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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
HOV
lanes; degradation; technical correction
(NOW: ADOT; reimbursement)
Purpose
Eliminates the Abandoned Vehicle Administration Fund (Fund), diverts Fund monies to the State Highway Fund (SHF) and removes the partial reimbursement for a company that tows an abandoned vehicle, as prescribed.
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 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. Bureau
of Land Management 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 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 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 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 collected fee as partial reimbursement of costs incurred by the company. To qualify for reimbursement, a towing company must register with the State Procurement Office 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).
The Joint Legislative Budget Committee fiscal note estimates that S.B. 1168 would eliminate the Fund and $1.3 million in annual towing reimbursements, resulting in a transfer of about $0.5 million from the Fund to the SHF and a positive fiscal impact of $1.2 million to the state General Fund and $0.1 million to the SHF beginning in FY 2025 (JLBC fiscal note).
Provisions
1. Eliminates the reimbursement for a towing company that tows an abandoned vehicle subject to an abandoned vehicle fee.
2. Terminates the Fund and Fund distributions.
3. Transfers all unexpended and unencumbered monies remaining in the Fund to the SHF.
4. Requires ADOT to deposit all abandoned vehicle fee collections in the SHF, rather than the Fund.
5. Repeals statutes relating to towing company reimbursements, including:
a) registration requirements for participating towing companies;
b) notification requirements and payment forfeiture;
c) the distribution of Fund monies; and
d) a monthly payment system.
6. Makes technical and conforming changes.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Adopted the strike-everything amendment.
Senate Action
TTMC 2/5/24 DPA/SE 6-1-0
Prepared by Senate Research
February 27, 2024
KJA/slp