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Still no movement by Quinn on HB 880

August 19, 2011
Illinois Gov. Pat Quinn had no acted by Aug. 18 on legislation to create the Dealer Recovery Trust Fund, to help people harmed by dealerships that close without settling liens on trade-ins.
Quinn faces an Aug. 28 deadline to sign or veto House Bill 880. If he does not act on it, the bill becomes law. Illinois’s 60-day period for the governor to consider legislation is by far the lengthiest in the nation.
The trust fund would be endowed by adding $500 to the price of an annual license for a dealer’s established place of business and $50 for each additional place of business. The secretary of state’s office currently counts 895 new-vehicle dealers, 2,831 used-car dealers, and 771 motorcycle dealers, meaning the fund would collect more than $2.2 million in its first year.
The legislation provides that when the fund balance reaches $3.5 million as of Aug. 31, collection of the fee would be suspended the following year for dealers who did not have a claim paid from the fund.
Consumers and dealers would be eligible to file a claim against the fund if they purchase a vehicle on or after Oct. 1, 2011, from a dealer who goes out of business without satisfying a trade-in lien. A claim could not exceed $35,000.