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1 | AN ACT concerning transportation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Vehicle Code is amended by | ||||||
5 | changing Sections 3-104, 3-117.3, and 3-116.1 and by adding | ||||||
6 | Section 4-208.1 as follows:
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7 | (625 ILCS 5/3-104) (from Ch. 95 1/2, par. 3-104)
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8 | Sec. 3-104. Application for certificate of title.
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9 | (a) The application for a certificate of title for a | ||||||
10 | vehicle in this
State must be made by the owner to the | ||||||
11 | Secretary of State on the form
prescribed and must contain:
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12 | 1. The name, Illinois residence or Illinois place of | ||||||
13 | business , mail address, and, if available, email address | ||||||
14 | of the owner . For the purposes of this subsection | ||||||
15 | "Illinois place of business" means an Illinois location | ||||||
16 | leased or owned by a business, or in the case of an | ||||||
17 | insurance carrier, their contracted salvage disposal | ||||||
18 | vendor ;
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19 | 2. A description of the vehicle including, so far as | ||||||
20 | the following
data exists: Its make, year-model, | ||||||
21 | identifying number, type of body,
whether new or used, as | ||||||
22 | to house trailers as
defined in Section 1-128 of this | ||||||
23 | Code, and as to manufactured homes as defined in Section |
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1 | 1-144.03 of this Code, the square footage based upon the | ||||||
2 | outside dimensions excluding
the length of the tongue and | ||||||
3 | hitch, and, as to vehicles of the
second division, whether | ||||||
4 | for-hire, not-for-hire, or both for-hire and
not-for-hire;
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5 | 3. The date of purchase by applicant and, if | ||||||
6 | applicable, the name and
address of the person from whom | ||||||
7 | the vehicle was acquired and the names and
addresses of | ||||||
8 | any lienholders in the order of their priority and | ||||||
9 | signatures of
owners;
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10 | 4. The current odometer reading at the time of | ||||||
11 | transfer and that the
stated odometer reading is one of | ||||||
12 | the following: actual mileage, not
the actual mileage or | ||||||
13 | mileage is in excess of its mechanical limits; and
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14 | 5. Any further information the Secretary of State | ||||||
15 | reasonably
requires to identify the vehicle and to enable | ||||||
16 | him to determine whether
the owner is entitled to a | ||||||
17 | certificate of title and the existence or
nonexistence of | ||||||
18 | security interests in the vehicle. | ||||||
19 | (a-5) The Secretary of State shall designate on the | ||||||
20 | prescribed application form a space where the owner of a | ||||||
21 | vehicle may designate a beneficiary, to whom ownership of the | ||||||
22 | vehicle shall pass in the event of the owner's death.
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23 | (b) If the application refers to a vehicle purchased from | ||||||
24 | a dealer,
it must also be signed by the dealer as well as the | ||||||
25 | owner, and the dealer must
promptly mail or deliver the | ||||||
26 | application and required documents to the
Secretary of State.
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1 | (c) If the application refers to a vehicle last previously
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2 | registered in another State or country, the application must | ||||||
3 | contain or
be accompanied by:
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4 | 1. Any certified document of ownership so recognized | ||||||
5 | and issued by
the other State or country and acceptable to | ||||||
6 | the Secretary of State, and
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7 | 2. Any other information and documents the Secretary | ||||||
8 | of State
reasonably requires to establish the ownership of | ||||||
9 | the vehicle and the
existence or nonexistence of security | ||||||
10 | interests in it.
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11 | (d) If the application refers to a new vehicle it must be
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12 | accompanied by the Manufacturer's Statement of Origin, or | ||||||
13 | other documents
as required and acceptable by the Secretary of | ||||||
14 | State, with such
assignments as may be necessary to show title | ||||||
15 | in the applicant.
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16 | (e) If an application refers to a vehicle rebuilt from a | ||||||
17 | vehicle
previously salvaged, that application shall comply | ||||||
18 | with the provisions
set forth in Sections 3-302 through 3-304 | ||||||
19 | of this Code.
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20 | (f) An application for a certificate of title for any | ||||||
21 | vehicle,
whether purchased in Illinois or outside Illinois, | ||||||
22 | and even if
previously registered in another State, must be | ||||||
23 | accompanied by either an
exemption determination from the | ||||||
24 | Department of Revenue showing that no
tax imposed pursuant to | ||||||
25 | the Use Tax Act or the vehicle use tax imposed by
Section | ||||||
26 | 3-1001 of the Illinois Vehicle Code is owed by anyone with |
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1 | respect to
that vehicle, or a receipt from the Department of | ||||||
2 | Revenue showing that any tax
so imposed has been paid. An | ||||||
3 | application for a certificate of title for any
vehicle | ||||||
4 | purchased outside Illinois, even if previously registered in | ||||||
5 | another
state, must be accompanied by either an exemption | ||||||
6 | determination from the
Department of Revenue showing that no | ||||||
7 | tax imposed pursuant to the Municipal Use
Tax Act or the County | ||||||
8 | Use Tax Act is owed by anyone with respect to that
vehicle, or | ||||||
9 | a receipt from the Department of Revenue showing that any tax | ||||||
10 | so
imposed has been paid. In the absence of such a receipt for | ||||||
11 | payment or
determination of exemption from the Department, no | ||||||
12 | certificate of title shall
be issued to the applicant.
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13 | If the proof of payment of the tax or of nonliability | ||||||
14 | therefor is,
after the issuance of the certificate of title | ||||||
15 | and display certificate
of title, found to be invalid, the | ||||||
16 | Secretary of State shall revoke the
certificate and require | ||||||
17 | that the certificate of title and, when
applicable, the | ||||||
18 | display certificate of title be returned to him.
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19 | (g) If the application refers to a vehicle not | ||||||
20 | manufactured in
accordance with federal safety and emission | ||||||
21 | standards, the application must
be accompanied by all | ||||||
22 | documents required by federal governmental
agencies to meet | ||||||
23 | their standards before a vehicle is allowed to be issued
title | ||||||
24 | and registration.
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25 | (h) If the application refers to a vehicle sold at public | ||||||
26 | sale by a
sheriff, it must be accompanied by the required fee |
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1 | and a bill of sale
issued and signed by a sheriff. The bill of | ||||||
2 | sale must identify the new
owner's name and address, the year | ||||||
3 | model, make and vehicle identification
number of the vehicle, | ||||||
4 | court order document number authorizing such sale,
if | ||||||
5 | applicable, and the name and address of any lienholders in | ||||||
6 | order of
priority, if applicable.
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7 | (i) If the application refers to a vehicle for which a | ||||||
8 | court of law
determined the ownership, it must be accompanied | ||||||
9 | with a certified copy of
such court order and the required fee. | ||||||
10 | The court order must indicate the
new owner's name and | ||||||
11 | address, the complete description of the vehicle, if
known, | ||||||
12 | the name and address of the lienholder, if any, and must be | ||||||
13 | signed
and dated by the judge issuing such order.
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14 | (j) If the application refers to a vehicle sold at public | ||||||
15 | auction pursuant
to the Labor and Storage Lien (Small Amount) | ||||||
16 | Act, it must be
accompanied by an affidavit or affirmation | ||||||
17 | furnished by the Secretary of
State along with the
documents | ||||||
18 | described in the affidavit or affirmation and the required | ||||||
19 | fee.
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20 | (k) The Secretary may provide an expedited process for the | ||||||
21 | issuance of vehicle titles. Expedited title applications must | ||||||
22 | be delivered to the Secretary of State's Vehicle Services | ||||||
23 | Department in Springfield by express mail service or hand | ||||||
24 | delivery. Applications must be complete, including necessary | ||||||
25 | forms, fees, and taxes. Applications received before noon on a | ||||||
26 | business day will be processed and shipped that same day. |
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1 | Applications received after noon on a business day will be | ||||||
2 | processed and shipped the next business day. The Secretary | ||||||
3 | shall charge an additional fee of $30 for this service, and | ||||||
4 | that fee shall cover the cost of return shipping via an express | ||||||
5 | mail service. All fees collected by the Secretary of State for | ||||||
6 | expedited services shall be deposited into the Motor Vehicle | ||||||
7 | License Plate Fund. In the event the Vehicle Services | ||||||
8 | Department determines that the volume of expedited title | ||||||
9 | requests received on a given day exceeds the ability of the | ||||||
10 | Vehicle Services Department to process those requests in an | ||||||
11 | expedited manner, the Vehicle Services Department may decline | ||||||
12 | to provide expedited services, and the additional fee for the | ||||||
13 | expedited service shall be refunded to the applicant. | ||||||
14 | (l) If the application refers to a homemade trailer, (i) | ||||||
15 | it must be accompanied by the appropriate documentation | ||||||
16 | regarding the source of materials used in the construction of | ||||||
17 | the trailer, as required by the Secretary of State, (ii) the | ||||||
18 | trailer must be inspected by a Secretary of State employee | ||||||
19 | prior to the issuance of the title, and (iii) upon approval of | ||||||
20 | the Secretary of State, the trailer must have a vehicle | ||||||
21 | identification number, as provided by the Secretary of State, | ||||||
22 | stamped or riveted to the frame. | ||||||
23 | (m) The holder of a Manufacturer's Statement of Origin to | ||||||
24 | a manufactured home may deliver it to any person to facilitate | ||||||
25 | conveying or encumbering the manufactured home. Any person | ||||||
26 | receiving any such Manufacturer's Statement of Origin so |
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1 | delivered holds it in trust for the person delivering it. | ||||||
2 | (n) Within 45 days after the completion of the first | ||||||
3 | retail sale of a manufactured home, the Manufacturer's | ||||||
4 | Statement of Origin to that manufactured home must be | ||||||
5 | surrendered to the Secretary of State either in conjunction | ||||||
6 | with an application for a certificate of title for that | ||||||
7 | manufactured home or in accordance with Section 3-116.1. | ||||||
8 | (o) Each application for certificate of title for a motor | ||||||
9 | vehicle shall be verified by the National Motor Vehicle Title | ||||||
10 | Information System (NMVTIS) for a vehicle history report prior | ||||||
11 | to the Secretary issuing a certificate of title. | ||||||
12 | (p) The Secretary, at the Secretary's discretion, may use | ||||||
13 | any commercially available title history service to assist in | ||||||
14 | determining the proper title designation of a motor vehicle | ||||||
15 | before the issuance of a certificate of title. | ||||||
16 | (Source: P.A. 102-154, eff. 1-1-22 .)
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17 | (625 ILCS 5/3-117.3) | ||||||
18 | Sec. 3-117.3. Junking or salvage certificates; insurance | ||||||
19 | company; salvage dealer. | ||||||
20 | (a) For purposes of this Section, "salvage dealer" means a | ||||||
21 | licensed dealer who primarily sells salvage vehicles on behalf | ||||||
22 | of insurance companies and obtains a "salvage dealer" | ||||||
23 | designation through the used dealer application process under | ||||||
24 | Section 5-102 of this Code. | ||||||
25 | (b) Notwithstanding any other provision of law to the |
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1 | contrary, an insurance company or salvage dealer may, after | ||||||
2 | completing a record search for any owner of a vehicle or a | ||||||
3 | lienholder of record, obtain free of any lien a junking | ||||||
4 | certificate or salvage certificate in the insurance company's | ||||||
5 | name by submitting an application for a junking certificate or | ||||||
6 | salvage certificate to the Secretary of State. The application | ||||||
7 | shall include , but is not limited to, proof of full payment, in | ||||||
8 | whole or in part, to the vehicle owner or, if applicable, any | ||||||
9 | lienholder of record and proof of notice to the vehicle owner | ||||||
10 | and any lienholder via certified mail or other proof of | ||||||
11 | service that a transfer of title shall occur no earlier than 30 | ||||||
12 | days after the date the notice is sent. Upon approval of the | ||||||
13 | application, the Secretary shall issue to the insurance | ||||||
14 | company a junking certificate or salvage certificate free of | ||||||
15 | any lien in the insurance company's name. For the purposes of | ||||||
16 | this subsection, "proof of full payment" means either a | ||||||
17 | photocopy of a deposited insurance claim check or, for an | ||||||
18 | electronic claims payment, a screen shot from the insurer's | ||||||
19 | proprietary claim system that shows the payee, the amount | ||||||
20 | paid, and the date of payment. No other additional | ||||||
21 | requirements shall be required of the insurer. | ||||||
22 | An insurance company or salvage dealer shall not sell a | ||||||
23 | salvage vehicle with a title obtained under this subsection | ||||||
24 | (b) to anyone not authorized to buy salvage vehicles under | ||||||
25 | this Code. | ||||||
26 | This subsection (b) shall apply only to a motor vehicle |
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1 | titled in this State that has been through an insurance claims | ||||||
2 | process and the owner of the vehicle or lienholder, if | ||||||
3 | applicable, has received compensation in exchange for | ||||||
4 | relinquishing the ownership rights of the vehicle to an | ||||||
5 | insurance company licensed under the Illinois Insurance Code | ||||||
6 | and the insurance company is unable to obtain an endorsed | ||||||
7 | certificate of title within 30 days of payment to the owner or | ||||||
8 | lienholder. | ||||||
9 | (c) Notwithstanding any other provision of law to the | ||||||
10 | contrary, a salvage dealer may, after completing a record | ||||||
11 | search for any owner of a vehicle or a lienholder of record, | ||||||
12 | obtain free of any lien a junking certificate or salvage | ||||||
13 | certificate in his or her name by submitting an application | ||||||
14 | for a junking certificate or a salvage certificate to the | ||||||
15 | Secretary of State which shall include, but is not limited to, | ||||||
16 | proof of notice via certified mail or other proof of service to | ||||||
17 | the vehicle owner or any lienholder that a transfer of title | ||||||
18 | shall occur no earlier than 30 days after the date the notice | ||||||
19 | is sent. The notice shall inform the vehicle owner or | ||||||
20 | lienholder that upon payment of any applicable charges, the | ||||||
21 | vehicle may be removed from the salvage dealer's facility. | ||||||
22 | Upon approval of the application, the Secretary shall issue to | ||||||
23 | the salvage dealer a junking certificate or salvage | ||||||
24 | certificate free of any lien in the salvage dealer's name. | ||||||
25 | A salvage dealer shall not sell a salvage vehicle with a | ||||||
26 | title obtained under this subsection (c) to anyone not |
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1 | authorized to buy salvage vehicles under this Code. | ||||||
2 | This subsection (c) shall apply only to a motor vehicle | ||||||
3 | titled in this State and in possession of a salvage dealer by | ||||||
4 | request of an insurance company licensed under the Illinois | ||||||
5 | Insurance Code to take possession of the motor vehicle subject | ||||||
6 | to an insurance claim and the insurance company denies | ||||||
7 | coverage of the vehicle or does not take ownership of the | ||||||
8 | vehicle within 45 days of possession by the salvage dealer. | ||||||
9 | (d) A vehicle owner or lienholder may send notice of | ||||||
10 | dispute of the transfer of title under this Section within 30 | ||||||
11 | days after the required notice is sent by the insurance | ||||||
12 | company or salvage dealer. If a dispute between a vehicle | ||||||
13 | owner or lienholder and an insurance company or salvage dealer | ||||||
14 | cannot be resolved within 45 days after the required notice to | ||||||
15 | the vehicle owner or lienholder is sent, the vehicle owner or | ||||||
16 | lienholder, within 90 days after sending notice of dispute, | ||||||
17 | shall petition a court of competent jurisdiction for an order | ||||||
18 | to determine ownership of the vehicle and shall notify the | ||||||
19 | Secretary of State of the filing of the petition. If a vehicle | ||||||
20 | owner or lienholder does not file a petition within the 90-day | ||||||
21 | period, the title to the vehicle shall be issued to the | ||||||
22 | insurance company or salvage dealer under this Section. | ||||||
23 | (e) Any person who without authority acquires, sells, | ||||||
24 | exchanges, gives away, transfers, or destroys or offers to | ||||||
25 | acquire, sell, exchange, give away, transfer, or destroy the | ||||||
26 | certificate of title to any vehicle which is a junk or salvage |
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1 | vehicle shall be guilty of a Class 3 felony. | ||||||
2 | (f) Any person who knowingly fails to surrender to the | ||||||
3 | Secretary of State a certificate of title, salvage | ||||||
4 | certificate, or certificate of purchase is guilty of a Class A | ||||||
5 | misdemeanor for a first offense and a Class 4 felony for a | ||||||
6 | second and subsequent offense. | ||||||
7 | (g) Any vehicle which is salvage or junk may not be driven | ||||||
8 | or operated on roads and highways within this State. A | ||||||
9 | violation of this subsection (g) is a Class A misdemeanor. A | ||||||
10 | salvage vehicle displaying valid special plates issued under | ||||||
11 | subsection (b) of Section 3-601 of this Code, which is being | ||||||
12 | driven to or from an inspection conducted under Section 3-308 | ||||||
13 | of this Code, is exempt from the provisions of this subsection | ||||||
14 | (g). A salvage vehicle for which a short term permit has been | ||||||
15 | issued under Section 3-307 of this Code is exempt from the | ||||||
16 | provisions of this subsection (g) for the duration of the | ||||||
17 | permit. | ||||||
18 | (h) The Secretary of State may adopt any rules necessary | ||||||
19 | to implement this Section.
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20 | (Source: P.A. 100-104, eff. 11-9-17 .)
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