Illinois 2023-2024 Regular Session

Illinois House Bill HB1425 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	HB1425 EngrossedLRB103 03727 BMS 48733 b HB1425 Engrossed LRB103 03727 BMS 48733 b
2		-	HB1425 Engrossed LRB103 03727 BMS 48733 b
	1	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1425 Introduced , by Rep. David Friess SYNOPSIS AS INTRODUCED: 625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1 Amends the Certificate of Title Article of the Illinois Vehicle Code. In provisions concerning total loss claims for vehicles, provides that if the registered owner of a vehicle 9 model years of age or older does not agree to retain the vehicle, then the insurance company shall take possession of the vehicle. LRB103 03727 BMS 48733 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1425 Introduced , by Rep. David Friess SYNOPSIS AS INTRODUCED: 625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1 625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1 Amends the Certificate of Title Article of the Illinois Vehicle Code. In provisions concerning total loss claims for vehicles, provides that if the registered owner of a vehicle 9 model years of age or older does not agree to retain the vehicle, then the insurance company shall take possession of the vehicle. LRB103 03727 BMS 48733 b LRB103 03727 BMS 48733 b A BILL FOR
	2	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1425 Introduced , by Rep. David Friess SYNOPSIS AS INTRODUCED:
	3	+	625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1 625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1
	4	+	625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1
	5	+	Amends the Certificate of Title Article of the Illinois Vehicle Code. In provisions concerning total loss claims for vehicles, provides that if the registered owner of a vehicle 9 model years of age or older does not agree to retain the vehicle, then the insurance company shall take possession of the vehicle.
	6	+	LRB103 03727 BMS 48733 b LRB103 03727 BMS 48733 b
	7	+	LRB103 03727 BMS 48733 b
	8	+	A BILL FOR
	9	+	HB1425LRB103 03727 BMS 48733 b HB1425 LRB103 03727 BMS 48733 b
	10	+	HB1425 LRB103 03727 BMS 48733 b
3	11		1 AN ACT concerning transportation.
4	12		2 Be it enacted by the People of the State of Illinois,
5	13		3 represented in the General Assembly:
6	14		4 Section 5. The Illinois Vehicle Code is amended by
7	15		5 changing Section 3-117.1 as follows:
8	16		6 (625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1)
9	17		7 Sec. 3-117.1. When junking certificates or salvage
10	18		8 certificates must be obtained.
11	19		9 (a) Except as provided in Chapter 4 and Section 3-117.3 of
12	20		10 this Code, a person who possesses a junk vehicle shall within
13	21		11 15 days cause the certificate of title, salvage certificate,
14	22		12 certificate of purchase, or a similarly acceptable
15	23		13 out-of-state document of ownership to be surrendered to the
16	24		14 Secretary of State along with an application for a junking
17	25		15 certificate, except as provided in Section 3-117.2, whereupon
18	26		16 the Secretary of State shall issue to such a person a junking
19	27		17 certificate, which shall authorize the holder thereof to
20	28		18 possess, transport, or, by an endorsement, transfer ownership
21	29		19 in such junked vehicle, and a certificate of title shall not
22	30		20 again be issued for such vehicle. The owner of a junk vehicle
23	31		21 is not required to surrender the certificate of title under
24	32		22 this subsection if (i) there is no lienholder on the
25	33		23 certificate of title or (ii) the owner of the junk vehicle has
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	37	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1425 Introduced , by Rep. David Friess SYNOPSIS AS INTRODUCED:
	38	+	625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1 625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1
	39	+	625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1
	40	+	Amends the Certificate of Title Article of the Illinois Vehicle Code. In provisions concerning total loss claims for vehicles, provides that if the registered owner of a vehicle 9 model years of age or older does not agree to retain the vehicle, then the insurance company shall take possession of the vehicle.
	41	+	LRB103 03727 BMS 48733 b LRB103 03727 BMS 48733 b
	42	+	LRB103 03727 BMS 48733 b
	43	+	A BILL FOR
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	49	+	625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1
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34	68		1 a valid lien release from the lienholder releasing all
35	69		2 interest in the vehicle and the owner applying for the junk
36	70		3 certificate matches the current record on the certificate of
37	71		4 title file for the vehicle.
38	72		5 A licensee who possesses a junk vehicle and a Certificate
39	73		6 of Title, Salvage Certificate, Certificate of Purchase, or a
40	74		7 similarly acceptable out-of-state document of ownership for
41	75		8 such junk vehicle, may transport the junk vehicle to another
42	76		9 licensee prior to applying for or obtaining a junking
43	77		10 certificate, by executing a uniform invoice. The licensee
44	78		11 transferor shall furnish a copy of the uniform invoice to the
45	79		12 licensee transferee at the time of transfer. In any case, the
46	80		13 licensee transferor shall apply for a junking certificate in
47	81		14 conformance with Section 3-117.1 of this Chapter. The
48	82		15 following information shall be contained on a uniform invoice:
49	83		16 (1) The business name, address, and dealer license
50	84		17 number of the person disposing of the vehicle, junk
51	85		18 vehicle, or vehicle cowl;
52	86		19 (2) The name and address of the person acquiring the
53	87		20 vehicle, junk vehicle, or vehicle cowl and, if that person
54	88		21 is a dealer, the Illinois or out-of-state dealer license
55	89		22 number of that dealer;
56	90		23 (3) The date of the disposition of the vehicle, junk
57	91		24 vehicle, or vehicle cowl;
58	92		25 (4) The year, make, model, color, and description of
59	93		26 each vehicle, junk vehicle, or vehicle cowl disposed of by
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70	104		1 such person;
71	105		2 (5) The manufacturer's vehicle identification number,
72	106		3 Secretary of State identification number, or Illinois
73	107		4 State Police number for each vehicle, junk vehicle, or
74	108		5 vehicle cowl part disposed of by such person;
75	109		6 (6) The printed name and legible signature of the
76	110		7 person or agent disposing of the vehicle, junk vehicle, or
77	111		8 vehicle cowl; and
78	112		9 (7) The printed name and legible signature of the
79	113		10 person accepting delivery of the vehicle, junk vehicle, or
80	114		11 vehicle cowl.
81	115		12 The Secretary of State may certify a junking manifest in a
82	116		13 form prescribed by the Secretary of State that reflects those
83	117		14 vehicles for which junking certificates have been applied or
84	118		15 issued. A junking manifest may be issued to any person and it
85	119		16 shall constitute evidence of ownership for the vehicle listed
86	120		17 upon it. A junking manifest may be transferred only to a person
87	121		18 licensed under Section 5-301 of this Code as a scrap
88	122		19 processor. A junking manifest will allow the transportation of
89	123		20 those vehicles to a scrap processor prior to receiving the
90	124		21 junk certificate from the Secretary of State.
91	125		22 (b) An application for a salvage certificate shall be
92	126		23 submitted to the Secretary of State in any of the following
93	127		24 situations:
94	128		25 (1) When an insurance company makes a payment of
95	129		26 damages on a total loss claim for a vehicle, the insurance
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106	140		1 company shall be deemed to be the owner of such vehicle and
107	141		2 the vehicle shall be considered to be salvage except that
108	142		3 ownership of (i) a vehicle that has incurred only hail
109	143		4 damage that does not affect the operational safety of the
110	144		5 vehicle or (ii) any vehicle 9 model years of age or older
111	145		6 may, by agreement between the registered owner and the
112	146		7 insurance company, be retained by the registered owner of
113	147		8 such vehicle; however, if the registered owner does not
114	148		9 agree to retain a vehicle 9 model years of age or older,
115	149		10 then the insurance company shall take possession of the
116	150		11 vehicle. The insurance company shall promptly deliver or
117	151		12 mail within 20 days the certificate of title along with
118	152		13 proper application and fee to the Secretary of State, and
119	153		14 a salvage certificate shall be issued in the name of the
120	154		15 insurance company. Notwithstanding the foregoing, an
121	155		16 insurer making payment of damages on a total loss claim
122	156		17 for the theft of a vehicle shall not be required to apply
123	157		18 for a salvage certificate unless the vehicle is recovered
124	158		19 and has incurred damage that initially would have caused
125	159		20 the vehicle to be declared a total loss by the insurer.
126	160		21 (1.1) When a vehicle of a self-insured company is to
127	161		22 be sold in the State of Illinois and has sustained damaged
128	162		23 by collision, fire, theft, rust corrosion, or other means
129	163		24 so that the self-insured company determines the vehicle to
130	164		25 be a total loss, or if the cost of repairing the damage,
131	165		26 including labor, would be greater than 70% of its fair
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142	176		1 market value without that damage, the vehicle shall be
143	177		2 considered salvage. The self-insured company shall
144	178		3 promptly deliver the certificate of title along with
145	179		4 proper application and fee to the Secretary of State, and
146	180		5 a salvage certificate shall be issued in the name of the
147	181		6 self-insured company. A self-insured company making
148	182		7 payment of damages on a total loss claim for the theft of a
149	183		8 vehicle may exchange the salvage certificate for a
150	184		9 certificate of title if the vehicle is recovered without
151	185		10 damage. In such a situation, the self-insured shall fill
152	186		11 out and sign a form prescribed by the Secretary of State
153	187		12 which contains an affirmation under penalty of perjury
154	188		13 that the vehicle was recovered without damage and the
155	189		14 Secretary of State may, by rule, require photographs to be
156	190		15 submitted.
157	191		16 (2) When a vehicle the ownership of which has been
158	192		17 transferred to any person through a certificate of
159	193		18 purchase from acquisition of the vehicle at an auction,
160	194		19 other dispositions as set forth in Sections 4-208 and
161	195		20 4-209 of this Code, or a lien arising under Section
162	196		21 18a-501 of this Code shall be deemed salvage or junk at the
163	197		22 option of the purchaser. The person acquiring such vehicle
164	198		23 in such manner shall promptly deliver or mail, within 20
165	199		24 days after the acquisition of the vehicle, the certificate
166	200		25 of purchase, the proper application and fee, and, if the
167	201		26 vehicle is an abandoned mobile home under the Abandoned
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178	212		1 Mobile Home Act, a certification from a local law
179	213		2 enforcement agency that the vehicle was purchased or
180	214		3 acquired at a public sale under the Abandoned Mobile Home
181	215		4 Act to the Secretary of State and a salvage certificate or
182	216		5 junking certificate shall be issued in the name of that
183	217		6 person. The salvage certificate or junking certificate
184	218		7 issued by the Secretary of State under this Section shall
185	219		8 be free of any lien that existed against the vehicle prior
186	220		9 to the time the vehicle was acquired by the applicant
187	221		10 under this Code.
188	222		11 (3) A vehicle which has been repossessed by a
189	223		12 lienholder shall be considered to be salvage only when the
190	224		13 repossessed vehicle, on the date of repossession by the
191	225		14 lienholder, has sustained damage by collision, fire,
192	226		15 theft, rust corrosion, or other means so that the cost of
193	227		16 repairing such damage, including labor, would be greater
194	228		17 than 50% of its fair market value without such damage. If
195	229		18 the lienholder determines that such vehicle is damaged in
196	230		19 excess of 50% of such fair market value, the lienholder
197	231		20 shall, before sale, transfer, or assignment of the
198	232		21 vehicle, make application for a salvage certificate, and
199	233		22 shall submit with such application the proper fee and
200	234		23 evidence of possession. If the facts required to be shown
201	235		24 in subsection (f) of Section 3-114 are satisfied, the
202	236		25 Secretary of State shall issue a salvage certificate in
203	237		26 the name of the lienholder making the application. In any
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214	248		1 case wherein the vehicle repossessed is not damaged in
215	249		2 excess of 50% of its fair market value, the lienholder
216	250		3 shall comply with the requirements of subsections (f),
217	251		4 (f-5), and (f-10) of Section 3-114, except that the
218	252		5 affidavit of repossession made by or on behalf of the
219	253		6 lienholder shall also contain an affirmation under penalty
220	254		7 of perjury that the vehicle on the date of sale is not
221	255		8 damaged in excess of 50% of its fair market value. If the
222	256		9 facts required to be shown in subsection (f) of Section
223	257		10 3-114 are satisfied, the Secretary of State shall issue a
224	258		11 certificate of title as set forth in Section 3-116 of this
225	259		12 Code. The Secretary of State may by rule or regulation
226	260		13 require photographs to be submitted.
227	261		14 (4) A vehicle which is a part of a fleet of more than 5
228	262		15 commercial vehicles registered in this State or any other
229	263		16 state or registered proportionately among several states
230	264		17 shall be considered to be salvage when such vehicle has
231	265		18 sustained damage by collision, fire, theft, rust,
232	266		19 corrosion or similar means so that the cost of repairing
233	267		20 such damage, including labor, would be greater than 50% of
234	268		21 the fair market value of the vehicle without such damage.
235	269		22 If the owner of a fleet vehicle desires to sell, transfer,
236	270		23 or assign his interest in such vehicle to a person within
237	271		24 this State other than an insurance company licensed to do
238	272		25 business within this State, and the owner determines that
239	273		26 such vehicle, at the time of the proposed sale, transfer
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250	284		1 or assignment is damaged in excess of 50% of its fair
251	285		2 market value, the owner shall, before such sale, transfer
252	286		3 or assignment, make application for a salvage certificate.
253	287		4 The application shall contain with it evidence of
254	288		5 possession of the vehicle. If the fleet vehicle at the
255	289		6 time of its sale, transfer, or assignment is not damaged
256	290		7 in excess of 50% of its fair market value, the owner shall
257	291		8 so state in a written affirmation on a form prescribed by
258	292		9 the Secretary of State by rule or regulation. The
259	293		10 Secretary of State may by rule or regulation require
260	294		11 photographs to be submitted. Upon sale, transfer or
261	295		12 assignment of the fleet vehicle the owner shall mail the
262	296		13 affirmation to the Secretary of State.
263	297		14 (5) A vehicle that has been submerged in water to the
264	298		15 point that rising water has reached over the door sill and
265	299		16 has entered the passenger or trunk compartment is a "flood
266	300		17 vehicle". A flood vehicle shall be considered to be
267	301		18 salvage only if the vehicle has sustained damage so that
268	302		19 the cost of repairing the damage, including labor, would
269	303		20 be greater than 50% of the fair market value of the vehicle
270	304		21 without that damage. The salvage certificate issued under
271	305		22 this Section shall indicate the word "flood", and the word
272	306		23 "flood" shall be conspicuously entered on subsequent
273	307		24 titles for the vehicle. A person who possesses or acquires
274	308		25 a flood vehicle that is not damaged in excess of 50% of its
275	309		26 fair market value shall make application for title in
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286	320		1 accordance with Section 3-116 of this Code, designating
287	321		2 the vehicle as "flood" in a manner prescribed by the
288	322		3 Secretary of State. The certificate of title issued shall
289	323		4 indicate the word "flood", and the word "flood" shall be
290	324		5 conspicuously entered on subsequent titles for the
291	325		6 vehicle.
292	326		7 (6) When any licensed rebuilder, repairer, new or used
293	327		8 vehicle dealer, or remittance agent has submitted an
294	328		9 application for title to a vehicle (other than an
295	329		10 application for title to a rebuilt vehicle) that he or she
296	330		11 knows or reasonably should have known to have sustained
297	331		12 damages in excess of 50% of the vehicle's fair market
298	332		13 value without that damage; provided, however, that any
299	333		14 application for a salvage certificate for a vehicle
300	334		15 recovered from theft and acquired from an insurance
301	335		16 company shall be made as required by paragraph (1) of this
302	336		17 subsection (b).
303	337		18 (c) Any person who without authority acquires, sells,
304	338		19 exchanges, gives away, transfers or destroys or offers to
305	339		20 acquire, sell, exchange, give away, transfer or destroy the
306	340		21 certificate of title to any vehicle which is a junk or salvage
307	341		22 vehicle shall be guilty of a Class 3 felony.
308	342		23 (d) Except as provided under subsection (a), any person
309	343		24 who knowingly fails to surrender to the Secretary of State a
310	344		25 certificate of title, salvage certificate, certificate of
311	345		26 purchase or a similarly acceptable out-of-state document of
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322	356		1 ownership as required under the provisions of this Section is
323	357		2 guilty of a Class A misdemeanor for a first offense and a Class
324	358		3 4 felony for a subsequent offense; except that a person
325	359		4 licensed under this Code who violates paragraph (5) of
326	360		5 subsection (b) of this Section is guilty of a business offense
327	361		6 and shall be fined not less than $1,000 nor more than $5,000
328	362		7 for a first offense and is guilty of a Class 4 felony for a
329	363		8 second or subsequent violation.
330	364		9 (e) Any vehicle which is salvage or junk may not be driven
331	365		10 or operated on roads and highways within this State. A
332	366		11 violation of this subsection is a Class A misdemeanor. A
333	367		12 salvage vehicle displaying valid special plates issued under
334	368		13 Section 3-601(b) of this Code, which is being driven to or from
335	369		14 an inspection conducted under Section 3-308 of this Code, is
336	370		15 exempt from the provisions of this subsection. A salvage
337	371		16 vehicle for which a short term permit has been issued under
338	372		17 Section 3-307 of this Code is exempt from the provisions of
339	373		18 this subsection for the duration of the permit.
340	374		19 (Source: P.A. 101-81, eff. 7-12-19; 102-319, eff. 1-1-22;
341	375		20 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
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