Bill Text: IL SB1851 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Vehicle Code. Defines "uniform invoice" as a form created by the Secretary of State for the purpose of transporting vehicles and essential parts that does not convey or transfer ownership rights of a vehicle from one entity to another. Provides that the Secretary may use any commercially available title history service to determine the proper title designation of a motor vehicle before the issuance of a certificate of title. Provides that a licensed seller who sells, transfers, or wholesales a vehicle out of State shall mail the certificate of title to the physical business address in the requisite jurisdiction in lieu of transferring title at the time of sale. Provides that a purchaser of a vehicle who obtains a security interest in a vehicle in good faith for value takes free of any undisclosed liens unless the purchaser has notice of such liens. Provides that the Secretary may remove a franchise affiliate's lien. Provides that a registration permit for 90 (instead of 30) days may be provided for a fee of $13. Provides that electric motorcycles are subject to additional fees for electric vehicles. Provides that vanity and personalized plates may be issued to owners of electric vehicles. Provides that certain military plates may be (i) transferred, upon death of the owner, to the surviving spouse; and (ii) reclassified without a replacement fee. Provides that "established place of business" only includes a place with an outdoor lot capable of parking at least 5 vehicles or an indoor lot with space for a minimum of one vehicle to be parked in its indoor showroom. Provides that applicants for certain licenses shall disclose the full name, address, and contact information of each of the applicant's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-02-26 - Referred to Assignments [SB1851 Detail]

Download: Illinois-2021-SB1851-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB1851 Introduced 2/26/2021, by Sen. Mattie Hunter SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Vehicle Code. Defines "uniform invoice" as a form created by the Secretary of State for the purpose of transporting vehicles and essential parts that does not convey or transfer ownership rights of a vehicle from one entity to another. Provides that the Secretary may use any commercially available title history service to determine the proper title designation of a motor vehicle before the issuance of a certificate of title. Provides that a licensed seller who sells, transfers, or wholesales a vehicle out of State shall mail the certificate of title to the physical business address in the requisite jurisdiction in lieu of transferring title at the time of sale. Provides that a purchaser of a vehicle who obtains a security interest in a vehicle in good faith for value takes free of any undisclosed liens unless the purchaser has notice of such liens. Provides that the Secretary may remove a franchise affiliate's lien. Provides that a registration permit for 90 (instead of 30) days may be provided for a fee of $13. Provides that electric motorcycles are subject for additional fees for electric vehicles. Provides that vanity and personalized plates may be issued to owners of electric vehicles. Provides that certain military plates may be (i) transferred, upon death of the owner, to the surviving spouse; and (ii) reclassified without a replacement fee. Provides that "established place of business" only includes a place with an outdoor lot capable of parking at least 5 vehicles or an indoor lot with space for a minimum of one vehicle to be parked in its indoor showroom. Provides that applicants for certain licenses shall disclose the full name, address, and contact information of each of the applicant's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.
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A BILL FOR
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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 3-104, 3-104.5, 3-113, 3-202, 3-209, 3-403,
3-405.1, 3-506, 3-802, 3-805, 3-806.1, 3-806.5, 5-100, 5-101,
5-101.1, 5-101.2, 5-102, 5-102.8, and 5-301 and by adding
Section 1-213.8 as follows:
(625 ILCS 5/1-213.8 new)
Sec. 1-213.8. Uniform Invoice. A form created by the
Secretary for the purpose of transporting vehicles and
essential parts that does not convey or transfer ownership
rights of a vehicle from one entity to another.
(625 ILCS 5/3-104) (from Ch. 95 1/2, par. 3-104)
Sec. 3-104. Application for certificate of title.
(a) The application for a certificate of title for a
vehicle in this State must be made by the owner to the
Secretary of State on the form prescribed and must contain:
1. The name, Illinois residence, mail address, and, if
available, email address of the owner;
2. A description of the vehicle including, so far as
the following data exists: Its make, year-model,

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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 based upon the
outside dimensions excluding the length of the tongue and
hitch, and, as to vehicles of the second division, whether
for-hire, not-for-hire, or both for-hire and not-for-hire;
3. The date of purchase by applicant and, if
applicable, the name and address of the person from whom
the vehicle was acquired and the names and addresses of
any lienholders in the order of their priority and
signatures of owners;
4. The current odometer reading at the time of
transfer and that the stated odometer reading is one of
the following: actual mileage, not the actual mileage or
mileage is in excess of its mechanical limits; and
5. Any further information the Secretary of State
reasonably requires to identify the vehicle and to enable
him to determine whether the owner is entitled to a
certificate of title and the existence or nonexistence of
security interests in the vehicle.
(a-5) The Secretary of State shall designate on the
prescribed application form 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.
(b) If the application refers to a vehicle purchased from

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a dealer, it must also be signed by the dealer as well as the
owner, and the dealer must promptly mail or deliver the
application and required documents to the Secretary of State.
(c) If the application refers to a vehicle last previously
registered in another State or country, the application must
contain or be accompanied by:
1. Any certified document of ownership so recognized
and issued by the other State or country and acceptable to
the Secretary of State, and
2. Any other information and documents the Secretary
of State reasonably requires to establish the ownership of
the vehicle and the existence or nonexistence of security
interests in it.
(d) If the application refers to a new vehicle it must be
accompanied by the Manufacturer's Statement of Origin, or
other documents as required and acceptable by the Secretary of
State, with such assignments as may be necessary to show title
in the applicant.
(e) If an application refers to a vehicle rebuilt from a
vehicle previously salvaged, that application shall comply
with the provisions set forth in Sections 3-302 through 3-304
of this Code.
(f) An application for a certificate of title for any
vehicle, whether purchased in Illinois or outside Illinois,
and even if previously registered in another State, must be
accompanied by either an exemption determination from the

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Department of Revenue showing that no tax imposed pursuant to
the Use Tax Act or the vehicle use tax imposed by Section
3-1001 of the Illinois Vehicle Code is owed by anyone with
respect to that vehicle, or a receipt from the Department of
Revenue showing that any tax so imposed has been paid. An
application for a certificate of title for any vehicle
purchased outside Illinois, even if previously registered in
another state, must be accompanied by either an exemption
determination from the Department of Revenue showing that no
tax imposed pursuant to the Municipal Use Tax Act or the County
Use Tax Act is owed by anyone with respect to that vehicle, or
a receipt from the Department of Revenue showing that any tax
so imposed has been paid. In the absence of such a receipt for
payment or determination of exemption from the Department, no
certificate of title shall be issued to the applicant.
If the proof of payment of the tax or of nonliability
therefor is, after the issuance of the certificate of title
and display certificate of title, found to be invalid, the
Secretary of State shall revoke the certificate and require
that the certificate of title and, when applicable, the
display certificate of title be returned to him.
(g) If the application refers to a vehicle not
manufactured in accordance with federal safety and emission
standards, the application must be accompanied by all
documents required by federal governmental agencies to meet
their standards before a vehicle is allowed to be issued title

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and registration.
(h) If the application refers to a vehicle sold at public
sale by a sheriff, it must be accompanied by the required fee
and a bill of sale issued and signed by a sheriff. The bill of
sale must identify the new owner's name and address, the year
model, make and vehicle identification number of the vehicle,
court order document number authorizing such sale, if
applicable, and the name and address of any lienholders in
order of priority, if applicable.
(i) If the application refers to a vehicle for which a
court of law determined the ownership, it must be accompanied
with a certified copy of such court order and the required fee.
The court order must indicate the new owner's name and
address, the complete description of the vehicle, if known,
the name and address of the lienholder, if any, and must be
signed and dated by the judge issuing such order.
(j) If the application refers to a vehicle sold at public
auction pursuant to the Labor and Storage Lien (Small Amount)
Act, it must be accompanied by an affidavit or affirmation
furnished by the Secretary of State along with the documents
described in the affidavit or affirmation and the required
fee.
(k) The Secretary may provide an expedited process for the
issuance of vehicle titles. Expedited title applications must
be delivered to the Secretary of State's Vehicle Services
Department in Springfield by express mail service or hand

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delivery. Applications must be complete, including necessary
forms, fees, and taxes. Applications received before noon on a
business day will be processed and shipped that same day.
Applications received after noon on a business day will be
processed and shipped the next business day. The Secretary
shall charge an additional fee of $30 for this service, and
that fee shall cover the cost of return shipping via an express
mail service. All fees collected by the Secretary of State for
expedited services shall be deposited into the Motor Vehicle
License Plate Fund. In the event the Vehicle Services
Department determines that the volume of expedited title
requests received on a given day exceeds the ability of the
Vehicle Services Department to process those requests in an
expedited manner, the Vehicle Services Department may decline
to provide expedited services, and the additional fee for the
expedited service shall be refunded to the applicant.
(l) If the application refers to a homemade trailer, (i)
it must be accompanied by the appropriate documentation
regarding the source of materials used in the construction of
the trailer, as required by the Secretary of State, (ii) the
trailer must be inspected by a Secretary of State employee
prior to the issuance of the title, and (iii) upon approval of
the Secretary of State, the trailer must have a vehicle
identification number, as provided by the Secretary of State,
stamped or riveted to the frame.
(m) The holder of a Manufacturer's Statement of Origin to

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a manufactured home may deliver it to any person to facilitate
conveying or encumbering the manufactured home. Any person
receiving any such Manufacturer's Statement of Origin so
delivered holds it in trust for the person delivering it.
(n) Within 45 days after the completion of the first
retail sale of a manufactured home, the Manufacturer's
Statement of Origin to that manufactured home must be
surrendered to the Secretary of State either in conjunction
with an application for a certificate of title for that
manufactured home or in accordance with Section 3-116.1.
(o) Each application for certificate of title for a motor
vehicle shall be verified by the National Motor Vehicle Title
Information System (NMVTIS) for a vehicle history report prior
to the Secretary issuing a certificate of title.
(p) The Secretary, at the Secretary's discretion, may use
any commercially available title history service to determine
the proper title designation of a motor vehicle before the
issuance of a certificate of title.
(Source: P.A. 99-414, eff. 8-20-15; 100-145, eff. 1-1-18.)
(625 ILCS 5/3-104.5)
Sec. 3-104.5. Application NMVTIS warnings or errors.
(a) Each application for a certificate of title or a
salvage certificate for a motor vehicle that is verified by
the National Motor Vehicle Title Information System (NMVTIS)
that is returned with a warning or error shall be reviewed by

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the Secretary of State, or his or her designees, as to whether
the warning or error warrants a change to the type of title or
brand that is issued to a motor vehicle. If the Secretary needs
supplemental information to verify or corroborate the
information received from a NMVTIS report, then the Secretary
may use any available commercial title history services or
other Secretary of State resources to assist in determining
the vehicle's proper designation.
(b) Any motor vehicle application for a certificate of
title or a salvage certificate that another state has
previously issued a title or brand indicating that the status
of the motor vehicle is equivalent to a junk vehicle, as
defined in Section 1-134.1 of this Code, shall receive a title
with a "prior out of state junk" brand if that history item was
issued 120 months or more before the date of the submission of
the current application for title.
(c) Any motor vehicle application for a certificate of
title or a salvage certificate that is returned with a NMVTIS
warning or error indicating that another state has previously
issued a title or brand indicating the status of the motor
vehicle is equivalent to a junk vehicle, as defined in Section
1-134.1 of this Code, shall be issued a junk certificate that
reflects the motor vehicle's structural history, if the
previously issued title or brand from another state was issued
less than 120 months before the date of the submission of the
current application for title.

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(d) Any motor vehicle application for a certificate of
title or a salvage certificate that is returned with a NMVTIS
warning or error indicating a brand or label from another
jurisdiction, that does not have a similar or comparable brand
or label in this State, shall include a notation or brand on
the certificate of title stating "previously branded".
(e) Any motor vehicle that is subject to the federal Truth
in Mileage Act, and is returned with a NMVTIS warning or error
indicating the stated mileage of the vehicle on the
application for certificate of title is 1,500 or fewer miles
less than a previously recorded mileage for the vehicle, shall
be deemed as having an acceptable margin of error and the
higher of the 2 figures shall be indicated on the new
certificate of title, if the previous mileage was recorded
within 90 days of the date of the current application for title
and if there are no indications of fraud or malfeasance, or of
altering or tampering with the odometer.
(f) Any applicant for a certificate of title or a salvage
certificate who receives an alternative salvage or junk
certificate, or who receives a certificate of title with a
brand or label indicating the vehicle was previously rebuilt
prior out of state junk, previously branded, or flood, may
contest the Secretary's designations by requesting an
administrative hearing under Section 2-116 of this Code.
(g) The Secretary may adopt any rules necessary to
implement this Section.

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(h) The Secretary, in the Secretary's discretion, may use
any commercially available title history service to determine
the proper title designation of a motor vehicle before the
issuance of a certificate of title.
(Source: P.A. 99-414, eff. 8-20-15.)
(625 ILCS 5/3-113) (from Ch. 95 1/2, par. 3-113)
Sec. 3-113. Transfer to or from dealer; records.
(a) After a dealer buys a vehicle and holds it for resale,
the dealer must procure the certificate of title from the
owner or the lienholder. The dealer may hold the certificate
until he or she transfers the vehicle to another person. Upon
transferring the vehicle to another person, the dealer shall
promptly and within 20 days execute the assignment and
warranty of title by a dealer, showing the names and addresses
of the transferee and of any lienholder holding a security
interest created or reserved at the time of the resale, in the
spaces provided therefor on the certificate or as the
Secretary of State prescribes, and mail or deliver the
certificate to the Secretary of State with the transferee's
application for a new certificate, except as provided in
Section 3-117.2. A dealer has complied with this Section if
the date of the mailing of the certificate, as indicated by the
postmark, is within 20 days of the date on which the vehicle
was transferred to another person.
(b) The Secretary of State may decline to process any

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application for a transfer of an interest in a vehicle if any
fees or taxes due under this Code from the transferor or the
transferee have not been paid upon reasonable notice and
demand.
(c) Any person who violates this Section shall be guilty
of a petty offense.
(d) Beginning January 1, 2014, the Secretary of State is
authorized to impose a delinquent vehicle dealer transfer fee
of $20 if the certificate of title is received by the Secretary
from the dealer 30 days but less than 60 days after the date of
sale. If the certificate of title is received by the Secretary
from the dealer 60 days but less than 90 days after the date of
sale, the delinquent dealer transfer fee shall be $35. If the
certificate of title is received by the Secretary from the
dealer 90 days but less than 120 days after the date of sale,
the delinquent vehicle dealer transfer fee shall be $65. If
the certificate of title is received by the Secretary from the
dealer 120 days or more after the date of the sale, the
delinquent vehicle dealer transfer fee shall be $100. All
monies collected under this subsection shall be deposited into
the CDLIS/AAMVAnet/NMVTIS Trust Fund.
(e) Any licensee under Chapter 5 who sells, transfers, or
wholesales a vehicle out of State shall mail the certificate
of title to the physical business address in the requisite
jurisdiction in lieu of transferring title at the time of
sale.

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(Source: P.A. 98-177, eff. 1-1-14.)
(625 ILCS 5/3-202) (from Ch. 95 1/2, par. 3-202)
Sec. 3-202. Perfection of security interest.
(a) Unless excepted by Section 3-201, a security interest
in a vehicle of a type for which a certificate of title is
required is not valid against subsequent transferees or
lienholders of the vehicle unless perfected as provided in
this Act. A purchase money security interest in a manufactured
home is perfected against the rights of judicial lien
creditors and execution creditors on and after the date such
purchase money security interest attaches.
(b) A security interest is perfected by the delivery to
the Secretary of State of the existing certificate of title,
if any, an application for a certificate of title containing
the name and address of the lienholder and the required fee.
The security interest is perfected as of the time of its
creation if the delivery to the Secretary of State is
completed within 30 days after the creation of the security
interest or receipt by the new lienholder of the existing
certificate of title from a prior lienholder or licensed
dealer, otherwise as of the time of the delivery.
(c) If a vehicle is subject to a security interest when
brought into this State, the validity of the security interest
is determined by the law of the jurisdiction where the vehicle
was when the security interest attached, subject to the

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following:
1. If the parties understood at the time the security
interest attached that the vehicle would be kept in this
State and it was brought into this State within 30 days
thereafter for purposes other than transportation through
this State, the validity of the security interest in this
State is determined by the law of this State.
2. If the security interest was perfected under the
law of the jurisdiction where the vehicle was when the
security interest attached, the following rules apply:
(A) If the name of the lienholder is shown on an
existing certificate of title issued by that
jurisdiction, his security interest continues
perfected in this State.
(B) If the name of the lienholder is not shown on
an existing certificate of title issued by that
jurisdiction, a security interest may be perfected by
the lienholder delivering to the Secretary of State
the prescribed notice and by payment of the required
fee. Such security interest is perfected as of the
time of delivery of the prescribed notice and payment
of the required fee.
3. If the security interest was not perfected under
the law of the jurisdiction where the vehicle was when the
security interest attached, it may be perfected in this
State; in that case perfection dates from the time of

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perfection in this State.
4. A security interest may be perfected under
paragraph 3 of this subsection either as provided in
subsection (b) or by the lienholder delivering to the
Secretary of State a notice of security interest in the
form the Secretary of State prescribes and the required
fee.
(d) Except as otherwise provided in Sections 3-116.1,
3-116.2, 3-207, and the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act, after a
certificate of title has been issued for a manufactured home
and as long as the manufactured home is subject to any security
interest perfected pursuant to this Section, the Secretary of
State shall not file an affidavit of affixation, nor cancel
the Manufacturer's Statement of Origin, nor revoke the
certificate of title, nor issue a certificate of title under
Section 3-106, and, in any event, the validity and priority of
any security interest perfected pursuant to this Section shall
continue, notwithstanding the provision of any other law.
(e) A purchaser of a vehicle in this State who obtains a
security interest in a vehicle in good faith for value takes
free of any undisclosed liens unless the purchaser has notice
of such liens. Upon the perfection of such a security
interest, the Secretary shall invalidate the undisclosed
lienholder's interest in the vehicle subject to an
investigation by the Secretary of State Department of Police.

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(Source: P.A. 98-749, eff. 7-16-14.)
(625 ILCS 5/3-209) (from Ch. 95 1/2, par. 3-209)
Sec. 3-209. Powers of Secretary of State.
(a) The Secretary of State shall prescribe and provide
suitable forms of applications, certificates of title, notices
of security interests, and all other notices and forms
necessary to carry out the provisions of this chapter.
(b) The Secretary of State may:
1. Make necessary investigations to procure information
required to carry out the provisions of this Act. ;
2. Assign a new identifying number to a vehicle if it has
none, or its identifying number is destroyed or obliterated,
or its motor is changed, and shall either issue a new
certificate of title showing the new identifying number or
make an appropriate endorsement on the original certificate.
3. Remove a franchise affiliate's lien so that the
franchise affiliate may pursue the balance of the lien with
the defunct dealership instead of the constituent. This item
applies if a franchise dealer neglects to pay off a trade-in
vehicle's lien, and that lien is held by the franchise
affiliate. The Secretary shall make this determination
pursuant to an investigation by the Secretary of State
Department of Police.
(Source: P.A. 76-1586.)

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(625 ILCS 5/3-403) (from Ch. 95 1/2, par. 3-403)
Sec. 3-403. Trip and Short-term permits.
(a) The Secretary of State may issue a short-term permit
to operate a nonregistered first or second division vehicle
within the State of Illinois for a period of not more than 7
days. Any second division vehicle operating on such permit may
operate only on empty weight. The fee for the short-term
permit shall be $6 for permits purchased on or before June 30,
2003 and $10 for permits purchased on or after July 1, 2003.
For short-term permits purchased on or after July 1, 2003, $4
of the fee collected for the purchase of each permit shall be
deposited into the General Revenue Fund.
This permit may also be issued to operate an unladen
registered vehicle which is suspended under the Vehicle
Emissions Inspection Law and allow it to be driven on the roads
and highways of the State in order to be repaired or when
traveling travelling to and from an emissions inspection
station.
(b) The Secretary of State may, subject to reciprocal
agreements, arrangements or declarations made or entered into
pursuant to Section 3-402, 3-402.4 or by rule, provide for and
issue registration permits for the use of Illinois highways by
vehicles of the second division on an occasional basis or for a
specific and special short-term use, in compliance with rules
and regulations promulgated by the Secretary of State, and
upon payment of the prescribed fee as follows:

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One-trip permits. A registration permit for one trip, or
one round-trip into and out of Illinois, for a period not to
exceed 72 consecutive hours or 3 calendar days may be
provided, for a fee as prescribed in Section 3-811.
Three-month One-Month permits. A registration permit for
90 30 days may be provided for a fee of $13 for registration
plus 1/10 of the flat weight tax. The minimum fee for such
permit shall be $31.
In-transit permits. A registration permit for one trip may
be provided for vehicles in transit by the driveaway or
towaway method and operated by a transporter in compliance
with the Illinois Motor Carrier of Property Law, for a fee as
prescribed in Section 3-811.
Illinois Temporary Apportionment Authorization Permits. An
apportionment authorization permit for forty-five days for the
immediate operation of a vehicle upon application for and
prior to receiving apportioned credentials or interstate
credentials from the State of Illinois. The fee for such
permit shall be $3.
Illinois Temporary Prorate Authorization Permit. A prorate
authorization permit for forty-five days for the immediate
operation of a vehicle upon application for and prior to
receiving prorate credentials or interstate credentials from
the State of Illinois. The fee for such permit shall be $3.
(c) The Secretary of State shall promulgate by such rule
or regulation, schedules of fees and taxes for such permits

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and in computing the amount or amounts due, may round off such
amount to the nearest full dollar amount.
(d) The Secretary of State shall further prescribe the
form of application and permit and may require such
information and data as necessary and proper, including
confirming the status or identity of the applicant and the
vehicle in question.
(e) Rules or regulations promulgated by the Secretary of
State under this Section shall provide for reasonable and
proper limitations and restrictions governing the application
for and issuance and use of permits, and shall provide for the
number of permits per vehicle or per applicant, so as to
preclude evasion of annual registration requirements as may be
required by this Act.
(f) Any permit under this Section is subject to suspension
or revocation under this Act, and in addition, any such permit
is subject to suspension or revocation should the Secretary of
State determine that the vehicle identified in any permit
should be properly registered in Illinois. In the event any
such permit is suspended or revoked, the permit is then null
and void, may not be re-instated, nor is a refund therefor
available. The vehicle identified in such permit may not
thereafter be operated in Illinois without being properly
registered as provided in this Chapter.
(Source: P.A. 92-680, eff. 7-16-02; 93-32, eff. 7-1-03.)

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(625 ILCS 5/3-405.1) (from Ch. 95 1/2, par. 3-405.1)
Sec. 3-405.1. Application for vanity and personalized
license plates.
(a) Vanity license plates mean any license plates,
assigned to a passenger motor vehicle of the first division,
to a motor vehicle of the second division registered at not
more than 8,000 pounds, to a trailer weighing 8,000 pounds or
less paying the flat weight tax, to a funeral home vehicle, an
electric vehicle, or to a recreational vehicle, which display
a registration number containing 1 to 7 letters and no numbers
or 1, 2, or 3 numbers and no letters as requested by the owner
of the vehicle and license plates issued to retired members of
Congress under Section 3-610.1 or to retired members of the
General Assembly as provided in Section 3-606.1. Personalized
license plates mean any license plates, assigned to a
passenger motor vehicle of the first division, to a motor
vehicle of the second division registered at not more than
8,000 pounds, to a trailer weighing 8,000 pounds or less
paying the flat weight tax, to a funeral home vehicle, an
electric vehicle, or to a recreational vehicle, which display
a registration number containing one of the following
combinations of letters and numbers, as requested by the owner
of the vehicle:
Standard Passenger Plates
First Division Vehicles

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1 letter plus 0-99
2 letters plus 0-99
3 letters plus 0-99
4 letters plus 0-99
5 letters plus 0-99
6 letters plus 0-9
Second Division Vehicles
8,000 pounds or less, Trailers
8,000 pounds or less paying the flat
weight tax, and Recreation Vehicles
0-999 plus 1 letter
0-999 plus 2 letters
0-999 plus 3 letters
0-99 plus 4 letters
0-9 plus 5 letters
(b) For any registration period commencing after December
31, 2003, any person who is the registered owner of a passenger
motor vehicle of the first division, of a motor vehicle of the
second division registered at not more than 8,000 pounds, of a
trailer weighing 8,000 pounds or less paying the flat weight
tax, of a funeral home vehicle, of an electric vehicle, or of a
recreational vehicle registered with the Secretary of State or

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who makes application for an original registration of such a
motor vehicle or renewal registration of such a motor vehicle
may, upon payment of a fee prescribed in Section 3-806.1 or
Section 3-806.5, apply to the Secretary of State for vanity or
personalized license plates.
(c) Except as otherwise provided in this Chapter 3, vanity
and personalized license plates as issued under this Section
shall be the same color and design as other passenger vehicle
license plates or electric vehicle license plates and shall
not in any manner conflict with any other existing passenger,
commercial, trailer, motorcycle, or special license plate
series. However, special registration plates issued under
Sections 3-611 and 3-616 for vehicles operated by or for
persons with disabilities may also be vanity or personalized
license plates.
(d) Vanity and personalized license plates shall be issued
only to the registered owner of the vehicle on which they are
to be displayed, except as provided in Sections 3-611 and
3-616 for special registration plates for vehicles operated by
or for persons with disabilities.
(e) An applicant for the issuance of vanity or
personalized license plates or subsequent renewal thereof
shall file an application in such form and manner and by such
date as the Secretary of State may, in his discretion,
require.
No vanity nor personalized license plates shall be

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approved, manufactured, or distributed that contain any
characters, symbols other than the international accessibility
symbol for vehicles operated by or for persons with
disabilities, foreign words, or letters of punctuation.
(f) Vanity and personalized license plates as issued
pursuant to this Act may be subject to the Staggered
Registration System as prescribed by the Secretary of State.
(g) For purposes of this Section, "funeral home vehicle"
means any motor vehicle of the first division or motor vehicle
of the second division weighing 8,000 pounds or less that is
owned or leased by a funeral home.
(h) As used in this Section, "electric vehicle" means any
vehicle that is required to be registered under Section 3-805.
(Source: P.A. 100-956, eff. 1-1-19.)
(625 ILCS 5/3-506)
Sec. 3-506. Transfer of plates to spouses of military
service members. Upon the death of a military service member
who has been issued a special plate under Section 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, 3-666, 3-667, 3-668, 3-669,
3-676, 3-677, 3-680, 3-681, 3-683, 3-686, 3-688, 3-693, 3-698,
3-699.12, 3-699.15, 3-699.16, or 3-699.17, 3-699.19, or
3-699.20 of this Code, the surviving spouse of that service
member may retain the plate so long as that spouse is a
resident of Illinois and transfers the registration to his or

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her name within 180 days of the death of the service member.
For the purposes of this Section, "service member" means
any individual who is serving or has served in any branch of
the United States Armed Forces, including the National Guard
or other reserve components of the Armed Forces, and has been
issued a special plate listed in this Section.
(Source: P.A. 100-201, eff. 8-18-17; 101-51, eff. 7-12-19.)
(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 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

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under Section 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, 3-693, 3-698, 3-699.12, 3-699.15,
3-699.16, 3-699.17, 3-699.19, or 3-699.20 or 3-699.17 may
reclass his or her registration upon acquiring a special
license plate listed in this subsection (b-5) without a
replacement plate or digital plate fee or registration sticker
or digital registration sticker cost.
(b-10) Beginning with the 2019 registration year, any
individual who has a special license plate issued under
Section 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, 3-693, 3-698, 3-699.12, or 3-699.17 may
reclass his or her special license plate upon acquiring a new
registration under Section 3-405 or 3-405.1 without a
replacement plate or digital plate fee or registration sticker
or digital 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 2 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

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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

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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. 100-246, eff. 1-1-18; 100-450, eff. 1-1-18;
100-863, eff. 8-14-18; 101-51, eff. 7-12-19; 101-395, eff.
8-16-19; revised 9-24-19.)
(625 ILCS 5/3-805) (from Ch. 95 1/2, par. 3-805)
Sec. 3-805. Electric vehicles. The Until January 1, 2020,
the owner of a motor vehicle of the first division, a
motorcycle, or a motor vehicle of the second division weighing
8,000 pounds or less propelled by an electric engine and not
utilizing motor fuel, may register such vehicle for a fee not
to exceed $35 for a 2-year registration period. The Secretary
may, in his discretion, prescribe that electric vehicle
registration plates be issued for an indefinite term, such
term to correspond to the term of registration plates issued
generally, as provided in Section 3-414.1. In no event may the
registration fee for electric vehicles exceed $18 per
registration year. Beginning on January 1, 2020, the
registration fee for these vehicles shall be equal to the fee
set forth in Section 3-806 for motor vehicles of the first
division, other than Autocycles, Motorcycles, Motor Driven
Cycles, and Pedalcycles. In addition to the registration fees,
the Secretary shall assess an additional $100 per year in lieu
of the payment of motor fuel taxes. $1 of the additional fees

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shall be deposited into the Secretary of State Special
Services Fund and the remainder of the additional fees shall
be deposited into the Road Fund. The Secretary, in the
Secretary's discretion, may prescribe that electric vehicle
registration plates be issued for an indefinite term, such
term to correspond to the term of registration plates issued
generally, as provided in Section 3-414.1.
(Source: P.A. 101-32, eff. 6-28-19.)
(625 ILCS 5/3-806.1) (from Ch. 95 1/2, par. 3-806.1)
Sec. 3-806.1. Additional fees for vanity license plates.
In addition to the regular registration fee or electric
vehicle registration fee, an applicant for a vanity license
plate, other than a vanity plate in any military series or a
vanity plate issued under Section 3-664, shall be charged $94
for each set of vanity license plates issued to a vehicle of
the first division or a vehicle of the second division
registered at not more than 8,000 pounds or to a recreational
vehicle and $50 for each set of vanity plates issued to an
autocycle or motorcycle. In addition to the regular renewal
fee or electric vehicle registration renewal fee, an applicant
for a vanity plate, other than a vanity plate in any military
series or a vanity plate issued under Section 3-664, shall be
charged $13 for the renewal of each set of vanity license
plates. There shall be no additional fees for a vanity license
plate in any military series of plates or a vanity plate issued

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under Section 3-664.
(Source: P.A. 98-777, eff. 1-1-15.)
(625 ILCS 5/3-806.5)
Sec. 3-806.5. Additional fees for personalized license
plates. For registration periods commencing after December 31,
2003, in addition to the regular registration fee or electric
vehicle registration fee, an applicant for a personalized
license plate, other than a personalized plate in any military
series or a personalized plate issued under Section 3-664,
shall be charged $47 for each set of personalized license
plates issued to a vehicle of the first division or a vehicle
of the second division registered at not more than 8,000
pounds or to a recreational vehicle and $25 for each set of
personalized plates issued to an autocycle or motorcycle. In
addition to the regular renewal fee or electric vehicle
registration renewal fee, an applicant for a personalized
plate other than a personalized plate in any military series
or a personalized plate issued under Section 3-664, shall be
charged $7 for the renewal of each set of personalized license
plates. There shall be no additional fees charged for a
personalized plate in any military series of plates or a
personalized plate issued under Section 3-664. Of the money
received by the Secretary of State as additional fees for
personalized license plates, 50% shall be deposited into the
Secretary of State Special License Plate Fund and 50% shall be

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deposited into the General Revenue Fund.
(Source: P.A. 98-777, eff. 1-1-15.)
(625 ILCS 5/5-100) (from Ch. 95 1/2, par. 5-100)
Sec. 5-100. Definitions. For the purposes of this Chapter,
the following words shall have the meanings ascribed to them
as follows:
"Additional place of business" means a place owned or
leased and occupied by the dealer in addition to its
established place of business, at which the dealer conducts or
intends to conduct business on a permanent or long term basis.
The term does not include an area where an off site sale or
exhibition is conducted. The Secretary of State shall adopt
guidelines for the administration and enforcement of this
definition by rule.
"Display exhibition" means a temporary display of vehicles
by a dealer licensed under Section 5-101 or 5-102, at a
location at which no vehicles are offered for sale, that is
conducted at a place other than the dealer's established and
additional places of business.
"Established place of business" means the place owned or
leased and occupied by any person duly licensed or required to
be licensed as a dealer for the purpose of engaging in selling,
buying, bartering, displaying, exchanging or dealing in, on
consignment or otherwise, vehicles and their essential parts
and for such other ancillary purposes as may be permitted by

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the Secretary by rule. It shall include an office in which the
dealer's records shall be separate and distinct from any other
business or tenant which may occupy space in the same building
except as provided in Section 5-101.1. This office shall not
be located in a house trailer, residence, tent, temporary
stand, temporary address, room or rooms in a hotel or rooming
house, nor the premises occupied by a single or multiple unit
residence. "Established place of business" only includes a
place with an outdoor lot capable of parking at least 5
vehicles or an indoor lot with space for a minimum of one
vehicle to be parked in its indoor showroom. The established
place of business of a scrap processor shall be the fixed
location where the scrap processor maintains its principal
place of business. The Secretary of State shall, by rule and
regulation, adopt guidelines for the administration and
enforcement of this definition, such as, but not limited to
issues concerning the required hours of operation, describing
where vehicles are displayed and offered for sale, where books
and records are maintained and requirements for the
fulfillment of warranties. A dealer may have an additional
place of business as defined under this Section.
"Motor vehicle financing affiliate" means a business
organization registered to do business in Illinois that,
pursuant to a written contract with either (1) a single new or
used motor vehicle dealer or (2) a single group of new or used
motor vehicle dealers that share a common ownership within the

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group, purchases new or used motor vehicles on behalf of the
dealer or group of dealers and then sells, transfers, or
assigns those motor vehicles to the dealer or group of
dealers. The motor vehicle financing affiliate must be
incorporated or organized solely to purchase new or used
vehicles on behalf of the new or used motor vehicle dealer or
group of dealers with which it has contracted, shall not sell
motor vehicles at retail, shall perform only those business
functions related to the purchasing of motor vehicles and
selling, transferring, or assigning those motor vehicles to
the dealer or group of dealers. The motor vehicle financing
affiliate must be licensed under the provisions of Section
5-101.1 and must not be licensed as a new or used motor vehicle
dealer.
"Off site sale" means the temporary display and sale of
vehicles, for a period of not more than 7 calendar days
(excluding Sundays), by a dealer licensed under Section 5-101
or 5-102 at a place other than the dealer's established and
additional places of business.
"Relevant market area", for a new vehicle dealer licensed
under Section 5-101 and for a used vehicle dealer licensed
under Section 5-102, means the area within 10 miles of the
established or additional place of business of the dealer
located in a county with a population of 300,000 or more, or
within 15 miles if the established place of business is
located in a county with a population of less than 300,000.

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"Trade show exhibition" means a temporary display of
vehicles, by dealers licensed under Section 5-101 or 5-102, or
any other person as defined in subsection (c) of Section
5-102.1, at a location at which no vehicles are offered for
sale that is conducted at a place other than the dealer's
established and additional places of business. In order for a
display exhibition to be considered a trade show exhibition,
it must be participated in by at least 3 dealers, 2 of which
must be licensed under Section 5-101 or 5-102; and a trade show
exhibition of new vehicles shall only be participated in by
licensed new vehicle dealers at least 2 of which must be
licensed under Section 5-101.
(Source: P.A. 90-89, eff. 1-1-98; 91-415, eff. 1-1-00.)
(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

SB1851 - 33 - LRB102 13715 RAM 19065 b
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

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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

SB1851 - 35 - LRB102 13715 RAM 19065 b
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

SB1851 - 36 - LRB102 13715 RAM 19065 b
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

SB1851 - 37 - LRB102 13715 RAM 19065 b
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

SB1851 - 38 - LRB102 13715 RAM 19065 b
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

SB1851 - 39 - LRB102 13715 RAM 19065 b
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

SB1851 - 40 - LRB102 13715 RAM 19065 b
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

SB1851 - 41 - LRB102 13715 RAM 19065 b
business have not committed in any calendar year 3 or more
violations, as determined in any civil, criminal or
administrative proceedings, of any one or more of the
following Acts:
(A) The Consumer Finance Act;
(B) The Consumer Installment Loan Act;
(C) The Retail Installment Sales Act;
(D) The Motor Vehicle Retail Installment Sales
Act;
(E) The Interest Act;
(F) The Illinois Wage Assignment Act;
(G) Part 8 of Article XII of the Code of Civil
Procedure; or
(H) The Consumer Fraud Act.
9.5. A statement that, within 10 years of application,
each officer, director, shareholder having a 10% or
greater ownership interest therein, proprietor, partner,
member, officer, director, trustee, manager, or other
principal in the business of the applicant has not
committed, as determined in any civil, criminal, or
administrative proceeding, in any calendar year one or
more forcible felonies under the Criminal Code of 1961 or
the Criminal Code of 2012, or a violation of either or both
Article 16 or 17 of the Criminal Code of 1961 or a
violation of either or both Article 16 or 17 of the
Criminal Code of 2012, Article 29B of the Criminal Code of

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1961 or the Criminal Code of 2012, or a similar
out-of-state offense. For the purposes of this paragraph,
"forcible felony" has the meaning provided in Section 2-8
of the Criminal Code of 2012.
10. A bond or certificate of deposit in the amount of
$50,000 for each location at which the applicant intends
to act as a new vehicle dealer. The bond shall be for the
term of the license, or its renewal, for which application
is made, and shall expire not sooner than December 31 of
the year for which the license was issued or renewed. The
bond shall run to the People of the State of Illinois, with
surety by a bonding or insurance company authorized to do
business in this State. It shall be conditioned upon the
proper transmittal of all title and registration fees and
taxes (excluding taxes under the Retailers' Occupation Tax
Act) accepted by the applicant as a new vehicle dealer.
11. Such other information concerning the business of
the applicant as the Secretary of State may by rule or
regulation prescribe.
12. A statement that the applicant understands Chapter
1 through Chapter 5 of this Code.
13. The full name, address, and contact information of
each of the dealer's agents or legal representatives who
is an Illinois resident and liable for the performance of
the dealership.
(c) Any change which renders no longer accurate any

SB1851 - 43 - LRB102 13715 RAM 19065 b
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

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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; .
6. The full name, address, and contact information of
each of the dealer's agents or legal representatives who
is an Illinois resident and liable for the performance of
the dealership.
(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

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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

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6. In the case of a vehicle for which the warranty has
been reinstated, a copy of the warranty.
(j) Except at the time of sale or repossession of the
vehicle, no person licensed as a new vehicle dealer may issue
any other person a newly created key to a vehicle unless the
new vehicle dealer makes a color photocopy or electronic scan
of the driver's license or State identification card of the
person requesting or obtaining the newly created key. The new
vehicle dealer must retain the photocopy or scan for 30 days.
A new vehicle dealer who violates this subsection (j) is
guilty of a petty offense. Violation of this subsection (j) is
not cause to suspend, revoke, cancel, or deny renewal of the
new vehicle dealer's license.
This amendatory Act of 1983 shall be applicable to the
1984 registration year and thereafter.
(k) Only a licensed dealer under this Section may use the
reassignment portion included on a certificate of title to
reassign a vehicle to another licensed dealer under this
Section.
(Source: P.A. 100-450, eff. 1-1-18; 100-956, eff. 1-1-19;
101-505, eff. 1-1-20.)
(625 ILCS 5/5-101.1)
Sec. 5-101.1. Motor vehicle financing affiliates;
licensing.
(a) In this State no business shall engage in the business

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of a motor vehicle financing affiliate without a license to do
so in writing from the Secretary of State.
(b) An application for a motor vehicle financing
affiliate's license must be filed with the Secretary of State,
duly verified by oath, on a form prescribed by the Secretary of
State and shall contain all of the following:
(1) The name and type of business organization of the
applicant and the applicant's established place of
business and any additional places of business in this
State.
(2) The name and address of the licensed new or used
vehicle dealer to which the applicant will be selling,
transferring, or assigning new or used motor vehicles
pursuant to a written contract. If more than one dealer is
on the application, the applicant shall state in writing
the basis of common ownership among the dealers.
(3) A list of the business organization's officers,
directors, members, and shareholders having a 10% or
greater ownership interest in the business, providing the
residential address for each person listed.
(4) If selling, transferring, or assigning new motor
vehicles, the make or makes of new vehicles that it will
sell, assign, or otherwise transfer to the contracting new
motor vehicle dealer listed on the application pursuant to
paragraph (2).
(5) The name of each manufacturer or franchised

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distributor, if any, of new vehicles with whom the
applicant has contracted for the sale of new vehicles and
a signed statement from each manufacturer or franchised
distributor acknowledging the contract.
(6) A statement that the applicant has been approved
for registration under the Retailers' Occupation Tax Act
by the Department of Revenue. This requirement does not
apply to a motor vehicle financing affiliate that is
already licensed with the Secretary of State and is
applying for a renewal of its license.
(7) A statement that the applicant has complied with
the appropriate liability insurance requirement and a
Certificate of Insurance that shall not expire before
December 31 of the year for which the license was issued or
renewed with a minimum liability coverage of $100,000 for
the bodily injury or death of any person, $300,000 for the
bodily injury or death of 2 or more persons in any one
accident, and $50,000 for damage to property. 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 the requirements of this
paragraph. A motor vehicle financing affiliate is exempt
from the requirements of this paragraph if it is covered
by the insurance policy of the new or used dealer listed on
the application pursuant to paragraph (2).

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(8) A license fee of $1,000 for the applicant's
established place of business and $250 for each additional
place of business, if any, to which the application
pertains. However, if the application is made after June
15 of any year, the license fee shall be $500 for the
applicant's established place of business and $125 for
each additional place of business, if any, to which the
application pertains. These license fees shall be
returnable only in the event that the application is
denied by the Secretary of State.
(9) A statement incorporating the requirements of
paragraphs 8 and 9 of subsection (b) of Section 5-101.
(10) Any other information concerning the business of
the applicant as the Secretary of State may prescribe.
(11) A statement that the applicant understands
Chapter 1 through Chapter 5 of this Code.
(12) The full name, address, and contact information
of each of the dealer's agents or legal representatives
who is an Illinois resident and liable for the performance
of the dealership.
(c) Any change which renders no longer accurate any
information contained in any application for a motor vehicle
financing affiliate's license shall be amended within 30 days
after the occurrence of the change on a form prescribed by the
Secretary of State, accompanied by an amendatory fee of $2.
(d) If a new vehicle dealer is not listed on the

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application, pursuant to paragraph (2) of subsection (b), the
motor vehicle financing affiliate shall not receive, possess,
or transfer any new vehicle. If a new motor vehicle dealer is
listed on the application, pursuant to paragraph (2) of
subsection (b), the new motor vehicle dealer can only receive
those new cars it is permitted to receive under its franchise
agreement. If both a new and used motor vehicle dealer are
listed on the application, pursuant to paragraph (2) of
subsection (b), only the new motor vehicle dealer may receive
new motor vehicles. If a used motor vehicle is listed on the
application, pursuant to paragraph (2) of subsection (b), the
used motor vehicle dealer shall not receive any new motor
vehicles.
(e) The applicant and dealer provided pursuant to
paragraph (2) of subsection (b) must be business organizations
registered to conduct business in Illinois. Three-fourths of
the dealer's board of directors must be members of the motor
vehicle financing affiliate's board of directors, if
applicable.
(f) Unless otherwise provided in this Chapter 5, no
business organization registered to do business in Illinois
shall be licensed as a motor vehicle financing affiliate
unless:
(1) The motor vehicle financing affiliate shall only
sell, transfer, or assign motor vehicles to the licensed
new or used dealer listed on the application pursuant to

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paragraph (2) of subsection (b).
(2) The motor vehicle financing affiliate sells,
transfers, or assigns to the new motor vehicle dealer
listed on the application, if any, only those new motor
vehicles the motor vehicle financing affiliate has
received under the contract set forth in paragraph (5) of
subsection (b).
(3) Any new vehicle dealer listed pursuant to
paragraph (2) of subsection (b) has a franchise agreement
that permits the dealer to receive motor vehicles from the
motor vehicle franchise affiliate.
(4) The new or used motor vehicle dealer listed on the
application pursuant to paragraph (2) of subsection (b)
has one established place of business or supplemental
places of business as referenced in subsection (g).
(g) The Secretary of State shall, within a reasonable time
after receipt, examine an application submitted pursuant to
this Section and, unless it is determined that the application
does not conform with the requirements of this Section or that
grounds exist for a denial of the application under Section
5-501, grant the applicant a motor vehicle financing affiliate
license in writing for the applicant's established place of
business and a supplemental license in writing for each
additional place of business in a form prescribed by the
Secretary, which shall include all of the following:
(1) The name of the business licensed;

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(2) The name and address of its officers, directors,
or members, as applicable;
(3) In the case of an original license, the
established place of business of the licensee; and
(4) If applicable, the make or makes of new vehicles
which the licensee is licensed to sell to the new motor
vehicle dealer listed on the application pursuant to
paragraph (2) of subsection (b); and .
(5) The full name, address, and contact information of
each of the dealer's agents or legal representatives who
is an Illinois resident and liable for the performance of
the dealership.
(h) The appropriate instrument evidencing the license or a
certified copy, provided by the Secretary of State, shall be
kept posted conspicuously in the established place of business
of the licensee.
(i) Except as provided in subsection (h), all motor
vehicle financing affiliate's licenses granted under this
Section shall expired by operation of law on December 31 of the
calendar year for which they are granted, unless revoked or
canceled at an earlier date pursuant to Section 5-501.
(j) A motor vehicle financing affiliate's license may be
renewed upon application and payment of the required fee.
However, when an application for renewal of a motor vehicle
financing affiliate's license is made during the month of
December, the effective license shall remain in force until

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the application is granted or denied by the Secretary of
State.
(k) The contract a motor vehicle financing affiliate has
with a manufacturer or franchised distributor, as provided in
paragraph (5) of subsection (b), shall only permit the
applicant to sell, transfer, or assign new motor vehicles to
the new motor vehicle dealer listed on the application
pursuant to paragraph (2) of subsection (b). The contract
shall specifically prohibit the motor vehicle financing
affiliate from selling motor vehicles at retail. This contract
shall not be considered the granting of a franchise as defined
in Section 2 of the Motor Vehicle Franchise Act.
(l) When purchasing of a motor vehicle by a new or used
motor vehicle dealer, all persons licensed as a motor vehicle
financing affiliate are required to furnish all of the
following:
(1) For a new vehicle, a manufacturer's statement of
origin properly assigned to the purchasing dealer. For a
used vehicle, a certificate of title properly assigned to
the purchasing dealer.
(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 the
purchasing dealer.

SB1851 - 54 - LRB102 13715 RAM 19065 b
(4) A copy of the Uniform Invoice-transaction report
pursuant to Section 5-402.
(5) In the case of a rebuilt vehicle, a copy of the
Disclosure of Rebuilt Vehicle Status pursuant to Section
5-104.3.
(6) In the case of a vehicle for which a warranty has
been reinstated, a copy of the warranty.
(m) The motor vehicle financing affiliate shall use the
established and supplemental place or places of business the
new or used vehicle dealer listed on the application pursuant
to paragraph (2) of subsection (b) as its established and
supplemental place or places of business.
(n) The motor vehicle financing affiliate shall keep all
books and records required by this Code with the books and
records of the new or used vehicle dealer listed on the
application pursuant to paragraph (2) of subsection (b). The
motor vehicle financing affiliate may use the books and
records of the new or used motor vehicle dealer listed on the
application pursuant to paragraph (2) of subsection (b).
(o) Under no circumstances shall a motor vehicle financing
affiliate sell, transfer, or assign a new vehicle to any place
of business of a new motor vehicle dealer, unless that place of
business is licensed under this Chapter to sell, assign, or
otherwise transfer the make of the new motor vehicle
transferred.
(p) All moneys received by the Secretary of State as

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license fees under this Section 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.
(q) Except as otherwise provided in this Section, a motor
vehicle financing affiliate shall comply with all provisions
of this Code.
(Source: P.A. 91-415, eff. 1-1-00.)
(625 ILCS 5/5-101.2)
Sec. 5-101.2. Manufactured home dealers; licensing.
(a) For the purposes of this Section, the following words
shall have the meanings ascribed to them as follows:
"Community-based manufactured home dealer" means an
individual or entity that operates a tract of land or 2 or
more contiguous tracts of land which contain sites with
the necessary utilities for 5 or more independent
manufactured homes for permanent habitation, either free
of charge or for revenue purposes, and shall include any
building, structure, vehicle, or enclosure used or
intended for use as a part of the equipment of the
manufactured home park who may, incidental to the
operation of the manufactured home community, sell, trade,
or buy no more than 2 manufactured homes or park models per
calendar year that are located within the manufactured
home community pursuant to a franchise agreement or

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similar agreement with a manufacturer, or used
manufactured homes or park models located within the
manufactured home community or additional place of
business that is owned or managed by the community-based
manufactured home dealer.
"Established place of business" means the place owned
or leased and occupied by any person duly licensed or
required to be licensed as a manufactured home dealer or a
community-based manufactured home dealer for the purpose
of engaging in selling, buying, bartering, displaying,
exchanging, or dealing in, on consignment or otherwise,
manufactured homes or park models and for such other
ancillary purposes as may be permitted by the Secretary by
rule. An established place of business shall include a
single or central office in which the manufactured home
dealer's or community-based manufactured home dealer's
records shall be separate and distinct from any other
business or tenant which may occupy space in the same
building, except as provided in this Section, and the
office shall not be located in a tent, temporary stand,
temporary address, room or rooms in a hotel or rooming
house, nor the premises occupied by a single or multiple
unit residence, unless the multiple unit residence has a
separate and distinct office.
"Manufactured home" means a factory assembled
structure built on a permanent chassis, transportable in

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one or more sections in the travel mode, incapable of
self-propulsion, and bears a label indicating the
manufacturer's compliance with the United States
Department of Housing and Urban Development standards, as
applicable, that is without a permanent foundation and is
designed for year round occupancy as a single-family
residence when connected to approved water, sewer, and
electrical utilities.
"Manufactured home dealer" means an individual or
entity that engages in the business of acquiring or
disposing of a manufactured home or park model, either a
new manufactured home or park model, pursuant to a
franchise agreement with a manufacturer, or used
manufactured homes or park models, and who has an
established place of business that is not in a residential
community-based setting.
"Park model" means a vehicle that is incapable of
self-propulsion that is less than 400 square feet of
habitable space that is built to American National
Standards Institute (ANSI) standards that prohibits
occupancy on a permanent basis and is built on a vehicle
chassis.
"Supplemental license" means a license that a
community-based manufactured home dealer receives and
displays at locations in which the licensee is authorized
to sell, buy, barter, display, exchange, or deal in, on

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consignment or otherwise, manufactured homes or park
models, but is not the established place of business of
the licensee.
(b) No person shall engage in this State in the business of
selling or dealing in, on consignment or otherwise,
manufactured homes or park models of any make, or act as an
intermediary, agent, or broker for any manufactured home or
park model purchaser, other than as a salesperson or to
represent or advertise that he or she is so engaged, or intends
to so engage, in the business, unless licensed to do so by the
Secretary of State under the provisions of this Section.
(c) An application for a manufactured home dealer's
license or a community-based manufactured home dealer's
license shall be filed with the Secretary of State and duly
verified by oath, on such form as the Secretary of State may by
rule prescribe and shall contain all of the following:
(1) The name and type of business organization of the
applicant, and his or her established and additional
places of business, if any, in this State.
(2) If the applicant is a corporation, a list of its
officers, directors, and shareholders having a 10% or
greater ownership interest in the corporation. If the
applicant is a sole proprietorship, a partnership, a
limited liability company, an unincorporated association,
a trust, or any similar form of business organization, the
name and residence address of the proprietor, or the name

SB1851 - 59 - LRB102 13715 RAM 19065 b
and residence address of each partner, member, officer,
director, trustee, or manager.
(3) The make or makes of new manufactured homes or
park models that the applicant will offer for sale at
retail in the State.
(4) The name of each manufacturer or franchised
distributor, if any, of new manufactured homes or park
models with whom the applicant has contracted for the sale
of new manufactured homes or park models. As evidence of
this fact, the application shall be accompanied by a
signed statement from each manufacturer or franchised
distributor.
(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 manufactured home dealer
who is already licensed with the Secretary of State, and
who is merely applying for a renewal of his or her license.
As evidence of this fact, the application shall be
accompanied by a certification from the Department of
Revenue showing that the Department has approved the
applicant for registration under the Retailers' Occupation
Tax Act.
(6) An application for:
(A) a manufactured home dealer's license, when the
applicant is selling new manufactured homes or park

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models on behalf of a manufacturer of manufactured
homes or park models, or 5 or more used manufactured
homes or park models during the calendar year, shall
be accompanied by a $1,000 license fee for the
applicant's established place of business, and $100
for each additional place of business, if any, to
which the application pertains. If the application is
made after June 15 in any year, the license fee shall
be $500 for the applicant's established place of
business, and $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; or
(B) a community-based manufactured home dealer's
license, when the applicant is selling new
manufactured homes or park models on behalf of a
manufacturer of manufactured homes or park models, or
5 or more used manufactured homes or park models
during the calendar year, but within a community
setting, shall be accompanied by a license fee of $500
for the applicant's established place of business, and
$50 for each additional place of business within a
50-mile radius of the established place of business,
if any to which the application pertains. If the
application is made after June 15 in any year, the

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license fee shall be $250 for the applicant's
established place of business, and $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.
Of the monies received by the Secretary of State
as license fees under this paragraph (6), 95% shall be
deposited into the General Revenue Fund and 5% into
the Motor Vehicle License Plate Fund.
(7) A statement that the applicant's officers,
directors, and 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 hearing proceeding, 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

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Rebuilders Laws of the Illinois Vehicle Code;
(E) Section 21-2 of the Criminal Code of 2012
(criminal trespass to vehicles);
(F) the Retailers Occupation Tax Act;
(G) the Consumer Finance Act;
(H) the Consumer Installment Loan Act;
(I) the Retail Installment Sales Act;
(J) the Motor Vehicle Retail Installment Sales
Act;
(K) the Interest Act;
(L) the Illinois Wage Assignment Act;
(M) Part 8 of Article XII of the Code of Civil
Procedure; or
(N) the Consumer Fraud Act.
(8) A bond or certificate of deposit in the amount of
$20,000 for each license holder applicant intending to act
as a manufactured home dealer or community-based
manufactured home dealer under this Section. The bond
shall be for the term of the license, for which
application is made, and shall expire not sooner than
December 31 of the year for which the license was issued.
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

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Tax Act) accepted by the applicant as a manufactured home
dealer.
(9) Dealers in business for over 5 years may
substitute a certificate of insurance in lieu of the bond
or certificate of deposit upon renewing their license.
(10) Any other information concerning the business of
the applicant as the Secretary of State may by rule
prescribe.
(11) A statement that the applicant has read and
understands Chapters 1 through 5 of this Code.
(12) The full name, address, and contact information
of each of the dealer's agents or legal representatives
who is an Illinois resident and liable for the performance
of the dealership.
(d) Any change which renders no longer accurate any
information contained in any application for a license under
this Section shall be amended within 30 days after the
occurrence of the change on a form the Secretary of State may
prescribe, by rule, accompanied by an amendatory fee of $25.
(e) The Secretary of State shall, within a reasonable time
after receipt, examine an application submitted to him or her
under this Section, and unless he or she makes a determination
that the application submitted to him or her 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 initial manufactured home

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dealer's license or a community-based manufactured home
dealer's license in writing for his or her established place
of business and a supplemental license in writing for each
additional place of business in a form the Secretary may
prescribe by rule, which shall include the following:
(1) the name of the person or entity licensed;
(2) if a corporation, the name and address of its
officers; if a sole proprietorship, a partnership, an
unincorporated association, or any similar form of
business organization, the name and address of the
proprietor, or the name and address of each partner,
member, officer, director, trustee or manager; or if a
limited liability company, the name and address of the
general partner or partners, or managing member or
members;
(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
distance to each additional place of business to which the
supplemental license pertains; and
(5) if applicable, the make or makes of new
manufactured homes or park models to which a manufactured
home dealer is licensed to sell; and .
(6) the full name, address, and contact information of
each of the dealer's agents or legal representatives who

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is an Illinois resident and liable for the performance of
the dealership.
(e-5) A manufactured home dealer may operate a
supplemental lot if the lot is located within 50 miles of the
manufactured home dealer's principal place of business.
Records pertaining to a supplemental lot may be maintained at
the principal place of business.
(f) The appropriate instrument evidencing the license or a
certified copy of the instrument, provided by the Secretary of
State, shall be kept posted conspicuously in the established
place of business of the licensee and in each additional place
of business, if any, maintained by the licensee, unless the
licensee is a community-based manufactured home dealer, then
the license shall be posted in the community-based
manufactured home dealer's central office and it shall include
a list of the other locations that the community-based
manufactured home dealer may oversee.
(g) Except as provided in subsection (i) of this Section,
all licenses granted under this Section shall expire by
operation of law on December 31 of the calendar year for which
the licenses were granted, unless sooner revoked or cancelled
under the provisions of Section 5-501 of this Chapter.
(h) All persons licensed as a manufactured home dealer or
a community-based manufactured home dealer are required to
furnish each purchaser of a manufactured home or park model:
(1) in the case of a new manufactured home or park

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model, a manufacturer's statement of origin, and in the
case of a previously owned manufactured home or park
model, 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 match the identifying
numbers on the certificate of title or manufacturer's
statement of origin;
(3) a bill of sale properly executed on behalf of the
purchaser;
(4) a copy of the Uniform Invoice-transaction
reporting return form referred to in Section 5-402; and
(5) for a new manufactured home or park model, a
warranty, and in the case of a manufactured home or park
model for which the warranty has been reinstated, a copy
of the warranty; if no warranty is provided, a disclosure
or statement that the manufactured home or park model is
being sold "AS IS".
(i) This Section shall not apply to a (i) seller who
privately owns his or her manufactured home or park model as
his or her main residence and is selling the manufactured home
or park model to another individual or to a licensee; (ii) a
retailer or entity licensed under either Section 5-101 or
5-102 of this Code; or (iii) an individual or entity licensed
to sell truck campers, travel trailers, motor homes, or mini
motor homes as defined by this Code. Any vehicle not covered by

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this Section that requires an individual or entity to obtain a
license to sell 5 or more vehicles must obtain a license under
the relevant provisions of this Code.
(j) This Section shall not apply to any person licensed
under the Real Estate License Act of 2000.
(k) The Secretary of State may adopt any rules necessary
to implement this Section.
(Source: P.A. 101-407, eff. 8-16-19.)
(625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
Sec. 5-102. Used vehicle dealers must be licensed.
(a) No person, other than a licensed new vehicle dealer,
shall engage in the business of selling or dealing in, on
consignment or otherwise, 5 or more used vehicles of any make
during the year (except house trailers as authorized by
paragraph (j) of this Section and rebuilt salvage vehicles
sold by their rebuilders to persons licensed under this
Chapter), or act as an intermediary, agent or broker for any
licensed dealer or vehicle purchaser (other than as a
salesperson) or represent or advertise that he is so engaged
or intends to so engage in such business unless licensed to do
so by the Secretary of State under the provisions of this
Section.
(b) An application for a used vehicle dealer's license
shall be filed with the Secretary of State, duly verified by
oath, in such form as the Secretary of State may by rule or

SB1851 - 68 - LRB102 13715 RAM 19065 b
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

SB1851 - 69 - LRB102 13715 RAM 19065 b
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

SB1851 - 70 - LRB102 13715 RAM 19065 b
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.

SB1851 - 71 - LRB102 13715 RAM 19065 b
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

SB1851 - 72 - LRB102 13715 RAM 19065 b
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

SB1851 - 73 - LRB102 13715 RAM 19065 b
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;

SB1851 - 74 - LRB102 13715 RAM 19065 b
(B) The Consumer Installment Loan Act;
(C) The Retail Installment Sales Act;
(D) The Motor Vehicle Retail Installment Sales
Act;
(E) The Interest Act;
(F) The Illinois Wage Assignment Act;
(G) Part 8 of Article XII of the Code of Civil
Procedure; or
(H) The Consumer Fraud and Deceptive Business
Practices Act.
7.5. A statement that, within 10 years of application,
each officer, director, shareholder having a 10% or
greater ownership interest therein, proprietor, partner,
member, officer, director, trustee, manager, or other
principal in the business of the applicant has not
committed, as determined in any civil, criminal, or
administrative proceeding, in any calendar year one or
more forcible felonies under the Criminal Code of 1961 or
the Criminal Code of 2012, or a violation of either or both
Article 16 or 17 of the Criminal Code of 1961 or a
violation of either or both Article 16 or 17 of the
Criminal Code of 2012, Article 29B of the Criminal Code of
1961 or the Criminal Code of 2012, or a similar
out-of-state offense. For the purposes of this paragraph,
"forcible felony" has the meaning provided in Section 2-8
of the Criminal Code of 2012.

SB1851 - 75 - LRB102 13715 RAM 19065 b
8. A bond or Certificate of Deposit in the amount of
$50,000 for each location at which the applicant intends
to act as a used vehicle dealer. The bond shall be for the
term of the license, or its renewal, for which application
is made, and shall expire not sooner than December 31 of
the year for which the license was issued or renewed. The
bond shall run to the People of the State of Illinois, with
surety by a bonding or insurance company authorized to do
business in this State. It shall be conditioned upon the
proper transmittal of all title and registration fees and
taxes (excluding taxes under the Retailers' Occupation Tax
Act) accepted by the applicant as a used vehicle dealer.
9. Such other information concerning the business of
the applicant as the Secretary of State may by rule or
regulation prescribe.
10. A statement that the applicant understands Chapter
1 through Chapter 5 of this Code.
11. A copy of the certification from the prelicensing
education program.
12. The full name, address, and contact information of
each of the dealer's agents or legal representatives who
is an Illinois resident and liable for the performance of
the dealership.
(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

SB1851 - 76 - LRB102 13715 RAM 19065 b
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

SB1851 - 77 - LRB102 13715 RAM 19065 b
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 full name, address, and contact information of
each of the dealer's agents or legal representatives who
is an Illinois resident and liable for the performance of
the dealership.
(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,

SB1851 - 78 - LRB102 13715 RAM 19065 b
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,

SB1851 - 79 - LRB102 13715 RAM 19065 b
(2) the date of sale,
(3) a description of the mobile home, including the
vehicle identification number, make, model, and year, and
(4) the Illinois certificate of title number.
The foregoing records shall be available for inspection by
any officer of the Secretary of State's Office at any
reasonable hour.
(k) Except at the time of sale or repossession of the
vehicle, no person licensed as a used vehicle dealer may issue
any other person a newly created key to a vehicle unless the
used vehicle dealer makes a color photocopy or electronic scan
of the driver's license or State identification card of the
person requesting or obtaining the newly created key. The used
vehicle dealer must retain the photocopy or scan for 30 days.
A used vehicle dealer who violates this subsection (k) is
guilty of a petty offense. Violation of this subsection (k) is
not cause to suspend, revoke, cancel, or deny renewal of the
used vehicle dealer's license.
(l) Used vehicle dealers licensed under this Section shall
provide the Secretary of State a register for the sale at
auction of each salvage or junk certificate vehicle. Each
register shall include the following information:
1. The year, make, model, style and color of the
vehicle;
2. The vehicle's manufacturer's identification number
or, if applicable, the Secretary of State or Illinois

SB1851 - 80 - LRB102 13715 RAM 19065 b
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. 100-450, eff. 1-1-18; 100-956, eff. 1-1-19;
101-505, eff. 1-1-20.)
(625 ILCS 5/5-102.8)
Sec. 5-102.8. Licensure of Buy Here, Pay Here used vehicle
dealers.
(a) As used in this Section, "Buy Here, Pay Here used
vehicle dealer" means any entity that engages in the business
of selling or leasing of vehicles and finances the sale or
purchase price of the vehicle to a customer without the
customer using a third-party lender.
(b) No person shall engage in the business of selling or
dealing in, on consignment or otherwise, 5 or more used

SB1851 - 81 - LRB102 13715 RAM 19065 b
vehicles of any make during the year (except rebuilt salvage
vehicles sold by their rebuilders to persons licensed under
this Chapter), or act as an intermediary, agent, or broker for
any licensed dealer or vehicle purchaser (other than as a
salesperson) or represent or advertise that he or she is so
engaged or intends to so engage in such business of a Buy Here,
Pay Here used vehicle dealer unless licensed to do so by the
Secretary of State under the provisions of this Section.
(c) An application for a Buy Here, Pay Here used vehicle
dealer's license shall be filed with the Secretary of State,
duly verified by oath, in such form as the Secretary of State
may by rule or regulation prescribe and shall contain:
(1) The name and type of business organization
established and additional places of business, if any, in
this State.
(2) If the applicant is a corporation, a list of its
officers, directors, and shareholders having a 10% or
greater ownership interest in the corporation, setting
forth the residence address of each; if the applicant is a
sole proprietorship, a partnership, an unincorporated
association, a trust, or any similar form of business
organization, the names and residence address of the
proprietor or of each partner, member, officer, director,
trustee, or manager.
(3) A statement that the applicant has been approved
for registration under the Retailers' Occupation Tax Act

SB1851 - 82 - LRB102 13715 RAM 19065 b
by the Department of Revenue. However, this requirement
does not apply to a dealer who is already licensed
hereunder with the Secretary of State, and who is merely
applying for a renewal of his or her license. As evidence
of this fact, the application shall be accompanied by a
certification from the Department of Revenue showing that
the Department has approved the applicant for registration
under the Retailers' Occupation Tax Act.
(4) A statement that the applicant has complied with
the appropriate liability insurance requirement. A
Certificate of Insurance in a solvent company authorized
to do business in the State of Illinois shall be included
with each application covering each location at which he
or she proposes to act as a Buy Here, Pay Here used vehicle
dealer. The policy must provide liability coverage in the
minimum amounts of $100,000 for bodily injury to, or death
of, any person, $300,000 for bodily injury to, or death
of, 2 or more persons in any one accident, and $50,000 for
damage to property. Such policy shall expire not sooner
than December 31 of the year for which the license was
issued or renewed. The expiration of the insurance policy
shall not terminate the liability under the policy arising
during the period for which the policy was filed.
If the permitted user has a liability insurance policy
that provides automobile liability insurance coverage of
at least $100,000 for bodily injury to or the death of any

SB1851 - 83 - LRB102 13715 RAM 19065 b
person, $300,000 for bodily injury to or the death of any 2
or more persons in any one accident, and $50,000 for
damage to property, then the permitted user's insurer
shall be the primary insurer and the dealer's insurer
shall be the secondary insurer. If the permitted user does
not have a liability insurance policy that provides
automobile liability insurance coverage of at least
$100,000 for bodily injury to or the death of any person,
$300,000 for bodily injury to or the death of any 2 or more
persons in any one accident, and $50,000 for damage to
property, or does not have any insurance at all, then the
dealer's insurer shall be the primary insurer and the
permitted user's insurer shall be the secondary insurer.
When a permitted user is "test driving" a Buy Here,
Pay Here used vehicle dealer's automobile, the Buy Here,
Pay Here used vehicle dealer's insurance shall be primary
and the permitted user's insurance shall be secondary.
As used in this paragraph, "permitted user" means a
person who, with the permission of the Buy Here, Pay Here
used vehicle dealer or an employee of the Buy Here, Pay
Here used vehicle dealer, drives a vehicle owned and held
for sale or lease by the Buy Here, Pay Here used vehicle
dealer that the person is considering to purchase or
lease, in order to evaluate the performance, reliability,
or condition of the vehicle. "Permitted user" includes a
person who, with the permission of the Buy Here, Pay Here

SB1851 - 84 - LRB102 13715 RAM 19065 b
used vehicle dealer, drives a vehicle owned or held for
sale or lease by the Buy Here, Pay Here used vehicle dealer
for loaner purposes while the user's vehicle is being
repaired or evaluated.
As used in this paragraph, "test driving" occurs when
a permitted user who, with the permission of the Buy Here,
Pay Here used vehicle dealer or an employee of the Buy
Here, Pay Here used vehicle dealer, drives a vehicle owned
and held for sale or lease by a Buy Here, Pay Here used
vehicle dealer that the person is considering to purchase
or lease, in order to evaluate the performance,
reliability, or condition of the vehicle.
As used in this paragraph, "loaner purposes" means
when a person who, with the permission of the Buy Here, Pay
Here used vehicle dealer, drives a vehicle owned or held
for sale or lease by the used vehicle dealer while the
user's vehicle is being repaired or evaluated.
(5) An application for a Buy Here, Pay Here used
vehicle dealer's license shall be accompanied by the
following license fees:
(A) $1,000 for the applicant's established place
of business, and $50 for each additional place of
business, if any, to which the application pertains;
however, if the application is made after June 15 of
any year, the license fee shall be $500 for the
applicant's established place of business plus $25 for

SB1851 - 85 - LRB102 13715 RAM 19065 b
each additional place of business, if any, to which
the application pertains. License fees shall be
returnable only if the application is denied by the
Secretary of State. Of the money received by the
Secretary of State as license fees under this
subparagraph, 95% shall be deposited into the General
Revenue Fund.
(B) Except for dealers selling 25 or fewer
automobiles or as provided in subsection (h) of
Section 5-102.7 of this Code, an Annual Dealer
Recovery Fund Fee in the amount of $500 for the
applicant's established place of business, and $50 for
each additional place of business, if any, to which
the application pertains; but if the application is
made after June 15 of any year, the fee shall be $250
for the applicant's established place of business plus
$25 for each additional place of business, if any, to
which the application pertains. For a license renewal
application, the fee shall be based on the amount of
automobiles sold in the past year according to the
following formula:
(1) $0 for dealers selling 25 or less
automobiles;
(2) $150 for dealers selling more than 25 but
less than 200 automobiles;
(3) $300 for dealers selling 200 or more

SB1851 - 86 - LRB102 13715 RAM 19065 b
automobiles but less than 300 automobiles; and
(4) $500 for dealers selling 300 or more
automobiles.
Fees shall be returnable only if the application
is denied by the Secretary of State. Money received
under this subparagraph shall be deposited into the
Dealer Recovery Trust Fund. A Buy Here, Pay Here used
vehicle dealer shall pay into the Dealer Recovery
Trust Fund for every vehicle that is financed, sold,
or otherwise transferred to an individual or entity
other than the Buy Here, Pay Here used vehicle dealer
even if the individual or entity to which the Buy Here,
Pay Here used vehicle dealer transfers the vehicle is
unable to continue to adhere to the terms of the
transaction by the Buy Here, Pay Here used vehicle
dealer.
(6) A statement that each officer, director,
shareholder having a 10% or greater ownership interest
therein, proprietor, partner, member, officer, director,
trustee, manager, or other principal in the business of
the applicant has not committed in the past 3 years any one
violation as determined in any civil, criminal, or
administrative proceedings of any one of the following:
(A) the Anti-Theft Laws of this Code;
(B) the Certificate of Title Laws of this Code;
(C) the Offenses against Registration and

SB1851 - 87 - LRB102 13715 RAM 19065 b
Certificates of Title Laws of this Code;
(D) the Dealers, Transporters, Wreckers and
Rebuilders Laws of this Code;
(E) Section 21-2 of the Illinois Criminal Code of
1961 or the Criminal Code of 2012, Criminal Trespass
to Vehicles; or
(F) the Retailers' Occupation Tax Act.
(7) A statement that each officer, director,
shareholder having a 10% or greater ownership interest
therein, proprietor, partner, member, officer, director,
trustee, manager, or other principal in the business of
the applicant has not committed in any calendar year 3 or
more violations, as determined in any civil, criminal, or
administrative proceedings, of any one or more of the
following:
(A) the Consumer Finance Act;
(B) the Consumer Installment Loan Act;
(C) the Retail Installment Sales Act;
(D) the Motor Vehicle Retail Installment Sales
Act;
(E) the Interest Act;
(F) the Illinois Wage Assignment Act;
(G) Part 8 of Article XII of the Code of Civil
Procedure; or
(H) the Consumer Fraud and Deceptive Business
Practices Act.

SB1851 - 88 - LRB102 13715 RAM 19065 b
(8) A statement that, within 10 years of application,
each officer, director, shareholder having a 10% or
greater ownership interest therein, proprietor, partner,
member, officer, director, trustee, manager, or other
principal in the business of the applicant has not
committed, as determined in any civil, criminal, or
administrative proceeding, in any calendar year one or
more forcible felonies under the Criminal Code of 1961 or
the Criminal Code of 2012, or a violation of either or both
Article 16 or 17 of the Criminal Code of 1961, or a
violation of either or both Article 16 or 17 of the
Criminal Code of 2012, Article 29B of the Criminal Code of
1961 or the Criminal Code of 2012, or a similar
out-of-state offense. For the purposes of this paragraph,
"forcible felony" has the meaning provided in Section 2-8
of the Criminal Code of 2012.
(9) A bond or Certificate of Deposit in the amount of
$50,000 for each location at which the applicant intends
to act as a Buy Here, Pay Here used vehicle dealer. The
bond shall be for the term of the license. The bond shall
run to the People of the State of Illinois, with surety by
a bonding or insurance company authorized to do business
in this State. It shall be conditioned upon the proper
transmittal of all title and registration fees and taxes
(excluding taxes under the Retailers' Occupation Tax Act)
accepted by the applicant as a Buy Here, Pay Here used

SB1851 - 89 - LRB102 13715 RAM 19065 b
vehicle dealer.
(10) Such other information concerning the business of
the applicant as the Secretary of State may by rule
prescribe.
(11) A statement that the applicant understands
Chapter 1 through Chapter 5 of this Code.
(12) A copy of the certification from the prelicensing
education program.
(13) The full name, address, and contact information
of each of the dealer's agents or legal representatives
who is an Illinois resident and liable for the performance
of the dealership.
(d) Any change that renders no longer accurate any
information contained in any application for a Buy Here, Pay
Here used vehicle dealer's license shall be amended within 30
days after the occurrence of each change on such form as the
Secretary of State may prescribe by rule, accompanied by an
amendatory fee of $2.
(e) Anything in this Chapter to the contrary
notwithstanding, no person shall be licensed as a Buy Here,
Pay Here used vehicle dealer unless the person maintains an
established place of business as defined in this Chapter.
(f) The Secretary of State shall, within a reasonable time
after receipt, examine an application submitted under this
Section. Unless the Secretary makes a determination that the
application does not conform to this Section or that grounds

SB1851 - 90 - LRB102 13715 RAM 19065 b
exist for a denial of the application under Section 5-501 of
this Chapter, the Secretary must grant the applicant an
original Buy Here, Pay Here used vehicle dealer's license in
writing for his or her established place of business and a
supplemental license in writing for each additional place of
business in such form as the Secretary may prescribe by rule
that shall include the following:
(1) The name of the person licensed.
(2) If a corporation, the name and address of its
officers or if a sole proprietorship, a partnership, an
unincorporated association, or any similar form of
business organization, the name and address of the
proprietor or of each partner, member, officer, director,
trustee, or manager.
(3) In the case of an original license, the
established place of business of the licensee.
(4) In the case of a supplemental license, the
established place of business of the licensee and the
additional place of business to which the supplemental
license pertains.
(5) The full name, address, and contact information of
each of the dealer's agents or legal representatives who
is an Illinois resident and liable for the performance of
the dealership.
(g) The appropriate instrument evidencing the license or a
certified copy thereof, provided by the Secretary of State

SB1851 - 91 - LRB102 13715 RAM 19065 b
shall be kept posted, conspicuously, in the established place
of business of the licensee and in each additional place of
business, if any, maintained by the licensee.
(h) Except as provided in subsection (i), all Buy Here,
Pay Here used vehicle dealer's licenses granted under this
Section expire by operation of law on December 31 of the
calendar year for which they are granted unless sooner revoked
or cancelled under Section 5-501 of this Chapter.
(i) A Buy Here, Pay Here used vehicle dealer's license may
be renewed upon application and payment of the fee required
herein, and submission of proof of coverage by an approved
bond under the Retailers' Occupation Tax Act or proof that the
applicant is not subject to such bonding requirements, as in
the case of an original license, but in the case of an
application for the renewal of an effective license made
during the month of December, the effective license shall
remain in force until the application for renewal is granted
or denied by the Secretary of State.
(j) Each person licensed as a Buy Here, Pay Here used
vehicle dealer is required to furnish each purchaser of a
motor vehicle:
(1) a certificate of title properly assigned to the
purchaser;
(2) a statement verified under oath that all
identifying numbers on the vehicle agree with those on the
certificate of title;

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(3) a bill of sale properly executed on behalf of the
person;
(4) a copy of the Uniform Invoice-transaction
reporting return referred to in Section 5-402;
(5) in the case of a rebuilt vehicle, a copy of the
Disclosure of Rebuilt Vehicle Status; and
(6) in the case of a vehicle for which the warranty has
been reinstated, a copy of the warranty.
(k) Except at the time of sale or repossession of the
vehicle, no person licensed as a Buy Here, Pay Here used
vehicle dealer may issue any other person a newly created key
to a vehicle unless the Buy Here, Pay Here used vehicle dealer
makes a color photocopy or electronic scan of the driver's
license or State identification card of the person requesting
or obtaining the newly created key. The Buy Here, Pay Here used
vehicle dealer must retain the photocopy or scan for 30 days.
A Buy Here, Pay Here used vehicle dealer who violates this
subsection (k) is guilty of a petty offense. Violation of this
subsection (k) is not cause to suspend, revoke, cancel, or
deny renewal of the used vehicle dealer's license.
(l) A Buy Here, Pay Here used vehicle dealer licensed
under this Section shall provide the Secretary of State a
register for the sale at auction of each salvage or junk
certificate vehicle. Each register shall include the following
information:
(1) the year, make, model, style, and color of the

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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. 101-505, eff. 1-1-20.)
(625 ILCS 5/5-301) (from Ch. 95 1/2, par. 5-301)
Sec. 5-301. Automotive parts recyclers, scrap processors,
repairers and rebuilders must be licensed.
(a) No person in this State shall, except as an incident to
the servicing of vehicles, carry on or conduct the business of
an automotive parts recycler, a scrap processor, a repairer,
or a rebuilder, unless licensed to do so in writing by the
Secretary of State under this Section. No person shall rebuild

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a salvage vehicle unless such person is licensed as a
rebuilder by the Secretary of State under this Section. No
person shall engage in the business of acquiring 5 or more
previously owned vehicles in one calendar year for the primary
purpose of disposing of those vehicles in the manner described
in the definition of a "scrap processor" in this Code unless
the person is licensed as an automotive parts recycler by the
Secretary of State under this Section. No person shall engage
in the act of dismantling, crushing, or altering a vehicle
into another form using machinery or equipment unless licensed
to do so and only from the fixed location identified on the
license issued by the Secretary. Each license shall be applied
for and issued separately, except that a license issued to a
new vehicle dealer under Section 5-101 of this Code shall also
be deemed to be a repairer license.
(b) Any application filed with the Secretary of State,
shall be 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 of the
applicant and his principal or additional places of
business, if any, in this State.
2. The kind or kinds of business enumerated in
subsection (a) of this Section to be conducted at each
location.
3. If the applicant is a corporation, a list of its

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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.
4. A statement that the applicant's officers,
directors, shareholders having a ten percent or greater
ownership interest therein, proprietor, partner, member,
officer, director, trustee, manager, or other principals
in the business have not committed in the past three years
any one violation as determined in any civil or 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

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the Criminal Code of 2012, Criminal Trespass to
Vehicles; or
(f) the Retailers Occupation Tax Act.
5. A statement that the applicant's officers,
directors, shareholders having a ten percent 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.
6. An application for a license shall be accompanied
by the following fees: $50 for applicant's established
place of business; $25 for each additional place of
business, if any, to which the application pertains;
provided, however, that if such an application is made

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after June 15 of any year, the license fee shall be $25 for
applicant's established place of business plus $12.50 for
each additional place of business, if any, to which the
application pertains. License fees shall be returnable
only in the event that such application shall be denied by
the Secretary of State.
7. A statement that the applicant understands Chapter
1 through Chapter 5 of this Code.
8. A statement that the applicant shall comply with
subsection (e) of this Section.
9. A statement indicating if the applicant, including
any of the applicant's affiliates or predecessor
corporations, has been subject to the revocation or
nonrenewal of a business license by a municipality under
Section 5-501.5 of this Code.
10. The applicant's National Motor Vehicle Title
Information System number and a statement of compliance if
applicable.
11. The full name, address, and contact information of
each of the dealer's agents or legal representatives who
is an Illinois resident and liable for the performance of
the dealership.
(c) Any change which renders no longer accurate any
information contained in any application for a license filed
with the Secretary of State shall be amended within 30 days
after the occurrence of such change on such form as the

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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 under this
Section unless such person shall maintain an established place
of business as defined in this Chapter.
(e) The Secretary of State shall within a reasonable time
after receipt thereof, 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, as prescribed in Section 5-501 of
this Chapter, grant the applicant an original license as
applied for 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. a designation of the kind or kinds of business
enumerated in subsection (a) of this Section to be

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conducted at each location;
4. in the case of an original license, the established
place of business of the licensee;
5. 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; .
6. the full name, address, and contact information of
each of the dealer's agents or legal representatives who
is an Illinois resident and liable for the performance of
the dealership.
(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. The licensee
also shall post conspicuously in the established place of
business and in each additional place of business a notice
which states that such business is required to be licensed by
the Secretary of State under Section 5-301, and which provides
the license number of the business and the license expiration
date. This notice also shall advise the consumer that any
complaints as to the quality of service may be brought to the
attention of the Attorney General. The information required on
this notice also shall be printed conspicuously on all
estimates and receipts for work by the licensee subject to

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this Section. The Secretary of State shall prescribe the
specific format of this notice.
(g) Except as provided in subsection (h) hereof, 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, nonrenewed, or cancelled under the
provisions of Section 5-501 or 5-501.5 of this Chapter.
(h) Any license granted under this Section may be renewed
upon application and payment of the fee required herein as in
the case of an original license, provided, however, that in
case an application for the renewal of an effective license is
made during the month of December, such effective license
shall remain in force until such application is granted or
denied by the Secretary of State.
(i) All automotive repairers and rebuilders shall, in
addition to the requirements of subsections (a) through (h) of
this Section, meet the following licensing requirements:
1. provide proof that the property on which first time
applicants plan to do business is in compliance with local
zoning laws and regulations, and a listing of zoning
classification;
2. provide proof that the applicant for a repairer's
license complies with the proper workers' compensation
rate code or classification, and listing the code of
classification for that industry;
3. provide proof that the applicant for a rebuilder's

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license complies with the proper workers' compensation
rate code or classification for the repair industry or the
auto parts recycling industry and listing the code of
classification;
4. provide proof that the applicant has obtained or
applied for a hazardous waste generator number, and
listing the actual number if available or certificate of
exemption;
5. provide proof that applicant has proper liability
insurance, and listing the name of the insurer and the
policy number; and
6. provide proof that the applicant has obtained or
applied for the proper State sales tax classification and
federal identification tax number, and listing the actual
numbers if available.
(i-1) All automotive repairers shall provide proof that
they comply with all requirements of the Automotive Collision
Repair Act.
(j) All automotive parts recyclers shall, in addition to
the requirements of subsections (a) through (h) of this
Section, meet the following licensing requirements:
1. provide a statement that the applicant purchases 5
vehicles per year or has 5 hulks or chassis in stock;
2. provide proof that the property on which all first
time applicants will do business does comply to the proper
local zoning laws in existence, and a listing of zoning

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classifications;
3. provide proof that applicant complies with the
proper workers' compensation rate code or classification,
and listing the code of classification; and
4. provide proof that applicant has obtained or
applied for the proper State sales tax classification and
federal identification tax number, and listing the actual
numbers if available.
(Source: P.A. 100-409, eff. 8-25-17; 101-572, eff. 8-23-19.)
SB1851 - 103 - LRB102 13715 RAM 19065 b
INDEX
Statutes amended in order of appearance