A.R.S. tit. 28 ch. 7 — Arizona Revised Statutes Title 28 Chapter 7 — Certificate Of Title And Registration

28-2001. Definitions A. "Resident", for the purpose of registration and operation of motor vehicles: 1. Except as provided by paragraph 2, means the following: (a) A person who, regardless of domicile, remains in this state for an aggregate period of seven months or more during a calendar year. (b) A person who engages in a trade, profession or occupation in this state or who accepts employment in other than either: (i) Seasonal agricultural work. (ii) Temporary seasonal work for a period of not more than three months if the state in which the temporary seasonal worker is permanently domiciled has a similar exception. (c) A person who places children in a public school without payment of nonresident tuition. (d) A person who declares that the person is a resident of this state for the purpose of obtaining at resident rates a state license or tuition fees at an educational institution maintained by public monies. (e) An individual, partnership, company, firm, corporation or association that maintains a main office, a branch office or warehouse facilities in this state and that bases and operates motor vehicles in this state. (f) An individual, partnership, company, firm, corporation or association that operates motor vehicles in intrastate transportation, for other than seasonal agricultural work. (g) A person who is registered to vote in this state. 2. Does not mean: (a) A nonresident owner of a foreign vehicle that is registered and licensed in a state adjoining this state and that is used in this state for other than the transportation of passengers or property for compensation, if the nonresident owner and vehicle are domiciled in an adjoining state but within twenty-five miles of the border of this state and if the state in which the owner resides and in which the vehicle is registered exempts from payment of registration and weight fees like vehicles from this state, regardless of whether the nonresident owner engages in a trade, profession or occupation in this state or accepts employment. (b) An out-of-state student enrolled with seven or more semester hours regardless of whether the student engages in a trade, profession or occupation in this state or accepts employment in this state. For the purposes of this paragraph, "out-of-state student" means either: (i) A person who is enrolled at an educational institution maintained by public monies and who is not classified as an in-state student under section 15-1802. (ii) A person who is a student at a private educational institution and who would not be classified as an in-state student under section 15-1802 if the student were attending a public educational institution. (c) A nonresident daily commuter as defined in section 28-2291. B. In this chapter, unless the context otherwise requires: 1. "Mobile home" means a structure that is transportable in one or more sections, including the plumbing, heating, air conditioning and electrical systems that are contained in the structure, and that, when erected on site, is either of the following: (a) More than eight body feet in width, thirty-two body feet or more in length and built on a permanent chassis. (b) Regardless of the size, used as a single family dwelling or for commercial purposes with or without a permanent foundation. 2. "Serial number" means the number placed on the vehicle by its manufacturer or assigned pursuant to section 28-2165. 28-2002. Assessor or director as county agent A. Except in counties that have entered into an agreement authorized by section 28-2006, the assessor of each county is an agent of the department for the performance of the acts and duties delegated to the assessor. B. A county assessor or the director in those counties that have entered into an agreement authorized by section 28-2006 may establish outlets for the issuance of licenses as are necessary. The outlets and offices are constituted county offices of the department. 28-2003. Fees; vehicle title and registration; identification plate; definitions A. The following fees are required: 1. For each certificate of title, salvage certificate of title, restored salvage certificate of title or nonrepairable vehicle certificate of title, $4. 2. For each certificate of title for a mobile home, $7. The director shall deposit $3 of each fee imposed by this paragraph in the state highway fund established by section 28-6991. 3. Except as provided in section 28-1177, for the registration of a motor vehicle, $8, except that the fee for motorcycles is $9. 4. For a duplicate registration card or any duplicate permit, $4. 5. For each special ninety day nonresident registration issued under section 28-2154, $15. 6. For the registration of a trailer or semitrailer that is not a travel trailer, that is ten thousand pounds or less declared gross weight and that is used in the furtherance of a commercial enterprise, $8. 7. For the registration of a trailer or semitrailer that is not a travel trailer and that exceeds ten thousand pounds declared gross weight: (a) On initial registration, a onetime fee of $245. (b) On renewal of registration or if previously registered in another state, a onetime fee of: (i) If the trailer's or semitrailer's model year is less than six years old, $145. (ii) If the trailer's or semitrailer's model year is at least six years old, $95. 8. For the registration of a noncommercial trailer that is not a travel trailer and that is ten thousand pounds or less declared gross weight: (a) On initial registration, a onetime fee of $20. (b) On renewal of registration, a onetime fee of $5. 9. For a transfer of a noncommercial trailer that is not a travel trailer and that is ten thousand pounds or less declared gross weight, $12. 10. For each special ninety day resident registration issued under section 28-2154, $15. 11. For each one trip registration permit issued under section 28-2155, $1. 12. For each temporary general use registration issued under section 28-2156, $15. 13. For each identification plate bearing a serial or identification number to be affixed to any vehicle, $5. B. For the purposes of this section: 1. "Declared gross weight" has the same meaning prescribed in section 28-5431. 2. "Travel trailer" means a trailer that is: (a) Mounted on wheels. (b) Designed to provide temporary living quarters for recreational, camping or travel use. (c) Less than eight feet in width and less than forty feet in length. 28-2004. Disposition of fees; highway user revenue fund Except as otherwise provided by statute, the officer collecting the fees and taxes provided in this chapter shall immediately transfer them to the director. The director shall deposit, pursuant to sections 35-146 and 35-147, the monies in the Arizona highway user revenue fund. 28-2005. Disposition of fees; county assessor's special registration fund A. If the county assessor is acting as an agent of the department, the county assessor shall transmit the following monies to the county treasurer of the county in which the fee is collected: 1. One dollar of each registration fee. 2. One dollar of each title fee. 3. Two dollars of each late registration penalty collected by the assessor. B. The county treasurer shall deposit the fees received pursuant to subsection A of this section in a special registration fund for the use of the assessor in carrying out the duties imposed by this article. The county treasurer shall allow and shall pay claims against the fund in the same manner as claims against the county are allowed and paid. C. The board of supervisors may order the transfer of all or any unexpended part of the monies in the special registration fund received during the previous fiscal year to the fund for the maintenance and construction of county highways. The county treasurer may invest inactive monies in the special registration fund in United States government bonds or interest bearing notes and other interest bearing obligations of the United States for which the full faith and credit of the United States are pledged. The county treasurer shall credit all interest earned on the special registration fund monies to the special fund. D. Except as otherwise provided by law, the collecting officer shall immediately transmit monies received from fees and taxes imposed by this chapter, except the portion retained for the assessor's special registration fund, to the director. The director shall deposit, pursuant to sections 35-146 and 35-147, the monies in the Arizona highway user revenue fund. E. Each county assessor shall collect and transmit monies received as motor vehicle emissions inspection fees, exemption fees or certificate of waiver fees pursuant to section 49-543, the annual registration fee and the vehicle license tax to the state treasurer. The state treasurer shall deposit: 1. The emissions inspection fees, exemption fees and certificate of waiver fees in the emissions inspection fund established by section 49-544. 2. The annual registration fee and vehicle license tax as prescribed by law. 28-2006. Contract to transfer duties and responsibilities A. The director and a county board of supervisors may contract to provide for the transfer of the duties and responsibilities of the county assessor pursuant to this title to the department. B. The agreement shall provide for the following: 1. The purchase and conveyance of real property presently used, subject to available monies. 2. The transfer and payment of personal property presently used. 3. The employment of persons presently employed by the county if the employees desire the transfer. 4. The effective date of the transfer. 5. The amount of monies in the county assessor's special registration fund established pursuant to section 28-2005 that will be transferred, if any. C. On the agreement's effective date, the department assumes all of the powers, duties and responsibilities of the county assessor pursuant to this title. D. The department of administration shall transfer into the state service on a noncompetitive basis a permanent county employee who is affected by the agreement authorized by this section and who desires to be transferred to state employment. If the employee has not successfully completed six months' related experience, the employee shall serve a ninety day probationary period in the state service. 28-2007. Highway safety fee; refund A. At the time of application for and before registration each year of a vehicle, the registering officer shall collect a highway safety fee in an amount to be determined by the director. The director shall deposit, pursuant to sections 35-146 and 35-147, all monies collected pursuant to this section in the Arizona highway patrol fund established by section 41-1752. B. Notwithstanding subsection A of this section, beginning from and after June 30, 2021, the registering officer may not collect a highway safety fee. The registering officer may not collect a highway safety fee for registrations that expire on June 30, 2021. For any registration that expires on June 30, 2021 for which the registering officer collected a highway safety fee, the department shall refund the highway safety fee collected. 28-2008. Duplicate certificate of title, permit, registration card or license plates A. If a permit, registration card or license plate is lost or mutilated or becomes illegible, the person entitled to the permit, card or plate shall immediately apply for and obtain a duplicate or substitute permit, card or plate by furnishing information satisfactory to the department. B. If a paper certificate of title is lost or mutilated or becomes illegible, the person entitled to the certificate of title may apply for a duplicate or substitute certificate of title by furnishing information satisfactory to the department. The department may implement procedures related to the issuance of a duplicate paper certificate of title. 28-2009. Certificate of title; validity The certificate of title is valid for the life of the vehicle as long as the vehicle is owned by the original holder of the title, unless it has been replaced pursuant to section 28-2008. 28-2010. Motorcycle safety fund; administration A. The motorcycle safety fund is established consisting of monies deposited pursuant to subsection B of this section and monies from gifts, grants and other donations. The director of the governor's office of highway safety shall administer the fund. On notice from the director of the governor's office of highway safety, the state treasurer shall invest and divest monies in the fund as provided in section 35-313, and monies earned from investment shall be credited to the fund. Up to ten percent of the monies in the fund may be used for administrative costs. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. B. Notwithstanding section 28-2004, the director of the department of transportation shall deposit, pursuant to sections 35-146 and 35-147, $1 of each motorcycle registration fee collected pursuant to section 28-2003 in the motorcycle safety fund. C. Subject to legislative appropriation, the director of the governor's office of highway safety shall use monies deposited in the motorcycle safety fund pursuant to this section for the following purposes: 1. Up to seventy-five percent to implement and support voluntary motorcycle education, awareness, training and other programs and may use the monies to cover the cost of materials for motorcycle safety, education and awareness programs. 2. Up to twenty-five percent for scholarships for motorcycle driver education programs for persons who are from rural or low-income areas in this state to increase access to motorcycle training programs. D. Any fee, assessment or other levy that is authorized by law or administrative rule and that is collected and deposited in the motorcycle safety fund shall be held in trust. The monies in the fund may be used only for the purposes prescribed by statute and may not be appropriated or transferred by the legislature to fund the general operations of this state or to otherwise meet the obligations of the general fund of this state. This subsection does not apply to any taxes or other levies that are imposed pursuant to title 42 or 43. 28-2011. Vehicle inspections A. The department may conduct the following levels of motor vehicle inspections: 1. Level one. A level one inspection consists of matching the public vehicle identification number and a secondary vehicle identification number to the vehicle ownership documents to determine the identity of the vehicle. 2. Level two. A level two inspection consists of matching the public vehicle identification number, a secondary vehicle identification number and the confidential vehicle identification number to the vehicle ownership documents to determine the identity of the vehicle. 3. Level three. A level three inspection consists of a level two inspection plus verification of vehicle identification numbers on, at the discretion of the inspector, some or all component parts to determine the identity of the vehicle and that the vehicle is properly equipped for highway use. B. A person who submits a motor vehicle to the department for inspection shall pay the following fees: 1. For a level two inspection, twenty dollars. 2. For a level three inspection, fifty dollars. C. The department shall deposit the inspection fees in the vehicle inspection and certificate of title enforcement fund established by section 28-2012. D. An inspection fee is not required for an inspection of a motor vehicle owned by a foreign government, by a consul or any other representative of a foreign government, by the United States, by a state or political subdivision of a state or by an Indian tribal government. 28-2012. Vehicle inspection and certificate of title enforcement fund A. The vehicle inspection and certificate of title enforcement fund is established consisting of monies deposited pursuant to sections 28-2011 and 28-2013 and section 28-2095, subsection G. B. Monies in the vehicle inspection and certificate of title enforcement fund are subject to legislative appropriation to the department to be used by the department to defray the cost of investigations involving certificates of title, licensing fraud, registration enforcement and automobile theft related issues. C. The vehicle inspection and certificate of title enforcement fund is exempt from the provisions of section 35-190 relating to lapsing of appropriations. 28-2013. Disposition of property; deposit of proceeds A. The department may receive monies from any department or agency of the United States, this state or any political subdivision of this state and may sell, transfer or otherwise dispose of all property seized and forfeited to the state, or otherwise awarded to the department, as a result of any investigation. B. The department shall deposit, pursuant to sections 35-146 and 35-147, any proceeds resulting from subsection A of this section, except an investigation or prosecution conducted pursuant to article 3 of this chapter, in the vehicle inspection and certificate of title enforcement fund established by section 28-2012. 28-2014. Motorcycle registration; requirements The department may renew a registration for a motorcycle only if at least one of the registered owners of the motorcycle is licensed to legally operate a motorcycle in this state, except the department may issue a thirty-day temporary registration if the person shows valid proof of enrollment in a motorcycle training program approved by the department. If the registered owner of a motorcycle is a trust, a trustee named in the trust must be legally licensed to operate a motorcycle to renew a registration pursuant to this section. This section does not apply to a motorcycle that is owned by a business. 28-2051. Application for certificate of title; vision screening test A. A person shall apply to the department on a form prescribed or authorized by the department for a certificate of title to a motor vehicle, trailer or semitrailer. The person shall make the application within fifteen days after the purchase or transfer of the vehicle, trailer or semitrailer except that a licensed motor vehicle dealer shall make the application within thirty days after the purchase or transfer. All transferees shall sign the application, except that one transferee may sign the application if both of the following apply: 1. The application is for the purposes of converting an out-of-state certificate of title to a certificate of title issued pursuant to this article. 2. The ownership or legal status of the motor vehicle, trailer or semitrailer does not change. B. The application shall contain: 1. The transferee's full name and either the driver license number of the transferee or a number assigned by the department. 2. The transferee's complete residence address. 3. A brief description of the vehicle to be issued a certificate of title. 4. The name of the manufacturer of the vehicle. 5. The serial number of the vehicle. 6. The last license plate number if applicable and if known and the state in which the license plate number was issued. 7. If the application is for a certificate of title to a new vehicle, the date of sale by the manufacturer or dealer to the person first operating the vehicle. 8. If the application is in the name of a lessor: (a) The lessor shown on the application as the owner or transferee. (b) At the option of the lessor, the lessee shown on the application as the registrant. (c) The address of either the lessor or lessee. (d) The signature of the lessor. 9. If the application is for a certificate of title to a specially constructed, reconstructed or foreign vehicle, a statement of that fact. For the purposes of this paragraph, "specially constructed vehicle" means a vehicle not originally constructed under a distinctive name, make, model or type by a generally recognized manufacturer of vehicles. 10. If an applicant rents or intends to rent the vehicle without a driver, a statement of that fact. 11. Other information required by the department. C. Unless subsection B, paragraph 8 of this section applies, on request of an applicant, the department shall allow the applicant to provide on the certificate of title of a motor vehicle, trailer or semitrailer a post office box address that is regularly used by the applicant. D. A person shall submit the following information with an application for a certificate of title: 1. To a vehicle previously registered: (a) The odometer mileage disclosure statement prescribed by section 28-2058. (b) If the applicant is applying for a certificate of title pursuant to section 28-2060, the applicant's statement of the odometer reading as of the date of application. 2. To a new vehicle: (a) Either of the following: (i) A manufacturer's certificate of origin showing the date of sale to the dealer or person first receiving the vehicle from the manufacturer. Before the department issues a certificate of title to a new vehicle, a manufacturer's certificate of origin shall be surrendered to the department. (ii) A factory invoice, a form that is provided by the department or other documentation that shows the date of sale to the dealer or the person who first received the vehicle from the manufacturer. (b) The name of the dealer or person. (c) A description sufficient to identify the vehicle. (d) A statement certifying that the vehicle was new when sold. (e) If sold through a dealer, a statement by the dealer certifying that the vehicle was new when sold to the applicant. E. The department may request that an applicant who appears in person for a certificate of title of a motor vehicle, trailer or semitrailer satisfactorily complete the vision screening test prescribed by the department. 28-2052. Title and registration of foreign vehicles A. Except as provided in subsection E of this section, the owner of a foreign vehicle that has been registered in another state or country and for which an application for a certificate of title is made shall surrender to the department the license plates assigned to the vehicle, the registration card, the certificate of ownership or other evidence of foreign registration and satisfactory evidence of ownership showing that the applicant is the lawful owner or possessor of the vehicle. B. If in the course of interstate operation of a vehicle registered in another state or country it is desirable to retain registration of the vehicle in the other state or country, the applicant need not follow the requirements of subsection A of this section but shall submit evidence of the foreign registration and ownership for inspection. The department shall register the vehicle on a proper showing of evidence of registration but shall not issue a certificate of title for the vehicle. C. The department may inspect a foreign vehicle before issuing a certificate of title or before registration, including examination and inspection to establish compliance with section 28-955, under conditions and standards as required by the director of environmental quality. The department may establish procedures to accept vehicle inspections completed in another state. D. Before the department issues a certificate of title to a vehicle imported into this country, the owner shall obtain a certificate of compliance that states that the vehicle meets all federal vehicle equipment and emissions equipment requirements. This subsection does not apply to a golf cart manufactured or modified before June 17, 1998 or neighborhood electric vehicle manufactured or modified before June 17, 1998. E. The department may establish procedures to accept evidence that the certificate of title or certificate of ownership has been voided or destroyed by another state. 28-2053. Certificate of title without registration A. The department may only issue a vehicle certificate of title without registration for a vehicle that is physically present in this state for any of the following reasons: 1. The applicant for a certificate of title is a nonresident whose vehicle is not subject to vehicle registration in this state. 2. The applicant certifies that the vehicle was acquired for purposes other than highway use. 3. The vehicle was acquired by operation of law. 4. The vehicle is an off-road recreational motor vehicle required to be issued a certificate of title pursuant to section 28-2061. B. The department shall issue a certificate of title without registration for either of the following reasons: 1. The owner will register the vehicle under article 7 or 8 of this chapter. 2. The vehicle is a trailer or semitrailer that will be used in interstate commerce and that is registered in another state. 28-2054. Certificate of title; application processing A. The department shall file each application for a certificate of title. When the department is satisfied that the application is genuine and regular and that the applicant is entitled to a certificate, it shall register the vehicle and the owner alphabetically under the name of the owner and numerically under the serial number and under a distinctive title number assigned to the vehicle and the owner. B. In addition to all other requirements, if the application is for a certificate of title to a mobile home the department shall not issue or transfer a certificate of title on the mobile home if there are any delinquent personal property taxes on the mobile home. 28-2055. Certificate of title; content requirements; transfer on death provision A. The department or an authorized third party shall do both of the following: 1. Create the certificate of title with space for notation of liens and encumbrances on the vehicle at the time of transfer. 2. Provide forms for assignment of title or interest and warranty by the owner that include the odometer mileage disclosure statement pursuant to section 28-2058. B. At the request of the owner, the certificate of title may contain, by attachment, a transfer on death provision where the owner may designate a beneficiary of the vehicle. C. If a motor vehicle, trailer or semitrailer has been registered in any other state or country, the department shall retain in its records the name of the state or country in which the prior registration took place. 28-2056. Transfer or registration of vehicle; collection of use tax A. The registering officer shall collect the use tax imposed under title 42, chapter 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, article 2 at the time of application for a transfer of title or registration of a vehicle. The registering officer shall issue a receipt, in a form prescribed by the department, for the amount of tax paid. The registering officer shall not process an application for transfer of title or registration of any vehicle on which the use tax is imposed under title 42, chapter 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, article 2 until the tax is paid. B. The department of transportation shall notify the department of revenue of taxes collected pursuant to this section. At the end of each month the department of transportation shall deposit, pursuant to sections 35-146 and 35-147, tax monies collected pursuant to this section in the state general fund. C. The department of revenue shall provide the department of transportation with the means, including using tax rates applicable to each jurisdiction levying a use tax, to calculate the use taxes required to be collected pursuant to subsection A of this section. 28-2057. Registration without certificate of title or bond; receipt; fee A. If the department is not satisfied as to the ownership of the vehicle or is not satisfied that there are no undisclosed security interests in the vehicle, the department may register a vehicle but shall either: 1. Withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the department as to the applicant's ownership of the vehicle and that there are no undisclosed security interests in the vehicle. 2. As a condition of issuing a certificate of title, require the applicant to file a bond with the department as prescribed in subsection B of this section. B. The department shall prescribe the form of the bond required by subsection A of this section. The applicant shall execute the bond and either accompany it with the deposit of cash or have a person authorized to conduct a surety business in this state also execute the bond. The bond shall be in an amount equal to one and one-half times the value of the vehicle as determined by the department and conditioned to indemnify any prior owner and lienholder and any subsequent purchaser of the vehicle or person acquiring any security interest in it and their respective successors in interest against any expense, loss or damage, including reasonable attorney fees, by reason of the issuance of the certificate of title of the vehicle or on account of any defect in or undisclosed security interest on the right, title and interest of the applicant in and to the vehicle. C. An interested person has a right of action to recover on the bond for any breach of its condition. The aggregate liability of the surety to all persons shall not exceed the amount of the bond. D. The bond and any deposit accompanying it shall be returned at the end of three years or prior to the end of three years if the vehicle is no longer registered in this state and the currently valid certificate of title is surrendered to the department, unless the department has been notified of the pendency of an action to recover on the bond. E. If the applicant does not have the original certificate of title because the certificate of title is held by a lender located outside this state and if the applicant presents documents to the department sufficient in the judgment of the department to establish ownership of the vehicle, the department may register the vehicle and issue a receipt in lieu of the certificate of title provided by section 28-2052. The fee for the receipt is equal to the fee prescribed for a certificate of title pursuant to section 28-2003. 28-2058. Transfer of title; odometer mileage disclosure statement; education A. When the owner of a registered or unregistered vehicle transfers or assigns the owner's title or interest to the vehicle: 1. If the vehicle is registered: (a) The owner shall endorse on the certificate of title or title transfer form an assignment with the warranty of title. (b) Except as provided in section 28-2094, the owner shall deliver the certificate of title or title transfer form to the purchaser or transferee at the time of delivery of the vehicle to the purchaser or transferee. (c) The registration of the vehicle expires and the owner shall transfer the license plates, surrender the license plates to the department or an authorized third party or submit an affidavit of license plate destruction within thirty days after the owner transfers or assigns the owner's title or interest in the vehicle. (d) Except as provided in section 28-2091, the acquiring owner shall apply for registration or a certificate of title, or both, within fifteen days after the relinquishing owner transfers or assigns the relinquishing owner's certificate of title or interest in the vehicle. The director may prorate the registration period as the director deems necessary to coincide with emissions inspection requirements. (e) Except if the acquiring owner is an insurer who acquires the vehicle pursuant to a claim settlement, the acquiring owner shall display on the vehicle a temporary registration plate, another permit or a valid license plate as prescribed by the department until ownership of the vehicle is transferred in the department's records. 2. Regardless of whether or not the vehicle is registered: (a) Except as provided in subsection B of this section, the owner shall deliver to the purchaser or transferee an odometer mileage disclosure statement in a form prescribed by the director. (b) Except as provided in sections 28-2051, 28-2060 and 28-2091, the purchaser or transferee shall present the certificate of title or title transfer form to the department with the required fee within fifteen days after the transfer and: (i) The department shall issue a new certificate of title. (ii) If required, the purchaser or transferee shall apply for and obtain registration, and the department shall issue new license plates to the purchaser or transferee. B. The odometer disclosure requirement of subsection A of this section does not apply to: 1. A motor vehicle that is ten model years of age if the model year is 2010 or older. 2. A motor vehicle that is twenty model years of age if the model year is 2011 or newer. 3. A motor vehicle that has a gross vehicle weight rating of sixteen thousand pounds or more. 4. A vehicle that is not self-propelled. 5. A motor vehicle that is sold directly by the manufacturer to an agency of the United States in conformity with contractual specifications. 6. A new motor vehicle that is purchased for resale and not for use by the purchaser. C. In the department's information and education materials, the department shall include information relating to the process by which an individual may notify the department when the title to or an interest in a vehicle is transferred or assigned. 28-2059. Obtaining a certificate of title; refusal; revocation A. If satisfactory proof of ownership is furnished to the director, the director may issue a certificate of title for a motor vehicle, trailer or semitrailer whether or not a certificate of title has ever been issued for that motor vehicle, trailer or semitrailer. B. If the director determines that an applicant for a certificate of title to a motor vehicle, trailer or semitrailer is not entitled to a certificate of title, the director may refuse to issue a certificate of title or to register the vehicle. The director may revoke a registration already acquired or an outstanding certificate of title. The director shall serve a notice of refusal to issue a certificate of title or vehicle registration or a notice of revocation of a certificate of title or registration in person or by first class mail. Within fifteen days after the date the notice is mailed or served, a person who is aggrieved by the refusal or revocation may request a hearing. 28-2060. Transfer of ownership by operation of law A. Except as provided in subsection F of this section, when the title or interest of an owner of a registered vehicle passes to another other than by voluntary transfer, the transferee shall obtain a transfer of registration within thirty days after the passing of the title or interest. B. Within thirty days after passing of the title or interest of an owner of a registered or unregistered vehicle, the transferee of the vehicle shall obtain a new certificate of title on proper application and presentation of the last certificate of title, if available, and such instruments or documents of authority or certified copies of the instruments or documents that are sufficient or required by law to evidence or effect a transfer of title or interest in or to chattels that pass to another other than by voluntary transfer. C. If a motor vehicle has been forfeited to the federal government and is sold at public auction pursuant to federal law, the purchaser at the sale takes title free of any liens or encumbrances if federal law so provides. If a motor vehicle has been forfeited to any local or state government entity, agency or political subdivision or to any federal law enforcement agency after the disposition of all claims under the laws of this state, the order of the court forfeiting the vehicle shall transfer good and sufficient title to the transferee and to any subsequent purchaser or transferee. The purchaser or transferee shall register the motor vehicle within thirty days after the sale or transfer, and the department shall issue a certificate of title to the purchaser or transferee on presentation of the evidence of title without any reference to liens or encumbrances. D. The transferee of a vehicle required to have a certificate of title and be registered under section 28-2153 or a mobile home required to have a certificate of title under section 28-2063 may obtain a transfer of registration to the transferee and a new certificate of title if both of the following occur: 1. The title or interest of the owner of the vehicle passes to another either: (a) Through notice and sale under the conditions contained in any security agreement, chattel mortgage, conditional sale or other evidence of lien or under the authority given by statute in cases arising under sections 33-1021 and 33-1022 or under section 33-1704. (b) For a mobile home the lien on which is also a lien on real property, through a contract for conveyance of real property, deed of trust or mortgage. 2. Satisfactory evidence is presented to the director that the sale of the vehicle was fairly and lawfully conducted in conformity with all requirements of law after due notice to the former owner. In cases arising under section 33-1704, a declaration that is signed by both the seller and the buyer and that sets forth compliance with section 33-1704 constitutes satisfactory evidence, and the director may rely on that declaration. E. Any administrator, executor, trustee or other representative of the owner, a peace officer or a person repossessing a vehicle under the terms of any conditional sales contract, lease, chattel mortgage or other security agreement or a purchaser at a sale foreclosing a lien, or the assignee or legal representative of any such person, may operate a vehicle from the place of repossession or place where it was formerly kept to a garage or place of storage in the county or state where the contract was recorded or where the person repossessing the vehicle resides or to any other garage or place of storage that is not more than seventy-five miles from the place of repossession or place where the vehicle was formerly kept by the owner if either of the following conditions exists: 1. The license plates assigned to the vehicle are displayed on the vehicle. 2. If license plates are not displayed, a written permit has been obtained from the department or the local authorities having jurisdiction over the highways and a placard that bears the name and address of the person authorizing the movement and that is legible from a distance of one hundred feet during daylight is displayed in plain sight on the vehicle. F. If ownership of a motor vehicle for which a certificate of title has been issued in this state or another state reverts through operation of state law to a lienholder of record through repossession pursuant to the terms of a security agreement or through another similar instrument that is valid in such state, a repossession affidavit by the lienholder of record in this state or another state stating that the vehicle was repossessed on default of the terms stated in the security agreement or similar instrument is proof of ownership, right of possession and right of transfer by the lienholder of record. If the lienholder of record is licensed in this state as a financial institution as defined in section 28-4301, the lienholder of record shall electronically submit the repossession affidavit to the department. The director shall prescribe the form and content of the Arizona repossession affidavit. This state and its agencies, employees and agents are not liable for relying in good faith on the content of the repossession affidavit. 28-2061. All-terrain vehicles; off-highway vehicles; off-road recreational motor vehicles; certificates of title; exemption A. On the retail sale of a new all-terrain vehicle, off-highway vehicle as defined in section 28-1171 or off-road recreational motor vehicle, the dealer or person first receiving the motor vehicle from the manufacturer shall apply, on behalf of the purchaser, to the department for a certificate of title to the motor vehicle in the name of the purchaser. If satisfied that the application is genuine and regular and that the applicant is entitled to a certificate of title, the department shall issue a certificate of title to the motor vehicle without requiring registration for the motor vehicle. B. A person who owns an all-terrain vehicle, off-highway vehicle as defined in section 28-1171 or off-road recreational motor vehicle shall apply for and obtain a certificate of title required by this section in the manner prescribed in this chapter. On the transfer of ownership of an all-terrain vehicle, off-highway vehicle as defined in section 28-1171 or off-road recreational motor vehicle for which a certificate of title is required by this section, a person shall apply for and obtain a new certificate of title in the manner prescribed in this chapter. C. A person participating in an off-highway vehicle special event as defined in section 28-1171 is exempt from the requirements of this section. 28-2062. Mobile home delinquent personal property tax list A. The department shall prepare and maintain a list that identifies each prior year for which outstanding delinquent personal property taxes on mobile homes remain unpaid. The list shall contain: 1. The complete manufacturer's serial number, the brand name or model and the name of the manufacturer of each mobile home. 2. The name and address of the current owners. 3. The year of levy, the assessing county and one of the following unique identifying numbers: (a) The taxpayer identification number. (b) The tax roll identification number of the outstanding delinquent taxes for each mobile home. 4. Other information that the department may find necessary. B. The department of revenue, each county assessor and each county treasurer shall provide such cooperation and information as the department of transportation requires in the preparation and maintenance of the listing required by subsection A. C. The department shall provide each county assessor who acts as a registering officer for the department with copies of or access to the listing prepared pursuant to subsection A. 28-2063. Mobile home certificate of title; exceptions; fee A. The department shall issue a certificate of title for a mobile home that is customarily kept in this state and the fee required under section 28-2003 shall be paid except for: 1. A mobile home that is owned and held by a dealer solely for purposes of sale. 2. A mobile home that is owned and operated exclusively in the public service by the United States, by this state or by any political subdivision of this state, except that it shall have a certificate of title. 3. A mobile home that is permanently affixed, as defined in section 42-15201, and for which an affidavit of affixture has been recorded pursuant to section 33-1501. The owner shall surrender the original certificates of title or manufacturer's statements of origin to permanently affixed mobile homes to the department in the manner prescribed by the department. The department shall issue a receipt for the documents surrendered pursuant to this paragraph. B. The issuance of a certificate of title for a mobile home shall be as provided by law for the issuance of a certificate of title for motor vehicles, except that in the case of a mobile home that consists of two or more separate sections, each section shall have a separate certificate of title. C. A mobile home is subject to all applicable provisions of this title, except those relating to registration. D. If a certificate of title is applied for on a mobile home entering this state for sale or installation, a certificate of compliance or waiver issued by the Arizona department of housing is required and shall be submitted with the certificate of title application. 28-2064. Electronic certificates of title system; applicability; rules A. The director may establish a system to require recording of certificate of title information for newly issued, transferred and corrected certificates of title, including perfection and release of security interests, through electronic media in a cost-effective manner in lieu of the submission and maintenance of paper documents as provided in this chapter. The director may contract with an association of new motor vehicle dealers to manage a lien recording system on behalf of the department at no cost to this state. B. In the process of establishing the system, the director shall: 1. Establish procedures for issuing and maintaining an electronic certificate of title system that is applicable to all certificate of title transactions performed in this state. 2. Develop methods to electronically share information related to applications for certificates of title with law enforcement agencies and entities licensed under this title. C. Section 28-444, subsection B applies to certificates of title under the system established pursuant to this section. D. This section does not apply to certificates of title for mobile homes. E. The director may adopt rules as necessary to implement this section, including the criteria for when the department may issue a paper certificate of title. 28-2065. Electronic and digital signatures; documents A. The director, in cooperation with a statewide association of franchised new motor vehicle dealers, shall establish a program to accept and use electronic or digital signatures. B. In the process of developing the program, the director shall research and develop methods to allow the department, authorized third parties, licensed financial institutions, licensed insurers or any other business or individual as determined by the director to accept, exchange and use electronic or digital signatures for any document or for any transaction prescribed in this chapter and sections 28-370, 28-444, 28-453 and 28-5111. C. The participants shall ensure that adequate security measures are in place to prevent any illegal use of the signatures or other information exchanged pursuant to this section. D. The director may determine and require reimbursement from program participants for costs related to computer programming, hardware, development and personnel. The department shall deposit, pursuant to sections 35-146 and 35-147, all monies received pursuant to this section in a separate account of the state highway fund established by section 28-6991. Monies in the separate account are continuously appropriated. The director may transfer monies deposited pursuant to this subsection from the separate account to the operating budget of the department's motor vehicle division for the purpose of reimbursing the department's operating budget for expenditures made by the division pursuant to this section. E. This section does not limit the use of electronic and digital signatures used by state agencies, boards or commissions pursuant to section 18-106. F. The director may adopt rules necessary to implement this section. 28-2091. Salvage certificate of title; stolen vehicle certificate of title; nonrepairable vehicle certificate of title; recovered vehicles; violation; classification; definitions A. If a vehicle that is subject to the issuance of a certificate of title or registration pursuant to this chapter becomes a salvage vehicle, stolen vehicle or nonrepairable vehicle and is acquired by an insurance company as a result of a total loss insurance settlement, the insurance company or its authorized agent shall submit an application, as determined by the insurance company or its authorized agent, to the department within thirty days after the certificate of title is properly assigned by the owner to the insurance company, with all liens released, on a form prescribed by the department for either a salvage certificate of title, stolen vehicle certificate of title or nonrepairable vehicle certificate of title. The selected certificate of title shall include all of the following: 1. A properly endorsed certificate of title except that a notarized signature on the certificate of title or on any supporting documents required for the transfer is not required. 2. A lien satisfaction, if applicable. 3. The appropriate fees. B. Within thirty days after oral or written acceptance by the owner of an offer in settlement of total loss, if an insurance company or its authorized agent is unable to obtain the documents prescribed by subsection A, paragraphs 1 and 2 of this section, the insurance company or its authorized agent, on a form provided by the department, may submit an application to the department for a salvage certificate of title, stolen vehicle certificate of title or nonrepairable vehicle certificate of title. The application shall attest that the insurance company or its authorized agent has made two or more written attempts to obtain the documents prescribed by subsection A, paragraphs 1 and 2 of this section. The written attempts are required to be sent only to a lienholder or owner of a vehicle that has not provided the documents prescribed in subsection A, paragraphs 1 and 2 of this section. The application shall include the appropriate fees prescribed by subsection A, paragraph 3 of this section. The insurance company shall indemnify and hold harmless the department for any claims resulting from issuing a salvage certificate of title, stolen vehicle certificate of title or nonrepairable vehicle certificate of title pursuant to this subsection. C. Except for vehicles registered pursuant to section 28-2482, 28-2483 or 28-2484, if the owner retains possession of a salvage vehicle or nonrepairable vehicle, the owner shall comply with this section before receiving a total loss settlement from the insurance company or otherwise disposing of the vehicle. D. Any other owner of a vehicle that is a salvage vehicle or nonrepairable vehicle shall apply for a salvage certificate of title or nonrepairable vehicle certificate of title pursuant to this section. E. On receipt of a proper application, the department shall issue a salvage certificate of title, stolen vehicle certificate of title or nonrepairable vehicle certificate of title for the vehicle. F. If the department issues a nonrepairable vehicle certificate of title for a vehicle, the registration of the vehicle is cancelled. The front of a nonrepairable vehicle certificate of title shall be branded with the word "nonrepairable". The ownership of a vehicle for which a nonrepairable vehicle certificate of title has been issued shall not be reassigned more than two times on that certificate of title or a title transfer form. If a nonrepairable vehicle certificate of title is issued for a vehicle, the department shall not perform any title transfers or issue any further paper certificate of title for that vehicle. G. An owner of a vehicle that is not a salvage vehicle who sells the vehicle as scrap or for purposes of dismantling or destroying shall assign the certificate of title or a title transfer form to the purchaser, and the purchaser shall comply with section 28-2094. H. On sale of the vehicle, an owner of a salvage vehicle for which a salvage certificate of title has been obtained or an owner of a nonrepairable vehicle for which a nonrepairable vehicle certificate of title has been obtained shall assign and deliver the salvage certificate of title or nonrepairable vehicle certificate of title or a title transfer form to the purchaser and shall notify the department of the name and address of the purchaser. I. Except as provided in subsection L of this section, the department shall issue a certificate of title to a vehicle that has been issued a salvage certificate of title or stolen vehicle certificate of title as a result of a total loss settlement by reason of theft if the vehicle is recovered and was not wrecked or stripped of essential parts and the insurance company or its authorized agent submits an affidavit to the department in a form prescribed by the department stating either of the following: 1. The vehicle is a recovered theft and both of the following: (a) The vehicle was not wrecked or stripped of essential parts. (b) To the insurance company's or its authorized agent's actual knowledge, no air bag or component part necessary to the proper function of the air bag system deployed in the vehicle or was removed from the vehicle. 2. The vehicle is a recovered theft and, to the insurance company's or its authorized agent's actual knowledge, an air bag or an air bag module deployed in the vehicle or was removed from the vehicle. The insurance company or its authorized agent shall list the location in the vehicle of each deployment or removal of an air bag or an air bag module. J. On receipt of an affidavit submitted pursuant to subsection I, paragraph 2 of this section, the department shall mark its records to indicate the deployment or removal of the air bag or air bag module from the vehicle and the location of each deployment or removal. K. The insurance company or its authorized agent shall give the purchaser of a vehicle that is a recovered theft, as described in subsection I of this section, a copy of the affidavit submitted pursuant to subsection I of this section. L. If the vehicle is a recovered theft and components of the vehicle's air bag system, other than the air bag or the air bag module described in subsection I, paragraph 2 of this section, or other parts of the vehicle were removed compromising the functional integrity of the air bag system or the structural integrity of the vehicle, the insurance company or its authorized agent shall submit an affidavit to the department in a form prescribed by the department stating that the vehicle is a recovered theft and that components of the vehicle's air bag system, other than the air bag or the air bag module described in subsection I, paragraph 2 of this section, or other parts of the vehicle were removed compromising the functional integrity of the air bag system or the structural integrity of the vehicle. The department shall not issue a certificate of title to the vehicle but may issue a restored salvage certificate of title pursuant to section 28-2095 if all of the following apply: 1. The vehicle is repairable. 2. The department successfully completes a level three inspection as prescribed in section 28-2011. 3. The vehicle meets other requirements the director prescribes. M. Except as provided in subsection N of this section, any person who sells a vehicle that is issued a certificate of title pursuant to subsection I of this section and who has actual knowledge that an air bag, an air bag module or components of the vehicle's air bag system compromising the functional integrity of the air bag system deployed or were removed from the vehicle shall not fail to disclose the deployment or removal to the buyer before completion of the sale with the intention of concealing the deployment or removal. A person who violates this subsection is guilty of a class 1 misdemeanor. N. Subsection M of this section does not apply to either of the following: 1. An insurance company or its authorized agent who issues an affidavit pursuant to subsection I of this section unless the insurance company or its authorized agent intentionally fails to disclose the deployment or removal of an air bag, an air bag module or components of the vehicle's air bag system that compromise the functional integrity of the air bag system. 2. A person who owns a vehicle that is issued a certificate of title pursuant to subsection I of this section if the person repairs or replaces the air bag or air bag module in the vehicle. O. Any person who sells a vehicle for which a salvage certificate of title has been issued and who knows a salvage certificate of title has been issued for the vehicle shall clearly and conspicuously disclose in writing or by electronic means to the buyer before completion of the sale that the vehicle is a salvage vehicle and has a salvage certificate of title. P. If a vehicle that has a certificate of title as a salvage vehicle is to be scrapped, dismantled or destroyed, the owner or purchaser shall comply with section 28-2094. Q. The provisions of this chapter that refer to certificates of title apply to salvage certificates of title, stolen vehicle certificates of title and nonrepairable vehicle certificates of title issued pursuant to this section unless they conflict with this section. R. If a component part of a vehicle on which the vehicle identification number is affixed is to be replaced and if the vehicle is being repaired by a person other than its owner, the person shall notify the owner in writing and in the manner prescribed by the department that the part has been replaced, and the owner shall comply with section 28-2165. This subsection does not apply if the department has not issued a salvage certificate of title or a nonrepairable certificate of title and if the vehicle manufacturer or the manufacturer's authorized agent meets all of the following conditions: 1. The frame is the component part replaced. 2. The frame replacement is performed by the vehicle manufacturer or the manufacturer's authorized agent. 3. If the original frame contained a vehicle identification number or serial number, the original vehicle identification number or serial number, in a similar size and style, is restamped in the replacement frame by the manufacturer or the manufacturer's authorized agent. 4. Any existing manufacturer warranties remaining on the vehicle are not voided. 5. The manufacturer or the manufacturer's authorized agent obliterates all vehicle identification numbers or serial numbers contained on the original frame. S. Except as otherwise provided, a person who violates this section is guilty of a class 2 misdemeanor. T. For the purposes of this section: 1. "Essential parts" means 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. 2. "Nonrepairable vehicle" means a vehicle of a type that is otherwise subject to the issuance of a certificate of title and registration pursuant to this chapter and that either: (a) Has no resale value except as a source of parts or scrap metal and the owner or insurer designates the vehicle solely as a source of parts or scrap metal. (b) Is a completely stripped vehicle that is recovered from theft and that is missing the engine or motor, the transmission, all of the bolt-on sheet metal body panels, all of the doors and hatches, substantially all of the interior components and substantially all of the grill and light assemblies or that the owner designates has little or no resale value except its worth as a source of scrap metal or as a source of a vehicle identification number that could be used illegally. (c) Is a completely burned vehicle that has been burned to the extent that there are no usable or repairable body or interior components, tires and wheels, engine or motor or transmission and that the owner irreversibly designates as having little or no resale value except as a source of scrap metal or as a source of a vehicle identification number that could be used illegally. 3. "Salvage vehicle" means a vehicle, other than a nonrepairable vehicle, of a type that is subject to the issuance of a certificate of title and registration pursuant to this chapter and that has been stolen