Assigned to TRANSIT & APPROP AS
PASSED BY COW
Assigned to TRANSIT & APPROP AS
PASSED BY COW
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
AMENDED
auto dealers; task force; fund
Purpose
Establishes the Unlicensed Motor Vehicle Dealer Enforcement Task Force (Task Force).
Background
The Director of the Arizona Department of Transportation (ADOT) may impose a civil penalty between $1,000 and $3,000 for a violation of a licensed motor vehicle dealer or automotive recycler and requires a person pay all transaction privilege taxes on motor vehicle sales that were conducted in violation of any licensing regulation state law or rule adopted by ADOT. A person is required to pay the civil penalty imposed to ADOT within 30 days and is subject to a court hearing if there is a failure to pay. The Director of ADOT is required to deposit all monies collected from the civil penalties into the State Highway Fund (A.R.S. §§ 28-4304 and 28-4501).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Establishes the Task Force in ADOT to consist of the following members:
a) three members from ADOT appointed by the Director of ADOT;
b) three members from the Department of Revenue (DOR) appointed by the Director of DOR; and
c) three members who represent an independent automobile dealers' association in Arizona appointed by the Director of ADOT.
2. Requires the Task Force to meet at least quarterly through July 1, 2026, to review unlicensed motor vehicle dealer enforcement activities in Arizona and submit a quarterly report to the Director of ADOT and the Secretary of State of the findings.
3. Establishes the Motor Vehicle Dealer Enforcement Fund (Fund) administered by ADOT, consisting of civil penalties from licensed or unlicensed motor vehicle dealer activity and subjects the Fund to legislative appropriations.
4. Requires the Director of ADOT to deposit monies collected from civil penalties for licensed or unlicensed motor vehicle dealer activity into the Fund.
5. Requires the Director of ADOT to deposit unexpended and unencumbered monies exceeding $250,000 into the State Highway Fund at the end of each fiscal year.
6. Makes a conforming change.
7. Becomes effective on the general effective date.
Amendments Adopted by the Committee of the Whole
· Subjects the Fund to legislative appropriation, rather than monies being continuously appropriated.
House Action Senate Action
TI 2/14/18 DP 7-0-0-1 TRANSIT 3/13/18 DP 7-0-0
3rd Read 2/21/18 54-5-1 APPROP 3/20/18 DP 8-1-1
Prepared by Senate Research
April 9, 2018
KN/CU/lb