ADOT; primitive roads; designation

Plain English Breakdown

The official bill summary states it becomes effective on the 'general effective date,' but does not specify a calendar day or month in the provided text.

Exempting Large Employers and Associations from Driver License Provider Bond Requirements

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 This Bill 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 Names or 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.

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.

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.

Official Summary Text

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

Current Bill Text

Chapter 0230 - 572R - H Ver of SB1456

House Engrossed
Senate Bill

ADOT;
primitive roads; designation

(now: authorized third party; bond exemption)

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

CHAPTER 230

SENATE BILL 1456

AN
ACT

Amending section 28-5101.01, Arizona
Revised Statutes; relating to transportation authorized third parties.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-5101.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
28-5101.01.

Authorized
third party driver license providers; requirements

A. Except as provided in section 28-5101.03,
an authorized third party driver license provider must perform both of the
following:

1. Driver license skills and written testing.

2. Driver license processing.

B. A person who is a third party driver license
provider authorized pursuant to this section may also be authorized pursuant to
this article to perform certain title and registration functions.

C. A person who applies for authorization pursuant
to this section shall submit with the application all of the following:

1. A bond in a form to be approved by the director
and in an amount of at least $300,000 for an initial application for
authorization pursuant to this section and an additional $100,000 for each
additional location providing driver license functions prescribed in subsection
A of this section, except that if the authorized third party is also authorized
pursuant to this article to perform certain title and registration functions at
the same location only a single $100,000 bond is required for that location.
The total bond amount required by this paragraph shall not exceed $1,000,000.
The bond requirements of this paragraph do not apply to
government

entities prescribed in section 28-5104, subsection E, paragraphs 1, 2, 3,
5
,

and
11
and 12
.

2. Documentation that the applicant satisfies all of
the following:

(a) Has been an authorized third party pursuant to
this chapter for at least the immediately preceding three years.

(b) Has conducted an average of at least one
thousand retention transactions per month for the previous calendar year.

(c) Is in good standing with the department.

(d) Has a facility plan for each location that shows
adequate space and equipment necessary to perform the functions prescribed in
subsection A of this section.

3. Documentation that the applicant has during
business hours at least one certified processor qualified to perform at a
minimum all of the following at each location:

(a) Fraudulent document recognition.

(b) Ignition interlock requirements.

(c) Driver license reinstatements.

D. A third party driver license provider authorized
pursuant to this section must comply with all quality control requirements
prescribed by the department.

E. A third party driver license provider authorized
pursuant to subsection A of this section may perform administrative functions
or testing functions or both administrative functions and testing functions for
the issuance and renewal of commercial driver licenses as authorized by the
director and pursuant to federal law.
END_STATUTE

APPROVED BY THE GOVERNOR JUNE 22, 2026.

FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 22, 2026.