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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
used vehicle sales; title; dealers
Purpose
Modifies requirements related to certificate of title applications and possession for licensed motor vehicle dealers and used motor vehicle dealers.
Background
Current statute requires a licensed motor vehicle dealer to make an application for a vehicle title within 30 days after the purchase or transfer of a vehicle, trailer or semi-trailer (A.R.S. § 28‑2051). A seller of a used motor vehicle is required to possess the title, in the seller's name, of the motor vehicle (A.R.S. § 44-1267). A dealer in motor vehicles, trailers or semi-trailers may offer to sell such vehicles if the dealer at the same time has either: 1) possession of a duly and regularly assigned certificate of title; or 2) reasonable indicia of ownership or right of possession as approved by the Director of the Arizona Department of Transportation (A.R.S. § 28-4409).
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).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a licensed motor vehicle dealer to complete an application for a certificate of title within 90 days, rather than 30 days, of the purchase or transfer of a vehicle, trailer or semi‑trailer.
2. Requires a licensed motor vehicle dealer to make a reasonable and well documented effort to complete the application within 30 days.
3. Removes the requirement that a used motor vehicle dealer possess the title to a used motor vehicle in the seller's name prior to attempting to sell a used motor vehicle.
4. Modifies the definition of motor vehicle dealer for the purposes of vehicle dealer requirements by replacing the term broker with wholesale motor vehicle dealer.
5. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
House Action
TRANS 2/6/19 DP 5-0-2-0
3rd Read 2/14/19 51-9-0
Prepared by Senate Research
March 4, 2019
ZD/gs