Bill Text: IL HB2856 | 2019-2020 | 101st General Assembly | Chaptered


Bill Title: Amends the Illinois Vehicle Code. Provides that, beginning on July 1, 2021, the (1) creation, distribution, and receipt of certificates, certifications, affidavits, applications, assignments, statements, notices, documents, and other records; (2) use of signatures; (3) delivery of records; and (4) payment of required fees shall be made in electronic form as those functions relate to the implementation and ongoing management and administration of an electronic lien and title system to process the electronic notation and release of security interests in motor vehicles. Provides that the Secretary of State may charge a fee of up to $1 for each electronic notation and release of security interest. Provides that the Secretary may contract with a private contractor to facilitate the electronic processes. Provides that, beginning on July 1, 2021, the Secretary shall (instead of "may") require a licensee to submit any record required to be submitted to the Secretary using electronic media deemed feasible by the Secretary and that electronic submittal, receipt, and delivery of records and electronic signatures shall be supported by a signed agreement between the Secretary and the submitter. Provides that, beginning on July 1, 2021, the Secretary shall provide electronic notification and perfection of the lienholder's security interest in a vehicle on the certificate of title. Deletes language requiring that a request for electronic notification and perfection be made by a lienholder submitter. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0490 [HB2856 Detail]

Download: Illinois-2019-HB2856-Chaptered.html



Public Act 101-0490
HB2856 EnrolledLRB101 09229 TAE 54323 b
AN ACT concerning transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Vehicle Code is amended by changing
Sections 3-100.1 and 3-100.2 as follows:
(625 ILCS 5/3-100.1)
Sec. 3-100.1. Use of electronic records.
(a) To the extent authorized by the Secretary of State and
in accordance with standards and procedures prescribed by the
Secretary of State:
(1) Certificates, certifications, affidavits,
applications, assignments, statements, notices, documents,
and other records required under this Chapter may be
created, distributed, and received in electronic form.
(2) Signatures required under this Chapter may be made
as electronic signatures or may be waived.
(3) Delivery of records required under this Chapter may
be made by any means, including electronic delivery.
(4) Fees and taxes required to be paid under this
Chapter may be made by electronic means; provided that any
forms, records, electronic records, and methods of
electronic payment relating to the filing and payment of
taxes shall be prescribed by the Department of Revenue.
(a-5) No later than July 1, 2021, the Secretary of State
shall implement, manage, and administer an electronic lien and
title system that will permit a lienholder to perfect, assign,
and release a lien under this Code. The system may include the
points in subsection (a) as to the identified objectives of the
program. The Secretary shall establish by administrative rule
the standards and procedures relating to the management and
implementation of the mandatory electronic lien and title
system established under this subsection. The Secretary may
charge a reasonable fee for performing the services and
functions relating to the management and administration of the
system. The fee shall be set by administrative rule adopted by
the Secretary.
(b) Electronic records accepted by the Secretary of State
have the same force and effect as records created on paper by
writing, typing, printing, or similar means. The procedures
established by the Secretary of State concerning the acceptance
of electronic filings and electronic records shall ensure that
the electronic filings and electronic records are received and
stored accurately and that they are readily available to
satisfy any statutory requirements that call for a written
record.
(c) Electronic signatures accepted by the Secretary of
State shall have the same force and effect as manual
signatures.
(d) Electronic delivery of records accepted by the
Secretary of State shall have the same force and effect as
physical delivery of records.
(e) Electronic records and electronic signatures accepted
by the Secretary of State shall be admissible in all
administrative, quasi-judicial, and judicial proceedings. In
any such proceeding, nothing in the application of the rules of
evidence shall apply so as to deny the admissibility of an
electronic record or electronic signature into evidence on the
sole ground that it is an electronic record or electronic
signature, or on the grounds that it is not in its original
form or is not an original. Information in the form of an
electronic record shall be given due evidentiary weight by the
trier of fact.
(f) The Secretary may contract with a private contractor to
carry out the Secretary's duties under this Section.
(Source: P.A. 91-772, eff. 1-1-01.)
(625 ILCS 5/3-100.2)
Sec. 3-100.2. Electronic access; agreements with
submitters.
(a) No later than July 1, 2021, the The Secretary of State
shall may require a licensee under Chapter 3 or 5 of this Code
to submit any record required to be submitted to the Secretary
of State by using electronic media deemed feasible by the
Secretary of State. , in addition to requiring the actual
submittal of The Secretary of State may also require the
licensee to submit the original paper record. The Secretary of
State shall may also require allow a person or licensee to
receive any record to be provided by the Secretary of State by
using electronic media deemed feasible by the Secretary of
State, instead of providing the original paper record.
(b) No later than July 1, 2021, electronic Electronic
submittal, receipt, and delivery of records and electronic
signatures shall may be authorized or accepted by the Secretary
of State, when supported by a signed agreement between the
Secretary of State and the submitter. The agreement shall
require, at a minimum, each record to include all information
necessary to complete a transaction, certification by the
submitter upon its best knowledge as to the truthfulness of the
data to be submitted to the Secretary of State, and retention
by the submitter of supporting records.
(c) No later than July 1, 2021, the The Secretary of State
shall may establish minimum transaction volume levels, audit
and security standards, technological requirements, and other
terms and conditions he or she deems necessary for approval of
the electronic delivery process.
(d) When an agreement is made to accept electronic records,
the Secretary of State shall not be required to produce a
written record for the submitter with whom the Secretary of
State has the agreement until requested to do so by the
submitter.
(e) No later than July 1, 2021 Upon the request of a
lienholder submitter, the Secretary of State shall provide
electronic notification to the lienholder submitter to verify
the notation and perfection of the lienholder's security
interest in a vehicle on for which the certificate of title
required to be created as is an electronic record under Section
3-100.1. Upon receipt of an electronic message from a
lienholder submitter with a security interest in a vehicle for
which the certificate of title is an electronic record that the
lien should be released, the Secretary of State shall enter the
appropriate electronic record of the release of lien and print
and mail a paper certificate of title to the owner or
lienholder at no expense. The Secretary of State may also mail
the certificate to any other person that delivers to the
Secretary of State an authorization from the owner to receive
the certificate. If another lienholder holds a properly
perfected security interest in the vehicle as reflected in the
records of the Secretary of State, the certificate shall be
delivered to that lienholder instead of the owner.
(f) The Secretary may contract with a private contractor to
carry out the Secretary's duties under this Section.
(Source: P.A. 97-838, eff. 7-20-12.)
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