Illinois 2023-2024 Regular Session

Illinois House Bill HB4925 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0839
2	1		HB4925 EnrolledLRB103 37949 SPS 68081 b HB4925 Enrolled LRB103 37949 SPS 68081 b
3	2		HB4925 Enrolled LRB103 37949 SPS 68081 b
4		-	AN ACT concerning business.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Motor Vehicle Franchise Act is amended by
8		-	changing Section 10.1 as follows:
9		-	(815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1)
10		-	Sec. 10.1. (a) As used in this Section, "motorcycle" means
11		-	every motor vehicle having a seat or saddle for the use of the
12		-	rider and designed to travel with 3 or less wheels in contact
13		-	with the ground, excluding farm, garden, and lawn equipment,
14		-	and including off-highway vehicles.
15		-	(b) It shall be deemed a violation for a manufacturer, a
16		-	distributor, a wholesaler, a distributor branch or division,
17		-	or officer, agent, or other representative thereof:
18		-	(1) To require a motorcycle franchisee to participate
19		-	in a retail financing plan or retail leasing plan or to
20		-	participate in any retail consumer insurance plan.
21		-	(2) To own, to operate or to control any motorcycle
22		-	dealership in this State for a period longer than 2 years.
23		-	(3) (Blank).
24		-	(4) To require a motorcycle dealer to utilize
25		-	manufacturer approved floor fixtures for the display of
26		-	any product that is not a product of the manufacturer.
	3	+	1 AN ACT concerning business.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Motor Vehicle Franchise Act is amended by
	7	+	5 changing Section 10.1 as follows:
	8	+	6 (815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1)
	9	+	7 Sec. 10.1. (a) As used in this Section, "motorcycle" means
	10	+	8 every motor vehicle having a seat or saddle for the use of the
	11	+	9 rider and designed to travel with 3 or less wheels in contact
	12	+	10 with the ground, excluding farm, garden, and lawn equipment,
	13	+	11 and including off-highway vehicles.
	14	+	12 (b) It shall be deemed a violation for a manufacturer, a
	15	+	13 distributor, a wholesaler, a distributor branch or division,
	16	+	14 or officer, agent, or other representative thereof:
	17	+	15 (1) To require a motorcycle franchisee to participate
	18	+	16 in a retail financing plan or retail leasing plan or to
	19	+	17 participate in any retail consumer insurance plan.
	20	+	18 (2) To own, to operate or to control any motorcycle
	21	+	19 dealership in this State for a period longer than 2 years.
	22	+	20 (3) (Blank).
	23	+	21 (4) To require a motorcycle dealer to utilize
	24	+	22 manufacturer approved floor fixtures for the display of
	25	+	23 any product that is not a product of the manufacturer.
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33		-	(5) To require a motorcycle dealer to purchase
34		-	lighting fixtures that are to be installed in the
35		-	dealership only from the manufacturer's approved vendors.
36		-	(6) To require a motorcycle dealer to relocate to a
37		-	new or alternate facility.
38		-	(7) To coerce or require any motorcycle dealer to
39		-	construct improvements to the dealer's facility at a
40		-	substantial cost to the dealer or to condition any
41		-	motorcycle dealer's eligibility for payments under any
42		-	discount, credit, rebate, sales incentive, or similar
43		-	program on the dealer constructing improvements to the
44		-	dealer's facility at a substantial cost to the dealer. As
45		-	used in this paragraph (7), "substantial cost" means an
46		-	amount equal to or greater than 10% of a motorcycle
47		-	dealer's average annual net profits for the 3 years
48		-	preceding the proposed improvements to that dealer's
49		-	facility.
50		-	Whenever any motorcycle dealer enters into a franchise
51		-	agreement, evidenced by a contract, with a wholesaler,
52		-	manufacturer, or distributor wherein the franchisee agrees to
53		-	maintain an inventory and the contract is terminated by the
54		-	wholesaler, manufacturer, distributor, or franchisee, then the
55		-	franchisee may require the repurchase of the inventory as
56		-	provided for in this Act. If the franchisee has any
57		-	outstanding debts to the wholesaler, manufacturer, or
58		-	distributor, then the repurchase amount may be credited to the
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	34	+	1 (5) To require a motorcycle dealer to purchase
	35	+	2 lighting fixtures that are to be installed in the
	36	+	3 dealership only from the manufacturer's approved vendors.
	37	+	4 (6) To require a motorcycle dealer to relocate to a
	38	+	5 new or alternate facility.
	39	+	6 (7) To coerce or require any motorcycle dealer to
	40	+	7 construct improvements to the dealer's facility at a
	41	+	8 substantial cost to the dealer or to condition any
	42	+	9 motorcycle dealer's eligibility for payments under any
	43	+	10 discount, credit, rebate, sales incentive, or similar
	44	+	11 program on the dealer constructing improvements to the
	45	+	12 dealer's facility at a substantial cost to the dealer. As
	46	+	13 used in this paragraph (7), "substantial cost" means an
	47	+	14 amount equal to or greater than 10% of a motorcycle
	48	+	15 dealer's average annual net profits for the 3 years
	49	+	16 preceding the proposed improvements to that dealer's
	50	+	17 facility.
	51	+	18 Whenever any motorcycle dealer enters into a franchise
	52	+	19 agreement, evidenced by a contract, with a wholesaler,
	53	+	20 manufacturer, or distributor wherein the franchisee agrees to
	54	+	21 maintain an inventory and the contract is terminated by the
	55	+	22 wholesaler, manufacturer, distributor, or franchisee, then the
	56	+	23 franchisee may require the repurchase of the inventory as
	57	+	24 provided for in this Act. If the franchisee has any
	58	+	25 outstanding debts to the wholesaler, manufacturer, or
	59	+	26 distributor, then the repurchase amount may be credited to the
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60	61
61		-	franchisee's account. The franchise agreement shall either
62		-	expressly or by operation of law have as part of its terms a
63		-	security agreement whereby the wholesaler, manufacturer, or
64		-	distributor agrees to and does grant a security interest to
65		-	the motorcycle dealer in the repurchased inventory to secure
66		-	payment of the repurchase amount to the dealer. The
67		-	perfection, priority, and other matters relating to the
68		-	security interest shall be governed by Article 9 of the
69		-	Uniform Commercial Code. The provisions of this Section shall
70		-	not be construed to affect in any way any security interest
71		-	that any financial institution, person, wholesaler,
72		-	manufacturer, or distributor may have in the inventory of the
73		-	motorcycle dealer.
74		-	(c) The provisions of this Section 10.1 are applicable to
75		-	all new or existing motorcycle franchisees and franchisers and
76		-	are in addition to the other rights and remedies provided in
77		-	this Act, and, in the case of a conflict with other provisions
78		-	contained in this Act, with respect to motorcycle franchises,
79		-	this Section shall be controlling.
80		-	(d) The filing of a timely protest by a motorcycle
81		-	franchise before the Motor Vehicle Review Board as prescribed
82		-	by Sections 12 and 29 of this Act, shall stay the effective
83		-	date of a proposed additional franchise or selling agreement,
84		-	or the effective date of a proposed motorcycle dealership
85		-	relocation, or the effective date of a cancellation,
86		-	termination, or modification, or extend the expiration date of
87	62
88	63
89		-	a franchise or selling agreement by refusal to honor
90		-	succession to ownership or refusal to approve a sale or
91		-	transfer pending a final determination of the issues in the
92		-	hearing.
93		-	(Source: P.A. 100-863, eff. 8-14-18.)
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	70	+	1 franchisee's account. The franchise agreement shall either
	71	+	2 expressly or by operation of law have as part of its terms a
	72	+	3 security agreement whereby the wholesaler, manufacturer, or
	73	+	4 distributor agrees to and does grant a security interest to
	74	+	5 the motorcycle dealer in the repurchased inventory to secure
	75	+	6 payment of the repurchase amount to the dealer. The
	76	+	7 perfection, priority, and other matters relating to the
	77	+	8 security interest shall be governed by Article 9 of the
	78	+	9 Uniform Commercial Code. The provisions of this Section shall
	79	+	10 not be construed to affect in any way any security interest
	80	+	11 that any financial institution, person, wholesaler,
	81	+	12 manufacturer, or distributor may have in the inventory of the
	82	+	13 motorcycle dealer.
	83	+	14 (c) The provisions of this Section 10.1 are applicable to
	84	+	15 all new or existing motorcycle franchisees and franchisers and
	85	+	16 are in addition to the other rights and remedies provided in
	86	+	17 this Act, and, in the case of a conflict with other provisions
	87	+	18 contained in this Act, with respect to motorcycle franchises,
	88	+	19 this Section shall be controlling.
	89	+	20 (d) The filing of a timely protest by a motorcycle
	90	+	21 franchise before the Motor Vehicle Review Board as prescribed
	91	+	22 by Sections 12 and 29 of this Act, shall stay the effective
	92	+	23 date of a proposed additional franchise or selling agreement,
	93	+	24 or the effective date of a proposed motorcycle dealership
	94	+	25 relocation, or the effective date of a cancellation,
	95	+	26 termination, or modification, or extend the expiration date of
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	106	+	1 a franchise or selling agreement by refusal to honor
	107	+	2 succession to ownership or refusal to approve a sale or
	108	+	3 transfer pending a final determination of the issues in the
	109	+	4 hearing.
	110	+	5 (Source: P.A. 100-863, eff. 8-14-18.)
	111	+
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