ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

House: COM DPA 9-0-0-1

HB 2609: auto theft authority; fee overpayment

Sponsor: Representative Livingston, LD 28

Caucus & COW

Overview

Entitles an insurer to a refund or credit relating to overpayment of certain fees.

History

Established in the Department of Insurance and Financial Institutions (DIFI), the Automobile Theft Authority (Authority) is tasked with determining the scope of motor vehicle theft and the areas of the state where the problem is the greatest. The Authority may also analyze, develop and implement a plan to combat the problem of motor vehicle theft. The Authority allocates monies in the Automobile Theft Authority Fund (Fund) to public agencies for the purpose of establishing, maintaining and supporting programs that are designed to prevent motor vehicle theft.

Each insurer who issues a motor vehicle liability insurance policy is required to pay a semiannual fee of $0.50 per vehicle insured under the policy. Monies collected from the fee as well as 50% of civil penalties assessed against a scrap metal dealer who does not submit required vehicle information to the Arizona Department of Transportation are deposited into the Fund (A.R.S § 41-3451).

The Authority must notify DIFI of an insurer's failure to pay the semiannual fee. On receiving notice of an insurer's failure to pay the fee, DIFI may suspend the insurer's certificate of authority or impose a civil penalty to be deposited into the Fund. (A.R.S. § 41-3453).

Provisions

1. Entitles an insurer who overpaid the automobile theft authority fee to a refund of the overpaid amount or a credit of the overpaid amount to be applied against future fees. (Sec. 1)

2. Directs the insurer to submit a request for a refund or credit to the Authority with documentation or information proving the overpaid amount. (Sec 1)

Amendments

Committee on Commerce

1. Removes the ability for an insurer to receive a credit for the overpaid amount.

2. Clarifies an insurer must submit a written request for a refund to the Authority within one year after the date the overpaid assessment was due and payable and include documentation or any other information satisfactory to DIFI to substantiate the overpaid amount.

3. Requires DIFI to approve or deny a request for a refund.

4. Stipulates DIFI must refund the insurer the request amount from the Fund if DIFI approves the request.

5. Requires an insurer who has underpaid the automobile theft authority fee to transmit the difference between the amont that was due and the amount that insurer actually paid within 60 days after the fee was due and payable.

6. Permits DIFI to audit a motor vehicle liability insurer for compliance purposes and designates the expenses of the audit conducted be paid by the insurer.

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10. HB 2609

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