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


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: (Passed) 2017-08-25 - Public Act . . . . . . . . . 100-0450 [SB1556 Detail]

Download: Illinois-2017-SB1556-Chaptered.html



Public Act 100-0450
SB1556 EnrolledLRB100 08798 AXK 18937 b
AN ACT concerning transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Vehicle Code is amended by changing
Sections 1-134.1, 1-171.01a, 3-107, 3-116, 3-802, 3-905,
5-101, 5-102, 5-107, 5-503, and 6-305 as follows:
(625 ILCS 5/1-134.1) (from Ch. 95 1/2, par. 1-134.1)
Sec. 1-134.1. Junk vehicle. A junk vehicle is a vehicle
which has been or is being disassembled, crushed, compressed,
flattened, destroyed or otherwise reduced to a state in which
it no longer can be returned to an operable state, or has been
branded or assigned as junk or a similar designation by another
state or jurisdiction.
(Source: P.A. 83-1473.)
(625 ILCS 5/1-171.01a)
Sec. 1-171.01a. Remittance agent. For the purposes of
Article IX of Chapter 3, the term "remittance agent" means any
person who holds himself or herself out to the public as being
engaged in or who engages in accepting money for remittance to
the State of Illinois or any of its instrumentalities or
political subdivisions, or to any of their officials, for the
payment of registration plates, vehicle certificates of title,
taxes, or registration fees regardless of when the money is
accepted from the public or remitted to the State, whether or
not the person renders any other service in connection with the
making of any such remittance or is engaged in any other
endeavor. The term "remittance agent" also includes any person
who holds himself or herself out to the public as being engaged
in or who engages in accepting money for consulting or advising
the public on matters concerning vehicle certificates of title,
taxes, registration renewals, registration plates, or
applications for title. The term "remittance agent" does not
include any licensed dealer in motor vehicles who accepts money
for remittance to the State of Illinois for the payment of
registration plates, vehicle certificates of title, taxes, or
registration fees as an incident to his or her business as a
motor vehicle dealer.
(Source: P.A. 97-832, eff. 7-20-12.)
(625 ILCS 5/3-107) (from Ch. 95 1/2, par. 3-107)
Sec. 3-107. Contents and effect.
(a) Each certificate of title issued by the Secretary of
State shall contain:
1. the date issued;
2. the name and address of the owner;
3. the names, and addresses, and fax numbers or
electronic addresses of any lienholders, in the order of
priority as shown on the application or, if the application
is based on a certificate of title, as shown on the
certificate;
4. the title number assigned to the vehicle;
5. a description of the vehicle including, so far as
the following data exists: its make, year-model,
identifying number, type of body, whether new or used, as
to house trailers as defined in Section 1-128 of this Code,
and as to manufactured homes as defined in Section 1-144.03
of this Code, the square footage of the vehicle based upon
the outside dimensions excluding the length of the tongue
and hitch, and, if a new vehicle, the date of the first
sale of the vehicle for use;
6. an odometer certification as provided for in this
Code; and
7. any other data the Secretary of State prescribes.
(a-5) In the event the applicant seeks to have the vehicle
titled as a custom vehicle or street rod, that fact must be
stated in the application. The custom vehicle or street rod
must be inspected as required by Section 3-406 of this Code
prior to issuance of the title. Upon successful completion of
the inspection, the vehicle may be titled in the following
manner. The make of the vehicle shall be listed as the make of
the actual vehicle or the make it is designed to resemble
(e.g., Ford or Chevrolet); the model of the vehicle shall be
listed as custom vehicle or street rod; and the year of the
vehicle shall be listed as the year the actual vehicle was
manufactured or the year it is designed to resemble. A vehicle
previously titled as other than a custom vehicle or street rod
may be issued a corrected title reflecting the custom vehicle
or street rod model if it otherwise meets the requirements for
the designation.
(a-10) In the event the applicant seeks to have the vehicle
titled as a glider kit, that fact must be stated in the
application. The glider kit must be inspected under Section
3-406 of this Code prior to issuance of the title. Upon
successful completion of the inspection, the vehicle shall be
titled in the following manner: (1) the make of the vehicle
shall be listed as the make of the chassis or the make it is
designed to resemble; (2) the model of the vehicle shall be
listed as glider kit; and (3) the year of the vehicle shall be
listed as the year presented on the manufacturer's certificate
of origin for the chassis, unless no year is presented, then it
shall be listed as the year the application was received. The
vehicle identification number of the chassis shall be assigned
to the engine, transmission, and rear axle if the engine,
transmission, and rear axle were not previously assigned a
vehicle identification number after an inspection under
Section 3-406.
(b) The certificate of title shall contain forms for
assignment and warranty of title by the owner, and for
assignment and warranty of title by a dealer, and may contain
forms for applications for a certificate of title by a
transferee, the naming of a lienholder and the assignment or
release of the security interest of a lienholder.
(b-5) The Secretary of State shall designate on a
certificate of title a space where the owner of a vehicle may
designate a beneficiary, to whom ownership of the vehicle shall
pass in the event of the owner's death.
(c) A certificate of title issued by the Secretary of State
is prima facie evidence of the facts appearing on it.
(d) A certificate of title for a vehicle is not subject to
garnishment, attachment, execution or other judicial process,
but this subsection does not prevent a lawful levy upon the
vehicle.
(e) Any certificate of title issued by the Secretary of
State is subject to a lien in favor of the State of Illinois
for any fees or taxes required to be paid under this Act and as
have not been paid, as provided for in this Code.
(f) Notwithstanding any other provision of law, a
certificate of title issued by the Secretary of State to a
manufactured home is prima facie evidence of the facts
appearing on it, notwithstanding the fact that such
manufactured home, at any time, shall have become affixed in
any manner to real property.
(Source: P.A. 98-749, eff. 7-16-14; 99-748, eff. 8-5-16.)
(625 ILCS 5/3-116) (from Ch. 95 1/2, par. 3-116)
Sec. 3-116. When Secretary of State to issue a certificate
of title.
(a) The Secretary of State, upon receipt of a properly
assigned certificate of title, with an application for a
certificate of title, the required fee and any other documents
required by law, shall issue a new certificate of title in the
name of the transferee as owner and mail it to the first
lienholder named in it or, if none, to the owner or owner's
designee.
(b) The Secretary of State, upon receipt of an application
for a new certificate of title by a transferee other than by
voluntary transfer, with proof of the transfer, the required
fee and any other documents required by law, shall issue a new
certificate of title in the name of the transferee as owner.
(b-5) The Secretary of State, upon receipt of an
application for a certificate of title and the required fee,
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
under Section 5-101, 5-101.2, or 5-102 of this Code and the
licensed dealer files for bankruptcy, surrenders his or her
license, or is otherwise 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.
(c) Any person, firm or corporation, who shall knowingly
possess, buy, sell, exchange or give away, or offer to buy,
sell, exchange or give away the certificate of title to any
motor vehicle which is a junk or salvage, or who shall fail to
surrender the certificate of title to the Secretary of State as
required under the provisions of this Section and Section
3-117.2, shall be guilty of Class 3 felony.
(d) The Secretary of State shall file and retain for four
(4) years a record of every surrendered certificate of title or
proof of ownership accepted by the Secretary of State, the file
to be maintained so as to permit the tracing of title of the
vehicle designated therein. Such filing and retention
requirements shall be in addition to and not in substitution
for the recordkeeping requirements set forth in Section 3-106
of this Code, which recordkeeping requirements are not limited
to any period of time.
(e) The Secretary of State, upon receipt of an application
for corrected certificate of title, with the original title,
the required fee and any other required documents, shall issue
a corrected certificate of title in the name of the owner and
mail it to the first lienholder named in it or, if none, to the
owner or owner's designee.
(f) The Secretary of State, upon receipt of a certified
copy of a court order awarding ownership to an applicant along
with an application for a certificate of title and the required
fee, shall issue a certificate of title to the applicant.
(Source: P.A. 98-749, eff. 7-16-14.)
(625 ILCS 5/3-802) (from Ch. 95 1/2, par. 3-802)
Sec. 3-802. Reclassifications and upgrades.
(a) Definitions. For the purposes of this Section, the
following words shall have the meanings ascribed to them as
follows:
"Reclassification" means changing the registration of
a vehicle from one plate category to another.
"Upgrade" means increasing the registered weight of a
vehicle within the same plate category.
(b) When reclassing the registration of a vehicle from one
plate category to another, the owner shall receive credit for
the unused portion of the present plate and be charged the
current portion fees for the new plate. In addition, the
appropriate replacement plate and replacement sticker fees
shall be assessed.
(b-5) Beginning with the 2019 2018 registration year, any
individual who has a registration issued under either Section
3-405 or 3-405.1 that qualifies for a special license plate
under Sections 3-609, 3-609.1, 3-620, 3-621, 3-622, 3-623,
3-624, 3-625, 3-626, 3-628, 3-638, 3-642, 3-645, 3-647, 3-650,
3-651, 3-664, 3-666, 3-667, 3-668, 3-669, 3-676, 3-677, 3-680,
3-681, 3-683, 3-686, 3-688, or 3-693, 3-698, or 3-699.12 may
reclass his or her registration upon acquiring a special
license plate listed in this subsection (b-5) without a
replacement plate fee or registration sticker cost.
(c) When upgrading the weight of a registration within the
same plate category, the owner shall pay the difference in
current period fees between the two plates. In addition, the
appropriate replacement plate and replacement sticker fees
shall be assessed. In the event new plates are not required,
the corrected registration card fee shall be assessed.
(d) In the event the owner of the vehicle desires to change
the registered weight and change the plate category, the owner
shall receive credit for the unused portion of the registration
fee of the current plate and pay the current portion of the
registration fee for the new plate, and in addition, pay the
appropriate replacement plate and replacement sticker fees.
(e) Reclassing from one plate category to another plate
category can be done only once within any registration period.
(f) No refunds shall be made in any of the circumstances
found in subsection (b), subsection (c), or subsection (d);
however, when reclassing from a flat weight plate to an
apportioned plate, a refund may be issued if the credit amounts
to an overpayment.
(g) In the event the registration of a vehicle registered
under the mileage tax option is revoked, the owner shall be
required to pay the annual registration fee in the new plate
category and shall not receive any credit for the mileage plate
fees.
(h) Certain special interest plates may be displayed on
first division vehicles, second division vehicles weighing
8,000 pounds or less, and recreational vehicles. Those plates
can be transferred within those vehicle groups.
(i) Plates displayed on second division vehicles weighing
8,000 pounds or less and passenger vehicle plates may be
reclassed from one division to the other.
(j) Other than in subsection (i), reclassing from one
division to the other division is prohibited. In addition, a
reclass from a motor vehicle to a trailer or a trailer to a
motor vehicle is prohibited.
(Source: P.A. 99-809, eff. 1-1-17.)
(625 ILCS 5/3-905) (from Ch. 95 1/2, par. 3-905)
Sec. 3-905. Bond; fee; duration of license. Such applicant
shall, with his application, deposit with the Secretary of
State a bond as hereinafter provided, for each location at
which the applicant intends to act as a remittance agent. The
application shall be accompanied by the payment of a license
fee in the sum of $50.00 (or $25.00 if such application is
filed after July 1) for each location at which he proposes to
act as a remittance agent. If the applicant shall have complied
with all of the requirements of this Section and the Secretary
of State shall find after investigation that the applicant is
financially sound and of good business integrity, he shall
issue the required license. Such license shall terminate on
December 31 of the year for which it is issued, but upon
application prior to November 15 of any year for which a
license is in effect may be renewed for the next succeeding
calendar year. Such application shall be accompanied by the
payment of an annual license fee of $50.00 for each location at
which the applicant proposes to act as a remittance agent and
the posting of the bond herein provided, for each such
location.
The bond required by this Section shall be for the term of
the license, or renewal thereof, for which application is made,
and 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, to be approved by the Secretary of
State. It shall be conditioned upon the proper transmittal of
all remittances by the applicant as a remittance agent and the
performance of all undertakings in connection therewith. It
shall be in the minimum sum of $20,000 $10,000, or in an amount
equal to the aggregate sum of money transmitted to the State by
the applicant during the highest 15 day period in the fiscal
year immediately preceding the one for which application is
made (rounded to the nearest $1,000), whichever is the greater.
However, for the purpose of determining the bond requirements
hereunder, remittances made by applicants in the form of money
orders, checks, or electronic payments which are made payable
directly to the Secretary of State or the Illinois Department
of Revenue by the remitter, shall not be considered in the
aggregate. The bond requirement of this Section shall not apply
to banks, savings and loan associations, and credit unions
chartered by the State of Illinois or the United States;
provided that the banks, savings and loan associations, and
credit unions provide to the Secretary of State an affidavit
stating that the bank, savings and loan association, or credit
union is sufficiently bonded to meet the requirements as
required above. Such affidavit shall be signed by an officer of
the bank, savings and loan association, or credit union and
shall be notarized.
(Source: P.A. 99-324, eff. 1-1-16.)
(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.
10. A bond or certificate of deposit in the amount of
$50,000 $20,000 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 copy 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
copy 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. 98-450, eff. 1-1-14; 99-78, eff. 7-20-15.)
(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 Act.
8. A bond or Certificate of Deposit in the amount of
$50,000 $20,000 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 copy 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
copy 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. 98-450, eff. 1-1-14; 99-78, eff. 7-20-15.)
"(625 ILCS 5/5-107) (from Ch. 95 1/2, par. 5-107)
Sec. 5-107. Bond exemption. The following persons shall be
exempt from the bond required in Sections 5-101 and 5-102: (1)
Any person who has been continuously licensed under Section
5-101 or 5-102 since calendar year 1983; (2) any licensee who
as determined by the Secretary of State, has faithfully and
continuously complied with conditions of the bond requirement
for a period of 60 36 consecutive months after the effective
date of this amendatory Act of the 100th General Assembly.
This exemption shall continue for each licensee until such
time as he may be determined by the Secretary of State to be
delinquent or deficient in the transmittal of title and
registration fees or taxes.
This amendatory Act of 1983 shall be applicable to the 1984
registration year and thereafter.
A person whose license is cancelled due to the voluntary
surrender of such license, who applies for a new license for
the same license year or one license year after the license
year of the cancelled license, will remain exempt under
paragraph (1) above if the only break in the continuous
licensure is caused by the cancellation due to the voluntary
surrender of the license.
(Source: P.A. 88-158; 88-520.)
(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, 5-201 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, 5-201 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, cancelled or denied by the Secretary of
State under Section 5-501, continues to operate business after
the effective date of such revocation, 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. 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, cancelled or denied, that person shall
be fined $500 for each day he conducted business thereafter.
(Source: P.A. 86-444.)
(625 ILCS 5/6-305) (from Ch. 95 1/2, par. 6-305)
Sec. 6-305. Renting motor vehicle to another.
(a) No person shall rent a motor vehicle to any other
person unless the latter person, or a driver designated by a
nondriver with disabilities and meeting any minimum age and
driver's record requirements that are uniformly applied by the
person renting a motor vehicle, is then duly licensed hereunder
or, in the case of a nonresident, then duly licensed under the
laws of the State or country of his residence unless the State
or country of his residence does not require that a driver be
licensed.
(b) No person shall rent a motor vehicle to another until
he has inspected the drivers license of the person to whom the
vehicle is to be rented, or by whom it is to be driven, and
compared and verified the signature thereon with the signature
of such person written in his presence unless, in the case of a
nonresident, the State or country wherein the nonresident
resides does not require that a driver be licensed.
(c) No person shall rent a motorcycle to another unless the
latter person is then duly licensed hereunder as a motorcycle
operator, and in the case of a nonresident, then duly licensed
under the laws of the State or country of his residence, unless
the State or country of his residence does not require that a
driver be licensed.
(c-1) A rental car company that rents a motor vehicle shall
ensure that the renter is provided with an emergency telephone
number to personnel capable of fielding roadside assistance and
other customer service inquiries, including the ability to
provide the caller with the telephone number of the location
from which the vehicle was rented, if requested by the caller.
If an owner's manual is not available in the vehicle at the
time of the rental, an owner's manual for that vehicle or a
similar model shall be accessible by the personnel answering
the emergency telephone number for assistance with inquiries
about the operation of the vehicle.
(d) (Blank).
(e) (Blank).
(f) Subject to subsection (l), any person who rents a motor
vehicle to another shall only advertise, quote, and charge a
rental rate that includes the entire amount except taxes, a
mileage charge, and airport concession charge, if any, which a
renter must pay to hire or lease the vehicle for the period of
time to which the rental rate applies. The person must provide,
on the request of the renter, based on the available
information, an estimated total of the daily rental rate,
including all applicable taxes, fees, and other charges, or an
estimated total rental charge, based on the return date of the
vehicle noted on the rental agreement. Further, if the rental
agreement does not already provide an estimated total rental
charge, the following statement must be included in the rental
agreement:
"NOTICE: UNDER ILLINOIS LAW, YOU MAY REQUEST, BASED ON
AVAILABLE INFORMATION, AN ESTIMATED TOTAL DAILY RENTAL
RATE, INCLUDING TAXES, FEES, AND OTHER CHARGES, OR AN
ESTIMATED TOTAL RENTAL CHARGE, BASED ON THE VEHICLE RETURN
DATE NOTED ON THIS AGREEMENT."
Such person shall not charge in addition to the rental
rate, taxes, mileage charge, and airport concession charge, if
any, any fee which must be paid by the renter as a condition of
hiring or leasing the vehicle, such as, but not limited to,
required fuel or airport surcharges, nor any fee for
transporting the renter to the location where the rented
vehicle will be delivered to the renter. In addition to the
rental rate, taxes, mileage charge, and airport concession
charge, if any, such person may charge for an item or service
provided in connection with a particular rental transaction if
the renter can avoid incurring the charge by choosing not to
obtain or utilize the optional item or service. Items and
services for which such person may impose an additional charge
include, but are not limited to, optional insurance and
accessories requested by the renter, service charges incident
to the renter's optional return of the vehicle to a location
other than the location where the vehicle was hired or leased,
and charges for refueling the vehicle at the conclusion of the
rental transaction in the event the renter did not return the
vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. "Airport concession charge" means a
charge or fee imposed and collected from a renter to reimburse
the motor vehicle rental company for the concession fee it is
required to pay to a local government corporate authority or
airport authority to rent motor vehicles at the airport
facility. The airport concession charge is in addition to any
customer facility charge or any other charge.
(g) Every person renting a motor vehicle to another shall
keep a record of the registration number of the motor vehicle
so rented, the name and address of the person to whom the
vehicle is rented, the number of the license, if any, of said
latter person, and the date and place when and where the
license, if any, was issued. Such record shall be open to
inspection by any police officer or designated agent of the
Secretary of State.
(h) A person licensed as a new car dealer under Section
5-101 of this Code shall not be subject to the provisions of
this Section regarding the rental of private passenger motor
vehicles when providing, free of charge, temporary substitute
vehicles for customers to operate during a period when a
customer's vehicle, which is either leased or owned by that
customer, is being repaired, serviced, replaced or otherwise
made unavailable to the customer in accordance with an
agreement with the licensed new car dealer or vehicle
manufacturer, so long as the customer orally or in writing is
made aware that the temporary substitute vehicle will be
covered by his or her insurance policy and the customer shall
only be liable to the extent of any amount deductible from such
insurance coverage in accordance with the terms of the policy.
(i) This Section, except the requirements of subsection
(g), also applies to rental agreements of 30 continuous days or
less involving a motor vehicle that was delivered by an out of
State person or business to a renter in this State.
(j) A public airport may, if approved by its local
government corporate authorities or its airport authority,
impose a customer facility charge upon customers of rental car
companies for the purposes of financing, designing,
constructing, operating, and maintaining consolidated car
rental facilities and common use transportation equipment and
facilities, which are used to transport the customer,
connecting consolidated car rental facilities with other
airport facilities.
Notwithstanding subsection (f) of this Section, the
customer facility charge shall be collected by the rental car
company as a separate charge, and clearly indicated as a
separate charge on the rental agreement and invoice. Facility
charges shall be immediately deposited into a trust account for
the benefit of the airport and remitted at the direction of the
airport, but not more often than once per month. The charge
shall be uniformly calculated on a per-contract or per-day
basis. Facility charges imposed by the airport may not exceed
the reasonable costs of financing, designing, constructing,
operating, and maintaining the consolidated car rental
facilities and common use transportation equipment and
facilities and may not be used for any other purpose.
Notwithstanding any other provision of law, the charges
collected under this Section are not subject to retailer
occupation, sales, use, or transaction taxes.
(k) When a rental car company states a rental rate in any
of its rate advertisements, its proprietary computer
reservation systems, or its in-person quotations intended to
apply to an airport rental, a company that collects from its
customers a customer facility charge for that rental under
subsection (j) shall do all of the following:
(1) Clearly and conspicuously disclose in any radio,
television, or other electronic media advertisements the
existence and amount of the charge if the advertisement is
intended for rentals at an airport imposing the charge or,
if the advertisement covers an area with multiple airports
with different charges, a range of amounts of customer
facility charges if the advertisement is intended for
rentals at an airport imposing the charge.
(2) Clearly and conspicuously disclose in any print
rate advertising the existence and amount of the charge if
the advertisement is intended for rentals at an airport
imposing the charge or, if the print rate advertisement
covers an area with multiple airports with different
charges, a range of amounts of customer facility charges if
the advertisement is intended for rentals at an airport
imposing the charge.
(3) Clearly and conspicuously disclose the existence
and amount of the charge in any telephonic, in-person, or
computer-transmitted quotation from the rental car
company's proprietary computer reservation system at the
time of making an initial quotation of a rental rate if the
quotation is made by a rental car company location at an
airport imposing the charge and at the time of making a
reservation of a rental car if the reservation is made by a
rental car company location at an airport imposing the
charge.
(4) Clearly and conspicuously display the charge in any
proprietary computer-assisted reservation or transaction
directly between the rental car company and the customer,
shown or referenced on the same page on the computer screen
viewed by the customer as the displayed rental rate and in
a print size not smaller than the print size of the rental
rate.
(5) Clearly and conspicuously disclose and separately
identify the existence and amount of the charge on its
rental agreement.
(6) A rental car company that collects from its
customers a customer facility charge under subsection (j)
and engages in a practice which does not comply with
subsections (f), (j), and (k) commits an unlawful practice
within the meaning of the Consumer Fraud and Deceptive
Business Practices Act.
(l) Notwithstanding subsection (f), any person who rents a
motor vehicle to another may, in connection with the rental of
a motor vehicle to (i) a business renter or (ii) a business
program sponsor under the sponsor's business program, do the
following:
(1) separately quote, by telephone, in person, or by
computer transmission, additional charges for the rental;
and
(2) separately impose additional charges for the
rental.
(l-5) A person licensed under Section 5-101, 5-101.2, or
5-102 of this Code shall not participate in a rental-purchase
agreement vehicle program unless the licensee retains the
vehicle in his or her name and retains proof of proper vehicle
registration under Chapter 3 of this Code and liability
insurance under Section 7-601 of this Code. The licensee shall
transfer ownership of the vehicle to the renter within 20
calendar days of the agreed-upon date of completion of the
rental-purchase agreement. If the licensee fails to transfer
ownership of the vehicle to the renter within the 20 calendar
days, then the renter may apply for the vehicle's title to the
Secretary of State by providing the Secretary the
rental-purchase agreement, an application for title, the
required title fee, and any other documentation the Secretary
deems necessary to determine ownership of the vehicle. For
purposes of this subsection (l-5), "rental-purchase agreement"
has the meaning set forth in Section 1 of the Rental-Purchase
Agreement Act.
(m) As used in this Section:
(1) "Additional charges" means charges other than: (i)
a per period base rental rate; (ii) a mileage charge; (iii)
taxes; or (iv) a customer facility charge.
(2) "Business program" means:
(A) a contract between a person who rents motor
vehicles and a business program sponsor that
establishes rental rates at which the person will rent
motor vehicles to persons authorized by the sponsor; or
(B) a plan, program, or other arrangement
established by a person who rents motor vehicles at the
request of, or with the consent of, a business program
sponsor under which the person offers to rent motor
vehicles to persons authorized by the sponsor on terms
that are not the same as those generally offered by the
rental company to the public.
(3) "Business program sponsor" means any legal entity
other than a natural person, including a corporation,
limited liability company, partnership, government,
municipality or agency, or a natural person operating a
business as a sole proprietor.
(4) "Business renter" means any person renting a motor
vehicle for business purposes or, for any business program
sponsor, a person who is authorized by the sponsor to enter
into a rental contract under the sponsor's business
program. "Business renter" does not include a person
renting as:
(A) a non-employee member of a not-for-profit
organization;
(B) the purchaser of a voucher or other prepaid
rental arrangement from a person, including a tour
operator, engaged in the business of reselling those
vouchers or prepaid rental arrangements to the general
public;
(C) an individual whose car rental is eligible for
reimbursement in whole or in part as a result of the
person being insured or provided coverage under a
policy of insurance issued by an insurance company; or
(D) an individual whose car rental is eligible for
reimbursement in whole or in part as a result of the
person purchasing motor vehicle repair services from a
person licensed to perform those services.
(Source: P.A. 97-595, eff. 8-26-11.)
Section 99. Effective date. This Act takes effect January
1, 2018.
INDEX
Statutes amended in order of appearance