Arizona 2022 2022 Regular Session

Arizona House Bill HB2481 Comm Sub / Analysis

Filed 03/10/2022

                    Assigned to TAT 	FOR COMMITTEE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Fifth Legislature, Second Regular Session 
 
FACT SHEET FOR H.B. 2481 
 
ADOT; licenses; registration; VLT; aviation 
Purpose 
Modifies driver license application requirements, immobilization or impoundment of 
vehicles and aircraft registration and vehicle license tax (VLT) schedules. 
Background 
The Arizona Department of Transportation (ADOT) has exclusive control and jurisdiction 
over state highways, state routes, state-owned airports and all state-owned transportation system 
and modes. ADOT must register motor vehicles and aircraft, license drivers, collect revenues, 
enforce motor vehicle and aviation statutes and perform related functions (A.R.S. § 28-332). 
A driver license application is valid until the applicant's 65th birthday and is renewable for 
successive periods of five years thereafter. To obtain a class A, B or C license, payment of the 
application fee entitles the commercial learner's (CDL) permit applicant to three attempts to pass 
the written examination or road test within 12 months of the date of application. A CDL permittee 
may drive a motor vehicle requiring a class A, B or C license on public highways for six months 
from the date of CDL permit issuance if prescribed conditions are met (A.R.S. §§ 28-3158;  
28-3171; and 28-3225). 
After conducting a transportation excise tax performance audit, the Auditor General must 
report to ADOT any findings of misuse of allocated County Regional Area Road Fund (Fund) 
revenues and ADOT must require the jurisdiction to directly repay the Fund the full amount of the 
misused monies. If the jurisdiction fails to timely and fully repay the Fund, ADOT must notify the 
State Treasurer, who must withhold the noncomplying jurisdiction's revenues until the jurisdiction 
presents evidence that is satisfactory to the Auditor General (A.R.S. § 28-6392). 
Aircraft based in Arizona must be registered with ADOT by a person or governmental 
entity and renewed annually by the last day of February. Prior to aircraft registration, a VLT must 
be paid to ADOT. If an aircraft that was not previously subject to registration in Arizona becomes 
subject to registration, the VLT for that year must be reduced by one-twelfth for each full month 
of the calendar year that has expired and the owner must pay the full registration fee. The 
registration fee may not be prorated (A.R.S. §§ 28-8322 and 28-8324). 
There is no anticipated fiscal impact to the state General Fund associated with this 
legislation. 
 
  FACT SHEET 
H.B. 2481 
Page 2 
 
 
Provisions 
Driver License Application 
1. Removes the entitlement of a class A, B or C license applicant who has paid the required fee 
to up to three attempts to pass the written examination or road test within 12 months from the 
application date.  
2. Deems a driver's license is: 
a) valid until the applicant's 65
th
 birthday; or 
b) renewable for successive periods of five years after the applicant's 60
th
, rather than 65
th
 
birthday. 
3. Removes the requirement for ADOT to issue, to an applicant who is at least 64 years old and 
applies within six months of the applicant's next birthday, a driver license that is valid for up 
to five years and six months, unless medical restrictions require a shorter expiration period and 
expires on the applicant's birthday.  
4. Extends, from 6 months to 12 months, the time period after the issuance of a commercial 
learner's permit for which the permittee may drive a motor vehicle requiring a class A, B or C 
license on public highways.  
Immobilization or Impoundment 
5. Removes the requirement for an immobilizing or impounding agency to release a vehicle 
before the end of the immobilization or impoundment period to the registered owner, if the 
owner was operating the vehicle at the time of removal and either immobilization or 
impoundment and presents satisfactory proof. 
6. Requires ADOT to publish, on ADOT's website for at least 30 days, rather than in a newspaper 
of general circulation in the county in which the vehicle was found or seized, the notice of 
intent to transfer ownership of abandoned vehicles, when records do not disclose the name and 
address of the owner and lienholder or other person who may have an interest in the vehicle, 
or if the notice is returned marked unclaimed or addressee unknown.  
Alternative Fuel VLT 
7. Requires the registering officer to collect the VLT on a motor vehicle that is powered by 
alternative fuel and that is initially registered, rather than purchased, beginning December 31, 
2022. 
8. Requires the minimum VLT amount collected for a motor vehicle powered by alternative fuel 
and initially registered beginning January 1, 2023, to be in accordance with, and distributed in 
the same manner as, the amount prescribed for vehicles that are not powered by alternative 
fuel.  
 
  FACT SHEET 
H.B. 2481 
Page 3 
 
 
County Regional  Area Road Fund Distribution 
9. Directs the Auditor General to report findings of a transportation excise tax performance audit 
to the State Treasurer, rather than to ADOT.  
10. Requires the State Treasurer, rather than ADOT, to require a jurisdiction to directly repay the 
Fund the full amount of misused monies, if the Auditor General reports in a transportation 
excise tax performance audit that the jurisdiction has not used allotted revenues as prescribed.  
Staggered Aircraft Registration and VLT Schedules 
11. Requires the Director of ADOT to establish a system of staggered registration on a monthly 
basis to distribute the work of registering aircraft as uniformly as practicable throughout the 
12 months of the calendar year. 
12. Requires all aircraft registrations to expire according to schedules established by the Director 
of ADOT, and allows the Director of ADOT to set the number of renewal periods within a 
month. 
13. Requires a person who registers an aircraft to renew the registration annually as prescribed by 
staggered aircraft registration schedules, rather than by the last day of February of each 
calendar year. 
14. Requires, if adoption of the staggered system results in the expiration of any registration more 
than one year after its issuance, ADOT to:  
a) charge a prorated VLT that is one-twelfth of the full annual amount for each full month of 
the registration cycle; and  
b) charge a full registration fee. 
15. Allows, in order to initiate a system of registering or reregistering aircraft during any month 
of the calendar year, the Director of ADOT to: 
a) register or reregister an aircraft for more or less than a 12-month period, up to an 18-month 
period; and  
b) prorate the VLT by one-twelfth of the full annual amount for each full month of the 
registration cycle. 
16. Requires the Director of ADOT to charge a full registration fee regardless of the length of 
registration. 
17. Requires the Director of ADOT to adopt rules for the implementation of staggered aircraft 
registration. 
18. Requires an aircraft to be registered according to the staggered aircraft registration schedule, 
if the aircraft was not previously subject to registration and becomes subject to registration.  
19. Allows the Director of ADOT or a registering officer to allow a person who owns two or more 
aircraft to register or reregister the aircraft for less than one year so that the registrations expire 
on the same date.   FACT SHEET 
H.B. 2481 
Page 4 
 
 
20. Allows, in lieu of the staggered aircraft registration requirements, a person to register a fleet 
of two or more aircraft on an annual basis so that the registrations for all aircraft in the fleet 
expire in the same month. 
21. Directs the Director of ADOT to approve the request for fleet registration if, at least 30 days 
before the registration date, the applicant provides both: 
a) an application containing information necessary for qualification as a fleet registrant; and 
b) a list of all aircraft to be included in the fleet. 
22. Requires, to establish a new fleet registration and a uniform month of expiration:  
a) ADOT to maintain the current VLT if it is necessary to calculate a prorated VLT;  
b) the VLT for that year on the aircraft to be prorated by one-twelfth of the full annual amount 
for each full month of the registration cycle; and 
c) the aircraft owner to pay the full registration fee. 
23. Requires the annual VLT for aircraft to be paid to ADOT to the staggered aircraft registration 
requirements, rather than by the last day of February. 
24. Requires an aircraft owner to file the affidavits required to qualify for the following by the last 
day of the registration cycle, rather than the last day of February: 
a) the salvage aircraft VLT; 
b) the stored or repaired aircraft VLT; 
c) the manufacturer's aircraft VLT; and  
d) the maintenance aircraft VLT. 
25. Requires, to qualify for the annual VLT for special aircraft, the aircraft owner to annually apply 
by the last day of the registration cycle, rather than the last day of February.  
26. Requires ADOT to annually determine aircraft fair market value for the registration cycle, 
rather than the calendar year.  
Miscellaneous 
27. Exempts a balloon from the requirement to register with ADOT and removes a balloon from 
the list of aircraft subject to the $20 special aircraft VLT. 
28. Defines balloon as: 
a) an aircraft that is a flexible, nonporous bag inflated with a gas that is lighter than air; or 
b) a hot air balloon. 
29. Requires a registration certificate be kept with the aircraft at all times. 
30. Removes the requirement for ADOT to issue a license decal that be displayed on the aircraft 
at all times. 
31. Makes technical and conforming changes. 
32. Becomes effective on the general effective date.   FACT SHEET 
H.B. 2481 
Page 5 
 
 
House Action 
TAT 2/9/22 DPA 11-0-0-1 
3
rd
 Read 2/23/22  59-0-1 
Prepared by Senate Research 
March 10, 2022 
RA/sr