96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3312


 
Introduced 2/10/2010, by Sen. David Koehler
 
SYNOPSIS AS INTRODUCED:









  



625 ILCS 5/3-117.1
 from Ch. 95 1/2, par. 3-117.1








 Amends the Illinois Vehicle Code. Deletes language stating that an insurer making payment of damages on a total loss claim for the theft of a vehicle shall not be required to apply for a salvage certificate unless the vehicle is recovered and has incurred damage that initially would have caused the vehicle to be declared a total loss by the insurer in a provision concerning when junking certificates or salvage certificates must
be obtained.
















LRB096 19423 AJT 34815 b

















 


 


A BILL FOR









 











SB3312

LRB096 19423 AJT 34815 b






1
 AN ACT concerning transportation.


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 changing 
5
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 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

19
certificate of title shall not again be issued for such 
20
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 
 


 






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1
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

4
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:


9
  (1) The business name, address and dealer license 
10
 number of the person
disposing of the vehicle, junk vehicle 
11
 or vehicle cowl;


12
  (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;


16
  (3) The date of the disposition of the vehicle, junk 
17
 vehicle or vehicle
cowl;


18
  (4) The year, make, model, color and description of 
19
 each vehicle, junk
vehicle or vehicle cowl disposed of by 
20
 such person;


21
  (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;


25
  (6) The printed name and legible signature of the 
26
 person or agent
disposing of the vehicle, junk vehicle or 
 


 






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1
 vehicle cowl; and


2
  (7) The printed name and legible signature of the 
3
 person accepting
delivery of the vehicle, junk vehicle or 
4
 vehicle cowl.

5
 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.

12
A junking manifest will allow the transportation of those

13
vehicles to a scrap processor prior to receiving the junk 
14
certificate from
the Secretary of State.

15
 (b) An application for a salvage certificate shall be 
16
submitted to the
Secretary of State in any of the following 
17
situations:


18
  (1) When an insurance company makes a payment of 
19
 damages on a total loss
claim for a vehicle, the insurance 
20
 company shall be deemed to be the owner of
such vehicle and 
21
 the vehicle shall be considered to be salvage except that

22
 ownership of (i) a vehicle that has incurred only hail 
23
 damage that does
not
affect the operational safety of the 
24
 vehicle or (ii) any vehicle
9 model years of age or older 
25
 may, by agreement between
the registered owner and the 
26
 insurance company, be retained by the registered
owner of 
 


 






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1
 such vehicle. The insurance company shall promptly deliver 
2
 or mail
within 20 days the certificate of title along with 
3
 proper application and fee
to the Secretary of State, and a 
4
 salvage certificate shall be issued in the
name of the 
5
 insurance company. Notwithstanding the foregoing, an 
6
 insurer making payment of damages on a total loss claim for 
7
 the theft of a vehicle shall not be required to apply for a 
8
 salvage certificate unless the vehicle is recovered and has 
9
 incurred damage that initially would have caused the 
10
 vehicle to be declared a total loss by the insurer.
11
  (1.1) When a vehicle of a self-insured company is to be 
12
 sold in the State of Illinois and has sustained damaged by 
13
 collision, fire, theft, rust corrosion, or other means so 
14
 that the self-insured company determines the vehicle to be 
15
 a total loss, or if the cost of repairing the damage, 
16
 including labor, would be greater than 50% of its fair 
17
 market value without that damage, the vehicle shall be 
18
 considered salvage. The self-insured company shall 
19
 promptly deliver the certificate of title along with proper 
20
 application and fee to the Secretary of State, and a 
21
 salvage certificate shall be issued in the name of the 
22
 self-insured company. A self-insured company making 
23
 payment of damages on a total loss claim for the theft of a 
24
 vehicle may exchange the salvage certificate for a 
25
 certificate of title if the vehicle is recovered without 
26
 damage. In such a situation, the self-insured shall fill 
 


 






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1
 out and sign a form prescribed by the Secretary of State 
2
 which contains an affirmation under penalty of perjury that 
3
 the vehicle was recovered without damage and the Secretary 
4
 of State may, by rule, require photographs to be submitted.



5
  (2) When a vehicle the ownership of which has been 
6
 transferred to any
person through a certificate of purchase 
7
 from acquisition of the vehicle at an
auction, other 
8
 dispositions as set forth in Sections 4-208 and 4-209
of 
9
 this Code, a lien arising under Section 18a-501 of this 
10
 Code,
or a public sale under the Abandoned Mobile Home Act 
11
 shall be deemed
salvage or junk at the option of the 
12
 purchaser. The person acquiring such
vehicle in such manner 
13
 shall promptly deliver or mail, within 20 days after the

14
 acquisition of the vehicle, the certificate of purchase, 
15
 the
proper application and fee, and, if the vehicle is an 
16
 abandoned mobile home
under the Abandoned Mobile Home Act, 
17
 a certification from a local law
enforcement agency that 
18
 the vehicle was purchased or acquired at a public sale

19
 under the Abandoned Mobile Home Act to the Secretary of 
20
 State and a salvage
certificate or junking certificate 
21
 shall be issued in the name of that person.
The salvage 
22
 certificate or junking certificate issued by the Secretary 
23
 of State
under this Section shall be free of any lien that 
24
 existed against the vehicle
prior to the time the vehicle 
25
 was acquired by the applicant under this Code.


26
  (3) A vehicle which has been repossessed by a 
 


 






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1
 lienholder shall be
considered to be salvage only when the 
2
 repossessed vehicle, on the date of
repossession by the 
3
 lienholder, has sustained damage by collision, fire, 
4
 theft,
rust corrosion, or other means so that the cost of 
5
 repairing
such damage, including labor, would be greater 
6
 than 33 1/3% of its fair market
value without such damage. 
7
 If the lienholder determines that such vehicle is
damaged 
8
 in excess of 33 1/3% of such fair market value, the 
9
 lienholder shall,
before sale, transfer or assignment of 
10
 the vehicle, make application for a
salvage certificate, 
11
 and shall submit with such application the proper fee
and 
12
 evidence of possession. If the facts required to be shown 
13
 in
subsection (f) of Section 3-114 are satisfied, the 
14
 Secretary of State shall
issue a salvage certificate in the 
15
 name of the lienholder making the
application. In any case 
16
 wherein the vehicle repossessed is not damaged in
excess of 
17
 33 1/3% of its fair market value, the lienholder
shall 
18
 comply with the requirements of subsections (f), (f-5), and 
19
 (f-10) of
Section 3-114, except that the affidavit of 
20
 repossession made by or on behalf
of the lienholder
shall 
21
 also contain an affirmation under penalty of perjury that 
22
 the vehicle
on
the date of sale is not
damaged in
excess of 
23
 33 1/3% of its fair market value. If the facts required to 
24
 be shown
in subsection (f) of Section 3-114 are satisfied, 
25
 the Secretary of State
shall issue a certificate of title 
26
 as set forth in Section 3-116 of this Code.
The Secretary 
 


 






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1
 of State may by rule or regulation require photographs to 
2
 be
submitted.


3
  (4) A vehicle which is a part of a fleet of more than 5 
4
 commercial
vehicles registered in this State or any other 
5
 state or registered
proportionately among several states 
6
 shall be considered to be salvage when
such vehicle has 
7
 sustained damage by collision, fire, theft, rust,

8
 corrosion or similar means so that the cost of repairing 
9
 such damage, including
labor, would be greater than 33 1/3% 
10
 of the fair market value of the vehicle
without such 
11
 damage. If the owner of a fleet vehicle desires to sell,

12
 transfer, or assign his interest in such vehicle to a 
13
 person within this State
other than an insurance company 
14
 licensed to do business within this State, and
the owner 
15
 determines that such vehicle, at the time of the proposed 
16
 sale,
transfer or assignment is damaged in excess of 33 
17
 1/3% of its fair market
value, the owner shall, before such 
18
 sale, transfer or assignment, make
application for a 
19
 salvage certificate. The application shall contain with it

20
 evidence of possession of the vehicle. If the fleet vehicle 
21
 at the time of its
sale, transfer, or assignment is not 
22
 damaged in excess of 33 1/3% of its
fair market value, the 
23
 owner shall so state in a written affirmation on a
form 
24
 prescribed by the Secretary of State by rule or regulation. 
25
 The
Secretary of State may by rule or regulation require 
26
 photographs to be
submitted. Upon sale, transfer or 
 


 






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 assignment of the fleet vehicle the
owner shall mail the 
2
 affirmation to the Secretary of State.


3
  (5) A vehicle that has been submerged in water to the

4
 point that rising water has reached over the door sill and 
5
 has
entered the
passenger or trunk compartment is a "flood 
6
 vehicle". A flood vehicle shall
be considered to be salvage 
7
 only if the vehicle has sustained damage so that
the cost 
8
 of repairing the damage, including labor, would be greater 
9
 than 33
1/3% of the fair market value of the vehicle 
10
 without that damage. The salvage
certificate issued under 
11
 this
Section shall indicate the word "flood", and the word 
12
 "flood" shall be
conspicuously entered on subsequent 
13
 titles for the vehicle. A person who
possesses or acquires 
14
 a flood vehicle that is not damaged in excess of 33 1/3%
of 
15
 its fair market value shall make application for title in 
16
 accordance with
Section 3-116 of this Code, designating the 
17
 vehicle as "flood" in a manner
prescribed by the Secretary 
18
 of State. The certificate of title issued shall
indicate 
19
 the word "flood", and the word "flood" shall be 
20
 conspicuously entered
on subsequent titles for the 
21
 vehicle.

22
 (c) Any person who without authority acquires, sells, 
23
exchanges, gives
away, transfers or destroys or offers to 
24
acquire, sell, exchange, give
away, transfer or destroy the 
25
certificate of title to any vehicle which is
a junk or salvage 
26
vehicle shall be guilty of a Class 3 felony.

 


 






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 (d) Any person who knowingly fails to surrender to the 
2
Secretary of State a
certificate of title, salvage certificate, 
3
certificate of purchase or a
similarly acceptable out-of-state 
4
document of ownership as required under
the provisions of this 
5
Section is guilty of a Class A misdemeanor for a
first offense 
6
and a Class 4 felony for a subsequent offense; except that a

7
person licensed under this Code who violates paragraph (5) of 
8
subsection (b)
of this Section is
guilty of a business offense 
9
and shall be fined not less than $1,000 nor more
than $5,000 
10
for a first offense and is guilty of a Class 4 felony
for a 
11
second or subsequent violation.

12
 (e) Any vehicle which is salvage or junk may not be driven 
13
or operated
on roads and highways within this State. A 
14
violation of this subsection is
a Class A misdemeanor. A 
15
salvage vehicle displaying valid special plates
issued under 
16
Section 3-601(b) of this Code, which is being driven to or
from 
17
an inspection conducted under Section 3-308 of this Code, is 
18
exempt
from the provisions of this subsection. A salvage 
19
vehicle for which a
short term permit has been issued under 
20
Section 3-307 of this Code is
exempt from the provisions of 
21
this subsection for the duration of the permit.

22
(Source: P.A. 95-495, eff. 1-1-08; 95-783, eff. 1-1-09.)