HB4988 EngrossedLRB097 19182 HEP 64424 b

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
5Section 3-704.1 and adding Section 11-1430.1 as follows:
 
6    (625 ILCS 5/3-704.1)
7    Sec. 3-704.1. Municipal vehicle tax liability; suspension
8of registration.
9    (a) As used in this Section:
10        (1) "Municipality" means a city, village or
11    incorporated town with a population over 1,000,000.
12        (2) "Vehicle tax" means a motor vehicle tax and any
13    related late fees or charges imposed by a municipality
14    under Section 8-11-4 or the Illinois Municipal Code or
15    under the municipality's home rule powers.
16        (3) "Vehicle owner" means the registered owner or
17    owners of a vehicle who are residents of the municipality.
18    (b) A municipality that imposes a vehicle tax may, by
19ordinance adopted under this Section, establish a system
20whereby the municipality notifies the Secretary of State of
21vehicle tax liability and the Secretary of State suspends the
22registration of vehicles for which the tax has not been paid.
23An ordinance establishing a system must provide for the

 

 

HB4988 Engrossed- 2 -LRB097 19182 HEP 64424 b

1following:
2        (1) A first notice for failure to pay a vehicle tax
3    shall be sent by first class mail to the vehicle owner at
4    the owner's address recorded with the Secretary of State
5    whenever the municipality has reasonable cause to believe
6    that the vehicle owner has failed to pay a vehicle tax as
7    required by ordinance. The notice shall include at least
8    the following:
9            (A) The name and address of the vehicle owner.
10            (B) The registration plate number of the vehicle.
11            (C) The period for which the vehicle tax is due.
12            (D) The amount of vehicle tax that is due.
13            (E) A statement that the vehicle owner's
14        registration for the vehicle will be subject to
15        suspension proceedings unless the vehicle owner pays
16        the vehicle tax or successfully contests the owner's
17        alleged liability within 30 days of the date of the
18        notice.
19            (F) An explanation of the vehicle owner's
20        opportunity to be heard under subsection (c).
21        (2) If a vehicle owner fails to pay the vehicle tax or
22    to contest successfully the owner's alleged liability
23    within the period specified in the first notice, a second
24    notice of impending registration suspension shall be sent
25    by first class mail to the vehicle owner at the owner's
26    address recorded with the Secretary of State. The notice

 

 

HB4988 Engrossed- 3 -LRB097 19182 HEP 64424 b

1    shall contain the same information as the first notice, but
2    shall also state that the failure to pay the amount owing,
3    or to contest successfully the alleged liability within 45
4    days of the date of the second notice, will result in the
5    municipality's notification of the Secretary of State that
6    the vehicle owner is eligible for initiation of suspension
7    proceedings under this Section.
8    (c) An ordinance adopted under this Section must also give
9the vehicle owner an opportunity to be heard upon the filing of
10a timely petition with the municipality. A vehicle owner may
11contest the alleged tax liability either through an
12adjudication by mail or at an administrative hearing, at the
13option of the vehicle owner. The grounds upon which the
14liability may be contested may be limited to the following:
15        (1) The alleged vehicle owner does not own the vehicle.
16        (2) The vehicle is not subject to the vehicle tax by
17    law.
18        (3) The vehicle tax for the period in question has been
19    paid.
20    At an administrative hearing, the formal or technical rules
21of evidence shall not apply. The hearing shall be recorded. The
22person conducting the hearing shall have the power to
23administer oaths and to secure by subpoena the attendance and
24testimony of witnesses and the production of relevant
25documents.
26    (d) If a vehicle owner who has been sent a first notice of

 

 

HB4988 Engrossed- 4 -LRB097 19182 HEP 64424 b

1failure to pay a vehicle tax and a second notice of impending
2registration suspension fails to pay the vehicle tax or to
3contest successfully the vehicle owner's liability within the
4periods specified in the notices, the appropriate official
5shall cause a certified report to be sent to the Secretary of
6State under subsection (e).
7    (e) A report of a municipality notifying the Secretary of
8State of a vehicle owner's failure to pay a vehicle tax or
9related fines or penalties under this Section shall be
10certified by the appropriate official and shall contain the
11following:
12        (1) The name, last known address and registration plate
13    number of the vehicle of the person who failed to pay the
14    vehicle tax.
15        (2) The name of the municipality making the report.
16        (3) A statement that the municipality sent notices as
17    required by subsection (b); the date on which the notices
18    were sent; the address to which the notices were sent; and
19    the date of the hearing, if any.
20    (f) Following receipt of the certified report under this
21Section, the Secretary of State shall notify the vehicle owner
22that the vehicle's registration will be suspended at the end of
23a reasonable specified period of time unless the Secretary of
24State is presented with a notice from the municipality
25certifying that the person has paid the necessary vehicle tax,
26or that inclusion of that person's name or registration number

 

 

HB4988 Engrossed- 5 -LRB097 19182 HEP 64424 b

1on the certified report was in error. The Secretary's notice
2shall state in substance the information contained in the
3certified report from the municipality to the Secretary, and
4shall be effective as specified by subsection (c) of Section
56-211 of this Code. The notice shall also inform the person of
6the person's right to a hearing under subsection (g).
7    (g) An administrative hearing with the Office of the
8Secretary of State to contest an impending suspension or a
9suspension made under this Section may be had upon filing a
10written request with the Secretary of State. The filing fee for
11this hearing shall be $20 to be paid at the time the request is
12made.
13        (1) The scope of any administrative hearing with the
14    Secretary of State to contest an impending suspension under
15    this Section shall be limited to the following issues:
16            (A) Whether the report of the appropriate official
17        of the municipality was certified and contained the
18        information required by this Section.
19            (B) Whether the municipality making the certified
20        report to the Secretary of State established
21        procedures by ordinance for persons to challenge the
22        accuracy of the certified report.
23            (C) Whether the Secretary of State notified the
24        vehicle owner that the vehicle's registration would be
25        suspended at the end of the specified time period
26        unless the Secretary of State was presented with a

 

 

HB4988 Engrossed- 6 -LRB097 19182 HEP 64424 b

1        notice from the municipality certifying that the
2        person has purchased the necessary vehicle tax sticker
3        or that inclusion of that person's name or registration
4        number on the certified report was in error.
5    A municipality that files a certified report with the
6Secretary of State under this Section shall reimburse the
7Secretary for all reasonable costs incurred by the Secretary as
8a result of the filing of the report, including but not limited
9to the costs of providing the notice required under subsection
10(f) and the costs incurred by the Secretary in any hearing
11conducted with respect to the report under this subsection and
12any appeal from that hearing.
13    (h) After the expiration of the time specified under
14subsection (g), the Secretary of State shall, unless the
15suspension is successfully contested, suspend the registration
16of the vehicle until the Secretary receives notice under
17subsection (i).
18    (i) Any municipality making a certified report to the
19Secretary of State under this subsection shall notify the
20Secretary of State, in a form prescribed by the Secretary,
21whenever a person named in the certified report has
22subsequently paid a vehicle tax or whenever the municipality
23determines that the original report was in error. A certified
24copy of the notification shall also be given upon request and
25at no additional charge to the person named in the report. Upon
26receipt of the notification or presentation of a certified copy

 

 

HB4988 Engrossed- 7 -LRB097 19182 HEP 64424 b

1of the notification by the municipality, the Secretary of State
2shall terminate the suspension.
3    (j) To facilitate enforcement of municipal vehicle tax
4liability, a municipality may provide by ordinance for a
5program of vehicle immobilization as provided by Section
611-1430.1 of this Code.
7(Source: P.A. 87-1225.)
 
8    (625 ILCS 5/11-1430.1 new)
9    Sec. 11-1430.1. Vehicle immobilization for failure to pay
10municipal vehicle tax violation liability.
11    (a) A municipality may provide by ordinance for a program
12of vehicle immobilization to facilitate enforcement of
13municipal vehicle tax liability. The program of vehicle
14immobilization shall provide for immobilizing an eligible
15vehicle upon the public way by presence of a restraint in a
16manner to prevent operation of the vehicle. An ordinance
17establishing a program of vehicle immobilization under this
18Section shall include the following provisions:
19        (1) A vehicle shall be eligible for immobilization when
20    the registered owner of the vehicle has accumulated the
21    number of unpaid final determinations of vehicle tax
22    violation liability or other violation liability under
23    subsection (c) of Section 11-208.3 of this Code, or both.
24        (2) The vehicle owner shall be provided with notice of
25    the impending vehicle immobilization and the right to a

 

 

HB4988 Engrossed- 8 -LRB097 19182 HEP 64424 b

1    hearing to challenge the validity of the action by
2    disproving liability for unpaid final determinations of
3    vehicle tax or other violation liability under subsection
4    (c) of Section 11-208.3 of this Code.
5        (3) The vehicle owner shall have the right to a prompt
6    hearing after a vehicle has been immobilized or
7    subsequently towed for nonpayment of outstanding fines and
8    penalties for which final determinations have been issued.
9    An order issued after the hearing is a final administrative
10    decision within the meaning of Section 3-101 of the Code of
11    Civil Procedure.
12        (4) A post-immobilization and post-towing notice shall
13    be provided to the registered owner of the vehicle advising
14    the registered owner of the right to a hearing to challenge
15    the validity of the impoundment.
16    (b) Judicial review of final determinations of vehicle tax
17violations and final administrative decisions issued after
18hearings regarding vehicle immobilization and impoundment made
19under this Section shall be subject to the Administrative
20Review Law.
21    (c) A fine, penalty, or part thereof, remaining unpaid
22after the exhaustion of, or the failure to exhaust,
23administrative remedies and the conclusion of judicial review
24procedures shall be a debt due and owing the municipality and,
25as such, may be collected in accordance with applicable law.
26Payment in full of any fine or penalty resulting from a vehicle

 

 

HB4988 Engrossed- 9 -LRB097 19182 HEP 64424 b

1tax violation shall constitute a final disposition of that
2violation.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.