Bill Text: IL SB3312 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-03-08 - Rule 3-9(a) / Re-referred to Assignments [SB3312 Detail]

Download: Illinois-2009-SB3312-Introduced.html

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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.
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A BILL FOR
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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
Section 3-117.1 as follows:
(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 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 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 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.
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

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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
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

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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
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 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

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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
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 50% 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

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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.
(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, a lien arising under Section 18a-501 of this
Code, or a public sale under the Abandoned Mobile Home Act
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

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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
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

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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
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

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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
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.
(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.

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(d) 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
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. 95-495, eff. 1-1-08; 95-783, eff. 1-1-09.)