State Seal2 copy            Bill Number: H.B. 2307

            Smith Floor Amendment

                                                Reference to: COMMERCE AND PUBLIC SAFETY Committee amendment

            Amendment drafted by: Legislative Council






1.    Limits the transactional value of vehicles purchased without a title to $1200.


2.    Requires the purchaser of a vehicle without a title to pay with a check and take a picture of the seller, vehicle and identification sticker. 


3.    Appropriates civil penalties assessed to the State Highway Fund and the Automobile Theft Authority.


4.    Extends the conditional enactment clause by one year to 2020.


Fifty-third Legislature                                                     Smith

Second Regular Session                                                  H.B. 2307




(Reference to COMMERCE AND PUBLIC SAFETY Committee amendment)


Page 1, strike lines 1 through 3, insert:

"Page 13, line 19, strike "; fund"

Line 23, after the comma insert "the transactional value of the vehicle does not exceed twelve hundred dollars,"; strike "ten" insert "twelve"

Line 34, after "shall" insert "do all of the following:

1.  Take a picture at the time of the transaction of all of the following:

(a)  The seller.

(b)  The vehicle.

(c)  The vehicle's vehicle identification number or federal identification sticker.

2.  Pay for the vehicle with a check and not with cash.

3."; after "that" insert "contains all of the information required by subsection C of this section, that"

Line 36, after the period insert:


Reletter to conform

Line 37, after "statement" insert "prescribed by subsection B of this section""

Line 13, strike "H" insert "I"

Between lines 21 and 22, insert:

"Line 33, strike "H" insert "I""

Line 24, after "form" insert "or maintain an electronic record"

Page 2, line 3, after the first "must" insert "electronically"; after "form" insert "or electronic record"

Line 7, strike "H" insert "I"

Between lines 8 and 9, insert:

"Page 16, line 5, after "the" strike remainder of line

Strike line 6, insert "state highway fund established by section 28‑6991."

Line 8, after the first "the" strike remainder of line

Strike lines 9 through 14, insert "automobile theft authority fund established by section 41‑3451."

Reletter to conform

Page 21, after line 40, insert:

"Sec. 7.  Section 28-6991, Arizona Revised Statutes, is amended to read:

START_STATUTE28-6991.  State highway fund; sources

The state highway fund is established that consists of:

1.  Monies distributed from the Arizona highway user revenue fund pursuant to chapter 18 of this title.

2.  Monies appropriated by the legislature.

3.  Monies received from donations for the construction, improvement or maintenance of state highways or bridges.  These monies shall be credited to a special account and shall be spent only for the purpose indicated by the donor.

4.  Monies received from counties under cooperative agreements, including proceeds from bond issues.  The state treasurer shall deposit these monies to the credit of the fund in a special account on delivery to the treasurer of a concise written agreement between the department and the county stating the purposes for which the monies are surrendered by the county, and these monies shall be spent only as stated in the agreement.

5.  Monies received from the United States under an act of Congress to provide aid for the construction of rural post roads, but monies received on projects for which the monies necessary to be provided by this state are wholly derived from sources mentioned in paragraphs 2 and 3 of this section shall be allotted by the department and deposited by the state treasurer in the special account within the fund established for each project.  On completion of the project, on the satisfaction and discharge in full of all obligations of any kind created and on request of the department, the treasurer shall transfer the unexpended balance in the special account for the project into the state highway fund, and the unexpended balance and any further federal aid thereafter received on account of the project may be spent under the general provisions of this title.

6.  Monies in the custody of an officer or agent of this state from any source that is to be used for the construction, improvement or maintenance of state highways or bridges.

7.  Monies deposited in the state general fund and arising from the disposal of state personal property belonging to the department.

8.  Receipts from the sale or disposal of any or all other property held by the department and purchased with state highway monies.

9.  Monies generated pursuant to section 28‑410.

10.  Monies distributed pursuant to section 28‑5808, subsection B, paragraph 2, subdivision (d).

11.  Monies deposited pursuant to sections 28‑1143, 28‑2353 and 28‑3003.

12.  Except as provided in section 28‑5101, the following monies:

(a)  Monies deposited pursuant to section 28‑2206 and section 28‑5808, subsection B, paragraph 2, subdivision (e).

(b)  One dollar of each registration fee and one dollar of each title fee collected pursuant to section 28‑2003.

(c)  Two dollars of each late registration penalty collected by the director pursuant to section 28‑2162.

(d)  The air quality compliance fee collected pursuant to section 49‑542.

(e)  The special plate administration fees collected pursuant to sections 28‑2404, 28‑2407, 28‑2412 through 28‑2416, 28‑2416.01, 28‑2417 through 28‑2462 and 28‑2514.

(f)  Monies collected pursuant to sections 28‑372, 28‑2155 and 28‑2156 if the director is the registering officer.

13.  Monies deposited pursuant to chapter 5, article 5 of this title.

14.  Donations received pursuant to section 28‑2269.

15.  Dealer and registration monies collected pursuant to section 28‑4304.

16.  Abandoned vehicle administration monies deposited pursuant to section 28‑4804.

17.  Monies deposited pursuant to section 28‑710, subsection D, paragraph 2.

18.  Monies deposited pursuant to section 28‑2065.

19.  Monies deposited pursuant to section 28‑7311.

20.  Monies deposited pursuant to section 28‑7059.

21.  Monies deposited pursuant to section 28‑1105.

22.  Monies deposited pursuant to section 28‑2448, subsection D.

23.  Monies deposited pursuant to section 28‑3415.

24.  Monies deposited pursuant to section 28‑3002, subsection A, paragraph 14.

25.  Monies deposited pursuant to section 28‑7316.

26.  Monies deposited pursuant to section 28‑4302.

27.  Monies deposited pursuant to section 28‑2098. END_STATUTE

Sec. 8.  Section 41-3451, Arizona Revised Statutes, is amended to read:

START_STATUTE41-3451.  Automobile theft authority; powers and duties; fund; audit

A.  An The automobile theft authority is established consisting of the following members:

1.  Two police chiefs who are appointed by the Arizona association of chiefs of police, one of whom represents a city or town with a population of one hundred thousand or more persons and one of whom represents a city or town with a population of less than one hundred thousand persons, or their designees.

2.  Two sheriffs who are appointed by the Arizona sheriffs association, one of whom represents a county with a population of five hundred thousand or more persons and one of whom represents a county with a population of less than five hundred thousand persons, or their designees.

3.  Two county attorneys who are appointed by the governor, one of whom represents a county with a population of two million or more persons and one of whom represents a county with a population of less than two million persons, or their designees.

4.  Two employees of insurers who are licensed to write motor vehicle liability insurance in this state and who are appointed by the governor.

5.  Two members of the general public who are appointed by the governor.

6.  The assistant director for the motor vehicle division in the department of transportation or the assistant director's designee.

7.  The director of the department of public safety or the director's designee.

B.  Members serve staggered four‑year terms beginning and ending on the third Monday in January.  At the first meeting each year, the members shall select a chairman from among the members.  The authority shall meet at the call of the chairman or seven members.

C.  The authority may:

1.  Subject to chapter 4, article 4 of this title, hire staff members as necessary, including an executive director.  The executive director's annual compensation shall not be more than one hundred thousand dollars.

2.  Provide work facilities and equipment as necessary.

3.  Determine the scope of the problem of motor vehicle theft, including particular areas of the state where the problem is greatest.

4.  Analyze the various methods of combating the problem of motor vehicle theft.

5.  Develop and implement a plan of operation.

6.  Develop and implement a financial plan.

7.  Solicit and accept gifts and grants.

8.  Report by December 31 of each year to the governor, the president of the senate, the speaker of the house of representatives and the secretary of state on its activities during the preceding fiscal year.

D.  If the chairman of the authority knows that a potential ground for the removal of a member of the authority exists under this subsection, the chairman shall notify the governor.  The governor shall remove the member if the governor finds that any of the following applies:

1.  The member was not qualified to serve at the time the member was appointed.

2.  The member does not maintain the member's qualifications to serve.

3.  The member cannot discharge the member's duties for a substantial part of the term due to illness or other disability.

4.  The member is absent from more than one‑half of the regularly scheduled meetings during a calendar year unless the member's absence is excused by a majority vote of the authority.

E.  The automobile theft authority fund is established consisting of monies deposited pursuant to section 28‑2098 and any public or private monies that the authority may receive.  The automobile theft authority shall administer the fund.  Subject to legislative appropriation, monies in the fund shall only be used to pay the expenses of the authority and to carry out the purposes of this section.  Monies in the fund are exempt from the provisions of sections 35‑143.01 and 35‑190 relating to lapsing of appropriations.  On notice from the authority, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.

F.  The authority may accept nonmonetary contributions, including the services of individuals, office and secretarial assistance, mailings, printing, office equipment, facilities and supplies, that are necessary to carry out its functions.  The nonmonetary contributions shall not be included in the costs of administration limitation prescribed by subsection H of this section.

G.  The automobile theft authority shall allocate monies in the fund to public agencies for the purpose of establishing, maintaining and supporting programs that are designed to prevent motor vehicle theft, including:

1.  Financial support to law enforcement and prosecution agencies for programs that are designed to increase the effectiveness of motor vehicle theft prosecution.

2.  Financial support for programs that are designed to educate and assist the public in the prevention of motor vehicle theft.

H.  The costs of administration shall not exceed ten percent of the monies in the fund in any one year so that the greatest possible portion of the monies available to the authority is expended on combating motor vehicle theft.

I.  Monies expended from the automobile theft authority fund shall be used to supplement, not supplant, other monies that are available for motor vehicle theft prevention.

J.  Each insurer issuing motor vehicle liability insurance policies in this state shall pay a semiannual fee of fifty cents per vehicle insured under a motor vehicle liability insurance policy issued by the insurer.  The fee shall be fully earned and nonrefundable at the time the insurer collects the premium for the motor vehicle liability insurance policy.  Each insurer shall transmit the fee on or before January 31 and on or before July 31 of each year to the automobile theft authority for deposit in the automobile theft authority fund.  The payment due on or before January 31 shall cover vehicles insured under policies that are issued during the period from July 1 through December 31 of the previous year.  The payment due on or before July 31 shall cover vehicles insured under policies that are issued during the period from January 1 through June 30 of the same year.

K.  The authority shall cause an audit to be made of the automobile theft authority fund.  The audit shall be conducted by a certified public accountant every two years.  The authority shall file a certified copy of the audit with the auditor general immediately.  The auditor general may make further audits and examinations as the auditor general deems necessary and may take appropriate action relating to the audit pursuant to chapter 7, article 10.1 of this title.

L.  Authority members are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.

M.  This section does not apply to vehicles or vehicle combinations with a declared gross weight of more than twenty‑six thousand pounds.  Motor vehicle liability insurance policies issued in this state for vehicles or vehicle combinations with a declared gross weight of more than twenty‑six thousand pounds are exempt from subsection J of this section. END_STATUTE

Renumber to conform"

Page 2, line 12, strike "2019" insert "2020"

Line 13, after "to" insert "report all vehicle acquisitions electronically within forty‑eight hours and"

Line 17, strike "2019" insert "2020"

Amend title to conform






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