Bill Text: IL HB3269 | 2019-2020 | 101st General Assembly | Chaptered

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Bill Title: Amends the Alternative Fuels Act. Provides that the Secretary of State may collect user fees for vehicles of the Second Division registered under plate category C. Amends the Illinois Vehicle Code. Provides that a dealer may use a special plate issued to the dealer to transport a vehicle sold to a customer either by towing or by driving the sold vehicle with the special plate attached to the vehicle. Provides that the Secretary may limit the number of special plates authorized that are issued to dealers, manufacturers, or transporters based on factors including, but not limited to, sales of vehicles, revenue, or number of employees. Adds background check and education requirements for applicants for a remittance agent license. Adds requirements for licensure of a new vehicle dealer or a used vehicle dealer. Defines "Buy Here, Pay Here used vehicle dealer" and creates licensure requirements for a Buy Here, Pay Here used vehicle dealer. Provides that the Secretary may create special dealership licenses for entities that specialize in specific types of used motor vehicles that may be based on model, make, age, or other factors that the Secretary deems appropriate. Provides that any owner who is not a manufacturer of the vehicle and chooses to lease a used vehicle for a period of less than 12 months shall ensure that the lessee maintains valid registration and liability insurance and shall not collect any fees in connection with the registration of the vehicle unless the owner is also a licensed remittance agent.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0505 [HB3269 Detail]

Download: Illinois-2019-HB3269-Chaptered.html

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Public Act 101-0505
HB3269 Enrolled LRB101 10800 TAE 55929 b
AN ACT concerning transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Alternate Fuels Act is amended by changing
Section 35 as follows:
(415 ILCS 120/35)
Sec. 35. User fees.
(a) The Office of the Secretary of State shall collect
annual user fees from any individual, partnership,
association, corporation, or agency of the United States
government that registers any combination of 10 or more of the
following types of motor vehicles in the Covered Area: (1)
vehicles of the First Division, as defined in the Illinois
Vehicle Code; (2) vehicles of the Second Division registered
under the B, C, D, F, H, MD, MF, MG, MH and MJ plate categories,
as defined in the Illinois Vehicle Code; and (3) commuter vans
and livery vehicles as defined in the Illinois Vehicle Code.
This Section does not apply to vehicles registered under the
International Registration Plan under Section 3-402.1 of the
Illinois Vehicle Code. The user fee shall be $20 for each
vehicle registered in the Covered Area for each fiscal year.
The Office of the Secretary of State shall collect the $20 when
a vehicle's registration fee is paid.

(b) Owners of State, county, and local government vehicles,
rental vehicles, antique vehicles, expanded-use antique
vehicles, electric vehicles, and motorcycles are exempt from
paying the user fees on such vehicles.
(c) The Office of the Secretary of State shall deposit the
user fees collected into the Alternate Fuels Fund.
(Source: P.A. 97-412, eff. 1-1-12.)
Section 10. The Illinois Vehicle Code is amended by
changing Sections 3-601, 3-602, 3-904, 5-101, 5-102, 5-102.5,
5-102.7, 5-401.2, 5-402.1, 5-403.1, 5-501 and 5-503 and by
adding Sections 3-904.2, 3-904.5, 5-102.8, and 5-102.9 as
follows:
(625 ILCS 5/3-601) (from Ch. 95 1/2, par. 3-601)
Sec. 3-601. Operation of vehicles under special plates.
(a) A manufacturer owning any unregistered vehicle of a
type otherwise required to be registered under this Act may
operate or move such upon the highways without registering each
such vehicle upon condition that any such vehicle display
thereon, a special plate or plates issued to such owner as
provided in this Article.
(b) A dealer owning any unregistered vehicle of a type
otherwise required to be registered under this Act and held by
him for sale or resale, may operate or move such upon the
highways without registering each such vehicle upon condition

that any such vehicle display thereon a special plate or plates
issued to such owner as provided in this Article. A dealer may
use a special plate issued to the dealer to transport a vehicle
sold to a customer either by towing or by driving the sold
vehicle with the special plate attached to the vehicle.
(c) A transporter may operate or move any vehicle not owned
by him upon the highways by the driveaway or towaway methods
solely for the purpose of delivery upon likewise displaying
thereon like plates issued to him as provided in this Article.
(d) A boat dealer owning any boat trailer of a type
otherwise required to be registered under this Act may operate
or move such upon the highways and haul a boat customarily sold
with such boat trailer, without registering each such boat
trailer upon condition that any such boat trailer display
thereon, in the manner prescribed in Section 3-413, a special
plate or plates issued to such owner as provided in this
Article.
(e) Any person owning unregistered vehicles of a type
required to be registered and which are exclusively operated
off the highways and upon private property, may move such
vehicles from one plant location to another upon the highways
without registering each such vehicle upon conditions that any
such vehicle display thereon a special plate or plates issued
to such persons as provided in this Article. Such vehicles must
be unladen and may not be operated upon any highways with such
special plates except for the interplant movement.

(f) Any person owning a vehicle of a type required to be
registered which when purchased is not yet equipped for work or
service, may move such vehicle from the point of original
manufacture or sale to a body shop or other place where the
vehicle is to be equipped for work or service and from such
point to the owner's place of business without first
registering each such vehicle upon condition that any such
vehicle display thereon a special plate or plates issued to
such person as provided in this Article. Upon completion of
such movement, any such vehicle subject to registration must be
properly registered.
(g) Special plates issued under this Article must be
displayed in the manner provided for in Section 3-413.
(h) Any such vehicle bearing such special plate or plates
may be operated without registration for any purpose, except
that no such special plate or plates shall be used on any
vehicle which is rented by the manufacturer or dealer to
another person or which is used to transport passengers or
property for hire, nor, except as provided in paragraph (i) of
this Section, shall any such special plate or plates be used on
a second division vehicle which is carrying cargo or
merchandise except in demonstrating such second division
vehicle for the purposes of sale, or for the purpose of testing
engine and driveline components.
(i) The provisions of this Article authorizing special
plates shall not apply to work or service vehicles owned by a

manufacturer, transporter or dealer except a truck up to 8,000
pounds gross weight owned by a dealer and used for hauling
parts incidental to the operation of the dealer's business.
(j) The Secretary of State may limit the number of special
plates issued to any applicant.
(Source: P.A. 78-753; 78-1297.)
(625 ILCS 5/3-602) (from Ch. 95 1/2, par. 3-602)
Sec. 3-602. Certificate and special plates for dealers,
manufacturers, and transporters.
(a) Any dealer, manufacturer, or transporter may make
application to the Secretary of State upon the appropriate form
for a certificate containing a general distinguishing number
and for one or more sets of special plates as appropriate to
various types of vehicles subject to registration hereunder.
The applicant shall submit such proof of his or her status as a
bona fide dealer, manufacturer, or transporter as may be
reasonably required by the Secretary of State.
(b) The Secretary of State, upon granting any such
application, shall issue to the applicant a certificate
containing the applicant's name and address and special plates
as applied for. Both the certificates and special plates shall
display the general distinguishing number assigned to the
applicant.
(c) The Secretary of State shall issue special plates to
dealers and manufacturers in accordance with the following

formula:
number vehicles maximum number sets maximum number
sold in previous of special plates additional sets
calendar year issued at fee set issued at fee
by Sec. 3-810 set by Sec. 3-806
0 0 0
1-10 1 1
11-25 2 2
26-100 8 8
101-250 12 12
251-500 20 20
501-750 30 30
751-1000 40 40
1001-1500 50 50
1501-2000 60 60
2001-2500 70 70
2501+ 90 90
For those Dealers with annual sales over 2501, special
plates will be allocated based on 10 sets of plates under each
section for each additional 500 vehicles sold.
The limit on the maximum number of additional sets issued
to manufacturers at the fee set by Section 3-806 may be lifted
at the discretion of the Secretary of State.
The Secretary shall issue to a new dealer or manufacturer
not more than 8 sets of special plates at each fee. If the new
dealer or manufacturer has acquired his or her business from a

previous dealer or manufacturer, he or she may be issued a
number of sets based upon the number of vehicles sold in the
previous calendar year by the previous dealer or manufacturer.
If the new dealer or manufacturer was in business for only a
part of the previous calendar year, the number of special
plates to which he or she is entitled may be extrapolated from
the number of vehicles he or she sold during that part of the
year.
(c-5) The Secretary may limit the number of special plates
authorized under this Section that are issued to dealers,
manufacturers, or transporters based on factors including, but
not limited to, sales of vehicles, revenue, or number of
employees.
(d) Any manufacturer of engine and driveline components may
apply to the Secretary of State for a license to operate
vehicles in which such components are installed on the public
highways of the State for the purpose of testing such
components. The application shall describe the components and
the vehicles in which they are installed, and shall contain
such additional information as the Secretary shall prescribe.
Upon receipt of an application and an accompanying fee of
$1000, the Secretary shall issue to the applicant a license for
the entire test period of the components described in the
application.
Every licensee shall keep a record of each vehicle operated
under such license which shall be open to inspection by the

Secretary or his authorized representative for inspection at
any reasonable time during the day or night.
The license of a manufacturer of engine and driveline
components may be denied, revoked or suspended if the Secretary
finds that the manufacturer has:
(1) violated this Code;
(2) made any material misrepresentation to the
Secretary of State in connection with an application for a
license; or
(3) failed to produce for the Secretary of State any
record required to be produced by this Code.
This amendatory Act of 1983 shall be applicable to the 1984
registration year and thereafter.
(Source: P.A. 91-357, eff. 7-29-99.)
(625 ILCS 5/3-904) (from Ch. 95 1/2, par. 3-904)
Sec. 3-904. Application; contents; affidavits; prelicense
education certification - Contents - Affidavits.
(a) Any person who desires to act as a "remittance agent"
shall first file with the Secretary of State a written
application for a license. The application shall be under oath
and shall contain the following:
1. The name and address of the applicant.
2. The address of each location at which the applicant
intends to act as a remittance agent.
3. The applicant's business, occupation or profession.

4. A statement disclosing whether he has been involved
in any civil or criminal litigation and if so, the material
facts pertaining thereto.
5. A statement that the applicant has not committed in
the past 3 years any violation as determined in any civil,
criminal, or administrative proceedings under the
Retailers' Occupation Tax Act or under Article I or VII of
Chapter 3 of this Code.
6. Any other information concerning the business of the
applicant that the Secretary of State may prescribe.
(b) The application under subsection (a) shall be
accompanied by the affidavits of two persons residing in the
city or town of such applicant's residence. Such affiants shall
state that they have known the applicant for a period of at
least two years; that the applicant is of good moral character
and that his reputation for honesty and business integrity in
the community in which he resides is good. If the applicant is
not an individual, the requirements of this paragraph shall
apply to each of its officers or members.
(c) The application under subsection (a) shall be
accompanied by a copy of the certification from the
prelicensing education program required by Section 3-904.5.
(Source: P.A. 97-832, eff. 7-20-12.)
(625 ILCS 5/3-904.2 new)
Sec. 3-904.2. Remittance agent background check. Each

applicant for a remittance license shall have his or her
fingerprints submitted to the Department of State Police in an
electronic format that complies with the form and manner for
requesting and furnishing criminal history record information
as prescribed by the Department of State Police. These
fingerprints shall be checked against the Department of State
Police and Federal Bureau of Investigation criminal history
record databases now and hereafter filed, including, but not
limited to, civil, criminal, and latent fingerprint databases.
The Department of State Police shall charge applicants a fee
for conducting the criminal history records check, which shall
be deposited in the State Police Services Fund and shall not
exceed the actual cost of the records check. The Department of
State Police shall furnish, pursuant to positive
identification, records of Illinois convictions to the
Secretary of State.
(625 ILCS 5/3-904.5 new)
Sec. 3-904.5. Remittance agent prelicensing education
program courses.
(a) An applicant for a license as a remittance agent shall
complete a minimum of 8 hours of prelicensing education program
courses under this Section prior to submitting an application
to the Secretary of State.
(b) To meet the requirements of this Section, at least one
person who is associated with the remittance agent as an owner,

principal, corporate officer, director, or member or partner of
a limited liability company or limited liability partnership
shall complete the education program courses.
(c) The prelicensing education program courses shall be
provided by public or private entities with an expertise in the
area as approved by the Secretary of State. The Secretary of
State must approve course curricula and instruction, in
consultation with the Department of Transportation and any
private entity with expertise in the area in the Secretary's
discretion.
(d) Each person who successfully completes an approved
prelicensing education program under this Section shall be
issued a certificate by the education program provider. The
current certificate of completion, or a copy of the current
certificate, shall be posted conspicuously in the principal
office of the licensee.
(e) The provisions of this Section apply to all remittance
agents including, but not limited to, persons, corporations,
and partnerships, except for the following:
(1) motor vehicle rental companies having a national
franchise;
(2) national motor vehicle auction companies;
(3) wholesale dealer-only auction companies;
(4) used vehicle dealerships owned by a franchise motor
vehicle dealer; and
(5) banks, credit unions, and savings and loan

associations.
(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.

9.5. A statement that, within 10 years of application,
each officer, director, shareholder having a 10% or greater
ownership interest therein, proprietor, partner, member,
officer, director, trustee, manager, or other principal in
the business of the applicant has not committed, as
determined in any civil, criminal, or administrative
proceeding, in any calendar year one or more forcible
felonies under the Criminal Code of 1961 or the Criminal
Code of 2012, or a violation of either or both Article 16
or 17 of the Criminal Code of 1961 or a violation of either
or both Article 16 or 17 of the Criminal Code of 2012,
Article 29B of the Criminal Code of 1961 or the Criminal
Code of 2012, or a similar out-of-state offense. For the
purposes of this paragraph, "forcible felony" has the
meaning provided in Section 2-8 of the Criminal Code of
2012.
10. A bond or certificate of deposit in the amount of
$50,000 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
1 through Chapter 5 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 color photocopy or electronic scan
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 photocopy or scan 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. 99-78, eff. 7-20-15; 100-450, eff. 1-1-18;
100-956, eff. 1-1-19.)
(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 and Deceptive Business
Practices Act.
7.5. A statement that, within 10 years of application,
each officer, director, shareholder having a 10% or greater
ownership interest therein, proprietor, partner, member,
officer, director, trustee, manager, or other principal in
the business of the applicant has not committed, as
determined in any civil, criminal, or administrative
proceeding, in any calendar year one or more forcible

felonies under the Criminal Code of 1961 or the Criminal
Code of 2012, or a violation of either or both Article 16
or 17 of the Criminal Code of 1961 or a violation of either
or both Article 16 or 17 of the Criminal Code of 2012,
Article 29B of the Criminal Code of 1961 or the Criminal
Code of 2012, or a similar out-of-state offense. For the
purposes of this paragraph, "forcible felony" has the
meaning provided in Section 2-8 of the Criminal Code of
2012.
8. A bond or Certificate of Deposit in the amount of
$50,000 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 color photocopy or electronic scan
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 photocopy or scan 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. 99-78, eff. 7-20-15; 100-450, eff. 1-1-18;
100-956, eff. 1-1-19.)
(625 ILCS 5/5-102.5)
Sec. 5-102.5. Used vehicle dealer prelicensing education
program courses.
(a) An applicant for a license as a Buy Here, Pay Here used
vehicle dealer under Section 5-102.8 or a used vehicle dealer
shall complete a minimum of 8 hours of prelicensing education
program courses pursuant to this Section prior to submitting an
application to the Secretary of State.
(b) To meet the requirements of this Section, at least one
individual who is associated with the used vehicle dealer or

Buy Here, Pay Here used vehicle dealer as an owner, principal,
corporate officer, director, or member or partner of a limited
liability company or limited liability partnership shall
complete the education program courses.
(c) The education program courses shall be provided by
public or private entities with an expertise in the area as
approved by the Secretary of State. The Secretary of State must
approve course curricula and instruction, in consultation with
the Illinois Department of Transportation and any private
entity with expertise in the area in the Secretary of State's
discretion.
(d) Each person who successfully completes an approved
prelicensing education program under this Section shall be
issued a certificate by the education program provider of the
course. The current certificate of completion, or a copy of the
certificate, shall be posted conspicuously in the principal
office of the licensee.
(e) The provisions of this Section apply to all Buy Here,
Pay Here used vehicle dealers under Section 5-1028 or used
vehicle dealers including, but not limited to, individuals,
corporations, and partnerships, except for the following:
(1) Motor vehicle rental companies having a national
franchise;
(2) National motor vehicle auction companies;
(3) Wholesale dealer-only auction companies;
(4) Used vehicle dealerships owned by a franchise motor

vehicle dealer; and
(5) Banks, credit unions, and savings and loan
associations.
(Source: P.A. 96-678, eff. 8-25-09.)
(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,
or a Buy Here, Pay Here used vehicle dealer licensed under
5-102.8, excepting a dealer who primarily sells mobile homes,
recreational vehicles, or trailers.
"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 Buy Here, Pay Here used vehicle dealer licensed
under 5-102.8 or 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, or
Buy Here, Pay Here used vehicle dealer 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 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; 98-450, eff. 1-1-14.)
(625 ILCS 5/5-102.8 new)

Sec. 5-102.8. Licensure of Buy Here, Pay Here used vehicle
dealers.
(a) As used in this Section, "Buy Here, Pay Here used
vehicle dealer" means any entity that engages in the business
of selling or leasing of vehicles and finances the sale or
purchase price of the vehicle to a customer without the
customer using a third-party lender.
(b) No person 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 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 or she is so
engaged or intends to so engage in such business of a Buy Here,
Pay Here used vehicle dealer unless licensed to do so by the
Secretary of State under the provisions of this Section.
(c) An application for a Buy Here, Pay Here 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 10% 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 or her 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 or she
proposes to act as a Buy Here, Pay Here 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,

2 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.
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 Buy Here, Pay
Here used vehicle dealer's automobile, the Buy Here, Pay
Here used vehicle dealer's insurance shall be primary and
the permitted user's insurance shall be secondary.

As used in this paragraph, "permitted user" means a
person who, with the permission of the Buy Here, Pay Here
used vehicle dealer or an employee of the Buy Here, Pay
Here used vehicle dealer, drives a vehicle owned and held
for sale or lease by the Buy Here, Pay Here used vehicle
dealer that the person is considering to purchase or lease,
in order to evaluate the performance, reliability, or
condition of the vehicle. "Permitted user" includes a
person who, with the permission of the Buy Here, Pay Here
used vehicle dealer, drives a vehicle owned or held for
sale or lease by the Buy Here, Pay Here used vehicle dealer
for loaner purposes while the user's vehicle is being
repaired or evaluated.
As used in this paragraph, "test driving" occurs when a
permitted user who, with the permission of the Buy Here,
Pay Here used vehicle dealer or an employee of the Buy
Here, Pay Here used vehicle dealer, drives a vehicle owned
and held for sale or lease by a Buy Here, Pay Here 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, "loaner purposes" means when
a person who, with the permission of the Buy Here, Pay Here
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 Buy Here, Pay Here used
vehicle dealer's license shall be accompanied by the
following license fees:
(A) $1,000 for the 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 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 if the application is denied by the Secretary of
State. Of the money received by the Secretary of State
as license fees under this subparagraph, 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.
Fees shall be returnable only if the application is
denied by the Secretary of State. Money received under
this subparagraph shall be deposited into the Dealer
Recovery Trust Fund. A Buy Here, Pay Here used vehicle
dealer shall pay into the Dealer Recovery Trust Fund
for every vehicle that is financed, sold, or otherwise
transferred to an individual or entity other than the
Buy Here, Pay Here used vehicle dealer even if the
individual or entity to which the Buy Here, Pay Here
used vehicle dealer transfers the vehicle is unable to
continue to adhere to the terms of the transaction by
the Buy Here, Pay Here used vehicle dealer.
(6) A statement that each officer, director,
shareholder having a 10% or greater ownership interest
therein, proprietor, partner, member, officer, director,

trustee, manager, or other principal in the business of the
applicant has 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:
(A) the Anti-Theft Laws of this Code;
(B) the Certificate of Title Laws of this Code;
(C) the Offenses against Registration and
Certificates of Title Laws of this Code;
(D) the Dealers, Transporters, Wreckers and
Rebuilders Laws of this 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 each officer, director,
shareholder having a 10% or greater ownership interest
therein, proprietor, partner, member, officer, director,
trustee, manager, or other principal in the business of the
applicant has 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:
(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 and Deceptive Business
Practices Act.
(8) A statement that, within 10 years of application,
each officer, director, shareholder having a 10% or greater
ownership interest therein, proprietor, partner, member,
officer, director, trustee, manager, or other principal in
the business of the applicant has not committed, as
determined in any civil, criminal, or administrative
proceeding, in any calendar year one or more forcible
felonies under the Criminal Code of 1961 or the Criminal
Code of 2012, or a violation of either or both Article 16
or 17 of the Criminal Code of 1961, or a violation of
either or both Article 16 or 17 of the Criminal Code of
2012, Article 29B of the Criminal Code of 1961 or the
Criminal Code of 2012, or a similar out-of-state offense.
For the purposes of this paragraph, "forcible felony" has
the meaning provided in Section 2-8 of the Criminal Code of
2012.
(9) A bond or Certificate of Deposit in the amount of
$50,000 for each location at which the applicant intends to
act as a Buy Here, Pay Here used vehicle dealer. The bond

shall be for the term of the license. 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 Buy Here, Pay Here used
vehicle dealer.
(10) Such other information concerning the business of
the applicant as the Secretary of State may by rule
prescribe.
(11) A statement that the applicant understands
Chapter 1 through Chapter 5 of this Code.
(12) A copy of the certification from the prelicensing
education program.
(d) Any change that renders no longer accurate any
information contained in any application for a Buy Here, Pay
Here 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, accompanied by an
amendatory fee of $2.
(e) Anything in this Chapter to the contrary
notwithstanding, no person shall be licensed as a Buy Here, Pay
Here used vehicle dealer unless the person maintains an
established place of business as defined in this Chapter.
(f) The Secretary of State shall, within a reasonable time

after receipt, examine an application submitted under this
Section. Unless the Secretary makes a determination that the
application does not conform to this Section or that grounds
exist for a denial of the application under Section 5-501 of
this Chapter, the Secretary must grant the applicant an
original Buy Here, Pay Here used vehicle dealer's license in
writing for his or her established place of business and a
supplemental license in writing for each additional place of
business in such form as the Secretary may prescribe by rule
that 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 the supplemental
license pertains.
(g) 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 the licensee.
(h) Except as provided in subsection (i), all Buy Here, Pay
Here 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.
(i) A Buy Here, Pay Here 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 the
applicant is not subject to such bonding requirements, as in
the case of an original license, but in the case of an
application for the renewal of an effective license 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.
(j) Each person licensed as a Buy Here, Pay Here used
vehicle dealer is 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 the

person;
(4) a copy of the Uniform Invoice-transaction
reporting return referred to in Section 5-402;
(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.
(k) Except at the time of sale or repossession of the
vehicle, no person licensed as a Buy Here, Pay Here used
vehicle dealer may issue any other person a newly created key
to a vehicle unless the Buy Here, Pay Here used vehicle dealer
makes a color photocopy or electronic scan of the driver's
license or State identification card of the person requesting
or obtaining the newly created key. The Buy Here, Pay Here used
vehicle dealer must retain the photocopy or scan for 30 days.
A Buy Here, Pay Here 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) A Buy Here, Pay Here used vehicle dealer 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.
(625 ILCS 5/5-102.9 new)
Sec. 5-102.9. Alternative vehicle sales and ownership.
(a) The Secretary may create special dealership licenses
for entities that specialize in specific types of used motor
vehicles that may be based on model, make, age, or any other
factor that the Secretary deems appropriate.
(b) Any owner who is not a manufacturer of the vehicle and
chooses to lease a used vehicle for a period of less than 12
months shall ensure that the lessee maintains valid
registration and liability insurance as set forth in Chapter 7

of this Code. The owner of the vehicle shall not collect any
fees in connection with the registration of the vehicle unless
the owner is also a licensed remittance agent under this Code.
(c) The Secretary may adopt any rules necessary to
implement this Section.
(625 ILCS 5/5-401.2) (from Ch. 95 1/2, par. 5-401.2)
Sec. 5-401.2. Licensees required to keep records and make
inspections.
(a) Every person licensed or required to be licensed under
Section 5-101, 5-101.1, 5-101.2, 5-102, 5-102.8, 5-301, or
5-302 of this Code, shall, with the exception of scrap
processors, maintain for 3 years, in a form as the Secretary of
State may by rule or regulation prescribe, at his established
place of business, additional place of business, or principal
place of business if licensed under Section 5-302, the
following records relating to the acquisition or disposition of
vehicles and their essential parts possessed in this State,
brought into this State from another state, territory or
country, or sold or transferred to another person in this State
or in another state, territory, or country.
(1) The following records pertaining to new or used
vehicles shall be kept:
(A) the year, make, model, style and color of the
vehicle;
(B) the vehicle's manufacturer's identification

number or, if applicable, the Secretary of State or
Illinois Department of State Police identification
number;
(C) the date of acquisition of the vehicle;
(D) the name and address of the person from whom
the vehicle was acquired and, if that person is a
dealer, the Illinois or out-of-state dealer license
number of such person;
(E) the signature of the person making the
inspection of a used vehicle as required under
subsection (d) of this Section, if applicable;
(F) the purchase price of the vehicle, if
applicable;
(G) the date of the disposition of the vehicle;
(H) the name and address of the person to whom any
vehicle was disposed, and if that person is a dealer,
the Illinois or out-of-State dealer's license number
of that dealer;
(I) the uniform invoice number reflecting the
disposition of the vehicle, if applicable; and
(J) The sale price of the vehicle, if applicable.
(2) (A) The following records pertaining to used
essential parts other than quarter panels and
transmissions of vehicles of the first division shall be
kept:
(i) the year, make, model, color and type of such

part;
(ii) the vehicle's manufacturer's identification
number, derivative number, or, if applicable, the
Secretary of State or Illinois Department of State
Police identification number of such part;
(iii) the date of the acquisition of each part;
(iv) the name and address of the person from whom
the part was acquired and, if that person is a dealer,
the Illinois or out-of-state dealer license number of
such person; if the essential part being acquired is
from a person other than a dealer, the licensee shall
verify and record that person's identity by recording
the identification numbers from at least two sources of
identification, one of which shall be a drivers license
or State identification card;
(v) the uniform invoice number or out-of-state
bill of sale number reflecting the acquisition of such
part;
(vi) the stock number assigned to the essential
part by the licensee, if applicable;
(vii) the date of the disposition of such part;
(viii) the name and address of the person to whom
such part was disposed of and, if that person is a
dealer, the Illinois or out-of-state dealer license
number of that person;
(ix) the uniform invoice number reflecting the

disposition of such part.
(B) Inspections of all essential parts shall be
conducted in accordance with Section 5-402.1.
(C) A separate entry containing all of the information
required to be recorded in subparagraph (A) of paragraph
(2) of subsection (a) of this Section shall be made for
each separate essential part. Separate entries shall be
made regardless of whether the part was a large purchase
acquisition. In addition, a separate entry shall be made
for each part acquired for immediate sale or transfer, or
for placement into the overall inventory or stock to be
disposed of at a later time, or for use on a vehicle to be
materially altered by the licensee, or acquired for any
other purpose or reason. Failure to make a separate entry
for each essential part acquired or disposed of, or a
failure to record any of the specific information required
to be recorded concerning the acquisition or disposition of
each essential part as set forth in subparagraph (A) of
paragraph (2) of subsection (a) shall constitute a failure
to keep records.
(D) The vehicle's manufacturer's identification number
or Secretary of State or Illinois Department of State
Police identification number for the essential part shall
be ascertained and recorded even if such part is acquired
from a person or dealer located in a State, territory, or
country which does not require that such information be

recorded. If the vehicle's manufacturer's identification
number or Secretary of State or Illinois Department of
State Police identification number for an essential part
cannot be obtained, that part shall not be acquired by the
licensee or any of his agents or employees. If such part or
parts were physically acquired by the licensee or any of
his agents or employees while the licensee or agent or
employee was outside this State, that licensee or agent or
employee was outside the State, that licensee, agent or
employee shall not bring such essential part into this
State or cause it to be brought into this State. The
acquisition or disposition of an essential part by a
licensee without the recording of the vehicle
identification number or Secretary of State identification
number for such part or the transportation into the State
by the licensee or his agent or employee of such part or
parts shall constitute a failure to keep records.
(E) The records of essential parts required to be kept
by this Section shall apply to all hulks, chassis, frames
or cowls, regardless of the age of those essential parts.
The records required to be kept by this Section for
essential parts other than hulks, chassis, frames or cowls,
shall apply only to those essential parts which are 6 model
years of age or newer. In determining the model year of
such an essential part it may be presumed that the
identification number of the vehicle from which the

essential part came or the identification number affixed to
the essential part itself acquired by the licensee denotes
the model year of that essential part. This presumption,
however, shall not apply if the gross appearance of the
essential part does not correspond to the year, make or
model of either the identification number of the vehicle
from which the essential part is alleged to have come or
the identification number which is affixed to the essential
part itself. To determine whether an essential part is 6
years of age or newer within this paragraph, the model year
of the essential part shall be subtracted from the calendar
year in which the essential part is acquired or disposed of
by the licensee. If the remainder is 6 or less, the record
of the acquisition or disposition of that essential part
shall be kept as required by this Section.
(F) The requirements of paragraph (2) of subsection (a)
of this Section shall not apply to the disposition of an
essential part other than a cowl which has been damaged or
altered to a state in which it can no longer be returned to
a usable condition and which is being sold or transferred
to a scrap processor or for delivery to a scrap processor.
(3) the following records for vehicles on which junking
certificates are obtained shall be kept:
(A) the year, make, model, style and color of the
vehicle;
(B) the vehicle's manufacturer's identification number

or, if applicable, the Secretary of State or Illinois
Department of State Police identification number;
(C) the date the vehicle was acquired;
(D) the name and address of the person from whom the
vehicle was acquired and, if that person is a dealer, the
Illinois or out-of-state dealer license number of that
person;
(E) the certificate of title number or salvage
certificate number for the vehicle, if applicable;
(F) the junking certificate number obtained by the
licensee; this entry shall be recorded at the close of
business of the fifth business day after receiving the
junking certificate;
(G) the name and address of the person to whom the
junking certificate has been assigned, if applicable, and
if that person is a dealer, the Illinois or out-of-state
dealer license number of that dealer;
(H) if the vehicle or any part of the vehicle is
dismantled for its parts to be disposed of in any way, or
if such parts are to be used by the licensee to materially
alter a vehicle, those essential parts shall be recorded
and the entries required by paragraph (2) of subsection (a)
shall be made.
(4) The following records for rebuilt vehicles shall be
kept:
(A) the year, make, model, style and color of the

vehicle;
(B) the vehicle's manufacturer's identification number
of the vehicle or, if applicable, the Secretary of State or
Illinois Department of State Police identification number;
(C) the date the vehicle was acquired;
(D) the name and address of the person from whom the
vehicle was acquired, and if that person is a dealer, the
Illinois or out-of-state dealer license number of that
person;
(E) the salvage certificate number for the vehicle;
(F) the newly issued certificate of title number for
the vehicle;
(G) the date of disposition of the vehicle;
(H) the name and address of the person to whom the
vehicle was disposed, and if a dealer, the Illinois or
out-of-state dealer license number of that dealer;
(I) The sale price of the vehicle.
(a-1) A person licensed or required to be licensed under
Section 5-101 or Section 5-102 of this Code who issues
temporary registration permits as permitted by this Code and by
rule must electronically file the registration with the
Secretary and must maintain records of the registration in the
manner prescribed by the Secretary.
(b) A failure to make separate entries for each vehicle
acquired, disposed of, or assigned, or a failure to record any
of the specific information required to be recorded concerning

the acquisition or disposition of each vehicle as set forth in
paragraphs (1), (3) and (4) of subsection (a) shall constitute
a failure to keep records.
(c) All entries relating to the acquisition of a vehicle or
essential part required by subsection (a) of this Section shall
be recorded no later than the close of business on the seventh
calendar day following such acquisition. All entries relating
to the disposition of a vehicle or an essential part shall be
made at the time of such disposition. If the vehicle or
essential part was disposed of on the same day as its
acquisition or the day thereafter, the entries relating to the
acquisition of the vehicle or essential part shall be made at
the time of the disposition of the vehicle or essential part.
Failure to make the entries required in or at the times
prescribed by this subsection following the acquisition or
disposition of such vehicle or essential part shall constitute
a failure to keep records.
(d) Every person licensed or required to be licensed shall,
before accepting delivery of a used vehicle, inspect the
vehicle to determine whether the manufacturer's public vehicle
identification number has been defaced, destroyed, falsified,
removed, altered, or tampered with in any way. If the person
making the inspection determines that the manufacturer's
public vehicle identification number has been altered,
removed, defaced, destroyed, falsified or tampered with he
shall not acquire that vehicle but instead shall promptly

notify law enforcement authorities of his finding.
(e) The information required to be kept in subsection (a)
of this Section shall be kept in a manner prescribed by rule or
regulation of the Secretary of State.
(f) Every person licensed or required to be licensed shall
have in his possession a separate certificate of title, salvage
certificate, junking certificate, certificate of purchase,
uniform invoice, out-of-state bill of sale or other acceptable
documentary evidence of his right to the possession of every
vehicle or essential part.
(g) Every person licensed or required to be licensed as a
transporter under Section 5-201 shall maintain for 3 years, in
such form as the Secretary of State may by rule or regulation
prescribe, at his principal place of business a record of every
vehicle transported by him, including numbers of or other marks
of identification thereof, the names and addresses of persons
from whom and to whom the vehicle was delivered and the dates
of delivery.
(h) No later than 15 days prior to going out of business,
selling the business, or transferring the ownership of the
business, the licensee shall notify the Secretary of State that
he is going out of business or that he is transferring the
ownership of the business. Failure to notify under this
paragraph shall constitute a failure to keep records.
(i) (Blank).
(j) A person who knowingly fails to comply with the

provisions of this Section or knowingly fails to obey, observe,
or comply with any order of the Secretary or any law
enforcement agency issued in accordance with this Section is
guilty of a Class B misdemeanor for the first violation and a
Class A misdemeanor for the second and subsequent violations.
Each violation constitutes a separate and distinct offense and
a separate count may be brought in the same indictment or
information for each vehicle or each essential part of a
vehicle for which a record was not kept as required by this
Section.
(k) Any person convicted of failing to keep the records
required by this Section with intent to conceal the identity or
origin of a vehicle or its essential parts or with intent to
defraud the public in the transfer or sale of vehicles or their
essential parts is guilty of a Class 2 felony. Each violation
constitutes a separate and distinct offense and a separate
count may be brought in the same indictment or information for
each vehicle or essential part of a vehicle for which a record
was not kept as required by this Section.
(l) A person may not be criminally charged with or
convicted of both a knowing failure to comply with this Section
and a knowing failure to comply with any order, if both
offenses involve the same record keeping violation.
(m) The Secretary shall adopt rules necessary for
implementation of this Section, which may include the
imposition of administrative fines.

(Source: P.A. 99-593, eff. 7-22-16.)
(625 ILCS 5/5-402.1) (from Ch. 95 1/2, par. 5-402.1)
Sec. 5-402.1. Use of Secretary of State Uniform Invoice for
Essential Parts.
(a) Except for scrap processors, every person licensed or
required to be licensed under Section 5-101, 5-101.1, 5-102,
5-102.8, or 5-301 of this Code shall issue, in a form the
Secretary of State may by rule or regulation prescribe, a
Uniform Invoice, which may also act as a bill of sale, made out
in triplicate with respect to each transaction in which he
disposes of an essential part other than quarter panels and
transmissions of vehicles of the first division. Such Invoice
shall be made out at the time of the disposition of the
essential part. If the licensee disposes of several essential
parts in the same transaction, the licensee may issue one
Uniform Invoice covering all essential parts disposed of in
that transaction.
(b) The following information shall be contained on the
Uniform Invoice:
(1) the business name, address and dealer license
number of the person disposing of the essential part;
(2) the name and address of the person acquiring the
essential part, and if that person is a dealer, the
Illinois or out-of-state dealer license number of that
dealer;

(3) the date of the disposition of the essential part;
(4) the year, make, model, color and description of
each essential part disposed of by the person;
(5) the manufacturer's vehicle identification number,
Secretary of State identification number or Illinois
Department of State Police identification number, for each
essential part disposed of by the person;
(6) the printed name and legible signature of the
person or agent disposing of the essential part; and
(7) if the person is a dealer the printed name and
legible signature of the dealer or his agent or employee
accepting delivery of the essential part.
(c) Except for scrap processors, and except as set forth in
subsection (d) of this Section, whenever a person licensed or
required to be licensed by Section 5-101, 5-101.1, 5-102, or
5-301 accepts delivery of an essential part, other than quarter
panels and transmissions of vehicles of the first division,
that person shall, at the time of the acceptance or delivery,
comply with the following procedures:
(1) Before acquiring or accepting delivery of any
essential part, the licensee or his authorized agent or
employee shall inspect the part to determine whether the
vehicle identification number, Secretary of State
identification number, Illinois Department of State Police
identification number, or identification plate or sticker
attached to or stamped on any part being acquired or

delivered has been removed, falsified, altered, defaced,
destroyed, or tampered with. If the licensee or his agent
or employee determines that the vehicle identification
number, Secretary of State identification number, Illinois
Department of State Police identification number,
identification plate or identification sticker containing
an identification number, or Federal Certificate label of
an essential part has been removed, falsified, altered,
defaced, destroyed or tampered with, the licensee or agent
shall not accept or receive that part.
If that part was physically acquired by or delivered to
a licensee or his agent or employee while that licensee,
agent or employee was outside this State, that licensee or
agent or employee shall not bring that essential part into
this State or cause it to be brought into this State.
(2) If the person disposing of or delivering the
essential part to the licensee is a licensed in-state or
out-of-state dealer, the licensee or his agent or employee,
after inspecting the essential part as required by
paragraph (1) of this subsection (c), shall examine the
Uniform Invoice, or bill of sale, as the case may be, to
ensure that it contains all the information required to be
provided by persons disposing of essential parts as set
forth in subsection (b) of this Section. If the Uniform
Invoice or bill of sale does not contain all the
information required to be listed by subsection (b) of this

Section, the dealer disposing of or delivering such part or
his agent or employee shall record such additional
information or other needed modifications on the Uniform
Invoice or bill of sale or, if needed, an attachment
thereto. The dealer or his agent or employee delivering the
essential part shall initial all additions or
modifications to the Uniform Invoice or bill of sale and
legibly print his name at the bottom of each document
containing his initials. If the transaction involves a bill
of sale rather than a Uniform Invoice, the licensee or his
agent or employee accepting delivery of or acquiring the
essential part shall affix his printed name and legible
signature on the space on the bill of sale provided for his
signature or, if no space is provided, on the back of the
bill of sale. If the dealer or his agent or employee
disposing of or delivering the essential part cannot or
does not provide all the information required by subsection
(b) of this Section, the licensee or his agent or employee
shall not accept or receive any essential part for which
that required information is not provided. If such
essential part for which the information required is not
fully provided was physically acquired while the licensee
or his agent or employee was outside this State, the
licensee or his agent or employee shall not bring that
essential part into this State or cause it to be brought
into this State.

(3) If the person disposing of the essential part is
not a licensed dealer, the licensee or his agent or
employee shall, after inspecting the essential part as
required by paragraph (1) of subsection (c) of this Section
verify the identity of the person disposing of the
essential part by examining 2 sources of identification,
one of which shall be either a driver's license or state
identification card. The licensee or his agent or employee
shall then prepare a Uniform Invoice listing all the
information required to be provided by subsection (b) of
this Section. In the space on the Uniform Invoice provided
for the dealer license number of the person disposing of
the part, the licensee or his agent or employee shall list
the numbers taken from the documents of identification
provided by the person disposing of the part. The person
disposing of the part shall affix his printed name and
legible signature on the space on the Uniform Invoice
provided for the person disposing of the essential part and
the licensee or his agent or employee acquiring the part
shall affix his printed name and legible signature on the
space provided on the Uniform Invoice for the person
acquiring the essential part. If the person disposing of
the essential part cannot or does not provide all the
information required to be provided by this paragraph, or
does not present 2 satisfactory forms of identification,
the licensee or his agent or employee shall not acquire

that essential part.
(d) If an essential part other than quarter panels and
transmissions of vehicles of the first division was delivered
by a licensed commercial delivery service delivering such part
on behalf of a licensed dealer, the person required to comply
with subsection (c) of this Section may conduct the inspection
of that part required by paragraph (1) of subsection (c) and
examination of the Uniform Invoice or bill of sale required by
paragraph (2) of subsection (c) of this Section immediately
after the acceptance of the part.
(1) If the inspection of the essential part pursuant to
paragraph (1) of subsection (c) reveals that the vehicle
identification number, Secretary of State identification
number, Illinois Department of State Police identification
number, identification plate or sticker containing an
identification number, or Federal Certificate label of an
essential part has been removed, falsified, altered,
defaced, destroyed or tampered with, the licensee or his
agent shall immediately record such fact on the Uniform
Invoice or bill of sale, assign the part an inventory or
stock number, place such inventory or stock number on both
the essential part and the Uniform Invoice or bill of sale,
and record the date of the inspection of the part on the
Uniform Invoice or bill of sale. The licensee shall, within
7 days of such inspection, return such part to the dealer
from whom it was acquired.

(2) If the examination of the Uniform Invoice or bill
of sale pursuant to paragraph (2) of subsection (c) reveals
that any of the information required to be listed by
subsection (b) of this Section is missing, the licensee or
person required to be licensed shall immediately assign a
stock or inventory number to such part, place such stock or
inventory number on both the essential part and the Uniform
Invoice or bill of sale, and record the date of examination
on the Uniform Invoice or bill of sale. The licensee or
person required to be licensed shall acquire the
information missing from the Uniform Invoice or bill of
sale within 7 days of the examination of such Uniform
Invoice or bill of sale. Such information may be received
by telephone conversation with the dealer from whom the
part was acquired. If the dealer provides the missing
information the licensee shall record such information on
the Uniform Invoice or bill of sale along with the name of
the person providing the information. If the dealer does
not provide the required information within the
aforementioned 7 day period, the licensee shall return the
part to that dealer.
(e) Except for scrap processors, all persons licensed or
required to be licensed who acquire or dispose of essential
parts other than quarter panels and transmissions of vehicles
of the first division shall retain a copy of the Uniform
Invoice required to be made by subsections (a), (b) and (c) of

this Section for a period of 3 years.
(f) Except for scrap processors, any person licensed or
required to be licensed under Sections 5-101, 5-102 or 5-301
who knowingly fails to record on a Uniform Invoice any of the
information or entries required to be recorded by subsections
(a), (b) and (c) of this Section, or who knowingly places false
entries or other misleading information on such Uniform
Invoice, or who knowingly fails to retain for 3 years a copy of
a Uniform Invoice reflecting transactions required to be
recorded by subsections (a), (b) and (c) of this Section, or
who knowingly acquires or disposes of essential parts without
receiving, issuing, or executing a Uniform Invoice reflecting
that transaction as required by subsections (a), (b) and (c) of
this Section, or who brings or causes to be brought into this
State essential parts for which the information required to be
recorded on a Uniform Invoice is not recorded as prohibited by
subsection (c) of this Section, or who knowingly fails to
comply with the provisions of this Section in any other manner
shall be guilty of a Class 2 felony. Each violation shall
constitute a separate and distinct offense and a separate count
may be brought in the same indictment or information for each
essential part for which a record was not kept as required by
this Section or for which the person failed to comply with
other provisions of this Section.
(g) The records required to be kept by this Section may be
examined by a person or persons making a lawful inspection of

the licensee's premises pursuant to Section 5-403.
(h) The records required to be kept by this Section shall
be retained by the licensee at his principal place of business
for a period of 7 years.
(i) The requirements of this Section shall not apply to the
disposition of an essential part other than a cowl which has
been damaged or altered to a state in which it can no longer be
returned to a usable condition and which is being sold or
transferred to a scrap processor or for delivery to a scrap
processor.
(Source: P.A. 91-415, eff. 1-1-00.)
(625 ILCS 5/5-403.1) (from Ch. 95 1/2, par. 5-403.1)
Sec. 5-403.1. Inventory System.
(a) Every person licensed or required to be licensed under
the provisions of Sections 5-101, 5-101.1, 5-102, 5-102.8, and
5-301 of this Code shall, under rule and regulation prescribed
by the Secretary of State, maintain an inventory system of all
vehicles or essential parts in such a manner that a person
making an inspection pursuant to the provisions of Section
5-403 of this Code can readily ascertain the identity of such
vehicles or essential parts and readily locate such parts on
the licensees premises.
(b) Failure to maintain an inventory system as required
under this Section is a Class A misdemeanor.
(c) This Section does not apply to vehicles or essential

parts which have been acquired by a scrap processor for
processing into a form other than a vehicle or essential part.
(Source: P.A. 91-415, eff. 1-1-00.)
(625 ILCS 5/5-501) (from Ch. 95 1/2, par. 5-501)
Sec. 5-501. Denial, suspension or revocation or
cancellation of a license.
(a) The license of a person issued under this Chapter may
be denied, revoked or suspended if the Secretary of State finds
that the applicant, or the officer, director, shareholder
having a ten percent or greater ownership interest in the
corporation, owner, partner, trustee, manager, employee or the
licensee has:
1. Violated this Act;
2. Made any material misrepresentation to the
Secretary of State in connection with an application for a
license, junking certificate, salvage certificate, title
or registration;
3. Committed a fraudulent act in connection with
selling, bartering, exchanging, offering for sale or
otherwise dealing in vehicles, chassis, essential parts,
or vehicle shells;
4. As a new vehicle dealer has no contract with a
manufacturer or enfranchised distributor to sell that new
vehicle in this State;
5. Not maintained an established place of business as

defined in this Code;
6. Failed to file or produce for the Secretary of State
any application, report, document or other pertinent
books, records, documents, letters, contracts, required to
be filed or produced under this Code or any rule or
regulation made by the Secretary of State pursuant to this
Code;
7. Previously had, within 3 years, such a license
denied, suspended, revoked, or cancelled under the
provisions of subsection (c)(2) of this Section;
8. Has committed in any calendar year 3 or more
violations, as determined in any civil or criminal
proceeding, 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. "An Act in relation to the rate of interest and
other charges in connection with sales on credit and
the lending of money", approved May 24, 1879, as
amended;
f. "An Act to promote the welfare of wage-earners
by regulating the assignment of wages, and prescribing
a penalty for the violation thereof", approved July 1,
1935, as amended;

g. Part 8 of Article XII of the Code of Civil
Procedure; or
h. the "Consumer Fraud Act";
9. Failed to pay any fees or taxes due under this Act,
or has failed to transmit any fees or taxes received by him
for transmittal by him to the Secretary of State or the
State of Illinois;
10. Converted an abandoned vehicle;
11. Used a vehicle identification plate or number
assigned to a vehicle other than the one to which
originally assigned;
12. Violated the provisions of Chapter 5 of this Act,
as amended;
13. Violated the provisions of Chapter 4 of this Act,
as amended;
14. Violated the provisions of Chapter 3 of this Act,
as amended;
15. Violated Section 21-2 of the Criminal Code of 1961
or the Criminal Code of 2012, Criminal Trespass to
Vehicles;
16. Made or concealed a material fact in connection
with his application for a license;
17. Acted in the capacity of a person licensed or acted
as a licensee under this Chapter without having a license
therefor;
18. Failed to pay, within 90 days after a final

judgment, any fines assessed against the licensee pursuant
to an action brought under Section 5-404;
19. Failed to pay the Dealer Recovery Trust Fund fee
under Section 5-102.7 of this Code;
20. Failed to pay, within 90 days after notice has been
given, any fine or fee owed as a result of an
administrative citation issued by the Secretary under this
Code; .
21. Violated Article 16 or 17 of the Criminal Code of
2102;
22. Was convicted of a forcible felony under either the
Criminal Code of 1961 or Criminal Code of 2012 or convicted
of a similar out-of-state offense.
(b) In addition to other grounds specified in this Chapter,
the Secretary of State, on complaint of the Department of
Revenue, shall refuse the issuance or renewal of a license, or
suspend or revoke such license, for any of the following
violations of the "Retailers' Occupation Tax Act", the tax
imposed on corporations under subsection (b) of Section 201 of
the Illinois Income Tax Act, the Personal Property Tax
Replacement Income Tax imposed under subsections (c) and (d) of
Section 201 of the Illinois Income Tax Act, or the tax imposed
under Section 704A of the Illinois Income Tax Act:
1. Failure to make a tax return;
2. The filing of a fraudulent return;
3. Failure to pay all or part of any tax or penalty

finally determined to be due;
4. Failure to comply with the bonding requirements of
the "Retailers' Occupation Tax Act".
(b-1) In addition to other grounds specified in this
Chapter, the Secretary of State, on complaint of the Motor
Vehicle Review Board, shall refuse the issuance or renewal of a
license, or suspend or revoke that license, if costs or fees
assessed under Section 29 or Section 30 of the Motor Vehicle
Franchise Act have remained unpaid for a period in excess of 90
days after the licensee received from the Motor Vehicle Board a
second notice and demand for the costs or fees. The Motor
Vehicle Review Board must send the licensee written notice and
demand for payment of the fees or costs at least 2 times, and
the second notice and demand must be sent by certified mail.
(c) Cancellation of a license.
1. The license of a person issued under this Chapter
may be cancelled by the Secretary of State prior to its
expiration in any of the following situations:
A. When a license is voluntarily surrendered, by
the licensed person; or
B. If the business enterprise is a sole
proprietorship, which is not a franchised dealership,
when the sole proprietor dies or is imprisoned for any
period of time exceeding 30 days; or
C. If the license was issued to the wrong person or
corporation, or contains an error on its face. If any

person above whose license has been cancelled wishes to
apply for another license, whether during the same
license year or any other year, that person shall be
treated as any other new applicant and the cancellation
of the person's prior license shall not, in and of
itself, be a bar to the issuance of a new license.
2. The license of a person issued under this Chapter
may be cancelled without a hearing when the Secretary of
State is notified that the applicant, or any officer,
director, shareholder having a 10 per cent or greater
ownership interest in the corporation, owner, partner,
trustee, manager, employee or member of the applicant or
the licensee has been convicted of any felony involving the
selling, bartering, exchanging, offering for sale, or
otherwise dealing in vehicles, chassis, essential parts,
vehicle shells, or ownership documents relating to any of
the above items.
(Source: P.A. 97-480, eff. 10-1-11; 97-838, eff. 7-20-12;
97-1150, eff. 1-25-13; 98-1080, eff. 8-26-14.)
(625 ILCS 5/5-503) (from Ch. 95 1/2, par. 5-503)
Sec. 5-503. Failure to obtain dealer's license, operation
of a business with a suspended or revoked license.
(a) Any person operating a business for which he is
required to be licensed under Section 5-101, 5-101.2, 5-102,
5-102.8, 5-201, or 5-301 who fails to apply for such a license

or licenses within 15 days after being informed in writing by
the Secretary of State that he must obtain such a license or
licenses is subject to a civil action brought by the Secretary
of State for operating a business without a license in the
circuit court in the county in which the business is located.
If the person is found to be in violation of Section 5-101,
5-101.2, 5-102, 5-102.8, 5-201, or 5-301 by carrying on a
business without being properly licensed, that person shall be
fined $300 for each business day he conducted his business
without such a license after the expiration of the 15-day
period specified in this subsection (a).
(b) Any person who, having had his license or licenses
issued under Section 5-101, 5-101.2, 5-102, 5-201, or 5-301
suspended, revoked, nonrenewed, cancelled, or denied by the
Secretary of State under Section 5-501 or 5-501.5 of this Code,
continues to operate business after the effective date of such
revocation, nonrenewal, suspension, cancellation, or denial
may be sued in a civil action by the Secretary of State in the
county in which the established or additional place of such
business is located. Except as provided in subsection (e) of
Section 5-501.5 of this Code, if such person is found by the
court to have operated such a business after the license or
licenses required for conducting such business have been
suspended, revoked, nonrenewed, cancelled, or denied, that
person shall be fined $500 for each day he conducted business
thereafter.

(Source: P.A. 100-409, eff. 8-25-17; 100-450, eff. 1-1-18;
100-863, eff. 8-14-18.)
INDEX
Statutes amended in order of appearance