle to specify a towing service to relocate the disabled vehicle. If the owner chooses not to specify a towing service, the law enforcement agency shall select a towing service for the vehicle as provided in subsection (c) of this Section.
(g) If a tow operator is present or arrives where a tow is needed and it has not been requested by the law enforcement agency or the owner or operator, the law enforcement officer, unless acting under Section 11-1431 of this Code, shall advise the tow operator to leave the scene.
(h) (Blank).
(Source: P.A. 102-538, eff. 8-20-21; 102-759, eff. 1-1-23 .)
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(625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
Sec. 5-101. New vehicle dealers must be licensed.
(a) No person shall engage in this State in the business of selling
or dealing in, on consignment or otherwise, new vehicles of any make, or
act as an intermediary or agent or broker for any licensed dealer or
vehicle purchaser other than as a salesperson, or represent or advertise
that he is so engaged or intends to so engage in such business unless
licensed to do so in writing by the Secretary of State under the
provisions of this Section.
(b) An application for a new vehicle dealer's license shall be filed
with the Secretary of State, duly verified by oath, on such form as the
Secretary of State may by rule or regulation prescribe and shall contain:
1. The name and type of business organization of the |
| applicant and his established and additional places of business, if any, in this State.
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2. If the applicant is a corporation, a list of its
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| officers, directors, and shareholders having a ten percent or greater ownership interest in the corporation, setting forth the residence address of each; if the applicant is a sole proprietorship, a partnership, an unincorporated association, a trust, or any similar form of business organization, the name and residence address of the proprietor or of each partner, member, officer, director, trustee, or manager.
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3. The make or makes of new vehicles which the
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| applicant will offer for sale at retail in this State.
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4. The name of each manufacturer or franchised
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| distributor, if any, of new vehicles with whom the applicant has contracted for the sale of such new vehicles. As evidence of this fact, the application shall be accompanied by a signed statement from each such manufacturer or franchised distributor. If the applicant is in the business of offering for sale new conversion vehicles, trucks or vans, except for trucks modified to serve a special purpose which includes but is not limited to the following vehicles: street sweepers, fertilizer spreaders, emergency vehicles, implements of husbandry or maintenance type vehicles, he must furnish evidence of a sales and service agreement from both the chassis manufacturer and second stage manufacturer.
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5. A statement that the applicant has been approved
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| for registration under the Retailers' Occupation Tax Act by the Department of Revenue: Provided that this requirement does not apply to a dealer who is already licensed hereunder with the Secretary of State, and who is merely applying for a renewal of his license. As evidence of this fact, the application shall be accompanied by a certification from the Department of Revenue showing that that Department has approved the applicant for registration under the Retailers' Occupation Tax Act.
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6. A statement that the applicant has complied with
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| the appropriate liability insurance requirement. A Certificate of Insurance in a solvent company authorized to do business in the State of Illinois shall be included with each application covering each location at which he proposes to act as a new vehicle dealer. The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, two or more persons in any one crash, and $50,000 for damage to property. Such policy shall expire not sooner than December 31 of the year for which the license was issued or renewed. The expiration of the insurance policy shall not terminate the liability under the policy arising during the period for which the policy was filed. Trailer and mobile home dealers are exempt from this requirement.
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If the permitted user has a liability insurance
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| policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one crash, and $50,000 for damage to property, then the permitted user's insurer shall be the primary insurer and the dealer's insurer shall be the secondary insurer. If the permitted user does not have a liability insurance policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one crash, and $50,000 for damage to property, or does not have any insurance at all, then the dealer's insurer shall be the primary insurer and the permitted user's insurer shall be the secondary insurer.
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When a permitted user is "test driving" a new
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| vehicle dealer's automobile, the new vehicle dealer's insurance shall be primary and the permitted user's insurance shall be secondary.
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As used in this paragraph 6, a "permitted user" is a
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| person who, with the permission of the new vehicle dealer or an employee of the new vehicle dealer, drives a vehicle owned and held for sale or lease by the new vehicle dealer which the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle. The term "permitted user" also includes a person who, with the permission of the new vehicle dealer, drives a vehicle owned or held for sale or lease by the new vehicle dealer for loaner purposes while the user's vehicle is being repaired or evaluated.
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As used in this paragraph 6, "test driving" occurs
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| when a permitted user who, with the permission of the new vehicle dealer or an employee of the new vehicle dealer, drives a vehicle owned and held for sale or lease by a new vehicle dealer that the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle.
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As used in this paragraph 6, "loaner purposes" means
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| when a person who, with the permission of the new vehicle dealer, drives a vehicle owned or held for sale or lease by the new vehicle dealer while the user's vehicle is being repaired or evaluated.
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7. (A) An application for a new motor vehicle
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| dealer's license shall be accompanied by the following license fees:
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(i) $1,000 for applicant's established place of
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| business, and $100 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the license fee shall be $500 for applicant's established place of business plus $50 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that the application is denied by the Secretary of State. All moneys received by the Secretary of State as license fees under this subparagraph (i) prior to applications for the 2004 licensing year shall be deposited into the Motor Vehicle Review Board Fund and shall be used to administer the Motor Vehicle Review Board under the Motor Vehicle Franchise Act. Of the money received by the Secretary of State as license fees under this subparagraph (i) for the 2004 licensing year and thereafter, 10% shall be deposited into the Motor Vehicle Review Board Fund and shall be used to administer the Motor Vehicle Review Board under the Motor Vehicle Franchise Act and 90% shall be deposited into the General Revenue Fund.
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(ii) Except for dealers selling 25 or fewer
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| automobiles or as provided in subsection (h) of Section 5-102.7 of this Code, an Annual Dealer Recovery Fund Fee in the amount of $500 for the applicant's established place of business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the fee shall be $250 for the applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. For a license renewal application, the fee shall be based on the amount of automobiles sold in the past year according to the following formula:
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(1) $0 for dealers selling 25 or less
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(2) $150 for dealers selling more than 25 but
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| less than 200 automobiles;
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(3) $300 for dealers selling 200 or more
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| automobiles but less than 300 automobiles; and
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(4) $500 for dealers selling 300 or more
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License fees shall be returnable only in the
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| event that the application is denied by the Secretary of State. Moneys received under this subparagraph (ii) shall be deposited into the Dealer Recovery Trust Fund.
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(B) An application for a new vehicle dealer's
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| license, other than for a new motor vehicle dealer's license, shall be accompanied by the following license fees:
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(i) $1,000 for applicant's established place of
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| business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the license fee shall be $500 for applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that the application is denied by the Secretary of State. Of the money received by the Secretary of State as license fees under this subparagraph (i) for the 2004 licensing year and thereafter, 95% shall be deposited into the General Revenue Fund.
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(ii) Except as provided in subsection (h) of
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| Section 5-102.7 of this Code, an Annual Dealer Recovery Fund Fee in the amount of $500 for the applicant's established place of business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the fee shall be $250 for the applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that the application is denied by the Secretary of State. Moneys received under this subparagraph (ii) shall be deposited into the Dealer Recovery Trust Fund.
|
|
8. A statement that the applicant's officers,
|
| directors, shareholders having a 10% or greater ownership interest therein, proprietor, a partner, member, officer, director, trustee, manager or other principals in the business have not committed in the past 3 years any one violation as determined in any civil, criminal or administrative proceedings of any one of the following Acts:
|
|
(A) The Anti-Theft Laws of the Illinois Vehicle
|
|
(B) The Certificate of Title Laws of the Illinois
|
|
(C) The Offenses against Registration and
|
| Certificates of Title Laws of the Illinois Vehicle Code;
|
|
(D) The Dealers, Transporters, Wreckers and
|
| Rebuilders Laws of the Illinois Vehicle Code;
|
|
(E) Section 21-2 of the Criminal Code of 1961 or
|
| the Criminal Code of 2012, Criminal Trespass to Vehicles; or
|
|
(F) The Retailers' Occupation Tax Act.
9. A statement that the applicant's officers,
|
| directors, shareholders having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager or other principals in the business have not committed in any calendar year 3 or more violations, as determined in any civil, criminal or administrative proceedings, of any one or more of the following Acts:
|
|
(A) The Consumer Finance Act;
(B) The Consumer Installment Loan Act;
(C) The Retail Installment Sales Act;
(D) The Motor Vehicle Retail Installment Sales
|
|
(E) The Interest Act;
(F) The Illinois Wage Assignment Act;
(G) Part 8 of Article XII of the Code of Civil
|
|
(H) The Consumer Fraud Act.
9.5. A statement that, within 10 years of
|
| application, each officer, director, shareholder having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principal in the business of the applicant has not committed, as determined in any civil, criminal, or administrative proceeding, in any calendar year one or more forcible felonies under the Criminal Code of 1961 or the Criminal Code of 2012, or a violation of either or both Article 16 or 17 of the Criminal Code of 1961 or a violation of either or both Article 16 or 17 of the Criminal Code of 2012, Article 29B of the Criminal Code of 1961 or the Criminal Code of 2012, or a similar out-of-state offense. For the purposes of this paragraph, "forcible felony" has the meaning provided in Section 2-8 of the Criminal Code of 2012.
|
|
10. A bond or certificate of deposit in the amount of
|
| $50,000 for each location at which the applicant intends to act as a new vehicle dealer. The bond shall be for the term of the license, or its renewal, for which application is made, and shall expire not sooner than December 31 of the year for which the license was issued or renewed. The bond shall run to the People of the State of Illinois, with surety by a bonding or insurance company authorized to do business in this State. It shall be conditioned upon the proper transmittal of all title and registration fees and taxes (excluding taxes under the Retailers' Occupation Tax Act) accepted by the applicant as a new vehicle dealer.
|
|
11. Such other information concerning the business of
|
| the applicant as the Secretary of State may by rule or regulation prescribe.
|
|
12. A statement that the applicant understands
|
| Chapter 1 through Chapter 5 of this Code.
|
|
13. The full name, address, and contact information
|
| of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
|
|
(c) Any change which renders no longer accurate any information
contained in any application for a new vehicle dealer's license shall be
amended within 30 days after the occurrence of such change on such form
as the Secretary of State may prescribe by rule or regulation,
accompanied by an amendatory fee of $2.
(d) Anything in this Chapter 5 to the contrary notwithstanding no
person shall be licensed as a new vehicle dealer unless:
1. He is authorized by contract in writing between
|
| himself and the manufacturer or franchised distributor of such make of vehicle to so sell the same in this State, and
|
|
2. Such person shall maintain an established place of
|
| business as defined in this Act.
|
|
(e) The Secretary of State shall, within a reasonable time after
receipt, examine an application submitted to him under this Section and
unless he makes a determination that the application submitted to him
does not conform with the requirements of this Section or that grounds
exist for a denial of the application, under Section 5-501 of this
Chapter, grant the applicant an original new vehicle dealer's license in
writing for his established place of business and a supplemental license
in writing for each additional place of business in such form as he may
prescribe by rule or regulation which shall include the following:
1. The name of the person licensed;
2. If a corporation, the name and address of its
|
| officers or if a sole proprietorship, a partnership, an unincorporated association or any similar form of business organization, the name and address of the proprietor or of each partner, member, officer, director, trustee or manager;
|
|
3. In the case of an original license, the
|
| established place of business of the licensee;
|
|
4. In the case of a supplemental license, the
|
| established place of business of the licensee and the additional place of business to which such supplemental license pertains;
|
|
5. The make or makes of new vehicles which the
|
| licensee is licensed to sell;
|
|
6. The full name, address, and contact information of
|
| each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
|
|
(f) The appropriate instrument evidencing the license or a certified
copy thereof, provided by the Secretary of State, shall be kept posted
conspicuously in the established place of business of the licensee and
in each additional place of business, if any, maintained by such
licensee.
(g) Except as provided in subsection (h) hereof, all new vehicle
dealer's licenses granted under this Section shall expire by operation
of law on December 31 of the calendar year for which they are granted
unless sooner revoked or cancelled under the provisions of Section 5-501
of this Chapter.
(h) A new vehicle dealer's license may be renewed upon application
and payment of the fee required herein, and submission of proof of
coverage under an approved bond under the Retailers' Occupation Tax
Act or proof that applicant is not subject to such bonding
requirements, as in the case of an original license, but in case an
application for the renewal of an effective license is made during the
month of December, the effective license shall remain in force until the
application is granted or denied by the Secretary of State.
(i) All persons licensed as a new vehicle dealer are required to
furnish each purchaser of a motor vehicle:
1. In the case of a new vehicle a manufacturer's
|
| statement of origin and in the case of a used motor vehicle a certificate of title, in either case properly assigned to the purchaser;
|
|
2. A statement verified under oath that all
|
| identifying numbers on the vehicle agree with those on the certificate of title or manufacturer's statement of origin;
|
|
3. A bill of sale properly executed on behalf of such
|
|
4. A copy of the Uniform Invoice-transaction
|
| reporting return referred to in Section 5-402 hereof;
|
|
5. In the case of a rebuilt vehicle, a copy of the
|
| Disclosure of Rebuilt Vehicle Status; and
|
|
6. In the case of a vehicle for which the warranty
|
| has been reinstated, a copy of the warranty.
|
|
(j) Except at the time of sale or repossession of the vehicle, no person
licensed as a new vehicle dealer may issue any other person a newly created
key to a vehicle unless the new vehicle dealer makes a color photocopy or electronic scan of the driver's
license or State identification card of the person requesting or obtaining the
newly created key. The new vehicle dealer must retain the photocopy or scan for 30 days.
A new vehicle dealer who violates this subsection (j) is guilty of a
petty offense. Violation of this subsection (j) is not cause to suspend,
revoke,
cancel, or deny renewal of the new vehicle dealer's license.
This amendatory Act of 1983 shall be applicable to the 1984 registration
year and thereafter.
(k) If a licensee under this Section voluntarily surrenders a license to the Illinois Secretary of State Police or a representative of the Secretary of State Vehicle Services Department due to the licensee's inability to adhere to recordkeeping provisions, or the inability to properly issue certificates of title or registrations under this Code, or the Secretary revokes a license under this Section, then the licensee and the licensee's agent, designee, or legal representative, if applicable, may not be named on a new application for a licensee under this Section or under this Chapter, nor is the licensee or the licensee's agent, designee, or legal representative permitted to work for another licensee under this Chapter in a recordkeeping, management, or financial position or as an employee who handles certificate of title and registration documents and applications.
(Source: P.A. 101-505, eff. 1-1-20; 102-154, eff. 1-1-22; 102-982, eff. 7-1-23 .)
|
(625 ILCS 5/5-101.1)
Sec. 5-101.1. Motor vehicle financing affiliates; licensing.
(a) In this State, no business shall engage in the business of a motor
vehicle financing
affiliate without a license to do so in writing from the Secretary of State.
(b) An application for a motor vehicle financing affiliate's license must be
filed with
the Secretary of State, duly verified by oath, on a form prescribed by the
Secretary of
State and shall contain all of the following:
(1) The name and type of business organization of the |
| applicant and the applicant's established place of business and any additional places of business in this State.
|
|
(2) The name and address of the licensed new or used
|
| vehicle dealer to which the applicant will be selling, transferring, or assigning new or used motor vehicles pursuant to a written contract. If more than one dealer is on the application, the applicant shall state in writing the basis of common ownership among the dealers.
|
|
(3) A list of the business organization's officers,
|
| directors, members, and shareholders having a 10% or greater ownership interest in the business, providing the residential address for each person listed.
|
|
(4) If selling, transferring, or assigning new motor
|
| vehicles, the make or makes of new vehicles that it will sell, assign, or otherwise transfer to the contracting new motor vehicle dealer listed on the application pursuant to paragraph (2).
|
|
(5) The name of each manufacturer or franchised
|
| distributor, if any, of new vehicles with whom the applicant has contracted for the sale of new vehicles and a signed statement from each manufacturer or franchised distributor acknowledging the contract.
|
|
(6) A statement that the applicant has been approved
|
| for registration under the Retailers' Occupation Tax Act by the Department of Revenue. This requirement does not apply to a motor vehicle financing affiliate that is already licensed with the Secretary of State and is applying for a renewal of its license.
|
|
(7) A statement that the applicant has complied with
|
| the appropriate liability insurance requirement and a Certificate of Insurance that shall not expire before December 31 of the year for which the license was issued or renewed with a minimum liability coverage of $100,000 for the bodily injury or death of any person, $300,000 for the bodily injury or death of 2 or more persons in any one crash, and $50,000 for damage to property. The expiration of the insurance policy shall not terminate the liability under the policy arising during the period for which the policy was filed. Trailer and mobile home dealers are exempt from the requirements of this paragraph. A motor vehicle financing affiliate is exempt from the requirements of this paragraph if it is covered by the insurance policy of the new or used dealer listed on the application pursuant to paragraph (2).
|
|
(8) A license fee of $1,000 for the applicant's
|
| established place of business and $250 for each additional place of business, if any, to which the application pertains. However, if the application is made after June 15 of any year, the license fee shall be $500 for the applicant's established place of business and $125 for each additional place of business, if any, to which the application pertains. These license fees shall be returnable only in the event that the application is denied by the Secretary of State.
|
|
(9) A statement incorporating the requirements of
|
| paragraphs 8 and 9 of subsection (b) of Section 5-101.
|
|
(10) Any other information concerning the business of
|
| the applicant as the Secretary of State may prescribe.
|
|
(11) A statement that the applicant understands
|
| Chapter 1 through Chapter 5 of this Code.
|
|
(12) The full name, address, and contact information
|
| of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
|
|
(c) Any change which renders no longer accurate any information contained in
any
application for a motor vehicle financing affiliate's license shall be amended
within 30
days after the occurrence of the change on a form prescribed by the Secretary
of State,
accompanied by an amendatory fee of $2.
(d) If a new vehicle dealer is not listed on the application, pursuant to
paragraph (2) of
subsection (b), the motor vehicle financing affiliate shall not receive,
possess, or transfer
any new vehicle. If a new motor vehicle dealer is listed on the application,
pursuant to
paragraph (2) of subsection (b), the new motor vehicle dealer can only receive
those new
cars it is permitted to receive under its franchise agreement. If both a new
and used
motor vehicle dealer are listed on the application, pursuant to paragraph (2)
of subsection
(b), only the new motor vehicle dealer may receive new motor vehicles. If a
used motor
vehicle is listed on the application, pursuant to paragraph (2) of
subsection (b), the used
motor vehicle dealer shall not receive any new motor vehicles.
(e) The applicant and dealer provided pursuant to paragraph (2) of
subsection (b)
must be business organizations registered to conduct business in Illinois.
Three-fourths
of the dealer's board of directors must be members of the motor vehicle
financing
affiliate's board of directors, if applicable.
(f) Unless otherwise provided in this Chapter 5, no business organization
registered to
do business in Illinois shall be licensed as a motor vehicle financing
affiliate unless:
(1) The motor vehicle financing affiliate shall only
|
| sell, transfer, or assign motor vehicles to the licensed new or used dealer listed on the application pursuant to paragraph (2) of subsection (b).
|
|
(2) The motor vehicle financing affiliate sells,
|
| transfers, or assigns to the new motor vehicle dealer listed on the application, if any, only those new motor vehicles the motor vehicle financing affiliate has received under the contract set forth in paragraph (5) of subsection (b).
|
|
(3) Any new vehicle dealer listed pursuant to
|
| paragraph (2) of subsection (b) has a franchise agreement that permits the dealer to receive motor vehicles from the motor vehicle franchise affiliate.
|
|
(4) The new or used motor vehicle dealer listed on
|
| the application pursuant to paragraph (2) of subsection (b) has one established place of business or supplemental places of business as referenced in subsection (g).
|
|
(g) The Secretary of State shall, within a reasonable time after receipt,
examine an
application submitted pursuant to this Section and, unless it is determined
that the
application does not conform with the requirements of this Section or that
grounds exist
for a denial of the application under Section 5-501, grant the applicant a
motor vehicle
financing affiliate license in writing for the applicant's established place of
business and
a supplemental license in writing for each additional place of business in a
form prescribed
by the Secretary, which shall include all of the following:
(1) The name of the business licensed;
(2) The name and address of its officers, directors,
|
| or members, as applicable;
|
|
(3) In the case of an original license, the
|
| established place of business of the licensee;
|
|
(4) If applicable, the make or makes of new vehicles
|
| which the licensee is licensed to sell to the new motor vehicle dealer listed on the application pursuant to paragraph (2) of subsection (b); and
|
|
(5) The full name, address, and contact information
|
| of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
|
|
(h) The appropriate instrument evidencing the license or a certified copy,
provided by
the Secretary of State, shall be kept posted conspicuously in the established
place of
business of the licensee.
(i) Except as provided in subsection (h), all motor vehicle financing
affiliate's
licenses granted under this Section shall expire by operation of law on
December 31 of
the calendar year for which they are granted, unless revoked or canceled at an
earlier date
pursuant to Section 5-501.
(j) A motor vehicle financing affiliate's license may be renewed upon
application and
payment of the required fee. However, when an application for renewal of a
motor
vehicle financing affiliate's license is made during the month of December, the
effective
license shall remain in force until the application is granted or denied by the
Secretary of
State.
(k) The contract a motor vehicle financing affiliate has with a manufacturer
or
franchised distributor, as provided in paragraph (5) of subsection (b), shall
only permit
the applicant to sell, transfer, or assign new motor vehicles to the new motor
vehicle
dealer listed on the application pursuant to paragraph (2) of subsection (b).
The contract
shall specifically prohibit the motor vehicle financing affiliate from selling
motor
vehicles at retail. This contract shall not be considered the granting of a
franchise as
defined in Section 2 of the Motor Vehicle Franchise Act.
(l) When purchasing a motor vehicle by a new or used motor vehicle
dealer, all
persons licensed as a motor vehicle financing affiliate are required to furnish
all of the
following:
(1) For a new vehicle, a manufacturer's statement of
|
| origin properly assigned to the purchasing dealer. For a used vehicle, a certificate of title properly assigned to the purchasing dealer.
|
|
(2) A statement verified under oath that all
|
| identifying numbers on the vehicle agree with those on the certificate of title or manufacturer's statement of origin.
|
|
(3) A bill of sale properly executed on behalf of the
|
|
(4) A copy of the Uniform Invoice-transaction report
|
| pursuant to Section 5-402.
|
|
(5) In the case of a rebuilt vehicle, a copy of the
|
| Disclosure of Rebuilt Vehicle Status pursuant to Section 5-104.3.
|
|
(6) In the case of a vehicle for which a warranty has
|
| been reinstated, a copy of the warranty.
|
|
(m) The motor vehicle financing affiliate shall use the established and
supplemental
place or places of business the new or used vehicle dealer listed on the
application
pursuant to paragraph (2) of subsection (b) as its established and supplemental
place or
places of business.
(n) The motor vehicle financing affiliate shall keep all books and records
required by
this Code with the books and records of the new or used vehicle dealer listed
on the
application pursuant to paragraph (2) of subsection (b). The motor vehicle
financing
affiliate may use the books and records of the new or used motor vehicle dealer
listed on
the application pursuant to paragraph (2) of subsection (b).
(o) Under no circumstances shall a motor vehicle financing affiliate sell,
transfer, or
assign a new vehicle to any place of business of a new motor vehicle dealer,
unless that
place of business is licensed under this Chapter to sell, assign, or otherwise
transfer the
make of the new motor vehicle transferred.
(p) All moneys received by the Secretary of State as license fees under this
Section
shall be deposited into the Motor Vehicle Review Board Fund and shall be used
to
administer the Motor Vehicle Review Board under the Motor Vehicle Franchise
Act.
(q) Except as otherwise provided in this Section, a motor vehicle financing
affiliate
shall comply with all provisions of this Code.
(r) If a licensee under this Section voluntarily surrenders a license to the Illinois Secretary of State Police or a representative of the Secretary of State Vehicle Services Department due to the licensee's inability to adhere to recordkeeping provisions, or the inability to properly issue certificates of title or registrations under this Code, or the Secretary revokes a license under this Section, then the licensee and the licensee's agent, designee, or legal representative, if applicable, may not be named on a new application for a licensee under this Section or under this Chapter, nor is the licensee or the licensee's agent, designee, or legal representative permitted to work for another licensee under this Chapter in a recordkeeping, management, or financial position or as an employee who handles certificate of title and registration documents and applications.
(Source: P.A. 102-154, eff. 1-1-22; 102-982, eff. 7-1-23; 103-154, eff. 6-30-23.)
|
(625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
Sec. 5-102. Used vehicle dealers must be licensed.
(a) No person, other than a licensed new vehicle dealer, shall engage in
the business of selling or dealing in, on consignment or otherwise, 5 or
more used vehicles of any make during the year (except house trailers as
authorized by paragraph (j) of this Section and rebuilt salvage vehicles
sold by their rebuilders to persons licensed under this Chapter), or act as
an intermediary, agent or broker for any licensed dealer or vehicle
purchaser (other than as a salesperson) or represent or advertise that he
is so engaged or intends to so engage in such business unless licensed to
do so by the Secretary of State under the provisions of this Section.
(b) An application for a used vehicle dealer's license shall be
filed with the Secretary of State, duly verified by oath, in such form
as the Secretary of State may by rule or regulation prescribe and shall
contain:
1. The name and type of business organization |
| established and additional places of business, if any, in this State.
|
|
2. If the applicant is a corporation, a list of its
|
| officers, directors, and shareholders having a ten percent or greater ownership interest in the corporation, setting forth the residence address of each; if the applicant is a sole proprietorship, a partnership, an unincorporated association, a trust, or any similar form of business organization, the names and residence address of the proprietor or of each partner, member, officer, director, trustee, or manager.
|
|
3. A statement that the applicant has been approved
|
| for registration under the Retailers' Occupation Tax Act by the Department of Revenue. However, this requirement does not apply to a dealer who is already licensed hereunder with the Secretary of State, and who is merely applying for a renewal of his license. As evidence of this fact, the application shall be accompanied by a certification from the Department of Revenue showing that the Department has approved the applicant for registration under the Retailers' Occupation Tax Act.
|
|
4. A statement that the applicant has complied with
|
| the appropriate liability insurance requirement. A Certificate of Insurance in a solvent company authorized to do business in the State of Illinois shall be included with each application covering each location at which he proposes to act as a used vehicle dealer. The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, two or more persons in any one crash, and $50,000 for damage to property. Such policy shall expire not sooner than December 31 of the year for which the license was issued or renewed. The expiration of the insurance policy shall not terminate the liability under the policy arising during the period for which the policy was filed. Trailer and mobile home dealers are exempt from this requirement.
|
|
If the permitted user has a liability insurance
|
| policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one crash, and $50,000 for damage to property, then the permitted user's insurer shall be the primary insurer and the dealer's insurer shall be the secondary insurer. If the permitted user does not have a liability insurance policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one crash, and $50,000 for damage to property, or does not have any insurance at all, then the dealer's insurer shall be the primary insurer and the permitted user's insurer shall be the secondary insurer.
|
|
When a permitted user is "test driving" a used
|
| vehicle dealer's automobile, the used vehicle dealer's insurance shall be primary and the permitted user's insurance shall be secondary.
|
|
As used in this paragraph 4, a "permitted user" is a
|
| person who, with the permission of the used vehicle dealer or an employee of the used vehicle dealer, drives a vehicle owned and held for sale or lease by the used vehicle dealer which the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle. The term "permitted user" also includes a person who, with the permission of the used vehicle dealer, drives a vehicle owned or held for sale or lease by the used vehicle dealer for loaner purposes while the user's vehicle is being repaired or evaluated.
|
|
As used in this paragraph 4, "test driving" occurs
|
| when a permitted user who, with the permission of the used vehicle dealer or an employee of the used vehicle dealer, drives a vehicle owned and held for sale or lease by a used vehicle dealer that the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle.
|
|
As used in this paragraph 4, "loaner purposes" means
|
| when a person who, with the permission of the used vehicle dealer, drives a vehicle owned or held for sale or lease by the used vehicle dealer while the user's vehicle is being repaired or evaluated.
|
|
5. An application for a used vehicle dealer's license
|
| shall be accompanied by the following license fees:
|
|
(A) $1,000 for applicant's established place of
|
| business, and $50 for each additional place of business, if any, to which the application pertains; however, if the application is made after June 15 of any year, the license fee shall be $500 for applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that the application is denied by the Secretary of State. Of the money received by the Secretary of State as license fees under this subparagraph (A) for the 2004 licensing year and thereafter, 95% shall be deposited into the General Revenue Fund.
|
|
(B) Except for dealers selling 25 or fewer
|
| automobiles or as provided in subsection (h) of Section 5-102.7 of this Code, an Annual Dealer Recovery Fund Fee in the amount of $500 for the applicant's established place of business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the fee shall be $250 for the applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. For a license renewal application, the fee shall be based on the amount of automobiles sold in the past year according to the following formula:
|
|
(1) $0 for dealers selling 25 or less
|
|
(2) $150 for dealers selling more than 25 but
|
| less than 200 automobiles;
|
|
(3) $300 for dealers selling 200 or more
|
| automobiles but less than 300 automobiles; and
|
|
(4) $500 for dealers selling 300 or more
|
|
License fees shall be returnable only in the
|
| event that the application is denied by the Secretary of State. Moneys received under this subparagraph (B) shall be deposited into the Dealer Recovery Trust Fund.
|
|
6. A statement that the applicant's officers,
|
| directors, shareholders having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principals in the business have not committed in the past 3 years any one violation as determined in any civil, criminal, or administrative proceedings of any one of the following Acts:
|
|
(A) The Anti-Theft Laws of the Illinois Vehicle
|
|
(B) The Certificate of Title Laws of the Illinois
|
|
(C) The Offenses against Registration and
|
| Certificates of Title Laws of the Illinois Vehicle Code;
|
|
(D) The Dealers, Transporters, Wreckers and
|
| Rebuilders Laws of the Illinois Vehicle Code;
|
|
(E) Section 21-2 of the Criminal Code of 1961 or
|
| the Criminal Code of 2012, Criminal Trespass to Vehicles; or
|
|
(F) The Retailers' Occupation Tax Act.
7. A statement that the applicant's officers,
|
| directors, shareholders having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principals in the business have not committed in any calendar year 3 or more violations, as determined in any civil, criminal, or administrative proceedings, of any one or more of the following Acts:
|
|
(A) The Consumer Finance Act;
(B) The Consumer Installment Loan Act;
(C) The Retail Installment Sales Act;
(D) The Motor Vehicle Retail Installment Sales
|
|
(E) The Interest Act;
(F) The Illinois Wage Assignment Act;
(G) Part 8 of Article XII of the Code of Civil
|
|
(H) The Consumer Fraud and Deceptive Business
|
|
7.5. A statement that, within 10 years of
|
| application, each officer, director, shareholder having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principal in the business of the applicant has not committed, as determined in any civil, criminal, or administrative proceeding, in any calendar year one or more forcible felonies under the Criminal Code of 1961 or the Criminal Code of 2012, or a violation of either or both Article 16 or 17 of the Criminal Code of 1961 or a violation of either or both Article 16 or 17 of the Criminal Code of 2012, Article 29B of the Criminal Code of 1961 or the Criminal Code of 2012, or a similar out-of-state offense. For the purposes of this paragraph, "forcible felony" has the meaning provided in Section 2-8 of the Criminal Code of 2012.
|
|
8. A bond or Certificate of Deposit in the amount of
|
| $50,000 for each location at which the applicant intends to act as a used vehicle dealer. The bond shall be for the term of the license, or its renewal, for which application is made, and shall expire not sooner than December 31 of the year for which the license was issued or renewed. The bond shall run to the People of the State of Illinois, with surety by a bonding or insurance company authorized to do business in this State. It shall be conditioned upon the proper transmittal of all title and registration fees and taxes (excluding taxes under the Retailers' Occupation Tax Act) accepted by the applicant as a used vehicle dealer.
|
|
9. Such other information concerning the business of
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| the applicant as the Secretary of State may by rule or regulation prescribe.
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10. A statement that the applicant understands
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| Chapter 1 through Chapter 5 of this Code.
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|
11. A copy of the certification from the prelicensing
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12. The full name, address, and contact information
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| of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
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|
(c) Any change which renders no longer accurate any information
contained in any application for a used vehicle dealer's license shall
be amended within 30 days after the occurrence of each change on such
form as the Secretary of State may prescribe by rule or regulation,
accompanied by an amendatory fee of $2.
(d) Anything in this Chapter to the contrary notwithstanding, no
person shall be licensed as a used vehicle dealer unless such person
maintains an established place of business as
defined in this Chapter.
(e) The Secretary of State shall, within a reasonable time after
receipt, examine an application submitted to him under this Section.
Unless the Secretary makes a determination that the application
submitted to him does not conform to this Section or that grounds exist
for a denial of the application under Section 5-501 of this Chapter, he
must grant the applicant an original used vehicle dealer's license in
writing for his established place of business and a supplemental license
in writing for each additional place of business in such form as he may
prescribe by rule or regulation which shall include the following:
1. The name of the person licensed;
2. If a corporation, the name and address of its
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| officers or if a sole proprietorship, a partnership, an unincorporated association or any similar form of business organization, the name and address of the proprietor or of each partner, member, officer, director, trustee, or manager;
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|
3. In case of an original license, the established
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| place of business of the licensee;
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|
4. In the case of a supplemental license, the
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| established place of business of the licensee and the additional place of business to which such supplemental license pertains;
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|
5. The full name, address, and contact information of
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| each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
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|
(f) The appropriate instrument evidencing the license or a certified
copy thereof, provided by the Secretary of State shall be kept posted,
conspicuously, in the established place of business of the licensee and
in each additional place of business, if any, maintained by such
licensee.
(g) Except as provided in subsection (h) of this Section, all used
vehicle dealer's licenses granted under this Section expire by operation
of law on December 31 of the calendar year for which they are granted
unless sooner revoked or cancelled under Section 5-501 of this Chapter.
(h) A used vehicle dealer's license may be renewed upon application
and payment of the fee required herein, and submission of proof of
coverage by an approved bond under the Retailers' Occupation Tax Act
or proof that applicant is not subject to such bonding requirements, as
in the case of an original license, but in case an application for the
renewal of an effective license is made during the month of December,
the effective license shall remain in force until the application for
renewal is granted or denied by the Secretary of State.
(i) All persons licensed as a used vehicle dealer are required to
furnish each purchaser of a motor vehicle:
1. A certificate of title properly assigned to the
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|
2. A statement verified under oath that all
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| identifying numbers on the vehicle agree with those on the certificate of title;
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3. A bill of sale properly executed on behalf of such
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|
4. A copy of the Uniform Invoice-transaction
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| reporting return referred to in Section 5-402 of this Chapter;
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5. In the case of a rebuilt vehicle, a copy of the
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| Disclosure of Rebuilt Vehicle Status; and
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|
6. In the case of a vehicle for which the warranty
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| has been reinstated, a copy of the warranty.
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|
(j) A real estate broker holding a valid certificate of registration issued
pursuant to "The Real Estate Brokers and Salesmen License Act" may engage
in the business of selling or dealing in house trailers not his own without
being licensed as a used vehicle dealer under this Section; however such
broker shall maintain a record of the transaction including the following:
(1) the name and address of the buyer and seller,
(2) the date of sale,
(3) a description of the mobile home, including the
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| vehicle identification number, make, model, and year, and
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|
(4) the Illinois certificate of title number.
The foregoing records shall be available for inspection by any officer
of the Secretary of State's Office at any reasonable hour.
(k) Except at the time of sale or repossession of the vehicle, no
person licensed as a used vehicle dealer may issue any other person a newly
created key to a vehicle unless the used vehicle dealer makes a color photocopy or electronic scan of the
driver's license or State identification card of the person requesting or
obtaining the newly created key. The used vehicle dealer must retain the photocopy or scan
for 30 days.
A used vehicle dealer who violates this subsection (k) is guilty of a
petty offense. Violation of this subsection (k) is not cause to suspend,
revoke, cancel, or deny renewal of the used vehicle dealer's license.
(l) Used vehicle dealers licensed under this Section shall provide the Secretary of State a register for the sale at auction of each salvage or junk certificate vehicle. Each register shall include the following information:
1. The year, make, model, style, and color of the
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|
2. The vehicle's manufacturer's identification number
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| or, if applicable, the Secretary of State or Illinois State Police identification number;
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|
3. The date of acquisition of the vehicle;
4. The name and address of the person from whom the
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|
5. The name and address of the person to whom any
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| vehicle was disposed, the person's Illinois license number or if the person is an out-of-state salvage vehicle buyer, the license number from the state or jurisdiction where the buyer is licensed; and
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|
6. The purchase price of the vehicle.
The register shall be submitted to the Secretary of State via written or electronic means within 10 calendar days from the date of the auction.
(m) If a licensee under this Section voluntarily surrenders a license to the Illinois Secretary of State Police or a representative of the Secretary of State Vehicle Services Department due to the licensee's inability to adhere to recordkeeping provisions, or the inability to properly issue certificates of title or registrations under this Code, or the Secretary revokes a license under this Section, then the licensee and the licensee's agent, designee, or legal representative, if applicable, may not be named on a new application for a licensee under this Section or under this Chapter, nor is the licensee or the licensee's agent, designee, or legal representative permitted to work for another licensee under this Chapter in a recordkeeping, management, or financial position or as an employee who handles certificate of title and registration documents and applications.
(Source: P.A. 101-505, eff. 1-1-20; 102-154, eff. 1-1-22; 102-538, eff. 8-20-21; 102-813, eff. 5-13-22; 102-982, eff. 7-1-23 .)
|
(625 ILCS 5/5-102.1) (from Ch. 95 1/2, par. 5-102.1) Sec. 5-102.1. Permits for off site sales and exhibitions. (a) A licensed new or used motor vehicle dealer licensed under Section 5-101 or 5-102 shall not engage in any off site sale without an off site sale permit issued by the Secretary under this Section. The Secretary shall issue an off site sale permit to a dealer if: (1) an application therefor is received by the |
| Secretary prior to the beginning date of the proposed off site sale, accompanied by a fee of $25;
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|
(2) the applicant is a licensed new vehicle dealer or
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| used vehicle dealer in good standing; and
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|
(3) the Secretary determines that the proposed off
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| site sale will conform with the requirements imposed by law.
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|
However, in no event shall an off site sale permit be issued to any licensed new or used vehicle dealer for any off site sale to be conducted outside that dealer's relevant market area, as that term is defined in this Chapter, except that this restriction shall not apply to off site sales of motor homes or recreational vehicles.
The provisions of this subsection shall not apply to self-contained motor homes, mini motor homes, van campers, and recreational trailers, including trailers designed and used to transport vessels or watercraft.
An off site sale permit does not authorize the sale of vehicles on a Sunday.
(b) Only a new or used vehicle dealer licensed under Section 5-101 or 5-102 may participate in a display exhibition and shall obtain a display exhibition permit issued by the Secretary under this Section.
The Secretary shall issue a display exhibition permit to a dealer if:
(1) an application therefor is received by the
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| Secretary prior to the beginning date of the proposed exhibition, accompanied by a fee of $10;
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|
(2) the applicant is a licensed new vehicle dealer or
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| used vehicle dealer in good standing; and
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|
(3) the Secretary determines that the proposed
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| exhibition will conform with the requirements imposed by law.
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|
A display exhibition permit shall be valid for a period of no longer than 30 days.
(c) A licensed new or used motor vehicle dealer under Section 5-101 or 5-102, or any other person as defined in this Section, may participate in a trade show exhibition and must obtain a trade show exhibition permit issued by the Secretary under this Section.
The Secretary shall issue a trade show exhibition permit if:
(1) an application is received by the Secretary
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| before the beginning date of the proposed trade show exhibition, accompanied by a fee of $10;
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|
(2) the applicant is a licensed new vehicle dealer or
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| used vehicle dealer in good standing; and
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|
(3) the Secretary determines that the proposed trade
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| show exhibition shall conform with the requirements imposed by law.
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|
A trade show exhibition permit shall be valid for a period of no longer than 30 days.
The provisions of this subsection shall not apply to self-contained motor homes, mini motor homes, van campers, and recreational trailers, including trailers designed and used to transport vessels or watercraft.
The term "any other person" shall mean new or used vehicle dealers licensed by other states; provided however, a trade show exhibition of new vehicles shall only be participated in by licensed new vehicle dealers, at least 2 of which must be licensed under Section 5-101.
(d) An Illinois or out-of-state licensed new or used trailer dealer, manufactured home dealer, motor home dealer, mini motor home dealer, or van camper dealer shall not engage in any off site sale or trade show exhibition without first acquiring a permit issued by the Secretary under this subsection. However, the provisions of this Section shall not apply to a licensed trailer dealer selling a mobile home or manufactured housing, as defined in the Illinois Manufactured Housing and Mobile Home Safety Act, if the manufactured housing or mobile home has utilities permanently attached. The Secretary shall issue a permit to an Illinois dealer if:
(1) an application is received by the Secretary
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| before the beginning date of the proposed off site sale or trade show exhibition, accompanied by a fee of $25;
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|
(2) the applicant is a licensed new or used vehicle
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| dealer in good standing; and
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|
(3) the Secretary determines that the proposed off
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| site sale or trade show exhibition will conform with the requirements imposed by law.
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|
The Secretary shall issue a permit to an out-of-state dealer if the requirements of subdivisions (1), (2), and (3) of this subsection (d) are met and at least 2 licensed Illinois dealers will participate in the off site sale or trade show exhibition.
A permit issued pursuant to this subsection shall allow for the sale of vehicles at either an off site sale or at a trade show exhibition. The permit shall be valid for a period not to exceed 30 days.
(e) The Secretary of State may adopt rules regulating the conduct of off site deliveries, sales, and exhibitions, and governing the issuance and enforcement of the permits authorized under this Section. An Illinois licensed new or used motor vehicle dealer is authorized to conduct sales activities, including the collection of electronic signatures, via the Internet and deliver vehicles to a customer at the address provided in the customer's application, if the sale, lease, or delivery is requested by the customer in writing and only after the identity of the customer has been verified at the time of delivery. Any documents that State or federal law require to be signed in person may be signed at the time of delivery without constituting an off site sale that is subject to this Section. If a vehicle is delivered to an address other than the licensed dealer's established place of business, the date of the sale shall be that date on which the application for title is signed by the purchaser of the vehicle.
(Source: P.A. 103-392, eff. 1-1-24 .)
|
(625 ILCS 5/5-102.7) Sec. 5-102.7. Dealer Recovery Trust Fund. (a) The General Assembly finds that motor vehicle dealers that go out of business without fulfilling agreements to pay off the balance of their customers' liens on traded-in vehicles cause financial harm to those customers by leaving those customers liable for multiple vehicle loans and cause harm to the integrity of the motor vehicle retailing industry. It is the intent of the General Assembly to protect vehicle purchasers by creating a Dealer Recovery Trust Fund to reimburse these consumers. (b) The Dealer Recovery Trust Fund shall be used solely for the limited purpose of
helping victims of dealership closings. Any interest accrued by moneys in the Fund shall be
deposited and become part of the Dealer Recovery Trust Fund and its purpose. The sole beneficiaries of the Dealer Recovery Trust Fund are victims of
dealership closings. (c) Except where the context otherwise requires, the following words and phrases, when used in this Section, have the meanings ascribed to them in this subsection (c): "Applicant" means a person who applies for reimbursement from the Dealer Recovery Trust Fund Board. "Board" means the Dealer Recovery Trust Fund Board created under this Section. "Dealer" means a new vehicle dealer licensed under Section 5-101, a used vehicle dealer licensed under Section 5-102, or a Buy Here, Pay Here used vehicle dealer licensed under 5-102.8, excepting a dealer who primarily sells mobile homes, recreational vehicles, or trailers. "Fund" means the Dealer Recovery Trust Fund created under this Section. "Fund Administrator" means the private entity, which shall be appointed by the Board, that administers the Dealer Recovery Trust Fund. (d) Beginning October 1, 2011, each application or renewal for a new vehicle dealer's license and each application or renewal for a Buy Here, Pay Here used vehicle dealer licensed under 5-102.8 or a used vehicle dealer's license shall be accompanied by the applicable Annual Dealer Recovery Fund Fee under Section 5-101 or 5-102 of this Code. The fee shall be in addition to any other fees imposed under this Article, shall be submitted at the same time an application or renewal for a new vehicle dealer's license, used vehicle dealer's license, or Buy Here, Pay Here used vehicle dealer is submitted, and shall be made payable to and remitted directly to the Dealer Recovery Trust Fund, a trust fund outside of the State Treasury which is hereby created. In addition, the Dealer Recovery Trust Fund may accept any federal, State, or private moneys for deposit into the Fund. (e) The Fund Administrator shall maintain a list of all dealers who have paid the fee under subsection (d) of this Section for the current year, which shall be available to the Secretary of State and the Board. The Secretary of State shall revoke the dealer license of any dealer who does not pay the fee imposed under subsection (d) of this Section. The Secretary of State and the Fund Administrator may enter into information sharing agreements as needed to implement this Section. (f) The Fund shall be audited annually by an independent auditor who is a certified public accountant and who has been selected by the Board. The independent auditor shall compile an annual report, which shall be filed with the Board and shall be a public record. The auditor shall be paid by the Fund, pursuant to an order of the Board. (g) The Fund shall be maintained by the Fund Administrator, who shall keep current records of the amounts deposited into the Fund and the amounts paid out of the Fund pursuant to an order of the Board. These records shall be made available to all members of the Board upon reasonable request during normal business hours. The Fund Administrator shall report the balance in the Fund to the Board monthly, by the 15th day of each month. For purposes of determining the amount available to pay claims under this Section at any meeting of the Board, the Board shall use the Fund Administrator's most recent monthly report. The Fund Administrator shall purchase liability insurance to cover management of the Fund at a cost not to exceed 2% of the balance in the Fund as of January 15th of that year. (h) In any year for which the balance in the Fund as of August 31st is greater than $3,500,000, the Fund Administrator shall notify the Secretary of State and the Secretary of State shall suspend collection of the fee for the following year for any dealer who has not had a claim paid from the Fund, has not had his or her license suspended or revoked, and has not been assessed any civil penalties under this Code during the 3 previous years. (i) Moneys in the Dealer Recovery Trust Fund may be paid from the Fund only as directed by a written order of the Board and used only for the following purposes: (i) to pay claims under a written order of the Board |
| as provided in this Section; or
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|
(ii) to reimburse the Fund Administrator for its
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| expenses related to the administration of the Fund, provided that the reimbursement to the Fund Administrator in any year shall not exceed 2% of the balance in the Fund as of January 15th of that year.
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|
(j) The Dealer Recovery Trust Fund Board is hereby created. The Board shall consist of the Secretary of State, or his or her designee, who shall serve as chair, the Attorney General, or his or her designee, who shall serve as secretary, and one person alternatively representing new and independent Illinois automobile dealers, selected collectively by the Attorney General, or his or her designee, and the Secretary of State, or his or her designee. The Secretary of State may propose procedures and employ personnel as necessary to implement this Section. The Board shall meet quarterly, and as needed, as directed by the chair. The Board may not pay out any claims before the balance deposited into the Fund exceeds $500,000. Board meetings shall be open to the public. The Board has the authority to take any action by at least a two-thirds majority vote.
(k) The following persons may apply to the Board for reimbursement from the Dealer Recovery Trust Fund:
(i) A retail customer who, on or after October 1,
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| 2011, purchases a vehicle from a dealer who subsequently files for bankruptcy or whose vehicle dealer's license is subsequently revoked by the Secretary of State or otherwise terminated and, as part of the purchase transaction, trades in a vehicle with an outstanding lien to the dealer if lien satisfaction was a condition of the purchase agreement and the retail customer determines that the lien has not been satisfied;
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|
(ii) A retail customer who, on or after October 1,
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| 2011, purchases a vehicle with an undisclosed lien from a dealer who subsequently files for bankruptcy or whose vehicle dealer's license is subsequently revoked by the Secretary of State or otherwise terminated;
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|
(iii) A dealer who, on or after October 1, 2011,
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| purchases a vehicle with an undisclosed lien from another dealer who subsequently files for bankruptcy or whose vehicle dealer's license is subsequently revoked by the Secretary of State or otherwise terminated.
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|
(l) To be considered by the Board, an applicant must submit his or her claim to the Board within 2 years after the date of the transaction that gave rise to the claim.
(m) At each meeting of the Board, it shall consider all claims that are properly submitted to it on forms prescribed by the Secretary of State at least 30 days before the date of the Board's meeting. Before the Board may consider a claim against a dealer, it must make a written determination that the dealer has filed for bankruptcy under the provisions of 11 U.S.C. Chapter 7; that the Secretary of State has revoked his or her dealer's license; or that the license has been otherwise terminated. Once the Board has made this determination, it may consider the applicant's claim against the dealer. If a two-thirds majority of the Board determines that the dealer has committed a violation under subsection (k), it shall grant the applicant's claim. Except as otherwise provided in this Section, the maximum amount of any award for a claim under paragraph (i) of subsection (k) of this Section shall be equal to the amount of the unpaid balance of the lien that the dealer agreed to pay off on behalf of the applicant as shown on the bill of sale or the retail installment sales contract. The maximum amount of any claim under paragraph (ii) or (iii) of subsection (k) of this Section shall be equal to the amount of the undisclosed lien. However, no award for a claim under subsection (k) of this Section shall exceed $35,000.
(n) If the balance in the Fund at the time of any Board meeting is less than the amount of the total amount of all claims awarded at that meeting, then all awards made at that meeting shall be reduced, pro rata, so that the amount of claims does not exceed the balance in the Fund. Before it reviews new claims, the Board shall issue written orders to pay the remaining portion of any claims that were so reduced, provided that the balance in the Fund is sufficient to pay those claims.
(o) Whenever the balance of the Fund falls below $500,000, the Board may charge dealers
an additional assessment of up to $50 to bring the balance to at least $500,000.
Not more than one additional assessment may be made against a dealer in any 12-month period.
(p) If the total amount of claims awarded against any dealer exceeds 33% of the balance in the Fund, the Board may permanently reduce the amount of those claims, pro rata, so that those claims do not exceed 33% of the balance in the Fund.
(q) The Board shall issue a written order directing the Fund Administrator to pay an applicant's claim to a secured party where the Board has received a signed agreement between the applicant and the secured party holding the lien. The agreement must (i) state that the applicant and the secured party agree to accept payment from the Fund to the secured party as settlement in full of all claims against the dealer; and (ii) release the lien and the title, if applicable, to the vehicle that was the subject of the claim. The written order shall state the amount of the claim and the name and address of the secured party to whom the claim shall be paid. The Fund Administrator shall pay the claim within 30 days after it receives the Board's order.
(r) No dealer or principal associated with a dealer's license is eligible for licensure, renewal or relicensure until the full amount of reimbursement for an unpaid claim, plus interest as determined by the Board, is paid to the Fund. Nothing in this Section shall limit the authority of the Secretary of State to suspend, revoke, or levy civil penalties against a dealer, nor shall full repayment of the amount owed to the Fund nullify or modify the effect of any action by the Secretary.
(s) Nothing in this Section shall limit the right of any person to seek relief though civil action against any other person as an alternative to seeking reimbursement from the Fund.
(Source: P.A. 101-505, eff. 1-1-20 .)
|
(625 ILCS 5/5-102.8) Sec. 5-102.8. Licensure of Buy Here, Pay Here used vehicle dealers. (a) As used in this Section, "Buy Here, Pay Here used vehicle dealer" means any entity that engages in the business of selling or leasing of vehicles and finances the sale or purchase price of the vehicle to a customer without the customer using a third-party lender. (b) No person shall engage in
the business of selling or dealing in, on consignment or otherwise, 5 or
more used vehicles of any make during the year (except rebuilt salvage vehicles
sold by their rebuilders to persons licensed under this Chapter), or act as
an intermediary, agent, or broker for any licensed dealer or vehicle
purchaser (other than as a salesperson) or represent or advertise that he or she
is so engaged or intends to so engage in such business of a Buy Here, Pay Here used vehicle dealer unless licensed to
do so by the Secretary of State under the provisions of this Section.
(c) An application for a Buy Here, Pay Here used vehicle dealer's license shall be
filed with the Secretary of State, duly verified by oath, in such form
as the Secretary of State may by rule or regulation prescribe and shall
contain:
(1) The name and type of business organization |
| established and additional places of business, if any, in this State.
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|
(2) If the applicant is a corporation, a list of its
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| officers, directors, and shareholders having a 10% or greater ownership interest in the corporation, setting forth the residence address of each; if the applicant is a sole proprietorship, a partnership, an unincorporated association, a trust, or any similar form of business organization, the names and residence address of the proprietor or of each partner, member, officer, director, trustee, or manager.
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|
(3) A statement that the applicant has been approved
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| for registration under the Retailers' Occupation Tax Act by the Department of Revenue. However, this requirement does not apply to a dealer who is already licensed hereunder with the Secretary of State, and who is merely applying for a renewal of his or her license. As evidence of this fact, the application shall be accompanied by a certification from the Department of Revenue showing that the Department has approved the applicant for registration under the Retailers' Occupation Tax Act.
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|
(4) A statement that the applicant has complied with
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| the appropriate liability insurance requirement. A Certificate of Insurance in a solvent company authorized to do business in the State of Illinois shall be included with each application covering each location at which he or she proposes to act as a Buy Here, Pay Here used vehicle dealer. The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, 2 or more persons in any one crash, and $50,000 for damage to property. Such policy shall expire not sooner than December 31 of the year for which the license was issued or renewed. The expiration of the insurance policy shall not terminate the liability under the policy arising during the period for which the policy was filed.
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|
If the permitted user has a liability insurance
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| policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one crash, and $50,000 for damage to property, then the permitted user's insurer shall be the primary insurer and the dealer's insurer shall be the secondary insurer. If the permitted user does not have a liability insurance policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one crash, and $50,000 for damage to property, or does not have any insurance at all, then the dealer's insurer shall be the primary insurer and the permitted user's insurer shall be the secondary insurer.
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|
When a permitted user is "test driving" a Buy Here,
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| Pay Here used vehicle dealer's automobile, the Buy Here, Pay Here used vehicle dealer's insurance shall be primary and the permitted user's insurance shall be secondary.
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|
As used in this paragraph, "permitted user" means a
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| person who, with the permission of the Buy Here, Pay Here used vehicle dealer or an employee of the Buy Here, Pay Here used vehicle dealer, drives a vehicle owned and held for sale or lease by the Buy Here, Pay Here used vehicle dealer that the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle. "Permitted user" includes a person who, with the permission of the Buy Here, Pay Here used vehicle dealer, drives a vehicle owned or held for sale or lease by the Buy Here, Pay Here used vehicle dealer for loaner purposes while the user's vehicle is being repaired or evaluated.
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|
As used in this paragraph, "test driving" occurs when
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| a permitted user who, with the permission of the Buy Here, Pay Here used vehicle dealer or an employee of the Buy Here, Pay Here used vehicle dealer, drives a vehicle owned and held for sale or lease by a Buy Here, Pay Here used vehicle dealer that the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle.
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|
As used in this paragraph, "loaner purposes" means
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| when a person who, with the permission of the Buy Here, Pay Here used vehicle dealer, drives a vehicle owned or held for sale or lease by the used vehicle dealer while the user's vehicle is being repaired or evaluated.
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|
(5) An application for a Buy Here, Pay Here used
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| vehicle dealer's license shall be accompanied by the following license fees:
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|
(A) $1,000 for the applicant's established place
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| of business, and $50 for each additional place of business, if any, to which the application pertains; however, if the application is made after June 15 of any year, the license fee shall be $500 for the applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only if the application is denied by the Secretary of State. Of the money received by the Secretary of State as license fees under this subparagraph, 95% shall be deposited into the General Revenue Fund.
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|
(B) Except for dealers selling 25 or fewer
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| automobiles or as provided in subsection (h) of Section 5-102.7 of this Code, an Annual Dealer Recovery Fund Fee in the amount of $500 for the applicant's established place of business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the fee shall be $250 for the applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. For a license renewal application, the fee shall be based on the amount of automobiles sold in the past year according to the following formula:
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|
(1) $0 for dealers selling 25 or less
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|
(2) $150 for dealers selling more than 25 but
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| less than 200 automobiles;
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|
(3) $300 for dealers selling 200 or more
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| automobiles but less than 300 automobiles; and
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|
(4) $500 for dealers selling 300 or more
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|
Fees shall be returnable only if the application
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| is denied by the Secretary of State. Money received under this subparagraph shall be deposited into the Dealer Recovery Trust Fund. A Buy Here, Pay Here used vehicle dealer shall pay into the Dealer Recovery Trust Fund for every vehicle that is financed, sold, or otherwise transferred to an individual or entity other than the Buy Here, Pay Here used vehicle dealer even if the individual or entity to which the Buy Here, Pay Here used vehicle dealer transfers the vehicle is unable to continue to adhere to the terms of the transaction by the Buy Here, Pay Here used vehicle dealer.
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|
(6) A statement that each officer, director,
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| shareholder having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principal in the business of the applicant has not committed in the past 3 years any one violation as determined in any civil, criminal, or administrative proceedings of any one of the following:
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|
(A) the Anti-Theft Laws of this Code;
(B) the Certificate of Title Laws of this Code;
(C) the Offenses against Registration and
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| Certificates of Title Laws of this Code;
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|
(D) the Dealers, Transporters, Wreckers and
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| Rebuilders Laws of this Code;
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|
(E) Section 21-2 of the Illinois Criminal Code of
|
| 1961 or the Criminal Code of 2012, Criminal Trespass to Vehicles; or
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|
(F) the Retailers' Occupation Tax Act.
(7) A statement that each officer, director,
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| shareholder having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principal in the business of the applicant has not committed in any calendar year 3 or more violations, as determined in any civil, criminal, or administrative proceedings, of any one or more of the following:
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|
(A) the Consumer Finance Act;
(B) the Consumer Installment Loan Act;
(C) the Retail Installment Sales Act;
(D) the Motor Vehicle Retail Installment Sales
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|
(E) the Interest Act;
(F) the Illinois Wage Assignment Act;
(G) Part 8 of Article XII of the Code of Civil
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|
(H) the Consumer Fraud and Deceptive Business
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|
(8) A statement that, within 10 years of application,
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| each officer, director, shareholder having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager, or other principal in the business of the applicant has not committed, as determined in any civil, criminal, or administrative proceeding, in any calendar year one or more forcible felonies under the Criminal Code of 1961 or the Criminal Code of 2012, or a violation of either or both Article 16 or 17 of the Criminal Code of 1961, or a violation of either or both Article 16 or 17 of the Criminal Code of 2012, Article 29B of the Criminal Code of 1961 or the Criminal Code of 2012, or a similar out-of-state offense. For the purposes of this paragraph, "forcible felony" has the meaning provided in Section 2-8 of the Criminal Code of 2012.
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(9) A bond or Certificate of Deposit in the amount of
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| $50,000 for each location at which the applicant intends to act as a Buy Here, Pay Here used vehicle dealer. The bond shall be for the term of the license. The bond shall run to the People of the State of Illinois, with surety by a bonding or insurance company authorized to do business in this State. It shall be conditioned upon the proper transmittal of all title and registration fees and taxes (excluding taxes under the Retailers' Occupation Tax Act) accepted by the applicant as a Buy Here, Pay Here used vehicle dealer.
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(10) Such other information concerning the business
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| of the applicant as the Secretary of State may by rule prescribe.
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(11) A statement that the applicant understands
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| Chapter 1 through Chapter 5 of this Code.
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(12) A copy of the certification from the
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| prelicensing education program.
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(13) The full name, address, and contact information
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| of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
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(d) Any change that renders no longer accurate any information
contained in any application for a Buy Here, Pay Here used vehicle dealer's license shall
be amended within 30 days after the occurrence of each change on such
form as the Secretary of State may prescribe by rule,
accompanied by an amendatory fee of $2.
(e) Anything in this Chapter to the contrary notwithstanding, no
person shall be licensed as a Buy Here, Pay Here used vehicle dealer unless the person
maintains an established place of business as
defined in this Chapter.
(f) The Secretary of State shall, within a reasonable time after
receipt, examine an application submitted under this Section.
Unless the Secretary makes a determination that the application does not conform to this Section or that grounds exist
for a denial of the application under Section 5-501 of this Chapter, the Secretary
must grant the applicant an original Buy Here, Pay Here used vehicle dealer's license in
writing for his or her established place of business and a supplemental license
in writing for each additional place of business in such form as the Secretary may
prescribe by rule that shall include the following:
(1) The name of the person licensed.
(2) If a corporation, the name and address of its
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| officers or if a sole proprietorship, a partnership, an unincorporated association, or any similar form of business organization, the name and address of the proprietor or of each partner, member, officer, director, trustee, or manager.
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(3) In the case of an original license, the
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| established place of business of the licensee.
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(4) In the case of a supplemental license, the
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| established place of business of the licensee and the additional place of business to which the supplemental license pertains.
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(5) The full name, address, and contact information
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| of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
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(g) The appropriate instrument evidencing the license or a certified
copy thereof, provided by the Secretary of State shall be kept posted,
conspicuously, in the established place of business of the licensee and
in each additional place of business, if any, maintained by the
licensee.
(h) Except as provided in subsection (i), all Buy Here, Pay Here used
vehicle dealer's licenses granted under this Section expire by operation
of law on December 31 of the calendar year for which they are granted
unless sooner revoked or cancelled under Section 5-501 of this Chapter.
(i) A Buy Here, Pay Here used vehicle dealer's license may be renewed upon application
and payment of the fee required herein, and submission of proof of
coverage by an approved bond under the Retailers' Occupation Tax Act
or proof that the applicant is not subject to such bonding requirements, as
in the case of an original license, but in the case of an application for the
renewal of an effective license made during the month of December,
the effective license shall remain in force until the application for
renewal is granted or denied by the Secretary of State.
(j) Each person licensed as a Buy Here, Pay Here used vehicle dealer is required to
furnish each purchaser of a motor vehicle:
(1) a certificate of title properly assigned to the
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(2) a statement verified under oath that all
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| identifying numbers on the vehicle agree with those on the certificate of title;
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(3) a bill of sale properly executed on behalf of the
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(4) a copy of the Uniform Invoice-transaction
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| reporting return referred to in Section 5-402;
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(5) in the case of a rebuilt vehicle, a copy of the
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| Disclosure of Rebuilt Vehicle Status; and
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(6) in the case of a vehicle for which the warranty
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| has been reinstated, a copy of the warranty.
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(k) Except at the time of sale or repossession of the vehicle, no
person licensed as a Buy Here, Pay Here used vehicle dealer may issue any other person a newly
created key to a vehicle unless the Buy Here, Pay Here used vehicle dealer makes a color photocopy or electronic scan of the
driver's license or State identification card of the person requesting or
obtaining the newly created key. The Buy Here, Pay Here used vehicle dealer must retain the photocopy or scan
for 30 days.
A Buy Here, Pay Here used vehicle dealer who violates this subsection (k) is guilty of a
petty offense. Violation of this subsection (k) is not cause to suspend,
revoke, cancel, or deny renewal of the used vehicle dealer's license.
(l) A Buy Here, Pay Here used vehicle dealer licensed under this Section shall provide the Secretary of State a register for the sale at auction of each salvage or junk certificate vehicle. Each register shall include the following information:
(1) the year, make, model, style, and color of the
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(2) the vehicle's manufacturer's identification
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| number or, if applicable, the Secretary of State or Illinois Department of State Police identification number;
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(3) the date of acquisition of the vehicle;
(4) the name and address of the person from whom the
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(5) the name and address of the person to whom any
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| vehicle was disposed, the person's Illinois license number or, if the person is an out-of-state salvage vehicle buyer, the license number from the state or jurisdiction where the buyer is licensed; and
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(6) the purchase price of the vehicle.
The register shall be submitted to the Secretary of State via written or electronic means within 10 calendar days from the date of the auction.
(m) If a licensee under this Section voluntarily surrenders a license to the Illinois Secretary of State Police or a representative of the Secretary of State Vehicle Services Department due to the licensee's inability to adhere to recordkeeping provisions, or the inability to properly issue certificates of title or registrations under this Code, or the Secretary revokes a license under this Section, then the licensee and the licensee's agent, designee, or legal representative, if applicable, may not be named on a new application for a licensee under this Section or under this Chapter, nor is the licensee or the licensee's agent, designee, or legal representative permitted to work for another licensee under this Chapter in a recordkeeping, management, or financial position or as an employee who handles certificate of title and registration documents and applications.
(Source: P.A. 101-505, eff. 1-1-20; 102-154, eff. 1-1-22; 102-982, eff. 7-1-23 .)
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