House of Representatives

HB 2055

MVD; third party reimbursement

Sponsors: Representatives Cooley, Carruthers, et al

dpa	Committee on Transportation
dpa	Caucus and COW
x	As Passed the House

House Bill 2055 expands the number and type of services for which third parties may receive reimbursement from the Highway User Revenue Fund (HURF) and the State Highway Fund (SHF) if third parties are enabled by the Arizona Department of Transportation Motor Vehicle Division (MVD) to perform these services. There is an impact to these funds.

History

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.

MVD reports that in fiscal year 1999-2000, $5.5 million was expended to reimburse third parties for title and registration fees and $1.1 million for reimbursement of credit card fees.

Provisions

· Requires ADOT to reimburse authorized third parties a minimum of four dollars for each VLT payment collected.

· Four dollars for each application processed by the third party relating to driver licenses or permits.

· One dollar or two per cent of each overweight or excess size vehicle registration or permit fee collected – whichever is more.

· One dollar for each motor vehicle record.

· Five dollars for each tax report filing.

· Adds nonoperating identification cards (I.D. cards) to the list of transactions for which a third party may receive reimbursement.

· Makes technical and conforming changes.

House Bill 2055 passed the Committee on Transportation amended:

· Adds nonoperating identification cards (I.D. cards) to the list of transactions for which a third party may receive reimbursement.

The Committee of the Whole adopted the Committee on Transportation amendments.

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44th Legislature

Second Regular Session 2 April 27, 2001

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