COR Senate NRIPD and House TI

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ARIZONA STATE LEGISLATURE

Forty-ninth Legislature – First Regular Session

SENATE NATURAL RESOURCES, INFRASTRUCTURE AND PUBLIC DEBT AND HOUSE OF REPRESENTATIVES TRANSPORTATION AND INFRASTRUCTURE COMMITTEE OF REFERENCE FOR:

THE SUNSET HEARING OF THE ARIZONA DEPARTMENT

OF TRANSPORTATION MOTOR VEHICLE DIVISION AND

THE PERFORMANCE AUDIT OF GILA COUNTY TRANSPORTATION EXCISE TAX

Minutes of Interim Meeting

Thursday, November 5, 2009

House Hearing Room 5 – 2 p.m.

Co-Chairman Antenori called the meeting to order at 2:07 p.m. and attendance was noted by the secretary.

Members Present

Senator John Nelson, Co-Chairman	Representative Frank Antenori, Co-Chairman
Senator Sylvia Allen	Representative Sam Crump
	Representative Steve Farley
	Representative Nancy McLain
	Representative Rae Waters

Members Absent

Senator Amanda Aguirre

Senator Albert Hale

Senator Steve Pierce

Introduction of Committee of Reference

Zach Tretton, House Education Analyst, filling in for the Transportation analyst, summarized for the Committee the purpose of the Sunset review process prescribed in Arizona Statute which provides a system for the Legislature to evaluate the need to continue existing state agencies. The Motor Vehicle Division (one of six divisions of the Arizona Department of Transportation) is charged with the purpose of supporting Arizona through licensing, vehicle credentialing, revenue collection, safety programs and promoting compliance with transportation laws.

Arizona Department of Transportation Motor Vehicle Division

John Bogart, Chief of Operations, Arizona Department of Transportation (ADOT), referred to the power point presentation, 2009 Sunset Review of Arizona Department of Transportation’s Motor Vehicle Division (Attachment 1). Mr. Bogart explained that the Motor Vehicle Division (MVD) in addition to issuing driver’s licenses and title and registrations, is responsible for programs like privatizing many of the services issued through MVD, motor carrier tax services and enforcement of a variety of weight laws. In these difficult economic times MVD is cross- training employees and providing a variety of alternatives for customers to execute MVD transactions such as the email customer response system and the invoice system, which allows people to ask questions via email rather than calling in. In addition MVD has a kiosk system which allows customers to conduct business without interacting with service representatives. MVD also has email renewal notices regarding car registration. Mr. Bogart continued to review plans to streamline other MVD processes and finished by referring to three recommendations to the Sunset factors; changing the review cycle to coincide with ADOT, consideration of the fees that are currently charged by MVD and whether they cover the costs of services provided by MVD. Finally, MVD would also like to replace old systems with newer ones such as the driver’s license and tax collection systems.

Stacey Stanton, Director, Motor Vehicle Division, Department of Transportation, continued the outline (Attachment 1) giving a brief history of the MVD and its role in ADOT. She reviewed the 12 Sunset factors and offered to answer questions.

Representative McLain asked about the commercial truck safety inspections that placed 6,022 vehicles out of service. Ms. Stanton explained that trucks are placed out of service for various reasons ranging from the maximum hours being met by a driver to load distribution to actual safety issues. She responded to a second question by Representative McLain, stating that MVD has various solicitors outside their office buildings that include Voter Registration booths and animal shelter information tables. There is an application and approval process for solicitors.

Representative Crump asked about the 15 minute wait time/goal at MVD for customers. Ms. Stanton explained that was an average measure and can be much longer depending on the day, time of day, location (rural or metro) and purpose of visit. She opined that issuing a driver’s license credential should not necessarily be a speedy process. MVD is working on finding a balance. In response to a second question, Ms. Stanton stated that voter registration is not federally mandated but was introduced by the Secretary of State to encourage voter registration and participation. She continued that voter registration has existed in Arizona for at least four years but would get the exact date for Representative Crump as well as the number of voters who register annually through MVD. She stated her awareness to Representative Crump’s concern about the difficulty for new Arizona residents in complying with the law of transferring registration from out of state to Arizona registration and expressed her willingness to work with legislators. She opined that they could work together to reach a middle ground that would allow new residents an appropriate amount of time to get their homes established and their vehicles registered. Discussion ensued on the length of time of the renewal policy for driver’s licenses.

Representative McLain asked what changes are needed to bring MVD in line with ADOT’s Sunset review. Co-Chairman Antenori explained that an extension of six years would bring MVD into alignment with ADOT’s Sunset review schedule.

Co-Chairman Nelson moved that the Senate Natural Resources, Infrastructure and Public Debt Committee and the House Transportation and Infrastructure Committee recommend that the Arizona Department of Transportation Motor Vehicle Division be continued for six years. The motion carried by a voice vote.

Gila County Transportation Excise Tax

Dot Reinhard, Performance Audit Manager, Office of the Auditor General, reviewed a hard copy presentation of Gila County Transportation Excise Tax, Performance Audit Report, Report No 09-06 June 2009 (Attachment 2). She gave a brief history of the Excise Tax and stated that since the previous audit the county corrected inappropriate expenditure problems. She explained that the revenue from the Excise Tax, approximately $3 million annually, is used for projects on the 700 miles of road that are maintained by the county.

Co-Chairman Nelson asked about the guidelines for spending public money. Ms. Reinhard explained that the County Attorney investigated and came back with an opinion that the expenditures reviewed by the Auditor General’s Office from last year were considered an appropriate use of public money. She said she could supply a copy of that report for the Senator.

Steve Stratton, Director, Gila County Public Works Division, expressed that Gila County agrees with the findings by the County Attorney’s Office regarding the recent expenditure review. He continued that the Division is in the process of working with the County Attorney’s Office to implement several new policies and the Public Works Division has reconciled all funds as of July 1, 2009. He offered to answer questions.

Co-Chairman Nelson expressed satisfaction with the direction of the County.

Senator Allen opined confidence in the County’s operation of its divisions and thanked Mr. Stratton for his work to correct the problems with spending and in general for Gila County. Mr. Stratton clarified that the County does not share revenues with other municipalities; however it partners with them on certain projects. The County is presently working with the City of Globe to widen a railroad trestle.

Co-Chairman Antenori thanked Mr. Stratton for his time and testimony.

Without objection the meeting adjourned at 3:07 p.m.

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Sarah Griffith, Committee Secretary

November 18, 2009

(Original Minutes, attachments and audio on file in the Office of the Chief Clerk; video archives available at http://www.azleg.gov)

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COR SENATE NRIPD AND HOUSE T&I

November 5, 2009

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