This amendment replaces the original bill to set new rules for private companies that want to issue driver licenses, including a requirement for large financial bonds and proof of past experience.
SB1456
Exempting Large Employers and Associations from Driver License Provider Bond Requirements
In one sentence
This law adds employers with at least 500 employees or members to the list of groups that do not have to pay a security bond when applying to become an authorized third-party driver license provider.
What it does
- Adds employers and associations with at least 500 employees or members who are applying for authorization as an authorized third-party driver license provider to the list of entities exempt from submitting the required bond.
- Amends Arizona Revised Statutes section 28-5101.01 regarding requirements for authorized third-party driver license providers.
Who it affects
- Employers with at least 500 employees applying to operate as an authorized third-party driver license provider.
- Associations with at least 500 members applying to operate as an authorized third-party driver license provider.
- The Arizona Department of Transportation, which oversees the application and bond requirements.
Limits and unknowns
- The law does not change the specific dollar amounts required for bonds from applicants who are not exempt.
- This bill only addresses bond requirements and does not alter other qualifications needed to become a provider, such as having three years of prior authorization or conducting at least one thousand retention transactions per month.
Plain language
Terms to know
- Authorized Third-Party Driver License Provider
- A private business or organization approved by the state to perform driver license skills testing, written testing, and processing services.
- Bond Exemption
- An exception that allows certain groups to skip the requirement of posting a financial security bond with their application for authorization.
Official record
Sources
Official summary
SB1456 - 572R - Senate Fact Sheet Assigned to ATT���������������������������������������������������������������������������������������������������������� AS PASSED BY HOUSE ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session AMENDED FACT SHEET FOR S.B. 1456 ADOT; primitive roads; designation ( NOW: authorized third party; bond exemption ) As passed by the Senate, S.B. 1456 allowed the Director of the Arizona Department of Transportation (ADOT) to designate a state highway or route as a primitive road and outlined signage requirements for primitive roads. The House of Representatives adopted a strike-everything amendment that does the following: Purpose ����������� Adds employers and associations with at least 500 employees or members and who are applying for authorization to operate as an authorized third-party driver license provider to the list of entities who are exempt from submitting the prescribed bond with the application for authorization. Background An authorized third-party driver license provider, other than authorized third-party commercial driver license examiners, must perform driver license skills and written testing and driver license processing. A person who applies for authorization to operate as an authorized third-party driver license provider must submit a bond in an amount of at least $300,000 for an initial application for authorization and an additional $100,000 for each additional location providing driver license functions. Only a single $100,000 bond is required for a location if an authorized third-party is also authorized to perform certain title and registration functions at the same location. The total required bond amount may not exceed $1,000,000 and certain government entities are exempt from the outlined bond requirements, including: 1) departments, agencies, political subdivisions, courts and law enforcement agencies of the state; 2) financial institutions or enterprises under the jurisdiction of the Department of Insurance and Financial Institutions and federal monetary authorities; 3) the federal government and any federal agency; and 4) tribal governments ( A.R.S. � 28-5101.01 ). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Includes employers or associations that have at least 500 employees or members in the list of entities who are exempt from submitting prescribed bonds when applying for authorization as a third-party driver license provider. 2. Makes technical changes. 3. Becomes effective on the general effective date. Amendments Adopted by the House of Representatives � Adopted the strike-everything amendment relating to bond exemptions for authorized third-party driver license providers. House Action TI���������������� 3/25/26�������� DPA/SE����� 4-2-0-1 3 rd Read������ 4/27/26���������������������������� 38-19-2-0-1 3 rd Read*���� 6/11/26���������������������������� 39-19-2 * on reconsideration Prepared by Senate Research June 11, 2026 LMM/KS/ci
Official activity
Bill history
- Governor signedSenate
- Senate passedSenate
- Senate passedSenate
- Senate minority caucusSenate
- Transmitted to SenateSenate
- House third read passedHouse
- House passedHouse
- Transmitted to HouseHouse
- Senate passedSenate
- House passedHouse
- Transmitted to SenateSenate
- House third read passedHouse
- House committee of the wholeHouse
- House minority caucusHouse
- House majority caucusHouse
- House second readHouse
- House Rules: C&PHouse
- House Transportation & Infrastructure: DPA/SEHouse
- House first readHouse
- Transmitted to HouseHouse
Changes
Amendments
2 stored
This amendment replaces the original bill about primitive roads with new rules that allow private companies to issue driver licenses if they meet strict experience, staffing, and financial requirements.