ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	House: MAPS DP 15-0-0-0 | 3^rd Read DP 31-28-0-1 Senate: JUD DP 6-1-0-0 | 3^rd Read DPA 25-3-0-2

---

HB2484: failure to return vehicle; repeal.

NOW: failure to return vehicle

Sponsor: Representative Payne, LD 27

Senate Engrossed

Overview

Removes current statute pertaining to unlawful failure to return a motor vehicle subject to a security interest.  

History

An individual commits unlawful failure to return a motor vehicle subject to a security interest if all

the following apply:

1) An owner is 90 days late in making payments to a hold on his property;

2) A secured creditor notifies the owner in writing that the owner is in default;

3) The owner fails to remedy the default within 30 days; and

4) The owner knowingly fails to return the motor vehicle to the secured creditor or allow the secured creditor to take possession of the motor vehicle with an intent to hinder the enforcement of the secured creditor's security interest (A.R.S. § 13-1813).

The contract creating the security interest in the motor vehicle must contain a statement specifying

that:

1) Failure to return a motor vehicle subject to a security interest within 30 days after receiving a notice of default is illegal;

2) The notice of default will be mailed to the address on the loan agreement; and

3) The maximum penalty for illegal failure to return a motor vehicle subject to a security interest (A.R.S. § 13-1813).

The owner may not be liable for failing to return a motor vehicle subject to a security interest in certain circumstances. If a law enforcement agency seizes the vehicle, the secured creditor is responsible for all related fees. A vehicle that is not returned is a stolen vehicle. Unlawful failure to return a motor vehicle subject to a property interest is a class 6 felony (A.R.S. § 13-1813).

An individual commits theft of means of transportation if, without lawful authority, the individual knowingly controls or uses another individual's means of transportation with the intent to deprive the individual of the means of transportation permanently. Theft of means of transportation is a class 3 felony (A.R.S. § 13-1814).

Provisions

1. Repeals statute that pertains to unlawful failure to return a motor vehicle subject to a security interest. (Sec. 1)

Senate Amendments

1. Permits a creditor, who has met certain requirements, to file an affidavit with ADOT stating that a person has not returned a motor vehicle subject to a security interest; upon receipt of the affidavit, ADOT is required to suspend the registration of, and any license plate assigned to, the motor vehicle.

2. Requires, prior to a creditor filing the affidavit with ADOT:

a) The creditor to deliver a written statement to the vehicle owner stating that the vehicle owner is 90 days late in making payments and is in default; and

b) Failure of the vehicle owner to cure the default within 30 days.

3. Specifies that if a law enforcement agency seizes the motor vehicle, the creditor is responsible for all towing, storage and related costs.

4. Prohibits ADOT from transferring the motor vehicle's suspended registration or license plate, or from reregistering the motor vehicle until the creditor notifies ADOT that the motor vehicle is recovered.

---------- DOCUMENT FOOTER ---------

                        HB 2484

Initials NM/CV Page 0 Senate Engrossed

---------- DOCUMENT FOOTER ---------