Bill Text: IL HB0880 | 2011-2012 | 97th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Vehicle Code. Makes a technical change in a Section concerning definitions.

Spectrum: Moderate Partisan Bill (Democrat 9-1)

Status: (Passed) 2011-08-22 - Public Act . . . . . . . . . 97-0480 [HB0880 Detail]

Download: Illinois-2011-HB0880-Engrossed.html

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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 5-101, 5-102, and 5-501 and by adding Section 5-102.7
as follows:
(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.

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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

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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

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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

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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

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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) paragraph (7)(A) of subsection (b) of
this Section 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) paragraph (7)(A) of subsection (b) of
this Section 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 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

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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.
(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) subsection 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

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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

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Rebuilders Laws of the Illinois Vehicle Code;
(E) Section 21-2 of the Criminal Code of 1961,
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.
10. A bond or certificate of deposit in the amount of
$20,000 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

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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
One through Chapter Five of this Code.
(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

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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

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is licensed to sell.
(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;

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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 copy 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
copy 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.
(Source: P.A. 92-391, eff. 8-16-01; 92-835, eff. 6-1-03; 93-32,
eff. 7-1-03.)

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(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

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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

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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

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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;

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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) Section for the 2004 licensing year
and thereafter, 95% shall be deposited into the General
Revenue Fund.
(B) 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 (B) shall be deposited into the
Dealer Recovery Trust Fund.
6. A statement that the applicant's officers,

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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, 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

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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.
8. A bond or Certificate of Deposit in the amount of
$20,000 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.

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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.
(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;

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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.
(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

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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

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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 copy 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
copy 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;

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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.
(Source: P.A. 95-783, eff. 1-1-09; 96-678, eff. 8-25-09.)
(625 ILCS 5/5-102.7 new)
Sec. 5-102.7. Dealer Recovery Trust Fund.
(a) The General Assembly finds that motor vehicle dealers
that go out of business without fulfilling agreements to pay
off the balance of their customers' liens on traded-in vehicles
cause financial harm to those customers by leaving those
customers liable for multiple vehicle loans and cause harm to
the integrity of the motor vehicle retailing industry. It is
the intent of the General Assembly to protect vehicle

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purchasers by creating a Dealer Recovery Trust Fund to
reimburse these consumers.
(b) The Dealer Recovery Trust Fund shall be used solely for
the limited purpose of helping victims of dealership closings.
Any interest accrued by moneys in the Fund shall be deposited
and become part of the Dealer Recovery Trust Fund and its
purpose. The sole beneficiaries of the Dealer Recovery Trust
Fund are victims of dealership closings.
(c) Except where the context otherwise requires, the
following words and phrases, when used in this Section, have
the meanings ascribed to them in this subsection (c):
"Applicant" means a person who applies for reimbursement
from the Dealer Recovery Trust Fund Board.
"Board" means the Dealer Recovery Trust Fund Board created
under this Section.
"Dealer" means a new vehicle dealer licensed under Section
5-101 or a used vehicle dealer licensed under Section 5-102,
excepting a dealer who primarily sells mobile homes,
recreational vehicles, or trailers.
"Fund" means the Dealer Recovery Trust Fund created under
this Section.
"Fund Administrator" means the private entity, which shall
be appointed by the Board, that administers the Dealer Recovery
Trust Fund.
(d) Beginning October 1, 2011, each application or renewal
for a new vehicle dealer's license and each application or

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renewal for a used vehicle dealer's license shall be
accompanied by the applicable Annual Dealer Recovery Fund Fee
under Section 5-101 or 5-102 of this Code. The fee shall be in
addition to any other fees imposed under this Article, shall be
submitted at the same time an application or renewal for a new
vehicle dealer's license or used vehicle dealer's license is
submitted, and shall be made payable to and remitted directly
to the Dealer Recovery Trust Fund, a trust fund outside of the
State Treasury which is hereby created. In addition, the Dealer
Recovery Trust Fund may accept any federal, State, or private
moneys for deposit into the Fund.
(e) The Fund Administrator shall maintain a list of all
dealers who have paid the fee under subsection (d) of this
Section for the current year, which shall be available to the
Secretary of State and the Board. The Secretary of State shall
revoke the dealer license of any dealer who does not pay the
fee imposed under subsection (d) of this Section. The Secretary
of State and the Fund Administrator may enter into information
sharing agreements as needed to implement this Section.
(f) The Fund shall be audited annually by an independent
auditor who is a certified public accountant and who has been
selected by the Board. The independent auditor shall compile an
annual report, which shall be filed with the Board and shall be
a public record. The auditor shall be paid by the Fund,
pursuant to an order of the Board.
(g) The Fund shall be maintained by the Fund Administrator,

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who shall keep current records of the amounts deposited into
the Fund and the amounts paid out of the Fund pursuant to an
order of the Board. These records shall be made available to
all members of the Board upon reasonable request during normal
business hours. The Fund Administrator shall report the balance
in the Fund to the Board monthly, by the 15th day of each
month. For purposes of determining the amount available to pay
claims under this Section at any meeting of the Board, the
Board shall use the Fund Administrator's most recent monthly
report. The Fund Administrator shall purchase liability
insurance to cover management of the Fund at a cost not to
exceed 2% of the balance in the Fund as of January 15th of that
year.
(h) In any year for which the balance in the Fund as of
August 31st is greater than $3,500,000, the Fund Administrator
shall notify the Secretary of State and the Secretary of State
shall suspend collection of the fee for the following year for
any dealer who has not had a claim paid from the Fund, has not
had his or her license suspended or revoked, and has not been
assessed any civil penalties under this Code during the 3
previous years.
(i) Moneys in the Dealer Recovery Trust Fund may be paid
from the Fund only as directed by a written order of the Board
and used only for the following purposes:
(i) to pay claims under a written order of the Board as
provided in this Section; or

HB0880 Engrossed - 29 - LRB097 03709 HEP 43746 b
(ii) to reimburse the Fund Administrator for its
expenses related to the administration of the Fund,
provided that the reimbursement to the Fund Administrator
in any year shall not exceed 2% of the balance in the Fund
as of January 15th of that year.
(j) The Dealer Recovery Trust Fund Board is hereby created.
The Board shall consist of the Secretary of State, or his or
her designee, who shall serve as chair, the Attorney General,
or his or her designee, who shall serve as secretary, and one
person representing Illinois automobile dealers, selected
collectively by the Attorney General, or his or her designee,
and the Secretary of State, or his or her designee. The
Secretary of State may propose procedures and employ personnel
as necessary to implement this Section. The Board shall meet at
least twice per year, and as needed, as directed by the chair.
The Board may not pay out any claims before the balance
deposited into the Fund exceeds $500,000. Board meetings shall
be open to the public. The Board has the authority to take any
action by at least a two-thirds majority vote.
(k) The following persons may apply to the Board for
reimbursement from the Dealer Recovery Trust Fund:
(i) A retail customer who, on or after October 1, 2011,
purchases a vehicle from a dealer who subsequently files
for bankruptcy or whose vehicle dealer's license is
subsequently revoked by the Secretary of State or otherwise
terminated and, as part of the purchase transaction, trades

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in a vehicle with an outstanding lien to the dealer if lien
satisfaction was a condition of the purchase agreement and
the retail customer determines that the lien has not been
satisfied;
(ii) A retail customer who, on or after October 1,
2011, purchases a vehicle with an undisclosed lien from a
dealer who subsequently files for bankruptcy or whose
vehicle dealer's license is subsequently revoked by the
Secretary of State or otherwise terminated;
(iii) A dealer who, on or after October 1, 2011,
purchases a vehicle with an undisclosed lien from another
dealer who subsequently files for bankruptcy or whose
vehicle dealer's license is subsequently revoked by the
Secretary of State or otherwise terminated.
(l) To be considered by the Board, an applicant must submit
his or her claim to the Board within 9 months after the date of
the transaction that gave rise to the claim.
(m) At each meeting of the Board, it shall consider all
claims that are properly submitted to it on forms prescribed by
the Secretary of State at least 30 days before the date of the
Board's meeting. Before the Board may consider a claim against
a dealer, it must make a written determination that the dealer
has filed for bankruptcy under the provisions of 11 U.S.C.
Chapter 7; that the Secretary of State has revoked his or her
dealer's license; or that the license has been otherwise
terminated. Once the Board has made this determination, it may

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consider the applicant's claim against the dealer. If a
two-thirds majority of the Board determines that the dealer has
committed a violation under subsection (k), it shall grant the
applicant's claim. Except as otherwise provided in this
Section, the maximum amount of any award for a claim under
paragraph (i) of subsection (k) of this Section shall be equal
to the amount of the unpaid balance of the lien that the dealer
agreed to pay off on behalf of the applicant as shown on the
bill of sale or the retail installment sales contract. The
maximum amount of any claim under paragraph (ii) or (iii) of
subsection (k) of this Section shall be equal to the amount of
the undisclosed lien. However, no award for a claim under
subsection (k) of this Section shall exceed $35,000.
(n) If the balance in the Fund at the time of any Board
meeting is less than the amount of the total amount of all
claims awarded at that meeting, then all awards made at that
meeting shall be reduced, pro rata, so that the amount of
claims does not exceed the balance in the Fund. Before it
reviews new claims, the Board shall issue written orders to pay
the remaining portion of any claims that were so reduced,
provided that the balance in the Fund is sufficient to pay
those claims.
(o) Whenever the balance of the Fund falls below $500,000,
the Board may charge dealers an additional assessment of up to
$50 to bring the balance to at least $500,000. Not more than
one additional assessment may be made against a dealer in any

HB0880 Engrossed - 32 - LRB097 03709 HEP 43746 b
12-month period.
(p) If the total amount of claims awarded against any
dealer exceeds 33% of the balance in the Fund, the Board may
permanently reduce the amount of those claims, pro rata, so
that those claims do not exceed 33% of the balance in the Fund.
(q) The Board shall issue a written order directing the
Fund Administrator to pay an applicant's claim to a secured
party where the Board has received a signed agreement between
the applicant and the secured party holding the lien. The
agreement must (i) state that the applicant and the secured
party agree to accept payment from the Fund to the secured
party as settlement in full of all claims against the dealer;
and (ii) release the lien and the title, if applicable, to the
vehicle that was the subject of the claim. The written order
shall state the amount of the claim and the name and address of
the secured party to whom the claim shall be paid. The Fund
Administrator shall pay the claim within 30 days after it
receives the Board's order.
(r) No dealer or principal associated with a dealer's
license is eligible for licensure, renewal or relicensure until
the full amount of reimbursement for an unpaid claim, plus
interest as determined by the Board, is paid to the Fund.
Nothing in this Section shall limit the authority of the
Secretary of State to suspend, revoke, or levy civil penalties
against a dealer, nor shall full repayment of the amount owed
to the Fund nullify or modify the effect of any action by the

HB0880 Engrossed - 33 - LRB097 03709 HEP 43746 b
Secretary.
(s) Nothing in this Section shall limit the right of any
person to seek relief though civil action against any other
person as an alternative to seeking reimbursement from the
Fund.
(625 ILCS 5/5-501) (from Ch. 95 1/2, par. 5-501)
Sec. 5-501. Denial, suspension or revocation or
cancellation of a license.
(a) The license of a person issued under this Chapter may
be denied, revoked or suspended if the Secretary of State finds
that the applicant, or the officer, director, shareholder
having a ten percent or greater ownership interest in the
corporation, owner, partner, trustee, manager, employee or the
licensee has:
1. Violated this Act;
2. Made any material misrepresentation to the
Secretary of State in connection with an application for a
license, junking certificate, salvage certificate, title
or registration;
3. Committed a fraudulent act in connection with
selling, bartering, exchanging, offering for sale or
otherwise dealing in vehicles, chassis, essential parts,
or vehicle shells;
4. As a new vehicle dealer has no contract with a
manufacturer or enfranchised distributor to sell that new

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vehicle in this State;
5. Not maintained an established place of business as
defined in this Code;
6. Failed to file or produce for the Secretary of State
any application, report, document or other pertinent
books, records, documents, letters, contracts, required to
be filed or produced under this Code or any rule or
regulation made by the Secretary of State pursuant to this
Code;
7. Previously had, within 3 years, such a license
denied, suspended, revoked, or cancelled under the
provisions of subsection (c)(2) of this Section;
8. Has committed in any calendar year 3 or more
violations, as determined in any civil or criminal
proceeding, 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. "An Act in relation to the rate of interest and
other charges in connection with sales on credit and
the lending of money", approved May 24, 1879, as
amended;
f. "An Act to promote the welfare of wage-earners
by regulating the assignment of wages, and prescribing

HB0880 Engrossed - 35 - LRB097 03709 HEP 43746 b
a penalty for the violation thereof", approved July 1,
1935, as amended;
g. Part 8 of Article XII of the Code of Civil
Procedure; or
h. the "Consumer Fraud Act";
9. Failed to pay any fees or taxes due under this Act,
or has failed to transmit any fees or taxes received by him
for transmittal by him to the Secretary of State or the
State of Illinois;
10. Converted an abandoned vehicle;
11. Used a vehicle identification plate or number
assigned to a vehicle other than the one to which
originally assigned;
12. Violated the provisions of Chapter 5 of this Act,
as amended;
13. Violated the provisions of Chapter 4 of this Act,
as amended;
14. Violated the provisions of Chapter 3 of this Act,
as amended;
15. Violated Section 21-2 of the Criminal Code of 1961,
Criminal Trespass to Vehicles;
16. Made or concealed a material fact in connection
with his application for a license;
17. Acted in the capacity of a person licensed or acted
as a licensee under this Chapter without having a license
therefor;

HB0880 Engrossed - 36 - LRB097 03709 HEP 43746 b
18. Failed to pay, within 90 days after a final
judgment, any fines assessed against the licensee pursuant
to an action brought under Section 5-404; .
19. Failed to pay the Dealer Recovery Trust Fund fee
under Section 5-102.7 of this Code.
(b) In addition to other grounds specified in this Chapter,
the Secretary of State, on complaint of the Department of
Revenue, shall refuse the issuance or renewal of a license, or
suspend or revoke such license, for any of the following
violations of the "Retailers' Occupation Tax Act":
1. Failure to make a tax return;
2. The filing of a fraudulent return;
3. Failure to pay all or part of any tax or penalty
finally determined to be due;
4. Failure to comply with the bonding requirements of
the "Retailers' Occupation Tax Act".
(b-1) In addition to other grounds specified in this
Chapter, the Secretary of State, on complaint of the Motor
Vehicle Review Board, shall refuse the issuance or renewal of a
license, or suspend or revoke that license, if costs or fees
assessed under Section 29 or Section 30 of the Motor Vehicle
Franchise Act have remained unpaid for a period in excess of 90
days after the licensee received from the Motor Vehicle Board a
second notice and demand for the costs or fees. The Motor
Vehicle Review Board must send the licensee written notice and
demand for payment of the fees or costs at least 2 times, and

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the second notice and demand must be sent by certified mail.
(c) Cancellation of a license.
1. The license of a person issued under this Chapter
may be cancelled by the Secretary of State prior to its
expiration in any of the following situations:
A. When a license is voluntarily surrendered, by
the licensed person; or
B. If the business enterprise is a sole
proprietorship, which is not a franchised dealership,
when the sole proprietor dies or is imprisoned for any
period of time exceeding 30 days; or
C. If the license was issued to the wrong person or
corporation, or contains an error on its face. If any
person above whose license has been cancelled wishes to
apply for another license, whether during the same
license year or any other year, that person shall be
treated as any other new applicant and the cancellation
of the person's prior license shall not, in and of
itself, be a bar to the issuance of a new license.
2. The license of a person issued under this Chapter
may be cancelled without a hearing when the Secretary of
State is notified that the applicant, or any officer,
director, shareholder having a 10 per cent or greater
ownership interest in the corporation, owner, partner,
trustee, manager, employee or member of the applicant or
the licensee has been convicted of any felony involving the

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selling, bartering, exchanging, offering for sale, or
otherwise dealing in vehicles, chassis, essential parts,
vehicle shells, or ownership documents relating to any of
the above items.
(Source: P.A. 94-287, eff. 1-1-06.)
Section 99. Effective date. This Act takes effect October
1, 2011.