MVD; third party
reimbursement
House Bill 2055 expands the number and type of services for which third parties may receive reimbursement if third parties are enabled by the Arizona Department of Transportation Motor Vehicle Division (MVD) to perform these services. There is an estimated impact of to the State Highway Fund if this bill is enacted.
Laws 1993, Chapter 178 enabled the Arizona Department of Transportation (ADOT) to authorize third parties to perform title and registration functions. Laws 1998, Chapter 200 allowed these third parties to retain a portion of the fees they collect. The bill also authorized third parties to perform motor carrier licensing and tax reporting, dealer licensing and driver license functions.
In addition to reimbursement for providing alternative payment methods pursuant to A.R.S. § 28-374, ADOT is required to reimburse authorized third parties one dollar for every registration fee collected, one dollar for every title fee collected, and two per cent of each vehicle license tax (VLT) payment collected (see A.R.S. § 28-5101). The authorized third party may also collect and retain a reasonable and commensurate fee for its services.