Assigned to TAT                                                                                                                     FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Sixth Legislature, First Regular Session

 

FACT SHEET FOR s.b. 1123

 

towing companies; abandoned vehicles; fee

Purpose

Sets fee amounts for abandoned vehicle fees and towing reimbursements, restructures fee distributions and restricts reimbursements to towing vehicles abandoned on national forest, state park, U.S. Bureau of Land Management (U.S. BLM) or state trust land.

Background

Vehicles that are abandoned on public land or private property, on or within the
right-of-way of a public street or highway or on state trust land located within the boundaries of an incorporated city or town (private or local land) are subject to a $500 fee, as prescribed by the Director of the Arizona Department of Transportation (ADOT). Vehicles that are abandoned on national forest, state park, U.S. BLM or state trust land located outside the boundaries of an incorporated city or town or outside the right-of-way of a street or highway located outside the boundaries of an incorporated city or town (state or federal land) are subject to a $600 fee, as prescribed by the Director of ADOT (Director) (
A.R.S. § 28-4802).

The Director collects abandoned vehicle fees for deposit in the Abandoned Vehicle Administration Fund (Fund), except that 20 percent of collected fees are initially deposited in the Fund for towing reimbursements, then 90 percent of fees for a vehicle abandoned on private or local land and 60 percent of fees for a vehicle abandoned on state or federal land are deposited in the State Highway Fund (SHF).

If ADOT collects a fee for an abandoned vehicle that is towed by a towing company, the towing company is entitled to 20 percent of the fee collected as partial reimbursement of costs incurred by the towing company. To qualify for reimbursement, a towing company must register with the State Procurement Office, still be in business and respond to ADOT's attempt at contact within 30 days. Forfeited reimbursements revert to the Fund (A.R.S. §§ 28-4805 and 28-4806).

               There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Sets the abandoned vehicle fee at $50, rather than an amount prescribed by the Director, for a vehicle that was abandoned on private or local land.

2.   Sets the abandoned vehicle fee at $150, rather than an amount prescribed by the Director, for a vehicle that was abandoned on state or federal land.

3.   Terminates the Fund and Fund distributions.

4.   Requires ADOT to deposit collected abandoned vehicle fees in the SHF.

5.   Requires a towing company, to qualify for reimbursement, to tow an abandoned vehicle off of national forest, state park, U.S. BLM or state trust land.

6.   Entitles a towing company to a $100 reimbursement from the collected abandoned vehicle fee, rather than a 20 percent reimbursement of the fee.

7.   Reverts forfeited towing reimbursements to the Director for deposit in the SHF, rather than to the Fund.

8.   Removes the requirement that the Director establish a monthly payment system to reimburse towing companies entitled to partial reimbursement.

9.   Makes technical and conforming changes.

10.  Becomes effective on the general effective date.

Prepared by Senate Research

February 2, 2023

KJA/sr