Arizona 54th Legislature - 2nd Regular Session Status: In Committee

HB 2899 — fuel; electric cars; hybrids; taxes

Last action — DPA

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 54th Legislature - 2nd Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

167 added · 362 removed

Plain-language change summary

In the latest amendment to HB 2899, a new provision was added that prohibits state and local agencies from requiring public works contracts to include a minimum wage clause based on prevailing rates for similar work. This change matters because it removes the ability for local governments to ensure contractors pay competitive wages, which could impact workers' earnings and local economies. The amendment reflects a shift in focus toward overriding local wage policies in favor of a more uniform state approach.

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HB2899 - 542R - I Ver       REFERENCE TITLE:
HB2899 - 542R - H-Transportation-Proposed   Fifty-fourth Legislature                                           Transportation Second Regular Session                                                  H.B.
fuel;
  PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
electric cars;
2899 (Reference to printed bill)       Page 6, between lines 31 and 32, insert:
hybrids;
"Sec. 6.  Section 34-321, Arizona Revised Statutes, is amended to read:
taxes         State of Arizona House of Representatives Fifty-fourth Legislature Second Regular Session       HB 2899   Introduced by Representatives Campbell:
START_STATUTE34-321.  Public policy;
Bowers, Fernandez, Friese, Pierce, Thorpe, Senators Bradley, Fann     AN ACT   amending title 3, chapter 19, article 3, Arizona Revised Statutes, by adding section 3-3438;
public works contracts;
amending title 28, chapter 2, article 1, Arizona Revised Statutes, by adding section 28-308;
prohibitions;
amending title 28, chapter 16, article 1, Arizona Revised Statutes, by adding sections 28‑5606.01 and 28‑5606.02;
definitions A.  The public interest in the rates of wages paid under public works contracts transcends local or municipal interests and is of statewide concern.
amending section 28-6533, Arizona Revised Statutes;
B.  Agencies and political subdivisions of this state shall not require, by regulation,  or ordinance or in any other manner, require public works contracts to contain a provision requiring the wages paid by the contractor or any subcontractor to be not less than the prevailing rate of wages for work of a similar nature in the state or political subdivision where the project is located.
amending title 28, chapter 18, article 2, Arizona Revised Statutes, by adding section 28-6535;
C.  Agencies and political subdivisions of this state shall not require in any public works contracts that a contractor, subcontractor, material supplier or carrier engaged in the construction, maintenance, repair or improvement of public works do any of the following enter into a neutrality agreement with any service provider as a condition of or a factor in bidding, negotiating, being awarded or performing work on a public works contract.
relating to highway user revenues.
:  1.  Negotiate, execute or otherwise become a party to any project labor agreement or other agreement with employees, employees' representatives or any labor organization.
    (TEXT OF BILL BEGINS ON NEXT PAGE)   Be it enacted by the Legislature of the State of Arizona:
2.  Enter into a neutrality agreement with any labor organization.
Section 1.  Title 3, chapter 19, article 3, Arizona Revised Statutes, is amended by adding section 3-3438, to read:
3.  Participate in or contribute to an apprenticeship program that is registered with the United States department of labor.
START_STATUTE3-3438.  Standards;
D.  Subsection C of this section does not:
retail dispensing;
1.  Prohibit private parties from entering into individual collective bargaining relationships.
natural gas A.  Within one hundred eighty days after the effective date of this section, the division shall adopt rules requiring the retail sale of compressed natural gas and liquefied natural gas that are used as a motor vehicle fuel to be dispensed in the manner prescribed in this section.
2.  Regulate or interfere with activity protected by law, including the national labor relations act.
b.  Compressed natural gas shall be dispensed either in gasoline gallon equivalent units or diesel gallon equivalent units.  A gasoline gallon equivalent of compressed natural gas shall initially be set at 5.660 pounds and shall remain at that level unless changed pursuant to rule.  A diesel gallon equivalent of compressed natural gas shall initially be set at 6.384 pounds and shall remain at that level unless changed pursuant to rule.
E.  For the purposes of this section:
C.  Liquefied natural gas shall be dispensed in diesel gallon equivalent units.  A diesel gallon equivalent of Liquefied natural gas shall initially be set at 6.059 pounds and shall remain at this level unless changed pursuant to rule.
1.  "Agency" has the same meaning prescribed in section 41‑1001.
D.  Taxes imposed on compressed natural gas and liquefied natural gas are presumed to be direct taxes on the consumer or user but shall be collected and remitted to the department of transportation by suppliers for the purpose of convenience and facility only.  Compressed natural gas and liquefied natural gas taxes that a supplier collects and pays to the department of transportation are considered to be advance payments, shall be added to the price of compressed natural gas and liquefied natural gas and shall be recovered from the consumer.
2.  "Neutrality agreement" includes an agreement to remain neutral toward any labor organization, release private employee information not required by federal labor law, allow access to property beyond what is required by federal labor law and recognize a labor organization without a secret ballot election conducted pursuant to federal labor law.
E.  The division shall establish procedures to carry out this section.  Before making necessary revisions resulting from changes in the energy contents of motor fuels, including compressed natural gas or liquefied natural gas, the division shall take into consideration whether the national institute of standards and technology prescribes standards for dispensing compressed natural gas and liquefied natural gas and whether those standards use different values for gasoline gallon equivalent and diesel gallon equivalent units or allow sales in different units.  If the national institute of standards and technology develops or adopts different standards than prescribed by subsection B of this section for gasoline gallon equivalent and diesel gallon equivalent units, the national institute of standards and technology standards shall be adopted for this state unless good cause is shown otherwise.
3.  "Political subdivision" means a city, charter city, town, county, school district, community college district, multi-county water conservation district, industrial development authority or special taxing district established pursuant to title 48 that is primarily supported by taxes.
END_STATUTE Sec. 2.  Title 28, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 28-308, to read:
4.  "Project labor agreement" means any prehire, collective bargaining, model construction or similar type of agreement entered into with one or more labor organizations, employees or employee representatives that establishes the terms and conditions of employment on a construction project.
START_STATUTE28-308.  Periodic plan and review of road use fees;
5.  4.  "Public works contract" means a contract to which this state or a political subdivision is a party involving the employment of laborers, workmen or mechanics in the construction, alteration or repair of public buildings or improvements.
potential termination of road use fees A.  The state transportation board, in consultation with county and municipal governments, and regional transportation planning agencies shall immediately develop a comprehensive plan for the use of anticipated monies in the Arizona road use account established by section 28‑6535 over the next twenty years.
END_STATUTE Sec. 7.  Section 40-360.06, Arizona Revised Statutes, is amended to read:
B.  Periodically, but not less frequently than every five years, the state transportation board, in consultation with county and city governments, and regional transportation planning agencies shall update the prior comprehensive plan for the use of anticipated monies in the Arizona road use account over the next twenty years.  The plan shall include specific proposed projects for constructing, preserving and maintaining streets, roads and highways in this state to be funded from the Arizona road use account.
START_STATUTE40-360.06.  Factors to be considered in issuing a certificate of environmental compatibility A.  The committee may approve or deny an application and may impose reasonable conditions on the issuance of a certificate of environmental compatibility.  and In so doing, the committee shall consider the following factors as a basis for its action with respect to the suitability of either plant or transmission line siting plans:
C.  The state transportation board and regional planning agencies shall submit the plan to the governor, the president of the senate and the speaker of the house of representatives and provide a copy of the plan to the secretary of state.  The president of the senate and the speaker of the house of representatives shall direct the appropriate standing committees to review the plan and conduct thorough public hearings on the plan and the proposed specific plans and projects in the plan.  D.  After review of the plan and the public hearings on the plan, the appropriate standing legislative committees may recommend the termination of all fees and other charges imposed by section 28-5606.01 or 28-5606.02 that provide monies for the Arizona road use account and the repeal of the account.
1.  Existing plans of this state, a local government and private entities for other developments at or in the vicinity of the proposed site.
END_STATUTE Sec. 3.  Title 28, chapter 16, article 1, Arizona Revised Statutes, is amended by adding sections 28-5606.01 and 28-5606.02, to read:
2.  Fish, wildlife and plant life and associated forms of life on which they are dependent.
START_STATUTE28-5606.01.  Imposition of additional motor fuel taxes;
3.  Noise emission levels and interference with communication signals.
conditional enactment A.  In addition to the taxes imposed by section 28-5606, subsection A, the following taxes shall be imposed at the rates provided in this section in the same manner as the taxes imposed by section 28-5606, subsection A:
4.  The proposed availability of the site to the public for recreational purposes, consistent with safety considerations and regulations.
1.  For motor vehicle fuel, the rate per gallon is:
5.  Existing scenic areas, historic sites and structures or archaeological sites at or in the vicinity of the proposed site.
(a)  For fiscal year 2020-2021, $.24.
6.  The total environment of the area.
(b)  For fiscal year 2021-2022, $.30.
7.  The technical practicability of achieving a proposed objective and the previous experience with equipment and methods available for achieving a proposed objective.
(c)  For fiscal year 2022-2023, $.36.
8.  The estimated cost of the facilities and site as proposed by the applicant and the estimated cost of the facilities and site as recommended by the committee, recognizing that any significant increase in costs represents a potential increase in the cost of electric energy to the customers or the applicant.
(d)  For fiscal year 2023-2024 and each year thereafter, the rate prescribed in subdivision (c) of this paragraph shall be adjusted annually to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, 2020 to December 31 of the prior year.
9.  Any additional factors that require consideration under applicable federal and state laws pertaining to any such site.
2.  For natural gas, the rate per gasoline gallon equivalent is:
B.  The committee shall give special consideration to the protection of areas that are unique because of biological wealth or because they are habitats for rare and endangered species.
(a)  For fiscal year 2020-2021, $.24.
C.  Notwithstanding any other provision of this article, the committee shall require in all certificates of environmental compatibility for facilities that the applicant comply with all applicable nuclear radiation standards and air and water pollution control standards and regulations,  but shall not require either of the following:
(b)  For fiscal year 2021-2022, $.30.
1.  Compliance with performance standards other than those established by the agency having primary jurisdiction over a particular pollution source.
(c)  For fiscal year 2022-2023, $.36.
2.  That a contractor, subcontractor, material supplier or other person that is engaged in the construction, maintenance, repair or improvement of any project subject to approval of the commission negotiate, execute or otherwise become a party to any project labor agreement, neutrality agreement as defined in section 34-321, apprenticeship program participation or contribution agreement or other agreement with employees, employees' representatives or any labor organization as a condition of or a factor in the commission's approval of the project.  This paragraph does not:
(d)  For fiscal year 2023-2024 and each year thereafter, the rate prescribed in subdivision (c) of this paragraph shall be adjusted annually to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, 2020 to December 31 of the prior year.
(a)  Prohibit private parties from entering into individual collective bargaining relationships.
3.  For propane, the rate per gallon is:
(b)  Regulate or interfere with activity that is protected by law, including the national labor relations act.
(a)  For fiscal year 2020-2021, $.18.
D.  Any certificate of environmental compatibility that is granted by the committee shall be conditioned on compliance by the applicant with all applicable ordinances, master plans and regulations of the this state, a county or an incorporated city or town, except that the committee may grant a certificate of environmental compatibility notwithstanding any such ordinance, master plan or regulation, exclusive of franchises, if the committee finds as a fact that compliance with such an ordinance, master plan or regulation is unreasonably restrictive and compliance therewith is not feasible in view of technology available.  When If it becomes apparent to the chairman of the committee or to the hearing officer that an issue exists with respect to whether such an ordinance, master plan or regulation is unreasonably restrictive and compliance therewith is not feasible in view of technology available, the chairman or hearing officer shall promptly serve notice of such that fact by certified mail on the chief executive officer of the area of jurisdiction affected and, notwithstanding any provision of this article to the contrary, shall make such that area of jurisdiction a party to the proceedings on its request and shall give it an opportunity to respond on such that issue." END_STATUTE Renumber to conform Amend title to conform     RICHARD C.
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(b)  For fiscal year 2021-2022, $.23.
ANDRADE     2899ANDRADE 02/14/2020 03:40 PM C:
(c)  For fiscal year 2022-2023, $.28.
MU    
(d)  For fiscal year 2023-2024 and each year thereafter, the rate prescribed in subdivision (c) of this paragraph shall be adjusted annually to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, 2020 to December 31 of the prior year.
4.  For electricity, the rate per kilowatt is:
(a)  For fiscal year 2020-2021, $.02.
(b)  for fiscal year 2021-2022, $.02.
(c)  For fiscal year 2022-2023, $.03.
(d)  For fiscal year 2023-2024 and each year thereafter, the rate prescribed in subdivision (c) of this paragraph shall be adjusted annually to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, 2020 to December 31 of the prior year.
B.  In addition to the taxes imposed by section 28-5606, subsection B, the following taxes shall be imposed at the rates provided in this section in the same manner as the taxes imposed by section 28-5606, subsection B:
1.  For light class motor vehicles, at the same rate and in the same manner as prescribed in subsection A of this section.
2.  For use class motor vehicles, at the following rates:
(a)  For use fuel, the rate per gallon is:
(i)  For fiscal year 2020-2021, $.32.
(ii)  For fiscal year 2021-2022, $.38.
(iii)  For fiscal year 2022-2023, $.44.
(iv)  For fiscal year 2023-2024 and each year thereafter, the rate prescribed in item (iii) of this subdivision shall be adjusted annually to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, 2020 to December 31 of the prior year.
(b)  For natural gas, the rate per diesel gallon equivalent is:
(i)  For fiscal year 2020-2021, $32.
(ii)  FOR FISCAL YEAR 2021-2022, $38.
(iii)  For fiscal year 2022-2023, $44.
(iv)  For fiscal year 2023-2024 and each year thereafter, the rate prescribed in item (iii) of this subdivision shall be adjusted annually to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, 2020 to December 31 of the prior year.
(c)  For propane, the rate per gallon is:
(i)  For fiscal year 2020-2021, $22.
(ii)  For fiscal year 2021-2022, $26.
(iii)  For fiscal year 2022-2023, $30.
(iv)  For fiscal year 2023-2024 and each year thereafter, the rate prescribed in item (iii) of this subdivision shall be adjusted to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, 2020 to December 31 of the prior year.
(d)  For electricity, the rate per kilowatt is:
(i)  For fiscal year 2020-2021, $.02.
(ii)  For fiscal year 2021-2022, $.02.
(iii)  For fiscal year 2022-2023, $.03.
(iv)  For fiscal year 2023-2024 and each year thereafter, the rate prescribed in item (iii) of this subdivision shall be adjusted to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, 2020 to December 31 of the prior year.
c.  This section is effective only if section 28‑5606.02 is repealed.END_STATUTE START_STATUTE28-5606.02.  Electric and hybrid vehicles tax In addition to all other taxes provided by law, a tax is imposed on a vehicle that accesses a street or highway and that is propelled by electricity or by a combination of electricity and any fuel that is taxed pursuant to section 28-5606 as follows:
1.  For a vehicle that is propelled only by electricity:
(a)  For fiscal year 2020-2021, $111 per year.
(b)  For fiscal year 2021-2022, $139 per year.  (c)  for fiscal year 2022-2023, $166 per year.
(d)  For fiscal year 2023-2024 and in each fiscal year thereafter, the rate provided in subdivision (c) of this paragraph shall be adjusted annually to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, 2020 to December 31 of the prior year.
2.  For a vehicle that is propelled by a combination of electricity and other fuels:
(a)  For fiscal year 2020-2021, $45 per year.
(b)  For fiscal year 2021-2022, $56 per year.  (c)  for fiscal year 2022-2023, $67 per year.
(d)  For fiscal year 2023-2024 and in each fiscal year thereafter, the rate provided in subdivision (c) of this paragraph shall be adjusted annually to reflect the change in the gross domestic product implicit price deflator reported by the United States department of commerce from January 1, to December 31 of the prior year.
END_STATUTE Sec. 4.  Section 28-6533, Arizona Revised Statutes, is amended to read:
START_STATUTE28-6533.  Arizona highway user revenue fund;
reports A.  The officer collecting all highway user revenues, as defined in section 28‑6501 and in article IX, section 14, Constitution of Arizona, and all fees, penalties and fines collected under sections 28‑1101, 28‑1103, 28‑1105 and 28‑1521 shall transfer the revenues to the department.  After the deduction of all exemptions and refunds and after taking actions required under subsection C of this section, the department shall immediately deposit, pursuant to sections 35‑146 and 35‑147, the revenues in a fund designated as the Arizona highway user revenue fund except that the revenues collected pursuant to section 28-5606.01 or 28‑5606.02 shall be DEPOSITED in the Arizona road use account established by section 28‑6535.
B.  The revenues in the Arizona highway user revenue fund shall only be spent for the purposes prescribed in article IX, section 14, Constitution of Arizona.  Counties and incorporated cities and towns shall not spend highway user revenue fund monies distributed to them pursuant to this article for enforcement of traffic laws or administration of traffic safety programs.  If the auditor general reports to the state treasurer after conducting a performance audit pursuant to section 41‑1279.03, subsection A, paragraph 7 that a jurisdiction has not used revenues as required by this subsection, the state treasurer shall withhold the noncomplying jurisdiction's revenues until the noncomplying jurisdiction presents evidence that is satisfactory to the auditor general and that shows that the jurisdiction has spent monies for purposes prescribed in this subsection from another general revenue source equal to the amount of the revenues diverted from the uses prescribed in this subsection.
C.  If there is any default, the department shall deduct all amounts required by law or any resolution authorizing the issuance of bonds of the board to be placed in the principal funds, interest funds, reserve funds or sinking funds or any other funds established to service bonds issued or to be issued by the board before the revenues are deposited in the Arizona highway user revenue fund.
D.  A county receiving monies pursuant to section 28‑6538 shall publish an annual financial report for the prior fiscal year of funds received from motor vehicle fuel and use fuel taxes.  The financial report shall contain budgeted and actual expenditures for the preceding fiscal year and shall be prepared and distributed by December 31 by the county.
END_STATUTE Sec. 5.  Title 28, chapter 18, article 2, Arizona Revised Statutes, is amended by adding section 28-6535, to read:
START_STATUTE28-6535.  Arizona road use account A.  The arizona road use account is established in the Arizona highway user revenue fund.  The department shall administer the account.  Monies in the account are CONTINUOUSLY appropriated.
B.  Monies in the account shall be derived from:
1.  Fees and other charges on fuels or any other energy source used for the propulsion of vehicles on the public streets, roads and highways in this state imposed by section 28-5606.01 or 28-5606.02.
2.  Any other monies appropriated by the legislature.  C.  Monies in the account shall be used exclusively for maintaining, preserving and constructing streets, road and highways and administering such activities.  Monies in the account may not be used for any law enforcement activities, except enforcement of vehicle weight and vehicle safety laws by the department.
D.  The department shall monthly release monies in the account to the general Arizona highway user revenue fund and these monies shall be distributed in the same manner as other monies in that fund except that monies from the Arizona road use account:
1.  May not be used for the economic strength project fund pursuant to section 28-6534 or for highway patrol costs pursuant to section 28‑6537.
2.  Shall be distributed exclusively to the department, counties and cities in the same manner as other monies in the arizona highway user revenue fund pursuant to this article.
END_STATUTE Sec. 6.  Electric and hybrid vehicles tax report;
delayed repeal A.  The department of transportation shall study the feasibility of converting from a flat tax rate for electric vehicles to a kilowatt per mile, or egallon, as defined by the United States department of energy, tax rate or equivalent.  On or before December 31, 2025, the department of transportation shall submit a report to the governor, the president of the senate and the speaker of the house of representatives and provide a copy of this report to the secretary of state.  The report shall outline the effectiveness of the electric and hybrid vehicles tax established in section 28-5606.02, Arizona Revised Statutes, as added by this act.  The department of transportation shall consult with representatives from the electric car industry, a statewide trucking association, an international registration plan, an international fuel tax agreement and other relevant stakeholders in developing the report.  The report shall include any proposed legislation that may be required to implement the recommendations of the department of transportation.
B.  This section is repealed from and after December 31, 2025.
Sec. 7.  Legislative findings The Legislature finds that:
1.  Arizona's street, road and highway maintenance, preservation and construction are significantly underfunded.  Statewide road use fees for Arizona's streets, roads and highways have not been significantly increased since the early 1980s, except for a $.01 increase in the fuel taxes in 1991.
2.  The maintenance backlog for the cities, towns and counties and state highway system deficit is tens of billions of dollars and is increasing by more than $1,000,000,000 per year.
3.  Arizona's economy and people rely on a safe, efficient and adequate statewide network of streets, roads and highways.  Without long‑term, ongoing funding, that system is in jeopardy and with it this state's future.
Sec. 8.  Requirements for enactment;
two-thirds vote Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.
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Action History

  1. DPA

  2. House Second Reading

  3. House First Reading.

Sponsors

Sponsorship breakdown

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1 sponsors · 7 co-sponsors · 85 not signed on

Sponsors (1)

Co-sponsors (7)

Not signed on (85)

85 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

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taxation transportation energy
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Frequently asked questions

Who sponsors HB 2899?
HB 2899 is sponsored by Karen Fann, David Bradley, Bob Thorpe, Steve Pierce, Randall Friese, Charlene R. Fernandez, Russell Bowers, and Noel W. Campbell.
What is the current status of HB 2899?
This bill died with 54th Legislature - 2nd Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 2899?
Track HB 2899 free on One Click Politics — get push/email alerts when it moves.

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