ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	Senate: TTMC DPA/SE 6-1-0-0 | 3^rd Read 16-12-2-0

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SB 1168: ADOT; reimbursement

S/E: abandoned vehicle fee; cap

Sponsor: Senator Farnsworth, LD 10

Committee on Transportation & Infrastructure

Summary of the Strike-Everything Amendment to SB1168

Overview

Prohibits the abandoned vehicle fee from being more than $400 and increases the partial reimbursement towing companies receive for towing abandoned vehicles to 25% of the fee.

History

The owner of record of a vehicle that is abandoned is liable to the Arizona Department of Transportation (ADOT) for the transfer of ownership or disposal of the vehicle in an amount that is prescribed by the Director of ADOT in rule. (A.R.S. § 28-4802).

The abandoned vehicle fee for the transfer of ownership or disposal of an abandoned vehicle is $500 if the vehicle was: 1) abandoned and junked on private property or public land or on or within the right-of-way of a street or highway; 2) abandoned on private property or public land or on or within the right-of-way of a street or highway and ADOT issues a transfer of ownership; or 3) abandoned and junked and towed with the written permission of the State Land Commissioner from state trust land located within the boundaries of an incorporated city or town (A.C.C. R17-1-205).

The Abandoned Vehicle Fund (Fund) consists of monies collected from fees charged to owners of towed abandoned, seized or junk vehicles and any other monies collected relating to abandoned, seized or junk vehicles. Fund monies are deposited into the State Highway Fund except for the fund monies used to partially reimburse registered towing companies (A.R.S. § 28-4804).

Before distributing collected abandoned vehicle fees or Vehicle License Tax monies ADOT must deposit 20% of abandoned vehicle fees into the Fund. The Director of ADOT, in consultation with registered towing companies, must establish a monthly payment system to reimburse registered towing companies that are entitled to partial reimbursement. 

If a vehicle is abandoned and a fee is collected by ADOT the towing company that towed the vehicle is entitled to receive 20% of the collected fee as a partial reimbursement of the costs incurred by the towing company. The towing company is required to register with the State's Procurement Office to qualify for the partial reimbursement. (A.R.S. §§ 28-4805, 2806)  

Provisions

1. Declares that the abandoned vehicle fee may not exceed $400 for vehicles abandoned on private property, public land, within the right-of-way of a street or highway or on state trust land located within an incorporated city or town. (Sec. 1)

2. Increases:

a) the percentage of abandoned vehicle fees deposited into the Fund from 20% to 25%; and

b) the partial reimbursement towing companies receive after towing an abandoned vehicle from 20% to 25% of the abandoned vehicle fee. (Sec. 2-3)

3. Makes technical changes. (Sec. 1)

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7.                   SB 1168

8. Initials JB            Page 0 Transportation & Infrastructure

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