HB 2307: scrap vehicles; sales

PRIME SPONSOR: Representative Campbell, LD 1

BILL STATUS: Transportation & Infrastructure


Director – Director of Arizona Department of Transportation
ADOT – Arizona Department of Transportation
GF – State General Fund 
Amendments – BOLD and Stricken (Committee)


☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteRelating to the sale of a scrap vehicle.


1.       Allows a registered scrap metal dealer or licensed automotive recycler purchase a vehicle without obtaining a certificate of title if it meets certain requirements:

a.       Vehicle is at least 10 years old;

b.       Obtain a statement signed by the seller that the vehicle meets the requirements;

c.        The owner of the vehicle does not have a certificate title because the owner:

i.         Has not obtained a title in the owner's name;

ii.       Lost the title; or

iii.     Has returned the title to ADOT. (Sec. 5)

2.       Requires the statement to include:

a.       A statement that the vehicle will not be titled again and will be dismantled or scrapped;

b.       A description of the vehicle including year, make and model;

c.        Name, address and driver license number of the owner;

d.       An approved reason the owner does not have a certificate title;

e.       A certification that the vehicle is at least 10 years old and not subject to a security interest or lien;

f.         An acknowledgment that the owner and dealer or recycler know falsifying this document is a Class 1 misdemeanor (6 months/$2,500 plus surcharges);

g.       The owner's and business agent's signature with the date of transaction;

h.       The National Motor Vehicle Title Information System ID number; and (Sec. 5)

3.       Stipulates when ADOT can accept an electronic copy of the statement, the dealer or recycler must submit it in a form prescribed by ADOT. (Sec. 5)

4.       Requires a dealer or recycler maintain an electronic copy of owner's driver license or ID. (Sec. 5)

5.       Allows a dealer or recycler maintain a copy of the seller's photo ID and reference the copy without making a separate photocopy for each subsequent transaction. (Sec. 5)

6.       Requires ADOT develop an electronic system for registered dealers and recyclers to verify that the vehicle has not been reported stolen at the time of the transaction. (Sec. 5)

7.       Prohibits ADOT from charging a fee to the dealer or recycler for using the system. (Sec. 5)

8.       Requires a dealer or recycler, once the system is in place, to use the system when purchasing a vehicle without a certificate of title. (Sec. 5)

9.       Allows a dealer or recycler use the system before purchasing a vehicle with a certificate of title. (Sec. 5)

10.   Stipulates if the dealer or recycler uses the system to verify a vehicle is not stolen, but the vehicle is found to be stolen on a later date, the dealer or recycler is not liable. (Sec. 5)

11.   Allows ADOT disclose transaction information to law enforcement agencies for the purpose of canceling certificates of title.  (Sec. 5)

12.   States the transaction information is not public record. (Sec. 5)

13.   Requires, before purchasing a motor vehicle without title, a dealer or recycler attempt to verify with ADOT that the vehicle has not been reported stolen. (Sec. 5)

14.   Instructs the dealer or recycler notify law enforcement and hold the vehicle until the law enforcement agency provides further instruction, if ADOT reports the vehicle stolen. (Sec. 5)

15.   States a dealer or recycler is not required to apprehend a person that attempts to sell a motor vehicle that is reported stolen. (Sec. 5)

16.   Classifies giving false information in the signed statement or knowingly selling a vehicle that is subject to an unsatisfied lien a Class 1 misdemeanor (6 months/ $2,500 plus surcharges). (Sec. 5)

17.   Requires a dealer or recycler, 48 hours after close of business each day, maintain and deliver a list of each vehicle purchased that day for scrap or parts to ADOT.

a.       Asses a civil penalty of up to $1,000 per violation to a dealer or recycler who knowingly or willfully fails to deliver a vehicle title or statement to ADOT. (Sec. 5)

18.    Prohibits ADOT from charging a fee to the dealer or recycler for providing the list. (Sec. 5)

19.   Requires the list contain:

a.       Name, address and contact information for the reporting business;

b.       The date the vehicle was obtained;

c.        Vehicle ID number;

d.       Name of the person who sold the vehicle;

e.       Whether the vehicle was or will be crushed, disposed of, offered for sale or other purposes;

f.         Whether the vehicle will be exported out of the United States; and

g.       The national motor vehicle title information system ID number of the business acquiring the vehicle. (Sec. 5)

20.   Requires ADOT report the information from the list to the national motor vehicle title information system and to law enforcement agencies for canceling certificates of title.

a.       Asserts that this information is confidential for all other purposes. (Sec. 5)

21.   Requires each entity to maintain all statements and records for two-years. (Sec. 5)

22.   Requires all civil penalties be deposited:

a.       50% to the Certificate of Title Fund;

b.       50% to the GF of the city or town, county or state whichever is appropriate. (Sec. 5)

23.   Establishes the Certificate of Title Fund, to be administered by the Director. (Sec. 5)

24.   States the monies in the Fund are continuously appropriated. (Sec. 5)

25.   Requires the Director to incorporate the National Motor Vehicle Title Information System and allows a police officer to enforce it.  (Sec. 5)

26.   Requires the Director use the monies in the Fund to administer and enforce the requirements relating to scrap metal dealer and recyclers laws. (Sec. 5)

27.   Limits the governance of the purchase of scrap metal vehicle and for processing the vehicle into a scrap vehicle to transportation statute. (Sec. 5 & 9)

28.   Defines automotive recycler, scrap metal dealer and scrap vehicle. (Sec. 3, 8)

29.   Redefines motor vehicle and vehicle to exclude scrap vehicle. (Sec. 3)

30.   Redefines ferrous metals and scrap metals to include a scrap vehicle. (Sec. 8)

31.   Makes technical and conforming changes. (Sec. 1-4, 6-8)

Current Law

A scrap metal dealers is defined in statute as each person or entity except automotive recyclers who's primary business is the dismantling, selling or disposing of parts or accessories of motor vehicles engaged in the business of purchasing or acquiring scrap metal (A.R.S. § 44-1641).  Any scrap metal dealer conducting business in Arizona must register with the Arizona Department of Public Safety (A.R.S. § 44-1641.03). 

Currently automotive recycler is defined as a person or business that buys or acquires a motor vehicle solely for dismantling, selling or other disposing of the parts and dismantles six or more vehicles a year (A.R.S. § 28-4301).



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Fifty-third Legislature                  HB 2307

Second Regular Session                               Version 1: Transportation & Infrastructure


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