ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2239: used vehicle sales; title; dealers |
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PRIME SPONSOR: Representative Biasiucci, LD 5 BILL STATUS: Conference
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Modifies the
timeline for a licensed motor vehicle dealer to apply for a certificate of title
and eliminates title requirements relating to the sale of a vehicle.
History
Under current law, motor vehicle dealers are required to apply, in a form prescribed or authorized by the Arizona Department of Transportation (ADOT), for a certificate of title for a motor vehicle, trailer or semi-trailer within thirty days after the purchase or transfer (A.R.S § 28-2051).
Pursuant to A.R.S. § 28-4409, each dealer in motor vehicles, trailers and semitrailers, including manufactures who sell to other than dealers, having possession of or offering for sale a motor vehicle, trailer or semitrailer must have at the same time either:
1) Possession of a duly and regularly assigned certificate of title to the vehicle; or
2) Reasonable indicia of ownership of right of possession as approved by the Director of ADOT. Additionally, a dealer or manufacturer is prohibited from offering for sale or selling a motor vehicle, trailer or semitrailer until the dealer or manufacturer has obtained a certificate of title, except that a certificate of title is not required for a new motor vehicle sold by manufacturers to dealers.
Pursuant to A.R.S. § 44-1267, a seller is required to possess the title for a used motor vehicle and have the title in the seller's name before the seller can attempt to sell the vehicle.
Motor vehicle dealer is defined as a new motor vehicle dealer, a used motor vehicle dealer, a public consignment auction dealer, a broker or a wholesale motor vehicle auction dealer, excluding a person who comes into possession of a motor vehicle as an incident to the person's regular business and who sells, auctions or exchanges the motor vehicle.
Wholesale motor vehicle dealer is defined as a person who sells used motor vehicles only to licensed motor vehicle dealers (A.R.S § 28-4301).
Provisions
1. Modifies the timeline for a licensed motor vehicle dealer to complete an application for a certificate of title after a vehicle purchase or transfer as follows:
a. Requires the dealer to make a reasonable and well documented effort to complete the application for a certificate of title within 30 days; and
b. Requires the dealer to complete the application for certificate of title within 90 days of purchase or transfer. (Sec. 1)
2. Modifies the definition of motor vehicle dealer for the purposes of motor vehicle dealer requirements by:
a. removing broker; and
b. including wholesale motor vehicle dealer. (Sec. 2)
3. Eliminates the requirement for a seller to possess the title to a used motor vehicle and for the title be in their name before attempting to sell the vehicle. (Sec. 4)
4. Makes technical and conforming changes. (Sec. 3, 4, 5)
1. Modifies the timeline to complete the application from 90 days to 60 days.
2. Adds a delayed effective date of January 1, 2020.
Conference Committee Amendments:
1. Removes the requirement for a licensed motor vehicle dealer to make a reasonable and well documented effort to complete an application for a certificate of title within 30 days.
2. Removes the requirement for a dealer or manufacturer to obtain a certificate of title before offering for sale or selling a motor vehicle, trailer or semitrailer.
3. Makes a technical change.
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Fifty-fourth Legislature HB 2239
First Regular Session Version 5: Conference
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