SB1274 - 521R

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; divisions

A. The exclusive control and jurisdiction over state highways, state routes, state owned airports and all 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 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.

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.

4. Subject to title 41, chapters 6 and 23 relating to administrative procedures and the procurement code, establish alternative methods and use contracted private persons for the administration and oversight of programs, functions or persons that are subject to this title. The director may adopt rules for the administration of this paragraph.

E. The department shall provide general administrative support, equipment and office and meeting space to the Arizona international development authority established by title 41, chapter 45. END_STATUTE

Sec. 2. Section 28-2051, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2051. Application for certificate of title; vision screening test

A. A person shall apply to the department on a form prescribed or authorized by the department for a certificate of title to a motor vehicle, trailer or semitrailer. The person shall make the application within fifteen days after the purchase or transfer of the vehicle, trailer or semitrailer except that a licensed motor vehicle dealer shall make the application within thirty days after the purchase or transfer. All transferees shall sign the application, except that one transferee may sign the application if both of the following apply:

1. The application is for the purposes of converting an out‑of‑state certificate of title to a certificate of title issued pursuant to this article.

2. The ownership or legal status of the motor vehicle, trailer or semitrailer does not change.

B. The application shall contain:

1. The transferee's full name and either the driver license number of the transferee or a number assigned by the department.

2. The transferee's complete residence address.

3. A brief description of the vehicle to be titled.

4. The name of the manufacturer of the vehicle.

5. The serial number of the vehicle.

6. The last license plate number if applicable and if known and the state in which the license plate number was issued.

7. If the application is for a certificate of title to a new vehicle, the date of sale by the manufacturer or dealer to the person first operating the vehicle.

8. If the application is in the name of a lessor:

(a) The lessor shown on the application as the owner or transferee.

(b) At the option of the lessor, the lessee shown on the application as the registrant.

(d) The signature of the lessor.

9. If the application is for a certificate of title to a specially constructed, reconstructed or foreign vehicle, a statement of that fact. For the purposes of this paragraph, "specially constructed vehicle" means a vehicle not originally constructed under a distinctive name, make, model or type by a generally recognized manufacturer of vehicles.

10. If an applicant rents or intends to rent the vehicle without a driver, a statement of that fact.

11. Other information required by the department.

C. Unless subsection B, paragraph 8 of this section applies, on request of an applicant, the department shall allow the applicant to provide on the title of a motor vehicle, trailer or semitrailer a post office box address that is regularly used by the applicant.

D. A person shall submit the following information with an application for a certificate of title:

1. To a vehicle previously registered:

(a) The odometer mileage disclosure statement prescribed by section 28‑2058.

(b) If the applicant is applying for title pursuant to section 28‑2060, the applicant's statement of the odometer reading as of the date of application.

2. To a new vehicle:

(a) Either of the following:

(i) A certificate or electronic title from the manufacturer showing the date of sale to the dealer or person first receiving the vehicle from the manufacturer. Before the department issues a certificate of title to a new vehicle, a certificate or electronic title from the manufacturer shall be surrendered to the department.

(ii) Other documentation as approved by the director showing the date of sale to the dealer or person first receiving the vehicle from the manufacturer.

(b) The name of the dealer or person.

(d) A statement certifying that the vehicle was new when sold.

(e) If sold through a dealer, a statement by the dealer certifying that the vehicle was new when sold to the applicant.

E. The department may request that an applicant who appears in person for a certificate of title of a motor vehicle, trailer or semitrailer satisfactorily complete the vision screening test prescribed by the department. END_STATUTE

Sec. 3. Section 28-2053, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2053. Certificate of title without registration

The department may issue a vehicle certificate of title without registration for any of the following reasons:

1. The applicant for a certificate of title is a nonresident whose vehicle is not subject to vehicle registration in this state.

2. The owner will register the vehicle under article 7 or 8 of this chapter.

3. The applicant certifies that the vehicle was acquired for purposes other than highway use.

4. The vehicle was acquired by operation of law.

5. The vehicle is an off‑road recreational motor vehicle required to be titled pursuant to section 28‑2061.

6. The vehicle is a trailer or semitrailer that will be used in interstate commerce and that is registered in another state. END_STATUTE

Sec. 4. Section 28-2060, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2060. Transfer of ownership by operation of law

A. Except as provided in subsection F of this section, when the title or interest of an owner of a registered vehicle passes to another other than by voluntary transfer, the transferee shall obtain a transfer of registration within thirty days after the passing of the title or interest.

B. Within thirty days after passing of the title or interest of an owner of a registered or unregistered vehicle, the transferee of the vehicle shall obtain a new certificate of title on proper application and presentation of the last certificate of title, if available, and such instruments or documents of authority or certified copies of the instruments or documents that are sufficient or required by law to evidence or effect a transfer of title or interest in or to chattels that pass to another other than by voluntary transfer.

C. If a motor vehicle has been forfeited to the federal government and is sold at public auction pursuant to federal law, the purchaser at the sale takes title free of any liens or encumbrances if federal law so provides. If a motor vehicle has been forfeited to any local or state government entity, agency or political subdivision or to any federal law enforcement agency after the disposition of all claims under the laws of this state, the order of the court forfeiting the vehicle shall transfer good and sufficient title to the transferee and to any subsequent purchaser or transferee. The purchaser or transferee shall register the motor vehicle within thirty days after the sale or transfer, and the department shall issue a certificate of title to the purchaser or transferee on presentation of the evidence of title without any reference to liens or encumbrances.

D. The transferee of a vehicle required to be titled and registered under section 28‑2153 or a mobile home required to be titled under section 28‑2063 may obtain a transfer of registration to the transferee and a new certificate of title if both of the following occur:

1. The title or interest of the owner of the vehicle passes to another either:

(a) Through notice and sale under the conditions contained in any security agreement, chattel mortgage, conditional sale or other evidence of lien or under the authority given by statute in cases arising under sections 33‑1021 and 33‑1022 or under section 33‑1704.

(b) For a mobile home the lien on which is also a lien on real property, through a contract for conveyance of real property, deed of trust or mortgage.

2. Satisfactory evidence is presented to the director that the sale of the vehicle was fairly and lawfully conducted in conformity with all requirements of law after due notice to the former owner. In cases arising under section 33‑1704, a declaration that is signed by both the seller and the buyer and that sets forth compliance with section 33‑1704 constitutes satisfactory evidence, and the director may rely on that declaration.

E. Any administrator, executor, trustee or other representative of the owner, a peace officer or a person repossessing a vehicle under the terms of any conditional sales contract, lease, chattel mortgage or other security agreement or a purchaser at a sale foreclosing a lien, or the assignee or legal representative of any such person, may operate a vehicle from the place of repossession or place where it was formerly kept to a garage or place of storage in the county or state where the contract was recorded or where the person repossessing the vehicle resides or to any other garage or place of storage that is not more than seventy‑five miles from the place of repossession or place where the vehicle was formerly kept by the owner if either of the following conditions exists:

1. The license plates assigned to the vehicle are displayed on the vehicle.

2. If license plates are not displayed, a written permit has been obtained from the department or the local authorities having jurisdiction over the highways and a placard that bears the name and address of the person authorizing the movement and that is legible from a distance of one hundred feet during daylight is displayed in plain sight on the vehicle.

F. If ownership of a motor vehicle titled in this state or another state reverts through operation of state law to a lienholder of record through repossession pursuant to the terms of a security agreement or through another similar instrument that is valid in such state, an affidavit by the lienholder of record stating that the vehicle was repossessed on default of the terms stated in the security agreement or similar instrument is proof of ownership, right of possession and right of transfer. If the lienholder of record is a financial institution as defined in section 28-4301, the lienholder of record shall electronically submit the repossession affidavit to the department. The director shall prescribe the form and content of the affidavit. This state and its agencies, employees and agents are not liable for relying in good faith on the content of the affidavit. END_STATUTE

Sec. 5. Section 28-2239, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2239. Temporary proportional registrations; fee

A. The department may sell temporary proportional registrations to motor carriers that are registering under this article. Motor carriers may use temporary proportional registrations for vehicles that are added to an existing fleet or in lieu of lost registrations pending receipt of permanent or replacement registrations.

B. The cost of a temporary proportional registration is one dollar, and the registration is valid for ninety sixty days. END_STATUTE

Sec. 6. Section 28-2267, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2267. Temporary registrations; fee

A. The department may sell temporary registrations to motor carriers with existing fleets that are registered under this article. Temporary registrations may be used for vehicles that are added to an existing fleet or in lieu of lost registrations pending the receipt of permanent or replacement registrations.

B. The temporary registration fee is one dollar. The temporary registration is valid for ninety sixty days. END_STATUTE

Sec. 7. Section 28-3312, Arizona Revised Statutes, is amended to read:

START_STATUTE28-3312. Mandatory disqualification of commercial driver licenses; definition

A. The department shall disqualify a person required to have a commercial driver license or a commercial driver license holder from driving a commercial motor vehicle as follows:

1. Except as provided in subsection E of this section and except as otherwise provided in this subsection, for at least one year if a person:

(a) Refuses a test in violation of section 28‑1321.

(b) Is convicted of a first violation of any of the following:

(i) Driving a commercial motor vehicle under the influence of intoxicating liquor or a controlled substance or while having an alcohol concentration of 0.04 or more.

(ii) Leaving the scene of an accident involving a motor vehicle driven by the person.

(iii) Using a motor vehicle in the commission of a felony.

(iv) A violation of chapter 4, article 3 of this title while operating a noncommercial motor vehicle.

(v) Driving a commercial motor vehicle while, as a result of prior violations of this title committed while operating a commercial motor vehicle, the person's commercial driver license is revoked, suspended or canceled or the person is disqualified from operating a commercial motor vehicle.

(vi) Causing a fatality through the negligent operation of a commercial motor vehicle, including a conviction of manslaughter, homicide or negligent homicide resulting from operation of a motor vehicle.

2. For at least three years, if the person is convicted of any of the violations prescribed in paragraph 1 of this subsection and the violation occurred while the person was transporting a hazardous material in the quantity and under the circumstances that require placarding of the transport vehicle under the department's safety rules pursuant to chapter 14 of this title.

3. For the life of the person, if the person is convicted of two or more violations of any of the offenses prescribed in paragraph 1 of this subsection or of any combination of those offenses arising from two or more separate incidents. The department shall consider only offenses committed from and after December 31, 1989 in applying this paragraph.

4. Permanently if the person is convicted of using any motor vehicle in the commission of a felony involving the manufacture, distribution or dispensing of a controlled substance or possession with intent to manufacture, distribute or dispense a controlled substance.

5. For at least sixty consecutive days, if the person is convicted of two serious traffic violations committed in a motor vehicle arising from separate incidents occurring within a three year period from the date of the violation.

6. For at least one hundred twenty days served in addition to any other disqualification, if the person is convicted of a third or subsequent serious traffic violation committed in a motor vehicle arising from separate incidents occurring within a three‑year period from the date of the violation.

B. Except as provided in subsection C of this section, a person required to have a commercial driver license or a commercial driver license holder who is found responsible for violating an out‑of‑service order pursuant to section 28‑5241 is disqualified from driving a commercial motor vehicle as follows:

1. For a period of one hundred eighty days if the person is found responsible for a first violation of an out‑of‑service order.

2. For a period of two years if the person is found responsible for a second violation of any out‑of‑service order during any ten‑year period arising from separate incidents.

3. For a period of three years if the person is found responsible for a third or subsequent violation of any out‑of‑service order during any ten‑year period arising from separate incidents.

C. A person required to have a commercial driver license or a commercial driver license holder who is found responsible for violating an out‑of‑service order pursuant to section 28‑5241 while transporting hazardous materials or while operating a commercial motor vehicle designed or used to transport sixteen or more passengers, including the driver, is disqualified from driving a commercial motor vehicle as follows:

1. For a period of one hundred eighty days if the person is found responsible for a first violation of an out‑of‑service order.

2. For a period of three years if the person is found responsible for a second or subsequent violation of any out‑of‑service order during any ten‑year period arising from separate incidents.

D. A person required to have a commercial driver license or a commercial driver license holder who is convicted of or found responsible for violating any federal, state or local railroad grade crossing law, ordinance or regulation is disqualified from driving a commercial motor vehicle as follows:

1. For a period of sixty days if a person is convicted of or found responsible for a first violation.

2. For a period of one hundred twenty days if a person is convicted of or found responsible for a second violation during any three‑year period.

3. For a period of one year if a person is convicted of or found responsible for a third or subsequent violation during any three‑year period.

E. If a federal agency determines that a commercial motor vehicle licensee is driving in a manner that constitutes an imminent hazard, the department, on receipt of notification by the federal government, shall disqualify the driver for a period not to exceed one year. The disqualification shall run concurrently with any other disqualification imposed on the driver. For the purposes of this subsection, "imminent hazard" means the existence of a condition that presents a substantial likelihood that death, serious illness, severe personal injury or a substantial endangerment to health, property or the environment may occur before the reasonably foreseeable completion date of a formal proceeding to decrease the risk of death, illness, injury or endangerment.

F. The department shall keep records of findings of responsibility for a civil traffic violation and of conviction of any moving criminal traffic violation for a commercial driver licensee for violations in any type of motor vehicle and for a person required to have a commercial driver license if the violations arise from the operation of a commercial motor vehicle. The department shall make the records available to other states, the United States secretary of transportation, the driver and any motor carrier or prospective motor carrier or the motor carrier's designated agent within ten days after receiving a report of a conviction or finding of responsibility in this state or receipt of a report of a conviction or finding of responsibility or disqualification received from another state.

G. Disqualification for a serious traffic violation committed by a commercial driver license holder while operating a noncommercial motor vehicle applies only if the conviction results in the revocation, cancellation or suspension of the person's commercial driver license or noncommercial driver license.

H. The department may adopt rules establishing guidelines and conditions under which the department may reduce a disqualification for life pursuant to subsection A, paragraph 3 of this section to a disqualification of at least ten years. If a person's disqualification is reduced pursuant to rules adopted pursuant to this subsection and the person is subsequently convicted of a violation described in subsection A, paragraph 1 of this section, the person is permanently disqualified from driving a commercial vehicle and is not eligible to apply for a reduction of the disqualification pursuant to rules adopted pursuant to this subsection.

I. Except as provided in subsection E of this section, the beginning date of the disqualification shall be ten days after the date the department receives the report of conviction or finding of responsibility.

J. For the purposes of this section, "serious traffic violation" means a conviction or finding of responsibility for any of the following:

1. Excessive speeding involving a single offense for a speed of fifteen miles per hour or more above the posted speed limit.

2. Reckless driving as provided by section 28‑693.

3. Aggressive driving as provided by section 28‑695.

4. Racing as defined in section 28‑708.

5. Improper or erratic traffic lane changes as provided by section 28‑729.

6. Following the vehicle ahead too closely as provided by section 28‑730.

7. A violation of this title that is connected with a fatal traffic accident.

8. Driving a commercial motor vehicle if the person has not been issued a valid commercial driver license pursuant to this chapter.

9. Driving a commercial motor vehicle without a commercial driver license in the person's possession.

10. Driving a commercial motor vehicle without having a valid endorsement for the type of commercial motor vehicle or motor vehicle combination being operated. END_STATUTE

Sec. 8. Section 28-4409, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4409. Evidence of ownership requirement; exception

A. Except as provided in section 28‑4410:

1. Each dealer in motor vehicles, trailers and semitrailers, including manufacturers who sell to other than dealers, having possession or offering for sale of a motor vehicle, trailer or semitrailer shall have at the same time either:

(a) Possession of a duly and regularly assigned certificate of title to the vehicle.

(b) Reasonable indicia of ownership or right of possession as provided in section 28‑4410 approved by the director.

2. A dealer or manufacturer shall not offer for sale or sell a motor vehicle, trailer or semitrailer until the dealer or manufacturer has obtained a certificate of title to the motor vehicle, trailer or semitrailer, except that a certificate of title is not required for a new motor vehicle sold by manufacturers to dealers.

B. A wholesale motor vehicle auction dealer is exempt from the requirement of having to possess a duly and regularly assigned certificate of title and from other requirements relating to the reassignment of title documents and disclosures to buyers. A wholesale motor vehicle auction dealer may buy or sell a motor vehicle at wholesale in the wholesale motor vehicle auction dealer's own name if the wholesale motor vehicle auction dealer complies with the provisions of this title relating to certificates of title, reassignments of title documents and disclosures to buyers.

C. A wholesale motor vehicle dealer must title in the name of the wholesale motor vehicle dealer any vehicle that the wholesale motor vehicle dealer acquires before the wholesale motor vehicle dealer transfers the vehicle to another licensed motor vehicle dealer.

Sec. 9. Section 28-6351, Arizona Revised Statutes, is amended to read:

START_STATUTE28-6351. Definitions

In this article, unless the context otherwise requires:

1. "Controlled access highway" has the same meaning prescribed in section 28‑601.

2. "Enhancement" means an addition that exceeds generally accepted engineering or design standards for the specific type of facility.

3. "Regional planning agency" means the regional planning agency that has oversight responsibilities of regional transportation pursuant to this chapter in a county with a population of one million two hundred thousand or more persons and that has levied a transportation excise tax pursuant to section 42-6105.

3. 4. "Regional transportation plan" means the twenty year comprehensive, performance based, multimodal and coordinated regional transportation plan approved for the county pursuant to section 28‑6308, as amended or otherwise modified. END_STATUTE

Sec. 10. Section 28-6357, Arizona Revised Statutes, is amended to read:

START_STATUTE28-6357. Special assistant for the regional transportation plan

A. The director A regional planning agency shall appoint a special assistant for the regional transportation plan to provide coordination among the department of transportation, the regional planning agency and the local entities that are members of the regional planning agency on the regional transportation plan.

B. The duties of the special assistant for the regional transportation plan include:

1. Life cycle management for the funding and programming of the regional transportation plan, including ombudsman services and oversight of gathering, analyzing, reporting, forecasting, coordinating, monitoring and executing information and programs related to the regional transportation plan.

2. Administrative support for the activities of the citizens transportation oversight committee established pursuant to section 28‑6356. The special assistant is eligible to receive reimbursement for expenses incurred by providing administrative support for the activities of the citizens transportation oversight committee from monies distributed from the highway user revenue fund pursuant to section 28‑6538, subsection B, paragraph 1.

3. Preparation and dissemination of reports on the status and the progress of the regional transportation plan to the citizens transportation oversight committee, the governor, the speaker of the house of representatives, the president of the senate, the regional planning agency and other interested governmental agencies and citizens.

4. Coordination of public hearings of the citizens oversight committee on the regional transportation plan.

C. The special assistant for the regional transportation plan is eligible to receive compensation pursuant to section 38‑611. Notwithstanding the limitations imposed in section 28‑6305, the compensation of the special assistant shall be paid from the regional area road fund. END_STATUTE

Sec. 11. Section 28-6991, Arizona Revised Statutes, is amended to read:

28-6991. State highway fund; sources

A 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 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 stating the purposes for which the monies are surrendered by the county, 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) One dollar of each registration fee and one dollar 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, 28‑2412 through 28‑2416, 28‑2416.01, 28‑2417 through 28‑2451 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 28-7316.

Sec. 12. Title 28, chapter 20, article 11, Arizona Revised Statutes, is amended by adding section 28-7316, to read:

START_STATUTE28-7316. Assets and facilities advertising and sponsorship program; program termination; definitions

A. In addition to the urban and rural logo sign program established by section 28-7311, the department may establish a program to lease or sell advertising on nonhighway assets of the department and to allow monetary sponsorship of facilities and other assets of the department. The department may:

1. Operate, modify or terminate any advertising and sponsorship program.

2. Generate revenue from any advertising or sponsorship program.

3. Contract with a third party to perform any or all aspects of the advertising and sponsorship program authorized pursuant to this section.

B. The department on its own or through a third party may negotiate and execute leases for variable terms, set lease rates, establish lease terms and prescribe forms for leases.

C. If the department contracts with a third party, the third party shall agree in the contract to:

1. The contractor's duties, including:

(a) Furnishing, installing, maintaining and replacing the advertising and sponsorship space or media on the authorized assets and facilities of the department.

(b) Promoting and negotiating the leasing of advertising and sponsorship space or media on the authorized assets and facilities of the department.

2. Compensation.

D. Costs incurred under the program established pursuant to this section shall be paid under agreements negotiated between the department or the third party and the advertisers or sponsors.

E. The department may enter into a revenue sharing agreement with the third party. The department shall deposit, pursuant to sections 35‑146 and 35‑147, revenues generated from the advertising and sponsorship program, minus program operating costs, in the state highway fund established by section 28‑6991.

F. The program established pursuant to this section ends on July 1, 2025 pursuant to section 41-3102.

G. For the purposes of this section:

1. "Advertising" means signage or electronic media on department assets, other than highways, that display or promote commercial brands, products or services through a logo, message, slogan or other information.

2. "Assets" means buildings, transportation infrastructure, vehicles, signage, equipment, internet or other electronic media or other facilities or items of value that are owned, maintained or managed by the department.

3. "Facility" means a building, room, center or space or another location in or on an asset that is owned or controlled by the department and that the department deems suitable for sponsorship or for advertising on a nonhighway asset.

4. "Sponsorship" means the act of sponsoring an element of the department's operation of an asset through highway-related services, products or monetary contributions. END_STATUTE

Sec. 13. Section 41-2501, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2501. Applicability

A. This chapter applies only to procurements initiated after January 1, 1985 unless the parties agree to its application to procurements initiated before that date.

B. This chapter applies to every expenditure of public monies, including federal assistance monies except as otherwise specified in section 41‑2637, by this state, acting through a state governmental unit as defined in this chapter, under any contract, except that this chapter does not apply to either grants as defined in this chapter, or contracts between this state and its political subdivisions or other governments, except as provided in chapter 24 of this title and in article 10 of this chapter. This chapter also applies to the disposal of state materials. This chapter and rules adopted under this chapter do not prevent any state governmental unit or political subdivision from complying with the terms of any grant, gift, bequest or cooperative agreement.

C. All political subdivisions and other local public agencies of this state may adopt all or any part of this chapter and the rules adopted pursuant to this chapter.

D. Notwithstanding any other law, sections 41‑2517 and 41-2546 apply to any agency as defined in section 41‑1001, including the office of the governor.

E. The Arizona board of regents and the legislative and judicial branches of state government are not subject to this chapter except as prescribed in subsection F of this section.

F. The Arizona board of regents and the judicial branch shall adopt rules prescribing procurement policies and procedures for themselves and institutions under their jurisdiction. The rules must be substantially equivalent to the policies and procedures prescribed in this chapter.

G. The Arizona state lottery commission is exempt from this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets and related materials. The executive director of the Arizona state lottery commission shall adopt rules substantially equivalent to the policies and procedures in this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets or related materials. All other procurement shall be as prescribed by this chapter.

H. The Arizona health care cost containment system administration is exempt from this chapter for provider contracts pursuant to section 36‑2904, subsection A and contracts for goods and services, including program contractor contracts pursuant to title 36, chapter 29, articles 2 and 3. All other procurement, including contracts for the statewide administrator of the program pursuant to section 36‑2903, subsection B, shall be as prescribed by this chapter.

I. Arizona industries for the blind is exempt from this chapter for purchases of finished goods from members of national industries for the blind and for purchases of raw materials for use in the manufacture of products for sale pursuant to section 41‑1972. All other procurement shall be as prescribed by this chapter.

J. Arizona correctional industries is exempt from this chapter for purchases of raw materials, components and supplies that are used in the manufacture or production of goods or services for sale entered into pursuant to section 41‑1622. All other procurement shall be as prescribed by this chapter.

K. The state transportation board and the director of the department of transportation are exempt from this chapter other than section sections 41-2517 and 41‑2586 and are subject to title 28, chapter 20 and 49 Code of Federal Regulations section 18.36 for the procurement of construction or reconstruction, including engineering services, of transportation facilities or highway facilities and any other services that are directly related to land titles, appraisals, real property acquisition, relocation, property management or building facility design and construction for highway development and that are required pursuant to title 28, chapter 20. the following:

1. All items of construction, reconstruction, rehabilitation, preservation or improvement undertaken on highway infrastructure.

2. Engineering services and any other work or activity to carry out engineering services related to highway infrastructure.

3. Right-of-way services related to land titles, appraisals, real property acquisitions, relocation services, property management and facility design.

4. Any other construction, reconstruction, rehabilitation, preservation or improvement work or activity that is required pursuant to title 28, chapter 20.

L. The Arizona highways magazine is exempt from this chapter for contracts for the production, promotion, distribution and sale of the magazine and related products and for contracts for sole source creative works entered into pursuant to section 28‑7314, subsection A, paragraph 5. All other procurement shall be as prescribed by this chapter.

M. The secretary of state is exempt from this chapter for contracts entered into pursuant to section 41‑1012 to publish and sell the administrative code. All other procurement shall be as prescribed by this chapter.

N. This chapter is not applicable to contracts for professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial proceeding in which this state is or may become a party or to contract for special investigative services for law enforcement purposes.

O. The head of any state governmental unit, in relation to any contract exempted by this section from this chapter, has the same authority to adopt rules, procedures or policies as is delegated to the director pursuant to this chapter.

P. Agreements negotiated by legal counsel representing this state in settlement of litigation or threatened litigation are exempt from this chapter.

Q. This chapter is not applicable to contracts entered into by the department of economic security:

1. With a provider licensed or certified by an agency of this state to provide child day care services.

2. With area agencies on aging created pursuant to the older Americans act of 1965 (P.L. 89‑73; 79 Stat. 218; 42 United States Code sections 3001 through 3058ff).

3. For services pursuant to title 36, chapter 29, article 2.

4. With an eligible entity as defined by Public Law 105‑285, section 673(1)(a)(i) 673(1)(A)(i), as amended, for designated community services block grant program monies and any other monies given to the eligible entity that accomplishes the purpose of Public Law 105‑285, section 672.

R. The department of health services may not require that persons with whom it contracts follow this chapter for the purposes of subcontracts entered into for the provision of the following:

1. Mental health services pursuant to section 36‑189, subsection B.

2. Services for the seriously mentally ill pursuant to title 36, chapter 5, article 10.

3. Drug and alcohol services pursuant to section 36‑141.

4. Domestic violence services pursuant to title 36, chapter 30, article 1.

S. The department of health services is exempt from this chapter for contracts for services of physicians at the Arizona state hospital.

T. Contracts for goods and services approved by the board of trustees of the public safety personnel retirement system are exempt from this chapter.

U. The Arizona department of agriculture is exempt from this chapter with respect to contracts for private labor and equipment to effect cotton or cotton stubble plow‑up pursuant to rules adopted under title 3, chapter 2, article 1.

V. The Arizona state parks board is exempt from this chapter for purchases of guest supplies and items for resale such as food, linens, gift items, sundries, furniture, china, glassware and utensils for the facilities located in the Tonto natural bridge state park.

W. The Arizona state parks board is exempt from this chapter for the purchase, production, promotion, distribution and sale of publications, souvenirs and sundry items obtained and produced for resale.

X. The Arizona state schools for the deaf and the blind are exempt from this chapter for the purchase of textbooks and when purchasing products through a cooperative that is organized and operates in accordance with state law if such products are not available on a statewide contract and are related to the operation of the schools or are products for which special discounts are offered for educational institutions.

Y. Expenditures of monies in the morale, welfare and recreational fund established by section 26‑153 are exempt from this chapter.

Z. Notwithstanding section 41‑2534, the director of the state department of corrections may contract with local medical providers in counties with a population of less than four hundred thousand persons for the following purposes:

1. To acquire hospital and professional medical services for inmates who are incarcerated in state department of corrections facilities that are located in those counties.

2. To ensure the availability of emergency medical services to inmates in all counties by contracting with the closest medical facility that offers emergency treatment and stabilization.

AA. The department of environmental quality is exempt from this chapter for contracting for procurements relating to the water quality assurance revolving fund program established pursuant to title 49, chapter 2, article 5. The department shall engage in a source selection process that is similar to the procedures prescribed by this chapter. The department may contract for remedial actions with a single selection process. The exclusive remedy for disputes or claims relating to contracting pursuant to this subsection is as prescribed by article 9 of this chapter and the rules adopted pursuant to that article. All other procurement by the department shall be as prescribed by this chapter.

BB. The motor vehicle division of the department of transportation is exempt from this chapter for third‑party authorizations pursuant to title 28, chapter 13, only if all of the following conditions exist:

1. The division does not pay any public monies to an authorized third party.

2. Exclusivity is not granted to an authorized third party.

3. The director has complied with the requirements prescribed in title 28, chapter 13 in selecting an authorized third party.

CC. This section does not exempt third‑party authorizations pursuant to title 28, chapter 13 from any other applicable law.

DD. The state forester is exempt from this chapter for purchases and contracts relating to wildland fire suppression and pre‑positioning equipment resources and for other activities related to combating wildland fires and other unplanned risk activities, including fire, flood, earthquake, wind and hazardous material responses. All other procurement by the state forester shall be as prescribed by this chapter.

EE. The cotton research and protection council is exempt from this chapter for procurements.

FF. Expenditures of monies in the Arizona agricultural protection fund established by section 3‑3304 are exempt from this chapter.

GG. The Arizona commerce authority is exempt from this chapter, except article 10 for the purpose of cooperative purchases. The authority shall adopt policies, procedures and practices, in consultation with the department of administration, that are similar to and based on the policies and procedures prescribed by this chapter for the purpose of increased public confidence, fair and equitable treatment of all persons engaged in the process and fostering broad competition while accomplishing flexibility to achieve the authority's statutory requirements. The authority shall make its policies, procedures and practices available to the public. The authority may exempt specific expenditures from the policies, procedures and practices.

HH. The Arizona exposition and state fair board is exempt from this chapter for contracts for professional entertainment.

II. This chapter does not apply to the purchase of water, gas or electric utilities.

JJ. This chapter does not apply to professional certifications, professional memberships and conference registrations.

KK. The department of gaming is exempt from this chapter for problem gambling treatment services contracts with licensed behavioral health professionals.

LL. This chapter does not apply to contracts for credit reporting services.

MM. This chapter does not apply to contracts entered into by the department of child safety:

1. With a provider of family foster care pursuant to section 8‑503 or 36‑554.

2. With an eligible entity as defined by Public Law 105‑285, section 673(1)(A)(i), as amended, for designated community services block grant program monies and any other monies given to the eligible entity that accomplishes the purpose of Public Law 105‑285, section 672. END_STATUTE