Public Act 098-0450

HB2773 Enrolled LRB098 08411 MLW 38517 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 5-101, 5-102, and 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.

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.

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

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

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.

(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 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. 97-480, eff. 10-1-11; 97-1150, eff. 1-25-13.)

(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 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.

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;

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

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 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;

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. 96-678, eff. 8-25-09; 97-480, eff. 10-1-11;

97-1150, eff. 1-25-13.)

(625 ILCS 5/5-102.7)

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

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 or any dealer who sells 25

vehicles or fewer per calendar year.

"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

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,

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

(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 alternatively representing new and independent 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 quarterly, 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

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 2 years 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

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

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

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.

(Source: P.A. 97-480, eff. 10-1-11.)