SB1230sam001 102ND GENERAL ASSEMBLY

Sen. Rachelle Crowe

Filed: 4/16/2021

10200SB1230sam001 LRB102 05041 RAM 25387 a

AMENDMENT TO SENATE BILL 1230

AMENDMENT NO. ______. Amend Senate Bill 1230 by replacing everything after the enacting clause with the following:

"Section 5. The Boat Registration and Safety Act is amended by changing Sections 1-2, 3-7, 3A-1, 3A-3, 3A-4, 3A-5, 3A-7, 3A-8, 3A-10, 3A-11, 3A-12, 3A-14, 3A-15, 3A-16, 3A-17, 3A-18, 3A-19, 3A-21, 3C-4, 4-1, 4-2, 5-3, and 5-13 and the heading of Article IIIA and by adding Sections 3A-0.1, 3A-19.1, 3A-19.2, 3A-19.3, 3A-19.4, and 3A-22 as follows:

(625 ILCS 45/1-2) (from Ch. 95 1/2, par. 311-2)

Sec. 1-2. Definitions. As used in this Act, unless the context clearly requires a different meaning:

"Airboat" means any boat propelled by an engine producing air thrust. "Airboat" does not include ground-effect vessels or air-cushion vehicles (hovercraft).

"Competent" means capable of assisting a skier in case of injury or accident.

"Dealer" means any person who engages in the business of manufacturing, selling, or dealing in, on consignment or otherwise, any number of new watercraft, or 5 or more used watercraft of any make during the year, including any off-highway vehicle dealer or snowmobile dealer or a person licensed as a new or used vehicle dealer who also sells or deals in, on consignment or otherwise, any number of watercraft as defined in this Act.

"Department" means the Department of Natural Resources.

"International regulations" means the International Regulations for Preventing Collisions at Sea, 1972, including annexes currently in force for the United States.

"Leeward" means the side of the vessel's sail that is facing away or sheltered from the wind.

"Lifeboat" means a small boat kept on board a larger boat for use in an emergency.

"Motorboat" or "power-driven vessel" means any vessel propelled by machinery.

"Nonpowered watercraft" or "human-powered watercraft" means watercraft primarily designed to be propelled by human power collected directly from the hands or feet, through the hands with oars, paddles, or poles, or through the feet with pedals and a crank or treadle.

"Operate" means to use, navigate, employ, or otherwise be in actual physical control of a motorboat or vessel.

"Operator" means a person who operates or is in actual physical control of a watercraft.

"Owner" means a person, other than a secured party, having property rights or title to a watercraft. "Owner" includes a person entitled to the use or possession of a motorboat subject to an interest in another person, reserved or created by agreement and securing payment of performance of an obligation. "Owner" does not include a lessee under a lease not intended as security.

"Person" means any individual, firm, corporation, partnership, or association, and any agent, assignee, trustee, executor, receiver, or representative thereof.

"Personal flotation device" or "PFD" means a device that is approved by the Commandant, U.S. Coast Guard, under Part 160 of Title 46 of the Code of Federal Regulations.

"Personal watercraft" means a vessel propelled by a water jet pump or other machinery as its primary source of motive power and designed to be operated by a person sitting, standing, or kneeling on the vessel, rather than within the confines of a hull.

"Recreational boat" means any vessel manufactured or used primarily for noncommercial use; or leased, rented, or chartered to another for noncommercial use.

"Sailboat" or "sailing vessel" means any vessel under sail, so long as the propelling machinery, if fitted, is not being used.

"Sea plane" means any aircraft designed to maneuver on the water.

"Specialty prop-craft" means a vessel that is similar in appearance and operation to a personal watercraft but that is powered by an outboard or propeller driven motor.

"Throwable PFD" has the meaning provided in 33 CFR 175.13.

"Underway" applies to a vessel or watercraft at all times except when it is moored at a dock or anchorage area.

"Use" applies to all vessels on the waters of this State, whether moored or underway.

"Vessel" or "watercraft" means every description of watercraft used or capable of being used as a means of transportation on water, except a seaplane on the water, air mattress or similar device, and boats used for concession rides in artificial bodies of water designed and used exclusively for such concessions.

"Waters of this State" means any water within the jurisdiction of this State.

"Wearable U.S. Coast Guard approved personal flotation device", "wearable U.S. Coast Guard approved PFD", and "wearable PFD" have the meaning provided for "wearable PFD" in 33 CFR 175.13.

"Vessel" or "Watercraft" means every description of watercraft used or capable of being used as a means of transportation on water, except a seaplane on the water, air mattress or similar device, and boats used for concession rides in artificial bodies of water designed and used exclusively for such concessions.

"Motorboat" means any vessel propelled by machinery, whether or not such machinery is the principal source of propulsion, but does not include a vessel which has a valid marine document issued by the Bureau of Customs of the United States Government or any Federal agency successor thereto.

"Non-powered watercraft" means any canoe, kayak, kiteboard, paddleboard, float tube, or watercraft not propelled by sail, canvas, or machinery of any sort.

"Sailboat" means any watercraft propelled by sail or canvas, including sailboards. For the purposes of this Act, any watercraft propelled by both sail or canvas and machinery of any sort shall be deemed a motorboat when being so propelled.

"Airboat" means any boat (but not including airplanes or hydroplanes) propelled by machinery applying force against the air rather than the water as a means of propulsion.

"Dealer" means any person who engages in the business of manufacturing, selling, or dealing in, on consignment or otherwise, any number of new watercraft, or 5 or more used watercraft of any make during the year, including any off-highway vehicle dealer or snowmobile dealer or a person licensed as a new or used vehicle dealer who also sells or deals in, on consignment or otherwise, any number of watercraft as defined in this Act.

"Lifeboat" means a small boat kept on board a larger boat for use in emergency.

"Owner" means a person, other than lien holder, having title to a motorboat. The term includes a person entitled to the use or possession of a motorboat subject to an interest in another person, reserved or created by agreement and securing payment of performance of an obligation, but the term excludes a lessee under a lease not intended as security.

"Waters of this State" means any water within the jurisdiction of this State.

"Person" means an individual, partnership, firm, corporation, association, or other entity.

"Operate" means to navigate or otherwise use a motorboat or vessel.

"Department" means the Department of Natural Resources.

"Competent" means capable of assisting a skier in case of injury or accident.

"Personal flotation device" or "PFD" means a device that is approved by the Commandant, U.S. Coast Guard, under Part 160 of Title 46 of the Code of Federal Regulations.

"Recreational boat" means any vessel manufactured or used primarily for noncommercial use; or leased, rented or chartered to another for noncommercial use.

"Personal watercraft" means a vessel that uses an inboard motor powering a water jet pump as its primary source of motor power and that is designed to be operated by a person sitting, standing, or kneeling on the vessel, rather than the conventional manner of sitting or standing inside the vessel, and includes vessels that are similar in appearance and operation but are powered by an outboard or propeller drive motor.

"Specialty prop-craft" means a vessel that is similar in appearance and operation to a personal watercraft but that is powered by an outboard or propeller driven motor.

"Underway" applies to a vessel or watercraft at all times except when it is moored at a dock or anchorage area.

"Use" applies to all vessels on the waters of this State, whether moored or underway.

(Source: P.A. 97-1136, eff. 1-1-13.)

(625 ILCS 45/3-7) (from Ch. 95 1/2, par. 313-7)

Sec. 3-7. Loss of certificate; certificate correction. Should a certificate of number or registration expiration decal become lost, destroyed, or mutilated beyond legibility, or if the information that is required to be on the certificate has changed, the owner of the watercraft shall make application to the Department for the replacement of the certificate or decal, giving his name, address, and the number of his boat and shall at the same time pay to the Department a fee of $7 $5.

(Source: P.A. 93-32, eff. 7-1-03.)

(625 ILCS 45/Art. IIIA heading)

ARTICLE IIIA. CERTIFICATE OF TITLE, MOTORBOATS AND

SAILBOATS OVER 21 12 FEET IN LENGTH

(625 ILCS 45/3A-0.1 new)

Sec. 3A-0.1. Definitions. As used in this Article:

"Electronic" means electrical, digital, magnetic, optical, or electromagnetic technology, or any other form of technology that entails capabilities similar to these technologies.

"Electronic record" means a record generated, communicated, received, or stored by electronic means for use in an information system or for transmission from one information system to another.

"Electronic signature" means a signature in electronic form attached to or logically associated with an electronic record.

"Junk watercraft" or "scrap watercraft" means a watercraft that has been or is being disassembled, crushed, compressed, flattened, destroyed, or otherwise reduced to a state in which it no longer can be returned to an operable state, or has been branded or assigned as junk or a similar designation by another state or jurisdiction.

"Owner" means a person who holds a certificate of origin, certificate of title, salvage certificate, or junking certificate. However, if a watercraft is the subject of an agreement for the conditional sale or lease thereof with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or if a mortgagor of such a watercraft is entitled to possession, then the conditional vendee or lessee or mortgagor shall be deemed the owner for the purpose of this Article.

"Record" means information that is inscribed, stored, or otherwise fixed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

"Salvage" means a watercraft that has been damaged but may be put back into its original operable state after repair and has not been issued a junking certificate.

"Salvage dealer" means an entity that sells salvage watercraft on behalf of insurance companies and obtains a "salvage dealer" designation through the used dealer application process under Section 5-102 of the Illinois Vehicle Code

"Signature" or "signed" means any symbol executed or adopted, or any security procedure employed or adopted, using electronic means or otherwise, by or on behalf of a person with intent to authenticate a record.

(625 ILCS 45/3A-1) (from Ch. 95 1/2, par. 313A-1)

Sec. 3A-1. Certificate of title required.

(a) Every owner of a watercraft over 21 feet in length required to be numbered by this State and for which no certificate of title has been issued by the Department of Natural Resources shall make application to the Department of Natural Resources for a certificate of title either before or at the same time he next applies for issuance, transfer or renewal of a certificate of number. All watercraft already covered by a number in full force and effect which has been awarded to it pursuant to Federal law is exempt from titling requirements in this Act.

(b) The Department shall not issue, transfer or renew a certificate of number for a watercraft over 21 feet unless a certificate of title has been issued by the Department of Natural Resources or an application for a certificate of title has been delivered to the Department.

(Source: P.A. 100-469, eff. 6-1-18.)

(625 ILCS 45/3A-3) (from Ch. 95 1/2, par. 313A-3)

Sec. 3A-3. Application for first certificate of title.

(a) The application for a the first certificate of title in this State must be made by the owner to the Department of Natural Resources on the form prescribed and must contain:

1. The name, residence and mail address of the owner;

1.5. If available, the email address of the owner;

2. A description of the watercraft so far as the following data exists: Its make, model, year of manufacture, manufacturer's serial number or builder's hull number, length and principal material used in construction;

3. The date of purchase by applicant, the name and address of the person from whom the watercraft was acquired and the names and addresses of any lienholders in the order of their priority and the dates of their security agreements; and

4. Any further information the Department of Natural Resources reasonably requires to identify the watercraft and to enable the Department to determine whether the owner is entitled to a certificate of title and the existence or nonexistence of security interests in the watercraft.

(a-5) The Department shall designate on the prescribed application form a space where the owner of a watercraft may designate a beneficiary to whom ownership of the watercraft shall pass in the event of the owner's death.

(b) If the application refers to a watercraft purchased from a dealer, it must contain the name and address of any lienholder holding a security interest created or reserved at the time of the sale and the date of his security agreement and be signed by the dealer as well as the owner, and the dealer must within 15 days mail or deliver the application to the Department of Natural Resources.

(c) If the application refers to a watercraft last previously registered in another State or country, the application must contain or be accompanied by:

1. Any certificate of title issued by the other State or country; and

2. Any other information and documents the Department of Natural Resources reasonably requires to establish ownership and the existence or nonexistence of security interests.

(d) If the application refers to a new watercraft, it must be accompanied by the Manufacturer's Statement of Origin, or other documents as required and acceptable by the Department of Natural Resources, with such assignments as may be necessary to show title in the applicant.

(e) An application for a certificate of title for any watercraft, whether purchased in Illinois or outside Illinois, and even if previously registered in another state, must be accompanied by either an exemption determination from the Department of Revenue showing that no tax imposed pursuant to the Use Tax Act or the Watercraft Use Tax Law is owed by anyone with respect to that watercraft, or a receipt from the Department of Revenue showing that any tax so imposed has been paid. In the absence of such a receipt for payment or determination of exemption from the Department, no certificate of title shall be issued to the applicant. If, after the issuance of the certificate of title and display certificate of title, the proof of payment of the tax or of nonliability therefor is found to be invalid, the Department of Natural Resources shall revoke the certificate and require that the certificate of title and, when applicable, the display certificate of title be returned to the Department of Natural Resources.

(f) If the application refers to a watercraft sold at public sale by a sheriff, it must be accompanied by the required fee and a bill of sale issued and signed by a sheriff. The bill of sale must identify the new owner's name and address, the year model, make, watercraft identification number, and hull number of the watercraft, the court order authorizing such a sale, if applicable, and the name and address of any lienholders in order of priority, if applicable.

(g) If the application refers to a watercraft for which a court of law determined the ownership, it must be accompanied with a certified copy of such court order and the required fee. The court order must indicate the new owner's name and address, the complete description of the watercraft, if known, the name and address of the lienholder, if any, and must be signed and dated by the judge issuing the order.

(h) If the application refers to a watercraft sold at public auction pursuant to the Labor and Storage Lien (Small Amount) Act, it must be accompanied by an affidavit or affirmation furnished by the Department of Natural Resources along with the documents described in the affidavit or affirmation and the required fee.

(Source: P.A. 91-357, eff. 7-29-99.)

(625 ILCS 45/3A-4) (from Ch. 95 1/2, par. 313A-4)

Sec. 3A-4. Examination of records. The Department of Natural Resources, upon receiving application for a first certificate of title, shall check the identifying description of the watercraft shown in the application against the records required to be maintained by Section 3A-5 of this Article and against the record of stolen and converted watercraft required to be maintained by Section 3A-6 of this Article.

(Source: P.A. 89-445, eff. 2-7-96.)

(625 ILCS 45/3A-5) (from Ch. 95 1/2, par. 313A-5)

Sec. 3A-5. Certificate of title - Issuance - Records.

(a) The Department of Natural Resources shall file each application received and, when satisfied as to its genuineness and regularity, and that no tax imposed by the Use Tax Act or the Watercraft Use Tax Law is owed as evidenced by the receipt for payment or determination of exemption from the Department of Revenue provided for in Section 3A-3 of this Article, and that the applicant is entitled to the issuance of a certificate of title, shall issue a certificate of title.

(b) The Department of Natural Resources shall maintain a record of all certificates of title, junking certificates, and salvage certificates issued under a distinctive title number assigned to the watercraft and, in the discretion of the Department, in any other method determined.

(Source: P.A. 93-840, eff. 7-30-04.)

(625 ILCS 45/3A-7) (from Ch. 95 1/2, par. 313A-7)

Sec. 3A-7. Contents and effect.

(a) Each certificate of title issued by the Department of Natural Resources shall contain:

1. The date issued;

2. The name and address of the owner;

3. The names and addresses of any lienholders, in the order of priority as shown on the application or, if the application is based on a certificate of title, as shown on the certificate;

4. The title number assigned to the watercraft;

5. A description of the watercraft including, so far as the following data exists: its make, model, year of manufacture, registration number, and manufacturer's serial number or, if none, the builder's hull number, length, purchase date, and the principal material used in construction;

6. Any other data the Department of Natural Resources prescribes.

(b) The certificate of title shall contain forms for assignment and warranty of title by the owner, and for assignment and warranty of title by a dealer, and may contain forms for applications for a certificate of title by a transferee, the naming of a lienholder and the assignment or release of the security interest of a lienholder.

(b-5) The Department shall designate on the certificate of title a space where the owner of a watercraft may designate a beneficiary, to whom ownership of the watercraft shall pass in the event of the owner's death.

(c) A certificate of title issued by the Department of Natural Resources is prima facie evidence of the facts appearing on it.

(d) A certificate of title is not subject to garnishment, attachment, execution or other judicial process, but this subsection does not prevent a lawful levy upon the watercraft.

(e) Any certificate of title issued by the Department of Natural Resources is subject to a lien in favor of the State of Illinois for any fees or taxes required to be paid under this Act and as have not been paid, as provided for in this Act.

(Source: P.A. 89-445, eff. 2-7-96.)

(625 ILCS 45/3A-8) (from Ch. 95 1/2, par. 313A-8)

Sec. 3A-8. Presumption of tenancy. When a certificate of title is made out to 2 or more persons a husband and wife with the marital relationship shown on the certificate, it shall be presumed, unless stated otherwise, that the title is held as joint tenants with right of survivorship.

(Source: P.A. 81-1199.)

(625 ILCS 45/3A-10) (from Ch. 95 1/2, par. 313A-10)

Sec. 3A-10. Refusing certificate of title. The Department of Natural Resources shall refuse issuance of a certificate of title if any required fee is not paid or if the Department he has reasonable grounds to believe that:

(a) The applicant is not the owner of the watercraft;

(b) The application contains a false or fraudulent statement; or

(c) The applicant fails to furnish required information or documents or any additional information the Department of Natural Resources reasonably requires;

(d) The applicant has not paid any fees or taxes due under this Act and have not been paid upon reasonable notice and demand.

(Source: P.A. 89-445, eff. 2-7-96.)

(625 ILCS 45/3A-11) (from Ch. 95 1/2, par. 313A-11)

Sec. 3A-11. Lost, stolen or mutilated certificates.

(a) If a certificate of title, junking certificate, or salvage certificate is lost, stolen, mutilated or destroyed or becomes illegible, the first lienholder or, if none, the owner or legal representative of the owner named in the certificate, as shown by the records of the Department of Natural Resources, shall promptly make application for and may obtain a duplicate upon furnishing information satisfactory to the Department of Natural Resources. The duplicate certificate of title shall contain the legend "This is a duplicate certificate and may be subject to the rights of a person under the original certificate." It shall be mailed to the first lienholder named in it or, if none, to the owner.

(b) The Department of Natural Resources shall not issue a duplicate certificate of title to any person within 15 days after the issuance of an original certificate of title to such person.

(c) A person recovering an original certificate of title for which a duplicate has been issued shall promptly surrender the original certificate to the Department of Natural Resources.

(Source: P.A. 89-445, eff. 2-7-96.)

(625 ILCS 45/3A-12) (from Ch. 95 1/2, par. 313A-12)

Sec. 3A-12. Transfer.

(a) If an owner transfers his interest in a watercraft other than by the creation of a security interest, he shall, at the time of the delivery, execute an assignment and warranty of title to the transferee in the space provided therefor on the certificate or as the Department of Natural Resources prescribes and cause the certificate and assignment to be mailed or delivered to the transferee or to the Department of Natural Resources.

(b) Except as provided in Section 3A-14 of this Article, the transferee shall, promptly and within 15 days after delivery to him of the watercraft and the assigned certificate of title or salvage certificate, execute the application for a new certificate of title or salvage certificate in the space provided therefor on the certificate or as the Department of Natural Resources prescribes, and cause the certificate and application to be mailed or delivered to the Department of Natural Resources.

(c) Upon request of the owner or transferee, a lienholder in possession of the certificate of title or salvage certificate shall, unless the transfer was a breach of his security agreement, either deliver the certificate to the transferee for delivery to the Department of Natural Resources or, upon receipt from the transferee of the owner's assignment, the transferee's application for a new certificate and the required fee, mail or deliver them to the Department of Natural Resources. The delivery of the certificate does not affect the rights of the lienholder under his security agreement.

(d) If a security interest is reserved or created at the time of the transfer, the certificate of title or salvage certificate shall be retained by or delivered to the person who becomes the lienholder, and the parties shall comply with the provisions of Section 3B-3 of Article IIIB.

(e) Except as provided in Section 3A-14 of this Article and as between the parties, a transfer by an owner is not effective until the provisions of this Section and Section 3A-16 of this Article have been complied with; however, an owner who has delivered possession of the watercraft to the transferee and has complied with the provisions of this Section and Section 3A-16 of this Article requiring action by him as not liable as owner for any damages thereafter resulting from operation of the watercraft.

(f) The Department of Natural Resources may decline to process any application for a transfer of an interest in a watercraft if any fees or taxes due under this Act from the transferor or the transferee have not been paid upon reasonable notice and demand.

(Source: P.A. 89-445, eff. 2-7-96.)

(625 ILCS 45/3A-14) (from Ch. 95 1/2, par. 313A-14)

Sec. 3A-14. Transfer to or from dealer - Records.

(a) If a dealer buys a watercraft and holds it for resale and procures the certificate of title or salvage certificate from the owner or the lienholder within 10 days after delivery to him of the watercraft, he need not send the certificate to the Department of Natural Resources but, upon transferring the watercraft to another person other than by the creation of a security interest, shall promptly and within 15 days execute the assignment and warranty of title by a dealer, showing the names and addresses of the transferee and of any lienholder holding a security interest created or reserved at the time of the resale and the date of his security agreement, in the spaces provided therefor on the certificate or as the Department of Natural Resources prescribes, and mail or deliver the certificate to the Department with the transferee's application for a new certificate.

(b) Every dealer shall maintain for 3 years a record in the form the Department of Natural Resources prescribes of every watercraft bought, sold or exchanged by him, or received by him for sale or exchange, which shall be open to inspection by a representative of the Department of Natural Resources or peace officer during reasonable business hours.

(c) The Department of Natural Resources may decline to process any application for a transfer of an interest in a watercraft if any fees or taxes due under this Act from the transferor or the transferee have not been paid upon reasonable notice and demand.

(Source: P.A. 89-445, eff. 2-7-96.)

(625 ILCS 45/3A-15) (from Ch. 95 1/2, par. 313A-15)

Sec. 3A-15. Transfer by operation of law.

(a) If the interest of an owner in a watercraft passes to another other than by voluntary transfer, the transferee shall, except as provided in subsection (b), promptly mail or deliver within 15 days to the Department of Natural Resources the last certificate of title or salvage certificate, if available, proof of the transfer, and his or her application for a new certificate in the form the Department prescribes. It shall be unlawful for any person having possession of a certificate of title or salvage certificate for a watercraft by reason of his or her having a lien or encumbrance on such watercraft, to fail or refuse to deliver such certificate to the owner, upon the satisfaction or discharge of the lien or encumbrance, indicated upon such certificate of title or salvage certificate.

(b) If the interest of an owner in a watercraft passes to another under the provisions of the Small Estates provisions of the Probate Act of 1975, as amended, the transferee shall promptly mail or deliver to the Department of Natural Resources, within 120 days, the last certificate of title or salvage certificate, if available, the documentation required under the provisions of the Probate Act of 1975, as amended, and an application for certificate of title or salvage certificate. The transfer may be to the transferee or to the nominee of the transferee.

(c) If the interest of an owner in a watercraft passes to another under other provisions of the Probate Act of 1975, as amended, and the transfer is made by an executor, administrator, or guardian for a person with a disability, such transferee shall promptly mail or deliver to the Department of Natural Resources, the last certificate of title or salvage certificate, if available, and a certified copy of the letters testamentary, letters of administration or letters of guardianship, as the case may be, and an application for a certificate of title or salvage certificate. Such application shall be made before the estate is closed. The transfer may be to the transferee or to the nominee of the transferee.

(d) If the interest of an owner in joint tenancy passes to the other joint tenant with survivorship rights as provided by law, the transferee shall promptly mail or deliver to the Department of Natural Resources, the last certificate of title or salvage certificate, if available, proof of death of the one joint tenant and survivorship of the surviving joint tenant, and an application for certificate of title or salvage certificate. Such application shall be made within 120 days after the death of the joint tenant. The transfer may be to the transferee or to the nominee of the transferee.

(d-5) If the interest of an owner passes to the owner's spouse or if the spouse otherwise acquires ownership of the watercraft, then the transferee shall promptly mail or deliver to the Department of Natural Resources proof of (i) the owner's death; (ii) the transfer or acquisition of ownership; and (iii) proof of the marital relationship between the owner and the transferee, along with the last certificate of title or salvage certificate, if available, and an application for a certificate of title or salvage certificate along with the appropriate fees and taxes, if applicable. The application shall be made within 180 days after the death of the owner.

(d-10) The Department of Natural Resources shall transfer a decedent's certificate of title or salvage certificate to any legatee, representative, or heir of the decedent who submits to the Department a death certificate and an affidavit by an attorney at law on the letterhead stationery of the attorney at law stating the facts of the transfer.

(e) If the interest of the owner is terminated or the watercraft is sold under a security agreement by a lienholder named in the certificate of title or salvage certificate, the transferee shall promptly mail or deliver within 15 days to the Department of Natural Resources the last certificate of title or salvage certificate, his or her application for a new certificate in the form the Department prescribes, and an affidavit made by or on behalf of the lienholder that the watercraft was repossessed and that the interest of the owner was lawfully terminated or sold pursuant to the terms of the security agreement. In all cases wherein a lienholder has found it necessary to repossess a watercraft and desires to obtain a certificate of title or salvage certificate for such watercraft in the name of such lienholder, the Department of Natural Resources shall not issue a certificate of title or salvage certificate to such lienholder unless the person from whom such watercraft has been repossessed, is shown to be the last registered owner of such watercraft and such lienholder establishes to the satisfaction of the Department that he or she is entitled to such certificate of title or salvage certificate.

(f) A person holding a certificate of title or salvage certificate whose interest in the watercraft has been extinguished or transferred other than by voluntary transfer shall mail or deliver the certificate within 15 days upon request of the Department of Natural Resources. The delivery of the certificate pursuant to the request of the Department of Natural Resources does not affect the rights of the person surrendering the certificate, and the action of the Department in issuing a new certificate of title or salvage certificate as provided herein is not conclusive upon the rights of an owner or lienholder named in the old certificate.

(g) The Department of Natural Resources may decline to process any application for a transfer of an interest hereunder if any fees or taxes due under this Act from the transferor or the transferee have not been paid upon reasonable notice and demand.

(h) The Department of Natural Resources shall not be held civilly or criminally liable to any person because any purported transferor may not have had the power or authority to make a transfer of any interest in any watercraft or because a certificate of title, junking certificate, or salvage certificate issued in error is subsequently used to commit a fraudulent act.

(i) In all cases in which a lienholder has repossessed a watercraft by other than judicial process and holds it for resale under a security agreement, and the owner of record has executed an assignment of the existing certificate of title or salvage certificate after default, the lienholder may proceed to sell or otherwise dispose of the watercraft as authorized under the Uniform Commercial Code. Upon selling the watercraft to another person, the lienholder need not send the certificate of title or salvage certificate to the Department of Natural Resources, but shall promptly and within 20 days mail or deliver to the purchaser as transferee the existing certificate of title or salvage certificate for the repossessed watercraft, reflecting the release of the lienholder's security interest in the watercraft. The application for a certificate of title made by the purchaser shall comply with subsection (a) of Section 3A-3 or subsection (a) of Section 3A-22 and be accompanied by the existing certificate of title or salvage certificate for the repossessed watercraft. The lienholder shall execute the assignment and warranty of title showing the name and address of the purchaser in the spaces provided therefor on the certificate of title or salvage certificate or as the Department of Natural Resources prescribes. The lienholder shall complete the assignment of title in the certificate of title or salvage certificate to reflect the transfer of the watercraft to the lienholder and also a reassignment to reflect the transfer from the lienholder to the purchaser. For this purpose, the lienholder is specifically authorized to complete and execute the space reserved in the certificate of title or salvage certificate for a dealer reassignment, notwithstanding that the lienholder is not a licensed dealer. Nothing in this subsection shall be construed to mean that the lienholder is taking title to the repossessed watercraft for purposes of liability for retailer occupation, watercraft use, or other tax with respect to the proceeds from the repossession sale. Delivery of the existing certificate of title or salvage certificate to the purchaser shall be deemed disclosure to the purchaser of the owner of the watercraft.

(j) Subject to subsection (o), in all cases in which a lienholder has repossessed a watercraft by other than judicial process and holds it for resale under a security agreement, and the owner of record has not executed an assignment of the existing certificate of title or salvage certificate:

(1) Prior to sale, the lienholder shall deliver or mail to the owner at the owner's last known address and to any other lienholder of record a notice of redemption setting forth the following information:

(i) the name of the owner of record and in bold type at or near the top of the notice a statement that the owner's watercraft was repossessed on a specified date for failure to make payments on the loan (or other reason);

(ii) a description of the watercraft subject to the lien sufficient to identify it;

(iii) the right of the owner to redeem the watercraft;

(iv) the lienholder's intent to sell or otherwise dispose of the watercraft after the expiration of 21 days from the date of mailing or delivery of the notice; and

(v) the name, address, and telephone number of the lienholder from whom information may be obtained concerning the amount due to redeem the watercraft and from whom the watercraft may be redeemed under Section 9-623 of the Uniform Commercial Code.

At the lienholder's option, the information required to be set forth in this notice of redemption may be made a part of or accompany the notification of sale or other disposition required under Section 9-611 of the Uniform Commercial Code, but none of the information required by this notice shall be construed to impose any requirement under Article 9 of the Uniform Commercial Code.

(2) Upon selling the watercraft to another person, the lienholder need not send the certificate of title or salvage certificate to the Department of Natural Resources, but shall promptly and within 20 days mail or deliver the following to the purchaser as transferee:

(i) the existing certificate of title or salvage certificate for the repossessed watercraft, reflecting the release of the lienholder's security interest in the watercraft; and

(ii) an affidavit of repossession, made by or on behalf of the lienholder, that provides the following information: that the watercraft was repossessed, a description of the watercraft sufficient to identify it, whether the watercraft has been damaged in excess of 33 1/3% of its fair market value as required under subdivision (b)(3) of Section 3A-19, that the owner and any other lienholder of record were given the notice required in paragraph (1), that the interest of the owner was lawfully terminated or sold pursuant to the terms of the security agreement, and the purchaser's name and address.

If the watercraft is damaged in excess of 33 1/3% of its fair market value, the lienholder shall apply for a salvage certificate or junking certificate under Section 3A-19.

(3) The application for a certificate of title or salvage certificate made by the purchaser shall comply with subsection (a) of Section 3A-3 or subsection (a) of Section 3A-22 and be accompanied by the affidavit of repossession furnished by the lienholder and the existing certificate of title or salvage certificate for the repossessed watercraft. The lienholder shall execute the assignment and warranty of title showing the name and address of the purchaser in the spaces provided therefor on the certificate of title or salvage certificate or as the Department of Natural Resources prescribes. The lienholder shall complete the assignment of title in the certificate of title or salvage certificate to reflect the transfer of the watercraft to the lienholder and also a reassignment to reflect the transfer from the lienholder to the purchaser. For this purpose, the lienholder is specifically authorized to execute the assignment on behalf of the owner as seller if the owner has not done so and to complete and execute the space reserved in the certificate of title for a dealer reassignment, notwithstanding that the lienholder is not a licensed dealer. Nothing herein shall be construed to mean that the lienholder is taking title to the repossessed watercraft for purposes of liability for retailer occupation, watercraft use, or other tax with respect to the proceeds from the repossession sale. Delivery of the existing certificate of title or salvage certificate to the purchaser shall be deemed disclosure to the purchaser of the owner of the watercraft. If the lienholder does not hold the certificate of title or salvage certificate for the repossessed watercraft, the lienholder shall apply for and may obtain a new certificate of title or salvage certificate in the name of the lienholder upon furnishing information satisfactory to the Department of Natural Resources. Upon receiving the new certificate of title or salvage certificate, the lienholder may proceed with the sale described in this paragraph, except that, upon selling the watercraft, the lienholder shall promptly and within 20 days mail or deliver to the purchaser the new certificate of title or salvage certificate reflecting the assignment and transfer of title to the purchaser.

(k)(1) Subject to subsection (o), if, at the time of repossession by a lienholder that is seeking to transfer title pursuant to subsection (j), the owner has paid an amount equal to 30% or more of the deferred payment price or total of payments due, the owner may, within 21 days of the date of repossession, reinstate the contract or loan agreement and recover the watercraft from the lienholder by tendering in a lump sum:

(i) the total of all unpaid amounts, including any unpaid delinquency or deferral charges due at the date of reinstatement, without acceleration;

(ii) performance necessary to cure any default other than nonpayment of the amounts due; and

(iii) all reasonable costs and fees incurred by the lienholder in retaking, holding, and preparing the watercraft for disposition and in arranging for the sale of the watercraft.

Reasonable costs and fees incurred by the lienholder include, without limitation, repossession and storage expenses and, if authorized by the contract or loan agreement, reasonable attorney's fees and collection agency charges.

(2) Tender of payment and performance pursuant to this limited right of reinstatement restores to the owner his or her rights under the contract or loan agreement as though no default had occurred. The owner has the right to reinstate the contract or loan agreement and recover the watercraft from the lienholder only once under this subsection. The lienholder may, in the lienholder's sole discretion, extend the period during which the owner may reinstate the contract or loan agreement and recover the watercraft beyond the 21 days allowed under this subsection, and the extension shall not subject the lienholder to liability to the owner under the laws of this State.

(3) The lienholder shall deliver or mail to the owner at the owner's last known address, within 3 business days of the date of repossession, written notice of the owner's right to reinstate the contract or loan agreement and recover the watercraft pursuant to the limited right of reinstatement described in this subsection. At the lienholder's option, the information required to be set forth in this notice of reinstatement may be made part of or accompany the notice of redemption required in subdivision (j)(1) of this Section and the notification of sale or other disposition required under Section 9-611 of the Uniform Commercial Code, but none of the information required by this notice of reinstatement shall be construed to impose any requirement under Article 9 of the Uniform Commercial Code.

(4) The reinstatement period, if applicable, and the redemption period described in subdivision (j)(1) of this Section, shall run concurrently if the information required to be set forth in the notice of reinstatement is part of or accompanies the notice of redemption. In any event, the 21-day redemption period described in subdivision (j)(1) of this Section shall commence on the date of mailing or delivery to the owner of the information required to be set forth in the notice of redemption, and the 21-day reinstatement period described in this subsection, if applicable, shall commence on the date of mailing or delivery to the owner of the information required to be set forth in the notice of reinstatement.

(5) The Department of Natural Resources shall not determine the merits of an owner's claim of right to reinstatement, nor consider any allegations or assertions regarding the validity or invalidity of a lienholder's claim to the watercraft or an owner's asserted right to reinstatement. If a lienholder is subject to licensing and regulatory supervision by the State of Illinois, the lienholder shall be subject to all of the powers and authority of the lienholder's primary State regulator to enforce compliance with the procedures set forth in this subsection.

(l) In all cases in which a lienholder has repossessed a watercraft by judicial process and holds it for resale under a security agreement, order for replevin, or other court order establishing the lienholder's right to possession of the watercraft, the lienholder may proceed to sell or otherwise dispose of the watercraft as authorized under the Uniform Commercial Code or the court order. Upon selling the watercraft to another person, the lienholder need not send the certificate of title or salvage certificate to the Department of Natural Resources, but shall promptly and within 20 days mail or deliver to the purchaser as transferee:

(i) the existing certificate of title or salvage certificate for the repossessed watercraft reflecting the release of the lienholder's security interest in the watercraft;

(ii) a certified copy of the court order; and

(iii) a bill of sale identifying the new owner's name and address and the year, make, model, and hull identification number.

The application for a certificate of title made by the purchaser shall comply with subsection (a) of Section 3A-3, the application for a salvage certificate made by the purchaser shall comply with subsection (a) of Section 3A-22, and be accompanied by the certified copy of the court order furnished by the lienholder and the existing certificate of title or salvage certificate for the repossessed watercraft. The lienholder shall execute the assignment and warranty of title showing the name and address of the purchaser in the spaces provided therefor on the certificate of title, salvage certificate, or as the Department of Natural Resources prescribes. The lienholder shall complete the assignment of title in the certificate of title or salvage certificate to reflect the transfer of the watercraft to the lienholder and also a reassignment to reflect the transfer from the lienholder to the purchaser. For this purpose, the lienholder is specifically authorized to execute the assignment on behalf of the owner as seller if the owner has not done so and to complete and execute the space reserved in the certificate of title or salvage certificate for a dealer reassignment, notwithstanding that the lienholder is not a licensed dealer. Nothing in this subsection shall be construed to mean that the lienholder is taking title to the repossessed watercraft for purposes of liability for retailer occupation, watercraft use, or other taxes with respect to the proceeds from the repossession sale. Delivery of the existing certificate of title or salvage certificate to the purchaser shall be deemed disclosure to the purchaser of the owner of the watercraft. If the lienholder does not hold the certificate of title or salvage certificate for the repossessed watercraft, the lienholder shall apply for and may obtain a new certificate of title or salvage certificate in the name of the lienholder upon furnishing information satisfactory to the Department of Natural Resources. Upon receiving the new certificate of title or salvage certificate, the lienholder may proceed with the sale described in this subsection, except that upon selling the watercraft, the lienholder shall promptly and within 20 days mail or deliver to the purchaser the new certificate of title or salvage certificate reflecting the assignment and transfer of title to the purchaser.

(m) The Department of Natural Resources shall not issue a certificate of title or salvage certificate to a purchaser under subsection (i), (j), or (l) unless the person from whom the watercraft has been repossessed by the lienholder is shown to be the last registered owner of the watercraft. The Department of Natural Resources may provide by rule for the standards to be followed by a lienholder in assigning and transferring certificates of title or salvage certificates with respect to repossessed watercraft.

(n) If applying for a salvage certificate or a junking certificate, the lienholder shall make an application within 20 days to the Department of Natural Resources for a salvage certificate or a junking certificate as set forth in this Act. The Department of Natural Resources shall not issue a salvage certificate or a junking certificate to such a lienholder unless the person from whom such a watercraft has been repossessed is shown to be the last registered owner of the watercraft and the lienholder establishes to the satisfaction of the Department of Natural Resources that the lienholder is entitled to a salvage certificate or junking certificate. The Department of Natural Resources may provide by rule for the standards to be followed by a lienholder in order to obtain a salvage certificate or junking certificate for a repossessed watercraft.

(o) If the repossessed watercraft is the subject of a bankruptcy proceeding or discharge:

(1) the lienholder may proceed to sell or otherwise dispose of the watercraft as authorized by the Bankruptcy Code and the Uniform Commercial Code;

(2) the notice of redemption and notice of reinstatement otherwise required to be sent by the lienholder to the owner of record or other lienholder of record under this Section are not required to be delivered or mailed;

(3) the requirement to delay disposition of the watercraft for 21 days under subsection (j) or (k) does not apply;

(4) the affidavit of repossession that is required under subdivision (j)(3) shall contain a notation of "bankruptcy" where the affidavit requires the date of the mailing or delivery of the notice of redemption;

(5) the right of redemption, the right to assert a defense to the transfer of title, and reinstatement rights under this Section do not apply; and

(6) references to judicial process and court orders in subsection (l) of this Section do not include bankruptcy proceedings or orders.

The notation of "bankruptcy" under paragraph (4) means the lienholder makes no sworn representations regarding the mailing or delivery of the notice of redemption or affidavit of defense or the lienholder's compliance with the requirements that otherwise apply to the notices listed in this subsection, and makes no sworn representation that the lienholder assumes liability or costs for any litigation that may arise from the issuance of a certificate of title based on the excluded representations.

(Source: P.A. 99-143, eff. 7-27-15.)

(625 ILCS 45/3A-16) (from Ch. 95 1/2, par. 313A-16)

Sec. 3A-16. Fees. Fees shall be paid according to the following schedule:

(Source: P.A. 97-1136, eff. 1-1-13.)

(625 ILCS 45/3A-17) (from Ch. 95 1/2, par. 313A-17)

Sec. 3A-17. Transfer of watercraft. A transferor of a watercraft other than a dealer transferring a new watercraft, shall deliver to the transferee at the time of delivery of possession of the watercraft the properly assigned certificate of title, salvage certificate, or junking certificate.

(Source: P.A. 85-149.)

(625 ILCS 45/3A-18) (from Ch. 95 1/2, par. 313A-18)

Sec. 3A-18. Transfer or surrender of certificate of title.

(a) Except as provided in this Act, the The Department of Natural Resources, upon receipt of a properly assigned certificate of title, with an application for a new certificate of title, the required fee and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner and mail it to the first lienholder named in it or, if none, to the owner.

(b) Except as provided in this Act, the The Department of Natural Resources, upon receipt of an application for a new certificate of title by a transferee other than by voluntary transfer, with proof of the transfer, the required fee and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner. If the outstanding certificate of title is not delivered to him, the Department shall make demand therefor from the holder thereof.

(b-5) The Department of Natural Resources, upon receipt of an application for a certificate of title and the required fee, may issue a certificate of title to a bona fide purchaser of a watercraft from a dealer if the dealer files for bankruptcy or is otherwise no longer operating as a dealer and does not properly transfer the title application to the bona fide purchaser prior to the licensed dealer's business closure.

(c) The Department of Natural Resources shall file and retain for 4 years every surrendered Illinois certificate of title, the file to be maintained so as to permit the tracing of title of the watercraft designated therein.

(d) Except as otherwise provided in this Act, the Department of Natural Resources, upon the receipt of an application for a corrected certificate of title, corrected junking certificate, or corrected salvage certificate with the original title or certificate, the required fee, and any other required documents shall issue a corrected certificate of title, junking certificate, or salvage certificate in the name of the owner and mail it to the first lienholder named in it or, if none, to the owner or owner's designee.

(e) Except as otherwise provided in this Act, the Department of Natural Resources, upon the receipt of a certified copy of a court order awarding ownership to an applicant along with an application for a certificate of title and the required fee, shall issue a certificate of title to the applicant.

(Source: P.A. 89-445, eff. 2-7-96.)

(625 ILCS 45/3A-19) (from Ch. 95 1/2, par. 313A-19)

Sec. 3A-19. Salvage and junking certificates; when required Scrapping, junking or destroying a watercraft.

(a) The owner of a watercraft for which a certificate of title has been obtained pursuant to Section 3A-1 shall also comply with this Section.

(b) Except as provided in Section 3A-21 of this Code, a person who possesses a junk watercraft shall cause the certificate of title, salvage certificate, certificate of purchase, or a similarly acceptable out-of-state document of ownership to be surrendered within 15 days to the Department of Natural Resources, along with an application for a junking certificate, whereupon the Department of Natural Resources shall issue to such a person a junking certificate, which shall authorize the holder thereof to possess, transport, or, by an endorsement, transfer ownership in the junked watercraft, and a certificate of title shall not again be issued for such watercraft. A person who possesses a junk watercraft and a certificate of title, salvage certificate, certificate of purchase, or a similarly acceptable out-of-state document of ownership for such a junk watercraft, may transport the junk watercraft to a business that disposes of junk watercraft prior to applying for or obtaining a junking certificate, by executing a uniform invoice. The transferor shall furnish a copy of the uniform invoice to the transferee at the time of transfer. In any case, the transferor shall apply for a junking certificate in conformance with Section 3A-19. The following information shall be contained on a uniform invoice:

(1) the business name and address of the person disposing of the junk watercraft;

(2) the name and address of the person acquiring the junk watercraft, and if that person is a scrap dealer as defined in the Illinois Vehicle Code, the Illinois or out-of-state dealer license number of that dealer;

(3) the date of the disposition of the junk watercraft;

(4) the year, make, model, registration number, color, and description of each junk watercraft disposed of by the person;

(5) the manufacturer's hull identification number for each junk watercraft disposed of by the person;

(6) the printed name and legible signature of the person or agent disposing of the junk watercraft; and

(7) the printed name and legible signature of the person accepting delivery of the junk watercraft.

The Department of Natural Resources shall create a form for uniform invoices that reflects those watercraft for which junking certificates have been or will be applied or issued. A uniform invoice may be issued to any person and shall constitute evidence of ownership of the watercraft listed upon it. A watercraft that is listed on a uniform invoice may be transferred only to a person licensed under Section 5-301 of the Illinois Vehicle Code as a scrap processor. A uniform invoice shall allow the transportation of watercraft listed on the uniform invoice to a scrap processor prior to receiving the junking certificate from the Department of Natural Resources.

(c) Unless, at the option of an insurance company, self-insured company, or owner of a watercraft, the owner has obtained a junking certificate for the watercraft, an application for a salvage certificate shall be submitted to the Department of Natural Resources in any of the following situations:

(1) When an insurance company makes a payment of damages on a total loss claim for a watercraft, the insurance company shall be deemed to be the owner of such a watercraft and the watercraft shall be considered to be salvage, except that ownership of (i) a watercraft that has incurred only hail damage that does not affect the operational safety of the watercraft; or (ii) any watercraft 9 model years of age or older may, by agreement between the registered owner and the insurance company, be retained by the registered owner of such a watercraft. The insurance company shall promptly deliver or mail within 20 days the certificate of title along with proper application and fee to the Department of Natural Resources, and a salvage certificate shall be issued in the name of the insurance company. Notwithstanding the foregoing, an insurer making payment of damages on a total loss claim for the theft of a watercraft shall not be required to apply for a salvage certificate unless the watercraft is recovered and has incurred damage that initially would have caused the watercraft to be declared a total loss by the insurer.

(2) When a watercraft of a self-insured company is to be sold in this State and has sustained damage by collision, fire, theft, corrosion, or other means so that the self-insured company determines the watercraft to be a total loss, or if the cost of repairing the damage, including labor, would be greater than 70% of the fair market value of the watercraft without that damage, the watercraft shall be considered salvage. The self-insured company shall promptly deliver the certificate of title along with proper application and fee to the Department of Natural Resources, and a salvage certificate shall be issued in the name of the self-insured company. A self-insured company making payment of damages on a total loss claim for the theft of a watercraft may exchange the salvage certificate for a certificate of title if the watercraft is recovered without damage. In such a situation, the self-insured shall fill out and sign a form prescribed by the Department of Natural Resources that contains an affirmation under penalty of perjury that the watercraft was recovered without damage and the Department of Natural Resources, by rule, may require photographs to be submitted.

(3) When an owner of a watercraft that is not covered by an insurance policy and the watercraft is to be sold in this State and has sustained damage by collision, fire, theft, corrosion, or other means so that the owner determines the watercraft to be a total loss, or if the cost of repairing the damage, including labor, would be greater than 70% of the fair market value of the watercraft without that damage, the watercraft shall be considered salvage. Within 15 days, the owner shall deliver the certificate of title along with proper application and fee to the Department of Natural Resources, and a salvage certificate shall be issued in the name of the owner.

(4) When the ownership of a watercraft has been transferred to any person through a certificate of purchase from acquisition of the watercraft at an auction or other dispositions as set forth in Sections 3C-8 and 3C-9, the watercraft shall be deemed salvage or junk at the option of the purchaser. The person acquiring such a watercraft in such a manner shall promptly deliver or mail, within 15 days after the acquisition of the watercraft, the certificate of purchase and the proper application and fee to the Department of Natural Resources, and a salvage certificate or junking certificate shall be issued in the name of that person. The salvage certificate or junking certificate issued by the Department of Natural Resources under this Section shall be free of any lien that existed against the watercraft prior to the time the watercraft was acquired by the applicant under this Act.

(5) A watercraft that has been repossessed by a lienholder shall be considered to be salvage only when the repossessed watercraft, on the date of repossession by the lienholder, has sustained damage by collision, fire, theft, corrosion, or other means so that the cost of repairing such damage, including labor, would be greater than 33 1/3% of its fair market value without the damage. If the lienholder determines that such a watercraft is damaged in excess of 33 1/3% of the fair market value, the lienholder, before sale, transfer or assignment of the watercraft, shall apply for a salvage certificate and shall submit with the application the proper fee and evidence of possession. If the facts required to be shown in subsection (i) of Section 3A-15 are satisfied, the Department of Natural Resources shall issue a salvage certificate in the name of the lienholder making the application. In any case in which the watercraft repossessed is not damaged in excess of 33 1/3% of its fair market value, the lienholder shall comply with the requirements of subsections (i), (j), and (l) of Section 3A-15, except that the affidavit of repossession made by or on behalf of the lienholder shall also contain an affirmation under penalty of perjury that the watercraft on the date of sale is not damaged in excess of 33 1/3% of its fair market value. If the facts required to be shown in subsection (i) of Section 3A-15 are satisfied, the Department of Natural Resources shall issue a certificate of title as set forth in Section 3A-18 of this Act. The Department of Natural Resources, by rule, may require photographs to be submitted.

(6) When a new or used watercraft dealer, or remittance agent, has submitted an application for title to a watercraft that he or she knows or reasonably should know to have sustained damages in excess of 33 1/3% of the watercraft's fair market value without that damage; however, any application for a salvage certificate for a watercraft recovered from theft and acquired from an insurance company shall be made as required by paragraph (1).

(d) Any person who without authority acquires, sells, exchanges, gives away, transfers, or destroys, or offers to acquire, sell, exchange, give away, transfer, or destroy the certificate of title to any watercraft that is a junk or salvage watercraft shall be guilty of a Class 4 felony for the first offense and a Class 2 felony for a subsequent offense.

(e) Except as provided under subsection (b), any person who knowingly fails to surrender to the Department of Natural Resources a certificate of title, salvage certificate, certificate of purchase, or similarly acceptable out-of-state document of ownership as required under this Section is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for a subsequent offense.

(e) A junk watercraft may not be operated upon the waterways within this State. A violation of this subsection is a Class A misdemeanor. An owner who scraps, junks or destroys a watercraft, or a person who purchases a watercraft as scrap or as a watercraft to be junked or destroyed shall immediately cause the certificate of title to be mailed or delivered to the Department of Natural Resources, and a certificate of title shall not again be issued for such watercraft. Upon receipt of the certificate of title, the Department shall cancel the certificate.

(Source: P.A. 89-445, eff. 2-7-96.)

(625 ILCS 45/3A-19.1 new)

Sec. 3A-19.1. Salvage certificate; contents and effect.

(a) Each salvage certificate issued by the Department of Natural Resources shall contain:

(1) the date issued;

(2) the name and address of the owner;

(3) the names and addresses of any lienholders, in the order of priority as shown on the application or, if the application is based on a certificate of title, as shown on the certificate;

(4) the title number that was previously assigned to the watercraft and the salvage certificate number;

(5) a description of the watercraft, including, so far as the following data exists: its make, model, year of manufacture, registration number, manufacturer's serial number or, if none, the builder's hull number, length, the most recent purchase date, and the principal material used in construction;

(6) any other data the Department of Natural Resources prescribes.

The certificate must include a mark and color that clearly identifies the certificate as a salvage certificate.

(b) The salvage certificate shall contain forms for assignment and warranty of title by the owner and for assignment and warranty of title by a dealer and may contain forms for applications for a salvage certificate by a transferee, the naming of a lienholder, and the assignment or release of the security interest of a lienholder.

(c) The Department shall designate on a salvage certificate a space where the owner of a watercraft may designate a beneficiary to whom ownership of the watercraft shall pass in the event of the owner's death.

(d) A salvage certificate issued by the Department of Natural Resources is prima facie evidence of the facts appearing on it.

(e) A salvage certificate is not subject to garnishment, attachment, execution, or other judicial process, but this subsection does not prevent a lawful levy upon the watercraft.

(f) Any salvage certificate issued by the Department of Natural Resources is subject to a lien in favor of the State of Illinois for any fees or taxes required to be paid under this Act and as have not been paid, as provided for in this Act.

(g) A watercraft that has been issued a salvage certificate may be operated upon the waters of this State.

(625 ILCS 45/3A-19.2 new)

Sec. 3A-19.2. Junk watercraft notification. Beginning January 1, 2021, a person licensed as a scrap processor pursuant to Section 5-301 of the Illinois Vehicle Code who acquires a watercraft with a properly assigned certificate of title, a salvage certificate, a junking certificate, a certificate of purchase, or a similarly acceptable out-of-state document of ownership shall within 15 days of acquiring such document, submit it to the Department of Natural Resources along with a junk watercraft notification, the form and manner for which shall be as prescribed by Department of Natural Resources rule or regulation. A scrap processor who acquires the above-named documents of ownership shall not be required to apply for or obtain a junking certificate. The information contained on a junk watercraft notification shall be duly recorded by the Department of Natural Resources upon the receipt of such notification. The Department of Natural Resources shall not again issue a certificate of title or salvage certificate for any watercraft listed on a junk watercraft notification.

(625 ILCS 45/3A-19.3 new)

Sec. 3A-19.3. Junking or salvage certificates; insurance company; salvage dealer.

(a) Notwithstanding any other provision of law to the contrary, an insurance company or salvage dealer, after completing a record search for any owner of a watercraft, may obtain free of any lien a junking certificate or salvage certificate in the insurance company's name by submitting an application for a junking certificate or salvage certificate to the Department of Natural Resources. The application shall include, but is not limited to, proof of full payment, in whole or in part, to the watercraft owner or, if applicable, any lienholder of record and proof of notice to the watercraft owner and any lienholder via certified mail or other proof of service that a transfer of title shall occur no earlier than 30 days after the date the notice is sent. Upon approval of the application, the Department shall issue to the insurance company a junking certificate or salvage certificate free of any lien in the insurance company's name. This subsection applies only to a watercraft titled in this State that has been through an insurance claims process and the owner of the watercraft or lienholder, if applicable, has received compensation in exchange for relinquishing the ownership rights of the watercraft to an insurance company licensed under the Illinois Insurance Code and the insurance company is unable to obtain an endorsed certificate of title within 30 days of payment to the owner or lienholder.

(b) Notwithstanding any other provision of law to the contrary, a salvage dealer, as defined in the Illinois Vehicle Code, after completing a record search for any owner of a watercraft, may obtain free of any lien a junking certificate or salvage certificate in his or her name by submitting an application for a junking certificate or a salvage certificate to the Department of Natural Resources that includes, but is not limited to, proof of notice via certified mail or other proof of service to the watercraft owner or any lienholder that a transfer of title shall occur no earlier than 30 days after the date the notice is sent. The notice shall inform the watercraft owner or lienholder that upon payment of any applicable charges, the watercraft may be removed from the salvage dealer's facility. Upon approval of the application, the Department shall issue to the salvage dealer a junking certificate or salvage certificate free of any lien in the salvage dealer's name. This subsection applies only to a watercraft titled in this State and in possession of a salvage dealer by request of an insurance company licensed under the Illinois Insurance Code or nonprofit organization under the Internal Revenue Code to take possession of the watercraft subject to an insurance claim or charity donation and the insurance company denies coverage of the watercraft or the insurance company or nonprofit organization does not take ownership of the watercraft within 45 days of possession by the salvage dealer.

(c) A watercraft owner or lienholder may send notice of a dispute of the transfer of title under this Section within 30 days after the required notice is sent by the insurance company or salvage dealer. If a dispute between a watercraft owner or lienholder and an insurance company or salvage dealer cannot be resolved within 45 days after the required notice to the watercraft owner or lienholder is sent, the watercraft owner or lienholder, within 90 days after sending notice of dispute, shall petition a court of competent jurisdiction for an order to determine ownership of the watercraft and shall notify the Department of Natural Resources of the filing of the petition. If a watercraft owner or lienholder does not file a petition within the 90-day period, the title to the watercraft shall be issued to the insurance company or salvage dealer under this Section.

(d) Any person who without authority acquires, sells, exchanges, gives away, transfers, or destroys, or offers to acquire, sell, exchange, give away, transfer, or destroy, the certificate of title to any watercraft that is a junk or salvage watercraft shall be guilty of a Class 3 felony.

(e) Any person who knowingly fails to surrender to the Department of Natural Resources a certificate of title, salvage certificate, or certificate of purchase is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for a second and subsequent offense.

(f) A junk watercraft may not be operated upon the waterways within this State. A violation of this subsection is a Class A misdemeanor.

(g) The Department of Natural Resources may adopt rules to implement this Section.

(625 ILCS 45/3A-19.4 new)

Sec. 3A-19.4. Application for salvage certificate or junking certificate; contents.

(a) An application for a salvage certificate or junking certificate shall be made upon the forms prescribed by the Department of Natural Resources and contain:

(1) the name and address of the owner;

(2) a description of the watercraft, including, so far as the following data exists: its make, model year, hull identification number, hull material, boat type, whether new or used, and current or expired registration number;

(3) the date of purchase by applicant; and

(4) any further information reasonably required by the Department of Natural Resources.

(b) A salvage certificate or junking certificate may be assigned to anyone.

(625 ILCS 45/3A-21) (from Ch. 95 1/2, par. 313A-21)

Sec. 3A-21. Offenses relating to titling; felonies. Violation of any of the following provisions shall constitute a Class 2 felony:

(a) No person shall alter, forge or counterfeit any certificate of title or a manufacturer's or importer's certificate to a watercraft.

(b) No person shall alter or falsify any assignment of a certificate of title, or an assignment or cancellation of a security interest on a certificate of title to a watercraft.

(c) No person shall hold or use a certificate of title to a watercraft nor hold or use any assignment or cancellation of a security interest on a certificate of title to a watercraft, knowing it to have been altered, forged, counterfeited or falsified.

(d) No person shall use a false or fictitious name or address, or make any material false statement, or conceal any material fact, in an application for a certificate of title, or in a bill of sale or sworn statement of ownership.

(e) No person shall procure or attempt to procure a certificate of title to a watercraft, or pass or attempt to pass a certificate of title or any assignment thereof to a watercraft, knowing or having reason to believe that such watercraft has been stolen.

(f) No person shall have possession of, buy, receive, sell or offer to sell, or otherwise dispose of a watercraft on which the manufacturer's or assigned serial number of the watercraft has been destroyed, removed, covered, altered, or defaced, knowing of such destruction, removal, covering, alteration or defacement of such manufacturer's or assigned serial number.

(g) No person shall destroy, remove, cover, alter or deface the manufacturer's or assigned serial number on any watercraft.

(h) No person, firm, or corporation may knowingly possess, buy, sell, exchange, or give away, or offer to buy, sell, exchange, or give away, the certificate of title to any junk or salvage watercraft in violation of this Article, or may fail to surrender the certificate of title to the Department of Natural Resources as required under this Section and Section 3A-15. No person shall possess, buy, sell, exchange or give away, or offer to buy, sell, exchange, or give away the certificate of title to any watercraft which is a junk or salvage.

(Source: P.A. 88-524.)

(625 ILCS 45/3A-22 new)

Sec. 3A-22. Rules. The Department may adopt rules to implement this Article.

(625 ILCS 45/3C-4) (from Ch. 95 1/2, par. 313C-4)

Sec. 3C-4. Towed Reports on towed watercraft.

(a) When a watercraft is authorized to be towed away as provided in Section 3C-2, the police headquarters or office of the law enforcement officer authorizing the towing shall keep and maintain a record of the watercraft towed, listing the color, manufacturer's trade name, manufacturer's series name, hull type, hull material, hull identification number, and registration number displayed on the watercraft. The record shall also include the date and hour of tow, location towed from, location towed to, and reason for towing and the name of the officer authorizing the tow.

(b) When a watercraft is authorized to be towed, the authorization, any hold order, and any release shall be in writing, or confirmed in writing, with a copy given to the towing service.

(c) The owner, operator, or other legally entitled person shall be responsible to the towing service for the payment of applicable removal, towing, storage, and processing charges and collection costs associated with a watercraft towed or held under order or authorization of a law enforcement agency. If a watercraft towed or held under order or authorization of a law enforcement agency is seized by the ordering or authorizing agency or any other law enforcement or governmental agency and sold, any unpaid removal, towing, storage, and processing charges and collection costs shall be paid to the towing service from the proceeds of the sale. If the applicable law provides that the proceeds are to be paid into the treasury of the appropriate civil jurisdiction, then any unpaid removal, towing, storage, and processing charges and collection costs shall be paid to the towing service from the treasury of the civil jurisdiction. That payment shall not, however, exceed the amount of proceeds from the sale, with the balance to be paid by the owner, operator, or other legally entitled person.

(d) Upon the delivery of a written release order to the towing service, a watercraft subject to a hold order shall be released to the owner, operator, or other legally entitled person upon proof of ownership or other entitlement and upon payment of applicable removal, towing, storage, and processing charges and collection costs.

(Source: P.A. 84-646.)

(625 ILCS 45/4-1) (from Ch. 95 1/2, par. 314-1)

Sec. 4-1. Personal flotation devices.

A. No person may operate a watercraft unless at least one wearable U.S. Coast Guard approved personal flotation device for each person PFD is on board, so placed as to be readily available for each person.

B. No person may operate a personal watercraft or specialty prop-craft unless each person aboard is wearing a wearable U.S. Coast Guard approved personal flotation device PFD approved by the United States Coast Guard. No person on board a personal watercraft shall use an inflatable PFD in order to meet the PFD requirements of subsection A of this Section.

C. No person may operate a watercraft 16 feet or more in length, except a canoe or kayak, unless at least one readily accessible United States Coast Guard approved throwable PFD is on board.

D. (Blank).

E. When assisting a person on water skis, aquaplane or similar device, there must be one wearable U.S. United States Coast Guard approved PFD on board the watercraft for each person being assisted or towed or worn by the person being assisted or towed.

F. No person may operate a watercraft unless each device required by this Section is:

1. in serviceable condition;

2. identified by a label bearing a description and approval number demonstrating that the device has been approved by the United States Coast Guard;

3. of the appropriate size for the person for whom it is intended;

4. in the case of a wearable PFD, readily accessible aboard the watercraft;

5. in the case of a throwable PFD, immediately available for use;

6. out of its original packaging; and

7. not stowed under lock and key.

G. Approved personal flotation devices are defined as a device that is approved by the United States Coast Guard under Title 46 CFR Part 160.

H. (Blank).

H-5. An approved and appropriately sized United States Coast Guard approved personal flotation device shall be worn by each person under the age of 13 while in tow.

I. No person may operate a watercraft under 26 feet in length unless an approved and appropriate sized United States Coast Guard personal flotation device is being properly worn by each person under the age of 13 on board the watercraft at all times in which the watercraft is underway; however, this requirement shall not apply to persons who are below decks or in totally enclosed cabin spaces. The provisions of this subsection I shall not apply to a person operating a watercraft on an individual's private property.

J. Racing shells, rowing sculls, racing canoes, and racing kayaks are exempt from the PFD, of any type, carriage requirements under this Section provided that the racing shell, racing scull, racing canoe, or racing kayak is participating in an event sanctioned by the Department as a PFD optional event. The Department may adopt rules to implement this subsection.

(Source: P.A. 100-469, eff. 6-1-18; 100-863, eff. 8-14-18.)

(625 ILCS 45/4-2) (from Ch. 95 1/2, par. 314-2)

Sec. 4-2. Navigation lights Lights.

A. Watercraft subject to this Section shall be divided into classes as follows: It is unlawful to operate any vessel less than 39 feet in length unless the following lights are carried and displayed when underway from sunset to sunrise:

1. Class 1: Less than 16 feet in length. A bright, white light after to show all around the horizon, visible for a distance of 2 miles. The word "visible" as used herein means visible on a dark night with clear atmosphere.

2. Class 2: 16 feet or over and less than 26 feet in length. A combination light in the forepart of the boat lower than the white light after, showing green to starboard and red to port, so fixed as to throw a light from dead ahead to 2 points abaft the beam on their respective sides and visible for a distance of not less than 1 mile.

3. Class 3: 26 feet or over and less than 40 feet in length. Lights under International Rules may be shown as an alternative to the above requirements.

4. Class 4: 40 feet or over and not more than 65 feet in length.

B. Every motorboat, in all weather from sunset to sunrise or in all weather causing reduced visibility, shall carry and exhibit the following United States Coast Guard approved lights when underway and, during such time, no other lights that may be mistaken for or interfere with those prescribed shall be exhibited: Watercraft propelled by muscular power when underway shall carry on board from sunset to sunrise, but not fixed to any part of the boat, a lantern or flashlight capable of showing a white light visible all around the horizon at a distance of 2 miles or more, and shall display such lantern in sufficient time to avoid collision with another watercraft.

(1) A Class 1 or Class 2 motorboat shall carry the following lights:

(a) A bright white light aft to show all around the horizon.

(b) A combined light in the fore part of the watercraft and lower than the white light aft, showing green to starboard and red to port, so fixed as to throw the light from right ahead to 2 points (22.5 degrees) abaft the beam on their respective sides.

(2) A Class 3 or Class 4 motorboat shall carry the following lights:

(a) A bright white light in the fore part of the watercraft as near the stern as practicable, so constructed as to show the unbroken light over an arc of the horizon of 20 points (225 degrees) of the compass, so fixed as to throw the light 10 points (112.5 degrees) on each side of the watercraft, namely, from right ahead to 2 points (22.5 degrees) abaft the beam on either side.

(b) A bright white light aft, mounted higher than the white light forward, to show all around the horizon.

(c) On the starboard side, a green light so constructed as to show an unbroken light over an arc of the horizon of 10 points (112.5 degrees) of the compass, so fixed as to throw the light from right ahead to 2 points (22.5 degrees) abaft the beam on the starboard side. On the port side, a red light so constructed as to show an unbroken light over an arc of the horizon of 10 points (112.5 degrees) of the compass, so fixed as to throw the light from right ahead to 2 points (22.5 degrees) abaft the beam on the port side. The side lights shall be fitted with inboard screens so set as to prevent these lights from being seen across the bow.

(3) A Class 1 or Class 2 Motorboat propelled by sail alone shall exhibit the combined light prescribed by paragraph (1) and a 12-point (135 degrees) white light aft. A Class 3 or Class 4 Motorboat, when so propelled, shall exhibit the colored side lights, suitably screened as prescribed by paragraph (2) and a 12-point (135 degrees) white light aft.

(4) Every white light prescribed by this Section shall be of such character as to be visible at a distance of at least 2 miles. Every colored light prescribed by this Section shall be of such character as to be visible at a distance of at least one mile. As used in this subsection "visible", when applied to lights, means visible on a dark night with clear atmosphere.

(5) If propelled by sail and machinery, a motorboat shall carry the lights required by this Section for a motorboat propelled by machinery only.

(6) All other watercraft over 65 feet in length and those propelled solely by wind effect on the sail shall display lights prescribed by federal regulations.

C. Manually propelled watercraft shall carry, ready at hand, a lantern or flashlight showing a white light that shall be exhibited in sufficient time to avert collision. Manually propelled watercraft used on the waters of this State where power-driven vessels are prohibited are exempt from the provisions of this Section. Every vessel 39 feet or more in length shall carry and display when underway such additional or alternate lights as shall be required by the U. S. Coast Guard for watercraft of equivalent length and type.

D. Any watercraft may carry and exhibit the lights required by the international regulations in lieu of the lights required by subsection B of this Section. Sailboats equipped with motors and being propelled partly or solely by such motors shall carry and display the same lights required for motorboats of the same class. Sailboats being propelled entirely by sail between sunset and sunrise shall have lighted the combination running light, and a white light visible aft only. Sailboats 26 feet or more in length, equipped with motors but being propelled entirely by sail between sunset and sunrise, shall have lighted the colored side lights suitably screened, but not the white lights prescribed for motorboats.

E. All watercraft, when anchored, other than in a special anchorage area as defined in 33 CFR 109.10, shall, from sunset to sunrise, carry and display a steady white light visible all around the horizon for a distance of no less than 2 miles. Dinghies, tenders and other watercraft, whose principal function is as an auxiliary to other larger watercraft, when so operating need carry only a flashlight visible to other craft in the area, anything in this section to the contrary notwithstanding.

F. (Blank). Vessels at anchor between the hours of sunset and sunrise, except those in a "Special Anchorage Area", shall display such anchor lights as shall be required by the U. S. Coast Guard for watercraft of equivalent length and type.

G. (Blank). Watercraft operated manually or by motor which are located on bodies of water where motors of over 7 1/2 horsepower are prohibited must be equipped during the hours between sunset and sunrise with a lantern or flashlight which is capable of showing a beam for 2 miles, anything in this Section to the contrary notwithstanding.

(Source: P.A. 88-524.)

(625 ILCS 45/5-3) (from Ch. 95 1/2, par. 315-3)

Sec. 5-3. Interference with navigation.

(a) No person shall operate any watercraft in a manner which unreasonably or unnecessarily interferes with other watercraft or with the free and proper navigation of the waterways of the State. Anchoring under bridges or in heavily traveled channels constitutes such interference if unreasonable under the prevailing circumstances.

(b) A vessel engaged in fishing shall not impede the passage of any other vessel navigating within a narrow channel or canal.

(c) A vessel nearing a bend or an area of a narrow channel or canal where other vessels may be obscured by an intervening obstruction shall navigate with alertness and caution and shall sound the appropriate audible signal as required by the Inland and International Navigation Rules as written by the United States Coast Guard and this Act.

(d) A vessel shall avoid anchoring in a narrow channel, under bridges, or in heavily traveled channels or canals, if unreasonable under the prevailing circumstances.

(Source: P.A. 82-783.)

(625 ILCS 45/5-13) (from Ch. 95 1/2, par. 315-8)

Sec. 5-13. Traffic rules.

A. The area straight ahead of a vessel to the point that is 22.5 degrees beyond the middle of the vessel on the starboard side of the watercraft shall be designated the danger zone. An operator of a watercraft shall yield the right-of-way to any other watercraft occupying or entering into the danger zone that may result in collision. Passing. When 2 boats are approaching each other "head on" or nearly so (so as to involve risk of collision), each boat must bear to the right and pass the other boat on its left side.

A-5. Head-on situation.

(1) If 2 power-driven vessels are meeting head-on or nearly head-on courses so as to involve risk of collision, each shall alter course to starboard so that each shall pass on the port side of the other.

(2) A vessel proceeding along the course of a narrow channel or canal shall keep as near to the outer limit of the channel or canal that lies on the starboard side as is safe and practicable.

(3) A power-driven vessel operating in narrow channels and proceeding downstream shall have the right-of-way over a vessel proceeding upstream. The vessel proceeding upstream shall yield as necessary to permit safe passing.

B. Crossing. As used in this Section, "crossing" means 2 or more watercraft traveling in directions that would have the path of travel of the watercraft intersect each other. When boats approach each other obliquely or at right angles, the boat approaching on the right side has the right of way.

(1) If 2 power-driven vessels are crossing so as to involve the risk of collision, the vessel that has the other on the starboard side shall keep out of the way and shall avoid crossing ahead of the other vessel.

(2) A power-driven vessel crossing a river shall keep out of the way of a power-driven vessel ascending or descending the river.

(3) A vessel may not cross a narrow channel or canal if the crossing impedes the passage of a vessel that can only safely navigate within the channel or canal.

C. Overtaking. One boat may overtake another on either side but must grant right of way to the overtaken boat.

(1) A vessel overtaking any other shall give way to the vessel being overtaken.

(2) If a vessel operator is in doubt as to whether he or she is overtaking another vessel, the operator shall assume that is the case and act accordingly.

(3) Any subsequent alteration of the bearing between the 2 vessels shall not make the overtaking vessel a crossing vessel within the meaning of this Section or relieve the overtaking operator of the duty of keeping clear of the overtaken vessel until finally past and clear.

(4) In a narrow channel or canal when overtaking, the operator of a power-driven vessel intending to overtake another power-driven vessel shall proceed to pass safety only after indicating his or her intention by sounding the horn as follows:

(a) one short blast from the horn signifies a request to pass on the overtaken vessel's starboard side;

(b) 2 short blasts from the horn signifies a request to pass on the overtaken vessel's port side.

(5) The operator of the power-driven vessel being overtaken shall:

(a) acknowledge the request by sounding the same signal; or

(b) sound 5 short blasts from the horn to indicate danger or do not pass.

No response from the overtaken vessel shall be interpreted as an indication of danger and the same as if 5 short blasts from the horn were sounded.

In the absence of an audible signal or horn, a light signal device using the appropriate number of rapid bursts of light may be used.

D. Sailing vessels.

(1) The operator of a power-driven vessel shall yield the right-of-way to any nonpowered or sailing vessel unless the nonpowered vessel is overtaking the power-driven vessel or Sailboats and Rowboats. When a motorboat is approaching a boat propelled solely by sails or oars, the motorboat must yield the right of way to the sailboat or rowboat except, when a large craft is navigating in a confined channel, the large craft has the right-of-way right of way over a boat propelled solely by oars or sails.

(2) If 2 sailing vessels are approaching one another, so as to involve risk of collision, one of them shall keep out of the way of the other as follows:

(a) If each has the wind on a different side, the vessel that has the wind on the port side shall give way to the other vessel.

(b) If both have the wind on the same side, the vessel that is to windward shall give way to the vessel that is to leeward.

(c) If a vessel with the wind on the port side sees a vessel to windward and cannot determine with certainty whether the other vessel has the wind on the port or starboard side, the vessel shall give way to the other vessel.

(Source: P.A. 82-783.)

Section 99. Effective date. This Act takes effect upon becoming law.".