101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1509

 

Introduced 2/15/2019, by Sen. Cristina Castro

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/3-206  from Ch. 95 1/2, par. 3-206
625 ILCS 5/4-208  from Ch. 95 1/2, par. 4-208
625 ILCS 5/4-216

    Amends the Illinois Vehicle Code. Provides that a public sale of an unclaimed vehicle may proceed if a certified notification has been sent to the registered owner, lienholder, or other legally entitled persons and no response has been received by the law enforcement agency or towing service. Provides that a commercial vehicle relocator or other private towing service seeking to impose storage fees for a vehicle in its possession or foreclose on a vehicle in its possession may only do so 14 days after notice consistent with the Section is provided to the lienholder. Provides that, upon being given notice, a lienholder shall either take possession of the vehicle or execute a written waiver of lien.


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A BILL FOR

 

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1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by changing
5Sections 3-206, 4-208, and 4-216 as follows:
 
6    (625 ILCS 5/3-206)  (from Ch. 95 1/2, par. 3-206)
7    Sec. 3-206. Duty of lienholder.
8    A lienholder named in a certificate of title shall, upon
9written request of the owner or of another lienholder named on
10the certificate, disclose any pertinent information as to his
11security agreement and the indebtedness secured by it. Upon
12notice given pursuant to Section 4-216, a lienholder shall
13either take possession of the vehicle or execute a written
14waiver of lien.
15(Source: P.A. 76-1586.)
 
16    (625 ILCS 5/4-208)  (from Ch. 95 1/2, par. 4-208)
17    Sec. 4-208. Disposal of unclaimed vehicles.
18    (a) In cities having a population of more than 500,000,
19whenever an abandoned, lost, stolen or unclaimed vehicle, or
20vehicle determined to be a hazardous dilapidated motor vehicle
21pursuant to Section 11-40-3.1 of the Illinois Municipal Code,
22remains unclaimed by the registered owner, lienholder or other

 

 

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1legally entitled person for a period of 18 days after notice
2has been given under Sections 4-205 and 4-206 of this Code, if
3during that 18 days the possessor of the vehicle has sent an
4additional notice by first class mail to the registered owner,
5lienholder, or other legally entitled person, the vehicle shall
6be disposed, pursuant to the provisions of the "Municipal
7purchasing act for cities of 500,000 or more population", to a
8person licensed as an automotive parts recycler, rebuilder or
9scrap processor under Chapter 5 of this Code. With respect to
10any vehicle that has been booted, impounded, or both in
11accordance with subsection (c) of Section 11-208.3, a city with
12a population over 500,000 may establish a program whereby the
13registered owner, lienholder, or other legally entitled person
14is entitled to any proceeds from the disposition of the
15vehicle, less any reasonable storage charges, administrative
16fees, booting fees, towing fees, and parking and compliance
17fines and penalties.
18    (b) Except as provided in Section 4-208 for cities with
19more than 500,000 inhabitants, when an abandoned, lost, stolen
20or unclaimed vehicle 7 years of age or newer remains unclaimed
21by the registered owner, lienholder or other legally entitled
22persons for a period of 30 days after notice has been given as
23provided in Sections 4-205 and 4-206 of this Code, the law
24enforcement agency or towing service having possession of the
25vehicle shall cause it to be sold at public auction to a person
26licensed as an automotive parts recycler, rebuilder or scrap

 

 

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1processor under Chapter 5 of this Code or the towing operator
2which towed the vehicle. Notice of the time and place of the
3sale shall be posted in a conspicuous place for at least 10
4days prior to the sale on the premises where the vehicle has
5been impounded. At least 10 days prior to the sale, the law
6enforcement agency where the vehicle is impounded, or the
7towing service where the vehicle is impounded, shall cause a
8notice of the time and place of the sale to be sent by
9certified mail to the registered owner, lienholder, or other
10legally entitled persons. Notice as provided in Sections 4-205
11and 4-206 of this Code and as provided in this subsection (b)
12shall state the time and place of sale and shall contain a
13complete description of the vehicle to be sold and what steps
14must be taken by any legally entitled person to reclaim the
15vehicle.
16    (c) If an abandoned, lost, stolen, or unclaimed vehicle
17displays dealer plates, notice under this Section and Section
184-209 of this Code shall be sent to both the dealer and the
19registered owner, lienholder, or other legally entitled
20persons.
21    (d) In those instances where the certified notification
22specified in Sections 4-205 and 4-206 of this Code has been
23returned by the postal authorities to the law enforcement
24agency or towing service, the sending of a second certified
25notice will not be required.
26    (e) If a certified notification specified in Sections 4-205

 

 

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1and 4-206 has been sent to the registered owner, lienholder, or
2other legally entitled person and no response has been received
3by the law enforcement agency or towing service, the public
4sale may proceed as set forth in this Section.
5(Source: P.A. 94-650, eff. 1-1-06.)
 
6    (625 ILCS 5/4-216)
7    Sec. 4-216. Storage fees; notice to lienholder of record.
8    (a) Any commercial vehicle relocator or any other private
9towing service providing removal or towing services pursuant to
10this Code and seeking to impose fees in connection with the
11furnishing of storage for a vehicle in the possession of the
12commercial vehicle relocator or other private towing service
13must provide written notice within 2 business days after the
14vehicle is removed or towed, by certified mail, return receipt
15requested, to the lienholder of record, regardless of whether
16the commercial vehicle relocator or other private towing
17service enforces a lien under the Labor and Storage Lien Act or
18the Labor and Storage Lien (Small Amount) Act. The notice shall
19be effective upon mailing and include the rate at which fees
20will be incurred, and shall provide the lienholder with an
21opportunity to inspect the vehicle on the premises where the
22vehicle is stored within 2 business days of the lienholder's
23request. The date on which the assessment and accrual of
24storage fees may commence is the date of the impoundment of the
25vehicle, subject to any applicable limitations set forth by a

 

 

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1municipality authorizing the vehicle removal. Payment of the
2storage fees by the lienholder may be made in cash or by
3cashier's check, certified check, debit card, credit card, or
4wire transfer, at the option of the lienholder taking
5possession of the vehicle. The commercial vehicle relocator or
6other private towing service shall furnish a copy of the
7certified mail receipt to the lienholder upon request.
8    (b) The notification requirements in subsection (a) of this
9Section apply in addition to any lienholder notice requirements
10under this Code relating to the removal or towing of an
11abandoned, lost, stolen, or unclaimed vehicle. If the
12commercial vehicle relocator or other private towing service
13fails to comply with the notification requirements set forth in
14subsection (a) of this Section, storage fees shall not be
15assessed and collected and the lienholder shall be entitled to
16injunctive relief for possession of the vehicle without the
17payment of any storage fees.
18    (c) If the notification required under subsection (a) was
19not sent and a lienholder discovers its collateral is in the
20possession of a commercial vehicle relocator or other private
21towing service by means other than the notification required in
22subsection (a) of this Section, the lienholder is entitled to
23recover any storage fees paid to the commercial vehicle
24relocator or other private towing service to reclaim possession
25of its collateral.
26    (d) An action under this Section may be brought by the

 

 

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1lienholder against the commercial vehicle locator or other
2private towing service in the circuit court.
3    (e) Notwithstanding any provision to the contrary in this
4Code, a commercial vehicle relocator or other private towing
5service seeking to impose storage fees for a vehicle in its
6possession may not foreclose or otherwise enforce its claim for
7payment of storage services or any lien relating to the claim
8pursuant to this Code or other applicable law unless it first
9complies with the lienholder notification requirements set
10forth in subsection (a) of this Section. If notice is properly
11given as set forth in subsection (a), a lienholder shall either
12claim the vehicle or issue a written waiver of lien on the
13vehicle within 14 days of the date notice was first sent. If no
14written waiver of lien is received from the lienholder, the
15commercial vehicle relocator or other private towing service
16may foreclose or otherwise enforce its claim for payment of
17storage services or any lien relating to the claim pursuant to
18this Code or other applicable law.
19    (f) If the vehicle that is removed or towed is registered
20in a state other than Illinois, the assessment and accrual of
21storage fees may commence on the date that the request for
22lienholder information is filed by the commercial vehicle
23relocator or other private towing service with the applicable
24administrative agency or office in that state if: (i) the
25commercial vehicle relocator or other private towing service
26furnishes the lienholder with a copy or proof of filing of the

 

 

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1request for lienholder information; (ii) the commercial
2vehicle relocator or other private towing service provides to
3the lienholder of record the notification required by this
4Section within one business day after receiving the requested
5lienholder information; and (iii) the assessment of storage
6fees complies with any applicable limitations set forth by a
7municipality authorizing the vehicle removal.
8(Source: P.A. 100-311, eff. 11-23-17; 100-863, eff. 8-14-18.)