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REFERENCE TITLE: public consignment auction dealers |
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State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019
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HB 2278 |
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Introduced by Representative Biasiucci
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AN ACT
amending section 28‑4410.01, 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 28-4410.01, Arizona Revised Statutes, is amended to read:
28-4410.01. Public consignment auction dealers; exemptions; notices; requirements; penalties; payment of taxes; wholesale motor vehicle dealer prohibition
A. Except for a vehicle that is purchased through a wholesale auction, a public consignment auction dealer is exempt from the following:
1. An implied warranty of merchantability described in section 28‑4412, subsection B and section 44‑1267.
2. An emissions inspection pursuant to section 49‑542, subsection D.
B. A public consignment auction dealer shall post at the public consignment auction dealer's established place of business a sign indicating that the public consignment auction dealer is may be exempt from the provisions described in subsection A of this section.
C. A public consignment auction dealer, on transferring a motor vehicle by sale, shall provide written notice to the department of transportation and the department of revenue within fifteen days after the transfer on a form jointly prescribed by the directors of the departments that includes:
1. The date of the transfer.
2. The name and address of the seller.
3. The name and address of the purchaser.
4. The vehicle identification number of the motor vehicle.
5. The make and model of the motor vehicle.
6. The successful bid price and any premiums or commissions paid associated with the auction of the motor vehicle.
7. Notice as to whether the vehicle is a salvage vehicle.
D. A public consignment auction dealer who fails to provide written notice to the department of transportation and the department of revenue within fifteen days after transferring a motor vehicle, as prescribed by subsection C of this section, shall pay the department of transportation a penalty of eight dollars $8 for the first month and four dollars $4 for each additional month that the notice is not provided, not to exceed a total of one hundred dollars $100.
E. A public consignment auction dealer, on transferring a motor vehicle by sale, shall give written notice to the purchaser at the time of delivery of the motor vehicle to the purchaser in the form of an invoice or on a form prescribed by the director that includes:
1. The date of the transfer.
2. The vehicle identification number of the motor vehicle.
3. The make and model of the motor vehicle.
4. The successful bid price and any premiums or commissions paid associated with the auction of the motor vehicle.
5. Notice as to whether the vehicle is a salvage vehicle.
6. Except a for vehicle that is purchased through a wholesale auction, all documents that a used motor vehicle dealer must provide.
F. A public consignment auction dealer shall keep and maintain at the public consignment auction dealer's established place of business a permanent record in a form prescribed by the director. The permanent record shall include the information prescribed by subsection C of this section and contain a description of all motor vehicle transfers and sales. The public consignment auction dealer shall make the permanent record available for inspection by the department of transportation, the department of revenue or any peace officer.
G. A public consignment auction dealer shall do all of the following:
1. For vehicles that are purchased through a wholesale auction, inform the purchaser of a motor vehicle that the purchaser is responsible for the emission inspection requirements described in section 49‑542, subsection D.
2. Except for vehicles that are purchased through a wholesale auction, comply with all used motor vehicle dealer requirements as prescribed by law.
2. 3. Comply with the consignment contract requirements prescribed in section 28‑4410 if the motor vehicle is acquired from a person other than a licensee, except that the public consignment auction dealer shall obtain documentation that shows that the seller of the vehicle is the legal owner of the vehicle.
3. 4. Comply with the requirements of section 28‑4409 relating to evidence of ownership if the motor vehicle is acquired from another licensee.
4. 5. Comply with the requirements of section 28‑2091 relating to salvage certificates of title.
H. If a public consignment auction dealer violates this section, the director may do either of the following:
1. Suspend or cancel the dealer's license.
2. Impose a civil penalty of at least one thousand dollars $1,000 but not more than three thousand dollars as prescribed in $3,000 pursuant to this section or in section 28‑4501.
I. This section does not exempt a public consignment auction dealer from any transaction privilege tax imposed pursuant to title 42, chapter 5.
J. A wholesale motor vehicle dealer shall not sell motor vehicles to a public consignment auction dealer.
K. A public consignment auction dealer may not PURCHASE a vehicle from A person who is licensed pursuant to this chapter if the person has a shared interest in the public consignment auction dealer.