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House Engrossed Senate Bill
ADOT; authorized third parties; CDLs (now: authorized third parties; ADOT) |
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State of Arizona Senate Fifty-sixth Legislature First Regular Session 2023
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SENATE BILL 1101 |
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An Act
amending sections 28-2064 and 28-5101.01, Arizona Revised Statutes; relating to authorized third parties.
(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; 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:
1. Shall:
1. (a) 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. (b) Develop methods to electronically share information related to applications for certificates of title with law enforcement agencies and entities licensed under this title.
2. May not prohibit an authorized third party as defined in section 28-5100 from printing an electronic certificate of title or a registration tab or windshield sticker.
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.
Sec. 2. Section 28-5101.01, Arizona Revised Statutes, is amended to read:
28-5101.01. Authorized third party driver license providers; requirements
A. Except as provided in section 28-5101.03, an authorized third party driver license provider must perform both of the following:
1. Driver license skills and written testing.
2. Driver license processing.
B. A person who is a third party driver license provider authorized pursuant to this section may also be authorized pursuant to this article to perform certain title and registration functions.
C. A person who applies for authorization pursuant to this section shall submit with the application all of the following:
1. A bond in a form to be approved by the director and in an amount of at least $300,000 for an initial application for authorization pursuant to this section and an additional $100,000 for each additional location providing driver license functions prescribed in subsection A of this section, except that if the authorized third party is also authorized pursuant to this article to perform certain title and registration functions at the same location only a single $100,000 bond is required for that location. The total bond amount required by this paragraph shall not exceed $1,000,000. The bond requirements of this paragraph do not apply to government entities prescribed in section 28-5104, subsection E, paragraphs 1, 2, 3, 5 and 11.
2. Documentation that the applicant satisfies all of the following:
(a) Has been an authorized third party pursuant to this chapter for at least the immediately preceding three years.
(b) Has conducted an average of at least one thousand retention transactions per month for the previous calendar year.
(c) Is in good standing with the department.
(d) Has a facility plan for each location that shows adequate space and equipment necessary to perform the functions prescribed in subsection A of this section.
3. Documentation that the applicant has during business hours at least one certified processor qualified to perform at a minimum all of the following at each location:
(a) Fraudulent document recognition.
(b) Ignition interlock requirements.
(c) Driver license reinstatements.
D. A third party driver license provider authorized pursuant to this section must comply with all quality control requirements prescribed by the department.
E. A third party driver license provider authorized pursuant to subsection A of this section may perform administrative and functions or testing functions or both administrative functions and testing functions for the issuance and renewal of commercial driver licenses as authorized by the director and pursuant to federal law.