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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
affordable homeownership special plate
Purpose
Creates an Affordable Homeownership special license plate and establishes the Affordable Homeownership Special License Plate Fund (Fund).
Background
The Arizona Department of Transportation’s (ADOT) Motor Vehicle Division (MVD) provides one license plate to every motor vehicle owner for each vehicle registered (A.R.S. § 28‑2351). Vehicle license plates display both the name of the state and a number assigned to the vehicle and the owner. License plates must be clearly visible and displayed on the rear of the vehicle (A.R.S. § 28-2354).
In addition to regular Arizona vehicle license plates, MVD issues special license plates for a variety of causes and organizations. Currently, more than 50 special license plates are available to the public. Several of the plates are limited to those that meet certain qualifications.
The fee for obtaining or renewing a special license plate is $25 (A.R.S. § 28-2402). From the $25 fee, typically, $8 is an administration fee that ADOT deposits in the State Highway Fund (SHF) and $17 is considered a donation to the respective organization or charitable fund.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Creates an Affordable Homeownership special license plate if $32,000 is paid to ADOT by December 31, 2019, for its implementation.
2. Requires the entity that provides the $32,000 implementation fee to design the Affordable Homeownership special license plate, subject to ADOT approval.
3. Stipulates the first $32,000 received in the Fund be used to reimburse the entity that paid the implementation fee.
4. Specifies that, of the $25 fee required for the original Affordable Homeownership special license plate and subsequent renewals, $8 is an administration fee and $17 is an annual donation.
5. Requires ADOT to deposit all administration fees into the SHF and all annual donations into the Fund.
6. Establishes the Fund to be administered by ADOT.
7. Specifies that monies in the Fund are continuously appropriated and exempt from lapsing.
8. Stipulates that not more than 10 percent of the monies deposited in the Fund annually can be used for the cost of administering the Fund.
9. Requires the Director of ADOT (Director) to annually distribute all monies in the Fund, excluding administrative fees, to a qualified 501(c)(3) organization that provides shelter, helps to build homes and communities and supports sustainable and transformative development.
10. Requires the State Treasurer, on notice from the Director, to invest and divest monies in the Fund, of which earned monies from investment will be credited to the Fund.
11. Makes technical changes.
12. Becomes effective on the general effective date.
Prepared by Senate Research
February 11, 2019
ZD/gs