Illinois General Assembly - Full Text of HB2189
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Full Text of HB2189  102nd General Assembly



State of Illinois
2021 and 2022


Introduced 2/17/2021, by Rep. Jim Durkin


625 ILCS 5/3-117.1  from Ch. 95 1/2, par. 3-117.1

    Amends the Illinois Vehicle Code. Makes a technical change in a provision regarding junking and salvage certificates.

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HB2189LRB102 12425 RAM 17762 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
5changing Section 3-117.1 as follows:
6    (625 ILCS 5/3-117.1)  (from Ch. 95 1/2, par. 3-117.1)
7    Sec. 3-117.1. When junking certificates or salvage
8certificates must be obtained.
9    (a) Except as provided in Chapter 4 and Section 3-117.3 of
10this Code, a person who possesses a junk vehicle shall within
1115 days cause the the certificate of title, salvage
12certificate, certificate of purchase, or a similarly
13acceptable out-of-state document of ownership to be
14surrendered to the Secretary of State along with an
15application for a junking certificate, except as provided in
16Section 3-117.2, whereupon the Secretary of State shall issue
17to such a person a junking certificate, which shall authorize
18the holder thereof to possess, transport, or, by an
19endorsement, transfer ownership in such junked vehicle, and a
20certificate of title shall not again be issued for such
21vehicle. The owner of a junk vehicle is not required to
22surrender the certificate of title under this subsection if
23(i) there is no lienholder on the certificate of title or (ii)



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1the owner of the junk vehicle has a valid lien release from the
2lienholder releasing all interest in the vehicle and the owner
3applying for the junk certificate matches the current record
4on the certificate of title file for the vehicle.
5    A licensee who possesses a junk vehicle and a Certificate
6of Title, Salvage Certificate, Certificate of Purchase, or a
7similarly acceptable out-of-state document of ownership for
8such junk vehicle, may transport the junk vehicle to another
9licensee prior to applying for or obtaining a junking
10certificate, by executing a uniform invoice. The licensee
11transferor shall furnish a copy of the uniform invoice to the
12licensee transferee at the time of transfer. In any case, the
13licensee transferor shall apply for a junking certificate in
14conformance with Section 3-117.1 of this Chapter. The
15following information shall be contained on a uniform invoice:
16        (1) The business name, address and dealer license
17    number of the person disposing of the vehicle, junk
18    vehicle or vehicle cowl;
19        (2) The name and address of the person acquiring the
20    vehicle, junk vehicle or vehicle cowl, and if that person
21    is a dealer, the Illinois or out-of-state dealer license
22    number of that dealer;
23        (3) The date of the disposition of the vehicle, junk
24    vehicle or vehicle cowl;
25        (4) The year, make, model, color and description of
26    each vehicle, junk vehicle or vehicle cowl disposed of by



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1    such person;
2        (5) The manufacturer's vehicle identification number,
3    Secretary of State identification number or Illinois
4    Department of State Police number, for each vehicle, junk
5    vehicle or vehicle cowl part disposed of by such person;
6        (6) The printed name and legible signature of the
7    person or agent disposing of the vehicle, junk vehicle or
8    vehicle cowl; and
9        (7) The printed name and legible signature of the
10    person accepting delivery of the vehicle, junk vehicle or
11    vehicle cowl.
12    The Secretary of State may certify a junking manifest in a
13form prescribed by the Secretary of State that reflects those
14vehicles for which junking certificates have been applied or
15issued. A junking manifest may be issued to any person and it
16shall constitute evidence of ownership for the vehicle listed
17upon it. A junking manifest may be transferred only to a person
18licensed under Section 5-301 of this Code as a scrap
19processor. A junking manifest will allow the transportation of
20those vehicles to a scrap processor prior to receiving the
21junk certificate from the Secretary of State.
22    (b) An application for a salvage certificate shall be
23submitted to the Secretary of State in any of the following
25        (1) When an insurance company makes a payment of
26    damages on a total loss claim for a vehicle, the insurance



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1    company shall be deemed to be the owner of such vehicle and
2    the vehicle shall be considered to be salvage except that
3    ownership of (i) a vehicle that has incurred only hail
4    damage that does not affect the operational safety of the
5    vehicle or (ii) any vehicle 9 model years of age or older
6    may, by agreement between the registered owner and the
7    insurance company, be retained by the registered owner of
8    such vehicle. The insurance company shall promptly deliver
9    or mail within 20 days the certificate of title along with
10    proper application and fee to the Secretary of State, and
11    a salvage certificate shall be issued in the name of the
12    insurance company. Notwithstanding the foregoing, an
13    insurer making payment of damages on a total loss claim
14    for the theft of a vehicle shall not be required to apply
15    for a salvage certificate unless the vehicle is recovered
16    and has incurred damage that initially would have caused
17    the vehicle to be declared a total loss by the insurer.
18        (1.1) When a vehicle of a self-insured company is to
19    be sold in the State of Illinois and has sustained damaged
20    by collision, fire, theft, rust corrosion, or other means
21    so that the self-insured company determines the vehicle to
22    be a total loss, or if the cost of repairing the damage,
23    including labor, would be greater than 70% of its fair
24    market value without that damage, the vehicle shall be
25    considered salvage. The self-insured company shall
26    promptly deliver the certificate of title along with



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1    proper application and fee to the Secretary of State, and
2    a salvage certificate shall be issued in the name of the
3    self-insured company. A self-insured company making
4    payment of damages on a total loss claim for the theft of a
5    vehicle may exchange the salvage certificate for a
6    certificate of title if the vehicle is recovered without
7    damage. In such a situation, the self-insured shall fill
8    out and sign a form prescribed by the Secretary of State
9    which contains an affirmation under penalty of perjury
10    that the vehicle was recovered without damage and the
11    Secretary of State may, by rule, require photographs to be
12    submitted.
13        (2) When a vehicle the ownership of which has been
14    transferred to any person through a certificate of
15    purchase from acquisition of the vehicle at an auction,
16    other dispositions as set forth in Sections 4-208 and
17    4-209 of this Code, or a lien arising under Section
18    18a-501 of this Code shall be deemed salvage or junk at the
19    option of the purchaser. The person acquiring such vehicle
20    in such manner shall promptly deliver or mail, within 20
21    days after the acquisition of the vehicle, the certificate
22    of purchase, the proper application and fee, and, if the
23    vehicle is an abandoned mobile home under the Abandoned
24    Mobile Home Act, a certification from a local law
25    enforcement agency that the vehicle was purchased or
26    acquired at a public sale under the Abandoned Mobile Home



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1    Act to the Secretary of State and a salvage certificate or
2    junking certificate shall be issued in the name of that
3    person. The salvage certificate or junking certificate
4    issued by the Secretary of State under this Section shall
5    be free of any lien that existed against the vehicle prior
6    to the time the vehicle was acquired by the applicant
7    under this Code.
8        (3) A vehicle which has been repossessed by a
9    lienholder shall be considered to be salvage only when the
10    repossessed vehicle, on the date of repossession by the
11    lienholder, has sustained damage by collision, fire,
12    theft, rust corrosion, or other means so that the cost of
13    repairing such damage, including labor, would be greater
14    than 33 1/3% of its fair market value without such damage.
15    If the lienholder determines that such vehicle is damaged
16    in excess of 33 1/3% of such fair market value, the
17    lienholder shall, before sale, transfer or assignment of
18    the vehicle, make application for a salvage certificate,
19    and shall submit with such application the proper fee and
20    evidence of possession. If the facts required to be shown
21    in subsection (f) of Section 3-114 are satisfied, the
22    Secretary of State shall issue a salvage certificate in
23    the name of the lienholder making the application. In any
24    case wherein the vehicle repossessed is not damaged in
25    excess of 33 1/3% of its fair market value, the lienholder
26    shall comply with the requirements of subsections (f),



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1    (f-5), and (f-10) of Section 3-114, except that the
2    affidavit of repossession made by or on behalf of the
3    lienholder shall also contain an affirmation under penalty
4    of perjury that the vehicle on the date of sale is not
5    damaged in excess of 33 1/3% of its fair market value. If
6    the facts required to be shown in subsection (f) of
7    Section 3-114 are satisfied, the Secretary of State shall
8    issue a certificate of title as set forth in Section 3-116
9    of this Code. The Secretary of State may by rule or
10    regulation require photographs to be submitted.
11        (4) A vehicle which is a part of a fleet of more than 5
12    commercial vehicles registered in this State or any other
13    state or registered proportionately among several states
14    shall be considered to be salvage when such vehicle has
15    sustained damage by collision, fire, theft, rust,
16    corrosion or similar means so that the cost of repairing
17    such damage, including labor, would be greater than 33
18    1/3% of the fair market value of the vehicle without such
19    damage. If the owner of a fleet vehicle desires to sell,
20    transfer, or assign his interest in such vehicle to a
21    person within this State other than an insurance company
22    licensed to do business within this State, and the owner
23    determines that such vehicle, at the time of the proposed
24    sale, transfer or assignment is damaged in excess of 33
25    1/3% of its fair market value, the owner shall, before
26    such sale, transfer or assignment, make application for a



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1    salvage certificate. The application shall contain with it
2    evidence of possession of the vehicle. If the fleet
3    vehicle at the time of its sale, transfer, or assignment
4    is not damaged in excess of 33 1/3% of its fair market
5    value, the owner shall so state in a written affirmation
6    on a form prescribed by the Secretary of State by rule or
7    regulation. The Secretary of State may by rule or
8    regulation require photographs to be submitted. Upon sale,
9    transfer or assignment of the fleet vehicle the owner
10    shall mail the affirmation to the Secretary of State.
11        (5) A vehicle that has been submerged in water to the
12    point that rising water has reached over the door sill and
13    has entered the passenger or trunk compartment is a "flood
14    vehicle". A flood vehicle shall be considered to be
15    salvage only if the vehicle has sustained damage so that
16    the cost of repairing the damage, including labor, would
17    be greater than 33 1/3% of the fair market value of the
18    vehicle without that damage. The salvage certificate
19    issued under this Section shall indicate the word "flood",
20    and the word "flood" shall be conspicuously entered on
21    subsequent titles for the vehicle. A person who possesses
22    or acquires a flood vehicle that is not damaged in excess
23    of 33 1/3% of its fair market value shall make application
24    for title in accordance with Section 3-116 of this Code,
25    designating the vehicle as "flood" in a manner prescribed
26    by the Secretary of State. The certificate of title issued



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1    shall indicate the word "flood", and the word "flood"
2    shall be conspicuously entered on subsequent titles for
3    the vehicle.
4        (6) When any licensed rebuilder, repairer, new or used
5    vehicle dealer, or remittance agent has submitted an
6    application for title to a vehicle (other than an
7    application for title to a rebuilt vehicle) that he or she
8    knows or reasonably should have known to have sustained
9    damages in excess of 33 1/3% of the vehicle's fair market
10    value without that damage; provided, however, that any
11    application for a salvage certificate for a vehicle
12    recovered from theft and acquired from an insurance
13    company shall be made as required by paragraph (1) of this
14    subsection (b).
15    (c) Any person who without authority acquires, sells,
16exchanges, gives away, transfers or destroys or offers to
17acquire, sell, exchange, give away, transfer or destroy the
18certificate of title to any vehicle which is a junk or salvage
19vehicle shall be guilty of a Class 3 felony.
20    (d) Except as provided under subsection (a), any person
21who knowingly fails to surrender to the Secretary of State a
22certificate of title, salvage certificate, certificate of
23purchase or a similarly acceptable out-of-state document of
24ownership as required under the provisions of this Section is
25guilty of a Class A misdemeanor for a first offense and a Class
264 felony for a subsequent offense; except that a person



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1licensed under this Code who violates paragraph (5) of
2subsection (b) of this Section is guilty of a business offense
3and shall be fined not less than $1,000 nor more than $5,000
4for a first offense and is guilty of a Class 4 felony for a
5second or subsequent violation.
6    (e) Any vehicle which is salvage or junk may not be driven
7or operated on roads and highways within this State. A
8violation of this subsection is a Class A misdemeanor. A
9salvage vehicle displaying valid special plates issued under
10Section 3-601(b) of this Code, which is being driven to or from
11an inspection conducted under Section 3-308 of this Code, is
12exempt from the provisions of this subsection. A salvage
13vehicle for which a short term permit has been issued under
14Section 3-307 of this Code is exempt from the provisions of
15this subsection for the duration of the permit.
16(Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19;
17100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)