Full Text of HB3712 96th General Assembly
HB3712 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB3712
Introduced 2/25/2009, by Rep. John D'Amico SYNOPSIS AS INTRODUCED: |
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625 ILCS 5/3-117.1 |
from Ch. 95 1/2, par. 3-117.1 |
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Amends the Illinois Vehicle Code. Reorganizes the language of a provision concerning motor vehicle salvage titles by deleting and adding the same language in different locations. Provides that upon payment of damages on a total loss claim for theft of a vehicle, the Secretary of State may issue an unbranded certificate of title to an insurance company in the insurer's name if the insurer (i) has made a payment of damages on a total loss claim for the theft of a vehicle and (ii) has delivered or mailed the certificate of title along with proper application and fee to the Secretary of State within 20 days (rather than providing no affirmative requirement to apply to the Secretary of State). Provides that if the vehicle is later recovered and has incurred damage that initially would have caused the vehicle to be declared a total loss by the insurer, then a salvage title must be applied for by the insurance company within 20 days of the recovery of the vehicle (rather than providing no specified time requirement for application). Provides that when a vehicle of a self-insured company is to be sold in-State and has sustained damaged by collision, fire, theft, rust corrosion, or other means so that the self-insured company determines the vehicle to be a total loss, or if the cost of repairing the damage, including labor, would be greater than 33 1/3% (rather than 50%) of its fair market value without that damage, the vehicle shall be considered salvage. Effective January 1, 2010.
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A BILL FOR
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HB3712 |
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| AN ACT concerning transportation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Vehicle Code is amended by changing | 5 |
| Section 3-117.1 as follows:
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| (625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1)
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| 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
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| certificate of title shall not again be issued for such | 20 |
| vehicle.
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| 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 |
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| such junk vehicle, may transport the
junk vehicle to another | 2 |
| licensee prior to applying for or obtaining a
junking | 3 |
| certificate, by executing a uniform invoice. The licensee
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| transferor shall furnish a copy of the uniform invoice to the | 5 |
| licensee
transferee at the time of transfer. In any case, the | 6 |
| licensee transferor
shall apply for a junking certificate in | 7 |
| conformance with Section 3-117.1
of this Chapter. The following | 8 |
| information shall be contained on a uniform
invoice:
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| (1) The business name, address and dealer license | 10 |
| number of the person
disposing of the vehicle, junk vehicle | 11 |
| or vehicle cowl;
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| (2) The name and address of the person acquiring the | 13 |
| vehicle, junk
vehicle or vehicle cowl, and if that person | 14 |
| is a dealer, the Illinois or
out-of-state dealer license | 15 |
| number of that dealer;
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| (3) The date of the disposition of the vehicle, junk | 17 |
| vehicle or vehicle
cowl;
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| (4) The year, make, model, color and description of | 19 |
| each vehicle, junk
vehicle or vehicle cowl disposed of by | 20 |
| such person;
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| (5) The manufacturer's vehicle identification number, | 22 |
| Secretary of State
identification number or Illinois | 23 |
| Department of State Police number,
for each vehicle, junk | 24 |
| vehicle or vehicle cowl part disposed of by such person;
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| (6) The printed name and legible signature of the | 26 |
| person or agent
disposing of the vehicle, junk vehicle or |
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| vehicle cowl; and
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| (7) The printed name and legible signature of the | 3 |
| person accepting
delivery of the vehicle, junk vehicle or | 4 |
| vehicle cowl.
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| The Secretary of State may certify a junking manifest in a | 6 |
| form prescribed by
the Secretary of State that reflects those | 7 |
| vehicles for which junking
certificates have been applied or | 8 |
| issued. A junking manifest
may be issued to any person and it | 9 |
| shall constitute evidence of ownership
for the vehicle listed | 10 |
| upon it. A junking manifest may be transferred only
to a person | 11 |
| licensed under Section 5-301 of this Code as a scrap processor.
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| A junking manifest will allow the transportation of those
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| vehicles to a scrap processor prior to receiving the junk | 14 |
| certificate from
the Secretary of State.
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| (b) An application for a salvage certificate shall be | 16 |
| submitted to the
Secretary of State in any of the following | 17 |
| situations:
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| (1) Except as provided in subparagraphs (A), (B), or | 19 |
| (C) of this paragraph, when When an insurance company makes | 20 |
| a payment of damages on a total loss
claim for a vehicle, | 21 |
| the insurance company shall be deemed to be the owner of
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| such vehicle and the vehicle shall be considered to be | 23 |
| salvage except that
ownership of (i) a vehicle that has | 24 |
| incurred only hail damage that does
not
affect the | 25 |
| operational safety of the vehicle or (ii) any vehicle
9 | 26 |
| model years of age or older may, by agreement between
the |
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| registered owner and the insurance company, be retained by | 2 |
| the registered
owner of such vehicle . The insurance company | 3 |
| shall promptly deliver or mail
within 20 days the | 4 |
| certificate of title along with proper application and fee
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| to the Secretary of State, and a salvage certificate shall | 6 |
| be issued in the
name of the insurance company. | 7 |
| Notwithstanding the foregoing, an insurer making payment | 8 |
| of damages on a total loss claim for the theft of a vehicle | 9 |
| shall not be required to apply for a salvage certificate | 10 |
| unless the vehicle is recovered and has incurred damage | 11 |
| that initially would have caused the vehicle to be declared | 12 |
| a total loss by the insurer. | 13 |
| (A) A salvage title is not required to be issued if | 14 |
| a vehicle has incurred only hail damage that does not | 15 |
| affect the operational safety of the vehicle. | 16 |
| (B) A salvage title is not required to be issued if | 17 |
| a vehicle is 9 model years of age or older, and by | 18 |
| agreement between the registered owner and the | 19 |
| insurance company, the vehicle has been retained by the | 20 |
| registered owner. | 21 |
| (C) A salvage title is not required to be issued if | 22 |
| an insurance company has made payment of damages on a | 23 |
| total loss claim for the theft of a vehicle. Upon | 24 |
| making the payment, the insurance company shall | 25 |
| promptly deliver or mail within 20 days the certificate | 26 |
| of title along with proper application and fee to the |
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| Secretary of State, and the Secretary shall issue an | 2 |
| unbranded title in the name of the insurance company. | 3 |
| If the vehicle is subsequently recovered and has | 4 |
| incurred damage that initially would have caused the | 5 |
| vehicle to be declared a total loss by the insurer, a | 6 |
| salvage title must be applied for by the insurance | 7 |
| company within 20 days of the recovery of the vehicle. | 8 |
| (1.1) When a vehicle of a self-insured company is to be | 9 |
| sold in the State of Illinois and has sustained damaged by | 10 |
| collision, fire, theft, rust corrosion, or other means so | 11 |
| that the self-insured company determines the vehicle to be | 12 |
| a total loss, or if the cost of repairing the damage, | 13 |
| including labor, would be greater than 33 1/3% 50% of its | 14 |
| fair market value without that damage, the vehicle shall be | 15 |
| considered salvage. The self-insured company shall | 16 |
| promptly deliver the certificate of title along with proper | 17 |
| application and fee to the Secretary of State, and a | 18 |
| salvage certificate shall be issued in the name of the | 19 |
| self-insured company. A self-insured company making | 20 |
| payment of damages on a total loss claim for the theft of a | 21 |
| vehicle may exchange the salvage certificate for a | 22 |
| certificate of title if the vehicle is recovered without | 23 |
| damage. In such a situation, the self-insured shall fill | 24 |
| out and sign a form prescribed by the Secretary of State | 25 |
| which contains an affirmation under penalty of perjury that | 26 |
| the vehicle was recovered without damage and the Secretary |
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| of State may, by rule, require photographs to be submitted.
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| (2) When a vehicle the ownership of which has been | 3 |
| transferred to any
person through a certificate of purchase | 4 |
| from acquisition of the vehicle at an
auction, other | 5 |
| dispositions as set forth in Sections 4-208 and 4-209
of | 6 |
| this Code, a lien arising under Section 18a-501 of this | 7 |
| Code,
or a public sale under the Abandoned Mobile Home Act | 8 |
| shall be deemed
salvage or junk at the option of the | 9 |
| purchaser. The person acquiring such
vehicle in such manner | 10 |
| shall promptly deliver or mail, within 20 days after the
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| acquisition of the vehicle, the certificate of purchase, | 12 |
| the
proper application and fee, and, if the vehicle is an | 13 |
| abandoned mobile home
under the Abandoned Mobile Home Act, | 14 |
| a certification from a local law
enforcement agency that | 15 |
| the vehicle was purchased or acquired at a public sale
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| under the Abandoned Mobile Home Act to the Secretary of | 17 |
| State and a salvage
certificate or junking certificate | 18 |
| shall be issued in the name of that person.
The salvage | 19 |
| certificate or junking certificate issued by the Secretary | 20 |
| of State
under this Section shall be free of any lien that | 21 |
| existed against the vehicle
prior to the time the vehicle | 22 |
| was acquired by the applicant under this Code.
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| (3) A vehicle which has been repossessed by a | 24 |
| lienholder shall be
considered to be salvage only when the | 25 |
| repossessed vehicle, on the date of
repossession by the | 26 |
| lienholder, has sustained damage by collision, fire, |
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| theft,
rust corrosion, or other means so that the cost of | 2 |
| repairing
such damage, including labor, would be greater | 3 |
| than 33 1/3% of its fair market
value without such damage. | 4 |
| If the lienholder determines that such vehicle is
damaged | 5 |
| in excess of 33 1/3% of such fair market value, the | 6 |
| lienholder shall,
before sale, transfer or assignment of | 7 |
| the vehicle, make application for a
salvage certificate, | 8 |
| and shall submit with such application the proper fee
and | 9 |
| evidence of possession. If the facts required to be shown | 10 |
| in
subsection (f) of Section 3-114 are satisfied, the | 11 |
| Secretary of State shall
issue a salvage certificate in the | 12 |
| name of the lienholder making the
application. In any case | 13 |
| wherein the vehicle repossessed is not damaged in
excess of | 14 |
| 33 1/3% of its fair market value, the lienholder
shall | 15 |
| comply with the requirements of subsections (f), (f-5), and | 16 |
| (f-10) of
Section 3-114, except that the affidavit of | 17 |
| repossession made by or on behalf
of the lienholder
shall | 18 |
| also contain an affirmation under penalty of perjury that | 19 |
| the vehicle
on
the date of sale is not
damaged in
excess of | 20 |
| 33 1/3% of its fair market value. If the facts required to | 21 |
| be shown
in subsection (f) of Section 3-114 are satisfied, | 22 |
| the Secretary of State
shall issue a certificate of title | 23 |
| as set forth in Section 3-116 of this Code.
The Secretary | 24 |
| of State may by rule or regulation require photographs to | 25 |
| be
submitted.
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| (4) A vehicle which is a part of a fleet of more than 5 |
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| commercial
vehicles registered in this State or any other | 2 |
| state or registered
proportionately among several states | 3 |
| shall be considered to be salvage when
such vehicle has | 4 |
| sustained damage by collision, fire, theft, rust,
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| corrosion or similar means so that the cost of repairing | 6 |
| such damage, including
labor, would be greater than 33 1/3% | 7 |
| of the fair market value of the vehicle
without such | 8 |
| damage. If the owner of a fleet vehicle desires to sell,
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| transfer, or assign his interest in such vehicle to a | 10 |
| person within this State
other than an insurance company | 11 |
| licensed to do business within this State, and
the owner | 12 |
| determines that such vehicle, at the time of the proposed | 13 |
| sale,
transfer or assignment is damaged in excess of 33 | 14 |
| 1/3% of its fair market
value, the owner shall, before such | 15 |
| sale, transfer or assignment, make
application for a | 16 |
| salvage certificate. The application shall contain with it
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| evidence of possession of the vehicle. If the fleet vehicle | 18 |
| at the time of its
sale, transfer, or assignment is not | 19 |
| damaged in excess of 33 1/3% of its
fair market value, the | 20 |
| owner shall so state in a written affirmation on a
form | 21 |
| prescribed by the Secretary of State by rule or regulation. | 22 |
| The
Secretary of State may by rule or regulation require | 23 |
| photographs to be
submitted. Upon sale, transfer or | 24 |
| assignment of the fleet vehicle the
owner shall mail the | 25 |
| affirmation to the Secretary of State.
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| (5) A vehicle that has been submerged in water to the
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| point that rising water has reached over the door sill and | 2 |
| has
entered the
passenger or trunk compartment is a "flood | 3 |
| vehicle". A flood vehicle shall
be considered to be salvage | 4 |
| only if the vehicle has sustained damage so that
the cost | 5 |
| of repairing the damage, including labor, would be greater | 6 |
| than 33
1/3% of the fair market value of the vehicle | 7 |
| without that damage. The salvage
certificate issued under | 8 |
| this
Section shall indicate the word "flood", and the word | 9 |
| "flood" shall be
conspicuously entered on subsequent | 10 |
| titles for the vehicle. A person who
possesses or acquires | 11 |
| a flood vehicle that is not damaged in excess of 33 1/3%
of | 12 |
| its fair market value shall make application for title in | 13 |
| accordance with
Section 3-116 of this Code, designating the | 14 |
| vehicle as "flood" in a manner
prescribed by the Secretary | 15 |
| of State. The certificate of title issued shall
indicate | 16 |
| the word "flood", and the word "flood" shall be | 17 |
| conspicuously entered
on subsequent titles for the | 18 |
| vehicle.
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| (c) Any person who without authority acquires, sells, | 20 |
| exchanges, gives
away, transfers or destroys or offers to | 21 |
| acquire, sell, exchange, give
away, transfer or destroy the | 22 |
| certificate of title to any vehicle which is
a junk or salvage | 23 |
| vehicle shall be guilty of a Class 3 felony.
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| (d) Any person who knowingly fails to surrender to the | 25 |
| Secretary of State a
certificate of title, salvage certificate, | 26 |
| certificate of purchase or a
similarly acceptable out-of-state |
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| document of ownership as required under
the provisions of this | 2 |
| Section is guilty of a Class A misdemeanor for a
first offense | 3 |
| and a Class 4 felony for a subsequent offense; except that a
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| person licensed under this Code who violates paragraph (5) of | 5 |
| subsection (b)
of this Section is
guilty of a business offense | 6 |
| and shall be fined not less than $1,000 nor more
than $5,000 | 7 |
| for a first offense and is guilty of a Class 4 felony
for a | 8 |
| second or subsequent violation.
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| (e) Any vehicle which is salvage or junk may not be driven | 10 |
| or operated
on roads and highways within this State. A | 11 |
| 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
from | 14 |
| an inspection conducted under Section 3-308 of this Code, is | 15 |
| exempt
from the provisions of this subsection. A salvage | 16 |
| vehicle for which a
short term permit has been issued under | 17 |
| Section 3-307 of this Code is
exempt from the provisions of | 18 |
| this subsection for the duration of the permit.
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| (Source: P.A. 95-495, eff. 1-1-08; 95-783, eff. 1-1-09.)
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| Section 99. Effective date. This Act takes effect January | 21 |
| 1, 2010.
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