Illinois state Senate approves bill to codify e-signatures, home vehicle delivery

The Illinois state Senate last week unanimously approved a bill to codify vehicle home delivery and e-commerce sales procedures, such as collecting electronic signatures, a step forward in attempts by some such as Carvana Co. to update state law.

Senate Bill 1896 passed 57-0 and moved into the Illinois state House, where it is sponsored by state Rep. Anthony DeLuca, a Democrat whose district includes the Chicago Heights suburb and part of Will County.

The bill was referred last week to the chamber's Rules Committee.

The legislation — if also approved by the House and signed into law — would amend the Illinois Vehicle Code, adding text to clearly state that licensed vehicle dealers are permitted to conduct sales, including collecting electronic signatures, via the Internet.

The bill also would stipulate that dealers may deliver vehicles to a customer at their residence, if requested in writing. If a vehicle is delivered to an address other than the licensed dealer's place of business, the date of sale is when the vehicle buyer signs that application, according to the bill.

It was originally filed Feb. 9 in the state Senate by state Sen. Patrick Joyce, a Democrat whose district includes a small segment of south Chicago and the majority of Kankakee County.

"It shows we are on pace to bring the vehicle sales industry into the digital age," Joyce said in a statement to Automotive News. "Not only would this meet the demands of modern consumers, but it would also streamline the car-buying process. Dealers would be able to connect easier with customers and make sales while providing a convenient and secure experience."

In addition, the bill would provide that any documents required by state or federal law to be signed in person may be signed at the time of delivery "without constituting an off-site sale that is subject" to those permit requirements.

Used-vehicle retailer Carvana is a proponent of the bill, as online sales and home delivery are critical to the company's business model.

Joe McMahon, executive director of the Illinois Automobile Dealers Association, told Automotive News in late February the legislation doesn't pertain only to Carvana.

"It amends the vehicle code, which affects all dealerships," McMahon said. "And e-signatures [are] something that would be fine with us."