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ARIZONA HOUSE OF REPRESENTATIVESFifty-sixth Legislature First Regular Session |
Senate: TAT DP 7-0-0-0 | APPROP DPA 10-0-0-0 | 3rd
Read 26-2-2-0
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SB
1102: appropriation; SR 303; Route 60.
NOW: transportation excise tax; Maricopa county
Sponsor: Senator Carroll, LD 28
Transmitted to the Governor
Requires Maricopa County, beginning on January 1, 2026, if approved by qualified electors voting in a county-wide election, to levy and the Arizona Department of Transportation (ADOT) to collect a transportation excise tax to be in effect for 20 years. If approved by the voters, establishes a transportation excise tax plan. Establishes a farebox recovery audit.
History
In 2004, Maricopa County voters approved a countywide transportation tax levied at a rate up to 10% of the state transaction privilege tax (one-half cent transaction tax). Revenues from the half-cent transportation tax are deposited into the Regional Area Road Fund (RARF). Laws 2003, Chapter 217 established the Regional Planning Agency Transportation Policy Committee (TPC) which is tasked with the approval of a 20-year comprehensive, performance-based, multimodal and coordinated regional transportation plan in Maricopa County. The tax will end on December 31, 2025.
The Maricopa Association of Governments (MAG) is a Council of governments that serves as the regional planning and policy agency for the metropolitan Phoenix area. Monies collected from the voter-approved transportation taxes are deposited into MAG's RARF to be used by MAG for maintenance and capital expenses of freeways and the state highway system. (A.R.S. § 42-6106).
House Bill 2685 required Maricopa County to hold a county-wide election to continue the half-cent transportation tax. The bill was passed by the Legislature and transmitted to the Governor on June 24th, 2022. The Governor vetoed House Bill 2685 on July 6th, 2022.
Provisions
County Transportation Excise Tax Election
1. Requires, if approved by the qualified electors voting at a county-wide election, Maricopa County to levy, and ADOT to collect a transportation excise tax (Excise Tax) beginning January 1, 2026. (Sec. 25)
2. Declares that the Excise Tax will be in effect for a term of 20 years. (Sec. 25)
3. Directs the Excise Tax to be levied and collected:
a) At a rate of up to 10% of the state transaction privilege tax (TPT) rate on January 1, 1990;
b) At a rate of up to 10% of the jet fuel excise tax rate; and
c) On the use or consumption of electricity or natural gas by customers in the county who are subject to use tax, at a rate equal to the state TPT rate that applies to customers engaging in the county in the utilities TPT classification. (Sec. 25)
4. States that the Plan adopted by the Regional Planning Agency will specify the distribution of the collected monies and requires the Plan to distribute the revenues as follows:
a) 40.5% to the RARF for freeways and other routes in the state highway system, including capital expense and maintenance;
b) 22.5% to the RARF for major arterial streets, intersection improvements and regional transportation infrastructure, including capital expense and implementation studies; and
c) 37% to the Public Transportation Fund for:
i. Capital costs, maintenance and operation of public transportation mode classifications; and
ii. Capital rehabilitation costs associated with the light rail system. (Sec. 25)
5. Prohibits Excise Tax revenues from being used for:
a) Any light rail, commuter rail, streetcar or trolly extension;
b) Any project that will result in a reduction in existing lane miles on a highway or state highway unless;
i. Reconfiguration for operational efficiency is necessary as determined by an ADOT-approved third-party engineering study or road safety assessment;
ii. An opportunity for public input is provided;
iii. The overall system capacity and transportation mobility will not be reduced; and
iv. The reduction will not increase vehicle congestion or travel times.
c) A project that results in a reduction in existing lane miles on a street, highway or roadway unless:
i. A third-party engineering study demonstrates that the project will not materially increase vehicle congestion or travel times;
ii. An opportunity for public input is provided; and
iii. The reduction is recommended for approval by an affirmative vote of the TPC. (Sec. 25)
6. Stipulates no more than 3.5% of Excise Tax revenues distributed to the Public Transportation Fund may be used for light rail capital rehabilitation. (Sec. 25)
7. States that no more than 5% of Excise Tax revenues may be used for regional transportation infrastructure. (Sec. 25)
8. Prohibits the specified distributions to the RARF for freeways and major arterial streets from being decreased. (Sec. 25)
9. Restricts Excise Tax revenue from being used to influence the outcome of an election. (Sec. 25)
10. Describes processes for Maricopa County to call a countywide election for the extension and levy of the Excise Tax. (Sec. 29)
12. Modifies population requirements for highly populated counties from 1,200,000 to 3,000,000 or more. (Sec. 5)
Regional Planning Agency and Transportation Infrastructure Investment Plan
13. Requires the Regional Planning Agency in Maricopa County to develop and adopt a Plan in cooperation with state and local public transportation authorities and in coordination with ADOT. (Sec. 17)
14. Defines Plan as a comprehensive, performance-based, multimodal and coordinated regional strategic transportation infrastructure investment plan approved for the county. (Sec. 15)
15. Directs the Regional Planning Agency to consider truck parking availability when considering the construction, expansion or modification of freeways or other routes in the state highway system. (Sec. 17)
16. Requires the regional planning agency to allocate at least $90,000,000 for the implementation of commercial motor vehicle parking that is consistent with the adopted truck parking plan on or before December 31, 2045. (Sec. 17)
17. Requires the Plan to allocate Excise Tax revenues in the:
a) RARF for freeways and other routes in the state highway system, including capital expense and maintenance;
b) RARF for major arterial streets, intersection improvements and regional transportation infrastructure, including capital expense and implantation studies; and
c) Public Transportation Fund for capital costs, maintenance and operation of public transportation mode classifications and capital rehabilitation costs associated with the light rail system. (Sec. 17)
18. Directs the Regional Planning Agency, beginning FY 2024, to adopt a budget process and outlines requirements for the budget process. (Sec. 17)
19. Declares that the Regional Planning Agency must coordinate with implementing partners on the budget process including ADOT for freeways and other routes in the state highway system and the Regional Public Transportation Authority in the county for the public transportation system. (Sec. 17)
20. Specifies the budget process does not apply to the annual operating budget of the Regional Public Transportation Authority in the county. (Sec. 17)
21. Requires the Regional Planning Agency to determine the use of revenues collected for capital projects through the transportation improvement program. (Sec. 17)
22. States that any bonds issued against proceeds collected through the Excise Tax require consultation with the Regional Planning Agency. (Sec. 17)
23. Directs the Regional Planning Agency to annually report on the status of the funded projects and requires the report to be posted on the agency's website. (Sec. 17)
24. Stipulates that a request for changes to transportation projects funded in the Plan that would materially increase costs must be submitted to the Regional Planning Agency for approval and then submitted by the agency to the TPC and the Board for consideration and approval. (Sec. 17)
25. Requires a local authority that requests an enhancement to a transportation project funded by the Plan to pay for all costs associated with the enhancement. (Sec. 17)
26. States that if monies are appropriated by the Legislature for a project that is identified by the Plan, the use of the monies for construction requires:
a) That the project must be advanced as appropriate to reflect the estimated construction start date; and
b) The monies are used in the same modal classification as Excise Tax revenues. (Sec. 17)
27. Allows a municipality that pays for public transportation service in an adjacent municipality or unincorporated area to be eligible for reimbursement from monies collected under the Excise Tax. (Sec. 17)
Farebox Recovery Audit
28. Requires, beginning FY 2027, the Regional Public Transportation Authority in Maricopa County to conduct in coordination with the Regional Planning Agency a farebox recovery audit (Audit) of operating costs and revenues for the previous fiscal year for all public transportation. (Sec. 17)
29. Directs the Audit to:
a) Document all revenue sources including fares and Excise Tax funding;
b) Determine a farebox recovery ratio calculated by the percentage of operating expenses paid for by fares as a measure of cost efficiency;
c) Detail the farebox recovery ratio for the entire regional public transportation system and by jurisdiction; and
d) Be presented to the Regional Public Transportation Authority Board and the TPC. (Sec. 17)
30. Requires the annual farebox recovery ratio to achieve the following percentages:
a) For FY 2027 through FY 2028, 10%;
b) For FY 2029 through FY 2031, 15%; and
c) For FY 2032 and thereafter, 20%. (Sec. 17)
31. States that if the systemwide farebox recovery ratio fails to meet the required percentage, then the Regional Public Transportation Authority must demonstrate through the Audit that monies from sources other than the Excise Tax make up the difference between the farebox recovery ratio and the required percentage. (Sec. 17)
32. Declares that if the Regional Public Transportation Authority cannot demonstrate that monies from sources other than the Excise Tax make up the difference between the farebox recovery ratio and the required percentage, then the excess cost will be allocated between the affected jurisdictions according to the proportion of service in that jurisdiction that falls below the required percentage. (Sec. 17)
33. Requires the affected jurisdictions to pay the monies from sources other than the Excise Tax to the Public Transportation Fund within two fiscal years following the Audits completion. (Sec. 17)
34. Directs the payments to be documented as part of future Audits. (Sec. 17)
35. Exempts vanpool services, ride choice and transportation service required by the Federal 'Americans with Disabilities Act of 1990' U.S.C §§ 12101-12213 from the Audit and farebox recovery ratio percentage requirements. (Sec. 17)
Transportation Policy Committee
36. Increases the number of members on the TPC from the Regional Planning Agency from 17 to 18 members. (Sec. 11)
37. Adds the following members to the TPC beginning FY 2025, all serving six-year terms:
a) Two members representing unincorporated areas of Maricopa County. One member appointed by the President of the Senate and one by the Speaker of the House of Representatives;
b) One member representing a taxpayer organization appointed jointly by the Speaker of the House of Representatives and the President of the Senate;
c) One member who represents residential housing development appointed jointly by the Speaker of the House of Representatives and the President of the Senate; and
d) One member representing resiliency interests appointed by the Governor. (Sec. 11)
38. Directs the TPC to develop the Plan in cooperation with the Regional Public Transportation Authority in the county and ADOT in consultation with the county board of supervisors, Indian communities, and cities and towns in the county. (Sec. 11)
39. Requires the TPC to recommend approval, disapproval or modification of:
a) The Plan;
b) Budget processes; and
c) Funding awarded through the regional transportation infrastructure process. (Sec. 11)
Miscellaneous
40. Prohibits this state or a city, town, county or political subdivision of this state from restricting the use or sale of a vehicle in this state if the restriction is based on the vehicle's energy source. Exempts Government-owned vehicles from this restriction. (Sec. 1)
41. Prohibits public monies from being used to extend light rail service in Phoenix to the area and any property within 50 linear yards of the area with a boundary of 17th Avenue on the east, Adams Street on the north, 18th Avenue on the west and Jefferson Street on the south. (Sec. 24)
42. Requires that the speed limit for all types of motor vehicles be at least 65 miles per hour on interstate system highways in Maricopa County unless;
a) A reduction in the speed limit for operational efficiency is necessary as determined by an ADOT-approved third-party engineering study or road safety assessment;
b) An opportunity for public input is provided; and
c) The overall system capacity and transportation mobility will not be reduced. (Sec. 3)
43. Directs ADOT to separately account for the uses of Excise Tax revenues deposited in the Bond Account and the Construction Account to identify how the revenues are used for:
a) Freeways and other routes in the state highway system; and
b) Major arterial streets, intersection improvements and regional transportation infrastructure identified in the Plan, including capital expense and implementation studies. (Sec. 6)
44. Modifies what monies in the bond account are used for. (Sec. 7)
45. Removes the requirement that the director of ADOT develops and annually updates as a component of the five-year transportation facilities construction program a plan for the use of monies expected to be deposited in the county's RARF. (Sec. 10)
46. Requires the Auditor General to every five years internally conduct a performance audit of the Plan and projects scheduled for funding during the next five years. (Sec. 13)
47. Modifies the reporting requirements for the Auditor General's audit. (Sec. 13)
48. Establishes, beginning January 1, 2026, a Regional Public Transportation Authority in Maricopa County if the County approves the county transportation excise tax. (Sec. 26)
49. Requires the five-year transportation facilities construction program to include a plan that is updated annually for the use of monies expected to be deposited in a county's RARF that is consistent with the Plan adopted by the Regional Planning Agency and consistent with the Regional Planning Agency's budget process. (Sec. 20)
50. Specifies that this act does not invalidate any action by a Regional Public Transportation Authority formed before the effective date. (Sec. 30)
51. States the Legislature intends that the development of State Route 30 between State Route 85 and Loop 303 will begin in the first phase of the Plan to allow right-of-way acquisition and construction of the facility to advance as monies become available. (Sec. 31)
52. Contains a severability clause. (Sec. 32)
53. Contains a conditional enactment clause. (Sec. 33)
54. Repeals statute. (Sec. 10, 12, 16, 18, 28)
55. Defines terms. (Sec. 4, 15, 17)
56. Makes technical changes. (Sec. 2, 4-8, 11, 13, 19, 22, 27)
57. Makes conforming changes. (Sec. 2-9, 11, 13-15, 18-19, 21-23, 27)
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SB 1102
Initials JB Page 0 Transmitted
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