HB 2307: scrap vehicles; sales

PRIME SPONSOR: Representative Campbell, LD 1

BILL STATUS: Senate Engrossed

            Senate 3rd Read: 29-0-1-0

ADOT – Arizona Department of Transportation 
Director – Director of ADOT 
NMVTIS – National Motor Vehicle Title Information System
VIN – Vehicle Identification Number
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 the following requirements are met:

a.       The vehicle is at least 12 years old;

b.       The vehicle's value does not exceed $1,200;

c.        The seller signs a statement certifying that the vehicle meets the requirements; and

d.       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 scrap metal dealer or automotive recycler at the time of purchase:

a.       Take a picture of the seller, vehicle and the VIN;

b.       Pay for the vehicle with a check; and

c.        Obtain a signed statement from the seller. (Sec. 5)

3.       Requires, when ADOT is able to accept it electronically, the statement to include:

a.       A statement that the vehicle will be dismantled and scrapped;

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

c.        The owner's name, address, signature and government-issued identification;

d.       Certification of an approved reason the vehicle doesn’t have a title;

e.       Certification that the vehicle is 12 years old and is not subject to a 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 NMVTIS ID number; and

h.       Name and address of the business acquiring the vehicle. (Sec. 5)

4.       Requires a scrap metal dealer or automotive recycler maintain a photocopy of the owner's government-issued identification. (Sec. 5)

5.       Allows a scrap metal dealer or automotive recycler maintain a copy of the seller's photo identification to reference without making a separate photocopy for each transaction. (Sec. 5)

6.       Requires a scrap metal dealer or automotive recycler to hold the vehicle for at least three business days after the purchase before crushing, dismantling or shredding the vehicle. (Sec. 5)

7.       Allows ADOT to develop an electronic system for a scrap metal dealer or automotive recycler to check if a scrap vehicle is reported stolen. (Sec. 5)

8.       Stipulates before purchasing a vehicle, a scrap metal dealer or automotive recycler must verify that the vehicle has not been reported stolen. 

a.       Scrap metal dealers and automotive recyclers must maintain a record for five years showing a search completion of ADOT's stolen vehicle check system. (Sec. 5)

9.       Prohibits a scrap metal dealer or automotive recycler from purchasing a vehicle that ADOT's electronic system indicates is stolen. (Sec. 5)

10.   States a scrap metal dealer or automotive recycler is not required to apprehend a person that attempts to sell a stolen motor vehicle. (Sec. 5)

11.   Requires scrap metal dealers and automotive recyclers use an ADOT vehicle lien or encumbrance database, in place February 1, 2018, or a comparable database to check for liens or encumbrances on vehicles. (Sec. 5)

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

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

b.       The date the vehicle was obtained;

c.        VIN;

d.       Name of the seller;

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 NMVTIS ID number of the business acquiring the vehicle. (Sec. 5)

13.   Prohibits ADOT from disclosing information obtained from scrap metal dealers or automotive recyclers, except to law enforcement agencies for the purposes of canceling certificates of title. (Sec. 5)

14.   Requires a scrap metal dealer or automotive recycler retain the statements and records of each transaction for at least two years. (Sec. 5)

15.   Requires ADOT to retain search records on the electronic system for at least 10 years. (Sec. 5)

16.   Establishes a civil penalty of up to $1,000 for any individual that is engaged in scrap metal dealer or automotive recycler activity and knowingly and willingly fails to deliver a vehicle title or required statements and records to ADOT or NMVTIS within 48 hours. (Sec. 5)

17.   Allows a local or state law enforcement agency, county attorney or attorney general to bring an action in any court of competent jurisdiction to enforce civil penalties. (Sec. 5)

18.   Deposits assessed civil penalties as follows:

a.       50% into the State Highway Fund; and

b.       50% to the Automobile Theft Authority. (Sec. 5)

19.   Requires the Director to adopt NMVTIS provisions and allows a peace officer to enforce NMVTIS provisions.  (Sec. 5)

20.   Requires the seller of material from scrap vehicles certify to the purchaser that all material in the sale have been properly reported. (Sec. 5)

21.   Limits the governance of the scrap metal vehicle purchasing and processing to transportation statutes. (Sec. 5, 9)

22.   Contains a conditional enactment clause contingent on ADOT's implementation of an electronic verification system by October 1, 2020. (Sec. 12)

23.   Defines automotive recycler, scrap metal dealer and scrap vehicle. (Sec. 3, 10)

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

25.   Redefines ferrous metals and scrap metals to include a scrap vehicle. (Sec. 10)

26.   Makes technical and conforming changes. (Sec. 1-4, 6-10)

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 4: Senate Engrossed


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