State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]


92_HB4407eng

 
HB4407 Engrossed                               LRB9215293JSpc

 1        AN ACT relating to motor vehicles.

 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 of this Code, a
10    person who possesses a junk  vehicle  shall  within  15  days
11    cause   the   certificate   of  title,  salvage  certificate,
12    certificate of purchase, or a  similarly  acceptable  out  of
13    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.
21        A licensee who possesses a junk vehicle and a Certificate
22    of  Title, Salvage Certificate, Certificate of Purchase, or a
23    similarly acceptable out-of-state document of  ownership  for
24    such  junk vehicle, may transport the junk vehicle to another
25    licensee  prior  to  applying  for  or  obtaining  a  junking
26    certificate, by executing a  uniform  invoice.  The  licensee
27    transferor shall furnish a copy of the uniform invoice to the
28    licensee  transferee  at  the time of transfer.  In any case,
29    the licensee transferor shall apply for a junking certificate
30    in conformance with Section 3-117.1  of  this  Chapter.   The
31    following   information  shall  be  contained  on  a  uniform
 
HB4407 Engrossed            -2-                LRB9215293JSpc
 1    invoice:
 2             (1)  The business name, address and  dealer  license
 3        number  of  the  person  disposing  of  the vehicle, junk
 4        vehicle or vehicle cowl;
 5             (2)  The name and address of  the  person  acquiring
 6        the  vehicle,  junk  vehicle or vehicle cowl, and if that
 7        person is a dealer, the Illinois or  out-of-state  dealer
 8        license number of that dealer;
 9             (3)  The  date  of  the  disposition of the vehicle,
10        junk vehicle or vehicle cowl;
11             (4)  The year, make, model, color and description of
12        each vehicle, junk vehicle or vehicle cowl disposed of by
13        such person;
14             (5)  The   manufacturer's   vehicle   identification
15        number,  Secretary  of  State  identification  number  or
16        Illinois Department of  State  Police  number,  for  each
17        vehicle, junk vehicle or vehicle cowl part disposed of by
18        such person;
19             (6)  The  printed  name and legible signature of the
20        person or agent disposing of the vehicle, junk vehicle or
21        vehicle cowl; and
22             (7)  The printed name and legible signature  of  the
23        person accepting delivery of the vehicle, junk vehicle or
24        vehicle cowl.
25        The  Secretary of State may certify a junking manifest in
26    a form prescribed by the Secretary  of  State  that  reflects
27    those  vehicles  for  which  junking  certificates  have been
28    applied or issued.  A junking manifest may be issued  to  any
29    person  and it shall constitute evidence of ownership for the
30    vehicle  listed  upon  it.   A  junking   manifest   may   be
31    transferred  only to a person licensed under Section 5-301 of
32    this Code as a scrap processor.    A  junking  manifest  will
33    allow  the  transportation  of  those  vehicles  to  a  scrap
34    processor  prior  to  receiving the junk certificate from the
 
HB4407 Engrossed            -3-                LRB9215293JSpc
 1    Secretary of State.
 2        (b)  An application for a salvage  certificate  shall  be
 3    submitted  to  the Secretary of State in any of the following
 4    situations:
 5             (1)  When an insurance company makes  a  payment  of
 6        damages  on  a  total  loss  claim  for  a  vehicle,  the
 7        insurance company shall be deemed to be the owner of such
 8        vehicle and the vehicle shall be considered to be salvage
 9        except that ownership of a vehicle that has incurred only
10        hail  damage  or  similar damage that does not affect the
11        operational safety of the vehicle or any vehicle 9  model
12        years  of  age  or  older  may,  by agreement between the
13        registered owner and the insurance company,  be  retained
14        by  the  registered owner of such vehicle.  The insurance
15        company shall promptly deliver or mail within 20 days the
16        certificate of title along with  proper  application  and
17        fee  to the Secretary of State, and a salvage certificate
18        shall be issued in the name of the insurance company.  An
19        insurer making payment of damages on a total  loss  claim
20        for  the  theft  of  a  vehicle  may exchange the salvage
21        certificate for a certificate of title if the vehicle  is
22        recovered  without  damage.   In  such  a  situation, the
23        insurer shall fill out and sign a form prescribed by  the
24        Secretary  of  State  which contains an affirmation under
25        penalty of perjury that the vehicle was recovered without
26        damage and  the  Secretary  of  State  may,  by  rule  or
27        regulation, require photographs to be submitted.
28             (2)  When  a vehicle the ownership of which has been
29        transferred  to  any  person  through  a  certificate  of
30        purchase from acquisition of the vehicle at  an  auction,
31        other  dispositions  as  set  forth in Sections 4-208 and
32        4-209 of this Code, a lien arising under Section  18a-501
33        of this Code, or a public sale under the Abandoned Mobile
34        Home Act shall be deemed salvage or junk at the option of
 
HB4407 Engrossed            -4-                LRB9215293JSpc
 1        the purchaser.  The person acquiring such vehicle in such
 2        manner  shall  promptly  deliver  or mail, within 20 days
 3        after the acquisition of the vehicle, the certificate  of
 4        purchase,  the  proper  application  and fee, and, if the
 5        vehicle is an abandoned mobile home under  the  Abandoned
 6        Mobile  Home  Act,  a  certification  from  a  local  law
 7        enforcement  agency  that  the  vehicle  was purchased or
 8        acquired at a public sale under the Abandoned Mobile Home
 9        Act to the Secretary of State and a  salvage  certificate
10        or  junking  certificate  shall  be issued in the name of
11        that  person.    The  salvage  certificate   or   junking
12        certificate  issued  by the Secretary of State under this
13        Section shall be free of any lien  that  existed  against
14        the vehicle prior to the time the vehicle was acquired by
15        the applicant under this Code.
16             (3)  A  vehicle  which  has  been  repossessed  by a
17        lienholder shall be considered to be  salvage  only  when
18        the  repossessed  vehicle, on the date of repossession by
19        the lienholder, has sustained damage by collision,  fire,
20        theft, rust corrosion, or other means so that the cost of
21        repairing  such damage, including labor, would be greater
22        than 33 1/3%  of  its  fair  market  value  without  such
23        damage.   If  the lienholder determines that such vehicle
24        is damaged in excess of  33  1/3%  of  such  fair  market
25        value,  the  lienholder  shall,  before sale, transfer or
26        assignment of the vehicle, make application for a salvage
27        certificate, and shall submit with such  application  the
28        proper  fee  and  evidence  of  possession.  If the facts
29        required to be shown in subsection (f) of  Section  3-114
30        are  satisfied,  the  Secretary  of  State  shall issue a
31        salvage certificate in the name of the lienholder  making
32        the   application.   In  any  case  wherein  the  vehicle
33        repossessed is not damaged in excess of 33  1/3%  of  its
34        fair  market  value, the lienholder shall comply with the
 
HB4407 Engrossed            -5-                LRB9215293JSpc
 1        requirements of subsections (f),  (f-5),  and  (f-10)  of
 2        Section  3-114, except that the affidavit of repossession
 3        made by or on behalf of the lienholder shall also contain
 4        an affirmation under penalty of perjury that the  vehicle
 5        on  the  date of sale is not damaged in excess of 33 1/3%
 6        of its fair market value.  If the facts  required  to  be
 7        shown  in  subsection (f) of Section 3-114 are satisfied,
 8        the Secretary of State shall issue a certificate of title
 9        as set forth in Section 3-116 of this Code. The Secretary
10        of State may by rule or regulation require photographs to
11        be submitted.
12             (4)  A vehicle which is a part of a  fleet  of  more
13        than  5  commercial  vehicles registered in this State or
14        any  other  state  or  registered  proportionately  among
15        several states shall be considered  to  be  salvage  when
16        such  vehicle  has  sustained  damage by collision, fire,
17        theft, rust, corrosion or similar means so that the  cost
18        of  repairing  such  damage,  including  labor,  would be
19        greater than 33 1/3% of the  fair  market  value  of  the
20        vehicle  without  such  damage.   If the owner of a fleet
21        vehicle desires to sell, transfer, or assign his interest
22        in such vehicle to a person within this State other  than
23        an  insurance company licensed to do business within this
24        State, and the owner determines that such vehicle, at the
25        time of the proposed  sale,  transfer  or  assignment  is
26        damaged  in  excess  of 33 1/3% of its fair market value,
27        the  owner  shall,  before   such   sale,   transfer   or
28        assignment,  make  application for a salvage certificate.
29        The  application  shall  contain  with  it  evidence   of
30        possession  of  the vehicle.  If the fleet vehicle at the
31        time of its sale, transfer, or assignment is not  damaged
32        in  excess of 33 1/3% of its fair market value, the owner
33        shall so  state  in  a  written  affirmation  on  a  form
34        prescribed   by   the  Secretary  of  State  by  rule  or
 
HB4407 Engrossed            -6-                LRB9215293JSpc
 1        regulation.  The  Secretary  of  State  may  by  rule  or
 2        regulation  require  photographs  to  be submitted.  Upon
 3        sale, transfer or assignment of  the  fleet  vehicle  the
 4        owner  shall  mail  the  affirmation  to the Secretary of
 5        State.
 6             (5)  A vehicle that has been submerged in  water  to
 7        the  point  that  rising  water has reached over the door
 8        sill and has entered the passenger or  trunk  compartment
 9        is   a   "flood  vehicle".   A  flood  vehicle  shall  be
10        considered  to  be  salvage  only  if  the  vehicle   has
11        sustained  damage  so  that  the  cost  of  repairing the
12        damage, including labor, would be greater than 33 1/3% of
13        the fair market value of the vehicle without that damage.
14        The salvage certificate issued under this  Section  shall
15        indicate  the word "flood", and the word "flood" shall be
16        conspicuously  entered  on  subsequent  titles  for   the
17        vehicle.   A  person  who  possesses  or acquires a flood
18        vehicle that is not damaged in excess of 33 1/3%  of  its
19        fair  market  value  shall  make application for title in
20        accordance with Section 3-116 of this  Code,  designating
21        the  vehicle  as  "flood"  in  a manner prescribed by the
22        Secretary of State.   The  certificate  of  title  issued
23        shall  indicate  the  word  "flood", and the word "flood"
24        shall be conspicuously entered on subsequent  titles  for
25        the vehicle.
26        (c)  Any  person  who  without authority acquires, sells,
27    exchanges, gives away, transfers or  destroys  or  offers  to
28    acquire,  sell,  exchange, give away, transfer or destroy the
29    certificate of title to  any  vehicle  which  is  a  junk  or
30    salvage vehicle shall be guilty of a Class 3 felony.
31        (d)  Any  person  who knowingly fails to surrender to the
32    Secretary  of  State  a   certificate   of   title,   salvage
33    certificate,   certificate   of   purchase   or  a  similarly
34    acceptable out-of-state document  of  ownership  as  required
 
HB4407 Engrossed            -7-                LRB9215293JSpc
 1    under  the  provisions of this Section is guilty of a Class A
 2    misdemeanor for a first offense and a Class 4  felony  for  a
 3    subsequent  offense; except that a person licensed under this
 4    Code who violates paragraph (5) of  subsection  (b)  of  this
 5    Section  is  guilty  of a business offense and shall be fined
 6    not less than $1,000 nor more than $5,000 for a first offense
 7    and is guilty of a Class 4 felony for a second or  subsequent
 8    violation.
 9        (e)  Any  vehicle  which  is  salvage  or junk may not be
10    driven or operated on roads and highways within  this  State.
11    A  violation  of this subsection is a Class A misdemeanor.  A
12    salvage vehicle displaying valid special plates issued  under
13    Section  3-601(b)  of  this Code, which is being driven to or
14    from an inspection conducted  under  Section  3-308  of  this
15    Code,  is  exempt  from the provisions of this subsection.  A
16    salvage vehicle for which a short term permit has been issued
17    under  Section  3-307  of  this  Code  is  exempt  from   the
18    provisions of this subsection for the duration of the permit.
19    (Source: P.A. 89-669, eff. 1-1-97; 90-665, eff. 1-1-99.)

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.

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