Bill Text: IL HB4925 | 2023-2024 | 103rd General Assembly | Chaptered
Bill Title: Reinserts the provisions of the engrossed bill. Defines "substantial cost" as an amount equal to or greater than 10% of a motorcycle dealer's average annual net profits for the 3 years preceding the proposed improvements to the dealer's facility. Effective immediately.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-0839 [HB4925 Detail]
Download: Illinois-2023-HB4925-Chaptered.html
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| Public Act 103-0839 | ||||
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AN ACT concerning business.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Motor Vehicle Franchise Act is amended by | ||||
changing Section 10.1 as follows:
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(815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1) | ||||
Sec. 10.1. (a) As used in this Section, "motorcycle" means | ||||
every motor vehicle having a seat or saddle for the use of the | ||||
rider and designed to travel with 3 or less wheels in contact | ||||
with the ground, excluding farm, garden, and lawn equipment, | ||||
and including off-highway vehicles. | ||||
(b) It shall be deemed a violation for a manufacturer, a | ||||
distributor, a wholesaler, a distributor branch or division, | ||||
or officer, agent, or other representative thereof: | ||||
(1) To require a motorcycle franchisee to participate | ||||
in a retail financing plan or retail leasing plan or to | ||||
participate in any retail consumer insurance plan. | ||||
(2) To own, to operate or to control any motorcycle | ||||
dealership in this State for a period longer than 2 years. | ||||
(3) (Blank). | ||||
(4) To require a motorcycle dealer to utilize | ||||
manufacturer approved floor fixtures for the display of | ||||
any product that is not a product of the manufacturer. | ||||
(5) To require a motorcycle dealer to purchase | ||
lighting fixtures that are to be installed in the | ||
dealership only from the manufacturer's approved vendors. | ||
(6) To require a motorcycle dealer to relocate to a | ||
new or alternate facility. | ||
(7) To coerce or require any motorcycle dealer to | ||
construct improvements to the dealer's facility at a | ||
substantial cost to the dealer or to condition any | ||
motorcycle dealer's eligibility for payments under any | ||
discount, credit, rebate, sales incentive, or similar | ||
program on the dealer constructing improvements to the | ||
dealer's facility at a substantial cost to the dealer. As | ||
used in this paragraph (7), "substantial cost" means an | ||
amount equal to or greater than 10% of a motorcycle | ||
dealer's average annual net profits for the 3 years | ||
preceding the proposed improvements to that dealer's | ||
facility. | ||
Whenever any motorcycle dealer enters into a franchise | ||
agreement, evidenced by a contract, with a wholesaler, | ||
manufacturer, or distributor wherein the franchisee agrees to | ||
maintain an inventory and the contract is terminated by the | ||
wholesaler, manufacturer, distributor, or franchisee, then the | ||
franchisee may require the repurchase of the inventory as | ||
provided for in this Act. If the franchisee has any | ||
outstanding debts to the wholesaler, manufacturer, or | ||
distributor, then the repurchase amount may be credited to the | ||
franchisee's account. The franchise agreement shall either | ||
expressly or by operation of law have as part of its terms a | ||
security agreement whereby the wholesaler, manufacturer, or | ||
distributor agrees to and does grant a security interest to | ||
the motorcycle dealer in the repurchased inventory to secure | ||
payment of the repurchase amount to the dealer. The | ||
perfection, priority, and other matters relating to the | ||
security interest shall be governed by Article 9 of the | ||
Uniform Commercial Code. The provisions of this Section shall | ||
not be construed to affect in any way any security interest | ||
that any financial institution, person, wholesaler, | ||
manufacturer, or distributor may have in the inventory of the | ||
motorcycle dealer. | ||
(c) The provisions of this Section 10.1 are applicable to | ||
all new or existing motorcycle franchisees and franchisers and | ||
are in addition to the other rights and remedies provided in | ||
this Act, and, in the case of a conflict with other provisions | ||
contained in this Act, with respect to motorcycle franchises, | ||
this Section shall be controlling. | ||
(d) The filing of a timely protest by a motorcycle | ||
franchise before the Motor Vehicle Review Board as prescribed | ||
by Sections 12 and 29 of this Act, shall stay the effective | ||
date of a proposed additional franchise or selling agreement, | ||
or the effective date of a proposed motorcycle dealership | ||
relocation, or the effective date of a cancellation, | ||
termination, or modification, or extend the expiration date of | ||
a franchise or selling agreement by refusal to honor | ||
succession to ownership or refusal to approve a sale or | ||
transfer pending a final determination of the issues in the | ||
hearing. | ||
(Source: P.A. 100-863, eff. 8-14-18.)
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