Bill Text: IL HB3747 | 2023-2024 | 103rd General Assembly | Chaptered

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Bill Title: Amends the Illinois Vehicle Code. Removes language providing that an application for a certificate of title must contain the Illinois residence of the owner. In a provision regarding junking or salvage certificates, insurance companies, and salvage dealers: defines "proof of full payment" as either a photocopy of a deposited insurance claim check or, for an electronic claims payment, a screen shot from the insurer's proprietary claim system that shows the payee, the amount paid, and the date of payment; and provides that no other additional requirements shall be required of the insurer. Provides that an insurer must issue a release statement that authorizes the used motor vehicle dealer or automotive dismantler to release the vehicle to the vehicle's owner or lienholder if the insurer does not take ownership of a vehicle. Requires that upon receiving a release statement from an insurer, the used motor vehicle dealer shall send notice to the owner and any lienholder of the vehicle informing the owner or lienholder that the vehicle is available for pick up. Provides that the notice shall include an invoice for any outstanding charges owed to the used motor vehicle dealer. Provides that if the owner or any lienholder of the vehicle does not pick up the vehicle within 30 days after notice was sent to the owner and any lienholder, the vehicle shall be considered abandoned.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2023-06-30 - Public Act . . . . . . . . . 103-0202 [HB3747 Detail]

Download: Illinois-2023-HB3747-Chaptered.html

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Public Act 103-0202
HB3747 Enrolled LRB103 30059 MXP 56482 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 3-104, 3-117.3, and 3-116.1 and by adding
Section 4-208.1 as follows:
(625 ILCS 5/3-104) (from Ch. 95 1/2, par. 3-104)
Sec. 3-104. Application for certificate of title.
(a) The application for a certificate of title for a
vehicle in this State must be made by the owner to the
Secretary of State on the form prescribed and must contain:
1. The name, Illinois residence or Illinois place of
business, mail address, and, if available, email address
of the owner. For the purposes of this subsection
"Illinois place of business" means an Illinois location
leased or owned by a business, or in the case of an
insurance carrier, their contracted salvage disposal
vendor;
2. A description of the vehicle including, so far as
the following data exists: Its make, year-model,
identifying number, type of body, whether new or used, as
to house trailers as defined in Section 1-128 of this
Code, and as to manufactured homes as defined in Section

1-144.03 of this Code, the square footage based upon the
outside dimensions excluding the length of the tongue and
hitch, and, as to vehicles of the second division, whether
for-hire, not-for-hire, or both for-hire and not-for-hire;
3. The date of purchase by applicant and, if
applicable, the name and address of the person from whom
the vehicle was acquired and the names and addresses of
any lienholders in the order of their priority and
signatures of owners;
4. The current odometer reading at the time of
transfer and that the stated odometer reading is one of
the following: actual mileage, not the actual mileage or
mileage is in excess of its mechanical limits; and
5. Any further information the Secretary of State
reasonably requires to identify the vehicle and to enable
him to determine whether the owner is entitled to a
certificate of title and the existence or nonexistence of
security interests in the vehicle.
(a-5) The Secretary of State shall designate on the
prescribed application form a space where the owner of a
vehicle may designate a beneficiary, to whom ownership of the
vehicle shall pass in the event of the owner's death.
(b) If the application refers to a vehicle purchased from
a dealer, it must also be signed by the dealer as well as the
owner, and the dealer must promptly mail or deliver the
application and required documents to the Secretary of State.

(c) If the application refers to a vehicle last previously
registered in another State or country, the application must
contain or be accompanied by:
1. Any certified document of ownership so recognized
and issued by the other State or country and acceptable to
the Secretary of State, and
2. Any other information and documents the Secretary
of State reasonably requires to establish the ownership of
the vehicle and the existence or nonexistence of security
interests in it.
(d) If the application refers to a new vehicle it must be
accompanied by the Manufacturer's Statement of Origin, or
other documents as required and acceptable by the Secretary of
State, with such assignments as may be necessary to show title
in the applicant.
(e) If an application refers to a vehicle rebuilt from a
vehicle previously salvaged, that application shall comply
with the provisions set forth in Sections 3-302 through 3-304
of this Code.
(f) An application for a certificate of title for any
vehicle, whether purchased in Illinois or outside Illinois,
and even if previously registered in another State, must be
accompanied by either an exemption determination from the
Department of Revenue showing that no tax imposed pursuant to
the Use Tax Act or the vehicle use tax imposed by Section
3-1001 of the Illinois Vehicle Code is owed by anyone with

respect to that vehicle, or a receipt from the Department of
Revenue showing that any tax so imposed has been paid. An
application for a certificate of title for any vehicle
purchased outside Illinois, even if previously registered in
another state, must be accompanied by either an exemption
determination from the Department of Revenue showing that no
tax imposed pursuant to the Municipal Use Tax Act or the County
Use Tax Act is owed by anyone with respect to that vehicle, or
a receipt from the Department of Revenue showing that any tax
so imposed has been paid. In the absence of such a receipt for
payment or determination of exemption from the Department, no
certificate of title shall be issued to the applicant.
If the proof of payment of the tax or of nonliability
therefor is, after the issuance of the certificate of title
and display certificate of title, found to be invalid, the
Secretary of State shall revoke the certificate and require
that the certificate of title and, when applicable, the
display certificate of title be returned to him.
(g) If the application refers to a vehicle not
manufactured in accordance with federal safety and emission
standards, the application must be accompanied by all
documents required by federal governmental agencies to meet
their standards before a vehicle is allowed to be issued title
and registration.
(h) If the application refers to a vehicle sold at public
sale by a sheriff, it must be accompanied by the required fee

and a bill of sale issued and signed by a sheriff. The bill of
sale must identify the new owner's name and address, the year
model, make and vehicle identification number of the vehicle,
court order document number authorizing such sale, if
applicable, and the name and address of any lienholders in
order of priority, if applicable.
(i) If the application refers to a vehicle for which a
court of law determined the ownership, it must be accompanied
with a certified copy of such court order and the required fee.
The court order must indicate the new owner's name and
address, the complete description of the vehicle, if known,
the name and address of the lienholder, if any, and must be
signed and dated by the judge issuing such order.
(j) If the application refers to a vehicle sold at public
auction pursuant to the Labor and Storage Lien (Small Amount)
Act, it must be accompanied by an affidavit or affirmation
furnished by the Secretary of State along with the documents
described in the affidavit or affirmation and the required
fee.
(k) The Secretary may provide an expedited process for the
issuance of vehicle titles. Expedited title applications must
be delivered to the Secretary of State's Vehicle Services
Department in Springfield by express mail service or hand
delivery. Applications must be complete, including necessary
forms, fees, and taxes. Applications received before noon on a
business day will be processed and shipped that same day.

Applications received after noon on a business day will be
processed and shipped the next business day. The Secretary
shall charge an additional fee of $30 for this service, and
that fee shall cover the cost of return shipping via an express
mail service. All fees collected by the Secretary of State for
expedited services shall be deposited into the Motor Vehicle
License Plate Fund. In the event the Vehicle Services
Department determines that the volume of expedited title
requests received on a given day exceeds the ability of the
Vehicle Services Department to process those requests in an
expedited manner, the Vehicle Services Department may decline
to provide expedited services, and the additional fee for the
expedited service shall be refunded to the applicant.
(l) If the application refers to a homemade trailer, (i)
it must be accompanied by the appropriate documentation
regarding the source of materials used in the construction of
the trailer, as required by the Secretary of State, (ii) the
trailer must be inspected by a Secretary of State employee
prior to the issuance of the title, and (iii) upon approval of
the Secretary of State, the trailer must have a vehicle
identification number, as provided by the Secretary of State,
stamped or riveted to the frame.
(m) The holder of a Manufacturer's Statement of Origin to
a manufactured home may deliver it to any person to facilitate
conveying or encumbering the manufactured home. Any person
receiving any such Manufacturer's Statement of Origin so

delivered holds it in trust for the person delivering it.
(n) Within 45 days after the completion of the first
retail sale of a manufactured home, the Manufacturer's
Statement of Origin to that manufactured home must be
surrendered to the Secretary of State either in conjunction
with an application for a certificate of title for that
manufactured home or in accordance with Section 3-116.1.
(o) Each application for certificate of title for a motor
vehicle shall be verified by the National Motor Vehicle Title
Information System (NMVTIS) for a vehicle history report prior
to the Secretary issuing a certificate of title.
(p) The Secretary, at the Secretary's discretion, may use
any commercially available title history service to assist in
determining the proper title designation of a motor vehicle
before the issuance of a certificate of title.
(Source: P.A. 102-154, eff. 1-1-22.)
(625 ILCS 5/3-117.3)
Sec. 3-117.3. Junking or salvage certificates; insurance
company; salvage dealer.
(a) For purposes of this Section, "salvage dealer" means a
licensed dealer who primarily sells salvage vehicles on behalf
of insurance companies and obtains a "salvage dealer"
designation through the used dealer application process under
Section 5-102 of this Code.
(b) Notwithstanding any other provision of law to the

contrary, an insurance company or salvage dealer may, after
completing a record search for any owner of a vehicle or a
lienholder of record, obtain free of any lien a junking
certificate or salvage certificate in the insurance company's
name by submitting an application for a junking certificate or
salvage certificate to the Secretary of State. The application
shall include, but is not limited to, proof of full payment, in
whole or in part, to the vehicle owner or, if applicable, any
lienholder of record and proof of notice to the vehicle owner
and any lienholder via certified mail or other proof of
service that a transfer of title shall occur no earlier than 30
days after the date the notice is sent. Upon approval of the
application, the Secretary shall issue to the insurance
company a junking certificate or salvage certificate free of
any lien in the insurance company's name. For the purposes of
this subsection, "proof of full payment" means either a
photocopy of a deposited insurance claim check or, for an
electronic claims payment, a screen shot from the insurer's
proprietary claim system that shows the payee, the amount
paid, and the date of payment. No other additional
requirements shall be required of the insurer.
An insurance company or salvage dealer shall not sell a
salvage vehicle with a title obtained under this subsection
(b) to anyone not authorized to buy salvage vehicles under
this Code.
This subsection (b) shall apply only to a motor vehicle

titled in this State that has been through an insurance claims
process and the owner of the vehicle or lienholder, if
applicable, has received compensation in exchange for
relinquishing the ownership rights of the vehicle to an
insurance company licensed under the Illinois Insurance Code
and the insurance company is unable to obtain an endorsed
certificate of title within 30 days of payment to the owner or
lienholder.
(c) Notwithstanding any other provision of law to the
contrary, a salvage dealer may, after completing a record
search for any owner of a vehicle or a lienholder of record,
obtain free of any lien a junking certificate or salvage
certificate in his or her name by submitting an application
for a junking certificate or a salvage certificate to the
Secretary of State which shall include, but is not limited to,
proof of notice via certified mail or other proof of service to
the vehicle owner or any lienholder that a transfer of title
shall occur no earlier than 30 days after the date the notice
is sent. The notice shall inform the vehicle owner or
lienholder that upon payment of any applicable charges, the
vehicle may be removed from the salvage dealer's facility.
Upon approval of the application, the Secretary shall issue to
the salvage dealer a junking certificate or salvage
certificate free of any lien in the salvage dealer's name.
A salvage dealer shall not sell a salvage vehicle with a
title obtained under this subsection (c) to anyone not

authorized to buy salvage vehicles under this Code.
This subsection (c) shall apply only to a motor vehicle
titled in this State and in possession of a salvage dealer by
request of an insurance company licensed under the Illinois
Insurance Code to take possession of the motor vehicle subject
to an insurance claim and the insurance company denies
coverage of the vehicle or does not take ownership of the
vehicle within 45 days of possession by the salvage dealer.
(d) A vehicle owner or lienholder may send notice of
dispute of the transfer of title under this Section within 30
days after the required notice is sent by the insurance
company or salvage dealer. If a dispute between a vehicle
owner or lienholder and an insurance company or salvage dealer
cannot be resolved within 45 days after the required notice to
the vehicle owner or lienholder is sent, the vehicle owner or
lienholder, within 90 days after sending notice of dispute,
shall petition a court of competent jurisdiction for an order
to determine ownership of the vehicle and shall notify the
Secretary of State of the filing of the petition. If a vehicle
owner or lienholder does not file a petition within the 90-day
period, the title to the vehicle shall be issued to the
insurance company or salvage dealer under this Section.
(e) 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.
(f) Any person who knowingly fails to surrender to the
Secretary of State a certificate of title, salvage
certificate, or certificate of purchase is guilty of a Class A
misdemeanor for a first offense and a Class 4 felony for a
second and subsequent offense.
(g) 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 (g) is a Class A misdemeanor. A
salvage vehicle displaying valid special plates issued under
subsection (b) of Section 3-601 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
(g). A salvage 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 (g) for the duration of the
permit.
(h) The Secretary of State may adopt any rules necessary
to implement this Section.
(Source: P.A. 100-104, eff. 11-9-17.)