Bill Text: IL HB2508 | 2013-2014 | 98th General Assembly | Chaptered
Bill Title: Amends the Motor Vehicle Franchise Act. Provides that it is a violation of the Act to require a motorcycle dealer to (1) install fixtures, lighting, or displays not specifically related to products not made by the manufacturer, (2) buy fixtures or lighting only from the manufacturer's approved distributor, (3) segregate certain aftermarket products away from the other manufacturer's products, or (4) locate to a new or alternate facility.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-08-16 - Public Act . . . . . . . . . 98-0424 [HB2508 Detail]
Download: Illinois-2013-HB2508-Chaptered.html
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| Public Act 098-0424 | ||||
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AN ACT concerning business.
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Be it enacted by the People of the State of Illinois,
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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)
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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.
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(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:
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(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.
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(2) To own, to operate or to control any motorcycle | ||||
dealership in this
State for a period longer than 2 years.
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(3) 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
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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
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inventory of the motorcycle dealer.
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(4) To require a motorcycle dealer to utilize
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manufacturer approved floor fixtures for the display of any
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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. | ||
(c) The provisions of this Section 10.1 are applicable to | ||
all new or
existing
motorcycle
franchisees and franchisors 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,
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this Section shall be controlling.
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(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
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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,
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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.
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(Source: P.A. 91-142, eff. 7-16-99.)
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