Bill Text: IL SB0467 | 2015-2016 | 99th General Assembly | Engrossed

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Bill Title: Amends the Public Utilities Act. Makes a technical change in the short title Section.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Engrossed - Dead) 2016-05-27 - Rule 19(a) / Re-referred to Rules Committee [SB0467 Detail]

Download: Illinois-2015-SB0467-Engrossed.html

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AN ACT concerning regulation.
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 7-604 and 7-607 and by adding Section 7-604.5 as
follows:
(625 ILCS 5/7-604) (from Ch. 95 1/2, par. 7-604)
(Section scheduled to be repealed on December 31, 2016)
Sec. 7-604. Verification of liability insurance policy.
(a) The Secretary of State may select random samples of
registrations of motor vehicles subject to Section 7-601 of
this Code, or owners thereof, for the purpose of verifying
whether or not the motor vehicles are insured.
In addition to such general random samples of motor vehicle
registrations, the Secretary may select for verification other
random samples, including, but not limited to registrations of
motor vehicles owned by persons:
(1) whose motor vehicle registrations during the
preceding 4 years have been suspended pursuant to Section
7-606 or 7-607 of this Code;
(2) who during the preceding 4 years have been
convicted of violating Section 3-707, 3-708 or 3-710 of
this Code while operating vehicles owned by other persons;

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(3) whose driving privileges have been suspended
during the preceding 4 years;
(4) who during the preceding 4 years acquired ownership
of motor vehicles while the registrations of such vehicles
under the previous owners were suspended pursuant to
Section 7-606 or 7-607 of this Code; or
(5) who during the preceding 4 years have received a
disposition of supervision under subsection (c) of Section
5-6-1 of the Unified Code of Corrections for a violation of
Section 3-707, 3-708, or 3-710 of this Code.
(b) Upon receiving certification from the Department of
Transportation under Section 7-201.2 of this Code of the name
of an owner or operator of any motor vehicle involved in an
accident, the Secretary may verify whether or not at the time
of the accident such motor vehicle was covered by a liability
insurance policy in accordance with Section 7-601 of this Code.
(c) In preparation for selection of random samples and
their verification, the Secretary may send to owners of
randomly selected motor vehicles, or to randomly selected motor
vehicle owners, requests for information about their motor
vehicles and liability insurance coverage. The request shall
require the owner to state whether or not the motor vehicle was
insured on the verification date stated in the Secretary's
request and the request may require, but is not limited to, a
statement by the owner of the names and addresses of insurers,
policy numbers, and expiration dates of insurance coverage.

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(d) Within 30 days after the Secretary mails a request, the
owner to whom it is sent shall furnish the requested
information to the Secretary above the owner's signed
affirmation that such information is true and correct. Proof of
insurance in effect on the verification date, as prescribed by
the Secretary, may be considered by the Secretary to be a
satisfactory response to the request for information.
Any owner whose response indicates that his or her vehicle
was not covered by a liability insurance policy in accordance
with Section 7-601 of this Code shall be deemed to have
registered or maintained registration of a motor vehicle in
violation of that Section. Any owner who fails to respond to
such a request shall be deemed to have registered or maintained
registration of a motor vehicle in violation of Section 7-601
of this Code.
(e) If the owner responds to the request for information by
asserting that his or her vehicle was covered by a liability
insurance policy on the verification date stated in the
Secretary's request, the Secretary may conduct a verification
of the response by furnishing necessary information to the
insurer named in the response. The insurer shall within 45 days
inform the Secretary whether or not on the verification date
stated the motor vehicle was insured by the insurer in
accordance with Section 7-601 of this Code. The Secretary may
by rule and regulation prescribe the procedures for
verification.

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(f) No random sample selected under this Section shall be
categorized on the basis of race, color, religion, sex,
national origin, ancestry, age, marital status, physical or
mental disability, economic status or geography.
(f-5) This Section shall be inoperative upon the effective
date of the rules adopted by the Secretary to implement Section
7-604.5 of this Code.
(g) This Section is repealed on December 31, 2016.
(Source: P.A. 98-787, eff. 7-25-14; 99-333, eff. 12-30-15 (see
Section 15 of P.A. 99-483 for the effective date of changes
made by P.A. 99-333).)
(625 ILCS 5/7-604.5 new)
Sec. 7-604.5. Electronic verification of a liability
insurance policy.
(a) The Secretary may implement a program of electronic
motor vehicle liability insurance policy verification for
motor vehicles subject to Section 7-601 of this Code for the
purpose of verifying whether or not the motor vehicle is
insured. The program shall include, but is not limited to:
(1) a requirement that an insurance company authorized
to sell motor vehicle liability insurance in this State
shall make available, in a format designated by the
Secretary, to the Secretary for each motor vehicle
liability insurance policy issued by the company the
following information:

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(A) the name of the policy holder;
(B) the make, model, year, and vehicle
identification number of the covered motor vehicle;
(C) the policy number;
(D) the policy effective date;
(E) the insurance company's National Association
of Insurance Commissioners number; and
(F) any other information the Secretary deems
necessary;
(2) a method for searching motor vehicle liability
insurance policies issued and in effect in this State by
using the information under subparagraphs (A), (B), or (C)
of paragraph (1) of this subsection (a);
(3) a requirement that at least twice per calendar
year, the Secretary shall verify the existence of a
liability insurance policy for every registered motor
vehicle subject to Section 7-601 of this Code; and if the
Secretary is unable to verify the existence of a liability
insurance policy, the Secretary shall send the vehicle
owner a written notice allowing the vehicle owner 30
calendar days to provide proof of insurance on the date of
the attempted verification, or to provide proof that the
vehicle is no longer operable;
(4) a requirement that a vehicle owner who does not
provide proof of insurance or proof of an inoperable
vehicle under paragraph (3) of this subsection (a) shall be

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in violation of Section 7-601 of this Code and the
Secretary shall suspend the vehicle's registration and the
owner of the vehicle shall pay any applicable reinstatement
fees under Section 7-606 of this Code; and
(5) a requirement that if a vehicle owner provides
proof of insurance on the date of the attempted
verification under paragraph (3) of this subsection (a),
the Secretary shall verify the vehicle owner's response by
furnishing necessary information to the insurance company.
Within 7 calendar days of receiving the information, the
insurance company shall confirm and notify the Secretary
the dates of the motor vehicle's insurance coverage. If the
insurance company does not confirm coverage for the date of
the attempted verification, the Secretary shall suspend
the vehicle's registration and the owner of the vehicle
shall pay any applicable reinstatement fees under Section
7-606 of this Code.
(b) In addition to the semi-annual verification of
liability insurance under subsection (a) of this Section, the
Secretary may select monthly verification for a motor vehicle,
including, but not limited to, a motor vehicle owned or
operated by a person:
(1) whose motor vehicle registration during the
preceding 4 years has been suspended under Section 7-606 or
7-607 of this Code;
(2) who, during the preceding 4 years, has been

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convicted of violating Section 3-707, 3-708, or 3-710 of
this Code while operating a vehicle owned by another
person;
(3) whose driving privileges have been suspended
during the preceding 4 years;
(4) who, during the preceding 4 years, acquired
ownership of a motor vehicle while the registration of the
vehicle under the previous owner was suspended under
Section 7-606 or 7-607 of this Code; or
(5) who, during the preceding 4 years, has received a
disposition of supervision under subsection (c) of Section
5-6-1 of the Unified Code of Corrections for a violation of
Section 3-707, 3-708, or 3-710 of this Code.
(c) The Secretary may contract with a private contractor to
carry out the Secretary's duties under this Section.
(d) Nothing in this Section provides the Secretary with
regulatory authority over insurance companies.
(e) The Secretary may adopt any rules necessary to
implement this Section.
(625 ILCS 5/7-607) (from Ch. 95 1/2, par. 7-607)
Sec. 7-607. Submission of false proof - penalty. If the
Secretary determines that the proof of insurance submitted by a
motor vehicle owner under Section 7-604, 7-604.5, 7-605 or
7-606 of this Code is false, the Secretary shall suspend the
owner's vehicle registration. The Secretary shall terminate

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the suspension 6 months after its effective date upon payment
by the owner of a reinstatement fee of $200 and submission of
proof of insurance as prescribed by the Secretary.
All fees collected under this Section shall be disbursed
under subsection (g) of Section 2-119 of this Code.
(Source: P.A. 99-127, eff. 1-1-16.)