Illinois General Assembly - Full Text of SB1946
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Full Text of SB1946  100th General Assembly

SB1946enr 100TH GENERAL ASSEMBLY

  
  
  

 


 
SB1946 EnrolledLRB100 08845 AXK 18986 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by changing
5Sections 3-117.1 and 5-104.3 and by adding Section 3-117.3 as
6follows:
 
7    (625 ILCS 5/3-117.1)  (from Ch. 95 1/2, par. 3-117.1)
8    (Text of Section before amendment by P.A. 99-932)
9    Sec. 3-117.1. When junking certificates or salvage
10certificates must be obtained.
11    (a) Except as provided in Chapter 4 and Section 3-117.3 of
12this Code, a person who possesses a junk vehicle shall within
1315 days cause the certificate of title, salvage certificate,
14certificate of purchase, or a similarly acceptable out of state
15document of ownership to be surrendered to the Secretary of
16State along with an application for a junking certificate,
17except as provided in Section 3-117.2, whereupon the Secretary
18of State shall issue to such a person a junking certificate,
19which shall authorize the holder thereof to possess, transport,
20or, by an endorsement, transfer ownership in such junked
21vehicle, and a certificate of title shall not again be issued
22for such vehicle.
23    A licensee who possesses a junk vehicle and a Certificate

 

 

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1of Title, Salvage Certificate, Certificate of Purchase, or a
2similarly acceptable out-of-state document of ownership for
3such junk vehicle, may transport the junk vehicle to another
4licensee prior to applying for or obtaining a junking
5certificate, by executing a uniform invoice. The licensee
6transferor shall furnish a copy of the uniform invoice to the
7licensee transferee at the time of transfer. In any case, the
8licensee transferor shall apply for a junking certificate in
9conformance with Section 3-117.1 of this Chapter. The following
10information shall be contained on a uniform invoice:
11        (1) The business name, address and dealer license
12    number of the person disposing of the vehicle, junk vehicle
13    or vehicle cowl;
14        (2) The name and address of the person acquiring the
15    vehicle, junk vehicle or vehicle cowl, and if that person
16    is a dealer, the Illinois or out-of-state dealer license
17    number of that dealer;
18        (3) The date of the disposition of the vehicle, junk
19    vehicle or vehicle cowl;
20        (4) The year, make, model, color and description of
21    each vehicle, junk vehicle or vehicle cowl disposed of by
22    such person;
23        (5) The manufacturer's vehicle identification number,
24    Secretary of State identification number or Illinois
25    Department of State Police number, for each vehicle, junk
26    vehicle or vehicle cowl part disposed of by such person;

 

 

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1        (6) The printed name and legible signature of the
2    person or agent disposing of the vehicle, junk vehicle or
3    vehicle cowl; and
4        (7) The printed name and legible signature of the
5    person accepting delivery of the vehicle, junk vehicle or
6    vehicle cowl.
7    The Secretary of State may certify a junking manifest in a
8form prescribed by the Secretary of State that reflects those
9vehicles for which junking certificates have been applied or
10issued. A junking manifest may be issued to any person and it
11shall constitute evidence of ownership for the vehicle listed
12upon it. A junking manifest may be transferred only to a person
13licensed under Section 5-301 of this Code as a scrap processor.
14A junking manifest will allow the transportation of those
15vehicles to a scrap processor prior to receiving the junk
16certificate from the Secretary of State.
17    (b) An application for a salvage certificate shall be
18submitted to the Secretary of State in any of the following
19situations:
20        (1) When an insurance company makes a payment of
21    damages on a total loss claim for a vehicle, the insurance
22    company shall be deemed to be the owner of such vehicle and
23    the vehicle shall be considered to be salvage except that
24    ownership of (i) a vehicle that has incurred only hail
25    damage that does not affect the operational safety of the
26    vehicle or (ii) any vehicle 9 model years of age or older

 

 

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1    may, by agreement between the registered owner and the
2    insurance company, be retained by the registered owner of
3    such vehicle. The insurance company shall promptly deliver
4    or mail within 20 days the certificate of title along with
5    proper application and fee to the Secretary of State, and a
6    salvage certificate shall be issued in the name of the
7    insurance company. Notwithstanding the foregoing, an
8    insurer making payment of damages on a total loss claim for
9    the theft of a vehicle shall not be required to apply for a
10    salvage certificate unless the vehicle is recovered and has
11    incurred damage that initially would have caused the
12    vehicle to be declared a total loss by the insurer.
13        (1.1) When a vehicle of a self-insured company is to be
14    sold in the State of Illinois and has sustained damaged by
15    collision, fire, theft, rust corrosion, or other means so
16    that the self-insured company determines the vehicle to be
17    a total loss, or if the cost of repairing the damage,
18    including labor, would be greater than 50% of its fair
19    market value without that damage, the vehicle shall be
20    considered salvage. The self-insured company shall
21    promptly deliver the certificate of title along with proper
22    application and fee to the Secretary of State, and a
23    salvage certificate shall be issued in the name of the
24    self-insured company. A self-insured company making
25    payment of damages on a total loss claim for the theft of a
26    vehicle may exchange the salvage certificate for a

 

 

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1    certificate of title if the vehicle is recovered without
2    damage. In such a situation, the self-insured shall fill
3    out and sign a form prescribed by the Secretary of State
4    which contains an affirmation under penalty of perjury that
5    the vehicle was recovered without damage and the Secretary
6    of State may, by rule, require photographs to be submitted.
7        (2) When a vehicle the ownership of which has been
8    transferred to any person through a certificate of purchase
9    from acquisition of the vehicle at an auction, other
10    dispositions as set forth in Sections 4-208 and 4-209 of
11    this Code, a lien arising under Section 18a-501 of this
12    Code, or a public sale under the Abandoned Mobile Home Act
13    shall be deemed salvage or junk at the option of the
14    purchaser. The person acquiring such vehicle in such manner
15    shall promptly deliver or mail, within 20 days after the
16    acquisition of the vehicle, the certificate of purchase,
17    the proper application and fee, and, if the vehicle is an
18    abandoned mobile home under the Abandoned Mobile Home Act,
19    a certification from a local law enforcement agency that
20    the vehicle was purchased or acquired at a public sale
21    under the Abandoned Mobile Home Act to the Secretary of
22    State and a salvage certificate or junking certificate
23    shall be issued in the name of that person. The salvage
24    certificate or junking certificate issued by the Secretary
25    of State under this Section shall be free of any lien that
26    existed against the vehicle prior to the time the vehicle

 

 

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1    was acquired by the applicant under this Code.
2        (3) A vehicle which has been repossessed by a
3    lienholder shall be considered to be salvage only when the
4    repossessed vehicle, on the date of repossession by the
5    lienholder, has sustained damage by collision, fire,
6    theft, rust corrosion, or other means so that the cost of
7    repairing such damage, including labor, would be greater
8    than 33 1/3% of its fair market value without such damage.
9    If the lienholder determines that such vehicle is damaged
10    in excess of 33 1/3% of such fair market value, the
11    lienholder shall, before sale, transfer or assignment of
12    the vehicle, make application for a salvage certificate,
13    and shall submit with such application the proper fee and
14    evidence of possession. If the facts required to be shown
15    in subsection (f) of Section 3-114 are satisfied, the
16    Secretary of State shall issue a salvage certificate in the
17    name of the lienholder making the application. In any case
18    wherein the vehicle repossessed is not damaged in excess of
19    33 1/3% of its fair market value, the lienholder shall
20    comply with the requirements of subsections (f), (f-5), and
21    (f-10) of Section 3-114, except that the affidavit of
22    repossession made by or on behalf of the lienholder shall
23    also contain an affirmation under penalty of perjury that
24    the vehicle on the date of sale is not damaged in excess of
25    33 1/3% of its fair market value. If the facts required to
26    be shown in subsection (f) of Section 3-114 are satisfied,

 

 

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1    the Secretary of State shall issue a certificate of title
2    as set forth in Section 3-116 of this Code. The Secretary
3    of State may by rule or regulation require photographs to
4    be submitted.
5        (4) A vehicle which is a part of a fleet of more than 5
6    commercial vehicles registered in this State or any other
7    state or registered proportionately among several states
8    shall be considered to be salvage when such vehicle has
9    sustained damage by collision, fire, theft, rust,
10    corrosion or similar means so that the cost of repairing
11    such damage, including labor, would be greater than 33 1/3%
12    of the fair market value of the vehicle without such
13    damage. If the owner of a fleet vehicle desires to sell,
14    transfer, or assign his interest in such vehicle to a
15    person within this State other than an insurance company
16    licensed to do business within this State, and the owner
17    determines that such vehicle, at the time of the proposed
18    sale, transfer or assignment is damaged in excess of 33
19    1/3% of its fair market value, the owner shall, before such
20    sale, transfer or assignment, make application for a
21    salvage certificate. The application shall contain with it
22    evidence of possession of the vehicle. If the fleet vehicle
23    at the time of its sale, transfer, or assignment is not
24    damaged in excess of 33 1/3% of its fair market value, the
25    owner shall so state in a written affirmation on a form
26    prescribed by the Secretary of State by rule or regulation.

 

 

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1    The Secretary of State may by rule or regulation require
2    photographs to be submitted. Upon sale, transfer or
3    assignment of the fleet vehicle the owner shall mail the
4    affirmation to the Secretary of State.
5        (5) A vehicle that has been submerged in water to the
6    point that rising water has reached over the door sill and
7    has entered the passenger or trunk compartment is a "flood
8    vehicle". A flood vehicle shall be considered to be salvage
9    only if the vehicle has sustained damage so that the cost
10    of repairing the damage, including labor, would be greater
11    than 33 1/3% of the fair market value of the vehicle
12    without that damage. The salvage certificate issued under
13    this Section shall indicate the word "flood", and the word
14    "flood" shall be conspicuously entered on subsequent
15    titles for the vehicle. A person who possesses or acquires
16    a flood vehicle that is not damaged in excess of 33 1/3% of
17    its fair market value shall make application for title in
18    accordance with Section 3-116 of this Code, designating the
19    vehicle as "flood" in a manner prescribed by the Secretary
20    of State. The certificate of title issued shall indicate
21    the word "flood", and the word "flood" shall be
22    conspicuously entered on subsequent titles for the
23    vehicle.
24        (6) When any licensed rebuilder, repairer, new or used
25    vehicle dealer, or remittance agent has submitted an
26    application for title to a vehicle (other than an

 

 

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1    application for title to a rebuilt vehicle) that he or she
2    knows or reasonably should have known to have sustained
3    damages in excess of 33 1/3% of the vehicle's fair market
4    value without that damage; provided, however, that any
5    application for a salvage certificate for a vehicle
6    recovered from theft and acquired from an insurance company
7    shall be made as required by paragraph (1) of this
8    subsection (b).
9    (c) Any person who without authority acquires, sells,
10exchanges, gives away, transfers or destroys or offers to
11acquire, sell, exchange, give away, transfer or destroy the
12certificate of title to any vehicle which is a junk or salvage
13vehicle shall be guilty of a Class 3 felony.
14    (d) Any person who knowingly fails to surrender to the
15Secretary of State a certificate of title, salvage certificate,
16certificate of purchase or a similarly acceptable out-of-state
17document of ownership as required under the provisions of this
18Section is guilty of a Class A misdemeanor for a first offense
19and a Class 4 felony for a subsequent offense; except that a
20person licensed under this Code who violates paragraph (5) of
21subsection (b) of this Section is guilty of a business offense
22and shall be fined not less than $1,000 nor more than $5,000
23for a first offense and is guilty of a Class 4 felony for a
24second or subsequent violation.
25    (e) Any vehicle which is salvage or junk may not be driven
26or operated on roads and highways within this State. A

 

 

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1violation of this subsection is a Class A misdemeanor. A
2salvage vehicle displaying valid special plates issued under
3Section 3-601(b) of this Code, which is being driven to or from
4an inspection conducted under Section 3-308 of this Code, is
5exempt from the provisions of this subsection. A salvage
6vehicle for which a short term permit has been issued under
7Section 3-307 of this Code is exempt from the provisions of
8this subsection for the duration of the permit.
9(Source: P.A. 97-832, eff. 7-20-12.)
 
10    (Text of Section after amendment by P.A. 99-932)
11    Sec. 3-117.1. When junking certificates or salvage
12certificates must be obtained.
13    (a) Except as provided in Chapter 4 and Section 3-117.3 of
14this Code, a person who possesses a junk vehicle shall within
1515 days cause the certificate of title, salvage certificate,
16certificate of purchase, or a similarly acceptable out of state
17document of ownership to be surrendered to the Secretary of
18State along with an application for a junking certificate,
19except as provided in Section 3-117.2, whereupon the Secretary
20of State shall issue to such a person a junking certificate,
21which shall authorize the holder thereof to possess, transport,
22or, by an endorsement, transfer ownership in such junked
23vehicle, and a certificate of title shall not again be issued
24for such vehicle.
25    A licensee who possesses a junk vehicle and a Certificate

 

 

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1of Title, Salvage Certificate, Certificate of Purchase, or a
2similarly acceptable out-of-state document of ownership for
3such junk vehicle, may transport the junk vehicle to another
4licensee prior to applying for or obtaining a junking
5certificate, by executing a uniform invoice. The licensee
6transferor shall furnish a copy of the uniform invoice to the
7licensee transferee at the time of transfer. In any case, the
8licensee transferor shall apply for a junking certificate in
9conformance with Section 3-117.1 of this Chapter. The following
10information shall be contained on a uniform invoice:
11        (1) The business name, address and dealer license
12    number of the person disposing of the vehicle, junk vehicle
13    or vehicle cowl;
14        (2) The name and address of the person acquiring the
15    vehicle, junk vehicle or vehicle cowl, and if that person
16    is a dealer, the Illinois or out-of-state dealer license
17    number of that dealer;
18        (3) The date of the disposition of the vehicle, junk
19    vehicle or vehicle cowl;
20        (4) The year, make, model, color and description of
21    each vehicle, junk vehicle or vehicle cowl disposed of by
22    such person;
23        (5) The manufacturer's vehicle identification number,
24    Secretary of State identification number or Illinois
25    Department of State Police number, for each vehicle, junk
26    vehicle or vehicle cowl part disposed of by such person;

 

 

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1        (6) The printed name and legible signature of the
2    person or agent disposing of the vehicle, junk vehicle or
3    vehicle cowl; and
4        (7) The printed name and legible signature of the
5    person accepting delivery of the vehicle, junk vehicle or
6    vehicle cowl.
7    The Secretary of State may certify a junking manifest in a
8form prescribed by the Secretary of State that reflects those
9vehicles for which junking certificates have been applied or
10issued. A junking manifest may be issued to any person and it
11shall constitute evidence of ownership for the vehicle listed
12upon it. A junking manifest may be transferred only to a person
13licensed under Section 5-301 of this Code as a scrap processor.
14A junking manifest will allow the transportation of those
15vehicles to a scrap processor prior to receiving the junk
16certificate from the Secretary of State.
17    (b) An application for a salvage certificate shall be
18submitted to the Secretary of State in any of the following
19situations:
20        (1) When an insurance company makes a payment of
21    damages on a total loss claim for a vehicle, the insurance
22    company shall be deemed to be the owner of such vehicle and
23    the vehicle shall be considered to be salvage except that
24    ownership of (i) a vehicle that has incurred only hail
25    damage that does not affect the operational safety of the
26    vehicle or (ii) any vehicle 9 model years of age or older

 

 

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1    may, by agreement between the registered owner and the
2    insurance company, be retained by the registered owner of
3    such vehicle. The insurance company shall promptly deliver
4    or mail within 20 days the certificate of title along with
5    proper application and fee to the Secretary of State, and a
6    salvage certificate shall be issued in the name of the
7    insurance company. Notwithstanding the foregoing, an
8    insurer making payment of damages on a total loss claim for
9    the theft of a vehicle shall not be required to apply for a
10    salvage certificate unless the vehicle is recovered and has
11    incurred damage that initially would have caused the
12    vehicle to be declared a total loss by the insurer.
13        (1.1) When a vehicle of a self-insured company is to be
14    sold in the State of Illinois and has sustained damaged by
15    collision, fire, theft, rust corrosion, or other means so
16    that the self-insured company determines the vehicle to be
17    a total loss, or if the cost of repairing the damage,
18    including labor, would be greater than 70% of its fair
19    market value without that damage, the vehicle shall be
20    considered salvage. The self-insured company shall
21    promptly deliver the certificate of title along with proper
22    application and fee to the Secretary of State, and a
23    salvage certificate shall be issued in the name of the
24    self-insured company. A self-insured company making
25    payment of damages on a total loss claim for the theft of a
26    vehicle may exchange the salvage certificate for a

 

 

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1    certificate of title if the vehicle is recovered without
2    damage. In such a situation, the self-insured shall fill
3    out and sign a form prescribed by the Secretary of State
4    which contains an affirmation under penalty of perjury that
5    the vehicle was recovered without damage and the Secretary
6    of State may, by rule, require photographs to be submitted.
7        (2) When a vehicle the ownership of which has been
8    transferred to any person through a certificate of purchase
9    from acquisition of the vehicle at an auction, other
10    dispositions as set forth in Sections 4-208 and 4-209 of
11    this Code, a lien arising under Section 18a-501 of this
12    Code, or a public sale under the Abandoned Mobile Home Act
13    shall be deemed salvage or junk at the option of the
14    purchaser. The person acquiring such vehicle in such manner
15    shall promptly deliver or mail, within 20 days after the
16    acquisition of the vehicle, the certificate of purchase,
17    the proper application and fee, and, if the vehicle is an
18    abandoned mobile home under the Abandoned Mobile Home Act,
19    a certification from a local law enforcement agency that
20    the vehicle was purchased or acquired at a public sale
21    under the Abandoned Mobile Home Act to the Secretary of
22    State and a salvage certificate or junking certificate
23    shall be issued in the name of that person. The salvage
24    certificate or junking certificate issued by the Secretary
25    of State under this Section shall be free of any lien that
26    existed against the vehicle prior to the time the vehicle

 

 

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1    was acquired by the applicant under this Code.
2        (3) A vehicle which has been repossessed by a
3    lienholder shall be considered to be salvage only when the
4    repossessed vehicle, on the date of repossession by the
5    lienholder, has sustained damage by collision, fire,
6    theft, rust corrosion, or other means so that the cost of
7    repairing such damage, including labor, would be greater
8    than 33 1/3% of its fair market value without such damage.
9    If the lienholder determines that such vehicle is damaged
10    in excess of 33 1/3% of such fair market value, the
11    lienholder shall, before sale, transfer or assignment of
12    the vehicle, make application for a salvage certificate,
13    and shall submit with such application the proper fee and
14    evidence of possession. If the facts required to be shown
15    in subsection (f) of Section 3-114 are satisfied, the
16    Secretary of State shall issue a salvage certificate in the
17    name of the lienholder making the application. In any case
18    wherein the vehicle repossessed is not damaged in excess of
19    33 1/3% of its fair market value, the lienholder shall
20    comply with the requirements of subsections (f), (f-5), and
21    (f-10) of Section 3-114, except that the affidavit of
22    repossession made by or on behalf of the lienholder shall
23    also contain an affirmation under penalty of perjury that
24    the vehicle on the date of sale is not damaged in excess of
25    33 1/3% of its fair market value. If the facts required to
26    be shown in subsection (f) of Section 3-114 are satisfied,

 

 

SB1946 Enrolled- 16 -LRB100 08845 AXK 18986 b

1    the Secretary of State shall issue a certificate of title
2    as set forth in Section 3-116 of this Code. The Secretary
3    of State may by rule or regulation require photographs to
4    be submitted.
5        (4) A vehicle which is a part of a fleet of more than 5
6    commercial vehicles registered in this State or any other
7    state or registered proportionately among several states
8    shall be considered to be salvage when such vehicle has
9    sustained damage by collision, fire, theft, rust,
10    corrosion or similar means so that the cost of repairing
11    such damage, including labor, would be greater than 33 1/3%
12    of the fair market value of the vehicle without such
13    damage. If the owner of a fleet vehicle desires to sell,
14    transfer, or assign his interest in such vehicle to a
15    person within this State other than an insurance company
16    licensed to do business within this State, and the owner
17    determines that such vehicle, at the time of the proposed
18    sale, transfer or assignment is damaged in excess of 33
19    1/3% of its fair market value, the owner shall, before such
20    sale, transfer or assignment, make application for a
21    salvage certificate. The application shall contain with it
22    evidence of possession of the vehicle. If the fleet vehicle
23    at the time of its sale, transfer, or assignment is not
24    damaged in excess of 33 1/3% of its fair market value, the
25    owner shall so state in a written affirmation on a form
26    prescribed by the Secretary of State by rule or regulation.

 

 

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1    The Secretary of State may by rule or regulation require
2    photographs to be submitted. Upon sale, transfer or
3    assignment of the fleet vehicle the owner shall mail the
4    affirmation to the Secretary of State.
5        (5) A vehicle that has been submerged in water to the
6    point that rising water has reached over the door sill and
7    has entered the passenger or trunk compartment is a "flood
8    vehicle". A flood vehicle shall be considered to be salvage
9    only if the vehicle has sustained damage so that the cost
10    of repairing the damage, including labor, would be greater
11    than 33 1/3% of the fair market value of the vehicle
12    without that damage. The salvage certificate issued under
13    this Section shall indicate the word "flood", and the word
14    "flood" shall be conspicuously entered on subsequent
15    titles for the vehicle. A person who possesses or acquires
16    a flood vehicle that is not damaged in excess of 33 1/3% of
17    its fair market value shall make application for title in
18    accordance with Section 3-116 of this Code, designating the
19    vehicle as "flood" in a manner prescribed by the Secretary
20    of State. The certificate of title issued shall indicate
21    the word "flood", and the word "flood" shall be
22    conspicuously entered on subsequent titles for the
23    vehicle.
24        (6) When any licensed rebuilder, repairer, new or used
25    vehicle dealer, or remittance agent has submitted an
26    application for title to a vehicle (other than an

 

 

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1    application for title to a rebuilt vehicle) that he or she
2    knows or reasonably should have known to have sustained
3    damages in excess of 33 1/3% of the vehicle's fair market
4    value without that damage; provided, however, that any
5    application for a salvage certificate for a vehicle
6    recovered from theft and acquired from an insurance company
7    shall be made as required by paragraph (1) of this
8    subsection (b).
9    (c) Any person who without authority acquires, sells,
10exchanges, gives away, transfers or destroys or offers to
11acquire, sell, exchange, give away, transfer or destroy the
12certificate of title to any vehicle which is a junk or salvage
13vehicle shall be guilty of a Class 3 felony.
14    (d) Any person who knowingly fails to surrender to the
15Secretary of State a certificate of title, salvage certificate,
16certificate of purchase or a similarly acceptable out-of-state
17document of ownership as required under the provisions of this
18Section is guilty of a Class A misdemeanor for a first offense
19and a Class 4 felony for a subsequent offense; except that a
20person licensed under this Code who violates paragraph (5) of
21subsection (b) of this Section is guilty of a business offense
22and shall be fined not less than $1,000 nor more than $5,000
23for a first offense and is guilty of a Class 4 felony for a
24second or subsequent violation.
25    (e) Any vehicle which is salvage or junk may not be driven
26or operated on roads and highways within this State. A

 

 

SB1946 Enrolled- 19 -LRB100 08845 AXK 18986 b

1violation of this subsection is a Class A misdemeanor. A
2salvage vehicle displaying valid special plates issued under
3Section 3-601(b) of this Code, which is being driven to or from
4an inspection conducted under Section 3-308 of this Code, is
5exempt from the provisions of this subsection. A salvage
6vehicle for which a short term permit has been issued under
7Section 3-307 of this Code is exempt from the provisions of
8this subsection for the duration of the permit.
9(Source: P.A. 99-932, eff. 6-1-17.)
 
10    (625 ILCS 5/3-117.3 new)
11    Sec. 3-117.3. Junking or salvage certificates; insurance
12company; salvage dealer.
13    (a) For purposes of this Section, "salvage dealer" means a
14licensed dealer who primarily sells salvage vehicles on behalf
15of insurance companies and obtains a "salvage dealer"
16designation through the used dealer application process under
17Section 5-102 of this Code.
18    (b) Notwithstanding any other provision of law to the
19contrary, an insurance company or salvage dealer may, after
20completing a record search for any owner of a vehicle or a
21lienholder of record, obtain free of any lien a junking
22certificate or salvage certificate in the insurance company's
23name by submitting an application for a junking certificate or
24salvage certificate to the Secretary of State. The application
25shall include, but is not limited to, proof of full payment, in

 

 

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1whole or in part, to the vehicle owner or, if applicable, any
2lienholder of record and proof of notice to the vehicle owner
3and any lienholder via certified mail or other proof of service
4that a transfer of title shall occur no earlier than 30 days
5after the date the notice is sent. Upon approval of the
6application, the Secretary shall issue to the insurance company
7a junking certificate or salvage certificate free of any lien
8in the insurance company's name.
9    An insurance company or salvage dealer shall not sell a
10salvage vehicle with a title obtained under this subsection (b)
11to anyone not authorized to buy salvage vehicles under this
12Code.
13    This subsection (b) shall apply only to a motor vehicle
14titled in this State that has been through an insurance claims
15process and the owner of the vehicle or lienholder, if
16applicable, has received compensation in exchange for
17relinquishing the ownership rights of the vehicle to an
18insurance company licensed under the Illinois Insurance Code
19and the insurance company is unable to obtain an endorsed
20certificate of title within 30 days of payment to the owner or
21lienholder.
22    (c) Notwithstanding any other provision of law to the
23contrary, a salvage dealer may, after completing a record
24search for any owner of a vehicle or a lienholder of record,
25obtain free of any lien a junking certificate or salvage
26certificate in his or her name by submitting an application for

 

 

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1a junking certificate or a salvage certificate to the Secretary
2of State which shall include, but is not limited to, proof of
3notice via certified mail or other proof of service to the
4vehicle owner or any lienholder that a transfer of title shall
5occur no earlier than 30 days after the date the notice is
6sent. The notice shall inform the vehicle owner or lienholder
7that upon payment of any applicable charges, the vehicle may be
8removed from the salvage dealer's facility. Upon approval of
9the application, the Secretary shall issue to the salvage
10dealer a junking certificate or salvage certificate free of any
11lien in the salvage dealer's name.
12    A salvage dealer shall not sell a salvage vehicle with a
13title obtained under this subsection (c) to anyone not
14authorized to buy salvage vehicles under this Code.
15    This subsection (c) shall apply only to a motor vehicle
16titled in this State and in possession of a salvage dealer by
17request of an insurance company licensed under the Illinois
18Insurance Code to take possession of the motor vehicle subject
19to an insurance claim and the insurance company denies coverage
20of the vehicle or does not take ownership of the vehicle within
2145 days of possession by the salvage dealer.
22    (d) A vehicle owner or lienholder may send notice of
23dispute of the transfer of title under this Section within 30
24days after the required notice is sent by the insurance company
25or salvage dealer. If a dispute between a vehicle owner or
26lienholder and an insurance company or salvage dealer cannot be

 

 

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1resolved within 45 days after the required notice to the
2vehicle owner or lienholder is sent, the vehicle owner or
3lienholder, within 90 days after sending notice of dispute,
4shall petition a court of competent jurisdiction for an order
5to determine ownership of the vehicle and shall notify the
6Secretary of State of the filing of the petition. If a vehicle
7owner or lienholder does not file a petition within the 90-day
8period, the title to the vehicle shall be issued to the
9insurance company or salvage dealer under this Section.
10    (e) Any person who without authority acquires, sells,
11exchanges, gives away, transfers, or destroys or offers to
12acquire, sell, exchange, give away, transfer, or destroy the
13certificate of title to any vehicle which is a junk or salvage
14vehicle shall be guilty of a Class 3 felony.
15    (f) Any person who knowingly fails to surrender to the
16Secretary of State a certificate of title, salvage certificate,
17or certificate of purchase is guilty of a Class A misdemeanor
18for a first offense and a Class 4 felony for a second and
19subsequent offense.
20    (g) Any vehicle which is salvage or junk may not be driven
21or operated on roads and highways within this State. A
22violation of this subsection (g) is a Class A misdemeanor. A
23salvage vehicle displaying valid special plates issued under
24subsection (b) of Section 3-601 of this Code, which is being
25driven to or from an inspection conducted under Section 3-308
26of this Code, is exempt from the provisions of this subsection

 

 

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1(g). A salvage vehicle for which a short term permit has been
2issued under Section 3-307 of this Code is exempt from the
3provisions of this subsection (g) for the duration of the
4permit.
5    (h) The Secretary of State may adopt any rules necessary to
6implement this Section.
 
7    (625 ILCS 5/5-104.3)
8    Sec. 5-104.3. Disclosure of rebuilt vehicle.
9    (a) No person shall knowingly, with intent to defraud or
10deceive another, sell a vehicle for which a rebuilt title has
11been issued unless that vehicle is accompanied by a Disclosure
12of Rebuilt Vehicle Status form, properly signed and delivered
13to the buyer.
14    (a-5) No dealer or rebuilder licensed under Sections 5-101,
155-102, or 5-301 of this Code shall sell a vehicle for which a
16rebuilt title has been issued from another jurisdiction without
17first obtaining an Illinois certificate of title with a
18"REBUILT" notation under Section 3-118.1 of this Code.
19    (b) The Secretary of State may by rule or regulation
20prescribe the format and information contained in the
21Disclosure of Rebuilt Vehicle Status form.
22    (c) A violation of subsections subsection (a) or (a-5) of
23this Section is a Class A misdemeanor. A second or subsequent
24violation of subsections subsection (a) or (a-5) of this
25Section is a Class 4 felony.

 

 

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1(Source: P.A. 91-891, eff. 7-6-00.)
 
2    Section 95. No acceleration or delay. Where this Act makes
3changes in a statute that is represented in this Act by text
4that is not yet or no longer in effect (for example, a Section
5represented by multiple versions), the use of that text does
6not accelerate or delay the taking effect of (i) the changes
7made by this Act or (ii) provisions derived from any other
8Public Act.
 
9    Section 99. Effective date. This Act takes effect 90 days
10after becoming law.