Illinois General Assembly - Full Text of HB2528
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Full Text of HB2528  102nd General Assembly

HB2528 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2528

 

Introduced 2/19/2021, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/3-116  from Ch. 95 1/2, par. 3-116
625 ILCS 5/3-117.1  from Ch. 95 1/2, par. 3-117.1
625 ILCS 5/3-117.2  from Ch. 95 1/2, par. 3-117.2
625 ILCS 5/3-801  from Ch. 95 1/2, par. 3-801
625 ILCS 5/5-401.2  from Ch. 95 1/2, par. 5-401.2
625 ILCS 5/5-402  from Ch. 95 1/2, par. 5-402
625 ILCS 5/5-402.1  from Ch. 95 1/2, par. 5-402.1

    Amends the Illinois Vehicle Code. Provides that the Secretary of State, upon receipt of an application for a new certificate of title, an application for a certificate of title by a transferee, an application for a certificate of title pursuant to a court order awarding ownership to the applicant, an application for a junking certificate, or an application for a salvage certificate, shall remove the current owner registration and license plate record on file associated with the vehicle's serial number before issuing a new certificate. Makes changes to provisions regarding: junk vehicle notification format; the types of records required to be kept by specified licensees under the Code; and the information required to be contained on a uniform invoice for essential parts. Makes other changes.


LRB102 15764 RAM 21131 b

 

 

A BILL FOR

 

HB2528LRB102 15764 RAM 21131 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 Sections 3-116, 3-117.1, 3-117.2, 3-801, 5-401.2,
65-402, and 5-402.1 as follows:
 
7    (625 ILCS 5/3-116)  (from Ch. 95 1/2, par. 3-116)
8    Sec. 3-116. When Secretary of State to issue a certificate
9of title.
10    (a) The Secretary of State, upon receipt of a properly
11assigned certificate of title, with an application for a
12certificate of title, the required fee and any other documents
13required by law, shall remove the current owner registration
14and license plate record on file associated with the vehicle's
15serial number and shall issue a new certificate of title in the
16name of the transferee as owner and mail it to the first
17lienholder named in it or, if none, to the owner or owner's
18designee.
19    (b) The Secretary of State, upon receipt of an application
20for a new certificate of title by a transferee other than by
21voluntary transfer, with proof of the transfer, the required
22fee and any other documents required by law, shall remove the
23current owner registration and license plate record on file

 

 

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1associated with the vehicle's serial number and shall issue a
2new certificate of title in the name of the transferee as
3owner.
4    (b-5) The Secretary of State, upon receipt of an
5application for a certificate of title and the required fee,
6may issue a certificate of title to an out-of-state resident
7if the out-of-state resident is a bona fide purchaser of a
8vehicle or a manufactured home from a dealer licensed in this
9State under Section 5-101, 5-101.2, or 5-102 of this Code and
10the licensed dealer files for bankruptcy, surrenders his or
11her license, or is otherwise no longer operating as a licensed
12dealer and does not properly transfer the title application to
13the bona fide purchaser prior to the licensed dealer's
14business closure.
15    (c) Any person, firm or corporation, who shall knowingly
16possess, buy, sell, exchange or give away, or offer to buy,
17sell, exchange or give away the certificate of title to any
18motor vehicle which is a junk or salvage, or who shall fail to
19surrender the certificate of title to the Secretary of State
20as required under the provisions of this Section and Section
213-117.2, shall be guilty of Class 3 felony.
22    (d) The Secretary of State shall file and retain for four
23(4) years a record of every surrendered certificate of title
24or proof of ownership accepted by the Secretary of State, the
25file to be maintained so as to permit the tracing of title of
26the vehicle designated therein. Such filing and retention

 

 

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1requirements shall be in addition to and not in substitution
2for the recordkeeping requirements set forth in Section 3-106
3of this Code, which recordkeeping requirements are not limited
4to any period of time.
5    (e) The Secretary of State, upon receipt of an application
6for corrected certificate of title, with the original title,
7the required fee and any other required documents, shall issue
8a corrected certificate of title in the name of the owner and
9mail it to the first lienholder named in it or, if none, to the
10owner or owner's designee.
11    (f) The Secretary of State, upon receipt of a certified
12copy of a court order awarding ownership to an applicant along
13with an application for a certificate of title and the
14required fee, shall remove the current owner registration and
15license plate record on file associated with the vehicle's
16serial number and shall issue a certificate of title to the
17applicant.
18(Source: P.A. 100-450, eff. 1-1-18.)
 
19    (625 ILCS 5/3-117.1)  (from Ch. 95 1/2, par. 3-117.1)
20    Sec. 3-117.1. When junking certificates or salvage
21certificates must be obtained.
22    (a) Except as provided in Chapter 4 and Sections 3-117.2
23and Section 3-117.3 of this Code, a person who possesses a junk
24vehicle shall within 15 days cause the certificate of title,
25salvage certificate, certificate of purchase, or a similarly

 

 

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1acceptable out-of-state document of ownership to be
2surrendered to the Secretary of State along with an
3application for a junking certificate, except as provided in
4Section 3-117.2, whereupon the Secretary of State shall remove
5the current owner registration and license plate record on
6file associated with the vehicle's serial number and shall
7issue to such a person a junking certificate, which shall
8authorize the holder thereof to possess, transport, or, by an
9endorsement, transfer ownership in such junked vehicle, and a
10certificate of title shall not again be issued for such
11vehicle. The owner of a junk vehicle is not required to
12surrender the certificate of title under this subsection if
13(i) there is no lienholder on the certificate of title or (ii)
14the owner of the junk vehicle has a valid lien release from the
15lienholder releasing all interest in the vehicle and the owner
16applying for the junk certificate matches the current record
17on the certificate of title file for the vehicle.
18    A licensee who possesses a junk vehicle and a Certificate
19of Title, Salvage Certificate, Certificate of Purchase, or a
20similarly acceptable out-of-state document of ownership for
21such junk vehicle, may transport the junk vehicle to another
22licensee prior to applying for or obtaining a junking
23certificate, by executing a uniform invoice. The licensee
24transferor shall furnish a copy of the uniform invoice to the
25licensee transferee at the time of transfer. In any case, the
26licensee transferor shall apply for a junking certificate in

 

 

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1conformance with Section 3-117.1 of this Chapter. The
2following information shall be contained on a uniform invoice:
3        (1) The business name, address and dealer license
4    number of the person disposing of the vehicle, junk
5    vehicle or vehicle cowl;
6        (2) The name and address of the person acquiring the
7    vehicle, junk vehicle or vehicle cowl, and if that person
8    is a dealer, the Illinois or out-of-state dealer license
9    number of that dealer;
10        (3) The date of the disposition of the vehicle, junk
11    vehicle or vehicle cowl;
12        (4) The year, make, model, color and description of
13    each vehicle, junk vehicle or vehicle cowl disposed of by
14    such person;
15        (5) The manufacturer's vehicle identification number,
16    Secretary of State identification number or Illinois
17    Department of State Police number, for each vehicle, junk
18    vehicle or vehicle cowl part disposed of by such person;
19        (6) The printed name and legible signature of the
20    person or agent disposing of the vehicle, junk vehicle or
21    vehicle cowl; and
22        (7) The printed name and legible signature of the
23    person accepting delivery of the vehicle, junk vehicle or
24    vehicle cowl.
25    The Secretary of State may certify a junking manifest in a
26form prescribed by the Secretary of State that reflects those

 

 

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1vehicles for which junking certificates have been applied or
2issued. A junking manifest may be issued to any person and it
3shall constitute evidence of ownership for the vehicle listed
4upon it. A junking manifest may be transferred only to a person
5licensed under Section 5-301 of this Code as a scrap
6processor. A junking manifest will allow the transportation of
7those vehicles to a scrap processor prior to receiving the
8junk certificate or a junk vehicle electronic record from the
9Secretary of State.
10    (b) An application for a salvage certificate shall be
11submitted to the Secretary of State in any of the following
12situations:
13        (1) When an insurance company makes a payment of
14    damages on a total loss claim for a vehicle, the insurance
15    company shall be deemed to be the owner of such vehicle and
16    the vehicle shall be considered to be salvage except that
17    ownership of (i) a vehicle that has incurred only hail
18    damage that does not affect the operational safety of the
19    vehicle or (ii) any vehicle 9 model years of age or older
20    may, by agreement between the registered owner and the
21    insurance company, be retained by the registered owner of
22    such vehicle. The insurance company shall promptly deliver
23    or mail within 20 days the certificate of title along with
24    proper application and fee to the Secretary of State, and
25    a salvage certificate shall be issued in the name of the
26    insurance company. Notwithstanding the foregoing, an

 

 

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1    insurer making payment of damages on a total loss claim
2    for the theft of a vehicle shall not be required to apply
3    for a salvage certificate unless the vehicle is recovered
4    and has incurred damage that initially would have caused
5    the vehicle to be declared a total loss by the insurer.
6        (1.1) When a vehicle of a self-insured company is to
7    be sold in the State of Illinois and has sustained damaged
8    by collision, fire, theft, rust corrosion, or other means
9    so that the self-insured company determines the vehicle to
10    be a total loss, or if the cost of repairing the damage,
11    including labor, would be greater than 70% of its fair
12    market value without that damage, the vehicle shall be
13    considered salvage. The self-insured company shall
14    promptly deliver the certificate of title along with
15    proper application and fee to the Secretary of State, and
16    a salvage certificate shall be issued in the name of the
17    self-insured company. A self-insured company making
18    payment of damages on a total loss claim for the theft of a
19    vehicle may exchange the salvage certificate for a
20    certificate of title if the vehicle is recovered without
21    damage. In such a situation, the self-insured shall fill
22    out and sign a form prescribed by the Secretary of State
23    which contains an affirmation under penalty of perjury
24    that the vehicle was recovered without damage and the
25    Secretary of State may, by rule, require photographs to be
26    submitted.

 

 

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1        (2) When a vehicle the ownership of which has been
2    transferred to any person through a certificate of
3    purchase from acquisition of the vehicle at an auction,
4    other dispositions as set forth in Sections 4-208 and
5    4-209 of this Code, or a lien arising under Section
6    18a-501 of this Code shall be deemed salvage or junk at the
7    option of the purchaser. The person acquiring such vehicle
8    in such manner shall promptly deliver or mail, within 20
9    days after the acquisition of the vehicle, the certificate
10    of purchase, the proper application and fee, and, if the
11    vehicle is an abandoned mobile home under the Abandoned
12    Mobile Home Act, a certification from a local law
13    enforcement agency that the vehicle was purchased or
14    acquired at a public sale under the Abandoned Mobile Home
15    Act to the Secretary of State and a salvage certificate or
16    junking certificate shall be issued in the name of that
17    person. The salvage certificate or junking certificate
18    issued by the Secretary of State under this Section shall
19    be free of any lien that existed against the vehicle prior
20    to the time the vehicle was acquired by the applicant
21    under this Code.
22        (3) A vehicle which has been repossessed by a
23    lienholder shall be considered to be salvage only when the
24    repossessed vehicle, on the date of repossession by the
25    lienholder, has sustained damage by collision, fire,
26    theft, rust corrosion, or other means so that the cost of

 

 

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1    repairing such damage, including labor, would be greater
2    than 33 1/3% of its fair market value without such damage.
3    If the lienholder determines that such vehicle is damaged
4    in excess of 33 1/3% of such fair market value, the
5    lienholder shall, before sale, transfer or assignment of
6    the vehicle, make application for a salvage certificate,
7    and shall submit with such application the proper fee and
8    evidence of possession. If the facts required to be shown
9    in subsection (f) of Section 3-114 are satisfied, the
10    Secretary of State shall issue a salvage certificate in
11    the name of the lienholder making the application. In any
12    case wherein the vehicle repossessed is not damaged in
13    excess of 33 1/3% of its fair market value, the lienholder
14    shall comply with the requirements of subsections (f),
15    (f-5), and (f-10) of Section 3-114, except that the
16    affidavit of repossession made by or on behalf of the
17    lienholder shall also contain an affirmation under penalty
18    of perjury that the vehicle on the date of sale is not
19    damaged in excess of 33 1/3% of its fair market value. If
20    the facts required to be shown in subsection (f) of
21    Section 3-114 are satisfied, the Secretary of State shall
22    issue a certificate of title as set forth in Section 3-116
23    of this Code. The Secretary of State may by rule or
24    regulation require photographs to be submitted.
25        (4) A vehicle which is a part of a fleet of more than 5
26    commercial vehicles registered in this State or any other

 

 

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1    state or registered proportionately among several states
2    shall be considered to be salvage when such vehicle has
3    sustained damage by collision, fire, theft, rust,
4    corrosion or similar means so that the cost of repairing
5    such damage, including labor, would be greater than 33
6    1/3% of the fair market value of the vehicle without such
7    damage. If the owner of a fleet vehicle desires to sell,
8    transfer, or assign his interest in such vehicle to a
9    person within this State other than an insurance company
10    licensed to do business within this State, and the owner
11    determines that such vehicle, at the time of the proposed
12    sale, transfer or assignment is damaged in excess of 33
13    1/3% of its fair market value, the owner shall, before
14    such sale, transfer or assignment, make application for a
15    salvage certificate. The application shall contain with it
16    evidence of possession of the vehicle. If the fleet
17    vehicle at the time of its sale, transfer, or assignment
18    is not damaged in excess of 33 1/3% of its fair market
19    value, the owner shall so state in a written affirmation
20    on a form prescribed by the Secretary of State by rule or
21    regulation. The Secretary of State may by rule or
22    regulation require photographs to be submitted. Upon sale,
23    transfer or assignment of the fleet vehicle the owner
24    shall mail the affirmation to the Secretary of State.
25        (5) A vehicle that has been submerged in water to the
26    point that rising water has reached over the door sill and

 

 

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1    has entered the passenger or trunk compartment is a "flood
2    vehicle". A flood vehicle shall be considered to be
3    salvage only if the vehicle has sustained damage so that
4    the cost of repairing the damage, including labor, would
5    be greater than 33 1/3% of the fair market value of the
6    vehicle without that damage. The salvage certificate
7    issued under this Section shall indicate the word "flood",
8    and the word "flood" shall be conspicuously entered on
9    subsequent titles for the vehicle. A person who possesses
10    or acquires a flood vehicle that is not damaged in excess
11    of 33 1/3% of its fair market value shall make application
12    for title in accordance with Section 3-116 of this Code,
13    designating the vehicle as "flood" in a manner prescribed
14    by the Secretary of State. The certificate of title issued
15    shall indicate the word "flood", and the word "flood"
16    shall be conspicuously entered on subsequent titles for
17    the vehicle.
18        (6) When any licensed rebuilder, repairer, new or used
19    vehicle dealer, or remittance agent has submitted an
20    application for title to a vehicle (other than an
21    application for title to a rebuilt vehicle) that he or she
22    knows or reasonably should have known to have sustained
23    damages in excess of 33 1/3% of the vehicle's fair market
24    value without that damage; provided, however, that any
25    application for a salvage certificate for a vehicle
26    recovered from theft and acquired from an insurance

 

 

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1    company shall be made as required by paragraph (1) of this
2    subsection (b).
3    (c) Any person who without authority acquires, sells,
4exchanges, gives away, transfers or destroys or offers to
5acquire, sell, exchange, give away, transfer or destroy the
6certificate of title to any vehicle which is a junk or salvage
7vehicle shall be guilty of a Class 3 felony.
8    (d) Except as provided under subsection (a), any person
9who knowingly fails to surrender to the Secretary of State a
10certificate of title, salvage certificate, certificate of
11purchase or a similarly acceptable out-of-state document of
12ownership as required under the provisions of this Section is
13guilty of a Class A misdemeanor for a first offense and a Class
144 felony for a subsequent offense; except that a person
15licensed under this Code who violates paragraph (5) of
16subsection (b) of this Section is guilty of a business offense
17and shall be fined not less than $1,000 nor more than $5,000
18for a first offense and is guilty of a Class 4 felony for a
19second or subsequent violation.
20    (e) Any vehicle which is salvage or junk may not be driven
21or operated on roads and highways within this State. A
22violation of this subsection is a Class A misdemeanor. A
23salvage vehicle displaying valid special plates issued under
24Section 3-601(b) of this Code, which is being driven to or from
25an inspection conducted under Section 3-308 of this Code, is
26exempt from the provisions of this subsection. A salvage

 

 

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1vehicle for which a short term permit has been issued under
2Section 3-307 of this Code is exempt from the provisions of
3this subsection for the duration of the permit.
4(Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19;
5100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)
 
6    (625 ILCS 5/3-117.2)  (from Ch. 95 1/2, par. 3-117.2)
7    Sec. 3-117.2. Junk Vehicle Notification. Beginning July 1,
81989 a person licensed as an automotive parts recycler or a
9scrap processor pursuant to Section 5-301 of this Code who
10acquires a properly assigned Certificate of Title, a Salvage
11Certificate, a Certificate of Purchase, or a similarly
12acceptable out-of-state document of ownership pursuant to
13Section 5-401.3 of this Code, shall within 15 days of
14acquiring such document, submit it by mail or electronic
15format acceptable to the Secretary of State along with a Junk
16Vehicle Notification, the form and manner for which shall be
17as prescribed by Secretary of State rule or regulation. An
18automotive parts recycler or a A scrap processor who acquires
19the above named documents of ownership pursuant to Section
205-401.3 shall not be required to apply for or obtain a junking
21certificate. The information contained on a Junk Vehicle
22Notification shall be duly recorded by the Secretary of State
23upon the receipt of such Notification by mail or electronic
24format acceptable to the Secretary of State. The Secretary of
25State shall not again issue a Certificate of Title or Salvage

 

 

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1Certificate for any vehicle listed on a Junk Vehicle
2Notification.
3(Source: P.A. 85-1204.)
 
4    (625 ILCS 5/3-801)  (from Ch. 95 1/2, par. 3-801)
5    Sec. 3-801. Registration.
6    (a) Except as provided herein for new residents, every
7owner of any vehicle which shall be operated upon the public
8highways of this State shall, within 24 hours after becoming
9the owner or at such time as such vehicle becomes subject to
10registration under the provisions of this Act, file in an
11office of the Secretary of State, an application for
12registration properly completed and executed. New residents
13need not secure registration until 30 days after establishing
14residency in this State, provided the vehicle is properly
15registered in another jurisdiction. By the expiration of such
1630-day statutory grace period, a new resident shall comply
17with the provisions of this Act and apply for Illinois vehicle
18registration. All applications for registration shall be
19accompanied by all documentation required under the provisions
20of this Act. The appropriate registration fees and taxes
21provided for in this Article of this Chapter shall be paid to
22the Secretary of State with the application for registration
23of vehicles subject to registration under this Act.
24    (b) Any resident of this State, who has been serving as a
25member or as a civilian employee of the United States Armed

 

 

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1Services, or as a civilian employee of the United States
2Department of Defense, outside of the State of Illinois, need
3not secure registration until 45 days after returning to this
4State, provided the vehicle displays temporary military
5registration.
6    (c) When an application is submitted by mail, the
7applicant may not submit cash or postage stamps for payment of
8fees or taxes due. The Secretary in his discretion, may
9decline to accept a personal or company check or electronic
10payment in payment of fees or taxes. An application submitted
11to a dealer, or a remittance made to the Secretary of State
12shall be deemed in compliance with this Section.
13    (d) The Secretary of State shall remove the current owner
14registration and license plate record on file associated with
15the vehicle's serial number before issuing a new certificate
16of title, a junk certificate, or a salvage certificate for any
17title.
18(Source: P.A. 99-118, eff. 1-1-16; 99-324, eff. 1-1-16;
1999-642, eff. 7-28-16.)
 
20    (625 ILCS 5/5-401.2)  (from Ch. 95 1/2, par. 5-401.2)
21    Sec. 5-401.2. Licensees required to keep records and make
22inspections.
23    (a) Every person licensed or required to be licensed under
24Section 5-101, 5-101.1, 5-101.2, 5-102, 5-102.8, 5-301, or
255-302 of this Code, shall, with the exception of scrap

 

 

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1processors, maintain for 3 years, in a form as the Secretary of
2State may by rule or regulation prescribe, at his established
3place of business, additional place of business, or principal
4place of business if licensed under Section 5-302, the
5following records relating to the acquisition or disposition
6of vehicles and their essential parts possessed in this State,
7brought into this State from another state, territory or
8country, or sold or transferred to another person in this
9State or in another state, territory, or country.
10        (1) The following records pertaining to new or used
11    vehicles shall be kept:
12            (A) the year, make, and model, style and color of
13        the vehicle;
14            (B) the vehicle's manufacturer's identification
15        number or, if applicable, the Secretary of State or
16        Illinois Department of State Police identification
17        number;
18            (C) the date of acquisition of the vehicle;
19            (D) the name and address of the person from whom
20        the vehicle was acquired and, if that person is a
21        dealer, the Illinois or out-of-state dealer license
22        number of such person;
23            (E) (blank); the signature of the person making
24        the inspection of a used vehicle as required under
25        subsection (d) of this Section, if applicable;
26            (F) (blank); the purchase price of the vehicle, if

 

 

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1        applicable;
2            (G) the date of the disposition of the vehicle;
3            (H) the name and address of the person to whom any
4        vehicle was disposed, and if that person is a dealer,
5        the Illinois or out-of-State dealer's license number
6        of that dealer;
7            (I) the uniform invoice number reflecting the
8        disposition of the vehicle, if applicable; and
9            (J) (blank). The sale price of the vehicle, if
10        applicable.
11        (2) (A) The following records pertaining to used
12    essential parts other than quarter panels and
13    transmissions of vehicles of the first division shall be
14    kept:
15            (i) the year, make, and model, color and type of
16        such part;
17            (ii) the vehicle's manufacturer's identification
18        number, derivative number, or, if applicable, the
19        Secretary of State or Illinois Department of State
20        Police identification number of such part;
21            (iii) (blank); the date of the acquisition of each
22        part;
23            (iv) (blank); the name and address of the person
24        from whom the part was acquired and, if that person is
25        a dealer, the Illinois or out-of-state dealer license
26        number of such person; if the essential part being

 

 

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1        acquired is from a person other than a dealer, the
2        licensee shall verify and record that person's
3        identity by recording the identification numbers from
4        at least two sources of identification, one of which
5        shall be a drivers license or State identification
6        card;
7            (v) the uniform invoice number or out-of-state
8        bill of sale number reflecting the acquisition of such
9        part;
10            (vi) the stock number assigned to the essential
11        part by the licensee, if applicable;
12            (vii) (blank); the date of the disposition of such
13        part;
14            (viii) the name and address of the person to whom
15        such part was disposed of and, if that person is a
16        dealer, the Illinois or out-of-state dealer license
17        number of that person;
18            (ix) the uniform invoice number reflecting the
19        disposition of such part.
20        (B) Inspections of all essential parts shall be
21    conducted in accordance with Section 5-402.1.
22        (C) A separate entry containing all of the information
23    required to be recorded in subparagraph (A) of paragraph
24    (2) of subsection (a) of this Section shall be made for
25    each separate essential part. Separate entries shall be
26    made regardless of whether the part was a large purchase

 

 

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1    acquisition. In addition, a separate entry shall be made
2    for each part acquired for immediate sale or transfer, or
3    for placement into the overall inventory or stock to be
4    disposed of at a later time, or for use on a vehicle to be
5    materially altered by the licensee, or acquired for any
6    other purpose or reason. Failure to make a separate entry
7    for each essential part acquired or disposed of, or a
8    failure to record any of the specific information required
9    to be recorded concerning the acquisition or disposition
10    of each essential part as set forth in subparagraph (A) of
11    paragraph (2) of subsection (a) shall constitute a failure
12    to keep records.
13        (D) The vehicle's manufacturer's identification number
14    or Secretary of State or Illinois Department of State
15    Police identification number for the essential part shall
16    be ascertained and recorded even if such part is acquired
17    from a person or dealer located in a State, territory, or
18    country which does not require that such information be
19    recorded. If the vehicle's manufacturer's identification
20    number or Secretary of State or Illinois Department of
21    State Police identification number for an essential part
22    cannot be obtained, that part shall not be acquired by the
23    licensee or any of his agents or employees shall promptly
24    notify law enforcement authorities of the finding. If such
25    part or parts were physically acquired by the licensee or
26    any of his agents or employees while the licensee or agent

 

 

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1    or employee was outside this State, that licensee or agent
2    or employee was outside the State, that licensee, agent or
3    employee shall not bring such essential part into this
4    State or cause it to be brought into this State. The
5    acquisition or disposition of an essential part by a
6    licensee without the recording of the vehicle
7    identification number or Secretary of State identification
8    number for such part or the transportation into the State
9    by the licensee or his agent or employee of such part or
10    parts shall constitute a failure to keep records.
11        (E) The records of essential parts required to be kept
12    by this Section shall apply to all hulks, chassis, frames
13    or cowls, regardless of the age of those essential parts.
14    The records required to be kept by this Section for
15    essential parts other than hulks, chassis, frames or
16    cowls, shall apply only to those essential parts which are
17    3 6 model years of age or newer. In determining the model
18    year of such an essential part it may be presumed that the
19    identification number of the vehicle from which the
20    essential part came or the identification number affixed
21    to the essential part itself acquired by the licensee
22    denotes the model year of that essential part. This
23    presumption, however, shall not apply if the gross
24    appearance of the essential part does not correspond to
25    the year, make or model of either the identification
26    number of the vehicle from which the essential part is

 

 

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1    alleged to have come or the identification number which is
2    affixed to the essential part itself. To determine whether
3    an essential part is 3 6 years of age or newer within this
4    paragraph, the model year of the essential part shall be
5    subtracted from the calendar year in which the essential
6    part is acquired or disposed of by the licensee. If the
7    remainder is 3 6 or less, the record of the acquisition or
8    disposition of that essential part shall be kept as
9    required by this Section.
10        (F) The requirements of paragraph (2) of subsection
11    (a) of this Section shall not apply to the disposition of
12    an essential part other than a cowl which has been damaged
13    or altered to a state in which it can no longer be returned
14    to a usable condition and which is being sold or
15    transferred to a scrap processor or for delivery to a
16    scrap processor.
17    (3) the following records for vehicles on which junking
18certificates are obtained shall be kept:
19        (A) the year, make, and model, style and color of the
20    vehicle;
21        (B) the vehicle's manufacturer's identification number
22    or, if applicable, the Secretary of State or Illinois
23    Department of State Police identification number;
24        (C) the date the vehicle was acquired;
25        (D) the name and address of the person from whom the
26    vehicle was acquired and, if that person is a dealer, the

 

 

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1    Illinois or out-of-state dealer license number of that
2    person;
3        (E) the certificate of title number, junking
4    certificate number, electronic junk vehicle record, or
5    salvage certificate number for the vehicle, if applicable;
6        (F) (blank); the junking certificate number obtained
7    by the licensee; this entry shall be recorded at the close
8    of business of the fifth business day after receiving the
9    junking certificate;
10        (G) (blank); the name and address of the person to
11    whom the junking certificate has been assigned, if
12    applicable, and if that person is a dealer, the Illinois
13    or out-of-state dealer license number of that dealer;
14        (H) (blank). if the vehicle or any part of the vehicle
15    is dismantled for its parts to be disposed of in any way,
16    or if such parts are to be used by the licensee to
17    materially alter a vehicle, those essential parts shall be
18    recorded and the entries required by paragraph (2) of
19    subsection (a) shall be made.
20    (4) The following records for rebuilt vehicles shall be
21kept:
22        (A) the year, make, and model, style and color of the
23    vehicle;
24        (B) the vehicle's manufacturer's identification number
25    of the vehicle or, if applicable, the Secretary of State
26    or Illinois Department of State Police identification

 

 

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1    number;
2        (C) the date the vehicle was acquired;
3        (D) the name and address of the person from whom the
4    vehicle was acquired, and if that person is a dealer, the
5    Illinois or out-of-state dealer license number of that
6    person;
7        (E) the salvage certificate number for the vehicle;
8        (F) the newly issued certificate of title number for
9    the vehicle;
10        (G) the date of disposition of the vehicle;
11        (H) the name and address of the person to whom the
12    vehicle was disposed, and if a dealer and , the Illinois or
13    out-of-state dealer license number of that dealer;
14        (I) (blank). The sale price of the vehicle.
15    (a-1) A person licensed or required to be licensed under
16Section 5-101 or Section 5-102 of this Code who issues
17temporary registration permits as permitted by this Code and
18by rule must electronically file the registration with the
19Secretary and must maintain records of the registration in the
20manner prescribed by the Secretary.
21    (b) A failure to make separate entries for each vehicle
22acquired, disposed of, or assigned, or a failure to record any
23of the specific information required to be recorded concerning
24the acquisition or disposition of each vehicle as set forth in
25paragraphs (1), (3) and (4) of subsection (a) shall constitute
26a failure to keep records.

 

 

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1    (c) All entries relating to the acquisition of a vehicle
2or essential part required by subsection (a) of this Section
3shall be recorded no later than the close of business on the
4seventh calendar day following such acquisition. All entries
5relating to the disposition of a vehicle or an essential part
6shall be made at the time of such disposition. If the vehicle
7or essential part was disposed of on the same day as its
8acquisition or the day thereafter, the entries relating to the
9acquisition of the vehicle or essential part shall be made at
10the time of the disposition of the vehicle or essential part.
11Failure to make the entries required in or at the times
12prescribed by this subsection following the acquisition or
13disposition of such vehicle or essential part shall constitute
14a failure to keep records.
15    (d) Every person licensed or required to be licensed
16shall, before accepting delivery of a used vehicle, inspect
17the vehicle to determine whether the manufacturer's public
18vehicle identification number has been defaced, destroyed,
19falsified, removed, altered, or tampered with in any way. If
20the person making the inspection determines that the
21manufacturer's public vehicle identification number has been
22altered, removed, defaced, destroyed, falsified or tampered
23with, the person he shall not acquire that vehicle but instead
24shall promptly notify law enforcement authorities of the his
25finding.
26    (e) The information required to be kept in subsection (a)

 

 

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1of this Section shall be kept in a manner prescribed by rule or
2regulation of the Secretary of State.
3    (f) Every person licensed or required to be licensed shall
4have in his or her possession a separate certificate of title,
5salvage certificate, junking certificate, certificate of
6purchase, uniform invoice, out-of-state bill of sale,
7electronic junk vehicle record or other acceptable documentary
8evidence of his or her right to the possession of every vehicle
9or essential part.
10    (g) (Blank). Every person licensed or required to be
11licensed as a transporter under Section 5-201 shall maintain
12for 3 years, in such form as the Secretary of State may by rule
13or regulation prescribe, at his principal place of business a
14record of every vehicle transported by him, including numbers
15of or other marks of identification thereof, the names and
16addresses of persons from whom and to whom the vehicle was
17delivered and the dates of delivery.
18    (h) No later than 15 days prior to going out of business,
19selling the business, or transferring the ownership of the
20business, the licensee shall notify the Secretary of State
21that he is going out of business or that he is transferring the
22ownership of the business. Failure to notify under this
23paragraph shall constitute a failure to keep records.
24    (i) (Blank).
25    (j) A person who knowingly fails to comply with the
26provisions of this Section or knowingly fails to obey,

 

 

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1observe, or comply with any order of the Secretary or any law
2enforcement agency issued in accordance with this Section is
3guilty of a Class B misdemeanor for the first violation and a
4Class A misdemeanor for the second and subsequent violations.
5Each violation constitutes a separate and distinct offense and
6a separate count may be brought in the same indictment or
7information for each vehicle or each essential part of a
8vehicle for which a record was not kept as required by this
9Section.
10    (k) Any person convicted of failing to keep the records
11required by this Section with intent to conceal the identity
12or origin of a vehicle or its essential parts or with intent to
13defraud the public in the transfer or sale of vehicles or their
14essential parts is guilty of a Class 2 felony. Each violation
15constitutes a separate and distinct offense and a separate
16count may be brought in the same indictment or information for
17each vehicle or essential part of a vehicle for which a record
18was not kept as required by this Section.
19    (l) A person may not be criminally charged with or
20convicted of both a knowing failure to comply with this
21Section and a knowing failure to comply with any order, if both
22offenses involve the same record keeping violation.
23    (m) The Secretary shall adopt rules necessary for
24implementation of this Section, which may include the
25imposition of administrative fines.
26(Source: P.A. 101-505, eff. 1-1-20.)
 

 

 

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1    (625 ILCS 5/5-402)  (from Ch. 95 1/2, par. 5-402)
2    Sec. 5-402. Use of Department of Revenue Uniform Invoice
3for vehicle. Every person licensed as a new vehicle dealer, as
4a used vehicle dealer, or as a motor vehicle financing
5affiliate shall issue a Uniform Invoice with respect to each
6transaction wherein he disposes of a vehicle, except that
7where, in the same transaction, a vehicle dealer transfers
8more than one vehicle to another vehicle dealer for the
9purpose of resale, such seller for resale may issue one
10Uniform Invoice to the purchaser covering all the vehicles
11involved in that transaction and may report the transfer of
12all the vehicles involved in that transaction to the
13Department on the same Uniform Invoice-transaction reporting
14return form. Every person licensed as a rebuilder shall
15likewise issue a Uniform Invoice with respect to each
16transaction wherein he disposes of a rebuilt or restored
17vehicle. Such Uniform Invoice shall be the same document as
18the transaction reporting return referred to in Section 3 of
19the Retailers' Occupation Tax Act. Such Uniform Invoice shall
20contain complete financial details of the transaction in such
21form as shall be prescribed by the Department of Revenue. Such
22Uniform Invoice shall include an affidavit by both the seller
23and the buyer that any trade-in title has been properly
24assigned from the buyer to the seller and that all information
25on the Uniform Invoice-transaction reporting return is true

 

 

HB2528- 28 -LRB102 15764 RAM 21131 b

1and accurate.
2(Source: P.A. 91-415, eff. 1-1-00.)
 
3    (625 ILCS 5/5-402.1)  (from Ch. 95 1/2, par. 5-402.1)
4    Sec. 5-402.1. Use of Secretary of State Uniform Invoice
5for Essential Parts.
6    (a) Except for scrap processors, every person licensed or
7required to be licensed under Section 5-101, 5-101.1, 5-102,
85-102.8, or 5-301 of this Code shall issue, in a form the
9Secretary of State may by rule or regulation prescribe, a
10Uniform Invoice, which may also act as a bill of sale, made out
11in triplicate with respect to each transaction in which he
12disposes of an essential part other than quarter panels and
13transmissions of vehicles of the first division. Such Invoice
14shall be made out at the time of the disposition of the
15essential part. If the licensee disposes of several essential
16parts in the same transaction, the licensee may issue one
17Uniform Invoice covering all essential parts disposed of in
18that transaction.
19    (b) The following information shall be contained on the
20Uniform Invoice:
21        (1) the business name, address and dealer license
22    number of the person disposing of the essential part;
23        (2) the name and address of the person acquiring the
24    essential part, and if that person is a dealer, the
25    Illinois or out-of-state dealer license number of that

 

 

HB2528- 29 -LRB102 15764 RAM 21131 b

1    dealer;
2        (3) the date of the disposition of the essential part;
3        (4) the year, make, model, color and description of
4    each essential part disposed of by the person;
5        (5) the manufacturer's vehicle identification number,
6    Secretary of State identification number or Illinois
7    Department of State Police identification number, for each
8    essential part disposed of by the person;
9        (6) (blank); and the printed name and legible
10    signature of the person or agent disposing of the
11    essential part; and
12        (7) (blank). if the person is a dealer the printed
13    name and legible signature of the dealer or his agent or
14    employee accepting delivery of the essential part.
15    (c) Except for scrap processors, and except as set forth
16in subsection (d) of this Section, whenever a person licensed
17or required to be licensed by Section 5-101, 5-101.1, 5-102,
18or 5-301 accepts delivery of an essential part, other than
19quarter panels and transmissions of vehicles of the first
20division, that person shall, at the time of the acceptance or
21delivery, comply with the following procedures:
22        (1) Before acquiring or accepting delivery of any
23    essential part, the licensee or an his authorized agent or
24    employee shall inspect the part to determine whether the
25    vehicle identification number, Secretary of State
26    identification number, Illinois Department of State Police

 

 

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1    identification number, or identification plate or sticker
2    attached to or stamped on any part being acquired or
3    delivered has been removed, falsified, altered, defaced,
4    destroyed, or tampered with. If the licensee or his agent
5    or employee determines that the vehicle identification
6    number, Secretary of State identification number, Illinois
7    Department of State Police identification number,
8    identification plate or identification sticker containing
9    an identification number, or Federal Certificate label of
10    an essential part has been removed, falsified, altered,
11    defaced, destroyed or tampered with, the licensee or agent
12    shall promptly notify law enforcement authorities of the
13    finding not accept or receive that part.
14        If that part was physically acquired by or delivered
15    to a licensee or his agent or employee while that
16    licensee, agent or employee was outside this State, that
17    licensee or agent or employee shall not bring that
18    essential part into this State or cause it to be brought
19    into this State.
20        (2) If the person disposing of or delivering the
21    essential part to the licensee is a licensed in-state or
22    out-of-state dealer, the licensee or an his agent or
23    employee, after inspecting the essential part as required
24    by paragraph (1) of this subsection (c), shall examine the
25    Uniform Invoice, or bill of sale, as the case may be, to
26    ensure that it contains all the information required to be

 

 

HB2528- 31 -LRB102 15764 RAM 21131 b

1    provided by persons disposing of essential parts as set
2    forth in subsection (b) of this Section. If the Uniform
3    Invoice or bill of sale does not contain all the
4    information required to be listed by subsection (b) of
5    this Section, the dealer disposing of or delivering such
6    part or an his agent or employee shall record such
7    additional information or other needed modifications on
8    the Uniform Invoice or bill of sale or, if needed, an
9    attachment thereto. The dealer or an his agent or employee
10    delivering the essential part shall initial all additions
11    or modifications to the Uniform Invoice or bill of sale
12    and legibly print his name at the bottom of each document
13    containing his initials. If the transaction involves a
14    bill of sale rather than a Uniform Invoice, the licensee
15    or his agent or employee accepting delivery of or
16    acquiring the essential part shall affix the his printed
17    name and legible signature of the licensee or agent or
18    employee on the space on the bill of sale provided for a
19    his signature or, if no space is provided, on the back of
20    the bill of sale. If the dealer or his agent or employee
21    disposing of or delivering the essential part cannot or
22    does not provide all the information required by
23    subsection (b) of this Section, the licensee or his agent
24    or employee shall promptly notify law enforcement
25    authorities of the finding. not accept or receive any
26    essential part for which that required information is not

 

 

HB2528- 32 -LRB102 15764 RAM 21131 b

1    provided. If such essential part for which the information
2    required is not fully provided was physically acquired
3    while the licensee or his agent or employee was outside
4    this State, the licensee or his agent or employee shall
5    not bring that essential part into this State or cause it
6    to be brought into this State.
7        (3) If the person disposing of the essential part is
8    not a licensed dealer, the licensee or an his agent or
9    employee shall, after inspecting the essential part as
10    required by paragraph (1) of subsection (c) of this
11    Section verify the identity of the person disposing of the
12    essential part by examining 2 sources of identification,
13    one of which shall be either a driver's license or state
14    identification card. The licensee or his agent or employee
15    shall then prepare a Uniform Invoice listing all the
16    information required to be provided by subsection (b) of
17    this Section. In the space on the Uniform Invoice provided
18    for the dealer license number of the person disposing of
19    the part, the licensee or his agent or employee shall list
20    the numbers taken from the documents of identification
21    provided by the person disposing of the part. The person
22    disposing of the part shall affix the his printed name and
23    legible signature of the person disposing of the part on
24    the space on the Uniform Invoice provided for the person
25    disposing of the essential part and the licensee or his
26    agent or employee acquiring the part shall affix the his

 

 

HB2528- 33 -LRB102 15764 RAM 21131 b

1    printed name and legible signature of the person acquiring
2    the part on the space provided on the Uniform Invoice for
3    the person acquiring the essential part. If the person
4    disposing of the essential part cannot or does not provide
5    all the information required to be provided by this
6    paragraph, or does not present 2 satisfactory forms of
7    identification, the licensee or his agent or employee
8    shall not acquire that essential part and shall promptly
9    notify law enforcement authorities of the finding.
10    (d) If an essential part other than quarter panels and
11transmissions of vehicles of the first division was delivered
12by a licensed commercial delivery service delivering such part
13on behalf of a licensed dealer, the person required to comply
14with subsection (c) of this Section may conduct the inspection
15of that part required by paragraph (1) of subsection (c) and
16examination of the Uniform Invoice or bill of sale required by
17paragraph (2) of subsection (c) of this Section immediately
18after the acceptance of the part.
19        (1) If the inspection of the essential part pursuant
20    to paragraph (1) of subsection (c) reveals that the
21    vehicle identification number, Secretary of State
22    identification number, Illinois Department of State Police
23    identification number, identification plate or sticker
24    containing an identification number, or Federal
25    Certificate label of an essential part has been removed,
26    falsified, altered, defaced, destroyed or tampered with,

 

 

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1    the licensee or an his agent shall immediately record such
2    fact on the Uniform Invoice or bill of sale, assign the
3    part an inventory or stock number, place such inventory or
4    stock number on both the essential part and the Uniform
5    Invoice or bill of sale, and record the date of the
6    inspection of the part on the Uniform Invoice or bill of
7    sale. The licensee shall, within 7 days of such
8    inspection, return such part to the dealer from whom it
9    was acquired and shall promptly notify law enforcement
10    authorities of the finding.
11        (2) If the examination of the Uniform Invoice or bill
12    of sale pursuant to paragraph (2) of subsection (c)
13    reveals that any of the information required to be listed
14    by subsection (b) of this Section is missing, the licensee
15    or person required to be licensed shall immediately assign
16    a stock or inventory number to such part, place such stock
17    or inventory number on both the essential part and the
18    Uniform Invoice or bill of sale, and record the date of
19    examination on the Uniform Invoice or bill of sale. The
20    licensee or person required to be licensed shall acquire
21    the information missing from the Uniform Invoice or bill
22    of sale within 7 days of the examination of such Uniform
23    Invoice or bill of sale. Such information may be received
24    by telephone conversation with the dealer from whom the
25    part was acquired. If the dealer provides the missing
26    information the licensee shall record such information on

 

 

HB2528- 35 -LRB102 15764 RAM 21131 b

1    the Uniform Invoice or bill of sale along with the name of
2    the person providing the information. If the dealer does
3    not provide the required information within the
4    aforementioned 7 day period, the licensee shall return the
5    part to that dealer and shall promptly notify law
6    enforcement authorities of the finding.
7    (e) Except for scrap processors, all persons licensed or
8required to be licensed who acquire or dispose of essential
9parts other than quarter panels and transmissions of vehicles
10of the first division shall retain a copy of the Uniform
11Invoice required to be made by subsections (a), (b) and (c) of
12this Section for a period of 3 years.
13    (f) Except for scrap processors, any person licensed or
14required to be licensed under Sections 5-101, 5-102 or 5-301
15who knowingly fails to record on a Uniform Invoice any of the
16information or entries required to be recorded by subsections
17(a), (b) and (c) of this Section, or who knowingly places false
18entries or other misleading information on such Uniform
19Invoice, or who knowingly fails to retain for 3 years a copy of
20a Uniform Invoice reflecting transactions required to be
21recorded by subsections (a), (b) and (c) of this Section, or
22who knowingly acquires or disposes of essential parts without
23receiving, issuing, or executing a Uniform Invoice reflecting
24that transaction as required by subsections (a), (b) and (c)
25of this Section, or who brings or causes to be brought into
26this State essential parts for which the information required

 

 

HB2528- 36 -LRB102 15764 RAM 21131 b

1to be recorded on a Uniform Invoice is not recorded as
2prohibited by subsection (c) of this Section, or who knowingly
3fails to comply with the provisions of this Section in any
4other manner shall be guilty of a Class 2 felony. Each
5violation shall constitute a separate and distinct offense and
6a separate count may be brought in the same indictment or
7information for each essential part for which a record was not
8kept as required by this Section or for which the person failed
9to comply with other provisions of this Section.
10    (g) The records required to be kept by this Section may be
11examined by officers of the Secretary of State's Department of
12Police a person or persons making a lawful inspection of the
13licensee's premises pursuant to Section 5-403.
14    (h) The records required to be kept by this Section shall
15be retained by the licensee at the his principal place of
16business of the licensee for a period of 3 7 years.
17    (i) The requirements of this Section shall not apply to
18the disposition of an essential part other than a cowl which
19has been damaged or altered to a state in which it can no
20longer be returned to a usable condition and which is being
21sold or transferred to a scrap processor or for delivery to a
22scrap processor.
23(Source: P.A. 101-505, eff. 1-1-20.)