Arizona 2024 2024 Regular Session

Arizona Senate Bill SB1168 Comm Sub / Analysis

Filed 03/20/2024

                      	SB 1168 
Initials JB 	Page 1 Transportation & Infrastructure 
 
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 
 
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)    
 
    	SB 1168 
Initials JB 	Page 2 Transportation & Infrastructure 
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)  
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note