The Property Casualty Insurers Association of America filed suit today in the Seventh Judicial Circuit Court of Illinois, challenging the constitutionality of the transfer of money designated to fight auto theft to the state's general revenue fund and other state funds.

Democratic Gov. Rod Blagojevich and other top state officials are named in the suit that requests the court to declare that removal of Motor Vehicle Theft Prevention Trust Fund assets to the state general revenue fund and other state funds violated the Illinois and United States constitutions.

PCI said it is requesting that transferred money be returned to the trust fund and that future diversion of funds be prohibited.

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 allocated to the Motor Vehicle Theft Prevention Trust Fund to pay for auto theft prevention programs.

The suit challenges the constitutionality of the transfer of more than $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."

Gov. Rod Blagojevich's office did not return a call for comment on the suit.

Special Reports /

Industry Fights Ill. Fund Transfer

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