SB3718 103RD GENERAL ASSEMBLY

LRB103 36551 MXP 66658 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3718

Introduced 2/9/2024, by Sen. Adriane Johnson

SYNOPSIS AS INTRODUCED:

215 ILCS 5/143.19.4 new
625 ILCS 5/6-201

Amends the Illinois Insurance Code. Provides that an insurance company that provides automobile liability insurance to any registered vehicle required to have liability coverage under the Illinois Vehicle Code must notify the Secretary within 30 days after a policy cancellation. Amends the Illinois Vehicle Code. Provides that, within 30 days after an insurance company notifies the Secretary of a liability insurance policy cancellation, the Secretary of State shall notify the owner of the motor vehicle that is the subject of the canceled liability insurance policy that the owner has 30 days after the issuance of the notice to provide verification of a liability insurance policy for the vehicle and that, if the owner fails to provide the verification with the 30-day period, the Secretary shall cancel the owner's license or permit until the owner provides the required verification.

A BILL FOR

AN ACT concerning transportation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by adding Section 143.19.4 as follows:

(215 ILCS 5/143.19.4 new)

Sec. 143.19.4. Cancellation of automobile liability insurance policy; reporting. An insurance company that provides automobile liability insurance to any registered vehicle subject to Section 7-601 of the Illinois Vehicle Code must notify the Secretary within 30 days after a policy cancellation.

Section 10. The Illinois Vehicle Code is amended by changing Section 6-201 as follows:

(625 ILCS 5/6-201)

Sec. 6-201. Authority to cancel licenses and permits.

(a) The Secretary of State is authorized to cancel any license or permit upon determining that the holder thereof:

1. was not entitled to the issuance thereof hereunder; or

2. failed to give the required or correct information in his application; or

3. failed to pay any fees owed to the Secretary of State under this Code for the license or permit; or

4. committed any fraud in the making of such application; or

5. is ineligible therefor under the provisions of Section 6-103 of this Act, as amended; or

6. has refused or neglected to submit an alcohol, drug, and intoxicating compound evaluation or to submit to examination or re-examination as required under this Act; or

7. has been convicted of violating the Cannabis Control Act, the Illinois Controlled Substances Act, the Methamphetamine Control and Community Protection Act, or the Use of Intoxicating Compounds Act while that individual was in actual physical control of a motor vehicle. For purposes of this Section, any person placed on probation under Section 10 of the Cannabis Control Act, Section 410 of the Illinois Controlled Substances Act, or Section 70 of the Methamphetamine Control and Community Protection Act shall not be considered convicted. Any person found guilty of this offense, while in actual physical control of a motor vehicle, shall have an entry made in the court record by the judge that this offense did occur while the person was in actual physical control of a motor vehicle and order the clerk of the court to report the violation to the Secretary of State as such. After the cancellation, the Secretary of State shall not issue a new license or permit for a period of one year after the date of cancellation. However, upon application, the Secretary of State may, if satisfied that the person applying will not endanger the public safety, or welfare, issue a restricted driving permit granting the privilege of driving a motor vehicle between the petitioner's residence and petitioner's place of employment or within the scope of the petitioner's employment related duties, or to allow transportation for the petitioner or a household member of the petitioner's family for the receipt of necessary medical care, or provide transportation for the petitioner to and from alcohol or drug remedial or rehabilitative activity recommended by a licensed service provider, or for the petitioner to attend classes, as a student, in an accredited educational institution. The petitioner must demonstrate that no alternative means of transportation is reasonably available; provided that the Secretary's discretion shall be limited to cases where undue hardship, as defined by the rules of the Secretary of State, would result from a failure to issue such restricted driving permit. In each case the Secretary of State may issue such restricted driving permit for such period as he deems appropriate, except that such permit shall expire no later than 2 years from the date of issuance. A restricted driving permit issued hereunder shall be subject to cancellation, revocation and suspension by the Secretary of State in like manner and for like cause as a driver's license issued hereunder may be cancelled, revoked or suspended; except that a conviction upon one or more offenses against laws or ordinances regulating the movement of traffic shall be deemed sufficient cause for the revocation, suspension or cancellation of a restricted driving permit. The Secretary of State may, as a condition to the issuance of a restricted driving permit, require the applicant to participate in a driver remedial or rehabilitative program. In accordance with 49 C.F.R. 384, the Secretary of State may not issue a restricted driving permit for the operation of a commercial motor vehicle to a person holding a CDL whose driving privileges have been revoked, suspended, cancelled, or disqualified under this Code; or

8. failed to submit a report as required by Section 6-116.5 of this Code; or

9. has been convicted of a sex offense as defined in the Sex Offender Registration Act. The driver's license shall remain cancelled until the driver registers as a sex offender as required by the Sex Offender Registration Act, proof of the registration is furnished to the Secretary of State and the sex offender provides proof of current address to the Secretary; or

10. is ineligible for a license or permit under Section 6-107, 6-107.1, or 6-108 of this Code; or

11. refused or neglected to appear at a Driver Services facility to have the license or permit corrected and a new license or permit issued or to present documentation for verification of identity; or

12. failed to submit a medical examiner's certificate or medical variance as required by 49 C.F.R. 383.71 or submitted a fraudulent medical examiner's certificate or medical variance; or

13. has had his or her medical examiner's certificate, medical variance, or both removed or rescinded by the Federal Motor Carrier Safety Administration; or

14. failed to self-certify as to the type of driving in which the CDL driver engages or expects to engage; or

15. has submitted acceptable documentation indicating out-of-state residency to the Secretary of State to be released from the requirement of showing proof of financial responsibility in this State; or

16. was convicted of fraud relating to the testing or issuance of a CDL or CLP, in which case only the CDL or CLP shall be cancelled. After cancellation, the Secretary shall not issue a CLP or CDL for a period of one year from the date of cancellation; or

17. has a special restricted license under subsection (g) of Section 6-113 of this Code and failed to submit the required annual vision specialist report that the special restricted license holder's vision has not changed; or

18. has a special restricted license under subsection (g) of Section 6-113 of this Code and was convicted or received court supervision for a violation of this Code that occurred during nighttime hours or was involved in a motor vehicle crash during nighttime hours in which the restricted license holder was at fault; or

19. has assisted an out-of-state resident in acquiring an Illinois driver's license or identification card by providing or allowing the out-of-state resident to use his or her Illinois address of residence and is complicit in distributing and forwarding the Illinois driver's license or identification card to the out-of-state resident; or .

20. has failed to provide verification of a liability insurance policy as required under Section 7-601 of this Code after an insurance company has notified the Secretary of State of a policy cancellation as required under Section 143.19.4 of the Illinois Insurance Code and the compliance period under this paragraph has expired. Within 30 days after an insurance company notifies the Secretary of a liability insurance policy cancellation under Section 143.19.4 of the Illinois Insurance Code, the Secretary of State shall notify the owner of the motor vehicle that is the subject of the canceled liability insurance policy that the owner has 30 days after the issuance of the notice to provide verification of a liability insurance policy for the vehicle as provided in Article VI of Chapter 7 of this Code and that, if the owner fails to provide the verification with the 30-day period, the Secretary shall cancel the owner's license or permit until the owner provides the required verification.

(b) Upon such cancellation the licensee or permittee must surrender the license or permit so cancelled to the Secretary of State.

(c) Except as provided in Sections 6-206.1 and 7-702.1, the Secretary of State shall have exclusive authority to grant, issue, deny, cancel, suspend and revoke driving privileges, drivers' licenses and restricted driving permits.

(d) The Secretary of State may adopt rules to implement this Section.

(Source: P.A. 101-623, eff. 7-1-20; 102-982, eff. 7-1-23.)