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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
failure to return vehicle; repeal.
Purpose
Repeals the statute relating to unlawful failure to return a motor vehicle subject to a security interest.
Background
A person commits unlawful failure to return a motor vehicle subject to a security interest if all of the following apply: 1) the person fails to make a payment on the lien for more than 90 days; 2) the secured creditor notifies the owner in writing, by certified mail return receipt requested, that the owner is 90 days late in making the payment and is in default; 3) the owner fails to cure the default within 30 days; and 4) with the intent to hinder or prevent the enforcement of the secured creditor's security interest, the owner knowingly fails to return the motor vehicle to the secured creditor or if the owner knowingly fails to allow the secured creditor to take possession of the motor vehicle (A.R.S. § 13-1813).
The original contract creating the security interest in the motor vehicle must contain the following information: 1) a statement that it is unlawful to fail to return a motor vehicle subject to a security interest within 30 days after receiving a notice of default; 2) a statement that notice of default will be mailed to the address on the loan agreement and that it is the responsibility of the owner to keep the listed address current; and 3) the maximum penalty for unlawful failure to return a motor vehicle subject to a security interest (A.R.S. § 13-1813).
The unlawful failure to return a motor vehicle subject to a property interest is a class 6 felony, and the vehicle involved is considered a stolen vehicle. If a law enforcement agency seizes the vehicle, the secured creditor must be responsible for all towing, storage and related fees or charges. It is a defense to a prosecution for unlawful failure to return a motor vehicle that: 1) the owner was physically incapacitated and unable to request or obtain permission of the secured creditor to retain the motor vehicle; 2) the motor vehicle itself was in a condition, through no intentional fault of the defendant, that it could not be returned to the secured creditor within the specified time; or 3) the owner has a statutorily outlined security interest (A.R.S. § 13-1813).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Repeals the statute relating to unlawful failure to return a motor vehicle subject to a security interest.
2. Becomes effective on the general effective date.
House Action
MAPS 2/13/23 DP 15-0-0-0
3rd Read 2/28/23 DPA 31-28-1
Prepared by Senate Research
March 14, 2023
ZD/SB/sr