Assigned to TPS                                                                      AS PASSED BY CONFERENCE COMMITTEE

ARIZONA STATE SENATE

Fifty-Fourth Legislature, First Regular Session

AMENDED

FACT SHEET FOR H.B. 2239

used vehicle sales; title; dealers

Purpose

            Modifies, effective January 1, 2020, 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 (ADOT) (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 60 days, rather than 30 days, of the purchase or transfer of a vehicle, trailer or semi‑trailer.

2. 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.

3. Removes the requirement that a dealer or manufacturer obtain the certificate of title to a motor vehicle prior to selling or offering to sell a motor vehicle, trailer or semitrailer.

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 January 1, 2020.

Amendments Adopted by Committee

· Adds a delayed effective date.

Amendments Adopted by Committee of the Whole

· Decreases, from 90 days to 60 days after a purchase or transfer, the time period within which a licensed motor vehicle dealer must complete the application for a certificate of title.

Amendments Adopted by Conference Committee

1. Removes the requirement that a dealer or manufacturer obtain the certificate of title to a motor vehicle before the vehicle is made available for sale.

2. Specifies that an application for a certificate of title must be completed within 60 days, and that a reasonable and well-documented effort is not required in order to receive an extension from 30 days.

House Action Senate Action

TRANS         2/6/19       DP     5-0-2-0                    TPS                 3/6/19       DPA     5-3-0

3^rd Read         2/14/19               51-9-0                     3^rd Read          3/25/19                  17-13-0                             

Prepared by Senate Research

April 15, 2019

ZD/gs