Assigned to APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR S.B. 1535
transportation; 2023-2024.
Purpose
Makes statutory changes relating to transportation necessary to implement the FY 2024
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. 1535 contains the budget reconciliation provisions for changes relating to
transportation.
Provisions
Prohibited Uses of Monies
1. Prohibits counties and incorporated cities and towns from spending Highway User Revenue
Fund monies for projects that reduce the capacity for motor vehicle travel.
2. Prohibits State Highway Fund monies from being spent on projects that reduce the capacity
for motor vehicle travel.
Reporting Requirements
3. Directs the Arizona Department of Transportation (ADOT), by July 31 of each year, to report
to the Joint Legislative Budget Committee (JLBC) on progress in improving Motor Vehicle
Division wait times and vehicle registration renewal by mail turnaround times.
4. Requires the report to be in a format similar to prior reports ADOT has submitted to JLBC.
5. Directs ADOT, by February 1 of each year, to report to JLBC Staff how ADOT spent the
ADOT-dedicated portion of the authorized third-party electronic service partner's fee retention
on an information technology system in the prior fiscal year.
FACT SHEET
S.B. 1535
Page 2
6. Requires the system report to include ADOT's use of the information technology system to
operate and conduct transactions with the public, including:
a) monies for stabilization, maintenance, ongoing operations, support and enhancements for
the information technology system; and
b) maintenance of legacy mainframe processing, support capability and other system projects
outside the scope of the information technology system.
7. Requires ADOT, by August 1 of each year, to report to the JLBC Director ADOT's share of
fees retained in the prior fiscal year by an authorized third-party electronic service partner that
has an authorized service website for ADOT.
8. Requires the report to include the amount spent by the authorized third-party partner on
ADOT's behalf in the prior fiscal year and a list of the projects funded with the monies.
Miscellaneous
9. Defines an authorized third-party electronic service partner as an entity that has been awarded
a written agreement with ADOT pursuant to a competitive bid process to provide electronic
transmission services and that may be authorized by the Director to develop and implement
information technology and other automated systems and to provide any necessary ongoing
support for these systems.
10. Makes conforming and technical changes.
11. Becomes effective on the general effective date.
Prepared by Senate Research
January 30, 2023
KJA/slp