Illinois General Assembly - Full Text of HB3813
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Full Text of HB3813  102nd General Assembly

HB3813 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3813

 

Introduced 2/22/2021, by Rep. Dan Brady

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/3-117.3

    Amends the Illinois Vehicle Code. In provisions concerning junking or salvage certificates for insurance companies and salvage dealers, provides that an electronic image showing payment to the vehicle owner or any lienholder of record via electronic funds transfer or other electronic means shall be sufficient proof of full payment in an application for a junking certificate or salvage certificate to the Secretary of State.


LRB102 14306 BMS 19658 b

 

 

A BILL FOR

 

HB3813LRB102 14306 BMS 19658 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
5changing Section 3-117.3 as follows:
 
6    (625 ILCS 5/3-117.3)
7    Sec. 3-117.3. Junking or salvage certificates; insurance
8company; salvage dealer.
9    (a) For purposes of this Section, "salvage dealer" means a
10licensed dealer who primarily sells salvage vehicles on behalf
11of insurance companies and obtains a "salvage dealer"
12designation through the used dealer application process under
13Section 5-102 of this Code.
14    (b) Notwithstanding any other provision of law to the
15contrary, an insurance company or salvage dealer may, after
16completing a record search for any owner of a vehicle or a
17lienholder of record, obtain free of any lien a junking
18certificate or salvage certificate in the insurance company's
19name by submitting an application for a junking certificate or
20salvage certificate to the Secretary of State. The application
21shall include, but is not limited to, proof of full payment, in
22whole or in part, to the vehicle owner or, if applicable, any
23lienholder of record and proof of notice to the vehicle owner

 

 

HB3813- 2 -LRB102 14306 BMS 19658 b

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

 

 

HB3813- 3 -LRB102 14306 BMS 19658 b

1certificate in his or her name by submitting an application
2for a junking certificate or a salvage certificate to the
3Secretary of State which shall include, but is not limited to,
4proof of notice via certified mail or other proof of service to
5the vehicle owner or any lienholder that a transfer of title
6shall occur no earlier than 30 days after the date the notice
7is sent. The notice shall inform the vehicle owner or
8lienholder that upon payment of any applicable charges, the
9vehicle may be removed from the salvage dealer's facility.
10Upon approval of the application, the Secretary shall issue to
11the salvage dealer a junking certificate or salvage
12certificate free of any lien in the salvage dealer's name.
13    A salvage dealer shall not sell a salvage vehicle with a
14title obtained under this subsection (c) to anyone not
15authorized to buy salvage vehicles under this Code.
16    This subsection (c) shall apply only to a motor vehicle
17titled in this State and in possession of a salvage dealer by
18request of an insurance company licensed under the Illinois
19Insurance Code to take possession of the motor vehicle subject
20to an insurance claim and the insurance company denies
21coverage of the vehicle or does not take ownership of the
22vehicle within 45 days of possession by the salvage dealer.
23    (d) A vehicle owner or lienholder may send notice of
24dispute of the transfer of title under this Section within 30
25days after the required notice is sent by the insurance
26company or salvage dealer. If a dispute between a vehicle

 

 

HB3813- 4 -LRB102 14306 BMS 19658 b

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

 

 

HB3813- 5 -LRB102 14306 BMS 19658 b

1of this Code, is exempt from the provisions of this subsection
2(g). A salvage vehicle for which a short term permit has been
3issued under Section 3-307 of this Code is exempt from the
4provisions of this subsection (g) for the duration of the
5permit.
6    (h) The Secretary of State may adopt any rules necessary
7to implement this Section.
8(Source: P.A. 100-104, eff. 11-9-17.)