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REFERENCE TITLE: authorized third parties; electronic title |
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State of Arizona Senate Fifty-third Legislature First Regular Session 2017
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SB 1270 |
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Introduced by Senators Worsley: Borrelli, Bowie, Brophy McGee, Burges, Fann, Kavanagh
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AN ACT
amending sections 28‑2064 and 28‑5101, Arizona Revised Statutes; relating to the department of transportation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-2064, Arizona Revised Statutes, is amended to read:
28-2064. Electronic certificates of title system; notification; 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. If the director establishes a system, the director shall implement the system no sooner than January 1, 2018 and no later than January 1, 2023.
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.
3. Notify authorized third party electronic service providers as defined in section 28-5100 and authorized third party electronic service partners as defined in section 28-5100 of the system's establishment and implementation.
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 is required to issue a paper certificate of title.
Sec. 2. Section 28-5101, Arizona Revised Statutes, is amended to read:
28-5101. Third party authorization
A. The director may authorize third parties to perform certain of the following functions:
1. Title and registration.
2. Motor carrier licensing and tax reporting.
3. Dealer licensing.
4. Driver licensing as prescribed in sections 28‑5101.01, 28‑5101.02 and 28‑5101.03.
B. The director may authorize a person to be a third party electronic service provider or to be a third party electronic service partner. An authorized third party electronic service provider shall meet all of the requirements established by the department. The written agreement between the department and the authorized third party electronic service provider may be for a limited number of services and may limit the persons that may receive the services. An authorized third party electronic service partner shall meet the requirements established by the department and shall be selected through a competitive bid process. The department shall make a reasonable effort to authorize multiple third party electronic service providers and third party electronic service partners.
C. A person shall not engage in any business pursuant to this article unless the director authorizes the person to engage in the business.
D. The director may furnish necessary documents or license plates subject to this article.
E. Except as provided in subsection F of this section, an authorized third party or an authorized third party electronic service provider shall submit to the department all statutorily prescribed fees and taxes it collects. In addition to the statutorily prescribed fees and taxes, an authorized third party or an authorized third party electronic service provider may collect and retain a reasonable and commensurate fee for its services.
F. In addition to payment pursuant to section 28‑374, the department shall reimburse the authorized third party or third party electronic service provider as follows:
1. One dollar of each initial, renewal, replacement or duplicate registration fee for a vehicle or an aircraft.
2. One dollar of each initial, duplicate or transfer certificate of title fee for a vehicle or an aircraft.
3. An amount equal to two percent of each vehicle license tax payment or aircraft license tax payment the authorized third party collects and submits to the department or four dollars for each registration year or part of a registration year, whichever is more. The reimbursement amount shall not exceed the amount of vehicle license tax or aircraft license tax collected.
4. Four dollars for each initial, renewal, replacement or duplicate application that the third party processes and that relates to driver licenses, nonoperating identification licenses or permits. An authorized third party may add the cost for expedited processing of renewal, replacement or duplicate applications if requested by the applicant.
5. An amount equal to two percent of each overweight or excess size vehicle registration or permit fee the third party collects and submits to the department or one dollar for each overweight or excess size vehicle registration or permit processed, whichever is more.
6. One dollar for each motor vehicle or special motor vehicle record, excluding motor vehicle records released to commercial recipients, including insurers and their authorized agents.
7. Five dollars or one‑fourth of one percent of the fuel taxes reported, whichever is greater, for each fuel tax report filed electronically. The maximum annual amount retained each year shall not exceed four hundred eighty thousand dollars.
8. One dollar for each fuel tax permit.
9. One dollar for each nonsufficient insufficient funds or dishonored check payment.
10. One dollar for each abandoned vehicle report processed, except for applications for crushed vehicles.
11. One dollar for each abandoned vehicle payment.
12. Two dollars for each initial special or personalized license plate application.
13. One dollar for each initial, renewal or replacement vehicle dealer license plate.
14. Five dollars for each application for an initial vehicle dealer license or continuation of a vehicle dealer license.
15. One dollar of each twelve dollar fee paid pursuant to section 28‑2356.
16. One dollar for each traffic survival school application and one dollar for each certificate of completion processed.
17. One dollar for each replacement license plate or tab.
G. For authorized third party electronic service partners, the amount of compensation and the amount of reimbursements for transactions shall be negotiated by the department and the authorized third party electronic service partner and shall be set forth in the written agreement authorizing the third party electronic service partner. If reimbursement is made for individual transactions, the reimbursements shall not exceed the amounts specified in subsections F, H and I of this section. Other forms of compensation or reimbursements for services may be specified in the written agreement. Compensation and reimbursements provided for by the written agreement may include the development and implementation of information technology and other automated systems and any necessary support for these systems.
H. The department's authorized third party electronic service provider may retain two dollars for processing documents electronically when the statutory fee pursuant to prescribed by this title is two dollars or more.
I. The director may authorize the third party electronic service provider to process electronic fund transfers to the department for payment of motor vehicle taxes and fees. The third party electronic service provider may add a two dollar processing fee for each electronic funds transfer.
J. Each authorized third party that holds itself out as providing services to the general public shall post a sign in a conspicuous location in each facility of the authorized third party that contains all of the following:
1. The amount charged for each transaction performed by the authorized third party.
2. The amount charged by the department for the same transaction.
3. How to file a complaint or concern with the department about the authorized third party.
K. The department may not authorize a government entity to be a third party electronic service provider or third party electronic service partner.