Public Act 095-0495
 		





SB1164 Enrolled
LRB095 04311 DRH 25284 b






    AN ACT concerning transportation.

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

 
    Section 5. The Illinois Vehicle Code is amended  by changing 
Section 3-117.1 as follows:
 



    (625 ILCS 5/3-117.1)  (from Ch. 95 1/2, par. 3-117.1)



    Sec. 3-117.1. When junking certificates or salvage 
certificates must
be obtained.

    (a) Except as provided in Chapter 4 of this Code, a person 
who possesses a
junk vehicle shall within 15 days cause the 
certificate of title, salvage
certificate, certificate of 
purchase, or a similarly acceptable out of state
document of 
ownership to be surrendered to the Secretary of State along 
with an
application for a junking certificate, except as 
provided in Section 3-117.2,
whereupon the Secretary of State 
shall issue to such a person a junking
certificate, which shall 
authorize the holder thereof to possess, transport,
or, by an 
endorsement, transfer ownership in such junked vehicle, and a

certificate of title shall not again be issued for such 
vehicle.

    A licensee who possesses a junk vehicle and a Certificate 
of Title,
Salvage Certificate, Certificate of Purchase, or a 
similarly acceptable
out-of-state document of ownership for 
such junk vehicle, may transport the
junk vehicle to another 
licensee prior to applying for or obtaining a
junking 
certificate, by executing a uniform invoice. The licensee

transferor shall furnish a copy of the uniform invoice to the 
licensee
transferee at the time of transfer.  In any case, the 
licensee transferor
shall apply for a junking certificate in 
conformance with Section 3-117.1
of this Chapter.  The following 
information shall be contained on a uniform
invoice:


        (1) The business name, address and dealer license 
    number of the person
disposing of the vehicle, junk vehicle 
    or vehicle cowl;


        (2) The name and address of the person acquiring the 
    vehicle, junk
vehicle or vehicle cowl, and if that person 
    is a dealer, the Illinois or
out-of-state dealer license 
    number of that dealer;


        (3) The date of the disposition of the vehicle, junk 
    vehicle or vehicle
cowl;


        (4) The year, make, model, color and description of 
    each vehicle, junk
vehicle or vehicle cowl disposed of by 
    such person;


        (5) The manufacturer's vehicle identification number, 
    Secretary of State
identification number or Illinois 
    Department of State Police number,
for each vehicle, junk 
    vehicle or vehicle cowl part disposed of by such person;


        (6) The printed name and legible signature of the 
    person or agent
disposing of the vehicle, junk vehicle or 
    vehicle cowl; and


        (7) The printed name and legible signature of the 
    person accepting
delivery of the vehicle, junk vehicle or 
    vehicle cowl.

    The Secretary of State may certify a junking manifest in a 
form prescribed by
the Secretary of State that reflects those 
vehicles for which junking
certificates have been applied or 
issued.  A junking manifest
may be issued to any person and it 
shall constitute evidence of ownership
for the vehicle listed 
upon it.  A junking manifest may be transferred only
to a person 
licensed under Section 5-301 of this Code as a scrap processor.
 
A junking manifest will allow the transportation of those

vehicles to a scrap processor prior to receiving the junk 
certificate from
the Secretary of State.

    (b) An application for a salvage certificate shall be 
submitted to the
Secretary of State in any of the following 
situations:


        (1) When an insurance company makes a payment of 
    damages on a total loss
claim for a vehicle, the insurance 
    company shall be deemed to be the owner of
such vehicle and 
    the vehicle shall be considered to be salvage except that

    ownership of (i) a vehicle that has incurred only hail 
    damage that does
not
affect the operational safety of the 
    vehicle or (ii) any vehicle
9 model years of age or older 
    may, by agreement between
the registered owner and the 
    insurance company, be retained by the registered
owner of 
    such vehicle.  The insurance  company shall promptly deliver 
    or mail
within 20 days the certificate of title along with 
    proper application and fee
to the Secretary of State, and a 
    salvage certificate shall be issued in the
name of the 
    insurance company.  An insurer making payment of damages on 
    a total
loss claim for the theft of a vehicle may exchange 
    the salvage certificate for
a certificate of title if the 
    vehicle is recovered without damage.  In such a
situation, 
    the insurer shall fill out and sign a form prescribed by 
    the
Secretary of State which contains an affirmation under 
    penalty of perjury that
the vehicle was recovered without 
    damage and the Secretary of State may, by
rule or 
    regulation, require photographs to be submitted.
        (1.1) When a vehicle of a self-insured company is to be 
    sold in the State of Illinois and  has sustained damaged by 
    collision, fire, theft, rust corrosion, or other means so 
    that the self-insured company determines the vehicle to be 
    a total loss, or if the cost of repairing the damage, 
    including labor, would be greater than 50% of its fair 
    market value without that damage, the vehicle shall be 
    considered salvage.  The self-insured company shall 
    promptly deliver the certificate of title along with proper 
    application and fee to the Secretary of State, and a 
    salvage certificate shall be issued in the name of the 
    self-insured company. A self-insured company making 
    payment of damages on a total loss claim for the theft of a 
    vehicle may exchange the salvage certificate for a 
    certificate of title if the vehicle is recovered without 
    damage. In such a situation, the self-insured  shall fill 
    out and sign a form prescribed by the Secretary of State 
    which contains an affirmation under penalty of perjury that 
    the vehicle was recovered without damage and the Secretary 
    of State may, by rule, require photographs to be submitted.



        (2) When a vehicle the ownership of which has been 
    transferred to any
person through a certificate of purchase 
    from acquisition of the vehicle at an
auction, other 
    dispositions as set forth in Sections 4-208 and 4-209
of 
    this Code, a lien arising under Section 18a-501 of this 
    Code,
or a public sale under the Abandoned Mobile Home Act 
    shall be deemed
salvage or junk at the option of the 
    purchaser.  The person acquiring such
vehicle in such manner 
    shall promptly deliver or mail, within 20 days after the

    acquisition of the vehicle, the certificate of purchase, 
    the
proper application and fee, and, if the vehicle is an 
    abandoned mobile home
under the Abandoned Mobile Home Act, 
    a certification from a local law
enforcement agency that 
    the vehicle was purchased or acquired at a public sale

    under the Abandoned Mobile Home Act to the Secretary of 
    State and a salvage
certificate or junking certificate 
    shall be issued in the name of that person.
The salvage 
    certificate or junking certificate issued by the Secretary 
    of State
under this Section shall be free of any lien that 
    existed against the vehicle
prior to the time the vehicle 
    was acquired by the applicant under this Code.


        (3) A vehicle which has been repossessed by a 
    lienholder shall be
considered to be salvage only when the 
    repossessed vehicle, on the date of
repossession by the 
    lienholder, has sustained damage by collision, fire, 
    theft,
rust corrosion, or other means so that the cost of 
    repairing
such damage, including labor, would be greater 
    than 33 1/3% of its fair market
value without such damage.  
    If the lienholder determines that such vehicle is
damaged 
    in excess of 33 1/3% of such fair market value, the 
    lienholder shall,
before sale, transfer or assignment of 
    the vehicle, make application for a
salvage certificate, 
    and shall submit with such application the proper fee
and 
    evidence of possession.  If the facts required to be shown 
    in
subsection (f) of Section 3-114 are satisfied, the 
    Secretary of State shall
issue a salvage certificate in the 
    name of the lienholder making the
application.  In any case 
    wherein the vehicle repossessed is not damaged in
excess of 
    33 1/3% of its fair market value, the lienholder
shall 
    comply with the requirements of subsections (f), (f-5), and 
    (f-10) of
Section 3-114, except that the affidavit of 
    repossession made by or on behalf
of the lienholder
shall 
    also contain an affirmation under penalty of perjury that 
    the vehicle
on
the date of sale is not
damaged in
excess of 
    33 1/3% of its fair market value.  If the facts required to 
    be shown
in subsection (f) of Section 3-114 are satisfied, 
    the Secretary of State
shall issue a certificate of title 
    as set forth in Section 3-116 of this Code.
The Secretary 
    of State may by rule or regulation require photographs to 
    be
submitted.


        (4) A vehicle which is a part of a fleet of more than 5 
    commercial
vehicles registered in this State or any other 
    state or registered
proportionately among several states 
    shall be considered to be salvage when
such vehicle has 
    sustained damage by collision, fire, theft, rust,

    corrosion or similar means so that the cost of repairing 
    such damage, including
labor, would be greater than 33 1/3% 
    of the fair market value of the vehicle
without such 
    damage.  If the owner of a fleet vehicle desires to sell,

    transfer, or assign his interest in such vehicle to a 
    person within this State
other than an insurance company 
    licensed to do business within this State, and
the owner 
    determines that such vehicle, at the time of the proposed 
    sale,
transfer or assignment is damaged in excess of 33 
    1/3% of its fair market
value, the owner shall, before such 
    sale, transfer or assignment, make
application for a 
    salvage certificate.  The application shall contain with it

    evidence of possession of the vehicle.  If the fleet vehicle 
    at the time of its
sale, transfer, or assignment is not 
    damaged in excess of 33 1/3% of its
fair market value, the 
    owner shall so state in a written affirmation on a
form 
    prescribed by the Secretary of State by rule or regulation.  
    The
Secretary of State may by rule or regulation require 
    photographs to be
submitted.  Upon sale, transfer or 
    assignment of the fleet vehicle the
owner shall mail the 
    affirmation to the Secretary of State.


        (5) A vehicle that has been submerged in water to the

    point that rising water has reached over the door sill and 
    has
entered the
passenger or trunk compartment is a "flood 
    vehicle".  A flood vehicle shall
be considered to be salvage 
    only if the vehicle has sustained damage so that
the cost 
    of repairing the damage, including labor, would be greater 
    than 33
1/3% of the fair market value of the vehicle 
    without that damage. The salvage
certificate issued under 
    this
Section shall indicate the word "flood", and the word 
    "flood" shall be
conspicuously entered on subsequent 
    titles for the vehicle.  A person who
possesses or acquires 
    a flood vehicle that is not damaged in excess of 33 1/3%
of 
    its fair market value shall make application for title in 
    accordance with
Section 3-116 of this Code, designating the 
    vehicle as "flood" in a manner
prescribed by the Secretary 
    of State.  The certificate of title issued shall
indicate 
    the word "flood", and the word "flood" shall be 
    conspicuously entered
on subsequent titles for the 
    vehicle.

    (c) Any person who without authority acquires, sells, 
exchanges, gives
away, transfers or destroys or offers to 
acquire, sell, exchange, give
away, transfer or destroy the 
certificate of title to any vehicle which is
a junk or salvage 
vehicle shall be guilty of a Class 3 felony.

    (d) Any person who knowingly fails to surrender to the 
Secretary of State a
certificate of title, salvage certificate, 
certificate of purchase or a
similarly acceptable out-of-state 
document of ownership as required under
the provisions of this 
Section is guilty of a Class A misdemeanor for a
first offense 
and a Class 4 felony for a subsequent offense; except that a

person licensed under this Code who violates paragraph (5) of 
subsection (b)
of this Section is
guilty of a business offense 
and shall be fined not less than $1,000 nor more
than $5,000 
for a first offense and is guilty of a Class 4 felony
for a 
second or subsequent violation.

    (e) Any vehicle which is salvage or junk may not be driven 
or operated
on roads and highways within this State.  A 
violation of this subsection is
a Class A misdemeanor.  A 
salvage vehicle displaying valid special plates
issued under 
Section 3-601(b) of this Code, which is being driven to or
from 
an inspection conducted under Section 3-308 of this Code, is 
exempt
from the provisions of this subsection.  A salvage 
vehicle for which a
short term permit has been issued under 
Section 3-307 of this Code is
exempt from the provisions of 
this subsection for the duration of the permit.

(Source: P.A. 92-751, eff. 8-2-02.)





Effective Date:  1/1/2008