Bill Text: IL HB4925 | 2023-2024 | 103rd General Assembly | Engrossed

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

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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-Engrossed.html

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AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Motor Vehicle Franchise Act is amended by
changing Section 10.1 as follows:
(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.

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(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.
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

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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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