093_HB2472

 
                                     LRB093 10934 DRH 11488 b

 1        AN ACT in relation to vehicles.

 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
 5    changing 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
10    person who possesses a junk vehicle must shall within 15 days
11    cause  the  certificate  of   title,   salvage   certificate,
12    certificate  of  purchase,  or  a similarly acceptable out of
13    state  document  of  ownership  to  be  surrendered  to   the
14    Secretary  of  State  along with an application for a junking
15    certificate, except as provided in Section 3-117.2, whereupon
16    the Secretary of State shall issue to such a person a junking
17    certificate, which shall  authorize  the  holder  thereof  to
18    possess, transport, or, by an endorsement, transfer ownership
19    in  such junked vehicle, and a certificate of title shall not
20    again be issued for such 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,
29    the licensee transferor shall apply for a junking certificate
30    in  conformance  with  Section  3-117.1 of this Chapter.  The
31    following  information  shall  be  contained  on  a   uniform
 
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 1    invoice:
 2             (1)  The  business  name, address and dealer license
 3        number of the  person  disposing  of  the  vehicle,  junk
 4        vehicle or vehicle cowl;
 5             (2)  The  name  and  address of the person acquiring
 6        the vehicle, junk vehicle or vehicle cowl,  and  if  that
 7        person  is  a dealer, the Illinois or out-of-state dealer
 8        license number of that dealer;
 9             (3)  The date of the  disposition  of  the  vehicle,
10        junk vehicle or vehicle cowl;
11             (4)  The year, make, model, color and description of
12        each vehicle, junk vehicle or vehicle cowl disposed of by
13        such person;
14             (5)  The   manufacturer's   vehicle   identification
15        number,  Secretary  of  State  identification  number  or
16        Illinois  Department  of  State  Police  number, for each
17        vehicle, junk vehicle or vehicle cowl part disposed of by
18        such person;
19             (6)  The printed name and legible signature  of  the
20        person or agent disposing of the vehicle, junk vehicle or
21        vehicle cowl; and
22             (7)  The  printed  name and legible signature of the
23        person accepting delivery of the vehicle, junk vehicle or
24        vehicle cowl.
25        The Secretary of State may certify a junking manifest  in
26    a  form  prescribed  by  the Secretary of State that reflects
27    those vehicles  for  which  junking  certificates  have  been
28    applied  or  issued.  A junking manifest may be issued to any
29    person and it shall constitute evidence of ownership for  the
30    vehicle   listed   upon   it.   A  junking  manifest  may  be
31    transferred only to a person licensed under Section 5-301  of
32    this  Code  as  a  scrap  processor.  A junking manifest will
33    allow  the  transportation  of  those  vehicles  to  a  scrap
34    processor prior to receiving the junk  certificate  from  the
 
                            -3-      LRB093 10934 DRH 11488 b
 1    Secretary of State.
 2        (b)  An  application  for  a salvage certificate shall be
 3    submitted to the Secretary of State in any of  the  following
 4    situations:
 5             (1)  When  an  insurance  company makes a payment of
 6        damages  on  a  total  loss  claim  for  a  vehicle,  the
 7        insurance company shall be deemed to be the owner of such
 8        vehicle and the vehicle shall be considered to be salvage
 9        except that ownership of (i) a vehicle that has  incurred
10        only  hail  damage  that  does not affect the operational
11        safety of the vehicle or (ii) any vehicle 9  model  years
12        of  age or older may, by agreement between the registered
13        owner and the  insurance  company,  be  retained  by  the
14        registered owner of such vehicle.  The insurance  company
15        shall  promptly  deliver  or  mail  within  20  days  the
16        certificate  of  title  along with proper application and
17        fee to the Secretary of State, and a salvage  certificate
18        shall be issued in the name of the insurance company.  An
19        insurer  making  payment of damages on a total loss claim
20        for the theft of  a  vehicle  may  exchange  the  salvage
21        certificate  for a certificate of title if the vehicle is
22        recovered without  damage.   In  such  a  situation,  the
23        insurer  shall fill out and sign a form prescribed by the
24        Secretary of State which contains  an  affirmation  under
25        penalty of perjury that the vehicle was recovered without
26        damage  and  the  Secretary  of  State  may,  by  rule or
27        regulation, require photographs to be submitted.
28             (2)  When a vehicle the ownership of which has  been
29        transferred  to  any  person  through  a  certificate  of
30        purchase  from  acquisition of the vehicle at an auction,
31        other dispositions as set forth  in  Sections  4-208  and
32        4-209  of this Code, a lien arising under Section 18a-501
33        of this Code, or a public sale under the Abandoned Mobile
34        Home Act shall be deemed salvage or junk at the option of
 
                            -4-      LRB093 10934 DRH 11488 b
 1        the purchaser.  The person acquiring such vehicle in such
 2        manner shall promptly deliver or  mail,  within  20  days
 3        after  the acquisition of the vehicle, the certificate of
 4        purchase, the proper application and  fee,  and,  if  the
 5        vehicle  is  an abandoned mobile home under the Abandoned
 6        Mobile  Home  Act,  a  certification  from  a  local  law
 7        enforcement agency that  the  vehicle  was  purchased  or
 8        acquired at a public sale under the Abandoned Mobile Home
 9        Act  to  the Secretary of State and a salvage certificate
10        or junking certificate shall be issued  in  the  name  of
11        that   person.     The  salvage  certificate  or  junking
12        certificate issued by the Secretary of State  under  this
13        Section  shall  be  free of any lien that existed against
14        the vehicle prior to the time the vehicle was acquired by
15        the applicant under this Code.
16             (3)  A vehicle  which  has  been  repossessed  by  a
17        lienholder  shall  be  considered to be salvage only when
18        the repossessed vehicle, on the date of  repossession  by
19        the  lienholder, has sustained damage by collision, fire,
20        theft, rust corrosion, or other means so that the cost of
21        repairing such damage, including labor, would be  greater
22        than  33  1/3%  of  its  fair  market  value without such
23        damage.  If the lienholder determines that  such  vehicle
24        is  damaged  in  excess  of  33  1/3% of such fair market
25        value, the lienholder shall,  before  sale,  transfer  or
26        assignment of the vehicle, make application for a salvage
27        certificate,  and  shall submit with such application the
28        proper fee and evidence  of  possession.   If  the  facts
29        required  to  be shown in subsection (f) of Section 3-114
30        are satisfied, the  Secretary  of  State  shall  issue  a
31        salvage  certificate in the name of the lienholder making
32        the  application.   In  any  case  wherein  the   vehicle
33        repossessed  is  not  damaged in excess of 33 1/3% of its
34        fair market value, the lienholder shall comply  with  the
 
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 1        requirements  of  subsections  (f),  (f-5), and (f-10) of
 2        Section 3-114, except that the affidavit of  repossession
 3        made by or on behalf of the lienholder shall also contain
 4        an  affirmation under penalty of perjury that the vehicle
 5        on the date of sale is not damaged in excess of  33  1/3%
 6        of  its  fair  market value.  If the facts required to be
 7        shown in subsection (f) of Section 3-114  are  satisfied,
 8        the Secretary of State shall issue a certificate of title
 9        as set forth in Section 3-116 of this Code. The Secretary
10        of State may by rule or regulation require photographs to
11        be submitted.
12             (4)  A  vehicle  which  is a part of a fleet of more
13        than 5 commercial vehicles registered in  this  State  or
14        any  other  state  or  registered  proportionately  among
15        several  states  shall  be  considered to be salvage when
16        such vehicle has sustained  damage  by  collision,  fire,
17        theft,  rust, corrosion or similar means so that the cost
18        of repairing  such  damage,  including  labor,  would  be
19        greater  than  33  1/3%  of  the fair market value of the
20        vehicle without such damage.  If the  owner  of  a  fleet
21        vehicle desires to sell, transfer, or assign his interest
22        in  such vehicle to a person within this State other than
23        an insurance company licensed to do business within  this
24        State, and the owner determines that such vehicle, at the
25        time  of  the  proposed  sale,  transfer or assignment is
26        damaged in excess of 33 1/3% of its  fair  market  value,
27        the   owner   shall,   before   such  sale,  transfer  or
28        assignment, make application for a  salvage  certificate.
29        The   application  shall  contain  with  it  evidence  of
30        possession of the vehicle.  If the fleet vehicle  at  the
31        time  of its sale, transfer, or assignment is not damaged
32        in excess of 33 1/3% of its fair market value, the  owner
33        shall  so  state  in  a  written  affirmation  on  a form
34        prescribed  by  the  Secretary  of  State  by   rule   or
 
                            -6-      LRB093 10934 DRH 11488 b
 1        regulation.   The  Secretary  of  State  may  by  rule or
 2        regulation require photographs  to  be  submitted.   Upon
 3        sale,  transfer  or  assignment  of the fleet vehicle the
 4        owner shall mail the  affirmation  to  the  Secretary  of
 5        State.
 6             (5)  A  vehicle  that has been submerged in water to
 7        the point that rising water has  reached  over  the  door
 8        sill  and  has entered the passenger or trunk compartment
 9        is  a  "flood  vehicle".   A  flood  vehicle   shall   be
10        considered   to  be  salvage  only  if  the  vehicle  has
11        sustained damage  so  that  the  cost  of  repairing  the
12        damage, including labor, would be greater than 33 1/3% of
13        the fair market value of the vehicle without that damage.
14        The  salvage  certificate issued under this Section shall
15        indicate the word "flood", and the word "flood" shall  be
16        conspicuously   entered  on  subsequent  titles  for  the
17        vehicle.  A person who  possesses  or  acquires  a  flood
18        vehicle  that  is not damaged in excess of 33 1/3% of its
19        fair market value shall make  application  for  title  in
20        accordance  with  Section 3-116 of this Code, designating
21        the vehicle as "flood" in  a  manner  prescribed  by  the
22        Secretary  of  State.   The  certificate  of title issued
23        shall indicate the word "flood",  and  the  word  "flood"
24        shall  be  conspicuously entered on subsequent titles for
25        the vehicle.
26        (c)  Any person who without  authority  acquires,  sells,
27    exchanges,  gives  away,  transfers  or destroys or offers to
28    acquire, sell, exchange, give away, transfer or  destroy  the
29    certificate  of  title  to  any  vehicle  which  is a junk or
30    salvage vehicle shall be guilty of a Class 3 felony.
31        (d)  Any person who knowingly fails to surrender  to  the
32    Secretary   of   State   a   certificate  of  title,  salvage
33    certificate,  certificate  of   purchase   or   a   similarly
34    acceptable  out-of-state  document  of  ownership as required
 
                            -7-      LRB093 10934 DRH 11488 b
 1    under the provisions of this Section is guilty of a  Class  A
 2    misdemeanor  for  a  first offense and a Class 4 felony for a
 3    subsequent offense; except that a person licensed under  this
 4    Code  who  violates  paragraph  (5) of subsection (b) of this
 5    Section is guilty of a business offense and  shall  be  fined
 6    not less than $1,000 nor more than $5,000 for a first offense
 7    and  is guilty of a Class 4 felony for a second or subsequent
 8    violation.
 9        (e)  Any vehicle which is salvage  or  junk  may  not  be
10    driven  or  operated on roads and highways within this State.
11    A violation of this subsection is a Class A  misdemeanor.   A
12    salvage  vehicle displaying valid special plates issued under
13    Section 3-601(b) of this Code, which is being  driven  to  or
14    from  an  inspection  conducted  under  Section 3-308 of this
15    Code, is exempt from the provisions of  this  subsection.   A
16    salvage vehicle for which a short term permit has been issued
17    under   Section  3-307  of  this  Code  is  exempt  from  the
18    provisions of this subsection for the duration of the permit.
19    (Source: P.A. 92-751, eff. 8-2-02.)