ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

House: APPROP DP 7-6-0-0

HB 2901: transportation; budget reconciliation; 2021-2022.

Sponsor:  Representative Bowers, LD 25

Caucus & COW

Overview

Contains budget reconciliation provisions relating to Transportation needed for implementing the FY 2022 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2, Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate bills known as Budget Reconciliation Bills (BRBs). These BRBs are prepared according to subject area.

Provisions

Operation of the State Motor Vehicle Fleet (Sec. 3)

1.   Requires the Arizona Department of Transportation (ADOT), rather than the Arizona Department of Administration (ADOA), to operate the state motor vehicle fleet (State Fleet) for all motor vehicles that are owned, leased or rented by the state. (Sec. 1, 24)

2.   Transfers statutory requirements for the operation of the State Fleet from ADOA to ADOT. (Sec. 3, 19)

3.   Stipulates that this Act does not affect any action, administrative rule or judicial proceeding related to State Fleet operations in existence before the effective date. (Sec. 24)

4.   Transfers all property, personnel and motor vehicles of ADOA relating to State Fleet operations to ADOT on the effective date. (Sec. 24-25)

5.   Specifies that ADOT is responsible for administering the State Fleet including:

a)   Procuring motor vehicles for the State Fleet; and

b)   Administering the surplus and sale of motor vehicle in the State Fleet.

6.   Requires ADOT to recover all costs for fleet operation services that are provided to an agency.

7.   Includes a vehicle replacement rate to the cost of fleet operation services set by ADOT for the purpose of motor vehicle replacement.  

8.   Requires ADOT to deposit monies received:

a)   For fleet operation services in the State Fleet Operations Fund (Operations Fund); and

b)   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteTo pay the vehicle replacement rate in the State Vehicle Replacement Fund (Replacement Fund).

9.   Stipulates that an agency may not purchase, lease or rent a motor vehicle unless the agency is excluded from participation in the State Fleet.

10.  Allows ADOT to withhold registration for any motor vehicle that is in violation of State Fleet requirements.

11.  Allows an agency excluded from the State Fleet or a government budget unit to participate in the State Fleet by executing an interagency service agreement with ADOT.

12.  Exempts ADOT from rulemaking requirements for one year after the effective date of this Act. (Sec. 26)

13.  Defines pertinent terms.

State Fleet Operation Fund/State Vehicle Replacement Fund (Sec. 3)

14.  Establishes the Operations Fund consisting of monies received from agencies to pay the cost of fleet operation services and legislative appropriations.

15.  Establishes the Replacement Fund consisting of payments received from agencies for the vehicle replacement rate, proceeds from the sale of surplus motor vehicles and legislative appropriations.

a)   Allows ADOT to separately account for each agency that pays a vehicle replacement rate; and

b)   Requires an agency to administer the separate account if an agency's account includes monies that are restricted in purpose by state or federal law.

16.  Requires an agency that administers a subaccount for monies restricted by state or federal law to:

a)   Control the purchase, lease or rent of motor vehicles; and

b)   Only allow the vehicles to be used by the agency for the agency's purposes.

17.  Requires ADOT to administer the Operations Fund and Replacement Fund.

18.  States that monies in the Operations Fund and Replacement Fund are subject to legislative appropriation and are exempt from lapsing.

19.  Requires the State Treasurer, on notice from ADOT, to invest and divest monies in the Operations Fund and the Replacement Fund and credit monies earned from investment to each respective fund.

20.  Directs ADOT, by October 1st of each year, to submit a report that accounts for all monies deposited in the Operations Fund and the Replacement Fund, including any monies allocated to separate agency accounts, to:

a)   The Joint Legislative Budget Committee; and

b)   The Governor's Office of Strategic Planning and Budgeting.

21.  Requires the report to also include:

a)   The number of motor vehicles that were replaced in the prior fiscal year;

b)   The number of motor vehicles at each agency;

c)   The replacement life cycle for each motor vehicle; and

d)   The number of motor vehicles that ADOT identifies as not requiring replacement.

22.  Repeals the Motor Vehicle Pool Consolidation Fund and Motor Vehicle Pool Revolving Fund and transfers the balance of monies to the Replacement Fund.  (Sec. 2, 19, 27)

23.  Transfer the balance of monies in the ADOT Interagency Service Agreement Fund and Interagency Governmental Agreement Fund relating to motor vehicle fleet activities to the Operations Fund. (Sec. 27)

24.  Deposits the revenues generated from lease or rental of the State Fleet for off-duty officer work to the Department of Public Safety (DPS) Administration Fund, rather than the Motor Vehicle Pool Revolving Fund. (Sec. 20)

Safety Enforcement and Transportation Infrastructure Fund

25.  Repeals the Safety Enforcement and Transportation Infrastructure Fund (SETIF). (Sec. 16)

26.  Transfers the balance of monies in the ADOT and DPS subaccounts of the SETIF to the State Highway Fund (SHF) and the Arizona Highway Patrol Fund (HPF). (Sec. 27).

27.  Redistributes subsequent revenues to the SHF and the HPF. (Sec. 4-6, 12-15)

28.  Maintains current statutory requirements regarding the use of revenues. (Sec. 18, 22)

Mandatory Vehicle Impoundment (Sec. 8-9)

29.  Decreases the mandatory vehicle impoundment period from 30 days to 20 days.

30.  Increases the daily vehicle storage fee for a mandatory impoundment from $15 to $25.

Miscellaneous

31.  Requires a court to dismiss a violation of operating a motor vehicle without registration or a license plate if the defendant obtains the appropriate registration or license plate after the violation. (Sec. 7)

32.  Allows a person engaged in the business of renting motor vehicles without a driver to use surcharge monies collected in 2021 to reimburse the amount of vehicle license tax imposed in 2020 and 2021 on rental vehicles. (Sec. 28)

33.  Applies retroactively to July 1, 2021. (Sec. 29)

34.  Makes technical and conforming changes (Sec. 1, 5-7, 9-15, 17, 20-23)

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38.                    HB 2901

39.  Initials JT  Page 0 Caucus & COW

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