Assigned to TTMC                                                                                                            AS PASSED BY COW

ARIZONA STATE SENATE

Fifty-Sixth Legislature, Second Regular Session

AMENDED

FACT SHEET FOR S.B. 1467

ADOT; authorized third parties; revocation

Purpose

Revokes the authorization or certification, or both, of an authorized third party (ATP) that does not meet authorization requirements and allows a revoked ATP, denied applicant and suspended or cancelled person to seek judicial review for reinstatement, as prescribed.

Background

An ATP is an entity that has executed a written agreement and is authorized by the Arizona Department of Transportation (ADOT) to perform limited or specific functions but is not authorized 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).

Each applicant, partner or stockholder who owns 20 percent or more of an ATP, and each ATP employee, who has access to monies collected on behalf of the state or personal information obtained from ADOT or its customers and seeks authorization or certification, or both, must provide a: 1) full set of fingerprints to ADOT to obtain a state and federal criminal records check; and 2) nonrefundable fee to the Department of Public Safety for the criminal records check. Within 20 days of completing the criminal records check, the Director must approve or deny the application. Within 30 days of receiving written notice of a denial, the applicant may petition the Director in writing for a hearing.

An ATP that adds a partner or stockholder who owns 20 percent or more of the entity must undergo the same application process. If the individual is found ineligible, the Director must advise the ATP and individual that the ATP's authorization will be revoked unless the individual is removed. The Director may deny an application for authorization or certification, or both, if any individual included in the application has: 1) made a misrepresentation or misstatement, as specified; 2) been convicted in any U.S. state, territory or possession or any foreign country of fraud or an auto-related felony within the preceding 10 years or any other felony within the preceding 5 years; 3) violated an ADOT rule or policy; or 4) been involved in any activity that the Director determines to be inappropriate in relation to the authority granted (A.R.S. § 28-5105).

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

Provisions

1. Requires the Director to revoke an ATP's authorization or certification, or both, if the ATP does not meet the prescribed requirements for authorization.

2. Requires the Director to advise the ATP, in writing, of the revocation and the grounds for revocation.

3. Allows an ATP, within 30 days of receiving the notice of revocation, to either:

a) petition the Director in writing for a hearing on the revocation; or

b) seek judicial review of the Director's revocation.

4. Allows an applicant, within 30 days of receiving the notice of denial, to seek judicial review of the Director's denial.

5. Stipulates that if the ATP or applicant does not request a hearing or judicial review within 30 days, the revocation or denial is final.

6. Allows a person whose authorization or certification, or both, has been suspended or cancelled for a prescribed violation to forgo an administrative appeal and seek judicial review of the Director's suspension or cancellation.

7. Authorizes a court that finds for the ATP, applicant or person to reinstate the authorization or certification, or both, and award any damages and attorney fees.

8. Makes technical and conforming changes.

9. Becomes effective on the general effective date.

Amendments Adopted by Committee

1. Requires the Director to revoke an authorization, certification or both if an ATP does not meet the prescribed requirements for ATPs, rather than the prescribed standards for third parties.

2. Removes the 20-day timeframe within which the Director must advise a third party of a revocation.

3. Makes technical and conforming changes.

Amendments Adopted by Committee of the Whole

1. Allows judicial review to be sought as an alternative to an administrative hearing.

2. Allows a court to reinstate the authorization or certification, or both, and award damages and attorney fees.

3. Makes technical and conforming changes.

Senate Action

TTMC             2/15/24      DPA    7-0-0

Prepared by Senate Research

March 28, 2024

KJA/cs