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