CHICAGO, Ill., May 22 – The Property Casualty Insurers Association of America (PCI) has filed suit challenging the transfer of money, by the Illinois state government, from the Motor Vehicle Theft Prevention Trust Fund to the state general revenue fund and other state funds.

The suit, filed in the Seventh Judicial Circuit Court calls into question the constitutionality of this transfer, and names Governor Rod Blagojevich and other top state officials as defendants. PCI explained that it is requesting that the transferred money be returned to the trust fund and that future diversion of funds be prohibited.

According to PCI, the General Assembly established the Illinois Motor Vehicle Theft Prevention Council in 1991 to combat and reduce auto theft in the state.Since the creation of the council, $1 from each private passenger insurance policy sold in Illinois has been sent to the Motor Vehicle Theft Prevention Trust Fund to pay for auto theft prevention programs.The suit challenges the constitutionality of the transfer of over $7 million from the trust during fiscal years 2003, 2004, 2006, and 2007.

The money provided to the Illinois Motor Vehicle Theft Prevention Trust Fund was earmarked for the sole purpose of fighting auto theft, said Joseph Annotti, senior vice president, public affairs, for PCI.Despite the statutory limitations on the use of the fund, state government used the money for other programs and services.The act of creating the trust fund makes it clear that the money deposited should not be considered general revenue of the state.While we realize Illinois, like many other states, has faced economic challenges over the past few years, it is illegal to use these designated funds to address shortfalls in revenue.This inappropriate use of the fund hurts Illinois consumers by weakening the effort to prevent auto theft.In addition, diverting funds in this manner levies a hidden tax on all motorists.