Assigned to NRAE                                                                                                                                        AS ENACTED

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED

FACT SHEET FOR S.B. 1250

 

watercraft; towing companies; notice

 

Purpose     

 

Allows the Arizona Game and Fish Department to release watercraft registration information to towing companies in possession of an unidentified watercraft for the purpose of notifying the owners and lien holders of their intent to sell the watercraft.  Allows the Department to transfer ownership of abandoned watercrafts to a towing company.

 

Background

 

The Arizona Game and Fish Department (Department) can divulge information from a watercraft registration record only if the person requesting the information knows the name of the owner, the hull identification number and the Department-issued number assigned to the watercraft.  Some persons and agencies are exempt from these requirements, including state and federal agencies or courts, officers of the law, certain financial institutions, private investigators and attorneys.  However, in the case of an abandoned watercraft at a towing company, the Department is unable to divulge ownership information.

 

S.B. 1250 establishes the requirements for notifying watercraft owners and lien holders that a towing company is in possession of their watercraft.  The bill also establishes transfer of ownership procedures for both the Department and the towing company if no authorized persons come forward to claim the watercraft and allows the Department to adopt fees for the new procedures.  There is no known fiscal impact to the state general fund relating to the provisions of this bill.

 

Provisions

 

Towing Company Responsibilities

 

1.      Requires a towing company that tows a watercraft to obtain watercraft registration information from the Department and provide written notification to the owners and lien holders of the watercraft’s location.

 

2.      Requires the towing company to submit a report to the Director if the watercraft is not removed within 15 days after notifying the owner and lien holders of the watercraft’s location.

 

3.      Requires the towing company to notify the Department within 24 hours if the watercraft is claimed by the owners or lien holders.

  

4.      Requires the towing company to maintain records that include the request for owner and lienholder identification information, the notification sent to the owner or lienholder, the application for transfer of ownership and any other related documents.  Requires these records to be maintained for three years and allows these records to be audited by any law enforcement officer or the Department.  Failure to maintain records is a class 2 misdemeanor.

 

Notification Process and Transfer of Ownership

 

5.      Allows the Department to supply watercraft registration information to towing companies that possess an unidentified watercraft and intend to notify the owners and lien holders of the watercraft of the company’s intent to sell the watercraft.

 

6.      Requires the Department, upon receipt of a report by a towing company of an unclaimed watercraft, to determine the names of the owners and lien holders and notify all interested parties by mail. Stipulates that the notice must be mailed within 5 business days for watercrafts with in-state records and 30 days for all other watercrafts.

 

7.      Allows the Department to prescribe rules and establish fees for processing abandoned watercraft.

 

8.      Stipulates that if the Department is unable to determine the names of the owners and lien holders, the Department must publish a notice of its intent to transfer ownership of the watercraft in a newspaper or other publication of general circulation in the county in which the watercraft was towed.

 

9.      Stipulates that if the watercraft remains unclaimed 30 days after the notice was mailed to the owners and lien holders or ten days after the notice was published in the newspaper, the Director must determine if the watercraft is stolen.

 

10.  Allows the Director, upon receiving notification that the watercraft is not stolen, to transfer ownership of the watercraft to the towing company free and clear of all liens or encumbrances.

 

11.  Requires the towing company, in order for ownership of the watercraft to be transferred, to certify that it is in possession of the watercraft and that no person has entered into an agreement for the release or return of the watercraft.

 

Liability

 

12.  Removes liability from the state, its agencies and employees for relying in good faith upon the contents of the reports and affidavits.

 

13.  Removes liability from the towing company for properly obtaining a transfer of ownership.

 

Miscellaneous

 

14.  Makes technical and conforming changes.

15.  Becomes effective on January 1, 2003.

 

Amendments Adopted by Committee

 

1.      Allows the Department to prescribe rules for processing an abandoned watercraft and set a fee of up to $10 for processing a report.

 

2.      Becomes effective upon signature of the Governor.

 

Amendments Adopted by House of Representatives

 

1.      Allows 15 days for watercraft owners to remove towed watercraft.

 

2.      Removes the fee of up to $10 for processing abandoned watercraft reports.

 

3.      Requires a towing company to maintain records for three years and allows records to be audited.  Failure to maintain records is a class 2 misdemeanor.

 

Amendments Adopted by Conference Committee

 

·        Restores the ability of the Department to establish fees for processing abandoned watercraft.

 

Senate Action                                                               House Action

 

NRAE              3/14/02            DPA    6-0-2-0                        TRANS           4/15/02      DPA      7-3-0-0

3rd Read           3/21/02                        22-7-1-0          3rd Read           4/29/02                    46-10-4-0

Final Read        5/16/02                        26-1-3-0          Final Read        5/20/02                    50-8-2-0

 

Signed by Governor 5/21/02

Chapter 314

 

 

Prepared by Senate Staff

June 4, 2002