Public Act 103-0839

HB4925 Enrolled LRB103 37949 SPS 68081 b

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.

(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.)