(Disclosure: Rose Law Group represents ASAP and TSI.)
By Reagan Priest | Arizona Capitol Times
Key Points:
- Arizona Department of Transportation accused of unfairly penalizing third party contractors
- The contractors say the crackdown came after a harsh 2023 auditor general report
- A former ADOT employee alleges wrongful termination for pushing back against the crackdown
A now-terminated whistleblower in the Arizona Department of Transportation claims the department’s new audit and review procedure for third party Motor Vehicle Department providers has prompted an unfair and aggressive crackdown against private contractors.
Two third-party contractors, ASAP Title Services and TSI Title & Registration Services, which provide vehicle registration and title services allege their contracts to provide MVD services were suspended after leadership at ADOT put pressure on department staff to crack down on errors made by the third-party companies. The companies’ response, filed with ADOT’s executive hearing office, says the crackdown came in the wake of a harsh 2023 auditor general report that found MVD was not properly overseeing the third-party companies.
The dispute focuses on changes to MVD’s model for quality control of third-party companies that are authorized to provide MVD services to reduce strain on ADOT facilities and employees. The MVD is responsible for reviewing the accuracy of a certain percentage of third-party transactions to ensure official documents and licenses aren’t issued to people who do not qualify for them.
