Section 1020.10 Dealers Established Place of Business

Section 1020

Section 1020.10  Dealers

Established Place of Business

a)         Each person or entity seeking to be or already duly licensed

as a new or used vehicle dealer under the Illinois Vehicle Code (IVC) [625 ILCS

5] shall maintain an established place of business that shall, in addition to

those requirements in IVC Section 5-100, meet the following requirements:

1)         Have office facilities in a building for maintaining and

keeping books and records as are required.  The office facilities shall be

permanently mounted on a fixed foundation and may not include a trailer with

axle attached and still moveable.  It may include, however, a house trailer in

a licensed mobile home park or dealership lot with tires removed and utilities

attached.

2)         Be properly and permanently equipped with the necessary office

equipment and machines and documents and papers adequate to properly conduct

business as a dealer and must be within a permanent building or structure as required

in subsection (a)(1).

3)         Be equipped with an operating telephone for inbound and

outbound calls, have the business telephone number published in the telephone

directory generally available in the dealership area, and be adequately

equipped with operating

electricity and adequate

lighting

.

4)         Have the name of the dealership posted on the front entrance

door.

5)         Have posted on the front entrance door a sign setting forth

the days and regular, reasonable hours when open for business.  A dealership

shall not be deemed as being open for business unless at least one employee,

who is able to conduct regular business, is on the premises and available to

the public.  The dealership must be operated consistent with general dealer

practices.  The dealership must be open for business at least 5 days out of

each 7 days in a week, and a minimum of 4 consecutive hours per day

siness.  A dealership

shall not be deemed as being open for business unless at least one employee,

who is able to conduct regular business, is on the premises and available to

the public.  The dealership must be operated consistent with general dealer

practices.  The dealership must be open for business at least 5 days out of

each 7 days in a week, and a minimum of 4 consecutive hours per day.  However,

dealers who operate their dealerships less than 12 months shall state in the

license application those months in which the dealership is closed and shall

not be required to maintain regular business hours during the period of

closure.  The months of closure shall also be posted in a prominent place for

the public to see in the dealership office.

6)         Maintain a lot (the area not occupied by a building) that

shall be surfaced with rock or better surface material, and that shall be

properly illuminated, if open after sundown, so that vehicles for sale can be

properly inspected by any prospective customer.

A)        The lot used for sale of vehicles shall be separate and apart

from any other business.  In addition, if a dealer is selling both new and used

cars, the new cars shall be parked separately and apart from used cars.

B)        The lot requirement described in this subsection (a)(6) shall

not be applicable if the place of business has an indoor showroom, properly

illuminated, for the display of vehicles held for sale.

C)        The separate lot requirement specified in subsection (a)(6)(A)

shall not prohibit the operation by the dealer of other businesses on the same

premises, which shall include the lot, provided that the businesses are

reasonably related to the sale or operation of new or used automobiles, if the

sale of new or used automobiles constitutes at least 50% of the gross revenues

of the license holder

The separate lot requirement specified in subsection (a)(6)(A)

shall not prohibit the operation by the dealer of other businesses on the same

premises, which shall include the lot, provided that the businesses are

reasonably related to the sale or operation of new or used automobiles, if the

sale of new or used automobiles constitutes at least 50% of the gross revenues

of the license holder.  Businesses reasonably related to the sale or operation

of new or used automobiles shall include only the sale of automobile parts and

accessories, the sale of gasoline, diesel fuel, oil and lubricant, the sale of

automobile tires, the leasing of automobiles, the insuring automobiles, and the

financing of automobiles sold by the licensed dealers engaged in these businesses.

Licensed dealers engaged in operating businesses other than those stated in

this subsection (a)(6)(C) shall remove unauthorized businesses or modify them

to comply with this Section within 60 days after notification by the Secretary

of State or be subject to the revocation or suspension of their dealer's

license.

7)         Dealership in a Department Store − When a dealer

maintains a place of business within a department store, the dealership shall

be separated from other operations of the department store.

8)         Sign – Display a permanent sign bearing the name of the

dealership, which shall be properly illuminated if open after sundown and which

shall be visible from the highway, as defined at IVC Section 1-126, leading to

the established place of business.

9)         Display a federally required pricing document on all new motor

vehicles held for sale.

10)         If the premises are leased, the lease must be for at least

the duration of the current licensed period

, which shall be properly illuminated if open after sundown and which

shall be visible from the highway, as defined at IVC Section 1-126, leading to

the established place of business.

9)         Display a federally required pricing document on all new motor

vehicles held for sale.

10)         If the premises are leased, the lease must be for at least

the duration of the current licensed period.

b)         Supplemental Lots

An Illinois

licensed dealer may operate as an additional place of business, a permanent

supplemental lot that meets all the requirements of subsection (a), except the

records required to be kept shall be maintained at the principal place of

business of the dealership, as defined by IVC Section 1-164, unless the

supplemental lot is more than one mile from the main dealership.  The one mile

shall be measured by the most direct road between the dealership and the

supplemental lot.

1)         A licensed dealer shall apply for the supplemental lot

authorization when filing the application required by IVC Section 5-101 or

5-102 or filing an application to add a supplemental lot during the license

period.

2)         The

licensed dealer shall pay the

fee for a license to operate a supplemental lot as provided in IVC Sections

5-101(b)(7) and 5-102(b)(5).

3)         No vehicle sales at supplemental lots shall be allowed on

Sundays except as provided for in IVC Section 5-106.

c)         Trade Show Exhibition, Display Exhibition and

Off-site

Sale

A licensed

dealer may operate an additional place of business at an exhibition area in a

trade show exhibition, display exhibition or

off-site

sale, provided:

1)         The trade show exhibition, display exhibition, or

off-site

sale must be conducted separately and away

from the licensed dealer's established and additional places of business.

2)         The licensed dealer has a currently valid new or used vehicle

dealer's license issued by the Secretary of State of Illinois or another state

where applicable

ay exhibition or

off-site

sale, provided:

1)         The trade show exhibition, display exhibition, or

off-site

sale must be conducted separately and away

from the licensed dealer's established and additional places of business.

2)         The licensed dealer has a currently valid new or used vehicle

dealer's license issued by the Secretary of State of Illinois or another state

where applicable.

3)         The applicant dealer meets the requirements of subsection

(c)(7), (8) or (9).

4)         No permit granted for an additional location in a trade show

exhibition, display exhibition or

off-site

sale may be transferred or removed to another location.

5)         Regardless of the dates of the trade show exhibition, display

exhibition, or

off-site

sale, no vehicle sales

will be allowed on Sunday except as provided for in IVC Section 5-106.

6)         The licensed dealer has provided the Secretary of State with a

copy of:

A)        the written contract with the agency, person, or other entity

sponsoring, creating, or supervising the trade show exhibition, display

exhibition, or

off-site

sale; and

B)        an application for the trade show exhibition, display

exhibition, or

off-site

sale permit:

i)          containing the name of the dealership, its license number,

the location, and dates of the trade show exhibition, display exhibition, or off-site

sale; and

ii)

containing the signature of

the licensed dealer.

7)         Trade Show Exhibitions

A)        A permit for an additional location granted for a trade show

exhibition shall in no event be valid for more than 30 days from the date of

the first day of the trade show exhibition for which it is granted.

B)        The fee for a permit to operate in a trade show exhibition

shall be $10.00 per permit.

C)        No vehicles may be offered for sale

ler.

7)         Trade Show Exhibitions

A)        A permit for an additional location granted for a trade show

exhibition shall in no event be valid for more than 30 days from the date of

the first day of the trade show exhibition for which it is granted.

B)        The fee for a permit to operate in a trade show exhibition

shall be $10.00 per permit.

C)        No vehicles may be offered for sale.

D)        Each trade show exhibition must have a minimum of three

licensed participants, at least two of whom must be licensed under IVC Section

5-101 or 5-102, who all meet the requirements in subsections (c)(1) through

(6).

E)        A trade show exhibition of new vehicles shall only have

participants licensed as new vehicle dealers, at least two of whom must be

licensed under IVC Section 5-101 and meet the requirements in subsections

(c)(1) through (6).

8)         Display Exhibitions

A)        Only a new or used vehicle dealer licensed under IVC Section

5-101 or 5-102, who also meets the requirements of subsections (c)(1) through

(6), may participate in a display exhibition.

B)        A permit for an additional location granted for a display

exhibition shall in no event be valid for more than 30 days from the date of

the first day of the display exhibition for which it is granted.

C)        The fee for a permit to operate in a display exhibition shall

be $10.00 per permit.

D)        No vehicles may be offered for sale.

9)

Off-Site

Sales

A)        Only a dealer licensed under IVC Section 5-101 or 5-102, who

also meets the requirements of subsections (c)(1) through (6), may conduct an

off-site

sale.

B)        The

off-site

sale must not be

conducted out of the licensed dealer's relevant market area, as defined in IVC Section

5-100.  This does not apply to

off-site

sales

of motor homes or recreational vehicles

.

9)

Off-Site

Sales

A)        Only a dealer licensed under IVC Section 5-101 or 5-102, who

also meets the requirements of subsections (c)(1) through (6), may conduct an

off-site

sale.

B)        The

off-site

sale must not be

conducted out of the licensed dealer's relevant market area, as defined in IVC Section

5-100.  This does not apply to

off-site

sales

of motor homes or recreational vehicles.

C)        A permit for an additional location granted for an

off-site

sale shall in no event be valid for more

than 7 days from the date of the first day of the

off-site

sale for which it is granted.

D)        The fee for a permit to operate an

off-site

sale shall be $25 per permit.

d)         Each person seeking to be or already duly licensed as a scrap

processor, automotive parts recycler, rebuilder, repairer or out-of-state

salvage buyer under the IVC shall maintain an established place of business that

meets the requirements of subsection (a), except that no lot as set forth in

subsection (a)(6) is required.  However,

the separate

lot requirement specified in subsection (a)(6)(A) shall apply to the extent

that the lot shall be separate and apart from any other business and,

if

open after sundown, the premises shall be adequately illuminated so that

prospective purchasers may inspect the items held for sale.

e)

Each person seeking to be or already duly registered as a

transporter with the Illinois Commerce Commission shall, as a condition to

issuance and use of in-transit plates, maintain an established place of

business that meets the requirements of subsection (a), except that no lot as

set forth in subsection (a)(6) is required. However:

1)         the

separate lot requirement specified in subsection (a)(6)(A) shall apply to the

extent that the lot shall be separate and apart from any other business; and

2)         if

open after sundown, the premises shall be adequately illuminated to allow for

inspection of the premises or items thereon

ubsection (a), except that no lot as

set forth in subsection (a)(6) is required. However:

1)         the

separate lot requirement specified in subsection (a)(6)(A) shall apply to the

extent that the lot shall be separate and apart from any other business; and

2)         if

open after sundown, the premises shall be adequately illuminated to allow for

inspection of the premises or items thereon.

f)         In

lieu of a criminal complaint, the Secretary of State Department of Police may

issue an administrative citation to a party licensed under IVC Chapter 5 for

any violation of the IVC or any administrative rule adopted by the Secretary

under the IVC.  If an administrative citation is issued, then a minimum of 3

separate violations must be present at the time of the investigation or

inspection and any violations shall result in a $50 penalty per violation.  Any

party that receives an administrative citation that results in a monetary

penalty may either pay the penalty or contest the administrative citation

through the Secretary's administrative hearing process (see 92 Ill. Adm. Code

1000.Subpart A).  If a licensee agrees to pay the administrative citation, the

licensee

no longer has the

ability to contest

the administrative citation through the administrative hearing process.  If a

licensee pays the penalty as a result of an administrative citation but

receives subsequent administrative citations pursuant to a subsequent

investigation or inspection, and the licensee disputes the subsequent

administrative citations through the administrative hearing process, the

Secretary may use any previous administrative citations as evidence to establish

a pattern or habit of violations.  A licensee shall have 90 calendar days after

receiving the administrative citation to either pay the penalty or file a

request for an administrative hearing

pection, and the licensee disputes the subsequent

administrative citations through the administrative hearing process, the

Secretary may use any previous administrative citations as evidence to establish

a pattern or habit of violations.  A licensee shall have 90 calendar days after

receiving the administrative citation to either pay the penalty or file a

request for an administrative hearing. Failure to either pay the administrative

citation or file a timely request for an administrative hearing may result in

the denial of a license renewal until the penalty is paid in full or an

administrative hearing is scheduled to adjudicate the contested administrative

citations.

g)         None of the requirements of this Section shall apply to the

place of business of a vehicle auctioneer licensed under IVC Chapter 5, Article

VII.