Arizona 2024 2024 Regular Session

Arizona Senate Bill SB1467 Comm Sub / Analysis

Filed 04/01/2024

                    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.   FACT SHEET – Amended  
S.B. 1467 
Page 2 
 
 
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