Assigned to TRANS & APPROPS                                                                              AS PASSED BY THE SENATE

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR H.B. 2055

 

MVD; third party reimbursement

 

Purpose

 

Expands the number of services that an authorized third party is eligible to receive reimbursement from the Arizona Department of Transportation.

 

Background

 

In 1993, the Legislature authorized the Arizona Department of Transportation (ADOT) to develop a partnership with third parties to perform certain title and registration functions. The legislation required the authorized third party to submit the title and registration fees it collects and allowed the authorized third party to collect and retain a reasonable convenience fee for its service.  In 1998, legislation required ADOT to partially reimburse an authorized third party two percent of each vehicle license tax payment the third party collects and submits to ADOT.  The bill also authorized third parties to perform carrier licensing and tax reporting, dealer licensing and drive license functions.

 

According to an Auditor General’s 18-month follow-up review, for FY 1998-1999 third party title and registration contractors processed approximately 700,000 transactions and collected approximately $161 million in title and registration fees and taxes on ADOT’s behalf.  This represents nearly 14 percent of all title and registration transactions and nearly 22 percent of the total title and registration revenue for FY 1998-1999.

 

            The Joint Legislative Budget Committee (JLBC) estimates that this measure has an annual cost of $540,900 to the state highway fund beginning FY 2001-2002 and an annual cost of $71,600 to local governments beginning in FY 2001-2002 due to decreased highway user revenue fund distributions for increased reimbursement of authorized third parties.  Assumptions made by JLBC regarding this fiscal impact are contained in the revised fiscal note associated with this legislation.

 

Provisions

 

1.      Requires ADOT to pay authorized third parties:

 

§         A minimum of four dollars for vehicle license tax payment collected.

§         Four dollars for each driver license, nonoperating identification license or permit processed.

§         One dollar or two percent of each overweight or excess size vehicle registration or permit fee collected and submitted, whichever is more.

§         One dollar for each motor vehicle record, excluding records released to commercial recipients.

§         Five dollars for each tax report filing.

 

2.      Requires an authorized third party conducting business with the general public to post the amount charged for each transaction performed by the authorized third party and the amount charged by ADOT for the same transaction.

 

3.      Makes technical changes.

 

4.      Provides for a general effective date.

 

Amendments Adopted by Committee of the Whole

 

1.      Limits the type of motor vehicle records that ADOT may reimburse an authorized third party.

 

2.      Requires an authorized third party conducting business with the general public to post the amount charged for each transaction and the amount ADOT charges for the same transaction.

 

House Action                                                           Senate Action                                                                                                                                                                                                                                                                          

 

TRANS           1/29/01            DPA    9-0-0-1                     TRANS      3/15/01       DP        8-0-0

3rd Read           2/5/01              DPA    56-0-4          APPROP   3/20/01        DP        9-0-3

                                                                                 3rd Read     4/26/01                    26-1-2-1

 

 

Prepared by Senate Staff

April 27, 2001