SB 1356 — transportation tax; election; Maricopa county

4.

Vacate or abandon a portion of a state route or state highway as prescribed in section 28-7209.

ProhibitsSell transportationboard excisefunding taxobligations moniesto fromthe beingstate usedtreasurer toas influenceprovided thein outcomesection of28-7678. an election.

C.

The board shall:

1.

Establish policies to guide the development or modification of the five year transportation facilities construction program that are consistent with the principles of performance based PERFORMANCE-BASED planning developed pursuant to article 7 of this chapter.

The percentage of department discretionary monies allocated to the region in the regional transportation plan approved pursuant to chapter 17, article 1 of this title shall not increase or decrease unless the board, in cooperation with the regional planning agency, agrees to change the percentage of the discretionary monies.

2.

Award all construction contracts for transportation facilities.

3.

Monitor the status of these construction projects.

D.

The board shall determine priority program planning with respect to transportation facilities using the performance based PERFORMANCE-BASED methods developed pursuant to article 7 of this chapter.

- 1 - S.B.

1356 E.

With respect to transportation facilities other than highways, the board shall establish, open, relocate, alter, vacate or abandon all or portions of the facilities.

F.

With respect to aeronautics, the board shall perform the functions prescribed in chapter 25 of this title.

G.

The board shall not spend any monies, adopt any rules or implement any policies or programs to convert signs to the metric system or to require the use of the metric system with respect to designing or preparing plans, specifications, estimates or other documents for any highway project before the conversion or use is required by federal law, except that the board may:

1.

Spend monies and require the use of the metric system with respect to designing or preparing plans, specifications, estimates or other documents for a highway project that is awarded before October 1, 1997 and that is exclusively metric from its inception.

2.

Prepare for conversion to and use of the metric system not more than six months before the conversion or use is required by federal law.

Sec.

2.

Section 28-6301, Arizona Revised Statutes, is amended to read:

28-6301.

Definitions In this article, unless the context otherwise requires:

1.

"Bond related BOND-RELATED expenses" means:

(a) Printing, publication or advertising expenses with respect to the sale and issuance of any bonds.

(b) Fees, expenses and costs of registrars, paying agents and transfer agents retained by the board.

(c) Fees, expenses and costs of attorneys, accountants, actuaries, feasibility consultants, computer programmers or other experts employed to aid in the sale and issuance of the bonds.

(d) Other costs, fees and expenses incurred or reasonably related to the issuance, sale and administration of the bonds.

2.

"Bond related BOND-RELATED obligation" means any agreement or contractual relationship between the board and any bank, trust company, insurance company, surety bonding company, pension fund or other financial institution providing increased credit on, or security for, the bonds or liquidity for secondary market transactions.

3.

"Bonds" means any bonds that are payable from the regional area road fund as provided in chapter 21, article 2 of this title.

4.

"Construction interest" means a company whose primary function consists of building freeways, highways or major arterial streets.

5.

"Controlled access highway" has the same meaning prescribed in section 28-601.

- 2 - S.B.

1356 6.

"Freight interest" means a company that derives a substantial portion of its revenue from transporting goods.

7.

"Major amendment" means either:

(a) The addition or deletion of a freeway, route on the state highway system or a fixed guideway transit system.

(b) The addition or deletion of a portion of a freeway, route on the state highway system or a fixed guideway transit system that either exceeds one mile in length or exceeds an estimated cost of forty million dollars as provided in the regional transportation plan.

(c) The modification of a transportation project in a manner that eliminates a connection between freeway facilities or fixed guideway facilities.

7.

"MAJOR ARTERIAL" MEANS AN INTERCONNECTED THOROUGHFARE WHOSE PRIMARY FUNCTION IS TO LINK AREAS IN THE REGION AND TO DISTRIBUTE TRAFFIC TO AND FROM CONTROLLED ACCESS HIGHWAYS, GENERALLY OF REGIONWIDE SIGNIFICANCE AND OF VARYING CAPACITY DEPENDING ON THE TRAVEL DEMAND FOR THE SPECIFIC DIRECTION AND ADJACENT LAND USES.

8.

"PLAN" HAS THE SAME MEANING PRESCRIBED IN SECTION 28-6351.

8.

9.

"Population" means the population determined in the most recent United States decennial census or the most recent special census as provided in section 28-6532 and revisions to the decennial or special census certified by the United States bureau of the census.

9.

10.

"Public transportation" means moving passengers by means of a conveyance operated by or for a political subdivision of this state, including dial-a-ride transportation, special needs transportation and van pool transportation but excluding school buses.

10.

11.

"Public transportation system" means the combination of individuals, vehicles, physical facilities, structures and equipment that together provide, or facilitate providing, public transportation, including buses, high occupancy vehicle roadway lanes and ramps, bus pull-out lanes, bus and light rail waiting facilities, park and ride parking lots, intelligent transportation systems and ridesharing promotion.

12.

"REGIONAL PROGRAMS" MEANS TRANSPORTATION PROJECTS THAT ARE SELECTED THROUGH A PERFORMANCE-BASED PROCESS FOR ARTERIAL IMPROVEMENTS, ACTIVE TRANSPORTATION, AIR QUALITY, EMERGING TECHNOLOGIES, INTELLIGENT TRANSPORTATION SYSTEMS, SAFETY AND TRANSPORTATION DEMAND MANAGEMENT.

11.

13.

"Regionwide business" means a company that provides goods or services throughout the county.

12.

14.

"Transit interest" means an individual with demonstrated interest and experience with public transportation.

- 3 - S.B.

1356 Sec.

3.

Section 28-6302, Arizona Revised Statutes, is amended to read:

28-6302.

Transportation excise tax distribution;

counties with three million or more persons;

regional area road fund A.

In a county with a population of one THREE million two hundred thousand or more persons, the officer collecting transportation excise tax monies pursuant to section 42-6105 OR 42-6105.01 that are designated for deposit in the regional area road fund shall immediately transfer the monies to the state treasurer.

The state treasurer shall deposit the monies in a fund designated for the county as the regional area road fund.

The state treasurer shall hold monies in the regional area road fund as a trustee for the county.

B.

Except as provided in this article, the county in which the transportation excise taxes are levied has the beneficial interest in the regional area road fund.

This state has no beneficial interest in the regional area road fund except as an obligee for reimbursement of state monies that are advanced as salaries or expenses by this state or the department and that are to be repaid by the regional area road fund.

C.

Monies and investments within the regional area road fund may be used and spent only as provided in this chapter.

An appropriation of any nature shall not be required before the expenditure of monies from the regional area road fund.

Monies in the bond proceeds account or construction account of a regional area road fund may be obligated for payment in future years for the purpose of right-of-way acquisition subject to the limitations prescribed in sections 28-7001 and 28-7002, and section 42-6105, subsection D, paragraphs 1 and 2 AND SECTION 42-6105.01, SUBSECTION D, PARAGRAPHS 1 AND 2.

The state treasurer shall make payments from the regional area road fund by check, and a warrant or voucher is not necessary.

Subject to the powers granted to the board in chapter 21, article 2 of this title, the director shall administer monies deposited in the regional area road fund.

Sec.

4.

Section 28-6303, Arizona Revised Statutes, is amended to read:

28-6303.

Regional area road fund;

separate accounts A.

The regional area road fund is divided into three separate accounts designated as the bond account, the construction account and the bond proceeds account.

B.

The state treasurer shall:

1.

Account separately for each account.

2.

Make transfers between accounts only as provided in this article or chapter 21, article 2 of this title.

3.

Before any bonds are issued, deposit transportation excise tax revenues transferred to the state treasurer in the construction account.

These revenues shall be expended as provided in this article.

- 4 - S.B.

1356 4.

After any bonds are issued, deposit transportation excise tax revenues transferred to the state treasurer in the bond account first until the bond account contains monies sufficient to meet all principal, interest or redemption requirements for the current period as required by any resolution of the board pertaining to the issuance of bonds.

5.

After all current period requirements for all of the bonds are deposited in the bond account, deposit the balance of transportation excise tax revenues transferred to the state treasurer for the current period in the construction account.

C.

The state treasurer may:

1.

Invest monies in any account of the regional area road fund in any securities or obligations authorized by title 35, chapter 2, article 2.

2.

For the purpose of investments, commingle monies within the regional area road fund with state monies if all interest earned on the monies in the regional area road fund of a county is credited to the respective account of the regional area road fund in which the investment was made.

D.

The department shall separately account for the uses of transportation excise tax revenues deposited into the bond account and the construction account in order to identify how the transportation excise tax revenues are used pursuant to section 42-6105, subsection D, paragraphs 1 and 2, for:

1.

Freeways and other routes in the state highway system.

2.

Major arterial streets and intersection improvements REGIONAL PROGRAMS IDENTIFIED IN THE PLAN, INCLUDING CAPITAL EXPENSE AND IMPLEMENTATION STUDIES.

E.

THE DEPARTMENT SHALL SEPARATELY ACCOUNT FOR THE USES OF TRANSPORTATION EXCISE TAX REVENUES DEPOSITED IN THE BOND ACCOUNT AND THE CONSTRUCTION ACCOUNT IN ORDER TO IDENTIFY HOW THE TRANSPORTATION EXCISE TAX REVENUES ARE USED PURSUANT TO SECTION 42-6105.01, SUBSECTION D, PARAGRAPHS 1 AND 2 FOR:

1.

FREEWAYS AND OTHER ROUTES IN THE STATE HIGHWAY SYSTEM.

2.

MAJOR ARTERIAL STREETS AND REGIONAL PROGRAMS IDENTIFIED IN THE PLAN, INCLUDING CAPITAL EXPENSE AND IMPLEMENTATION STUDIES.

Sec.

5.

Section 28-6304, Arizona Revised Statutes, is amended to read:

28-6304.

Bond account;

expenditures A.

The state treasurer shall:

1.

Hold monies in the bond account in trust for the owners of the bonds.

2.

Pay monies in the bond account to the county, to paying agents or to the owners of the bonds directly in accordance with a resolution of the board authorizing the issuance of the bonds.

- 5 - S.B.

1356 B.

Monies in the bond account may be used:

1.

To pay bond related BOND-RELATED expenses or recurring expenses pertaining to administration and payment of the bonds.

2.

For funding reserves for the payment of the bonds.

3.

For payment of fees, charges and expenses incurred with respect to bond related BOND-RELATED obligations.

C.

Monies in the bond proceeds account may be obligated or spent as directed by the board, ACCORDING TO THE PLAN, for the:

1.

Payment of all bond related BOND-RELATED expenses.

2.

Establishment and funding of reserve monies or to pay interest on bonds during the expected period of construction.

3.

Payment of fees, charges and expenses incurred with respect to bond related BOND-RELATED obligations.

4.

Design, right-of-way purchase or construction related to new, or improvements to, freeways and other routes in the state highway system that are included in the regional transportation plan of the county and that are accepted into the state highway system.

5.

Design, right-of-way purchase or construction related to new, or improvements to, major arterial streets and intersections that are included in the regional transportation plan of the county.

For the purposes of this paragraph, "major arterial" means an interconnected thoroughfare whose primary function is to link areas in the region and to distribute traffic to and from controlled access highways, generally of regionwide significance and of varying capacity depending on the travel demand for the specific direction and adjacent land uses.

DefinesDesign and construction of interim roadways within the adopted corridors of the regional programs.transportation plan of the county pursuant to section 28-6309.

Amendment7. explanation prepared by Rachel Andrews 03/16/2022 Fifty-fifth Legislature Pace Second Regular Session S.B.

1356Right-of-way PACEcosts #1associated FLOORwith AMENDMENTthe SENATEconstruction AMENDMENTSof TOinterim S.B.roadways pursuant to section 28-6310.

13568. (Reference to printed bill) Page 3, between lines 31 and 32, insert:

"12.6.

"REGIONALPayment PROGRAMS"of MEANSprincipal TRANSPORTATIONand PROJECTSinterest THATon AREthe SELECTEDbonds. THROUGH A PERFORMANCE-BASED PROCESS FOR ARTERIAL IMPROVEMENTS, ACTIVE TRANSPORTATION, AIR QUALITY, EMERGING TECHNOLOGIES, INTELLIGENT TRANSPORTATION SYSTEMS, SAFETY AND TRANSPORTATION DEMAND MANAGEMENT." Renumber to conform Page 4, line 18, strike "PARAGRAPH" insert "PARAGRAPHS";

after7. "1" insert "AND 2" Page 5, line 23, strike "PARAGRAPH" insert "PARAGRAPHS";

afterDESIGN, "1"CONSTRUCTION insertAND "ANDIMPLEMENTATION 2"OF Page 10, line 13, after "general" strike remainder of line Strike line 14 Line 15, strike "in regional transportation planning to" insert "shall" Page 12, line 12, after the period insert "THE REGIONAL PLANNINGPROGRAMS AGENCYAS SHALLDEFINED CONSIDERBY TRUCK PARKING AVAILABILITY WHEN CONSIDERING THE CONSTRUCTION,PLAN. EXPANSION OR MODIFICATION OF FREEWAYS OR OTHER ROUTES IN THE STATE HIGHWAY SYSTEM.

ONSec. OR BEFORE DECEMBER 31, 2049, THE REGIONAL PLANNING AGENCY SHALL ALLOCATE AT LEAST $90,000,000 FOR THE IMPLEMENTATION OF COMMERCIAL MOTOR VEHICLE PARKING THAT IS CONSISTENT WITH A REGIONALLY ADOPTED TRUCK PARKING PLAN, INCLUDING FUNDING FOR CONSTRUCTION, LAND ACQUISITION, LEASE, MAINTENANCE OR OPERATIONS OR ENTRY INTO A PUBLIC-PRIVATE PARTNERSHIP AGREEMENT." Page 13, line 37, after "OF" insert "AT LEAST" Page 21, strike lines 3 through 21, insert:

"D.6.

THESection PLAN28-6305, ADOPTEDArizona UNDERRevised TITLEStatutes, 28,is CHAPTERamended 17, ARTICLE 2 SHALL SPECIFY THE DISTRIBUTION OF MONIES COLLECTED UNDER THIS SECTION INTO THE REGIONAL AREA ROAD FUND ESTABLISHED PURSUANT TO SECTION 28-6302 OR THE - 1 - Senate Amendments to S.B.read:

135628-6305. PUBLIC TRANSPORTATION FUND ESTABLISHED BY SECTION 48-5103.

Construction account;

expenditures;

construction contracts A.

Except as provided in subsection B of this section, monies in the construction account of the regional area road fund shall be spent, pledged or accumulated for the purposes provided in section 28-6304, subsection C, paragraphs 4 and 5, including payment of interest on and repayment of bonds and obligations issued pursuant to chapter 21 of this title if the proceeds of the bonds or obligations are used for the purposes provided in section 28-6304, subsection C, paragraphs 4 and 5.

- 6 - S.B.

1356 B.

Of the monies deposited in the construction account of the regional area road fund under section 28-6303, the state treasurer shall:

1.

In each fiscal year, divide and equally distribute five million dollars $5,000,000 to:

(a) The public transportation fund established in that county under section 48-5103.

(b) The regional planning agency in that county for planning and administration of ADMINISTERING the regional transportation plan approved pursuant to section 28-6308.

The state treasurer shall distribute monies under this subdivision through the department on or before June 30 of each year.

2.

Beginning with fiscal year 1987-1988, adjust the monies distributed under paragraph 1 OF THIS SUBSECTION by the annual percentage change for the previous calendar year in the GDP price deflator as defined in section 41-563.

C.

The monies distributed under subsection B of this section shall only be spent for planning and administering the regional transportation plan approved pursuant to section 28-6308 and the costs incurred by the auditor general relating to performance audits under section 28-6313.

Before the beginning of each fiscal year, the respective governing bodies of the members of the regional planning agency and the board of directors of the regional public transportation authority shall explicitly identify and approve in the annual budgets the monies to be spent under subsection B of this section for the purposes allowed under this subsection.

These expenditures are subject to the annual audit of the governing bodies' financial transactions.

D.

The director may enter into construction contracts or contracts incidental to construction contracts payable from monies in either the bond proceeds account or the construction account or both the bond proceeds and construction accounts.

Sec.

7.

Section 28-6306, Arizona Revised Statutes, is amended to read:

28-6306.

Account expenditures;

elections A.

Except as provided in subsection B OF THIS SECTION, monies from any account in the regional area road fund shall not be spent to promote or advocate a position, alternative or outcome of an election, to influence public opinion or to pay or contract for consultants or advisors to influence public opinion with respect to an election regarding taxes or other sources of revenue for the fund or regarding the regional transportation plan.

B.

Monies from any account in the regional area road fund may be spent:

1.

As authorized by this article to determine public opinion before the election is called.

- 7 - S.B.

1356 2.

For costs specifically incurred with respect to a ballot issue relating to a county transportation excise tax in a county with a population of one THREE million two hundred thousand or more persons.

Sec.

8.

Repeal Section 28-6307, Arizona Revised Statutes, is repealed.

Sec.

9.

Section 28-6308, Arizona Revised Statutes, is amended to read:

28-6308.

Regional planning agency transportation policy committee A.

The regional planning agency in the county shall establish a transportation policy committee consisting of twenty-three THE FOLLOWING members as follows:

1.

Seventeen members of the regional planning agency, including one member of the state transportation board who represents the county, one member of the county board of supervisors and one member representing WHO REPRESENTS Indian communities in the county.

2.

Six members who represent regionwide business interests, one of whom must represent transit interests, one of whom must represent freight interests and one of whom must represent construction interests.

The president of the senate and the speaker of the house of representatives shall each appoint three members to the committee pursuant to this paragraph.

Members who are appointed pursuant to this paragraph serve six-year terms.

The chairperson of the regional planning agency may submit names to the president of the senate and the speaker of the house of representatives for consideration for appointment to the transportation policy committee.

3.

BEGINNING FISCAL YEAR 2023-2024, TWO MEMBERS WHO REPRESENT UNINCORPORATED AREAS OF A COUNTY THAT HAS A POPULATION OF THREE MILLION OR MORE PERSONS.

THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES SHALL EACH APPOINT ONE MEMBER PURSUANT TO THIS SUBSECTION.

MEMBERS WHO ARE APPOINTED PURSUANT TO THIS SUBSECTION SERVE SIX-YEAR TERMS.

B.

Through the regional planning agency, the transportation policy committee BY A MAJORITY VOTE OF THE MEMBERS shall DO ALL OF THE FOLLOWING:

1.

By a majority vote of the members, Recommend approval, DISAPPROVAL OR MODIFICATION of a twenty-year comprehensive, performance-based, multimodal and coordinated regional transportation plan in the county, including transportation corridors by priority and a schedule indicating the dates that construction will commence for projects contained in the plan.

2.

Develop the plan in cooperation with the regional public transportation authority in the county and the department of transportation and in consultation with the county board of supervisors, Indian communities and cities and towns in the county.

- 8 - S.B.

1356 3.

Submit the plan for review by the regional public transportation authority in the county, the state board of transportation, the county board of supervisors, Indian communities and cities and towns in the county at the alternatives stage of the plan and the final draft stage of the plan.

After reviewing the plan, the regional public transportation authority in the county, the county board of supervisors and the state board of transportation, by majority vote of the members of each entity within thirty days after receiving the plan, shall submit a written recommendation to the transportation policy committee that the plan be approved, modified or disapproved.

Within thirty days after receiving the plan, Indian communities and cities and towns in the county may submit a written recommendation to the transportation policy committee that the plan be approved, modified or disapproved.

4.

Consider plan modifications proposed by any of the entities as prescribed in paragraph 3 of this subsection.

5.

By majority vote, approve, disapprove or further modify each proposed plan modification.

6.

Provide a written response to the regional public transportation authority, the state board of transportation, the county board of supervisors and the entity that submitted the proposed modification within thirty days after the vote on the proposed modification explaining the affirmation, rejection or further modification of each proposed modification.

7.

Recommend the plan to the regional planning agency for approval for an air quality conformity analysis.

C.

The regional transportation plan:

1.

Shall include the following transportation mode classifications with a revenue allocation to each classification consistent with section 42-6105, subsection D:

(a) Freeways and other routes in the state highway system.

(b) Major arterial streets and intersection improvements.

(c) Public transportation systems.

2.

Shall provide a suggested construction schedule for the transportation projects contained in the plan.

3.

May be annually updated to introduce new controlled access highways, related grade separations and transportation projects or to modify the existing plan.

4.

Shall be developed to meet federal air quality requirements established for the region in which it is located.

D.

Transportation excise tax revenues that are distributed pursuant to section 42-6105, subsection D shall not be redistributed or used for other transportation modes.

Except as provided by section 28-6353, subsections D, E and F, transportation excise tax revenues that are dedicated in the plan to a specific project or transportation system may only be redistributed to or otherwise used for another project within the - 9 - S.B.

1356 same transportation mode if approved by a majority vote of the transportation policy committee.

3.

RECOMMEND APPROVAL, DISAPPROVAL OR MODIFICATION OF CHANGES TO THE ALLOCATIONS OF TRANSPORTATION EXCISE TAX REVENUES BETWEEN SECTION 28-6352, SUBSECTION B, PARAGRAPHS 1, 2 AND 3, INCLUDING INVESTMENT CHANGES AS DESCRIBED IN SECTION 28-6352, SUBSECTIONS C AND H.

4.

RECOMMEND APPROVAL, DISAPPROVAL OR MODIFICATION OF THE BUDGET PROCESSES IDENTIFIED BY SECTION 28-6352, SUBSECTION D.

5.

RECOMMEND APPROVAL, DISAPPROVAL, OR MODIFICATION OF FUNDING AWARDED THROUGH THE REGIONAL PROGRAMS PROCESS.

Sec.

10.

Repeal Sections 28-6309, 28-6310, 28-6311 and 28-6312, Arizona Revised Statutes, are repealed.

Sec.

11.

Section 28-6313, Arizona Revised Statutes, is amended to read:

28-6313.

Performance audits of proposed transportation projects and systems A.

Beginning in 2010 and every fifth year thereafter, the auditor general shall contract with a nationally recognized independent auditor with expertise in evaluating multimodal transportation systems and in regional transportation planning to conduct a performance audit, as defined in section 41-1278, of the regional transportation plan and projects scheduled for funding during the next five years.

B.

With respect to light rail systems, the audit shall consider the criteria used by the federal transit administration pursuant to 49 United States Code section 5309(e)(1)(B) and the interrelationship among the criteria to provide federal funding for light rail systems.

For light rail systems, the audit shall also consider:

1.

Service levels.

2.

Capital costs.

3.

Operation and maintenance costs.

4.

Transit ridership.

5.

Farebox revenues.

C.

The audit shall:

1.

Examine the regional transportation plan and projects scheduled for funding within each transportation mode based on the performance factors established in section 28-505, subsection A, in the context of the transportation system.

2.

Review past expenditures of the regional transportation plan and examine the performance of the system in relieving congestion and improving mobility.

3.

Make recommendations regarding whether further implementation of a project or transportation system is warranted, warranted with modifications or not warranted.

- 10 - S.B.

1356 D.

The auditor general or the auditors contracted to conduct the audit shall periodically update the transportation policy committee regarding the progress of the audit.

E.

Within forty-five days after the release of the audit, the regional public transportation authority, the state transportation board and the county board of supervisors, by a majority vote of each entity, shall submit written recommendations to the transportation policy committee that the findings are agreed to or disagreed with and the recommendations should be implemented, be implemented with modification or not be implemented.

F.

Within forty-five days after the audit's release, the regional planning agency shall hold a public hearing on the audit findings and recommendations.

G.

The auditor general shall distribute copies of the audit to:

1.

The regional planning agency.

2.

The transportation policy committee.

3.

The regional public transportation authority in the county.

4.

The county board of supervisors.

5.

The state transportation board.

6.

The governor, secretary of state, president of the senate and speaker of the house of representatives.

7.

The Arizona state library, archives and public records.

8.

Any other person who requests a copy pursuant to title 39, chapter 1, article 2.

H.

The state transportation board, regional planning agency, regional public transportation authority and county board of supervisors shall cooperate with and submit to the auditor general and the auditors contracted to conduct the audit information necessary to conduct the audits under this section.

I.

The cost incurred by the auditor general in contracting with independent auditors for conducting performance audits under subsection A of this section shall be paid from revenues of the county transportation excise tax under section SECTIONS 42-6105 AND 42-6105.01.

When due, the payments have priority over any other distribution authorized by section 42-6105 OR 42-6105.01.

The auditor general shall deposit the payments in the audit services revolving fund established by section 41-1279.06.

Sec.

12.

Heading change The article heading of title 28, chapter 17, article 2, Arizona Revised Statutes, is changed from "REGIONAL TRANSPORTATION PLAN" to "COUNTY TRANSPORTATION EXCISE TAX PLAN".

- 11 - S.B.

1356 Sec.

13.

Section 28-6351, Arizona Revised Statutes, is amended to read:

28-6351.

Definitions In this article, unless the context otherwise requires:

1.

"Controlled access highway" has the same meaning prescribed in section 28-601.

2.

1.

"Enhancement" means an addition that exceeds generally accepted engineering or design standards for the specific type of facility.

3.

2.

"Regional transportation Plan" means the twenty year comprehensive, performance based PERFORMANCE-BASED, multimodal and coordinated regional STRATEGIC transportation INFRASTRUCTURE INVESTMENT plan approved for the county pursuant to section 28-6308, as amended or otherwise modified.

Sec.

14.

Repeal Sections 28-6352, 28-6353, 28-6354 and 28-6355, Arizona Revised Statutes, are repealed.

Sec.

15.

Title 28, chapter 17, article 2, Arizona Revised Statutes, is amended by adding a new section 28-6352, to read:

28-6352.

County transportation excise tax;

budget process A.

THE REGIONAL PLANNING AGENCY IN THE COUNTY SHALL DEVELOP AND ADOPT A PLAN.

THE PLAN SHALL BE MULTIMODAL AND SHALL BE DEVELOPED IN COOPERATION WITH STATE AND LOCAL PUBLIC TRANSPORTATION AUTHORITIES AND OPERATORS AND IN COORDINATION WITH THE DEPARTMENT.

THE REGIONAL PLANNING AGENCY SHALL CONSIDER TRUCK PARKING AVAILABILITY WHEN CONSIDERING THE CONSTRUCTION, EXPANSION OR MODIFICATION OF FREEWAYS OR OTHER ROUTES IN THE STATE HIGHWAY SYSTEM.

ON OR BEFORE DECEMBER 31, 2049, THE REGIONAL PLANNING AGENCY SHALL ALLOCATE AT LEAST $90,000,000 FOR THE IMPLEMENTATION OF COMMERCIAL MOTOR VEHICLE PARKING THAT IS CONSISTENT WITH A REGIONALLY ADOPTED TRUCK PARKING PLAN, INCLUDING FUNDING FOR CONSTRUCTION, LAND ACQUISITION, LEASE, MAINTENANCE OR OPERATIONS OR ENTRY INTO A PUBLIC-PRIVATE PARTNERSHIP AGREEMENT.

B.

THE PLAN SHALL ALLOCATE REVENUE COLLECTED UNDER SECTION 42-6105.01 AS FOLLOWS:

1.

IN THE REGIONAL AREA ROAD FUND FOR FREEWAYS AND OTHER ROUTES IN THE STATE HIGHWAY SYSTEM, INCLUDING CAPITAL EXPENSE AND MAINTENANCE.

2.

IN THE REGIONAL AREA ROAD FUND FOR MAJOR ARTERIAL STREETS AND REGIONAL PROGRAMS, INCLUDING CAPITAL EXPENSE AND IMPLEMENTATION STUDIES.

3.

IN THE PUBLIC TRANSPORTATION FUND ESTABLISHED BY SECTION 48-5103 FOR:

(a) CAPITAL COSTS, MAINTENANCE AND OPERATION OF PUBLIC TRANSPORTATION MODE CLASSIFICATIONS.

(b) CAPITAL COSTS AND UTILITY RELOCATION COSTS ASSOCIATED WITH THE LIGHT RAIL SYSTEM.

- 12 - S.B.

1356 C.

TRANSPORTATION EXCISE TAX REVENUES THAT ARE ALLOCATED PURSUANT TO SUBSECTION B, PARAGRAPH 1, 2 OR 3 OF THIS SECTION MAY ONLY BE REALLOCATED TO ANOTHER PARAGRAPH UNDER SUBSECTION B OF THIS SECTION IF THE REALLOCATION IS RECOMMENDED FOR APPROVAL BY THE TRANSPORTATION POLICY COMMITTEE AND APPROVED BY THE REGIONAL PLANNING AGENCY BOARD.

NOT MORE THAN TWO AND ONE-HALF PERCENT OF THE REVENUES COLLECTED UNDER SECTION 42-6105.01 MAY BE TRANSFERRED ANNUALLY BETWEEN SUBSECTION B, PARAGRAPHS 1, 2 AND 3 OF THIS SECTION WITHOUT GOING THROUGH THE MAJOR INVESTMENT CHANGE PROCESS AS PRESCRIBED IN SUBSECTION H OF THIS SECTION.

D.

BEGINNING FISCAL YEAR 2022-2023, THE REGIONAL PLANNING AGENCY SHALL ADOPT A BUDGET PROCESS THAT ENSURES:

1.

THE ESTIMATED COST OF THE FREEWAYS AND OTHER ROUTES IN THE REGION'S STATE HIGHWAY SYSTEM DOES NOT EXCEED THE TOTAL AMOUNT OF REVENUES ESTIMATED TO BE AVAILABLE OVER THE TERM OF THE TRANSPORTATION EXCISE TAX AS PRESCRIBED BY SECTION 42-6105, SUBSECTION C AND SECTION 42-6105.01, SUBSECTION C.

2.

THE ESTIMATED COST OF THE PUBLIC TRANSPORTATION SYSTEM DOES NOT EXCEED THE TOTAL AMOUNT OF REVENUES ESTIMATED TO BE AVAILABLE OVER THE TERM OF THE TRANSPORTATION EXCISE TAX AS PRESCRIBED BY SECTION 42-6105, SUBSECTION C AND SECTION 42-6105.01, SUBSECTION C.

3.

THE ESTIMATED COST OF MAJOR ARTERIAL STREETS AND REGIONAL PROGRAMS DOES NOT EXCEED THE TOTAL AMOUNT OF REVENUES ESTIMATED TO BE AVAILABLE OVER THE TERM OF THE TRANSPORTATION EXCISE TAX AS PRESCRIBED BY SECTION 42-6105, SUBSECTION C AND SECTION 42-6105.01, SUBSECTION C.

E.

THE REGIONAL PLANNING AGENCY SHALL COORDINATE WITH IMPLEMENTING PARTNERS ON THE BUDGET PROCESS PRESCRIBED IN SUBSECTION D OF THIS SECTION, INCLUDING THE DEPARTMENT FOR FREEWAYS AND OTHER ROUTES IN THE STATE HIGHWAY SYSTEM AND THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY IN THE COUNTY FOR THE PUBLIC TRANSPORTATION SYSTEM.

F.

THE REGIONAL PLANNING AGENCY SHALL DETERMINE THE USE OF THE REVENUES COLLECTED UNDER SECTIONS 42-6105 AND 42-6105.01 FOR CAPITAL PROJECTS THROUGH THE TRANSPORTATION IMPROVEMENT PROGRAM.

G.

ANY BONDS ISSUED AGAINST PROCEEDS COLLECTED PURSUANT TO SECTIONS 42-6105 AND 42-6105.01 REQUIRE CONSULTATION WITH THE REGIONAL PLANNING AGENCY.

H.

THE MAJOR INVESTMENT CHANGE PROCESS REQUIRES THE FOLLOWING:

1.

CONSIDERATION BY THE TRANSPORTATION POLICY COMMITTEE.

2.

IDENTIFICATION OF THE PROJECTS AND PROGRAMS THAT WOULD BE IMPACTED BY THE FUNDING TRANSFER.

3.

A DETAILED, PERFORMANCE-BASED ASSESSMENT OF THE IMPACTED PROJECTS AND PROGRAMS.

THE PERFORMANCE-BASED ASSESSMENT MUST SUPPORT THE PROPOSED MAJOR INVESTMENT CHANGE.

THE ASSESSMENT SHALL ALSO SEEK, CONSIDER AND DOCUMENT PUBLIC INPUT ON THE PROPOSED MAJOR INVESTMENT CHANGE.

4.

A ONE HUNDRED EIGHTY-DAY PUBLIC COMMENT PERIOD.

- 13 - S.B.

1356 5.

SUBMISSION OF THE PROPOSED MAJOR INVESTMENT CHANGE FOR REVIEW BY THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY IN THE COUNTY, THE STATE BOARD OF TRANSPORTATION AND THE COUNTY BOARD OF SUPERVISORS.

AFTER REVIEW, THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY IN THE COUNTY, THE STATE BOARD OF TRANSPORTATION AND THE COUNTY BOARD OF SUPERVISORS, BY A MAJORITY VOTE OF THE MEMBERS OF EACH BOARD AND WITHIN THIRTY DAYS AFTER RECEIVING THE PROPOSED MAJOR INVESTMENT CHANGE, SHALL SUBMIT A WRITTEN RECOMMENDATION TO THE REGIONAL PLANNING AGENCY THAT THE PROPOSED MAJOR INVESTMENT CHANGE BE APPROVED, MODIFIED OR DISAPPROVED.

IF THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY IN THE COUNTY, THE STATE BOARD OF TRANSPORTATION OR THE COUNTY BOARD OF SUPERVISORS FAILS TO APPROVE THE PROPOSED MAJOR INVESTMENT CHANGE, AN AFFIRMATIVE VOTE OF AT LEAST SEVENTEEN MEMBERS OF THE TRANSPORTATION POLICY COMMITTEE IS REQUIRED TO RECOMMEND APPROVAL AND PROCEED WITH THE MAJOR INVESTMENT CHANGE.

I.

THE REGIONAL PLANNING AGENCY SHALL ANNUALLY REPORT ON THE STATUS OF THE PROJECTS FUNDED PURSUANT TO SECTION 42-6105 OR 42-6105.01 AND SHALL POST THE REPORT ON ITS WEBSITE.

J.

REQUESTS FOR CHANGES TO TRANSPORTATION PROJECTS FUNDED IN THE PLAN THAT WOULD MATERIALLY INCREASE COSTS SHALL BE SUBMITTED TO THE REGIONAL PLANNING AGENCY FOR APPROVAL AND SUBMITTED BY THE REGIONAL PLANNING AGENCY TO THE TRANSPORTATION POLICY COMMITTEE AND THE BOARD FOR CONSIDERATION AND APPROVAL.

K.

IF A LOCAL AUTHORITY REQUESTS AN ENHANCEMENT TO A TRANSPORTATION PROJECT FUNDED IN THE PLAN, THE LOCAL AUTHORITY SHALL PAY ALL COSTS ASSOCIATED WITH THE ENHANCEMENT.

L.

THE PLAN SHALL REFLECT THE ALLOCATION OF REVENUES COLLECTED UNDER SECTION 42-6105, SUBSECTION D THROUGH DECEMBER 31, 2025.

M.

THE BUDGET PROCESS PRESCRIBED IN SUBSECTION D OF THIS SECTION DOES NOT APPLY TO THE ANNUAL OPERATING BUDGET OF THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY IN THE COUNTY.

N.

IF MONIES ARE APPROPRIATED BY THE LEGISLATURE FOR A PROJECT THAT IS IDENTIFIED IN THE PLAN, THE USE OF THE MONIES FOR CONSTRUCTION REQUIRES BOTH OF THE FOLLOWING:

1.

THE PROJECT MUST BE ADVANCED AS APPROPRIATE TO REFLECT THE ESTIMATED CONSTRUCTION START DATE.

2.

THE MONIES MUST BE USED IN THE SAME MODAL CLASSIFICATION SPECIFIED IN SUBSECTION B OF THIS SECTION.

O.

IF A MUNICIPALITY PAYS FOR PUBLIC TRANSPORTATION SERVICE IN AN ADJACENT MUNICIPALITY OR UNINCORPORATED AREA OF A COUNTY, THE COST OF THE SERVICE SHALL BE ELIGIBLE FOR REIMBURSEMENT FROM MONIES COLLECTED UNDER SECTION 42-6105 OR 42-6105.01.

FOR THE PURPOSES OF THIS SUBSECTION:

1.

"MUNICIPALITY" MEANS A CITY OR TOWN.

2.

"PUBLIC TRANSPORTATION SERVICE" INCLUDES CIRCULATOR SERVICE.

- 14 - S.B.

1356 Sec.

16.

Section 28-6538, Arizona Revised Statutes, is amended to read:

28-6538.

Arizona highway user revenue fund distribution;

remaining monies;

highway fund distribution;

contract authorization;

plan requirements A.

Each fiscal year the department shall allocate and the state treasurer shall distribute revenues of the Arizona highway user revenue fund remaining after the distribution provided in sections 28-6534 and 28-6537 as follows:

1.

To the state highway fund, fifty and one-half per cent PERCENT.

2.

To the counties, nineteen per cent PERCENT.

3.

To the incorporated cities and towns, twenty-seven and one-half per cent PERCENT.

4.

To incorporated cities with a population of three hundred thousand or more persons, three per cent PERCENT.

B.

At least twelve and six-tenths per cent PERCENT of the revenues allocated each year to the state highway fund pursuant to subsection A of this section shall be further distributed in the following proportions and for the following purposes:

1.

Seventy-five per cent PERCENT of the revenues shall be spent, pledged or accumulated in counties with a population of one million five hundred thousand or more persons for the design, right-of-way purchase or construction of controlled access highways that are included in the regional transportation plan of the county AS DEFINED IN SECTION 28-6351 and that are accepted into the state highway system either as a state route or as a state highway.

2.

Twenty-five per cent PERCENT of the revenues shall be spent, pledged or accumulated in counties with a population of more than eight hundred thousand but less than one million five hundred thousand persons for:

(a) The design, right-of-way purchase or construction of controlled access highways that are included in the regional transportation plan of the county AS DEFINED IN SECTION 28-6351 and that are accepted into the state highway system either as a state route or as a state highway or related grade separations of controlled access highways that are included in the regional transportation plan of the county AS DEFINED IN SECTION 28-6351.

(b) Notwithstanding sections 28-6993 and 28-6995, the design, right-of-way purchase, construction, standard and reduced clearance grade separation, extension and widening of arterial streets and highways that are included in the regional transportation plan of the county AS DEFINED IN SECTION 28-6351.

C.