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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
total loss vehicle; electronic signatures
Purpose
Allows a power of attorney to be executed without notarization if submitted electronically, authorizes an electronically signed power of attorney to be printed as prescribed, requires the Arizona Department of Transportation (ADOT) to accept a repossession affidavit that is valid in another state if the lienholder of record is not licensed in Arizona and immunizes the state from liability for relying on the content of an out-of-state repossession affidavit.
Background
The Director of ADOT (Director) or a designated officer, agent or employee of ADOT 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 a designated officer, agent or employee of ADOT; 2) notarized if it is involving a total loss vehicle settlement and a licensed insurance company submits it electronically to ADOT in a manner approved by ADOT; or 3) witnessed if it is notarized (A.R.S. § 28-370).
The National Institute of Standards and Technology's (NIST) authenticator assurance level 2 requires the use of two authentication factors, either a physical authenticator and a memorized secret or a physical authenticator and an associated biometric (NIST).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows an insurance company's authorized agent to execute a power of attorney for a vehicle title and registration involving a total loss settlement without notarization if the agent electronically submits the power of attorney.
2. Allows the power of attorney to be signed electronically and printed on hard copy by using a commercial product that validates a person's identity by using the NIST's identity assurance level 2 or higher authorization without biometrics.
3. Deems a repossession affidavit by the lienholder of record in Arizona or another state to be proof of ownership, right of possession and right of transfer by the lienholder of record if ownership of a motor vehicle for which a certificate of title has been issued in Arizona or another state reverts through operation of state law to a lienholder of record through repossession according to the terms of the security agreement or another familiar instrument that is valid in such state.
4. Requires ADOT to accept a repossession affidavit that is valid in another state if the lienholder of record is not licensed in Arizona as a financial institution.
5. Specifies that a lienholder licensed in Arizona as a financial institution must electronically submit the repossession affidavit to ADOT.
7. 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.
8. Makes technical and conforming changes.
9. Becomes effective on the general effective date.
Amendments Adopted by Committee
2. Makes technical and conforming changes.
House Action Senate Action
TI 2/5/25 DP 7-0-0-0 PS 3/5/25 DPA 6-0-1
3rd Read 2/25/25 60-0-0
Prepared by Senate Research
March 17, 2025
KJA/NRG/slp