Current through Register Vol. 30, No. 38, September 20, 2024
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.
