BillCam

House Engrossed

transportation; budget reconciliation; 2021-2022.

State of Arizona

House of Representatives

Fifty-fifth Legislature

First Regular Session

2021

HOUSE BILL 2901

AN ACT

amending section 28-332, Arizona Revised Statutes; repealing section 28-414, Arizona Revised Statutes; amending title 28, chapter 2, Arizona Revised Statutes, by adding article 6; amending sections 28-2321, 28-2324, 28-2325, 28-2532, 28-5474, 28-5739, 28-5863 and 28-5864, Arizona Revised Statutes; repealing section 28-6547, Arizona Revised Statutes; amending sections 28-6991 and 28-6993, Arizona Revised Statutes; repealing sections 41-803 and 41-804, Arizona Revised Statutes; amending sections 41-805, 41-1504, 41-1752 and 49-555, Arizona Revised Statutes; appropriating monies; relating to transportation reconciliation.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 28-332, Arizona Revised Statutes, is amended to read:

START_STATUTE28-332. Department of transportation jurisdiction; duties

A. The exclusive control and jurisdiction over state highways, state routes, state owned state-owned airports and all state owned state-owned transportation systems or modes are vested in the department of transportation.

B. The department shall:

1. Register motor vehicles and aircraft, license drivers, collect revenues, enforce motor vehicle and aviation statutes and perform related functions.

2. Do multimodal state transportation planning, cooperate and coordinate transportation planning with local governments and establish an annually updated priority program of capital improvements for all transportation modes.

3. Design and construct transportation facilities in accordance with a priority plan and maintain and operate state highways, state owned state-owned airports and state public transportation systems.

4. Investigate new transportation systems and cooperate with and advise local governments concerning the development and operation of public transit systems.

5. Have administrative jurisdiction of transportation safety programs and implement them in accordance with applicable law.

6. Except as provided in section 28-472, subsection F, Operate a state motor vehicle fleet for all motor vehicles that are owned, leased or rented by this state.

C. In order to carry out the responsibilities enumerated in subsection B of this section, the department is organized into the following divisions:

1. Motor vehicle.

2. Transportation planning.

3. Highways.

4. Aeronautics.

5. Public transit.

6. Administrative services.

D. The director may do any of the following:

1. Establish divisions in addition to those prescribed in subsection C of this section.

2. Reorganize the department.

3. Consolidate the department. END_STATUTE

Sec. 2. Repeal

Section 28-414, Arizona Revised Statutes, is repealed.

Sec. 3. Title 28, chapter 2, Arizona Revised Statutes, is amended by adding article 6, to read:

ARTICLE 6. STATE MOTOR VEHICLE FLEET

START_STATUTE28-471. Definitions

In this article, unless the context otherwise requires:

1. "Agency":

(a) means a department, board, office, authority, commission or other governmental budget unit of this state, including A governmental budget unit of this state that is under direct administrative control of an elected official.

(b) Does not include The legislative or judicial branches of state government.

2. "Fleet operation services" means any of the following that the department provides to an agency:

(a) motor vehicles that are owned, leased or rented by this state and that the department provides for transporting state officers and employees.

(b) Fuel services for motor vehicles that are owned, leased or rented by this state.

(d) Administrative services related to fleet management.

3. "New motor vehicle" means an original equipment manufactured vehicle, a converted original equipment manufactured vehicle or an original equipment manufactured vehicle that will be converted. END_STATUTE

START_STATUTE28-472. Fleet operation services; records; rules; vehicle replacement rate; participating agencies; coordinator; public service announcements; annual report

A. The director shall operate the state motor vehicle fleet for the purpose of providing fleet operation services to agencies. The director shall make fleet operation services available to an agency on the request of the chosen representative for that agency.

B. The director is responsible for administering the state motor vehicle fleet, including:

1. Procuring motor vehicles for the state motor vehicle fleet.

2. Notwithstanding title 41, chapter 23, article 8, administering the surplus and sale of motor vehicles in the state motor vehicle fleet.

C. The director shall provide for detailed cost, operation, maintenance, mileage and custody records for each state-owned motor vehicle.

D. The director may adopt rules necessary to administer this article.

E. The department shall recover all costs for fleet operation services that are provided to an agency. Each agency shall pay from available monies the cost of fleet operation services received from the department at a rate determined by the director, including a separate vehicle replacement rate for motor vehicle replacements. The director shall deposit, pursuant to sections 35-146 and 35-147, Monies received for fleet operation services in the state fleet operations fund established by section 28-475. The director shall deposit, pursuant to sections 35-146 and 35-147, monies received to pay the vehicle replacement rate in the state vehicle replacement fund established by section 28-476.

F. The following agencies are excluded from participation in the state motor vehicle fleet:

1. The Department of public safety.

2. The Department of economic security.

3. The State department of corrections.

4. Universities and community colleges.

5. The Arizona state schools for the deaf and the blind.

6. The Cotton research and protection council.

7. The Arizona commerce authority.

8. The Department of child safety.

G. The director shall appoint a state motor vehicle fleet coordinator.

H. An agency may not purchase, lease or rent a motor vehicle unless the agency is excluded from participation in the state motor vehicle fleet by subsection f of this section. The director may withhold registration for any motor vehicle that is purchased, leased or rented in violation of this subsection.

I. Notwithstanding subsection H of this section, an agency that administers a separate account pursuant to section 28-476, subsection C shall control the purchase, lease or rental of motor vehicles. Vehicles purchased, leased or rented under this subsection shall be used by the agency only for the agency's purposes.

J. An agency listed in subsection f of this section may elect to participate in the state motor vehicle fleet by executing an interagency service agreement between the agency and the department.

K. A governmental budget unit of this state that is not an agency may elect to participate in the state motor vehicle fleet by entering into an interagency service agreement with the department.

L. An agency, including an agency listed in subsection f of this section, may accept compensation for placing public service announcements on state-owned motor vehicles, and monies received shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. The agency director shall determine the appropriateness of the announcements, may exempt any motor vehicles that are not suitable for advertising and may contract with private parties to design and place the announcements.

M. On or before October 1 of each year, the department shall submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report that accounts for all monies deposited in the state fleet operations fund established by section 28-475 and the state vehicle replacement fund established by section 28-476, including any monies allocated to separate agency accounts. THe report shall also include the number of motor vehicles that were replaced in the prior fiscal year, the number of motor vehicles at each agency, the replacement life cycle for each motor vehicle and the number of motor vehicles the department identifies as not requiring replacement.END_STATUTE

START_STATUTE28-473. Agency requests for motor vehicles; neighborhood electric vehicles

A. Before making a new motor vehicle purchase, the department shall consider purchasing a neighborhood electric vehicle.

B. If an agency requests a motor vehicle from the state motor vehicle fleet, the agency shall be assigned a neighborhood electric vehicle unless the agency demonstrates to the department that the neighborhood electric vehicle will not meet the needs of the agency because the new motor vehicle will be doing any of the following:

1. Operating on a street with a posted speed limit that exceeds thirty-five miles per hour.

2. Carrying a load that exceeds one thousand five hundred pounds.

3. Transporting more than six persons. END_STATUTE

START_STATUTE28-474. Statewide alternative fuels plan; coordinator; energy conservation; alternative and clean burning fuels requirements

A. The state motor vehicle fleet coordinator shall develop, implement, document, monitor and modify as necessary a statewide alternative fuels plan in consultation with all agencies that are subject to the alternative fuel and clean burning fuel requirements prescribed in this section or any other law. The coordinator shall approve all motor vehicle acquisitions pursuant to this section, except for acquisitions by community college districts.

B. Motor Vehicles purchased for the state motor vehicle fleet shall comply with the united states environmental protection agency standards for low-emission vehicles pursuant to 40 code of federal regulations section 88.104-94 or 88.105-94.

C. The coordinator shall identify specific motor vehicle models within each vehicle class that meet the demands of each agency and that demonstrate a high degree of fuel economy.

D. Subsections b and C of this section do not apply to the purchase or lease of the following:

1. A motor vehicle to be used primarily for criminal law enforcement.

2. A motorcycle.

3. An all-terrain vehicle.

4. An ambulance.

5. A fire truck, a fire engine or any other fire-suppression apparatus.

E. An agency that is excluded from participation in the state motor vehicle fleet pursuant to section 28-472, subsection f shall develop and implement a plan for alternative fuels and clean burning fuels and fuel economy for the agency's motor vehicle fleet that is substantially similar to the standards set forth in this section. The agency shall submit the plan to the coordinator for review.

F. All agencies, including those listed in section 28-472, subsection f, shall comply with the statewide alternative fuels plan that is developed and implemented by the coordinator pursuant to subsection a of this section.

G. The department may not register a motor vehicle that is operated by an agency listed in section 28-472, subsection f if the agency is not in compliance with this section. END_STATUTE

START_STATUTE28-475. State fleet operations fund; exemption

A. The state fleet operations fund is established consisting of monies received from agencies to pay the costs of fleet operation services pursuant to section 28-472 and from legislative appropriations.

B. The department shall administer the fund. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. END_STATUTE

START_STATUTE28-476. State vehicle replacement fund; exemption

A. The state vehicle replacement fund is established consisting of payments received from agencies for the vehicle replacement rate pursuant to section 28-472, subsection E, proceeds from the sale of surplus motor vehicles and legislative appropriations. The department may separately account for each agency that pays a vehicle replacement rate pursuant to section 28-472, subsection E.

C. Notwithstanding subsection B of this section, if an agency's separate account includes monies that are restricted in purpose by state or federal law, the agency shall administer the separate account. END_STATUTE

Sec. 4. Section 28-2321, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2321. Registration requirement for nonresident's vehicle

A. Except as otherwise provided in this article, every foreign motor vehicle owned by a nonresident and operated in this state shall be registered and licensed in the same manner as a motor vehicle that has not been registered or licensed if the motor vehicle is operated in this state either:

1. For the transportation of passengers or property for compensation.

2. In the business of a nonresident carried on in this state.

3. For the transportation of property.

4. In the furtherance of a commercial enterprise and is a passenger-carrying motor vehicle designed to seat twelve or more persons.

B. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected pursuant to this section at ports of entry on the border between this state and Mexico in the safety enforcement and transportation infrastructure fund established by section 28-6547. as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

C. Sections 28-2322, 28-2323 and 28-2324 and this section do not apply to:

1. A foreign motor vehicle that is owned by a nonresident and that would be exempt from payment of gross weight fees under section 28-5432 if the motor vehicle were owned by a resident of this state.

2. A foreign motor vehicle that is owned by a nonresident and operated in this state for the transportation of property in the furtherance of a commercial enterprise and that is either:

(a) Commonly referred to as a passenger car or station wagon.

(b) Commonly known and referred to by manufacturer's rating as a three-quarter ton or less pickup truck or three-quarter ton or less van. END_STATUTE

Sec. 5. Section 28-2324, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2324. Limited registration; fees; violation

A. If a person desires to operate a motor vehicle that is required to be registered by section 28-2321 for a period of less than the full registration year and the motor vehicle is registered and licensed under the laws of another state or country, the owner may apply to the department in the manner and form prescribed for the registration of the motor vehicle for either thirty, sixty or ninety day periods. The person shall pay the following percentages of the full annual registration, use and gross weight fees that are applicable to the applicant's motor vehicle as prescribed by sections 28-2003, 28-5433 and 28-5471, or twelve dollars $12, whichever is more:

1. For thirty days, twenty per cent percent.

2. For sixty days, thirty-five per cent percent.

3. For ninety days, fifty per cent percent.

B. The department shall not accept an application for a fraction of any of the periods prescribed in subsection A of this section. The department may issue registrations without restriction as to number or sequence.

C. The director shall deposit, pursuant to sections 35-146 and 35-147, all fees collected pursuant to subsection A of this section at ports of entry on the border between this state and Mexico in the safety enforcement and transportation infrastructure fund established by section 28-6547. as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

D. If satisfied as to the facts stated in the application, the department shall register and license the motor vehicle for the period prescribed in subsection A of this section and shall assign an appropriate certificate or license. The operator shall display the certificate or license on the motor vehicle in the manner prescribed by the department when the motor vehicle is operated or driven on a highway of this state.

E. If a nonresident owner of a foreign motor vehicle is apprehended while operating the vehicle beyond the period specified in the owner's certificate or license and the owner has not applied for renewal of the certificate or license:

1. The department shall not issue another thirty, sixty or ninety day certificate or license to the owner during the registration year in which the violation occurred.

2. The nonresident owner shall register the motor vehicle and pay the fees for the registration year. END_STATUTE

Sec. 6. Section 28-2325, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2325. Single trip permit; fees

A. An owner or operator of a vehicle that is required to be registered pursuant to section 28-2321 may apply to the department for a single trip permit. The single trip permit authorizes the interstate operation of the vehicle:

1. For a single trip through this state.

2. From any point on the Arizona border to a point within this state and back to the border.

3. From a railhead within this state and return to a railhead.

4. From a point within this state to the border of this state.

B. In order to obtain a single trip permit pursuant to this section, the owner or operator shall provide evidence of each of the following to the department:

1. An insurance policy that satisfies all of the following:

(a) Meets the financial responsibility requirements prescribed in chapter 9 of this title.

(b) Is issued by an insurer that has been issued a certificate of authority or that has been permitted to transact surplus lines insurance by the public official that supervises insurance in a state of the United States or the District of Columbia.

2. A current driver license of a class and type recognized by the department as valid in the United States.

3. Current compliance with vehicle safety inspection requirements prescribed in 49 Code of Federal Regulations sections 396.17 through 396.23.

C. If satisfied as to the facts stated in the application and the evidence provided pursuant to subsection B of this section, the department shall register the vehicle by issuing a single trip permit on payment by the owner or operator of the following fees:

1. For a one or two axle vehicle, two dollars $2 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

2. For a three axle vehicle or combination of vehicles with not more than three axles, three dollars $3 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

3. For a vehicle or combination of vehicles with four axles, four dollars $4 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

4. For a vehicle or combination of vehicles with five axles, five dollars $5 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

5. For a vehicle or combination of vehicles with six axles, six dollars $6 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

6. For a vehicle or combination of vehicles with more than six axles, seven dollars $7 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

D. The director shall deposit, pursuant to sections 35-146 and 35-147, all fees collected pursuant to subsection C of this section at ports of entry on the border between this state and Mexico in the safety enforcement and transportation infrastructure fund established by section 28-6547. as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

E. The application for a single trip permit to the department does not qualify the applicant for eligibility in an assigned risk plan approved pursuant to section 28-4008.

F. The single trip permit shall contain information, be in the form and be issued and displayed in or on the vehicle as prescribed by department rules.

G. A single trip permit expires on completion of the specific trip for which the permit is issued and shall not exceed a period of ninety-six hours from the time of issuance unless an extension of time is authorized in writing by the department.

H. If a person operates a vehicle for which a single trip permit has been issued otherwise than as authorized in the permit, the owner or operator shall apply for and obtain annual registration of the vehicle and shall pay the fees applicable at the time the terms of the permit are violated. END_STATUTE

Sec. 7. Section 28-2532, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2532. Registration; violation; civil penalty; dismissal

A. Except as provided in subsection B of this section, A person who is the resident or nonresident owner or operator of a motor vehicle, trailer or semitrailer that is required by law to be registered in this state and that is not registered or does not display license plates assigned by the department for the current registration year and who operates or knowingly permits allows the vehicle to be operated on a highway is subject to a civil penalty of three hundred dollars $300 notwithstanding section 28-1598.

B. On proper presentation of evidence of current registration, a person who is charged with a violation of subsection A of this section is subject to a civil penalty of fifty dollars.

C. B. A court shall not dismiss an action brought under this section merely because if the defendant has obtained obtains the appropriate license plates or registration after violating this section. A court may decide not to impose a civil penalty against a defendant for a violation of this section if the defendant was an operator but was not the owner of the motor vehicle, trailer or semitrailer. END_STATUTE

Sec. 8. Section 28-5474, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5474. Axle fees; commercial vehicles; border crossing; definition

A. The director may adopt rules establishing a fee based on the number of axles attached to a foreign vehicle or a foreign vehicle combination that is imposed on nonresidents operating or causing the operation of a foreign vehicle or foreign vehicle combination that enters this state by crossing the border between this state and the republic of Mexico in the furtherance of a commercial enterprise.

B. If the director establishes a fee by rule pursuant to this section, the fee shall apply to a nonresident who is operating or causing the operation of a foreign vehicle or foreign vehicle combination and who is required to register the foreign vehicle or foreign vehicle combination pursuant to section 28-2321 or who is responsible for payment of paying any fees required by sections section 28-2324, 28-2325, 28-5739, 28-5763 28-5863 or 28-5864.

C. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected by rules established pursuant to this section in the safety enforcement and transportation infrastructure fund established by section 28-6547. as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

D. For the purposes of this section, "foreign vehicle" or "foreign vehicle combination" means a truck or truck tractor and semitrailer and any trailer that it tows that is registered in a foreign country or jurisdiction of a foreign country and enters this state by crossing the border between this state and the republic of Mexico in the furtherance of a commercial enterprise. END_STATUTE

Sec. 9. Section 28-5739, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5739. Single trip and other limited use fuel tax permits

A. If a use class motor vehicle is propelled by use fuel and is operated in this state in the course of interstate traffic, the department may issue, in lieu of an interstate user license, a special single trip use fuel tax permit authorizing operation of the vehicle for a single trip through this state or from a point on the Arizona border to a point in this state and return to the border.

B. The fee for the single trip use fuel tax permit is sixty-five dollars $65 for more than fifty miles traveled on the highways in this state and sixteen dollars $16 for fifty miles or less traveled on the highways in this state.

C. The single trip use fuel tax permit is valid for ninety-six hours.

D. The department:

1. Shall issue a single trip use fuel tax permit in duplicate.

2. May issue a single trip use fuel tax permit for a vehicle entering this state at Teec Nos Pos and exiting at Black Rock or entering this state at Black Rock and exiting at Teec Nos Pos even if the vehicle exits and reenters this state during the trip.

3. May issue a special thirty, ninety or one hundred eighty day use fuel tax permit for a use class motor vehicle if the vehicle is in this state for a limited time. The fees for these permits are as follows:

(a) For a thirty day permit, one hundred thirty dollars $130.

(b) For a ninety day permit, three hundred ninety dollars $390.

E. The director may authorize third parties to issue use fuel tax permits pursuant to this section in accordance with rules adopted by the director.

F. The director shall deposit, pursuant to sections 35-146 and 35-147, all fees collected pursuant to this section at ports of entry on the border between this state and Mexico in the safety enforcement and transportation infrastructure fund established by section 28-6547. as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

G. The fees imposed pursuant to this section do not apply to a use class motor vehicle that is used in the production of:

1. Motion pictures, including films to be shown in theaters and on television.

2. Industrial, training and educational films.

3. Commercials for television.

4. Video discs.

5. Videotapes. END_STATUTE

Sec. 10. Section 28-5863, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5863. Single trip motor carrier fee trip permit; fee; expiration

A. There is imposed against each motor vehicle for a single trip motor carrier fee trip permit a motor carrier fee of either:

1. Twelve dollars $12 for fifty miles or less to be traveled on the highways of this state.

2. Forty-eight dollars $48 for more than fifty miles to be traveled on the highways of this state.

B. A single trip motor carrier fee trip permit:

1. Expires on the completion of the specific trip for which it is issued and applies only for a period of ninety-six hours from after the time of issuance unless an extension of time is authorized by the director.

2. Is valid for a single trip for vehicles entering this state at Black Rock and exiting at Teec Nos Pos or entering this state at Teec Nos Pos and exiting at Black Rock even if the vehicles exit and reenter this state during the trip.

C. The director may authorize third parties to issue single trip motor carrier fee trip permits pursuant to this section in accordance with rules adopted by the director.

D. The director shall deposit, pursuant to sections 35-146 and 35-147, all fees collected pursuant to this section at ports of entry on the border between this state and Mexico in the safety enforcement and transportation infrastructure fund established by section 28-6547. as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752. END_STATUTE

Sec. 11. Section 28-5864, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5864. Special thirty day motor carrier fee permit

A. The department may issue a special thirty day motor carrier fee permit for a motor vehicle if the vehicle is not in the commercial transportation business, is in this state for a limited period of time and will make limited use of this state's highways.

B. The motor carrier fee for a special thirty day permit is ninety-six dollars $96.

C. The director may authorize third parties to issue special thirty day motor carrier fee trip permits pursuant to this section in accordance with rules adopted by the director.

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752. END_STATUTE

Sec. 12. Repeal

Section 28-6547, Arizona Revised Statutes, is repealed.

Sec. 13. Section 28-6991, Arizona Revised Statutes, is amended to read:

START_STATUTE28-6991. State highway fund; sources

The state highway fund is established that consists of:

1. Monies distributed from the Arizona highway user revenue fund pursuant to chapter 18 of this title.

2. Monies appropriated by the legislature.

3. Monies received from donations for the construction, improvement or maintenance of state highways or bridges. These monies shall be credited to a special account and shall be spent only for the purpose indicated by the donor.

4. Monies received from counties or cities under cooperative agreements, including proceeds from bond issues. The state treasurer shall deposit these monies to the credit of the fund in a special account on delivery to the treasurer of a concise written agreement between the department and the county or city stating the purposes for which the monies are surrendered by the county or city, and these monies shall be spent only as stated in the agreement.

5. Monies received from the United States under an act of Congress to provide aid for the construction of rural post roads, but monies received on projects for which the monies necessary to be provided by this state are wholly derived from sources mentioned in paragraphs 2 and 3 of this section shall be allotted by the department and deposited by the state treasurer in the special account within the fund established for each project. On completion of the project, on the satisfaction and discharge in full of all obligations of any kind created and on request of the department, the treasurer shall transfer the unexpended balance in the special account for the project into the state highway fund, and the unexpended balance and any further federal aid thereafter received on account of the project may be spent under the general provisions of this title.

6. Monies in the custody of an officer or agent of this state from any source that is to be used for the construction, improvement or maintenance of state highways or bridges.

7. Monies deposited in the state general fund and arising from the disposal of state personal property belonging to the department.

8. Receipts from the sale or disposal of any or all other property held by the department and purchased with state highway monies.

9. Monies generated pursuant to section 28-410.

10. Monies distributed pursuant to section 28-5808, subsection B, paragraph 2, subdivision (d).

11. Monies deposited pursuant to sections 28-1143, 28-2353 and 28-3003.

12. Except as provided in section 28-5101, the following monies:

(a) Monies deposited pursuant to section 28-2206 and section 28-5808, subsection B, paragraph 2, subdivision (e).

(b) $1 of each registration fee and $1 of each title fee collected pursuant to section 28-2003.

(d) The air quality compliance fee collected pursuant to section 49-542.

(e) The special plate administration fees collected pursuant to sections 28-2404, 28-2407, 28-2412 through 28-2416, 28-2416.01, 28-2417 through 28-2468 and 28-2514.

(f) Monies collected pursuant to sections 28-372, 28-2155 and 28-2156 if the director is the registering officer.

13. Monies deposited pursuant to chapter 5, article 5 of this title.

14. Donations received pursuant to section 28-2269.

15. Dealer and registration monies collected pursuant to section 28-4304.

16. Abandoned vehicle administration monies deposited pursuant to section 28-4804.

17. Monies deposited pursuant to section 28-710, subsection D, paragraph 2.

18. Monies deposited pursuant to section 28-2065.

19. Monies deposited pursuant to section 28-7311.

20. Monies deposited pursuant to section 28-7059.

21. Monies deposited pursuant to section 28-1105.

22. Monies deposited pursuant to section 28-2448, subsection D.

23. Monies deposited pursuant to section 28-3415.

24. Monies deposited pursuant to section 28-3002, subsection A, paragraph 14.

25. Monies deposited pursuant to section 28-7316.

26. Monies deposited pursuant to section 28-4302.

27. Monies deposited pursuant to section 28-3416.

28. Monies deposited pursuant to section 28-4504.

29. Monies deposited pursuant to section 28-2098.

30. Monies deposited pursuant to sections 28-2321, 28-2324, 28-2325, 28-5474, 28-5739, 28-5863 and 28-5864. END_STATUTE

Sec. 14. Section 28-6993, Arizona Revised Statutes, is amended to read:

START_STATUTE28-6993. State highway fund; authorized uses

A. Except as provided in subsection B of this section and section 28-6538, the state highway fund shall be used for any of the following purposes in strict conformity with and subject to the budget as provided by this section and by sections 28-6997 through 28-7003:

1. To pay salaries, wages, necessary travel expenses and other expenses of officers and employees of the department and the incidental office expenses, including telegraph, telephone, postal and express charges and printing, stationery and advertising expenses.

2. To pay for both:

(a) Equipment, supplies, machines, tools, department offices and laboratories established by the department.

(b) The construction and repair of buildings or yards of the department.

3. To pay the cost of both:

(a) Engineering, construction, improvement and maintenance of state highways and parts of highways forming state routes.

(b) Highways under cooperative agreements with the United States that are entered into pursuant to this chapter and an act of Congress providing for the construction of rural post roads.

4. To pay land damages incurred by reason of establishing, opening, altering, relocating, widening or abandoning portions of a state route or state highway.

5. To reimburse the department revolving account.

6. To pay premiums on authorized indemnity bonds and on compensation insurance under the workers' compensation act.

7. To defray lawful expenses and costs required to administer and carry out the intent, purposes and provisions of this title, including repayment of obligations entered into pursuant to this title, payment of interest on obligations entered into pursuant to this title, repayment of loans and other financial assistance, including repayment of advances and interest on advances made to the department pursuant to section 28-7677, and payment of all other obligations and expenses of the board and department pursuant to chapter 21 of this title.

8. To pay lawful bills and charges incurred by the state engineer.

9. To acquire, construct or improve entry roads to state parks or roads within state parks.

10. To acquire, construct or improve entry roads to state prisons.

11. To pay the cost of relocating a utility facility pursuant to section 28-7156.

12. For the purposes provided in subsections C, D and E of this section and sections 28-1143, 28-2353 and 28-3003.

13. To pay the cost of issuing an Arizona centennial special plate pursuant to section 28-2448.

14. To pay for all of the following:

(a) The Enforcement by the department of public safety and the department of transportation of vehicle safety requirements within twenty-five miles of the border between this state and Mexico.

(b) Costs related to procuring electronic equipment, automated systems or improvements to existing electronic equipment or automated systems for relieving vehicle congestion at ports of entry on the border between this state and Mexico.

(c) constructing, maintaining and upgrading transportation facilities, including roads, streets and highways, approved by the board within twenty-five miles of the border between this state and Mexico.

(d) As approved by the board, constructing and maintaining transportation facilities in the CANAMEX high priority corridor as defined in section 332 of the national highway system designation act of 1995 (P.L. 104-59; 109 Stat. 568).

(e) Activities of the department that include collecting transportation and trade data in the United States and Mexico for the purposes of constructing transportation facilities, improving public safety, improving truck processing time and relieving congestion at ports of entry on the border between this state and Mexico. The department may enter into an agreement with the Arizona-Mexico commission and provide funding to the commission for the purposes of this subdivision.

(f) A commitment or investment necessary for the department or another agency of this state to obtain federal monies that are designated for expenditure pursuant to this section.

B. For each fiscal year, the department of transportation shall allocate and transfer monies in the state highway fund to the department of public safety for funding a portion of highway patrol costs in eight installments in each of the first eight months of a fiscal year that do not exceed $10,000,000.

C. Subject to legislative appropriation, the department may use the monies in the state highway fund as prescribed in section 28-6991, paragraph 12 to carry out the duties imposed by this title for registration or titling of vehicles, to operate joint title, registration and driver licensing offices, to cover the administrative costs of issuing the air quality compliance sticker, modifying the year validating tab and issuing the windshield sticker and to cover expenses and costs in issuing special plates pursuant to sections 28-2404, 28-2407, 28-2412 through 28-2468 and 28-2514.

D. The department shall use monies deposited in the state highway fund pursuant to chapter 5, article 5 of this title only as prescribed by that article.

E. Monies deposited in the state highway fund pursuant to section 28-2269 shall be used only as prescribed by that section.

F. Monies deposited in the state highway fund pursuant to section 28-710, subsection D, paragraph 2 shall only be used for state highway work zone traffic control devices.

G. The department may exchange monies distributed to the state highway fund pursuant to section 28-6538, subsection A, paragraph 1 for local government surface transportation program federal monies suballocated to councils of government and metropolitan planning organizations if the local government scheduled to receive the federal monies concurs. An exchange of state highway fund monies pursuant to this subsection shall be in an amount that is at least equal to ninety percent of the federal obligation authority that exists in the project for which the exchange is proposed.

H. The department shall use monies deposited in the state highway fund pursuant to section 28-1105, subsection A, paragraph 2, subdivision (a) only for a transportation facility that is located within twenty drivable miles of the international port of entry and shall spend the monies proportionally based on the amount of total monies collected pursuant to section 28-1105, subsection A, paragraph 2, subdivision (a). For the purposes of this subsection, "transportation facility" means a highway or a state route or a county, city or town road that is used by a commercial vehicle or a commercial vehicle combination for which an axle fee is paid pursuant to section 28-5474. END_STATUTE

Sec. 15. Repeal

Sections 41-803 and 41-804, Arizona Revised Statutes, are repealed.

Sec. 16. Section 41-805, Arizona Revised Statutes, is amended to read:

START_STATUTE41-805. Off duty peace officers; lease or rental of law enforcement equipment

A. Subject to the agreement of the director of the department of administration, the head of a state department or agency that employs peace officers who are certified by the Arizona peace officer standards and training board established by section 41-1821 may allow those peace officers to engage in off duty law enforcement work if that work does not conflict with the work performed by the certified peace officers for the state department or agency.

B. If the head of a state department or agency allows its certified peace officers to engage in off duty law enforcement work pursuant to subsection A of this section, the state department or agency may lease or rent motor vehicles and other law enforcement equipment directly to its certified peace officers for the purpose of traffic safety, traffic control or other law enforcement related activity.

C. If a state agency or department leases or rents motor vehicles pursuant to subsection B of this section, the state agency or department shall:

1. Adopt rules and policies relating to the lease or rental of motor vehicles and other law enforcement equipment that are substantially similar to the rules and policies adopted by the department of public safety.

2. Deposit, pursuant to sections 35-146 and 35-147, any monies generated from the leasing or renting of the state fleet motor vehicles in the motor vehicle pool revolving fund established by section 41-804 department of public safety administration fund.

D. The department of administration shall adopt uniform contract indemnity provisions and insurance coverage provisions naming this state and the agency that allows its certified peace officers to engage in off duty law enforcement work as additional insureds on a commercial liability policy. The coverage policy applies to all employers of certified peace officers engaging in off duty law enforcement work pursuant to this section. The coverage policy shall hold this state harmless and indemnify this state by employers of certified peace officers engaging in off duty law enforcement work. END_STATUTE

Sec. 17. Section 41-1504, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1504. Powers and duties; e-verify requirement

A. The board of directors, on behalf of the authority, may:

1. Adopt and use a corporate seal.

2. Sue and be sued.

3. Enter into contracts as necessary to carry out the purposes and requirements of this chapter, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 and interagency service agreements as provided by section 35-148.

4. Lease real property and improvements to real property for the purposes of the authority. Leases by the authority are exempt from chapter 4, article 7 of this title, relating to management of state properties.

5. Employ or retain legal counsel and other consultants as necessary to carry out the purposes of the authority.

6. Develop and use written policies, procedures and guidelines for the terms and conditions of employing officers and employees of the authority and may include background checks of appropriate personnel.

B. The board of directors, on behalf of the authority, shall:

1. Develop comprehensive long-range strategic economic plans for this state and submit the plans to the governor.

2. Annually update a strategic economic plan for submission to the governor.

3. Accept gifts, grants and loans and enter into contracts and other transactions with any federal or state agency, municipality, private organization or other source.

C. The authority shall:

1. Assess and collect fees for processing applications and administering incentives. The board shall adopt the manner of computing the amount of each fee to be assessed. Within thirty days after proposing fees for adoption, the chief executive officer shall submit a schedule of the fees for review by the joint legislative budget committee. It is the intent of the legislature that a fee shall not exceed one percent of the amount of the incentive.

2. Determine and collect registry fees for the administration of the allocation of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Such monies collected by the authority shall be deposited, pursuant to sections 35-146 and 35-147, in an application fees fund. Monies in the fund shall be used, subject to annual appropriation by the legislature, by the authority to administer the allocations provided in this paragraph and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations.

3. Determine and collect security deposits for the allocation, for the extension of allocations and for the difference between allocations and principal amounts of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Security deposits forfeited to the authority shall be deposited in the state general fund.

4. At the direction of the board, establish and supervise the operations of full-time or part-time offices in other states and foreign countries for the purpose of expanding direct investment and export trade opportunities for businesses and industries in this state if, based on objective research, the authority determines that the effort would be beneficial to the economy of this state.

5. Establish a program by which entrepreneurs become aware of permits, licenses or other authorizations needed to establish, expand or operate in this state.

6. Post on its website on an annual basis a report containing at least the following information:

(a) The cumulative progress made toward its goals for job creation, capital investment and higher average wages.

(b) To the extent not prohibited by law, information on each incentive application approved by the authority in the fiscal year, including the amount of the incentive approved or awarded and the applicant's activity that is projected or has been achieved, whichever is applicable, to qualify for the incentive.

(d) Small business outreach and impact data.

7. Develop and implement written policies and procedures relating to the administration of grants from the Arizona competes fund established by section 41-1545.01, including the following elements:

(a) Procedures for documenting grantee selection and due diligence.

(b) Procedures for verification of information submitted by grantees.

8. Notwithstanding any other law, on request of the office of economic opportunity, disclose to the office of economic opportunity applicant information for incentives administered, in whole or in part, by the authority. Any confidentiality requirements provided by law applicable to the information disclosed pursuant to this paragraph apply to the office of economic opportunity.

D. The authority, through the chief executive officer, may:

1. Contract and incur obligations reasonably necessary or desirable within the general scope of the authority's activities and operations to enable the authority to adequately perform its duties.

2. Use monies, facilities or services to provide matching contributions under federal or other programs that further the objectives and programs of the authority.

3. Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for the conduct of programs that are consistent with the general purposes and objectives of this chapter.

4. Assess business fees for promotional services provided to businesses that export products and services from this state. The fees shall not exceed the actual costs of the services provided.

5. Establish and maintain one or more accounts in banks or other depositories, for public or private monies of the authority, from which operational activities, including payroll, vendor and grant payments, may be conducted. Individual funds that are established by law under the jurisdiction of the authority may be maintained in separate accounts in banks or other depositories, but shall not be commingled with any other monies or funds of the authority.

E. The chief executive officer shall:

1. Hire employees and prescribe the terms and conditions of their employment as necessary to carry out the purposes of the authority. The board of directors shall adopt written policies, procedures and guidelines, similar to those adopted by the department of administration, regarding officer and employee compensation, observed holidays, leave and reimbursement of travel expenses and health and accident insurance. The officers and employees of the authority are exempt from any laws regulating state employment, including:

(a) Chapter 4, articles 5 and 6 of this title, relating to state service.

(b) Title 38, chapter 4, article 1 and chapter 5, article 2, relating to state personnel compensation, leave and retirement.

(d) Title 38, chapter 4, article 4, relating to health and accident insurance.

2. Maintain three full-time employees to serve as advocates for small and rural businesses on economic development and regulatory matters before cities, towns, counties or state agencies. Two of the full-time employees shall be dedicated to small business growth, support and regulation, one of whom shall serve as a small business ombudsman. One of the full-time employees shall be dedicated to rural economic development.

3. On a quarterly basis, provide public record data in a manner prescribed by the department of administration related to the authority's revenues and expenditures for inclusion in the comprehensive database of receipts and expenditures of state monies pursuant to section 41-725.

F. In addition to any other requirement, in order to qualify for any grant, loan, reimbursement, tax incentive or other economic development incentive pursuant to this chapter, an applicant that is an employer must register with and participate in the e-verify program in compliance with section 23-214. The authority shall require verification of compliance with this subsection as part of any application process.

G. Notwithstanding any other law, the authority is subject to chapter 3.1, article 1 of this title, relating to risk management.

H. The authority is exempt from title 18, chapter 1, articles 1 and 2, relating to statewide information technology. The authority shall adopt policies, procedures and guidelines regarding information technology.

I. The authority is exempt from state general accounting and finance practices and rules adopted pursuant to chapter 4, article 3 of this title, but the board shall adopt written accounting practices, systems and procedures for the economic and efficient operation of the authority.

J. The authority is exempt from section 41-712, relating to the installation and maintenance of telecommunication systems.

K. The authority may lease or purchase motor vehicles for use by employees to conduct business activities. The authority is exempt from section 41-803 28-472, relating to the state motor vehicle fleet, and title 38, chapter 3, article 10, relating to vehicle usage and markings.

L. Any tangible or intangible record submitted to or compiled by the board or the authority in connection with its work, including the award of monies, is subject to title 39, chapter 1, unless an applicant shows, or the board or authority determines, that specific information meets either of the following:

1. If made public, the information would divulge the applicant's or potential applicant's trade secrets, as defined in section 44-401.

2. If made public, the information could potentially harm the applicant's, the potential applicant's or this state's competitive position relating to potential business development opportunities and strategies.

M. The authority is exempt from chapter 25, article 1 of this title, relating to government competition with private enterprise. END_STATUTE

Sec. 18. Section 41-1752, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1752. Arizona highway patrol fund

A. The Arizona highway patrol fund is established.

B. The Arizona highway patrol fund consists of:

1. Monies distributed to the fund from the Arizona highway user revenue fund by the legislature subject to section 28-6537.

2. Miscellaneous service fees.

3. Rewards.

4. Awards.

5. Insurance recoveries.

6. Receipts from the sale or disposal of any property held by the Arizona highway patrol or purchased with Arizona highway patrol monies.

7. Monies received from the public safety personnel retirement system pursuant to section 20-224.01.

8. Monies deposited pursuant to section 28-3513.

9. Monies deposited pursuant to section 28-2007.

10. Monies deposited pursuant to sections 28-2321, 28-2324, 28-2325, 28-5474, 28-5739, 28-5863 and 28-5864.

C. Subject to legislative appropriation, the patrol superintendent shall administer and spend monies in the Arizona highway patrol fund in conformity with the laws governing state financial operations.

D. Monies in the Arizona highway patrol fund:

1. Do not revert to the state general fund or Arizona highway user revenue fund.

2. Are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

E. Subject to legislative appropriation, monies in the Arizona highway patrol fund:

1. Shall be used for the following:

(a) To administer Administering the provisions of law relating to the highway patrol and the Arizona highway patrol reserve and all matters pertaining to those laws, except that monies received pursuant to subsection B, paragraph 7 of this section shall be used for the department of public safety.

(b) The enforcement by the department of public safety and the department of transportation of vehicle safety requirements within twenty-five miles of the border between this state and Mexico.

(c) Costs related to procuring electronic equipment, automated systems or improvements to existing electronic equipment or automated systems for relieving vehicle congestion at ports of entry on the border between this state and Mexico.

(d) A commitment or investment necessary for the department or another agency of this state to obtain federal monies that are designated for expenditure pursuant to this section.

2. May be used for the pharmaceutical diversion and drug theft task force. END_STATUTE

Sec. 19. Section 49-555, Arizona Revised Statutes, is amended to read:

START_STATUTE49-555. Retrofit of diesel vehicles

Entities that are subject to the provisions of sections 9-500.04, 41-803 28-474, 49-474.01 and 49-573 shall comply with the following time schedule for retrofitting their existing diesel vehicles:

1. Twenty-five per cent percent of the diesel fleet vehicles by December 31, 1998.

2. Forty per cent percent of the diesel fleet vehicles by December 31, 1999.

3. Sixty per cent percent of the diesel fleet vehicles by December 31, 2000.

4. Eighty per cent percent of the diesel fleet vehicles by December 31, 2001.

5. One hundred per cent percent of the diesel fleet vehicles by December 31, 2002. END_STATUTE

Sec. 20. Succession; state motor vehicle fleet

A. As provided by this act, the department of transportation succeeds to the authority, powers, duties and responsibilities of the department of administration in state motor vehicle fleet operations.

B. This act does not alter the effect of any actions that were taken or impair the valid obligations of the department of administration in state motor vehicle fleet operations and measures in existence before the effective date of this act.

C. Administrative rules and orders that were adopted by the department of administration related to state motor vehicle fleet operations continue in effect until superseded by administrative action by the department of transportation.

D. All administrative matters, contracts and judicial and quasi-judicial actions, whether completed, pending or in process, of the department of administration related to state motor vehicle fleet operations on the effective date of this act are transferred to and retain the same status with the department of transportation.

E. Notwithstanding any other law, on the effective date of this act all equipment, records, furnishings and other property and all data of the department of administration related to state motor vehicle fleet operations are transferred to the department of transportation. The director of the department of administration shall determine and allocate the transfer, consistent with the provisions of this act.

F. All personnel who are under the state personnel system and employed by the department of administration in positions directly related to state motor vehicle fleet operations are transferred to comparable positions and pay classifications in the department of transportation on the effective date of this act.

Sec. 21. State agency vehicle transfer

All motor vehicles owned by state agencies or departments other than those listed in section 28-472, subsection F, Arizona Revised Statutes, as added by this act, are transferred to the department of transportation from and after June 30, 2021. This section does not apply to any vehicle purchased with monies that are restricted in use by state or federal law or legally committed to the expenditure for specified purposes.

Sec. 22. Exemption from rulemaking

For the purposes of this act, the department of transportation is exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, for one year after the effective date of this act.

Sec. 23. Transfer of monies

A. All unexpended and unencumbered monies remaining in the motor vehicle pool consolidation fund established by section 28-414, Arizona Revised Statutes, as repealed by this act, are transferred to the state vehicle replacement fund established by section 28-476, Arizona Revised Statutes, as added by this act.

B. All unexpended and unencumbered monies remaining in the motor vehicle pool revolving fund established by section 41-804, Arizona Revised Statutes, as repealed by this act, are transferred to the state vehicle replacement fund established by section 28-476, Arizona Revised Statutes, as added by this act.

C. All unexpended and unencumbered monies remaining in the department of transportation interagency service agreement fund and interagency governmental agreement fund established pursuant to section 35-131, subsection H, Arizona Revised Statutes, relating to motor vehicle fleet activities are transferred to the state fleet operations fund established by section 28-475, Arizona Revised Statutes, as added by this act.

D. All unexpended and unencumbered monies remaining in the department of transportation subaccount in the safety enforcement and transportation infrastructure fund established by section 28-6547, Arizona Revised Statutes, as repealed by this act, are transferred to the state highway fund established by section 28-6991, Arizona Revised Statutes, as amended by this act.

E. All unexpended and unencumbered monies remaining in the department of public safety subaccount in the safety enforcement and transportation infrastructure fund established by section 28-6547, Arizona Revised Statutes, as repealed by this act, are transferred to the Arizona highway patrol fund established by section 41-1752, Arizona Revised Statutes, as amended by this act.

Sec. 24. Rental vehicle surcharge; vehicle license tax reimbursement

Notwithstanding section 28-5810, Arizona Revised Statutes, a person engaged in the business of renting motor vehicles without drivers may use the surcharge monies collected in 2021 pursuant to section 28-5810, Arizona Revised Statutes, to reimburse the amount of vehicle license tax imposed in 2020 and 2021 on the rental vehicles as described in section 28-5810, subsection B, paragraph 5, Arizona Revised Statutes.

Sec. 25. Retroactivity

This act applies retroactively to from and after June 30, 2021.