REVISED

FACT SHEET FOR H.B. 2415

salvage vehicles; recovered vehicles; titles

Purpose

Prescribes additional requirements the Arizona Department of Transportation Motor Vehicle Division (MVD) must comply with before issuing a certificate of title for a vehicle that has been issued a salvage certificate of title as a result of theft, if the vehicle is recovered and not wrecked or stripped of essential parts.

Background

Currently, MVD must issue a regular certificate of title to a vehicle that was previously issued a salvage certificate of title, if the vehicle is stolen and recovered but is not wrecked or stripped of essential parts. Statute defines “essential parts” as 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. MVD policy allows the owner of a recovered stolen vehicle to apply for a salvage and a restored salvage title if a level II inspection has been performed and the vehicle is operable. Pursuant to MVD policy, a recovered stolen vehicle that is undamaged can be issued a regular title provided that a level II inspection is performed to ensure the vehicle is properly equipped for highway use, properly identified and receives an affidavit from the insurance company stating the vehicle was stolen and subsequently recovered.

There is no anticipated fiscal impact associated with this legislation.

Provisions

1. Requires MVD to 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 not wrecked or stripped of essential parts and receives an affidavit from the insurance company stating that either the vehicle was not wrecked or stripped of essential parts and the insurance company had no actual knowledge the airbag deployed or was removed or the vehicle is a recovered theft and to the insurance company's knowledge, the air bad deployed or was removed from the vehicle. The insurance company is required to list the location in the vehicle of each airbag deployment of removal.

2. Requires MVD to mark its records indicating airbag deployment or removal.

3. Requires the insurance company to provide a copy of the affidavit to the vehicle purchaser.

4. Requires the insurance company to submit an affidavit to MVD indicating that components of the airbag system, other than the airbag or airbag module, or other parts of the vehicle were removed compromising the functional integrity of the airbag system or the structural integrity of the vehicle and prohibits MVD from issuing a certificate of title to the vehicle.

5. Authorizes MVD to issue a restored salvage certificate of title if the vehicle is repairable, MVD completes a successful level III inspection of the vehicle and meets other requirements presented by the director.

6. Establishes a class 6 felony for the owner of a vehicle to intentionally not inform a subsequent purchaser of the deployment or removal of the airbag or airbag module.

7. Establishes a class 6 felony for a person who knowingly makes a false certification or false affirmation concerning salvage titles, disclosure or affidavits.

8. Defines "essential parts".

9. Makes conforming changes.

10. Provides for a general effective date.

Amendments Adopted by Committee

1. Modifies requirements for a certificate of title to be issued for a vehicle that is a recovered theft and previously issued salvage certificate of title.

2. Requires MVD to mark its records indicating airbag deployment or removal.

3. Requires the insurance company to provide a copy of the affidavit to the vehicle purchaser.

6. Establishes a class 6 felony for the owner of a vehicle to intentionally not inform a subsequent purchaser of the deployment or removal of the airbag or airbag module.

7. Redefines "essential parts".

House Action Senate Action

TRANS 2/4/02 DPA 9-0-0-1-0 APPROP 4/9/02 DP 12-0-2-0

3^rd Read 2/12/02 59-0-1-0 TRANS 4/18/02 DPA 5-0-3-0

Prepared by Senate Staff