98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2773

 

Introduced 2/21/2013, by Rep. Donald L. Moffitt

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/5-101  from Ch. 95 1/2, par. 5-101
625 ILCS 5/5-102  from Ch. 95 1/2, par. 5-102

    Amends the Illinois Vehicle Code. Changes the fee schedule for new and used vehicle dealers that is charged for inclusion in the Dealer Recovery Trust Fund to a graduated payment schedule based on the number of cars sold in the previous year. Provides that the fees for renewal of license are (i) $150 for automobile dealers selling fewer than 200 automobiles per year, (ii) $300 for automobile dealers selling 200 or more automobiles but less than 300 automobiles per year, and (iii) $500 for automobile dealers selling 300 or more automobiles a year.


LRB098 08411 MLW 38517 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2773LRB098 08411 MLW 38517 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
5Sections 5-101 and 5-102 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 business of
9selling or dealing in, on consignment or otherwise, new
10vehicles 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            (i) $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 this
3        subparagraph (i) prior to applications for the 2004
4        licensing year shall be deposited into the Motor
5        Vehicle Review Board Fund and shall be used to
6        administer the Motor Vehicle Review Board under the
7        Motor Vehicle Franchise Act. Of the money received by
8        the Secretary of State as license fees under this
9        subparagraph (i) for the 2004 licensing year and
10        thereafter, 10% shall be deposited into the Motor
11        Vehicle Review Board Fund and shall be used to
12        administer the Motor Vehicle Review Board under the
13        Motor Vehicle Franchise Act and 90% shall be deposited
14        into the General Revenue Fund.
15            (ii) Except as provided in subsection (h) of
16        Section 5-102.7 of this Code, an Annual Dealer Recovery
17        Fund Fee. For applications for the initial issuance of
18        a dealer's license, the fee shall be in the amount of
19        $500 for the 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 fee shall be $250 for the applicant's
24        established place of business plus $25 for each
25        additional place of business, if any, to which the
26        application pertains. For a license renewal

 

 

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1        application, the fee shall be based on the amount of
2        automobiles sold in past year according to the
3        following formula:
4                (1) $150 for dealers selling fewer than 200
5            automobiles;
6                (2) $300 for dealers selling 200 or more
7            automobiles but less than 300 automobiles; and
8                (3) $500 for dealers selling 300 or more
9            automobiles.
10            License fees shall be returnable only in the event
11        that the application is denied by the Secretary of
12        State. Moneys received under this subparagraph (ii)
13        shall be deposited into the Dealer Recovery Trust Fund.
14        (B) An application for a new vehicle dealer's license,
15    other than for a new motor vehicle dealer's license, shall
16    be accompanied by the following license fees:
17            (i) $1,000 for applicant's established place of
18        business, and $50 for each additional place of
19        business, if any, to which the application pertains;
20        but if the application is made after June 15 of any
21        year, the license fee shall be $500 for applicant's
22        established place of business plus $25 for each
23        additional place of business, if any, to which the
24        application pertains. License fees shall be returnable
25        only in the event that the application is denied by the
26        Secretary of State. Of the money received by the

 

 

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1        Secretary of State as license fees under this
2        subparagraph (i) for the 2004 licensing year and
3        thereafter, 95% shall be deposited into the General
4        Revenue Fund.
5            (ii) Except as provided in subsection (h) of
6        Section 5-102.7 of this Code, an Annual Dealer Recovery
7        Fund Fee in the amount of $500 for the applicant's
8        established place of business, and $50 for each
9        additional place of business, if any, to which the
10        application pertains; but if the application is made
11        after June 15 of any year, the fee shall be $250 for
12        the applicant's established place of business plus $25
13        for each additional place of business, if any, to which
14        the application pertains. License fees shall be
15        returnable only in the event that the application is
16        denied by the Secretary of State. Moneys received under
17        this subparagraph (ii) shall be deposited into the
18        Dealer Recovery Trust Fund.
19        8. A statement that the applicant's officers,
20    directors, shareholders having a 10% or greater ownership
21    interest therein, proprietor, a partner, member, officer,
22    director, trustee, manager or other principals in the
23    business have not committed in the past 3 years any one
24    violation as determined in any civil, criminal or
25    administrative proceedings of any one of the following
26    Acts:

 

 

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1            (A) The Anti Theft Laws of the Illinois Vehicle
2        Code;
3            (B) The Certificate of Title Laws of the Illinois
4        Vehicle Code;
5            (C) The Offenses against Registration and
6        Certificates of Title Laws of the Illinois Vehicle
7        Code;
8            (D) The Dealers, Transporters, Wreckers and
9        Rebuilders Laws of the Illinois Vehicle Code;
10            (E) Section 21-2 of the Criminal Code of 1961 or
11        the Criminal Code of 2012, Criminal Trespass to
12        Vehicles; or
13            (F) The Retailers' Occupation Tax Act.
14        9. A statement that the applicant's officers,
15    directors, shareholders having a 10% or greater ownership
16    interest therein, proprietor, partner, member, officer,
17    director, trustee, manager or other principals in the
18    business have not committed in any calendar year 3 or more
19    violations, as determined in any civil, criminal or
20    administrative proceedings, of any one or more of the
21    following Acts:
22            (A) The Consumer Finance Act;
23            (B) The Consumer Installment Loan Act;
24            (C) The Retail Installment Sales Act;
25            (D) The Motor Vehicle Retail Installment Sales
26        Act;

 

 

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1            (E) The Interest Act;
2            (F) The Illinois Wage Assignment Act;
3            (G) Part 8 of Article XII of the Code of Civil
4        Procedure; or
5            (H) The Consumer Fraud Act.
6        10. A bond or certificate of deposit in the amount of
7    $20,000 for each location at which the applicant intends to
8    act as a new vehicle dealer. The bond shall be for the term
9    of the license, or its renewal, for which application is
10    made, and shall expire not sooner than December 31 of the
11    year for which the license was issued or renewed. The bond
12    shall run to the People of the State of Illinois, with
13    surety by a bonding or insurance company authorized to do
14    business in this State. It shall be conditioned upon the
15    proper transmittal of all title and registration fees and
16    taxes (excluding taxes under the Retailers' Occupation Tax
17    Act) accepted by the applicant as a new vehicle dealer.
18        11. Such other information concerning the business of
19    the applicant as the Secretary of State may by rule or
20    regulation prescribe.
21        12. A statement that the applicant understands Chapter
22    One through Chapter Five of this Code.
23    (c) Any change which renders no longer accurate any
24information contained in any application for a new vehicle
25dealer's license shall be amended within 30 days after the
26occurrence of such change on such form as the Secretary of

 

 

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1State may prescribe by rule or regulation, accompanied by an
2amendatory fee of $2.
3    (d) Anything in this Chapter 5 to the contrary
4notwithstanding no person shall be licensed as a new vehicle
5dealer unless:
6        1. He is authorized by contract in writing between
7    himself and the manufacturer or franchised distributor of
8    such make of vehicle to so sell the same in this State, and
9        2. Such person shall maintain an established place of
10    business as defined in this Act.
11    (e) The Secretary of State shall, within a reasonable time
12after receipt, examine an application submitted to him under
13this Section and unless he makes a determination that the
14application submitted to him does not conform with the
15requirements of this Section or that grounds exist for a denial
16of the application, under Section 5-501 of this Chapter, grant
17the applicant an original new vehicle dealer's license in
18writing for his established place of business and a
19supplemental license in writing for each additional place of
20business in such form as he may prescribe by rule or regulation
21which shall include the following:
22        1. The name of the person licensed;
23        2. If a corporation, the name and address of its
24    officers or if a sole proprietorship, a partnership, an
25    unincorporated association or any similar form of business
26    organization, the name and address of the proprietor or of

 

 

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1    each partner, member, officer, director, trustee or
2    manager;
3        3. In the case of an original license, the established
4    place of business of the licensee;
5        4. In the case of a supplemental license, the
6    established place of business of the licensee and the
7    additional place of business to which such supplemental
8    license pertains;
9        5. The make or makes of new vehicles which the licensee
10    is licensed to sell.
11    (f) The appropriate instrument evidencing the license or a
12certified copy thereof, provided by the Secretary of State,
13shall be kept posted conspicuously in the established place of
14business of the licensee and in each additional place of
15business, if any, maintained by such licensee.
16    (g) Except as provided in subsection (h) hereof, all new
17vehicle dealer's licenses granted under this Section shall
18expire by operation of law on December 31 of the calendar year
19for which they are granted unless sooner revoked or cancelled
20under the provisions of Section 5-501 of this Chapter.
21    (h) A new vehicle dealer's license may be renewed upon
22application and payment of the fee required herein, and
23submission of proof of coverage under an approved bond under
24the "Retailers' Occupation Tax Act" or proof that applicant is
25not subject to such bonding requirements, as in the case of an
26original license, but in case an application for the renewal of

 

 

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1an effective license is made during the month of December, the
2effective license shall remain in force until the application
3is granted or denied by the Secretary of State.
4    (i) All persons licensed as a new vehicle dealer are
5required to furnish each purchaser of a motor vehicle:
6        1. In the case of a new vehicle a manufacturer's
7    statement of origin and in the case of a used motor vehicle
8    a certificate of title, in either case properly assigned to
9    the purchaser;
10        2. A statement verified under oath that all identifying
11    numbers on the vehicle agree with those on the certificate
12    of title or manufacturer's statement of origin;
13        3. A bill of sale properly executed on behalf of such
14    person;
15        4. A copy of the Uniform Invoice-transaction reporting
16    return referred to in Section 5-402 hereof;
17        5. In the case of a rebuilt vehicle, a copy of the
18    Disclosure of Rebuilt Vehicle Status; and
19        6. In the case of a vehicle for which the warranty has
20    been reinstated, a copy of the warranty.
21    (j) Except at the time of sale or repossession of the
22vehicle, no person licensed as a new vehicle dealer may issue
23any other person a newly created key to a vehicle unless the
24new vehicle dealer makes a copy of the driver's license or
25State identification card of the person requesting or obtaining
26the newly created key. The new vehicle dealer must retain the

 

 

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1copy for 30 days.
2    A new vehicle dealer who violates this subsection (j) is
3guilty of a petty offense. Violation of this subsection (j) is
4not cause to suspend, revoke, cancel, or deny renewal of the
5new vehicle dealer's license.
6    This amendatory Act of 1983 shall be applicable to the 1984
7registration year and thereafter.
8(Source: P.A. 97-480, eff. 10-1-11; 97-1150, eff. 1-25-13.)
 
9    (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)
10    Sec. 5-102. Used vehicle dealers must be licensed.
11    (a) No person, other than a licensed new vehicle dealer,
12shall engage in the business of selling or dealing in, on
13consignment or otherwise, 5 or more used vehicles of any make
14during the year (except house trailers as authorized by
15paragraph (j) of this Section and rebuilt salvage vehicles sold
16by their rebuilders to persons licensed under this Chapter), or
17act as an intermediary, agent or broker for any licensed dealer
18or vehicle purchaser (other than as a salesperson) or represent
19or advertise that he is so engaged or intends to so engage in
20such business unless licensed to do so by the Secretary of
21State under the provisions of this Section.
22    (b) An application for a used vehicle dealer's license
23shall be filed with the Secretary of State, duly verified by
24oath, in such form as the Secretary of State may by rule or
25regulation prescribe and shall contain:

 

 

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1        1. The name and type of business organization
2    established and additional places of business, if any, in
3    this State.
4        2. If the applicant is a corporation, a list of its
5    officers, directors, and shareholders having a ten percent
6    or greater ownership interest in the corporation, setting
7    forth the residence address of each; if the applicant is a
8    sole proprietorship, a partnership, an unincorporated
9    association, a trust, or any similar form of business
10    organization, the names and residence address of the
11    proprietor or of each partner, member, officer, director,
12    trustee or manager.
13        3. A statement that the applicant has been approved for
14    registration under the Retailers' Occupation Tax Act by the
15    Department of Revenue. However, this requirement does not
16    apply to a dealer who is already licensed hereunder with
17    the Secretary of State, and who is merely applying for a
18    renewal of his license. As evidence of this fact, the
19    application shall be accompanied by a certification from
20    the Department of Revenue showing that the Department has
21    approved the applicant for registration under the
22    Retailers' Occupation Tax Act.
23        4. A statement that the applicant has complied with the
24    appropriate liability insurance requirement. A Certificate
25    of Insurance in a solvent company authorized to do business
26    in the State of Illinois shall be included with each

 

 

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1    application covering each location at which he proposes to
2    act as a used vehicle dealer. The policy must provide
3    liability coverage in the minimum amounts of $100,000 for
4    bodily injury to, or death of, any person, $300,000 for
5    bodily injury to, or death of, two or more persons in any
6    one accident, and $50,000 for damage to property. Such
7    policy shall expire not sooner than December 31 of the year
8    for which the license was issued or renewed. The expiration
9    of the insurance policy shall not terminate the liability
10    under the policy arising during the period for which the
11    policy was filed. Trailer and mobile home dealers are
12    exempt from this requirement.
13        If the permitted user has a liability insurance policy
14    that provides automobile liability insurance coverage of
15    at least $100,000 for bodily injury to or the death of any
16    person, $300,000 for bodily injury to or the death of any 2
17    or more persons in any one accident, and $50,000 for damage
18    to property, then the permitted user's insurer shall be the
19    primary insurer and the dealer's insurer shall be the
20    secondary insurer. If the permitted user does not have a
21    liability insurance policy that provides automobile
22    liability insurance coverage of at least $100,000 for
23    bodily injury to or the death of any person, $300,000 for
24    bodily injury to or the death of any 2 or more persons in
25    any one accident, and $50,000 for damage to property, or
26    does not have any insurance at all, then the dealer's

 

 

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1    insurer shall be the primary insurer and the permitted
2    user's insurer shall be the secondary insurer.
3        When a permitted user is "test driving" a used vehicle
4    dealer's automobile, the used vehicle dealer's insurance
5    shall be primary and the permitted user's insurance shall
6    be secondary.
7        As used in this paragraph 4, a "permitted user" is a
8    person who, with the permission of the used vehicle dealer
9    or an employee of the used vehicle dealer, drives a vehicle
10    owned and held for sale or lease by the used vehicle dealer
11    which the person is considering to purchase or lease, in
12    order to evaluate the performance, reliability, or
13    condition of the vehicle. The term "permitted user" also
14    includes a person who, with the permission of the used
15    vehicle dealer, drives a vehicle owned or held for sale or
16    lease by the used vehicle dealer for loaner purposes while
17    the user's vehicle is being repaired or evaluated.
18        As used in this paragraph 4, "test driving" occurs when
19    a permitted user who, with the permission of the used
20    vehicle dealer or an employee of the used vehicle dealer,
21    drives a vehicle owned and held for sale or lease by a used
22    vehicle dealer that the person is considering to purchase
23    or lease, in order to evaluate the performance,
24    reliability, or condition of the vehicle.
25        As used in this paragraph 4, "loaner purposes" means
26    when a person who, with the permission of the used vehicle

 

 

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1    dealer, drives a vehicle owned or held for sale or lease by
2    the used vehicle dealer while the user's vehicle is being
3    repaired or evaluated.
4        5. An application for a used vehicle dealer's license
5    shall be accompanied by the following license fees:
6            (A) $1,000 for applicant's established place of
7        business, and $50 for each additional place of
8        business, if any, to which the application pertains;
9        however, if the application is made after June 15 of
10        any year, the license fee shall be $500 for applicant's
11        established place of business plus $25 for each
12        additional place of business, if any, to which the
13        application pertains. License fees shall be returnable
14        only in the event that the application is denied by the
15        Secretary of State. Of the money received by the
16        Secretary of State as license fees under this
17        subparagraph (A) for the 2004 licensing year and
18        thereafter, 95% shall be deposited into the General
19        Revenue Fund.
20            (B) Except as provided in subsection (h) of Section
21        5-102.7 of this Code, an Annual Dealer Recovery Fund
22        Fee. For applications for the initial issuance of a
23        dealer's license, the fee shall be in the amount of
24        $500 for the applicant's established place of
25        business, and $50 for each additional place of
26        business, if any, to which the application pertains;

 

 

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1        but if the application is made after June 15 of any
2        year, the fee shall be $250 for the applicant's
3        established place of business plus $25 for each
4        additional place of business, if any, to which the
5        application pertains. For a license renewal
6        application, the fee shall be based on the amount of
7        automobiles sold in past year according to the
8        following formula:
9                (1) $150 for dealers selling fewer than 200
10            automobiles;
11                (2) $300 for dealers selling 200 or more
12            automobiles but less than 300 automobiles; and
13                (3) $500 for dealers selling 300 or more
14            automobiles.
15            License fees shall be returnable only in the event
16        that the application is denied by the Secretary of
17        State. Moneys received under this subparagraph (B)
18        shall be deposited into the Dealer Recovery Trust Fund.
19        6. A statement that the applicant's officers,
20    directors, shareholders having a 10% or greater ownership
21    interest therein, proprietor, partner, member, officer,
22    director, trustee, manager or other principals in the
23    business have not committed in the past 3 years any one
24    violation as determined in any civil, criminal or
25    administrative proceedings of any one of the following
26    Acts:

 

 

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1            (A) The Anti Theft Laws of the Illinois Vehicle
2        Code;
3            (B) The Certificate of Title Laws of the Illinois
4        Vehicle Code;
5            (C) The Offenses against Registration and
6        Certificates of Title Laws of the Illinois Vehicle
7        Code;
8            (D) The Dealers, Transporters, Wreckers and
9        Rebuilders Laws of the Illinois Vehicle Code;
10            (E) Section 21-2 of the Illinois Criminal Code of
11        1961 or the Criminal Code of 2012, Criminal Trespass to
12        Vehicles; or
13            (F) The Retailers' Occupation Tax Act.
14        7. A statement that the applicant's officers,
15    directors, shareholders having a 10% or greater ownership
16    interest therein, proprietor, partner, member, officer,
17    director, trustee, manager or other principals in the
18    business have not committed in any calendar year 3 or more
19    violations, as determined in any civil or criminal or
20    administrative proceedings, of any one or more of the
21    following Acts:
22            (A) The Consumer Finance Act;
23            (B) The Consumer Installment Loan Act;
24            (C) The Retail Installment Sales Act;
25            (D) The Motor Vehicle Retail Installment Sales
26        Act;

 

 

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1            (E) The Interest Act;
2            (F) The Illinois Wage Assignment Act;
3            (G) Part 8 of Article XII of the Code of Civil
4        Procedure; or
5            (H) The Consumer Fraud Act.
6        8. A bond or Certificate of Deposit in the amount of
7    $20,000 for each location at which the applicant intends to
8    act as a used vehicle dealer. The bond shall be for the
9    term of the license, or its renewal, for which application
10    is made, and shall expire not sooner than December 31 of
11    the year for which the license was issued or renewed. The
12    bond shall run to the People of the State of Illinois, with
13    surety by a bonding or insurance company authorized to do
14    business in this State. It shall be conditioned upon the
15    proper transmittal of all title and registration fees and
16    taxes (excluding taxes under the Retailers' Occupation Tax
17    Act) accepted by the applicant as a used vehicle dealer.
18        9. Such other information concerning the business of
19    the applicant as the Secretary of State may by rule or
20    regulation prescribe.
21        10. A statement that the applicant understands Chapter
22    1 through Chapter 5 of this Code.
23        11. A copy of the certification from the prelicensing
24    education program.
25    (c) Any change which renders no longer accurate any
26information contained in any application for a used vehicle

 

 

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1dealer's license shall be amended within 30 days after the
2occurrence of each change on such form as the Secretary of
3State may prescribe by rule or regulation, accompanied by an
4amendatory fee of $2.
5    (d) Anything in this Chapter to the contrary
6notwithstanding, no person shall be licensed as a used vehicle
7dealer unless such person maintains an established place of
8business as defined in this Chapter.
9    (e) The Secretary of State shall, within a reasonable time
10after receipt, examine an application submitted to him under
11this Section. Unless the Secretary makes a determination that
12the application submitted to him does not conform to this
13Section or that grounds exist for a denial of the application
14under Section 5-501 of this Chapter, he must grant the
15applicant an original used vehicle dealer's license in writing
16for his established place of business and a supplemental
17license in writing for each additional place of business in
18such form as he may prescribe by rule or regulation which shall
19include the following:
20        1. The name of the person licensed;
21        2. If a corporation, the name and address of its
22    officers or if a sole proprietorship, a partnership, an
23    unincorporated association or any similar form of business
24    organization, the name and address of the proprietor or of
25    each partner, member, officer, director, trustee or
26    manager;

 

 

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1        3. In case of an original license, the established
2    place of business of the licensee;
3        4. In the case of a supplemental license, the
4    established place of business of the licensee and the
5    additional place of business to which such supplemental
6    license pertains.
7    (f) The appropriate instrument evidencing the license or a
8certified copy thereof, provided by the Secretary of State
9shall be kept posted, conspicuously, in the established place
10of business of the licensee and in each additional place of
11business, if any, maintained by such licensee.
12    (g) Except as provided in subsection (h) of this Section,
13all used vehicle dealer's licenses granted under this Section
14expire by operation of law on December 31 of the calendar year
15for which they are granted unless sooner revoked or cancelled
16under Section 5-501 of this Chapter.
17    (h) A used vehicle dealer's license may be renewed upon
18application and payment of the fee required herein, and
19submission of proof of coverage by an approved bond under the
20"Retailers' Occupation Tax Act" or proof that applicant is not
21subject to such bonding requirements, as in the case of an
22original license, but in case an application for the renewal of
23an effective license is made during the month of December, the
24effective license shall remain in force until the application
25for renewal is granted or denied by the Secretary of State.
26    (i) All persons licensed as a used vehicle dealer are

 

 

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1required to furnish each purchaser of a motor vehicle:
2        1. A certificate of title properly assigned to the
3    purchaser;
4        2. A statement verified under oath that all identifying
5    numbers on the vehicle agree with those on the certificate
6    of title;
7        3. A bill of sale properly executed on behalf of such
8    person;
9        4. A copy of the Uniform Invoice-transaction reporting
10    return referred to in Section 5-402 of this Chapter;
11        5. In the case of a rebuilt vehicle, a copy of the
12    Disclosure of Rebuilt Vehicle Status; and
13        6. In the case of a vehicle for which the warranty has
14    been reinstated, a copy of the warranty.
15    (j) A real estate broker holding a valid certificate of
16registration issued pursuant to "The Real Estate Brokers and
17Salesmen License Act" may engage in the business of selling or
18dealing in house trailers not his own without being licensed as
19a used vehicle dealer under this Section; however such broker
20shall maintain a record of the transaction including the
21following:
22        (1) the name and address of the buyer and seller,
23        (2) the date of sale,
24        (3) a description of the mobile home, including the
25    vehicle identification number, make, model, and year, and
26        (4) the Illinois certificate of title number.

 

 

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1    The foregoing records shall be available for inspection by
2any officer of the Secretary of State's Office at any
3reasonable hour.
4    (k) Except at the time of sale or repossession of the
5vehicle, no person licensed as a used vehicle dealer may issue
6any other person a newly created key to a vehicle unless the
7used vehicle dealer makes a copy of the driver's license or
8State identification card of the person requesting or obtaining
9the newly created key. The used vehicle dealer must retain the
10copy for 30 days.
11    A used vehicle dealer who violates this subsection (k) is
12guilty of a petty offense. Violation of this subsection (k) is
13not cause to suspend, revoke, cancel, or deny renewal of the
14used vehicle dealer's license.
15    (l) Used vehicle dealers licensed under this Section shall
16provide the Secretary of State a register for the sale at
17auction of each salvage or junk certificate vehicle. Each
18register shall include the following information:
19        1. The year, make, model, style and color of the
20    vehicle;
21        2. The vehicle's manufacturer's identification number
22    or, if applicable, the Secretary of State or Illinois
23    Department of State Police identification number;
24        3. The date of acquisition of the vehicle;
25        4. The name and address of the person from whom the
26    vehicle was acquired;

 

 

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1        5. The name and address of the person to whom any
2    vehicle was disposed, the person's Illinois license number
3    or if the person is an out-of-state salvage vehicle buyer,
4    the license number from the state or jurisdiction where the
5    buyer is licensed; and
6        6. The purchase price of the vehicle.
7    The register shall be submitted to the Secretary of State
8via written or electronic means within 10 calendar days from
9the date of the auction.
10(Source: P.A. 96-678, eff. 8-25-09; 97-480, eff. 10-1-11;
1197-1150, eff. 1-25-13.)