97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3086

 

Introduced 2/23/2011, by Rep. Dave Winters

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/5-101  from Ch. 95 1/2, par. 5-101

    Amends the Illinois Vehicle Code. Makes a technical change in a Section concerning new vehicle dealers.


LRB097 08216 HEP 48341 b

 

 

A BILL FOR

 

HB3086LRB097 08216 HEP 48341 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by changing
5Section 5-101 as follows:
 
6    (625 ILCS 5/5-101)  (from Ch. 95 1/2, par. 5-101)
7    Sec. 5-101. New vehicle dealers must be licensed.
8    (a) No person shall engage in this State in the the
9business of selling or dealing in, on consignment or otherwise,
10new vehicles of any make, or act as an intermediary or agent or
11broker for any licensed dealer or vehicle purchaser other than
12as a salesperson, or represent or advertise that he is so
13engaged or intends to so engage in such business unless
14licensed to do so in writing by the Secretary of State under
15the provisions of this Section.
16    (b) An application for a new vehicle dealer's license shall
17be filed with the Secretary of State, duly verified by oath, on
18such form as the Secretary of State may by rule or regulation
19prescribe and shall contain:
20        1. The name and type of business organization of the
21    applicant and his established and additional places of
22    business, if any, in this State.
23        2. If the applicant is a corporation, a list of its

 

 

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1    officers, directors, and shareholders having a ten percent
2    or greater ownership interest in the corporation, setting
3    forth the residence address of each; if the applicant is a
4    sole proprietorship, a partnership, an unincorporated
5    association, a trust, or any similar form of business
6    organization, the name and residence address of the
7    proprietor or of each partner, member, officer, director,
8    trustee, or manager.
9        3. The make or makes of new vehicles which the
10    applicant will offer for sale at retail in this State.
11        4. The name of each manufacturer or franchised
12    distributor, if any, of new vehicles with whom the
13    applicant has contracted for the sale of such new vehicles.
14    As evidence of this fact, the application shall be
15    accompanied by a signed statement from each such
16    manufacturer or franchised distributor. If the applicant
17    is in the business of offering for sale new conversion
18    vehicles, trucks or vans, except for trucks modified to
19    serve a special purpose which includes but is not limited
20    to the following vehicles: street sweepers, fertilizer
21    spreaders, emergency vehicles, implements of husbandry or
22    maintenance type vehicles, he must furnish evidence of a
23    sales and service agreement from both the chassis
24    manufacturer and second stage manufacturer.
25        5. A statement that the applicant has been approved for
26    registration under the Retailers' Occupation Tax Act by the

 

 

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1    Department of Revenue: Provided that this requirement does
2    not apply to a dealer who is already licensed hereunder
3    with the Secretary of State, and who is merely applying for
4    a renewal of his license. As evidence of this fact, the
5    application shall be accompanied by a certification from
6    the Department of Revenue showing that that Department has
7    approved the applicant for registration under the
8    Retailers' Occupation Tax Act.
9        6. A statement that the applicant has complied with the
10    appropriate liability insurance requirement. A Certificate
11    of Insurance in a solvent company authorized to do business
12    in the State of Illinois shall be included with each
13    application covering each location at which he proposes to
14    act as a new vehicle dealer. The policy must provide
15    liability coverage in the minimum amounts of $100,000 for
16    bodily injury to, or death of, any person, $300,000 for
17    bodily injury to, or death of, two or more persons in any
18    one accident, and $50,000 for damage to property. Such
19    policy shall expire not sooner than December 31 of the year
20    for which the license was issued or renewed. The expiration
21    of the insurance policy shall not terminate the liability
22    under the policy arising during the period for which the
23    policy was filed. Trailer and mobile home dealers are
24    exempt from this requirement.
25        If the permitted user has a liability insurance policy
26    that provides automobile liability insurance coverage of

 

 

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1    at least $100,000 for bodily injury to or the death of any
2    person, $300,000 for bodily injury to or the death of any 2
3    or more persons in any one accident, and $50,000 for damage
4    to property, then the permitted user's insurer shall be the
5    primary insurer and the dealer's insurer shall be the
6    secondary insurer. If the permitted user does not have a
7    liability insurance policy that provides automobile
8    liability insurance coverage of at least $100,000 for
9    bodily injury to or the death of any person, $300,000 for
10    bodily injury to or the death of any 2 or more persons in
11    any one accident, and $50,000 for damage to property, or
12    does not have any insurance at all, then the dealer's
13    insurer shall be the primary insurer and the permitted
14    user's insurer shall be the secondary insurer.
15        When a permitted user is "test driving" a new vehicle
16    dealer's automobile, the new vehicle dealer's insurance
17    shall be primary and the permitted user's insurance shall
18    be secondary.
19        As used in this paragraph 6, a "permitted user" is a
20    person who, with the permission of the new vehicle dealer
21    or an employee of the new vehicle dealer, drives a vehicle
22    owned and held for sale or lease by the new vehicle dealer
23    which the person is considering to purchase or lease, in
24    order to evaluate the performance, reliability, or
25    condition of the vehicle. The term "permitted user" also
26    includes a person who, with the permission of the new

 

 

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1    vehicle dealer, drives a vehicle owned or held for sale or
2    lease by the new vehicle dealer for loaner purposes while
3    the user's vehicle is being repaired or evaluated.
4        As used in this paragraph 6, "test driving" occurs when
5    a permitted user who, with the permission of the new
6    vehicle dealer or an employee of the new vehicle dealer,
7    drives a vehicle owned and held for sale or lease by a new
8    vehicle dealer that the person is considering to purchase
9    or lease, in order to evaluate the performance,
10    reliability, or condition of the vehicle.
11        As used in this paragraph 6, "loaner purposes" means
12    when a person who, with the permission of the new vehicle
13    dealer, drives a vehicle owned or held for sale or lease by
14    the new vehicle dealer while the user's vehicle is being
15    repaired or evaluated.
16        7. (A) An application for a new motor vehicle dealer's
17    license shall be accompanied by the following license fees:
18            $1,000 for applicant's established place of
19        business, and $100 for each additional place of
20        business, if any, to which the application pertains;
21        but if the application is made after June 15 of any
22        year, the license fee shall be $500 for applicant's
23        established place of business plus $50 for each
24        additional place of business, if any, to which the
25        application pertains. License fees shall be returnable
26        only in the event that the application is denied by the

 

 

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1        Secretary of State. All moneys received by the
2        Secretary of State as license fees under paragraph
3        (7)(A) of subsection (b) of this Section prior to
4        applications for the 2004 licensing year shall be
5        deposited into the Motor Vehicle Review Board Fund and
6        shall be used to administer the Motor Vehicle Review
7        Board under the Motor Vehicle Franchise Act. Of the
8        money received by the Secretary of State as license
9        fees under paragraph (7)(A) of subsection (b) of this
10        Section for the 2004 licensing year and thereafter, 10%
11        shall be deposited into the Motor Vehicle Review Board
12        Fund and shall be used to administer the Motor Vehicle
13        Review Board under the Motor Vehicle Franchise Act and
14        90% shall be deposited into the General Revenue Fund.
15            (B) An application for a new vehicle dealer's
16        license, other than for a new motor vehicle dealer's
17        license, shall be accompanied by the following license
18        fees:
19            $1,000 for applicant's established place of
20        business, and $50 for each additional place of
21        business, if any, to which the application pertains;
22        but if the application is made after June 15 of any
23        year, the license fee shall be $500 for applicant's
24        established place of business plus $25 for each
25        additional place of business, if any, to which the
26        application pertains. License fees shall be returnable

 

 

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1        only in the event that the application is denied by the
2        Secretary of State. Of the money received by the
3        Secretary of State as license fees under this
4        subsection for the 2004 licensing year and thereafter,
5        95% shall be deposited into the General Revenue Fund.
6        8. A statement that the applicant's officers,
7    directors, shareholders having a 10% or greater ownership
8    interest therein, proprietor, a partner, member, officer,
9    director, trustee, manager or other principals in the
10    business have not committed in the past 3 years any one
11    violation as determined in any civil, criminal or
12    administrative proceedings of any one of the following
13    Acts:
14            (A) The Anti Theft Laws of the Illinois Vehicle
15        Code;
16            (B) The Certificate of Title Laws of the Illinois
17        Vehicle Code;
18            (C) The Offenses against Registration and
19        Certificates of Title Laws of the Illinois Vehicle
20        Code;
21            (D) The Dealers, Transporters, Wreckers and
22        Rebuilders Laws of the Illinois Vehicle Code;
23            (E) Section 21-2 of the Criminal Code of 1961,
24        Criminal Trespass to Vehicles; or
25            (F) The Retailers' Occupation Tax Act.
26        9. A statement that the applicant's officers,

 

 

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1    directors, shareholders having a 10% or greater ownership
2    interest therein, proprietor, partner, member, officer,
3    director, trustee, manager or other principals in the
4    business have not committed in any calendar year 3 or more
5    violations, as determined in any civil, criminal or
6    administrative proceedings, of any one or more of the
7    following Acts:
8            (A) The Consumer Finance Act;
9            (B) The Consumer Installment Loan Act;
10            (C) The Retail Installment Sales Act;
11            (D) The Motor Vehicle Retail Installment Sales
12        Act;
13            (E) The Interest Act;
14            (F) The Illinois Wage Assignment Act;
15            (G) Part 8 of Article XII of the Code of Civil
16        Procedure; or
17            (H) The Consumer Fraud Act.
18        10. A bond or certificate of deposit in the amount of
19    $20,000 for each location at which the applicant intends to
20    act as a new vehicle dealer. The bond shall be for the term
21    of the license, or its renewal, for which application is
22    made, and shall expire not sooner than December 31 of the
23    year for which the license was issued or renewed. The bond
24    shall run to the People of the State of Illinois, with
25    surety by a bonding or insurance company authorized to do
26    business in this State. It shall be conditioned upon the

 

 

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1    proper transmittal of all title and registration fees and
2    taxes (excluding taxes under the Retailers' Occupation Tax
3    Act) accepted by the applicant as a new vehicle dealer.
4        11. Such other information concerning the business of
5    the applicant as the Secretary of State may by rule or
6    regulation prescribe.
7        12. A statement that the applicant understands Chapter
8    One through Chapter Five of this Code.
9    (c) Any change which renders no longer accurate any
10information contained in any application for a new vehicle
11dealer's license shall be amended within 30 days after the
12occurrence of such change on such form as the Secretary of
13State may prescribe by rule or regulation, accompanied by an
14amendatory fee of $2.
15    (d) Anything in this Chapter 5 to the contrary
16notwithstanding no person shall be licensed as a new vehicle
17dealer unless:
18        1. He is authorized by contract in writing between
19    himself and the manufacturer or franchised distributor of
20    such make of vehicle to so sell the same in this State, and
21        2. Such person shall maintain an established place of
22    business as defined in this Act.
23    (e) The Secretary of State shall, within a reasonable time
24after receipt, examine an application submitted to him under
25this Section and unless he makes a determination that the
26application submitted to him does not conform with the

 

 

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1requirements of this Section or that grounds exist for a denial
2of the application, under Section 5-501 of this Chapter, grant
3the applicant an original new vehicle dealer's license in
4writing for his established place of business and a
5supplemental license in writing for each additional place of
6business in such form as he may prescribe by rule or regulation
7which shall include the following:
8        1. The name of the person licensed;
9        2. If a corporation, the name and address of its
10    officers or if a sole proprietorship, a partnership, an
11    unincorporated association or any similar form of business
12    organization, the name and address of the proprietor or of
13    each partner, member, officer, director, trustee or
14    manager;
15        3. In the case of an original license, the established
16    place of business of the licensee;
17        4. In the case of a supplemental license, the
18    established place of business of the licensee and the
19    additional place of business to which such supplemental
20    license pertains;
21        5. The make or makes of new vehicles which the licensee
22    is licensed to sell.
23    (f) The appropriate instrument evidencing the license or a
24certified copy thereof, provided by the Secretary of State,
25shall be kept posted conspicuously in the established place of
26business of the licensee and in each additional place of

 

 

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1business, if any, maintained by such licensee.
2    (g) Except as provided in subsection (h) hereof, all new
3vehicle dealer's licenses granted under this Section shall
4expire by operation of law on December 31 of the calendar year
5for which they are granted unless sooner revoked or cancelled
6under the provisions of Section 5-501 of this Chapter.
7    (h) A new vehicle dealer's license may be renewed upon
8application and payment of the fee required herein, and
9submission of proof of coverage under an approved bond under
10the "Retailers' Occupation Tax Act" or proof that applicant is
11not subject to such bonding requirements, as in the case of an
12original license, but in case an application for the renewal of
13an effective license is made during the month of December, the
14effective license shall remain in force until the application
15is granted or denied by the Secretary of State.
16    (i) All persons licensed as a new vehicle dealer are
17required to furnish each purchaser of a motor vehicle:
18        1. In the case of a new vehicle a manufacturer's
19    statement of origin and in the case of a used motor vehicle
20    a certificate of title, in either case properly assigned to
21    the purchaser;
22        2. A statement verified under oath that all identifying
23    numbers on the vehicle agree with those on the certificate
24    of title or manufacturer's statement of origin;
25        3. A bill of sale properly executed on behalf of such
26    person;

 

 

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1        4. A copy of the Uniform Invoice-transaction reporting
2    return referred to in Section 5-402 hereof;
3        5. In the case of a rebuilt vehicle, a copy of the
4    Disclosure of Rebuilt Vehicle Status; and
5        6. In the case of a vehicle for which the warranty has
6    been reinstated, a copy of the warranty.
7    (j) Except at the time of sale or repossession of the
8vehicle, no person licensed as a new vehicle dealer may issue
9any other person a newly created key to a vehicle unless the
10new vehicle dealer makes a copy of the driver's license or
11State identification card of the person requesting or obtaining
12the newly created key. The new vehicle dealer must retain the
13copy for 30 days.
14    A new vehicle dealer who violates this subsection (j) is
15guilty of a petty offense. Violation of this subsection (j) is
16not cause to suspend, revoke, cancel, or deny renewal of the
17new vehicle dealer's license.
18    This amendatory Act of 1983 shall be applicable to the 1984
19registration year and thereafter.
20(Source: P.A. 92-391, eff. 8-16-01; 92-835, eff. 6-1-03; 93-32,
21eff. 7-1-03.)