HB 2292
Initials JB Page 1 Senate Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
House: TI DPA 10-0-1-0 | 3
rd
Read 60-0-0-0
Senate: TAT DP 7-0-0-0 | 3
rd
Read 28-2-0-0
HB 2292: motor vehicle dealers; sales; cancellation
NOW: transportation; vehicle sales; license providers
Sponsor: Representative Cook, LD 7
Senate Engrossed
Overview
Permits a motor vehicle dealer, a purchaser and any lienholder to rescind or cancel the sale of
any motor vehicle if all parties agree and outlined requirements are followed.
History
When a holder of a lien or encumbrance receives a payment in full satisfying the lien or
encumbrance, the holder is required to release the lien or encumbrance and notify the owner of
the vehicle at the address shown on the certificate of title or, if the holder of the lien or
encumbrance has been previously notified of a sale or transfer of the vehicle, the person who is
legally entitled to possession that the Arizona Department of Transportation (ADOT) has issued
a certificate of title for the vehicle to.
If a holder of a lien or encumbrance who possesses the certificate of title refuses or fails to provide
the certificate of title to the person who is legally entitled to possess the certificate on that person's
request and within 15 business days after the holder receives payment, ADOT may impose and
after the opportunity for an administrative hearing collect a civil penalty of:
1) $50 if the certificate of title is surrendered within three additional business days; or
2) an additional $50 for each day exceeding 18 business days that the certificate of title is
not surrendered up to a maximum of $500 for each certificate of title (A.R.S. ยง 28-2134).
Provisions
Motor Vehicle Sale Rescission or Cancellation
1. States that when a motor vehicle dealer and purchaser agree to rescind or cancel the sale of
a motor vehicle within 30 Days of the date of the sale, the motor vehicle dealer is required to
document the cancelation or rescission of the sale, and after receiving the specified
documents from the applicable department, return all fees, taxes and other monies to the
rightful parties in a way prescribed by ADOT. Specifies the documentation must:
a) Be completed and submitted to ADOT within 15 days after the date the parties agreed to
cancel or rescind the sale;
b) Include a copy of the agreement providing for the recission or cancelation of the sale
executed by the motor vehicle dealer, purchaser and, if the purchase was financed, the
lender who financed the purchase; and
c) Include a certificate of title if it has been issued or an attestation that the certificate of title
was lost or destroyed. (Sec. 3)
2. Requires ADOT within seven days of receiving the documentation to:
a) rescind, cancel or revoke any application for a certificate of title or any issued certificate
of title; HB 2292
Initials JB Page 2 Senate Engrossed
b) refund to the motor vehicle dealer any fees and taxes paid to ADOT, except for the $4
certificate of title fee and other exempted fees; and
c) issue a certificate of title to the motor vehicle dealer that shows the dealer as the owner
and the odometer mileage reading as recorded at the time of the canceled or rescinded
sale. (Sec. 3)
3. Specifies that a motor vehicle whose sale is canceled or rescinded may not be offered for
retail sale until the motor vehicle dealer has received the certificate of title from ADOT. (Sec.
3)
4. Declares a rescission or cancellation of a motor vehicle sale does not negate that the motor
vehicle has been the subject of a previous retail sale. (Sec. 3)
5. Requires the motor vehicle dealer to return all amounts received from a lienholder or
prospective lienholder relating to the financing of the rescinded or canceled sale to the
lienholder within three business days after the dealer and purchaser agree to rescind or cancel
the sale. (Sec. 3)
Miscellaneous
6. States that the permanent record of a licensed wholesale motor vehicle dealer or broker may
be in an electronic format. (Sec. 2)
7. Allows a motor vehicle dealer to give a customer an electronic contract, instead of a written
contract. (Sec. 2)
8. Makes a technical change. (Sec. 1)
Senate Amendments
1. Authorizes a motor vehicle dealer and purchaser to rescind or cancel the sale of a motor
vehicle within 30 days after the date of the title application, instead of the date of the sale.
2. Requires the motor vehicle dealer to submit the required documentation of the recission or
cancellation to ADOT in a manner prescribed by ADOT.
3. Exempts, from what must be refunded, all applicable fees, reimbursements and retained
monies that are authorized for an authorized third party or third-party electronic service
provider
4. Specifies that the outlined 15-day and 7-day deadlines are business days.
5. Includes a delayed effective date of January 1, 2024, for the requirements involving the
rescission or cancellation of a motor vehicle sale.
6. Allows an authorized third-party driver license provider to perform administrative functions or
testing functions or both administrative and testing functions for the issuance and renewal of
commercial driver licenses as authorized by the Director of ADOT.
7. Makes technical and conforming changes.