Bill Text: AZ HB2372 | 2013 | Fifty-first Legislature 1st Regular | Chaptered
Bill Title: Motor vehicle dealers
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-04-10 - Governor Signed [HB2372 Detail]
Download: Arizona-2013-HB2372-Chaptered.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fifty-first Legislature First Regular Session 2013
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CHAPTER 73
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HOUSE BILL 2372 |
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AN ACT
amending sections 28-121, 28-2155, 28-2351, 28-4362, 28-4403, 28-4404, 28‑4405 and 28‑4409, Arizona Revised Statutes; amending title 28, chapter 10, article 4, Arizona Revised Statutes, by adding section 28-4423; amending title 28, chapter 10, article 6, Arizona Revised Statutes, by adding section 28-4503; amending sections 28-4531, 28-4532 and 28-4533, Arizona Revised Statutes; repealing title 28, chapter 10, article 10, Arizona Revised Statutes; relating to motor vehicle dealers.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-121, Arizona Revised Statutes, is amended to read:
28-121. Violation; classification; exception; civil traffic violation; surcharge
A. A person who violates a provision of this title or who fails or refuses to do or perform an act or thing required by this title is guilty of a class 2 misdemeanor, unless the statute defining the offense provides for a different classification. This subsection does not apply to any provision or requirement of chapter 3, 5, 7 or 8, or chapter 9, article 4 or chapter 10, article 10 of this title.
B. A violation of or failure or refusal to do or perform an act or thing required by chapter 3, 5, 7 or 8, or chapter 9, article 4 or chapter 10, article 10 of this title is a civil traffic violation unless the statute defining the violation provides for a different classification. Civil traffic violations are subject to chapter 5, articles 3 and 4 of this title.
C. In addition to any other penalty assessment provided in this title, the court shall levy the surcharge as required by sections 12‑116.01 and 12‑116.02.
Sec. 2. Section 28-2155, Arizona Revised Statutes, is amended to read:
28-2155. One trip registration permit
A. The department may issue a one trip registration permit that allows a person to operate an unregistered vehicle or a vehicle with a suspended registration from a specified origin to a specified destination.
B. The one trip registration permit is valid only for the following purposes:
1. Vehicle emissions inspection.
2. Registration or titling.
3. Vehicle inspection by the registering officer.
4. Vehicle repair to comply with an emissions inspection or inspection by the registering officer.
5. Movement of a vehicle by a licensed wholesale motor vehicle dealer only if the wholesale motor vehicle dealer does not have valid dealer license plates issued pursuant to section 28-4533, subsection B, paragraph 3.
C. A person operating a vehicle with a one trip registration permit shall comply with the mandatory motor vehicle insurance requirements of this state prescribed in chapter 9 of this title.
D. The department shall prescribe the content and form of the one trip registration permit. The owner or operator of the vehicle shall display the one trip registration permit so that it is clearly visible from outside the vehicle.
E. Except for permits issued to licensed wholesale motor vehicle dealers under this section, the registering officer shall not issue more than three one trip registration permits for a vehicle in a twelve month period. The registering officer shall issue a one trip registration permit for not more than three days, excluding weekends and holidays.
F. The fee for the one trip registration permit is prescribed in section 28‑2003. The department shall deposit the fee in the state highway fund established by section 28‑6991.
Sec. 3. Section 28-2351, Arizona Revised Statutes, is amended to read:
28-2351. License plate provided; design
A. The department shall provide to every owner one license plate for each vehicle registered. At the request of the owner and on payment of any required fee, the department shall provide either one or two license plates for a vehicle for which a special plate is requested pursuant to this chapter, except that the department shall provide one license plate if the special plate is issued pursuant to section 28‑2416 or 28‑2416.01.
B. The license plate shall display the number assigned to the vehicle and to the owner of the vehicle and the name of this state, which may be abbreviated. The director shall coat the license plate with a reflective material that is consistent with the determination of the department regarding the color and design of license plates and special plates. The director shall design the license plate and the letters and numerals on the license plate to be of sufficient size to be plainly readable during daylight from a distance of one hundred feet. In addition to the standard license plate issued for a trailer before August 12, 2005, the director shall issue a license plate for trailers that has a design that is similar to the standard size license plate for trailers but that is the same size as the license plate for motorcycles. The trailer owner shall notify the department which size license plate the owner wants for the trailer.
C. Notwithstanding any other law, the department shall not contract with a nongovernmental entity to purchase or secure reflective material for the plates issued by the department unless the department has made a reasonable effort to secure qualified bids or proposals from as many individual responsible respondents as possible.
D. The department shall determine the color and design of the license plate. All other plates issued by the department, except the plates issued pursuant to sections 28‑2404, 28‑2412, 28‑2413, 28‑2414, 28‑2416, 28‑2416.01, 28‑2417 through 28‑2448, 28‑2452, 28‑2453, 28‑2454, and 28‑2455 and 28-4533 and article 14 of this chapter, shall be the same color as and similar in design to the license plate as determined by the department.
E. A passenger motor vehicle rented without a driver shall receive the same type of license plate as issued for a private passenger motor vehicle.
Sec. 4. Section 28-4362, Arizona Revised Statutes, is amended to read:
28-4362. Application; fee; bond
Applications shall be accompanied by:
1. The filing fees prescribed in section 28‑4302, and each licensee shall pay the annual license fee prescribed in section 28‑4302.
2. A bond that:
(a) Is in a form to be approved by the director.
(b) Is in an amount prescribed by the director of at least twenty thousand dollars for an automotive recycler's license and not more than one hundred thousand dollars for all other licenses.
(c) Is executed by a surety company authorized to transact business in this state as surety on the bond with the applicant as principal obligor on the bond and the state as obligee.
(d) Is cancellable only on at least sixty days' prior notice to the director.
(e) Inures to the benefit of a person who suffers loss because of either:
(i) Nonpayment by the dealer of customer prepaid title, registration or other related fees or taxes.
(ii) The automotive recycler's or the dealer's failure to deliver in conjunction with the sale of a vehicle a valid vehicle title certificate free and clear of any prior owner's interests and all liens except a lien created by or expressly assumed in writing by the buyer of the vehicle.
3. A copy of the dealer's current transaction privilege tax license.
Sec. 5. Section 28-4403, Arizona Revised Statutes, is amended to read:
28-4403. Record requirements; motor vehicle information; inspection; liability; electronic submission
A. A licensee shall keep and maintain at the licensee's established place of business, or place of business if the licensee is a broker or a wholesale motor vehicle dealer, a permanent record in the form prescribed by the director containing:
1. A particular description of each motor vehicle of a type subject to registration under the laws of this state that is bought, sold, brokered or exchanged by the licensee or received or accepted by the licensee for sale, brokering or exchange.
2. A particular description of each used motor vehicle body or chassis that is sold or otherwise disposed of.
3. A particular description of each motor vehicle that is bought or otherwise acquired and wrecked by the licensee.
4. The name and address of the person from whom a motor vehicle, motor vehicle body or motor vehicle chassis was purchased or otherwise acquired and the date it was purchased or acquired.
5. The name and address of the person to whom the motor vehicle, motor vehicle body or motor vehicle chassis was sold or otherwise disposed of, the date it was sold or disposed of and a sufficient description of the vehicle, body or chassis by name or identifying number or otherwise to identify it.
B. A licensed automotive recycler that has a vehicle in the automotive recycler's inventory shall:
1. At the same time have possession of a duly and regularly assigned salvage certificate of title, nonrepairable vehicle certificate of title or dismantle certificate of title to the vehicle.
2. Not offer for sale or sell a vehicle unless a salvage certificate of title, nonrepairable vehicle certificate of title or dismantle certificate of title to the vehicle has been obtained.
C. Each motor vehicle dealer shall give the customer a written contract and shall maintain a copy of the contract for three years at the dealer's established place of business.
D. Each record required by this section and all inventories relating to the records of a licensee shall be available at all times for physical inspection by agents of the department or members of the highway patrol division. The agents or members may enter on premises where the records or inventories are located during normal business hours for purposes of the inspection. The licensee or any designated employee or agent may accompany any person making the inspection while the person is on the licensee's premises.
E. The licensee is only liable to a person making an inspection under this section for an injury arising out of the condition of the premises that occurs while the person is on the licensee's premises if the licensee knowingly allows the person to encounter a hidden peril or wantonly or wilfully causes the person harm.
F. Beginning January 1, 2014, a wholesale motor vehicle dealer shall submit electronically to the department any documents that are requested by the department during the wholesale motor vehicle dealer's reported business hours and that are prescribed in this section. The wholesale motor vehicle dealer shall submit the requested documents within forty-eight hours after the request is transmitted.
Sec. 6. Section 28-4404, Arizona Revised Statutes, is amended to read:
28-4404. Record requirements; vehicles and parts; electronic submission; violation; classification
A. Each licensee shall keep and maintain at the licensee's place of business, or at each of the licensee's places of business if the licensee has more than one, a permanent record in a form prescribed by the director as follows:
1. Recording and describing each of the following:
(a) Each vehicle that is wrecked, dismantled, disassembled or substantially altered by the licensee.
(b) Each major component part that is acquired by the licensee together with a bill of sale signed by a seller whose identity has been verified and the name and address of the person, firm or corporation from which the licensee purchased the vehicle or part.
(c) The following information regarding the wrecked or acquired vehicle that is the source of a major component part:
(i) If previously titled in this or any other state, the certificate of title number.
(ii) The name of the state where last registered.
(iii) The number of the last license plate issued.
(iv) The make and model of the vehicle.
(v) The identification number and serial number of the vehicle.
(vi) The date purchased.
(vii) The disposition of the chassis.
(viii) The name and address of the person from whom a motor vehicle, motor vehicle body or motor vehicle chassis was purchased or otherwise acquired and the date of the purchase.
(ix) The name and address of the person to whom the motor vehicle, motor vehicle body or motor vehicle chassis was sold or otherwise disposed of, the date of the sale and a description of the vehicle, body or chassis by make and model or identification number.
2. Including a bill of sale signed by the seller for any motor vehicle parts other than major component parts acquired by the licensee, identifying the seller by name, address and date of sale.
B. The licensee shall maintain the record at the licensee's established place of business or principal place of business if the licensee is a broker or a wholesale motor vehicle dealer for a period of three years from the date of acquiring each item recorded.
C. Authorized representatives of the department of transportation or any law enforcement agency may inspect the record kept by the licensee at any time during regular business hours.
D. An automotive recycler shall maintain a similar record of all disabled vehicles that have been towed or transported to the automotive recycler's place of business or to other places designated by the owner of the vehicle or the owner's representative. This record shall specify the make, model and description of the vehicle, name of the owner, number of the license plate, condition of the vehicle and place to which it was towed or transported.
E. Each licensee shall allow any person described in subsection C, during business hours and after reasonable demand, to physically compare the records required to be maintained with the vehicles or major component parts that are located at the licensee's place of business.
F. Beginning January 1, 2014, a wholesale motor vehicle dealer shall submit electronically to the department any documents that are requested by the department during the wholesale motor vehicle dealer's reported business hours and that are prescribed in this section. The wholesale motor vehicle dealer shall submit the requested documents within forty-eight hours after the request is transmitted.
F. G. After reasonable demand by a person under subsection C or E, a person who fails to display the records required to be maintained is guilty of a class 1 misdemeanor.
Sec. 7. Section 28-4405, Arizona Revised Statutes, is amended to read:
28-4405. Display of license; continuation date; late penalty
A. A license issued under this chapter:
1. Shall be conspicuously displayed in either:
(a) The established place of business for which it was obtained.
(b) The place of business if the licensee is a broker or a wholesale vehicle dealer.
2. Is not transferable or subject to sale or reassignment.
B. The director may issue licenses with staggered continuation dates to distribute the continuation workload as uniformly as practicable throughout the twelve months of the calendar year. In order to initiate a staggered license continuation system, the director may issue a license for more or less than a twelve month period, but not more than eighteen months, and may prorate the license fee.
C. A motor vehicle dealer licensee shall submit its renewal application, evidence of its current transaction privilege tax license and applicable renewal fees to the department of transportation on or before the license continuation date. For the purposes of renewal, the license continuation date is as follows:
1. If the motor vehicle dealer is also a licensed dealer pursuant to title 44, chapter 2.1, the date prescribed by the initial licensing department, either the department of transportation or the department of financial institutions.
2. If the motor vehicle dealer is not also a licensed dealer pursuant to title 44, chapter 2.1, the date prescribed by the department of transportation.
D. If a licensee fails, neglects or refuses to pay the required fee for the ensuing year on or before the license continuation date, the fee is delinquent and a penalty equal to the fee shall be added to the fee and collected.
Sec. 8. Section 28-4409, Arizona Revised Statutes, is amended to read:
28-4409. Evidence of ownership requirement; exception
A. Except as provided in section 28‑4410:
1. Each dealer in motor vehicles, trailers and semitrailers, including manufacturers who sell to other than dealers, having possession of a motor vehicle, trailer or semitrailer shall have at the same time either:
(a) Possession of a duly and regularly assigned certificate of title to the vehicle.
(b) Reasonable indicia of ownership or right of possession as provided in section 28‑4410.
2. A dealer or manufacturer shall not offer for sale or sell a motor vehicle, trailer or semitrailer until the dealer or manufacturer has obtained a certificate of title to the motor vehicle, trailer or semitrailer, except that a certificate of title is not required for a new motor vehicle sold by manufacturers to dealers.
B. A wholesale motor vehicle auction dealer is exempt from the requirement of having to possess a duly and regularly assigned certificate of title and from other requirements relating to the reassignment of title documents and disclosures to buyers. A wholesale motor vehicle auction dealer may buy or sell a motor vehicle at wholesale in the wholesale motor vehicle auction dealer's own name if the wholesale motor vehicle auction dealer complies with the provisions of this title relating to certificates of title, reassignments of title documents and disclosures to buyers.
C. A wholesale motor vehicle dealer must title in the name of the wholesale motor vehicle dealer any vehicle that the wholesale motor vehicle dealer acquires before the wholesale motor vehicle dealer transfers the vehicle to another licensed motor vehicle dealer.
Sec. 9. Title 28, chapter 10, article 4, Arizona Revised Statutes, is amended by adding section 28-4423, to read:
28-4423. Wholesale motor vehicle auction dealers; sign; title stamp
Each wholesale motor vehicle auction dealer shall:
1. Conspicuously post at the wholesale motor vehicle auction dealer's established place of business a sign that contains the following statement:
Arizona Revised Statutes section 28-4334 prohibits a person who purchases a vehicle from this wholesale motor vehicle auction dealer from selling the vehicle in this state unless the person is a licensed dealer in this state. A person who violates this statutory provision is guilty of a class 1 misdemeanor.
2. Stamp "export only" on the title of any vehicle sold to a person who is licensed as a dealer by another country. END_STATUTE
Sec. 10. Title 28, chapter 10, article 6, Arizona Revised Statutes, is amended by adding section 28-4503, to read:
28-4503. Out-of-business cancellations; hearing
A. Notwithstanding section 28-4494, If the department documents that a licensee has ceased operating as a motor vehicle dealer, the department may cancel the licensee's license and give notice of the cancellation to the licensee in writing. The notice shall state that the department will provide an opportunity for a hearing if the department receives a written request from the licensee for a hearing within thirty days after the notice is sent. If a licensee requests a hearing, the licensee shall show cause at the hearing why the license should not be canceled.
B. If a hearing is requested, the department or the department's duly authorized agent 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.
C. If a hearing is held, within ten days after the hearing, the department or the department's duly authorized agent shall make written findings of fact and conclusions and by order uphold the cancellation or decline to uphold the cancellation.
Sec. 11. Section 28-4531, Arizona Revised Statutes, is amended to read:
28-4531. Definitions
In this article, unless the context otherwise requires:
1. "Cargo" means commercial or industrial items but does not include personal items such as luggage and camping equipment.
2. "Dealer" means a new motor vehicle dealer, a used motor vehicle dealer or a wholesale motor vehicle dealer.
3. "Employee of the dealer" means any of the following:
(a) An employee who is paid compensation and who appears on the records of the dealer as an employee for whom social security, withholding taxes and all other deductions required by law for employees are made and for whom all applicable payroll taxes are paid by the dealer.
(b) An independent contractor who appears on the records of the dealer and who is paid compensation for specific services that are performed for the dealer and that require the operation of dealer owned vehicles.
(c) An immediate family member of the dealer who appears on the records of the dealer and who is paid compensation for specific services that are performed for the dealer and that require the operation of dealer owned vehicles. For the purposes of this subdivision, "immediate family member" means a spouse or a parent, child, brother or sister whether related by adoption or blood.
4. "Employee of the manufacturer" means an employee who is paid compensation and who appears on the records of the manufacturer as an employee for whom social security, withholding taxes and all other deductions required by law for employees are made and for whom all applicable payroll taxes are paid by the manufacturer.
5. "Full‑time employee of the dealer" means a person who qualifies as an employee of the dealer and who works at least twenty‑four hours each week for the dealer.
6. "Full‑time employee of the manufacturer" means a person who qualifies as an employee of the manufacturer and who works at least twenty‑four hours each week for the manufacturer.
7. "Manufacturer" means a person engaged in the business of manufacturing motor vehicles, trailers or semitrailers or a person engaged in the manufacture of integrated automotive systems and modules that are being tested at or in conjunction with a facility located in this state.
8. "Manufacturer's service program" means a program that originates from a manufacturer and is imposed on that manufacturer's dealers, that provides for the use of new motor vehicles in connection with a new motor vehicle dealer's service operations and that imposes certain duration and mileage restrictions on the use of those new motor vehicles.
8. 9. "Modules" means groups of component parts that are arranged in close physical proximity to each other within a vehicle and that may be assembled by the supplier and shipped to the manufacturer for installation in a vehicle as a unit.
9. 10. "Systems" means groups of component parts that are located throughout a vehicle and that operate together to provide a specific vehicle function.
Sec. 12. Section 28-4532, Arizona Revised Statutes, is amended to read:
28-4532. Dealer owned vehicles; registration exemption; use of dealer plates; civil penalty
A. A vehicle that is owned by a dealer and that is otherwise required to be registered is exempt from registration while the vehicle is owned by the dealer. A vehicle owned by a dealer may be operated under owner responsibility on public highways and streets according to the following provisions:
1. The vehicle displays a license plate issued to the owner as provided in this article in the manner prescribed in section 28‑2354.
2. The owner, an employee of the dealer or a prospective buyer may operate the vehicle according to subsection C of this section.
B. Dealers' plates shall not be used on the following dealer owned vehicles:
1. A work or service vehicle, except for a vehicle that is owned by a new motor vehicle dealer that has a manufacturer's service program and that is used in that program.
2. A leased or rented vehicle owned by a dealer.
3. A laden vehicle designed for the transportation of cargo unless the cargo consists of no more than three vehicles that are owned by the dealer and the laden vehicle and the cargo are being operated or transported by the dealer for resale.
4. A vehicle that has been sold.
C. Except as provided in subsection B of this section, a dealer plate may be used on a dealer owned vehicle as follows:
1. When operated by the dealer or by an employee of the dealer in connection with the dealer's business. The vehicle may be operated as personal use transportation if it is assigned to a dealer or full‑time employee of the dealer on a full‑time use basis and if a record of the assignment is made as specified in section 28‑4535. The authorized use applies to dealers or employees solely and does not apply to any other person as operator.
2. When operated by a prospective buyer for demonstration purposes for a period of not more than forty‑eight hours for passenger vehicles and seventy‑two hours for unladen pickups and trucks.
3. When operated by a person who is lawfully engaged in a contract with a dealer to perform any of the following at a permanent site or location where the person conducts business:
(a) Exterior surface protection.
(b) Interior surface protection.
(c) Window sunscreen protection.
(d) Body repair or maintenance.
(e) Undercoating, soundproofing or rustproofing.
(f) Audio equipment installation.
(g) Other similar work required to prepare a vehicle for sale to the public.
D. A person who violates this section is subject to a civil penalty of up to five hundred dollars.
Sec. 13. Section 28-4533, Arizona Revised Statutes, is amended to read:
28-4533. Dealer's certificate; dealer license plates; fees
A. A dealer may apply to the department, on a form provided for that purpose, for a dealer's certificate containing a general distinguishing number and for one or more pairs of dealer license plates or single dealer license plates appropriate to various types of vehicles. If the applicant is a dealer in new motor vehicles, trailers or semitrailers, the applicant shall submit satisfactory proof that the applicant is a duly authorized distributor or dealer for a manufacturer.
B. The department may issue dealer license plates to each dealer as follows:
1. For new motor vehicle dealers, not more than thirty dealer license plates plus one additional license plate for every fifty motor vehicles that are sold based on reported sales in the previous license year.
2. For used motor vehicle dealers, not more than fifteen dealer license plates plus one additional license plate for every fifty vehicles that are sold based on reported sales in the previous license year.
3. For wholesale motor vehicle dealers, not more than two dealer license plates plus one additional license plate for every fifty vehicles that are sold based on reported sales in the previous license year. All of the following requirements apply to dealer license plates issued pursuant to this paragraph:
(a) Before the wholesale motor vehicle dealer's license continuation date, the wholesale motor vehicle dealer must submit evidence satisfactory to the department that the wholesale motor vehicle dealer has sold at least ten vehicles in the previous license year.
(b) If the wholesale motor vehicle dealer does not submit the evidence prescribed in subdivision (a) of this paragraph, the department shall cancel the dealer license plates issued to the wholesale motor vehicle dealer.
(c) The department shall not issue more than ten dealer license plates to a wholesale motor vehicle dealer pursuant to this paragraph.
B. C. The department, on granting the application, shall issue to the applicant a certificate containing the applicant's name and address and the general distinguishing number assigned to the applicant and the dealer license plates for which the applicant applied on payment of the fee provided in this section.
C. D. The fee for each license plate or pair of license plates issued to a dealer is:
1. Thirty dollars, if the dealer is not a motorcycle dealer.
2. Ten dollars, if the dealer is a motorcycle dealer.
D. E. The director may recall, redesign and reissue dealer license plates pursuant to this article. The plate or pair of plates issued shall contain a number or symbol distinguishing them from every other plate or pair of plates issued to the same dealer. The director shall not allow a request for dealer license plates to be combined with a request for a personalized special plate issued pursuant to section 28-2406. Reissued dealer license plates shall be distributed as determined by the director.
E. F. The right to use a dealer license plate issued terminates at midnight on the last day of the month in which the plate fees are due unless the plate fees for the following year are paid.
F. G. A dealer who applies for and obtains dealer license plates shall comply with chapter 9 of this title.
Sec. 14. Repeal
Title 28, chapter 10, article 10, Arizona Revised Statutes, is repealed.
APPROVED BY THE GOVERNOR APRIL 10, 2013.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 10, 2013.
