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REFERENCE TITLE: salvage vehicles; abandoned; insurance claim |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2256 |
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Introduced by Representative Biasiucci
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AN ACT
Amending title 28, chapter 7, article 3, Arizona Revised Statutes, by adding section 28-2099; relating to salvage vehicles.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 28, chapter 7, article 3, Arizona Revised Statutes, is amended by adding section 28-2099, to read:
28-2099. Salvage auction dealers; salvage vehicles; unpaid insurance claim; notice; procedures; definitions
A. an insurance company may request a salvage auction dealer to take possession of a salvage vehicle that is subject to an insurance claim after satisfying all of the requirements of section 28-4847.
b. If an insurance company subsequently does not obtain the certificate of title to the salvage vehicle due to denial of the insurance claim, lack of coverage on the policy or lack of cooperation from the salvage vehicle's owner, the insurance company shall provide notice to the salvage auction dealer to release the salvage vehicle to the owner or any lienholder on record with the department. The notice may be delivered to the salvage auction dealer by a commercial delivery service, email or a proprietary electronic system that is accessible by both the insurance company and the salvage auction dealer.
c. On receipt of the notice required by subsection B of this section, the salvage auction dealer shall deliver to the address of the owner of the salvage vehicle or any lienholder on record with the department a letter by certified mail, or other commercially available delivery service that provides proof of delivery, informing the owner or lienholder:
1. that the salvage vehicle is available for pick up not later than thirty days after the notice is delivered.
2. of any outstanding charges owed to the salvage auction dealer.
d. If the salvage vehicle is not picked up and the invoice is not paid within fourteen days after delivery of the first notice, the salvage auction dealer shall send a second notice by certified mail, or other commercially available delivery service that provides proof of delivery, to the address of the owner of the salvage vehicle or any lienholder on record with the department.
E. If the salvage vehicle is not picked up and the invoice is not paid within thirty days after delivery of the first notice, the salvage vehicle is considered an abandoned vehicle as defined in section 28-4801, and the salvage vehicle's certificate of title is deemed to be assigned to the salvage auction dealer in possession of the salvage vehicle. The salvage auction dealer may request, without surrendering the certificate of title, a salvage certificate of title or nonrepairable vehicle certificate of title for the salvage vehicle that is free and clear of all liens or encumbrances. The request shall do all of the following:
1. Be on a form prescribed by the department.
2. Include a copy of the notice and proof of delivery to the owner of the salvage vehicle or any lienholder on record with the department as required by subsections C and D of this section. The department shall accept evidence that the notices sent to the address of the owner of the salvage vehicle or any LIENHOLDER on record with the department were returned to the salvage auction dealer as undeliverable to fulfill this requirement.
3. Be accompanied by a fee for a certificate of title that is free and clear of all liens or encumbrances in an amount to be determined by the department.
f. Notwithstanding any lien against the salvage vehicle, the department shall issue a certificate of title that is free and clear of all liens or encumbrances to the salvage auction dealer after satisfying all of the requirements of subsection E of this section.
g. For the purposes of this section:
1. "Salvage auction dealer" means a person that is licensed pursuant to chapter 10 of this title and whose primary business is the sale of salvage vehicles on behalf of insurers.
2. "Salvage vehicle" has the same meaning prescribed in section 28-2091.