It is my great pleasure to serve this year as your 2025 IADA chairman. On behalf of your IADA officers and board members, you can be assured the Illinois Automobile Dealers Association (IADA) continues to lead the charge in protecting and advocating for franchised auto dealers across Illinois. This spring, our unwavering commitment to preserving the integrity of Illinois’ franchise system remains front and center as we focus on three critical legislative priorities:

1. Updating the Illinois Motor Vehicle Franchise Act — Senate Bill 1939

IADA is advancing targeted amendments to strengthen the franchise system and protect dealers from manufacturer overreach.

Key Proposals:

• Direct Sales (Scout Issue): Explicitly prohibit legacy manufacturers from bypassing franchisees through direct sales or new “affiliate” or “common entity” and prevent OEMs from spinning off affiliates to sell directly, protecting established dealer networks.
• Right of First Refusal (ROFR): IADA proposes to ban the ROFR unless the manufacturer can show (1) that the buyer is not qualified or (2) that it is exercising ROFR to direct the sale to a minority purchaser as part of a bona fide affirmative action program.
• Warranty Reimbursement Protections: Strengthen protections to ensure dealers are fairly compensated for labor, parts and costly repairs like EV batteries. Clarify claims processes and ban arbitrary caps or delays imposed by manufacturers.

These updates are essential to preserving consumer access to competitive, locally operated dealerships and reinforcing the franchise model as a cornerstone of Illinois’ economy.

Dealer advocacy is vital — use our IADA “Action Center” on our website at illinoisdealers.com/action-center for the easiest way to send our prepared message to your respective legislator

2. Increasing the Documentary Service Fee (DOC Fee)

To address rising operational and compliance costs, IADA is proposing an increase in the statutory DOC fee from $367.70 to $470.

Why This Matters:

• Dealers have already been struck by the new $1,000 cap on the Retailers’ Collection Allowance, costing the industry an estimated $45-50 million annually. This increase would help offset these losses and rising regulatory costs.
• In 2023, Illinois dealers collected $2.9 billion in sales tax, representing a vital revenue source for the state. Adjusting the DOC fee ensures dealerships can sustain these contributions while remaining compliant with state and federal mandates.

3. Fighting Harmful Legislation

IADA remains vigilant in opposing legislation that could negatively impact Illinois franchise dealers.

Key Concerns:

• California EV Mandates: Blocking efforts to impose California-style EV policies that could undermine dealer operations.
• OEM Encroachments: Preventing overreach from manufacturers that threaten the franchise system.
• Increased Business Overregulation: Stopping excessive or redundant regulations that could burden dealership operations, increase costs and divert resources from serving customers and supporting employees.

IADA’s commitment is to protect dealers from policies that could harm their ability to operate efficiently, compete effectively and contribute to Illinois’ economy.

Looking Ahead

As the spring session progresses, IADA will continue to advocate for the interests of Illinois franchised auto dealers, ensuring their voices are heard and their rights protected. Watch for updates on these initiatives and more.

Your participation is key to our success. Together, we can preserve and strengthen Illinois’ vital franchise dealer network.