HB2598 98TH GENERAL ASSEMBLY

LRB098 08844 MLW 38973 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2598

Introduced , by Rep. Daniel J. Burke

SYNOPSIS AS INTRODUCED:

625 ILCS 5/3-110	from Ch. 95 1/2, par. 3-110
625 ILCS 5/3-116	from Ch. 95 1/2, par. 3-116
770 ILCS 45/1	from Ch. 82, par. 40
770 ILCS 50/2	from Ch. 82, par. 47b
770 ILCS 50/3	from Ch. 82, par. 47c
770 ILCS 90/3	from Ch. 141, par. 3

Amends the Illinois Vehicle Code. Provides that if an application for a certificate of title for a vehicle refers to a vehicle sold at public auction under the Labor and Storage Lien Act, the Labor and Storage Lien (Small Amount) Act, and the Sale of Unclaimed Property Act and the Secretary of State refuses to issue a certificate of title, the Secretary of State shall provide the applicant with a written explanation for the refusal and any proof supporting the explanation. Provides that if an application for a certificate of title for a vehicle refers to a vehicle sold at public auction under the Labor and Storage Lien Act, the Labor and Storage Lien (Small Amount) Act, or the Sale of Unclaimed Property Act, the Secretary of State shall, within 30 days after receiving the application, either issue the certificate of title or notify the applicant of the refusal to issue a certificate of title. Amends the Labor and Storage Lien Act, the Labor and Storage Lien (Small Amount) Act, and the Sale of Unclaimed Property Act. Provides that a lien on a motor vehicle may be enforced on or after the 16th day after the completion of the expenditure of labor, services, skill, or material or furnishing of storage on or after the 16th day after the date agreed upon for redemption. Provides that a lien created or enforced by the new provisions shall be subordinate to and may not exclude any prior lien interest existing upon the vehicle.

A BILL FOR

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 3-110 and 3-116 as follows:

(625 ILCS 5/3-110) (from Ch. 95 1/2, par. 3-110)

Sec. 3-110. Refusing certificate of title. The Secretary of State shall refuse issuance of a certificate of title if any required fee is not paid or if he has reasonable grounds to believe that:

(a) the applicant is not the owner of the vehicle;

(b) the application contains a false or fraudulent statement;

(c) the applicant fails to furnish required information or documents or any additional information the Secretary of State reasonably requires; or

(d) the applicant has not paid to the Secretary of State any fees or taxes due under this Act and have not been paid upon reasonable notice and demand.

If the application refers to a vehicle sold at public auction under the Labor and Storage Lien Act, the Labor and Storage Lien (Small Amount) Act, or the Sale of Unclaimed Property Act and the Secretary of State refuses to issue a certificate of title, the Secretary of State shall provide the applicant with a written explanation for the refusal and any proof supporting the explanation.

(Source: P.A. 97-333, eff. 8-12-11.)

(625 ILCS 5/3-116) (from Ch. 95 1/2, par. 3-116)

Sec. 3-116. When Secretary of State to issue a certificate of title.

(a) The Secretary of State, upon receipt of a properly assigned certificate of title, with an application for a certificate of title, the required fee and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner and mail it to the first lienholder named in it or, if none, to the owner or owner's designee.

(b) The Secretary of State, upon receipt of an application for a new certificate of title by a transferee other than by voluntary transfer, with proof of the transfer, the required fee and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner.

(c) Any person, firm or corporation, who shall knowingly possess, buy, sell, exchange or give away, or offer to buy, sell, exchange or give away the certificate of title to any motor vehicle which is a junk or salvage, or who shall fail to surrender the certificate of title to the Secretary of State as required under the provisions of this Section and Section 3-117.2, shall be guilty of Class 3 felony.

(d) The Secretary of State shall file and retain for four (4) years a record of every surrendered certificate of title or proof of ownership accepted by the Secretary of State, the file to be maintained so as to permit the tracing of title of the vehicle designated therein.

(e) The Secretary of State, upon receipt of an application for corrected certificate of title, with the original title, the required fee and any other required documents, shall issue a corrected certificate of title in the name of the owner and mail it to the first lienholder named in it or, if none, to the owner or owner's designee.

(f) The Secretary of State, upon receipt of a certified copy of a court order awarding ownership to an applicant along with an application for a certificate of title and the required fee, shall issue a certificate of title to the applicant.

(g) If the application refers to a vehicle sold at public auction pursuant to the Labor and Storage Lien Act, the Labor and Storage Lien (Small Amount) Act, or the Sale of Unclaimed Property Act, the Secretary of State shall, within 30 days after receiving the application, either issue the certificate of title in accordance with this Section or notify the applicant of the refusal to issue a certificate of title under Section 3-110.

(Source: P.A. 90-212, eff. 1-1-98.)

Section 10. The Labor and Storage Lien Act is amended by changing Section 1 as follows:

(770 ILCS 45/1) (from Ch. 82, par. 40)

Sec. 1. (a) Every person, firm or corporation who has expended labor, skill or materials upon any chattel, or has furnished storage for said chattel, at the request of its owner, reputed owner, or authorized agent of the owner, or lawful possessor thereof, shall have a lien upon such chattel beginning on the date of the commencement of such expenditure of labor, skill and materials or of such storage for the contract price for all such expenditure of labor, skill or materials, or for all such storage, or in the absence of such contract price, for the reasonable worth of such expenditure of labor, skill and materials, or of such storage, for a period of one year from and after the completion of such expenditure of labor, skill or materials, or of such storage, notwithstanding the fact that the possession of such chattel has been surrendered to the owner, or lawful possessor thereof.

(b) If the chattel is a motor vehicle, a lien may be enforced under Section 3 of the Sale of Unclaimed Property Act on or after the 16th day after the completion of the expenditure of labor, services, skill, or material or furnishing of storage on or after the 16th day after the date agreed upon for redemption.

(Source: Laws 1921, p. 508.)

Section 15. The Labor and Storage Lien (Small Amount) Act is amended by changing Sections 2 and 3 as follows:

(770 ILCS 50/2) (from Ch. 82, par. 47b)

Sec. 2. (a) Unless the chattel is redeemed within 90 days of the completion of the expenditure of such labor, services, skill, or material or furnishing of storage, or within 90 days of the date agreed upon for redemption, the lien may be enforced by a commercially reasonable public or private sale conducted so as to maximize the net proceeds of said sale as hereinafter provided.

(b) Notwithstanding the provisions of subsection (a), if the chattel is a motor vehicle, a lien may be enforced under subsection (a) on or after the 16th day after the completion of the expenditure of labor, services, skill, or material or furnishing of storage or on or after the 16th day after the date agreed upon for redemption.

(Source: P.A. 85-1283.)

(770 ILCS 50/3) (from Ch. 82, par. 47c)

Sec. 3. Such sale shall be held only after giving 30 days' notice of the time and place of such sale, by publication once in some newspaper of general circulation in the city, village, or incorporated town in which such lienor expended such labor, services, skill, or material or furnished such storage, or if there be none, or if the labor, service, skill or material was not expended in a city, village, or incorporated town, then in some newspaper of general circulation in the county in which such lienor expended such labor, service, skill, or material or furnished such storage, and also by certified mailing, 30 days before such sale, a copy of such notice addressed to the person requesting or consenting to such expenditure of labor, services, skill, or material or furnishing of storage, if his address is known, or if his address is unknown, to the last known address of such person. If no address is known or discoverable after reasonable inquiry, the sale may be made without mailing such notice. The published notice required by this Section shall be in substantially the following form:

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NOTICE IS HEREBY GIVEN

That on (insert date), a sale will be held at (insert place), to sell the following articles to enforce a lien existing under the laws of the State of Illinois against such articles for labor, services, skill or material expended upon a storage furnished for such articles at the request of the following designated persons, unless such articles are redeemed within thirty days of the publication of this notice.

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Name of Person Description of Article Amount of lien ................. ................. $................. ................. ................. $.................

A separate notice need not be published for each lien to be enforced, but several may be combined in one publication.

If the chattel is a motor vehicle, the sale shall be held only after giving notice as required above and after giving written notice by certified mail to all lienholders of the vehicle. The notice must contain the name of the vehicle owner and the names of all lienholders; the year, make, and vehicle identification number of the vehicle; and the amount due and owing. The notice shall state the intent of the person having possession of the vehicle to enforce a lien under this Act unless the owner or a lienholder claims the vehicle within 10 days of receipt of the letter, and shall provide the date and location of the sale. The amount due and owing must be reasonable and may not exceed the usual and customary fees charged for the labor, services, skill, material, or storage. The lienholder claiming the vehicle shall be liable for no more than 15 days of storage fees. Proper documentation supporting the fees must be provided to the lienholder claiming the vehicle. If the lienholder does not claim the vehicle within 30 days of the date of the certified letter, the lienholder surrenders interest in the vehicle.

(Source: P.A. 87-206.)

Section 20. The Sale of Unclaimed Property Act is amended by changing Section 3 as follows:

(770 ILCS 90/3) (from Ch. 141, par. 3)

Sec. 3. (a) All persons other than common carriers having a lien on personal property, by virtue of the Innkeepers Lien Act or for more than $2,000 by virtue of the Labor and Storage Lien Act may enforce the lien by a sale of the property, on giving to the owner thereof, if he and his residence be known to the person having such lien, 30 days' notice by certified mail, in writing of the time and place of such sale, and if the owner or his place of residence be unknown to the person having such lien, then upon his filing his affidavit to that effect with the clerk of the circuit court in the county where such property is situated; notice of the sale may be given by publishing the same once in each week for 3 successive weeks in some newspaper of general circulation published in the county, and out of the proceeds of the sale all costs and charges for advertising and making the same, and the amount of the lien shall be paid, and the surplus, if any, shall be paid to the owner of the property or, if not claimed by said owner, such surplus, if any, shall be disposed under the Uniform Disposition of Unclaimed Property Act. All sales pursuant to this Section must be public and conducted in a commercially reasonable manner so as to maximize the net proceeds of the sale. Conformity to the requirements of this Act shall be a perpetual bar to any action against such lienor by any person for the recovery of such chattels or the value thereof or any damages growing out of the failure of such person to receive such chattels.

(b) Notwithstanding the provisions of subsection (a), if the chattel is a motor vehicle, a person having a lien on the vehicle by virtue of the Labor and Storage Lien Act may enforce the lien on or after the 16th day after the completion of the expenditure of labor, services, skill, or material or furnishing of storage or on or after the 16th day after the date agreed upon for redemption. The lien may be enforced only after giving written notice by certified mail to all lienholders of the vehicle. The notice must contain the name of the vehicle owner and the names of all lienholders; the year, make, and vehicle identification number of the vehicle; and the amount due and owing. The notice shall state the intent of the person having possession of the vehicle to enforce a lien under this Act unless the owner or a lienholder claims the vehicle within 10 days of receipt of the letter, and shall provide the date and location of the sale. The amount due and owing must be reasonable and may not exceed the usual and customary fees charged for the labor, services, skill, material, or storage. The lienholder claiming the vehicle shall be liable for no more than 15 days of storage fees. Proper documentation supporting the fees must be provided to the lienholder claiming the vehicle. If the lienholder does not claim the vehicle within 30 days of the date of the certified letter, the lienholder surrenders interest in the vehicle.

(Source: P.A. 87-206.)