625 ILCS 5/5-101
2021 Illinois Compiled Statutes|Chapter 625 - VEHICLES|625 ILCS 5/ - Illinois Vehicle Code.|Chapter 5 - Dealers, Transporters, Wreckers And Rebuilders

 (from Ch. 95 1/2, par. 5-101)Sec. 5-101. New vehicle dealers must be licensed.(a) No person shall engage in this State in the business of selling  or dealing in, on consignment or otherwise, new vehicles of any make, or  act as an intermediary or agent or broker for any licensed dealer or  vehicle purchaser other than as a salesperson, or represent or advertise  that he is so engaged or intends to so engage in such business unless  licensed to do so in writing by the Secretary of State under the  provisions of this Section.(b) An application for a new vehicle dealer's license shall be filed  with the Secretary of State, duly verified by oath, on such form as the  Secretary of State may by rule or regulation prescribe and shall contain:1. The name and type of business organization of the     applicant and his  established and additional places of business, if any, in this State.2. If the applicant is a corporation, a list of its     officers, directors, and shareholders having a ten percent or greater ownership interest in the corporation, setting forth the residence address of each; if the applicant is a sole proprietorship, a partnership, an unincorporated association, a trust, or any similar form of business organization, the name and residence address of the proprietor or of each partner, member, officer, director, trustee, or manager.3. The make or makes of new vehicles which the     applicant will offer for sale at retail in this State.4. The name of each manufacturer or franchised     distributor, if any, of new vehicles with whom the applicant has contracted for the sale of such new vehicles. As evidence of this fact, the application shall be accompanied by a signed statement from each such manufacturer or franchised distributor.  If the applicant is in the business of offering for sale new conversion vehicles, trucks or vans, except for trucks modified to serve a special purpose which includes but is not limited to the following vehicles:  street sweepers, fertilizer spreaders, emergency vehicles, implements of husbandry or maintenance type vehicles, he must furnish evidence of a sales and service agreement from both the chassis manufacturer and second stage manufacturer.5. A statement that the applicant has been approved     for registration under the Retailers' Occupation Tax Act by the Department of Revenue: Provided that this requirement does not apply to a dealer who is already licensed hereunder with the Secretary of State, and who is merely applying for a renewal of his license. As evidence of this fact, the application shall be accompanied by a certification from the Department of Revenue showing that that Department has approved the applicant for registration under the Retailers' Occupation Tax Act.6. A statement that the applicant has complied with     the appropriate liability insurance requirement.  A Certificate of Insurance in a solvent company authorized to do business in the State of Illinois shall be included with each application covering each location at which he proposes to act as a new vehicle dealer.  The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, two or more persons in any one accident, and $50,000 for damage to property.  Such policy shall expire not sooner than December 31 of the year for which the license was issued or renewed.  The expiration of the insurance policy shall not terminate the liability under the policy arising during the period for which the policy was filed.  Trailer and mobile home dealers are exempt from this requirement.If the permitted user has a liability insurance     policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one accident, and $50,000 for damage to property, then the permitted user's insurer shall be the primary insurer and the dealer's insurer shall be the secondary insurer. If the permitted user does not have a liability insurance policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one accident, and $50,000 for damage to property, or does not have any insurance at all, then the dealer's insurer shall be the primary insurer and the permitted user's insurer shall be the secondary insurer.When a permitted user  is "test driving" a new     vehicle dealer's automobile, the new vehicle dealer's insurance shall be primary and the permitted user's insurance shall be secondary.As used in this paragraph 6, a "permitted user" is a     person who, with the permission of the new vehicle dealer or an employee of the new vehicle dealer, drives a vehicle owned and held for sale or lease by the new vehicle dealer which the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle. The term "permitted user" also includes a person who, with the permission of the new vehicle dealer, drives a vehicle owned or held for sale or lease by the new vehicle dealer for loaner purposes while the user's vehicle is being repaired or evaluated.As used in this paragraph 6, "test driving" occurs     when a permitted user who, with the permission of the new vehicle dealer or an employee of the new vehicle dealer, drives a vehicle owned and held for sale or lease by a new vehicle dealer that the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle.As used in this paragraph 6, "loaner purposes" means     when a person who, with the permission of the new vehicle dealer, drives a vehicle owned or held for sale or lease by the new vehicle dealer while the user's vehicle is being repaired or evaluated.7. (A) An application for a new motor vehicle     dealer's license shall be accompanied by the following license fees:(i) $1,000 for applicant's established place of         business, and $100 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the license fee shall be $500 for applicant's established place of business plus $50 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that the application is denied by the Secretary of State. All moneys received by the Secretary of State as license fees under this subparagraph (i) prior to applications for the 2004 licensing year shall be deposited into the Motor Vehicle Review Board Fund and shall be used to administer the Motor Vehicle Review Board under the Motor Vehicle Franchise Act.  Of the money received by the Secretary of State as license fees under this subparagraph (i) for the 2004 licensing year and thereafter, 10% shall be deposited into the Motor Vehicle Review Board Fund and shall be used to administer the Motor Vehicle Review Board under the Motor Vehicle Franchise Act and 90% shall be deposited into the General Revenue Fund.(ii) Except for dealers selling 25 or fewer         automobiles or as provided in subsection (h) of Section 5-102.7 of this Code, an Annual Dealer Recovery Fund Fee in the amount of $500 for the applicant's established place of business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the fee shall be $250 for the applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. For a license renewal application, the fee shall be based on the amount of automobiles sold in the past year according to the following formula:(1) $0 for dealers selling 25 or less             automobiles;(2) $150 for dealers selling more than 25 but             less than 200 automobiles;(3) $300 for dealers selling 200 or more             automobiles but less than 300 automobiles; and(4) $500 for dealers selling 300 or more             automobiles.License fees shall be returnable only in the         event that the application is denied by the Secretary of State.  Moneys received under this subparagraph (ii) shall be deposited into the Dealer Recovery Trust Fund.(B) An application for a new vehicle dealer's     license, other than for a new motor vehicle dealer's license, shall be accompanied by the following license fees:(i) $1,000 for applicant's established place of         business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the license fee shall be $500 for applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains.  License fees shall be returnable only in the event that the application is denied by the Secretary of State.  Of the money received by the Secretary of State as license fees under this subparagraph (i) for the 2004 licensing year and thereafter, 95% shall be deposited into the General Revenue Fund.(ii) Except as provided in subsection (h) of         Section 5-102.7 of this Code, an Annual Dealer Recovery Fund Fee in the amount of $500 for the applicant's established place of business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the fee shall be $250 for the applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that the application is denied by the Secretary of State.  Moneys received under this subparagraph (ii) shall be deposited into the Dealer Recovery Trust Fund.8. A statement that the applicant's officers,     directors, shareholders having a 10% or greater ownership interest therein, proprietor, a partner, member, officer, director, trustee, manager or other principals in the business have not committed in the past 3 years any one violation as determined in any civil, criminal or administrative proceedings of any one of the following Acts:(A) The Anti-Theft Laws of the Illinois Vehicle         Code;(B) The Certificate of Title Laws of the Illinois         Vehicle Code;(C) The Offenses against Registration and         Certificates of Title Laws of the Illinois Vehicle Code;(D) The Dealers, Transporters, Wreckers and         Rebuilders Laws of the Illinois Vehicle Code;(E) Section 21-2 of the Criminal Code of 1961 or         the Criminal Code of 2012, Criminal Trespass to Vehicles; or(F) The Retailers' Occupation Tax Act.9. A statement that the applicant's officers,     directors, shareholders having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager or other principals in the business have not committed in any calendar year 3 or more violations, as determined in any civil, criminal or administrative proceedings, of any one or more of the following Acts:(A) The Consumer Finance Act;(B) The Consumer Installment Loan Act;(C) The Retail Installment Sales Act;(D) The Motor Vehicle Retail Installment Sales         Act;(E) The Interest Act;(F) The Illinois Wage Assignment Act;(G) Part 8 of Article XII of the Code of Civil         Procedure; or(H) The Consumer Fraud Act.9.5. A statement that, within 10 years of     application,   each officer, director, shareholder having a     10% or greater ownership interest therein, proprietor,     partner, member, officer, director, trustee, manager, or     other principal in the business of the applicant has not committed, as determined     in any civil, criminal, or administrative proceeding, in     any calendar year one or more     forcible felonies under the Criminal Code of 1961 or the     Criminal Code of 2012, or a violation of either or both Article 16 or 17 of the Criminal Code of 1961 or a violation of either or both Article 16 or 17  of the Criminal Code of 2012,  Article 29B of the Criminal Code of 1961 or the Criminal Code of 2012, or a similar out-of-state offense.     For the purposes of this paragraph, "forcible felony" has     the meaning provided in Section 2-8 of the Criminal Code     of 2012.10. A bond or certificate of deposit in the amount of     $50,000 for each location at which the applicant intends to act as a new vehicle dealer.  The bond shall be for the term of the license, or its renewal, for which application is made, and shall expire not sooner than December 31 of the year for which the license was issued or renewed.  The bond shall run to the People of the State of Illinois, with surety by a bonding or insurance company authorized to do business in this State.  It shall be conditioned upon the proper transmittal of all title and registration fees and taxes (excluding taxes under the Retailers' Occupation Tax Act) accepted by the applicant as a new vehicle dealer.11. Such other information concerning the business of     the applicant as the Secretary of State may by rule or regulation prescribe.12. A statement that the applicant understands     Chapter 1 through Chapter 5 of this Code.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 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, and2. Such person shall maintain an established place of     business as defined in this Act.(e) The Secretary of State shall, within a reasonable time after  receipt, examine an application submitted to him  under this Section and  unless he  makes a determination that the application submitted to him  does not conform with the requirements of this Section or that grounds  exist for a denial of the application, under Section 5-501 of this  Chapter, grant the applicant an original new vehicle dealer's license in  writing for his  established place of business and a supplemental license  in writing for each additional place of business in such form as he may  prescribe by rule or regulation which shall include the following:1. The name of the person licensed;2. If a corporation, the name and address of its     officers or if a sole proprietorship, a partnership, an unincorporated association or any similar form of business organization, the name and address of the proprietor or of each partner, member, officer, director, trustee or manager;3. In the case of an original license, the     established place of business of the licensee;4. In the case of a supplemental license, the     established place of business of the licensee and the additional place of business to which such supplemental license pertains;5. The make or makes of new vehicles which the     licensee is licensed to sell;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 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; and6. 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) If a licensee under this Section voluntarily surrenders a license to the Illinois Secretary of State Police or a representative of the Secretary of State Vehicle Services Department due to the licensee's inability to adhere to recordkeeping provisions, or the inability to properly issue certificates of title or registrations under this Code, or the Secretary revokes a license under this Section, then the licensee and the licensee's agent, designee, or legal representative, if applicable, may not be named on a new application for a licensee under this Section or under this Chapter, nor is the licensee or the licensee's agent, designee, or legal representative permitted to work for another licensee under this Chapter in a recordkeeping, management, or financial position or as an employee who handles certificate of title and registration documents and applications. (Source: P.A. 101-505, eff. 1-1-20; 102-154, eff. 1-1-22.)