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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: TI DPA 7-0-0-0 |
HB 2256: salvage vehicles; abandoned; insurance claim
Sponsor: Representative Biasiucci, LD 30
House Engrossed
Overview
Allows a salvage auction dealer (dealer) to receive title on a vehicle abandoned to them by the vehicle owner resulting from the origination of an insurance claim that as denied or left unpaid.
History
If a vehicle is subject to the issuance of a certificate of title (certificate) or becomes a salvage, stolen or nonrepairable vehicle and is acquired by an insurance company, the insurance company must submit an application within 30 days to the Arizona Department of Transportation (ADOT) after the certificate is properly assigned by the owner to the insurance company, with all liens released for a salvage, stolen or nonrepairable vehicle certificate.
A salvage vehicle is defined as a vehicle, other than a nonrepairable vehicle, subject to the issuance of a certificate and registration and that has been stolen, wrecked, destroyed, flood or water damaged or otherwise damaged to the extent that the owner, leasing company, financial institution or insurance company considers it uneconomical to repair the vehicle (A.R.S. § 28-2091).
Provisions
1. Permits an insurance company to request a dealer to take actions against a salvage vehicle, that is located on the dealer's property subject to an insurance claim, after satisfying all prescribed requirements resulting from non-payment of a claim and after paying all fees owed to the storage facility that held the vehicle before the dealer acquired the vehicle. (Sec. 1)
2. Requires the insurance company to provide the dealer a notice to release the salvage vehicle to the owner if the insurance company does not obtain the certificate due to:
a. a denial of insurance claim;
b. a lack of coverage on the policy; or
c. a lack of cooperation from the salvage vehicle's owner. (Sec. 1)
3. Allows the notice to be delivered to the dealer by a commercial delivery service, email or a proprietary electronic system accessible by both the insurance company and dealer. (Sec. 1)
4. Directs the dealer, on receipt of the notice, to deliver to the address of the salvage vehicle owner or any lienholder on record with ADOT a letter by certified mail, or other commercially available delivery service that provides proof of delivery. (Sec. 1)
5. Stipulates the letter must inform the owner or lienholder that the salvage vehicle is available for pickup within 30 days that the notice is delivered and of any outstanding charges owed to the dealer. (Sec. 1)
6. Instructs the dealer to send a second notice by certified mail or other commercially available delivery service, if the salvage vehicle is not picked up within 14 days after the delivery of the first notice. (Sec. 1)
7. Classifies the salvage vehicle as an abandoned vehicle if the invoice is not picked up and not paid within 30 days of the first notice. (Sec. 1)
8. Mandates that the abandoned vehicle's certificate is deemed to be assigned to the dealer in possession of the abandoned vehicle. (Sec. 1)
9. Permits the dealer, without surrendering the certificate, to request a salvage certificate or nonrepairable vehicle certificate for the salvage vehicle that is free and clear of all liens or encumbrances. (Sec. 1)
10. Requires the request to:
a. be on a form prescribed by ADOT;
b. include a copy of the notice and proof of delivery to the owner of the salvage vehicle or any lienholder on record with ADOT; and
c. be accompanied by a fee for a certificate that is free and clear of all liens or encumbrances in an amount determined by ADOT. (Sec. 1)
11. Instructs ADOT to issue a certificate that is free and clear of any liens or encumbrances to the dealer if there are no withstanding lien against the salvage vehicle. (Sec. 1)
12. Defines salvage auction dealer and salvage vehicle. (Sec. 1)
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16. Initials LM HB 2256
17. 2/19/2026 Page 0 House Engrossed
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