HB2535 Summary

• Removes motor vehicle dealers from the Department of Financial Institutions licensing and fee structure under section 6-126, transferring dealer licensing and fees exclusively to the Department of Transportation under section 28-4302.

• Establishes new fee structure for motor vehicle dealers under section 28-4302: $100 annual fee for regular dealers, $400 annual fee for dealers with third-party lender relationships (with $300 going to state general fund and $100 to highway user revenue fund), and $250 annual continuation fee for dealers with third-party lenders.

• Creates comprehensive updates to certificate of title terminology and electronic title systems, replacing "titled" language with "issued a certificate of title" throughout Arizona motor vehicle code and authorizing the director to implement electronic certificate of title procedures.

• Adds new definitions to section 28-101 including "certificate of ownership," "certificate of title," and "title transfer form" to support electronic and paper-based title systems.

• Modifies dealer licensing requirements in section 28-4361 to exclude new motor vehicle dealers from criminal records check requirements and authorizes the director to establish education and training programs for used motor vehicle and wholesale motor vehicle dealers.