State of Illinois
92nd General Assembly
Legislation

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92_HB4975ccr001

 
                                           LRB9215737LDtmccr2

 1                        92ND GENERAL ASSEMBLY
 2                  FIRST CONFERENCE COMMITTEE REPORT
 3                         ON HOUSE BILL 4975
 4    -------------------------------------------------------------
 5    -------------------------------------------------------------

 6        To the President of the Senate and  the  Speaker  of  the
 7    House of Representatives:
 8        We,  the  conference  committee appointed to consider the
 9    differences  between  the  houses  in  relation   to   Senate
10    Amendment No. 1 to House Bill 4975, recommend the following:
11        (1)  that  the Senate recede from Senate Amendment No. 1;
12    and

13        (2)  that  House  Bill  4975  be  amended  by   replacing
14    everything after the enacting clause with the following:

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

17        (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
18        Sec. 5-101.  New vehicle dealers must be licensed.
19        (a)  No person shall engage in this State in the business
20    of selling or dealing in, on consignment  or  otherwise,  new
21    vehicles  of  any make, or act as an intermediary or agent or
22    broker for any licensed dealer  or  vehicle  purchaser  other
23    than  as  a salesperson, or represent or advertise that he is
24    so engaged or intends to so engage in  such  business  unless
25    licensed  to do so in writing by the Secretary of State under
26    the provisions of this Section.
27        (b)  An application for a new  vehicle  dealer's  license
28    shall  be filed with the Secretary of State, duly verified by
29    oath, on such form as the Secretary of State may by  rule  or
30    regulation prescribe and shall contain:
31             1.  The  name  and  type of business organization of
32        the applicant and his  established and additional  places
 
                            -2-            LRB9215737LDtmccr2
 1        of business, if any, in this State.
 2             2.  If the applicant is a corporation, a list of its
 3        officers,   directors,  and  shareholders  having  a  ten
 4        percent or greater ownership interest in the corporation,
 5        setting forth the  residence  address  of  each;  if  the
 6        applicant  is  a  sole  proprietorship, a partnership, an
 7        unincorporated association, a trust, or any similar  form
 8        of  business organization, the name and residence address
 9        of the proprietor or of each  partner,  member,  officer,
10        director, trustee, or manager.
11             3.  The  make  or  makes  of  new vehicles which the
12        applicant will offer for sale at retail in this State.
13             4.  The name  of  each  manufacturer  or  franchised
14        distributor,  if  any,  of  new  vehicles  with  whom the
15        applicant  has  contracted  for  the  sale  of  such  new
16        vehicles. As evidence of this fact, the application shall
17        be accompanied by  a  signed  statement  from  each  such
18        manufacturer or franchised distributor.  If the applicant
19        is  in  the  business of offering for sale new conversion
20        vehicles, trucks or vans, except for trucks  modified  to
21        serve a special purpose which includes but is not limited
22        to  the  following vehicles:  street sweepers, fertilizer
23        spreaders, emergency vehicles, implements of husbandry or
24        maintenance type vehicles, he must furnish evidence of  a
25        sales   and  service  agreement  from  both  the  chassis
26        manufacturer and second stage manufacturer.
27             5.  A statement that the applicant has been approved
28        for registration under the Retailers' Occupation Tax  Act
29        by   the   Department  of  Revenue:  Provided  that  this
30        requirement does not apply to a  dealer  who  is  already
31        licensed  hereunder  with the Secretary of State, and who
32        is merely applying for  a  renewal  of  his  license.  As
33        evidence   of   this   fact,  the  application  shall  be
34        accompanied by a certification  from  the  Department  of
35        Revenue  showing  that  that  Department has approved the
 
                            -3-            LRB9215737LDtmccr2
 1        applicant   for   registration   under   the   Retailers'
 2        Occupation Tax Act.
 3             6.  A statement that the applicant has complied with
 4        the  appropriate  liability  insurance  requirement.    A
 5        Certificate  of Insurance in a solvent company authorized
 6        to do business in the State of Illinois shall be included
 7        with each application covering each location at which  he
 8        proposes to act as a new vehicle dealer.  The policy must
 9        provide  liability  coverage  in  the  minimum amounts of
10        $100,000 for bodily injury to, or death of,  any  person,
11        $300,000  for  bodily injury to, or death of, two or more
12        persons in any one accident, and $50,000  for  damage  to
13        property.   Such  policy  shall  expire  not  sooner than
14        December 31 of the year for which the license was  issued
15        or renewed.  The expiration of the insurance policy shall
16        not  terminate  the  liability  under  the policy arising
17        during  the  period  for  which  the  policy  was  filed.
18        Trailer and mobile home  dealers  are  exempt  from  this
19        requirement.
20             If  the  permitted  user  has  a liability insurance
21        policy  that  provides  automobile  liability   insurance
22        coverage of at least $100,000 for bodily injury to or the
23        death of any person, $300,000 for bodily injury to or the
24        death  of  any 2 or more persons in any one accident, and
25        $50,000 for damage to property, then the permitted user's
26        insurer shall be the primary  insurer  and  the  dealer's
27        insurer  shall be the secondary insurer. If the permitted
28        user does not have  a  liability  insurance  policy  that
29        provides  automobile  liability  insurance coverage of at
30        least $100,000 for bodily injury to or the death  of  any
31        person, $300,000 for bodily injury to or the death of any
32        2  or  more  persons in any one accident, and $50,000 for
33        damage to property, or does not  have  any  insurance  at
34        all,  then  the  dealer's  insurer  shall  be the primary
35        insurer and the permitted user's  insurer  shall  be  the
 
                            -4-            LRB9215737LDtmccr2
 1        secondary insurer.
 2             When  a  permitted  user   is  "test  driving" a new
 3        vehicle dealer's automobile,  the  new  vehicle  dealer's
 4        insurance  shall  be  primary  and  the  permitted user's
 5        insurance shall be secondary.
 6             As used in this paragraph 6, a "permitted user" is a
 7        person who, with the permission of the new vehicle dealer
 8        or an employee  of  the  new  vehicle  dealer,  drives  a
 9        vehicle  owned  and  held  for  sale  or lease by the new
10        vehicle  dealer  which  the  person  is  considering   to
11        purchase  or lease, in order to evaluate the performance,
12        reliability,  or  condition  of  the  vehicle.  The  term
13        "permitted user" also includes a  person  who,  with  the
14        permission  of  the  new vehicle dealer, drives a vehicle
15        owned or held for sale or lease by the new vehicle dealer
16        for loaner purposes while the  user's  vehicle  is  being
17        repaired or evaluated.
18             As  used  in this paragraph 6, "test driving" occurs
19        when a permitted user who, with the permission of the new
20        vehicle dealer or an employee of the new vehicle  dealer,
21        drives  a  vehicle  owned and held for sale or lease by a
22        new vehicle dealer that  the  person  is  considering  to
23        purchase  or lease, in order to evaluate the performance,
24        reliability, or condition of the vehicle.
25             As used in this paragraph 6, "loaner purposes" means
26        when a person who, with the permission of the new vehicle
27        dealer, drives a vehicle owned or held for sale or  lease
28        by  the  new  vehicle  dealer while the user's vehicle is
29        being repaired or evaluated.
30             7. (A)  An  application  for  a  new  motor  vehicle
31        dealer's license shall be accompanied  by  the  following
32        license fees:
33                  $100   for  applicant's  established  place  of
34             business, and  $50  for  each  additional  place  of
35             business, if any, to which the application pertains;
 
                            -5-            LRB9215737LDtmccr2
 1             but  if the application is made after June 15 of any
 2             year, the license fee shall be $50  for  applicant's
 3             established  place  of  business  plus  $25 for each
 4             additional place of business, if any, to  which  the
 5             application   pertains.   License   fees   shall  be
 6             returnable only in the event that the application is
 7             denied  by  the  Secretary  of  State.  All   moneys
 8             received  by  the Secretary of State as license fees
 9             under this Section shall be deposited into the Motor
10             Vehicle Review Board  Fund  and  shall  be  used  to
11             administer  the Motor Vehicle Review Board under the
12             Motor Vehicle Franchise Act.
13                  (B)  An application for a new vehicle  dealer's
14             license, other than for a new motor vehicle dealer's
15             license,  shall  be  accompanied  by  the  following
16             license fees:
17                  $50   for   applicant's  established  place  of
18             business, and  $25  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 $25  for  applicant's
22             established  place  of business plus $12.50 for each
23             additional place of business, if any, to  which  the
24             application   pertains.    License   fees  shall  be
25             returnable only in the event that the application is
26             denied by the Secretary of State.
27             8.  A  statement  that  the  applicant's   officers,
28        directors, shareholders having a 10% or greater ownership
29        interest therein, proprietor, a partner, member, officer,
30        director,  trustee,  manager  or  other principals in the
31        business have not committed in the past 3 years  any  one
32        violation   as  determined  in  any  civil,  criminal  or
33        administrative proceedings of any one  of  the  following
34        Acts:
35                  (A)  The   Anti  Theft  Laws  of  the  Illinois
 
                            -6-            LRB9215737LDtmccr2
 1             Vehicle Code;
 2                  (B)  The  Certificate  of  Title  Laws  of  the
 3             Illinois Vehicle Code;
 4                  (C)  The  Offenses  against  Registration   and
 5             Certificates  of  Title Laws of the Illinois Vehicle
 6             Code;
 7                  (D)  The Dealers,  Transporters,  Wreckers  and
 8             Rebuilders Laws of the Illinois Vehicle Code;
 9                  (E)  Section 21-2 of the Criminal Code of 1961,
10             Criminal Trespass to Vehicles; or
11                  (F)  The Retailers' Occupation Tax Act.
12             9.  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 any  calendar  year  3  or
17        more  violations, as determined in any civil, criminal or
18        administrative proceedings, of any one  or  more  of  the
19        following Acts:
20                  (A)  The Consumer Finance Act;
21                  (B)  The Consumer Installment Loan Act;
22                  (C)  The Retail Installment Sales Act;
23                  (D)  The Motor Vehicle Retail Installment Sales
24             Act;
25                  (E)  The Interest Act;
26                  (F)  The Illinois Wage Assignment Act;
27                  (G)  Part 8 of Article XII of the Code of Civil
28             Procedure; or
29                  (H)  The Consumer Fraud Act.
30             10.  A  bond or certificate of deposit in the amount
31        of $20,000 for  each  location  at  which  the  applicant
32        intends  to  act as a new vehicle dealer.  The bond shall
33        be for the term of the license, or its renewal, for which
34        application is made, and shall  expire  not  sooner  than
35        December  31 of the year for which the license was issued
 
                            -7-            LRB9215737LDtmccr2
 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
35    license in writing for his  established place of business and
 
                            -8-            LRB9215737LDtmccr2
 1    a  supplemental  license in writing for each additional place
 2    of business in such form as  he  may  prescribe  by  rule  or
 3    regulation which shall include the following:
 4             1.  The name of the person licensed;
 5             2.  If  a  corporation,  the name and address of its
 6        officers or if a sole proprietorship, a  partnership,  an
 7        unincorporated   association   or  any  similar  form  of
 8        business  organization,  the  name  and  address  of  the
 9        proprietor or of each partner, member, officer, director,
10        trustee or manager;
11             3.  In  the  case  of  an  original   license,   the
12        established place of business of the licensee;
13             4.  In  the  case  of  a  supplemental  license, the
14        established place of business of  the  licensee  and  the
15        additional  place  of business to which such supplemental
16        license pertains;
17             5.  The make or makes  of  new  vehicles  which  the
18        licensee is licensed to sell.
19        (f)  The appropriate instrument evidencing the license or
20    a certified copy thereof, provided by the Secretary of State,
21    shall  be  kept posted conspicuously in the established place
22    of business of the licensee and in each additional  place  of
23    business, if any, maintained by such licensee.
24        (g)  Except as provided in subsection (h) hereof, all new
25    vehicle  dealer's  licenses  granted under this Section shall
26    expire by operation of law on December  31  of  the  calendar
27    year  for  which  they  are  granted unless sooner revoked or
28    cancelled under the  provisions  of  Section  5-501  of  this
29    Chapter.
30        (h)  A  new  vehicle dealer's license may be renewed upon
31    application and payment  of  the  fee  required  herein,  and
32    submission  of proof of coverage under an approved bond under
33    the "Retailers' Occupation Tax Act" or proof  that  applicant
34    is  not  subject to such bonding requirements, as in the case
35    of an original license, but in case an  application  for  the
 
                            -9-            LRB9215737LDtmccr2
 1    renewal  of  an effective license is made during the month of
 2    December, the effective license shall remain in  force  until
 3    the  application  is  granted  or  denied by the Secretary of
 4    State.
 5        (i)  All persons licensed as a  new  vehicle  dealer  are
 6    required to furnish each purchaser of a motor vehicle:
 7             1.  In  the  case  of a new vehicle a manufacturer's
 8        statement of origin and in  the  case  of  a  used  motor
 9        vehicle  a  certificate of title, in either case properly
10        assigned to the purchaser;
11             2.  A  statement  verified  under  oath   that   all
12        identifying  numbers  on  the vehicle agree with those on
13        the certificate of title or manufacturer's  statement  of
14        origin;
15             3.  A  bill  of  sale properly executed on behalf of
16        such person;
17             4.  A  copy  of  the   Uniform   Invoice-transaction
18        reporting return referred to in Section 5-402 hereof;
19             5.  In  the case of a rebuilt vehicle, a copy of the
20        Disclosure of Rebuilt Vehicle Status; and
21             6.  In the case of a vehicle for which the  warranty
22        has been reinstated, a copy of the warranty.
23        (j)  Except  at  the  time of sale or repossession of the
24    vehicle, no person licensed as a new vehicle dealer may issue
25    any other person a newly created key to a vehicle unless  the
26    new  vehicle  dealer  makes a copy of the driver's license or
27    State  identification  card  of  the  person  requesting   or
28    obtaining  the newly created key. The new vehicle dealer must
29    retain the copy for 30 days.
30        A new vehicle dealer who violates this subsection (j)  is
31    guilty  of  a petty offense. Violation of this subsection (j)
32    is not cause to suspend, revoke, cancel, or deny  renewal  of
33    the new vehicle dealer's license.
34        This  amendatory  Act  of 1983 shall be applicable to the
35    1984 registration year and thereafter.
 
                            -10-           LRB9215737LDtmccr2
 1    (Source: P.A. 92-391, eff. 8-16-01.)

 2        (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
 3        Sec. 5-102.  Used vehicle dealers must be licensed.
 4        (a)  No person, other than a licensed new vehicle dealer,
 5    shall engage in the business of selling  or  dealing  in,  on
 6    consignment or otherwise, 5 or more used vehicles of any make
 7    during  the  year  (except  house  trailers  as authorized by
 8    paragraph (j) of this Section and  rebuilt  salvage  vehicles
 9    sold  by  their  rebuilders  to  persons  licensed under this
10    Chapter), or act as an intermediary, agent or broker for  any
11    licensed  dealer  or  vehicle  purchaser  (other  than  as  a
12    salesperson)  or represent or advertise that he is so engaged
13    or intends to so engage in such business unless  licensed  to
14    do  so by the Secretary of State under the provisions of this
15    Section.
16        (b)  An application for a used vehicle  dealer's  license
17    shall  be filed with the Secretary of State, duly verified by
18    oath, in such form as the Secretary of State may by  rule  or
19    regulation prescribe and shall contain:
20             1.  The  name  and  type  of  business  organization
21        established and additional places of business, if any, in
22        this State.
23             2.  If the applicant is a corporation, a list of its
24        officers,   directors,  and  shareholders  having  a  ten
25        percent or greater ownership interest in the corporation,
26        setting forth the  residence  address  of  each;  if  the
27        applicant  is  a  sole  proprietorship, a partnership, an
28        unincorporated association, a trust, or any similar  form
29        of business organization, the names and residence address
30        of  the  proprietor  or of each partner, member, officer,
31        director, trustee or manager.
32             3.  A statement that the applicant has been approved
33        for registration under the Retailers' Occupation Tax  Act
34        by  the  Department of Revenue. However, this requirement
 
                            -11-           LRB9215737LDtmccr2
 1        does not apply  to  a  dealer  who  is  already  licensed
 2        hereunder  with the Secretary of State, and who is merely
 3        applying for a renewal of his  license.  As  evidence  of
 4        this  fact,  the  application  shall  be accompanied by a
 5        certification from the Department of Revenue showing that
 6        the   Department   has   approved   the   applicant   for
 7        registration under the Retailers' Occupation Tax Act.
 8             4.  A statement that the applicant has complied with
 9        the  appropriate  liability  insurance  requirement.    A
10        Certificate  of Insurance in a solvent company authorized
11        to do business in the State of Illinois shall be included
12        with each application covering each location at which  he
13        proposes  to  act  as  a used vehicle dealer.  The policy
14        must provide liability coverage in the minimum amounts of
15        $100,000 for bodily injury to, or death of,  any  person,
16        $300,000  for  bodily injury to, or death of, two or more
17        persons in any one accident, and $50,000  for  damage  to
18        property.   Such  policy  shall  expire  not  sooner than
19        December 31 of the year for which the license was  issued
20        or renewed.  The expiration of the insurance policy shall
21        not  terminate  the  liability  under  the policy arising
22        during  the  period  for  which  the  policy  was  filed.
23        Trailer and mobile home  dealers  are  exempt  from  this
24        requirement.
25             If  the  permitted  user  has  a liability insurance
26        policy  that  provides  automobile  liability   insurance
27        coverage of at least $100,000 for bodily injury to or the
28        death of any person, $300,000 for bodily injury to or the
29        death  of  any 2 or more persons in any one accident, and
30        $50,000 for damage to property, then the permitted user's
31        insurer shall be the primary  insurer  and  the  dealer's
32        insurer  shall be the secondary insurer. If the permitted
33        user does not have  a  liability  insurance  policy  that
34        provides  automobile  liability  insurance coverage of at
35        least $100,000 for bodily injury to or the death  of  any
 
                            -12-           LRB9215737LDtmccr2
 1        person, $300,000 for bodily injury to or the death of any
 2        2  or  more  persons in any one accident, and $50,000 for
 3        damage to property, or does not  have  any  insurance  at
 4        all,  then  the  dealer's  insurer  shall  be the primary
 5        insurer and the permitted user's  insurer  shall  be  the
 6        secondary insurer.
 7             When  a  permitted  user  is  "test  driving" a used
 8        vehicle dealer's automobile, the  used  vehicle  dealer's
 9        insurance  shall  be  primary  and  the  permitted user's
10        insurance shall be secondary.
11             As used in this paragraph 4, a "permitted user" is a
12        person who, with  the  permission  of  the  used  vehicle
13        dealer  or an employee of the used vehicle dealer, drives
14        a vehicle owned and held for sale or lease  by  the  used
15        vehicle   dealer  which  the  person  is  considering  to
16        purchase or lease, in order to evaluate the  performance,
17        reliability,  or  condition  of  the  vehicle.  The  term
18        "permitted  user"  also  includes  a person who, with the
19        permission of the used vehicle dealer, drives  a  vehicle
20        owned  or  held  for  sale  or  lease by the used vehicle
21        dealer for loaner purposes while the  user's  vehicle  is
22        being repaired or evaluated.
23             As  used  in this paragraph 4, "test driving" occurs
24        when a permitted user who, with  the  permission  of  the
25        used  vehicle  dealer  or an employee of the used vehicle
26        dealer, drives a vehicle owned and held for sale or lease
27        by a used vehicle dealer that the person  is  considering
28        to   purchase   or   lease,  in  order  to  evaluate  the
29        performance, reliability, or condition of the vehicle.
30             As used in this paragraph 4, "loaner purposes" means
31        when a person  who,  with  the  permission  of  the  used
32        vehicle  dealer,  drives a vehicle owned or held for sale
33        or lease by the used  vehicle  dealer  while  the  user's
34        vehicle is being repaired or evaluated.
35             5.  An  application  for  a  used  vehicle  dealer's
 
                            -13-           LRB9215737LDtmccr2
 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,
35        director,  trustee,  manager  or  other principals in the
 
                            -14-           LRB9215737LDtmccr2
 1        business have not committed in any  calendar  year  3  or
 2        more  violations,  as determined in any civil or criminal
 3        or administrative proceedings, of any one or more of  the
 4        following Acts:
 5                  (A)  The Consumer Finance Act;
 6                  (B)  The Consumer Installment Loan Act;
 7                  (C)  The Retail Installment Sales Act;
 8                  (D)  The Motor Vehicle Retail Installment Sales
 9             Act;
10                  (E)  The Interest Act;
11                  (F)  The Illinois Wage Assignment Act;
12                  (G)  Part 8 of Article XII of the Code of Civil
13             Procedure; or
14                  (H)  The Consumer Fraud Act.
15             8.  A  bond  or Certificate of Deposit in the amount
16        of $20,000 for  each  location  at  which  the  applicant
17        intends  to act as a used vehicle dealer.  The bond shall
18        be for the term of the license, or its renewal, for which
19        application is made, and shall  expire  not  sooner  than
20        December  31 of the year for which the license was issued
21        or renewed.  The bond shall run  to  the  People  of  the
22        State  of Illinois, with surety by a bonding or insurance
23        company authorized to do  business  in  this  State.   It
24        shall  be  conditioned upon the proper transmittal of all
25        title and registration fees and  taxes  (excluding  taxes
26        under  the Retailers' Occupation Tax Act) accepted by the
27        applicant as a used vehicle dealer.
28             9.  Such other information concerning  the  business
29        of the applicant as the Secretary of State may by rule or
30        regulation prescribe.
31             10.  A  statement  that  the  applicant  understands
32        Chapter 1 through Chapter 5 of this Code.
33        (c)  Any  change  which  renders  no  longer accurate any
34    information contained in any application for a  used  vehicle
35    dealer's  license  shall  be amended within 30 days after the
 
                            -15-           LRB9215737LDtmccr2
 1    occurrence of each change on such form as  the  Secretary  of
 2    State  may prescribe by rule or regulation, accompanied by an
 3    amendatory fee of $2.
 4        (d)  Anything   in   this   Chapter   to   the   contrary
 5    notwithstanding, no  person  shall  be  licensed  as  a  used
 6    vehicle  dealer  unless  such person maintains an established
 7    place of business as defined in this Chapter.
 8        (e)  The Secretary of State shall,  within  a  reasonable
 9    time  after  receipt, examine an application submitted to him
10    under  this   Section.   Unless   the   Secretary   makes   a
11    determination that the application submitted to him  does not
12    conform to this Section or that grounds exist for a denial of
13    the application under Section 5-501 of this Chapter, he  must
14    grant the applicant an original used vehicle dealer's license
15    in  writing  for  his  established  place  of  business and a
16    supplemental license in writing for each additional place  of
17    business  in  such  form  as  he  may  prescribe  by  rule or
18    regulation which shall include the following:
19             1.  The name of the person licensed;
20             2.  If a corporation, the name and  address  of  its
21        officers  or  if a sole proprietorship, a partnership, an
22        unincorporated  association  or  any  similar   form   of
23        business  organization,  the  name  and  address  of  the
24        proprietor or of each partner, member, officer, director,
25        trustee or manager;
26             3.  In  case of an original license, the established
27        place of business of the licensee;
28             4.  In the  case  of  a  supplemental  license,  the
29        established  place  of  business  of the licensee and the
30        additional place of business to which  such  supplemental
31        license pertains.
32        (f)  The appropriate instrument evidencing the license or
33    a  certified copy thereof, provided by the Secretary of State
34    shall be kept posted, conspicuously, in the established place
35    of business of the licensee and in each additional  place  of
 
                            -16-           LRB9215737LDtmccr2
 1    business, if any, maintained by such licensee.
 2        (g)  Except   as  provided  in  subsection  (h)  of  this
 3    Section, all used vehicle  dealer's  licenses  granted  under
 4    this Section expire by operation of law on December 31 of the
 5    calendar  year  for  which  they  are  granted  unless sooner
 6    revoked or cancelled under Section 5-501 of this Chapter.
 7        (h)  A used vehicle dealer's license may be renewed  upon
 8    application  and  payment  of  the  fee  required herein, and
 9    submission of proof of coverage by an approved bond under the
10    "Retailers' Occupation Tax Act" or proof  that  applicant  is
11    not  subject  to such bonding requirements, as in the case of
12    an original license, but  in  case  an  application  for  the
13    renewal  of  an effective license is made during the month of
14    December, the effective license shall remain in  force  until
15    the  application  for  renewal  is  granted  or denied by the
16    Secretary of State.
17        (i)  All persons licensed as a used  vehicle  dealer  are
18    required to furnish each purchaser of a motor vehicle:
19             1.  A  certificate of title properly assigned to the
20        purchaser;
21             2.  A  statement  verified  under  oath   that   all
22        identifying  numbers  on  the vehicle agree with those on
23        the certificate of title;
24             3.  A bill of sale properly executed  on  behalf  of
25        such person;
26             4.  A   copy   of  the  Uniform  Invoice-transaction
27        reporting return referred to in  Section  5-402  of  this
28        Chapter;
29             5.  In  the case of a rebuilt vehicle, a copy of the
30        Disclosure of Rebuilt Vehicle Status; and
31             6.  In the case of a vehicle for which the  warranty
32        has been reinstated, a copy of the warranty.
33        (j)  A  real estate broker holding a valid certificate of
34    registration issued pursuant to "The Real Estate Brokers  and
35    Salesmen  License  Act" may engage in the business of selling
 
                            -17-           LRB9215737LDtmccr2
 1    or dealing in  house  trailers  not  his  own  without  being
 2    licensed as a used vehicle dealer under this Section; however
 3    such  broker  shall  maintain  a  record  of  the transaction
 4    including the following:
 5             (1)  the name and address of the buyer and seller,
 6             (2)  the date of sale,
 7             (3)  a description of the mobile home, including the
 8        vehicle identification number, make, model, and year, and
 9             (4)  the Illinois certificate of title number.
10        The foregoing records shall be available  for  inspection
11    by  any  officer  of  the  Secretary of State's Office at any
12    reasonable hour.
13        (k)  Except at the time of sale or  repossession  of  the
14    vehicle,  no  person  licensed  as  a used vehicle dealer may
15    issue any other person a  newly  created  key  to  a  vehicle
16    unless  the  used vehicle dealer makes a copy of the driver's
17    license or State identification card of the person requesting
18    or obtaining the newly created key. The used  vehicle  dealer
19    must retain the copy for 30 days.
20        A used vehicle dealer who violates this subsection (k) is
21    guilty  of  a petty offense. Violation of this subsection (k)
22    is not cause to suspend, revoke, cancel, or deny  renewal  of
23    the used vehicle dealer's license.
24    (Source: P.A. 92-391, eff. 8-16-01.)".

25        Submitted on May 30, 2002.

26    s/Sen. Dave Syverson                     s/Rep. Jay Hoffman            
27    s/Sen. Thomas Walsh                      s/Rep. Barbara Flynn Currie   
28    s/Sen. Todd Sieben                       s/Rep. Gary Hannig            
29    s/Sen. Denny Jacobs                      s/Rep. Art Tenhouse           
30    s/Sen. John Cullerton                    s/Rep. Terry Parke            
31      Committee for the Senate               Committee for the House

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