Assigned to TRANS                                                                                                      CAUCUS & FLOOR ACTION

ARIZONA STATE SENATE

Forty-eighth Legislature, First Regular Session

AMENDED

FACT SHEET FOR H.B. 2753

vehicle impoundment and immobilization

Purpose

Makes numerous changes relating to vehicle impoundment and immobilization statutes. Allows a law enforcement officer to impound a vehicle if the driver’s license is canceled, revoked or suspended for any reason.

Background

            Currently, statute requires a law enforcement officer to remove and either immobilize or impound a vehicle if the driver is unlicensed, or driving with a revoked license, a license suspended due to conviction for driving under the influence, driving with an invalid license,  reckless driving, causing an accident, or other moving violations. Vehicles are impounded for 30 days.

            An impounded vehicle may be released before the end of the 30-day period to the registered owner if the vehicle is stolen or if the owner can produce evidence that their driving privilege has been reinstated, or to a financial institution with a security interest in the vehicle, or to a business if the impounded vehicle was driven by an employee.  A vehicle may be released to the spouse of an owner or another person identified as the owner if the person was not driving the vehicle when it was impounded. The spouse or person must enter an agreement with the impoundment agency, which stipulates that if the vehicle is impounded again for being driven by an unlicensed driver, the spouse or person will not be able to obtain early release of the vehicle.

            At the end of the 30-day impoundment, the owner or the owner’s spouse may claim a vehicle by presenting a valid driver’s license and proof of registration and paying the impoundment charges associated with the vehicle (which are not to exceed $15 per day or $150 in administrative charges).

            Owners of an impounded vehicle may receive a hearing in a justice court. Impoundment agencies are required to establish procedures for immobilization or post-storage hearings to release vehicles and impose impoundment charges. Owners must be notified that their vehicle has been impounded and have ten days to request a hearing.

            If a vehicle is unclaimed at the end of 30 days, the person in possession of the vehicle must file an abandoned vehicle report.

            There is no anticipated impact to the state General Fund associated with this legislation. There may be a minimal fiscal impact to counties and municipalities due to an increase in impounded vehicles. According to the City of Phoenix, it costs $160 in administrative charges to impound a vehicle, $150 of which is recouped by the city through payments made to release impounded vehicles.

Provisions

Impoundment of Vehicles

1. Requires any vehicle being driven by a person whose driving privilege is suspended or canceled for any reason to be impounded.

2. Eliminates an existing exemption, thereby allowing a vehicle driven by a minor with liquor in the body, but who is not driving under the influence to be impounded.

Early Release of a Vehicle-Before the End of the 30-day Impoundment Period

3. Specifies that an impounding agency must release a vehicle to the registered owner before the end of the 30-day impoundment period provided that the owner was operating the vehicle when it was seized and the owner’s driving privileges have been reinstated.

4. Clarifies that a spouse or other vehicle owner requesting early release of a vehicle must be listed as an owner in department records at the time the vehicle was impounded.

5. Stipulates that if a spouse or vehicle owner requests early release of the vehicle and enters into an agreement with the impounding agency prohibiting operation of the released vehicle by someone without a valid driving privilege, the spouse or other owner will be ineligible for early release of the vehicle if it is subsequently impounded within one year and responsible for a civil traffic violation with a $250 penalty.

6. Removes language that allows a justice court to order early release of an impounded vehicle.

7. Allows a valid salvage or dismantle title to be used as one of the documents required to secure early release of an impounded vehicle.

8. Requires proof of financial responsibility (e.g. vehicle insurance) to release a vehicle early.

9. Clarifies that if a vehicle is released to the owner’s spouse and the vehicle has not been stolen the spouse is responsible for paying impoundment charges.

10. Allows a vehicle to be released early to a person who is not the owner if the person is the business of renting motor vehicles, was not driving the vehicle when it was impounded and pays the impoundment charges on the vehicle.

11. Requires a rental agreement to be in effect when the vehicle was impounded in order to release a vehicle to a vehicle rental agency.

12. Specifies that a motor vehicle rental agency or vehicle dealer, bank, credit union or financial institution that has obtained early release of a formerly impounded vehicle may only release the vehicle to the owner who was driving it at the time of impoundment if:

a) the owner presents a driver’s license.

b) a current registration or salvage or dismantle title.

c) evidence of financial responsibility.

13. Stipulates that the release of a vehicle without the presentation of required evidence is a civil traffic violation with a penalty of $250.

Release of a Vehicle at the End of the 30-day Impoundment Period

14. Requires the owner of a vehicle to present a current registration or salvage title and evidence of financial responsibility for the vehicle to be released after the 30-day impoundment period.

15. Requires a person who takes possession of a vehicle unclaimed after 30 days in impoundment to obtain a vehicle release and pay all immobilization charges.

Access to Impounded Vehicles

16. Requires impounding agencies allow to an ignition interlock device (IID) installers to access impounded vehicles in order to remove an IID.

17. Allows an IID installer who is denied access to a vehicle by a storage yard or facility to report the denial and request assistance from the impounding agency.

18. Requires an impounding agency to provide assistance to an IID installer who has requested it in order to obtain access to the vehicle within five business days.

19. Criminalizes charging a fee or requiring compensation from an installer for providing access to an impounded vehicle if the installer can provide the following:

a) proof of the installer’s certification by the Motor Vehicle Division (MVD).

b) signed documents identifying the vehicle and the device to be removed.

Immobilization Hearings and Administrative Charges

20. Directs cities and counties that collect administrative charges associated with impounded vehicles to transmit the charges to the city or county treasurers respectively, to be deposited in a fund used to facilitate impoundment and removal of unattended vehicles.

21. Specifies that the Department of Public Safety deposit administrative charges associated with impounded vehicles in the Arizona Highway Patrol Fund.

22. Extends the time in which an impoundment agency must send a notice to those with interest in the vehicle from two working days to three business days, excluding weekends and holidays.

23. Stipulates that an owner, spouse of an owner, or other interested party has ten days to request an immobilization or post-storage hearing.

24. Clarifies that an owner, spouse of the owner, or other interested party may have a single hearing in the impounding agency or the justice court, but not both.

25. Makes technical and conforming changes.

26. Becomes effective on the general effective date.

Amendments Adopted by Committee

1. Allows a vehicle to be impounded for an IID violation.

2. Clarifies that if a person is required by the MVD to install an IID, proof of installation is a condition of vehicle release.

3. Clarifies that impounding agencies must allow IID installers access to impounded vehicles during normal business hours.

4. Removes the provision allowing a vehicle to be impounded for an open container violation.

5. Removes a provision which requires a person claiming an abandoned vehicle to pay administrative charges.

House Action Senate Action

TRANS           2/15/07     DP     10-0-0-0                   TRANS           3/27/07     DPA     3-0-2-0

3^rd Read           2/26/07                47-12-1-0               

Prepared by Senate Research

April 2, 2007

DG/EHB/ac