Sec 28-2094. Dismantling motor vehicle; application fee; certificate of title; electronic title system; exemption

A. An owner who sells a motor vehicle, trailer or semitrailer as scrap or for dismantling or destroying shall assign the certificate of title of the vehicle to the purchaser. The purchaser shall deliver the following to the department:

1. An application for a dismantle certificate of title to scrap, dismantle or destroy the vehicle.

2. The certificate of title to the vehicle purchased.

3. The registration card of the vehicle.

4. The license plate of the vehicle, if any.

5. A fee of four dollars.

B. Except as provided in subsection G, an owner who intends or desires to dismantle a vehicle shall first forward all of the following to the department:

1. An application for a dismantle certificate of title to dismantle or wreck the vehicle.

2. The certificate of title to the vehicle.

3. The registration card of the vehicle.

4. The license plate of the vehicle, if any.

5. A fee of four dollars.

C. If the registration card or license plate is lost or destroyed, the applicant shall state in a form prescribed by the department under penalty of perjury the circumstances of the loss or destruction. Except as provided in subsection G, on receipt of the documents and fee required by this section, the department shall issue a dismantle certificate of title to the applicant to dismantle or destroy the vehicle. The dismantle certificate of title authorizes the person to transport or possess the vehicle or to transfer ownership by endorsement on the dismantle certificate of title. The department shall not issue a certificate of title for the vehicle if it is dismantled or destroyed.

D. Except as provided in subsection G, a licensed automotive recycler who files with the application for a dismantle certificate of title under this section an Arizona certificate of title indicating that the vehicle is free of all liens or a valid release of any liens shown on the title may begin dismantling the vehicle five days after mailing or three days after delivery of the required documents and fee to the department unless notified by the department of the claim of lien or interest in the vehicle by some other person. If the department sends this notice, the licensed automotive recycler shall cease dismantling or sale of the vehicle and any of its parts until the rights of the other person are determined.

E. A licensed automotive recycler may dismantle a vehicle without obtaining a dismantle certificate of title in the licensed automotive recycler's name if the vehicle has previously been issued a dismantle certificate of title, a salvage certificate of title or a nonrepairable vehicle certificate of title. The dismantle certificate of title, salvage certificate of title or nonrepairable vehicle certificate of title must be the current title of record. Except as provided in subsection G, an automotive recycler shall file a written request to dismantle the vehicle in a form prescribed by the department. The automotive recycler may begin dismantling the vehicle after completing the requirements imposed by the department pursuant to subsection G or after mailing or delivering the request. If the department notifies the automotive recycler of a claim of lien or interest in the vehicle by some other person, the automotive recycler shall cease dismantling or sale of the vehicle and any of its parts until the rights of the other person are determined.

F. An owner may dismantle a vehicle without obtaining a dismantle certificate of title if a nonrepairable vehicle certificate of title has been issued for the vehicle.

G. The director may establish an electronic title system to allow the voluntary recording of the information or documents required by this section through electronic media in a cost-effective manner in lieu of the submission of paper documents as provided in this section. A valid electronic dismantle certificate of title issued by the department to a person authorizes the person to possess, transport, dismantle or destroy the vehicle.

H. In the process of establishing the electronic title system, the director shall:

1. Research methods by which the department and licensed automotive recyclers may exchange and maintain information concerning the electronic completion of dismantle certificates of title without submitting or receiving a paper document.

2. Develop methods by which licensed automotive recyclers may electronically submit updated information pertaining to the vehicle record.

3. Develop methods to electronically share information related to applications for dismantle certificates with law enforcement agencies and licensed automotive recyclers for the purpose of identifying stolen vehicles and stolen vehicle parts.

I. The director may limit the number of licensed automotive recyclers participating in the electronic title system.

J. The director may adopt rules to implement this section.

K. This section does not apply to the removal of a part for the purpose of replacement.