Ariz. Admin. Code § 12-4-530

Current through Register Vol. 30, No. 45, November 8, 2024

Section R12-4-530 - Authorized Third-party Providers; Agents

A. The Department may enter into a contract with a private entity to perform limited or specific services on behalf of the Department in accordance with State procurement laws and rules.

1. The Department may authorize a person to be a third-party provider. An authorized third-party provider shall meet the requirements established by the Department and shall be selected through a competitive bid process.

2. The Department may authorize a third-party provider to perform any one or more of the following services:

a. Watercraft transfer.

b. Watercraft registration renewal.

c. Duplicate watercraft registration and decal.

d. New watercraft registration.

B. A person shall not engage in any business pursuant to this Section unless the Department authorizes the person to engage in the business.

C. The Department shall establish minimum quality standards of service and a quality assurance program for authorized third-party providers to ensure that an authorized third-party provider is complying with the minimum standards.

D. The Department may:

1. Conduct investigations.

2. Conduct audits.

3. Make on-site inspections in compliance with A.R.S. § 41-1009.

4. Require an authorized third-party or employees or agents of an authorized third-party be certified to perform the services prescribed in this Article.

E. An authorized third-party provider shall remit to the Department all fees established under R12-4-504 and R12-4-529 it collects.

1. An authorized third-party provider may collect and retain a reasonable and commensurate fee for its services.

2. Each authorized third-party provider that holds itself out as providing services to the public shall identify to the applicant the Department's registration fee and the nonresident boating safety infrastructure fee, when applicable, separately from any other costs.

F. A third-party who is authorized pursuant to this Section shall:

1. Maintain records in a form and manner prescribed by the Department.

2. Allow access to the records during regular business hours to authorized representatives of the Department or any law enforcement agency to ensure compliance with all applicable statutes and rules.

G. The Department may suspend or cancel an authorization or certification, or both, granted pursuant to this Section if the Department determines that the third-party provider or certificate holder has done any of the following:

1. Made a material misrepresentation or misstatement in the application for authorization or certification.

2. Has been convicted of fraud or a watercraft related felony in any state or jurisdiction of the U.S. within the ten years immediately preceding the date a criminal records check is complete.

3. Has been convicted of a felony, other than a felony described in subsection (2), in any state or jurisdiction of the U.S. within the five years immediately preceding the date a criminal records check is complete.

4. Violated a rule or policy adopted by the Department.

5. Failed to keep and maintain records required by this Section.

6. Failed to remit to the Department all fees established under R12-4-504 and R12-4-529 it collects.

7. Allowed an unauthorized person to engage in any business pursuant to this Section.

K. If the Department has reasonable grounds to believe that a certificate holder or other person employed by an authorized third-party provider has committed a serious violation, the Department may order a summary suspension of the third provider's authorization granted pursuant to this Section pending formal suspension or cancellation proceedings. For the purposes of this subsection, "serious violation" means:

1. Watercraft registration fraud.

2. Improper disclosure of personal information.

3. Bribery.

4. Theft.

L. On determining that grounds for suspension or cancellation of an authorization or certification, or both, exist, the Department shall give written notice to the third-party provider or certificate holder to appear at a hearing before the Department to show cause why the authorization or certification should not be suspended or canceled.

1. After consideration of the evidence presented at the hearing, the Department shall serve notice of the finding and order to the third-party or certificate holder.

2. If a third-party authorization or a certification is suspended or canceled, the third-party or certificate holder may appeal the decision pursuant to A.R.S. Title 41, Chapter 6, Article 10.

Ariz. Admin. Code § R12-4-530

Amended by final rulemaking at 23 A.A.R. 1719, effective 8/5/2017.