Public Act 103-0202
 
HB3747 EnrolledLRB103 30059 MXP 56482 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 Sections 3-104, 3-117.3, and 3-116.1 and  by adding 
Section 4-208.1 as follows:
 


    (625 ILCS 5/3-104)  (from Ch. 95 1/2, par. 3-104)



    Sec. 3-104. Application for certificate of title. 

    (a) The application for a certificate of title for a 
vehicle in this
State must be made by the owner to the 
Secretary of State on the form
prescribed and must contain:

        1. The name, Illinois residence or Illinois place of 
    business, mail address, and, if available, email address 
    of the owner. For the purposes of this subsection 
    "Illinois place of business" means an Illinois location 
    leased or owned by a business, or in the case of an 
    insurance carrier, their contracted salvage disposal 
    vendor;

        2. A description of the vehicle including, so far as 
    the following
data exists: Its make, year-model, 
    identifying number, type of body,
whether new or used, as 
    to house trailers as
defined in Section 1-128 of this 
    Code, and as to manufactured homes as defined in Section 
    1-144.03 of this Code, the square footage based upon the 
    outside dimensions excluding
the length of the tongue and 
    hitch, and, as to vehicles of the
second division, whether 
    for-hire, not-for-hire, or both for-hire and
not-for-hire;

        3. The date of purchase by applicant and, if 
    applicable, the name and
address of the person from whom 
    the vehicle was acquired and the names and
addresses of 
    any lienholders in the order of their priority and 
    signatures of
owners;

        4. The current odometer reading at the time of 
    transfer and that the
stated odometer reading is one of 
    the following: actual mileage, not
the actual mileage or 
    mileage is in excess of its mechanical limits; and

        5. Any further information the Secretary of State 
    reasonably
requires to identify the vehicle and to enable 
    him to determine whether
the owner is entitled to a 
    certificate of title and the existence or
nonexistence of 
    security interests in the vehicle.
    (a-5) The Secretary of State shall designate on the 
prescribed application form a space where the owner of a 
vehicle may designate a beneficiary, to whom ownership of the 
vehicle shall pass in the event of the owner's death.


    (b) If the application refers to a vehicle purchased from 
a dealer,
it must also be signed by the dealer as well as the 
owner, and the dealer must
promptly mail or deliver the 
application and required documents to the
Secretary of State.

    (c) If the application refers to a vehicle last previously

registered in another State or country, the application must 
contain or
be accompanied by:

        1. Any certified document of ownership so recognized 
    and issued by
the other State or country and acceptable to 
    the Secretary of State, and

        2. Any other information and documents the Secretary 
    of State
reasonably requires to establish the ownership of 
    the vehicle and the
existence or nonexistence of security 
    interests in it.

    (d) If the application refers to a new vehicle it must be

accompanied by the Manufacturer's Statement of Origin, or 
other documents
as required and acceptable by the Secretary of 
State, with such
assignments as may be necessary to show title 
in the applicant.

    (e) If an application refers to a vehicle rebuilt from a 
vehicle
previously salvaged, that application shall comply 
with the provisions
set forth in Sections 3-302 through 3-304 
of this Code.

    (f) An application for a certificate of title for any 
vehicle,
whether purchased in Illinois or outside Illinois, 
and even if
previously registered in another State, must be 
accompanied by either an
exemption determination from the 
Department of Revenue showing that no
tax imposed pursuant to 
the Use Tax Act or the vehicle use tax imposed by
Section 
3-1001 of the Illinois Vehicle Code is owed by anyone with 
respect to
that vehicle, or a receipt from the Department of 
Revenue showing that any tax
so imposed has been paid.  An 
application for a certificate of title for any
vehicle 
purchased outside Illinois, even if previously registered in 
another
state, must be accompanied by either an exemption 
determination from the
Department of Revenue showing that no 
tax imposed pursuant to the Municipal Use
Tax Act or the County 
Use Tax Act is owed by anyone with respect to that
vehicle, or 
a receipt from the Department of Revenue showing that any tax 
so
imposed has been paid.  In the absence of such a receipt for 
payment or
determination of exemption from the Department, no 
certificate of title shall
be issued to the applicant.

    If the proof of payment of the tax or of nonliability 
therefor is,
after the issuance of the certificate of title 
and display certificate
of title, found to be invalid, the 
Secretary of State shall revoke the
certificate and require 
that the certificate of title and, when
applicable, the 
display certificate of title be returned to him.

    (g) If the application refers to a vehicle not 
manufactured in
accordance with federal safety and emission 
standards, the application must
be accompanied by all 
documents required by federal governmental
agencies to meet 
their standards before a vehicle is allowed to be issued
title 
and registration.

    (h) If the application refers to a vehicle sold at public 
sale by a
sheriff, it must be accompanied by the required fee 
and a bill of sale
issued and signed by a sheriff.  The bill of 
sale must identify the new
owner's name and address, the year 
model, make and vehicle identification
number of the vehicle, 
court order document number authorizing such sale,
if 
applicable, and the name and address of any lienholders in 
order of
priority, if applicable.

    (i) If the application refers to a vehicle for which a 
court of law
determined the ownership, it must be accompanied 
with a certified copy of
such court order and the required fee.  
The court order must indicate the
new owner's name and 
address, the complete description of the vehicle, if
known, 
the name and address of the lienholder, if any, and must be 
signed
and dated by the judge issuing such order.

    (j) If the application refers to a vehicle sold at public 
auction pursuant
to the Labor and Storage Lien (Small Amount) 
Act, it must be
accompanied by an affidavit or affirmation 
furnished by the Secretary of
State along with the
documents 
described in the affidavit or affirmation and the required 
fee.

    (k) The Secretary may provide an expedited process for the 
issuance of vehicle titles.  Expedited title applications must 
be delivered to the Secretary of State's Vehicle Services 
Department in Springfield by express mail service or hand 
delivery.  Applications must be complete, including necessary 
forms, fees, and taxes.  Applications received before noon on a 
business day will be processed and shipped that same day.  
Applications received after noon on a business day will be 
processed and shipped the next business day.  The Secretary 
shall charge an additional fee of $30 for this service, and 
that fee shall cover the cost of return shipping via an express 
mail service.  All fees collected by the Secretary of State for 
expedited services shall be deposited into the Motor Vehicle 
License Plate Fund. In the event the Vehicle Services 
Department determines that the volume of expedited title 
requests received on a given day exceeds the ability of the 
Vehicle Services Department to process those requests in an 
expedited manner, the Vehicle Services Department may decline 
to provide expedited services, and the additional fee for the 
expedited service shall be refunded to the applicant. 
    (l) If the application refers to a homemade trailer, (i) 
it must be accompanied by the appropriate documentation 
regarding the source of materials used in the construction of 
the trailer, as required by the Secretary of State, (ii) the 
trailer must be inspected by a Secretary of State employee 
prior to the issuance of the title, and (iii) upon approval of 
the Secretary of State, the trailer must have a vehicle 
identification number, as provided by the Secretary of State, 
stamped or riveted to the frame.
    (m) The holder of a Manufacturer's Statement of Origin to 
a manufactured home may deliver it to any person to facilitate 
conveying or encumbering the manufactured home.  Any person 
receiving any such Manufacturer's Statement of Origin so 
delivered holds it in trust for the person delivering it. 
    (n) Within 45 days after the completion of the first 
retail sale of a manufactured home, the Manufacturer's 
Statement of Origin to that manufactured home must be 
surrendered to the Secretary of State either in conjunction 
with an application for a certificate of title for that 
manufactured home or in accordance with Section 3-116.1. 
    (o)   Each application 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 issuing a certificate of title. 
    (p) The Secretary, at the Secretary's discretion, may use 
any commercially available title history service to assist in 
determining the proper title designation of a motor vehicle 
before the issuance of a certificate of title. 
(Source: P.A. 102-154, eff. 1-1-22.)

 
    (625 ILCS 5/3-117.3)
    Sec. 3-117.3. Junking or salvage certificates; insurance 
company; salvage dealer.
    (a) For purposes of this Section, "salvage dealer" means a 
licensed dealer who primarily sells salvage vehicles on behalf 
of insurance companies and obtains a "salvage dealer" 
designation through the used dealer application process under 
Section 5-102 of this Code. 
    (b)    Notwithstanding any other provision of  law to the 
contrary, an insurance company or salvage dealer may, after 
completing a record search for any owner of a vehicle or a 
lienholder of record, obtain free of any lien a junking 
certificate or salvage certificate in the insurance company's 
name by submitting an application for a junking certificate or 
salvage certificate to the Secretary of State. The application 
shall include, but is not limited to, proof of full payment, in 
whole or in part, to the vehicle owner or, if applicable, any 
lienholder of record and proof of notice to the vehicle owner 
and any lienholder via certified mail or other proof of 
service that a transfer of title shall occur no earlier than 30 
days after the date the notice is sent. Upon approval of the 
application, the Secretary shall issue to the insurance 
company a junking certificate or salvage certificate free of 
any lien in the insurance company's name. For the purposes of 
this subsection, "proof of full payment" means either a 
photocopy of a deposited insurance claim check or, for an 
electronic claims payment, a screen shot from the insurer's 
proprietary claim system that shows the payee, the amount 
paid, and the date of payment. No other additional 
requirements shall be required of the insurer. 
    An insurance company or salvage dealer shall not sell a 
salvage vehicle with a title obtained under this subsection 
(b) to anyone not authorized to buy salvage vehicles under 
this Code.
    This subsection (b) shall apply only to a motor vehicle 
titled in this State that has been through an insurance claims 
process and the owner of the vehicle or lienholder, if 
applicable, has received compensation in exchange for 
relinquishing the ownership rights of the vehicle to an 
insurance company licensed under the Illinois Insurance Code 
and the insurance company is unable to obtain an endorsed 
certificate of title within 30 days of payment to the owner or 
lienholder.
    (c)   Notwithstanding any other provision of law to the 
contrary, a salvage dealer may, after completing a record 
search for any owner of a vehicle or a lienholder of record, 
obtain free of any lien a junking certificate or salvage 
certificate in his or her name by submitting an application 
for a junking certificate or a salvage certificate to the 
Secretary of State which shall include, but is not limited to, 
proof of notice via certified mail or  other proof of service to 
the vehicle owner or any lienholder that a transfer of title 
shall occur no earlier than 30 days after the date the notice 
is sent. The notice shall inform the vehicle owner or 
lienholder that upon payment of any applicable charges, the 
vehicle may be removed from the salvage dealer's facility. 
Upon approval of the application, the Secretary shall issue to 
the salvage dealer a junking certificate or salvage 
certificate free of any lien in the salvage dealer's name.
    A salvage dealer shall not sell a salvage vehicle with a 
title obtained under this subsection (c) to anyone not 
authorized to buy salvage vehicles under this Code. 
    This subsection (c) shall apply only to a motor vehicle 
titled in this State and in possession of a salvage dealer by 
request of an insurance company licensed under the Illinois 
Insurance Code to take possession of the motor vehicle subject 
to an insurance claim and the insurance company denies 
coverage of the vehicle or does not take ownership of the 
vehicle within 45 days of possession by the salvage dealer.
    (d)   A vehicle owner or lienholder may send notice of 
dispute of the transfer of title under this Section within 30 
days after the required notice is sent by the insurance 
company or salvage dealer. If a dispute between a vehicle 
owner or lienholder and an insurance company or salvage dealer 
cannot be resolved within 45 days after the required notice to 
the vehicle owner or lienholder is sent, the vehicle owner or 
lienholder, within 90 days after sending notice of dispute, 
shall petition a court of competent jurisdiction for an order 
to determine ownership of the vehicle and shall notify the 
Secretary of State of the filing of the petition. If a vehicle 
owner or lienholder does not file a petition within the 90-day 
period, the title to the vehicle shall be issued to the 
insurance company or salvage dealer under this Section.
    (e) 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.
    (f) Any person who knowingly fails to surrender to the 
Secretary of State a certificate of title, salvage 
certificate, or certificate of purchase is guilty of a Class A 
misdemeanor for a first offense and a Class 4 felony for a 
second and subsequent offense.
    (g) 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 (g) is a Class A misdemeanor. A 
salvage vehicle displaying valid special plates issued under 
subsection (b) of Section 3-601 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 
(g). 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 (g) for the duration of the 
permit. 
    (h)   The Secretary of State may adopt any rules necessary 
to implement this Section.

(Source: P.A. 100-104, eff. 11-9-17.)



Effective Date:  1/1/2024