Bill Text: AZ HB2120 | 2014 | Fifty-first Legislature 2nd Regular | Chaptered
Bill Title: Motor vehicle sales
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-04-16 - Chapter 48 [HB2120 Detail]
Download: Arizona-2014-HB2120-Chaptered.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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CHAPTER 48
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HOUSE BILL 2120 |
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AN ACT
AMENDING SECTIONS 28‑3511, 28‑4401, 28‑4493, 28‑4494, 28‑4496, 28‑4498, 28‑4499, 28‑4500 AND 28‑4501, Arizona Revised Statutes; RELATING TO MOTOR VEHICLE SALES.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-3511, Arizona Revised Statutes, is amended to read:
28-3511. Removal and immobilization or impoundment of vehicle
A. A peace officer shall cause the removal and either immobilization or impoundment of a vehicle if the peace officer determines that:
1. A person is driving the vehicle while any of the following applies:
1. (a) Except as otherwise provided in this paragraph, the person's driving privilege is suspended or revoked for any reason. A peace officer shall not cause the removal and either immobilization or impoundment of a vehicle pursuant to this paragraph if the person's privilege to drive is valid in this state.
2. (b) The person has not ever been issued a valid driver license or permit by this state and the person does not produce evidence of ever having a valid driver license or permit issued by another jurisdiction. This paragraph does not apply to the operation of an implement of husbandry.
3. (c) The person is subject to an ignition interlock device requirement pursuant to chapter 4 of this title and the person is operating a vehicle without a functioning certified ignition interlock device. This paragraph does not apply to the operation of a vehicle due to a substantial emergency as defined in section 28‑1464.
4. (d) In furtherance of the illegal presence of an alien in the United States and in violation of a criminal offense, the person is transporting or moving or attempting to transport or move an alien in this state in a vehicle if the person knows or recklessly disregards the fact that the alien has come to, has entered or remains in the United States in violation of law.
5. (e) The person is concealing, harboring or shielding or attempting to conceal, harbor or shield from detection an alien in this state in a vehicle if the person knows or recklessly disregards the fact that the alien has come to, entered or remains in the United States in violation of law.
2. A vehicle is displayed for sale or for transfer of ownership with a vehicle identification number that has been destroyed, removed, covered, altered or defaced.
B. A peace officer shall cause the removal and impoundment of a vehicle if the peace officer determines that a person is driving the vehicle and if all of the following apply:
1. The person's driving privilege is canceled, suspended or revoked for any reason or the person has not ever been issued a driver license or permit by this state and the person does not produce evidence of ever having a driver license or permit issued by another jurisdiction.
2. The person is not in compliance with the financial responsibility requirements of chapter 9, article 4 of this title.
3. The person is driving a vehicle that is involved in an accident that results in either property damage or injury to or death of another person.
C. Except as provided in subsection D of this section, while a peace officer has control of the vehicle the peace officer shall cause the removal and either immobilization or impoundment of the vehicle if the peace officer has probable cause to arrest the driver of the vehicle for a violation of section 4‑244, paragraph 34 or section 28‑1382 or 28‑1383.
D. A peace officer shall not cause the removal and either the immobilization or impoundment of a vehicle pursuant to subsection C of this section if all of the following apply:
1. The peace officer determines that the vehicle is currently registered and that the driver or the vehicle is in compliance with the financial responsibility requirements of chapter 9, article 4 of this title.
2. The spouse of the driver is with the driver at the time of the arrest.
3. The peace officer has reasonable grounds to believe that the spouse of the driver:
(a) Has a valid driver license.
(b) Is not impaired by intoxicating liquor, any drug, a vapor releasing substance containing a toxic substance or any combination of liquor, drugs or vapor releasing substances.
(c) Does not have any spirituous liquor in the spouse's body if the spouse is under twenty‑one years of age.
4. The spouse notifies the peace officer that the spouse will drive the vehicle from the place of arrest to the driver's home or other place of safety.
5. The spouse drives the vehicle as prescribed by paragraph 4 of this subsection.
E. Except as otherwise provided in this article, a vehicle that is removed and either immobilized or impounded pursuant to subsection A, B or C of this section shall be immobilized or impounded for thirty days. An insurance company does not have a duty to pay any benefits for charges or fees for immobilization or impoundment.
F. The owner of a vehicle that is removed and either immobilized or impounded pursuant to subsection A, B or C of this section, the spouse of the owner and each person identified on the department's record with an interest in the vehicle immediately before the immobilization or impoundment shall be provided with an opportunity for an immobilization or poststorage hearing pursuant to section 28‑3514.
Sec. 2. Section 28-4401, Arizona Revised Statutes, is amended to read:
28-4401. Off‑premises exhibition, off‑premises display and sales and special event permits; parking motor vehicle for sale on public property; prohibition; defaced vehicle identification number; mandatory immobilization or impoundment
A. A licensed motor vehicle dealer may conduct an off‑premises exhibition, an off‑premises display and sales or a special event by permit.
B. An Arizona franchised new car dealer association may conduct a motor vehicle show by permit.
C. An exhibitor that does not have a licensed franchised dealer in this state may conduct a special event by permit. An exhibitor that has a licensed franchised dealer in this state is limited to participating in a special event through the exhibitor's licensed dealer. A licensed motor vehicle dealer or an exhibitor shall not make a solicitation or sale at a special event.
D. An applicant for an off‑premises exhibition, an off‑premises display and sales or a special event permit shall submit proof to the department that the proposed site is in compliance with local zoning ordinances.
E. An off‑premises exhibition permit, display and sales permit or special event permit is not assignable.
F. A special event shall not be held at the same location at which an off‑premises exhibition or an off‑premises display and sale are held.
G. Except as otherwise provided in this section, a motor vehicle dealer or person acting as a motor vehicle dealer shall not park a motor vehicle for the primary purpose of displaying the vehicle for sale or for transfer of ownership on any of the following:
1. A public street or highway.
2. A public parking lot.
3. Any other public property.
4. Any private property if the public may lawfully drive a motor vehicle on the property. This paragraph does not apply if the property is a motor vehicle dealer's lot and the motor vehicle that is parked on the property is in the motor vehicle dealer's inventory.
H. A vehicle that is displayed for sale with a vehicle identification number that has been destroyed, removed, covered, altered or defaced is subject to mandatory vehicle immobilization or impoundment pursuant to section 28-3511.
Sec. 3. Section 28-4493, Arizona Revised Statutes, is amended to read:
28-4493. Cancellation or suspension; grounds
A. The director may suspend or cancel the license, off‑premises exhibition permit, off‑premises display and sales permit or special event permit of any licensee or exhibitor if the director determines that the licensee or exhibitor:
1. Has made a material misrepresentation or misstatement in the licensee's or exhibitor's application for a license, off‑premises exhibition permit, off‑premises display and sales permit or special event permit.
2. Has used or is using any false advertising as prescribed by section 13‑2203.
3. Has violated or is violating a law of this state or a rule adopted by the director pursuant to law.
4. Has failed or is failing to keep and maintain records required to be kept and maintained by the licensee or exhibitor.
5. Has no established place of business or principal place of business as required by this chapter.
6. Has knowingly dealt in stolen motor vehicles or parts or accessories of stolen motor vehicles.
7. Has failed or is failing or the licensee's or exhibitor's manager, agents or representatives have failed or are failing to devote a substantial portion of time to the business for which the licensee or exhibitor is licensed or to be actively or principally engaged in the business for which the licensee or exhibitor is licensed.
8. Has refused to service and fulfill the manufacturer's warranty.
9. Is offering for private sale a motor vehicle in the licensee's or exhibitor's inventory.
9. 10. Has used or is using a private residence to illegally transact business regulated by this chapter.
10. 11. As a manufacturer, factory branch, distributor, field representative, officer or agent or any representative of a manufacturer, factory branch, distributor, field representative, officer or agent without good cause has cancelled or failed to renew the franchise of a new motor vehicle dealer. All existing dealers' franchises continue in full force and operation under a newly appointed distributor on the termination of an existing distributor unless otherwise mutually agreed by the newly appointed distributor and the dealer.
B. The director may suspend or cancel a license if the director determines that an individual included in the application for the license:
1. Made a misrepresentation, omission or misstatement in the application to conceal a matter that may cause the application to be denied.
2. Has been convicted of fraud or an auto related felony in a state, territory or possession of the United States or a foreign country within the past ten years immediately preceding the date a criminal records check is complete.
3. Has been convicted of a felony, other than a felony described in paragraph 2 of this subsection, in a state, territory or possession of the United States or a foreign country within the past five years immediately preceding the date a criminal records check is complete.
Sec. 4. Section 28-4494, Arizona Revised Statutes, is amended to read:
28-4494. License suspension or cancellation; hearing
A. On determining that grounds for suspension or cancellation of a license exist, the director shall give notice of the grounds to the licensee in writing and by the notice shall require the licensee to appear before the director at a specified time and place to show cause why the licensee's license should not be suspended or cancelled.
B. At the time and place fixed by the director and at least ten days after the notice, the licensee shall appear and be heard and may have other persons the licensee desires be present and testify at the hearing.
C. The director shall issue subpoenas to persons as the licensee requests that require them to be present and testify at the hearing. A transcript of the testimony of witnesses taken at the hearing shall be made and preserved.
D. Within ten days after the hearing, the director shall make written findings of fact and conclusions and by order either shall suspend or cancel or decline to suspend or cancel the license.
E. If the license is subject to suspension or cancellation for a violation of section 28‑4493, subsection A, paragraph 10 11, the suspension or cancellation is effective for not more than two years and is effective only in the territory formerly served by the unfairly cancelled dealer, except that in a metropolitan area served by several dealers enfranchised to sell the same make of new motor vehicles, the suspension or cancellation order does not affect the relationship of the manufacturer with the remaining dealers in the area.
F. If the license is subject to suspension or cancellation for a second violation of section 28‑4493, subsection A, paragraph 9, the suspension or cancellation is effective for five years.
F. G. The director may suspend or cancel the license of a licensee, after providing at least thirty days' written notice to the licensee, if any of the following occurs:
1. A bond furnished by a licensee pursuant to this chapter is insufficient and the licensee fails to provide any additional or other bond as required by the director.
2. The surety on a bond furnished by a licensee pursuant to this chapter requests to be released and discharged and the licensee fails to provide any additional or other bond as required by the director.
Sec. 5. Section 28-4496, Arizona Revised Statutes, is amended to read:
28-4496. Licensed dealer or automotive recycler; hearing; civil penalty
A. Notwithstanding section 28‑4495, the director may conduct a hearing pursuant to section 28‑4491 if the director alleges that a licensed MOTOR VEHICLE dealer or automotive recycler refuses or fails to comply with a cease and desist order issued pursuant to section 28‑4498.
B. The director shall conduct a hearing pursuant to section 28‑4491 if the director alleges that a licensed MOTOR VEHICLE dealer has violated section 28‑4493, subsection A, paragraph 9.
B. C. The director shall hold the hearing at least fifteen but not more than thirty days after service of a written notice. The director shall send the notice by personal delivery or certified mail to the address provided to the department in the report alleging the noncompliance.
C. D. A finding that a licensed MOTOR VEHICLE dealer or automotive recycler is in violation of this chapter requires that all of the following conditions exist, and the scope of the hearing is limited to the following:
1. A determination that the person refuses or fails to comply with the requirements of section 28‑4498.
2. A determination that the person ordered to appear at the hearing is responsible for the violation.
D. E. If after reviewing the allegations and results of the hearing the director determines that the licensed MOTOR VEHICLE dealer or automotive recycler is in violation of this chapter, the director may impose the civil penalty pursuant to section 28‑4501.
E. F. After consideration of the evidence presented at the hearing, the director shall serve notice of the director's finding and order within five days after the hearing.
Sec. 6. Section 28-4498, Arizona Revised Statutes, is amended to read:
28-4498. Licensed dealer and automotive recycler; cease and desist order; request for hearing
A. If the director has reasonable cause to believe from an investigation made by the director that a licensed motor vehicle dealer or automotive recycler has violated or is violating a law of this state or rule adopted by the department, the director may immediately issue and serve on the licensee by personal delivery or first class mail at the business address of record a cease and desist order requiring the licensee to immediately cease and desist from further engaging in the business or the prohibited activity, or both, on the receipt of the notice. A licensee who receives a cease and desist order may submit a written request for a hearing to the director. The licensee shall submit the request for a hearing within thirty days after the licensee receives the cease and desist order. On failure of a licensee to comply with the order or after a requested hearing, the director may suspend or cancel the licensee's license or permit pursuant to section 28‑4493 and section 28‑4494 or 28‑4495 or may take action pursuant to section 28‑4496.
B. If the director conducts an investigation and has reasonable cause to believe that a licensed motor vehicle dealer is in violation of section 28‑4493, subsection A, paragraph 9, the director may immediately issue and serve on the licensee by personal delivery or first class mail at the business address of record a cease and desist order requiring the licensee to immediately cease and desist from further engaging in the business or the prohibited activity, or both, on the receipt of the notice. The director shall notify the licensee that a hearing will be conducted AND THAT civil penalties may be IMPOSED pursuant to section 28-4501. On failure of a licensee to comply with the order or after a hearing, the director may suspend or cancel the licensee's license or permit pursuant to section 28‑4493 and section 28‑4494 or 28‑4495 or may take action pursuant to section 28‑4496.
B. C. The director of the department of transportation shall provide a copy of the any cease and desist order issued pursuant to this section to the director of the department of revenue.
Sec. 7. Section 28-4499, Arizona Revised Statutes, is amended to read:
28-4499. Unlicensed dealer and automotive recycler; cease and desist order; hearing
A. If the director has reasonable cause to believe from information furnished to the director or from an investigation made by the director that a person is engaged in a business regulated by this chapter without being licensed as required by law, the director shall immediately issue and serve on the person by personal delivery or first class mail at the person's last known address a cease and desist order requiring the person to immediately cease and desist from further engaging in the business. A person who receives a cease and desist order may submit a written request for a hearing to the director. The person shall submit the request for a hearing within thirty days after the person receives the cease and desist order and shall notify the person that a hearing will be scheduled AND THAT civil penaltIES may be IMPOSED pursuant to section 28-4501.
B. The director of the department of transportation shall provide a copy of the cease and desist order to the director of the department of revenue.
Sec. 8. Section 28-4500, Arizona Revised Statutes, is amended to read:
28-4500. Unlicensed dealer and automotive recycler; hearing; civil penalty; suspension of motor vehicle registrations; reinstatement fee
A. The director may shall conduct a hearing pursuant to section 28‑4491 if an officer authorized to enforce this chapter alleges that a person refuses or fails to comply with a cease and desist order issued pursuant to section 28‑4499.
B. The director shall hold the hearing at least fifteen but not more than thirty days after receipt of either of the following:
1. A written request for a hearing.
2. A written notice of hearing as prescribed by section 28‑4498 or 28‑4499.
C. A finding that a person is in violation of the dealer or automotive recycler licensing requirements of this chapter requires that both of the following conditions exist, and the scope of the hearing is limited to the following:
1. A determination that the person refuses or fails to comply with a cease and desist order issued pursuant to section 28‑4499.
2. a determination that the person appearing at the hearing is responsible for the violation.
D. If, after reviewing the allegations and results of the hearing, the director determines that the person is in violation of the dealer or automotive recycler licensing provisions of this chapter, the director may impose a civil penalty pursuant to section 28‑4501.
E. After consideration of the evidence presented at the hearing, the director shall serve notice of the director's finding and order within five days after the hearing.
F. Unless a continuance is granted, if a person who is alleged to be in violation of the dealer or automotive recycler licensing provisions of this chapter fails to appear for a hearing, the director may suspend the registrations of all motor vehicles owned and leased by the person. The director shall not remove the suspension until the person appears for the hearing and pays a fee of fifty dollars to the department for the reinstatement of each motor vehicle registration and license plate.
Sec. 9. Section 28-4501, Arizona Revised Statutes, is amended to read:
28-4501. Licensed or unlicensed dealer and automotive recycler; civil penalty; transaction privilege taxes
A. Notwithstanding the suspension authorized by section 28‑4500, if the director finds that a person is in violation of the licensing provisions of this chapter, after a hearing conducted pursuant to section 28-4496, 28‑4498, 28-4499 or 28‑4500, the director:
1. May impose a civil penalty of at least one thousand dollars but not more than three thousand dollars per violation.
2. Shall require that the person pay all transaction privilege taxes on motor vehicle sales that were conducted in violation of this chapter.
B. The person shall pay the civil penalty imposed pursuant to this section to the department no later than thirty days after the order is final. If the person fails to pay the civil penalty within thirty days after the order is final, the director shall file an action in the superior court in the county in which the hearing is held to collect the civil penalty.
APPROVED BY THE GOVERNOR APRIL 16, 2014.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 17, 2014.
