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  Senate Engrossed House Bill
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  State of Arizona
  House of Representatives
  Forty-fourth Legislature
  Second Regular Session
  2000
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        CHAPTER 198
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      HOUSE BILL 2001
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AN ACT

AMENDING SECTIONS 28-2051, 28-2058, 28-2091 AND 28-2207, ARIZONA REVISED STATUTES; AMENDING TITLE 28, CHAPTER 7, ARTICLE 11, ARIZONA REVISED STATUTES, BY ADDING SECTION 28- 2356; AMENDING TITLE 28, CHAPTER 7, ARTICLE 14, ARIZONA REVISED STATUTES, BY ADDING SECTION 28-2488; MAKING AN APPROPRIATION; RELATING TO LICENSE PLATES.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 28-2051, Arizona Revised Statutes, is amended to read:

28-2051. Application for certificate of title; vision screening test

A. A person shall apply TO THE DEPARTMENT on a form furnished by the department for a certificate of title to a motor vehicle, trailer or semitrailer to the assessor of the county in which the transferee resides. The person shall make the application within thirty FIFTEEN days of the purchase or transfer of the vehicle, trailer or semitrailer. The transferee shall sign the application.

B. The application shall contain:

1. The transferee's full name and either the driver license number of the transferee or a number assigned by the department.

2. The transferee's complete residence address.

3. A brief description of the vehicle to be titled.

4. The name of the manufacturer of the vehicle.

5. The serial number of the vehicle.

6. Whether the vehicle is new or used.

7. The last license plate number if applicable and if known and the state in which the license plate number was issued.

8. If the application is for a certificate of title to a new vehicle, the date of sale by the manufacturer or dealer to the person first operating the vehicle.

9. If the application is in the name of a lessor:

(a) The lessor shown on the application as the owner or transferee.

(b) At the option of the lessor, the lessee shown on the application as the registrant.

(c) The address of either the lessor or lessee.

(d) The signature of the lessor.

10. If the application is for a certificate of title to a specially constructed, reconstructed or foreign vehicle, a statement of that fact. For the purposes of this paragraph, "specially constructed vehicle" means a vehicle not originally constructed under a distinctive name, make, model or type by a generally recognized manufacturer of vehicles.

11. If an applicant rents or intends to rent the vehicle without a driver, a statement of that fact.

12. Other information required by the department.

C. Unless subsection B, paragraph 9 of this section applies, on request of an applicant, the department shall allow the applicant to provide on the title of a motor vehicle, trailer or semitrailer a post office box address that is regularly used by the applicant.

D. A person shall submit the following information with an application for a certificate of title:

1. To a vehicle previously registered:

(a) The odometer mileage disclosure statement prescribed by section 28-2058.

(b) If the applicant is applying for title pursuant to section 28-2060, the applicant's statement of the odometer reading as of the date of application.

2. To a new vehicle:

(a) A certificate from the manufacturer showing the date of sale to the dealer or person first receiving the vehicle from the manufacturer.

(b) The name of the dealer or person.

(c) A description sufficient to identify the vehicle.

(d) A statement certifying that the vehicle was new when sold.

(e) If sold through a dealer, a statement by the dealer certifying that the vehicle was new when sold to the applicant.

E. The department may request an applicant who appears in person for a certificate of title of a motor vehicle, trailer or semitrailer to complete satisfactorily the vision screening test prescribed by the department.

Sec. 2. Section 28-2058, Arizona Revised Statutes, is amended to read:

28-2058. Transfer of title; odometer mileage disclosure statement

A. When the owner of a registered or unregistered vehicle transfers or assigns the owner's title or interest to the vehicle:

1. If the vehicle is registered:

(a) The owner shall endorse on the certificate of title to the vehicle an assignment with the warranty of title in the form printed on the certificate.

(b) Except as provided in section 28-2094, the owner shall deliver the certificate to the purchaser or transferee at the time of delivery of the vehicle to the purchaser or transferee.

(c) The registration of the vehicle expires AND THE OWNER SHALL TRANSFER THE LICENSE PLATES, SURRENDER THE LICENSE PLATES TO THE DEPARTMENT OR AN AUTHORIZED THIRD PARTY OR SUBMIT AN AFFIDAVIT OF LICENSE PLATE DESTRUCTION WITHIN THIRTY DAYS AFTER THE OWNER TRANSFERS OR ASSIGNS THE OWNER'S TITLE OR INTEREST IN THE VEHICLE.

(d) Except as otherwise provided by law, the license plates assigned to the vehicle shall remain on the vehicle.

(e) The owner shall remove the registration card issued for the vehicle, endorse the name and address of the transferee and the date of transfer and immediately forward the card or other written notification to the department.

(d) EXCEPT AS PROVIDED IN SECTION 28-2091, THE ACQUIRING OWNER SHALL APPLY FOR REGISTRATION OR TITLE, OR BOTH, WITHIN FIFTEEN DAYS AFTER THE RELINQUISHING OWNER TRANSFERS OR ASSIGNS THE RELINQUISHING OWNER'S TITLE OR INTEREST IN THE VEHICLE. THE DIRECTOR MAY PRORATE THE REGISTRATION PERIOD AS THE DIRECTOR DEEMS NECESSARY TO COINCIDE WITH EMISSIONS INSPECTION REQUIREMENTS.

(e) EXCEPT IF THE ACQUIRING OWNER IS AN INSURER WHO ACQUIRES THE VEHICLE PURSUANT TO A CLAIM SETTLEMENT, THE ACQUIRING OWNER SHALL DISPLAY ON THE VEHICLE A TEMPORARY REGISTRATION PLATE, ANOTHER PERMIT OR A VALID LICENSE PLATE AS PRESCRIBED BY THE DEPARTMENT UNTIL OWNERSHIP OF THE VEHICLE IS TRANSFERRED IN THE DEPARTMENT'S RECORDS.

2. Regardless of whether or not the vehicle is registered:

(a) Except as provided in subsection B of this section, the owner shall deliver to the purchaser or transferee an odometer mileage disclosure statement in a form prescribed by the director.

(b) Except as provided in section SECTIONS 28-2060 AND 28-2091, the purchaser or transferee shall present the certificate of title to the department with the required fee within thirty FIFTEEN days after the transfer and:

(i) The department shall issue a new certificate of title to the purchaser or transferee.

(ii) If required, the purchaser or transferee shall apply for and obtain registration, and the department shall issue new license plates to the purchaser or transferee.

B. The odometer disclosure requirement of subsection A of this section does not apply to:

1. A motor vehicle that is ten model years of age or older.

2. A motor vehicle that has a gross vehicle weight rating of sixteen thousand pounds or more.

3. A vehicle that is not self-propelled.

4. A motor vehicle that is sold directly by the manufacturer to an agency of the United States in conformity with contractual specifications.

5. A new motor vehicle that is purchased for resale and not for use by the purchaser.

Sec. 3. Section 28-2091, Arizona Revised Statutes, is amended to read:

28-2091. Salvage certificate of title; nonrepairable vehicle certificate of title; violation; classification; definitions

A. If a vehicle subject to titling or registration pursuant to this chapter becomes a salvage vehicle or nonrepairable vehicle and is acquired by an insurance company as a result of a total loss insurance settlement, the insurance company or its authorized agent shall submit an application to the department within thirty days after the loss or settlement of the loss on a form prescribed by the department for a salvage certificate of title or nonrepairable vehicle certificate of title and include the following:

1. A properly endorsed certificate of title.

2. A lien satisfaction, if applicable.

3. The registration card.

4. The license plate PLATES, if any THE LICENSE PLATES ARE NOT RETAINED PURSUANT TO SECTION 28-2356 OR AN AFFIDAVIT OF LICENSE PLATE DESTRUCTION IS NOT SUBMITTED.

5. The appropriate fees.

B. If the registration card or license plate is lost or destroyed, the applicant shall state in a form prescribed by the department, under penalty of perjury, the circumstances of the loss or destruction.

C. Except for vehicles registered pursuant to section 28-2482, 28-2483 or 28-2484, if the owner retains possession of a salvage vehicle or nonrepairable vehicle, the owner shall comply with this section before receiving a total loss settlement from the insurance company or otherwise disposing of the vehicle.

D. Any other owner of a vehicle that is a salvage vehicle or nonrepairable vehicle shall apply for a salvage certificate of title or nonrepairable vehicle certificate of title pursuant to this section.

E. On receipt of a proper application, the department shall issue a salvage certificate of title or nonrepairable vehicle certificate of title for the vehicle.

F. If the department issues a nonrepairable vehicle certificate of title for a vehicle, the registration of the vehicle is cancelled. The front of a nonrepairable vehicle certificate of title shall be branded with the word "nonrepairable". The ownership of a vehicle for which a nonrepairable vehicle certificate of title has been issued shall not be reassigned more than two times on that certificate of title. If a nonrepairable vehicle certificate of title is issued for a vehicle, the department shall not issue any further certificate of title for that vehicle.

G. An owner of a vehicle that is not a salvage vehicle who sells the vehicle as scrap or for purposes of dismantling or destroying shall assign the certificate of title to the purchaser, and the purchaser shall comply with section 28-2094.

H. On sale of the vehicle, an owner of a salvage vehicle for which a salvage certificate of title has been obtained or an owner of a nonrepairable vehicle for which a nonrepairable vehicle certificate of title has been obtained shall assign and deliver the salvage certificate of title or nonrepairable vehicle certificate of title to the purchaser and shall notify the department of the name and address of the purchaser. The department shall issue a certificate of title to a vehicle that has been issued a salvage certificate of title as a result of a total loss settlement by reason of theft if the vehicle is recovered and was not wrecked or stripped of essential parts. For the purposes of this subsection, "essential parts" means integral and body parts, the removal, alteration or substitution of which will tend to conceal the identity or substantially alter the appearance of the vehicle.

I. Any person who sells a vehicle for which a salvage certificate of title has been issued and who knows a salvage certificate of title has been issued for the vehicle shall disclose to the buyer before completion of the sale that the vehicle is a salvage vehicle.

J. If a vehicle that is titled as a salvage vehicle is to be scrapped, dismantled or destroyed, the owner or purchaser shall comply with section 28-2094.

K. The provisions of this chapter that refer to titles apply to salvage certificates of title and nonrepairable vehicle certificates of title issued pursuant to this section unless they conflict with this section.

L. If a person has a currently registered vehicle that has subsequently become a total loss due to an accident or an unrecovered theft, the person may make a verified written application to the registering officer indicating the occurrence of the total loss. When the registering officer confirms that an application for a salvage certificate of title, nonrepairable vehicle certificate of title or dismantle certificate of title has been made, the registering officer shall:

1. Determine the amount of the vehicle license tax as provided for in section 28-5801.

2. Reduce the amount of the registration fee required pursuant to section 28-2003 and the vehicle license tax determined in paragraph 1 of this subsection by:

(a) One-twelfth for each full month of the registration period not yet expired if the vehicle is registered on an annual basis.

(b) One twenty-fourth for each full month of the registration period not yet expired if the vehicle is registered on a biennial basis pursuant to section 28-2159.

3. Refund the owner with the appropriate amount of the fee and tax previously paid, to be applied to the registration of another vehicle.

M. L. If a component part of a vehicle on which the vehicle identification number is affixed is to be replaced and if the vehicle is being repaired by a person other than its owner, the person shall notify the owner in writing and in the manner prescribed by the department that the part has been replaced, and the owner shall comply with section 28-2165.

N. M. A person who violates this section is guilty of a class 2 misdemeanor.

O. N. For the purposes of this section:

1. "Nonrepairable vehicle" means a vehicle of a type that is otherwise subject to titling and registration pursuant to this chapter and that either:

(a) Has no resale value except as a source of parts or scrap metal and the owner or insurer designates the vehicle solely as a source of parts or scrap metal.

(b) Is a completely stripped vehicle that is recovered from theft and that is missing the engine or motor, the transmission, all of the bolt-on sheet metal body panels, all of the doors and hatches, substantially all of the interior components and substantially all of the grill and light assemblies or that the owner designates has little or no resale value except its worth as a source of scrap metal or as a source of a vehicle identification number that could be used illegally.

(c) Is a completely burned vehicle that has been burned to the extent that there are no usable or repairable body or interior components, tires and wheels, engine or motor or transmission and that the owner irreversibly designates as having little or no resale value except as a source of scrap metal or as a source of a vehicle identification number that could be used illegally.

2. "Nonrepairable vehicle certificate of title" means a vehicle ownership document issued to the owner of a nonrepairable vehicle.

3. "Salvage vehicle" means a vehicle, other than a nonrepairable vehicle, of a type that is subject to titling and registration pursuant to this chapter 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 that insured the vehicle considers it uneconomical to repair the vehicle.

Sec. 4. Section 28-2207, Arizona Revised Statutes, is amended to read:

28-2207. Renewal of fleet registration; deletion of vehicle

A. On the renewal of a fleet registration, the department shall require payment of full license fees for each vehicle registered in the preceding year unless the vehicle has been deleted from the fleet as required by this section.

B. To delete a vehicle from a fleet, the fleet registrant shall surrender to the department the permanent registration card, the permanent validating sticker and the license plate NOTIFY THE DEPARTMENT THAT THE LICENSE PLATE ASSIGNED TO THE VEHICLE HAS BEEN REMOVED FROM THE VEHICLE. NOTWITHSTANDING SECTION 28-2058, THE DEPARTMENT MAY ALLOW A FLEET REGISTRANT TO RETAIN A LICENSE PLATE THAT IS NOT TRANSFERRED TO ANOTHER VEHICLE. IF THE DEPARTMENT DOES NOT ALLOW A FLEET REGISTRANT TO RETAIN THE LICENSE PLATE, THE FLEET REGISTRANT SHALL EITHER SURRENDER THE LICENSE PLATE TO THE DEPARTMENT OR AN AUTHORIZED THIRD PARTY OR SUBMIT AN AFFIDAVIT OF LICENSE PLATE DESTRUCTION AS PRESCRIBED BY THE DIRECTOR. If the card, sticker or license plate is lost or stolen, the fleet registrant shall submit a sworn statement detailing the circumstances for the inability to RETAIN, surrender OR DESTROY the card, sticker or license plate.

Sec. 5. Title 28, chapter 7, article 11, Arizona Revised Statutes, is amended by adding section 28-2356, to read:

28-2356. Transfer of license plates to another vehicle

A. EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, THE OWNER OF A VEHICLE FOR WHICH THE DEPARTMENT PROVIDED LICENSE PLATES PURSUANT TO SECTION 28-2351 SHALL RETAIN THOSE LICENSE PLATES WHEN THE OWNER TRANSFERS THE VEHICLE TO ANOTHER PERSON.

      B.  THE  DEPARTMENT  MAY  ASSIGN  THE  LICENSE  PLATES  RETAINED  PURSUANT  TO
 SUBSECTION  A  OF THIS SECTION TO ANOTHER VEHICLE THAT BELONGS TO THE OWNER IF ALL OF THE
 FOLLOWING APPLY:
      1.  THE OTHER VEHICLE IS OF THE SAME VEHICLE TYPE.
      2.  THE  OWNER  MAKES  PROPER  APPLICATION  TO  THE  DIRECTOR OR A THIRD PARTY
 AUTHORIZED PURSUANT TO CHAPTER 13 OF THIS TITLE.
      3.  THE OWNER PAYS A TRANSFER FEE OF TWELVE DOLLARS IN  ADDITION  TO ANY OTHER
 FEES REQUIRED BY LAW.
      4.  IF  THE  REGISTRATION  FEES,  VEHICLE  LICENSE  TAX,  GROSS  WEIGHT FEES,A
 COMMERCIAL REGISTRATION FEES, SPECIAL PLATE FEES AND MOTOR CARRIER FEES ARE MORE THAN THE
 SIMILAR FEES AND TAXES REQUIRED TO REGISTER THE VEHICLE TO WHICH THE LICENSE  PLATES WERE
 PREVIOUSLY  ASSIGNED,  THE  OWNER  PAYS  ANY  ADDITIONAL  FEES  AND TAXES REQUIRED AFTERA
 SUBTRACTING ANY CREDIT ALLOWED UNDER SUBSECTION E OF THIS SECTION.
      C.  IF THE OTHER VEHICLE IS NOT OF THE SAME VEHICLE TYPE  AS  THE  VEHICLE FOR
 WHICH THE LICENSE PLATES WERE PROVIDED BY THE DEPARTMENT PURSUANT TO SECTION 28-2351, THE
 OWNER SHALL EITHER SURRENDER THE LICENSE PLATES TO THE DEPARTMENT OR AN AUTHORIZED  THIRD
 PARTY  OR SUBMIT AN AFFIDAVIT OF LICENSE PLATE DESTRUCTION AS PRESCRIBED BY THE DIRECTOR.
 ON SURRENDER  OF  THE  LICENSE  PLATES  OR  SUBMISSION  OF  AN AFFIDAVIT OF LICENSE PLATE
 DESTRUCTION, THE DEPARTMENT SHALL PROVIDE NEW LICENSE PLATES  OF  THE PROPER VEHICLE TYPE
 TO  THE  OWNER  AND, SUBJECT TO SUBSECTION D OF THIS SECTION, CREDIT THE  OWNER  WITH  AN
 AMOUNT EQUAL TO THE UNEXPENDED PORTION OF THE FEES AND TAXES ORIGINALLY PAID BY THE OWNER
 FOR REGISTRATION  AND  LICENSE  PLATES TOWARD FEES AND TAXES CHARGED FOR THE REGISTRATION
 AND LICENSE PLATES OF THE APPROPRIATE NEW VEHICLE TYPE.
      D.  IF FEES AND TAXES CHARGED FOR THE REGISTRATION OF ANOTHER VEHICLE TO WHICH
 LICENSE PLATES ARE ASSIGNED ARE LESS THAN THE SIMILAR FEES AND TAXES FOR THE REGISTRATION
 OF THE VEHICLE TO WHICH THE LICENSE  PLATES  WERE  LAST  ASSIGNED  OR  IF  FEES AND TAXES
 CHARGED FOR NEW LICENSE PLATES OF A DIFFERENT VEHICLE TYPE ARE LESS THAN FEES  AND  TAXES
 FOR  THE  REGISTRATION  OF  THE  OWNER'S PREVIOUS VEHICLE, THE OWNER IS NOT ENTITLED TO A
 REFUND EXCEPT AS PROVIDED IN SUBSECTION G OF THIS SECTION.
      E.  THE OWNER OF A REGISTERED  VEHICLE WHO TRANSFERS LICENSE PLATES TO ANOTHER
 VEHICLE  OR  WHO SURRENDERS LICENSE PLATES OR  SUBMITS  AN  AFFIDAVIT  OF  LICENSE  PLATE
 DESTRUCTION PURSUANT  TO  SUBSECTION  C  OF  THIS SECTION IS ENTITLED TO A CREDIT FOR THE
 UNEXPIRED PORTION OF THE FEES AND TAXES PAID AS  REQUIRED  BY  LAW IN ACCORDANCE WITH THE
 FOLLOWING CONDITIONS:
      1.  THE FEES AND TAXES ARE PRORATED ON A MONTHLY BASIS  BEGINNING ON THE FIRST
 DAY OF THE REGISTRATION MONTH FOLLOWING THE DATE OF ACQUISITION OF THE VEHICLE.
      2.  THE CREDIT SHALL BE AN AMOUNT COMPUTED AS FOLLOWS:
   (a)  IF THE VEHICLE IS REGISTERED ON AN ANNUAL BASIS, ONE-TWELFTH  FOR  EACH FULL
 MONTH OF THE REGISTRATION PERIOD NOT YET EXPIRED.
      (b)  IF  THE  VEHICLE  IS  REGISTERED  ON  A BIENNIAL BASIS PURSUANT TOC
 SECTION 28-2159, ONE-TWENTY-FOURTH FOR EACH FULL MONTH OF THE REGISTRATION PERIOD NOT YET
 EXPIRED.
          (c)  IF   THE   VEHICLE   IS   PERMANENTLY  REGISTERED,TRAPE
 ONE-TWENTY-FOURTH FOR EACH FULL MONTH AFTER ACQUISITION  OF  THE  VEHICLE  TO THE
 TWENTY-FOURTH  MONTH  AFTER  THE  DATE  OF  INITIAL PERMANENT REGISTRATION OF THE
 VEHICLE.
 

F. IF THE AMOUNT OF THE CREDIT COMPUTED PURSUANT TO SUBSECTION E OF THIS SECTION IS MORE THAN THE AMOUNT DUE FOR THE REGISTRATION PERIOD, THE DEPARTMENT SHALL CARRY FORWARD THE CREDIT TO SUBSEQUENT REGISTRATION PERIODS.

G. THE OWNER MAY APPLY TO THE DEPARTMENT FOR A REFUND OF THE UNEXPIRED PORTION OF THE FEES AND TAXES PAID IF THE OWNER OF A REGISTERED VEHICLE SURRENDERS LICENSE PLATES OR SUBMITS AN AFFIDAVIT OF LICENSE PLATE DESTRUCTION PURSUANT TO SUBSECTION C OF THIS SECTION, THE OWNER DOES NOT CLAIM A CREDIT PURSUANT TO SUBSECTION E OF THIS SECTION AND THE REFUND IS MORE THAN THREE HUNDRED FIFTY DOLLARS. THE DEPARTMENT SHALL COMPUTE THE REFUND AS PRESCRIBED IN SUBSECTION E OF THIS SECTION.

          H.  AN  OWNER WHO TRANSFERS LICENSE  PLATES  TO  ANOTHER  VEHICLET
 PURSUANT TO THIS SECTION  IS  SUBJECT  TO  THE  SAME PENALTIES FOR THE USE OF THE
 LICENSE PLATES ON ANOTHER VEHICLE OR FOR IMPROPER  USE  OF  THE LICENSE PLATES AS
 THE OWNER WOULD HAVE BEEN SUBJECT TO FOR USE OF THE LICENSE PLATES ON THE VEHICLE
 TO WHICH THE PLATES WERE PREVIOUSLY ASSIGNED.
 

I. THE DIRECTOR SHALL ADOPT RULES NECESSARY TO ADMINISTER THIS SECTION.

Sec. 6. Title 28, chapter 7, article 14, Arizona Revised Statutes, is amended by adding section 28-2488, to read:

28-2488. Relinquishment of special plates

IF A PERSON WHO HAS BEEN ISSUED SPECIAL PLATES PURSUANT TO THIS ARTICLE SELLS, TRADES OR OTHERWISE RELEASES OWNERSHIP OF THE VEHICLE TO WHICH THE SPECIAL PLATES HAVE BEEN ASSIGNED, THE PERSON MAY RELINQUISH THE PLATES TO THE NEW OWNER OF THE VEHICLE. ON RELINQUISHING THE SPECIAL PLATES, THE PERSON RELEASES PRIORITY TO THE LETTERS, NUMBERS OR COMBINATION OF LETTERS AND NUMBERS THAT IS DISPLAYED ON THE SPECIAL PLATES IN THE MANNER PRESCRIBED BY THE DIRECTOR. THE PERSON TO WHOM THE SPECIAL PLATES ARE RELINQUISHED SHALL APPLY TO THE DEPARTMENT FOR ISSUANCE OF THE SPECIAL PLATES TO THAT PERSON.

Sec. 7. Appropriation; purpose; exemption

A. The sum of $900,600 is appropriated from the state highway fund to the department of transportation in fiscal year 2000-2001 for the implementation of this act.

B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 8. Effective date

Sections 28-2051, 28-2058, 28-2091 and 28-2207, Arizona Revised Statutes, as amended by this act, and sections 28-2356 and 28-2488, Arizona Revised Statutes, as added by this act, are effective from and after December 31, 2001.

APPROVED BY THE GOVERNOR APRIL 10, 2000.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 10, 2000.