94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2329

 

Introduced 1/12/2006, by Sen. Iris Y. Martinez

 

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 a vehicle owned by a self-insured company shall be considered salvage if the vehicle has sustained damage to the extent that the self-insured company determines the vehicle to be a total loss, or if the cost of repairing the damage would be greater than 33 1/3 % of its fair market value. Establishes requirements for obtaining a salvage certificate for the vehicle. Provides for exchange of a salvage certificate for a certificate of title if a vehicle owned by a self-insured company that was declared a total loss because of a theft is recovered without damage.


LRB094 17282 DRH 52575 b

 

 

A BILL FOR

 

SB2329 LRB094 17282 DRH 52575 b

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 changing
5 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 person
10 who possesses a junk vehicle shall within 15 days cause the
11 certificate of title, salvage certificate, certificate of
12 purchase, or a similarly acceptable out of state document of
13 ownership to be surrendered to the Secretary of State along
14 with an application for a junking certificate, except as
15 provided in Section 3-117.2, whereupon the Secretary of State
16 shall issue to such a person a junking certificate, which shall
17 authorize the holder thereof to possess, transport, or, by an
18 endorsement, transfer ownership in such junked vehicle, and a
19 certificate of title shall not again be issued for such
20 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, the
29 licensee transferor shall apply for a junking certificate in
30 conformance with Section 3-117.1 of this Chapter. The following
31 information shall be contained on a uniform invoice:
32         (1) The business name, address and dealer license

 

 

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1     number of the person disposing of the vehicle, junk vehicle
2     or vehicle cowl;
3         (2) The name and address of the person acquiring the
4     vehicle, junk vehicle or vehicle cowl, and if that person
5     is a dealer, the Illinois or out-of-state dealer license
6     number of that dealer;
7         (3) The date of the disposition of the vehicle, junk
8     vehicle or vehicle cowl;
9         (4) The year, make, model, color and description of
10     each vehicle, junk vehicle or vehicle cowl disposed of by
11     such person;
12         (5) The manufacturer's vehicle identification number,
13     Secretary of State identification number or Illinois
14     Department of State Police number, for each vehicle, junk
15     vehicle or vehicle cowl part disposed of by such person;
16         (6) The printed name and legible signature of the
17     person or agent disposing of the vehicle, junk vehicle or
18     vehicle cowl; and
19         (7) The printed name and legible signature of the
20     person accepting delivery of the vehicle, junk vehicle or
21     vehicle cowl.
22     The Secretary of State may certify a junking manifest in a
23 form prescribed by the Secretary of State that reflects those
24 vehicles for which junking certificates have been applied or
25 issued. A junking manifest may be issued to any person and it
26 shall constitute evidence of ownership for the vehicle listed
27 upon it. A junking manifest may be transferred only to a person
28 licensed under Section 5-301 of this Code as a scrap processor.
29 A junking manifest will allow the transportation of those
30 vehicles to a scrap processor prior to receiving the junk
31 certificate from the Secretary of State.
32     (b) An application for a salvage certificate shall be
33 submitted to the Secretary of State in any of the following
34 situations:
35         (1) When an insurance company makes a payment of
36     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 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 a
11     salvage certificate shall be issued in the name of the
12     insurance company. An insurer making payment of damages on
13     a total loss claim for the theft of a vehicle may exchange
14     the salvage certificate for a certificate of title if the
15     vehicle is recovered without damage. In such a situation,
16     the insurer shall fill out and sign a form prescribed by
17     the Secretary of State which contains an affirmation under
18     penalty of perjury that the vehicle was recovered without
19     damage and the Secretary of State may, by rule or
20     regulation, require photographs to be submitted.
21         (1.1) When a vehicle of a self-insured company has
22     sustained damaged by collision, fire, theft, rust
23     corrosion, or other means so that the self-insured company
24     determines the vehicle to be a total loss, or if the cost
25     of repairing the damage, including labor, would be greater
26     than 33 1/3 % of its fair market value without that damage,
27     the vehicle shall be considered salvage. The self-insured
28     company shall promptly deliver or mail within 20 days the
29     certificate of title along with proper application and fee
30     to the Secretary of State, and a salvage certificate shall
31     be issued in the name of the self-insured company. A
32     self-insured company making payment of damages on a total
33     loss claim for the theft of a vehicle may exchange the
34     salvage certificate for a certificate of title if the
35     vehicle is recovered without damage. In such a situation,
36     the self-insured shall fill out and sign a form prescribed

 

 

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1     by the Secretary of State which contains an affirmation
2     under penalty of perjury that the vehicle was recovered
3     without damage and the Secretary of State may, by rule,
4     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
27     lienholder shall be considered to be salvage only when the
28     repossessed vehicle, on the date of repossession by the
29     lienholder, has sustained damage by collision, fire,
30     theft, rust corrosion, or other means so that the cost of
31     repairing such damage, including labor, would be greater
32     than 33 1/3% of its fair market value without such damage.
33     If the lienholder determines that such vehicle is damaged
34     in excess of 33 1/3% of such fair market value, the
35     lienholder shall, before sale, transfer or assignment of
36     the vehicle, make application for a salvage certificate,

 

 

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1     and shall submit with such application the proper fee and
2     evidence of possession. If the facts required to be shown
3     in subsection (f) of Section 3-114 are satisfied, the
4     Secretary of State shall issue a salvage certificate in the
5     name of the lienholder making the application. In any case
6     wherein the vehicle repossessed is not damaged in excess of
7     33 1/3% of its fair market value, the lienholder shall
8     comply with the requirements of subsections (f), (f-5), and
9     (f-10) of Section 3-114, except that the affidavit of
10     repossession made by or on behalf of the lienholder shall
11     also contain an affirmation under penalty of perjury that
12     the vehicle on the date of sale is not damaged in excess of
13     33 1/3% of its fair market value. If the facts required to
14     be shown in subsection (f) of Section 3-114 are satisfied,
15     the Secretary of State shall issue a certificate of title
16     as set forth in Section 3-116 of this Code. The Secretary
17     of State may by rule or regulation require photographs to
18     be submitted.
19         (4) A vehicle which is a part of a fleet of more than 5
20     commercial vehicles registered in this State or any other
21     state or registered proportionately among several states
22     shall be considered to be salvage when such vehicle has
23     sustained damage by collision, fire, theft, rust,
24     corrosion or similar means so that the cost of repairing
25     such damage, including labor, would be greater than 33 1/3%
26     of the fair market value of the vehicle without such
27     damage. If the owner of a fleet vehicle desires to sell,
28     transfer, or assign his interest in such vehicle to a
29     person within this State other than an insurance company
30     licensed to do business within this State, and the owner
31     determines that such vehicle, at the time of the proposed
32     sale, transfer or assignment is damaged in excess of 33
33     1/3% of its fair market value, the owner shall, before such
34     sale, transfer or assignment, make application for a
35     salvage certificate. The application shall contain with it
36     evidence of possession of the vehicle. If the fleet vehicle

 

 

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1     at the time of its sale, transfer, or assignment is not
2     damaged in excess of 33 1/3% of its fair market value, the
3     owner shall so state in a written affirmation on a form
4     prescribed by the Secretary of State by rule or regulation.
5     The Secretary of State may by rule or regulation require
6     photographs to be submitted. Upon sale, transfer or
7     assignment of the fleet vehicle the owner shall mail the
8     affirmation to the Secretary of State.
9         (5) A vehicle that has been submerged in water to the
10     point that rising water has reached over the door sill and
11     has entered the passenger or trunk compartment is a "flood
12     vehicle". A flood vehicle shall be considered to be salvage
13     only if the vehicle has sustained damage so that the cost
14     of repairing the damage, including labor, would be greater
15     than 33 1/3% of the fair market value of the vehicle
16     without that damage. The salvage certificate issued under
17     this Section shall indicate the word "flood", and the word
18     "flood" shall be conspicuously entered on subsequent
19     titles for the vehicle. A person who possesses or acquires
20     a flood vehicle that is not damaged in excess of 33 1/3% of
21     its fair market value shall make application for title in
22     accordance with Section 3-116 of this Code, designating the
23     vehicle as "flood" in a manner prescribed by the Secretary
24     of State. The certificate of title issued shall indicate
25     the word "flood", and the word "flood" shall be
26     conspicuously entered on subsequent titles for the
27     vehicle.
28     (c) Any person who without authority acquires, sells,
29 exchanges, gives away, transfers or destroys or offers to
30 acquire, sell, exchange, give away, transfer or destroy the
31 certificate of title to any vehicle which is a junk or salvage
32 vehicle shall be guilty of a Class 3 felony.
33     (d) Any person who knowingly fails to surrender to the
34 Secretary of State a certificate of title, salvage certificate,
35 certificate of purchase or a similarly acceptable out-of-state
36 document of ownership as required under the provisions of this

 

 

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1 Section is guilty of a Class A misdemeanor for a first offense
2 and a Class 4 felony for a subsequent offense; except that a
3 person licensed under this Code who violates paragraph (5) of
4 subsection (b) of this Section is guilty of a business offense
5 and shall be fined not less than $1,000 nor more than $5,000
6 for a first offense and is guilty of a Class 4 felony for a
7 second or subsequent violation.
8     (e) Any vehicle which is salvage or junk may not be driven
9 or operated on roads and highways within this State. A
10 violation of this subsection is a Class A misdemeanor. A
11 salvage vehicle displaying valid special plates issued under
12 Section 3-601(b) of this Code, which is being driven to or from
13 an inspection conducted under Section 3-308 of this Code, is
14 exempt from the provisions of this subsection. A salvage
15 vehicle for which a short term permit has been issued under
16 Section 3-307 of this Code is exempt from the provisions of
17 this subsection for the duration of the permit.
18 (Source: P.A. 92-751, eff. 8-2-02.)