ARIZONA STATE SENATE
Forty-eighth Legislature, First Regular Session
FINAL AMENDED
FACT SHEET FOR H.B. 2753
vehicle impoundment and immobilization
Purpose
Makes numerous changes relating to vehicle impoundment and immobilization statutes. Requires a law enforcement officer to impound a vehicle if the driver’s license is revoked or suspended for any reason.
Background
Currently, statute requires a law enforcement officer to remove and either immobilize or impound a vehicle if the driver is unlicensed or driving with a revoked license, a license suspended due to conviction for driving under the influence, driving with an invalid license, reckless driving, causing an accident or other moving violations. Vehicles are impounded for 30 days.
An impounded vehicle may be released before the end of the 30-day period to the registered owner if the vehicle is stolen or if the owner can produce evidence that the owner’s driving privilege has been reinstated, or to a financial institution with a security interest in the vehicle, or to a business if the impounded vehicle was driven by an employee. A vehicle may be released to the spouse of an owner or another person identified as the owner if the person was not driving the vehicle when it was impounded. The spouse or person must enter an agreement with the impoundment agency, which stipulates that if the vehicle is impounded again for being driven by an unlicensed driver, the spouse or person will not be able to obtain early release of the vehicle.
At the end of the 30-day impoundment, the owner or the owner’s spouse may claim a vehicle by presenting a valid driver license and proof of registration and paying the impoundment charges associated with the vehicle (which are not to exceed $15 per day or $150 in administrative charges).
Owners of an impounded vehicle may receive a hearing in a justice court. Impoundment agencies are required to establish procedures for immobilization or post-storage hearings to release vehicles and impose impoundment charges. Owners must be notified that their vehicle has been impounded and have ten days to request a hearing.
If a vehicle is unclaimed at the end of 30 days, the person in possession of the vehicle must file an abandoned vehicle report.
There is no anticipated impact to the state General Fund associated with this legislation. There may be a minimal fiscal impact to counties and municipalities due to an increase in impounded vehicles. According to the City of Phoenix, it costs $160 in administrative charges to impound a vehicle, $150 of which is recouped by the city through payments made to release impounded vehicles.
Provisions
Impoundment of Vehicles
1. Requires a vehicle to be impounded if: a) the vehicle is driven by a person whose driving privilege is suspended or revoked for any reason or b) the person has not ever been issued a valid driver license by this state and cannot produce evidence of having ever had a valid license issued by another jurisdiction.
2. Allows a vehicle driven by a minor with liquor in the body, but who is not driving under the influence, to be impounded.
3. Allows a vehicle to be impounded if the driver is subject to an ignition interlock device (IID) order and the vehicle is not equipped with a functioning IID, unless the vehicle is owned by the person’s employer or there is a substantial emergency.
Early Release of a Vehicle Before the End of the 30-day Impoundment Period
4. Specifies that an impounding agency must release a vehicle to the registered owner before the end of the 30-day impoundment period provided that the owner was operating the vehicle when it was seized and the owner’s driving privileges have been reinstated.
5. Clarifies that a spouse or other vehicle owner requesting early release of a vehicle must be listed as an owner in Motor Vehicle Division (MVD) records at the time the vehicle was impounded.
6. Stipulates that if a spouse or vehicle owner requests early release of the vehicle and enters into an agreement with the impounding agency prohibiting operation of the released vehicle by someone without a valid driving privilege, the spouse or other owner is ineligible for early release of the vehicle if it is subsequently impounded within one year.
7. Prohibits a justice court from ordering early release of an impounded vehicle.
8. Allows a valid salvage or dismantle title to be used as one of the documents required to secure early release of an impounded vehicle.
9. Requires proof of financial responsibility (e.g., vehicle insurance) to release a vehicle early.
10. Clarifies that if a vehicle is released to the owner’s spouse and the vehicle has not been stolen, the spouse is responsible for paying impoundment charges.
11. Allows a vehicle to be released early to a person who is not the owner if the person is in the business of renting motor vehicles, was not driving the vehicle when it was impounded and pays the impoundment charges on the vehicle.
12. Requires a rental agreement to be in effect when the vehicle was impounded in order to release a vehicle to a vehicle rental agency.
13. Specifies that a motor vehicle rental agency or vehicle dealer, bank, credit union or financial institution that has obtained early release of a formerly impounded vehicle may only release the vehicle to the owner who was driving it at the time of impoundment if the owner presents the following:
a) a driver license.
b) a current registration or salvage or dismantle title.
c) evidence of financial responsibility.
14. Stipulates that the release of a vehicle without the presentation of required evidence is a civil traffic violation with a penalty of $250.
Release of a Vehicle at the End of the 30-day Impoundment Period
15. Requires the owner of a vehicle to present a current registration or salvage title and evidence of financial responsibility for the vehicle to be released after the 30-day impoundment period.
16. Requires a person who takes possession of a vehicle unclaimed after 30 days in impoundment to obtain a vehicle release and pay all immobilization charges.
Access to Impounded Vehicles
17. Requires a towing company, storage yard or other facility that has possession of an impounded vehicle to allow an IID installer access to an impounded vehicle in order to remove an IID, as well as lien holders to assess the damage to a vehicle.
18. Allows an IID installer or lien holder who is denied access to a vehicle by a storage yard or facility to report the denial and request assistance from the impounding agency.
19. Requires an impounding agency to provide assistance to an IID installer who has requested it in order to obtain access to the vehicle within five business days.
20. Requires a person requesting access to an impounded vehicle to include the person’s name, address, telephone number and either:
a) for a lien holder, a copy of a signed contract, loan agreement or other items certifying the person is a lien holder.
b) for an IID installer, a signed contract indicating the make and model or serial number of the IID or the vehicle identification number of the vehicle in which the IID is installed.
21. Creates a rebuttal presumption that damage to the vehicle or loss of personal property in the vehicle occurred while the vehicle was not in the custody of the towing company, storage yard or facility if the owner does not inspect the vehicle before removal of the IID by the manufacturer or installer, which may be overcome by a preponderance of the evidence to the contrary.
22. Clarifies that a cause of action is not created against a towing company, storage yard or other facility that has physical possession of the vehicle for allowing access to a vehicle to a person other than the owner if the written request is provided.
23. Prohibits a towing company, storage yard or other facility from charging a fee or requiring compensation from an installer for providing access to an impounded vehicle, and makes doing so a class 2 misdemeanor.
Immobilization Hearings and Administrative Charges
24. Directs cities and counties that collect administrative charges associated with impounded vehicles to transmit the charges to the city or county treasurers respectively, to be deposited in a fund used to facilitate impoundment and removal of unattended vehicles.
25. Specifies that the Department of Public Safety deposit administrative charges associated with impounded vehicles in the Arizona Highway Patrol Fund.
26. Extends the time in which an impoundment agency must send a notice to those with interest in the vehicle from two working days to three business days, excluding weekends and holidays.
27. Stipulates that an owner, spouse of an owner or other interested party has ten days to request an immobilization or post-storage hearing.
28. Allows an owner, spouse of the owner or other interested party to have a single hearing in the impounding agency or the justice court, but not both.
29. Makes technical and conforming changes.
30. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Allows a vehicle to be impounded for an IID violation.
2. Clarifies that if a person is required by MVD to install an IID, proof of installation is a condition of vehicle release.
3. Clarifies that impounding agencies must allow IID installers access to impounded vehicles during normal business hours.
4. Removes the provision allowing a vehicle to be impounded for an open container violation.
5. Removes a provision that requires a person claiming an abandoned vehicle to pay administrative charges.
Amendments Adopted by Committee of the Whole
1. Requires that notice of a suspended, canceled or revoked driver license be given by certified mail with a return receipt requested and clarifies that notice is effective only if the recipient of the notice certifies the delivery with a signature.
2. Allows a vehicle to be impounded if the driver at the time of impoundment is a registered owner of the vehicle and the driver has been properly notified of a license suspension, cancellation or revocation.
3. Requires the agency responsible for improperly impounding a vehicle to pay for the impounding charges.
Amendments Adopted by Conference Committee
1. Removes the requirement that mail notification of license suspension or revocation be through certified mail.
2. Adds the section allowing access to vehicle to IID installers and manufacturers and lien holders.
House Action Senate Action
TRANS 2/15/07 DP 10-0-0-0 TRANS 3/27/07 DPA 3-0-2-0
3rd Read 2/26/07 47-12-1-0 3rd Read 6/11/07 21-5-4-0
Final Read 6/20/07 50-4-6-0 Final Read 6/20/07 20-3-7-0
Signed by the Governor 7/2/07
Chapter 278
Prepared by Senate Research
July 11, 2007
DG/jas