Public Act 099-0593

HB1056 Enrolled LRB099 04886 RJF 24915 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

Section 5-401.2 and by adding Section 5-101.2 as follows:

(625 ILCS 5/5-101.2 new)

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 a manufactured home or

park model that is located within the manufactured home

community or is located in a different manufactured home

community 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 5 or more

manufactured homes during the calendar year not on

behalf of a manufacturer of manufactured homes, 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, 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.

(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

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.

(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.

(625 ILCS 5/5-401.2) (from Ch. 95 1/2, par. 5-401.2)

Sec. 5-401.2. Licensees required to keep records and make

inspections.

(a) Every person licensed or required to be licensed under

Section 5-101, 5-101.1, 5-101.2, 5-102, 5-301 or 5-302 of this

Code, shall, with the exception of scrap processors, maintain

for 3 years, in a form as the Secretary of State may by rule or

regulation prescribe, at his established place of business,

additional place of business, or principal place of business if

licensed under Section 5-302, the following records relating to

the acquisition or disposition of vehicles and their essential

parts possessed in this State, brought into this State from

another state, territory or country, or sold or transferred to

another person in this State or in another state, territory, or

country.

(1) The following records pertaining to new or used

vehicles shall be kept:

(A) the year, make, model, style and color of the

vehicle;

(B) the vehicle's manufacturer's identification

number or, if applicable, the Secretary of State or

Illinois Department of State Police identification

number;

(C) the date of acquisition of the vehicle;

(D) the name and address of the person from whom

the vehicle was acquired and, if that person is a

dealer, the Illinois or out-of-state dealer license

number of such person;

(E) the signature of the person making the

inspection of a used vehicle as required under

subsection (d) of this Section, if applicable;

(F) the purchase price of the vehicle, if

applicable;

(G) the date of the disposition of the vehicle;

(H) the name and address of the person to whom any

vehicle was disposed, and if that person is a dealer,

the Illinois or out-of-State dealer's license number

of that dealer;

(I) the uniform invoice number reflecting the

disposition of the vehicle, if applicable; and

(J) The sale price of the vehicle, if applicable.

(2) (A) The following records pertaining to used

essential parts other than quarter panels and

transmissions of vehicles of the first division shall be

kept:

(i) the year, make, model, color and type of such

part;

(ii) the vehicle's manufacturer's identification

number, derivative number, or, if applicable, the

Secretary of State or Illinois Department of State

Police identification number of such part;

(iii) the date of the acquisition of each part;

(iv) the name and address of the person from whom

the part was acquired and, if that person is a dealer,

the Illinois or out-of-state dealer license number of

such person; if the essential part being acquired is

from a person other than a dealer, the licensee shall

verify and record that person's identity by recording

the identification numbers from at least two sources of

identification, one of which shall be a drivers license

or State identification card;

(v) the uniform invoice number or out-of-state

bill of sale number reflecting the acquisition of such

part;

(vi) the stock number assigned to the essential

part by the licensee, if applicable;

(vii) the date of the disposition of such part;

(viii) the name and address of the person to whom

such part was disposed of and, if that person is a

dealer, the Illinois or out-of-state dealer license

number of that person;

(ix) the uniform invoice number reflecting the

disposition of such part.

(B) Inspections of all essential parts shall be

conducted in accordance with Section 5-402.1.

(C) A separate entry containing all of the information

required to be recorded in subparagraph (A) of paragraph

(2) of subsection (a) of this Section shall be made for

each separate essential part. Separate entries shall be

made regardless of whether the part was a large purchase

acquisition. In addition, a separate entry shall be made

for each part acquired for immediate sale or transfer, or

for placement into the overall inventory or stock to be

disposed of at a later time, or for use on a vehicle to be

materially altered by the licensee, or acquired for any

other purpose or reason. Failure to make a separate entry

for each essential part acquired or disposed of, or a

failure to record any of the specific information required

to be recorded concerning the acquisition or disposition of

each essential part as set forth in subparagraph (A) of

paragraph (2) of subsection (a) shall constitute a failure

to keep records.

(D) The vehicle's manufacturer's identification number

or Secretary of State or Illinois Department of State

Police identification number for the essential part shall

be ascertained and recorded even if such part is acquired

from a person or dealer located in a State, territory, or

country which does not require that such information be

recorded. If the vehicle's manufacturer's identification

number or Secretary of State or Illinois Department of

State Police identification number for an essential part

cannot be obtained, that part shall not be acquired by the

licensee or any of his agents or employees. If such part or

parts were physically acquired by the licensee or any of

his agents or employees while the licensee or agent or

employee was outside this State, that licensee or agent or

employee was outside the State, that licensee, agent or

employee shall not bring such essential part into this

State or cause it to be brought into this State. The

acquisition or disposition of an essential part by a

licensee without the recording of the vehicle

identification number or Secretary of State identification

number for such part or the transportation into the State

by the licensee or his agent or employee of such part or

parts shall constitute a failure to keep records.

(E) The records of essential parts required to be kept

by this Section shall apply to all hulks, chassis, frames

or cowls, regardless of the age of those essential parts.

The records required to be kept by this Section for

essential parts other than hulks, chassis, frames or cowls,

shall apply only to those essential parts which are 6 model

years of age or newer. In determining the model year of

such an essential part it may be presumed that the

identification number of the vehicle from which the

essential part came or the identification number affixed to

the essential part itself acquired by the licensee denotes

the model year of that essential part. This presumption,

however, shall not apply if the gross appearance of the

essential part does not correspond to the year, make or

model of either the identification number of the vehicle

from which the essential part is alleged to have come or

the identification number which is affixed to the essential

part itself. To determine whether an essential part is 6

years of age or newer within this paragraph, the model year

of the essential part shall be subtracted from the calendar

year in which the essential part is acquired or disposed of

by the licensee. If the remainder is 6 or less, the record

of the acquisition or disposition of that essential part

shall be kept as required by this Section.

(F) The requirements of paragraph (2) of subsection (a)

of this Section shall not apply to the disposition of an

essential part other than a cowl which has been damaged or

altered to a state in which it can no longer be returned to

a usable condition and which is being sold or transferred

to a scrap processor or for delivery to a scrap processor.

(3) the following records for vehicles on which junking

certificates are obtained shall be kept:

(A) the year, make, model, style and color of the

vehicle;

(B) the vehicle's manufacturer's identification number

or, if applicable, the Secretary of State or Illinois

Department of State Police identification number;

(C) the date the vehicle was acquired;

(D) the name and address of the person from whom the

vehicle was acquired and, if that person is a dealer, the

Illinois or out-of-state dealer license number of that

person;

(E) the certificate of title number or salvage

certificate number for the vehicle, if applicable;

(F) the junking certificate number obtained by the

licensee; this entry shall be recorded at the close of

business of the fifth business day after receiving the

junking certificate;

(G) the name and address of the person to whom the

junking certificate has been assigned, if applicable, and

if that person is a dealer, the Illinois or out-of-state

dealer license number of that dealer;

(H) if the vehicle or any part of the vehicle is

dismantled for its parts to be disposed of in any way, or

if such parts are to be used by the licensee to materially

alter a vehicle, those essential parts shall be recorded

and the entries required by paragraph (2) of subsection (a)

shall be made.

(4) The following records for rebuilt vehicles shall be

kept:

(A) the year, make, model, style and color of the

vehicle;

(B) the vehicle's manufacturer's identification number

of the vehicle or, if applicable, the Secretary of State or

Illinois Department of State Police identification number;

(C) the date the vehicle was acquired;

(D) the name and address of the person from whom the

vehicle was acquired, and if that person is a dealer, the

Illinois or out-of-state dealer license number of that

person;

(E) the salvage certificate number for the vehicle;

(F) the newly issued certificate of title number for

the vehicle;

(G) the date of disposition of the vehicle;

(H) the name and address of the person to whom the

vehicle was disposed, and if a dealer, the Illinois or

out-of-state dealer license number of that dealer;

(I) The sale price of the vehicle.

(a-1) A person licensed or required to be licensed under

Section 5-101 or Section 5-102 of this Code who issues

temporary registration permits as permitted by this Code and by

rule must electronically file the registration with the

Secretary and must maintain records of the registration in the

manner prescribed by the Secretary.

(b) A failure to make separate entries for each vehicle

acquired, disposed of, or assigned, or a failure to record any

of the specific information required to be recorded concerning

the acquisition or disposition of each vehicle as set forth in

paragraphs (1), (3) and (4) of subsection (a) shall constitute

a failure to keep records.

(c) All entries relating to the acquisition of a vehicle or

essential part required by subsection (a) of this Section shall

be recorded no later than the close of business on the seventh

calendar day following such acquisition. All entries relating

to the disposition of a vehicle or an essential part shall be

made at the time of such disposition. If the vehicle or

essential part was disposed of on the same day as its

acquisition or the day thereafter, the entries relating to the

acquisition of the vehicle or essential part shall be made at

the time of the disposition of the vehicle or essential part.

Failure to make the entries required in or at the times

prescribed by this subsection following the acquisition or

disposition of such vehicle or essential part shall constitute

a failure to keep records.

(d) Every person licensed or required to be licensed shall,

before accepting delivery of a used vehicle, inspect the

vehicle to determine whether the manufacturer's public vehicle

identification number has been defaced, destroyed, falsified,

removed, altered, or tampered with in any way. If the person

making the inspection determines that the manufacturer's

public vehicle identification number has been altered,

removed, defaced, destroyed, falsified or tampered with he

shall not acquire that vehicle but instead shall promptly

notify law enforcement authorities of his finding.

(e) The information required to be kept in subsection (a)

of this Section shall be kept in a manner prescribed by rule or

regulation of the Secretary of State.

(f) Every person licensed or required to be licensed shall

have in his possession a separate certificate of title, salvage

certificate, junking certificate, certificate of purchase,

uniform invoice, out-of-state bill of sale or other acceptable

documentary evidence of his right to the possession of every

vehicle or essential part.

(g) Every person licensed or required to be licensed as a

transporter under Section 5-201 shall maintain for 3 years, in

such form as the Secretary of State may by rule or regulation

prescribe, at his principal place of business a record of every

vehicle transported by him, including numbers of or other marks

of identification thereof, the names and addresses of persons

from whom and to whom the vehicle was delivered and the dates

of delivery.

(h) No later than 15 days prior to going out of business,

selling the business, or transferring the ownership of the

business, the licensee shall notify the Secretary of State that

he is going out of business or that he is transferring the

ownership of the business. Failure to notify under this

paragraph shall constitute a failure to keep records.

(i) (Blank).

(j) A person who knowingly fails to comply with the

provisions of this Section or knowingly fails to obey, observe,

or comply with any order of the Secretary or any law

enforcement agency issued in accordance with this Section is

guilty of a Class B misdemeanor for the first violation and a

Class A misdemeanor for the second and subsequent violations.

Each violation constitutes a separate and distinct offense and

a separate count may be brought in the same indictment or

information for each vehicle or each essential part of a

vehicle for which a record was not kept as required by this

Section.

(k) Any person convicted of failing to keep the records

required by this Section with intent to conceal the identity or

origin of a vehicle or its essential parts or with intent to

defraud the public in the transfer or sale of vehicles or their

essential parts is guilty of a Class 2 felony. Each violation

constitutes a separate and distinct offense and a separate

count may be brought in the same indictment or information for

each vehicle or essential part of a vehicle for which a record

was not kept as required by this Section.

(l) A person may not be criminally charged with or

convicted of both a knowing failure to comply with this Section

and a knowing failure to comply with any order, if both

offenses involve the same record keeping violation.

(m) The Secretary shall adopt rules necessary for

implementation of this Section, which may include the

imposition of administrative fines.

(Source: P.A. 91-415, eff. 1-1-00; 92-773, eff. 8-6-02.)