Assigned to TAT FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
REVISED
FACT SHEET FOR H.B. 2292
motor vehicle dealers; sales; cancellation
Purpose
Allows a motor vehicle dealer and purchaser to agree to rescind or cancel a motor vehicle
sale, requires the dealer to return all fees, taxes or other monies to the rightful parties and outlines
documentation requirements. Allows motor vehicle contracts and records to be in an electronic
form, as specified.
Background
A licensed motor vehicle dealer, including a wholesale motor vehicle dealer or broker,
must keep and maintain at the licensee's place of business a permanent record as prescribed by the
Director of the Arizona Department of Transportation (ADOT) containing: 1) a particular
description of each motor vehicle that was bought, sold, brokered or exchanged by the licensee or
received or accepted by the licensee for sale, brokering or exchange, each used motor vehicle body
or chassis that is sold or otherwise disposed of, and each motor vehicle that is bought or otherwise
acquired and wrecked by the licensee; 2) the name and address of a person from whom a motor
vehicle, motor vehicle body or motor vehicle chassis was purchased or otherwise acquired and the
date of purchase or acquisition; and 3) the name and address of a person to whom a motor vehicle,
motor vehicle body or motor vehicle chassis was sold or otherwise disposed of, the date it was sold
or disposed of and a sufficient description of the vehicle, body or chassis to identify it.
A motor vehicle dealer must provide a customer with a written contract and maintain a
copy of the contract for three years at the dealer's established place of business (A.R.S. § 28-4403).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
Rescinded or Canceled Vehicle Sales
1. Allows a motor vehicle dealer and purchaser to elect to rescind or cancel a motor vehicle sale
within 30 days of the sale date.
2. Requires a motor vehicle dealer to document a vehicle sale recission or cancellation and submit
the documentation to ADOT within 15 days of agreeing to cancel or rescind a sale.
3. Requires the documentation to include:
a) a copy of the agreement executed by the dealer and purchaser, and financing lender if the
purchase was financed; and
b) a certificate of title, if issued, or an attestation to the loss or destruction of the title. FACT SHEET – Revised
H.B. 2292
Page 2
4. Requires ADOT, within seven days of receiving documentation, to:
a) rescind, cancel or revoke any certificate of title issued or applied for;
b) refund to the motor vehicle dealer any taxes and fees the dealer paid to ADOT, excluding
the certificate of title fee, and any fees retained by ADOT, reimbursed to ADOT or assessed
in addition to prescribed fees by an agent, authorized third party or authorized third party
electronic service provider; and
c) issue a certificate of title to the motor vehicle dealer that shows the dealer as the vehicle
owner and the odometer mileage reading as recorded at the time of the rescinded or
cancelled sale.
5. Prohibits a motor vehicle dealer from offering a motor vehicle subject to a sale recission or
cancellation for retail sale until the dealer receives the certificate of title from ADOT.
6. Requires a motor vehicle dealer, upon receipt of the required documentation from the
applicable department, to return all fees, taxes and other monies to the rightful parties in a
manner described by ADOT.
7. Requires a motor vehicle dealer, within three business days of an agreement, to rescind or
cancel a sale, to return all amounts received from a lienholder or prospective lienholder in
connection with the financing of a rescinded or cancelled sale.
8. Specifies that a sale recission or cancellation does not negate that a motor vehicle has been the
subject of a previous retail sale.
Miscellaneous
9. Allows a licensed motor vehicle dealer, including a broker or wholesale motor vehicle dealer,
to keep and maintain the required permanent record in an electronic format.
10. Allows a motor vehicle dealer to provide a customer with an electronic contract.
11. Requires ADOT to determine that a vehicle registration application is genuine, rather than
genuine and regular, before issuing a registration card to an owner and license plate to a
vehicle.
12. Makes conforming changes.
13. Becomes effective on the general effective date.
Revisions
• Clarifies that a motor vehicle dealer is required to return monies to the rightful parties after
receiving the required documentation from the applicable department.
House Action
TI 2/8/23 DPA 10-0-1-0
3
rd
Read 2/21/23 60-0-0
Prepared by Senate Research
March 3, 2023
KJA/CB/sr