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92nd General Assembly

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Public Act 92-0391

SB115 Enrolled                                 LRB9200602DHmb

    AN ACT to amend the Illinois  Vehicle  Code  by  changing
Sections 5-101 and 5-102.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The  Illinois  Vehicle  Code  is  amended  by
changing Sections 5-101 and 5-102 as follows:

    (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.
         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 name and residence  address
    of  the  proprietor  or of each partner, member, officer,
    director, trustee, or manager.
         3.  The make or makes  of  new  vehicles  which  the
    applicant will offer for sale at retail in this State.
         4.  The  name  of  each  manufacturer  or franchised
    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.
         5.  A statement that the applicant has been approved
    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.
         6.  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 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 accident, 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.
         7.  (A) An  application  for  a  new  motor  vehicle
         dealer's   license   shall  be  accompanied  by  the
         following license fees:
              $100  for  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  license fee shall be $50 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.  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.
              (B)  An  application for a new vehicle dealer's
         license, other than for a new motor vehicle dealer's
         license,  shall  be  accompanied  by  the  following
         license fees:
              $50  for  applicant's  established   place   of
         business,  and  $25  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 $25 for applicant's
         established place of business plus $12.50  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.
         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 Code;
              (B)  The  Certificate  of  Title  Laws  of  the
         Illinois Vehicle Code;
              (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,
         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
         Act;
              (E)  The Interest Act;
              (F)  The Illinois Wage Assignment Act;
              (G)  Part 8 of Article XII of the Code of Civil
         Procedure; or
              (H)  The Consumer Fraud Act.
         10.  A bond or certificate of deposit in the  amount
    of  $20,000  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 One through Chapter Five of this Code.
    (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.
    (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 person;
         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 copy 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 copy 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.
(Source:  P.A.  88-158;  89-145,  eff.  7-14-95; 89-189, eff.
1-1-96; 89-433, eff. 12-15-95.)

    (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 accident, 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.
         5.  An  application  for  a  used  vehicle  dealer's
    license  shall  be  accompanied  by the following license
    fees:
         $50 for applicant's established place  of  business,
    and $25 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  $25  for applicant's established
    place of business plus $12.50 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.
         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 Code;
              (B)  The  Certificate  of  Title  Laws  of  the
         Illinois Vehicle Code;
              (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 Illinois Criminal Code
         of 1961, 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 or 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
         Act;
              (E)  The Interest Act;
              (F)  The Illinois Wage Assignment Act;
              (G)  Part 8 of Article XII of the Code of Civil
         Procedure; or
              (H)  The Consumer Fraud Act.
         8.  A  bond  or Certificate of Deposit in the amount
    of $20,000 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 the applicant as the Secretary of State may by rule or
    regulation prescribe.
         10.  A  statement  that  the  applicant  understands
    Chapter 1 through Chapter 5 of this Code.
    (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
    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  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.
    (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
    purchaser;
         2.  A  statement  verified  under  oath   that   all
    identifying  numbers  on  the vehicle agree with those on
    the certificate of title;
         3.  A bill of sale properly executed  on  behalf  of
    such person;
         4.  A   copy   of  the  Uniform  Invoice-transaction
    reporting return referred to in  Section  5-402  of  this
    Chapter;
         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)  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
    vehicle identification number, make, model, and year, and
         (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 copy 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 copy 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.
(Source: P.A. 88-158; 89-189, eff. 1-1-96.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly May 22, 2001.
    Approved August 16, 2001.

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