Bill Text: IL HB2528 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Vehicle Code. Provides that the Secretary of State, upon receipt of an application for a new certificate of title, an application for a certificate of title by a transferee, an application for a certificate of title pursuant to a court order awarding ownership to the applicant, an application for a junking certificate, or an application for a salvage certificate, shall remove the current owner registration and license plate record on file associated with the vehicle's serial number before issuing a new certificate. Makes changes to provisions regarding: junk vehicle notification format; the types of records required to be kept by specified licensees under the Code; and the information required to be contained on a uniform invoice for essential parts. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB2528 Detail]

Download: Illinois-2021-HB2528-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB2528 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
625 ILCS 5/3-116 from Ch. 95 1/2, par. 3-116
625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1
625 ILCS 5/3-117.2 from Ch. 95 1/2, par. 3-117.2
625 ILCS 5/3-801 from Ch. 95 1/2, par. 3-801
625 ILCS 5/5-401.2 from Ch. 95 1/2, par. 5-401.2
625 ILCS 5/5-402 from Ch. 95 1/2, par. 5-402
625 ILCS 5/5-402.1 from Ch. 95 1/2, par. 5-402.1
Amends the Illinois Vehicle Code. Provides that the Secretary of State, upon receipt of an application for a new certificate of title, an application for a certificate of title by a transferee, an application for a certificate of title pursuant to a court order awarding ownership to the applicant, an application for a junking certificate, or an application for a salvage certificate, shall remove the current owner registration and license plate record on file associated with the vehicle's serial number before issuing a new certificate. Makes changes to provisions regarding: junk vehicle notification format; the types of records required to be kept by specified licensees under the Code; and the information required to be contained on a uniform invoice for essential parts. Makes other changes.
LRB102 15764 RAM 21131 b
A BILL FOR
HB2528 LRB102 15764 RAM 21131 b
AN ACT concerning transportation.
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 3-116, 3-117.1, 3-117.2, 3-801, 5-401.2,
5-402, and 5-402.1 as follows:
(625 ILCS 5/3-116) (from Ch. 95 1/2, par. 3-116)
Sec. 3-116. When Secretary of State to issue a certificate
of title.
(a) The Secretary of State, upon receipt of a properly
assigned certificate of title, with an application for a
certificate of title, the required fee and any other documents
required by law, shall remove the current owner registration
and license plate record on file associated with the vehicle's
serial number and shall issue a new certificate of title in the
name of the transferee as owner and mail it to the first
lienholder named in it or, if none, to the owner or owner's
designee.
(b) The Secretary of State, upon receipt of an application
for a new certificate of title by a transferee other than by
voluntary transfer, with proof of the transfer, the required
fee and any other documents required by law, shall remove the
current owner registration and license plate record on file

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associated with the vehicle's serial number and shall issue a
new certificate of title in the name of the transferee as
owner.
(b-5) The Secretary of State, upon receipt of an
application for a certificate of title and the required fee,
may issue a certificate of title to an out-of-state resident
if the out-of-state resident is a bona fide purchaser of a
vehicle or a manufactured home from a dealer licensed in this
State under Section 5-101, 5-101.2, or 5-102 of this Code and
the licensed dealer files for bankruptcy, surrenders his or
her license, or is otherwise no longer operating as a licensed
dealer and does not properly transfer the title application to
the bona fide purchaser prior to the licensed dealer's
business closure.
(c) Any person, firm or corporation, who shall knowingly
possess, buy, sell, exchange or give away, or offer to buy,
sell, exchange or give away the certificate of title to any
motor vehicle which is a junk or salvage, or who shall fail to
surrender the certificate of title to the Secretary of State
as required under the provisions of this Section and Section
3-117.2, shall be guilty of Class 3 felony.
(d) The Secretary of State shall file and retain for four
(4) years a record of every surrendered certificate of title
or proof of ownership accepted by the Secretary of State, the
file to be maintained so as to permit the tracing of title of
the vehicle designated therein. Such filing and retention

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requirements shall be in addition to and not in substitution
for the recordkeeping requirements set forth in Section 3-106
of this Code, which recordkeeping requirements are not limited
to any period of time.
(e) The Secretary of State, upon receipt of an application
for corrected certificate of title, with the original title,
the required fee and any other required documents, shall issue
a corrected certificate of title in the name of the owner and
mail it to the first lienholder named in it or, if none, to the
owner or owner's designee.
(f) The Secretary of State, upon receipt of a certified
copy of a court order awarding ownership to an applicant along
with an application for a certificate of title and the
required fee, shall remove the current owner registration and
license plate record on file associated with the vehicle's
serial number and shall issue a certificate of title to the
applicant.
(Source: P.A. 100-450, eff. 1-1-18.)
(625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1)
Sec. 3-117.1. When junking certificates or salvage
certificates must be obtained.
(a) Except as provided in Chapter 4 and Sections 3-117.2
and Section 3-117.3 of this Code, a person who possesses a junk
vehicle shall within 15 days cause the certificate of title,
salvage certificate, certificate of purchase, or a similarly

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acceptable out-of-state document of ownership to be
surrendered to the Secretary of State along with an
application for a junking certificate, except as provided in
Section 3-117.2, whereupon the Secretary of State shall remove
the current owner registration and license plate record on
file associated with the vehicle's serial number and shall
issue to such a person a junking certificate, which shall
authorize the holder thereof to possess, transport, or, by an
endorsement, transfer ownership in such junked vehicle, and a
certificate of title shall not again be issued for such
vehicle. The owner of a junk vehicle is not required to
surrender the certificate of title under this subsection if
(i) there is no lienholder on the certificate of title or (ii)
the owner of the junk vehicle has a valid lien release from the
lienholder releasing all interest in the vehicle and the owner
applying for the junk certificate matches the current record
on the certificate of title file for the vehicle.
A licensee who possesses a junk vehicle and a Certificate
of Title, Salvage Certificate, Certificate of Purchase, or a
similarly acceptable out-of-state document of ownership for
such junk vehicle, may transport the junk vehicle to another
licensee prior to applying for or obtaining a junking
certificate, by executing a uniform invoice. The licensee
transferor shall furnish a copy of the uniform invoice to the
licensee transferee at the time of transfer. In any case, the
licensee transferor shall apply for a junking certificate in

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conformance with Section 3-117.1 of this Chapter. The
following information shall be contained on a uniform invoice:
(1) The business name, address and dealer license
number of the person disposing of the vehicle, junk
vehicle or vehicle cowl;
(2) The name and address of the person acquiring the
vehicle, junk vehicle or vehicle cowl, and if that person
is a dealer, the Illinois or out-of-state dealer license
number of that dealer;
(3) The date of the disposition of the vehicle, junk
vehicle or vehicle cowl;
(4) The year, make, model, color and description of
each vehicle, junk vehicle or vehicle cowl disposed of by
such person;
(5) The manufacturer's vehicle identification number,
Secretary of State identification number or Illinois
Department of State Police number, for each vehicle, junk
vehicle or vehicle cowl part disposed of by such person;
(6) The printed name and legible signature of the
person or agent disposing of the vehicle, junk vehicle or
vehicle cowl; and
(7) The printed name and legible signature of the
person accepting delivery of the vehicle, junk vehicle or
vehicle cowl.
The Secretary of State may certify a junking manifest in a
form prescribed by the Secretary of State that reflects those

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vehicles for which junking certificates have been applied or
issued. A junking manifest may be issued to any person and it
shall constitute evidence of ownership for the vehicle listed
upon it. A junking manifest may be transferred only to a person
licensed under Section 5-301 of this Code as a scrap
processor. A junking manifest will allow the transportation of
those vehicles to a scrap processor prior to receiving the
junk certificate or a junk vehicle electronic record from the
Secretary of State.
(b) An application for a salvage certificate shall be
submitted to the Secretary of State in any of the following
situations:
(1) When an insurance company makes a payment of
damages on a total loss claim for a vehicle, the insurance
company shall be deemed to be the owner of such vehicle and
the vehicle shall be considered to be salvage except that
ownership of (i) a vehicle that has incurred only hail
damage that does not affect the operational safety of the
vehicle or (ii) any vehicle 9 model years of age or older
may, by agreement between the registered owner and the
insurance company, be retained by the registered owner of
such vehicle. The insurance company shall promptly deliver
or mail within 20 days the certificate of title along with
proper application and fee to the Secretary of State, and
a salvage certificate shall be issued in the name of the
insurance company. Notwithstanding the foregoing, an

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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.
(1.1) When a vehicle of a self-insured company is to
be sold in the State of Illinois 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 70% of its fair
market value without that damage, the vehicle shall be
considered salvage. The self-insured company shall
promptly deliver the certificate of title along with
proper application and fee to the Secretary of State, and
a salvage certificate shall be issued in the name of the
self-insured company. A self-insured company making
payment of damages on a total loss claim for the theft of a
vehicle may exchange the salvage certificate for a
certificate of title if the vehicle is recovered without
damage. In such a situation, the self-insured shall fill
out and sign a form prescribed by the Secretary of State
which contains an affirmation under penalty of perjury
that the vehicle was recovered without damage and the
Secretary of State may, by rule, require photographs to be
submitted.

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(2) When a vehicle the ownership of which has been
transferred to any person through a certificate of
purchase from acquisition of the vehicle at an auction,
other dispositions as set forth in Sections 4-208 and
4-209 of this Code, or a lien arising under Section
18a-501 of this Code shall be deemed salvage or junk at the
option of the purchaser. The person acquiring such vehicle
in such manner shall promptly deliver or mail, within 20
days after the acquisition of the vehicle, the certificate
of purchase, the proper application and fee, and, if the
vehicle is an abandoned mobile home under the Abandoned
Mobile Home Act, a certification from a local law
enforcement agency that the vehicle was purchased or
acquired at a public sale under the Abandoned Mobile Home
Act to the Secretary of State and a salvage certificate or
junking certificate shall be issued in the name of that
person. The salvage certificate or junking certificate
issued by the Secretary of State under this Section shall
be free of any lien that existed against the vehicle prior
to the time the vehicle was acquired by the applicant
under this Code.
(3) A vehicle which has been repossessed by a
lienholder shall be considered to be salvage only when the
repossessed vehicle, on the date of repossession by the
lienholder, has sustained damage by collision, fire,
theft, rust corrosion, or other means so that the cost of

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repairing such damage, including labor, would be greater
than 33 1/3% of its fair market value without such damage.
If the lienholder determines that such vehicle is damaged
in excess of 33 1/3% of such fair market value, the
lienholder shall, before sale, transfer or assignment of
the vehicle, make application for a salvage certificate,
and shall submit with such application the proper fee and
evidence of possession. If the facts required to be shown
in subsection (f) of Section 3-114 are satisfied, the
Secretary of State shall issue a salvage certificate in
the name of the lienholder making the application. In any
case wherein the vehicle repossessed is not damaged in
excess of 33 1/3% of its fair market value, the lienholder
shall comply with the requirements of subsections (f),
(f-5), and (f-10) of Section 3-114, except that the
affidavit of repossession made by or on behalf of the
lienholder shall also contain an affirmation under penalty
of perjury that the vehicle on the date of sale is not
damaged in excess of 33 1/3% of its fair market value. If
the facts required to be shown in subsection (f) of
Section 3-114 are satisfied, the Secretary of State shall
issue a certificate of title as set forth in Section 3-116
of this Code. The Secretary of State may by rule or
regulation require photographs to be submitted.
(4) A vehicle which is a part of a fleet of more than 5
commercial vehicles registered in this State or any other

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state or registered proportionately among several states
shall be considered to be salvage when such vehicle has
sustained damage by collision, fire, theft, rust,
corrosion or similar means so that the cost of repairing
such damage, including labor, would be greater than 33
1/3% of the fair market value of the vehicle without such
damage. If the owner of a fleet vehicle desires to sell,
transfer, or assign his interest in such vehicle to a
person within this State other than an insurance company
licensed to do business within this State, and the owner
determines that such vehicle, at the time of the proposed
sale, transfer or assignment is damaged in excess of 33
1/3% of its fair market value, the owner shall, before
such sale, transfer or assignment, make application for a
salvage certificate. The application shall contain with it
evidence of possession of the vehicle. If the fleet
vehicle at the time of its sale, transfer, or assignment
is not damaged in excess of 33 1/3% of its fair market
value, the owner shall so state in a written affirmation
on a form prescribed by the Secretary of State by rule or
regulation. The Secretary of State may by rule or
regulation require photographs to be submitted. Upon sale,
transfer or assignment of the fleet vehicle the owner
shall mail the affirmation to the Secretary of State.
(5) A vehicle that has been submerged in water to the
point that rising water has reached over the door sill and

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has entered the passenger or trunk compartment is a "flood
vehicle". A flood vehicle shall be considered to be
salvage only if the vehicle has sustained damage so that
the cost of repairing the damage, including labor, would
be greater than 33 1/3% of the fair market value of the
vehicle without that damage. The salvage certificate
issued under this Section shall indicate the word "flood",
and the word "flood" shall be conspicuously entered on
subsequent titles for the vehicle. A person who possesses
or acquires a flood vehicle that is not damaged in excess
of 33 1/3% of its fair market value shall make application
for title in accordance with Section 3-116 of this Code,
designating the vehicle as "flood" in a manner prescribed
by the Secretary of State. The certificate of title issued
shall indicate the word "flood", and the word "flood"
shall be conspicuously entered on subsequent titles for
the vehicle.
(6) When any licensed rebuilder, repairer, new or used
vehicle dealer, or remittance agent has submitted an
application for title to a vehicle (other than an
application for title to a rebuilt vehicle) that he or she
knows or reasonably should have known to have sustained
damages in excess of 33 1/3% of the vehicle's fair market
value without that damage; provided, however, that any
application for a salvage certificate for a vehicle
recovered from theft and acquired from an insurance

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company shall be made as required by paragraph (1) of this
subsection (b).
(c) Any person who without authority acquires, sells,
exchanges, gives away, transfers or destroys or offers to
acquire, sell, exchange, give away, transfer or destroy the
certificate of title to any vehicle which is a junk or salvage
vehicle shall be guilty of a Class 3 felony.
(d) Except as provided under subsection (a), any person
who knowingly fails to surrender to the Secretary of State a
certificate of title, salvage certificate, certificate of
purchase or a similarly acceptable out-of-state document of
ownership as required under the provisions of this Section is
guilty of a Class A misdemeanor for a first offense and a Class
4 felony for a subsequent offense; except that a person
licensed under this Code who violates paragraph (5) of
subsection (b) of this Section is guilty of a business offense
and shall be fined not less than $1,000 nor more than $5,000
for a first offense and is guilty of a Class 4 felony for a
second or subsequent violation.
(e) Any vehicle which is salvage or junk may not be driven
or operated on roads and highways within this State. A
violation of this subsection is a Class A misdemeanor. A
salvage vehicle displaying valid special plates issued under
Section 3-601(b) of this Code, which is being driven to or from
an inspection conducted under Section 3-308 of this Code, is
exempt from the provisions of this subsection. A salvage

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vehicle for which a short term permit has been issued under
Section 3-307 of this Code is exempt from the provisions of
this subsection for the duration of the permit.
(Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19;
100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)
(625 ILCS 5/3-117.2) (from Ch. 95 1/2, par. 3-117.2)
Sec. 3-117.2. Junk Vehicle Notification. Beginning July 1,
1989 a person licensed as an automotive parts recycler or a
scrap processor pursuant to Section 5-301 of this Code who
acquires a properly assigned Certificate of Title, a Salvage
Certificate, a Certificate of Purchase, or a similarly
acceptable out-of-state document of ownership pursuant to
Section 5-401.3 of this Code, shall within 15 days of
acquiring such document, submit it by mail or electronic
format acceptable to the Secretary of State along with a Junk
Vehicle Notification, the form and manner for which shall be
as prescribed by Secretary of State rule or regulation. An
automotive parts recycler or a A scrap processor who acquires
the above named documents of ownership pursuant to Section
5-401.3 shall not be required to apply for or obtain a junking
certificate. The information contained on a Junk Vehicle
Notification shall be duly recorded by the Secretary of State
upon the receipt of such Notification by mail or electronic
format acceptable to the Secretary of State. The Secretary of
State shall not again issue a Certificate of Title or Salvage

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Certificate for any vehicle listed on a Junk Vehicle
Notification.
(Source: P.A. 85-1204.)
(625 ILCS 5/3-801) (from Ch. 95 1/2, par. 3-801)
Sec. 3-801. Registration.
(a) Except as provided herein for new residents, every
owner of any vehicle which shall be operated upon the public
highways of this State shall, within 24 hours after becoming
the owner or at such time as such vehicle becomes subject to
registration under the provisions of this Act, file in an
office of the Secretary of State, an application for
registration properly completed and executed. New residents
need not secure registration until 30 days after establishing
residency in this State, provided the vehicle is properly
registered in another jurisdiction. By the expiration of such
30-day statutory grace period, a new resident shall comply
with the provisions of this Act and apply for Illinois vehicle
registration. All applications for registration shall be
accompanied by all documentation required under the provisions
of this Act. The appropriate registration fees and taxes
provided for in this Article of this Chapter shall be paid to
the Secretary of State with the application for registration
of vehicles subject to registration under this Act.
(b) Any resident of this State, who has been serving as a
member or as a civilian employee of the United States Armed

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Services, or as a civilian employee of the United States
Department of Defense, outside of the State of Illinois, need
not secure registration until 45 days after returning to this
State, provided the vehicle displays temporary military
registration.
(c) When an application is submitted by mail, the
applicant may not submit cash or postage stamps for payment of
fees or taxes due. The Secretary in his discretion, may
decline to accept a personal or company check or electronic
payment in payment of fees or taxes. An application submitted
to a dealer, or a remittance made to the Secretary of State
shall be deemed in compliance with this Section.
(d) The Secretary of State shall remove the current owner
registration and license plate record on file associated with
the vehicle's serial number before issuing a new certificate
of title, a junk certificate, or a salvage certificate for any
title.
(Source: P.A. 99-118, eff. 1-1-16; 99-324, eff. 1-1-16;
99-642, eff. 7-28-16.)
(625 ILCS 5/5-401.2) (from Ch. 95 1/2, par. 5-401.2)
Sec. 5-401.2. Licensees required to keep records and make
inspections.
(a) Every person licensed or required to be licensed under
Section 5-101, 5-101.1, 5-101.2, 5-102, 5-102.8, 5-301, or
5-302 of this Code, shall, with the exception of scrap

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processors, maintain for 3 years, in a form as the Secretary of
State may by rule or regulation prescribe, at his established
place of business, additional place of business, or principal
place of business if licensed under Section 5-302, the
following records relating to the acquisition or disposition
of vehicles and their essential parts possessed in this State,
brought into this State from another state, territory or
country, or sold or transferred to another person in this
State or in another state, territory, or country.
(1) The following records pertaining to new or used
vehicles shall be kept:
(A) the year, make, and model, style and color of
the vehicle;
(B) the vehicle's manufacturer's identification
number or, if applicable, the Secretary of State or
Illinois Department of State Police identification
number;
(C) the date of acquisition of the vehicle;
(D) the name and address of the person from whom
the vehicle was acquired and, if that person is a
dealer, the Illinois or out-of-state dealer license
number of such person;
(E) (blank); the signature of the person making
the inspection of a used vehicle as required under
subsection (d) of this Section, if applicable;
(F) (blank); the purchase price of the vehicle, if

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applicable;
(G) the date of the disposition of the vehicle;
(H) the name and address of the person to whom any
vehicle was disposed, and if that person is a dealer,
the Illinois or out-of-State dealer's license number
of that dealer;
(I) the uniform invoice number reflecting the
disposition of the vehicle, if applicable; and
(J) (blank). The sale price of the vehicle, if
applicable.
(2) (A) The following records pertaining to used
essential parts other than quarter panels and
transmissions of vehicles of the first division shall be
kept:
(i) the year, make, and model, color and type of
such part;
(ii) the vehicle's manufacturer's identification
number, derivative number, or, if applicable, the
Secretary of State or Illinois Department of State
Police identification number of such part;
(iii) (blank); the date of the acquisition of each
part;
(iv) (blank); the name and address of the person
from whom the part was acquired and, if that person is
a dealer, the Illinois or out-of-state dealer license
number of such person; if the essential part being

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acquired is from a person other than a dealer, the
licensee shall verify and record that person's
identity by recording the identification numbers from
at least two sources of identification, one of which
shall be a drivers license or State identification
card;
(v) the uniform invoice number or out-of-state
bill of sale number reflecting the acquisition of such
part;
(vi) the stock number assigned to the essential
part by the licensee, if applicable;
(vii) (blank); the date of the disposition of such
part;
(viii) the name and address of the person to whom
such part was disposed of and, if that person is a
dealer, the Illinois or out-of-state dealer license
number of that person;
(ix) the uniform invoice number reflecting the
disposition of such part.
(B) Inspections of all essential parts shall be
conducted in accordance with Section 5-402.1.
(C) A separate entry containing all of the information
required to be recorded in subparagraph (A) of paragraph
(2) of subsection (a) of this Section shall be made for
each separate essential part. Separate entries shall be
made regardless of whether the part was a large purchase

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acquisition. In addition, a separate entry shall be made
for each part acquired for immediate sale or transfer, or
for placement into the overall inventory or stock to be
disposed of at a later time, or for use on a vehicle to be
materially altered by the licensee, or acquired for any
other purpose or reason. Failure to make a separate entry
for each essential part acquired or disposed of, or a
failure to record any of the specific information required
to be recorded concerning the acquisition or disposition
of each essential part as set forth in subparagraph (A) of
paragraph (2) of subsection (a) shall constitute a failure
to keep records.
(D) The vehicle's manufacturer's identification number
or Secretary of State or Illinois Department of State
Police identification number for the essential part shall
be ascertained and recorded even if such part is acquired
from a person or dealer located in a State, territory, or
country which does not require that such information be
recorded. If the vehicle's manufacturer's identification
number or Secretary of State or Illinois Department of
State Police identification number for an essential part
cannot be obtained, that part shall not be acquired by the
licensee or any of his agents or employees shall promptly
notify law enforcement authorities of the finding. If such
part or parts were physically acquired by the licensee or
any of his agents or employees while the licensee or agent

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or employee was outside this State, that licensee or agent
or employee was outside the State, that licensee, agent or
employee shall not bring such essential part into this
State or cause it to be brought into this State. The
acquisition or disposition of an essential part by a
licensee without the recording of the vehicle
identification number or Secretary of State identification
number for such part or the transportation into the State
by the licensee or his agent or employee of such part or
parts shall constitute a failure to keep records.
(E) The records of essential parts required to be kept
by this Section shall apply to all hulks, chassis, frames
or cowls, regardless of the age of those essential parts.
The records required to be kept by this Section for
essential parts other than hulks, chassis, frames or
cowls, shall apply only to those essential parts which are
3 6 model years of age or newer. In determining the model
year of such an essential part it may be presumed that the
identification number of the vehicle from which the
essential part came or the identification number affixed
to the essential part itself acquired by the licensee
denotes the model year of that essential part. This
presumption, however, shall not apply if the gross
appearance of the essential part does not correspond to
the year, make or model of either the identification
number of the vehicle from which the essential part is

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alleged to have come or the identification number which is
affixed to the essential part itself. To determine whether
an essential part is 3 6 years of age or newer within this
paragraph, the model year of the essential part shall be
subtracted from the calendar year in which the essential
part is acquired or disposed of by the licensee. If the
remainder is 3 6 or less, the record of the acquisition or
disposition of that essential part shall be kept as
required by this Section.
(F) The requirements of paragraph (2) of subsection
(a) of this Section shall not apply to the disposition of
an essential part other than a cowl which has been damaged
or altered to a state in which it can no longer be returned
to a usable condition and which is being sold or
transferred to a scrap processor or for delivery to a
scrap processor.
(3) the following records for vehicles on which junking
certificates are obtained shall be kept:
(A) the year, make, and model, style and color of the
vehicle;
(B) the vehicle's manufacturer's identification number
or, if applicable, the Secretary of State or Illinois
Department of State Police identification number;
(C) the date the vehicle was acquired;
(D) the name and address of the person from whom the
vehicle was acquired and, if that person is a dealer, the

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Illinois or out-of-state dealer license number of that
person;
(E) the certificate of title number, junking
certificate number, electronic junk vehicle record, or
salvage certificate number for the vehicle, if applicable;
(F) (blank); the junking certificate number obtained
by the licensee; this entry shall be recorded at the close
of business of the fifth business day after receiving the
junking certificate;
(G) (blank); the name and address of the person to
whom the junking certificate has been assigned, if
applicable, and if that person is a dealer, the Illinois
or out-of-state dealer license number of that dealer;
(H) (blank). if the vehicle or any part of the vehicle
is dismantled for its parts to be disposed of in any way,
or if such parts are to be used by the licensee to
materially alter a vehicle, those essential parts shall be
recorded and the entries required by paragraph (2) of
subsection (a) shall be made.
(4) The following records for rebuilt vehicles shall be
kept:
(A) the year, make, and model, style and color of the
vehicle;
(B) the vehicle's manufacturer's identification number
of the vehicle or, if applicable, the Secretary of State
or Illinois Department of State Police identification

HB2528 - 23 - LRB102 15764 RAM 21131 b
number;
(C) the date the vehicle was acquired;
(D) the name and address of the person from whom the
vehicle was acquired, and if that person is a dealer, the
Illinois or out-of-state dealer license number of that
person;
(E) the salvage certificate number for the vehicle;
(F) the newly issued certificate of title number for
the vehicle;
(G) the date of disposition of the vehicle;
(H) the name and address of the person to whom the
vehicle was disposed, and if a dealer and , the Illinois or
out-of-state dealer license number of that dealer;
(I) (blank). The sale price of the vehicle.
(a-1) A person licensed or required to be licensed under
Section 5-101 or Section 5-102 of this Code who issues
temporary registration permits as permitted by this Code and
by rule must electronically file the registration with the
Secretary and must maintain records of the registration in the
manner prescribed by the Secretary.
(b) A failure to make separate entries for each vehicle
acquired, disposed of, or assigned, or a failure to record any
of the specific information required to be recorded concerning
the acquisition or disposition of each vehicle as set forth in
paragraphs (1), (3) and (4) of subsection (a) shall constitute
a failure to keep records.

HB2528 - 24 - LRB102 15764 RAM 21131 b
(c) All entries relating to the acquisition of a vehicle
or essential part required by subsection (a) of this Section
shall be recorded no later than the close of business on the
seventh calendar day following such acquisition. All entries
relating to the disposition of a vehicle or an essential part
shall be made at the time of such disposition. If the vehicle
or essential part was disposed of on the same day as its
acquisition or the day thereafter, the entries relating to the
acquisition of the vehicle or essential part shall be made at
the time of the disposition of the vehicle or essential part.
Failure to make the entries required in or at the times
prescribed by this subsection following the acquisition or
disposition of such vehicle or essential part shall constitute
a failure to keep records.
(d) Every person licensed or required to be licensed
shall, before accepting delivery of a used vehicle, inspect
the vehicle to determine whether the manufacturer's public
vehicle identification number has been defaced, destroyed,
falsified, removed, altered, or tampered with in any way. If
the person making the inspection determines that the
manufacturer's public vehicle identification number has been
altered, removed, defaced, destroyed, falsified or tampered
with, the person he shall not acquire that vehicle but instead
shall promptly notify law enforcement authorities of the his
finding.
(e) The information required to be kept in subsection (a)

HB2528 - 25 - LRB102 15764 RAM 21131 b
of this Section shall be kept in a manner prescribed by rule or
regulation of the Secretary of State.
(f) Every person licensed or required to be licensed shall
have in his or her possession a separate certificate of title,
salvage certificate, junking certificate, certificate of
purchase, uniform invoice, out-of-state bill of sale,
electronic junk vehicle record or other acceptable documentary
evidence of his or her right to the possession of every vehicle
or essential part.
(g) (Blank). Every person licensed or required to be
licensed as a transporter under Section 5-201 shall maintain
for 3 years, in such form as the Secretary of State may by rule
or regulation prescribe, at his principal place of business a
record of every vehicle transported by him, including numbers
of or other marks of identification thereof, the names and
addresses of persons from whom and to whom the vehicle was
delivered and the dates of delivery.
(h) No later than 15 days prior to going out of business,
selling the business, or transferring the ownership of the
business, the licensee shall notify the Secretary of State
that he is going out of business or that he is transferring the
ownership of the business. Failure to notify under this
paragraph shall constitute a failure to keep records.
(i) (Blank).
(j) A person who knowingly fails to comply with the
provisions of this Section or knowingly fails to obey,

HB2528 - 26 - LRB102 15764 RAM 21131 b
observe, or comply with any order of the Secretary or any law
enforcement agency issued in accordance with this Section is
guilty of a Class B misdemeanor for the first violation and a
Class A misdemeanor for the second and subsequent violations.
Each violation constitutes a separate and distinct offense and
a separate count may be brought in the same indictment or
information for each vehicle or each essential part of a
vehicle for which a record was not kept as required by this
Section.
(k) Any person convicted of failing to keep the records
required by this Section with intent to conceal the identity
or origin of a vehicle or its essential parts or with intent to
defraud the public in the transfer or sale of vehicles or their
essential parts is guilty of a Class 2 felony. Each violation
constitutes a separate and distinct offense and a separate
count may be brought in the same indictment or information for
each vehicle or essential part of a vehicle for which a record
was not kept as required by this Section.
(l) A person may not be criminally charged with or
convicted of both a knowing failure to comply with this
Section and a knowing failure to comply with any order, if both
offenses involve the same record keeping violation.
(m) The Secretary shall adopt rules necessary for
implementation of this Section, which may include the
imposition of administrative fines.
(Source: P.A. 101-505, eff. 1-1-20.)

HB2528 - 27 - LRB102 15764 RAM 21131 b
(625 ILCS 5/5-402) (from Ch. 95 1/2, par. 5-402)
Sec. 5-402. Use of Department of Revenue Uniform Invoice
for vehicle. Every person licensed as a new vehicle dealer, as
a used vehicle dealer, or as a motor vehicle financing
affiliate shall issue a Uniform Invoice with respect to each
transaction wherein he disposes of a vehicle, except that
where, in the same transaction, a vehicle dealer transfers
more than one vehicle to another vehicle dealer for the
purpose of resale, such seller for resale may issue one
Uniform Invoice to the purchaser covering all the vehicles
involved in that transaction and may report the transfer of
all the vehicles involved in that transaction to the
Department on the same Uniform Invoice-transaction reporting
return form. Every person licensed as a rebuilder shall
likewise issue a Uniform Invoice with respect to each
transaction wherein he disposes of a rebuilt or restored
vehicle. Such Uniform Invoice shall be the same document as
the transaction reporting return referred to in Section 3 of
the Retailers' Occupation Tax Act. Such Uniform Invoice shall
contain complete financial details of the transaction in such
form as shall be prescribed by the Department of Revenue. Such
Uniform Invoice shall include an affidavit by both the seller
and the buyer that any trade-in title has been properly
assigned from the buyer to the seller and that all information
on the Uniform Invoice-transaction reporting return is true

HB2528 - 28 - LRB102 15764 RAM 21131 b
and accurate.
(Source: P.A. 91-415, eff. 1-1-00.)
(625 ILCS 5/5-402.1) (from Ch. 95 1/2, par. 5-402.1)
Sec. 5-402.1. Use of Secretary of State Uniform Invoice
for Essential Parts.
(a) Except for scrap processors, every person licensed or
required to be licensed under Section 5-101, 5-101.1, 5-102,
5-102.8, or 5-301 of this Code shall issue, in a form the
Secretary of State may by rule or regulation prescribe, a
Uniform Invoice, which may also act as a bill of sale, made out
in triplicate with respect to each transaction in which he
disposes of an essential part other than quarter panels and
transmissions of vehicles of the first division. Such Invoice
shall be made out at the time of the disposition of the
essential part. If the licensee disposes of several essential
parts in the same transaction, the licensee may issue one
Uniform Invoice covering all essential parts disposed of in
that transaction.
(b) The following information shall be contained on the
Uniform Invoice:
(1) the business name, address and dealer license
number of the person disposing of the essential part;
(2) the name and address of the person acquiring the
essential part, and if that person is a dealer, the
Illinois or out-of-state dealer license number of that

HB2528 - 29 - LRB102 15764 RAM 21131 b
dealer;
(3) the date of the disposition of the essential part;
(4) the year, make, model, color and description of
each essential part disposed of by the person;
(5) the manufacturer's vehicle identification number,
Secretary of State identification number or Illinois
Department of State Police identification number, for each
essential part disposed of by the person;
(6) (blank); and the printed name and legible
signature of the person or agent disposing of the
essential part; and
(7) (blank). if the person is a dealer the printed
name and legible signature of the dealer or his agent or
employee accepting delivery of the essential part.
(c) Except for scrap processors, and except as set forth
in subsection (d) of this Section, whenever a person licensed
or required to be licensed by Section 5-101, 5-101.1, 5-102,
or 5-301 accepts delivery of an essential part, other than
quarter panels and transmissions of vehicles of the first
division, that person shall, at the time of the acceptance or
delivery, comply with the following procedures:
(1) Before acquiring or accepting delivery of any
essential part, the licensee or an his authorized agent or
employee shall inspect the part to determine whether the
vehicle identification number, Secretary of State
identification number, Illinois Department of State Police

HB2528 - 30 - LRB102 15764 RAM 21131 b
identification number, or identification plate or sticker
attached to or stamped on any part being acquired or
delivered has been removed, falsified, altered, defaced,
destroyed, or tampered with. If the licensee or his agent
or employee determines that the vehicle identification
number, Secretary of State identification number, Illinois
Department of State Police identification number,
identification plate or identification sticker containing
an identification number, or Federal Certificate label of
an essential part has been removed, falsified, altered,
defaced, destroyed or tampered with, the licensee or agent
shall promptly notify law enforcement authorities of the
finding not accept or receive that part.
If that part was physically acquired by or delivered
to a licensee or his agent or employee while that
licensee, agent or employee was outside this State, that
licensee or agent or employee shall not bring that
essential part into this State or cause it to be brought
into this State.
(2) If the person disposing of or delivering the
essential part to the licensee is a licensed in-state or
out-of-state dealer, the licensee or an his agent or
employee, after inspecting the essential part as required
by paragraph (1) of this subsection (c), shall examine the
Uniform Invoice, or bill of sale, as the case may be, to
ensure that it contains all the information required to be

HB2528 - 31 - LRB102 15764 RAM 21131 b
provided by persons disposing of essential parts as set
forth in subsection (b) of this Section. If the Uniform
Invoice or bill of sale does not contain all the
information required to be listed by subsection (b) of
this Section, the dealer disposing of or delivering such
part or an his agent or employee shall record such
additional information or other needed modifications on
the Uniform Invoice or bill of sale or, if needed, an
attachment thereto. The dealer or an his agent or employee
delivering the essential part shall initial all additions
or modifications to the Uniform Invoice or bill of sale
and legibly print his name at the bottom of each document
containing his initials. If the transaction involves a
bill of sale rather than a Uniform Invoice, the licensee
or his agent or employee accepting delivery of or
acquiring the essential part shall affix the his printed
name and legible signature of the licensee or agent or
employee on the space on the bill of sale provided for a
his signature or, if no space is provided, on the back of
the bill of sale. If the dealer or his agent or employee
disposing of or delivering the essential part cannot or
does not provide all the information required by
subsection (b) of this Section, the licensee or his agent
or employee shall promptly notify law enforcement
authorities of the finding. not accept or receive any
essential part for which that required information is not

HB2528 - 32 - LRB102 15764 RAM 21131 b
provided. If such essential part for which the information
required is not fully provided was physically acquired
while the licensee or his agent or employee was outside
this State, the licensee or his agent or employee shall
not bring that essential part into this State or cause it
to be brought into this State.
(3) If the person disposing of the essential part is
not a licensed dealer, the licensee or an his agent or
employee shall, after inspecting the essential part as
required by paragraph (1) of subsection (c) of this
Section verify the identity of the person disposing of the
essential part by examining 2 sources of identification,
one of which shall be either a driver's license or state
identification card. The licensee or his agent or employee
shall then prepare a Uniform Invoice listing all the
information required to be provided by subsection (b) of
this Section. In the space on the Uniform Invoice provided
for the dealer license number of the person disposing of
the part, the licensee or his agent or employee shall list
the numbers taken from the documents of identification
provided by the person disposing of the part. The person
disposing of the part shall affix the his printed name and
legible signature of the person disposing of the part on
the space on the Uniform Invoice provided for the person
disposing of the essential part and the licensee or his
agent or employee acquiring the part shall affix the his

HB2528 - 33 - LRB102 15764 RAM 21131 b
printed name and legible signature of the person acquiring
the part on the space provided on the Uniform Invoice for
the person acquiring the essential part. If the person
disposing of the essential part cannot or does not provide
all the information required to be provided by this
paragraph, or does not present 2 satisfactory forms of
identification, the licensee or his agent or employee
shall not acquire that essential part and shall promptly
notify law enforcement authorities of the finding.
(d) If an essential part other than quarter panels and
transmissions of vehicles of the first division was delivered
by a licensed commercial delivery service delivering such part
on behalf of a licensed dealer, the person required to comply
with subsection (c) of this Section may conduct the inspection
of that part required by paragraph (1) of subsection (c) and
examination of the Uniform Invoice or bill of sale required by
paragraph (2) of subsection (c) of this Section immediately
after the acceptance of the part.
(1) If the inspection of the essential part pursuant
to paragraph (1) of subsection (c) reveals that the
vehicle identification number, Secretary of State
identification number, Illinois Department of State Police
identification number, identification plate or sticker
containing an identification number, or Federal
Certificate label of an essential part has been removed,
falsified, altered, defaced, destroyed or tampered with,

HB2528 - 34 - LRB102 15764 RAM 21131 b
the licensee or an his agent shall immediately record such
fact on the Uniform Invoice or bill of sale, assign the
part an inventory or stock number, place such inventory or
stock number on both the essential part and the Uniform
Invoice or bill of sale, and record the date of the
inspection of the part on the Uniform Invoice or bill of
sale. The licensee shall, within 7 days of such
inspection, return such part to the dealer from whom it
was acquired and shall promptly notify law enforcement
authorities of the finding.
(2) If the examination of the Uniform Invoice or bill
of sale pursuant to paragraph (2) of subsection (c)
reveals that any of the information required to be listed
by subsection (b) of this Section is missing, the licensee
or person required to be licensed shall immediately assign
a stock or inventory number to such part, place such stock
or inventory number on both the essential part and the
Uniform Invoice or bill of sale, and record the date of
examination on the Uniform Invoice or bill of sale. The
licensee or person required to be licensed shall acquire
the information missing from the Uniform Invoice or bill
of sale within 7 days of the examination of such Uniform
Invoice or bill of sale. Such information may be received
by telephone conversation with the dealer from whom the
part was acquired. If the dealer provides the missing
information the licensee shall record such information on

HB2528 - 35 - LRB102 15764 RAM 21131 b
the Uniform Invoice or bill of sale along with the name of
the person providing the information. If the dealer does
not provide the required information within the
aforementioned 7 day period, the licensee shall return the
part to that dealer and shall promptly notify law
enforcement authorities of the finding.
(e) Except for scrap processors, all persons licensed or
required to be licensed who acquire or dispose of essential
parts other than quarter panels and transmissions of vehicles
of the first division shall retain a copy of the Uniform
Invoice required to be made by subsections (a), (b) and (c) of
this Section for a period of 3 years.
(f) Except for scrap processors, any person licensed or
required to be licensed under Sections 5-101, 5-102 or 5-301
who knowingly fails to record on a Uniform Invoice any of the
information or entries required to be recorded by subsections
(a), (b) and (c) of this Section, or who knowingly places false
entries or other misleading information on such Uniform
Invoice, or who knowingly fails to retain for 3 years a copy of
a Uniform Invoice reflecting transactions required to be
recorded by subsections (a), (b) and (c) of this Section, or
who knowingly acquires or disposes of essential parts without
receiving, issuing, or executing a Uniform Invoice reflecting
that transaction as required by subsections (a), (b) and (c)
of this Section, or who brings or causes to be brought into
this State essential parts for which the information required

HB2528 - 36 - LRB102 15764 RAM 21131 b
to be recorded on a Uniform Invoice is not recorded as
prohibited by subsection (c) of this Section, or who knowingly
fails to comply with the provisions of this Section in any
other manner shall be guilty of a Class 2 felony. Each
violation shall constitute a separate and distinct offense and
a separate count may be brought in the same indictment or
information for each essential part for which a record was not
kept as required by this Section or for which the person failed
to comply with other provisions of this Section.
(g) The records required to be kept by this Section may be
examined by officers of the Secretary of State's Department of
Police a person or persons making a lawful inspection of the
licensee's premises pursuant to Section 5-403.
(h) The records required to be kept by this Section shall
be retained by the licensee at the his principal place of
business of the licensee for a period of 3 7 years.
(i) The requirements of this Section shall not apply to
the disposition of an essential part other than a cowl which
has been damaged or altered to a state in which it can no
longer be returned to a usable condition and which is being
sold or transferred to a scrap processor or for delivery to a
scrap processor.
(Source: P.A. 101-505, eff. 1-1-20.)