99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2503

 

Introduced 2/18/2015, by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/3-104  from Ch. 95 1/2, par. 3-104
625 ILCS 5/3-104.5 new
625 ILCS 5/3-118  from Ch. 95 1/2, par. 3-118
625 ILCS 5/3-824  from Ch. 95 1/2, par. 3-824

    Amends the Illinois Vehicle Code. Requires that applications for certificate of title for a motor vehicle shall be verified by the National Motor Vehicle Title Information System (NMVTIS) for a vehicle history report prior to the Secretary of State issuing a certificate of title. Provides that applications for a certificate of title or a salvage certificate that are verified by the NMVTIS and are returned with a warning or error shall be reviewed by the Secretary as to whether the warning or error warrants a change to the type of title or brand that is issued to a motor vehicle. Provides for the type of title or brand that is to be issued to a motor vehicle if the application is returned with an NMVTIS warning or error. Allows applicants to contest the Secretary's title or certificate designation by request of an administrative hearing. Requires that applications for a salvage certificate for a motor vehicle shall be verified by the NMVTIS for a vehicle history report prior to the Secretary issuing a salvage certificate. Provides that refunds may be granted for any title-related transaction if a title application has not been processed by the Secretary. Provides that an applicant for a certificate of title or a salvage certificate shall have 6 months to apply for a refund of cost, or the difference of the certificate of title or salvage certificate if an application is verified by the NMVTIS, and a warning or error is received reporting the vehicle as requiring either a salvage certificate or a junk certificate. Effective immediately.


LRB099 07952 RJF 28092 b

 

 

A BILL FOR

 

HB2503LRB099 07952 RJF 28092 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by changing
5Sections 3-104, 3-118, and 3-824 and by adding Section 3-104.5
6as follows:
 
7    (625 ILCS 5/3-104)  (from Ch. 95 1/2, par. 3-104)
8    Sec. 3-104. Application for certificate of title.
9    (a) The application for a certificate of title for a
10vehicle in this State must be made by the owner to the
11Secretary of State on the form prescribed and must contain:
12        1. The name, Illinois residence and mail address of the
13    owner;
14        2. A description of the vehicle including, so far as
15    the following data exists: Its make, year-model,
16    identifying number, type of body, whether new or used, as
17    to house trailers as defined in Section 1-128 of this Code,
18    and as to manufactured homes as defined in Section 1-144.03
19    of this Code, the square footage based upon the outside
20    dimensions excluding the length of the tongue and hitch,
21    and, as to vehicles of the second division, whether
22    for-hire, not-for-hire, or both for-hire and not-for-hire;
23        3. The date of purchase by applicant and, if

 

 

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1    applicable, the name and address of the person from whom
2    the vehicle was acquired and the names and addresses of any
3    lienholders in the order of their priority and signatures
4    of owners;
5        4. The current odometer reading at the time of transfer
6    and that the stated odometer reading is one of the
7    following: actual mileage, not the actual mileage or
8    mileage is in excess of its mechanical limits; and
9        5. Any further information the Secretary of State
10    reasonably requires to identify the vehicle and to enable
11    him to determine whether the owner is entitled to a
12    certificate of title and the existence or nonexistence of
13    security interests in the vehicle.
14    (a-5) The Secretary of State shall designate on the
15prescribed application form a space where the owner of a
16vehicle may designate a beneficiary, to whom ownership of the
17vehicle shall pass in the event of the owner's death.
18    (b) If the application refers to a vehicle purchased from a
19dealer, it must also be signed by the dealer as well as the
20owner, and the dealer must promptly mail or deliver the
21application and required documents to the Secretary of State.
22    (c) If the application refers to a vehicle last previously
23registered in another State or country, the application must
24contain or be accompanied by:
25        1. Any certified document of ownership so recognized
26    and issued by the other State or country and acceptable to

 

 

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1    the Secretary of State, and
2        2. Any other information and documents the Secretary of
3    State reasonably requires to establish the ownership of the
4    vehicle and the existence or nonexistence of security
5    interests in it.
6    (d) If the application refers to a new vehicle it must be
7accompanied by the Manufacturer's Statement of Origin, or other
8documents as required and acceptable by the Secretary of State,
9with such assignments as may be necessary to show title in the
10applicant.
11    (e) If an application refers to a vehicle rebuilt from a
12vehicle previously salvaged, that application shall comply
13with the provisions set forth in Sections 3-302 through 3-304
14of this Code.
15    (f) An application for a certificate of title for any
16vehicle, whether purchased in Illinois or outside Illinois, and
17even if previously registered in another State, must be
18accompanied by either an exemption determination from the
19Department of Revenue showing that no tax imposed pursuant to
20the Use Tax Act or the vehicle use tax imposed by Section
213-1001 of the Illinois Vehicle Code is owed by anyone with
22respect to that vehicle, or a receipt from the Department of
23Revenue showing that any tax so imposed has been paid. An
24application for a certificate of title for any vehicle
25purchased outside Illinois, even if previously registered in
26another state, must be accompanied by either an exemption

 

 

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1determination from the Department of Revenue showing that no
2tax imposed pursuant to the Municipal Use Tax Act or the County
3Use Tax Act is owed by anyone with respect to that vehicle, or
4a receipt from the Department of Revenue showing that any tax
5so imposed has been paid. In the absence of such a receipt for
6payment or determination of exemption from the Department, no
7certificate of title shall be issued to the applicant.
8    If the proof of payment of the tax or of nonliability
9therefor is, after the issuance of the certificate of title and
10display certificate of title, found to be invalid, the
11Secretary of State shall revoke the certificate and require
12that the certificate of title and, when applicable, the display
13certificate of title be returned to him.
14    (g) If the application refers to a vehicle not manufactured
15in accordance with federal safety and emission standards, the
16application must be accompanied by all documents required by
17federal governmental agencies to meet their standards before a
18vehicle is allowed to be issued title and registration.
19    (h) If the application refers to a vehicle sold at public
20sale by a sheriff, it must be accompanied by the required fee
21and a bill of sale issued and signed by a sheriff. The bill of
22sale must identify the new owner's name and address, the year
23model, make and vehicle identification number of the vehicle,
24court order document number authorizing such sale, if
25applicable, and the name and address of any lienholders in
26order of priority, if applicable.

 

 

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1    (i) If the application refers to a vehicle for which a
2court of law determined the ownership, it must be accompanied
3with a certified copy of such court order and the required fee.
4The court order must indicate the new owner's name and address,
5the complete description of the vehicle, if known, the name and
6address of the lienholder, if any, and must be signed and dated
7by the judge issuing such order.
8    (j) If the application refers to a vehicle sold at public
9auction pursuant to the Labor and Storage Lien (Small Amount)
10Act, it must be accompanied by an affidavit or affirmation
11furnished by the Secretary of State along with the documents
12described in the affidavit or affirmation and the required fee.
13    (k) The Secretary may provide an expedited process for the
14issuance of vehicle titles. Expedited title applications must
15be delivered to the Secretary of State's Vehicle Services
16Department in Springfield by express mail service or hand
17delivery. Applications must be complete, including necessary
18forms, fees, and taxes. Applications received before noon on a
19business day will be processed and shipped that same day.
20Applications received after noon on a business day will be
21processed and shipped the next business day. The Secretary
22shall charge an additional fee of $30 for this service, and
23that fee shall cover the cost of return shipping via an express
24mail service. All fees collected by the Secretary of State for
25expedited services shall be deposited into the Motor Vehicle
26License Plate Fund. In the event the Vehicle Services

 

 

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1Department determines that the volume of expedited title
2requests received on a given day exceeds the ability of the
3Vehicle Services Department to process those requests in an
4expedited manner, the Vehicle Services Department may decline
5to provide expedited services, and the additional fee for the
6expedited service shall be refunded to the applicant.
7    (l) If the application refers to a homemade trailer, (i) it
8must be accompanied by the appropriate documentation regarding
9the source of materials used in the construction of the
10trailer, as required by the Secretary of State, (ii) the
11trailer must be inspected by a Secretary of State employee
12prior to the issuance of the title, and (iii) upon approval of
13the Secretary of State, the trailer must have a vehicle
14identification number, as provided by the Secretary of State,
15stamped or riveted to the frame.
16    (m) The holder of a Manufacturer's Statement of Origin to a
17manufactured home may deliver it to any person to facilitate
18conveying or encumbering the manufactured home. Any person
19receiving any such Manufacturer's Statement of Origin so
20delivered holds it in trust for the person delivering it.
21    (n) Within 45 days after the completion of the first retail
22sale of a manufactured home, the Manufacturer's Statement of
23Origin to that manufactured home must be surrendered to the
24Secretary of State either in conjunction with an application
25for a certificate of title for that manufactured home or in
26accordance with Section 3-116.1.

 

 

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1    (o) Each application for certificate of title for a motor
2vehicle shall be verified by the National Motor Vehicle Title
3Information System (NMVTIS) for a vehicle history report prior
4to the Secretary issuing a certificate of title.
5(Source: P.A. 97-918, eff. 1-1-13; 98-749, eff. 7-16-14.)
 
6    (625 ILCS 5/3-104.5 new)
7    Sec. 3-104.5. Application NMVTIS warnings or errors.
8    (a) Each application for a certificate of title or a
9salvage certificate for a motor vehicle that is verified by the
10National Motor Vehicle Title Information System (NMVTIS) that
11is returned with a warning or error shall be reviewed by the
12Secretary of State, or his or her designees, as to whether the
13warning or error warrants a change to the type of title or
14brand that is issued to a motor vehicle.
15    (b) Any motor vehicle application for a certificate of
16title or a salvage certificate that is returned with a NMVTIS
17warning or error indicating structural defects equivalent to a
18junk vehicle, as defined in Section 1-134.1 of this Code, in
19this State, or a brand indicating the motor vehicle is no
20longer capable of being driven, shall receive a title with a
21"prior out of state junk" brand if that history item was
22entered 120 months or more before the date of the submission of
23the current application for title.
24    (c) Any motor vehicle application for a certificate of
25title or a salvage certificate that is returned with a NMVTIS

 

 

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1warning or error indicating structural defects equivalent to a
2junk vehicle, as defined in Section 1-134.1 of this Code, in
3this State, or a brand indicating the motor vehicle is no
4longer capable of being driven, shall be issued the appropriate
5title, salvage certificate, or junk certificate that reflects
6the motor vehicle's structural history, if that history item
7was entered less than 120 months before the date of the
8submission of the current application for title.
9    (d) Any motor vehicle application for a certificate of
10title or a salvage certificate that is returned with a NMVTIS
11warning or error indicating a brand or label from another
12jurisdiction, that does not have a similar or comparable brand
13or label in this State, shall include a notation or brand on
14the certificate of title stating "previously branded".
15    (e) Any motor vehicle that is subject to the federal Truth
16in Mileage Act, and is returned with a NMVTIS warning or error
17indicating the stated mileage of the vehicle on the application
18for certificate of title is 1,500 or fewer miles less than a
19previously recorded mileage for the vehicle, shall be deemed as
20having an acceptable margin of error and the higher of the 2
21figures shall be indicated on the new certificate of title, if
22the previous mileage was recorded within 90 days of the date of
23the current application for title and if there are no
24indications of fraud or malfeasance, or of altering or
25tampering with the odometer.
26    (f) Any applicant for a certificate of title or a salvage

 

 

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1certificate who receives an alternative salvage or junk
2certificate, or who receives a certificate of title with a
3brand or label indicating the vehicle was previously rebuilt
4prior out of state junk, previously branded, or flood, may
5contest the Secretary's designations by requesting an
6administrative hearing under Section 2-116 of this Code.
7    (g) The Secretary may adopt any rules necessary to
8implement this Section.
 
9    (625 ILCS 5/3-118)  (from Ch. 95 1/2, par. 3-118)
10    Sec. 3-118. Application for salvage or junking
11certificate; contents.
12    (a) An application for a salvage certificate or junking
13certificate shall be made upon the forms prescribed by the
14Secretary of State and contain:
15        1. The name and address of the owner;
16        2. A description of the vehicle including, so far as
17    the following data exists: its make, year-model,
18    identifying number, type of body, whether new or used;
19        3. The date of purchase by applicant; and
20        4. Any further information reasonably required by the
21    Secretary of State.
22    (b) The application for salvage certificate must also
23contain the current odometer reading and that the stated
24odometer reading is one of the following: actual mileage, not
25the actual mileage or mileage is in excess of its mechanical

 

 

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1limits.
2    (b-5) Each application for a salvage certificate for a
3motor vehicle shall be verified by the National Motor Vehicle
4Title Information System (NMVTIS) for a vehicle history report
5prior to the Secretary issuing a salvage certificate.
6    (c) A salvage certificate may be assigned to any person
7licensed under this Act as a rebuilder, automotive parts
8recycler, or scrap processor, or to an out-of-state salvage
9vehicle buyer. A salvage certificate for a vehicle that has
10come from a police impoundment may be assigned to a municipal
11fire department. A junking certificate may be assigned to
12anyone. The provisions for reassignment by dealers under
13paragraph (a) of Section 3-113 shall apply to salvage
14certificates, except as provided in Section 3-117.2. A salvage
15certificate may be reassigned to one other person to whom a
16salvage certificate may be assigned pursuant to this Section.
17(Source: P.A. 95-301, eff. 1-1-08; 95-783, eff. 1-1-09.)
 
18    (625 ILCS 5/3-824)  (from Ch. 95 1/2, par. 3-824)
19    Sec. 3-824. When fees returnable.
20    (a) Whenever any application to the Secretary of State is
21accompanied by any fee as required by law and such application
22is refused or rejected, said fee shall be returned to said
23applicant.
24    (b) Whenever the Secretary of State collects any fee not
25required to be paid under the provisions of this Act, the same

 

 

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1shall be refunded to the person paying the same upon
2application therefor made within 6 months after the date of
3such payment, except as follows: (1) whenever a refund is
4determined to be due and owing as a result of an audit, by this
5State or any other state or province, in accordance with
6Section 2-124 of this Code, of a prorate or apportion license
7fee payment pursuant to any reciprocal compact or agreement
8between this State and any other state or province, and the
9Secretary for any reason fails to promptly make such refund,
10the licensee shall have one year from the date of the
11notification of the audit result to file, with the Secretary,
12an application for refund found to be due and owing as a result
13of such audit; and (2) whenever a person eligible for a reduced
14registration fee pursuant to Section 3-806.3 of this Code has
15paid in excess of the reduced registration fee owed, the refund
16applicant shall have 2 years from the date of overpayment to
17apply with the Secretary for a refund of that part of payment
18made in excess of the established reduced registration fee.
19    (c) Whenever a person dies after making application for
20registration, application for a refund of the registration fees
21and taxes may be made if the vehicle is then sold or disposed
22of so that the registration plates, registration sticker and
23card are never used. The Secretary of State shall refund the
24registration fees and taxes upon receipt within 6 months after
25the application for registration of an application for refund
26accompanied with the unused registration plates or

 

 

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1registration sticker and card and proof of both the death of
2the applicant and the sale or disposition of the vehicle.
3    (d) Any application for refund received after the times
4specified in this Section shall be denied and the applicant in
5order to receive a refund must apply to the Court of Claims.
6    (d-5) Refunds may be granted for any title-related
7transaction if a title application has not been processed by
8the Secretary of State. If any application for a certificate of
9title under Section 3-104 or salvage title under Section 3-118
10is verified by the National Motor Vehicle Title Information
11System (NMVTIS), and receives a warning or error from the
12NMVTIS reporting that the vehicle requires either a salvage
13certificate or a junk certificate in lieu of the original
14applied certificate of title or salvage title, then the
15applicant shall have 6 months to apply for a refund of cost, or
16the difference of the certificate of title or salvage
17certificate.
18    (e) The Secretary of State is authorized to maintain a two
19signature revolving checking account with a suitable
20commercial bank for the purpose of depositing and
21withdrawal-for-return those monies received and determined
22upon receipt to be in excess of the amount or amounts required
23by law.
24    (f) Refunds on audits performed by Illinois or another
25member of the International Registration Plan shall be made in
26accordance with the procedures as set forth in the agreement.

 

 

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1(Source: P.A. 92-69, eff. 7-12-01.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.