IL SB2571

Creates a Dealer Recovery Trust Fund to reimburse consumers harmed by dealership closures, funded by annual fees from licensed vehicle dealers beginning October 1, 2011.

Establishes a three-member Dealer Recovery Trust Fund Board consisting of the Secretary of State (chair), Attorney General (secretary), and one representative of new and independent Illinois automobile dealers, with authority to approve claims by two-thirds majority vote.

Allows retail customers and dealers to claim reimbursement for unpaid liens on trade-in vehicles or undisclosed liens on purchased vehicles from dealers who subsequently file bankruptcy or have their license revoked, with maximum award of $35,000 per claim.

Requires dealers to pay annual fees remitted directly to the Fund (outside state treasury), with the Secretary of State revoking licenses of non-paying dealers and suspending fee collection when the Fund balance exceeds $3,500,000 for compliant dealers.

Prohibits the Fund from paying claims until the balance exceeds $500,000 and allows the Board to reduce awards pro rata if Fund balance is insufficient or if claims against one dealer exceed 33% of the Fund balance.