Arizona 2025 Regular Session

Arizona Senate Bill SB1433 Compare Versions

Only one version of the bill is available at this time.

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1	1	REFERENCE TITLE: used motor vehicle dealers; appropriation State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1433 Introduced by Senator Farnsworth AN ACT Amending sections 28-4361 and 28-4504, Arizona Revised Statutes; APPROPRIATING monies; relating to used motor vehicle dealers. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: used motor vehicle dealers; appropriation
10	10	State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
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14	14	REFERENCE TITLE: used motor vehicle dealers; appropriation
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44	44	Introduced by
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64	64	AN ACT
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68	68	Amending sections 28-4361 and 28-4504, Arizona Revised Statutes; APPROPRIATING monies; relating to used motor vehicle dealers.
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74	74	(TEXT OF BILL BEGINS ON NEXT PAGE)
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78	78	Be it enacted by the Legislature of the State of Arizona: Section 1. Section 28-4361, Arizona Revised Statutes, is amended to read: START_STATUTE28-4361. License application; criminal records check; education and training A. A person shall apply for a license to the director in writing on forms prescribed by the director. The person shall include with the application all documents and bonds required and the annual license fees prescribed by section 28-4302. B. The application shall be verified and shall contain: 1. The name and residence of either: (a) The applicant. (b) If the applicant is a partnership, each partner. (c) If the applicant is a corporation, each principal officer, director, agent or stockholder who owns twenty percent or more of the corporation and the name of the state in which the corporation was organized. 2. The principal place of business of the applicant. 3. The established place of business or the place of business at or from which the applicant will conduct the business. 4. The make or makes of new motor vehicles, if any, that the applicant will sell or offer for sale in this state. 5. The business hours of the applicant. 6. a form signed by the applicant that: (a) Defines curbstoning as the illegal sale of vehicles without proper licensure required by this chapter. (b) Describes the penalties for ENGAGING in a business regulated by this chapter without being licensed as required in sections 28-4499, 28-4500, 28-4501 and 28-4502. 6. 7. Other information that the director requires. C. Each applicant who owns twenty percent or more of an entity, and each partner or stockholder who owns twenty percent or more of an entity, and who seeks a new license shall provide: 1. A full set of fingerprints to the department of transportation for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. 2. A nonrefundable fee to be paid to the department of public safety for the criminal records check. D. If a licensee adds or changes a partner or stockholder who owns twenty percent or more of the entity and who was not included in the criminal records check on a prior application, the licensee shall notify the department within thirty days of the change. At the time of notification, an application and, if applicable, a full set of fingerprints and the fee for a criminal records check shall be submitted to the department. If any individual who is added or changed by the licensee is found to be ineligible pursuant to section 28-4365, the director, on completion of the criminal records check, shall advise the licensee and the individual in writing that the license will be revoked, unless the individual is removed from the position, and of the grounds for the action. E. The requirement for a criminal records check: 1. Does not apply to a manufacturer, importer, factory branch or distributor or a person who is under eighteen years of age on the date the application is filed with the department. 2. May not apply if the application is for a subsequent license and each applicant who owns twenty percent or more of an entity, and each partner or stockholder who owns twenty percent or more of an entity, either: (a) Have submitted to a criminal records check during the past five years. (b) Are currently licensed under this section. 3. Does not apply to a new motor vehicle dealer who has paid fees pursuant to section 28-4302. F. The director may establish education and training for a person applying for an initial or a renewal of a used motor vehicle dealer or wholesale motor vehicle dealer license pursuant to this section. The director may contract with a private entity to provide the education and training established under this subsection. The private entity that contracts with the director pursuant to this subsection may charge a fee for the education and training. F. A person who applies for an INITIAL OR RENEWAL OF A used motor vehicle dealer license or a wholesale motor vehicle dealer LICENSE shall complete a mandatory education course before licensure or renewal that: 1. is administered by a dealer-specific association with an established presence in this state of at least five years. A dealer-specific association that administers an education course pursuant to this subsection may charge a fee for the education and training. 2. Covers federal, state and local regulations regarding motor vehicle sales, including consumer protections, financing laws, tax requirements and licensing standards. 3. Includes at least six hours of instruction. H. Subsection F of this section does not apply to: 1. A new motor vehicle franchise dealer, manufacturer or recycler. 2. A motor vehicle dealer that was licensed on or before December 31, 2023 unless the dealer applies to obtain a new license type or to change business locations. END_STATUTE Sec. 2. Section 28-4504, Arizona Revised Statutes, is amended to read: START_STATUTE28-4504. Motor vehicle dealer enforcement fund a. The motor vehicle dealer enforcement fund is established consisting of civil penalties collected pursuant to section 28-4501 that result from licensed or unlicensed motor vehicle dealer activity. The department shall administer the fund. Monies in the fund are subject to legislative appropriations. The director shall deposit all unexpended and unencumbered monies in the fund exceeding two hundred fifty thousand dollars $250,000 at the end of each fiscal year in the state highway fund established by section 28-6991. b. the motor vehicle enforcement fund shall be used for: 1. operation expenses to enhance enforcement activity related to investigating unlicensed motor vehicle dealers. 2. Expanding resources and scaling operations related to enforcing licensing requirements for motor vehicle dealers.END_STATUTE Sec. 3. Supplemental appropriation; motor vehicle dealer enforcement fund In addition the to the appropriation made by Laws 2024, chapter 209, section 94, the sum of $250,000 is appropriated from the motor vehicle dealer enforcement fund established by section 28-4504, Arizona Revised Statutes, as amended by this act, in fiscal year 2024-2025 to the department of transportation for investigation activities relating to unlicensed used motor vehicle dealers. Sec. 4. Emergency This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.
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80	80	Be it enacted by the Legislature of the State of Arizona:
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82	82	Section 1. Section 28-4361, Arizona Revised Statutes, is amended to read:
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84	84	START_STATUTE28-4361. License application; criminal records check; education and training
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86	86	A. A person shall apply for a license to the director in writing on forms prescribed by the director. The person shall include with the application all documents and bonds required and the annual license fees prescribed by section 28-4302.
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88	88	B. The application shall be verified and shall contain:
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90	90	1. The name and residence of either:
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92	92	(a) The applicant.
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94	94	(b) If the applicant is a partnership, each partner.
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96	96	(c) If the applicant is a corporation, each principal officer, director, agent or stockholder who owns twenty percent or more of the corporation and the name of the state in which the corporation was organized.
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98	98	2. The principal place of business of the applicant.
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100	100	3. The established place of business or the place of business at or from which the applicant will conduct the business.
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102	102	4. The make or makes of new motor vehicles, if any, that the applicant will sell or offer for sale in this state.
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104	104	5. The business hours of the applicant.
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106	106	6. a form signed by the applicant that:
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108	108	(a) Defines curbstoning as the illegal sale of vehicles without proper licensure required by this chapter.
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110	110	(b) Describes the penalties for ENGAGING in a business regulated by this chapter without being licensed as required in sections 28-4499, 28-4500, 28-4501 and 28-4502.
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112	112	6. 7. Other information that the director requires.
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114	114	C. Each applicant who owns twenty percent or more of an entity, and each partner or stockholder who owns twenty percent or more of an entity, and who seeks a new license shall provide:
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116	116	1. A full set of fingerprints to the department of transportation for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.
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118	118	2. A nonrefundable fee to be paid to the department of public safety for the criminal records check.
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120	120	D. If a licensee adds or changes a partner or stockholder who owns twenty percent or more of the entity and who was not included in the criminal records check on a prior application, the licensee shall notify the department within thirty days of the change. At the time of notification, an application and, if applicable, a full set of fingerprints and the fee for a criminal records check shall be submitted to the department. If any individual who is added or changed by the licensee is found to be ineligible pursuant to section 28-4365, the director, on completion of the criminal records check, shall advise the licensee and the individual in writing that the license will be revoked, unless the individual is removed from the position, and of the grounds for the action.
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122	122	E. The requirement for a criminal records check:
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124	124	1. Does not apply to a manufacturer, importer, factory branch or distributor or a person who is under eighteen years of age on the date the application is filed with the department.
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126	126	2. May not apply if the application is for a subsequent license and each applicant who owns twenty percent or more of an entity, and each partner or stockholder who owns twenty percent or more of an entity, either:
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128	128	(a) Have submitted to a criminal records check during the past five years.
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130	130	(b) Are currently licensed under this section.
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132	132	3. Does not apply to a new motor vehicle dealer who has paid fees pursuant to section 28-4302.
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134	134	F. The director may establish education and training for a person applying for an initial or a renewal of a used motor vehicle dealer or wholesale motor vehicle dealer license pursuant to this section. The director may contract with a private entity to provide the education and training established under this subsection. The private entity that contracts with the director pursuant to this subsection may charge a fee for the education and training.
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136	136	F. A person who applies for an INITIAL OR RENEWAL OF A used motor vehicle dealer license or a wholesale motor vehicle dealer LICENSE shall complete a mandatory education course before licensure or renewal that:
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138	138	1. is administered by a dealer-specific association with an established presence in this state of at least five years. A dealer-specific association that administers an education course pursuant to this subsection may charge a fee for the education and training.
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140	140	2. Covers federal, state and local regulations regarding motor vehicle sales, including consumer protections, financing laws, tax requirements and licensing standards.
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142	142	3. Includes at least six hours of instruction.
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144	144	H. Subsection F of this section does not apply to:
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146	146	1. A new motor vehicle franchise dealer, manufacturer or recycler.
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148	148	2. A motor vehicle dealer that was licensed on or before December 31, 2023 unless the dealer applies to obtain a new license type or to change business locations. END_STATUTE
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150	150	Sec. 2. Section 28-4504, Arizona Revised Statutes, is amended to read:
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152	152	START_STATUTE28-4504. Motor vehicle dealer enforcement fund
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154	154	a. The motor vehicle dealer enforcement fund is established consisting of civil penalties collected pursuant to section 28-4501 that result from licensed or unlicensed motor vehicle dealer activity. The department shall administer the fund. Monies in the fund are subject to legislative appropriations. The director shall deposit all unexpended and unencumbered monies in the fund exceeding two hundred fifty thousand dollars $250,000 at the end of each fiscal year in the state highway fund established by section 28-6991.
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156	156	b. the motor vehicle enforcement fund shall be used for:
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158	158	1. operation expenses to enhance enforcement activity related to investigating unlicensed motor vehicle dealers.
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160	160	2. Expanding resources and scaling operations related to enforcing licensing requirements for motor vehicle dealers.END_STATUTE
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162	162	Sec. 3. Supplemental appropriation; motor vehicle dealer enforcement fund
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164	164	In addition the to the appropriation made by Laws 2024, chapter 209, section 94, the sum of $250,000 is appropriated from the motor vehicle dealer enforcement fund established by section 28-4504, Arizona Revised Statutes, as amended by this act, in fiscal year 2024-2025 to the department of transportation for investigation activities relating to unlicensed used motor vehicle dealers.
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166	166	Sec. 4. Emergency
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168	168	This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.