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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
transportation; 2022-2023.
Purpose
Makes statutory and session law changes relating to transportation necessary to implement the FY 2023 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1739 contains the budget reconciliation provisions for changes relating to transportation.
Provisions
Fleet Management
1. Allows the Supreme Court to lease or purchase motor vehicles for use by court personnel in conducting business activities in furtherance of the Supreme Court’s administrative supervision over all Arizona courts, including the provision of adult and juvenile probation services.
2. Exempts the Supreme Court from requirements relating to fleet vehicle markings.
3. Requires the Supreme Court to recover all costs for fleet operation services.
4. Requires the Supreme Court to pay, from available monies, the cost of fleet operation services and replacements at a rate determined by the Director of the Arizona Department of Transportation (ADOT), including a separate vehicle replacement rate for motor vehicle replacements.
5. Requires the Supreme Court to deposit monies received for fleet operation services and vehicle replacement in the State Court Fleet Operations and Replacement (SCFOR) Fund.
SCFOR Fund
6. Establishes the SCFOR Fund consisting of:
a) the proceeds from sales of the Supreme Court’s surplus motor vehicles;
b) monies received for fleet operation services and vehicle replacement; and
c) legislative appropriations.
7. Specifies that the SCFOR Fund is a special state fund.
8. Requires the Supreme Court to administer the SCFOR Fund.
9. Specifies that monies in the SCFOR Fund:
a) do not revert to the state General Fund;
b) are continuously appropriated; and
c) are exempt from lapsing.
Arizona Game and Fish Department (AZGFD) Fleet Vehicle Replacement Fund
10. Establishes the AZGFD Fleet Vehicle Replacement Fund consisting of revenues received from the fees charged to AZGFD for having vehicles in the State Motor Vehicle Fleet.
11. Specifies that the purpose of the AZGFD Fleet Vehicle Replacement Fund is to acquire and replace AZGFD vehicles and equipment.
12. Requires AZGFD to administer the AZGFD Fleet Vehicle Replacement Fund.
13. Specifies that monies in the AZGFD Fleet Vehicle Replacement Fund are continuously appropriated.
AZGFD Fleet Operations Fund
14. Establishes the AZGFD Fleet Operations Fund consisting of revenues received from the fees charged to AZGFD for having vehicles in the State Motor Vehicle Fleet.
15. Specifies that the purpose of the AZGFD Fleet Operations Fund is to maintain and operate the State Motor Vehicle Fleet.
16. Requires AZGFD to administer the AZGFD Fleet Operations Fund.
17. Specifies that monies in the AZGFD Fleet Operations Fund are continuously appropriated.
State Match Advantage for Rural Transportation (SMART) Fund
18. Establishes the SMART Fund consisting of:
a) monies appropriated by the Legislature; and
b) any nonfederal gifts, grants, donations or other amounts received from any public or private source for transportation projects.
19. Requires ADOT to administer the SMART Fund.
20. Specifies that monies in the SMART Fund are continuously appropriated.
21. Requires the State Treasurer, on notice from ADOT, to invest and divest monies in the SMART Fund.
22. Requires monies earned from investment be credited to the SMART Fund.
23. Allows ADOT to establish any subaccount in the SMART Fund that ADOT determines is necessary to carry out the outlined purposes.
24. Prohibits the State Transportation Board from approving any expenditures from the SMART Fund unless the expenditure is made in accordance with outlined requirements.
25. Requires monies in the SMART Fund to be used only:
a) to reimburse up to 50 percent of the costs associated with developing and submitting an application for a federal grant;
b) as a match for a federal grant; or
c) to reimburse design and other engineering services expenditures that meet federal standards for projects eligible for a federal grant.
26. Requires monies in the SMART Fund to be allocated for outlined purposes as follows:
a) 20 percent to counties with a population of 100,000 persons or more;
b) 20 percent to counties with a population of fewer than 100,000 persons;
c) 20 percent to municipalities with a population of 10,000 persons or more;
d) 20 percent to municipalities with a population of fewer than 10,000 persons; and
e) 20 percent to ADOT.
27. Excludes, from SMART Fund eligibility:
a) a county with a population of more than 1,000,000 persons; and
b) a municipality entirely located in an urbanized area of a county with a population of more than 1,000,000 persons.
28. Prohibits ADOT from using SMART Fund monies for projects that are located in an urbanized area of a county with a population of more than 1,000,000 persons.
29. Requires a political subdivision to:
a) submit a SMART Fund application (application) to ADOT to be eligible for an award from the SMART Fund; and
b) first obtain the approval of the applicable metropolitan planning organization or council of governments before submitting an application to ADOT.
30. Allows ADOT to establish an application deadline for each federal grant match.
31. Requires ADOT, on receipt of an application, to determine if the requirements of the notice of funding opportunity are met and if the approval required is granted.
32. Requires ADOT to forward the application to the Departmental Committee for a recommendation, if ADOT determines that the application meets the requirements and is complete.
33. Requires ADOT, if a recommendation is made, to notify the Chairperson of the State Transportation Board that the application is ready for consideration and action by the State Transportation Board.
34. Requires the Chairperson of the State Transportation Board to place the application on an agenda for action within 45 days after original receipt of the notification.
35. Allows the State Transportation Board to give preference to SMART Fund applicants (applicants) that can demonstrate either or both:
a) the percentage of matching monies provided by the applicant; and
b) the extent that the applicant will partner with other entities to deliver the project.
36. Allows the State Transportation Board to approve, deny, modify or request more information on the application.
37. Requires ADOT, upon approval of an award by the State Transportation Board, to execute an intergovernmental agreement with the applicant regarding reimbursement and expenditures.
38. Requires the State Transportation Board, on ADOT’s request, to approve the use of allocated monies.
39. Allows ADOT to use up to one percent of the monies allocated to administer the fund.
40. Requires an applicant that receives an award but is not able to secure the federal grant to notify ADOT within 15 days after receiving notice that the applicant has not secured the federal grant.
41. Requires ADOT, after receiving the applicant’s notice, to make the award monies available for other applications.
Miscellaneous
42. Excludes ADOT from participating in the State Motor Vehicle Fleet.
43. Requires the Departmental Committee to review and make recommendations to the State Transportation Board for applications.
44. Renames the Transportation Department Equipment Fund as the Transportation Department Fleet Operations Fund.
45. Defines terms.
46. Makes technical and conforming changes.
47. Becomes effective on the general effective date, retroactive to June 30, 2021.
Prepared by Senate Research
June 20, 2022
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