Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts
soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide
Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
625 ILCS 5/Ch. 5 Art. V
(625 ILCS 5/Ch. 5 Art. V heading)
625 ILCS 5/5-501
(625 ILCS 5/5-501)
(from Ch. 95 1/2, par. 5-501)
Denial, suspension or revocation or cancellation of a license.
(a) The license of a person issued under this Chapter may be denied,
revoked or suspended if the Secretary of State finds that the applicant,
or the officer, director, shareholder having a ten percent or
greater ownership interest in the corporation, owner, partner, trustee,
manager, employee or the licensee
1. Violated this Act;
2. Made any material misrepresentation to the
Secretary of State in connection with an application for a license, junking certificate, salvage certificate, title or registration;
3. Committed a fraudulent act in connection with
selling, bartering, exchanging, offering for sale or otherwise dealing in vehicles, chassis, essential parts, or vehicle shells;
4. As a new vehicle dealer has no contract with a
manufacturer or enfranchised distributor to sell that new vehicle in this State;
5. Not maintained an established place of business as
6. Failed to file or produce for the Secretary of
State any application, report, document or other pertinent books, records, documents, letters, contracts, required to be filed or produced under this Code or any rule or regulation made by the Secretary of State pursuant to this Code;
7. Previously had, within 3 years, such a license
denied, suspended, revoked, or cancelled under the provisions of subsection (c)(2) of this Section;
8. Has committed in any calendar year 3 or more
violations, as determined in any civil or criminal proceeding, 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. "An Act in relation to the rate of interest
and other charges in connection with sales on credit and the lending of money", approved May 24, 1879, as amended;
f. "An Act to promote the welfare of wage-earners
by regulating the assignment of wages, and prescribing a penalty for the violation thereof", approved July 1, 1935, as amended;
g. Part 8 of Article XII of the Code of Civil
h. the "Consumer Fraud Act";
9. Failed to pay any fees or taxes due under this
Act, or has failed to transmit any fees or taxes received by him for transmittal by him to the Secretary of State or the State of Illinois;
10. Converted an abandoned vehicle;
11. Used a vehicle identification plate or number
assigned to a vehicle other than the one to which originally assigned;
12. Violated the provisions of Chapter 5 of this Act,
13. Violated the provisions of Chapter 4 of this Act,
14. Violated the provisions of Chapter 3 of this Act,
15. Violated Section 21-2 of the Criminal Code of
1961 or the Criminal Code of 2012, Criminal Trespass to Vehicles;
16. Made or concealed a material fact in connection
with his application for a license;
17. Acted in the capacity of a person licensed or
acted as a licensee under this Chapter without having a license therefor;
18. Failed to pay, within 90 days after a final
judgment, any fines assessed against the licensee pursuant to an action brought under Section 5-404;
19. Failed to pay the Dealer Recovery Trust Fund fee
under Section 5-102.7 of this Code;
20. Failed to pay, within 90 days after notice has
been given, any fine or fee owed as a result of an administrative citation issued by the Secretary under this Code.
(b) In addition to other grounds specified in this Chapter, the
Secretary of State, on complaint of the Department of Revenue, shall
refuse the issuance or renewal of a license, or suspend or revoke such
license, for any of the following violations of the "Retailers'
Occupation Tax Act", the tax imposed on corporations under subsection (b) of Section 201 of the Illinois Income Tax Act, the Personal Property Tax Replacement Income Tax imposed under subsections (c) and (d) of Section 201 of the Illinois Income Tax Act, or the tax imposed under Section 704A of the Illinois Income Tax Act:
1. Failure to make a tax return;
2. The filing of a fraudulent return;
3. Failure to pay all or part of any tax or penalty
finally determined to be due;
4. Failure to comply with the bonding requirements of
the "Retailers' Occupation Tax Act".
(b-1) In addition to other grounds specified in this Chapter, the
Secretary of State, on complaint of the Motor Vehicle Review Board, shall
refuse the issuance or renewal of a license, or suspend or revoke that
license, if costs or fees assessed under Section 29 or Section 30 of the Motor Vehicle Franchise Act have remained unpaid for a period in excess of 90 days after the licensee received from the Motor Vehicle Board a second notice and demand for the costs or fees. The Motor Vehicle Review Board must send the licensee written notice and demand for payment of the fees or costs at least 2 times, and the second notice and demand must be sent by certified mail.
(c) Cancellation of a license.
1. The license of a person issued under this Chapter
may be cancelled by the Secretary of State prior to its expiration in any of the following situations:
A. When a license is voluntarily surrendered, by
B. If the business enterprise is a sole
proprietorship, which is not a franchised dealership, when the sole proprietor dies or is imprisoned for any period of time exceeding 30 days; or
C. If the license was issued to the wrong person
or corporation, or contains an error on its face. If any person above whose license has been cancelled wishes to apply for another license, whether during the same license year or any other year, that person shall be treated as any other new applicant and the cancellation of the person's prior license shall not, in and of itself, be a bar to the issuance of a new license.
2. The license of a person issued under this Chapter
may be cancelled without a hearing when the Secretary of State is notified that the applicant, or any officer, director, shareholder having a 10 per cent or greater ownership interest in the corporation, owner, partner, trustee, manager, employee or member of the applicant or the licensee has been convicted of any felony involving the selling, bartering, exchanging, offering for sale, or otherwise dealing in vehicles, chassis, essential parts, vehicle shells, or ownership documents relating to any of the above items.
(Source: P.A. 97-480, eff. 10-1-11; 97-838, eff. 7-20-12; 97-1150, eff. 1-25-13; 98-1080, eff. 8-26-14.)
625 ILCS 5/5-501.5
(625 ILCS 5/5-501.5)
License eligibility; fraud.
(a) For purposes of this Section, an "automotive parts recycler, scrap processor, repairer, or rebuilder" includes any owners, operators, principals, shareholders, partners, or directors that have ownership interest or managerial authority in the business at the time the fraud or misconduct occurred.
(b) Notwithstanding any other provision of law to the contrary, an automotive parts recycler, scrap processor, repairer, or rebuilder with a business license issued by a municipality that has been revoked or nonrenewed due to fraud or misconduct committed against the municipality within 3 years preceding the effective date of this amendatory Act of the 100th General Assembly or on or after the effective date of this amendatory Act of the 100th General Assembly shall not be eligible for a license or license renewal under Section 5-301 of this Code.
(c) No later than 30 days after the effective date of this amendatory Act of the 100th General Assembly, a municipality that has revoked or nonrenewed a business license under subsection (b) of this Section shall:
(1) notify the Secretary of State of the revocation
(2) notify any other municipality in which the former
licensee is known to conduct business that the former licensee's business license has been revoked or nonrenewed due to fraud or misconduct committed against the municipality.
(d) No later than 30 days after receiving a notice required under paragraph (2) of subsection (c) of this Section, a municipality shall take all actions necessary to revoke or, if the business license is set to expire within a 30-day period of the notice, prohibit renewal of the licensee's business license.
(d-5) No later than 30 days after receiving notice under paragraph (1) of subsection (c) of this Section, the Secretary shall notify the former licensee that it is not eligible to conduct business in this State as an automotive parts recycler, scrap processor, repairer, or rebuilder.
(e) An automotive parts recycler, scrap processor, repairer, or rebuilder shall be fined $1,000 for each day it conducts business in this State in violation of this Section.
(f) No unit of local government, including a home rule unit, may regulate business licenses in a manner inconsistent with this Section. This subsection (f) is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.
(Source: P.A. 100-409, eff. 8-25-17.)
625 ILCS 5/5-502
(625 ILCS 5/5-502)
(from Ch. 95 1/2, par. 5-502)
If any person operates in violation of any provision of this Chapter, or
any rule, regulation, order or decision of the Secretary of State, or of
any term, condition or limitation of any license, the Secretary of State,
or any person injured thereby, or any interested person, may apply to the
Circuit Court of the county in which such violation or some part thereof
occurred, or in which the person complained of has his established or
additional place of business or
resides, to prevent such violation. The Court has jurisdiction to enforce
obedience by injunction or other process restraining such person from
further violation and enjoining upon him obedience.
(Source: P.A. 86-444.)
625 ILCS 5/5-503
(625 ILCS 5/5-503)
(from Ch. 95 1/2, par. 5-503)
Failure to obtain dealer's license, operation of a business
with a suspended or revoked license.
(a) Any person operating a business
for which he is required to be licensed under Section 5-101, 5-101.2, 5-102, 5-201,
or 5-301 who fails to apply for such a license or licenses within 15 days
after being informed in writing by the Secretary of State that he must obtain
such a license or licenses is subject to a civil action brought by the
Secretary of State for operating a business without a license in the
circuit court in the county in which the business is located. If the
person is found to be in violation of Section 5-101, 5-101.2, 5-102, 5-201, or 5-301
by carrying on a business without being properly licensed, that person
shall be fined $300 for each business day he conducted his business without
such a license after the expiration of the 15-day period specified in this
(b) Any person who, having had his license or licenses issued under Section
5-101, 5-101.2, 5-102, 5-201, or 5-301 suspended, revoked, nonrenewed, cancelled, or denied by the
Secretary of State under Section 5-501 or 5-501.5 of this Code, continues to operate business after
the effective date of such revocation, nonrenewal, suspension, cancellation, or denial
may be sued in a civil action by the Secretary of State in the county in
which the established or additional place of such business is located. Except as provided in subsection (e) of Section 5-501.5 of this Code, if
such person is found by the court to have operated such a business after
the license or licenses required for conducting such
business have been suspended, revoked, nonrenewed, cancelled, or denied, that person
shall be fined $500 for each day he conducted business thereafter.
(Source: P.A. 100-409, eff. 8-25-17; 100-450, eff. 1-1-18; 100-863, eff. 8-14-18.)
625 ILCS 5/5-504
(625 ILCS 5/5-504)
(from Ch. 95 1/2, par. 5-504)
Effect of revoked or denied license - Notification to prospective
buyers - Rescinding of contracts. (a) No license shall be issued to any
person to conduct the business of a new vehicle
dealer, used vehicle
dealer, scrap processor, automotive parts
recycler, repairer, or
rebuilder at a location or at property at which that person or any other
person had his license as a new vehicle dealer, used
scrap processor, automotive parts recycler, repairer, or rebuilder revoked or denied
after a revocation or pending revocation within 2
months after such revocation or denial.
(b) A licensee who has been notified by the Secretary of State that the
Secretary of State may take action to revoke the dealer's license or
licenses of that licensee shall inform in writing any prospective buyer of
his business of such possible action by the Secretary of State.
(c) If any person purchases or contracts to purchase a business
required to be licensed by Section 5-101, 5-102, 5-201 or 5-301 without
being informed in writing by the prior owner or owners that, at the time of
the sale or making of contract to purchase, the prior owner or owners had
been informed by the Secretary of State that the Secretary of State may be
taking action to revoke the license or licenses of the prior owner or
owners, the person who has purchased or contracted to purchase such
business may, within one year after being informed that his application for
a dealer's license at that location had been denied due to the revocation
of the license or licenses of any prior owner or owners, rescind the
purchase or contract to purchase such business or the property, both real
and otherwise, at which the business is located.
(d) Notwithstanding the provisions of subsection (a) of this Section,
the Secretary of State may issue a license to a person applying for a
license as a new vehicle dealer, used vehicle dealer, scrap processor,
automotive parts recycler, repairer or rebuilder if the Secretary of State,
solely in his discretion, determines that a denial of the license under the
circumstances would place extreme undue hardship upon the applicant.
No license shall be issued under this subsection to a person who is a
spouse, offspring, sibling, parent, grandparent, grandchild, uncle or aunt,
nephew or niece, cousin or in-law of the person whose license to do
business at that location had been revoked or denied nor to a person who
was an officer or employee of the business firm in relation to which the
license was revoked or denied.
Notwithstanding the provisions of subsection (e) of Section 2-118 of
this Code, the venue for judicial review of final acts or decisions under
this subsection shall be the Circuit Court of Sangamon County.
(Source: P.A. 84-1302; 84-1304.)