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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
total loss vehicle; electronic signatures
Purpose
Allows a power of attorney (POA) to be to be signed electronically and printed by using a commercial product that uses an identity assurance level 2 (IAL2) or higher authorization without biometrics, prescribes requirements for electronic signatures and allows an agent to execute a POA involving a total loss settlement without notarization.
Background
The Director of the Arizona Department of Transportation (ADOT) or an officer, agent or employee of ADOT designated by the ADOT Director (Director) may witness a POA in the performance of vehicle title and registration activities. For the purposes of executing a POA in the performance of vehicle title and registration activities, the POA is not required to be: 1) witnessed if notarized; 2) notarized if witnessed by the Director or a designated officer, agent or employee of ADOT; or 3) notarized if involving a total loss vehicle settlement and a licensed insurance company submits the POA electronically to ADOT in a manner approved by the Director. An agent includes a motor vehicle dealer or an authorized third party (A.R.S. § 28-370).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows an agent to execute a POA without notarization if the POA involves a total loss settlement and is submitted to ADOT as prescribed.
2. Allows the POA to be signed electronically and printed on hard copy by using a commercial product that validates a person's identity by using the National Institute of Standards and Technology's (NIST) IAL2 or higher authorization without biometrics.
3. Computes a notation directly associated with the electronic signature at or near the signature line on the form as an indication that the electronic signature was obtained using NIST's IAL2 or higher authentication process.
4. Determines a repossession affidavit by the lienholder of record in Arizona or another state to be proof of ownership, right of possession and right of transfer by the lienholder of record if ownership of the vehicle reverts to the lienholder of record through repossession.
5. Specifies that the Director must prescribe the form and content of an Arizona repossession affidavit.
6. Defines sign electronically as attaching to or logically associating with an electronic record an electronic sound, symbol or process that is used by a person to execute or adopt the electronic record with the intent to sign the electronic record without the requirement of a physical touch.
7. Makes technical and conforming changes.
8. Becomes effective on the general effective date.
Amendments Adopted by Committee
2. Makes technical and conforming changes.
Amendments Adopted by Committee of the Whole
1. Computes a notation directly associated with the electronic signature at or near the signature line as an electronic signature using an IAL2or higher authentication process.
2. Allows an agent, rather than an insurance company's authorized agent, to execute a POA involving a total loss settlement, as prescribed.
3. Removes requiring ADOT to accept a repossession affidavit that is valid in another state if the lienholder of record is not licensed in Arizona as a financial institution.
4. Reverts the immunization from liability to relying in good faith on the content of an Arizona repossession affidavit, rather than an affidavit from Arizona or another state.
5. Specifies that the Director must prescribe the form and content of an Arizona repossession affidavit.
6. Makes technical changes.
House Action Senate Action
TI 2/5/25 DP 7-0-0-0 PS 3/5/25 DPA 6-0-1
3rd Read 2/25/25 60-0-0
Prepared by Senate Research
May 6, 2025
KJA/NRG/slp