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| [ Engrossed ] | [ Enrolled ] | [ Senate Amendment 001 ] |
90_SB1293
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 to provide that the
provisions of the Vehicle Code concerning licensing new and
used vehicle dealers do not apply to the sale or resale of
manufactured housing (and mobile homes in the case of a used
vehicle dealer), except that a manufactured housing dealer
(and mobile home dealer in the case of a used vehicle dealer)
shall maintain a record of the transaction, available for
inspection by the Secretary of State. Effective immediately.
LRB9009235NTsb
LRB9009235NTsb
1 AN ACT to amend the Illinois Vehicle Code by changing
2 Sections 5-101 and 5-102.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Vehicle Code is amended by
6 changing Sections 5-101 and 5-102 as follows:
7 (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
8 Sec. 5-101. New vehicle dealers must be licensed.
9 (a) No person shall engage in this State in the business
10 of selling or dealing in, on consignment or otherwise, new
11 vehicles of any make, or act as an intermediary or agent or
12 broker for any licensed dealer or vehicle purchaser other
13 than as a salesperson, or represent or advertise that he is
14 so engaged or intends to so engage in such business unless
15 licensed to do so in writing by the Secretary of State under
16 the provisions of this Section. However, a person engaged in
17 the business of selling or reselling manufactured housing, as
18 defined in the Illinois Manufactured Housing and Mobile Home
19 Safety Act, is not required to be licensed as a new vehicle
20 dealer under this Section, but the person shall maintain a
21 record of the transaction, including the following:
22 (1) the name and address of the buyer and seller;
23 (2) the date of sale;
24 (3) a description of the manufactured housing unit,
25 including the vehicle identification number, make, model,
26 and year; and
27 (4) the manufacturer's certificate of origin
28 number.
29 The records shall be available for inspection by an officer
30 of the Office of the Secretary of State at any reasonable
31 hour.
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1 (b) An application for a new vehicle dealer's license
2 shall be filed with the Secretary of State, duly verified by
3 oath, on such form as the Secretary of State may by rule or
4 regulation prescribe and shall contain:
5 1. The name and type of business organization of
6 the applicant and his established and additional places
7 of business, if any, in this State.
8 2. If the applicant is a corporation, a list of its
9 officers, directors, and shareholders having a ten
10 percent or greater ownership interest in the corporation,
11 setting forth the residence address of each; if the
12 applicant is a sole proprietorship, a partnership, an
13 unincorporated association, a trust, or any similar form
14 of business organization, the name and residence address
15 of the proprietor or of each partner, member, officer,
16 director, trustee, or manager.
17 3. The make or makes of new vehicles which the
18 applicant will offer for sale at retail in this State.
19 4. The name of each manufacturer or franchised
20 distributor, if any, of new vehicles with whom the
21 applicant has contracted for the sale of such new
22 vehicles. As evidence of this fact, the application shall
23 be accompanied by a signed statement from each such
24 manufacturer or franchised distributor. If the applicant
25 is in the business of offering for sale new conversion
26 vehicles, trucks or vans, except for trucks modified to
27 serve a special purpose which includes but is not limited
28 to the following vehicles: street sweepers, fertilizer
29 spreaders, emergency vehicles, implements of husbandry or
30 maintenance type vehicles, he must furnish evidence of a
31 sales and service agreement from both the chassis
32 manufacturer and second stage manufacturer.
33 5. A statement that the applicant has been approved
34 for registration under the Retailers' Occupation Tax Act
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1 by the Department of Revenue: Provided that this
2 requirement does not apply to a dealer who is already
3 licensed hereunder with the Secretary of State, and who
4 is merely applying for a renewal of his license. As
5 evidence of this fact, the application shall be
6 accompanied by a certification from the Department of
7 Revenue showing that that Department has approved the
8 applicant for registration under the Retailers'
9 Occupation Tax Act.
10 6. A statement that the applicant has complied with
11 the appropriate liability insurance requirement. A
12 Certificate of Insurance in a solvent company authorized
13 to do business in the State of Illinois shall be included
14 with each application covering each location at which he
15 proposes to act as a new vehicle dealer. The policy must
16 provide liability coverage in the minimum amounts of
17 $100,000 for bodily injury to, or death of, any person,
18 $300,000 for bodily injury to, or death of, two or more
19 persons in any one accident, and $50,000 for damage to
20 property. Such policy shall expire not sooner than
21 December 31 of the year for which the license was issued
22 or renewed. The expiration of the insurance policy shall
23 not terminate the liability under the policy arising
24 during the period for which the policy was filed.
25 Trailer and mobile home dealers are exempt from this
26 requirement.
27 7. (A) An application for a new motor vehicle
28 dealer's license shall be accompanied by the
29 following license fees:
30 $100 for applicant's established place of
31 business, and $50 for each additional place of
32 business, if any, to which the application pertains;
33 but if the application is made after June 15 of any
34 year, the license fee shall be $50 for applicant's
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1 established place of business plus $25 for each
2 additional place of business, if any, to which the
3 application pertains. License fees shall be
4 returnable only in the event that the application is
5 denied by the Secretary of State. All moneys
6 received by the Secretary of State as license fees
7 under this Section shall be deposited into the Motor
8 Vehicle Review Board Fund and shall be used to
9 administer the Motor Vehicle Review Board under the
10 Motor Vehicle Franchise Act.
11 (B) An application for a new vehicle dealer's
12 license, other than for a new motor vehicle dealer's
13 license, shall be accompanied by the following
14 license fees:
15 $50 for applicant's established place of
16 business, and $25 for each additional place of
17 business, if any, to which the application pertains;
18 but if the application is made after June 15 of any
19 year, the license fee shall be $25 for applicant's
20 established place of business plus $12.50 for each
21 additional place of business, if any, to which the
22 application pertains. License fees shall be
23 returnable only in the event that the application is
24 denied by the Secretary of State.
25 8. A statement that the applicant's officers,
26 directors, shareholders having a 10% or greater ownership
27 interest therein, proprietor, a partner, member, officer,
28 director, trustee, manager or other principals in the
29 business have not committed in the past 3 years any one
30 violation as determined in any civil, criminal or
31 administrative proceedings of any one of the following
32 Acts:
33 (A) The Anti Theft Laws of the Illinois
34 Vehicle Code;
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1 (B) The Certificate of Title Laws of the
2 Illinois Vehicle Code;
3 (C) The Offenses against Registration and
4 Certificates of Title Laws of the Illinois Vehicle
5 Code;
6 (D) The Dealers, Transporters, Wreckers and
7 Rebuilders Laws of the Illinois Vehicle Code;
8 (E) Section 21-2 of the Criminal Code of 1961,
9 Criminal Trespass to 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
16 more 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
27 Procedure; or
28 (H) The Consumer Fraud Act.
29 10. A bond or certificate of deposit in the amount
30 of $20,000 for each location at which the applicant
31 intends to act as a new vehicle dealer. The bond shall
32 be for the term of the license, or its renewal, for which
33 application is made, and shall expire not sooner than
34 December 31 of the year for which the license was issued
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1 or renewed. The bond shall run to the People of the
2 State of Illinois, with surety by a bonding or insurance
3 company authorized to do business in this State. It
4 shall be conditioned upon the proper transmittal of all
5 title and registration fees and taxes (excluding taxes
6 under the Retailers' Occupation Tax Act) accepted by the
7 applicant as a new vehicle dealer.
8 11. Such other information concerning the business
9 of the applicant as the Secretary of State may by rule or
10 regulation prescribe.
11 12. A statement that the applicant understands
12 Chapter One through Chapter Five of this Code.
13 (c) Any change which renders no longer accurate any
14 information contained in any application for a new vehicle
15 dealer's license shall be amended within 30 days after the
16 occurrence of such change on such form as the Secretary of
17 State may prescribe by rule or regulation, accompanied by an
18 amendatory fee of $2.
19 (d) Anything in this Chapter 5 to the contrary
20 notwithstanding no person shall be licensed as a new vehicle
21 dealer unless:
22 1. He is authorized by contract in writing between
23 himself and the manufacturer or franchised distributor of
24 such make of vehicle to so sell the same in this State,
25 and
26 2. Such person shall maintain an established place
27 of business as defined in this Act.
28 (e) The Secretary of State shall, within a reasonable
29 time after receipt, examine an application submitted to him
30 under this Section and unless he makes a determination that
31 the application submitted to him does not conform with the
32 requirements of this Section or that grounds exist for a
33 denial of the application, under Section 5-501 of this
34 Chapter, grant the applicant an original new vehicle dealer's
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1 license in writing for his established place of business and
2 a supplemental license in writing for each additional place
3 of business in such form as he may prescribe by rule or
4 regulation which 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
9 business organization, the name and address of the
10 proprietor or of each partner, member, officer, director,
11 trustee or manager;
12 3. In the case of an original license, the
13 established 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
19 licensee is licensed to sell.
20 (f) The appropriate instrument evidencing the license or
21 a certified copy thereof, provided by the Secretary of State,
22 shall be kept posted conspicuously in the established place
23 of business of the licensee and in each additional place of
24 business, if any, maintained by such licensee.
25 (g) Except as provided in subsection (h) hereof, all new
26 vehicle dealer's licenses granted under this Section shall
27 expire by operation of law on December 31 of the calendar
28 year for which they are granted unless sooner revoked or
29 cancelled under the provisions of Section 5-501 of this
30 Chapter.
31 (h) A new vehicle dealer's license may be renewed upon
32 application and payment of the fee required herein, and
33 submission of proof of coverage under an approved bond under
34 the "Retailers' Occupation Tax Act" or proof that applicant
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1 is not subject to such bonding requirements, as in the case
2 of an original license, but in case an application for the
3 renewal of an effective license is made during the month of
4 December, the effective license shall remain in force until
5 the application is granted or denied by the Secretary of
6 State.
7 (i) All persons licensed as a new vehicle dealer are
8 required to furnish each purchaser of a motor vehicle:
9 1. In the case of a new vehicle a manufacturer's
10 statement of origin and in the case of a used motor
11 vehicle a certificate of title, in either case properly
12 assigned to the purchaser;
13 2. A statement verified under oath that all
14 identifying numbers on the vehicle agree with those on
15 the certificate of title or manufacturer's statement of
16 origin;
17 3. A bill of sale properly executed on behalf of
18 such person;
19 4. A copy of the Uniform Invoice-transaction
20 reporting return referred to in Section 5-402 hereof;
21 5. In the case of a rebuilt vehicle, a copy of the
22 Disclosure of Rebuilt Vehicle Status; and
23 6. In the case of a vehicle for which the warranty
24 has been reinstated, a copy of the warranty.
25 This amendatory Act of 1983 shall be applicable to the
26 1984 registration year and thereafter.
27 (Source: P.A. 88-158; 89-145, eff. 7-14-95; 89-189, eff.
28 1-1-96; 89-433, eff. 12-15-95.)
29 (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
30 Sec. 5-102. Used vehicle dealers must be licensed.
31 (a) No person, other than a licensed new vehicle dealer,
32 shall engage in the business of selling or dealing in, on
33 consignment or otherwise, 5 or more used vehicles of any make
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1 during the year (except house trailers as authorized by
2 paragraph (j) of this Section and rebuilt salvage vehicles
3 sold by their rebuilders to persons licensed under this
4 Chapter), or act as an intermediary, agent or broker for any
5 licensed dealer or vehicle purchaser (other than as a
6 salesperson) or represent or advertise that he is so engaged
7 or intends to so engage in such business unless licensed to
8 do so by the Secretary of State under the provisions of this
9 Section. However, a person engaged in the business of
10 selling or reselling manufactured housing and mobile homes,
11 as defined in the Illinois Manufactured Housing and Mobile
12 Home Safety Act, is not required to be licensed as a used
13 vehicle dealer under this Section, but the person shall
14 maintain a record of the transaction, including the
15 following:
16 (1) the name and address of the buyer and seller;
17 (2) the date of sale;
18 (3) a description of the manufactured housing unit,
19 including the vehicle identification number, make, model,
20 and year; and
21 (4) the Illinois certificate of title number.
22 The records shall be available for inspection by an officer
23 of the Office of the Secretary of State at any reasonable
24 hour.
25 (b) An application for a used vehicle dealer's license
26 shall be filed with the Secretary of State, duly verified by
27 oath, in such form as the Secretary of State may by rule or
28 regulation prescribe and shall contain:
29 1. The name and type of business organization
30 established and additional places of business, if any, in
31 this State.
32 2. If the applicant is a corporation, a list of its
33 officers, directors, and shareholders having a ten
34 percent or greater ownership interest in the corporation,
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1 setting forth the residence address of each; if the
2 applicant is a sole proprietorship, a partnership, an
3 unincorporated association, a trust, or any similar form
4 of business organization, the names and residence address
5 of the proprietor or of each partner, member, officer,
6 director, trustee or manager.
7 3. A statement that the applicant has been approved
8 for registration under the Retailers' Occupation Tax Act
9 by the Department of Revenue. However, this requirement
10 does not apply to a dealer who is already licensed
11 hereunder with the Secretary of State, and who is merely
12 applying for a renewal of his license. As evidence of
13 this fact, the application shall be accompanied by a
14 certification from the Department of Revenue showing that
15 the Department has approved the applicant for
16 registration under the Retailers' Occupation Tax Act.
17 4. A statement that the applicant has complied with
18 the appropriate liability insurance requirement. A
19 Certificate of Insurance in a solvent company authorized
20 to do business in the State of Illinois shall be included
21 with each application covering each location at which he
22 proposes to act as a used vehicle dealer. The policy
23 must provide liability coverage in the minimum amounts of
24 $100,000 for bodily injury to, or death of, any person,
25 $300,000 for bodily injury to, or death of, two or more
26 persons in any one accident, and $50,000 for damage to
27 property. Such policy shall expire not sooner than
28 December 31 of the year for which the license was issued
29 or renewed. The expiration of the insurance policy shall
30 not terminate the liability under the policy arising
31 during the period for which the policy was filed.
32 Trailer and mobile home dealers are exempt from this
33 requirement.
34 5. An application for a used vehicle dealer's
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1 license shall be accompanied by the following license
2 fees:
3 $50 for applicant's established place of business,
4 and $25 for each additional place of business, if any, to
5 which the application pertains; however, if the
6 application is made after June 15 of any year, the
7 license fee shall be $25 for applicant's established
8 place of business plus $12.50 for each additional place
9 of business, if any, to which the application pertains.
10 License fees shall be returnable only in the event that
11 the application is denied by the Secretary of State.
12 6. A statement that the applicant's officers,
13 directors, shareholders having a 10% or greater ownership
14 interest therein, proprietor, partner, member, officer,
15 director, trustee, manager or other principals in the
16 business have not committed in the past 3 years any one
17 violation as determined in any civil, criminal or
18 administrative proceedings of any one of the following
19 Acts:
20 (A) The Anti Theft Laws of the Illinois
21 Vehicle Code;
22 (B) The Certificate of Title Laws of the
23 Illinois Vehicle Code;
24 (C) The Offenses against Registration and
25 Certificates of Title Laws of the Illinois Vehicle
26 Code;
27 (D) The Dealers, Transporters, Wreckers and
28 Rebuilders Laws of the Illinois Vehicle Code;
29 (E) Section 21-2 of the Illinois Criminal Code
30 of 1961, Criminal Trespass to Vehicles; or
31 (F) The Retailers' Occupation Tax Act.
32 7. A statement that the applicant's officers,
33 directors, shareholders having a 10% or greater ownership
34 interest therein, proprietor, partner, member, officer,
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1 director, trustee, manager or other principals in the
2 business have not committed in any calendar year 3 or
3 more violations, as determined in any civil or criminal
4 or administrative proceedings, of any one or more of the
5 following Acts:
6 (A) The Consumer Finance Act;
7 (B) The Consumer Installment Loan Act;
8 (C) The Retail Installment Sales Act;
9 (D) The Motor Vehicle Retail Installment Sales
10 Act;
11 (E) The Interest Act;
12 (F) The Illinois Wage Assignment Act;
13 (G) Part 8 of Article XII of the Code of Civil
14 Procedure; or
15 (H) The Consumer Fraud Act.
16 8. A bond or Certificate of Deposit in the amount
17 of $20,000 for each location at which the applicant
18 intends to act as a used vehicle dealer. The bond shall
19 be for the term of the license, or its renewal, for which
20 application is made, and shall expire not sooner than
21 December 31 of the year for which the license was issued
22 or renewed. The bond shall run to the People of the
23 State of Illinois, with surety by a bonding or insurance
24 company authorized to do business in this State. It
25 shall be conditioned upon the proper transmittal of all
26 title and registration fees and taxes (excluding taxes
27 under the Retailers' Occupation Tax Act) accepted by the
28 applicant as a used vehicle dealer.
29 9. Such other information concerning the business
30 of the applicant as the Secretary of State may by rule or
31 regulation prescribe.
32 10. A statement that the applicant understands
33 Chapter 1 through Chapter 5 of this Code.
34 (c) Any change which renders no longer accurate any
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1 information contained in any application for a used vehicle
2 dealer's license shall be amended within 30 days after the
3 occurrence of each change on such form as the Secretary of
4 State may prescribe by rule or regulation, accompanied by an
5 amendatory fee of $2.
6 (d) Anything in this Chapter to the contrary
7 notwithstanding, no person shall be licensed as a used
8 vehicle dealer unless such person maintains an established
9 place of business as defined in this Chapter.
10 (e) The Secretary of State shall, within a reasonable
11 time after receipt, examine an application submitted to him
12 under this Section. Unless the Secretary makes a
13 determination that the application submitted to him does not
14 conform to this Section or that grounds exist for a denial of
15 the application under Section 5-501 of this Chapter, he must
16 grant the applicant an original used vehicle dealer's license
17 in writing for his established place of business and a
18 supplemental license in writing for each additional place of
19 business in such form as he may prescribe by rule or
20 regulation which shall include the following:
21 1. The name of the person licensed;
22 2. If a corporation, the name and address of its
23 officers or if a sole proprietorship, a partnership, an
24 unincorporated association or any similar form of
25 business organization, the name and address of the
26 proprietor or of each partner, member, officer, director,
27 trustee or manager;
28 3. In case of an original license, the established
29 place of business of the licensee;
30 4. In the case of a supplemental license, the
31 established place of business of the licensee and the
32 additional place of business to which such supplemental
33 license pertains.
34 (f) The appropriate instrument evidencing the license or
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1 a certified copy thereof, provided by the Secretary of State
2 shall be kept posted, conspicuously, in the established place
3 of business of the licensee and in each additional place of
4 business, if any, maintained by such licensee.
5 (g) Except as provided in subsection (h) of this
6 Section, all used vehicle dealer's licenses granted under
7 this Section expire by operation of law on December 31 of the
8 calendar year for which they are granted unless sooner
9 revoked or cancelled under Section 5-501 of this Chapter.
10 (h) A used vehicle dealer's license may be renewed upon
11 application and payment of the fee required herein, and
12 submission of proof of coverage by an approved bond under the
13 "Retailers' Occupation Tax Act" or proof that applicant is
14 not subject to such bonding requirements, as in the case of
15 an original license, but in case an application for the
16 renewal of an effective license is made during the month of
17 December, the effective license shall remain in force until
18 the application for renewal is granted or denied by the
19 Secretary of State.
20 (i) All persons licensed as a used vehicle dealer are
21 required to furnish each purchaser of a motor vehicle:
22 1. A certificate of title properly assigned to the
23 purchaser;
24 2. A statement verified under oath that all
25 identifying numbers on the vehicle agree with those on
26 the certificate of title;
27 3. A bill of sale properly executed on behalf of
28 such person;
29 4. A copy of the Uniform Invoice-transaction
30 reporting return referred to in Section 5-402 of this
31 Chapter;
32 5. In the case of a rebuilt vehicle, a copy of the
33 Disclosure of Rebuilt Vehicle Status; and
34 6. In the case of a vehicle for which the warranty
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1 has been reinstated, a copy of the warranty.
2 (j) A real estate broker holding a valid certificate of
3 registration issued pursuant to "The Real Estate Brokers and
4 Salesmen License Act" may engage in the business of selling
5 or dealing in house trailers not his own without being
6 licensed as a used vehicle dealer under this Section; however
7 such broker shall maintain a record of the transaction
8 including the following:
9 (1) the name and address of the buyer and seller,
10 (2) the date of sale,
11 (3) a description of the mobile home, including the
12 vehicle identification number, make, model, and year, and
13 (4) the Illinois certificate of title number.
14 The foregoing records shall be available for inspection
15 by any officer of the Secretary of State's Office at any
16 reasonable hour.
17 (Source: P.A. 88-158; 89-189, eff. 1-1-96.)
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.