ARIZONA STATE SENATE
Phoenix, Arizona
Expands the number of
services that an authorized third party is eligible to receive reimbursement
from the Arizona Department of Transportation.
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.
A fiscal impact for
implementation of this legislation has been requested from the Joint
Legislative Budget Committee.
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.
§
Five
dollars for each tax report filing.
2. Makes technical changes.
3. Provides for a general effective date.
Trans 1/29/01 DPA 9-0-0-1
3rd 2/5/01 DPA 56-0-4
Prepared by Senate Staff
March 13, 2001