FOR THIRD READ                                                                                                      AS PASSED BY HOUSE

ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

FACT SHEET FOR H.B. 2974

transportation; FY2026

Purpose

Makes statutory changes relating to transportation necessary to implement the FY 2026 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.

H.B. 2974 contains the budget reconciliation provisions for changes relating to transportation.

Provisions

1. Requires, by July 31 of each year, the Arizona Department of Transportation (ADOT) to report to the Joint Legislative Budget Committee (JLBC) on the progress in improving Motor Vehicle Division wait times and vehicle registration renewal by mail turnaround times.

2. Stipulates that the report must be in a format that is similar to reports that ADOT has submitted to JLBC before the effective date of this legislation.

3. Becomes effective on the general effective date.

House Action

APPROP         6/24/25      DP     11-6-0-2

3^rd Read          6/25/25                 31-25-4

Prepared by Senate Research

June 25, 2025

KJA/NRG/slp