House Engrossed

 

motor vehicle dealers; sales; cancellation

 

 

 

 

State of Arizona

House of Representatives

Fifty-sixth Legislature

First Regular Session

2023

 

 

 

HOUSE BILL 2292

 

 

An Act

 

amending sections 28-2158 and 28-4403, Arizona Revised Statutes; amending title 28, chapter 10, article 4, Arizona Revised Statutes, by adding section 28-4424; relating to motor vehicles.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-2158, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2158. Registration card

A. The department shall file each application for registration. If satisfied that the application is genuine and regular, the department shall issue a registration card to the owner of the vehicle and shall assign license plates to the vehicle.

B. The registration card shall contain on the face of the card all of the following:

1. The date it is issued.

2. The registration number assigned to the owner and the vehicle.

3. The name and address of the owner.

4. A description of the registered vehicle, including the serial number.

5. The amount of fees paid for registration of the vehicle.

C. The registration card shall be carried at all times in the driver's compartment of the vehicle for which it is issued or displayed on a wireless communication device. The registration card is subject to inspection by the director, members of the highway patrol or any peace officer. END_STATUTE

Sec. 2. Section 28-4403, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4403. Record requirements; motor vehicle information; inspection; liability; electronic submission

A. A licensee shall keep and maintain at the licensee's established place of business, or place of business if the licensee is a broker or a wholesale motor vehicle dealer, a permanent record in the form prescribed by the director. containing The permanent record may be in an electronic format and shall contain:

1. A particular description of each motor vehicle of a type subject to registration under the laws of this state that is bought, sold, brokered or exchanged by the licensee or received or accepted by the licensee for sale, brokering or exchange.

2. A particular description of each used motor vehicle body or chassis that is sold or otherwise disposed of.

3. A particular description of each motor vehicle that is bought or otherwise acquired and wrecked by the licensee.

4. The name and address of the person from whom a motor vehicle, motor vehicle body or motor vehicle chassis was purchased or otherwise acquired and the date it was purchased or acquired.

5. The name and address of the person to whom the motor vehicle, motor vehicle body or motor vehicle chassis was sold or otherwise disposed of, the date it was sold or disposed of and a sufficient description of the vehicle, body or chassis by name or identifying number or otherwise to identify it.

B. A licensed automotive recycler that has a vehicle in the automotive recycler's inventory shall:

1. At the same time have possession of a duly and regularly assigned salvage certificate of title, nonrepairable vehicle certificate of title or dismantle certificate of title to the vehicle.

2. Not offer for sale or sell a vehicle unless a salvage certificate of title, nonrepairable vehicle certificate of title or dismantle certificate of title to the vehicle has been obtained.

C. Each motor vehicle dealer shall give the customer a written or electronic contract and shall maintain a copy of the contract for three years at the dealer's established place of business.

D. Each record required by this section and all inventories relating to the records of a licensee shall be available at all times for physical inspection by agents of the department or members of the highway patrol division. The agents or members may enter on premises where the records or inventories are located during normal business hours for purposes of the inspection. The licensee or any designated employee or agent may accompany any person making the inspection while the person is on the licensee's premises.

E. The licensee is only liable to a person making an inspection under this section for an injury arising out of the condition of the premises that occurs while the person is on the licensee's premises if the licensee knowingly allows the person to encounter a hidden peril or wantonly or wilfully causes the person harm.

F. A wholesale motor vehicle dealer shall submit electronically to the department any documents that are requested by the department during the wholesale motor vehicle dealer's reported business hours and that are prescribed in this section.  The wholesale motor vehicle dealer shall submit the requested documents within forty-eight hours after the request is transmitted. END_STATUTE

Sec. 3. Title 28, chapter 10, article 4, Arizona Revised Statutes, is amended by adding section 28-4424, to read:

START_STATUTE28-4424. Motor vehicle sale rescission or cancellation

a. In the event a motor vehicle dealer and a purchaser elect to rescind or cancel the sale of a motor vehicle within thirty days of the date of such sale, the motor vehicle dealer shall document the rescission or cancellation of the sale and upon receipt of the following items from the applicable department return to the rightful parties of all fees, taxes and other monies in a manner prescribed by the department.  The documentation shall:

1. Be completed and submitted to the department within fifteen days after the date the parties agreed to cancel or rescind the sale.

2. Include a copy of an agreement executed by the motor vehicle dealer, the purchaser and, if the purchase was financed, the lender financing the purchase providing for the recission or cancellation of the sale.

3. Include a certificate of title if it has been issued or an attestation that the certificate of title has been lost or destroyed.

B. Within seven days after receiving the documentation described in subsection D of this section, the department shall:

1. Rescind, cancel or revoke any application for a certificate of title or any issued certificate of title.

2. Refund to the motor vehicle dealer any fees and taxes that the motor vehicle dealer paid to the department, except the fee prescribed in section 28-2003, subsection A, paragraph 1, and any fees retained by the department, reimbursed to the department or assessed in addition to prescribed fees by an agent, an authorized third party or an authorized third party electronic service provider as defined in section 28-5100.

3. Issue a certificate of title to the motor vehicle dealer that shows the motor vehicle dealer as the owner and the odometer mileage reading as recorded at the time of the sale that is subject to the rescission or cancellation.

C. If a motor vehicle is subject to subsection D of this section, a motor vehicle dealer may not offer for retail sale the motor vehicle that is the subject of the sale rescission or cancellation until the motor vehicle dealer has received the certificate of title pursuant to subsection E of this section.

D. A rescission or cancellation under this section does not negate that the motor vehicle has been the subject of a previous retail sale.

E. A motor vehicle dealer shall return all amounts received from a lienholder or prospective lienholder in connection with the financing of the rescinded or cancelled sale to the lienholder or prospective lienholder not more than three business days after the motor vehicle dealer and purchaser agree to rescind or cancel the sale. END_STATUTE