Full Text of HB2526 102nd General Assembly
HB2526 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB2526 Introduced 2/19/2021, by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: |
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625 ILCS 5/3-117.1 | from Ch. 95 1/2, par. 3-117.1 |
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Amends the Illinois Vehicle Code. Provides that a vehicle of 4 model years or older, rather than 9 model years or older, may be retained by the registered owner instead of by the insurance company, even after the insurance company makes a payment of damages on total loss claim for the vehicle. Provides that an application for a salvage certificate shall be submitted to the Secretary of State when any licensed rebuilder, repairer, new or used vehicle dealer or remittance agent has submitted an application for title to a vehicle that the person knows or reasonably should have known to have sustained damages in excess of 50%, instead of 33 1/3 percent, of the vehicle's fair market value without that damage.
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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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Vehicle Code is amended by | 5 | | changing Section 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 | 8 | | certificates must
be obtained. | 9 | | (a) Except as provided in Chapter 4 and Section 3-117.3 of | 10 | | this Code, a person who possesses a
junk vehicle shall within | 11 | | 15 days cause the certificate of title, salvage
certificate, | 12 | | certificate of purchase, or a similarly acceptable | 13 | | out-of-state
document of ownership to be surrendered to the | 14 | | Secretary of State along with an
application for a junking | 15 | | certificate, except as provided in Section 3-117.2,
whereupon | 16 | | the Secretary of State shall issue to such a person a junking
| 17 | | certificate, which shall authorize the holder thereof to | 18 | | possess, transport,
or, by an endorsement, transfer ownership | 19 | | in such junked vehicle, and a
certificate of title shall not | 20 | | again be issued for such vehicle. The owner of a junk vehicle | 21 | | is not required to surrender the certificate of title under | 22 | | this subsection if (i) there is no lienholder on the | 23 | | certificate of title or (ii) the owner of the junk vehicle has |
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| 1 | | a valid lien release from the lienholder releasing all | 2 | | interest in the vehicle and the owner applying for the junk | 3 | | certificate matches the current record on the certificate of | 4 | | title file for the vehicle.
| 5 | | A licensee who possesses a junk vehicle and a Certificate | 6 | | of Title,
Salvage Certificate, Certificate of Purchase, or a | 7 | | similarly acceptable
out-of-state document of ownership for | 8 | | such junk vehicle, may transport the
junk vehicle to another | 9 | | licensee prior to applying for or obtaining a
junking | 10 | | certificate, by executing a uniform invoice. The licensee
| 11 | | transferor shall furnish a copy of the uniform invoice to the | 12 | | licensee
transferee at the time of transfer. In any case, the | 13 | | licensee transferor
shall apply for a junking certificate in | 14 | | conformance with Section 3-117.1
of this Chapter. The | 15 | | following information shall be contained on a uniform
invoice:
| 16 | | (1) The business name, address and dealer license | 17 | | number of the person
disposing of the vehicle, junk | 18 | | vehicle or vehicle cowl;
| 19 | | (2) The name and address of the person acquiring the | 20 | | vehicle, junk
vehicle or vehicle cowl, and if that person | 21 | | is a dealer, the Illinois or
out-of-state dealer license | 22 | | number of that dealer;
| 23 | | (3) The date of the disposition of the vehicle, junk | 24 | | vehicle or vehicle
cowl;
| 25 | | (4) The year, make, model, color and description of | 26 | | each vehicle, junk
vehicle or vehicle cowl disposed of by |
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| 1 | | such person;
| 2 | | (5) The manufacturer's vehicle identification number, | 3 | | Secretary of State
identification number or Illinois | 4 | | Department of State Police number,
for each vehicle, junk | 5 | | vehicle or vehicle cowl part disposed of by such person;
| 6 | | (6) The printed name and legible signature of the | 7 | | person or agent
disposing of the vehicle, junk vehicle or | 8 | | vehicle cowl; and
| 9 | | (7) The printed name and legible signature of the | 10 | | person accepting
delivery of the vehicle, junk vehicle or | 11 | | vehicle cowl.
| 12 | | The Secretary of State may certify a junking manifest in a | 13 | | form prescribed by
the Secretary of State that reflects those | 14 | | vehicles for which junking
certificates have been applied or | 15 | | issued. A junking manifest
may be issued to any person and it | 16 | | shall constitute evidence of ownership
for the vehicle listed | 17 | | upon it. A junking manifest may be transferred only
to a person | 18 | | licensed under Section 5-301 of this Code as a scrap | 19 | | processor.
A junking manifest will allow the transportation of | 20 | | those
vehicles to a scrap processor prior to receiving the | 21 | | junk certificate from
the Secretary of State.
| 22 | | (b) An application for a salvage certificate shall be | 23 | | submitted to the
Secretary of State in any of the following | 24 | | situations:
| 25 | | (1) When an insurance company makes a payment of | 26 | | damages on a total loss
claim for a vehicle, the insurance |
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| 1 | | company shall be deemed to be the owner of
such vehicle and | 2 | | the vehicle shall be considered to be salvage except that
| 3 | | ownership of (i) a vehicle that has incurred only hail | 4 | | damage that does
not
affect the operational safety of the | 5 | | vehicle or (ii) any vehicle 4
9 model years of age or older | 6 | | may, by agreement between
the registered owner and the | 7 | | insurance company, be retained by the registered
owner of | 8 | | such vehicle. The insurance company shall promptly deliver | 9 | | or mail
within 20 days the certificate of title along with | 10 | | proper application and fee
to the Secretary of State, and | 11 | | a salvage certificate shall be issued in the
name of the | 12 | | insurance company. Notwithstanding the foregoing, an | 13 | | insurer making payment of damages on a total loss claim | 14 | | for the theft of a vehicle shall not be required to apply | 15 | | for a salvage certificate unless the vehicle is recovered | 16 | | and has incurred damage that initially would have caused | 17 | | the vehicle to be declared a total loss by the insurer. | 18 | | (1.1) When a vehicle of a self-insured company is to | 19 | | be sold in the State of Illinois and has sustained damaged | 20 | | by collision, fire, theft, rust corrosion, or other means | 21 | | so that the self-insured company determines the vehicle to | 22 | | be a total loss, or if the cost of repairing the damage, | 23 | | including labor, would be greater than 70% of its fair | 24 | | market value without that damage, the vehicle shall be | 25 | | considered salvage. The self-insured company shall | 26 | | promptly deliver the certificate of title along with |
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| 1 | | proper application and fee to the Secretary of State, and | 2 | | a salvage certificate shall be issued in the name of the | 3 | | self-insured company. A self-insured company making | 4 | | payment of damages on a total loss claim for the theft of a | 5 | | vehicle may exchange the salvage certificate for a | 6 | | certificate of title if the vehicle is recovered without | 7 | | damage. In such a situation, the self-insured shall fill | 8 | | out and sign a form prescribed by the Secretary of State | 9 | | which contains an affirmation under penalty of perjury | 10 | | that the vehicle was recovered without damage and the | 11 | | Secretary of State may, by rule, require photographs to be | 12 | | submitted.
| 13 | | (2) When a vehicle the ownership of which has been | 14 | | transferred to any
person through a certificate of | 15 | | purchase from acquisition of the vehicle at an
auction, | 16 | | other dispositions as set forth in Sections 4-208 and | 17 | | 4-209
of this Code, or a lien arising under Section | 18 | | 18a-501 of this Code shall be deemed
salvage or junk at the | 19 | | option of the purchaser. The person acquiring such
vehicle | 20 | | in such manner shall promptly deliver or mail, within 20 | 21 | | days after the
acquisition of the vehicle, the certificate | 22 | | of purchase, the
proper application and fee, and, if the | 23 | | vehicle is an abandoned mobile home
under the Abandoned | 24 | | Mobile Home Act, a certification from a local law
| 25 | | enforcement agency that the vehicle was purchased or | 26 | | acquired at a public sale
under the Abandoned Mobile Home |
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| 1 | | Act to the Secretary of State and a salvage
certificate or | 2 | | junking certificate shall be issued in the name of that | 3 | | person.
The salvage certificate or junking certificate | 4 | | issued by the Secretary of State
under this Section shall | 5 | | be free of any lien that existed against the vehicle
prior | 6 | | to the time the vehicle was acquired by the applicant | 7 | | under this Code.
| 8 | | (3) A vehicle which has been repossessed by a | 9 | | lienholder shall be
considered to be salvage only when the | 10 | | repossessed vehicle, on the date of
repossession by the | 11 | | lienholder, has sustained damage by collision, fire, | 12 | | theft,
rust corrosion, or other means so that the cost of | 13 | | repairing
such damage, including labor, would be greater | 14 | | than 33 1/3% of its fair market
value without such damage. | 15 | | If the lienholder determines that such vehicle is
damaged | 16 | | in excess of 33 1/3% of such fair market value, the | 17 | | lienholder shall,
before sale, transfer or assignment of | 18 | | the vehicle, make application for a
salvage certificate, | 19 | | and shall submit with such application the proper fee
and | 20 | | evidence of possession. If the facts required to be shown | 21 | | in
subsection (f) of Section 3-114 are satisfied, the | 22 | | Secretary of State shall
issue a salvage certificate in | 23 | | the name of the lienholder making the
application. In any | 24 | | case wherein the vehicle repossessed is not damaged in
| 25 | | excess of 33 1/3% of its fair market value, the lienholder
| 26 | | shall comply with the requirements of subsections (f), |
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| 1 | | (f-5), and (f-10) of
Section 3-114, except that the | 2 | | affidavit of repossession made by or on behalf
of the | 3 | | lienholder
shall also contain an affirmation under penalty | 4 | | of perjury that the vehicle
on
the date of sale is not
| 5 | | damaged in
excess of 33 1/3% of its fair market value. If | 6 | | the facts required to be shown
in subsection (f) of | 7 | | Section 3-114 are satisfied, the Secretary of State
shall | 8 | | issue a certificate of title as set forth in Section 3-116 | 9 | | of this Code.
The Secretary of State may by rule or | 10 | | regulation require photographs to be
submitted.
| 11 | | (4) A vehicle which is a part of a fleet of more than 5 | 12 | | commercial
vehicles registered in this State or any other | 13 | | state or registered
proportionately among several states | 14 | | shall be considered to be salvage when
such vehicle has | 15 | | sustained damage by collision, fire, theft, rust,
| 16 | | corrosion or similar means so that the cost of repairing | 17 | | such damage, including
labor, would be greater than 33 | 18 | | 1/3% of the fair market value of the vehicle
without such | 19 | | damage. If the owner of a fleet vehicle desires to sell,
| 20 | | transfer, or assign his interest in such vehicle to a | 21 | | person within this State
other than an insurance company | 22 | | licensed to do business within this State, and
the owner | 23 | | determines that such vehicle, at the time of the proposed | 24 | | sale,
transfer or assignment is damaged in excess of 33 | 25 | | 1/3% of its fair market
value, the owner shall, before | 26 | | such sale, transfer or assignment, make
application for a |
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| 1 | | salvage certificate. The application shall contain with it
| 2 | | evidence of possession of the vehicle. If the fleet | 3 | | vehicle at the time of its
sale, transfer, or assignment | 4 | | is not damaged in excess of 33 1/3% of its
fair market | 5 | | value, the owner shall so state in a written affirmation | 6 | | on a
form prescribed by the Secretary of State by rule or | 7 | | regulation. The
Secretary of State may by rule or | 8 | | regulation require photographs to be
submitted. Upon sale, | 9 | | transfer or assignment of the fleet vehicle the
owner | 10 | | shall mail the affirmation to the Secretary of State.
| 11 | | (5) A vehicle that has been submerged in water to the
| 12 | | point that rising water has reached over the door sill and | 13 | | has
entered the
passenger or trunk compartment is a "flood | 14 | | vehicle". A flood vehicle shall
be considered to be | 15 | | salvage only if the vehicle has sustained damage so that
| 16 | | the cost of repairing the damage, including labor, would | 17 | | be greater than 33
1/3% of the fair market value of the | 18 | | vehicle without that damage. The salvage
certificate | 19 | | issued under this
Section shall indicate the word "flood", | 20 | | and the word "flood" shall be
conspicuously entered on | 21 | | subsequent titles for the vehicle. A person who
possesses | 22 | | or acquires a flood vehicle that is not damaged in excess | 23 | | of 33 1/3%
of its fair market value shall make application | 24 | | for title in accordance with
Section 3-116 of this Code, | 25 | | designating the vehicle as "flood" in a manner
prescribed | 26 | | by the Secretary of State. The certificate of title issued |
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| 1 | | shall
indicate the word "flood", and the word "flood" | 2 | | shall be conspicuously entered
on subsequent titles for | 3 | | the vehicle.
| 4 | | (6) When any licensed rebuilder, repairer, new or used | 5 | | vehicle dealer, or remittance agent has submitted an | 6 | | application for title to a vehicle (other than an | 7 | | application for title to a rebuilt vehicle) that he or she | 8 | | knows or reasonably should have known to have sustained | 9 | | damages in excess of 50% 33 1/3% of the vehicle's fair | 10 | | market value without that damage; provided, however, that | 11 | | any application for a salvage certificate for a vehicle | 12 | | recovered from theft and acquired from an insurance | 13 | | company shall be made as required by paragraph (1) of this | 14 | | subsection (b). | 15 | | (c) Any person who without authority acquires, sells, | 16 | | exchanges, gives
away, transfers or destroys or offers to | 17 | | acquire, sell, exchange, give
away, transfer or destroy the | 18 | | certificate of title to any vehicle which is
a junk or salvage | 19 | | vehicle shall be guilty of a Class 3 felony.
| 20 | | (d) Except as provided under subsection (a), any person | 21 | | who knowingly fails to surrender to the Secretary of State a
| 22 | | certificate of title, salvage certificate, certificate of | 23 | | purchase or a
similarly acceptable out-of-state document of | 24 | | ownership as required under
the provisions of this Section is | 25 | | guilty of a Class A misdemeanor for a
first offense and a Class | 26 | | 4 felony for a subsequent offense; except that a
person |
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| 1 | | licensed under this Code who violates paragraph (5) of | 2 | | subsection (b)
of this Section is
guilty of a business offense | 3 | | and shall be fined not less than $1,000 nor more
than $5,000 | 4 | | for a first offense and is guilty of a Class 4 felony
for a | 5 | | second or subsequent violation.
| 6 | | (e) Any vehicle which is salvage or junk may not be driven | 7 | | or operated
on roads and highways within this State. A | 8 | | violation of this subsection is
a Class A misdemeanor. A | 9 | | salvage vehicle displaying valid special plates
issued under | 10 | | Section 3-601(b) of this Code, which is being driven to or
from | 11 | | an inspection conducted under Section 3-308 of this Code, is | 12 | | exempt
from the provisions of this subsection. A salvage | 13 | | vehicle for which a
short term permit has been issued under | 14 | | Section 3-307 of this Code is
exempt from the provisions of | 15 | | this subsection for the duration of the permit.
| 16 | | (Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19; | 17 | | 100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)
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