ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session

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HB 2769: transportation funding task force

Sponsor:  Representative Andrade, LD 29

Committee on Transportation

Overview

Establishes the Transportation Funding Task Force (Task Force).

History

The Highway User Revenue Fund (HURF) consist of deposits from taxes of motor fuels and other imposed fees relating to the registration and operation of motor vehicles. This includes motor vehicle fuel taxes, use fuel taxes, vehicle license taxes (VLT), motor carrier fees and vehicle registration fees (A.R.S. § 28-6501). Pursuant to the Arizona Constitution Article 9, Section 14, HURF funds are a major source of revenues for highway obligations, the cost of construction, reconstruction, maintenance and repair of public highways and bridges and county, city and town roads and streets. After initial distributions, the Arizona Department of Transportation (ADOT) is required to allocate, and the State Treasurer is required to distribute monies in HURF as follows: 1) 50.5% to the State Highway Fund; 2) 19% to counties; 3) 27.5% to incorporated cities and towns; and 4) 3% to incorporated cities with a population of 300,000 or more persons (A.R.S. § 28-6538).

The VLT is another source of revenue for transportation purposes with monies collect distributed as follows: 45% to HURF, 24.6% to county general funds, 5.8% to counties for transportation purposes and 24.6% to incorporated cities and towns (A.R.S. § 28-5808).

A county board of supervisors can levy a real and personal property tax of not more than .25 cents per $100 of property in the county for road purposes (A.R.S. § 28-6712). If approved by the voters at a countywide election, a county may also levy and collect a transportation excise tax as follows:

1) For Maricopa County, the tax is required to be levied and collected at a rate of no more than 0.5% for a term of no more than 20 years (A.R.S. § 42-6105); or

2) For all counties except Maricopa, the tax is required to be levied and collected at a rate of no more than 1% either by itself or combined with a separate 0.5% transportation excise tax for roads for terms of no more than 20 years (A.R.S. § § 28-6106, 28-6107).

Provisions

1. Establishes the Task Force that consist of:

a) The director of ADOT or the director's designee who will serve as chairperson;

b) The following members who are appointed by the Governor:

i. One member from the Maricopa Association of Governments;

ii. One member from the Pima Association of Governments;

iii. One member from the League of Arizona Cities and Towns;

iv. One member from the County Supervisors Association of Arizona;

v. One member from a general contractor association in Arizona;

vi. One member from a transportation association that represents labor; and

vii. One member from a rural transportation association. (Sec. 1)

2. States that appointed members serve at the pleasure of the Governor. (Sec. 1)

3. States that Task Force members are not eligible to receive compensation, but members appointed by the Governor are eligible for reimbursement of expenses. (Sec. 1)

4. Requires the Task Force to:

a) Study transportation funding options for Arizona; and

b) Submit a report regarding the Task Force's activities and recommendations for administrative and legislative action to the Governor, the President of the Senate, the Speaker of the House of Representatives and the Secretary of State by December 15, 2021. (Sec. 1)

5. Sunsets the Task Force on October 1, 2022. (Sec. 1)

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9.                   HB 2769

10. Initials JT  Page 0 Transportation

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