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Bill

HB 2751

To grant Mason County and the Town of Henderson special district excise taxes.

2025 Regular Session Introduced by Bill Anderson and 10 co-sponsors

Strengthens Illinois action against unlicensed car dealers with higher penalties, VIN-based vehicle removals, and a task force to boost enforcement and protect buyers.

To House Finance
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Bill Summary · HB 2751

Summary — HB 2751 (Public Act 104-0063) — Illinois Vehicle Code: Unlicensed Motor Vehicle Dealers

Status: Enrolled as Public Act 104‑0063 — Governor approved 8/1/2025; effective date January 1, 2026.

Purpose

Amends the Illinois Vehicle Code to strengthen enforcement against unlicensed motor vehicle dealers, close common evasion methods (including out‑of‑state licensure and internet sales), increase administrative penalties, authorize additional vehicle removals, and create a short‑term enforcement task force to evaluate and recommend further actions.

Key provisions

  • New authority to remove vehicles displayed for sale or transfer that have a vehicle identification number (VIN) that is destroyed, removed, covered, altered, or defaced — removal may be authorized by the law enforcement agency having jurisdiction (amendment to 625 ILCS 5/4‑203).
  • Prohibits motor vehicle dealers (or persons acting as dealers) from parking vehicles primarily for the purpose of displaying them for sale or transfer on:
    • public streets or highways;
    • public parking lots;
    • other public property; or
    • private property that the public may lawfully drive on.
  • Creates the Unlicensed Motor Vehicle Dealer Enforcement Task Force (new 625 ILCS 5/5‑110) within the Secretary of State’s Office to:
    • review state enforcement activities against unlicensed dealers;
    • recommend consumer protection measures for buyers from unlicensed sellers (including sellers using out‑of‑state licenses to evade Illinois licensing);
    • identify and investigate violators, with focus on internet retail sales;
    • explore collection of ORO (tax, license, title) revenue due the State;
    • recommend enhanced penalties and enforcement tools; and
    • address issues such as renting dealer plates and auction authority.
    • Task Force composition: members from Secretary of State’s Office (3), Department of Revenue (3), Attorney General’s Office (3), automobile dealers (3, at least 2 non‑franchised), and one auction/credentialing firm representative. It must meet at least 4 times, report to the General Assembly by December 31, 2026, and will be dissolved January 1, 2027.
  • Licensing and administrative enforcement:
    • A motor vehicle license may be denied, suspended, or revoked if the licensee has offered for private sale a motor vehicle from the licensee’s or an exhibitor’s inventory.
    • Authorizes the Secretary of State to issue and serve an immediate cease‑and‑desist order (with notice of right to contest before the Secretary of State’s Department of Administrative Hearings) where there is reasonable cause to believe someone is conducting a regulated business without required licensing.
  • Increased administrative penalties: raises certain penalties from $50 per violation to a range of at least $1,000 up to $3,000 per violation.

Who is affected

  • Unlicensed sellers offering vehicles in Illinois (including businesses using out‑of‑state licenses or internet marketplaces).
  • Licensed motor vehicle dealers (restrictions on public displays and stricter grounds for discipline).
  • Consumers purchasing vehicles (greater protections and enforcement intended).
  • State agencies: Secretary of State, Department of Revenue, Attorney General — increased enforcement, coordination, and reporting responsibilities.
  • Towing services and law enforcement (expanded removal authority for vehicles with altered/defaced VINs or illegally displayed for sale).

Enforcement, timeline, and procedural notes

  • Effective date: January 1, 2026.
  • Task Force: appointments made after the effective date; required report by December 31, 2026; dissolved January 1, 2027.
  • The act authorizes immediate administrative action (cease‑and‑desist, higher fines) once effective; affected parties retain administrative hearing rights.

This Act is intended to curb fraudulent or evasive vehicle sales practices, improve consumer protections, recover state revenue owed on vehicle transactions, and provide state agencies with stronger enforcement tools.

Compiled from official sources — confirm details with the bill’s official record.

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