Assigned to APPROP FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
transportation; budget reconciliation; 2021-2022
Purpose
Makes statutory and session law changes relating to transportation necessary to implement the FY 2021 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1829 contains the budget reconciliation provisions for changes relating to transportation.
Provisions
State Motor Vehicle Fleet Transfer
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.
2. States that ADOT succeeds ADOA in the authority, powers, duties and responsibilities of State Fleet operations.
3. States that the transfer does not alter the effect of any actions that were taken or impair the valid obligations of ADOA related to State Fleet operations in existence before the general effective date.
4. States that administrative rules and orders related to State Fleet operations that were adopted by ADOA continue in effect until superseded by ADOT administrative action.
5. States that ADOA matters, contracts, judicial and quasi-judicial actions of ADOA related to State Fleet operations, whether completed, pending or in process on the general effective date, are transferred to and retain the same status with ADOT.
6. Transfers all of the following from ADOA to ADOT:
a) equipment, records, furnishings, property, data and appropriated monies related to the State Fleet;
b) personnel who are in positions directly related to State Motor Vehicle Fleet operations to comparable positions and pay classifications; and
c) motor vehicles owned by state agencies or departments other than those owned by excluded agencies.
7. Exempts the transfer of ownership of vehicles purchased with monies restricted in use by state or federal law or legally committed to the expenditure for specified purposes.
8. Requires the Director of ADOT (Director) to administer the procurement of motor vehicles for the State Fleet and the surplus and sale of motor vehicles in the State Fleet.
9. Requires ADOT to recover all costs associated with State Fleet operation services and requires the Director to determine the rate necessary to recover such costs, including a separate vehicle replacement rate for motor vehicle replacements.
10. Prohibits an agency from purchasing, leasing or renting a motor vehicle unless the agency is excluded from the State Fleet.
11. Allows the Director to withhold registration for any motor vehicle purchased, leased or rented by an agency included in the State Fleet.
12. Requires an agency that manages its own subaccount to control the purchase, lease or rent of motor vehicles and only use the vehicles for the agency's purposes.
13. Continues to require the State Fleet coordinator to develop and implement a statewide alternative fuels plan, and all motor vehicles purchased for the State Fleet to comply with outlined environmental and emission standards.
14. Continues to require all agencies excluded from the State Fleet to comply with fuel standards substantially similar to standards set for State Fleet vehicles and the statewide alternative fuels plan.
15. Prohibits ADOT from registering a vehicle from an excluded agency if the vehicle does not meet the outlined environmental protection standards.
16. Allows an excluded agency or a governmental budget unit that is not an agency to participate in the State Fleet by executing an interagency service agreement with ADOT.
17. Allows an agency, including excluded agencies, to accept compensation for placing public service announcements on state-owned vehicles and requires any compensation to be deposited into the state General Fund.
18. Requires an agency director to determine the appropriateness of the public service announcements and whether a vehicle is not suitable for advertising.
19. Allows an agency director to contract with private parties to design and place the public service announcements.
State Fleet Funds Management
20. Repeals the Motor Vehicle Pool Revolving Fund (Revolving Fund) and the Motor Vehicle Pool Consolidation Fund (Consolidation Fund).
21. Establishes the State Fleet Operations Fund (Operations Fund) consisting of monies received from agencies to pay the costs of fleet operations services and legislative appropriations.
22. Establishes the State Vehicle Replacement Fund (Replacement Fund) consisting of payments received for the vehicle replacement rate, proceeds from the sale of surplus vehicles and legislative appropriations.
23. Transfers, to the Replacement Fund, all unexpended and unencumbered monies remaining in the Revolving Fund and the Consolidation Fund.
24. Transfers, to the Operations Fund, all unexpended and unencumbered monies related to State Fleet activities remaining in the ADOT Interagency Service Agreement Fund and the Interagency Governmental Agreement Fund.
25. Requires the Director to deposit monies received for State Fleet operations services in the Operations Fund or Replacement Fund as appropriate.
26. Allows ADOT to separately account for each agency that pays a vehicle replacement rate.
27. Requires an agency to administer its own separate subaccount if monies in the subaccount are restricted in purpose by state or federal law.
28. Specifies that monies in both the Operations Fund and the Replacement Fund are:
a) administered by ADOT;
b) subject to legislative appropriation and exempt from lapsing; and
c) required to be invested and divested by the State Treasurer on notice from ADOT.
29. Requires ADOT, by October 1, to annually submit a report to the JLBC and the OSPB that accounts for all monies deposited in the Operations Fund and the Replacement Fund, including any monies allocated to separate agency accounts.
30. Requires the report to 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 ADOT identifies as not requiring replacement.
Impoundment Period and Storage Fee
31. Increases, from $15 to $25, the daily storage fee for an immobilized or impounded vehicle.
32. Decreases, from 30 days to 20 days, the period of time that a vehicle must remain immobilized or impounded.
33. Requires an abandoned vehicle report to be submitted to the Director of the Arizona Department of Transportation within five days after the impoundment period, rather than 30 days after a vehicle has been impounded.
Ports of Entry Improvements
34. Repeals the Safety Enforcement and Transportation Infrastructure Fund (Infrastructure Fund) and directs the following Infrastructure Fund funding sources to instead be deposited into the SHF and the Patrol Fund as specified:
a) nonresident vehicle registration fees;
b) limited registration fees;
c) single trip permit fees;
d) axle fees;
e) single trip use fuel tax permit fees;
f) single trip motor carrier fees; and
g) special 30-day motor carrier fees.
35. Allocates monies from each Infrastructure Fund funding source as follows:
a) 55 percent of monies to the State Highway Fund (SHF); and
b) 45 percent of monies to the Arizona Highway Patrol Fund (Patrol Fund).
36. Adds the following to authorized SHF uses:
c) constructing, maintaining and upgrading transportation facilities approved by the State Transportation Board (Board) within 25 miles of the Arizona-Mexico border, including roads, streets and highways;
d) constructing and maintaining transportation facilities in the CANAMEX high priority corridor as defend in federal law, and as approved by the Board;
e) ADOT activities that include collecting transportation and trade data in the United States and Mexico for the purposes of constructing transportation facilities, improving public safety, improving truck processing time and relieving congestion at ports of entry on the Arizona-Mexico border; and
37. Allows ADOT to enter into an agreement with the Arizona-Mexico Commission and provide funding to the Commission for the authorized SHF use relating to ADOT activities that include collecting transportation and trade data.
38. Adds the following to authorized Patrol Fund uses, subject to legislative appropriation:
a) the enforcement of vehicle safety requirements by ADOT and DPS within 25 miles of the Arizona-Mexico border;
b) costs related to procuring electronic equipment, automated systems or improvements to existing electronic equipment or automated systems for relieving vehicle congestion at ports of entry on the Arizona-Mexico border; and
c) a commitment or investment necessary for DPS or another agency to obtain federal monies that are designated for Patrol Fund-related expenditure.
39. Transfers all unexpended and unencumbered monies remaining in the ADOT and DPS subaccounts of the Infrastructure Fund to the SHF and the Patrol Fund as appropriate.
Rental Vehicle Surcharge
Miscellaneous
42. Requires monies generated from the lease or rent of State Fleet motor vehicles for use by off duty law enforcement to be deposited into the DPS Administration Fund, rather than the Revolving Fund.
43. Exempts ADOT from rulemaking requirements for one year after the general effective date for the purpose of adopting rules related to the State Fleet.
44. Defines terms relating to the State Fleet.
45. Makes technical and conforming changes.
46. Becomes effective on the general effective date, retroactive to July 1, 2021.
Prepared by Senate Research
May 24, 2021
ZD/gs