Bill Text: AZ SB1358 | 2016 | Fifty-second Legislature 2nd Regular | Chaptered
Bill Title: Motor vehicle dealer licensing
Spectrum: Slight Partisan Bill (Republican 7-3)
Status: (Passed) 2016-05-17 - Chapter 277 [SB1358 Detail]
Download: Arizona-2016-SB1358-Chaptered.html
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Senate Engrossed |
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State of Arizona Senate Fifty-second Legislature Second Regular Session 2016
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CHAPTER 277
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SENATE BILL 1358 |
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AN ACT
amending sections 6-126, 28-4302, 44-281, 44-282 and 44-294, Arizona Revised Statutes; relating to vehicle dealers.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 6-126, Arizona Revised Statutes, is amended to read:
6-126. Application fees for financial institutions and enterprises
A. The following nonrefundable fees are payable to the department with the filing of the following applications:
1. To apply for a banking permit, five thousand dollars.
2. To apply for an amendment to a banking or savings and loan association permit, one thousand dollars.
3. To establish each banking branch office, seven hundred fifty dollars.
4. To move a banking office to other than an established office of a bank, one thousand dollars.
5. To apply for a savings and loan association permit, five thousand dollars.
6. To establish each savings and loan association branch office, one thousand five hundred dollars.
7. To move an office of a savings and loan association to other than an established office, one thousand dollars.
8. To organize and establish a credit union, one hundred dollars.
9. To establish each credit union branch or to move a credit union office to other than an established office of a credit union, two hundred fifty dollars.
10. To organize and establish any other financial institutions for which an application or investigation fee is not otherwise provided by law, two thousand five hundred dollars.
11. To acquire control of a financial institution, other than a consumer lender, five thousand dollars.
12. To apply for a trust company license, five thousand dollars.
13. To apply for a commercial mortgage banker, mortgage banker, escrow agent or consumer lender license, one thousand five hundred dollars.
14. To apply for a mortgage broker, commercial mortgage broker, sales finance company or debt management company license, eight hundred dollars.
15. To apply for a collection agency license, one thousand five hundred dollars.
16. To apply for a deferred presentment company license, one thousand dollars.
17. To apply for a motor vehicle dealer license, three hundred dollars.
18. 17. To apply for a branch office of an escrow agent, consumer lender, commercial mortgage banker, mortgage banker, trust company, money transmitter, collection agency or deferred presentment company, five hundred dollars.
19. 18. To apply for a branch office of a mortgage broker, commercial mortgage broker, debt management company or sales finance company, two hundred fifty dollars.
20. 19. To apply for approval of the articles of incorporation of a business development corporation, five hundred dollars.
21. 20. To apply for approval for the merger or consolidation of two or more financial institutions, five thousand dollars per institution.
22. 21. To apply for approval to convert from a national bank or federal savings and loan charter to a state chartered institution, five thousand dollars.
23. 22. To apply for approval to convert from a federal credit union to a state chartered credit union, one thousand dollars.
24. 23. To apply for approval to merge or consolidate two or more credit unions, five hundred dollars per credit union.
25. 24. To move an established office of an enterprise to other than an established office, fifty dollars.
26. 25. To issue a duplicate or replace a lost enterprise's license, one hundred dollars.
27. 26. To change a responsible person on a mortgage broker's, commercial mortgage broker's, commercial mortgage banker's or a mortgage banker's license, two hundred fifty dollars.
28. 27. To change an active manager on a collection agency license or a manager of a money transmitter branch office license, two hundred fifty dollars.
29. 28. To change the licensee name on a financial institution or enterprise license, not more than two hundred fifty dollars.
30. 29. To apply for a money transmitter license, one thousand five hundred dollars plus twenty‑five dollars for each branch office and authorized delegate to a maximum of four thousand five hundred dollars.
31. 30. To acquire control of any money transmitter or controlling person pursuant to chapter 12 of this title, two thousand five hundred dollars.
32. 31. To receive the following publications:
(a) Quarterly bank and savings and loan statement of condition, not more than ten dollars per copy.
(b) Monthly summary of actions report, not more than five dollars per copy.
(c) A list of licensees, a monthly pending actions report and all other in‑house prepared reports or listings made available to the public, not more than one dollar per page.
33. 32. To apply for a loan originator license, an amount to be determined by the superintendent.
34. 33. To apply for a loan originator license transfer, an amount to be determined by the superintendent.
35. 34. To apply for a conversion from a mortgage banker license to a mortgage broker license, an amount to be determined by the superintendent.
B. On issuance of a license or permit for a financial institution or enterprise, the superintendent shall collect the first year's annual assessment or renewal fee for the financial institution or enterprise prorated according to the number of quarters remaining until the date of the next annual assessment or renewal.
C. The following annual renewal fees shall be paid each year:
1. For an escrow agent, or trust company, one thousand dollars plus two hundred fifty dollars for each branch office.
2. For a debt management company or sales finance company, five hundred dollars plus two hundred dollars for each branch office.
3. For a collection agency, six hundred dollars plus two hundred dollars for each branch office.
4. For a motor vehicle dealer, one hundred fifty dollars.
5. 4. For an inactive mortgage broker or commercial mortgage broker, two hundred fifty dollars.
6. 5. For a mortgage banker that negotiates or closes in the aggregate one hundred loans or less in the immediately preceding calendar year, seven hundred fifty dollars, and for a mortgage banker that negotiates or closes in the aggregate over one hundred loans in the immediately preceding calendar year, one thousand two hundred fifty dollars. In addition, a mortgage banker shall pay two hundred fifty dollars for each branch office.
7. 6. For a commercial mortgage banker, one thousand two hundred fifty dollars. In addition, a commercial mortgage banker shall pay two hundred fifty dollars for each branch office.
8. 7. For a mortgage broker or commercial mortgage broker that negotiates or closes in the aggregate fifty loans or less in the immediately preceding calendar year, two hundred fifty dollars and for a mortgage broker or commercial mortgage broker that negotiates or closes in the aggregate more than fifty loans in the immediately preceding calendar year, five hundred dollars. In addition, a mortgage broker or commercial mortgage broker shall pay two hundred dollars for each branch office.
9. 8. For a consumer lender, one thousand dollars plus two hundred dollars for each branch office.
10. 9. For a money transmitter, five hundred dollars plus twenty‑five dollars for each branch office and each authorized delegate to a maximum of two thousand five hundred dollars.
11. 10. For a deferred presentment company, four hundred dollars. In addition, a deferred presentment company shall pay two hundred dollars for each branch office.
12. 11. For a loan originator, an amount to be determined by the superintendent.
13. 12. For an inactive status loan originator, an amount to be determined by the superintendent.
D. The license, renewal or branch office permit fee for a premium finance company for each calendar year or part thereof shall not be less than one hundred dollars or more than three hundred dollars as set by the superintendent. If the license is issued or the branch office is opened after June 30 in any year, the fees shall not be less than fifty dollars or more than one hundred fifty dollars for that year.
Sec. 2. Section 28-4302, Arizona Revised Statutes, is amended to read:
28-4302. Fees; disposition
A. The following fees are required:
1. For filing each application for a dealer's, manufacturer's, importer's, distributor's, factory branch's, distributor branch's, automotive recycler's or wholesale motor vehicle dealer's license, fifteen dollars.
2. For filing each application for a provisional dealer's, automotive recycler's or wholesale motor vehicle dealer's license filed in conjunction with an application for a dealer's or automotive recycler's license, ten dollars.
3. For each filing or continuation of a dealer's, manufacturer's, distributor's, importer's, factory branch's, distributor branch's, automotive recycler's or wholesale motor vehicle dealer's license if issued annually, one hundred dollars except that if a dealer has a contractual relationship with a third party lender, the fee is four hundred dollars, of which three hundred dollars shall be deposited pursuant to sections 35-146 and 35-147, in the state general fund and one hundred dollars in the Arizona highway user revenue fund.
4. For each continuation of a dealer's license if issued annually, one hundred dollars, except that if a dealer has a contractual relationship with a third party lender, the fee is two hundred fifty dollars, of which one hundred fifty dollars shall be deposited in the state general fund, pursuant to sections 35-146 and 35-147, and one hundred dollars in the Arizona highway user revenue fund.
4. 5. For filing or continuing a dealer's branch license if issued annually, fifty dollars.
5. 6. For filing each application for a permit for the off‑premises exhibition of motor vehicles, for a motor vehicle show or for a special event to exhibit new motor homes, twenty‑five dollars.
6. 7. For filing each application for a permit for the off‑premises display and sale of motor vehicles, twenty‑five dollars.
B. Except as otherwise provided by statute, the director shall immediately deposit, pursuant to sections 35‑146 and 35‑147, fees collected under this section in the Arizona highway user revenue fund.
Sec. 3. Section 44-281, Arizona Revised Statutes, is amended to read:
44-281. Definitions
In this article, unless the context otherwise requires:
1. "Administrator" means the superintendent of financial institutions.
2. "Cash sale price" means the price stated in a retail installment contract for which the seller would have sold to the buyer, and the buyer would have bought from the seller, the motor vehicle which is the subject matter of the retail installment contract, if such sale had been a sale for cash instead of a retail installment transaction. The cash sale price may include charges for accessories and their installation and for delivery, and servicing, repairing or improving the motor vehicle, and for charges for other costs that are necessary or incidental to the transaction and that the seller furnishes or agrees to pay on behalf of the buyer, including taxes, assessor's fees, license fees and fees for filing, recording or otherwise perfecting or releasing a reserved title or lien, and may include a reasonable charge for the seller's services.
3. "Dealer" means any person who in any year sells on a noncash basis three or more motor vehicles at retail.
4. 3. "Finance charge" means the amount agreed upon between the buyer and the seller, as limited herein, which in determining the cost of the motor vehicle is added to the aggregate of the following: The cash sale price and the amount, if any, included for insurance and other benefits where a separate cost is assigned thereto.
5. 4. "Holder" of a retail installment contract means the retail seller of the motor vehicle under or subject to the contract or, if the contract is purchased by a sales finance company or other assignee, the sales finance company or other assignee.
6. 5. "Motor vehicle" means any self‑propelled device in or by which any person or property is or may be transported or drawn on a public highway, except:
(a) Devices that move upon or are guided by a track or travel through the air.
(b) The following, if not designed primarily for highway transportation, but which may incidentally be operated on a public highway:
(i) Tractors.
(ii) Buses.
(iii) Trucks.
(iv) Power shovels.
(v) Road machinery.
(vi) Agricultural machinery.
7. 6. "Person" means an individual, partnership, association, trust, corporation, or other legal entity.
8. 7. "Retail buyer" or "buyer" means a person who buys a motor vehicle from a retail seller, not for the purpose of resale, and who executes a retail installment contract in connection therewith.
9. 8. "Retail installment contract" or "contract":
(a) Means an agreement, entered into in this state, pursuant to which the title to or a lien upon the motor vehicle, which is the subject matter of a retail installment transaction, is retained or taken by a retail seller from a retail buyer as security for the buyer's obligation.
(b) Includes:
(i) A conditional sales contract and a contract for the bailment or leasing of a motor vehicle by which the bailee or lessee contracts to pay as compensation for its use a sum substantially equivalent to or in excess of its value and by which it is agreed that the bailee or lessee is bound to become, or has the option of becoming, the owner of the motor vehicle for no other or a nominal consideration upon full compliance with the provisions of the contract.
(ii) A secondary motor vehicle finance transaction.
10. 9. "Retail installment transaction" means any transaction evidenced by a retail installment contract entered into between a retail buyer and a retail seller wherein the retail buyer buys a motor vehicle from the retail seller at a cost payable in one or more deferred installments. The cash sale price of the motor vehicle, the amount included for insurance if a separate charge is made and the finance charge shall together constitute the cost of the motor vehicle.
11. 10. "Retail seller" or "seller" means a person who sells a motor vehicle to a retail buyer for purposes other than resale under or subject to a retail installment contract. For the purposes of paragraph 13 12 of this section "seller" means a person who sells and retains the use of the motor vehicle.
12. 11. "Sales finance company":
(a) Means a person engaged, in whole or in part, in the business of purchasing retail installment contracts from one or more retail sellers.
(b) Includes a person engaged, in whole or in part, in the business of creating or holding retail installment contracts that exceed a total aggregate outstanding indebtedness of fifty thousand dollars.
(c) Does not include:
(i) The pledgee of an aggregate number of retail installment contracts to secure a bona fide loan thereon.
(ii) A motor vehicle dealer who creates retail installment contracts and assigns the retail installment contracts to third party lenders or financial institutions unless the dealer holds retail installment contracts that exceed a total aggregate outstanding indebtedness of fifty thousand dollars.
13. 12. "Secondary motor vehicle finance transaction":
(a) Means any contract that includes provisions for either:
(i) Obtaining a security interest in or lien on a motor vehicle other than in connection with the sale of that motor vehicle.
(ii) The sale or conditional sale of a motor vehicle and the seller's right to retain use of the motor vehicle after the sale or conditional sale.
(b) Includes any conditional sales contract or contract for the bailment or leasing of a motor vehicle in which the bailee or lessee agrees to pay for use of the motor vehicle and the bailee or lessee is required to become or has the option of becoming the owner of the vehicle for any or no compensation.
(c) Does not include any commercial transaction as defined in section 44‑291.
Sec. 4. Section 44-282, Arizona Revised Statutes, is amended to read:
44-282. Licensing of sales finance companies required; penalty
A. No person shall engage in the business of a sales finance company in this state without a license therefor as provided in this article. No dealer shall engage in business in this state without a license issued by the administrator. No A motor vehicle dealer shall not sell or transfer any contract to a person in Arizona not licensed under the terms of this chapter.
B. The application for a license shall be in writing, under oath and in the form prescribed by the administrator. The application shall contain the name of the applicant, the date of incorporation if incorporated, the address where the business is or is to be conducted and similar information as to any branch office of the applicant, the name and resident address of the owners or partners or, if a corporation or association, of the directors, trustees and principal officers, and such other pertinent information the administrator may require.
C. The license fee for a sales finance company is the fee prescribed in section 6‑126. The license fee for each dealer is the fee prescribed in section 6‑126.
D. To coincide with the licensing of motor vehicle dealers pursuant to title 28, chapter 10, the administrator may issue a sales finance company license or a dealer license, or both, pursuant to this article 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 administrator 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.
E. A licensee shall submit its renewal application and applicable renewal fees to the department of financial institutions on or before the license continuation date. For the purposes of renewal, the license continuation date is as follows:
1. If the licensee is also a licensed motor vehicle dealer pursuant to title 28, chapter 10, the date prescribed by the initial licensing department, either the department of transportation or the department of financial institutions.
2. If the licensee is not also a licensed motor vehicle dealer pursuant to title 28, chapter 10, the date prescribed by the department of financial institutions.
F. A penalty of twenty‑five dollars per day shall be assessed against any licensee for each day after the license continuation date that the licensee's renewal application and fee are not received by the department of financial institutions. Licenses not renewed within thirty days after their license continuation date expire.
G. A license shall be obtained for each separate place of business at or from which a licensee transacts business. Each license shall specify the location of the office or branch and must be conspicuously displayed there. In case such location is changed, the administrator shall endorse the change of location on the license on the payment of the fee prescribed in section 6‑126, subsection A, paragraph 25.
H. On the filing of the application and the payment of the required fee the administrator shall issue a license to the applicant to engage in the business of a sales finance company or dealer under and in accordance with this article. All licenses issued under this article shall remain in full force and effect until surrendered, revoked, suspended or canceled by failure to renew under this article. No licensee shall transact any business provided for by this article under any other name.
I. A license is not transferable or assignable and control of a licensee may not be acquired through a stock purchase or any other device without the prior written consent of the administrator. Written consent shall not be given if the administrator finds that any of the grounds for denial, revocation or suspension of a license as set forth in section 44‑283 are applicable to the acquiring person. For the purposes of this subsection, "control" means the power to vote more than twenty per cent percent of the outstanding voting shares of a licensed corporation, partnership, association or trust.
J. A person doing business under the laws of this state or the United States as a bank, savings bank, savings and loan association or credit union is exempt from the licensing requirements of this section but shall comply with all other requirements of this chapter, except that affiliates of banks, savings banks, savings and loan associations or credit unions shall comply with this section. For the purposes of this subsection, "affiliate" means an entity that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the entity specified.
Sec. 5. Section 44-294, Arizona Revised Statutes, is amended to read:
44-294. Records
Every dealer, holder, or sales finance company shall maintain in its office, for a period of not less than one year after date of final payment or entry therein, a copy of all retail installment contracts or retail installment transactions entered into under the terms of this chapter.
APPROVED BY THE GOVERNOR MAY 17, 2016.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 17, 2016.
