ARIZONA STATE SENATE
Phoenix, Arizona
licensed vehicle dealers
Allows licensed and
unlicensed vehicle dealers, and automotive recyclers who receive a notice of
suspension or cease and desist by the Arizona Department of Transportation
(ADOT) to request a hearing within 30 days after receipt of the notice. Redefines “fleet” in the outlining of
criminal background investigation exemptions.
Makes various other changes to the administration of ADOT regarding
licensed vehicle dealers.
Statute currently outlines
the procedures for handling various types of cease and desist orders as well as
license suspension for licensed and unlicensed vehicle dealers and automotive
recyclers. Currently, when a vehicle
dealer or automotive recycling agency receives either a notice of license
suspension or a cease and desist order, ADOT automatically schedules a hearing. These hearings are to designed to give the
noncompliant agency a chance to dispute claims in the judicial process. However, according to the Motor Vehicle
Division (MVD), there have been many instances where a hearing is scheduled and
the person in question fails to appear in court. This legislation transfers the burden of scheduling a hearing to
the vehicle dealer to save ADOT the time and money of holding unnecessary
hearings.
Currently, statute allows
the Director of ADOT to authorize third parties to perform certain functions
such as registering vehicles, granting licensure and driver license testing and
application processing. Within this
scope of statute, the procedure for conducting criminal background checks by an
authorized third party is outlined. An
owner of a fleet is exempt from a criminal background exemption. In current statute, a fleet is defined as
two or more vehicles owned by a person and registered in Arizona. This statutory definition as deemed itself
problematic because any person in Arizona who owns two or more motor vehicles
will be free from a authorized third party criminal background
investigation. This legislation
attempts to address this issue by limiting the requirement to be designated a
fleet to owners or registrants of 100 or more vehicles.
There is no anticipated
fiscal impact to the general fund associated with this legislation.
1. Allows ADOT to order a licensed dealer or automotive recycler engaged in prohibited activity to cease from engaging in business or engaging in the prohibited activity.
2. Allows a licensed or unlicensed vehicle dealer, automotive recycler or manufacturer who is ordered by ADOT to cease and desist business or prohibited activity, to submit a written request for a hearing within 30 days after receipt of the notice.
3. Removes the responsibility of ADOT to send a notice of violation by personal delivery or certified mail to a noncompliant unlicensed dealer or automotive recycler.
4. Increases the number of vehicles in a fleet from two or more vehicles to 100 or more vehicles for the purpose of criminal background check exemption.
5. Increases the maximum bond amount from $50,000 to $100,000 for all licensed vehicle dealers.
6. Specifies that authorized representatives of ADOT or any law enforcement agency may, at any time during regular business hours, inspect the records kept by a licensed vehicle dealer, title service company or authorized third party.
7. Removes a motor vehicle dealer in mobile medical clinics from being required to conspicuously display a vehicle dealer license in the place of business.
8. Stipulates that a vehicle dealer, recycler or transporter license is neither transferable nor subject to sale or reassignment.
9. Requires a motor vehicle broker to post a sign at the entrance of the broker’s principal place of business indicating that motor vehicle brokering is conducted from the premises.
10. Requires a title service company to conspicuously display its license in the place of business for which it was obtained and stipulates that the license is neither transferable nor subject to sale or reassignment.
11. Clarifies that the application form for an aircraft dealer license be on a form prescribed or authorized by ADOT.
Amendments
Adopted by the Transportation Committee
1. Removes the requirement that an applicant for an off-premises exhibition or sales event permit apply for the permit at least 10 days prior to the proposed event.
TRANS 1/22/01 DPA (9-0-0-1) TRANS 3/15/01 DPA 8-0-0-0
FII 1/31/01 DP (10-0-0-0)
3rd Read 2/14/01 DPA (58-0-2)
Prepared by Senate Staff
April 19, 2001