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ARIZONA STATE SENATE

Fifty-Sixth Legislature, Second Regular Session

 

FACT SHEET FOR S.B. 1467

 

ADOT; authorized third parties; revocation

Purpose

Requires the Director of the Arizona Department of Transportation (ADOT) to revoke the authorization or certification, or both, of a third party that does not meet prescribed standards for authorization and prescribes related notification requirements.

Background

An authorized third party (ATP) is an entity that has executed a written agreement and is authorized by ADOT to perform limited or specific functions but is not authorized by ADOT to function as an ATP electronic service provider (A.R.S. § 28-5100). The Director of ADOT (Director) may authorize an ATP to perform functions carried out by the Motor Vehicle Division, including: 1) title and registration; 2) motor carrier licensing and tax reporting; 3) dealer licensing; and 4) driver licensing, as prescribed (A.R.S. § 28-5101). An ATP driver license provider may perform administrative and testing functions for the issuance and renewal of commercial driver licenses and must: 1) perform driver licensing skills and written testing; 2) perform driver license processing; and 3) comply with quality control requirements, as prescribed by ADOT (A.R.S. § 28-5101.01).

The Director may deny an application for third party authorization, certification or both and must advise the applicant within 20 days of the denial and the grounds for the denial if the Director determines that: 1) the applicant is not eligible for third party authorization or certification; 2) the application is not made in good faith; 3) the application contains a material misrepresentation or misstatement; or 4) the applicant has not met the requirements of law. An applicant may request a hearing to appeal the application denial (A.R.S. § 28-5107).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Requires the Director to revoke an authorization or certification, or both, if a third party does not meet the prescribed standards for ATPs.

2.   Requires the Director to advise the third party, in writing, of the revocation and the grounds for revocation within 20 days of the revocation.

3.   Allows the third party, within 30 days after receiving the notice of revocation, to petition the Director in writing for a hearing on the revocation.

4.   Stipulates that, if the person does not request a hearing within 30 days, the revocation is final.

5.   Makes technical and conforming changes.

6.   Becomes effective on the general effective date.

Prepared by Senate Research

February 8, 2024

KJA/cs