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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
army scholarship special plates
Purpose
Establishes army scholarship special plates and a subaccount in the Veterans' Donations Fund (VDF).
Background
The Arizona Department of Transportation (ADOT) Motor Vehicle Division provides one license plate to every motor vehicle owner for each vehicle registered. ADOT must issue or renew special license plates in lieu of regular license plates under specified conditions and procedures. The fee for obtaining or renewing a special license plate is $25, of which $8 is an administration fee that ADOT deposits in the State Highway Fund (SHF) and $17 is a donation to a specific organization (A.R.S. §§§ 28-2351; 28-2402 and 28-2403).
The VDF consists of monies, gifts and contributions donated to the Arizona Department of Veterans' Services (DVS) and monies deposited from various special license plate fees. The subaccounts within the VDF must aid: 1) in the construction and maintenance of the freedom memorial in Wesley Bolin Plaza; 2) Arizona women veterans; and 3) children of U.S. military members in the form of scholarships (A.R.S. § 41-608).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires ADOT to issue an army scholarship special plate if, by December 31, 2022, a person pays the $32,000 implementation fee to ADOT.
2. Requires the person who pays the $32,000 fee to design the army scholarship special plate, subject to approval by ADOT.
3. Allows the Director of ADOT (Director) to combine a request for an army scholarship special plate with a request for a personalized special plate.
4. Specifies that a combined request must be submitted on a form prescribed by the Director and is subject to the fees for both the army scholarship special plate and personalized license plate.
5. Specifies that, of the $25 fee required to obtain and renew an army scholarship special plate, $8 is an administration fee and $17 is an annual donation.
6. Requires ADOT to deposit all army scholarship special plate administration fees in the SHF and all donations collected in the subaccount in the VDF.
7. Requires the first $32,000 in the subaccount in the VDF to be reimbursed to the person who paid the initial implementation fee.
8. Establishes the subaccount in the VDF which is to be administered by the Director of the DVS.
9. Requires the Director to annually allocate monies from the subaccount in the VDF, excluding administrative fees, to a foundation that is qualified as a 501(c)(3) nonprofit organization.
10. Requires the foundation to:
a) have been in existence for at least 20 years;
b) have a mission that includes providing college scholarships to:
i. the sons and daughters of those who have served the United States honorably as soldiers in the U.S. Army; and
ii. the spouses of enlisted soldiers on active duty in the U.S. Army;
c) envision increasing its fundraising and visibility to encourage more applicants to apply for scholarships and to provide larger scholarships to an increasing number of deserving applicants to both:
i. reward army families for the sacrifices that army soldiers make every day to serve their nation;
ii. help the spouses and children of army soldiers become leaders in society; and
d) award scholarship monies to:
i. children of former U.S. Army members who were killed while serving in the U.S. Army or who received an honorable discharge or medical discharge;
ii. children of regular active duty, active duty reserve or active duty National Guard U.S. Army members in good standing; and
iii. spouses of enlisted regular active duty, active duty reserve or active duty National Guard U.S. Army members in good standing.
11. Makes conforming changes.
12. Becomes effective on the general effective date.
Prepared by Senate Research
February 10, 2022
RA/JM/sr