SB 1467
Initials LM Page 1 Transportation & Infrastructure
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
Senate: TTMC DPA 7-0-0-0 | 3
rd
Read 17-11-2-0
SB1467: ADOT; authorized third parties; revocation
Sponsor: Senator Kern, LD 27
Committee on Transportation & Infrastructure
Overview
Directs the Director of the Arizona Department of Transportation (ADOT) to revoke an
authorization or certification, or both, if the third party does not meet the standards on
criminal record check and modifies requirements on authorized third parties.
History
The Director of ADOT (Director) may allow authorized third parties 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) prescribed driver licensing (A.R.S. §
28-5101).
Statute requires each applicant who owns 20% or more of an entity, each partner or
stockholder who owns 20% or more of an entity and each person who is an employee of an
authorized third party who has access to personal information obtained from ADOT or a
customer of ADOT or monies collected on behalf of this state, and who seeks authorization or
certification, or both, must provide: 1) a full set of fingerprints to ADOT for the purpose of
obtaining a state and federal criminal records check; and 2) a nonrefundable fee to be paid to
the Arizona Department of Public Safety for the criminal records check (A.R.S. § 28-5105).
The Director may deny an application for third party authorization or certification, or both,
and must advise the applicant in writing 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, or both; 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 who is aggrieved by the denial of an application
may make a written request to ADOT for a hearing on the application within 30 days after
service of the notice of denial. If the applicant requests a hearing, the Director must give
written notice to the applicant to appear at a hearing to show cause why the denial of the
applicant's application should not be upheld. After consideration of the evidence presented
at the hearing, the Director must serve notice in writing to the applicant of the Director's
findings and order. A timely request for a hearing stays the denial of the application. If the
application is denied, the applicant may appeal the decision (A.R.S. § 28-5107).
An authorized third party 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 authorized third party electronic service provider (A.R.S. § 28-5100).
SB 1467
Initials LM Page 2 Transportation & Infrastructure
Provisions
1. Requires the Director of ADOT to revoke an authorization or certification, or both, if the
third party does not meet the required criminal record check standards. (Sec. 1)
2. Directs the Director of ADOT to advise the third party in writing of the revocation and
the grounds for the revocation. (Sec. 1)
3. Allows the third party, within 30 days after receipt of the notice of revocation, to either:
a) petition the Director of ADOT in writing for a hearing on the revocation; or
b) seek judicial review of the Director of ADOT's revocation. (Sec. 1)
4. Permits the court to reinstate the authorization or certification, or both, and award any
damages and attorney fees if the court finds for the third party. (Sec. 1-3)
5. Stipulates that a person, rather than an applicant, who is aggravated by the denial of an
application or a revocation of an authorization or certification, or both, may either:
a) make a written request to ADOT for a hearing on the application or revocation within
30 days after service of the notice of denial or the notice of revocation; or
b) seek judicial review of the Director of ADOT's denial or revocation. (Sec. 2)
6. States that the revocation is final if the person does not request a hearing or seek judicial
review within 30 days. (Sec. 2)
7. Directs the Director of ADOT to give written notice to the person to appear at a hearing
to show cause why the revocation of the authorization or certification, should not be
upheld if the person requests a hearing. (Sec. 2)
8. Mandates that a timely request for a hearing stays the revocation of the authorization or
certification. (Sec. 2)
9. States that the person may appeal the decision if the authorization or certification, or
both, are revoked. (Sec. 2)
10. Allows a person to forgo an administrative appeal and seek judicial review of the Director
of ADOT's denial, suspension or cancellation of the person's application, authorization or
certification. (Sec. 3)
11. Makes technical and conforming change. (Sec. 1-3)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note