Bill Text: IL SB1556 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the Illinois Vehicle Code. Adds to the definition of "junk vehicle" and "remittance agent". Provides that a certificate of title issued by the Secretary of State shall contain the names and fax numbers or electronic addresses of any lienholders (rather than only the names of the lienholders) and the certificate's expiration date. Provides that an expiration date of 2 calendar years after the end of term of the lien shall be included in each certificate of title issued to a lienholder who has a perfected security interest. Provides that if a recorded lienholder does not reaffirm a lien and does not respond to a request to verify a lien release letter within 7 calendar days of receipt, the Secretary shall process an application for corrected title for the owner of a motor vehicle. Provides that the Secretary may issue a certificate of title to an out-of-state resident if the out-of-state resident is a bona fide purchaser of a vehicle or a manufactured home from a dealer licensed in this State and the licensed dealer is no longer operating as a licensed dealer and does not properly transfer the title application to the bona fide purchaser prior to the licensed dealer's business closure. Adds to the special license plates a person may reclassify without a replacement plate fee beginning with the 2019 (rather than 2018) registration year. Provides that the bond amount required to be deposited with the Secretary for each applicant who intends to act as a remittance agent shall be $20,000 (rather than $10,000). Provides that an application for a new vehicle dealer's license or a used vehicle dealer's license shall contain a bond or certificate of deposit in the amount of $50,000 (rather than $20,000). Creates provisions concerning rental-purchase agreement vehicle programs. Effective January 1, 2018.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Enrolled) 2017-06-29 - Sent to the Governor [SB1556 Detail]

Download: Illinois-2017-SB1556-Enrolled.html



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1 AN ACT concerning transportation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Vehicle Code is amended by changing
5Sections 1-134.1, 1-171.01a, 3-107, 3-116, 3-802, 3-905,
65-101, 5-102, 5-107, 5-503, and 6-305 as follows:
7 (625 ILCS 5/1-134.1) (from Ch. 95 1/2, par. 1-134.1)
8 Sec. 1-134.1. Junk vehicle. A junk vehicle is a vehicle
9which has been or is being disassembled, crushed, compressed,
10flattened, destroyed or otherwise reduced to a state in which
11it no longer can be returned to an operable state, or has been
12branded or assigned as junk or a similar designation by another
13state or jurisdiction.
14(Source: P.A. 83-1473.)
15 (625 ILCS 5/1-171.01a)
16 Sec. 1-171.01a. Remittance agent. For the purposes of
17Article IX of Chapter 3, the term "remittance agent" means any
18person who holds himself or herself out to the public as being
19engaged in or who engages in accepting money for remittance to
20the State of Illinois or any of its instrumentalities or
21political subdivisions, or to any of their officials, for the
22payment of registration plates, vehicle certificates of title,

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1taxes, or registration fees regardless of when the money is
2accepted from the public or remitted to the State, whether or
3not the person renders any other service in connection with the
4making of any such remittance or is engaged in any other
5endeavor. The term "remittance agent" also includes any person
6who holds himself or herself out to the public as being engaged
7in or who engages in accepting money for consulting or advising
8the public on matters concerning vehicle certificates of title,
9taxes, registration renewals, registration plates, or
10applications for title. The term "remittance agent" does not
11include any licensed dealer in motor vehicles who accepts money
12for remittance to the State of Illinois for the payment of
13registration plates, vehicle certificates of title, taxes, or
14registration fees as an incident to his or her business as a
15motor vehicle dealer.
16(Source: P.A. 97-832, eff. 7-20-12.)
17 (625 ILCS 5/3-107) (from Ch. 95 1/2, par. 3-107)
18 Sec. 3-107. Contents and effect.
19 (a) Each certificate of title issued by the Secretary of
20State shall contain:
21 1. the date issued;
22 2. the name and address of the owner;
23 3. the names, and addresses, and fax numbers or
24 electronic addresses of any lienholders, in the order of
25 priority as shown on the application or, if the application

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1 is based on a certificate of title, as shown on the
2 certificate;
3 4. the title number assigned to the vehicle;
4 5. a description of the vehicle including, so far as
5 the following data exists: its make, year-model,
6 identifying number, type of body, whether new or used, as
7 to house trailers as defined in Section 1-128 of this Code,
8 and as to manufactured homes as defined in Section 1-144.03
9 of this Code, the square footage of the vehicle based upon
10 the outside dimensions excluding the length of the tongue
11 and hitch, and, if a new vehicle, the date of the first
12 sale of the vehicle for use;
13 6. an odometer certification as provided for in this
14 Code; and
15 7. any other data the Secretary of State prescribes.
16 (a-5) In the event the applicant seeks to have the vehicle
17titled as a custom vehicle or street rod, that fact must be
18stated in the application. The custom vehicle or street rod
19must be inspected as required by Section 3-406 of this Code
20prior to issuance of the title. Upon successful completion of
21the inspection, the vehicle may be titled in the following
22manner. The make of the vehicle shall be listed as the make of
23the actual vehicle or the make it is designed to resemble
24(e.g., Ford or Chevrolet); the model of the vehicle shall be
25listed as custom vehicle or street rod; and the year of the
26vehicle shall be listed as the year the actual vehicle was

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1manufactured or the year it is designed to resemble. A vehicle
2previously titled as other than a custom vehicle or street rod
3may be issued a corrected title reflecting the custom vehicle
4or street rod model if it otherwise meets the requirements for
5the designation.
6 (a-10) In the event the applicant seeks to have the vehicle
7titled as a glider kit, that fact must be stated in the
8application. The glider kit must be inspected under Section
93-406 of this Code prior to issuance of the title. Upon
10successful completion of the inspection, the vehicle shall be
11titled in the following manner: (1) the make of the vehicle
12shall be listed as the make of the chassis or the make it is
13designed to resemble; (2) the model of the vehicle shall be
14listed as glider kit; and (3) the year of the vehicle shall be
15listed as the year presented on the manufacturer's certificate
16of origin for the chassis, unless no year is presented, then it
17shall be listed as the year the application was received. The
18vehicle identification number of the chassis shall be assigned
19to the engine, transmission, and rear axle if the engine,
20transmission, and rear axle were not previously assigned a
21vehicle identification number after an inspection under
22Section 3-406.
23 (b) The certificate of title shall contain forms for
24assignment and warranty of title by the owner, and for
25assignment and warranty of title by a dealer, and may contain
26forms for applications for a certificate of title by a

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1transferee, the naming of a lienholder and the assignment or
2release of the security interest of a lienholder.
3 (b-5) The Secretary of State shall designate on a
4certificate of title a space where the owner of a vehicle may
5designate a beneficiary, to whom ownership of the vehicle shall
6pass in the event of the owner's death.
7 (c) A certificate of title issued by the Secretary of State
8is prima facie evidence of the facts appearing on it.
9 (d) A certificate of title for a vehicle is not subject to
10garnishment, attachment, execution or other judicial process,
11but this subsection does not prevent a lawful levy upon the
12vehicle.
13 (e) Any certificate of title issued by the Secretary of
14State is subject to a lien in favor of the State of Illinois
15for any fees or taxes required to be paid under this Act and as
16have not been paid, as provided for in this Code.
17 (f) Notwithstanding any other provision of law, a
18certificate of title issued by the Secretary of State to a
19manufactured home is prima facie evidence of the facts
20appearing on it, notwithstanding the fact that such
21manufactured home, at any time, shall have become affixed in
22any manner to real property.
23(Source: P.A. 98-749, eff. 7-16-14; 99-748, eff. 8-5-16.)
24 (625 ILCS 5/3-116) (from Ch. 95 1/2, par. 3-116)
25 Sec. 3-116. When Secretary of State to issue a certificate

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1of title.
2 (a) The Secretary of State, upon receipt of a properly
3assigned certificate of title, with an application for a
4certificate of title, the required fee and any other documents
5required by law, shall issue a new certificate of title in the
6name of the transferee as owner and mail it to the first
7lienholder named in it or, if none, to the owner or owner's
8designee.
9 (b) The Secretary of State, upon receipt of an application
10for a new certificate of title by a transferee other than by
11voluntary transfer, with proof of the transfer, the required
12fee and any other documents required by law, shall issue a new
13certificate of title in the name of the transferee as owner.
14 (b-5) The Secretary of State, upon receipt of an
15application for a certificate of title and the required fee,
16may issue a certificate of title to an out-of-state resident if
17the out-of-state resident is a bona fide purchaser of a vehicle
18or a manufactured home from a dealer licensed in this State
19under Section 5-101, 5-101.2, or 5-102 of this Code and the
20licensed dealer files for bankruptcy, surrenders his or her
21license, or is otherwise no longer operating as a licensed
22dealer and does not properly transfer the title application to
23the bona fide purchaser prior to the licensed dealer's business
24closure.
25 (c) Any person, firm or corporation, who shall knowingly
26possess, buy, sell, exchange or give away, or offer to buy,

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1sell, exchange or give away the certificate of title to any
2motor vehicle which is a junk or salvage, or who shall fail to
3surrender the certificate of title to the Secretary of State as
4required under the provisions of this Section and Section
53-117.2, shall be guilty of Class 3 felony.
6 (d) The Secretary of State shall file and retain for four
7(4) years a record of every surrendered certificate of title or
8proof of ownership accepted by the Secretary of State, the file
9to be maintained so as to permit the tracing of title of the
10vehicle designated therein. Such filing and retention
11requirements shall be in addition to and not in substitution
12for the recordkeeping requirements set forth in Section 3-106
13of this Code, which recordkeeping requirements are not limited
14to any period of time.
15 (e) The Secretary of State, upon receipt of an application
16for corrected certificate of title, with the original title,
17the required fee and any other required documents, shall issue
18a corrected certificate of title in the name of the owner and
19mail it to the first lienholder named in it or, if none, to the
20owner or owner's designee.
21 (f) The Secretary of State, upon receipt of a certified
22copy of a court order awarding ownership to an applicant along
23with an application for a certificate of title and the required
24fee, shall issue a certificate of title to the applicant.
25(Source: P.A. 98-749, eff. 7-16-14.)

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1 (625 ILCS 5/3-802) (from Ch. 95 1/2, par. 3-802)
2 Sec. 3-802. Reclassifications and upgrades.
3 (a) Definitions. For the purposes of this Section, the
4following words shall have the meanings ascribed to them as
5follows:
6 "Reclassification" means changing the registration of
7 a vehicle from one plate category to another.
8 "Upgrade" means increasing the registered weight of a
9 vehicle within the same plate category.
10 (b) When reclassing the registration of a vehicle from one
11plate category to another, the owner shall receive credit for
12the unused portion of the present plate and be charged the
13current portion fees for the new plate. In addition, the
14appropriate replacement plate and replacement sticker fees
15shall be assessed.
16 (b-5) Beginning with the 2019 2018 registration year, any
17individual who has a registration issued under either Section
183-405 or 3-405.1 that qualifies for a special license plate
19under Sections 3-609, 3-609.1, 3-620, 3-621, 3-622, 3-623,
203-624, 3-625, 3-626, 3-628, 3-638, 3-642, 3-645, 3-647, 3-650,
213-651, 3-664, 3-666, 3-667, 3-668, 3-669, 3-676, 3-677, 3-680,
223-681, 3-683, 3-686, 3-688, or 3-693, 3-698, or 3-699.12 may
23reclass his or her registration upon acquiring a special
24license plate listed in this subsection (b-5) without a
25replacement plate fee or registration sticker cost.
26 (c) When upgrading the weight of a registration within the

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1same plate category, the owner shall pay the difference in
2current period fees between the two plates. In addition, the
3appropriate replacement plate and replacement sticker fees
4shall be assessed. In the event new plates are not required,
5the corrected registration card fee shall be assessed.
6 (d) In the event the owner of the vehicle desires to change
7the registered weight and change the plate category, the owner
8shall receive credit for the unused portion of the registration
9fee of the current plate and pay the current portion of the
10registration fee for the new plate, and in addition, pay the
11appropriate replacement plate and replacement sticker fees.
12 (e) Reclassing from one plate category to another plate
13category can be done only once within any registration period.
14 (f) No refunds shall be made in any of the circumstances
15found in subsection (b), subsection (c), or subsection (d);
16however, when reclassing from a flat weight plate to an
17apportioned plate, a refund may be issued if the credit amounts
18to an overpayment.
19 (g) In the event the registration of a vehicle registered
20under the mileage tax option is revoked, the owner shall be
21required to pay the annual registration fee in the new plate
22category and shall not receive any credit for the mileage plate
23fees.
24 (h) Certain special interest plates may be displayed on
25first division vehicles, second division vehicles weighing
268,000 pounds or less, and recreational vehicles. Those plates

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1can be transferred within those vehicle groups.
2 (i) Plates displayed on second division vehicles weighing
38,000 pounds or less and passenger vehicle plates may be
4reclassed from one division to the other.
5 (j) Other than in subsection (i), reclassing from one
6division to the other division is prohibited. In addition, a
7reclass from a motor vehicle to a trailer or a trailer to a
8motor vehicle is prohibited.
9(Source: P.A. 99-809, eff. 1-1-17.)
10 (625 ILCS 5/3-905) (from Ch. 95 1/2, par. 3-905)
11 Sec. 3-905. Bond; fee; duration of license. Such applicant
12shall, with his application, deposit with the Secretary of
13State a bond as hereinafter provided, for each location at
14which the applicant intends to act as a remittance agent. The
15application shall be accompanied by the payment of a license
16fee in the sum of $50.00 (or $25.00 if such application is
17filed after July 1) for each location at which he proposes to
18act as a remittance agent. If the applicant shall have complied
19with all of the requirements of this Section and the Secretary
20of State shall find after investigation that the applicant is
21financially sound and of good business integrity, he shall
22issue the required license. Such license shall terminate on
23December 31 of the year for which it is issued, but upon
24application prior to November 15 of any year for which a
25license is in effect may be renewed for the next succeeding

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1calendar year. Such application shall be accompanied by the
2payment of an annual license fee of $50.00 for each location at
3which the applicant proposes to act as a remittance agent and
4the posting of the bond herein provided, for each such
5location.
6 The bond required by this Section shall be for the term of
7the license, or renewal thereof, for which application is made,
8and shall run to the People of the State of Illinois, with
9surety by a bonding or insurance company authorized to do
10business in this State, to be approved by the Secretary of
11State. It shall be conditioned upon the proper transmittal of
12all remittances by the applicant as a remittance agent and the
13performance of all undertakings in connection therewith. It
14shall be in the minimum sum of $20,000 $10,000, or in an amount
15equal to the aggregate sum of money transmitted to the State by
16the applicant during the highest 15 day period in the fiscal
17year immediately preceding the one for which application is
18made (rounded to the nearest $1,000), whichever is the greater.
19However, for the purpose of determining the bond requirements
20hereunder, remittances made by applicants in the form of money
21orders, checks, or electronic payments which are made payable
22directly to the Secretary of State or the Illinois Department
23of Revenue by the remitter, shall not be considered in the
24aggregate. The bond requirement of this Section shall not apply
25to banks, savings and loan associations, and credit unions
26chartered by the State of Illinois or the United States;

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1provided that the banks, savings and loan associations, and
2credit unions provide to the Secretary of State an affidavit
3stating that the bank, savings and loan association, or credit
4union is sufficiently bonded to meet the requirements as
5required above. Such affidavit shall be signed by an officer of
6the bank, savings and loan association, or credit union and
7shall be notarized.
8(Source: P.A. 99-324, eff. 1-1-16.)
9 (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
10 Sec. 5-101. New vehicle dealers must be licensed.
11 (a) No person shall engage in this State in the business of
12selling or dealing in, on consignment or otherwise, new
13vehicles of any make, or act as an intermediary or agent or
14broker for any licensed dealer or vehicle purchaser other than
15as a salesperson, or represent or advertise that he is so
16engaged or intends to so engage in such business unless
17licensed to do so in writing by the Secretary of State under
18the provisions of this Section.
19 (b) An application for a new vehicle dealer's license shall
20be filed with the Secretary of State, duly verified by oath, on
21such form as the Secretary of State may by rule or regulation
22prescribe and shall contain:
23 1. The name and type of business organization of the
24 applicant and his established and additional places of
25 business, if any, in this State.

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1 2. If the applicant is a corporation, a list of its
2 officers, directors, and shareholders having a ten percent
3 or greater ownership interest in the corporation, setting
4 forth the residence address of each; if the applicant is a
5 sole proprietorship, a partnership, an unincorporated
6 association, a trust, or any similar form of business
7 organization, the name and residence address of the
8 proprietor or of each partner, member, officer, director,
9 trustee, or manager.
10 3. The make or makes of new vehicles which the
11 applicant will offer for sale at retail in this State.
12 4. The name of each manufacturer or franchised
13 distributor, if any, of new vehicles with whom the
14 applicant has contracted for the sale of such new vehicles.
15 As evidence of this fact, the application shall be
16 accompanied by a signed statement from each such
17 manufacturer or franchised distributor. If the applicant
18 is in the business of offering for sale new conversion
19 vehicles, trucks or vans, except for trucks modified to
20 serve a special purpose which includes but is not limited
21 to the following vehicles: street sweepers, fertilizer
22 spreaders, emergency vehicles, implements of husbandry or
23 maintenance type vehicles, he must furnish evidence of a
24 sales and service agreement from both the chassis
25 manufacturer and second stage manufacturer.
26 5. A statement that the applicant has been approved for

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1 registration under the Retailers' Occupation Tax Act by the
2 Department of Revenue: Provided that this requirement does
3 not apply to a dealer who is already licensed hereunder
4 with the Secretary of State, and who is merely applying for
5 a renewal of his license. As evidence of this fact, the
6 application shall be accompanied by a certification from
7 the Department of Revenue showing that that Department has
8 approved the applicant for registration under the
9 Retailers' Occupation Tax Act.
10 6. A statement that the applicant has complied with the
11 appropriate liability insurance requirement. A Certificate
12 of Insurance in a solvent company authorized to do business
13 in the State of Illinois shall be included with each
14 application covering each location at which he proposes to
15 act as a new vehicle dealer. The policy must provide
16 liability coverage in the minimum amounts of $100,000 for
17 bodily injury to, or death of, any person, $300,000 for
18 bodily injury to, or death of, two or more persons in any
19 one accident, and $50,000 for damage to property. Such
20 policy shall expire not sooner than December 31 of the year
21 for which the license was issued or renewed. The expiration
22 of the insurance policy shall not terminate the liability
23 under the policy arising during the period for which the
24 policy was filed. Trailer and mobile home dealers are
25 exempt from this requirement.
26 If the permitted user has a liability insurance policy

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1 that provides automobile liability insurance coverage of
2 at least $100,000 for bodily injury to or the death of any
3 person, $300,000 for bodily injury to or the death of any 2
4 or more persons in any one accident, and $50,000 for damage
5 to property, then the permitted user's insurer shall be the
6 primary insurer and the dealer's insurer shall be the
7 secondary insurer. If the permitted user does not have a
8 liability insurance policy that provides automobile
9 liability insurance coverage of at least $100,000 for
10 bodily injury to or the death of any person, $300,000 for
11 bodily injury to or the death of any 2 or more persons in
12 any one accident, and $50,000 for damage to property, or
13 does not have any insurance at all, then the dealer's
14 insurer shall be the primary insurer and the permitted
15 user's insurer shall be the secondary insurer.
16 When a permitted user is "test driving" a new vehicle
17 dealer's automobile, the new vehicle dealer's insurance
18 shall be primary and the permitted user's insurance shall
19 be secondary.
20 As used in this paragraph 6, a "permitted user" is a
21 person who, with the permission of the new vehicle dealer
22 or an employee of the new vehicle dealer, drives a vehicle
23 owned and held for sale or lease by the new vehicle dealer
24 which the person is considering to purchase or lease, in
25 order to evaluate the performance, reliability, or
26 condition of the vehicle. The term "permitted user" also

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1 includes a person who, with the permission of the new
2 vehicle dealer, drives a vehicle owned or held for sale or
3 lease by the new vehicle dealer for loaner purposes while
4 the user's vehicle is being repaired or evaluated.
5 As used in this paragraph 6, "test driving" occurs when
6 a permitted user who, with the permission of the new
7 vehicle dealer or an employee of the new vehicle dealer,
8 drives a vehicle owned and held for sale or lease by a new
9 vehicle dealer that the person is considering to purchase
10 or lease, in order to evaluate the performance,
11 reliability, or condition of the vehicle.
12 As used in this paragraph 6, "loaner purposes" means
13 when a person who, with the permission of the new vehicle
14 dealer, drives a vehicle owned or held for sale or lease by
15 the new vehicle dealer while the user's vehicle is being
16 repaired or evaluated.
17 7. (A) An application for a new motor vehicle dealer's
18 license shall be accompanied by the following license fees:
19 (i) $1,000 for applicant's established place of
20 business, and $100 for each additional place of
21 business, if any, to which the application pertains;
22 but if the application is made after June 15 of any
23 year, the license fee shall be $500 for applicant's
24 established place of business plus $50 for each
25 additional place of business, if any, to which the
26 application pertains. License fees shall be returnable

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1 only in the event that the application is denied by the
2 Secretary of State. All moneys received by the
3 Secretary of State as license fees under this
4 subparagraph (i) prior to applications for the 2004
5 licensing year shall be deposited into the Motor
6 Vehicle Review Board Fund and shall be used to
7 administer the Motor Vehicle Review Board under the
8 Motor Vehicle Franchise Act. Of the money received by
9 the Secretary of State as license fees under this
10 subparagraph (i) for the 2004 licensing year and
11 thereafter, 10% shall be deposited into the Motor
12 Vehicle Review Board Fund and shall be used to
13 administer the Motor Vehicle Review Board under the
14 Motor Vehicle Franchise Act and 90% shall be deposited
15 into the General Revenue Fund.
16 (ii) Except for dealers selling 25 or fewer
17 automobiles or as provided in subsection (h) of Section
18 5-102.7 of this Code, an Annual Dealer Recovery Fund
19 Fee in the amount of $500 for the applicant's
20 established place of business, and $50 for each
21 additional place of business, if any, to which the
22 application pertains; but if the application is made
23 after June 15 of any year, the fee shall be $250 for
24 the applicant's established place of business plus $25
25 for each additional place of business, if any, to which
26 the application pertains. For a license renewal

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1 application, the fee shall be based on the amount of
2 automobiles sold in the past year according to the
3 following formula:
4 (1) $0 for dealers selling 25 or less
5 automobiles;
6 (2) $150 for dealers selling more than 25 but
7 less than 200 automobiles;
8 (3) $300 for dealers selling 200 or more
9 automobiles but less than 300 automobiles; and
10 (4) $500 for dealers selling 300 or more
11 automobiles.
12 License fees shall be returnable only in the event
13 that the application is denied by the Secretary of
14 State. Moneys received under this subparagraph (ii)
15 shall be deposited into the Dealer Recovery Trust Fund.
16 (B) An application for a new vehicle dealer's license,
17 other than for a new motor vehicle dealer's license, shall
18 be accompanied by the following license fees:
19 (i) $1,000 for applicant's established place of
20 business, and $50 for each additional place of
21 business, if any, to which the application pertains;
22 but if the application is made after June 15 of any
23 year, the license fee shall be $500 for applicant's
24 established place of business plus $25 for each
25 additional place of business, if any, to which the
26 application pertains. License fees shall be returnable

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1 only in the event that the application is denied by the
2 Secretary of State. Of the money received by the
3 Secretary of State as license fees under this
4 subparagraph (i) for the 2004 licensing year and
5 thereafter, 95% shall be deposited into the General
6 Revenue Fund.
7 (ii) Except as provided in subsection (h) of
8 Section 5-102.7 of this Code, an Annual Dealer Recovery
9 Fund Fee in the amount of $500 for the applicant's
10 established place of business, and $50 for each
11 additional place of business, if any, to which the
12 application pertains; but if the application is made
13 after June 15 of any year, the fee shall be $250 for
14 the applicant's established place of business plus $25
15 for each additional place of business, if any, to which
16 the application pertains. License fees shall be
17 returnable only in the event that the application is
18 denied by the Secretary of State. Moneys received under
19 this subparagraph (ii) shall be deposited into the
20 Dealer Recovery Trust Fund.
21 8. A statement that the applicant's officers,
22 directors, shareholders having a 10% or greater ownership
23 interest therein, proprietor, a partner, member, officer,
24 director, trustee, manager or other principals in the
25 business have not committed in the past 3 years any one
26 violation as determined in any civil, criminal or

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1 administrative proceedings of any one of the following
2 Acts:
3 (A) The Anti-Theft Laws of the Illinois Vehicle
4 Code;
5 (B) The Certificate of Title Laws of the Illinois
6 Vehicle Code;
7 (C) The Offenses against Registration and
8 Certificates of Title Laws of the Illinois Vehicle
9 Code;
10 (D) The Dealers, Transporters, Wreckers and
11 Rebuilders Laws of the Illinois Vehicle Code;
12 (E) Section 21-2 of the Criminal Code of 1961 or
13 the Criminal Code of 2012, Criminal Trespass to
14 Vehicles; or
15 (F) The Retailers' Occupation Tax Act.
16 9. A statement that the applicant's officers,
17 directors, shareholders having a 10% or greater ownership
18 interest therein, proprietor, partner, member, officer,
19 director, trustee, manager or other principals in the
20 business have not committed in any calendar year 3 or more
21 violations, as determined in any civil, criminal or
22 administrative proceedings, of any one or more of the
23 following Acts:
24 (A) The Consumer Finance Act;
25 (B) The Consumer Installment Loan Act;
26 (C) The Retail Installment Sales Act;

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1 (D) The Motor Vehicle Retail Installment Sales
2 Act;
3 (E) The Interest Act;
4 (F) The Illinois Wage Assignment Act;
5 (G) Part 8 of Article XII of the Code of Civil
6 Procedure; or
7 (H) The Consumer Fraud Act.
8 10. A bond or certificate of deposit in the amount of
9 $50,000 $20,000 for each location at which the applicant
10 intends to act as a new vehicle dealer. The bond shall be
11 for the term of the license, or its renewal, for which
12 application is made, and shall expire not sooner than
13 December 31 of the year for which the license was issued or
14 renewed. The bond shall run to the People of the State of
15 Illinois, with surety by a bonding or insurance company
16 authorized to do business in this State. It shall be
17 conditioned upon the proper transmittal of all title and
18 registration fees and taxes (excluding taxes under the
19 Retailers' Occupation Tax Act) accepted by the applicant as
20 a new vehicle dealer.
21 11. Such other information concerning the business of
22 the applicant as the Secretary of State may by rule or
23 regulation prescribe.
24 12. A statement that the applicant understands Chapter
25 1 through Chapter 5 of this Code.
26 (c) Any change which renders no longer accurate any

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1information contained in any application for a new vehicle
2dealer's license shall be amended within 30 days after the
3occurrence of such change on such form as the Secretary of
4State may prescribe by rule or regulation, accompanied by an
5amendatory fee of $2.
6 (d) Anything in this Chapter 5 to the contrary
7notwithstanding no person shall be licensed as a new vehicle
8dealer unless:
9 1. He is authorized by contract in writing between
10 himself and the manufacturer or franchised distributor of
11 such make of vehicle to so sell the same in this State, and
12 2. Such person shall maintain an established place of
13 business as defined in this Act.
14 (e) The Secretary of State shall, within a reasonable time
15after receipt, examine an application submitted to him under
16this Section and unless he makes a determination that the
17application submitted to him does not conform with the
18requirements of this Section or that grounds exist for a denial
19of the application, under Section 5-501 of this Chapter, grant
20the applicant an original new vehicle dealer's license in
21writing for his established place of business and a
22supplemental license in writing for each additional place of
23business in such form as he may prescribe by rule or regulation
24which shall include the following:
25 1. The name of the person licensed;
26 2. If a corporation, the name and address of its

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1 officers or if a sole proprietorship, a partnership, an
2 unincorporated association or any similar form of business
3 organization, the name and address of the proprietor or of
4 each partner, member, officer, director, trustee or
5 manager;
6 3. In the case of an original license, the established
7 place of business of the licensee;
8 4. In the case of a supplemental license, the
9 established place of business of the licensee and the
10 additional place of business to which such supplemental
11 license pertains;
12 5. The make or makes of new vehicles which the licensee
13 is licensed to sell.
14 (f) The appropriate instrument evidencing the license or a
15certified copy thereof, provided by the Secretary of State,
16shall be kept posted conspicuously in the established place of
17business of the licensee and in each additional place of
18business, if any, maintained by such licensee.
19 (g) Except as provided in subsection (h) hereof, all new
20vehicle dealer's licenses granted under this Section shall
21expire by operation of law on December 31 of the calendar year
22for which they are granted unless sooner revoked or cancelled
23under the provisions of Section 5-501 of this Chapter.
24 (h) A new vehicle dealer's license may be renewed upon
25application and payment of the fee required herein, and
26submission of proof of coverage under an approved bond under

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1the Retailers' Occupation Tax Act or proof that applicant is
2not subject to such bonding requirements, as in the case of an
3original license, but in case an application for the renewal of
4an effective license is made during the month of December, the
5effective license shall remain in force until the application
6is granted or denied by the Secretary of State.
7 (i) All persons licensed as a new vehicle dealer are
8required to furnish each purchaser of a motor vehicle:
9 1. In the case of a new vehicle a manufacturer's
10 statement of origin and in the case of a used motor vehicle
11 a certificate of title, in either case properly assigned to
12 the purchaser;
13 2. A statement verified under oath that all identifying
14 numbers on the vehicle agree with those on the certificate
15 of title or manufacturer's statement of origin;
16 3. A bill of sale properly executed on behalf of such
17 person;
18 4. A copy of the Uniform Invoice-transaction reporting
19 return referred to in Section 5-402 hereof;
20 5. In the case of a rebuilt vehicle, a copy of the
21 Disclosure of Rebuilt Vehicle Status; and
22 6. In the case of a vehicle for which the warranty has
23 been reinstated, a copy of the warranty.
24 (j) Except at the time of sale or repossession of the
25vehicle, no person licensed as a new vehicle dealer may issue
26any other person a newly created key to a vehicle unless the

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1new vehicle dealer makes a copy of the driver's license or
2State identification card of the person requesting or obtaining
3the newly created key. The new vehicle dealer must retain the
4copy for 30 days.
5 A new vehicle dealer who violates this subsection (j) is
6guilty of a petty offense. Violation of this subsection (j) is
7not cause to suspend, revoke, cancel, or deny renewal of the
8new vehicle dealer's license.
9 This amendatory Act of 1983 shall be applicable to the 1984
10registration year and thereafter.
11(Source: P.A. 98-450, eff. 1-1-14; 99-78, eff. 7-20-15.)
12 (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
13 Sec. 5-102. Used vehicle dealers must be licensed.
14 (a) No person, other than a licensed new vehicle dealer,
15shall engage in the business of selling or dealing in, on
16consignment or otherwise, 5 or more used vehicles of any make
17during the year (except house trailers as authorized by
18paragraph (j) of this Section and rebuilt salvage vehicles sold
19by their rebuilders to persons licensed under this Chapter), or
20act as an intermediary, agent or broker for any licensed dealer
21or vehicle purchaser (other than as a salesperson) or represent
22or advertise that he is so engaged or intends to so engage in
23such business unless licensed to do so by the Secretary of
24State under the provisions of this Section.
25 (b) An application for a used vehicle dealer's license

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1shall be filed with the Secretary of State, duly verified by
2oath, in such form as the Secretary of State may by rule or
3regulation prescribe and shall contain:
4 1. The name and type of business organization
5 established and additional places of business, if any, in
6 this State.
7 2. If the applicant is a corporation, a list of its
8 officers, directors, and shareholders having a ten percent
9 or greater ownership interest in the corporation, setting
10 forth the residence address of each; if the applicant is a
11 sole proprietorship, a partnership, an unincorporated
12 association, a trust, or any similar form of business
13 organization, the names and residence address of the
14 proprietor or of each partner, member, officer, director,
15 trustee or manager.
16 3. A statement that the applicant has been approved for
17 registration under the Retailers' Occupation Tax Act by the
18 Department of Revenue. However, this requirement does not
19 apply to a dealer who is already licensed hereunder with
20 the Secretary of State, and who is merely applying for a
21 renewal of his license. As evidence of this fact, the
22 application shall be accompanied by a certification from
23 the Department of Revenue showing that the Department has
24 approved the applicant for registration under the
25 Retailers' Occupation Tax Act.
26 4. A statement that the applicant has complied with the

SB1556 Enrolled- 27 -LRB100 08798 AXK 18937 b
1 appropriate liability insurance requirement. A Certificate
2 of Insurance in a solvent company authorized to do business
3 in the State of Illinois shall be included with each
4 application covering each location at which he proposes to
5 act as a used vehicle dealer. The policy must provide
6 liability coverage in the minimum amounts of $100,000 for
7 bodily injury to, or death of, any person, $300,000 for
8 bodily injury to, or death of, two or more persons in any
9 one accident, and $50,000 for damage to property. Such
10 policy shall expire not sooner than December 31 of the year
11 for which the license was issued or renewed. The expiration
12 of the insurance policy shall not terminate the liability
13 under the policy arising during the period for which the
14 policy was filed. Trailer and mobile home dealers are
15 exempt from this requirement.
16 If the permitted user has a liability insurance policy
17 that provides automobile liability insurance coverage of
18 at least $100,000 for bodily injury to or the death of any
19 person, $300,000 for bodily injury to or the death of any 2
20 or more persons in any one accident, and $50,000 for damage
21 to property, then the permitted user's insurer shall be the
22 primary insurer and the dealer's insurer shall be the
23 secondary insurer. If the permitted user does not have a
24 liability insurance policy that provides automobile
25 liability insurance coverage of at least $100,000 for
26 bodily injury to or the death of any person, $300,000 for

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1 bodily injury to or the death of any 2 or more persons in
2 any one accident, and $50,000 for damage to property, or
3 does not have any insurance at all, then the dealer's
4 insurer shall be the primary insurer and the permitted
5 user's insurer shall be the secondary insurer.
6 When a permitted user is "test driving" a used vehicle
7 dealer's automobile, the used vehicle dealer's insurance
8 shall be primary and the permitted user's insurance shall
9 be secondary.
10 As used in this paragraph 4, a "permitted user" is a
11 person who, with the permission of the used vehicle dealer
12 or an employee of the used vehicle dealer, drives a vehicle
13 owned and held for sale or lease by the used vehicle dealer
14 which the person is considering to purchase or lease, in
15 order to evaluate the performance, reliability, or
16 condition of the vehicle. The term "permitted user" also
17 includes a person who, with the permission of the used
18 vehicle dealer, drives a vehicle owned or held for sale or
19 lease by the used vehicle dealer for loaner purposes while
20 the user's vehicle is being repaired or evaluated.
21 As used in this paragraph 4, "test driving" occurs when
22 a permitted user who, with the permission of the used
23 vehicle dealer or an employee of the used vehicle dealer,
24 drives a vehicle owned and held for sale or lease by a used
25 vehicle dealer that the person is considering to purchase
26 or lease, in order to evaluate the performance,

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1 reliability, or condition of the vehicle.
2 As used in this paragraph 4, "loaner purposes" means
3 when a person who, with the permission of the used vehicle
4 dealer, drives a vehicle owned or held for sale or lease by
5 the used vehicle dealer while the user's vehicle is being
6 repaired or evaluated.
7 5. An application for a used vehicle dealer's license
8 shall be accompanied by the following license fees:
9 (A) $1,000 for applicant's established place of
10 business, and $50 for each additional place of
11 business, if any, to which the application pertains;
12 however, if the application is made after June 15 of
13 any year, the license fee shall be $500 for applicant's
14 established place of business plus $25 for each
15 additional place of business, if any, to which the
16 application pertains. License fees shall be returnable
17 only in the event that the application is denied by the
18 Secretary of State. Of the money received by the
19 Secretary of State as license fees under this
20 subparagraph (A) for the 2004 licensing year and
21 thereafter, 95% shall be deposited into the General
22 Revenue Fund.
23 (B) Except for dealers selling 25 or fewer
24 automobiles or as provided in subsection (h) of Section
25 5-102.7 of this Code, an Annual Dealer Recovery Fund
26 Fee in the amount of $500 for the applicant's

SB1556 Enrolled- 30 -LRB100 08798 AXK 18937 b
1 established place of business, and $50 for each
2 additional place of business, if any, to which the
3 application pertains; but if the application is made
4 after June 15 of any year, the fee shall be $250 for
5 the applicant's established place of business plus $25
6 for each additional place of business, if any, to which
7 the application pertains. For a license renewal
8 application, the fee shall be based on the amount of
9 automobiles sold in the past year according to the
10 following formula:
11 (1) $0 for dealers selling 25 or less
12 automobiles;
13 (2) $150 for dealers selling more than 25 but
14 less than 200 automobiles;
15 (3) $300 for dealers selling 200 or more
16 automobiles but less than 300 automobiles; and
17 (4) $500 for dealers selling 300 or more
18 automobiles.
19 License fees shall be returnable only in the event
20 that the application is denied by the Secretary of
21 State. Moneys received under this subparagraph (B)
22 shall be deposited into the Dealer Recovery Trust Fund.
23 6. A statement that the applicant's officers,
24 directors, shareholders having a 10% or greater ownership
25 interest therein, proprietor, partner, member, officer,
26 director, trustee, manager or other principals in the

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1 business have not committed in the past 3 years any one
2 violation as determined in any civil, criminal or
3 administrative proceedings of any one of the following
4 Acts:
5 (A) The Anti-Theft Laws of the Illinois Vehicle
6 Code;
7 (B) The Certificate of Title Laws of the Illinois
8 Vehicle Code;
9 (C) The Offenses against Registration and
10 Certificates of Title Laws of the Illinois Vehicle
11 Code;
12 (D) The Dealers, Transporters, Wreckers and
13 Rebuilders Laws of the Illinois Vehicle Code;
14 (E) Section 21-2 of the Illinois Criminal Code of
15 1961 or the Criminal Code of 2012, Criminal Trespass to
16 Vehicles; or
17 (F) The Retailers' Occupation Tax Act.
18 7. A statement that the applicant's officers,
19 directors, shareholders having a 10% or greater ownership
20 interest therein, proprietor, partner, member, officer,
21 director, trustee, manager or other principals in the
22 business have not committed in any calendar year 3 or more
23 violations, as determined in any civil or criminal or
24 administrative proceedings, of any one or more of the
25 following Acts:
26 (A) The Consumer Finance Act;

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1 (B) The Consumer Installment Loan Act;
2 (C) The Retail Installment Sales Act;
3 (D) The Motor Vehicle Retail Installment Sales
4 Act;
5 (E) The Interest Act;
6 (F) The Illinois Wage Assignment Act;
7 (G) Part 8 of Article XII of the Code of Civil
8 Procedure; or
9 (H) The Consumer Fraud Act.
10 8. A bond or Certificate of Deposit in the amount of
11 $50,000 $20,000 for each location at which the applicant
12 intends to act as a used vehicle dealer. The bond shall be
13 for the term of the license, or its renewal, for which
14 application is made, and shall expire not sooner than
15 December 31 of the year for which the license was issued or
16 renewed. The bond shall run to the People of the State of
17 Illinois, with surety by a bonding or insurance company
18 authorized to do business in this State. It shall be
19 conditioned upon the proper transmittal of all title and
20 registration fees and taxes (excluding taxes under the
21 Retailers' Occupation Tax Act) accepted by the applicant as
22 a used vehicle dealer.
23 9. Such other information concerning the business of
24 the applicant as the Secretary of State may by rule or
25 regulation prescribe.
26 10. A statement that the applicant understands Chapter

SB1556 Enrolled- 33 -LRB100 08798 AXK 18937 b
1 1 through Chapter 5 of this Code.
2 11. A copy of the certification from the prelicensing
3 education program.
4 (c) Any change which renders no longer accurate any
5information contained in any application for a used vehicle
6dealer's license shall be amended within 30 days after the
7occurrence of each change on such form as the Secretary of
8State may prescribe by rule or regulation, accompanied by an
9amendatory fee of $2.
10 (d) Anything in this Chapter to the contrary
11notwithstanding, no person shall be licensed as a used vehicle
12dealer unless such person maintains an established place of
13business as defined in this Chapter.
14 (e) The Secretary of State shall, within a reasonable time
15after receipt, examine an application submitted to him under
16this Section. Unless the Secretary makes a determination that
17the application submitted to him does not conform to this
18Section or that grounds exist for a denial of the application
19under Section 5-501 of this Chapter, he must grant the
20applicant an original used vehicle dealer's license in writing
21for his established place of business and a supplemental
22license in writing for each additional place of business in
23such form as he may prescribe by rule or regulation which shall
24include the following:
25 1. The name of the person licensed;
26 2. If a corporation, the name and address of its

SB1556 Enrolled- 34 -LRB100 08798 AXK 18937 b
1 officers or if a sole proprietorship, a partnership, an
2 unincorporated association or any similar form of business
3 organization, the name and address of the proprietor or of
4 each partner, member, officer, director, trustee or
5 manager;
6 3. In case of an original license, the established
7 place of business of the licensee;
8 4. In the case of a supplemental license, the
9 established place of business of the licensee and the
10 additional place of business to which such supplemental
11 license pertains.
12 (f) The appropriate instrument evidencing the license or a
13certified copy thereof, provided by the Secretary of State
14shall be kept posted, conspicuously, in the established place
15of business of the licensee and in each additional place of
16business, if any, maintained by such licensee.
17 (g) Except as provided in subsection (h) of this Section,
18all used vehicle dealer's licenses granted under this Section
19expire by operation of law on December 31 of the calendar year
20for which they are granted unless sooner revoked or cancelled
21under Section 5-501 of this Chapter.
22 (h) A used vehicle dealer's license may be renewed upon
23application and payment of the fee required herein, and
24submission of proof of coverage by an approved bond under the
25"Retailers' Occupation Tax Act" or proof that applicant is not
26subject to such bonding requirements, as in the case of an

SB1556 Enrolled- 35 -LRB100 08798 AXK 18937 b
1original license, but in case an application for the renewal of
2an effective license is made during the month of December, the
3effective license shall remain in force until the application
4for renewal is granted or denied by the Secretary of State.
5 (i) All persons licensed as a used vehicle dealer are
6required to furnish each purchaser of a motor vehicle:
7 1. A certificate of title properly assigned to the
8 purchaser;
9 2. A statement verified under oath that all identifying
10 numbers on the vehicle agree with those on the certificate
11 of title;
12 3. A bill of sale properly executed on behalf of such
13 person;
14 4. A copy of the Uniform Invoice-transaction reporting
15 return referred to in Section 5-402 of this Chapter;
16 5. In the case of a rebuilt vehicle, a copy of the
17 Disclosure of Rebuilt Vehicle Status; and
18 6. In the case of a vehicle for which the warranty has
19 been reinstated, a copy of the warranty.
20 (j) A real estate broker holding a valid certificate of
21registration issued pursuant to "The Real Estate Brokers and
22Salesmen License Act" may engage in the business of selling or
23dealing in house trailers not his own without being licensed as
24a used vehicle dealer under this Section; however such broker
25shall maintain a record of the transaction including the
26following:

SB1556 Enrolled- 36 -LRB100 08798 AXK 18937 b
1 (1) the name and address of the buyer and seller,
2 (2) the date of sale,
3 (3) a description of the mobile home, including the
4 vehicle identification number, make, model, and year, and
5 (4) the Illinois certificate of title number.
6 The foregoing records shall be available for inspection by
7any officer of the Secretary of State's Office at any
8reasonable hour.
9 (k) Except at the time of sale or repossession of the
10vehicle, no person licensed as a used vehicle dealer may issue
11any other person a newly created key to a vehicle unless the
12used vehicle dealer makes a copy of the driver's license or
13State identification card of the person requesting or obtaining
14the newly created key. The used vehicle dealer must retain the
15copy for 30 days.
16 A used vehicle dealer who violates this subsection (k) is
17guilty of a petty offense. Violation of this subsection (k) is
18not cause to suspend, revoke, cancel, or deny renewal of the
19used vehicle dealer's license.
20 (l) Used vehicle dealers licensed under this Section shall
21provide the Secretary of State a register for the sale at
22auction of each salvage or junk certificate vehicle. Each
23register shall include the following information:
24 1. The year, make, model, style and color of the
25 vehicle;
26 2. The vehicle's manufacturer's identification number

SB1556 Enrolled- 37 -LRB100 08798 AXK 18937 b
1 or, if applicable, the Secretary of State or Illinois
2 Department of State Police identification number;
3 3. The date of acquisition of the vehicle;
4 4. The name and address of the person from whom the
5 vehicle was acquired;
6 5. The name and address of the person to whom any
7 vehicle was disposed, the person's Illinois license number
8 or if the person is an out-of-state salvage vehicle buyer,
9 the license number from the state or jurisdiction where the
10 buyer is licensed; and
11 6. The purchase price of the vehicle.
12 The register shall be submitted to the Secretary of State
13via written or electronic means within 10 calendar days from
14the date of the auction.
15(Source: P.A. 98-450, eff. 1-1-14; 99-78, eff. 7-20-15.)
16 "(625 ILCS 5/5-107) (from Ch. 95 1/2, par. 5-107)
17 Sec. 5-107. Bond exemption. The following persons shall be
18exempt from the bond required in Sections 5-101 and 5-102: (1)
19Any person who has been continuously licensed under Section
205-101 or 5-102 since calendar year 1983; (2) any licensee who
21as determined by the Secretary of State, has faithfully and
22continuously complied with conditions of the bond requirement
23for a period of 60 36 consecutive months after the effective
24date of this amendatory Act of the 100th General Assembly.
25 This exemption shall continue for each licensee until such

SB1556 Enrolled- 38 -LRB100 08798 AXK 18937 b
1time as he may be determined by the Secretary of State to be
2delinquent or deficient in the transmittal of title and
3registration fees or taxes.
4 This amendatory Act of 1983 shall be applicable to the 1984
5registration year and thereafter.
6 A person whose license is cancelled due to the voluntary
7surrender of such license, who applies for a new license for
8the same license year or one license year after the license
9year of the cancelled license, will remain exempt under
10paragraph (1) above if the only break in the continuous
11licensure is caused by the cancellation due to the voluntary
12surrender of the license.
13(Source: P.A. 88-158; 88-520.)
14 (625 ILCS 5/5-503) (from Ch. 95 1/2, par. 5-503)
15 Sec. 5-503. Failure to obtain dealer's license, operation
16of a business with a suspended or revoked license. (a) Any
17person operating a business for which he is required to be
18licensed under Section 5-101, 5-101.2, 5-102, 5-201 or 5-301
19who fails to apply for such a license or licenses within 15
20days after being informed in writing by the Secretary of State
21that he must obtain such a license or licenses is subject to a
22civil action brought by the Secretary of State for operating a
23business without a license in the circuit court in the county
24in which the business is located. If the person is found to be
25in violation of Section 5-101, 5-101.2, 5-102, 5-201 or 5-301

SB1556 Enrolled- 39 -LRB100 08798 AXK 18937 b
1by carrying on a business without being properly licensed, that
2person shall be fined $300 for each business day he conducted
3his business without such a license after the expiration of the
415 day period specified in this subsection (a).
5 (b) Any person who, having had his license or licenses
6issued under Section 5-101, 5-101.2, 5-102, 5-201 or 5-301
7suspended, revoked, cancelled or denied by the Secretary of
8State under Section 5-501, continues to operate business after
9the effective date of such revocation, suspension,
10cancellation or denial may be sued in a civil action by the
11Secretary of State in the county in which the established or
12additional place of such business is located. If such person is
13found by the court to have operated such a business after the
14license or licenses required for conducting such business have
15been suspended, revoked, cancelled or denied, that person shall
16be fined $500 for each day he conducted business thereafter.
17(Source: P.A. 86-444.)
18 (625 ILCS 5/6-305) (from Ch. 95 1/2, par. 6-305)
19 Sec. 6-305. Renting motor vehicle to another.
20 (a) No person shall rent a motor vehicle to any other
21person unless the latter person, or a driver designated by a
22nondriver with disabilities and meeting any minimum age and
23driver's record requirements that are uniformly applied by the
24person renting a motor vehicle, is then duly licensed hereunder
25or, in the case of a nonresident, then duly licensed under the

SB1556 Enrolled- 40 -LRB100 08798 AXK 18937 b
1laws of the State or country of his residence unless the State
2or country of his residence does not require that a driver be
3licensed.
4 (b) No person shall rent a motor vehicle to another until
5he has inspected the drivers license of the person to whom the
6vehicle is to be rented, or by whom it is to be driven, and
7compared and verified the signature thereon with the signature
8of such person written in his presence unless, in the case of a
9nonresident, the State or country wherein the nonresident
10resides does not require that a driver be licensed.
11 (c) No person shall rent a motorcycle to another unless the
12latter person is then duly licensed hereunder as a motorcycle
13operator, and in the case of a nonresident, then duly licensed
14under the laws of the State or country of his residence, unless
15the State or country of his residence does not require that a
16driver be licensed.
17 (c-1) A rental car company that rents a motor vehicle shall
18ensure that the renter is provided with an emergency telephone
19number to personnel capable of fielding roadside assistance and
20other customer service inquiries, including the ability to
21provide the caller with the telephone number of the location
22from which the vehicle was rented, if requested by the caller.
23If an owner's manual is not available in the vehicle at the
24time of the rental, an owner's manual for that vehicle or a
25similar model shall be accessible by the personnel answering
26the emergency telephone number for assistance with inquiries

SB1556 Enrolled- 41 -LRB100 08798 AXK 18937 b
1about the operation of the vehicle.
2 (d) (Blank).
3 (e) (Blank).
4 (f) Subject to subsection (l), any person who rents a motor
5vehicle to another shall only advertise, quote, and charge a
6rental rate that includes the entire amount except taxes, a
7mileage charge, and airport concession charge, if any, which a
8renter must pay to hire or lease the vehicle for the period of
9time to which the rental rate applies. The person must provide,
10on the request of the renter, based on the available
11information, an estimated total of the daily rental rate,
12including all applicable taxes, fees, and other charges, or an
13estimated total rental charge, based on the return date of the
14vehicle noted on the rental agreement. Further, if the rental
15agreement does not already provide an estimated total rental
16charge, the following statement must be included in the rental
17agreement:
18 "NOTICE: UNDER ILLINOIS LAW, YOU MAY REQUEST, BASED ON
19 AVAILABLE INFORMATION, AN ESTIMATED TOTAL DAILY RENTAL
20 RATE, INCLUDING TAXES, FEES, AND OTHER CHARGES, OR AN
21 ESTIMATED TOTAL RENTAL CHARGE, BASED ON THE VEHICLE RETURN
22 DATE NOTED ON THIS AGREEMENT."
23 Such person shall not charge in addition to the rental
24rate, taxes, mileage charge, and airport concession charge, if
25any, any fee which must be paid by the renter as a condition of
26hiring or leasing the vehicle, such as, but not limited to,

SB1556 Enrolled- 42 -LRB100 08798 AXK 18937 b
1required fuel or airport surcharges, nor any fee for
2transporting the renter to the location where the rented
3vehicle will be delivered to the renter. In addition to the
4rental rate, taxes, mileage charge, and airport concession
5charge, if any, such person may charge for an item or service
6provided in connection with a particular rental transaction if
7the renter can avoid incurring the charge by choosing not to
8obtain or utilize the optional item or service. Items and
9services for which such person may impose an additional charge
10include, but are not limited to, optional insurance and
11accessories requested by the renter, service charges incident
12to the renter's optional return of the vehicle to a location
13other than the location where the vehicle was hired or leased,
14and charges for refueling the vehicle at the conclusion of the
15rental transaction in the event the renter did not return the
16vehicle with as much fuel as was in the fuel tank at the
17beginning of the rental. "Airport concession charge" means a
18charge or fee imposed and collected from a renter to reimburse
19the motor vehicle rental company for the concession fee it is
20required to pay to a local government corporate authority or
21airport authority to rent motor vehicles at the airport
22facility. The airport concession charge is in addition to any
23customer facility charge or any other charge.
24 (g) Every person renting a motor vehicle to another shall
25keep a record of the registration number of the motor vehicle
26so rented, the name and address of the person to whom the

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1vehicle is rented, the number of the license, if any, of said
2latter person, and the date and place when and where the
3license, if any, was issued. Such record shall be open to
4inspection by any police officer or designated agent of the
5Secretary of State.
6 (h) A person licensed as a new car dealer under Section
75-101 of this Code shall not be subject to the provisions of
8this Section regarding the rental of private passenger motor
9vehicles when providing, free of charge, temporary substitute
10vehicles for customers to operate during a period when a
11customer's vehicle, which is either leased or owned by that
12customer, is being repaired, serviced, replaced or otherwise
13made unavailable to the customer in accordance with an
14agreement with the licensed new car dealer or vehicle
15manufacturer, so long as the customer orally or in writing is
16made aware that the temporary substitute vehicle will be
17covered by his or her insurance policy and the customer shall
18only be liable to the extent of any amount deductible from such
19insurance coverage in accordance with the terms of the policy.
20 (i) This Section, except the requirements of subsection
21(g), also applies to rental agreements of 30 continuous days or
22less involving a motor vehicle that was delivered by an out of
23State person or business to a renter in this State.
24 (j) A public airport may, if approved by its local
25government corporate authorities or its airport authority,
26impose a customer facility charge upon customers of rental car

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1companies for the purposes of financing, designing,
2constructing, operating, and maintaining consolidated car
3rental facilities and common use transportation equipment and
4facilities, which are used to transport the customer,
5connecting consolidated car rental facilities with other
6airport facilities.
7 Notwithstanding subsection (f) of this Section, the
8customer facility charge shall be collected by the rental car
9company as a separate charge, and clearly indicated as a
10separate charge on the rental agreement and invoice. Facility
11charges shall be immediately deposited into a trust account for
12the benefit of the airport and remitted at the direction of the
13airport, but not more often than once per month. The charge
14shall be uniformly calculated on a per-contract or per-day
15basis. Facility charges imposed by the airport may not exceed
16the reasonable costs of financing, designing, constructing,
17operating, and maintaining the consolidated car rental
18facilities and common use transportation equipment and
19facilities and may not be used for any other purpose.
20 Notwithstanding any other provision of law, the charges
21collected under this Section are not subject to retailer
22occupation, sales, use, or transaction taxes.
23 (k) When a rental car company states a rental rate in any
24of its rate advertisements, its proprietary computer
25reservation systems, or its in-person quotations intended to
26apply to an airport rental, a company that collects from its

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1customers a customer facility charge for that rental under
2subsection (j) shall do all of the following:
3 (1) Clearly and conspicuously disclose in any radio,
4 television, or other electronic media advertisements the
5 existence and amount of the charge if the advertisement is
6 intended for rentals at an airport imposing the charge or,
7 if the advertisement covers an area with multiple airports
8 with different charges, a range of amounts of customer
9 facility charges if the advertisement is intended for
10 rentals at an airport imposing the charge.
11 (2) Clearly and conspicuously disclose in any print
12 rate advertising the existence and amount of the charge if
13 the advertisement is intended for rentals at an airport
14 imposing the charge or, if the print rate advertisement
15 covers an area with multiple airports with different
16 charges, a range of amounts of customer facility charges if
17 the advertisement is intended for rentals at an airport
18 imposing the charge.
19 (3) Clearly and conspicuously disclose the existence
20 and amount of the charge in any telephonic, in-person, or
21 computer-transmitted quotation from the rental car
22 company's proprietary computer reservation system at the
23 time of making an initial quotation of a rental rate if the
24 quotation is made by a rental car company location at an
25 airport imposing the charge and at the time of making a
26 reservation of a rental car if the reservation is made by a

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1 rental car company location at an airport imposing the
2 charge.
3 (4) Clearly and conspicuously display the charge in any
4 proprietary computer-assisted reservation or transaction
5 directly between the rental car company and the customer,
6 shown or referenced on the same page on the computer screen
7 viewed by the customer as the displayed rental rate and in
8 a print size not smaller than the print size of the rental
9 rate.
10 (5) Clearly and conspicuously disclose and separately
11 identify the existence and amount of the charge on its
12 rental agreement.
13 (6) A rental car company that collects from its
14 customers a customer facility charge under subsection (j)
15 and engages in a practice which does not comply with
16 subsections (f), (j), and (k) commits an unlawful practice
17 within the meaning of the Consumer Fraud and Deceptive
18 Business Practices Act.
19 (l) Notwithstanding subsection (f), any person who rents a
20motor vehicle to another may, in connection with the rental of
21a motor vehicle to (i) a business renter or (ii) a business
22program sponsor under the sponsor's business program, do the
23following:
24 (1) separately quote, by telephone, in person, or by
25 computer transmission, additional charges for the rental;
26 and

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1 (2) separately impose additional charges for the
2 rental.
3 (l-5) A person licensed under Section 5-101, 5-101.2, or
45-102 of this Code shall not participate in a rental-purchase
5agreement vehicle program unless the licensee retains the
6vehicle in his or her name and retains proof of proper vehicle
7registration under Chapter 3 of this Code and liability
8insurance under Section 7-601 of this Code. The licensee shall
9transfer ownership of the vehicle to the renter within 20
10calendar days of the agreed-upon date of completion of the
11rental-purchase agreement. If the licensee fails to transfer
12ownership of the vehicle to the renter within the 20 calendar
13days, then the renter may apply for the vehicle's title to the
14Secretary of State by providing the Secretary the
15rental-purchase agreement, an application for title, the
16required title fee, and any other documentation the Secretary
17deems necessary to determine ownership of the vehicle. For
18purposes of this subsection (l-5), "rental-purchase agreement"
19has the meaning set forth in Section 1 of the Rental-Purchase
20Agreement Act.
21 (m) As used in this Section:
22 (1) "Additional charges" means charges other than: (i)
23 a per period base rental rate; (ii) a mileage charge; (iii)
24 taxes; or (iv) a customer facility charge.
25 (2) "Business program" means:
26 (A) a contract between a person who rents motor

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1 vehicles and a business program sponsor that
2 establishes rental rates at which the person will rent
3 motor vehicles to persons authorized by the sponsor; or
4 (B) a plan, program, or other arrangement
5 established by a person who rents motor vehicles at the
6 request of, or with the consent of, a business program
7 sponsor under which the person offers to rent motor
8 vehicles to persons authorized by the sponsor on terms
9 that are not the same as those generally offered by the
10 rental company to the public.
11 (3) "Business program sponsor" means any legal entity
12 other than a natural person, including a corporation,
13 limited liability company, partnership, government,
14 municipality or agency, or a natural person operating a
15 business as a sole proprietor.
16 (4) "Business renter" means any person renting a motor
17 vehicle for business purposes or, for any business program
18 sponsor, a person who is authorized by the sponsor to enter
19 into a rental contract under the sponsor's business
20 program. "Business renter" does not include a person
21 renting as:
22 (A) a non-employee member of a not-for-profit
23 organization;
24 (B) the purchaser of a voucher or other prepaid
25 rental arrangement from a person, including a tour
26 operator, engaged in the business of reselling those

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1 vouchers or prepaid rental arrangements to the general
2 public;
3 (C) an individual whose car rental is eligible for
4 reimbursement in whole or in part as a result of the
5 person being insured or provided coverage under a
6 policy of insurance issued by an insurance company; or
7 (D) an individual whose car rental is eligible for
8 reimbursement in whole or in part as a result of the
9 person purchasing motor vehicle repair services from a
10 person licensed to perform those services.
11(Source: P.A. 97-595, eff. 8-26-11.)
12 Section 99. Effective date. This Act takes effect January
131, 2018.

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1 INDEX
2 Statutes amended in order of appearance