AZ HB2120

Adds vehicle identification number (VIN) defacement as grounds for mandatory vehicle immobilization or impoundment under section 28-3511, applying when a vehicle is displayed for sale with a destroyed, removed, covered, altered, or defaced VIN.

Prohibits motor vehicle dealers and persons acting as dealers from parking vehicles for sale on public streets, public parking lots, public property, or private property accessible to the public (with exceptions for dealer lots and inventory).

Creates new grounds for license suspension or cancellation for dealers offering private sales of inventory vehicles, with a five-year suspension effective for a second violation.

Establishes mandatory hearings and civil penalty procedures (minimum $1,000 to $3,000 per violation) for licensed dealers violating the private sale prohibition, and requires dealers to pay all transaction privilege taxes on illegal sales.

Modifies enforcement procedures to require the director to conduct hearings for violations and authorizes cease and desist orders for both licensed and unlicensed dealers engaged in prohibited activities.