Public Act 102-0154
 
SB0573 EnrolledLRB102 16985 RAM 22405 b

    AN ACT concerning transportation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Vehicle Code is amended by
changing Sections 3-100.1, 3-100.2, 3-104, 3-104.5, 3-112.1,
3-113, 3-209, 3-403, 3-405.1, 3-506, 3-802, 3-805, 3-806.1,
3-806.5, 5-100, 5-101, 5-101.1, 5-101.2, 5-102, 5-102.8, and
5-301 and by adding Sections 1-213.8 and 5-505 as follows:
 
    (625 ILCS 5/1-213.8 new)
    Sec. 1-213.8. Uniform Invoice. A form created by the
Secretary for the purpose of transporting vehicles and
essential parts that does not convey or transfer ownership
rights of a vehicle from one entity to another.
 
    (625 ILCS 5/3-100.1)
    Sec. 3-100.1. Use of electronic records.
    (a) To the extent authorized by the Secretary of State and
in accordance with standards and procedures prescribed by the
Secretary of State:
        (1) Certificates, certifications, affidavits,
    applications, assignments, statements, notices,
    documents, and other records required under this Chapter
    may be created, distributed, and received in electronic
    form.
        (2) Signatures required under this Chapter may be made
    as electronic signatures or may be waived.
        (3) Delivery of records required under this Chapter
    may be made by any means, including electronic delivery.
        (4) Fees and taxes required to be paid under this
    Chapter may be made by electronic means; provided that any
    forms, records, electronic records, and methods of
    electronic payment relating to the filing and payment of
    taxes shall be prescribed by the Department of Revenue.
    (a-5) No later than July 1, 2022 2021, the Secretary of
State shall implement, manage, and administer an electronic
lien and title system that will permit a lienholder to
perfect, assign, and release a lien under this Code. The
system may include the points in subsection (a) as to the
identified objectives of the program. The Secretary shall
establish by administrative rule the standards and procedures
relating to the management and implementation of the mandatory
electronic lien and title system established under this
subsection. The Secretary may charge a reasonable fee for
performing the services and functions relating to the
management and administration of the system. The fee shall be
set by administrative rule adopted by the Secretary.
    (b) Electronic records accepted by the Secretary of State
have the same force and effect as records created on paper by
writing, typing, printing, or similar means. The procedures
established by the Secretary of State concerning the
acceptance of electronic filings and electronic records shall
ensure that the electronic filings and electronic records are
received and stored accurately and that they are readily
available to satisfy any statutory requirements that call for
a written record.
    (c) Electronic signatures accepted by the Secretary of
State shall have the same force and effect as manual
signatures.
    (d) Electronic delivery of records accepted by the
Secretary of State shall have the same force and effect as
physical delivery of records.
    (e) Electronic records and electronic signatures accepted
by the Secretary of State shall be admissible in all
administrative, quasi-judicial, and judicial proceedings. In
any such proceeding, nothing in the application of the rules
of evidence shall apply so as to deny the admissibility of an
electronic record or electronic signature into evidence on the
sole ground that it is an electronic record or electronic
signature, or on the grounds that it is not in its original
form or is not an original. Information in the form of an
electronic record shall be given due evidentiary weight by the
trier of fact.
    (f) The Secretary may contract with a private contractor
to carry out the Secretary's duties under this Section.
(Source: P.A. 101-490, eff. 1-1-20.)
 
    (625 ILCS 5/3-100.2)
    Sec. 3-100.2. Electronic access; agreements with
submitters.
    (a) No later than July 1, 2022 2021, the Secretary of State
shall require a licensee under Chapter 3 or 5 of this Code to
submit any record required to be submitted to the Secretary of
State by using electronic media deemed feasible by the
Secretary of State. The Secretary of State may also require
the licensee to submit the original paper record. The
Secretary of State shall also require a person or licensee to
receive any record to be provided by the Secretary of State by
using electronic media deemed feasible by the Secretary of
State, instead of providing the original paper record.
    (b) No later than July 1, 2022 2021, electronic submittal,
receipt, and delivery of records and electronic signatures
shall be supported by a signed agreement between the Secretary
of State and the submitter. The agreement shall require, at a
minimum, each record to include all information necessary to
complete a transaction, certification by the submitter upon
its best knowledge as to the truthfulness of the data to be
submitted to the Secretary of State, and retention by the
submitter of supporting records.
    (c) No later than July 1, 2022 2021, the Secretary of State
shall establish minimum transaction volume levels, audit and
security standards, technological requirements, and other
terms and conditions he or she deems necessary for approval of
the electronic delivery process.
    (d) When an agreement is made to accept electronic
records, the Secretary of State shall not be required to
produce a written record for the submitter with whom the
Secretary of State has the agreement until requested to do so
by the submitter.
    (e) No later than July 1, 2022 2021, the Secretary of State
shall provide electronic notification to the lienholder
submitter to verify the notation and perfection of the
lienholder's security interest in a vehicle on the certificate
of title required to be created as an electronic record under
Section 3-100.1. Upon receipt of an electronic message from a
lienholder submitter with a security interest in a vehicle for
which the certificate of title is an electronic record that
the lien should be released, the Secretary of State shall
enter the appropriate electronic record of the release of lien
and print and mail a paper certificate of title to the owner or
lienholder at no expense. The Secretary of State may also mail
the certificate to any other person that delivers to the
Secretary of State an authorization from the owner to receive
the certificate. If another lienholder holds a properly
perfected security interest in the vehicle as reflected in the
records of the Secretary of State, the certificate shall be
delivered to that lienholder instead of the owner.
    (f) The Secretary may contract with a private contractor
to carry out the Secretary's duties under this Section.
(Source: P.A. 101-490, eff. 1-1-20.)
 
    (625 ILCS 5/3-104)  (from Ch. 95 1/2, par. 3-104)
    Sec. 3-104. Application for certificate of title.
    (a) The application for a certificate of title for a
vehicle in this State must be made by the owner to the
Secretary of State on the form prescribed and must contain:
        1. The name, Illinois residence, mail address, and, if
    available, email address of the owner;
        2. A description of the vehicle including, so far as
    the following data exists: Its make, year-model,
    identifying number, type of body, whether new or used, as
    to house trailers as defined in Section 1-128 of this
    Code, and as to manufactured homes as defined in Section
    1-144.03 of this Code, the square footage based upon the
    outside dimensions excluding the length of the tongue and
    hitch, and, as to vehicles of the second division, whether
    for-hire, not-for-hire, or both for-hire and not-for-hire;
        3. The date of purchase by applicant and, if
    applicable, the name and address of the person from whom
    the vehicle was acquired and the names and addresses of
    any lienholders in the order of their priority and
    signatures of owners;
        4. The current odometer reading at the time of
    transfer and that the stated odometer reading is one of
    the following: actual mileage, not the actual mileage or
    mileage is in excess of its mechanical limits; and
        5. Any further information the Secretary of State
    reasonably requires to identify the vehicle and to enable
    him to determine whether the owner is entitled to a
    certificate of title and the existence or nonexistence of
    security interests in the vehicle.
    (a-5) The Secretary of State shall designate on the
prescribed application form a space where the owner of a
vehicle may designate a beneficiary, to whom ownership of the
vehicle shall pass in the event of the owner's death.
    (b) If the application refers to a vehicle purchased from
a dealer, it must also be signed by the dealer as well as the
owner, and the dealer must promptly mail or deliver the
application and required documents to the Secretary of State.
    (c) If the application refers to a vehicle last previously
registered in another State or country, the application must
contain or be accompanied by:
        1. Any certified document of ownership so recognized
    and issued by the other State or country and acceptable to
    the Secretary of State, and
        2. Any other information and documents the Secretary
    of State reasonably requires to establish the ownership of
    the vehicle and the existence or nonexistence of security
    interests in it.
    (d) If the application refers to a new vehicle it must be
accompanied by the Manufacturer's Statement of Origin, or
other documents as required and acceptable by the Secretary of
State, with such assignments as may be necessary to show title
in the applicant.
    (e) If an application refers to a vehicle rebuilt from a
vehicle previously salvaged, that application shall comply
with the provisions set forth in Sections 3-302 through 3-304
of this Code.
    (f) An application for a certificate of title for any
vehicle, whether purchased in Illinois or outside Illinois,
and even if previously registered in another State, must be
accompanied by either an exemption determination from the
Department of Revenue showing that no tax imposed pursuant to
the Use Tax Act or the vehicle use tax imposed by Section
3-1001 of the Illinois Vehicle Code is owed by anyone with
respect to that vehicle, or a receipt from the Department of
Revenue showing that any tax so imposed has been paid. An
application for a certificate of title for any vehicle
purchased outside Illinois, even if previously registered in
another state, must be accompanied by either an exemption
determination from the Department of Revenue showing that no
tax imposed pursuant to the Municipal Use Tax Act or the County
Use Tax Act is owed by anyone with respect to that vehicle, or
a receipt from the Department of Revenue showing that any tax
so imposed has been paid. In the absence of such a receipt for
payment or determination of exemption from the Department, no
certificate of title shall be issued to the applicant.
    If the proof of payment of the tax or of nonliability
therefor is, after the issuance of the certificate of title
and display certificate of title, found to be invalid, the
Secretary of State shall revoke the certificate and require
that the certificate of title and, when applicable, the
display certificate of title be returned to him.
    (g) If the application refers to a vehicle not
manufactured in accordance with federal safety and emission
standards, the application must be accompanied by all
documents required by federal governmental agencies to meet
their standards before a vehicle is allowed to be issued title
and registration.
    (h) If the application refers to a vehicle sold at public
sale by a sheriff, it must be accompanied by the required fee
and a bill of sale issued and signed by a sheriff. The bill of
sale must identify the new owner's name and address, the year
model, make and vehicle identification number of the vehicle,
court order document number authorizing such sale, if
applicable, and the name and address of any lienholders in
order of priority, if applicable.
    (i) If the application refers to a vehicle for which a
court of law determined the ownership, it must be accompanied
with a certified copy of such court order and the required fee.
The court order must indicate the new owner's name and
address, the complete description of the vehicle, if known,
the name and address of the lienholder, if any, and must be
signed and dated by the judge issuing such order.
    (j) If the application refers to a vehicle sold at public
auction pursuant to the Labor and Storage Lien (Small Amount)
Act, it must be accompanied by an affidavit or affirmation
furnished by the Secretary of State along with the documents
described in the affidavit or affirmation and the required
fee.
    (k) The Secretary may provide an expedited process for the
issuance of vehicle titles. Expedited title applications must
be delivered to the Secretary of State's Vehicle Services
Department in Springfield by express mail service or hand
delivery. Applications must be complete, including necessary
forms, fees, and taxes. Applications received before noon on a
business day will be processed and shipped that same day.
Applications received after noon on a business day will be
processed and shipped the next business day. The Secretary
shall charge an additional fee of $30 for this service, and
that fee shall cover the cost of return shipping via an express
mail service. All fees collected by the Secretary of State for
expedited services shall be deposited into the Motor Vehicle
License Plate Fund. In the event the Vehicle Services
Department determines that the volume of expedited title
requests received on a given day exceeds the ability of the
Vehicle Services Department to process those requests in an
expedited manner, the Vehicle Services Department may decline
to provide expedited services, and the additional fee for the
expedited service shall be refunded to the applicant.
    (l) If the application refers to a homemade trailer, (i)
it must be accompanied by the appropriate documentation
regarding the source of materials used in the construction of
the trailer, as required by the Secretary of State, (ii) the
trailer must be inspected by a Secretary of State employee
prior to the issuance of the title, and (iii) upon approval of
the Secretary of State, the trailer must have a vehicle
identification number, as provided by the Secretary of State,
stamped or riveted to the frame.
    (m) The holder of a Manufacturer's Statement of Origin to
a manufactured home may deliver it to any person to facilitate
conveying or encumbering the manufactured home. Any person
receiving any such Manufacturer's Statement of Origin so
delivered holds it in trust for the person delivering it.
    (n) Within 45 days after the completion of the first
retail sale of a manufactured home, the Manufacturer's
Statement of Origin to that manufactured home must be
surrendered to the Secretary of State either in conjunction
with an application for a certificate of title for that
manufactured home or in accordance with Section 3-116.1.
    (o) Each application for certificate of title for a motor
vehicle shall be verified by the National Motor Vehicle Title
Information System (NMVTIS) for a vehicle history report prior
to the Secretary issuing a certificate of title.
    (p) The Secretary, at the Secretary's discretion, may use
any commercially available title history service to assist in
determining the proper title designation of a motor vehicle
before the issuance of a certificate of title.
(Source: P.A. 99-414, eff. 8-20-15; 100-145, eff. 1-1-18.)
 
    (625 ILCS 5/3-104.5)
    Sec. 3-104.5. Application NMVTIS warnings or errors.
    (a) Each application for a certificate of title or a
salvage certificate for a motor vehicle that is verified by
the National Motor Vehicle Title Information System (NMVTIS)
that is returned with a warning or error shall be reviewed by
the Secretary of State, or his or her designees, as to whether
the warning or error warrants a change to the type of title or
brand that is issued to a motor vehicle. If the Secretary needs
supplemental information to verify or corroborate the
information received from a NMVTIS report, then the Secretary
may use any available commercial title history services or
other Secretary of State resources to assist in determining
the vehicle's proper designation.
    (b) Any motor vehicle application for a certificate of
title or a salvage certificate that another state has
previously issued a title or brand indicating that the status
of the motor vehicle is equivalent to a junk vehicle, as
defined in Section 1-134.1 of this Code, shall receive a title
with a "prior out of state junk" brand if that history item was
issued 120 months or more before the date of the submission of
the current application for title.
    (c) Any motor vehicle application for a certificate of
title or a salvage certificate that is returned with a NMVTIS
warning or error indicating that another state has previously
issued a title or brand indicating the status of the motor
vehicle is equivalent to a junk vehicle, as defined in Section
1-134.1 of this Code, shall be issued a junk certificate that
reflects the motor vehicle's structural history, if the
previously issued title or brand from another state was issued
less than 120 months before the date of the submission of the
current application for title.
    (d) Any motor vehicle application for a certificate of
title or a salvage certificate that is returned with a NMVTIS
warning or error indicating a brand or label from another
jurisdiction, that does not have a similar or comparable brand
or label in this State, shall include a notation or brand on
the certificate of title stating "previously branded".
    (e) Any motor vehicle that is subject to the federal Truth
in Mileage Act, and is returned with a NMVTIS warning or error
indicating the stated mileage of the vehicle on the
application for certificate of title is 1,500 or fewer miles
less than a previously recorded mileage for the vehicle, shall
be deemed as having an acceptable margin of error and the
higher of the 2 figures shall be indicated on the new
certificate of title, if the previous mileage was recorded
within 90 days of the date of the current application for title
and if there are no indications of fraud or malfeasance, or of
altering or tampering with the odometer.
    (f) Any applicant for a certificate of title or a salvage
certificate who receives an alternative salvage or junk
certificate, or who receives a certificate of title with a
brand or label indicating the vehicle was previously rebuilt
prior out of state junk, previously branded, or flood, may
contest the Secretary's designations by requesting an
administrative hearing under Section 2-116 of this Code.
    (g) The Secretary may adopt any rules necessary to
implement this Section.
    (h) The Secretary, in the Secretary's discretion, may use
any commercially available title history service to assist in
determining the proper title designation of a motor vehicle
before the issuance of a certificate of title.
(Source: P.A. 99-414, eff. 8-20-15.)
 
    (625 ILCS 5/3-112.1)  (from Ch. 95 1/2, par. 3-112.1)
    Sec. 3-112.1. Odometer.
    (a) All titles issued by the Secretary of State beginning
January, 1990, shall provide for an odometer certification
substantially as follows:
    "I certify to the best of my knowledge that the odometer
reading is and reflects the actual mileage of the vehicle
unless one of the following statements is checked.
...................
    (  )  1. The mileage stated is in excess of its mechanical
limits.
    (  )  2. The odometer reading is not the actual mileage.
Warning - Odometer Discrepancy."
    (b) When executing any transfer of title which contains
the odometer certification as described in paragraph (a)
above, each transferor of a motor vehicle must supply on the
title form the following information:
        (1) The odometer reading at the time of transfer and
    an indication if the mileage is in excess of its
    mechanical limits or if it is not the actual mileage;
        (2) The date of transfer;
        (3) The transferor's printed name and signature; and
        (4) The transferee's printed name and address.
    (c) The transferee must sign on the title form indicating
that he or she is aware of the odometer certification made by
the transferor.
    (d) The transferor will not be required to disclose the
current odometer reading and the transferee will not have to
acknowledge such disclosure under the following circumstances:
        (1) A vehicle having a Gross Vehicle Weight Rating of
    more than 16,000 pounds;
        (2) A vehicle that is not self-propelled;
        (3) A vehicle that: is
            (A) before January 1, 2031, is model year 2010 or
        older; or
            (B) after January 1, 2031, is 20 10 years old or
        older;
        (4) A vehicle sold directly by the manufacturer to any
    agency of the United States; and
        (5) A vehicle manufactured without an odometer.
    (e) When the transferor signs the title transfer such
transferor acknowledges that he or she is aware that Federal
regulations and State law require him or her to state the
odometer mileage upon transfer of ownership. An inaccurate or
untruthful statement with intent to defraud subjects the
transferor to liability for damages to the transferee pursuant
to the federal Motor Vehicle Information and Cost Act of 1972,
P.L. 92-513 as amended by P.L. 94-364. No transferor shall be
liable for damages as provided under this Section who
transfers title to a motor vehicle which has an odometer
reading that has been altered or tampered with by a previous
owner, unless that transferor knew or had reason to know of
such alteration or tampering and sold such vehicle with an
intent to defraud. A cause of action is hereby created by which
any person who, with intent to defraud, violates any
requirement imposed under this Section shall be liable in an
amount equal to the sum of:
        (1) three times the amount of actual damages sustained
    or $1,500, whichever is the greater; and
        (2) in the case of any successful action to enforce
    the foregoing liability, the costs of the action together
    with reasonable attorney fees as determined by the court.
    Any recovery based on a cause of action under this Section
shall be offset by any recovery made pursuant to the federal
Motor Vehicle Information and Cost Savings Act of 1972.
    (f) The provisions of this Section shall not apply to any
motorcycle, motor driven cycle, moped, antique vehicle, or
expanded-use antique vehicle.
    (g) The Secretary of State may adopt rules and regulations
providing for a transition period for all non-conforming
titles.
(Source: P.A. 97-412, eff. 1-1-12.)
 
    (625 ILCS 5/3-113)  (from Ch. 95 1/2, par. 3-113)
    Sec. 3-113. Transfer to or from dealer; records.
    (a) After a dealer buys a vehicle and holds it for resale,
the dealer must procure the certificate of title from the
owner or the lienholder. The dealer may hold the certificate
until he or she transfers the vehicle to another person. Upon
transferring the vehicle to another person, the dealer shall
promptly and within 20 days execute the assignment and
warranty of title by a dealer, showing the names and addresses
of the transferee and of any lienholder holding a security
interest created or reserved at the time of the resale, in the
spaces provided therefor on the certificate or as the
Secretary of State prescribes, and mail or deliver the
certificate to the Secretary of State with the transferee's
application for a new certificate, except as provided in
Section 3-117.2. A dealer has complied with this Section if
the date of the mailing of the certificate, as indicated by the
postmark, is within 20 days of the date on which the vehicle
was transferred to another person.
    (b) The Secretary of State may decline to process any
application for a transfer of an interest in a vehicle if any
fees or taxes due under this Code from the transferor or the
transferee have not been paid upon reasonable notice and
demand.
    (c) Any person who violates this Section shall be guilty
of a petty offense.
    (d) Beginning January 1, 2014, the Secretary of State is
authorized to impose a delinquent vehicle dealer transfer fee
of $20 if the certificate of title is received by the Secretary
from the dealer 30 days but less than 60 days after the date of
sale. If the certificate of title is received by the Secretary
from the dealer 60 days but less than 90 days after the date of
sale, the delinquent dealer transfer fee shall be $35. If the
certificate of title is received by the Secretary from the
dealer 90 days but less than 120 days after the date of sale,
the delinquent vehicle dealer transfer fee shall be $65. If
the certificate of title is received by the Secretary from the
dealer 120 days or more after the date of the sale, the
delinquent vehicle dealer transfer fee shall be $100. All
monies collected under this subsection shall be deposited into
the CDLIS/AAMVAnet/NMVTIS Trust Fund.
    (e) Beginning January 1, 2022, the Secretary of State is
authorized to issue a certificate of title in the name of the
dealership to a licensed dealer under Chapter 5 for $20 if the
surrendered certificate of title has no space to assign the
certificate of title again.
    (f) Any licensee under Chapter 5 who sells, transfers, or
wholesales a vehicle out of State shall mail the certificate
of title to the physical business address in the requisite
jurisdiction in lieu of transferring title at the time of
sale.
(Source: P.A. 98-177, eff. 1-1-14.)
 
    (625 ILCS 5/3-209)  (from Ch. 95 1/2, par. 3-209)
    Sec. 3-209. Powers of Secretary of State.
    (a) The Secretary of State shall prescribe and provide
suitable forms of applications, certificates of title, notices
of security interests, and all other notices and forms
necessary to carry out the provisions of this chapter.
    (b) The Secretary of State may:
    1. Make necessary investigations to procure information
required to carry out the provisions of this Act. ;
    2. Assign a new identifying number to a vehicle if it has
none, or its identifying number is destroyed or obliterated,
or its motor is changed, and shall either issue a new
certificate of title showing the new identifying number or
make an appropriate endorsement on the original certificate.
    3. Remove a franchise affiliate's lien so that the
franchise affiliate may pursue the balance of the lien with
the defunct dealership instead of the constituent. This item
applies if a franchise dealer neglects to pay off a trade-in
vehicle's lien, and that lien is held by the franchise
affiliate. The Secretary shall make this determination
pursuant to an investigation by the Secretary of State
Department of Police.
(Source: P.A. 76-1586.)
 
    (625 ILCS 5/3-403)  (from Ch. 95 1/2, par. 3-403)
    Sec. 3-403. Trip and Short-term permits.
    (a) The Secretary of State may issue a short-term permit
to operate a nonregistered first or second division vehicle
within the State of Illinois for a period of not more than 7
days. Any second division vehicle operating on such permit may
operate only on empty weight. The fee for the short-term
permit shall be $6 for permits purchased on or before June 30,
2003 and $10 for permits purchased on or after July 1, 2003.
For short-term permits purchased on or after July 1, 2003, $4
of the fee collected for the purchase of each permit shall be
deposited into the General Revenue Fund.
    This permit may also be issued to operate an unladen
registered vehicle which is suspended under the Vehicle
Emissions Inspection Law and allow it to be driven on the roads
and highways of the State in order to be repaired or when
traveling travelling to and from an emissions inspection
station.
    (b) The Secretary of State may, subject to reciprocal
agreements, arrangements or declarations made or entered into
pursuant to Section 3-402, 3-402.4 or by rule, provide for and
issue registration permits for the use of Illinois highways by
vehicles of the second division on an occasional basis or for a
specific and special short-term use, in compliance with rules
and regulations promulgated by the Secretary of State, and
upon payment of the prescribed fee as follows:
    One-trip permits. A registration permit for one trip, or
one round-trip into and out of Illinois, for a period not to
exceed 72 consecutive hours or 3 calendar days may be
provided, for a fee as prescribed in Section 3-811.
    Three-month One-Month permits. A registration permit for
90 30 days may be provided for a fee of $13 for registration
plus 1/10 of the flat weight tax. The minimum fee for such
permit shall be $31.
    In-transit permits. A registration permit for one trip may
be provided for vehicles in transit by the driveaway or
towaway method and operated by a transporter in compliance
with the Illinois Motor Carrier of Property Law, for a fee as
prescribed in Section 3-811.
    Illinois Temporary Apportionment Authorization Permits. An
apportionment authorization permit for forty-five days for the
immediate operation of a vehicle upon application for and
prior to receiving apportioned credentials or interstate
credentials from the State of Illinois. The fee for such
permit shall be $3.
    Illinois Temporary Prorate Authorization Permit. A prorate
authorization permit for forty-five days for the immediate
operation of a vehicle upon application for and prior to
receiving prorate credentials or interstate credentials from
the State of Illinois. The fee for such permit shall be $3.
    (c) The Secretary of State shall promulgate by such rule
or regulation, schedules of fees and taxes for such permits
and in computing the amount or amounts due, may round off such
amount to the nearest full dollar amount.
    (d) The Secretary of State shall further prescribe the
form of application and permit and may require such
information and data as necessary and proper, including
confirming the status or identity of the applicant and the
vehicle in question.
    (e) Rules or regulations promulgated by the Secretary of
State under this Section shall provide for reasonable and
proper limitations and restrictions governing the application
for and issuance and use of permits, and shall provide for the
number of permits per vehicle or per applicant, so as to
preclude evasion of annual registration requirements as may be
required by this Act.
    (f) Any permit under this Section is subject to suspension
or revocation under this Act, and in addition, any such permit
is subject to suspension or revocation should the Secretary of
State determine that the vehicle identified in any permit
should be properly registered in Illinois. In the event any
such permit is suspended or revoked, the permit is then null
and void, may not be re-instated, nor is a refund therefor
available. The vehicle identified in such permit may not
thereafter be operated in Illinois without being properly
registered as provided in this Chapter.
(Source: P.A. 92-680, eff. 7-16-02; 93-32, eff. 7-1-03.)
 
    (625 ILCS 5/3-405.1)  (from Ch. 95 1/2, par. 3-405.1)
    Sec. 3-405.1. Application for vanity and personalized
license plates.
    (a) Vanity license plates mean any license plates,
assigned to a passenger motor vehicle of the first division,
to a motor vehicle of the second division registered at not
more than 8,000 pounds, to a trailer weighing 8,000 pounds or
less paying the flat weight tax, to a funeral home vehicle, an
electric vehicle, or to a recreational vehicle, which display
a registration number containing 1 to 7 letters and no numbers
or 1, 2, or 3 numbers and no letters as requested by the owner
of the vehicle and license plates issued to retired members of
Congress under Section 3-610.1 or to retired members of the
General Assembly as provided in Section 3-606.1. Personalized
license plates mean any license plates, assigned to a
passenger motor vehicle of the first division, to a motor
vehicle of the second division registered at not more than
8,000 pounds, to a trailer weighing 8,000 pounds or less
paying the flat weight tax, to a funeral home vehicle, an
electric vehicle, or to a recreational vehicle, which display
a registration number containing one of the following
combinations of letters and numbers, as requested by the owner
of the vehicle:
 
    Standard Passenger Plates
    First Division Vehicles
 
    1 letter plus 0-99
    2 letters plus 0-99
    3 letters plus 0-99
    4 letters plus 0-99
    5 letters plus 0-99
    6 letters plus 0-9
 
    Second Division Vehicles
    8,000 pounds or less, Trailers
    8,000 pounds or less paying the flat
    weight tax, and Recreation Vehicles
 
    0-999 plus 1 letter
    0-999 plus 2 letters
    0-999 plus 3 letters
    0-99 plus 4 letters
    0-9 plus 5 letters
    (b) For any registration period commencing after December
31, 2003, any person who is the registered owner of a passenger
motor vehicle of the first division, of a motor vehicle of the
second division registered at not more than 8,000 pounds, of a
trailer weighing 8,000 pounds or less paying the flat weight
tax, of a funeral home vehicle, of an electric vehicle, or of a
recreational vehicle registered with the Secretary of State or
who makes application for an original registration of such a
motor vehicle or renewal registration of such a motor vehicle
may, upon payment of a fee prescribed in Section 3-806.1 or
Section 3-806.5, apply to the Secretary of State for vanity or
personalized license plates.
    (c) Except as otherwise provided in this Chapter 3, vanity
and personalized license plates as issued under this Section
shall be the same color and design as other passenger vehicle
license plates or electric vehicle license plates and shall
not in any manner conflict with any other existing passenger,
commercial, trailer, motorcycle, or special license plate
series. However, special registration plates issued under
Sections 3-611 and 3-616 for vehicles operated by or for
persons with disabilities may also be vanity or personalized
license plates.
    (d) Vanity and personalized license plates shall be issued
only to the registered owner of the vehicle on which they are
to be displayed, except as provided in Sections 3-611 and
3-616 for special registration plates for vehicles operated by
or for persons with disabilities.
    (e) An applicant for the issuance of vanity or
personalized license plates or subsequent renewal thereof
shall file an application in such form and manner and by such
date as the Secretary of State may, in his discretion,
require.
    No vanity nor personalized license plates shall be
approved, manufactured, or distributed that contain any
characters, symbols other than the international accessibility
symbol for vehicles operated by or for persons with
disabilities, foreign words, or letters of punctuation.
    (f) Vanity and personalized license plates as issued
pursuant to this Act may be subject to the Staggered
Registration System as prescribed by the Secretary of State.
    (g) For purposes of this Section, "funeral home vehicle"
means any motor vehicle of the first division or motor vehicle
of the second division weighing 8,000 pounds or less that is
owned or leased by a funeral home.
    (h) As used in this Section, "electric vehicle" means any
vehicle that is required to be registered under Section 3-805.
(Source: P.A. 100-956, eff. 1-1-19.)
 
    (625 ILCS 5/3-506)
    Sec. 3-506. Transfer of plates to spouses of military
service members. Upon the death of a military service member
who has been issued a special plate under Section 3-609.1,
3-620, 3-621, 3-622, 3-623, 3-624, 3-625, 3-626, 3-628, 3-638,
3-642, 3-645, 3-647, 3-650, 3-651, 3-666, 3-667, 3-668, 3-669,
3-676, 3-677, 3-680, 3-681, 3-683, 3-686, 3-688, 3-693, 3-698,
3-699.12, 3-699.15, 3-699.16, or 3-699.17, 3-699.19, or
3-699.20 of this Code, the surviving spouse of that service
member may retain the plate so long as that spouse is a
resident of Illinois and transfers the registration to his or
her name within 180 days of the death of the service member.
    For the purposes of this Section, "service member" means
any individual who is serving or has served in any branch of
the United States Armed Forces, including the National Guard
or other reserve components of the Armed Forces, and has been
issued a special plate listed in this Section.
(Source: P.A. 100-201, eff. 8-18-17; 101-51, eff. 7-12-19.)
 
    (625 ILCS 5/3-802)  (from Ch. 95 1/2, par. 3-802)
    Sec. 3-802. Reclassifications and upgrades.
    (a) Definitions. For the purposes of this Section, the
following words shall have the meanings ascribed to them as
follows:
        "Reclassification" means changing the registration of
    a vehicle from one plate category to another.
        "Upgrade" means increasing the registered weight of a
    vehicle within the same plate category.
    (b) When reclassing the registration of a vehicle from one
plate category to another, the owner shall receive credit for
the unused portion of the present plate and be charged the
current portion fees for the new plate. In addition, the
appropriate replacement plate and replacement sticker fees
shall be assessed.
    (b-5) Beginning with the 2019 registration year, any
individual who has a registration issued under either Section
3-405 or 3-405.1 that qualifies for a special license plate
under Section 3-609, 3-609.1, 3-620, 3-621, 3-622, 3-623,
3-624, 3-625, 3-626, 3-628, 3-638, 3-642, 3-645, 3-647, 3-650,
3-651, 3-664, 3-666, 3-667, 3-668, 3-669, 3-676, 3-677, 3-680,
3-681, 3-683, 3-686, 3-688, 3-693, 3-698, 3-699.12, 3-699.15,
3-699.16, 3-699.17, 3-699.19, or 3-699.20 or 3-699.17 may
reclass his or her registration upon acquiring a special
license plate listed in this subsection (b-5) without a
replacement plate or digital plate fee or registration sticker
or digital registration sticker cost.
    (b-10) Beginning with the 2019 registration year, any
individual who has a special license plate issued under
Section 3-609, 3-609.1, 3-620, 3-621, 3-622, 3-623, 3-624,
3-625, 3-626, 3-628, 3-638, 3-642, 3-645, 3-647, 3-650, 3-651,
3-664, 3-666, 3-667, 3-668, 3-669, 3-676, 3-677, 3-680, 3-681,
3-683, 3-686, 3-688, 3-693, 3-698, 3-699.12, or 3-699.17 may
reclass his or her special license plate upon acquiring a new
registration under Section 3-405 or 3-405.1 without a
replacement plate or digital plate fee or registration sticker
or digital registration sticker cost.
    (c) When upgrading the weight of a registration within the
same plate category, the owner shall pay the difference in
current period fees between the 2 two plates. In addition, the
appropriate replacement plate and replacement sticker fees
shall be assessed. In the event new plates are not required,
the corrected registration card fee shall be assessed.
    (d) In the event the owner of the vehicle desires to change
the registered weight and change the plate category, the owner
shall receive credit for the unused portion of the
registration fee of the current plate and pay the current
portion of the registration fee for the new plate, and in
addition, pay the appropriate replacement plate and
replacement sticker fees.
    (e) Reclassing from one plate category to another plate
category can be done only once within any registration period.
    (f) No refunds shall be made in any of the circumstances
found in subsection (b), subsection (c), or subsection (d);
however, when reclassing from a flat weight plate to an
apportioned plate, a refund may be issued if the credit
amounts to an overpayment.
    (g) In the event the registration of a vehicle registered
under the mileage tax option is revoked, the owner shall be
required to pay the annual registration fee in the new plate
category and shall not receive any credit for the mileage
plate fees.
    (h) Certain special interest plates may be displayed on
first division vehicles, second division vehicles weighing
8,000 pounds or less, and recreational vehicles. Those plates
can be transferred within those vehicle groups.
    (i) Plates displayed on second division vehicles weighing
8,000 pounds or less and passenger vehicle plates may be
reclassed from one division to the other.
    (j) Other than in subsection (i), reclassing from one
division to the other division is prohibited. In addition, a
reclass from a motor vehicle to a trailer or a trailer to a
motor vehicle is prohibited.
(Source: P.A. 100-246, eff. 1-1-18; 100-450, eff. 1-1-18;
100-863, eff. 8-14-18; 101-51, eff. 7-12-19; 101-395, eff.
8-16-19; revised 9-24-19.)
 
    (625 ILCS 5/3-805)  (from Ch. 95 1/2, par. 3-805)
    Sec. 3-805. Electric vehicles.
    (a) The Until January 1, 2020, the owner of a motor vehicle
of the first division or a motor vehicle of the second division
weighing 8,000 pounds or less propelled by an electric engine
and not utilizing motor fuel, may register such vehicle for a
fee not to exceed $35 for a 2-year registration period. The
Secretary may, in his discretion, prescribe that electric
vehicle registration plates be issued for an indefinite term,
such term to correspond to the term of registration plates
issued generally, as provided in Section 3-414.1. In no event
may the registration fee for electric vehicles exceed $18 per
registration year. Beginning on January 1, 2020, the
registration fee for these vehicles shall be equal to the fee
set forth in Section 3-806 for motor vehicles of the first
division, other than Autocycles, Motorcycles, Motor Driven
Cycles, and Pedalcycles. In addition to the registration fees,
the Secretary shall assess an additional $100 per year in lieu
of the payment of motor fuel taxes. $1 of the additional fees
shall be deposited into the Secretary of State Special
Services Fund and the remainder of the additional fees shall
be deposited into the Road Fund.
    (b) Beginning with the 2023 registration year, upon the
request of the vehicle owner, an electric vehicle owner may
register an electric vehicle with any qualifying registration
issued under this Chapter, and an additional $100 surcharge
shall be collected in addition to the applicable registration
fee. The $100 additional fee is to identify the vehicle as an
electric vehicle. The $100 additional fee is an annual, flat
fee that shall be based on an applicant's new or existing
registration year for the vehicle's corresponding weight
category. A designation as an electric vehicle under this
subsection shall not alter a vehicle's registration. Of the
additional fees, $1 shall be deposited into the Secretary of
State Special Services Fund, and the remainder of the
additional fees shall be deposited into the Road Fund. The
Secretary shall adopt any rules necessary to implement this
subsection (b).
(Source: P.A. 101-32, eff. 6-28-19.)
 
    (625 ILCS 5/3-806.1)  (from Ch. 95 1/2, par. 3-806.1)
    Sec. 3-806.1. Additional fees for vanity license plates.
In addition to the regular registration fee or electric
vehicle registration fee, an applicant for a vanity license
plate, other than a vanity plate in any military series or a
vanity plate issued under Section 3-664, shall be charged $94
for each set of vanity license plates issued to a vehicle of
the first division or a vehicle of the second division
registered at not more than 8,000 pounds or to a recreational
vehicle and $50 for each set of vanity plates issued to an
autocycle or motorcycle. In addition to the regular renewal
fee or electric vehicle registration renewal fee, an applicant
for a vanity plate, other than a vanity plate in any military
series or a vanity plate issued under Section 3-664, shall be
charged $13 for the renewal of each set of vanity license
plates. There shall be no additional fees for a vanity license
plate in any military series of plates or a vanity plate issued
under Section 3-664.
(Source: P.A. 98-777, eff. 1-1-15.)
 
    (625 ILCS 5/3-806.5)
    Sec. 3-806.5. Additional fees for personalized license
plates. For registration periods commencing after December 31,
2003, in addition to the regular registration fee or electric
vehicle registration fee, an applicant for a personalized
license plate, other than a personalized plate in any military
series or a personalized plate issued under Section 3-664,
shall be charged $47 for each set of personalized license
plates issued to a vehicle of the first division or a vehicle
of the second division registered at not more than 8,000
pounds or to a recreational vehicle and $25 for each set of
personalized plates issued to an autocycle or motorcycle. In
addition to the regular renewal fee or electric vehicle
registration renewal fee, an applicant for a personalized
plate other than a personalized plate in any military series
or a personalized plate issued under Section 3-664, shall be
charged $7 for the renewal of each set of personalized license
plates. There shall be no additional fees charged for a
personalized plate in any military series of plates or a
personalized plate issued under Section 3-664. Of the money
received by the Secretary of State as additional fees for
personalized license plates, 50% shall be deposited into the
Secretary of State Special License Plate Fund and 50% shall be
deposited into the General Revenue Fund.
(Source: P.A. 98-777, eff. 1-1-15.)
 
    (625 ILCS 5/5-100)  (from Ch. 95 1/2, par. 5-100)
    Sec. 5-100. Definitions. For the purposes of this Chapter,
the following words shall have the meanings ascribed to them
as follows:
    "Additional place of business" means a place owned or
leased and occupied by the dealer in addition to its
established place of business, at which the dealer conducts or
intends to conduct business on a permanent or long term basis.
The term does not include an area where an off site sale or
exhibition is conducted. The Secretary of State shall adopt
guidelines for the administration and enforcement of this
definition by rule.
    "Display exhibition" means a temporary display of vehicles
by a dealer licensed under Section 5-101 or 5-102, at a
location at which no vehicles are offered for sale, that is
conducted at a place other than the dealer's established and
additional places of business.
    "Established place of business" means the place owned or
leased and occupied by any person duly licensed or required to
be licensed as a dealer for the purpose of engaging in selling,
buying, bartering, displaying, exchanging or dealing in, on
consignment or otherwise, vehicles and their essential parts
and for such other ancillary purposes as may be permitted by
the Secretary by rule. It shall include an office in which the
dealer's records shall be separate and distinct from any other
business or tenant which may occupy space in the same building
except as provided in Section 5-101.1. This office shall not
be located in a house trailer, residence, tent, temporary
stand, temporary address, room or rooms in a hotel or rooming
house, nor the premises occupied by a single or multiple unit
residence. "Established place of business" only includes a
place with an outdoor lot capable of parking at least 5
vehicles or an indoor lot with space for a minimum of one
vehicle to be parked in its indoor showroom. The established
place of business of a scrap processor shall be the fixed
location where the scrap processor maintains its principal
place of business. The Secretary of State shall, by rule and
regulation, adopt guidelines for the administration and
enforcement of this definition, such as, but not limited to
issues concerning the required hours of operation, describing
where vehicles are displayed and offered for sale, where books
and records are maintained and requirements for the
fulfillment of warranties. A dealer may have an additional
place of business as defined under this Section.
    "Motor vehicle financing affiliate" means a business
organization registered to do business in Illinois that,
pursuant to a written contract with either (1) a single new or
used motor vehicle dealer or (2) a single group of new or used
motor vehicle dealers that share a common ownership within the
group, purchases new or used motor vehicles on behalf of the
dealer or group of dealers and then sells, transfers, or
assigns those motor vehicles to the dealer or group of
dealers. The motor vehicle financing affiliate must be
incorporated or organized solely to purchase new or used
vehicles on behalf of the new or used motor vehicle dealer or
group of dealers with which it has contracted, shall not sell
motor vehicles at retail, shall perform only those business
functions related to the purchasing of motor vehicles and
selling, transferring, or assigning those motor vehicles to
the dealer or group of dealers. The motor vehicle financing
affiliate must be licensed under the provisions of Section
5-101.1 and must not be licensed as a new or used motor vehicle
dealer.
    "Off site sale" means the temporary display and sale of
vehicles, for a period of not more than 7 calendar days
(excluding Sundays), by a dealer licensed under Section 5-101
or 5-102 at a place other than the dealer's established and
additional places of business.
    "Relevant market area", for a new vehicle dealer licensed
under Section 5-101 and for a used vehicle dealer licensed
under Section 5-102, means the area within 10 miles of the
established or additional place of business of the dealer
located in a county with a population of 300,000 or more, or
within 15 miles if the established place of business is
located in a county with a population of less than 300,000.
    "Trade show exhibition" means a temporary display of
vehicles, by dealers licensed under Section 5-101 or 5-102, or
any other person as defined in subsection (c) of Section
5-102.1, at a location at which no vehicles are offered for
sale that is conducted at a place other than the dealer's
established and additional places of business. In order for a
display exhibition to be considered a trade show exhibition,
it must be participated in by at least 3 dealers, 2 of which
must be licensed under Section 5-101 or 5-102; and a trade show
exhibition of new vehicles shall only be participated in by
licensed new vehicle dealers at least 2 of which must be
licensed under Section 5-101.
(Source: P.A. 90-89, eff. 1-1-98; 91-415, eff. 1-1-00.)
 
    (625 ILCS 5/5-101)  (from Ch. 95 1/2, par. 5-101)
    Sec. 5-101. New vehicle dealers must be licensed.
    (a) No person shall engage in this State in the business of
selling or dealing in, on consignment or otherwise, new
vehicles of any make, or act as an intermediary or agent or
broker for any licensed dealer or vehicle purchaser other than
as a salesperson, or represent or advertise that he is so
engaged or intends to so engage in such business unless
licensed to do so in writing by the Secretary of State under
the provisions of this Section.
    (b) An application for a new vehicle dealer's license
shall be filed with the Secretary of State, duly verified by
oath, on such form as the Secretary of State may by rule or
regulation prescribe and shall contain:
        1. The name and type of business organization of the
    applicant and his established and additional places of
    business, if any, in this State.
        2. If the applicant is a corporation, a list of its
    officers, directors, and shareholders having a ten percent
    or greater ownership interest in the corporation, setting
    forth the residence address of each; if the applicant is a
    sole proprietorship, a partnership, an unincorporated
    association, a trust, or any similar form of business
    organization, the name and residence address of the
    proprietor or of each partner, member, officer, director,
    trustee, or manager.
        3. The make or makes of new vehicles which the
    applicant will offer for sale at retail in this State.
        4. The name of each manufacturer or franchised
    distributor, if any, of new vehicles with whom the
    applicant has contracted for the sale of such new
    vehicles. As evidence of this fact, the application shall
    be accompanied by a signed statement from each such
    manufacturer or franchised distributor. If the applicant
    is in the business of offering for sale new conversion
    vehicles, trucks or vans, except for trucks modified to
    serve a special purpose which includes but is not limited
    to the following vehicles: street sweepers, fertilizer
    spreaders, emergency vehicles, implements of husbandry or
    maintenance type vehicles, he must furnish evidence of a
    sales and service agreement from both the chassis
    manufacturer and second stage manufacturer.
        5. A statement that the applicant has been approved
    for registration under the Retailers' Occupation Tax Act
    by the Department of Revenue: Provided that this
    requirement does not apply to a dealer who is already
    licensed hereunder with the Secretary of State, and who is
    merely applying for a renewal of his license. As evidence
    of this fact, the application shall be accompanied by a
    certification from the Department of Revenue showing that
    that Department has approved the applicant for
    registration under the Retailers' Occupation Tax Act.
        6. A statement that the applicant has complied with
    the appropriate liability insurance requirement. A
    Certificate of Insurance in a solvent company authorized
    to do business in the State of Illinois shall be included
    with each application covering each location at which he
    proposes to act as a new vehicle dealer. The policy must
    provide liability coverage in the minimum amounts of
    $100,000 for bodily injury to, or death of, any person,
    $300,000 for bodily injury to, or death of, two or more
    persons in any one accident, and $50,000 for damage to
    property. Such policy shall expire not sooner than
    December 31 of the year for which the license was issued or
    renewed. The expiration of the insurance policy shall not
    terminate the liability under the policy arising during
    the period for which the policy was filed. Trailer and
    mobile home dealers are exempt from this requirement.
        If the permitted user has a liability insurance policy
    that provides automobile liability insurance coverage of
    at least $100,000 for bodily injury to or the death of any
    person, $300,000 for bodily injury to or the death of any 2
    or more persons in any one accident, and $50,000 for
    damage to property, then the permitted user's insurer
    shall be the primary insurer and the dealer's insurer
    shall be the secondary insurer. If the permitted user does
    not have a liability insurance policy that provides
    automobile liability insurance coverage of at least
    $100,000 for bodily injury to or the death of any person,
    $300,000 for bodily injury to or the death of any 2 or more
    persons in any one accident, and $50,000 for damage to
    property, or does not have any insurance at all, then the
    dealer's insurer shall be the primary insurer and the
    permitted user's insurer shall be the secondary insurer.
        When a permitted user is "test driving" a new vehicle
    dealer's automobile, the new vehicle dealer's insurance
    shall be primary and the permitted user's insurance shall
    be secondary.
        As used in this paragraph 6, a "permitted user" is a
    person who, with the permission of the new vehicle dealer
    or an employee of the new vehicle dealer, drives a vehicle
    owned and held for sale or lease by the new vehicle dealer
    which the person is considering to purchase or lease, in
    order to evaluate the performance, reliability, or
    condition of the vehicle. The term "permitted user" also
    includes a person who, with the permission of the new
    vehicle dealer, drives a vehicle owned or held for sale or
    lease by the new vehicle dealer for loaner purposes while
    the user's vehicle is being repaired or evaluated.
        As used in this paragraph 6, "test driving" occurs
    when a permitted user who, with the permission of the new
    vehicle dealer or an employee of the new vehicle dealer,
    drives a vehicle owned and held for sale or lease by a new
    vehicle dealer that the person is considering to purchase
    or lease, in order to evaluate the performance,
    reliability, or condition of the vehicle.
        As used in this paragraph 6, "loaner purposes" means
    when a person who, with the permission of the new vehicle
    dealer, drives a vehicle owned or held for sale or lease by
    the new vehicle dealer while the user's vehicle is being
    repaired or evaluated.
        7. (A) An application for a new motor vehicle dealer's
    license shall be accompanied by the following license
    fees:
            (i) $1,000 for applicant's established place of
        business, and $100 for each additional place of
        business, if any, to which the application pertains;
        but if the application is made after June 15 of any
        year, the license fee shall be $500 for applicant's
        established place of business plus $50 for each
        additional place of business, if any, to which the
        application pertains. License fees shall be returnable
        only in the event that the application is denied by the
        Secretary of State. All moneys received by the
        Secretary of State as license fees under this
        subparagraph (i) prior to applications for the 2004
        licensing year shall be deposited into the Motor
        Vehicle Review Board Fund and shall be used to
        administer the Motor Vehicle Review Board under the
        Motor Vehicle Franchise Act. Of the money received by
        the Secretary of State as license fees under this
        subparagraph (i) for the 2004 licensing year and
        thereafter, 10% shall be deposited into the Motor
        Vehicle Review Board Fund and shall be used to
        administer the Motor Vehicle Review Board under the
        Motor Vehicle Franchise Act and 90% shall be deposited
        into the General Revenue Fund.
            (ii) Except for dealers selling 25 or fewer
        automobiles or as provided in subsection (h) of
        Section 5-102.7 of this Code, an Annual Dealer
        Recovery Fund Fee in the amount of $500 for the
        applicant's established place of business, and $50 for
        each additional place of business, if any, to which
        the application pertains; but if the application is
        made after June 15 of any year, the fee shall be $250
        for the applicant's established place of business plus
        $25 for each additional place of business, if any, to
        which the application pertains. For a license renewal
        application, the fee shall be based on the amount of
        automobiles sold in the past year according to the
        following formula:
                (1) $0 for dealers selling 25 or less
            automobiles;
                (2) $150 for dealers selling more than 25 but
            less than 200 automobiles;
                (3) $300 for dealers selling 200 or more
            automobiles but less than 300 automobiles; and
                (4) $500 for dealers selling 300 or more
            automobiles.
            License fees shall be returnable only in the event
        that the application is denied by the Secretary of
        State. Moneys received under this subparagraph (ii)
        shall be deposited into the Dealer Recovery Trust
        Fund.
        (B) An application for a new vehicle dealer's license,
    other than for a new motor vehicle dealer's license, shall
    be accompanied by the following license fees:
            (i) $1,000 for applicant's established place of
        business, and $50 for each additional place of
        business, if any, to which the application pertains;
        but if the application is made after June 15 of any
        year, the license fee shall be $500 for applicant's
        established place of business plus $25 for each
        additional place of business, if any, to which the
        application pertains. License fees shall be returnable
        only in the event that the application is denied by the
        Secretary of State. Of the money received by the
        Secretary of State as license fees under this
        subparagraph (i) for the 2004 licensing year and
        thereafter, 95% shall be deposited into the General
        Revenue Fund.
            (ii) Except as provided in subsection (h) of
        Section 5-102.7 of this Code, an Annual Dealer
        Recovery Fund Fee in the amount of $500 for the
        applicant's established place of business, and $50 for
        each additional place of business, if any, to which
        the application pertains; but if the application is
        made after June 15 of any year, the fee shall be $250
        for the applicant's established place of business plus
        $25 for each additional place of business, if any, to
        which the application pertains. License fees shall be
        returnable only in the event that the application is
        denied by the Secretary of State. Moneys received
        under this subparagraph (ii) shall be deposited into
        the Dealer Recovery Trust Fund.
        8. A statement that the applicant's officers,
    directors, shareholders having a 10% or greater ownership
    interest therein, proprietor, a partner, member, officer,
    director, trustee, manager or other principals in the
    business have not committed in the past 3 years any one
    violation as determined in any civil, criminal or
    administrative proceedings of any one of the following
    Acts:
            (A) The Anti-Theft Laws of the Illinois Vehicle
        Code;
            (B) The Certificate of Title Laws of the Illinois
        Vehicle Code;
            (C) The Offenses against Registration and
        Certificates of Title Laws of the Illinois Vehicle
        Code;
            (D) The Dealers, Transporters, Wreckers and
        Rebuilders Laws of the Illinois Vehicle Code;
            (E) Section 21-2 of the Criminal Code of 1961 or
        the Criminal Code of 2012, Criminal Trespass to
        Vehicles; or
            (F) The Retailers' Occupation Tax Act.
        9. A statement that the applicant's officers,
    directors, shareholders having a 10% or greater ownership
    interest therein, proprietor, partner, member, officer,
    director, trustee, manager or other principals in the
    business have not committed in any calendar year 3 or more
    violations, as determined in any civil, criminal or
    administrative proceedings, of any one or more of the
    following Acts:
            (A) The Consumer Finance Act;
            (B) The Consumer Installment Loan Act;
            (C) The Retail Installment Sales Act;
            (D) The Motor Vehicle Retail Installment Sales
        Act;
            (E) The Interest Act;
            (F) The Illinois Wage Assignment Act;
            (G) Part 8 of Article XII of the Code of Civil
        Procedure; or
            (H) The Consumer Fraud Act.
        9.5. A statement that, within 10 years of application,
    each officer, director, shareholder having a 10% or
    greater ownership interest therein, proprietor, partner,
    member, officer, director, trustee, manager, or other
    principal in the business of the applicant has not
    committed, as determined in any civil, criminal, or
    administrative proceeding, in any calendar year one or
    more forcible felonies under the Criminal Code of 1961 or
    the Criminal Code of 2012, or a violation of either or both
    Article 16 or 17 of the Criminal Code of 1961 or a
    violation of either or both Article 16 or 17 of the
    Criminal Code of 2012, Article 29B of the Criminal Code of
    1961 or the Criminal Code of 2012, or a similar
    out-of-state offense. For the purposes of this paragraph,
    "forcible felony" has the meaning provided in Section 2-8
    of the Criminal Code of 2012.
        10. A bond or certificate of deposit in the amount of
    $50,000 for each location at which the applicant intends
    to act as a new vehicle dealer. The bond shall be for the
    term of the license, or its renewal, for which application
    is made, and shall expire not sooner than December 31 of
    the year for which the license was issued or renewed. The
    bond shall run to the People of the State of Illinois, with
    surety by a bonding or insurance company authorized to do
    business in this State. It shall be conditioned upon the
    proper transmittal of all title and registration fees and
    taxes (excluding taxes under the Retailers' Occupation Tax
    Act) accepted by the applicant as a new vehicle dealer.
        11. Such other information concerning the business of
    the applicant as the Secretary of State may by rule or
    regulation prescribe.
        12. A statement that the applicant understands Chapter
    1 through Chapter 5 of this Code.
        13. The full name, address, and contact information of
    each of the dealer's agents or legal representatives who
    is an Illinois resident and liable for the performance of
    the dealership.
    (c) Any change which renders no longer accurate any
information contained in any application for a new vehicle
dealer's license shall be amended within 30 days after the
occurrence of such change on such form as the Secretary of
State may prescribe by rule or regulation, accompanied by an
amendatory fee of $2.
    (d) Anything in this Chapter 5 to the contrary
notwithstanding no person shall be licensed as a new vehicle
dealer unless:
        1. He is authorized by contract in writing between
    himself and the manufacturer or franchised distributor of
    such make of vehicle to so sell the same in this State, and
        2. Such person shall maintain an established place of
    business as defined in this Act.
    (e) The Secretary of State shall, within a reasonable time
after receipt, examine an application submitted to him under
this Section and unless he makes a determination that the
application submitted to him does not conform with the
requirements of this Section or that grounds exist for a
denial of the application, under Section 5-501 of this
Chapter, grant the applicant an original new vehicle dealer's
license in writing for his established place of business and a
supplemental license in writing for each additional place of
business in such form as he may prescribe by rule or regulation
which shall include the following:
        1. The name of the person licensed;
        2. If a corporation, the name and address of its
    officers or if a sole proprietorship, a partnership, an
    unincorporated association or any similar form of business
    organization, the name and address of the proprietor or of
    each partner, member, officer, director, trustee or
    manager;
        3. In the case of an original license, the established
    place of business of the licensee;
        4. In the case of a supplemental license, the
    established place of business of the licensee and the
    additional place of business to which such supplemental
    license pertains;
        5. The make or makes of new vehicles which the
    licensee is licensed to sell; .
        6. The full name, address, and contact information of
    each of the dealer's agents or legal representatives who
    is an Illinois resident and liable for the performance of
    the dealership.
    (f) The appropriate instrument evidencing the license or a
certified copy thereof, provided by the Secretary of State,
shall be kept posted conspicuously in the established place of
business of the licensee and in each additional place of
business, if any, maintained by such licensee.
    (g) Except as provided in subsection (h) hereof, all new
vehicle dealer's licenses granted under this Section shall
expire by operation of law on December 31 of the calendar year
for which they are granted unless sooner revoked or cancelled
under the provisions of Section 5-501 of this Chapter.
    (h) A new vehicle dealer's license may be renewed upon
application and payment of the fee required herein, and
submission of proof of coverage under an approved bond under
the Retailers' Occupation Tax Act or proof that applicant is
not subject to such bonding requirements, as in the case of an
original license, but in case an application for the renewal
of an effective license is made during the month of December,
the effective license shall remain in force until the
application is granted or denied by the Secretary of State.
    (i) All persons licensed as a new vehicle dealer are
required to furnish each purchaser of a motor vehicle:
        1. In the case of a new vehicle a manufacturer's
    statement of origin and in the case of a used motor vehicle
    a certificate of title, in either case properly assigned
    to the purchaser;
        2. A statement verified under oath that all
    identifying numbers on the vehicle agree with those on the
    certificate of title or manufacturer's statement of
    origin;
        3. A bill of sale properly executed on behalf of such
    person;
        4. A copy of the Uniform Invoice-transaction reporting
    return referred to in Section 5-402 hereof;
        5. In the case of a rebuilt vehicle, a copy of the
    Disclosure of Rebuilt Vehicle Status; and
        6. In the case of a vehicle for which the warranty has
    been reinstated, a copy of the warranty.
    (j) Except at the time of sale or repossession of the
vehicle, no person licensed as a new vehicle dealer may issue
any other person a newly created key to a vehicle unless the
new vehicle dealer makes a color photocopy or electronic scan
of the driver's license or State identification card of the
person requesting or obtaining the newly created key. The new
vehicle dealer must retain the photocopy or scan for 30 days.
    A new vehicle dealer who violates this subsection (j) is
guilty of a petty offense. Violation of this subsection (j) is
not cause to suspend, revoke, cancel, or deny renewal of the
new vehicle dealer's license.
    This amendatory Act of 1983 shall be applicable to the
1984 registration year and thereafter.
    (k) If a licensee under this Section voluntarily
surrenders a license to the Illinois Secretary of State Police
or a representative of the Secretary of State Vehicle Services
Department due to the licensee's inability to adhere to
recordkeeping provisions, or the inability to properly issue
certificates of title or registrations under this Code, or the
Secretary revokes a license under this Section, then the
licensee and the licensee's agent, designee, or legal
representative, if applicable, may not be named on a new
application for a licensee under this Section or under this
Chapter, nor is the licensee or the licensee's agent,
designee, or legal representative permitted to work for
another licensee under this Chapter in a recordkeeping,
management, or financial position or as an employee who
handles certificate of title and registration documents and
applications.
(Source: P.A. 100-450, eff. 1-1-18; 100-956, eff. 1-1-19;
101-505, eff. 1-1-20.)
 
    (625 ILCS 5/5-101.1)
    Sec. 5-101.1. Motor vehicle financing affiliates;
licensing.
    (a) In this State no business shall engage in the business
of a motor vehicle financing affiliate without a license to do
so in writing from the Secretary of State.
    (b) An application for a motor vehicle financing
affiliate's license must be filed with the Secretary of State,
duly verified by oath, on a form prescribed by the Secretary of
State and shall contain all of the following:
        (1) The name and type of business organization of the
    applicant and the applicant's established place of
    business and any additional places of business in this
    State.
        (2) The name and address of the licensed new or used
    vehicle dealer to which the applicant will be selling,
    transferring, or assigning new or used motor vehicles
    pursuant to a written contract. If more than one dealer is
    on the application, the applicant shall state in writing
    the basis of common ownership among the dealers.
        (3) A list of the business organization's officers,
    directors, members, and shareholders having a 10% or
    greater ownership interest in the business, providing the
    residential address for each person listed.
        (4) If selling, transferring, or assigning new motor
    vehicles, the make or makes of new vehicles that it will
    sell, assign, or otherwise transfer to the contracting new
    motor vehicle dealer listed on the application pursuant to
    paragraph (2).
        (5) The name of each manufacturer or franchised
    distributor, if any, of new vehicles with whom the
    applicant has contracted for the sale of new vehicles and
    a signed statement from each manufacturer or franchised
    distributor acknowledging the contract.
        (6) A statement that the applicant has been approved
    for registration under the Retailers' Occupation Tax Act
    by the Department of Revenue. This requirement does not
    apply to a motor vehicle financing affiliate that is
    already licensed with the Secretary of State and is
    applying for a renewal of its license.
        (7) A statement that the applicant has complied with
    the appropriate liability insurance requirement and a
    Certificate of Insurance that shall not expire before
    December 31 of the year for which the license was issued or
    renewed with a minimum liability coverage of $100,000 for
    the bodily injury or death of any person, $300,000 for the
    bodily injury or death of 2 or more persons in any one
    accident, and $50,000 for damage to property. The
    expiration of the insurance policy shall not terminate the
    liability under the policy arising during the period for
    which the policy was filed. Trailer and mobile home
    dealers are exempt from the requirements of this
    paragraph. A motor vehicle financing affiliate is exempt
    from the requirements of this paragraph if it is covered
    by the insurance policy of the new or used dealer listed on
    the application pursuant to paragraph (2).
        (8) A license fee of $1,000 for the applicant's
    established place of business and $250 for each additional
    place of business, if any, to which the application
    pertains. However, if the application is made after June
    15 of any year, the license fee shall be $500 for the
    applicant's established place of business and $125 for
    each additional place of business, if any, to which the
    application pertains. These license fees shall be
    returnable only in the event that the application is
    denied by the Secretary of State.
        (9) A statement incorporating the requirements of
    paragraphs 8 and 9 of subsection (b) of Section 5-101.
        (10) Any other information concerning the business of
    the applicant as the Secretary of State may prescribe.
        (11) A statement that the applicant understands
    Chapter 1 through Chapter 5 of this Code.
        (12) The full name, address, and contact information
    of each of the dealer's agents or legal representatives
    who is an Illinois resident and liable for the performance
    of the dealership.
    (c) Any change which renders no longer accurate any
information contained in any application for a motor vehicle
financing affiliate's license shall be amended within 30 days
after the occurrence of the change on a form prescribed by the
Secretary of State, accompanied by an amendatory fee of $2.
    (d) If a new vehicle dealer is not listed on the
application, pursuant to paragraph (2) of subsection (b), the
motor vehicle financing affiliate shall not receive, possess,
or transfer any new vehicle. If a new motor vehicle dealer is
listed on the application, pursuant to paragraph (2) of
subsection (b), the new motor vehicle dealer can only receive
those new cars it is permitted to receive under its franchise
agreement. If both a new and used motor vehicle dealer are
listed on the application, pursuant to paragraph (2) of
subsection (b), only the new motor vehicle dealer may receive
new motor vehicles. If a used motor vehicle is listed on the
application, pursuant to paragraph (2) of subsection (b), the
used motor vehicle dealer shall not receive any new motor
vehicles.
    (e) The applicant and dealer provided pursuant to
paragraph (2) of subsection (b) must be business organizations
registered to conduct business in Illinois. Three-fourths of
the dealer's board of directors must be members of the motor
vehicle financing affiliate's board of directors, if
applicable.
    (f) Unless otherwise provided in this Chapter 5, no
business organization registered to do business in Illinois
shall be licensed as a motor vehicle financing affiliate
unless:
        (1) The motor vehicle financing affiliate shall only
    sell, transfer, or assign motor vehicles to the licensed
    new or used dealer listed on the application pursuant to
    paragraph (2) of subsection (b).
        (2) The motor vehicle financing affiliate sells,
    transfers, or assigns to the new motor vehicle dealer
    listed on the application, if any, only those new motor
    vehicles the motor vehicle financing affiliate has
    received under the contract set forth in paragraph (5) of
    subsection (b).
        (3) Any new vehicle dealer listed pursuant to
    paragraph (2) of subsection (b) has a franchise agreement
    that permits the dealer to receive motor vehicles from the
    motor vehicle franchise affiliate.
        (4) The new or used motor vehicle dealer listed on the
    application pursuant to paragraph (2) of subsection (b)
    has one established place of business or supplemental
    places of business as referenced in subsection (g).
    (g) The Secretary of State shall, within a reasonable time
after receipt, examine an application submitted pursuant to
this Section and, unless it is determined that the application
does not conform with the requirements of this Section or that
grounds exist for a denial of the application under Section
5-501, grant the applicant a motor vehicle financing affiliate
license in writing for the applicant's established place of
business and a supplemental license in writing for each
additional place of business in a form prescribed by the
Secretary, which shall include all of the following:
        (1) The name of the business licensed;
        (2) The name and address of its officers, directors,
    or members, as applicable;
        (3) In the case of an original license, the
    established place of business of the licensee; and
        (4) If applicable, the make or makes of new vehicles
    which the licensee is licensed to sell to the new motor
    vehicle dealer listed on the application pursuant to
    paragraph (2) of subsection (b); and .
        (5) The full name, address, and contact information of
    each of the dealer's agents or legal representatives who
    is an Illinois resident and liable for the performance of
    the dealership.
    (h) The appropriate instrument evidencing the license or a
certified copy, provided by the Secretary of State, shall be
kept posted conspicuously in the established place of business
of the licensee.
    (i) Except as provided in subsection (h), all motor
vehicle financing affiliate's licenses granted under this
Section shall expired by operation of law on December 31 of the
calendar year for which they are granted, unless revoked or
canceled at an earlier date pursuant to Section 5-501.
    (j) A motor vehicle financing affiliate's license may be
renewed upon application and payment of the required fee.
However, when an application for renewal of a motor vehicle
financing affiliate's license is made during the month of
December, the effective license shall remain in force until
the application is granted or denied by the Secretary of
State.
    (k) The contract a motor vehicle financing affiliate has
with a manufacturer or franchised distributor, as provided in
paragraph (5) of subsection (b), shall only permit the
applicant to sell, transfer, or assign new motor vehicles to
the new motor vehicle dealer listed on the application
pursuant to paragraph (2) of subsection (b). The contract
shall specifically prohibit the motor vehicle financing
affiliate from selling motor vehicles at retail. This contract
shall not be considered the granting of a franchise as defined
in Section 2 of the Motor Vehicle Franchise Act.
    (l) When purchasing of a motor vehicle by a new or used
motor vehicle dealer, all persons licensed as a motor vehicle
financing affiliate are required to furnish all of the
following:
        (1) For a new vehicle, a manufacturer's statement of
    origin properly assigned to the purchasing dealer. For a
    used vehicle, a certificate of title properly assigned to
    the purchasing dealer.
        (2) A statement verified under oath that all
    identifying numbers on the vehicle agree with those on the
    certificate of title or manufacturer's statement of
    origin.
        (3) A bill of sale properly executed on behalf of the
    purchasing dealer.
        (4) A copy of the Uniform Invoice-transaction report
    pursuant to Section 5-402.
        (5) In the case of a rebuilt vehicle, a copy of the
    Disclosure of Rebuilt Vehicle Status pursuant to Section
    5-104.3.
        (6) In the case of a vehicle for which a warranty has
    been reinstated, a copy of the warranty.
    (m) The motor vehicle financing affiliate shall use the
established and supplemental place or places of business the
new or used vehicle dealer listed on the application pursuant
to paragraph (2) of subsection (b) as its established and
supplemental place or places of business.
    (n) The motor vehicle financing affiliate shall keep all
books and records required by this Code with the books and
records of the new or used vehicle dealer listed on the
application pursuant to paragraph (2) of subsection (b). The
motor vehicle financing affiliate may use the books and
records of the new or used motor vehicle dealer listed on the
application pursuant to paragraph (2) of subsection (b).
    (o) Under no circumstances shall a motor vehicle financing
affiliate sell, transfer, or assign a new vehicle to any place
of business of a new motor vehicle dealer, unless that place of
business is licensed under this Chapter to sell, assign, or
otherwise transfer the make of the new motor vehicle
transferred.
    (p) All moneys received by the Secretary of State as
license fees under this Section shall be deposited into the
Motor Vehicle Review Board Fund and shall be used to
administer the Motor Vehicle Review Board under the Motor
Vehicle Franchise Act.
    (q) Except as otherwise provided in this Section, a motor
vehicle financing affiliate shall comply with all provisions
of this Code.
    (r) If a licensee under this Section voluntarily
surrenders a license to the Illinois Secretary of State Police
or a representative of the Secretary of State Vehicle Services
Department due to the licensee's inability to adhere to
recordkeeping provisions, or the inability to properly issue
certificates of title or registrations under this Code, or the
Secretary revokes a license under this Section, then the
licensee and the licensee's agent, designee, or legal
representative, if applicable, may not be named on a new
application for a licensee under this Section or under this
Chapter, nor is the licensee or the licensee's agent,
designee, or legal representative permitted to work for
another licensee under this Chapter in a recordkeeping,
management, or financial position or as an employee who
handles certificate of title and registration documents and
applications.
(Source: P.A. 91-415, eff. 1-1-00.)
 
    (625 ILCS 5/5-101.2)
    Sec. 5-101.2. Manufactured home dealers; licensing.
    (a) For the purposes of this Section, the following words
shall have the meanings ascribed to them as follows:
        "Community-based manufactured home dealer" means an
    individual or entity that operates a tract of land or 2 or
    more contiguous tracts of land which contain sites with
    the necessary utilities for 5 or more independent
    manufactured homes for permanent habitation, either free
    of charge or for revenue purposes, and shall include any
    building, structure, vehicle, or enclosure used or
    intended for use as a part of the equipment of the
    manufactured home park who may, incidental to the
    operation of the manufactured home community, sell, trade,
    or buy no more than 2 manufactured homes or park models per
    calendar year that are located within the manufactured
    home community pursuant to a franchise agreement or
    similar agreement with a manufacturer, or used
    manufactured homes or park models located within the
    manufactured home community or additional place of
    business that is owned or managed by the community-based
    manufactured home dealer.
        "Established place of business" means the place owned
    or leased and occupied by any person duly licensed or
    required to be licensed as a manufactured home dealer or a
    community-based manufactured home dealer for the purpose
    of engaging in selling, buying, bartering, displaying,
    exchanging, or dealing in, on consignment or otherwise,
    manufactured homes or park models and for such other
    ancillary purposes as may be permitted by the Secretary by
    rule. An established place of business shall include a
    single or central office in which the manufactured home
    dealer's or community-based manufactured home dealer's
    records shall be separate and distinct from any other
    business or tenant which may occupy space in the same
    building, except as provided in this Section, and the
    office shall not be located in a tent, temporary stand,
    temporary address, room or rooms in a hotel or rooming
    house, nor the premises occupied by a single or multiple
    unit residence, unless the multiple unit residence has a
    separate and distinct office.
        "Manufactured home" means a factory assembled
    structure built on a permanent chassis, transportable in
    one or more sections in the travel mode, incapable of
    self-propulsion, and bears a label indicating the
    manufacturer's compliance with the United States
    Department of Housing and Urban Development standards, as
    applicable, that is without a permanent foundation and is
    designed for year round occupancy as a single-family
    residence when connected to approved water, sewer, and
    electrical utilities.
        "Manufactured home dealer" means an individual or
    entity that engages in the business of acquiring or
    disposing of a manufactured home or park model, either a
    new manufactured home or park model, pursuant to a
    franchise agreement with a manufacturer, or used
    manufactured homes or park models, and who has an
    established place of business that is not in a residential
    community-based setting.
        "Park model" means a vehicle that is incapable of
    self-propulsion that is less than 400 square feet of
    habitable space that is built to American National
    Standards Institute (ANSI) standards that prohibits
    occupancy on a permanent basis and is built on a vehicle
    chassis.
        "Supplemental license" means a license that a
    community-based manufactured home dealer receives and
    displays at locations in which the licensee is authorized
    to sell, buy, barter, display, exchange, or deal in, on
    consignment or otherwise, manufactured homes or park
    models, but is not the established place of business of
    the licensee.
    (b) No person shall engage in this State in the business of
selling or dealing in, on consignment or otherwise,
manufactured homes or park models of any make, or act as an
intermediary, agent, or broker for any manufactured home or
park model purchaser, other than as a salesperson or to
represent or advertise that he or she is so engaged, or intends
to so engage, in the business, unless licensed to do so by the
Secretary of State under the provisions of this Section.
    (c) An application for a manufactured home dealer's
license or a community-based manufactured home dealer's
license shall be filed with the Secretary of State and duly
verified by oath, on such form as the Secretary of State may by
rule prescribe and shall contain all of the following:
        (1) The name and type of business organization of the
    applicant, and his or her established and additional
    places of business, if any, in this State.
        (2) If the applicant is a corporation, a list of its
    officers, directors, and shareholders having a 10% or
    greater ownership interest in the corporation. If the
    applicant is a sole proprietorship, a partnership, a
    limited liability company, an unincorporated association,
    a trust, or any similar form of business organization, the
    name and residence address of the proprietor, or the name
    and residence address of each partner, member, officer,
    director, trustee, or manager.
        (3) The make or makes of new manufactured homes or
    park models that the applicant will offer for sale at
    retail in the State.
        (4) The name of each manufacturer or franchised
    distributor, if any, of new manufactured homes or park
    models with whom the applicant has contracted for the sale
    of new manufactured homes or park models. As evidence of
    this fact, the application shall be accompanied by a
    signed statement from each manufacturer or franchised
    distributor.
        (5) A statement that the applicant has been approved
    for registration under the Retailers' Occupation Tax Act
    by the Department of Revenue, provided that this
    requirement does not apply to a manufactured home dealer
    who is already licensed with the Secretary of State, and
    who is merely applying for a renewal of his or her license.
    As evidence of this fact, the application shall be
    accompanied by a certification from the Department of
    Revenue showing that the Department has approved the
    applicant for registration under the Retailers' Occupation
    Tax Act.
        (6) An application for:
            (A) a manufactured home dealer's license, when the
        applicant is selling new manufactured homes or park
        models on behalf of a manufacturer of manufactured
        homes or park models, or 5 or more used manufactured
        homes or park models during the calendar year, shall
        be accompanied by a $1,000 license fee for the
        applicant's established place of business, and $100
        for each additional place of business, if any, to
        which the application pertains. If the application is
        made after June 15 in any year, the license fee shall
        be $500 for the applicant's established place of
        business, and $50 for each additional place of
        business, if any, to which the application pertains.
        License fees shall be returnable only in the event
        that the application is denied by the Secretary of
        State; or
            (B) a community-based manufactured home dealer's
        license, when the applicant is selling new
        manufactured homes or park models on behalf of a
        manufacturer of manufactured homes or park models, or
        5 or more used manufactured homes or park models
        during the calendar year, but within a community
        setting, shall be accompanied by a license fee of $500
        for the applicant's established place of business, and
        $50 for each additional place of business within a
        50-mile radius of the established place of business,
        if any to which the application pertains. If the
        application is made after June 15 in any year, the
        license fee shall be $250 for the applicant's
        established place of business, and $50 for each
        additional place of business, if any, to which the
        application pertains. License fees shall be returnable
        only in the event that the application is denied by the
        Secretary of State.
            Of the monies received by the Secretary of State
        as license fees under this paragraph (6), 95% shall be
        deposited into the General Revenue Fund and 5% into
        the Motor Vehicle License Plate Fund.
        (7) A statement that the applicant's officers,
    directors, and shareholders having a 10% or greater
    ownership interest therein, proprietor, a partner, member,
    officer, director, trustee, manager, or other principals
    in the business, have not committed in the past 3 years any
    one violation, as determined in any civil, criminal, or
    administrative hearing proceeding, of any one of the
    following Acts:
            (A) the Anti Theft Laws of the Illinois Vehicle
        Code;
            (B) the Certificate of Title Laws of the Illinois
        Vehicle Code;
            (C) the Offenses against Registration and
        Certificates of Title Laws of the Illinois Vehicle
        Code;
            (D) the Dealers, Transporters, Wreckers, and
        Rebuilders Laws of the Illinois Vehicle Code;
            (E) Section 21-2 of the Criminal Code of 2012
        (criminal trespass to vehicles);
            (F) the Retailers Occupation Tax Act;
            (G) the Consumer Finance Act;
            (H) the Consumer Installment Loan Act;
            (I) the Retail Installment Sales Act;
            (J) the Motor Vehicle Retail Installment Sales
        Act;
            (K) the Interest Act;
            (L) the Illinois Wage Assignment Act;
            (M) Part 8 of Article XII of the Code of Civil
        Procedure; or
            (N) the Consumer Fraud Act.
        (8) A bond or certificate of deposit in the amount of
    $20,000 for each license holder applicant intending to act
    as a manufactured home dealer or community-based
    manufactured home dealer under this Section. The bond
    shall be for the term of the license, for which
    application is made, and shall expire not sooner than
    December 31 of the year for which the license was issued.
    The bond shall run to the People of the State of Illinois,
    with surety by a bonding or insurance company authorized
    to do business in this State. It shall be conditioned upon
    the proper transmittal of all title and registration fees
    and taxes (excluding taxes under the Retailers' Occupation
    Tax Act) accepted by the applicant as a manufactured home
    dealer.
        (9) Dealers in business for over 5 years may
    substitute a certificate of insurance in lieu of the bond
    or certificate of deposit upon renewing their license.
        (10) Any other information concerning the business of
    the applicant as the Secretary of State may by rule
    prescribe.
        (11) A statement that the applicant has read and
    understands Chapters 1 through 5 of this Code.
        (12) The full name, address, and contact information
    of each of the dealer's agents or legal representatives
    who is an Illinois resident and liable for the performance
    of the dealership.
    (d) Any change which renders no longer accurate any
information contained in any application for a license under
this Section shall be amended within 30 days after the
occurrence of the change on a form the Secretary of State may
prescribe, by rule, accompanied by an amendatory fee of $25.
    (e) The Secretary of State shall, within a reasonable time
after receipt, examine an application submitted to him or her
under this Section, and unless he or she makes a determination
that the application submitted to him or her does not conform
with the requirements of this Section or that grounds exist
for a denial of the application under Section 5-501 of this
Chapter, grant the applicant an initial manufactured home
dealer's license or a community-based manufactured home
dealer's license in writing for his or her established place
of business and a supplemental license in writing for each
additional place of business in a form the Secretary may
prescribe by rule, which shall include the following:
        (1) the name of the person or entity licensed;
        (2) if a corporation, the name and address of its
    officers; if a sole proprietorship, a partnership, an
    unincorporated association, or any similar form of
    business organization, the name and address of the
    proprietor, or the name and address of each partner,
    member, officer, director, trustee or manager; or if a
    limited liability company, the name and address of the
    general partner or partners, or managing member or
    members;
        (3) in the case of an original license, the
    established place of business of the licensee;
        (4) in the case of a supplemental license, the
    established place of business of the licensee and the
    distance to each additional place of business to which the
    supplemental license pertains; and
        (5) if applicable, the make or makes of new
    manufactured homes or park models to which a manufactured
    home dealer is licensed to sell; and .
        (6) the full name, address, and contact information of
    each of the dealer's agents or legal representatives who
    is an Illinois resident and liable for the performance of
    the dealership.
    (e-5) A manufactured home dealer may operate a
supplemental lot if the lot is located within 50 miles of the
manufactured home dealer's principal place of business.
Records pertaining to a supplemental lot may be maintained at
the principal place of business.
    (f) The appropriate instrument evidencing the license or a
certified copy of the instrument, provided by the Secretary of
State, shall be kept posted conspicuously in the established
place of business of the licensee and in each additional place
of business, if any, maintained by the licensee, unless the
licensee is a community-based manufactured home dealer, then
the license shall be posted in the community-based
manufactured home dealer's central office and it shall include
a list of the other locations that the community-based
manufactured home dealer may oversee.
    (g) Except as provided in subsection (i) of this Section,
all licenses granted under this Section shall expire by
operation of law on December 31 of the calendar year for which
the licenses were granted, unless sooner revoked or cancelled
under the provisions of Section 5-501 of this Chapter.
    (h) All persons licensed as a manufactured home dealer or
a community-based manufactured home dealer are required to
furnish each purchaser of a manufactured home or park model:
        (1) in the case of a new manufactured home or park
    model, a manufacturer's statement of origin, and in the
    case of a previously owned manufactured home or park
    model, a certificate of title, in either case properly
    assigned to the purchaser;
        (2) a statement verified under oath that all
    identifying numbers on the vehicle match the identifying
    numbers on the certificate of title or manufacturer's
    statement of origin;
        (3) a bill of sale properly executed on behalf of the
    purchaser;
        (4) a copy of the Uniform Invoice-transaction
    reporting return form referred to in Section 5-402; and
        (5) for a new manufactured home or park model, a
    warranty, and in the case of a manufactured home or park
    model for which the warranty has been reinstated, a copy
    of the warranty; if no warranty is provided, a disclosure
    or statement that the manufactured home or park model is
    being sold "AS IS".
    (i) This Section shall not apply to a (i) seller who
privately owns his or her manufactured home or park model as
his or her main residence and is selling the manufactured home
or park model to another individual or to a licensee; (ii) a
retailer or entity licensed under either Section 5-101 or
5-102 of this Code; or (iii) an individual or entity licensed
to sell truck campers, travel trailers, motor homes, or mini
motor homes as defined by this Code. Any vehicle not covered by
this Section that requires an individual or entity to obtain a
license to sell 5 or more vehicles must obtain a license under
the relevant provisions of this Code.
    (j) This Section shall not apply to any person licensed
under the Real Estate License Act of 2000.
    (k) The Secretary of State may adopt any rules necessary
to implement this Section.
(Source: P.A. 101-407, eff. 8-16-19.)
 
    (625 ILCS 5/5-102)  (from Ch. 95 1/2, par. 5-102)
    Sec. 5-102. Used vehicle dealers must be licensed.
    (a) No person, other than a licensed new vehicle dealer,
shall engage in the business of selling or dealing in, on
consignment or otherwise, 5 or more used vehicles of any make
during the year (except house trailers as authorized by
paragraph (j) of this Section and rebuilt salvage vehicles
sold by their rebuilders to persons licensed under this
Chapter), or act as an intermediary, agent or broker for any
licensed dealer or vehicle purchaser (other than as a
salesperson) or represent or advertise that he is so engaged
or intends to so engage in such business unless licensed to do
so by the Secretary of State under the provisions of this
Section.
    (b) An application for a used vehicle dealer's license
shall be filed with the Secretary of State, duly verified by
oath, in such form as the Secretary of State may by rule or
regulation prescribe and shall contain:
        1. The name and type of business organization
    established and additional places of business, if any, in
    this State.
        2. If the applicant is a corporation, a list of its
    officers, directors, and shareholders having a ten percent
    or greater ownership interest in the corporation, setting
    forth the residence address of each; if the applicant is a
    sole proprietorship, a partnership, an unincorporated
    association, a trust, or any similar form of business
    organization, the names and residence address of the
    proprietor or of each partner, member, officer, director,
    trustee or manager.
        3. A statement that the applicant has been approved
    for registration under the Retailers' Occupation Tax Act
    by the Department of Revenue. However, this requirement
    does not apply to a dealer who is already licensed
    hereunder with the Secretary of State, and who is merely
    applying for a renewal of his license. As evidence of this
    fact, the application shall be accompanied by a
    certification from the Department of Revenue showing that
    the Department has approved the applicant for registration
    under the Retailers' Occupation Tax Act.
        4. A statement that the applicant has complied with
    the appropriate liability insurance requirement. A
    Certificate of Insurance in a solvent company authorized
    to do business in the State of Illinois shall be included
    with each application covering each location at which he
    proposes to act as a used vehicle dealer. The policy must
    provide liability coverage in the minimum amounts of
    $100,000 for bodily injury to, or death of, any person,
    $300,000 for bodily injury to, or death of, two or more
    persons in any one accident, and $50,000 for damage to
    property. Such policy shall expire not sooner than
    December 31 of the year for which the license was issued or
    renewed. The expiration of the insurance policy shall not
    terminate the liability under the policy arising during
    the period for which the policy was filed. Trailer and
    mobile home dealers are exempt from this requirement.
        If the permitted user has a liability insurance policy
    that provides automobile liability insurance coverage of
    at least $100,000 for bodily injury to or the death of any
    person, $300,000 for bodily injury to or the death of any 2
    or more persons in any one accident, and $50,000 for
    damage to property, then the permitted user's insurer
    shall be the primary insurer and the dealer's insurer
    shall be the secondary insurer. If the permitted user does
    not have a liability insurance policy that provides
    automobile liability insurance coverage of at least
    $100,000 for bodily injury to or the death of any person,
    $300,000 for bodily injury to or the death of any 2 or more
    persons in any one accident, and $50,000 for damage to
    property, or does not have any insurance at all, then the
    dealer's insurer shall be the primary insurer and the
    permitted user's insurer shall be the secondary insurer.
        When a permitted user is "test driving" a used vehicle
    dealer's automobile, the used vehicle dealer's insurance
    shall be primary and the permitted user's insurance shall
    be secondary.
        As used in this paragraph 4, a "permitted user" is a
    person who, with the permission of the used vehicle dealer
    or an employee of the used vehicle dealer, drives a
    vehicle owned and held for sale or lease by the used
    vehicle dealer which the person is considering to purchase
    or lease, in order to evaluate the performance,
    reliability, or condition of the vehicle. The term
    "permitted user" also includes a person who, with the
    permission of the used vehicle dealer, drives a vehicle
    owned or held for sale or lease by the used vehicle dealer
    for loaner purposes while the user's vehicle is being
    repaired or evaluated.
        As used in this paragraph 4, "test driving" occurs
    when a permitted user who, with the permission of the used
    vehicle dealer or an employee of the used vehicle dealer,
    drives a vehicle owned and held for sale or lease by a used
    vehicle dealer that the person is considering to purchase
    or lease, in order to evaluate the performance,
    reliability, or condition of the vehicle.
        As used in this paragraph 4, "loaner purposes" means
    when a person who, with the permission of the used vehicle
    dealer, drives a vehicle owned or held for sale or lease by
    the used vehicle dealer while the user's vehicle is being
    repaired or evaluated.
        5. An application for a used vehicle dealer's license
    shall be accompanied by the following license fees:
            (A) $1,000 for applicant's established place of
        business, and $50 for each additional place of
        business, if any, to which the application pertains;
        however, if the application is made after June 15 of
        any year, the license fee shall be $500 for
        applicant's established place of business plus $25 for
        each additional place of business, if any, to which
        the application pertains. License fees shall be
        returnable only in the event that the application is
        denied by the Secretary of State. Of the money
        received by the Secretary of State as license fees
        under this subparagraph (A) for the 2004 licensing
        year and thereafter, 95% shall be deposited into the
        General Revenue Fund.
            (B) Except for dealers selling 25 or fewer
        automobiles or as provided in subsection (h) of
        Section 5-102.7 of this Code, an Annual Dealer
        Recovery Fund Fee in the amount of $500 for the
        applicant's established place of business, and $50 for
        each additional place of business, if any, to which
        the application pertains; but if the application is
        made after June 15 of any year, the fee shall be $250
        for the applicant's established place of business plus
        $25 for each additional place of business, if any, to
        which the application pertains. For a license renewal
        application, the fee shall be based on the amount of
        automobiles sold in the past year according to the
        following formula:
                (1) $0 for dealers selling 25 or less
            automobiles;
                (2) $150 for dealers selling more than 25 but
            less than 200 automobiles;
                (3) $300 for dealers selling 200 or more
            automobiles but less than 300 automobiles; and
                (4) $500 for dealers selling 300 or more
            automobiles.
            License fees shall be returnable only in the event
        that the application is denied by the Secretary of
        State. Moneys received under this subparagraph (B)
        shall be deposited into the Dealer Recovery Trust
        Fund.
        6. A statement that the applicant's officers,
    directors, shareholders having a 10% or greater ownership
    interest therein, proprietor, partner, member, officer,
    director, trustee, manager or other principals in the
    business have not committed in the past 3 years any one
    violation as determined in any civil, criminal or
    administrative proceedings of any one of the following
    Acts:
            (A) The Anti-Theft Laws of the Illinois Vehicle
        Code;
            (B) The Certificate of Title Laws of the Illinois
        Vehicle Code;
            (C) The Offenses against Registration and
        Certificates of Title Laws of the Illinois Vehicle
        Code;
            (D) The Dealers, Transporters, Wreckers and
        Rebuilders Laws of the Illinois Vehicle Code;
            (E) Section 21-2 of the Illinois Criminal Code of
        1961 or the Criminal Code of 2012, Criminal Trespass
        to Vehicles; or
            (F) The Retailers' Occupation Tax Act.
        7. A statement that the applicant's officers,
    directors, shareholders having a 10% or greater ownership
    interest therein, proprietor, partner, member, officer,
    director, trustee, manager or other principals in the
    business have not committed in any calendar year 3 or more
    violations, as determined in any civil or criminal or
    administrative proceedings, of any one or more of the
    following Acts:
            (A) The Consumer Finance Act;
            (B) The Consumer Installment Loan Act;
            (C) The Retail Installment Sales Act;
            (D) The Motor Vehicle Retail Installment Sales
        Act;
            (E) The Interest Act;
            (F) The Illinois Wage Assignment Act;
            (G) Part 8 of Article XII of the Code of Civil
        Procedure; or
            (H) The Consumer Fraud and Deceptive Business
        Practices Act.
        7.5. A statement that, within 10 years of application,
    each officer, director, shareholder having a 10% or
    greater ownership interest therein, proprietor, partner,
    member, officer, director, trustee, manager, or other
    principal in the business of the applicant has not
    committed, as determined in any civil, criminal, or
    administrative proceeding, in any calendar year one or
    more forcible felonies under the Criminal Code of 1961 or
    the Criminal Code of 2012, or a violation of either or both
    Article 16 or 17 of the Criminal Code of 1961 or a
    violation of either or both Article 16 or 17 of the
    Criminal Code of 2012, Article 29B of the Criminal Code of
    1961 or the Criminal Code of 2012, or a similar
    out-of-state offense. For the purposes of this paragraph,
    "forcible felony" has the meaning provided in Section 2-8
    of the Criminal Code of 2012.
        8. A bond or Certificate of Deposit in the amount of
    $50,000 for each location at which the applicant intends
    to act as a used vehicle dealer. The bond shall be for the
    term of the license, or its renewal, for which application
    is made, and shall expire not sooner than December 31 of
    the year for which the license was issued or renewed. The
    bond shall run to the People of the State of Illinois, with
    surety by a bonding or insurance company authorized to do
    business in this State. It shall be conditioned upon the
    proper transmittal of all title and registration fees and
    taxes (excluding taxes under the Retailers' Occupation Tax
    Act) accepted by the applicant as a used vehicle dealer.
        9. Such other information concerning the business of
    the applicant as the Secretary of State may by rule or
    regulation prescribe.
        10. A statement that the applicant understands Chapter
    1 through Chapter 5 of this Code.
        11. A copy of the certification from the prelicensing
    education program.
        12. The full name, address, and contact information of
    each of the dealer's agents or legal representatives who
    is an Illinois resident and liable for the performance of
    the dealership.
    (c) Any change which renders no longer accurate any
information contained in any application for a used vehicle
dealer's license shall be amended within 30 days after the
occurrence of each change on such form as the Secretary of
State may prescribe by rule or regulation, accompanied by an
amendatory fee of $2.
    (d) Anything in this Chapter to the contrary
notwithstanding, no person shall be licensed as a used vehicle
dealer unless such person maintains an established place of
business as defined in this Chapter.
    (e) The Secretary of State shall, within a reasonable time
after receipt, examine an application submitted to him under
this Section. Unless the Secretary makes a determination that
the application submitted to him does not conform to this
Section or that grounds exist for a denial of the application
under Section 5-501 of this Chapter, he must grant the
applicant an original used vehicle dealer's license in writing
for his established place of business and a supplemental
license in writing for each additional place of business in
such form as he may prescribe by rule or regulation which shall
include the following:
        1. The name of the person licensed;
        2. If a corporation, the name and address of its
    officers or if a sole proprietorship, a partnership, an
    unincorporated association or any similar form of business
    organization, the name and address of the proprietor or of
    each partner, member, officer, director, trustee or
    manager;
        3. In case of an original license, the established
    place of business of the licensee;
        4. In the case of a supplemental license, the
    established place of business of the licensee and the
    additional place of business to which such supplemental
    license pertains; .
        5. The full name, address, and contact information of
    each of the dealer's agents or legal representatives who
    is an Illinois resident and liable for the performance of
    the dealership.
    (f) The appropriate instrument evidencing the license or a
certified copy thereof, provided by the Secretary of State
shall be kept posted, conspicuously, in the established place
of business of the licensee and in each additional place of
business, if any, maintained by such licensee.
    (g) Except as provided in subsection (h) of this Section,
all used vehicle dealer's licenses granted under this Section
expire by operation of law on December 31 of the calendar year
for which they are granted unless sooner revoked or cancelled
under Section 5-501 of this Chapter.
    (h) A used vehicle dealer's license may be renewed upon
application and payment of the fee required herein, and
submission of proof of coverage by an approved bond under the
"Retailers' Occupation Tax Act" or proof that applicant is not
subject to such bonding requirements, as in the case of an
original license, but in case an application for the renewal
of an effective license is made during the month of December,
the effective license shall remain in force until the
application for renewal is granted or denied by the Secretary
of State.
    (i) All persons licensed as a used vehicle dealer are
required to furnish each purchaser of a motor vehicle:
        1. A certificate of title properly assigned to the
    purchaser;
        2. A statement verified under oath that all
    identifying numbers on the vehicle agree with those on the
    certificate of title;
        3. A bill of sale properly executed on behalf of such
    person;
        4. A copy of the Uniform Invoice-transaction reporting
    return referred to in Section 5-402 of this Chapter;
        5. In the case of a rebuilt vehicle, a copy of the
    Disclosure of Rebuilt Vehicle Status; and
        6. In the case of a vehicle for which the warranty has
    been reinstated, a copy of the warranty.
    (j) A real estate broker holding a valid certificate of
registration issued pursuant to "The Real Estate Brokers and
Salesmen License Act" may engage in the business of selling or
dealing in house trailers not his own without being licensed
as a used vehicle dealer under this Section; however such
broker shall maintain a record of the transaction including
the following:
        (1) the name and address of the buyer and seller,
        (2) the date of sale,
        (3) a description of the mobile home, including the
    vehicle identification number, make, model, and year, and
        (4) the Illinois certificate of title number.
    The foregoing records shall be available for inspection by
any officer of the Secretary of State's Office at any
reasonable hour.
    (k) Except at the time of sale or repossession of the
vehicle, no person licensed as a used vehicle dealer may issue
any other person a newly created key to a vehicle unless the
used vehicle dealer makes a color photocopy or electronic scan
of the driver's license or State identification card of the
person requesting or obtaining the newly created key. The used
vehicle dealer must retain the photocopy or scan for 30 days.
    A used vehicle dealer who violates this subsection (k) is
guilty of a petty offense. Violation of this subsection (k) is
not cause to suspend, revoke, cancel, or deny renewal of the
used vehicle dealer's license.
    (l) Used vehicle dealers licensed under this Section shall
provide the Secretary of State a register for the sale at
auction of each salvage or junk certificate vehicle. Each
register shall include the following information:
        1. The year, make, model, style and color of the
    vehicle;
        2. The vehicle's manufacturer's identification number
    or, if applicable, the Secretary of State or Illinois
    Department of State Police identification number;
        3. The date of acquisition of the vehicle;
        4. The name and address of the person from whom the
    vehicle was acquired;
        5. The name and address of the person to whom any
    vehicle was disposed, the person's Illinois license number
    or if the person is an out-of-state salvage vehicle buyer,
    the license number from the state or jurisdiction where
    the buyer is licensed; and
        6. The purchase price of the vehicle.
    The register shall be submitted to the Secretary of State
via written or electronic means within 10 calendar days from
the date of the auction.
    (m) If a licensee under this Section voluntarily
surrenders a license to the Illinois Secretary of State Police
or a representative of the Secretary of State Vehicle Services
Department due to the licensee's inability to adhere to
recordkeeping provisions, or the inability to properly issue
certificates of title or registrations under this Code, or the
Secretary revokes a license under this Section, then the
licensee and the licensee's agent, designee, or legal
representative, if applicable, may not be named on a new
application for a licensee under this Section or under this
Chapter, nor is the licensee or the licensee's agent,
designee, or legal representative permitted to work for
another licensee under this Chapter in a recordkeeping,
management, or financial position or as an employee who
handles certificate of title and registration documents and
applications.
(Source: P.A. 100-450, eff. 1-1-18; 100-956, eff. 1-1-19;
101-505, eff. 1-1-20.)
 
    (625 ILCS 5/5-102.8)
    Sec. 5-102.8. Licensure of Buy Here, Pay Here used vehicle
dealers.
    (a) As used in this Section, "Buy Here, Pay Here used
vehicle dealer" means any entity that engages in the business
of selling or leasing of vehicles and finances the sale or
purchase price of the vehicle to a customer without the
customer using a third-party lender.
    (b) No person shall engage in the business of selling or
dealing in, on consignment or otherwise, 5 or more used
vehicles of any make during the year (except rebuilt salvage
vehicles sold by their rebuilders to persons licensed under
this Chapter), or act as an intermediary, agent, or broker for
any licensed dealer or vehicle purchaser (other than as a
salesperson) or represent or advertise that he or she is so
engaged or intends to so engage in such business of a Buy Here,
Pay Here used vehicle dealer unless licensed to do so by the
Secretary of State under the provisions of this Section.
    (c) An application for a Buy Here, Pay Here used vehicle
dealer's license shall be filed with the Secretary of State,
duly verified by oath, in such form as the Secretary of State
may by rule or regulation prescribe and shall contain:
        (1) The name and type of business organization
    established and additional places of business, if any, in
    this State.
        (2) If the applicant is a corporation, a list of its
    officers, directors, and shareholders having a 10% or
    greater ownership interest in the corporation, setting
    forth the residence address of each; if the applicant is a
    sole proprietorship, a partnership, an unincorporated
    association, a trust, or any similar form of business
    organization, the names and residence address of the
    proprietor or of each partner, member, officer, director,
    trustee, or manager.
        (3) A statement that the applicant has been approved
    for registration under the Retailers' Occupation Tax Act
    by the Department of Revenue. However, this requirement
    does not apply to a dealer who is already licensed
    hereunder with the Secretary of State, and who is merely
    applying for a renewal of his or her license. As evidence
    of this fact, the application shall be accompanied by a
    certification from the Department of Revenue showing that
    the Department has approved the applicant for registration
    under the Retailers' Occupation Tax Act.
        (4) A statement that the applicant has complied with
    the appropriate liability insurance requirement. A
    Certificate of Insurance in a solvent company authorized
    to do business in the State of Illinois shall be included
    with each application covering each location at which he
    or she proposes to act as a Buy Here, Pay Here used vehicle
    dealer. The policy must provide liability coverage in the
    minimum amounts of $100,000 for bodily injury to, or death
    of, any person, $300,000 for bodily injury to, or death
    of, 2 or more persons in any one accident, and $50,000 for
    damage to property. Such policy shall expire not sooner
    than December 31 of the year for which the license was
    issued or renewed. The expiration of the insurance policy
    shall not terminate the liability under the policy arising
    during the period for which the policy was filed.
        If the permitted user has a liability insurance policy
    that provides automobile liability insurance coverage of
    at least $100,000 for bodily injury to or the death of any
    person, $300,000 for bodily injury to or the death of any 2
    or more persons in any one accident, and $50,000 for
    damage to property, then the permitted user's insurer
    shall be the primary insurer and the dealer's insurer
    shall be the secondary insurer. If the permitted user does
    not have a liability insurance policy that provides
    automobile liability insurance coverage of at least
    $100,000 for bodily injury to or the death of any person,
    $300,000 for bodily injury to or the death of any 2 or more
    persons in any one accident, and $50,000 for damage to
    property, or does not have any insurance at all, then the
    dealer's insurer shall be the primary insurer and the
    permitted user's insurer shall be the secondary insurer.
        When a permitted user is "test driving" a Buy Here,
    Pay Here used vehicle dealer's automobile, the Buy Here,
    Pay Here used vehicle dealer's insurance shall be primary
    and the permitted user's insurance shall be secondary.
        As used in this paragraph, "permitted user" means a
    person who, with the permission of the Buy Here, Pay Here
    used vehicle dealer or an employee of the Buy Here, Pay
    Here used vehicle dealer, drives a vehicle owned and held
    for sale or lease by the Buy Here, Pay Here used vehicle
    dealer that the person is considering to purchase or
    lease, in order to evaluate the performance, reliability,
    or condition of the vehicle. "Permitted user" includes a
    person who, with the permission of the Buy Here, Pay Here
    used vehicle dealer, drives a vehicle owned or held for
    sale or lease by the Buy Here, Pay Here used vehicle dealer
    for loaner purposes while the user's vehicle is being
    repaired or evaluated.
        As used in this paragraph, "test driving" occurs when
    a permitted user who, with the permission of the Buy Here,
    Pay Here used vehicle dealer or an employee of the Buy
    Here, Pay Here used vehicle dealer, drives a vehicle owned
    and held for sale or lease by a Buy Here, Pay Here used
    vehicle dealer that the person is considering to purchase
    or lease, in order to evaluate the performance,
    reliability, or condition of the vehicle.
        As used in this paragraph, "loaner purposes" means
    when a person who, with the permission of the Buy Here, Pay
    Here used vehicle dealer, drives a vehicle owned or held
    for sale or lease by the used vehicle dealer while the
    user's vehicle is being repaired or evaluated.
        (5) An application for a Buy Here, Pay Here used
    vehicle dealer's license shall be accompanied by the
    following license fees:
            (A) $1,000 for the applicant's established place
        of business, and $50 for each additional place of
        business, if any, to which the application pertains;
        however, if the application is made after June 15 of
        any year, the license fee shall be $500 for the
        applicant's established place of business plus $25 for
        each additional place of business, if any, to which
        the application pertains. License fees shall be
        returnable only if the application is denied by the
        Secretary of State. Of the money received by the
        Secretary of State as license fees under this
        subparagraph, 95% shall be deposited into the General
        Revenue Fund.
            (B) Except for dealers selling 25 or fewer
        automobiles or as provided in subsection (h) of
        Section 5-102.7 of this Code, an Annual Dealer
        Recovery Fund Fee in the amount of $500 for the
        applicant's established place of business, and $50 for
        each additional place of business, if any, to which
        the application pertains; but if the application is
        made after June 15 of any year, the fee shall be $250
        for the applicant's established place of business plus
        $25 for each additional place of business, if any, to
        which the application pertains. For a license renewal
        application, the fee shall be based on the amount of
        automobiles sold in the past year according to the
        following formula:
                (1) $0 for dealers selling 25 or less
            automobiles;
                (2) $150 for dealers selling more than 25 but
            less than 200 automobiles;
                (3) $300 for dealers selling 200 or more
            automobiles but less than 300 automobiles; and
                (4) $500 for dealers selling 300 or more
            automobiles.
            Fees shall be returnable only if the application
        is denied by the Secretary of State. Money received
        under this subparagraph shall be deposited into the
        Dealer Recovery Trust Fund. A Buy Here, Pay Here used
        vehicle dealer shall pay into the Dealer Recovery
        Trust Fund for every vehicle that is financed, sold,
        or otherwise transferred to an individual or entity
        other than the Buy Here, Pay Here used vehicle dealer
        even if the individual or entity to which the Buy Here,
        Pay Here used vehicle dealer transfers the vehicle is
        unable to continue to adhere to the terms of the
        transaction by the Buy Here, Pay Here used vehicle
        dealer.
        (6) A statement that each officer, director,
    shareholder having a 10% or greater ownership interest
    therein, proprietor, partner, member, officer, director,
    trustee, manager, or other principal in the business of
    the applicant has not committed in the past 3 years any one
    violation as determined in any civil, criminal, or
    administrative proceedings of any one of the following:
            (A) the Anti-Theft Laws of this Code;
            (B) the Certificate of Title Laws of this Code;
            (C) the Offenses against Registration and
        Certificates of Title Laws of this Code;
            (D) the Dealers, Transporters, Wreckers and
        Rebuilders Laws of this Code;
            (E) Section 21-2 of the Illinois Criminal Code of
        1961 or the Criminal Code of 2012, Criminal Trespass
        to Vehicles; or
            (F) the Retailers' Occupation Tax Act.
        (7) A statement that each officer, director,
    shareholder having a 10% or greater ownership interest
    therein, proprietor, partner, member, officer, director,
    trustee, manager, or other principal in the business of
    the applicant has not committed in any calendar year 3 or
    more violations, as determined in any civil, criminal, or
    administrative proceedings, of any one or more of the
    following:
            (A) the Consumer Finance Act;
            (B) the Consumer Installment Loan Act;
            (C) the Retail Installment Sales Act;
            (D) the Motor Vehicle Retail Installment Sales
        Act;
            (E) the Interest Act;
            (F) the Illinois Wage Assignment Act;
            (G) Part 8 of Article XII of the Code of Civil
        Procedure; or
            (H) the Consumer Fraud and Deceptive Business
        Practices Act.
        (8) A statement that, within 10 years of application,
    each officer, director, shareholder having a 10% or
    greater ownership interest therein, proprietor, partner,
    member, officer, director, trustee, manager, or other
    principal in the business of the applicant has not
    committed, as determined in any civil, criminal, or
    administrative proceeding, in any calendar year one or
    more forcible felonies under the Criminal Code of 1961 or
    the Criminal Code of 2012, or a violation of either or both
    Article 16 or 17 of the Criminal Code of 1961, or a
    violation of either or both Article 16 or 17 of the
    Criminal Code of 2012, Article 29B of the Criminal Code of
    1961 or the Criminal Code of 2012, or a similar
    out-of-state offense. For the purposes of this paragraph,
    "forcible felony" has the meaning provided in Section 2-8
    of the Criminal Code of 2012.
        (9) A bond or Certificate of Deposit in the amount of
    $50,000 for each location at which the applicant intends
    to act as a Buy Here, Pay Here used vehicle dealer. The
    bond shall be for the term of the license. The bond shall
    run to the People of the State of Illinois, with surety by
    a bonding or insurance company authorized to do business
    in this State. It shall be conditioned upon the proper
    transmittal of all title and registration fees and taxes
    (excluding taxes under the Retailers' Occupation Tax Act)
    accepted by the applicant as a Buy Here, Pay Here used
    vehicle dealer.
        (10) Such other information concerning the business of
    the applicant as the Secretary of State may by rule
    prescribe.
        (11) A statement that the applicant understands
    Chapter 1 through Chapter 5 of this Code.
        (12) A copy of the certification from the prelicensing
    education program.
        (13) The full name, address, and contact information
    of each of the dealer's agents or legal representatives
    who is an Illinois resident and liable for the performance
    of the dealership.
    (d) Any change that renders no longer accurate any
information contained in any application for a Buy Here, Pay
Here used vehicle dealer's license shall be amended within 30
days after the occurrence of each change on such form as the
Secretary of State may prescribe by rule, accompanied by an
amendatory fee of $2.
    (e) Anything in this Chapter to the contrary
notwithstanding, no person shall be licensed as a Buy Here,
Pay Here used vehicle dealer unless the person maintains an
established place of business as defined in this Chapter.
    (f) The Secretary of State shall, within a reasonable time
after receipt, examine an application submitted under this
Section. Unless the Secretary makes a determination that the
application does not conform to this Section or that grounds
exist for a denial of the application under Section 5-501 of
this Chapter, the Secretary must grant the applicant an
original Buy Here, Pay Here used vehicle dealer's license in
writing for his or her established place of business and a
supplemental license in writing for each additional place of
business in such form as the Secretary may prescribe by rule
that shall include the following:
        (1) The name of the person licensed.
        (2) If a corporation, the name and address of its
    officers or if a sole proprietorship, a partnership, an
    unincorporated association, or any similar form of
    business organization, the name and address of the
    proprietor or of each partner, member, officer, director,
    trustee, or manager.
        (3) In the case of an original license, the
    established place of business of the licensee.
        (4) In the case of a supplemental license, the
    established place of business of the licensee and the
    additional place of business to which the supplemental
    license pertains.
        (5) The full name, address, and contact information of
    each of the dealer's agents or legal representatives who
    is an Illinois resident and liable for the performance of
    the dealership.
    (g) The appropriate instrument evidencing the license or a
certified copy thereof, provided by the Secretary of State
shall be kept posted, conspicuously, in the established place
of business of the licensee and in each additional place of
business, if any, maintained by the licensee.
    (h) Except as provided in subsection (i), all Buy Here,
Pay Here used vehicle dealer's licenses granted under this
Section expire by operation of law on December 31 of the
calendar year for which they are granted unless sooner revoked
or cancelled under Section 5-501 of this Chapter.
    (i) A Buy Here, Pay Here used vehicle dealer's license may
be renewed upon application and payment of the fee required
herein, and submission of proof of coverage by an approved
bond under the Retailers' Occupation Tax Act or proof that the
applicant is not subject to such bonding requirements, as in
the case of an original license, but in the case of an
application for the renewal of an effective license made
during the month of December, the effective license shall
remain in force until the application for renewal is granted
or denied by the Secretary of State.
    (j) Each person licensed as a Buy Here, Pay Here used
vehicle dealer is required to furnish each purchaser of a
motor vehicle:
        (1) a certificate of title properly assigned to the
    purchaser;
        (2) a statement verified under oath that all
    identifying numbers on the vehicle agree with those on the
    certificate of title;
        (3) a bill of sale properly executed on behalf of the
    person;
        (4) a copy of the Uniform Invoice-transaction
    reporting return referred to in Section 5-402;
        (5) in the case of a rebuilt vehicle, a copy of the
    Disclosure of Rebuilt Vehicle Status; and
        (6) in the case of a vehicle for which the warranty has
    been reinstated, a copy of the warranty.
    (k) Except at the time of sale or repossession of the
vehicle, no person licensed as a Buy Here, Pay Here used
vehicle dealer may issue any other person a newly created key
to a vehicle unless the Buy Here, Pay Here used vehicle dealer
makes a color photocopy or electronic scan of the driver's
license or State identification card of the person requesting
or obtaining the newly created key. The Buy Here, Pay Here used
vehicle dealer must retain the photocopy or scan for 30 days.
    A Buy Here, Pay Here used vehicle dealer who violates this
subsection (k) is guilty of a petty offense. Violation of this
subsection (k) is not cause to suspend, revoke, cancel, or
deny renewal of the used vehicle dealer's license.
    (l) A Buy Here, Pay Here used vehicle dealer licensed
under this Section shall provide the Secretary of State a
register for the sale at auction of each salvage or junk
certificate vehicle. Each register shall include the following
information:
        (1) the year, make, model, style, and color of the
    vehicle;
        (2) the vehicle's manufacturer's identification number
    or, if applicable, the Secretary of State or Illinois
    Department of State Police identification number;
        (3) the date of acquisition of the vehicle;
        (4) the name and address of the person from whom the
    vehicle was acquired;
        (5) the name and address of the person to whom any
    vehicle was disposed, the person's Illinois license number
    or, if the person is an out-of-state salvage vehicle
    buyer, the license number from the state or jurisdiction
    where the buyer is licensed; and
        (6) the purchase price of the vehicle.
    The register shall be submitted to the Secretary of State
via written or electronic means within 10 calendar days from
the date of the auction.
    (m) If a licensee under this Section voluntarily
surrenders a license to the Illinois Secretary of State Police
or a representative of the Secretary of State Vehicle Services
Department due to the licensee's inability to adhere to
recordkeeping provisions, or the inability to properly issue
certificates of title or registrations under this Code, or the
Secretary revokes a license under this Section, then the
licensee and the licensee's agent, designee, or legal
representative, if applicable, may not be named on a new
application for a licensee under this Section or under this
Chapter, nor is the licensee or the licensee's agent,
designee, or legal representative permitted to work for
another licensee under this Chapter in a recordkeeping,
management, or financial position or as an employee who
handles certificate of title and registration documents and
applications.
(Source: P.A. 101-505, eff. 1-1-20.)
 
    (625 ILCS 5/5-301)  (from Ch. 95 1/2, par. 5-301)
    Sec. 5-301. Automotive parts recyclers, scrap processors,
repairers and rebuilders must be licensed.
    (a) No person in this State shall, except as an incident to
the servicing of vehicles, carry on or conduct the business of
an automotive parts recycler, a scrap processor, a repairer,
or a rebuilder, unless licensed to do so in writing by the
Secretary of State under this Section. No person shall rebuild
a salvage vehicle unless such person is licensed as a
rebuilder by the Secretary of State under this Section. No
person shall engage in the business of acquiring 5 or more
previously owned vehicles in one calendar year for the primary
purpose of disposing of those vehicles in the manner described
in the definition of a "scrap processor" in this Code unless
the person is licensed as an automotive parts recycler by the
Secretary of State under this Section. No person shall engage
in the act of dismantling, crushing, or altering a vehicle
into another form using machinery or equipment unless licensed
to do so and only from the fixed location identified on the
license issued by the Secretary. Each license shall be applied
for and issued separately, except that a license issued to a
new vehicle dealer under Section 5-101 of this Code shall also
be deemed to be a repairer license.
    (b) Any application filed with the Secretary of State,
shall be duly verified by oath, in such form as the Secretary
of State may by rule or regulation prescribe and shall
contain:
        1. The name and type of business organization of the
    applicant and his principal or additional places of
    business, if any, in this State.
        2. The kind or kinds of business enumerated in
    subsection (a) of this Section to be conducted at each
    location.
        3. If the applicant is a corporation, a list of its
    officers, directors, and shareholders having a ten percent
    or greater ownership interest in the corporation, setting
    forth the residence address of each; if the applicant is a
    sole proprietorship, a partnership, an unincorporated
    association, a trust, or any similar form of business
    organization, the names and residence address of the
    proprietor or of each partner, member, officer, director,
    trustee or manager.
        4. A statement that the applicant's officers,
    directors, shareholders having a ten percent or greater
    ownership interest therein, proprietor, partner, member,
    officer, director, trustee, manager, or other principals
    in the business have not committed in the past three years
    any one violation as determined in any civil or criminal
    or administrative proceedings of any one of the following
    Acts:
            (a) the Anti-Theft Laws of the Illinois Vehicle
        Code;
            (b) the "Certificate of Title Laws" of the
        Illinois Vehicle Code;
            (c) the "Offenses against Registration and
        Certificates of Title Laws" of the Illinois Vehicle
        Code;
            (d) the "Dealers, Transporters, Wreckers and
        Rebuilders Laws" of the Illinois Vehicle Code;
            (e) Section 21-2 of the Criminal Code of 1961 or
        the Criminal Code of 2012, Criminal Trespass to
        Vehicles; or
            (f) the Retailers Occupation Tax Act.
        5. A statement that the applicant's officers,
    directors, shareholders having a ten percent or greater
    ownership interest therein, proprietor, partner, member,
    officer, director, trustee, manager or other principals in
    the business have not committed in any calendar year 3 or
    more violations, as determined in any civil or criminal or
    administrative proceedings, of any one or more of the
    following Acts:
            (a) the Consumer Finance Act;
            (b) the Consumer Installment Loan Act;
            (c) the Retail Installment Sales Act;
            (d) the Motor Vehicle Retail Installment Sales
        Act;
            (e) the Interest Act;
            (f) the Illinois Wage Assignment Act;
            (g) Part 8 of Article XII of the Code of Civil
        Procedure; or
            (h) the Consumer Fraud Act.
        6. An application for a license shall be accompanied
    by the following fees: $50 for applicant's established
    place of business; $25 for each additional place of
    business, if any, to which the application pertains;
    provided, however, that if such an application is made
    after June 15 of any year, the license fee shall be $25 for
    applicant's established place of business plus $12.50 for
    each additional place of business, if any, to which the
    application pertains. License fees shall be returnable
    only in the event that such application shall be denied by
    the Secretary of State.
        7. A statement that the applicant understands Chapter
    1 through Chapter 5 of this Code.
        8. A statement that the applicant shall comply with
    subsection (e) of this Section.
        9. A statement indicating if the applicant, including
    any of the applicant's affiliates or predecessor
    corporations, has been subject to the revocation or
    nonrenewal of a business license by a municipality under
    Section 5-501.5 of this Code.
        10. The applicant's National Motor Vehicle Title
    Information System number and a statement of compliance if
    applicable.
        11. The full name, address, and contact information of
    each of the dealer's agents or legal representatives who
    is an Illinois resident and liable for the performance of
    the dealership.
    (c) Any change which renders no longer accurate any
information contained in any application for a license filed
with the Secretary of State shall be amended within 30 days
after the occurrence of such change on such form as the
Secretary of State may prescribe by rule or regulation,
accompanied by an amendatory fee of $2.
    (d) Anything in this Chapter to the contrary,
notwithstanding, no person shall be licensed under this
Section unless such person shall maintain an established place
of business as defined in this Chapter.
    (e) The Secretary of State shall within a reasonable time
after receipt thereof, examine an application submitted to him
under this Section and unless he makes a determination that
the application submitted to him does not conform with the
requirements of this Section or that grounds exist for a
denial of the application, as prescribed in Section 5-501 of
this Chapter, grant the applicant an original license as
applied for in writing for his established place of business
and a supplemental license in writing for each additional
place of business in such form as he may prescribe by rule or
regulation which shall include the following:
        1. the name of the person licensed;
        2. if a corporation, the name and address of its
    officers or if a sole proprietorship, a partnership, an
    unincorporated association or any similar form of business
    organization, the name and address of the proprietor or of
    each partner, member, officer, director, trustee or
    manager;
        3. a designation of the kind or kinds of business
    enumerated in subsection (a) of this Section to be
    conducted at each location;
        4. in the case of an original license, the established
    place of business of the licensee;
        5. in the case of a supplemental license, the
    established place of business of the licensee and the
    additional place of business to which such supplemental
    license pertains; .
        6. the full name, address, and contact information of
    each of the dealer's agents or legal representatives who
    is an Illinois resident and liable for the performance of
    the dealership.
    (f) The appropriate instrument evidencing the license or a
certified copy thereof, provided by the Secretary of State
shall be kept, posted, conspicuously in the established place
of business of the licensee and in each additional place of
business, if any, maintained by such licensee. The licensee
also shall post conspicuously in the established place of
business and in each additional place of business a notice
which states that such business is required to be licensed by
the Secretary of State under Section 5-301, and which provides
the license number of the business and the license expiration
date. This notice also shall advise the consumer that any
complaints as to the quality of service may be brought to the
attention of the Attorney General. The information required on
this notice also shall be printed conspicuously on all
estimates and receipts for work by the licensee subject to
this Section. The Secretary of State shall prescribe the
specific format of this notice.
    (g) Except as provided in subsection (h) hereof, licenses
granted under this Section shall expire by operation of law on
December 31 of the calendar year for which they are granted
unless sooner revoked, nonrenewed, or cancelled under the
provisions of Section 5-501 or 5-501.5 of this Chapter.
    (h) Any license granted under this Section may be renewed
upon application and payment of the fee required herein as in
the case of an original license, provided, however, that in
case an application for the renewal of an effective license is
made during the month of December, such effective license
shall remain in force until such application is granted or
denied by the Secretary of State.
    (i) All automotive repairers and rebuilders shall, in
addition to the requirements of subsections (a) through (h) of
this Section, meet the following licensing requirements:
        1. provide proof that the property on which first time
    applicants plan to do business is in compliance with local
    zoning laws and regulations, and a listing of zoning
    classification;
        2. provide proof that the applicant for a repairer's
    license complies with the proper workers' compensation
    rate code or classification, and listing the code of
    classification for that industry;
        3. provide proof that the applicant for a rebuilder's
    license complies with the proper workers' compensation
    rate code or classification for the repair industry or the
    auto parts recycling industry and listing the code of
    classification;
        4. provide proof that the applicant has obtained or
    applied for a hazardous waste generator number, and
    listing the actual number if available or certificate of
    exemption;
        5. provide proof that applicant has proper liability
    insurance, and listing the name of the insurer and the
    policy number; and
        6. provide proof that the applicant has obtained or
    applied for the proper State sales tax classification and
    federal identification tax number, and listing the actual
    numbers if available.
    (i-1) All automotive repairers shall provide proof that
they comply with all requirements of the Automotive Collision
Repair Act.
    (j) All automotive parts recyclers shall, in addition to
the requirements of subsections (a) through (h) of this
Section, meet the following licensing requirements:
        1. provide a statement that the applicant purchases 5
    vehicles per year or has 5 hulks or chassis in stock;
        2. provide proof that the property on which all first
    time applicants will do business does comply to the proper
    local zoning laws in existence, and a listing of zoning
    classifications;
        3. provide proof that applicant complies with the
    proper workers' compensation rate code or classification,
    and listing the code of classification; and
        4. provide proof that applicant has obtained or
    applied for the proper State sales tax classification and
    federal identification tax number, and listing the actual
    numbers if available.
(Source: P.A. 100-409, eff. 8-25-17; 101-572, eff. 8-23-19.)
 
    (625 ILCS 5/5-505 new)
    Sec. 5-505. License suspension or revocation; penalty. The
Secretary shall suspend the license of any licensee under this
Chapter who permits an individual who is not an authorized
agent or employee of the licensee to use the license of the
licensee to purchase a vehicle from an auction. The suspension
shall be for a period of no less than 30 days for the first
violation. Upon a second or subsequent violation, the
Secretary shall revoke the license of the licensee.