HB2052 - 451R

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          House Engrossed
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  State of Arizona
  House of Representatives
  Forty-fifth Legislature
  First Regular Session
  2001
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     HOUSE BILL 2052
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AN ACT

AMENDING SECTION 28-448, ARIZONA REVISED STATUTES; AMENDING SECTION 28-2051, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2000, CHAPTER 343, SECTION 10; AMENDING SECTION 28-2051, ARIZONA REVISED STATUTES, AS AMENDED BY THIS ACT; PROVIDING FOR THE DELAYED REPEAL OF SECTION 28-2051, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2000, CHAPTER 198, SECTION 1; AMENDING SECTIONS 28-2054 AND 28-2055, ARIZONA REVISED STATUTES; AMENDING SECTION 28-2058, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2000, CHAPTER 198, SECTION 2; AMENDING SECTION 28-2059, ARIZONA REVISED STATUTES; AMENDING TITLE 28, CHAPTER 7, ARTICLE 2, ARIZONA REVISED STATUTES, BY ADDING SECTION 28-2064; AMENDING SECTION 28-2132, ARIZONA REVISED STATUTES; PROVIDING FOR THE DELAYED REPEAL OF SECTION 28-2134, ARIZONA REVISED STATUTES; AMENDING TITLE 28, CHAPTER 7, ARTICLE 4, ARIZONA REVISED STATUTES, BY ADDING A NEW SECTION 28-2134; AMENDING SECTIONS 28-2157 AND 28-2163, ARIZONA REVISED STATUTES; PROVIDING FOR THE DELAYED REPEAL OF SECTION 28-2064, ARIZONA REVISED STATUTES, AS ADDED BY THIS ACT; MAKING AN APPROPRIATION; BLENDING MULTIPLE ENACTMENTS; RELATING TO VEHICLE TITLES AND REGISTRATION.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 28-448, Arizona Revised Statutes, is amended to read:

28-448. Notice of address or name change; address update; civil traffic violation

A. If a person's name or address changes after the person applies for or receives a driver license or nonoperating identification license or after the person applies for or receives a vehicle registration or vehicle title, the person shall notify the department within ten days after the change of the old and new address or the former and new name and the following:

1. If a registration or title is applied for or received, the number of vehicles registered to the person and the vehicle identification numbers of the vehicles.

2. If a driver license or nonoperating identification license is applied for or received, the person's date of birth and the number of each license held by the person or a statement that each license is suspended, revoked or canceled.

B. A person may notify the department of an address change by telephone, in writing, in person or by approved electronic means AND OF A NAME CHANGE IN PERSON OR IN WRITING.

C. The department may update an address in a vehicle registration record or driver license record if a traffic citation received by the department or records of another consenting government agency indicate an address change after the date the address was stated in department records.

D. A violation of this section is a civil traffic violation.

Sec. 2. Section 28-2051, Arizona Revised Statutes, as amended by Laws 2000, chapter 343, section 10, is amended to read:

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

A. A person shall apply on a form ~~furnished~~ PRESCRIBED OR AUTHORIZED by the department for a certificate of title to a motor vehicle, trailer or semitrailer to the department. The person shall make the application within thirty 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. The last license plate number if applicable and if known and the state in which the license plate number was issued.

7. 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.

8. 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.

(d) The signature of the lessor.

9. 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.

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

11. Other information required by the department.

C. Unless subsection B, paragraph 8 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 OR ELECTRONIC TITLE from the manufacturer showing the date of sale to the dealer or person first receiving the vehicle from the manufacturer. Before the department issues a certificate of title to a new vehicle, a certificate OR ELECTRONIC TITLE from the manufacturer shall be surrendered to the department.

(b) The name of the dealer or person.

(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. 3. Section 28-2051, Arizona Revised Statutes, as amended by section 2 of this act, 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 prescribed or authorized by the department for a certificate of title to a motor vehicle, trailer or semitrailer ~~to the department~~. 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. The last license plate number if applicable and if known and the state in which the license plate number was issued.

7. 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.

8. 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.

(d) The signature of the lessor.

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

11. Other information required by the department.

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 or electronic title from the manufacturer showing the date of sale to the dealer or person first receiving the vehicle from the manufacturer. Before the department issues a certificate of title to a new vehicle, a certificate or electronic title from the manufacturer shall be surrendered to the department.

(b) The name of the dealer or person.

(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.

Sec. 4. Delayed repeal

Section 28-2051, Arizona Revised Statutes, as amended by Laws 2000, chapter 198, section 1, is repealed from and after December 31, 2001.

Sec. 5. Section 28-2054, Arizona Revised Statutes, is amended to read:

28-2054. Certificate of title; application processing

A. The department shall file each application for a certificate of title. When the department is satisfied that the application is genuine and regular and that the applicant is entitled to a certificate, it shall register the vehicle and the owner alphabetically under the name of the owner and numerically under the serial number and under a distinctive title number assigned to the vehicle and the owner.

B. In addition to all other requirements, if the application is for a certificate of title to a mobile home the department shall not issue or transfer a certificate of title on the mobile home if there are any delinquent unsecured personal property taxes on the mobile home.

C. Except as provided in article 4 of this chapter, a person who owns a motor vehicle, trailer or semitrailer, on furnishing satisfactory proof of ownership to the director, may procure a certificate of title to the vehicle, whether or not a certificate of title has been issued previously. If the director determines that an applicant for a certificate of title to a motor vehicle, trailer or semitrailer is not entitled to a certificate of title, the director may refuse to issue a certificate or to register the vehicle and, for like reason, after notice, may revoke a registration already issued or an outstanding certificate of title. Within fifteen days of the date the notice is mailed, the applicant may request a hearing.

Sec. 6. Section 28-2055, Arizona Revised Statutes, is amended to read:

28-2055. Certificate of title; content requirements; delivery

A. The DEPARTMENT OR AN AUTHORIZED THIRD PARTY SHALL PRINT THE certificate of title, AND IT shall contain forms for assignment of title or interest and warranty by the owner, with space for notation of liens and encumbrances on the vehicle at the time of transfer. The certificate of title shall also contain the odometer mileage disclosure statement pursuant to section 28-2058.

B. If a motor vehicle, trailer or semitrailer has been registered in any other state or country, the department shall retain in its records the name of the state or country in which the prior registration took place.

C. EXCEPT AS PROVIDED IN SECTION 28-2064, THE DEPARTMENT SHALL DELIVER OR MAIL THE ORIGINAL CERTIFICATE OF TITLE TO:

1. THE APPLICANT IF THERE ARE NOT ANY LIENS OR ENCUMBRANCES ON THE CERTIFICATE OF TITLE.

2. THE HOLDER OF THE LIEN OR ENCUMBRANCE FIRST IN TIME ON THE DATE OF THE APPLICATION IF THERE ARE LIENS OR ENCUMBRANCES ON THE CERTIFICATE OF TITLE.

Sec. 7. Section 28-2058, Arizona Revised Statutes, as amended by Laws 2000, chapter 198, section 2, 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 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 sections 28-2060 and 28-2091, the purchaser or transferee shall present the certificate of title to the department with the required fee within fifteen days after the transfer and:

(i) EXCEPT AS PROVIDED IN SECTION 28-2064, 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. 8. Section 28-2059, Arizona Revised Statutes, is amended to read:

28-2059. Obtaining a certificate of title; revocation

A. ~~Except as provided in article 4 of this chapter, a person who owns a motor vehicle, on furnishing~~ IF satisfactory proof of ownership IS FURNISHED to the director, THE DIRECTOR may ~~obtain~~ ISSUE a certificate of title ~~to the~~ FOR A motor vehicle, TRAILER OR SEMITRAILER whether or not a certificate of title has ever been issued FOR THAT MOTOR VEHICLE, TRAILER OR SEMITRAILER.

B. If the director determines that an applicant for a certificate of title to a motor vehicle, trailer or semitrailer is not entitled to a certificate of title, the director may refuse to issue a certificate or to register the vehicle and, after notice and a hearing, the director may revoke a registration already acquired or an outstanding certificate of title. The director shall serve the notice in person or by ~~certified~~ REGULAR mail. WITHIN FIFTEEN DAYS AFTER THE DATE THE NOTICE IS DELIVERED OR MAILED, THE APPLICANT MAY REQUEST A HEARING.

Sec. 9. Title 28, chapter 7, article 2, Arizona Revised Statutes, is amended by adding section 28-2064, to read:

28-2064. Electronic certificates of title system

A. THE DIRECTOR SHALL ESTABLISH A SYSTEM TO ALLOW THE VOLUNTARY RECORDING OF VEHICLE TITLE INFORMATION FOR NEWLY ISSUED, TRANSFERRED AND CORRECTED CERTIFICATES OF TITLE, INCLUDING PERFECTION AND RELEASE OF SECURITY INTERESTS, THROUGH ELECTRONIC MEDIA IN A COST-EFFECTIVE MANNER IN LIEU OF THE SUBMISSION AND MAINTENANCE OF PAPER DOCUMENTS AS PROVIDED IN THIS CHAPTER.

B. IN THE PROCESS OF ESTABLISHING THE SYSTEM, THE DIRECTOR SHALL:

1. RESEARCH METHODS BY WHICH THE DEPARTMENT, LENDING INSTITUTIONS AND SALES FINANCE COMPANIES MAY EXCHANGE AND MAINTAIN INFORMATION CONCERNING THE PERFECTION AND RELEASE OF VEHICLE SECURITY INTERESTS WITHOUT SUBMITTING OR RECEIVING A PAPER TITLE DOCUMENT.

2. DEVELOP METHODS BY WHICH LENDING INSTITUTIONS, SALES FINANCE COMPANIES AND MANUFACTURERS MAY ELECTRONICALLY SUBMIT UPDATED INFORMATION PERTAINING TO THE TITLE RECORD, INCLUDING THE ADDITION, ASSIGNMENT OR RELEASE OF VEHICLE SECURITY INTERESTS.

C. THE DIRECTOR MAY LIMIT THE NUMBER OF LENDING INSTITUTIONS AND SALES FINANCE COMPANIES PARTICIPATING IN THE SYSTEM BUT SHALL ENCOURAGE LENDING INSTITUTIONS AND SALES FINANCE COMPANIES OF VARIOUS SIZES TO PARTICIPATE. IF, AFTER THE SYSTEM HAS BEEN IN OPERATION FOR TWELVE MONTHS, THE DIRECTOR DETERMINES THAT THE SYSTEM IS SUCCESSFUL, THE DIRECTOR MAY EXPAND THE SYSTEM.

D. SECTION 28-444, SUBSECTION B APPLIES TO CERTIFICATES OF TITLE UNDER THE SYSTEM ESTABLISHED PURSUANT TO THIS SECTION.

Sec. 10. Section 28-2132, Arizona Revised Statutes, is amended to read:

28-2132. Indication of lien or encumbrance

A. The department shall provide on the application for title and the application for registration only a section that provides for the indication of a lien or encumbrance on the vehicle.

B. The applicant's signature on the application for title or the application for registration only is consent for the lien or encumbrance to be indicated by the department on its official title record for the vehicle.

C. Except as provided in subsection D and on receipt of the application as provided in this section, the department shall endorse on the application the date and hour it was received at the registering office of the department. ~~When the department is satisfied that the application is genuine and regular, it shall issue a new certificate of title that gives all of the following:~~

~~1. The name of the owner.~~

~~2. A statement of all liens or encumbrances.~~

~~3. The amount of the liens or encumbrances certified to the department as existing against the vehicle.~~

D. The department shall not issue a new certificate of title ~~to a purchaser or transferee~~ if the outstanding certificate of title indicates an existing lien or encumbrance unless the lien or encumbrance has been satisfied or the lienor or encumbrancer has consented in writing OR ELECTRONICALLY to the transfer of title.

Sec. 11. Delayed repeal

Section 28-2134, Arizona Revised Statutes, is repealed from and after December 31, 2002.

Sec. 12. Title 28, chapter 7, article 4, Arizona Revised Statutes, is amended by adding a new section 28-2134, to read:

28-2134. Satisfaction of lien or encumbrance; assignment of obligation by lienholder; penalty

A. WHEN A HOLDER OF A LIEN OR ENCUMBRANCE RECEIVES PAYMENT IN FULL SATISFYING A LIEN OR ENCUMBRANCE RECORDED UNDER THIS ARTICLE, THE HOLDER OF THE LIEN OR ENCUMBRANCE SHALL RELEASE THE LIEN OR ENCUMBRANCE AND DELIVER THE CERTIFICATE OF TITLE TO THE NEXT HOLDER OF A LIEN OR ENCUMBRANCE ENTITLED TO POSSESSION OF THE CERTIFICATE OF TITLE OR, IF THERE IS NOT ANOTHER HOLDER OF A LIEN OR ENCUMBRANCE ENTITLED TO POSSESSION OF THE CERTIFICATE OF TITLE, TO THE OWNER OF THE VEHICLE AT THE ADDRESS SHOWN ON THE CERTIFICATE OF TITLE.

B. IF A HOLDER OF A LIEN OR ENCUMBRANCE ASSIGNS THE OBLIGATION AND THE HOLDER LAWFULLY HAS POSSESSION OF THE CERTIFICATE OF TITLE, THE HOLDER SHALL DELIVER THE CERTIFICATE OF TITLE AT THE TIME OF ASSIGNMENT TO THE HOLDER'S ASSIGNEE. IF A HOLDER OF A LIEN OR ENCUMBRANCE IS NOT ENTITLED TO POSSESSION OF THE CERTIFICATE OF TITLE WHEN THE HOLDER ASSIGNS THE OBLIGATION, THE HOLDER SHALL IMMEDIATELY DELIVER THE CERTIFICATE OF TITLE TO THE ASSIGNEE WHEN THE HOLDER BECOMES LAWFULLY ENTITLED TO AND OBTAINS LAWFUL POSSESSION OF THE CERTIFICATE OF TITLE. THE HOLDER'S ASSIGNEE IS ENTITLED TO HOLD THE CERTIFICATE OF TITLE UNTIL THE OBLIGATION IS SATISFIED. WHEN THE OBLIGATION IS SATISFIED, THE ASSIGNEE SHALL DELIVER THE CERTIFICATE OF TITLE TO THE NEXT HOLDER OF A LIEN OR ENCUMBRANCE ENTITLED TO POSSESSION OF THE CERTIFICATE OF TITLE OR, IF THERE IS NOT ANOTHER HOLDER OF A LIEN OR ENCUMBRANCE ENTITLED TO POSSESSION OF THE CERTIFICATE OF TITLE, TO THE OWNER OF THE VEHICLE AS PRESCRIBED IN SUBSECTION A OF THIS SECTION.

C. IF A HOLDER OF A LIEN OR ENCUMBRANCE WHO POSSESSES A CERTIFICATE OF TITLE AS PROVIDED IN THIS ARTICLE REFUSES OR FAILS TO SURRENDER THE CERTIFICATE OF TITLE TO THE PERSON WHO IS LEGALLY ENTITLED TO POSSESSION OF THE CERTIFICATE OF TITLE ON THAT PERSON'S REQUEST AND WITHIN FIFTEEN BUSINESS DAYS AFTER THE HOLDER RECEIVES PAYMENT IN FULL SATISFACTION OF THE HOLDER'S LIEN OR ENCUMBRANCE, AFTER AN OPPORTUNITY FOR AN ADMINISTRATIVE HEARING, THE DEPARTMENT MAY IMPOSE AND COLLECT A CIVIL PENALTY FROM THE HOLDER OF THE LIEN OR ENCUMBRANCE TO BE DEPOSITED IN THE STATE HIGHWAY FUND ESTABLISHED BY SECTION 28-6991 AS FOLLOWS:

1. FIFTY DOLLARS IF THE CERTIFICATE OF TITLE IS SURRENDERED IN ACCORDANCE WITH THIS SUBSECTION WITHIN THREE ADDITIONAL BUSINESS DAYS.

2. THE PENALTY PROVIDED FOR IN PARAGRAPH 1 OF THIS SUBSECTION PLUS FIFTY DOLLARS FOR EACH ADDITIONAL DAY EXCEEDING EIGHTEEN BUSINESS DAYS THAT THE CERTIFICATE OF TITLE IS NOT SURRENDERED IN ACCORDANCE WITH THIS SUBSECTION UP TO A MAXIMUM OF FIVE HUNDRED DOLLARS FOR EACH CERTIFICATE OF TITLE.

D. THE DEPARTMENT MAY SATISFY A LIEN OR ENCUMBRANCE ON ITS RECORDS AND ON A CERTIFICATE OF TITLE TO A VEHICLE IF THE OWNER OF THE VEHICLE FURNISHES SATISFACTORY PROOF OF THE PAYMENT IN FULL OF THE UNDERLYING DEBT AND AN AFFIDAVIT STATING THE FOLLOWING:

1. THAT THE OWNER HAS MADE A DILIGENT SEARCH TO LOCATE THE HOLDER OF THE LIEN OR ENCUMBRANCE.

2. WITH PARTICULARITY THE STEPS TAKEN IN THE SEARCH.

3. THAT AFTER THE SEARCH THE HOLDER OF THE LIEN OR ENCUMBRANCE COULD NOT BE FOUND.

E. THE DEPARTMENT MAY SATISFY A LIEN OR ENCUMBRANCE AGAINST A VEHICLE ON ITS RECORDS BY ACCEPTING A CERTIFICATE OF TITLE TO THE VEHICLE ISSUED BY ANOTHER JURISDICTION IF ALL OF THE FOLLOWING CONDITIONS EXIST:

1. THE LIEN PREVIOUSLY RECORDED IN THIS STATE DOES NOT APPEAR ON THE TITLE PRESENTED FROM ANOTHER JURISDICTION.

2. THE TITLE WAS ISSUED BY THE OTHER JURISDICTION AT LEAST ONE YEAR BEFORE THE TIME IT WAS PRESENTED TO THIS STATE.

3. THE LAW OF THE OTHER JURISDICTION REQUIRES A LIEN OR ENCUMBRANCE TO BE RECORDED ON THAT STATE'S CERTIFICATE OF TITLE.

Sec. 13. Section 28-2157, Arizona Revised Statutes, is amended to read:

28-2157. Application for registration

A. A person shall apply to the department for registration of a motor vehicle, trailer or semitrailer on forms prescribed ~~and furnished~~ OR AUTHORIZED by the department.

B. The application shall contain:

1. The name and complete residence address of the owner.

2. A description of the vehicle, including the serial number.

3. If it is a new vehicle, the date of sale by the manufacturer or dealer to the person first operating the vehicle.

4. If the owner of the vehicle rents or intends to rent the vehicle without a driver, a statement of that fact.

5. Other facts required by the department.

C. The registering officer shall indicate on the face of the registration application that the registrant may be subject to vehicle emissions testing requirements pursuant to section 49-542.

D. On request of an applicant, the department shall allow the applicant to provide on the registration of a motor vehicle, trailer or semitrailer a post office box address that is regularly used by the applicant and that is located in the county in which the applicant resides.

E. The person shall include with the application the required fees and the certificate of title to the vehicle for which registration is sought. The registering officer may waive the requirement that the applicant present a certificate of title at the time of making an application for renewal if the registering officer has available complete and sufficient records to accurately compute the vehicle license tax.

F. The department may request an applicant who appears in person to register a motor vehicle, trailer or semitrailer to complete satisfactorily the vision screening test prescribed by the department.

G. A person applying for initial registration of a neighborhood electric vehicle shall certify in writing that a notice of the operational restrictions applying to the vehicle as provided in section 28-966 are contained on a permanent notice attached to or painted on the vehicle in a location that is in clear view of the driver.

Sec. 14. Section 28-2163, Arizona Revised Statutes, is amended to read:

28-2163. Cancellation of registration

A. The department shall cancel, SUSPEND, REVOKE OR DENY the registration of a vehicle that it determines is unsafe or unfit to be operated or that is not equipped as required by law AND SHALL RETRIEVE LICENSE PLATES AND REGISTRATION CARDS FOR THESE VEHICLES.

B. The department shall cancel the registration of a vehicle if the person to whom the registration card or license plates have been issued makes or permits to be made an unlawful use of the vehicle or permits the use of the vehicle by a person not entitled to the use.

Sec. 15. Effective date

A. Section 28-2051, Arizona Revised Statutes, as amended by section 3 of this act, is effective from and after December 31, 2001.

B. The following are effective from and after December 31, 2002:

1. Sections 28-2054, 28-2055, 28-2059 and 28-2132, Arizona Revised Statutes, as amended by this act.

2. Section 28-2058, Arizona Revised Statutes, as amended by Laws 2000, chapter 198, section 2 and this act.

3. Sections 28-2064 and 28-2134, Arizona Revised Statutes, as added by this act.

Sec. 16. Electronic certificates of title written report requirements

A. After the electronic certificates of title system established pursuant to section 28-2064, Arizona Revised Statutes, as added by this act, has been in operation for twelve months, the director of the department of transportation shall submit a written report on the department's experiences with the system to the speaker of the house of representatives, the president of the senate and the governor within ninety days. The report shall include:

1. System participation.

2. The fiscal impact of the system.

3. Customer acceptance and satisfaction with the system.

4. Whether or not the director plans to expand the system.

B. If the director expands the system, the director shall submit a written report on the department's experiences with the expanded system to the speaker of the house of representatives, the president of the senate and the governor no later than October 1, 2006. This report may include a recommendation to make any legislative changes necessary to make voluntary electronic media certificate of title transactions in lieu of submission of paper documents otherwise required by title 28, chapter 7, Arizona Revised Statutes, permanent.

Sec. 17. Delayed repeal

A. Section 16 of this act, relating to electronic certificates of title written report requirements, is repealed on January 1, 2007.

B. Section 28-2064, Arizona Revised Statutes, as added by this act, is repealed on January 1, 2009.

Sec. 18. Appropriations; purpose; exemption from lapsing

A. The following amounts are appropriated from the state highway fund to the department of transportation for the purposes of this act:

1. In fiscal year 2001-2002, $277,950.

2. In fiscal year 2002-2003, $60,000.

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