Illinois General Assembly - Full Text of HB5439
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Full Text of HB5439  102nd General Assembly

HB5439sam002 102ND GENERAL ASSEMBLY

Sen. Antonio Muñoz

Filed: 3/31/2022

 

 


 

 


 
10200HB5439sam002LRB102 25485 NLB 38335 a

1
AMENDMENT TO HOUSE BILL 5439

2    AMENDMENT NO. ______. Amend House Bill 5439, AS AMENDED,
3with reference to page and line numbers of Senate Amendment
4No. 1, on page 1, line 4, after "by", by inserting "adding
5Section 3-117.5 and"; and
 
6on page 1, immediately below line 5, by inserting the
7following:
 
8    "(625 ILCS 5/3-117.5 new)
9    Sec. 3-117.5. Automatic processing of applications for
10salvage or junking certificates; salvage dealer; bond.
11    (a) Notwithstanding any other provision of law to the
12contrary and subject to the requirements of this Section, if a
13salvage dealer as defined under Section 3-117.3 posts annually
14a bond in the amount of $100,000, up to a maximum aggregate
15amount of $100,000, with the Secretary of State, the Secretary
16of State shall automatically process any properly submitted

 

 

10200HB5439sam002- 2 -LRB102 25485 NLB 38335 a

1application by the salvage dealer for a salvage certificate or
2junking certificate pursuant to Section 3-117.1 and issue the
3appropriate salvage certificate or junking certificate.
4    The Secretary of State Vehicle Services Department may
5conduct random samplings of automatically processed
6applications submitted by a salvage dealer under this Section
7to ensure that the salvage dealer's applications for salvage
8certificates or junking certificates are accurate.
9    Applications for salvage certificates or junking
10certificates submitted by a salvage dealer that are not
11accompanied by the most current certificate of title are not
12eligible for automatic processing, including, but not limited
13to, applications accompanied by an affidavit or a uniform
14invoice or certificate of purchase under Section 3-117.1.
15    (b) If a salvage dealer fails to properly submit
16applications for salvage certificates or junking certificates
17at an 85% rate of accuracy or greater, then the Secretary of
18State Vehicle Services Department may suspend that salvage
19dealer's right to automatic processing of applications for
20salvage certificates or junking certificates for a period of
21not less than 90 days. Prior to the initial suspension of a
22salvage dealer's right to automatic processing of applications
23for salvage certificates or junking certificates, the
24Secretary of State Vehicle Services Department shall provide
25notice to the salvage dealer of the processing errors or
26defects and provide the salvage dealer with an opportunity to

 

 

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1cure the processing errors or defects within a reasonable
2period, which shall not be less than 14 days.
3    If the same processing errors or defects that are
4contained in the initial notice to the salvage dealer are
5repeated a second time by a salvage dealer within a 12-month
6period from the date of the initial notice, then the Secretary
7of State Vehicle Services Department shall suspend that
8salvage dealer's right to automatic processing of applications
9for salvage certificates or junking certificates for a period
10of not less than 90 days.
11    If the same processing errors or defects that are
12contained in the initial notice to a salvage dealer are
13repeated a third time by the salvage dealer within a 12-month
14period from the date of the initial notice, then the Secretary
15of State Vehicle Services Department shall suspend that
16salvage dealer's right to automatic processing of applications
17for salvage certificates or junking certificates for a period
18of not less than 180 days.
19    (c) After a salvage dealer's right to automatic processing
20of applications for salvage certificates or junking
21certificates has been suspended and the applicable suspension
22period has been served, the salvage dealer may request
23reinstatement of the right to automatic processing of
24applications for salvage certificates or junking certificates
25by demonstrating to the Secretary of State Vehicle Services
26Department that the salvage dealer has corrected the

 

 

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1processing errors or defects that resulted in the suspension.
2The Secretary of State Vehicle Services Department, after
3meeting and conferring with the salvage dealer, shall have the
4sole discretion, subject to the appeal rights in subsection
5(d), to determine whether to grant the salvage dealer's
6request for reinstatement.
7    (d) A salvage dealer may appeal a suspension or a denial of
8a request for reinstatement of the right to automatic
9processing of applications for salvage certificates or junking
10certificates directly to the Secretary of State.
11    (e) The annual bond posted as required by this Section
12shall be held by the Secretary of State to secure compensation
13for an owner of a vehicle if it is determined that the salvage
14dealer caused the improper transfer of ownership of the
15vehicle without performing the required procedures set forth
16in this Chapter. After providing the salvage dealer with a
17reasonable opportunity to provide proof of its due diligence
18relating to the disputed transaction and after meeting and
19conferring with the salvage dealer, the Secretary of State
20Vehicle Services Department shall determine whether the
21certificate of title of the vehicle was improperly transferred
22out of the owner's name by the salvage dealer. This
23determination shall create a rebuttable presumption that the
24vehicle was improperly transferred out of the owner's name by
25the salvage dealer. Upon such a determination by the Secretary
26of State Vehicle Services Department, if the salvage dealer

 

 

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1does not compensate the vehicle owner for the value of the
2improperly transferred certificate of title, the owner of the
3vehicle shall have the right to seek reimbursement from the
4posted bond for the loss of the vehicle under a Court of Claims
5proceeding.
6    (f) The security deposited as an annual bond pursuant to
7this Section shall be placed by the Secretary of State in the
8custody of the State Treasurer. Thereafter, any person with a
9claim against the bond may enforce the claim through an
10appropriate proceeding in the Court of Claims, subject to the
11limitations prescribed for the Court of Claims.".