99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB1345

 

Introduced 2/4/2015, by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/3-904  from Ch. 95 1/2, par. 3-904
625 ILCS 5/3-904.5 new
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. Requires a minimum of 8 hours of prelicensing education by an owner, principal, corporate officer, director, or member or partner of a limited liability company or limited liability partnership of the applicant for a remittance agent license. Provides that the education program course curricula and instruction must be approved by the Secretary of State. Provides that each person who successfully completes an approved prelicensing education program shall be issued a certificate. Requires that a copy of the certificate be submitted with the remittance agent license application. Adds convictions for criminal forcible felonies to the list of disqualifying violations for new and used vehicle dealer licensing. Effective January 1, 2016.


LRB099 07217 RJF 27314 b

 

 

A BILL FOR

 

HB1345LRB099 07217 RJF 27314 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 3-904, 5-101, and 5-102 and by adding Section 3-904.5
6as follows:
 
7    (625 ILCS 5/3-904)  (from Ch. 95 1/2, par. 3-904)
8    Sec. 3-904. Application; contents; affidavits; prelicense
9education certification - Contents - Affidavits.
10    (a) Any person who desires to act as a "remittance agent"
11shall first file with the Secretary of State a written
12application for a license. The application shall be under oath
13and shall contain the following:
14        1. The name and address of the applicant.
15        2. The address of each location at which the applicant
16    intends to act as a remittance agent.
17        3. The applicant's business, occupation or profession.
18        4. A statement disclosing whether he has been involved
19    in any civil or criminal litigation and if so, the material
20    facts pertaining thereto.
21        5. A statement that the applicant has not committed in
22    the past 3 years any violation as determined in any civil,
23    criminal, or administrative proceedings under the

 

 

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1    Retailers' Occupation Tax Act or under Article I or VII of
2    Chapter 3 of this Code.
3        6. Any other information concerning the business of the
4    applicant that the Secretary of State may prescribe.
5    (b) The application under subsection (a) shall be
6accompanied by the affidavits of two persons residing in the
7city or town of such applicant's residence. Such affiants shall
8state that they have known the applicant for a period of at
9least two years; that the applicant is of good moral character
10and that his reputation for honesty and business integrity in
11the community in which he resides is good. If the applicant is
12not an individual, the requirements of this paragraph shall
13apply to each of its officers or members.
14    (c) The application under subsection (a) shall be
15accompanied by a copy of the certification from the
16prelicensing education program as required by Section 3-904.5
17of this Code.
18(Source: P.A. 97-832, eff. 7-20-12.)
 
19    (625 ILCS 5/3-904.5 new)
20    Sec. 3-904.5. Remittance agent prelicensing education
21program courses.
22    (a) An applicant for a license as a remittance agent shall
23complete a minimum of 8 hours of prelicensing education program
24courses under this Section prior to submitting an application
25to the Secretary of State.

 

 

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1    (b) To meet the requirements of this Section, at least one
2person who is associated with the remittance agent as an owner,
3principal, corporate officer, director, or member or partner of
4a limited liability company or limited liability partnership
5shall complete the education program courses.
6    (c) The prelicensing education program courses shall be
7provided by public or private entities with an expertise in the
8area as approved by the Secretary of State. The Secretary of
9State must approve course curricula and instruction, in
10consultation with the Department of Transportation and any
11private entity with expertise in the area in the Secretary's
12discretion.
13    (d) Each person who successfully completes an approved
14prelicensing education program under this Section shall be
15issued a certificate by the education program provider. The
16current certificate of completion, or a copy of the current
17certificate, shall be posted conspicuously in the principal
18office of the licensee.
19    (e) The provisions of this Section apply to all remittance
20agents including, but not limited to, persons, corporations,
21and partnerships, except for the following:
22        (1) motor vehicle rental companies having a national
23    franchise;
24        (2) national motor vehicle auction companies;
25        (3) wholesale dealer-only auction companies;
26        (4) used vehicle dealerships owned by a franchise motor

 

 

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1    vehicle dealer; and
2        (5) banks, credit unions, and savings and loan
3    associations.
 
4    (625 ILCS 5/5-101)  (from Ch. 95 1/2, par. 5-101)
5    Sec. 5-101. New vehicle dealers must be licensed.
6    (a) No person shall engage in this State in the business of
7selling or dealing in, on consignment or otherwise, new
8vehicles of any make, or act as an intermediary or agent or
9broker for any licensed dealer or vehicle purchaser other than
10as a salesperson, or represent or advertise that he is so
11engaged or intends to so engage in such business unless
12licensed to do so in writing by the Secretary of State under
13the provisions of this Section.
14    (b) An application for a new vehicle dealer's license shall
15be filed with the Secretary of State, duly verified by oath, on
16such form as the Secretary of State may by rule or regulation
17prescribe and shall contain:
18        1. The name and type of business organization of the
19    applicant and his established and additional places of
20    business, if any, in this State.
21        2. If the applicant is a corporation, a list of its
22    officers, directors, and shareholders having a ten percent
23    or greater ownership interest in the corporation, setting
24    forth the residence address of each; if the applicant is a
25    sole proprietorship, a partnership, an unincorporated

 

 

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1    association, a trust, or any similar form of business
2    organization, the name and residence address of the
3    proprietor or of each partner, member, officer, director,
4    trustee, or manager.
5        3. The make or makes of new vehicles which the
6    applicant will offer for sale at retail in this State.
7        4. The name of each manufacturer or franchised
8    distributor, if any, of new vehicles with whom the
9    applicant has contracted for the sale of such new vehicles.
10    As evidence of this fact, the application shall be
11    accompanied by a signed statement from each such
12    manufacturer or franchised distributor. If the applicant
13    is in the business of offering for sale new conversion
14    vehicles, trucks or vans, except for trucks modified to
15    serve a special purpose which includes but is not limited
16    to the following vehicles: street sweepers, fertilizer
17    spreaders, emergency vehicles, implements of husbandry or
18    maintenance type vehicles, he must furnish evidence of a
19    sales and service agreement from both the chassis
20    manufacturer and second stage manufacturer.
21        5. A statement that the applicant has been approved for
22    registration under the Retailers' Occupation Tax Act by the
23    Department of Revenue: Provided that this requirement does
24    not apply to a dealer who is already licensed hereunder
25    with the Secretary of State, and who is merely applying for
26    a renewal of his license. As evidence of this fact, the

 

 

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

 

 

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

 

 

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1    a permitted user who, with the permission of the new
2    vehicle dealer or an employee of the new vehicle dealer,
3    drives a vehicle owned and held for sale or lease by a new
4    vehicle dealer that the person is considering to purchase
5    or lease, in order to evaluate the performance,
6    reliability, or condition of the vehicle.
7        As used in this paragraph 6, "loaner purposes" means
8    when a person who, with the permission of the new vehicle
9    dealer, drives a vehicle owned or held for sale or lease by
10    the new vehicle dealer while the user's vehicle is being
11    repaired or evaluated.
12        7. (A) An application for a new motor vehicle dealer's
13    license shall be accompanied by the following license fees:
14            (i) $1,000 for applicant's established place of
15        business, and $100 for each additional place of
16        business, if any, to which the application pertains;
17        but if the application is made after June 15 of any
18        year, the license fee shall be $500 for applicant's
19        established place of business plus $50 for each
20        additional place of business, if any, to which the
21        application pertains. License fees shall be returnable
22        only in the event that the application is denied by the
23        Secretary of State. All moneys received by the
24        Secretary of State as license fees under this
25        subparagraph (i) prior to applications for the 2004
26        licensing year shall be deposited into the Motor

 

 

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1        Vehicle Review Board Fund and shall be used to
2        administer the Motor Vehicle Review Board under the
3        Motor Vehicle Franchise Act. Of the money received by
4        the Secretary of State as license fees under this
5        subparagraph (i) for the 2004 licensing year and
6        thereafter, 10% shall be deposited into the Motor
7        Vehicle Review Board Fund and shall be used to
8        administer the Motor Vehicle Review Board under the
9        Motor Vehicle Franchise Act and 90% shall be deposited
10        into the General Revenue Fund.
11            (ii) Except for dealers selling 25 or fewer
12        automobiles or as provided in subsection (h) of Section
13        5-102.7 of this Code, an Annual Dealer Recovery Fund
14        Fee in the amount of $500 for the applicant's
15        established place of business, and $50 for each
16        additional place of business, if any, to which the
17        application pertains; but if the application is made
18        after June 15 of any year, the fee shall be $250 for
19        the applicant's established place of business plus $25
20        for each additional place of business, if any, to which
21        the application pertains. For a license renewal
22        application, the fee shall be based on the amount of
23        automobiles sold in the past year according to the
24        following formula:
25                (1) $0 for dealers selling 25 or less
26            automobiles;

 

 

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1                (2) $150 for dealers selling more than 25 but
2            less than 200 automobiles;
3                (3) $300 for dealers selling 200 or more
4            automobiles but less than 300 automobiles; and
5                (4) $500 for dealers selling 300 or more
6            automobiles.
7            License fees shall be returnable only in the event
8        that the application is denied by the Secretary of
9        State. Moneys received under this subparagraph (ii)
10        shall be deposited into the Dealer Recovery Trust Fund.
11        (B) An application for a new vehicle dealer's license,
12    other than for a new motor vehicle dealer's license, shall
13    be accompanied by the following license fees:
14            (i) $1,000 for applicant's established place of
15        business, and $50 for each additional place of
16        business, if any, to which the application pertains;
17        but if the application is made after June 15 of any
18        year, the license fee shall be $500 for applicant's
19        established place of business plus $25 for each
20        additional place of business, if any, to which the
21        application pertains. License fees shall be returnable
22        only in the event that the application is denied by the
23        Secretary of State. Of the money received by the
24        Secretary of State as license fees under this
25        subparagraph (i) for the 2004 licensing year and
26        thereafter, 95% shall be deposited into the General

 

 

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

 

 

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

 

 

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1        Procedure; or
2            (H) The Consumer Fraud Act.
3        9.5. A statement that, within 10 years of application,
4    the applicant's officers, directors, shareholders having a
5    10% or greater ownership interest therein, proprietor,
6    partner, member, officer, director, trustee, manager or
7    other principals in the business have not been convicted in
8    any calendar year of one or more violations, as determined
9    in any civil, criminal or administrative proceedings, of a
10    forcible felony under the Criminal Code of 1961 or the
11    Criminal Code of 2012 or a similar out-of-state offense.
12    For the purposes this paragraph, "forcible felony" has the
13    meaning as defined in Section 2-8 of the Criminal Code of
14    2012.
15        10. A bond or certificate of deposit in the amount of
16    $20,000 for each location at which the applicant intends to
17    act as a new vehicle dealer. The bond shall be for the term
18    of the license, or its renewal, for which application is
19    made, and shall expire not sooner than December 31 of the
20    year for which the license was issued or renewed. The bond
21    shall run to the People of the State of Illinois, with
22    surety by a bonding or insurance company authorized to do
23    business in this State. It shall be conditioned upon the
24    proper transmittal of all title and registration fees and
25    taxes (excluding taxes under the Retailers' Occupation Tax
26    Act) accepted by the applicant as a new vehicle dealer.

 

 

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1        11. Such other information concerning the business of
2    the applicant as the Secretary of State may by rule or
3    regulation prescribe.
4        12. A statement that the applicant understands Chapter
5    1 One through Chapter 5 Five of this Code.
6    (c) Any change which renders no longer accurate any
7information contained in any application for a new vehicle
8dealer's license shall be amended within 30 days after the
9occurrence of such change on such form as the Secretary of
10State may prescribe by rule or regulation, accompanied by an
11amendatory fee of $2.
12    (d) Anything in this Chapter 5 to the contrary
13notwithstanding no person shall be licensed as a new vehicle
14dealer unless:
15        1. He is authorized by contract in writing between
16    himself and the manufacturer or franchised distributor of
17    such make of vehicle to so sell the same in this State, and
18        2. Such person shall maintain an established place of
19    business as defined in this Act.
20    (e) The Secretary of State shall, within a reasonable time
21after receipt, examine an application submitted to him under
22this Section and unless he makes a determination that the
23application submitted to him does not conform with the
24requirements of this Section or that grounds exist for a denial
25of the application, under Section 5-501 of this Chapter, grant
26the applicant an original new vehicle dealer's license in

 

 

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

 

 

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1expire by operation of law on December 31 of the calendar year
2for which they are granted unless sooner revoked or cancelled
3under the provisions of Section 5-501 of this Chapter.
4    (h) A new vehicle dealer's license may be renewed upon
5application and payment of the fee required herein, and
6submission of proof of coverage under an approved bond under
7the "Retailers' Occupation Tax Act" or proof that applicant is
8not subject to such bonding requirements, as in the case of an
9original license, but in case an application for the renewal of
10an effective license is made during the month of December, the
11effective license shall remain in force until the application
12is granted or denied by the Secretary of State.
13    (i) All persons licensed as a new vehicle dealer are
14required to furnish each purchaser of a motor vehicle:
15        1. In the case of a new vehicle a manufacturer's
16    statement of origin and in the case of a used motor vehicle
17    a certificate of title, in either case properly assigned to
18    the purchaser;
19        2. A statement verified under oath that all identifying
20    numbers on the vehicle agree with those on the certificate
21    of title or manufacturer's statement of origin;
22        3. A bill of sale properly executed on behalf of such
23    person;
24        4. A copy of the Uniform Invoice-transaction reporting
25    return referred to in Section 5-402 hereof;
26        5. In the case of a rebuilt vehicle, a copy of the

 

 

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1    Disclosure of Rebuilt Vehicle Status; and
2        6. In the case of a vehicle for which the warranty has
3    been reinstated, a copy of the warranty.
4    (j) Except at the time of sale or repossession of the
5vehicle, no person licensed as a new vehicle dealer may issue
6any other person a newly created key to a vehicle unless the
7new 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 new vehicle dealer must retain the
10copy for 30 days.
11    A new vehicle dealer who violates this subsection (j) is
12guilty of a petty offense. Violation of this subsection (j) is
13not cause to suspend, revoke, cancel, or deny renewal of the
14new vehicle dealer's license.
15    This amendatory Act of 1983 shall be applicable to the 1984
16registration year and thereafter.
17(Source: P.A. 97-480, eff. 10-1-11; 97-1150, eff. 1-25-13;
1898-450, eff. 1-1-14; revised 12-10-14.)
 
19    (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)
20    Sec. 5-102. Used vehicle dealers must be licensed.
21    (a) No person, other than a licensed new vehicle dealer,
22shall engage in the business of selling or dealing in, on
23consignment or otherwise, 5 or more used vehicles of any make
24during the year (except house trailers as authorized by
25paragraph (j) of this Section and rebuilt salvage vehicles sold

 

 

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1by their rebuilders to persons licensed under this Chapter), or
2act as an intermediary, agent or broker for any licensed dealer
3or vehicle purchaser (other than as a salesperson) or represent
4or advertise that he is so engaged or intends to so engage in
5such business unless licensed to do so by the Secretary of
6State under the provisions of this Section.
7    (b) An application for a used vehicle dealer's license
8shall be filed with the Secretary of State, duly verified by
9oath, in such form as the Secretary of State may by rule or
10regulation prescribe and shall contain:
11        1. The name and type of business organization
12    established and additional places of business, if any, in
13    this State.
14        2. If the applicant is a corporation, a list of its
15    officers, directors, and shareholders having a ten percent
16    or greater ownership interest in the corporation, setting
17    forth the residence address of each; if the applicant is a
18    sole proprietorship, a partnership, an unincorporated
19    association, a trust, or any similar form of business
20    organization, the names and residence address of the
21    proprietor or of each partner, member, officer, director,
22    trustee or manager.
23        3. A statement that the applicant has been approved for
24    registration under the Retailers' Occupation Tax Act by the
25    Department of Revenue. However, this requirement does not
26    apply to a dealer who is already licensed hereunder with

 

 

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

 

 

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

 

 

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

 

 

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1        subparagraph (A) for the 2004 licensing year and
2        thereafter, 95% shall be deposited into the General
3        Revenue Fund.
4            (B) Except for dealers selling 25 or fewer
5        automobiles or as provided in subsection (h) of Section
6        5-102.7 of this Code, an Annual Dealer Recovery Fund
7        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. For a license renewal
15        application, the fee shall be based on the amount of
16        automobiles sold in the past year according to the
17        following formula:
18                (1) $0 for dealers selling 25 or less
19            automobiles;
20                (2) $150 for dealers selling more than 25 but
21            less than 200 automobiles;
22                (3) $300 for dealers selling 200 or more
23            automobiles but less than 300 automobiles; and
24                (4) $500 for dealers selling 300 or more
25            automobiles.
26            License fees shall be returnable only in the event

 

 

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1        that the application is denied by the Secretary of
2        State. Moneys received under this subparagraph (B)
3        shall be deposited into the Dealer Recovery Trust Fund.
4        6. A statement that the applicant's officers,
5    directors, shareholders having a 10% or greater ownership
6    interest therein, proprietor, partner, member, officer,
7    director, trustee, manager or other principals in the
8    business have not committed in the past 3 years any one
9    violation as determined in any civil, criminal or
10    administrative proceedings of any one of the following
11    Acts:
12            (A) The Anti-Theft Anti Theft Laws of the Illinois
13        Vehicle Code;
14            (B) The Certificate of Title Laws of the Illinois
15        Vehicle Code;
16            (C) The Offenses against Registration and
17        Certificates of Title Laws of the Illinois Vehicle
18        Code;
19            (D) The Dealers, Transporters, Wreckers and
20        Rebuilders Laws of the Illinois Vehicle Code;
21            (E) Section 21-2 of the Illinois Criminal Code of
22        1961 or the Criminal Code of 2012, Criminal Trespass to
23        Vehicles; or
24            (F) The Retailers' Occupation Tax Act.
25        7. A statement that the applicant's officers,
26    directors, shareholders having a 10% or greater ownership

 

 

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1    interest therein, proprietor, partner, member, officer,
2    director, trustee, manager or other principals in the
3    business have not committed in any calendar year 3 or more
4    violations, as determined in any civil or criminal or
5    administrative proceedings, of any one or more of the
6    following Acts:
7            (A) The Consumer Finance Act;
8            (B) The Consumer Installment Loan Act;
9            (C) The Retail Installment Sales Act;
10            (D) The Motor Vehicle Retail Installment Sales
11        Act;
12            (E) The Interest Act;
13            (F) The Illinois Wage Assignment Act;
14            (G) Part 8 of Article XII of the Code of Civil
15        Procedure; or
16            (H) The Consumer Fraud Act.
17        7.5. A statement that, within 10 years of application,
18    the applicant's officers, directors, shareholders having a
19    10% or greater ownership interest therein, proprietor,
20    partner, member, officer, director, trustee, manager or
21    other principals in the business have not been convicted in
22    any calendar year of one or more violations of a forcible
23    felony under the Criminal Code of 1961 or the Criminal Code
24    of 2012 or a similar out-of-state offense. For the purposes
25    of this paragraph, "forcible felony" has the meaning as
26    defined in Section 2-8 of the Criminal Code of 2012.

 

 

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1        8. A bond or Certificate of Deposit in the amount of
2    $20,000 for each location at which the applicant intends to
3    act as a used vehicle dealer. The bond shall be for the
4    term of the license, or its renewal, for which application
5    is made, and shall expire not sooner than December 31 of
6    the year for which the license was issued or renewed. The
7    bond shall run to the People of the State of Illinois, with
8    surety by a bonding or insurance company authorized to do
9    business in this State. It shall be conditioned upon the
10    proper transmittal of all title and registration fees and
11    taxes (excluding taxes under the Retailers' Occupation Tax
12    Act) accepted by the applicant as a used vehicle dealer.
13        9. Such other information concerning the business of
14    the applicant as the Secretary of State may by rule or
15    regulation prescribe.
16        10. A statement that the applicant understands Chapter
17    1 through Chapter 5 of this Code.
18        11. A copy of the certification from the prelicensing
19    education program.
20    (c) Any change which renders no longer accurate any
21information contained in any application for a used vehicle
22dealer's license shall be amended within 30 days after the
23occurrence of each change on such form as the Secretary of
24State may prescribe by rule or regulation, accompanied by an
25amendatory fee of $2.
26    (d) Anything in this Chapter to the contrary

 

 

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

 

 

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

 

 

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1    of title;
2        3. A bill of sale properly executed on behalf of such
3    person;
4        4. A copy of the Uniform Invoice-transaction reporting
5    return referred to in Section 5-402 of this Chapter;
6        5. In the case of a rebuilt vehicle, a copy of the
7    Disclosure of Rebuilt Vehicle Status; and
8        6. In the case of a vehicle for which the warranty has
9    been reinstated, a copy of the warranty.
10    (j) A real estate broker holding a valid certificate of
11registration issued pursuant to "The Real Estate Brokers and
12Salesmen License Act" may engage in the business of selling or
13dealing in house trailers not his own without being licensed as
14a used vehicle dealer under this Section; however such broker
15shall maintain a record of the transaction including the
16following:
17        (1) the name and address of the buyer and seller,
18        (2) the date of sale,
19        (3) a description of the mobile home, including the
20    vehicle identification number, make, model, and year, and
21        (4) the Illinois certificate of title number.
22    The foregoing records shall be available for inspection by
23any officer of the Secretary of State's Office at any
24reasonable hour.
25    (k) Except at the time of sale or repossession of the
26vehicle, no person licensed as a used vehicle dealer may issue

 

 

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1any other person a newly created key to a vehicle unless the
2used vehicle dealer makes a copy of the driver's license or
3State identification card of the person requesting or obtaining
4the newly created key. The used vehicle dealer must retain the
5copy for 30 days.
6    A used vehicle dealer who violates this subsection (k) is
7guilty of a petty offense. Violation of this subsection (k) is
8not cause to suspend, revoke, cancel, or deny renewal of the
9used vehicle dealer's license.
10    (l) Used vehicle dealers licensed under this Section shall
11provide the Secretary of State a register for the sale at
12auction of each salvage or junk certificate vehicle. Each
13register shall include the following information:
14        1. The year, make, model, style and color of the
15    vehicle;
16        2. The vehicle's manufacturer's identification number
17    or, if applicable, the Secretary of State or Illinois
18    Department of State Police identification number;
19        3. The date of acquisition of the vehicle;
20        4. The name and address of the person from whom the
21    vehicle was acquired;
22        5. The name and address of the person to whom any
23    vehicle was disposed, the person's Illinois license number
24    or if the person is an out-of-state salvage vehicle buyer,
25    the license number from the state or jurisdiction where the
26    buyer is licensed; and

 

 

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1        6. The purchase price of the vehicle.
2    The register shall be submitted to the Secretary of State
3via written or electronic means within 10 calendar days from
4the date of the auction.
5(Source: P.A. 97-480, eff. 10-1-11; 97-1150, eff. 1-25-13;
698-450, eff. 1-1-14; revised 12-10-14.)
 
7    Section 99. Effective date. This Act takes effect January
81, 2016.