ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: TI DP 7-0-0-0

HB 2303: total loss vehicle; electronic signatures

Sponsor: Representative Biasiucci, LD 30

Caucus & COW

Overview

Permits the notarized power of attorney for a total loss vehicle settlement, to be signed electronically and printed on hard copy by using a commercial product that validates a person's identity by using the National Institute of Standards and Technology's (NIST) identity assurance level 2 (IAL2) or higher authorization.

History

The Director and officers, agents and employees of the Arizona Department of Administration (ADOT) that the Director designates may administer oaths and acknowledge signatures, without a fee, in any matter connected with the administration of a law enforced by the Director.

The Director or an officer, agent or employee of ADOT designated by the Director may witness a power of attorney to be used solely in the performance of vehicle title and registration activities.

For the purposes of executing a power of attorney in the performance of vehicle title and registration activities, the power of attorney is not required to be: 1) notarized if it is witnessed by the Director or an officer, agent or employee of ADOT designated by the Director; 2) notarized if it is involving a total loss vehicle settlement and a licensed insurance company submits it electronically to ADOT, as approved by the Director; or 3) witnessed if it is notarized. An agent includes a motor vehicle dealer or a third party as statutorily authorized. (A.R.S. § 28-370).

NIST established digital identity guidelines which addresses how applicants can prove their identities and become enrolled as valid subscribers within an identity system. It provides requirements by which applicants can both identify proof and enroll at one of three different levels, or identity assurance levels (IALs), of risk mitigation in both remote and physically present scenarios. The three IALs reflect the options agencies may select from based on their risk profile and the potential harm caused by an attacker making a successful false claim of an identity. IAL2 means when evidence supports the real-world existence of the claimed identity and verifies that the applicant is appropriately associated with this real-world identity. IAL2 introduces the need for either remote or physically present identity proofing (NIST 800-63-3, SP 800-63-A).

Provisions

1. Allows the notarized power of attorney for a total loss vehicle settlement, to be signed electronically and printed on hard copy by using a commercial product that validates a person's identity by using NIST's IAL2 or higher authorization. (Sec. 1)

2. Stipulates that a power of attorney does not need to be notarized if it involves a vehicle that has been declared a total loss if an authorized insurance company's agent submits the power of attorney electronically to ADOT, as approved by the Director. (Sec. 1)

3. Clarifies that the Director and officers, agents and employees of ADOT may administer oaths and acknowledge signatures without requiring the payment of a fee, in any matter connected with the administration of a law enforced by the Director. (Sec. 1)

4. Defines sign electronically as attaching to or logically associating with an electronic record an electronic sound, symbol or process that is used by a person to execute or adopt the electronic record with the intent to sign the electronic record without the requirement of a physical touch. (Sec. 1)

5. Makes technical and conforming changes. (Sec. 1)

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