Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-6991, Arizona Revised Statutes, is amended to read:
28-6991. State highway fund; sources
A 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) One dollar of each registration fee and one dollar of each title fee collected pursuant to section 28‑2003.
(c) Two dollars of each late registration penalty collected by the director pursuant to section 28‑2162.
(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 28‑2462 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.
Sec. 2. Section 28-6993, Arizona Revised Statutes, is amended to read:
28-6993. 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.
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 ten million dollars.
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 28‑2462 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.
Sec. 3. Retroactivity
This act applies retroactively to from and after June 30, 2018.