Senate Engrossed

 

ADOT; state motor vehicle fleet

 

 

 

 

State of Arizona

Senate

Fifty-fifth Legislature

First Regular Session

2021

 

 

 

SENATE BILL 1460

 

 

 

AN ACT

 

amending section 28-332, Arizona Revised Statutes; repealing section 28-414, Arizona Revised Statutes; amending title 28, chapter 2, Arizona Revised Statutes, by adding article 6; amending section 28-501, Arizona Revised Statutes; repealing sections 41-803 and 41-804, Arizona Revised Statutes; amending sections 41-805, 41-1504 and 49-555, Arizona Revised Statutes; appropriating monies; relating to the state motor vehicle fleet.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-332, Arizona Revised Statutes, is amended to read:

START_STATUTE28-332. Department of transportation jurisdiction; duties

A. The exclusive control and jurisdiction over state highways, state routes, state owned state-owned airports and all state owned state-owned transportation systems or modes are vested in the department of transportation.

B. The department shall:

1. Register motor vehicles and aircraft, license drivers, collect revenues, enforce motor vehicle and aviation statutes and perform related functions.

2. Do multimodal state transportation planning, cooperate and coordinate transportation planning with local governments and establish an annually updated priority program of capital improvements for all transportation modes.

3. Design and construct transportation facilities in accordance with a priority plan and maintain and operate state highways, state owned state-owned airports and state public transportation systems.

4. Investigate new transportation systems and cooperate with and advise local governments concerning the development and operation of public transit systems.

5. Have administrative jurisdiction of transportation safety programs and implement them in accordance with applicable law.

6. Operate a state motor vehicle fleet for all motor vehicles that are owned, leased or rented by this state.

C. In order to carry out the responsibilities enumerated in subsection B of this section, the department is organized into the following divisions:

1. Motor vehicle.

2. Transportation planning.

3. Highways.

4. Aeronautics.

5. Public transit.

6. Administrative services.

D. The director may do any of the following as necessary:

1. Establish divisions in addition to those prescribed in subsection C of this section.

1. Organize the department into divisions, including motor vehicle and transportation planning.

2. Reorganize the department.

3. Consolidate the department. END_STATUTE

Sec. 2. Repeal

Section 28-414, Arizona Revised Statutes, is repealed.

Sec. 3. Title 28, chapter 2, Arizona Revised Statutes, is amended by adding article 6, to read:

ARTICLE 6. STATE MOTOR VEHICLE FLEET

START_STATUTE28-471. Definitions

In this article, unless the context otherwise requires:

1. "Agency":

(a) means a department, board, office, authority, commission or other governmental budget unit of this state.

(b) Does not include either of the following:

(i) The legislative or judicial branches of state government.

(ii) A governmental budget unit of this state that is under direct administrative control of an elected official.

2. "Fleet operation services" means any of the following services that the department provides to an agency:

(a) motor vehicles that are owned, leased or rented by this state and that the department provides for transporting state officers and employees.

(b) Fuel services for motor vehicles that are owned, leased or rented by this state.

(c) Maintenance services for motor vehicles that are owned, leased or rented by this state.

(d) Administrative services related to fleet management.

3. "New motor vehicle" means an original equipment manufactured vehicle, a converted original equipment manufactured vehicle or an original equipment manufactured vehicle that will be converted. END_STATUTE

START_STATUTE28-472. Operation of state motor vehicle fleet; coordinator; public service announcements

A. The director shall operate the state motor vehicle fleet for the purpose of providing fleet operation services to agencies. The director shall make fleet operation services available to an agency on the request of the chosen representative for that agency.

B. The director is responsible for administering the state motor vehicle fleet, including:

1. Procuring motor vehicles for the state motor vehicle fleet.

2. Notwithstanding title 41, chapter 23, article 8, the surplus and sale of motor vehicles in the state motor vehicle fleet.

C. The director shall provide for detailed cost, operation, maintenance, mileage and custody records for each state-owned motor vehicle.

D. The director may adopt rules necessary to administer this article.

E. The department shall recover all costs for fleet operation services that are provided to an agency. Each agency shall pay from available monies the cost of fleet operation services received from the department at a rate determined by the director, including a separate recapitalization rate for vehicle replacement. The director shall deposit Monies received for fleet operation services in the state motor vehicle fleet operations fund established by section 28-475. The director shall deposit monies received for the payment of the recapitalization rate in the state motor vehicle fleet recapitalization fund established by section 28-476.

F. The following agencies are excluded from participation in the state motor vehicle fleet:

1. Department of public safety.

2. Department of economic security.

3. State department of corrections.

4. Universities and community colleges.

5. Arizona state schools for the deaf and the blind.

6. Cotton research and protection council.

7. Arizona commerce authority.

8. Department of child safety.

G. The director shall appoint a state motor vehicle fleet coordinator. 

H. An agency may not purchase, lease or rent a motor vehicle unless the agency is excluded from participation in the state motor vehicle fleet by subsection f of this section.  The director may withhold registration for any motor vehicle that is purchased or leased in violation of this subsection.

I. Notwithstanding subsection H of this section, an agency that administers a subaccount pursuant to section 28-476, subsection C shall control the purchase, lease or rent of motor vehicles. Vehicles purchased, leased or rented under this subsection shall only be used by the agency for the agency's purposes.

J. An agency listed in subsection f of this section may elect to participate in the state motor vehicle fleet by executing an interagency service agreement between the agency and the department.

K. A governmental budget unit of this state that is not an agency may elect to participate in the state motor vehicle fleet by entering into an interagency service agreement with the department.

l. An agency, including an agency listed in subsection f of this section, may accept compensation for placing public service announcements on state-owned motor vehicles, and monies received shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. The agency director shall determine the appropriateness of the announcements, may exempt any vehicles that are not suitable for advertising and may contract with private parties for the design and placement of the announcements. END_STATUTE

START_STATUTE28-473. State motor vehicle fleet; neighborhood electric vehicles

A. Before each new motor vehicle purchase, the department shall consider purchasing a neighborhood electric vehicle.

B. When an agency requests a vehicle from the state motor vehicle fleet, the agency shall be assigned a neighborhood electric vehicle unless the agency demonstrates to the department that the neighborhood electric vehicle will not meet the needs of the agency because the neighborhood electric vehicle will be doing any of the following:

1. Operating on a street with a posted speed limit that exceeds thirty-five miles per hour.

2. Carrying a load that exceeds one thousand five hundred pounds.

3. Transporting more than six persons. END_STATUTE

START_STATUTE28-474. State motor vehicle fleet; energy conservation; alternative and clean burning fuels

A. The state motor vehicle fleet coordinator shall develop, implement, document, monitor and modify as necessary a statewide alternative fuels plan in consultation with all agencies that are subject to the alternative fuel and clean burning fuel requirements prescribed in this section or any other law. The coordinator's approval is required for all vehicle acquisitions pursuant to this section, except for acquisitions by community college districts.

B. Vehicles purchased for the state motor vehicle fleet shall comply with the united states environmental protection agency standards for low-emission vehicles pursuant to 40 code of federal regulations section 88.104-94 or 88.105-94.

C. The coordinator shall identify specific vehicle models within each vehicle class that would meet the demands of each agency and that demonstrate a high degree of fuel economy.

D. Subsections b and C of this section do not apply to the purchase or lease of the following:

1. A vehicle to be used primarily for criminal law enforcement.

2. A motorcycle.

3. An all-terrain vehicle.

4. An ambulance.

5. A fire truck, a fire engine or any other fire suppression apparatus.

E. An agency that is excluded from participation in the state motor vehicle fleet pursuant to section 28-472, subsection f shall develop and implement a program for alternative fuels and clean burning fuels and fuel economy for the agency's motor vehicle fleet that is substantially similar to the standards set forth in this section. The agency shall submit the program to the coordinator for review.

F. All agencies, including those listed in section 28-472, subsection f, shall comply with the plan that is developed and implemented by the coordinator pursuant to subsection a of this section.

G. The department may not register a motor vehicle that is operated by an agency listed in section 28-472, subsection f if the agency is not in compliance with this section. END_STATUTE

START_STATUTE28-475. State motor vehicle fleet operations fund; exemption

A. The state motor vehicle fleet operations fund is established consisting of monies received from agencies for the payment of costs for fleet operation services pursuant to section 28-472, from section 41-805 and from legislative appropriations.

B. The department shall administer the fund.  Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. END_STATUTE

START_STATUTE28-476. State motor vehicle fleet recapitalization fund; exemption

A. The state motor vehicle fleet recapitalization fund is established consisting of monies received from agencies for the payment of the recapitalization rate pursuant to section 28-472, proceeds from the sale of surplus motor vehicles and legislative appropriations. The department shall establish a separate subaccount in the fund for each agency.

B. The department shall administer the fund.  Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.  On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. END_STATUTE

C. Notwithstanding subsection B of this section, if an agency's subaccount includes monies that are restricted in purpose by state or federal law, the subaccount shall be administered by the agency.

Sec. 4. Section 28-501, Arizona Revised Statutes, is amended to read:

START_STATUTE28-501. Definition of division

In this article, unless the context otherwise requires, "division" means the transportation planning division established by the department under section 28-332, subsection C. END_STATUTE

Sec. 5. Repeal

Sections 41-803 and 41-804, Arizona Revised Statutes, are repealed.

Sec. 6. Section 41-805, Arizona Revised Statutes, is amended to read:

START_STATUTE41-805. Off duty peace officers; lease or rental of law enforcement equipment

A. Subject to the agreement of the director of the department of administration, the head of a state department or agency that employs peace officers who are certified by the Arizona peace officer standards and training board established by section 41-1821 may allow those peace officers to engage in off duty law enforcement work if that work does not conflict with the work performed by the certified peace officers for the state department or agency.

B. If the head of a state department or agency allows its certified peace officers to engage in off duty law enforcement work pursuant to subsection A of this section, the state department or agency may lease or rent motor vehicles and other law enforcement equipment directly to its certified peace officers for the purpose of traffic safety, traffic control or other law enforcement related activity.

C. If a state agency or department leases or rents motor vehicles pursuant to subsection B of this section, the state agency or department shall:

1. Adopt rules and policies relating to the lease or rental of motor vehicles and other law enforcement equipment that are substantially similar to the rules and policies adopted by the department of public safety.

2. Deposit, pursuant to sections 35-146 and 35-147, any monies generated from the leasing or renting of the state fleet motor vehicles in the motor vehicle pool revolving fund established by section 41-804 department of public safety administration fund.

D. The department of administration shall adopt uniform contract indemnity provisions and insurance coverage provisions naming this state and the agency that allows its certified peace officers to engage in off duty law enforcement work as additional insureds on a commercial liability policy. The coverage policy applies to all employers of certified peace officers engaging in off duty law enforcement work pursuant to this section.  The coverage policy shall hold this state harmless and indemnify this state by employers of certified peace officers engaging in off duty law enforcement work. END_STATUTE

Sec. 7. Section 41-1504, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1504. Powers and duties; e-verify requirement

A. The board of directors, on behalf of the authority, may:

1. Adopt and use a corporate seal.

2. Sue and be sued.

3. Enter into contracts as necessary to carry out the purposes and requirements of this chapter, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 and interagency service agreements as provided by section 35-148.

4. Lease real property and improvements to real property for the purposes of the authority.  Leases by the authority are exempt from chapter 4, article 7 of this title, relating to management of state properties.

5. Employ or retain legal counsel and other consultants as necessary to carry out the purposes of the authority.

6. Develop and use written policies, procedures and guidelines for the terms and conditions of employing officers and employees of the authority and may include background checks of appropriate personnel.

B. The board of directors, on behalf of the authority, shall:

1. Develop comprehensive long-range strategic economic plans for this state and submit the plans to the governor.

2. Annually update a strategic economic plan for submission to the governor.

3. Accept gifts, grants and loans and enter into contracts and other transactions with any federal or state agency, municipality, private organization or other source.

C. The authority shall:

1. Assess and collect fees for processing applications and administering incentives.  The board shall adopt the manner of computing the amount of each fee to be assessed.  Within thirty days after proposing fees for adoption, the chief executive officer shall submit a schedule of the fees for review by the joint legislative budget committee.  It is the intent of the legislature that a fee shall not exceed one percent of the amount of the incentive.

2. Determine and collect registry fees for the administration of the allocation of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Such monies collected by the authority shall be deposited, pursuant to sections 35-146 and 35-147, in an application fees fund.  Monies in the fund shall be used, subject to annual appropriation by the legislature, by the authority to administer the allocations provided in this paragraph and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations.

3. Determine and collect security deposits for the allocation, for the extension of allocations and for the difference between allocations and principal amounts of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Security deposits forfeited to the authority shall be deposited in the state general fund.

4. At the direction of the board, establish and supervise the operations of full-time or part-time offices in other states and foreign countries for the purpose of expanding direct investment and export trade opportunities for businesses and industries in this state if, based on objective research, the authority determines that the effort would be beneficial to the economy of this state.

5. Establish a program by which entrepreneurs become aware of permits, licenses or other authorizations needed to establish, expand or operate in this state.

6. Post on its website on an annual basis a report containing at least the following information:

(a) The cumulative progress made toward its goals for job creation, capital investment and higher average wages.

(b) To the extent not prohibited by law, information on each incentive application approved by the authority in the fiscal year, including the amount of the incentive approved or awarded and the applicant's activity that is projected or has been achieved, whichever is applicable, to qualify for the incentive.

(c) Rural economic development outreach and impact data.

(d) Small business outreach and impact data.

7. Develop and implement written policies and procedures relating to the administration of grants from the Arizona competes fund established by section 41-1545.01, including the following elements:

(a) Procedures for documenting grantee selection and due diligence.

(b) Procedures for verification of information submitted by grantees.

(c) Procedures for evaluating requests to amend grant terms and for documenting decisions relating to those requests.

8. Notwithstanding any other law, on request of the office of economic opportunity, disclose to the office of economic opportunity applicant information for incentives administered, in whole or in part, by the authority. Any confidentiality requirements provided by law applicable to the information disclosed pursuant to this paragraph apply to the office of economic opportunity.

D. The authority, through the chief executive officer, may:

1. Contract and incur obligations reasonably necessary or desirable within the general scope of the authority's activities and operations to enable the authority to adequately perform its duties.

2. Use monies, facilities or services to provide matching contributions under federal or other programs that further the objectives and programs of the authority.

3. Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for the conduct of programs that are consistent with the general purposes and objectives of this chapter.

4. Assess business fees for promotional services provided to businesses that export products and services from this state. The fees shall not exceed the actual costs of the services provided.

5. Establish and maintain one or more accounts in banks or other depositories, for public or private monies of the authority, from which operational activities, including payroll, vendor and grant payments, may be conducted. Individual funds that are established by law under the jurisdiction of the authority may be maintained in separate accounts in banks or other depositories, but shall not be commingled with any other monies or funds of the authority.

E. The chief executive officer shall:

1. Hire employees and prescribe the terms and conditions of their employment as necessary to carry out the purposes of the authority. The board of directors shall adopt written policies, procedures and guidelines, similar to those adopted by the department of administration, regarding officer and employee compensation, observed holidays, leave and reimbursement of travel expenses and health and accident insurance. The officers and employees of the authority are exempt from any laws regulating state employment, including:

(a) Chapter 4, articles 5 and 6 of this title, relating to state service.

(b) Title 38, chapter 4, article 1 and chapter 5, article 2, relating to state personnel compensation, leave and retirement.

(c) Title 38, chapter 4, article 2, relating to reimbursement of state employee expenses.

(d) Title 38, chapter 4, article 4, relating to health and accident insurance.

2. Maintain three full-time employees to serve as advocates for small and rural businesses on economic development and regulatory matters before cities, towns, counties or state agencies. Two of the full-time employees shall be dedicated to small business growth, support and regulation, one of whom shall serve as a small business ombudsman.  One of the full-time employees shall be dedicated to rural economic development. 

3. On a quarterly basis, provide public record data in a manner prescribed by the department of administration related to the authority's revenues and expenditures for inclusion in the comprehensive database of receipts and expenditures of state monies pursuant to section 41-725.

F. In addition to any other requirement, in order to qualify for any grant, loan, reimbursement, tax incentive or other economic development incentive pursuant to this chapter, an applicant that is an employer must register with and participate in the e-verify program in compliance with section 23-214.  The authority shall require verification of compliance with this subsection as part of any application process.

G. Notwithstanding any other law, the authority is subject to chapter 3.1, article 1 of this title, relating to risk management.

H. The authority is exempt from title 18, chapter 1, articles 1 and 2, relating to statewide information technology. The authority shall adopt policies, procedures and guidelines regarding information technology.

I. The authority is exempt from state general accounting and finance practices and rules adopted pursuant to chapter 4, article 3 of this title, but the board shall adopt written accounting practices, systems and procedures for the economic and efficient operation of the authority.

J. The authority is exempt from section 41-712, relating to the installation and maintenance of telecommunication systems.

K. The authority may lease or purchase motor vehicles for use by employees to conduct business activities. The authority is exempt from section 41-803 28-472, relating to the state motor vehicle fleet, and title 38, chapter 3, article 10, relating to vehicle usage and markings.

L. Any tangible or intangible record submitted to or compiled by the board or the authority in connection with its work, including the award of monies, is subject to title 39, chapter 1, unless an applicant shows, or the board or authority determines, that specific information meets either of the following:

1. If made public, the information would divulge the applicant's or potential applicant's trade secrets, as defined in section 44-401.

2. If made public, the information could potentially harm the applicant's, the potential applicant's or this state's competitive position relating to potential business development opportunities and strategies.

M. The authority is exempt from chapter 25, article 1 of this title, relating to government competition with private enterprise. END_STATUTE

Sec. 8. Section 49-555, Arizona Revised Statutes, is amended to read:

START_STATUTE49-555. Retrofit of diesel vehicles

Entities that are subject to the provisions of sections 9-500.04, 41-803 28-474, 49-474.01 and 49-573 shall comply with the following time schedule for retrofitting their existing diesel vehicles:

1. Twenty-five per cent percent of the diesel fleet vehicles by December 31, 1998.

2. Forty per cent percent of the diesel fleet vehicles by December 31, 1999.

3. Sixty per cent percent of the diesel fleet vehicles by December 31, 2000.

4. Eighty per cent percent of the diesel fleet vehicles by December 31, 2001.

5. One hundred per cent percent of the diesel fleet vehicles by December 31, 2002.END_STATUTE

Sec. 9. Succession; state motor vehicle fleet

A. As provided by this act, the department of transportation succeeds to the authority, powers, duties and responsibilities of the department of administration in the operation of the state motor vehicle fleet.

B. This act does not alter the effect of any actions that were taken or impair the valid obligations of the department of administration in the operation of the state motor vehicle fleet and measures in existence before the effective date of this act.

C. Administrative rules and orders that were adopted by the department of administration related to the operation of the state motor vehicle fleet continue in effect until superseded by administrative action by the department of transportation.

D. All administrative matters, contracts and judicial and quasi-judicial actions, whether completed, pending or in process, of the department of administration related to state motor vehicle fleet operation on the effective date of this act are transferred to and retain the same status with the department of transportation.

E. Notwithstanding any other law, all equipment, records, furnishings and other property, all data and all appropriated monies that remain unexpended and unencumbered on the effective date of this act of the department of administration related to the operation of the state motor vehicle fleet are transferred to the department of transportation.  The director of the department of administration shall determine and allocate the transfer, consistent with the provisions of this act.

F. All personnel who are under the state personnel system and employed by the department of administration in positions directly related to state motor vehicle fleet operations are transferred to comparable positions and pay classifications in the department of transportation on the effective date of this act.

Sec. 10. State agency vehicle transfer

All motor vehicles owned by state agencies or departments other than those listed in section 28-472, subsection F, Arizona Revised Statutes, as added by this act, shall be transferred to the department of transportation from and after June 30, 2021. This section does not apply to any vehicle purchased with monies that are restricted in use by state or federal law or legally committed to the expenditure for specified purposes.

Sec. 11. Exemption from rulemaking

For the purposes of this act, the department of transportation is exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, for one year after the effective date of this act. 

Sec. 12. Transfer of monies

A. All unexpended and unencumbered monies remaining in the motor vehicle pool consolidation fund established by section 28-414, Arizona revised statutes, as repealed by this act, are transferred to the state motor vehicle fleet recapitalization fund established by section 28-476, Arizona Revised Statutes, as added by this act.

B. All unexpended and unencumbered monies remaining in the motor vehicle pool revolving fund established by section 41-804, Arizona Revised Statutes, as repealed by this act, are transferred to the state motor vehicle fleet recapitalization fund established by section 28-476, Arizona Revised Statutes, as added by this act.

C. All unexpended and unencumbered monies remaining in the department of transportation interagency service agreement fund and interagency governmental agreement fund established pursuant to section 35-131, subsection H, Arizona Revised Statutes, and relating to motor vehicle fleet activities are transferred to the state motor vehicle fleet operations fund established by section 28-475, Arizona Revised Statutes, as added by this act.

Sec. 13. Retroactivity

This act applies retroactively to from and after June 30, 2021.