Arizona law sets bonds for driver license providers and permits commercial license work

Applicants must submit a bond of at least $300,000 for an initial authorization, plus $100,000 for each additional location, up to $1 million. These bond requirements apply to people applying to become authorized third-party driver license providers. A location that also provides certain title and registration services requires only one $100,000 bond for that location. The bond rule does not apply to the government entities listed in section 28-5104(E)(1), (2), (3), (5), (11), and (12).

Applicants must document that they meet the listed experience, performance, facility, and staffing requirements. These requirements apply to people applying for authorization under section 28-5101.01. Applicants must have been authorized under the chapter for at least the three immediately preceding years, averaged at least 1,000 retention transactions per month in the previous calendar year, and be in good standing with the department. Applicants must provide a facility plan for each location and have at least one certified processor there during business hours who can handle fraud checks, ignition interlock requirements, and driver license reinstatements. The transaction average is measured over the previous calendar year.

The director may authorize providers to handle paperwork, testing, or both for commercial driver license issuance and renewal. This applies to third-party driver license providers authorized under section 28-5101.01(A). The director must authorize the work, and it must comply with federal law.