99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2808

 

Introduced 2/17/2016, by Sen. Antonio Muņoz

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/3-117.1  from Ch. 95 1/2, par. 3-117.1

    Amends the Illinois Vehicle Code. Provides that if the cost of repairing the damage to a vehicle, including labor, would be greater than 70% (rather than 50%) of its fair market value without that damage, the vehicle shall be considered salvage.


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A BILL FOR

 

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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
5Section 3-117.1 as follows:
 
6    (625 ILCS 5/3-117.1)  (from Ch. 95 1/2, par. 3-117.1)
7    Sec. 3-117.1. When junking certificates or salvage
8certificates must be obtained.
9    (a) Except as provided in Chapter 4 of this Code, a person
10who possesses a junk vehicle shall within 15 days cause the
11certificate of title, salvage certificate, certificate of
12purchase, or a similarly acceptable out of state document of
13ownership to be surrendered to the Secretary of State along
14with an application for a junking certificate, except as
15provided in Section 3-117.2, whereupon the Secretary of State
16shall issue to such a person a junking certificate, which shall
17authorize the holder thereof to possess, transport, or, by an
18endorsement, transfer ownership in such junked vehicle, and a
19certificate of title shall not again be issued for such
20vehicle.
21    A licensee who possesses a junk vehicle and a Certificate
22of Title, Salvage Certificate, Certificate of Purchase, or a
23similarly acceptable out-of-state document of ownership for

 

 

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1such junk vehicle, may transport the junk vehicle to another
2licensee prior to applying for or obtaining a junking
3certificate, by executing a uniform invoice. The licensee
4transferor shall furnish a copy of the uniform invoice to the
5licensee transferee at the time of transfer. In any case, the
6licensee transferor shall apply for a junking certificate in
7conformance with Section 3-117.1 of this Chapter. The following
8information shall be contained on a uniform invoice:
9        (1) The business name, address and dealer license
10    number of the person disposing of the vehicle, junk vehicle
11    or vehicle cowl;
12        (2) The name and address of the person acquiring the
13    vehicle, junk vehicle or vehicle cowl, and if that person
14    is a dealer, the Illinois or out-of-state dealer license
15    number of that dealer;
16        (3) The date of the disposition of the vehicle, junk
17    vehicle or vehicle cowl;
18        (4) The year, make, model, color and description of
19    each vehicle, junk vehicle or vehicle cowl disposed of by
20    such person;
21        (5) The manufacturer's vehicle identification number,
22    Secretary of State identification number or Illinois
23    Department of State Police number, for each vehicle, junk
24    vehicle or vehicle cowl part disposed of by such person;
25        (6) The printed name and legible signature of the
26    person or agent disposing of the vehicle, junk vehicle or

 

 

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1    vehicle cowl; and
2        (7) The printed name and legible signature of the
3    person accepting delivery of the vehicle, junk vehicle or
4    vehicle cowl.
5    The Secretary of State may certify a junking manifest in a
6form prescribed by the Secretary of State that reflects those
7vehicles for which junking certificates have been applied or
8issued. A junking manifest may be issued to any person and it
9shall constitute evidence of ownership for the vehicle listed
10upon it. A junking manifest may be transferred only to a person
11licensed under Section 5-301 of this Code as a scrap processor.
12A junking manifest will allow the transportation of those
13vehicles to a scrap processor prior to receiving the junk
14certificate from the Secretary of State.
15    (b) An application for a salvage certificate shall be
16submitted to the Secretary of State in any of the following
17situations:
18        (1) When an insurance company makes a payment of
19    damages on a total loss claim for a vehicle, the insurance
20    company shall be deemed to be the owner of such vehicle and
21    the vehicle shall be considered to be salvage except that
22    ownership of (i) a vehicle that has incurred only hail
23    damage that does not affect the operational safety of the
24    vehicle or (ii) any vehicle 9 model years of age or older
25    may, by agreement between the registered owner and the
26    insurance company, be retained by the registered owner of

 

 

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1    such vehicle. The insurance company shall promptly deliver
2    or mail within 20 days the certificate of title along with
3    proper application and fee to the Secretary of State, and a
4    salvage certificate shall be issued in the name of the
5    insurance company. Notwithstanding the foregoing, an
6    insurer making payment of damages on a total loss claim for
7    the theft of a vehicle shall not be required to apply for a
8    salvage certificate unless the vehicle is recovered and has
9    incurred damage that initially would have caused the
10    vehicle to be declared a total loss by the insurer.
11        (1.1) When a vehicle of a self-insured company is to be
12    sold in the State of Illinois and has sustained damaged by
13    collision, fire, theft, rust corrosion, or other means so
14    that the self-insured company determines the vehicle to be
15    a total loss, or if the cost of repairing the damage,
16    including labor, would be greater than 70% 50% of its fair
17    market value without that damage, the vehicle shall be
18    considered salvage. The self-insured company shall
19    promptly deliver the certificate of title along with proper
20    application and fee to the Secretary of State, and a
21    salvage certificate shall be issued in the name of the
22    self-insured company. A self-insured company making
23    payment of damages on a total loss claim for the theft of a
24    vehicle may exchange the salvage certificate for a
25    certificate of title if the vehicle is recovered without
26    damage. In such a situation, the self-insured shall fill

 

 

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1    out and sign a form prescribed by the Secretary of State
2    which contains an affirmation under penalty of perjury that
3    the vehicle was recovered without damage and the Secretary
4    of State may, by rule, require photographs to be submitted.
5        (2) When a vehicle the ownership of which has been
6    transferred to any person through a certificate of purchase
7    from acquisition of the vehicle at an auction, other
8    dispositions as set forth in Sections 4-208 and 4-209 of
9    this Code, a lien arising under Section 18a-501 of this
10    Code, or a public sale under the Abandoned Mobile Home Act
11    shall be deemed salvage or junk at the option of the
12    purchaser. The person acquiring such vehicle in such manner
13    shall promptly deliver or mail, within 20 days after the
14    acquisition of the vehicle, the certificate of purchase,
15    the proper application and fee, and, if the vehicle is an
16    abandoned mobile home under the Abandoned Mobile Home Act,
17    a certification from a local law enforcement agency that
18    the vehicle was purchased or acquired at a public sale
19    under the Abandoned Mobile Home Act to the Secretary of
20    State and a salvage certificate or junking certificate
21    shall be issued in the name of that person. The salvage
22    certificate or junking certificate issued by the Secretary
23    of State under this Section shall be free of any lien that
24    existed against the vehicle prior to the time the vehicle
25    was acquired by the applicant under this Code.
26        (3) A vehicle which has been repossessed by a

 

 

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1    lienholder shall be considered to be salvage only when the
2    repossessed vehicle, on the date of repossession by the
3    lienholder, has sustained damage by collision, fire,
4    theft, rust corrosion, or other means so that the cost of
5    repairing such damage, including labor, would be greater
6    than 33 1/3% of its fair market value without such damage.
7    If the lienholder determines that such vehicle is damaged
8    in excess of 33 1/3% of such fair market value, the
9    lienholder shall, before sale, transfer or assignment of
10    the vehicle, make application for a salvage certificate,
11    and shall submit with such application the proper fee and
12    evidence of possession. If the facts required to be shown
13    in subsection (f) of Section 3-114 are satisfied, the
14    Secretary of State shall issue a salvage certificate in the
15    name of the lienholder making the application. In any case
16    wherein the vehicle repossessed is not damaged in excess of
17    33 1/3% of its fair market value, the lienholder shall
18    comply with the requirements of subsections (f), (f-5), and
19    (f-10) of Section 3-114, except that the affidavit of
20    repossession made by or on behalf of the lienholder shall
21    also contain an affirmation under penalty of perjury that
22    the vehicle on the date of sale is not damaged in excess of
23    33 1/3% of its fair market value. If the facts required to
24    be shown in subsection (f) of Section 3-114 are satisfied,
25    the Secretary of State shall issue a certificate of title
26    as set forth in Section 3-116 of this Code. The Secretary

 

 

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1    of State may by rule or regulation require photographs to
2    be submitted.
3        (4) A vehicle which is a part of a fleet of more than 5
4    commercial vehicles registered in this State or any other
5    state or registered proportionately among several states
6    shall be considered to be salvage when such vehicle has
7    sustained damage by collision, fire, theft, rust,
8    corrosion or similar means so that the cost of repairing
9    such damage, including labor, would be greater than 33 1/3%
10    of the fair market value of the vehicle without such
11    damage. If the owner of a fleet vehicle desires to sell,
12    transfer, or assign his interest in such vehicle to a
13    person within this State other than an insurance company
14    licensed to do business within this State, and the owner
15    determines that such vehicle, at the time of the proposed
16    sale, transfer or assignment is damaged in excess of 33
17    1/3% of its fair market value, the owner shall, before such
18    sale, transfer or assignment, make application for a
19    salvage certificate. The application shall contain with it
20    evidence of possession of the vehicle. If the fleet vehicle
21    at the time of its sale, transfer, or assignment is not
22    damaged in excess of 33 1/3% of its fair market value, the
23    owner shall so state in a written affirmation on a form
24    prescribed by the Secretary of State by rule or regulation.
25    The Secretary of State may by rule or regulation require
26    photographs to be submitted. Upon sale, transfer or

 

 

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1    assignment of the fleet vehicle the owner shall mail the
2    affirmation to the Secretary of State.
3        (5) A vehicle that has been submerged in water to the
4    point that rising water has reached over the door sill and
5    has entered the passenger or trunk compartment is a "flood
6    vehicle". A flood vehicle shall be considered to be salvage
7    only if the vehicle has sustained damage so that the cost
8    of repairing the damage, including labor, would be greater
9    than 33 1/3% of the fair market value of the vehicle
10    without that damage. The salvage certificate issued under
11    this Section shall indicate the word "flood", and the word
12    "flood" shall be conspicuously entered on subsequent
13    titles for the vehicle. A person who possesses or acquires
14    a flood vehicle that is not damaged in excess of 33 1/3% of
15    its fair market value shall make application for title in
16    accordance with Section 3-116 of this Code, designating the
17    vehicle as "flood" in a manner prescribed by the Secretary
18    of State. The certificate of title issued shall indicate
19    the word "flood", and the word "flood" shall be
20    conspicuously entered on subsequent titles for the
21    vehicle.
22        (6) When any licensed rebuilder, repairer, new or used
23    vehicle dealer, or remittance agent has submitted an
24    application for title to a vehicle (other than an
25    application for title to a rebuilt vehicle) that he or she
26    knows or reasonably should have known to have sustained

 

 

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1    damages in excess of 33 1/3% of the vehicle's fair market
2    value without that damage; provided, however, that any
3    application for a salvage certificate for a vehicle
4    recovered from theft and acquired from an insurance company
5    shall be made as required by paragraph (1) of this
6    subsection (b).
7    (c) Any person who without authority acquires, sells,
8exchanges, gives away, transfers or destroys or offers to
9acquire, sell, exchange, give away, transfer or destroy the
10certificate of title to any vehicle which is a junk or salvage
11vehicle shall be guilty of a Class 3 felony.
12    (d) Any person who knowingly fails to surrender to the
13Secretary of State a certificate of title, salvage certificate,
14certificate of purchase or a similarly acceptable out-of-state
15document of ownership as required under the provisions of this
16Section is guilty of a Class A misdemeanor for a first offense
17and a Class 4 felony for a subsequent offense; except that a
18person licensed under this Code who violates paragraph (5) of
19subsection (b) of this Section is guilty of a business offense
20and shall be fined not less than $1,000 nor more than $5,000
21for a first offense and is guilty of a Class 4 felony for a
22second or subsequent violation.
23    (e) Any vehicle which is salvage or junk may not be driven
24or operated on roads and highways within this State. A
25violation of this subsection is a Class A misdemeanor. A
26salvage vehicle displaying valid special plates issued under

 

 

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1Section 3-601(b) of this Code, which is being driven to or from
2an inspection conducted under Section 3-308 of this Code, is
3exempt from the provisions of this subsection. A salvage
4vehicle for which a short term permit has been issued under
5Section 3-307 of this Code is exempt from the provisions of
6this subsection for the duration of the permit.
7(Source: P.A. 97-832, eff. 7-20-12.)