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HB2351 - 431R - H Ver

Reference Title: department of motor vehicles; establishment

AN ACT
AMENDING SECTIONS 3-216, 4-241, 8-232, 8-251, 13-806, 13-907, 13-1209, 13-2314.02, 13-3111, 13-3821, 13-4307, 13-4701, 14-3971, 14-3972, 14-5503, 16-111, 16-112, 20-236, 20-237, 20-262, 20-265, 21-301, 25-320.01, 26-153, 28-101 AND 28-332, ARIZONA REVISED STATUTES; REPEALING SECTIONS 28-369 THROUGH 28-375 AND SECTIONS 28-402 THROUGH 28-407, ARIZONA REVISED STATUTES; RENUMBERING SECTIONS 28-408, 28-409 AND 28-410, ARIZONA REVISED STATUTES, AS SECTIONS 28-402, 28-403 AND 28-404, RESPECTIVELY; AMENDING SECTION 28-404, ARIZONA REVISED STATUTES, AS RENUMBERED BY THIS ACT; REPEALING TITLE 28, CHAPTER 2, ARTICLE 5, ARIZONA REVISED STATUTES; TRANSFERRING AND RENUMBERING TITLE 28, CHAPTER 2, ARTICLE 6, ARIZONA REVISED STATUTES, FOR PLACEMENT IN TITLE 28, CHAPTER 26, ARIZONA REVISED STATUTES, AS ADDED BY THIS ACT, AS ARTICLE 5; TRANSFERRING AND RENUMBERING SECTIONS 28-481 THROUGH 28-490, ARIZONA REVISED STATUTES, FOR PLACEMENT IN TITLE 28, CHAPTER 26, ARTICLE 5, ARIZONA REVISED STATUTES, AS SECTIONS 28-9221 THROUGH 28-9230, RESPECTIVELY; AMENDING SECTIONS 28-601, 28-702.01, 28-857.01, 28-909, 28-1109, 28-1143, 28-1632 AND 28-2004, ARIZONA REVISED STATUTES; REPEALING SECTION 28-2010, ARIZONA REVISED STATUTES; AMENDING SECTIONS 28-2056, 28-2151, 28-2155, 28-2156, 28-2166, 28-2202, 28-2206, 28-2269 AND 28-2323, ARIZONA REVISED STATUTES; REPEALING SECTION 28-2353, ARIZONA REVISED STATUTES; AMENDING SECTIONS 28-2404, 28-2405, 28-2412, 28-2413, 28-2414, 28-2415, 28-2416 AND 28-3002, ARIZONA REVISED STATUTES; REPEALING SECTION 28-3003, ARIZONA REVISED STATUTES; AMENDING SECTIONS 28-3158, 28-3228, 28-3318, 28-4133, 28-4147, 28-4151, 28-4302, 28-4332, 28-4364, 28-4404, 28-4498, 28-4499, 28-4556, 28-4839, 28-5104, 28-5105, 28-5134, 28-5135, 28-5203, 28-5204, 28-5231, 28-5235, 28-5237, 28-5238, 28-5401, 28-5616, 28-5620, 28-5739, 28-5805, 28-5808, 28-5857, 28-5874, 28-5875, 28-6001, 28-6002, 28-6003, 28-6006, 28-6008, 28-6991 AND 28-6993, ARIZONA REVISED STATUTES; AMENDING TITLE 28, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 26; AMENDING SECTIONS 30-654, 32-2351, 32-2371, 35-101, 35-116, 36-851, 36-2023, 36-2243, 41-608.01, 41-790.01, 41-791, 41-792.01, 41-803, 41-1092.02, 41-1292.03 AND 41-1742, ARIZONA REVISED STATUTES; AMENDING SECTION 41-2501, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1996, CHAPTER 94, SECTION 1 AND LAWS 1996, CHAPTER 110, SECTION 5; AMENDING SECTION 41-2501, ARIZONA REVISED STATUTES, AS AMENDED BY THIS ACT; REPEALING SECTION 41-2501, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1996, CHAPTER 195, SECTION 4; AMENDING SECTION 41-2998.05, ARIZONA REVISED STATUTES; AMENDING TITLE 41, CHAPTER 27, ARTICLE 2, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-3007.01; AMENDING SECTION 41-3451, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1996, CHAPTER 263, SECTION 13; AMENDING SECTIONS 42-641.01, 42-643, 42-646, 46-192, 49-542 AND 49-542.01, ARIZONA REVISED STATUTES; BLENDING MULTIPLE ENACTMENTS; RELATING TO THE DEPARTMENT OF MOTOR VEHICLES; PROVIDING FOR CONDITIONAL ENACTMENT.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 3-216, Arizona Revised Statutes, is amended to read:

3-216 . Enforcement powers of deputy, inspector or agent; cooperation

A. When any power or authority is given by any provision of this article to the director, it may be exercised by any deputy, inspector or agent duly authorized by the director.

B. Any person in whom the enforcement of any provision of this article is vested has the power of a peace officer as to such enforcement.

C. By interagency agreement, the department of agriculture and the DEPARTMENT OF motor vehicle division of the department of transportation VEHICLES shall cooperate at the ports of entry to carry out the provisions of this article.

Sec. 2. Section 4-241, Arizona Revised Statutes, is amended to read:

4-241 . Selling or giving liquor to underage person; illegally obtaining liquor by underage person; violation; classification

A. A licensee, an employee or any other person who questions or has reason to question whether or not a person ordering, purchasing, attempting to purchase or otherwise procuring or attempting to procure the serving or delivery of spirituous liquor is under the legal drinking age shall require the person to exhibit a written instrument of identification and may require the person on a card to be retained by the licensee to sign the person's name, the date, and the number of such identification. The following written instruments are the only acceptable types of identification:

1. An unexpired driver license issued by any state, provided such license includes a picture of the licensee.

2. A nonoperating identification license issued pursuant to section 28-3165.

3. An armed forces identification card.

4. A valid unexpired passport which is issued by a government and which contains a photograph of the person and the date of birth.

B. A licensee, an employee or any other person who sells, gives, serves or furnishes spirituous liquor to a person who is under the legal drinking age without having recorded and retained a record of the person's age as prescribed by subsection A of this section is deemed to have constructive knowledge of the person's age.

C. A person who is under the legal drinking age and who misrepresents the person's age to any person by means of a written instrument of identification with the intent to induce a person to sell, serve, give or furnish spirituous liquor contrary to law is guilty of a class 1 misdemeanor.

D. A person who is under the legal drinking age and who solicits another person to purchase, sell, give, serve or furnish spirituous liquor contrary to law is guilty of a class 3 misdemeanor.

E. A person who is under the legal drinking age and who uses a fraudulent or false written instrument of identification or identification of another person or uses a valid license or identification of another person to gain access to a licensed establishment is guilty of a class 1 misdemeanor.

F. A person who uses a driver or nonoperating identification license in violation of subsection C or E of this section is subject to suspension of the driver or nonoperating identification license as provided in section 28-3309. A person who does not have a valid driver or nonoperating identification license and who uses a driver or nonoperating identification license of another in violation of subsection C or E of this section has the person's right to apply for a driver or nonoperating identification license suspended as provided by section 28-3309.

G. A person who knowingly influences the sale, giving or serving of spirituous liquor to a person under the legal drinking age by misrepresenting the age of such person or who orders, requests, receives or procures spirituous liquor from any licensee, employee or other person with the intent of selling, giving or serving it to a person under the legal drinking age is guilty of a class 1 misdemeanor.

H. A person who is of legal drinking age and who is an occupant of unlicensed premises is guilty of a class 1 misdemeanor if both of the following apply:

1. Such person knowingly allows a gathering on such unlicensed premises of two or more persons who are under the legal drinking age and who are neither:

(a) Members of the immediate family of such person.

(b) Permanently residing with such person.

2. Such person knows or should know that one or more of the persons under the legal drinking age is in possession of or consuming spirituous liquor on the unlicensed premises.

I. For purposes of subsection H of this section, "occupant" means a person who has legal possession or the legal right to exclude others from the unlicensed premises.

J. A peace officer shall forward or electronically transfer to the director of the department of transportation MOTOR VEHICLES the affidavit required by section 28-3310 if the peace officer has arrested a person for the commission of an offense for which, on conviction, suspension of the license or privilege to operate a motor vehicle is required by section 28-3309, subsection A or B.

K. A person who acts under a program of testing compliance with this title which is approved by the director is not in violation of section 4-244.

Sec. 3. Section 8-232, Arizona Revised Statutes, is amended to read:

8-232 . Juvenile hearing officer; appointment; term; compensation; hearings

A. The judge of the juvenile court, or in counties having more than one judge of the juvenile court, the presiding judge of the juvenile court, may appoint one or more persons, of suitable experience, who may be magistrates or justices of the peace, to serve as juvenile hearing officers on a full-time or part-time basis. The board of supervisors shall approve the appointment of justices of the peace as juvenile hearing officers or the local governing body shall approve the appointment of municipal judges as juvenile hearing officers. The juvenile hearing officer shall serve at the pleasure of the judge. The judge shall determine, with the approval of the board of supervisors, whether any compensation shall be paid to a juvenile hearing officer not otherwise employed by a public agency or holding another public office , and shall establish the amounts and rates of the compensation.

B. Subject to the orders of the juvenile court a juvenile hearing officer may hear and determine juvenile pretrial detention hearings and may process, adjudicate and dispose of all cases, which are not classified as felonies, in which a child under the age of eighteen years on the date of the alleged offense is charged with violating any law relating to the following:

1. Any provision of title 28.

2. The purchase, possession or consumption of spirituous liquor by a juvenile.

3. Boating or game and fish.

4. Curfew.

5. Truancy.

6. The damage or disfigurement of property by graffiti or the purchase or possession of materials with the intent to be used USE THE MATERIALS for graffiti.

7. The purchase or possession of tobacco.

8. Any city, town or political subdivision ordinance.

9. Interference with judicial proceedings involving disobeying or resisting the lawful order, process or other mandate of a juvenile hearing officer or failure to appear related to any offense in this section.

C. A hearing before the juvenile hearing officer or a hearing before a commissioner or a judge of the juvenile court in which the juvenile is charged with any offense set forth in this section may be conducted upon an exact legible copy of a written notice to appear, including a traffic ticket and complaint form, that states, at a minimum, the name and address of the juvenile, the offense charged and the time and place the juvenile shall appear in court.

D. The juvenile hearing officer, commissioner or judge of the superior court shall not dispose of a petition or citation for any offense under this section unless the parent, guardian or custodian of the juvenile appears in court with the juvenile at the time of disposition of the charge. The court may waive the requirement that the parent, guardian or custodian appear for good cause. If the appearance is waived, the court shall send written notice to the parent, guardian or custodian, if known, of the charge and the disposition of the charge. If the juvenile fails to appear pursuant to a citation properly issued under this section, the juvenile hearing officer may refer the matter to the juvenile court for appropriate action.

E. Except as otherwise provided by law, upon an admission by the juvenile of a violation charged pursuant to this section, or after a hearing, upon the finding that the juvenile did commit such violation, the juvenile hearing officer, commissioner or judge of the superior court may do any one or more of the following:

1. Place the juvenile on probation, except that a city magistrate or justice of the peace may only place the juvenile on unsupervised probation.

2. Transfer the citation to the juvenile court for all further proceedings.

3. Suspend the driving privileges of the juvenile, or restrict such driving privileges for a period of not to exceed one hundred eighty days.

4. Order the juvenile to attend a traffic school or a counseling or education program approved by the presiding judge of the juvenile court or the supreme court.

5. Order the juvenile to pay the monetary assessment or penalty that is applicable to the offense. The monetary assessment or penalty shall not exceed five hundred dollars plus lawful surcharges and assessments payable to the public agency processing the violation. If no monetary assessment or penalty is specified for the offense, the juvenile hearing officer, commissioner or judge of the superior court may order the juvenile to pay not more than one hundred fifty dollars plus lawful surcharges and assessments payable to the public agency processing the violation.

6. In lieu of or in addition to a monetary assessment or penalty, order the juvenile to perform a program of work, which does not conflict with the juvenile's regular schooling and employment, to repair the victim's property or to provide community service.

7. If the juvenile hearing officer, commissioner or judge of the superior court determines that the person charged is eighteen or more years of age, transfer the matter to an adult court having jurisdiction.

8. If the juvenile violated any truancy laws, require the juvenile and the juvenile's parents or guardians to participate in a specialized program consisting of counseling, supervision and education under the terms and conditions the juvenile hearing officer, commissioner or judge of the superior court orders.

9. Order the juvenile and one or both of the juvenile's custodial parents or guardians to pay restitution to any person who suffered an economic loss as the result of the juvenile's conduct. The juvenile hearing officer, commissioner or judge of the superior court shall not consider the ability of the juvenile's parents or guardians to pay restitution before making a restitution order. If the juvenile hearing officer, commissioner or judge of the superior court orders one or both of the juvenile's custodial parents or guardians to pay restitution, the amount of the order shall not exceed the liability limit established pursuant to section 12-661.

10. Reprimand the juvenile and take no further action.

F. On admission of the child or on a finding that the child committed criminal damage pursuant to section 13-1602, subsection A, paragraph 5, or a violation of any city or town ordinance which prohibits the type of criminal action defined in section 13-1602, subsection A, paragraph 5, the juvenile hearing officer, commissioner or judge shall suspend the child's driver license or privilege to drive or shall direct the department of transportation MOTOR VEHICLES to refuse to issue, renew or restore the child's driver license or privilege to drive until the child reaches eighteen years of age.

G. A record of the proceedings before a juvenile hearing officer may be made by a court reporter, videotape or audiotape or any other method approved by the supreme court that accurately reproduces what occurred at the proceeding.

H. The juvenile hearing officer shall retain jurisdiction of the case until all orders made under this section have been fully complied with. The juvenile hearing officer shall immediately transmit a copy of the citation with the findings and disposition of the court noted on the copy to the juvenile court for record keeping purposes. If appropriate, the juvenile hearing officer shall transmit a copy of the citation to the department of transportation MOTOR VEHICLES . If on disposition the juvenile fails to comply with any court order, the juvenile hearing officer, in the manner provided by subsection D of this section, may impose any of the sanctions prescribed in subsection E of this section or the juvenile hearing officer may refer the matter to the county attorney for appropriate action to enforce the court orders and for any other petition or process the county attorney deems appropriate.

I. Subject to an appeal pursuant to section 8-232.02 all orders of the juvenile hearing officer shall be effective immediately.

Sec. 4. Section 8-251, Arizona Revised Statutes, is amended to read:

8-251 . Restitution lien

A. A person who is entitled to restitution pursuant to section 8-241, subsection D may file a restitution lien. No filing fee or other charge is required for filing a restitution lien.

B. The attorney representing the state in the delinquency proceeding or a judge, commissioner or juvenile hearing officer shall sign the restitution lien and shall set forth all of the following:

1. The name and date of birth of the delinquent child whose property or other interests are subject to the lien.

2. The present residence or principal place of business of the delinquent child named in the lien, if known.

3. The delinquency proceeding pursuant to which the lien is filed, including the name of the court, the title of the action and the court's file number.

4. The name and address of the attorney representing the state in the delinquency proceeding pursuant to which the lien is filed or the name and address of the person who is entitled to restitution pursuant to section 8-241, subsection D and who is filing the lien.

5. A statement that the notice is being filed pursuant to this section.

6. The amount of restitution that the delinquent child has been ordered to pay.

7. A statement that the total amount of restitution owed will change and that the clerk of the superior court shall maintain a record of the outstanding balance.

C. A restitution lien is perfected against interests in personal property by filing the lien with the secretary of state, except that for motor vehicles, the lien shall be filed with the department of transportation MOTOR VEHICLES . A restitution lien is perfected against interests in real property by filing the lien with the county recorder of the county in which the real property is located. The person entitled to restitution may give the additional notice of the lien as he THE PERSON deems appropriate.

D. The filing of a restitution lien creates a lien in favor of the person in all of the following:

1. Any interest of the delinquent child in real property that is situated in the county in which the lien is filed and that is currently maintained or thereafter acquired in the name of the delinquent child identified in the lien.

2. Any interest of the delinquent child in personal property that is situated in this state and that is currently maintained or thereafter acquired in the name of the delinquent child identified in the lien.

3. Any property identified in the lien to the extent of the delinquent child's interest in the property.

E. The filing of a restitution lien is notice to all persons dealing with the delinquent child or property identified in the lien of the claim of the person entitled to restitution pursuant to section 8-241, subsection D. The lien created in favor of the person pursuant to this section is superior and prior to the claims or interests of any other person, except a person possessing any of the following:

1. A valid lien that is perfected before the filing of the restitution lien.

2. In the case of real property, an interest that is acquired and recorded before the filing of the restitution lien.

3. In the case of personal property, an interest that is acquired before the filing of the restitution lien.

F. This section does not limit the right of the state or any other person entitled to restitution to obtain any order or injunction, receivership, writ, attachment, garnishment or other remedy authorized by law.

Sec. 5. Section 13-806, Arizona Revised Statutes, is amended to read:

13-806 . Restitution lien

A. The state or any person entitled to restitution pursuant to a court order may file in accordance with this section a restitution lien. A filing fee or any other charge is not required for filing a restitution lien.

B. A restitution lien shall be signed by the attorney representing the state in the criminal action or by a magistrate and shall set forth all of the following information:

1. The name and date of birth of the defendant whose property or other interests are subject to the lien.

2. The present residence or principal place of business of the person named in the lien, if known.

3. The criminal proceeding pursuant to which the lien is filed, including the name of the court, the title of the action and the court's file number.

4. The name and address of the attorney representing the state in the proceeding pursuant to which the lien is filed or the name and address of the person entitled to restitution pursuant to a court order filing the lien.

5. A statement that the notice is being filed pursuant to this section.

6. The amount of restitution the defendant in the proceeding has been ordered to pay or an estimated amount of economic loss caused by the offense alleged in the proceeding if no restitution order has been entered yet.

7. A statement that the total amount of restitution owed will change and that the clerk of the court in which the proceeding was or is pending shall maintain a record of the outstanding balance.

C. A restitution lien may be filed by:

1. A prosecutor in a criminal proceeding in which there was an economic loss after the filing of a misdemeanor complaint or felony information or indictment. At the time of arraignment the prosecutor shall give the defendant notice of any restitution lien filed.

2. A victim in a criminal proceeding after restitution is determined and ordered by the trial court following pronouncement of the judgment and sentence.

D. A restitution lien is perfected against interests in personal property by filing the lien with the secretary of state, except that in the case of titled motor vehicles it shall be filed with the department of transportation motor vehicle division VEHICLES . A restitution lien is perfected against interests in real property by filing the lien with the county recorder of the county in which the real property is located. The state or a victim may give the additional notice of the lien as either deems appropriate.

E. The filing of a restitution lien in accordance with this section creates a lien in favor of the state or the victim in all of the following:

1. Any interest of the defendant in real property situated in the county in which the lien is filed then maintained or thereafter acquired in the name of the defendant identified in the lien.

2. Any interest of the defendant in personal property situated in this state then maintained or thereafter acquired in the name of the defendant identified in the lien.

3. Any property identified in the lien to the extent of the defendant's interest in the property.

F. The filing of a restitution lien under this section is notice to all persons dealing with the person or property identified in the lien of the state's or victim's claim. The lien created in favor of the state or the victim in accordance with this section is superior and prior to the claims or interests of any other person, except a person possessing any of the following:

1. A valid lien perfected before the filing of the restitution lien.

2. In the case of real property, an interest acquired and recorded before the filing of the restitution lien.

3. In the case of personal property, an interest acquired before the filing of the restitution lien.

G. This section does not limit the right of the state or any other person entitled to restitution to obtain any order or injunction, receivership, writ, attachment, garnishment or other remedy authorized by law.

H. Following the entry of the judgment and sentence in the criminal case, if the trial court sentences the defendant to pay a fine or awards costs of investigation or prosecution, the state may file a restitution lien pursuant to this section for the amount of the fine or costs.

I. A criminal restitution lien is a criminal penalty for the purposes of any federal bankruptcy involving the defendant.

Sec. 6. Section 13-907, Arizona Revised Statutes, is amended to read:

13-907 . Setting aside judgment of convicted person on discharge; making of application; release from disabilities; exceptions

A. Except as provided in subsection B of this section, every person convicted of a criminal offense may, upon fulfillment of the conditions of probation or sentence and discharge by the court, apply to the judge, justice of the peace or magistrate who pronounced sentence or imposed probation or such judge, justice of the peace or magistrate's successor in office to have the judgment of guilt set aside. The convicted person shall be informed of this right at the time of discharge. The application to set aside the judgment may be made by the convicted person or by the convicted person's attorney or probation officer authorized in writing. If the judge, justice of the peace or magistrate grants the application, the judge, justice of the peace or magistrate shall set aside the judgment of guilt, dismiss the accusations or information and order that the person be released from all penalties and disabilities resulting from the conviction other than those imposed by the department of transportation MOTOR VEHICLES pursuant to section 28-3304, 28-3306, 28-3307 or 28-3308, except that the conviction may be used as a conviction if such conviction would be admissible had it not been set aside and may be pleaded and proved in any subsequent prosecution of such person by the state or any of its subdivisions for any offense or used by the department of transportation MOTOR VEHICLES in enforcing the provisions of section 28-3304, 28-3306, 28-3307 or 28-3308 as if the judgment of guilt had not been set aside.

B. This section does not apply to a person convicted of a criminal offense:

1. Involving the infliction of serious physical injury.

2. Involving the use or exhibition of a deadly weapon or dangerous instrument.

3. In violation of chapter 14 of this title.

4. In which the victim is a minor under fifteen years of age.

5. In violation of section 28-3473, any local ordinance relating to stopping, standing or operation of a vehicle or title 28, chapter 3, except a violation of section 28-693 or any local ordinance relating to the same subject matter as section 28-693.

Sec. 7. Section 13-1209, Arizona Revised Statutes, is amended to read:

13-1209 . Drive by shooting; driver license revocation; classification; definitions

A. A person commits drive by shooting by intentionally discharging a weapon from a motor vehicle at a person, another occupied motor vehicle or an occupied structure.

B. Notwithstanding title 28, chapter 8, the judge shall order the surrender to the judge of any driver license of the convicted person and, on surrender of the license, shall invalidate or destroy the license and forward the abstract of conviction to the department of transportation MOTOR VEHICLES with an order of the court revoking the driving privilege of the person for a period of at least one year but not more than five years. On receipt of the abstract of conviction and order, the department of transportation MOTOR VEHICLES shall revoke the driving privilege of the person for the period of time ordered by the judge.

C. Drive by shooting is a class 2 felony.

D. As used in this section:

1. "Motor vehicle" has the same meaning prescribed in section 28-101.

2. "Occupied structure" has the same meaning prescribed in section 13-3101.

Sec. 8. Section 13-2314.02, Arizona Revised Statutes, is amended to read:

13-2314.02 . Racketeering lien; content; filing; notice; effect

A. The state, upon filing a civil action under section 13-2314, upon seizure for forfeiture under chapter 39 of this title or upon charging an offense included in the definition of racketeering in section 13-2301, subsection D, paragraph 4 or a violation of section 13-2312, may file a racketeering lien in accordance with this section. A filing fee or other charge is not required for filing a racketeering lien.

B. A racketeering lien shall be signed by the attorney general or the county attorney representing the state in the action and shall set forth the following information:

1. The name of the defendant whose property or interest in property is to be subject to the lien, including as the defendant the name of any corporation, partnership, trust or other entity, including nominees, that are owned or controlled by the defendant.

2. In the discretion of the attorney general or county attorney filing the lien, any aliases or fictitious names of the defendant named in the lien.

3. If known to the attorney general or county attorney filing the lien, the present residence or principal place of business and the date of birth of the person named in the lien.

4. A reference to the proceeding pursuant to which the lien is filed, including the name of the court, the title of the action and the court's file number for the proceeding, if any.

5. The name and address of the attorney representing the state in the proceeding pursuant to which the lien is filed.

6. A statement that the notice is being filed pursuant to this section.

7. The amount which the state claims in the action or, with respect to property or an interest in property which the state asserts is subject to forfeiture, a description of the property or interest in property.

8. If known to the attorney general or county attorney filing the lien, a description of property in which the defendant has an interest AND which is available to satisfy a judgment entered in favor of the state.

9. Such other information as the attorney general or county attorney filing the lien deems appropriate.

C. The attorney general or the county attorney filing the lien may amend a lien filed under this section at any time by filing an amended racketeering lien in accordance with this section which identifies the prior lien amended. If the action in which the lien was filed is subsequently dismissed, the attorney general or county attorney filing the lien shall file a notice of release of the lien within twenty days after the final order of dismissal. The notice of release shall be filed with the same agency with which the original lien was filed.

D. The attorney general or the county attorney filing the lien shall, as soon as practical after filing a racketeering lien, furnish to any person named in the lien a notice of the filing of the lien. Failure to furnish notice under this subsection does not invalidate or otherwise affect a racketeering lien filed in accordance with this section.

E. In an action in which a racketeering lien has been filed covering property, a hearing seeking to release or extinguish the lien may be requested by the person named in the racketeering lien or a person claiming to possess a valid lien or an interest under subsection J of this section with respect to property covered in the lien.

F. After the person requests a hearing, the court shall enter an order to show cause setting a hearing date. The hearing date shall be at least five days but not more than ten days from the date the hearing was requested. The order to show cause setting the hearing and a copy of the entire hearing request shall be personally served on the filing agency by the person requesting the hearing as soon as possible but not less than five days before the date of the hearing. The filing agency is entitled to obtain discovery from and demand disclosure pursuant to rule 26.1 of the rules of civil procedure from a person requesting a hearing pursuant to this section.

G. If the person filing the request for a hearing pursuant to this section shows that the person possesses a valid lien or interest under subsection J of this section with respect to the property described in the request and either that probable cause does not then exist to support the racketeering lien and the property is not otherwise subject to attachment or encumbrance by the filing agency, the court shall enter an order extinguishing the racketeering lien or releasing the person's property interest , from the racketeering lien or shall enter any other order adequately protecting the person's rights, lien or interest. If the person filing the request for a hearing pursuant to this section establishes that probable cause does not exist to support the racketeering lien or forfeiture action and the lawsuit is not well grounded in fact, the court shall award the person costs and reasonable attorney fees to be assessed against and paid from monies acquired pursuant to sections 13-2314.01 and 13-2314.03.

H. A racketeering lien is perfected against interests in personal property by filing the lien with the secretary of state, except that in the case of titled motor vehicles and trailers it shall be filed with the DEPARTMENT OF motor vehicle division of the department of transportation VEHICLES . A racketeering lien is perfected against interests in real property by filing the lien with the county recorder of the county in which the real property is located. The state may give such additional notice of the lien as it deems appropriate.

I. The filing of a racketeering lien in accordance with this section creates a lien in favor of the state in all of the following:

1. Any interest of the defendant, in real property situated in the county in which the lien is filed, then maintained or thereafter acquired in the name of the defendant identified in the lien.

2. Any interest of the defendant, in personal property situated in this state, then maintained or thereafter acquired in the name of the defendant identified in the lien.

3. Any property identified in the lien to the extent of the defendant's interest therein.

J. The filing of a racketeering lien under this section is notice to all persons dealing with the person or property identified in the lien of the state's claim. The lien created in favor of the state in accordance with this section is superior and prior to the claims or interests of any other person, except a person possessing an interest that is exempt from forfeiture under chapter 39 of this title AND that is:

1. A valid lien perfected prior to the filing of the racketeering lien.

2. In the case of real property, an interest acquired and recorded prior to the filing of the racketeering lien.

3. In the case of personal property, an interest acquired prior to the filing of the racketeering lien.

4. In the case of community property, an interest acquired prior to the filing of the racketeering lien by a spouse whose own personal conduct does not provide a basis for the filing of the racketeering lien.

K. Upon entry of judgment in favor of the state, the state may proceed to execute thereon as in the case of any other judgment, except that:

1. In order to preserve the state's lien priority as provided in this section the state shall, in addition to such other notice as is required by law, give at least thirty days' notice of such execution to any person possessing at the time such notice is given an interest recorded subsequent to the date the state's lien was perfected.

2. If a person's property or interest in property has been released from the racketeering lien, the property or interest in property released from the lien shall not be subject to any judgment liens or any order or injunction, receivership, writ, attachment, garnishment or other remedy authorized under section 13-2314 or available under chapter 39 of this title as a result of an act or omission occurring prior to the filing of the released lien and known to the filing agency at the time the lien was filed.

L. This section shall not limit the right of the state to obtain any order or injunction, receivership, writ, attachment, garnishment or other remedy authorized under section 13-2314 or appropriate to protect the interests of the state or available under other applicable law, including, without limitation, title 44, chapter 8, article 1 and chapter 39 of this title.

Sec. 9. Section 13-3111, Arizona Revised Statutes, is amended to read:

13-3111 . Minors prohibited from carrying or possessing firearms; exceptions; seizure and forfeiture; penalties

A. Except as provided in subsection B of this section, an unemancipated person who is under eighteen years of age and who is unaccompanied by a parent, grandparent or guardian, or a certified hunter safety instructor or certified firearms safety instructor acting with the consent of the unemancipated person's parent or guardian, shall not knowingly carry or possess on his person, within his immediate control, or in or on a means of transportation a firearm in any place that is open to the public or on any street or highway or on any private property except private property owned or leased by the minor or the minor's parent, grandparent or guardian.

B. This section does not apply to a person who is fourteen, fifteen, sixteen or seventeen years of age and is any of the following:

1. Engaged in lawful hunting or shooting events or marksmanship practice at established ranges or other areas where the discharge of a firearm is not prohibited.

2. Engaged in lawful transportation of an unloaded firearm for the purpose of lawful hunting.

3. Engaged in lawful transportation of an unloaded firearm between the hours of 5:00 a.m. and 10:00 p.m. for the purpose of shooting events or marksmanship practice at established ranges or other areas where the discharge of a firearm is not prohibited.

C. If the minor is not exempt under subsection B of this section and is in possession of a firearm, a peace officer shall seize the firearm at the time the violation occurs.

D. A person who violates subsection A of this section is a delinquent child and shall be subject to the following penalties:

1. For an offense involving an unloaded firearm, a fine of not more than two hundred fifty dollars, and the court may order the suspension or revocation of the person's driver's DRIVER license until the person reaches eighteen years of age. If the person does not have a driver's DRIVER license at the time of the adjudication, the court may direct that the department of transportation MOTOR VEHICLES not issue a driver's DRIVER license to the person until the person reaches eighteen years of age.

2. For an offense involving a loaded firearm, a fine of not more than five hundred dollars, and the court may order the suspension or revocation of the person's driver's DRIVER license until the person reaches eighteen years of age. If the person does not have a driver's DRIVER license at the time of the adjudication, the court may direct that the department of transportation MOTOR VEHICLES not issue a driver's DRIVER license to the person until the person reaches eighteen years of age.

3. For an offense involving a loaded or unloaded firearm, if the person possessed the firearm while the person was the driver or an occupant of a motor vehicle, a fine of not more than five hundred dollars and the court shall order the suspension or revocation of the person's driver's DRIVER license until the person reaches eighteen years of age. If the person does not have a driver's DRIVER license at the time of adjudication, the court shall direct that the department of transportation MOTOR VEHICLES not issue a driver's DRIVER license to the person until the person reaches eighteen years of age. If the court finds that no other means of transportation is available, the driving privileges of the child may be restricted to travel between the child's home, school and place of employment during specified periods of time according to the child's school and employment schedule.

E. A violation of this section shall be charged, heard and disposed of pursuant to section 8-232.

F. Firearms seized pursuant to subsection C of this section shall be held by the law enforcement agency responsible for the seizure until the charges have been adjudicated or disposed of otherwise. Upon adjudication of a person for a violation of this section, the court shall order the firearm forfeited. However, the law enforcement agency shall return the firearm to the lawful owner if the identity of that person is known.

G. If the court finds that the parent or guardian of a minor found responsible for violating this section knew or reasonably should have known of the minor's unlawful conduct and made no effort to prohibit it, the parent or guardian is jointly and severally responsible for any fine imposed pursuant to this section or for any civil actual damages resulting from the unlawful use of the firearm by the minor.

H. This section is supplemental to any other law imposing a criminal penalty for the use or exhibition of a deadly weapon. A minor who violates this section may be prosecuted and convicted for any other criminal conduct involving the use or exhibition of the deadly weapon.

I. This section applies only in counties with populations of more than five hundred thousand persons according to the most recent decennial census. Counties with populations of five hundred thousand persons or less according to the most recent decennial census, or cities or towns within those counties, may adopt an ordinance identical to this section.

Sec. 10. Section 13-3821, Arizona Revised Statutes, is amended to read:

13-3821 . Persons required to register; procedure; identification card; classification

A. A person who has been convicted of a violation or attempted violation of any of the following offenses or who has been convicted of an offense committed in another jurisdiction which if committed in this state would be a violation or attempted violation of any of the following offenses shall, within ten days after the conviction or within ten days after entering any county of this state for the purpose of residing or setting up a temporary domicile for ten days or more, register with the sheriff of the county in which the person resides or sets up temporary domicile:

1. Sexual abuse pursuant to section 13-1404 if the victim is under fifteen years of age.

2. Sexual conduct with a minor pursuant to section 13-1405.

3. Sexual assault pursuant to section 13-1406.

4. Sexual assault of a spouse pursuant to section 13-1406.01.

5. Molestation of a child pursuant to section 13-1410.

6. Continuous sexual abuse of a child pursuant to section 13-1417.

7. Commercial sexual exploitation of a minor pursuant to section 13-3552.

8. Sexual exploitation of a minor pursuant to section 13-3553.

9. A second or subsequent violation of indecent exposure to a person under the age of fifteen years pursuant to section 13-1402, subsection B.

10. A second or subsequent violation of public sexual indecency to a minor under the age of fifteen years pursuant to section 13-1403, subsection B.

B. Notwithstanding subsection A of this section, the judge who sentences a defendant for any violation of chapter 14 or 35.1 of this title or for an offense for which there was a finding of sexual motivation pursuant to section 13-118 may require the person who committed the offense to register pursuant to this section.

C. The court may require a person who has been adjudicated delinquent for an act that would constitute an offense specified in subsection A or B of this section to register pursuant to this section. Any duty to register under this subsection shall terminate when the person reaches the age of twenty-five.

D. At the time of registering, the person shall sign a statement in writing giving such information as required by the director of the department of public safety, including all names by which the person is known. The sheriff shall fingerprint and photograph the person and within three days thereafter shall send copies of the statement, fingerprints and photographs to the criminal identification section within the department of public safety and the chief of police, if any, of the place where the person resides.

E. Upon the person's initial registration and every three years after the person's initial registration, the person shall obtain a nonoperating identification license or a driver's DRIVER license from the DEPARTMENT OF motor vehicle division in the department of transportation VEHICLES . NOTWITHSTANDING SECTION 28-3171, the person shall not receive a driver's DRIVER license that is renewable for a period that exceeds five years, six months after the person's birth date BIRTHDAY . The DEPARTMENT OF motor vehicle division VEHICLES shall send a copy of the photograph to the criminal identification section of the department of public safety.

F. The clerk of the superior court in the county in which a person has been convicted of a violation of any offense listed under subsection A of this section shall notify the sheriff in that county of the conviction within ten days after entry of the judgment.

Sec. 11. Section 13-4307, Arizona Revised Statutes, is amended to read:

13-4307 . Notice of pending forfeiture

Whenever notice of pending forfeiture is required under this chapter it shall be given or provided in one of the following ways and is effective at the time of personal service, publication or the mailing of written notice, whichever is earlier:

1. If the owner's or interest holder's name and current address are known by either:

(a) Personal service.

(b) Mailing a copy of the notice by certified mail to the address.

2. If the owner's or interest holder's interest is required by law to be on record with a county recorder's office, the secretary of state, the department of transportation motor vehicle division VEHICLES , the game and fish department, or another state or federal licensing agency in order to perfect an interest in the property, but his THE OWNER'S OR INTEREST HOLDER'S current address is not known, by mailing a copy of the notice by certified mail to any address on the record.

3. If the owner's or interest holder's address is not known, and is not on record as provided in paragraph 2, or if his THE OWNER'S OR INTEREST HOLDER'S interest is not known, by publication in one issue of a newspaper of general circulation in the county in which the seizure occurs.

Sec. 12. Section 13-4701, Arizona Revised Statutes, is amended to read:

13-4701 . Definitions

In this chapter, unless the context otherwise requires:

1. "Chop shop" means any building, lot or other premises in which one or more persons alters, destroys, disassembles, dismantles, reassembles or stores more than one motor vehicle or watercraft or motor vehicle or watercraft parts from more than one vehicle or watercraft that the person or persons knows were obtained by theft, fraud or conspiracy to defraud with the intent to:

(a) Alter, counterfeit, deface, destroy, disguise, falsify, forge, obliterate or remove the identity of the motor vehicles or motor vehicle parts, including the vehicle identification number for the purpose of misrepresenting or preventing the identification of the motor vehicles or motor vehicle parts.

(b) Sell or dispose of the motor vehicles or motor vehicle parts.

2. "Motor vehicle" means any self-propelled vehicle.

3. "Unidentifiable" means that specially trained investigative personnel who are experienced in motor vehicle theft investigative procedures and motor vehicle identification examination techniques cannot establish the uniqueness of a motor vehicle or motor vehicle part.

4. "Vehicle identification number" means the number that the manufacturer or the United States or a state department of transportation MOTOR VEHICLES assigns to a motor vehicle for the purpose of identifying the motor vehicle or a major component part of the motor vehicle. Vehicle identification number includes any combination of numbers or letters.

5. "Watercraft" has the same meaning as prescribed in section 5-301.

Sec. 13. Section 14-3971, Arizona Revised Statutes, is amended to read:

14-3971 . Collection of personal property by affidavit; ownership of vehicles; affidavit of succession to real property

A. At any time after the death of a decedent, any employer owing wages, salary or other compensation for personal services of the decedent shall pay to the surviving spouse of the decedent the amount owing, not in excess of five thousand dollars, upon being presented an affidavit made by or on behalf of the spouse stating that the affiant is the surviving spouse of the decedent, or is authorized to act on behalf of the spouse, and that no application or petition for the appointment of a personal representative is pending or has been granted in this state.

B. Thirty days after the death of a decedent, any person indebted to the decedent or having possession of tangible personal property or an instrument evidencing a debt, obligation, stock or chose in action belonging to the decedent shall make payment of the indebtedness or deliver the tangible personal property or an instrument evidencing a debt, obligation, stock or chose in action to a person claiming to be the successor of the decedent upon being presented an affidavit made by or on behalf of the successor stating that:

1. The value of all of the personal property in the decedent's estate, wherever located, less liens and encumbrances, does not exceed thirty thousand dollars, except that if the successor of the decedent is claiming as the surviving spouse or as a dependent child of the decedent, the successor's affidavit shall indicate the successor's relationship to the decedent and shall state that the value of all personal property in the decedent's estate, wherever located, less liens and encumbrances, does not exceed the greater of either thirty thousand dollars or the total sums permitted as the allowance in lieu of homestead pursuant to section 14-2402, exempt property pursuant to section 14-2403 and the family allowance pursuant to section 14-2404 in effect on the date of the decedent's death.

2. Thirty days have elapsed since the death of the decedent.

3. No application or petition for the appointment of a personal representative is pending or has been granted in any jurisdiction.

4. The claiming successor is entitled to payment or delivery of the property.

C. A transfer agent of any security shall change the registered ownership on the books of a corporation from the decedent to the successor or successors upon the presentation of an affidavit as provided in subsection B of this section.

D. The DEPARTMENT OF motor vehicle division VEHICLES shall transfer title of a motor vehicle from the decedent to the successor or successors upon presentation of an affidavit as provided in subsection B of this section and upon payment of the necessary fees.

E. No sooner than six months after the death of a decedent, a person or persons claiming as successor or successors to the decedent's interest in real property, including any debt secured by a lien on real property, may file in the court in the county in which the decedent was domiciled at the time of death, or if the decedent was not domiciled in this state then in any county in which real property of the decedent is located, an affidavit describing the real property and the interest of the decedent therein and stating that:

1. The value of all real property in the decedent's estate located in this state, less liens and encumbrances against the real property as of the date of death, does not exceed fifty thousand dollars, except that if the successor of the decedent is claiming as the surviving spouse or as a dependent child of the decedent, the successor's affidavit shall indicate the successor's relationship to the decedent and shall state that the value of all real property in the decedent's estate, wherever located, less liens and encumbrances, does not exceed the greater of either fifty thousand dollars or the total sums permitted as the allowance in lieu of homestead pursuant to section 14-2402, exempt property pursuant to section 14-2403 and the family allowance pursuant to section 14-2404 in effect on the date of the decedent's death. The value of the decedent's interest shall be determined from the full cash value of the property as shown on the assessment rolls for the year in which the decedent died, except that in the case of a debt secured by a lien on real property the value shall be determined by the unpaid principal balance due on the debt as of the date of death.

2. Six months have elapsed since the death of the decedent as shown in a certified copy of the decedent's death certificate attached to the affidavit.

3. No application or petition for appointment of a personal representative is pending or has been granted in any jurisdiction.

4. Funeral expenses, expenses of last illness, and all unsecured debts of the decedent have been paid.

5. The person or persons signing the affidavit are entitled to the real property by reason of the allowance in lieu of homestead and exempt property, by intestate succession as sole heir or heirs, or by devise under a valid last will of the decedent, the original of which is attached to the affidavit or has been probated.

6. No other person has a right to the interest of the decedent in the described property.

7. No federal or Arizona estate tax is due on the decedent's estate.

8. The person or persons signing the affidavit affirm that all statements in the affidavit are true and material and further acknowledge that any false statement may subject the person or persons to penalties relating to perjury and subornation of perjury.

F. The normal filing fee shall be charged for the filing of an affidavit under subsection E of this section unless waived by the court as provided by section 12-301 or 12-302. Upon receipt of the affidavit the registrar, upon determining that the affidavit is complete, shall cause to be issued a certified copy of the affidavit without attachments, and the copy shall be recorded in the office of the recorder in the county where the real property is located.

G. Nothing in this section shall limit the rights of heirs and devisees under section 14-3901.

Sec. 14. Section 14-3972, Arizona Revised Statutes, is amended to read:

14-3972 . Effect of affidavit

A. The person paying, delivering, transferring or issuing personal property or the evidence thereof pursuant to affidavit is discharged and released to the same extent as if he THE PERSON dealt with a personal representative of the decedent. He THE PERSON is not required to see to the application of the personal property or evidence thereof or to inquire into the truth of any statement in the affidavit. If any person to whom an affidavit is delivered refuses to pay, deliver, transfer or issue any personal property or evidence thereof, it may be recovered or its payment, delivery, transfer or issuance compelled upon proof of their right in a proceeding brought for the purpose by or on behalf of the persons entitled thereto. Any person to whom payment, delivery, transfer or issuance is made is answerable and accountable therefor to any personal representative of the estate or to any other person having a superior right.

B. The DEPARTMENT OF motor vehicle division VEHICLES issuing title pursuant to affidavit is discharged and released to the same extent as if it dealt with a personal representative of the decedent. It is not required to see to the application of the personal property or evidence thereof or to inquire into the truth of any statement in the affidavit.

C. A purchaser of real property from or lender to the person or persons designated as successor or successors in a certified copy of an affidavit issued under section 14-3971 and recorded in the county in which the real property is located is entitled to the same protection as a person purchasing from or lending to a distributee who has received a deed of distribution from a personal representative, as provided in section 14-3910.

Sec. 15. Section 14-5503, Arizona Revised Statutes, is amended to read:

14-5503 . Powers of attorney; requirements; revocation

A. An adult, known as the principal, may designate another adult, known as the agent, to make financial or other decisions on that person's behalf by executing a written power of attorney that meets all of the following requirements:

1. Contains language that clearly indicates that the person intends to create the power of attorney and clearly identifies the agent.

2. Is dated and signed or marked by the principal.

3. Is notarized.

4. Is witnessed by a person other than the agent, the agent's spouse, the agent's children or the notary public.

B. In addition to the revocation provisions in section 14-5502, a power of attorney is terminated by the appointment of a conservator unless within thirty days after the agent receives notice of this appointment the agent petitions the court for relief.

C. A power of attorney executed in another jurisdiction of the United States is valid in this state if the power of attorney was validly executed in the jurisdiction in which it was created.

D. Notwithstanding subsection A of this section, the agent may witness a power of attorney executed by a motor vehicle dealer, a title service company or the DEPARTMENT OF motor vehicle division of the department of transportation VEHICLES solely for the purpose of selling a motor vehicle or in the performance of vehicle title and registration activities.

Sec. 16. Section 16-111, Arizona Revised Statutes, is amended to read:

16-111 . Definitions

For the purposes of this article, unless the context otherwise requires:

1. "Applicant" means a person who applies for a driver's DRIVER license.

2. " Driver's DRIVER license" means any class of driver's DRIVER license or a nonoperating identification license issued by the DEPARTMENT OF motor vehicle division of the department of transportation VEHICLES .

3. " Driver's DRIVER license examiner" means an employee of the DEPARTMENT OF motor vehicle division of the department of transportation VEHICLES who is authorized to examine applicants for driver's DRIVER licenses.

Sec. 17. Section 16-112, Arizona Revised Statutes, is amended to read:

16-112 . Driver license voter registration

A. Every person who is applying for a driver's DRIVER license or renewal and who is otherwise qualified to register to vote shall, at the same time and place, be permitted to register to vote by providing the information prescribed by section 16-152. The method used to register voters shall require only the minimum information necessary to prevent duplicate registrations, to enable elections officials to determine voter eligibility and to administer voter registration and election laws. A registration form shall be included for a person who is applying for a driver's DRIVER license renewal by mail.

B. The director of the department of transportation MOTOR VEHICLES and the secretary of state shall consult at least every two years regarding voter registration at driver's DRIVER license offices. The director of the department of transportation MOTOR VEHICLES and the secretary of state shall, after consultation with all county recorders, adopt rules to implement a system permitting driver's DRIVER license applicants to register to vote at the same time and place as they apply for driver's DRIVER licenses. Such rules shall:

1. Bring the license application and voter registration application forms into substantial conformity.

2. Permit the transfer of driver's DRIVER license application, including renewal and change of address, and voter registration information from the department of transportation MOTOR VEHICLES to the voter registration rolls.

3. Respect all rules and statutes of this state concerning the confidentiality of driver's DRIVER license application information.

4. Provide for the manual or electronic generation and transmittal of voter registrations and provide for electronic generation of changes in voter registration information, including address, in conformity with the confidentiality requirements of the national voter registration act of 1993 (P.L. 103-31; 107 Stat. 77; 42 United States Code section 394).

C. The department of transportation MOTOR VEHICLES shall provide to applicants a statement that provides each eligibility requirement for voting, including citizenship, an attestation that the applicant meets each requirement, for the signature of the applicant under penalty of perjury and, in print that is identical to that used in the attestation, the following:

1. A description of the penalties provided by law for the submission of a false voter registration application.

2. A statement that if an applicant declines to register to vote the fact that the applicant has declined to register will remain confidential and will be used only for voter registration purposes.

3. A statement that if an applicant does register to vote the office at which the applicant submits a voter registration application will remain confidential and will be used only for voter registration purposes.

D. The department of transportation MOTOR VEHICLES shall return or mail completed registrations to the county recorder of the county in which the applicant resides within five days after receipt of a completed registration.

Sec. 18. Section 20-236, Arizona Revised Statutes, is amended to read:

20-236 . Civil penalty for failure to respond to a request for verification of financial responsibility

If the director finds after a hearing that, upon certification by the department of transportation MOTOR VEHICLES , an insurer has failed to respond in writing within thirty days to a financial responsibility verification request pursuant to section 28-4143, the director shall impose a civil penalty of not more than two hundred fifty dollars for each violation but not to exceed an aggregate penalty of twenty thousand dollars in any one six-month period.

Sec. 19. Section 20-237, Arizona Revised Statutes, is amended to read:

20-237 . Failure to provide information; penalty

If after a hearing and certification by the department of transportation MOTOR VEHICLES the director of insurance finds that an insurer has failed to comply with the provisions of section 28-4148, the director of insurance shall impose a civil penalty for each violation of not more than two hundred fifty dollars per day for each day the insurer is in violation of section 28-4148. The director of insurance also may suspend the insurer's certificate of authority until the insurer complies with the provisions of section 28-4148. No penalty shall be imposed pursuant to this section if noncompliance is determined by the director of insurance to have been inadvertent or accidental. The burden of proving that the noncompliance was inadvertent or accidental shall be on the insurer.

Sec. 20. Section 20-262, Arizona Revised Statutes, is amended to read:

20-262 . Motor vehicle insurance policy; reduction of rate for older person completing accident prevention course; course requirements

A. An insurer issuing motor vehicle liability insurance policies in this state may provide additional reductions in rates for motor vehicle personal injury and property damage coverage to an insured who:

1. Is at least fifty-five years of age.

2. Within the last three years has successfully completed a driver improvement course:

(a) That is approved by the department of transportation, motor vehicle division VEHICLES .

(b) That includes classroom instruction or practice driving of at least the minimum number of hours that the director of the department of transportation MOTOR VEHICLES requires.

(c) Which is not self-instructed and provides actual classroom or field driving instruction for the minimum number of hours required by the department of transportation MOTOR VEHICLES .

(d) For which the insured has received a certificate that certifies the INSURED'S SUCCESSFUL completion of the course.

B. Upon successfully completing an approved course, the agency sponsoring the course shall issue to each participant a certificate which is the basis of qualification for the premium reduction authorized by this section.

Sec. 21. Section 20-265, Arizona Revised Statutes, is amended to read:

20-265 . Motor vehicle insurance; premium comparisons and complaint ratios

The department of insurance shall compile premium comparisons and complaint ratios for motor vehicle insurance policies that insure six or fewer motor vehicles. The premium comparisons shall reflect premiums for not fewer than five hypothetical insureds for urban areas and five hypothetical insureds for rural areas. The department of insurance shall forward copies of the premium comparisons and complaint ratios to the department of transportation MOTOR VEHICLES . The director of the department of transportation MOTOR VEHICLES in consultation with the director of the department of insurance shall make the copies available to the public.

Sec. 22. Section 21-301, Arizona Revised Statutes, is amended to read:

21-301 . Master jury list

A. Names of prospective jurors to serve on trial and grand juries shall be selected at random from the master jury list of the county.

B. The jury commissioner of each county shall prepare and maintain a current master jury list of eligible juror candidates. The list shall be comprised of the names and addresses of eligible persons who reside in the county and shall include persons on the voter registration list of the county, other persons eligible for jury service who have been licensed pursuant to title 28, chapter 8, article 4 or 5 and persons from other lists as determined by the supreme court. The master jury list shall be prepared so as to avoid duplication of the names of eligible juror candidates.

C. Not later than January 1 following each biennial general election, the county recorder shall provide the jury commissioner with a list containing the names and addresses of all persons qualified to vote at the preceding general election. At least once every six months thereafter the county recorder shall provide the jury commissioner with the names and addresses of all additional persons who have registered as voters since the date of the last list.

D. Upon written request by a county jury commissioner, the director of the department of transportation MOTOR VEHICLES shall furnish and periodically revise a list of the names and addresses of all persons in such county who are at least eighteen years of age and who have been licensed pursuant to title 28, chapter 8, article 4 or 5. No county jury commissioner may disclose information furnished by the director of the department of transportation MOTOR VEHICLES pursuant to this section to any person, organization or agency for any use other than the selection of jurors.

E. In any county in which the selection and drawing of jurors are performed by data processing equipment, the names contained in the master jury list shall be maintained in a uniform format.

Sec. 23. Section 25-320.01, Arizona Revised Statutes, is amended to read:

25-320.01 . Child support arrearage; driver license suspension; hearing

A. If the court finds from the evidence presented at a hearing to enforce a child support order that the obligor has wilfully failed to pay support and continues to wilfully fail to pay child support and is at least two months in arrears, the court shall send a certificate of noncompliance to the department of transportation MOTOR VEHICLES in a form prescribed by the department of transportation MOTOR VEHICLES . The department of transportation MOTOR VEHICLES shall suspend the obligor's driver license pursuant to section 28-3153, subsection A, paragraph 12.

B. The court shall hold a review hearing not more than one hundred twenty days after it issues the certificate to the department of transportation MOTOR VEHICLES . If the obligor establishes at this hearing that the obligor is in compliance with the support order, the court shall send a certificate of compliance to the department of transportation MOTOR VEHICLES . The obligor may then apply for license reinstatement as prescribed by the department of transportation MOTOR VEHICLES and shall pay all applicable fees as prescribed by section 28-3002.

C. A non-IV-D obligee may petition the court for an order to suspend the driver license of a person who is at least two months in arrears on a child support obligation if the non-IV-D obligee complies with the notice requirements of this section. The court may act on this petition in the same manner it acts on other petitions filed under this section.

D. The non-IV-D obligee shall provide notice to the obligor. The notice shall contain the following:

1. A statement that the obligee is entitled to receive child support payments and the monthly amount.

2. A statement that the obligor is in arrears in making child support payments and the amount of the arrearage.

3. A statement that the obligee intends to petition the court for a driver license suspension hearing.

4. A statement that the driver license of the obligor may be suspended if the court finds that the obligor has wilfully failed to pay child support, continues to wilfully fail to pay child support, and is at least two months in arrears.

E. The obligee shall attach a copy of the order of support to the notice. The obligee shall serve the notice by first class mail.

Sec. 24. Section 26-153, Arizona Revised Statutes, is amended to read:

26-153 . Morale, welfare and recreational fund; sources of monies; exemptions

A. A morale, welfare and recreational fund is established as a state fund for morale, welfare and recreational activities and support personnel for the national guard. Support personnel shall be employees of the fund and not of this state. The adjutant general shall administer the fund pursuant to regulations of the general staff, subject to approval of the governor. Monies shall be transmitted to the state treasurer for deposit in the fund from the following sources:

1. Monies transmitted to the state treasurer by the director of the department of transportation MOTOR VEHICLES pursuant to section 28-2415.

2. Monies transmitted to the state treasurer pursuant to section 26-102, subsection B, paragraph 8 or monies generated from recycling activities consistent with federal recycling policies.

3. Any other nonappropriated monies received by the national guard from state and federal revenue producing military activities relating to morale, welfare and recreation.

B. Monies in the fund are from nonappropriated sources, are not subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The adjutant general may establish bank accounts for monies withdrawn from the fund to administer the operations of the morale, welfare and recreational programs.

C. On notice from the adjutant general, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

D. Expenditures of monies in the fund are subject to general staff regulations and are exempt from the procurement code requirements of title 41, chapter 23.

Sec. 25. Section 28-101, Arizona Revised Statutes, is amended to read:

28-101 . Definitions

In this title, unless the context otherwise requires:

1. "Alcohol" means any substance containing any form of alcohol, including ethanol, methanol, propynol and isopropynol.

2. "Alcohol concentration" if expressed as a percentage means either:

(a) The number of grams of alcohol per one hundred milliliters of blood.

(b) The number of grams of alcohol per two hundred ten liters of breath.

3. "Authorized emergency vehicle" means any of the following:

(a) A fire department vehicle.

(b) A police vehicle.

(c) An ambulance or emergency vehicle of a municipal department or public service corporation that is designated or authorized by the department or a local authority.

(d) Any other ambulance, fire truck or rescue vehicle that is authorized by the department in its sole discretion and that meets liability insurance requirements prescribed by the department.

4. "Aviation fuel" means all flammable liquids composed of a mixture of selected hydrocarbons expressly manufactured and blended for the purpose of effectively and efficiently operating an internal combustion engine for use in an aircraft but does not include fuel for jet or turbine powered aircraft.

5. "Bicycle" means a device, including a racing wheelchair, that is propelled by human power and on which a person may ride and that has either:

(a) Two tandem wheels, either of which is more than sixteen inches in diameter.

(b) Three wheels in contact with the ground, any of which is more than sixteen inches in diameter.

6. "Board" means the transportation board.

7. "Bus" means a motor vehicle designed for carrying sixteen or more passengers, including the driver.

8. "Business district" means the territory contiguous to and including a highway if there are buildings in use for business or industrial purposes within any six hundred feet along the highway, including hotels, banks or office buildings, railroad stations and public buildings that occupy at least three hundred feet of frontage on one side or three hundred feet collectively on both sides of the highway.

9. "Combination of vehicles" means a truck or truck tractor and semitrailer and any trailer that it tows but does not include a forklift designed for the purpose of loading or unloading the truck, trailer or semitrailer.

10. "Controlled substance" means a substance so classified under section 102(6) of the controlled substances act (21 United States Code section 802(6)) and includes all substances listed in schedules I through V of 21 Code of Federal Regulations part 1308.

11. "Conviction" means:

(a) An unvacated adjudication of guilt or a determination that a person violated or failed to comply with the law in a court of original jurisdiction or by an authorized administrative tribunal.

(b) An unvacated forfeiture of bail or collateral deposited to secure the person's appearance in court.

(c) A plea of guilty or no contest accepted by the court.

(d) The payment of a fine or court costs.

12. "County highway" means a public road constructed and maintained by a county.

13. "Dealer" means a person who is engaged in the business of buying, selling or exchanging motor vehicles, trailers or semitrailers and who has an established place of business.

14. "Department" means :

(a) FOR THE PURPOSES OF CHAPTER 3, ARTICLES 17, 18 AND 19, CHAPTERS 4 AND 5, CHAPTER 6, ARTICLES 3 AND 4, CHAPTERS 7 THROUGH 16 AND CHAPTER 26 OF THIS TITLE, THE DEPARTMENT OF MOTOR VEHICLES ACTING DIRECTLY OR THROUGH ITS DULY AUTHORIZED OFFICERS AND AGENTS.

(b) FOR THE PURPOSES OF CHAPTER 2, CHAPTER 3, ARTICLES 1 THROUGH 16, CHAPTER 6, ARTICLES 1 AND 2 AND CHAPTERS 17 THROUGH 25 OF THIS TITLE, the department of transportation acting directly or through its duly authorized officers and agents.

15. "Director" means :

(a) FOR THE PURPOSES OF CHAPTER 3, ARTICLES 17, 18 AND 19, CHAPTERS 4 AND 5, CHAPTER 6, ARTICLES 3 AND 4, CHAPTERS 7 THROUGH 16 AND CHAPTER 26 OF THIS TITLE, THE DIRECTOR OF THE DEPARTMENT OF MOTOR VEHICLES.

(b) FOR THE PURPOSES OF CHAPTER 2, CHAPTER 3, ARTICLES 1 THROUGH 16, CHAPTER 6, ARTICLES 1 AND 2 AND CHAPTERS 17 THROUGH 25 OF THIS TITLE, the director of the department of transportation.

16. "Drive" means to operate or be in actual physical control of a motor vehicle.

17. "Driver" means a person who drives or is in actual physical control of a vehicle.

18. "Driver license" means a license that is issued by a state to an individual and that authorizes the individual to drive a motor vehicle.

19. "Farm tractor" means a motor vehicle designed and used primarily as a farm implement for drawing implements of husbandry.

20. "Foreign vehicle" means a motor vehicle, trailer or semitrailer that is brought into this state other than in the ordinary course of business by or through a manufacturer or dealer and that has not been registered in this state.

21. "Golf cart" means a motor vehicle that has not less than three wheels in contact with the ground, that has an unladen weight of less than one thousand eight hundred pounds, that is designed to be and is operated at not more than twenty-five miles per hour and that is designed to carry not more than four persons including the driver.

22. "Hazardous material" means a material, and its mixtures or solutions, that the United States department of transportation determines under 49 Code of Federal Regulations is capable of posing an unreasonable risk to health, safety and property if transported in commerce and that is required to be placarded or marked as required by the department's safety rules prescribed pursuant to chapter 14 of this title.

23. "Implement of husbandry" means a vehicle designed primarily for agricultural purposes and used exclusively in the conduct of agricultural operations, including an implement or vehicle whether self-propelled or otherwise that meets all of the following conditions:

(a) Is used exclusively for carrying products of farming from one part of a farm to another part of the same farm or from one farm to another farm.

(b) Is used solely for agricultural purposes including the preparation or harvesting of cotton, alfalfa, grains and other farm crops.

(c) Is only incidentally operated or moved on a highway whether as a trailer or self-propelled unit.

24. "Local authority" means any county, municipal or other local board or body exercising jurisdiction over highways under the constitution and laws of this state.

25. "Manufacturer" means a person engaged in the business of manufacturing motor vehicles, trailers or semitrailers.

26. "Moped" means a bicycle that is equipped with a helper motor if the vehicle has a maximum piston displacement of fifty cubic centimeters or less, a brake horsepower of one and one-half or less and a maximum speed of twenty-five miles per hour or less on a flat surface with less than a one per cent grade.

27. "Motor driven cycle" means a motorcycle, including every motor scooter, with a motor that produces not more than five horsepower.

28. "Motor vehicle":

(a) Means either:

(i) A self-propelled vehicle.

(ii) For the purposes of the laws relating to the imposition of a tax on motor vehicle fuel, a vehicle that is operated on the highways of this state and that is propelled by the use of motor vehicle fuel.

(b) Does not include a motorized wheelchair or a motorized skateboard. For the purposes of this subdivision:

(i) "Motorized wheelchair" means a self-propelled wheelchair that is used by a person for mobility.

(ii) "Motorized skateboard" means a self-propelled device that has a motor, a deck on which a person may ride and at least two tandem wheels in contact with the ground.

29. "Motor vehicle fuel" includes all products that are commonly or commercially known or sold as gasoline, including casinghead gasoline, natural gasoline and all flammable liquids, and that are composed of a mixture of selected hydrocarbons expressly manufactured and blended for the purpose of effectively and efficiently operating internal combustion engines. Motor vehicle fuel does not include use fuel as defined in section 28-5701, aviation fuel, fuel for jet or turbine powered aircraft or the mixture created at the interface of two different substances being transported through a pipeline, commonly known as transmix.

30. "Motorcycle" means a motor vehicle that has a seat or saddle for the use of the rider and that is designed to travel on not more than three wheels in contact with the ground but excluding a tractor and a moped.

31. "Neighborhood electric vehicle" means a self-propelled electrically powered motor vehicle to which all of the following apply:

(a) The vehicle is emission free.

(b) The vehicle is designed to carry four or fewer persons.

(c) The vehicle is designed to be and is operated at speeds of twenty-five miles per hour or less.

(d) The vehicle has at least four wheels in contact with the ground.

(e) The vehicle has an unladen weight of less than one thousand eight hundred pounds.

32. "Nonresident" means a person who is not a resident of this state as defined in section 28-2001.

33. "Off-road recreational motor vehicle" means a motor vehicle designed primarily for recreational nonhighway all-terrain travel. Off-road recreational motor vehicle does not mean a motor vehicle used for construction, building trade, mining or agricultural purposes.

34. "Operator" means a person who drives a motor vehicle on a highway, who is in actual physical control of a motor vehicle on a highway or who is exercising control over or steering a vehicle being towed by a motor vehicle.

35. "Owner" means:

(a) A person who holds the legal title of a vehicle.

(b) If a vehicle is the subject of an agreement for the conditional sale or lease with the right of purchase on performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, the conditional vendee or lessee.

(c) If a mortgagor of a vehicle is entitled to possession of the vehicle, the mortgagor.

36. "Pedestrian" means any person afoot. A person who uses a manual or motorized wheelchair is considered a pedestrian unless the manual wheelchair qualifies as a bicycle. For the purposes of this paragraph, "motorized wheelchair" means a self-propelled wheelchair that is used by a person for mobility.

37. "Power sweeper" means an implement, with or without motive power, that is only incidentally operated or moved on a street or highway and that is designed for the removal of debris, dirt, gravel, litter or sand whether by broom, vacuum or regenerative air system from asphaltic concrete or cement concrete surfaces, including parking lots, highways, streets and warehouses, and a vehicle on which the implement is permanently mounted.

38. "Public transit" means the transportation of passengers on scheduled routes by means of a conveyance on an individual passenger fare-paying basis excluding transportation by a sight-seeing bus, school bus or taxi or a vehicle not operated on a scheduled route basis.

39. "Reconstructed vehicle" means a vehicle that has been assembled or constructed largely by means of essential parts, new or used, derived from vehicles or makes of vehicles of various names, models and types or that, if originally otherwise constructed, has been materially altered by the removal of essential parts or by the addition or substitution of essential parts, new or used, derived from other vehicles or makes of vehicles. For the purposes of this paragraph, "essential parts" means integral and body parts, the removal, alteration or substitution of which will tend to conceal the identity or substantially alter the appearance of the vehicle.

40. "Residence district" means the territory contiguous to and including a highway not comprising a business district if the property on the highway for a distance of three hundred feet or more is in the main improved with residences or residences and buildings in use for business.

41. "Right-of-way" when used within the context of the regulation of the movement of traffic on a highway means the privilege of the immediate use of the highway. Right-of-way when used within the context of the real property on which transportation facilities and appurtenances to the facilities are constructed or maintained means the lands or interest in lands within the right-of-way boundaries.

42. "School bus" means a motor vehicle that is designed for carrying more than ten passengers and that is either:

(a) Owned by any public or governmental agency or other institution and operated for the transportation of children to or from home or school on a regularly scheduled basis.

(b) Privately owned and operated for compensation for the transportation of children to or from home or school on a regularly scheduled basis.

43. "Semitrailer" means a vehicle that is with or without motive power, other than a pole trailer, that is designed for carrying persons or property and for being drawn by a motor vehicle and that is constructed so that some part of its weight and that of its load rests on or is carried by another vehicle. For the purposes of this paragraph, "pole trailer" has the same meaning prescribed in section 28-601.

44. "State" means a state of the United States and the District of Columbia.

45. "State highway" means a state route or portion of a state route that is accepted and designated by the board as a state highway and that is maintained by the state.

46. "State route" means a right-of-way whether actually used as a highway or not that is designated by the board as a location for the construction of a state highway.

47. "Street" or "highway" means the entire width between the boundary lines of every way if a part of the way is open to the use of the public for purposes of vehicular travel.

48. "Trailer" means a vehicle that is with or without motive power, other than a pole trailer, that is designed for carrying persons or property and for being drawn by a motor vehicle and that is constructed so that no part of its weight rests on the towing vehicle. A semitrailer equipped with an auxiliary front axle commonly known as a dolly is deemed to be a trailer. For the purposes of this paragraph, "pole trailer" has the same meaning prescribed in section 28-601.

49. "Truck" means a motor vehicle designed or used primarily for the carrying of property other than the effects of the driver or passengers and includes a motor vehicle to which has been added a box, a platform or other equipment for such carrying.

50. "Truck tractor" means a motor vehicle that is designed and used primarily for drawing other vehicles and that is not constructed to carry a load other than a part of the weight of the vehicle and load drawn.

51. "Vehicle" means a device in, on or by which a person or property is or may be transported or drawn on a public highway, excluding devices moved by human power or used exclusively on stationary rails or tracks.

52. "Vehicle transporter" means either:

(a) A truck tractor capable of carrying a load and drawing a semitrailer.

(b) A truck tractor with a stinger-steered fifth wheel capable of carrying a load and drawing a semitrailer or a truck tractor with a dolly mounted fifth wheel that is securely fastened to the truck tractor at two or more points and that is capable of carrying a load and drawing a semitrailer.

Sec. 26. Section 28-332, Arizona Revised Statutes, is amended to read:

28-332 . Department of transportation jurisdiction; duties; divisions

A. The exclusive control and jurisdiction over state highways, state routes, state owned airports and all state owned transportation systems or modes are vested in the department of transportation.

B. The department shall:

1. Register motor vehicles and aircraft, license drivers, collect revenues, enforce motor vehicle and aviation statutes and perform related functions.

2. Do multi-modal state transportation planning, cooperate and coordinate transportation planning with local governments and establish an annually updated priority program of capital improvements for all transportation modes.

3. Design and construct transportation facilities in accordance with a priority plan and maintain and operate state highways, state owned airports and state public transportation systems.

4. Investigate new transportation systems and cooperate with and advise local governments concerning the development and operation of public transit systems.

5. Have administrative jurisdiction of transportation safety programs and implement them in accordance with applicable law.

C. In order to carry out the responsibilities enumerated in subsection B, the department is organized into the following divisions:

1. Motor vehicle.

2. 1. Transportation planning.

3. 2. Highways.

4. 3. Aeronautics.

5. 4. Public transit.

6. 5. Administrative services.

Sec. 27. Repeal

Sections 28-369 through 28-375 and sections 28-402 through 28-407 , Arizona Revised Statutes, are repealed.

Sec. 28. Renumber

Sections 28-408, 28-409 and 28-410, Arizona Revised Statutes, are renumbered as sections 28-402, 28-403 and 28-404, respectively.

Sec. 29. Section 28-404, Arizona Revised Statutes, as renumbered by this act, is amended to read:

28-404 . Computer software agreements

A. The director may enter into agreements on behalf of this state with private entities for the distribution, licensing, leasing or sale of computer software developed by the department , except for computer software relating to the motor carrier tax imposed pursuant to chapter 16, article 4 of this title . The private entities that enter into an agreement with the department pursuant to this subsection may only distribute, license, lease or sell the computer software to governmental agencies located outside of this state and to private entities.

B. The department may distribute, license, lease or sell computer software developed by the department to private entities, other agencies or political subdivisions of this state and third parties authorized pursuant to section 28-3006 and chapter 13 of this title . If the department distributes, licenses, leases or sells computer software developed by the department to other agencies or political subdivisions of this state, the department may enter into a site license contract with the agency or political subdivision of this state. Other agencies and political subdivisions of this state and authorized third parties that acquire computer software from the department pursuant to this subsection shall not distribute, license, lease or sell the computer software to any other person.

C. The department may enter into agreements with other agencies and political subdivisions in this state for the maintenance and support of computer software acquired by an agency or political subdivision pursuant to subsection B of this section.

D. The director shall transmit monies generated pursuant to this section to the state treasurer for deposit in the state highway fund established by section 28-6991.

Sec. 30. Repeal

Title 28, chapter 2, article 5, Arizona Revised Statutes, is repealed.

Sec. 31. Transfer and renumber

Title 28, chapter 2, article 6, Arizona Revised Statutes, is transferred and renumbered for placement in title 28, chapter 26, Arizona Revised Statutes, as added by this act, as article 5. The transferred sections 28-481 through 28-490, Arizona Revised Statutes, previously included in title 28, chapter 2, article 6, Arizona Revised Statutes, are renumbered for placement in title 28, chapter 26, article 5, Arizona Revised Statutes, as sections 28-9221 through 28-9230, respectively.

Sec. 32. Section 28-601, Arizona Revised Statutes, is amended to read:

28-601 . Definitions

In this chapter, unless the context otherwise requires:

1. "Commercial motor vehicle" means a motor vehicle or combination of motor vehicles used to transport passengers or property if the motor vehicle either:

(a) Has a gross combined weight rating of twenty-six thousand one or more pounds inclusive of a towed unit with a gross vehicle weight rating of more than ten thousand pounds.

(b) Has a gross vehicle weight rating of twenty-six thousand one or more pounds.

(c) Is a school bus.

(d) Is a bus.

(e) Is used in the transportation of materials found to be hazardous for the purposes of the hazardous materials transportation act (49 United States Code sections 5101 through 5127) and is required to be placarded under 49 Code of Federal Regulations section 172.504, as adopted by the department OF MOTOR VEHICLES pursuant to chapter 14 of this title.

2. "Controlled access highway" means a highway, street or roadway to or from which owners or occupants of abutting lands and other persons have no legal right of access except at such points only and in the manner determined by the public authority that has jurisdiction over the highway, street or roadway.

3. "Crosswalk" means:

(a) That part of a roadway at an intersection included within the prolongations or connections of the lateral lines of the sidewalks on opposite sides of the highway measured from the curbs or, in absence of curbs, from the edges of the traversable roadway.

(b) Any portion of a roadway at an intersection or elsewhere that is distinctly indicated for pedestrian crossing by lines or other markings on the surface.

4. "Explosives" means any chemical compound, mixture or device that is commonly used or intended for the purpose of producing an explosion and that is defined in 49 Code of Federal Regulations part 173.

5. "Flammable liquid" means any liquid that has a flash point of less than one hundred degrees Fahrenheit and that is defined in 49 Code of Federal Regulations section 173.120.

6. "Gross weight" means the weight of a vehicle without a load plus the weight of any load on the vehicle.

7. "Intersection" means the area embraced within the prolongation or connection of the lateral curb lines, or if none, the lateral boundary lines of the roadways of two highways that join one another at, or approximately at, right angles, or the area within which vehicles traveling on different highways joining at any other angle may come in conflict. If a highway includes two roadways thirty or more feet apart, each crossing of each roadway of the divided highway by an intersecting highway is a separate intersection. If the intersecting highway also includes two roadways thirty or more feet apart, each crossing of two roadways of the highways is a separate intersection.

8. "License" means any license, temporary instruction permit or temporary license issued under the laws of this state or any other state that pertain to the licensing of persons to operate motor vehicles.

9. "Motorized wheelchair" means any self-propelled wheelchair that is used by a person for mobility.

10. "Official traffic control device" means any sign, signal, marking or device that is not inconsistent with this chapter and that is placed or erected by authority of a public body or official having jurisdiction for the purpose of regulating, warning or guiding traffic.

11. "Park", if prohibited, means the standing of a vehicle, whether occupied or not, otherwise than temporarily for the purpose of and while actually engaged in loading or unloading.

12. "Pneumatic tire" means a tire in which compressed air is designed to support the load.

13. "Pole trailer" means a vehicle that is all of the following:

(a) Without motive power.

(b) Designed to be drawn by another vehicle and attached to the towing vehicle by means of a reach or pole or by being boomed or otherwise secured to the towing vehicle.

(c) Used ordinarily for transporting long or irregularly shaped loads such as poles, pipes or structural members capable generally of sustaining themselves as beams between the supporting connections.

14. "Police officer" means an officer authorized to direct or regulate traffic or make arrests for violations of traffic rules or other offenses.

15. "Private road or driveway" means a way or place that is in private ownership and that is used for vehicular travel by the owner and those persons who have express or implied permission from the owner but not by other persons.

16. "Railroad" means a carrier of persons or property on cars operated on stationary rails.

17. "Railroad sign or signal" means a sign, signal or device erected by authority of a public body or official or by a railroad and intended to give notice of the presence of railroad tracks or the approach of a railroad train.

18. "Railroad train" means a steam engine or any electric or other motor that is with or without cars coupled to the steam engine or electric or other motor and that is operated on rails.

19. "Roadway" means that portion of a highway that is improved, designed or ordinarily used for vehicular travel, exclusive of the berm or shoulder. If a highway includes two or more separate roadways, roadway refers to any such roadway separately but not to all such roadways collectively.

20. "Safety zone" means the area or space that is both:

(a) Officially set apart within a roadway for the exclusive use of pedestrians.

(b) Protected or either marked or indicated by adequate signs as to be plainly visible at all times while set apart as a safety zone.

21. "Sidewalk" means that portion of a street that is between the curb lines or the lateral lines of a roadway and the adjacent property lines and that is intended for the use of pedestrians.

22. "Solid tire" means a tire that both:

(a) Is made of rubber or other resilient material.

(b) Does not depend on compressed air for the support of the load.

23. "Stop", if required, means complete cessation from movement.

24. "Stop, stopping or standing", if prohibited, means any stopping or standing of an occupied or unoccupied vehicle, except when necessary to avoid conflict with other traffic or in compliance with directions of a police officer or traffic control sign or signal.

25. "Through highway" means a highway or portion of a highway at the entrances to which vehicular traffic from intersecting highways is required by law to stop before entering or crossing and when stop signs are erected as provided in this chapter.

26. "Traffic" means pedestrians, ridden or herded animals, vehicles and other conveyances either singly or together while using a highway for purposes of travel.

27. "Traffic control signal" means a device, whether manually, electrically or mechanically operated, by which traffic is alternately directed to stop and to proceed.

28. "Truck" means a motor vehicle that is designed, used or maintained primarily for the transportation of property.

Sec. 33. Section 28-702.01, Arizona Revised Statutes, is amended to read:

28-702.01 . Maximum speed limit; authority to increase; waste of a finite resource

A. Notwithstanding any other higher maximum speed limit previously established pursuant to any other provision of law, a maximum speed limit on any public highway in this state shall not exceed fifty-five miles per hour. This subsection does not alter an existing maximum speed limit that is less than fifty-five miles per hour and does not prevent the appropriate jurisdiction from establishing, altering or lowering a maximum speed limit that is less than fifty-five miles per hour within its respective jurisdiction.

B. The speed limit for all types of motor vehicles is fifty-five miles per hour on any portion of any public highway that both:

1. Has four or more traffic lanes, the opposing lanes of which are physically separated other than by striping.

2. Had a speed limit for all types of motor vehicles of fifty-five miles per hour or more on November 1, 1973.

C. The director may order the increase of the maximum speed limit prescribed in subsection B of this section to seventy-five miles per hour on an individual highway or on all highways in this state if the governor declares by proclamation that an emergency does not exist and that the receipt of federal highway monies would not be withheld.

D. A person shall not drive a motor vehicle at a speed in excess of fifty-five miles per hour or in excess of a higher maximum speed if changed pursuant to subsection C of this section.

E. If a person is found responsible for violating subsection D of this section and the speed at which the defendant is alleged to have driven as provided in section 28-707, subsection A is sixty-five miles per hour or less, or if the court finds that the defendant violated subsection D of this section and that the speed at which the defendant drove was not in excess of sixty-five miles per hour, the offense is designated as the waste of a finite resource currently in short supply and is a civil traffic violation.

F. If a person is charged with violating and the court finds that the person violated subsection D of this section and if the speed at which the defendant is alleged to have driven as provided in section 28-707, subsection A is more than sixty-five miles per hour, the offense is designated as an unlawful speed and is a civil traffic violation.

G. If a person is found responsible for a civil traffic violation pursuant to subsection E of this section:

1. A department or agency of this state shall not consider the violation for the purpose of determining whether the person's driver license should be suspended or revoked and a court shall not transmit abstracts of records of conviction for the violation to the department OF MOTOR VEHICLES .

2. An insurer shall not consider the violation as a moving traffic violation against the person for the purpose of establishing rates of motor vehicle insurance charged by the insurer and shall not cancel or refuse to renew a policy of insurance because of the violation.

3. The civil penalty shall not exceed fifteen dollars plus the penalty assessments imposed pursuant to sections 12-116.01 and 12-116.02.

4. A report shall not be made under section 28-1559, subsection B.

H. This section does not apply to an interstate system highway located outside of an urbanized area, as defined in section 28-702.04, with a population of fifty thousand or more persons.

Sec. 34. Section 28-857.01, Arizona Revised Statutes, is amended to read:

28-857.01 . Overtaking and passing school bus; report by school bus operator; notification letter

A. The operator of a school bus who observes a violation of section 28-857, subsection A may prepare a signed written report that indicates that a violation occurred. The report shall include:

1. The date, time and approximate location of the violation.

2. The number and state of issuance of the license plate on the vehicle involved in the violation.

3. Identification of the vehicle as an automobile, a station wagon, a truck, a bus, a motorcycle or any other type of vehicle.

4. The color of the vehicle involved in the violation.

B. Within two days after the violation occurs, excluding weekends and holidays, the school bus operator shall send a copy of the report to the director OF THE DEPARTMENT OF MOTOR VEHICLES . On receiving the report, the director OF THE DEPARTMENT OF MOTOR VEHICLES shall promptly mail a notification letter to the last known registered owner of the vehicle. The letter shall include:

1. A notification containing the information included in the bus operator's report and stating that a vehicle registered in the vehicle owner's name was observed passing a school bus loading and unloading children.

2. A complete explanation of the provisions of section 28-857.

3. An explanation that the notification letter is not a police citation but is an effort to call attention to the seriousness of the incident.

Sec. 35. Section 28-909, Arizona Revised Statutes, is amended to read:

28-909 . Vehicle restraints required; exceptions; civil penalty

A. Each front seat occupant of a motor vehicle that is designed for carrying ten or fewer passengers, that is manufactured for the model year 1972 and thereafter and that is required to be equipped with an integrated lap and shoulder belt or a lap belt pursuant to the federal motor vehicle safety standards prescribed in 49 Code of Federal Regulations section 571.208 shall either:

1. Have the lap and shoulder belt properly adjusted and fastened while the vehicle is in motion.

2. If only a lap belt is installed where the occupant is sitting, have the lap belt properly adjusted and fastened while the vehicle is in motion.

B. The operator of a motor vehicle that is subject to the requirements of this section shall require each front seat passenger under sixteen years of age to comply with this section.

C. A peace officer shall not stop or issue a citation to a person operating a motor vehicle on a highway in this state for a violation of this section unless the peace officer has reasonable cause to believe there is another alleged violation of a motor vehicle law of this state.

D. If a person is found responsible for a civil traffic violation under this section, a department or agency of this state shall not consider the violation for the purpose of determining whether the person's driver license should be suspended or revoked. A court shall not transmit abstracts of records of violations of this section to the department OF MOTOR VEHICLES .

E. An insurer shall not consider a civil traffic violation under this section as a traffic violation against the person for the purposes of establishing rates for motor vehicle liability insurance or determining the insurability of the person. An insurer shall not cancel or refuse to renew any policy of insurance because of the violation.

F. This section does not apply to:

1. A child subject to the requirements of section 28-907.

2. A person possessing a written statement from a physician that the person is unable for medical or psychological reasons to wear a lap and shoulder belt or a lap belt.

3. A letter carrier of the United States postal service while the letter carrier is performing the letter carrier's duties.

G. If a person is found responsible for a civil traffic violation under this section, the person is subject to a maximum civil penalty of ten dollars for each violation.

H. The driver of a motor vehicle found responsible for a civil traffic violation of subsection B of this section is subject to a maximum civil penalty of ten dollars for each violation.

Sec. 36. Section 28-1109, Arizona Revised Statutes, is amended to read:

28-1109 . Motor vehicle towing advisory council

A. The motor vehicle towing advisory council is established consisting of the following thirteen members:

1. The director of the department of public safety or the director's designee.

2. The director of the department of transportation MOTOR VEHICLES or the director's designee.

3. Three members of the public who do not have a financial interest in any towing business and who are appointed by the governor.

4. Six members who are registered with the department of public safety to operate a towing and storage business in this state and who are appointed by the governor. Under this paragraph, the governor shall not appoint more than two persons from the same towing and storage organization or association to serve as members concurrently or more than two persons from any one county to serve as members concurrently. The members representing the towing and storage businesses shall be appointed as follows:

(a) Two members who represent the interest and concerns of towing businesses that operate at least one but not more than five articles of towing equipment.

(b) Two members who represent the interest and concerns of towing businesses that operate at least six but not more than twelve articles of towing equipment.

(c) Two members who represent the interest and concerns of towing businesses that operate more than twelve articles of towing equipment.

5. One member who represents a law enforcement agency of an incorporated city or town, who has experience in dealing with towing and storage services and who is appointed by the governor. This member shall represent a law enforcement agency of an incorporated city or town that is not located in the same county that is represented by the member appointed pursuant to paragraph 6 of this subsection.

6. One member who represents a law enforcement agency of a county, who has experience in dealing with towing and storage services and who is appointed by the governor.

B. The members appointed pursuant to subsection A, paragraphs 3 through 6 serve staggered terms of three years unless a member vacates the position. Appointment to fill a vacancy resulting other than from expiration of a term is for the unexpired term only.

C. The advisory council shall:

1. Meet at least four times in each calendar year.

2. Select from its members a person to serve as chairman.

3. Advise and assist the department of public safety concerning matters related to rules governing the design and operation of all tow trucks in this state.

4. Advise and assist the department of public safety in resolving complaints from consumers and tow truck operators. The department of public safety shall provide quarterly to the advisory council information related to the complaints including the number, nature and disposition of the complaints.

5. Establish a mailing list that includes any person who expresses interest in the advisory council's activities. The advisory council shall provide the list to the department of public safety, and the department of public safety shall send notice by first class mail to each person on the list at least fifteen days before the date on which a meeting of the advisory council is scheduled to be held.

6. Submit a report with its findings and recommendations on or before December 1 of each year to the governor, the president of the senate and the speaker of the house of representatives.

D. The department of public safety shall provide staff to support the towing advisory council.

E. Members of the advisory council are not eligible to receive compensation or reimbursement for expenses.

Sec. 37. Section 28-1143, Arizona Revised Statutes, is amended to read:

28-1143 . Fees

A. The department shall collect the following fees:

1. One hundred fifty dollars for each thirty day oversize only envelope permit.

2. Five hundred dollars for a thirty day oversize and overweight envelope permit.

3. Seven hundred fifty dollars for an annual oversize only envelope permit.

4. One thousand five hundred dollars for an annual oversize and overweight envelope permit.

5. Fifty dollars for each power unit that is added and that exceeds the original number of units on the envelope permit as issued.

6. Twenty-five dollars for reissuing an envelope permit to reflect a change in the envelope permit holder's name, address or substitute power units if the reissued permit does not contain a change in the number of power units or the date of expiration.

B. The director shall transmit twenty-five per cent of the fees collected pursuant to this section to the state treasurer for deposit in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 . Subject to legislative appropriation, the director shall use monies deposited in the state highway fund pursuant to this section to carry out the duties imposed by this article.

Sec. 38. Section 28-1632, Arizona Revised Statutes, is amended to read:

28-1632 . Refusal to renew registration; fees

A. On proper notification by a court or political subdivision pursuant to section 28-1633, the department shall refuse to renew the registration of a vehicle if either:

1. The registered owner of a vehicle is delinquent in paying a fine or penalty for a civil or criminal traffic violation and the combined amount of the delinquency exceeds two hundred dollars.

2. The registered owner fails to appear in a criminal traffic case.

B. The court or political subdivision shall make at least two attempts to collect the monies owed by an individual or organization before notifying the department to refuse to renew the vehicle registration of the registered owner.

C. The department may charge a court or political subdivision that chooses to participate in this program a fee that is payable to the department by the court or political subdivision to cover the costs of processing the documents to notify the registered owner that the owner's vehicle registration will not be renewed. The department shall transmit these fees to the state treasurer for deposit in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 .

D. The fees charged by the department to the courts or political subdivisions of this state for processing the documents to notify the registered owner that it is not renewing a person's vehicle registration shall be paid at the same time as the registered owner's outstanding fine or penalty or as part of the penalty for the failure to appear offense for which the vehicle registration was not renewed.

E. This article does not prohibit the department from imposing and collecting additional fees authorized by law.

Sec. 39. Section 28-2004, Arizona Revised Statutes, is amended to read:

28-2004 . Disposition of fees; motor vehicle fund

Except as otherwise provided by statute, the officer collecting the fees and taxes provided in this chapter shall immediately transfer them to the director. The director shall transfer the monies to the state treasurer. The state treasurer shall credit the monies immediately to the Arizona highway user revenue MOTOR VEHICLE fund ESTABLISHED BY SECTION 28-9106 .

Sec. 40. Repeal

Section 28-2010 , Arizona Revised Statutes, is repealed.

Sec. 41. Section 28-2056, Arizona Revised Statutes, is amended to read:

28-2056 . Transfer or registration of vehicle; collection of use tax

A. The registering officer shall collect the use tax imposed under title 42, chapter 8, article 2 at the time of application for a transfer of title or registration of a vehicle. The registering officer shall issue a receipt, in a form prescribed by the department, for the amount of tax paid. The registering officer shall not process an application for transfer of title or registration of any vehicle on which the use tax is imposed under title 42, chapter 8, article 2 until the tax is paid.

B. The department of transportation MOTOR VEHICLES shall notify the department of revenue of taxes collected pursuant to this section. At the end of each month the department of transportation MOTOR VEHICLES shall transmit tax monies collected pursuant to this section to the state treasurer for deposit in the state general fund.

Sec. 42. Section 28-2151, Arizona Revised Statutes, is amended to read:

28-2151 . Registration by mail; postage fund

A. The assessor of any county or the director acting as the registering agent may establish a procedure for mailing registration applications and license plates or license tabs to applicants.

B. For purposes of paying postage incurred under this section, the assessor or director may establish a postage fund and charge the estimated postage incurred under this section to an applicant who registers by mail. The assessor or director shall not charge postage to an applicant who does not register by mail. The assessor shall transfer monies in the assessor's postage fund annually and shall use the monies as provided in section 28-2005. The director may transfer monies in the director's postage fund annually and use the monies as provided in section 28-6993, subsection D 28-9106 .

Sec. 43. Section 28-2155, Arizona Revised Statutes, is amended to read:

28-2155 . One trip registration permit

A. The department may issue a one trip registration permit that allows a person to operate an unregistered vehicle from a specified origin to a specified destination.

B. The one trip registration permit is valid only for the following purposes:

1. Vehicle emissions inspection.

2. Registration or titling.

3. Vehicle inspection by the registering officer.

4. Vehicle repair to comply with an emissions inspection or inspection by the registering officer.

C. A person operating a vehicle with a one trip registration permit shall comply with the mandatory motor vehicle insurance requirements of this state prescribed in chapter 9 of this title.

D. Issuance of a one trip registration permit is prima facie evidence that the vehicle will be used on the highway and that the waiver of the penalty provided by section 28-2162 is not applicable.

E. The department shall prescribe the content and form of the one trip registration permit. The owner or operator of the vehicle shall display the one trip registration permit so that it is clearly visible from outside the vehicle.

F. The registering officer shall not issue more than three one trip registration permits for a vehicle in a twelve month period. The registering officer shall issue a one trip registration permit for not more than three days, excluding weekends and holidays.

G. The fee for the one trip registration permit is prescribed in section 28-2003. The department shall deposit the fee in the county assessor's special registration fund established by section 28-2005 if the assessor is the registering officer or in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 if the director is the registering officer.

Sec. 44. Section 28-2156, Arizona Revised Statutes, is amended to read:

28-2156 . Temporary general use registration

A. In lieu of permanent registration, the department may issue a temporary general use registration that allows a person to operate a vehicle for no more than thirty days.

B. The director may authorize issuance of this temporary registration if the person does not qualify for registration under section 28-2154 or 28-2292 or article 10 of this chapter.

C. A person operating a vehicle with a temporary general use registration shall comply with the mandatory motor vehicle insurance requirements of this state prescribed in chapter 9, article 4 of this title.

D. The department shall prescribe the content and form of the temporary general use registration application. The owner or operator of the vehicle shall display the temporary general use registration so that it is clearly visible from outside the vehicle.

E. The registering officer shall not issue more than one temporary general use registration for a vehicle in a twelve month period.

F. At the time of application for a temporary general use registration, the applicant shall submit for inspection proper evidence of ownership or authorized possession of the vehicle.

G. The fee for the temporary general use registration is as prescribed in section 28-2003. The registering officer shall deposit one dollar of the fee in the county assessor's special registration fund established by section 28-2005 if the assessor is the registering officer or in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 if the director is the registering officer.

Sec. 45. Section 28-2166, Arizona Revised Statutes, is amended to read:

28-2166 . Registration of vehicle rented without a driver; liability insurance; joint liability; violation; classification; definition

A. The department of transportation MOTOR VEHICLES shall not allow an owner who is engaged in the business of renting or who intends to rent a motor vehicle without a driver to register the motor vehicle until either:

1. The owner has procured public liability insurance with an insurance company approved by the department of insurance.

2. The owner has furnished to the department of transportation MOTOR VEHICLES satisfactory proof of the owner's ability to respond in damages in the amount of fifteen thousand dollars if one motor vehicle is registered and ten thousand dollars for each additional motor vehicle. Proof of the ability to respond in damages in the amount of one hundred thousand dollars is sufficient for any number of motor vehicles.

B. The policy of insurance required by subsection A shall:

1. Insure the renter against:

(a) Liability arising from the renter's negligence in the operation of the rented motor vehicle in an amount of at least fifteen thousand dollars for any one person injured or killed and thirty thousand dollars for any number more than one injured or killed in any one accident.

(b) Liability of the renter for property damage in the amount of at least ten thousand dollars for any one accident.

2. Cover the liability of the renter to a passenger in the rented motor vehicle unless the owner gives the renter a written notice that the policy does not cover the liability.

C. The public liability insurance or the obligation of a self-insured owner pursuant to this section is primary coverage to any other available insurance coverage for any damages and injury caused by a renter.

D. The owner regulated by this section:

1. Is not an insurer and has no obligation to provide a defense after the owner has tendered its limits to either the insured party or the next available coverage for a renter in a situation if a renter has caused property damage or personal injuries. The obligation of any other insurance company to provide a defense if a renter is alleged to have caused property damages or personal injuries shall be determined in accordance with the specific provisions of the applicable policy.

2. In any situation in which damages or injuries are caused by a person who is operating a motor vehicle and who is not authorized by the written rental agreement to do so, has a right of subrogation against the person who rented the motor vehicle for damages that are caused to the owner and that arose out of the unauthorized operation of the owner's motor vehicle.

3. Except as provided in paragraph 2 of this subsection, has no other right of subrogation against the person who rented the motor vehicle.

E. The department of transportation MOTOR VEHICLES shall cancel the registration of a motor vehicle rented without a driver if the owner has failed to comply with this section.

F. The owner of a motor vehicle who rents it to another without a driver, other than as a bona fide transaction involving the sale of the motor vehicle, without having procured the required public liability insurance or without qualifying as a self-insurer pursuant to section 28-4007 with at least the minimum limits prescribed in subsection A of this section is jointly and severally liable with the renter for damage caused by the negligence of the renter operating the motor vehicle.

G. The owner of a motor vehicle who rents a motor vehicle without a driver, other than as a bona fide transaction involving the sale of the motor vehicle, without first complying with this section is guilty of a class 2 misdemeanor.

H. As used in this section, owner engaged in the business of renting or who intends to rent a motor vehicle without a driver does not include a person who operates a golf course that rents golf carts that are intended to be used primarily for playing a round of golf and that are only incidentally operated or moved on a highway.

I. As used in this section, "renter" includes any person operating a motor vehicle with permission of the person who has rented it.

Sec. 46. Section 28-2202, Arizona Revised Statutes, is amended to read:

28-2202 . Fleet registration; requirements; fees

A. In lieu of the staggered vehicle registration requirements of section 28-2159, a person may register a fleet on an annual basis so that the registration for all vehicles in the fleet expires in the same month.

B. The director shall approve the request for fleet registration if the applicant, at least thirty days before the registration date:

1. Provides an application containing information necessary for qualification as a fleet registrant.

2. Provides a list of all vehicles to be included in the fleet.

3. Pays a one time filing fee of one hundred dollars that the director shall transmit to the state treasurer for deposit in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 .

Sec. 47. Section 28-2206, Arizona Revised Statutes, is amended to read:

28-2206 . Additions to fleet; fee

A. If a vehicle is added to the fleet during the registration year, the director shall discount all fees required for registration as prescribed by law.

B. In addition to all registration fees, the registrant shall pay a two dollar identification fee for each vehicle added to the fleet. The director shall transmit the identification fee to the state treasurer for deposit in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 .

Sec. 48. Section 28-2269, Arizona Revised Statutes, is amended to read:

28-2269 . Proportional registration or alternative procedure agreements; transfer of license plates

A. Notwithstanding section 28-2263, beginning no later than January 1, 1998 a registrant may transfer license plates issued pursuant to this article to another vehicle registered in the registrant's name if the vehicle requires license plates of the same format and if all of the following conditions are met:

1. The registrant makes proper application to the director, the director's agent pursuant to section 28-2002 or a third party authorized pursuant to chapter 13, article 1 of this title.

2. The registrant pays any fees and taxes required to register the vehicle less any amount credited pursuant to subsection C of this section.

B. If the other vehicle requires license plates of a different format than the license plates that the registrant wishes to transfer, the registrant shall either surrender the license plates to the department or an authorized third party or submit an affidavit of license plate destruction as prescribed by the director. On surrender of the license plates or submission of an affidavit of license plate destruction, the department shall furnish new license plates of the proper format to the registrant under the same conditions set forth in subsection A of this section.

C. A registrant who transfers license plates pursuant to subsection A of this section or who surrenders license plates or submits an affidavit of license plate destruction pursuant to subsection B of this section is entitled to a credit in accordance with the following conditions:

1. The credit is equal to the unexpended vehicle license tax, gross weight fees, commercial registration fees, special plate fees and lightweight motor vehicle motor carrier taxes for the current registration year of the vehicle to which the plates were last assigned.

2. The unexpended portion of the fees and taxes is equal to one-twelfth of the annual fees and taxes for the current registration year of the vehicle to which the plates were last assigned multiplied by the number of full months left in the registration year on the effective date of the replacement vehicle's registration period.

3. The credit for each fee or tax shall be applied only to the similar fee or tax owed on the vehicle to which license plates are transferred or assigned pursuant to this section.

D. It is unlawful for a registrant to knowingly permit license plates to be displayed on a vehicle except as authorized by the department.

E. The director may accept donations from affected registrants to defray the cost of implementation of this section. The director shall deposit any donations received pursuant to this subsection in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 .

Sec. 49. Section 28-2323, Arizona Revised Statutes, is amended to read:

28-2323 . Exemptions from fees; special registration permit

A. An owner of a foreign motor vehicle that is registered and licensed in a state adjoining this state is not required to pay the gross weight fees prescribed in section 28-5433 if all of the following conditions exist:

1. The owner and motor vehicle are domiciled within twenty-five miles of the border of this state.

2. The motor vehicle is used in this state within twenty-five miles of the border.

3. The state in which the owner resides and in which the motor vehicle is registered exempts from payment of weight fees like motor vehicles from this state.

B. An owner who seeks partial or total exemption as provided in subsection A of this section shall apply to the department for a special registration permit. The department shall issue the permit to the vehicle owner if:

1. The department is satisfied that the owner is entitled to an exemption from gross weight fees.

2. The owner pays the portion of fees that are not exempt.

3. The owner signs an affidavit stating that when operated in this state the motor vehicle will be operated within the prescribed border zone and other information related to the permit as prescribed by the department.

C. The permit issued under this section shall be distinctive in form and shall include all of the following:

1. The date the permit is issued.

2. A brief description of the motor vehicle.

3. A statement that the owner has registered the motor vehicle.

D. An owner of a foreign motor vehicle that is registered and licensed in a state adjoining this state and that is exempt from total or partial payment of lieu taxes or use fees and total or partial payment of registration fees pursuant to an agreement authorized by section 28-404 28-9153 is not required to pay that portion of the exempted fees and taxes pursuant to the agreement.

Sec. 50. Repeal

Section 28-2353 , Arizona Revised Statutes, is repealed.

Sec. 51. Section 28-2404, Arizona Revised Statutes, is amended to read:

28-2404 . Special organization plates; special plate fund; definitions

A. An organization may submit a request to the department on a form prescribed by the department for a special organization plate. In the request the organization may propose suggested indicia for the special organization plate that are indicative of the organization. If the department determines the organization meets the requirements of an organization as defined in this section, the department shall submit the request for a special organization plate to the license plate commission established by section 28-2405.

B. The commission shall determine and inform the department whether the requested special organization plate is authorized. The commission shall authorize a special organization plate if the organization meets the following requirements:

1. The primary activity or interest of the organization serves the community, contributes to the welfare of others and is not offensive or discriminatory in its purpose, nature, activity or name.

2. The name of the organization or any part of the organization's purpose does not promote any specific product or brand name that is provided for sale.

3. The purpose of the organization does not promote a specific religion, faith or antireligious belief.

C. If the commission authorizes the special organization plate pursuant to subsection B of this section, section 28-2403 and the following requirements and procedures apply:

1. The department shall not issue the special organization plate unless it receives a sufficient number of applications from qualified applicants to pay for the production and program costs of the plates.

2. The department shall inform the organization of the authorization by the commission of the requested special organization plate, the requirements of this subsection and the number of applications required pursuant to paragraph 1 of this subsection.

3. The organization shall collect and hold applications from its members and the required fees for the special organization plates until the required number of applications, as determined by the department, is received.

4. The organization shall refund all fees to applicants if the required number of applications is not received in the calendar year in which the first application was received or if the department refunds the fees to the organization.

5. The organization shall submit the required number of applications and fees to the department by January 1 of any calendar year.

6. If the department determines that the required number of applications is received, that the applicants are qualified for the requested special plate and that the monies paid for the plates are available to the state, the department shall design and issue the requested special plate within one year after receiving the applications and fees.

D. The determination of the commission of whether to authorize a special organization plate and of the department of whether to issue a special organization plate as required by this section is not subject to the rule making provisions of title 41, chapter 6. The department shall file with the secretary of state a document for publication in the administrative code with the department's rules that names each special organization plate that is authorized and issued pursuant to this section.

E. A special plate fund is established in the state treasury in which monies shall be deposited pending the determination required by subsection C, paragraph 6 of this section. The department shall transmit the fees received with applications for each special organization plate to the state treasurer for deposit in the fund. The department shall administer the fund and shall use the monies in the fund to provide refunds to an organization if special organization plates are not issued. Monies in the fund that are not refunded shall be deposited as required by law. The fund is exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

F. Eight dollars of the fees prescribed in section 28-2402 for original special plates and the renewal of special plates issued under this section are special plate administration fees. If the fees are not refunded and the special plates are issued pursuant to this section, the department shall transmit the special plate administration fees to the state treasurer for deposit in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 to cover administration costs.

G. For the purposes of this section:

1. "Commission" means the license plate commission established by section 28-2405.

2. "Organization" means an entity that is organized as a nonprofit corporation pursuant to title 10, chapter 22 and that either certifies to the department that the organization has at least five hundred members or certifies to the department that the organization has fewer than five hundred members if, based on data requested by the department and provided by the organization, the department determines that the requirements of subsection C, paragraph 1 of this section can be satisfied.

Sec. 52. Section 28-2405, Arizona Revised Statutes, is amended to read:

28-2405 . License plate commission

A. A license plate commission is established. The commission is composed of the following members:

1. A person who is appointed by the speaker of the house of representatives and who serves at the pleasure of the speaker of the house of representatives.

2. A person who is appointed by the president of the senate and who serves at the pleasure of the president of the senate.

3. A person who is appointed by the governor from the governor's office of community and highway safety and who serves at the pleasure of the governor.

4. The superintendent of the highway patrol division or the superintendent's designee.

5. The director of the department of transportation MOTOR VEHICLES or the director's designee.

6. The director of the office of tourism or the director's designee.

7. The director of the state department of corrections or the director's designee.

B. The director of the department of transportation MOTOR VEHICLES or the director's designee shall serve as chairman of the commission. The chairman shall preside at commission meetings and coordinate the activities of the commission and staff implementation of commission actions.

C. All official actions of the commission shall be decided by a majority vote of commission members.

D. The commission shall determine the following:

1. The color and design of license plates.

2. The color of special plates to be the same as and the design of special plates to be similar to the license plates, except for special plates issued pursuant to sections 28-2412, 28-2413, 28-2414, 28-2416, 28-2452, 28-2453, 28-2454 and 28-2455 and article 14 of this chapter.

3. Whether to authorize special organization plates pursuant to section 28-2404.

4. The indicia for special organization plates issued pursuant to section 28-2404.

E. The department shall provide the commission with staff and technical assistance as necessary to perform its functions.

F. Commission members are not eligible to receive compensation, but the members who are appointed pursuant to subsection A, paragraphs 1 and 2 of this section are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.

Sec. 53. Section 28-2412, Arizona Revised Statutes, is amended to read:

28-2412 . Collegiate special plates

A. The department shall issue collegiate special plates that identify each university that is described in section 15-1601. The collegiate special plates shall have the same color and design as the collegiate license plates issued on or before December 31, 1992, except that on the request of a university as described in section 15-1601, the department may revise the color and design of the plates as appropriate for the university.

B. Of the twenty-five dollar fee required by section 28-2402 for original special plates and for renewal of special plates, eight dollars is a special plate administration fee and seventeen dollars is a collegiate plate annual donation.

C. The department shall transmit all special plate administration fees and all collegiate plate annual donations collected pursuant to this section to the state treasurer. The state treasurer shall deposit the special plate administration fees in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 and shall transmit the collegiate plate annual donations to the board of regents for placement in the appropriate university collegiate special plate fund.

D. The request for collegiate special plates may be combined with a request for personalized special plates. This request shall be on a form prescribed by the director and is subject to the fees required for the personalized special plates in addition to the fees required for collegiate special plates.

Sec. 54. Section 28-2413, Arizona Revised Statutes, is amended to read:

28-2413 . Environmental special plates

A. The department shall issue environmental special plates. The environmental special plates shall have the same basic color and design as the environmental license plates issued on or before December 31, 1992, except that the department may make minor alterations of environmental special plates to make the plates more reflective and readable during the daylight and nighttime hours.

B. Of the twenty-five dollar fee required by section 28-2402 for original environmental special plates and for renewal of environmental special plates, eight dollars is a special plate administration fee and seventeen dollars is an environmental plate annual donation.

C. The department shall transmit all special plate administration fees and all environmental plate annual donations collected pursuant to this section to the state treasurer. The state treasurer shall deposit the special plate administration fees in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 and shall deposit the environmental plate annual donations in the environmental special plate fund established by section 37-1015 for disbursement by the state land department for environmental education programs.

Sec. 55. Section 28-2414, Arizona Revised Statutes, is amended to read:

28-2414 . Veteran special plates

A. The department shall issue veteran special plates. The veteran special plates shall contain:

1. A red, white and blue design.

2. An American flag in the center of the plate.

3. The designation "veteran" at the bottom of the plate.

B. Of the twenty-five dollar fee required by section 28-2402 for original veteran special plates and for renewal of veteran special plates, eight dollars is a special plate administration fee and seventeen dollars is a veteran plate annual donation.

C. The department shall transmit all special plate administration fees and all veteran plate annual donations collected pursuant to this section to the state treasurer. The state treasurer shall deposit the special plate administration fees in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 and shall deposit the veteran plate annual donations in the state home for veterans trust fund established by section 41-608.01.

Sec. 56. Section 28-2415, Arizona Revised Statutes, is amended to read:

28-2415 . National guard member special plates

A. The department shall issue national guard member special plates to a person who submits satisfactory proof to the department that the person is or has been a member of the Arizona national guard or the spouse of a person who is or has been a member of the Arizona national guard.

B. Of the twenty-five dollar fee required by section 28-2402 for original national guard member special plates and for renewal of national guard member special plates, eight dollars is a special plate administration fee and seventeen dollars is a national guard member special plate annual donation.

C. The director of the department of transportation shall transmit all special plate administration fees and all national guard special plate annual donations collected pursuant to this section to the state treasurer. The state treasurer shall deposit the special plate administration fees in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 and shall deposit the national guard member special plate annual donations in the morale, welfare and recreational fund established by section 26-153.

D. The department shall not issue special plates pursuant to this section to a person or to the spouse of a person who was discharged from the armed forces under conditions less than honorable.

Sec. 57. Section 28-2416, Arizona Revised Statutes, is amended to read:

28-2416 . Alternative fuel vehicle special plates; use of high occupancy vehicle lanes

A. Beginning on April 1, 1997, a person who owns a motor vehicle that has either been converted or manufactured to use an alternative fuel and the alternative fuel was subject to the use fuel tax imposed pursuant to chapter 16, article 2 of this title before April 1, 1997 shall apply for alternative fuel vehicle special plates pursuant to this section.

B. The department shall issue alternative fuel vehicle special plates to a person who:

1. Owns a motor vehicle that is powered by an alternative fuel and that is registered pursuant to section 28-5805.

2. Pays the alternative fuel vehicle special plate fee prescribed in section 28-2402, except that alternative fuel vehicles powered by hydrogen, electricity or solar energy are exempt from that fee. Of the fee required by section 28-2402 for original alternative fuel vehicle special plates and for renewal of alternative fuel vehicle special plates, eight dollars is a special plate administrative fee. The department shall transmit all special plate administrative fees to the state treasurer. The state treasurer shall deposit the special plate administrative fees in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 .

C. The color and design of the alternative fuel vehicle special plates are subject to the approval of the department of commerce energy office. The director may allow a request for alternative fuel vehicle special plates to be combined with a request for personalized special plates. If the director allows such a combination, the request shall be in a form prescribed by the director and is subject to the fees for the personalized special plates in addition to the fees required for alternative fuel vehicle special plates. Alternative fuel vehicle special plates are not transferable, except that if the director allows alternative fuel vehicle special plates to be personalized a person who is issued personalized alternative fuel vehicle special plates may transfer those plates to another alternative fuel vehicle for which the person is the registered owner or lessee.

D. A person may drive a motor vehicle with alternative fuel special plates or with an alternative fuel identification sticker prescribed in section 28-2511, subsection E in high occupancy vehicle lanes at any time, regardless of occupancy level, without penalty.

E. The department shall mark high occupancy vehicle lane signs to indicate that those lanes may be used by alternative fuel vehicles regardless of the number of occupants. The design of the markings shall be the same as the design of the alternative fuel vehicle identification stickers prescribed in section 28-2511, subsection E.

F. The costs of the high occupancy vehicle lane sign markings required by this section shall be paid from the monies in the Arizona clean air fund established by section 41-1516.

G. If the department publishes maps of the state highway system that are distributed to the general public, the department shall indicate on those maps the approximate location of alternative fuel delivery facilities that are open to the public.

Sec. 58. Section 28-3002, Arizona Revised Statutes, is amended to read:

28-3002 . Fees; driver licenses; disposition

A. The following fees are required:

1. For each original or initial application or renewal application, if a written examination is required, for the following:

(a) Class A driver license, twenty-five dollars.

(b) Class B driver license, twenty-five dollars.

(c) Class C driver license, twelve dollars fifty cents.

(d) Class D driver license issued pursuant to section 28-3171, ten dollars.

(e) Class M driver license issued pursuant to section 28-3171, ten dollars.

2. Except as provided in paragraph 1, for each original, renewal or reinstatement application for a class D or M license:

Age Fee

50 or older $10.00

45-49 $15.00

40-44 $20.00

39 or younger $25.00

3. For each original or initial application or renewal examination, if a written application is required, for the following endorsements to a driver license:

(a) Bus endorsement, ten dollars.

(b) Hazardous materials endorsement, ten dollars.

(c) Tank vehicle endorsement, ten dollars.

(d) Double-triple trailer endorsement, ten dollars.

(e) Motorcycle endorsement, seven dollars.

4. For taking each driving test for a:

(a) Class A driver license, twenty-five dollars.

(b) Class B driver license, twenty-five dollars.

(c) Class C driver license, twelve dollars fifty cents.

(d) Bus endorsement, five dollars.

5. For each application for an instruction permit under:

(a) Section 28-3154 or 28-3156, seven dollars.

(b) Section 28-3155, three dollars.

(c) Section 28-3225, class A, twenty-five dollars.

(d) Section 28-3225, class B, twenty-five dollars.

(e) Section 28-3225, class C, twelve dollars fifty cents.

6. For each renewal application, if a written examination is not required, for a:

(a) Class A driver license and any endorsement, other than a hazardous materials endorsement, to the license, fifteen dollars.

(b) Class B driver license and any endorsement, other than a hazardous materials endorsement, to the license, fifteen dollars.

(c) Class C driver license and any endorsement, other than a hazardous materials endorsement, to the license, ten dollars.

7. For each application for a duplicate of a driver license, four dollars.

8. For each application for a duplicate of an instruction permit, two dollars.

9. In addition to the fees prescribed in paragraph 2, for reinstatement of driving privileges after suspension or disqualification, ten dollars, except as provided in paragraph 11.

10. For each application for an extension by mail of a driver license, five dollars.

11. In addition to the fees prescribed in paragraph 2, for reinstatement of driving privileges that were suspended or denied pursuant to section 28-1385 after completion of the suspension or revocation, fifty dollars.

B. Except as otherwise provided by statute, the director shall immediately transmit fees collected under this section to the state treasurer for immediate deposit in the Arizona highway user revenue MOTOR VEHICLE fund ESTABLISHED BY SECTION 28-9106 .

Sec. 59. Repeal

Section 28-3003 , Arizona Revised Statutes, is repealed.

Sec. 60. Section 28-3158, Arizona Revised Statutes, is amended to read:

28-3158 . Driver license or instruction permit application

A. A person who applies for an instruction permit or for a driver license shall use a form furnished by the department.

B. An applicant shall pay the fee prescribed by section 28-3002 for a driver license or for an instruction permit issued under section 28-3154, 28-3155, 28-3156 or 28-3225. Payment of the fee required by this section entitles the applicant to not more than three attempts to pass the examination within twelve months from the date of the application. The department shall refund an application fee pursuant to section 28-373 28-9130 .

C. An applicant for an instruction permit or a driver license shall give the department satisfactory proof of the applicants' full legal name, date of birth, sex and residence address and that the applicant's presence in the United States is authorized under federal law.

D. The application for an instruction permit or a driver license shall state the following:

1. A brief description of the applicant and any other identifying information required by the department.

2. Whether the applicant has been licensed, and if so, the type of license issued, when the license was issued and what state or country issued the license.

3. Whether the license was suspended or revoked or whether an application was ever refused, and if so, the date of and reason for the suspension, revocation or refusal.

4. If the applicant was never licensed, the applicant's last previous state or country of residence.

5. The name of the state or country in which the principal vehicle the applicant uses is registered and the name of the owner of the vehicle.

6. If the application is for a class A, B or C driver license or instruction permit, the social security number of the applicant unless the application is for a nonresident commercial driver license.

E. On request of an applicant, the department shall allow the applicant to provide on the license or permit a post office box address that is regularly used by the applicant.

F. The department may adopt and implement procedures to deny a driver license or instruction permit to a person who has been deported. The department may adopt and implement procedures to reinstate a person's privilege to apply for a driver license or permit if the person's legal presence status is restored.

G. The department may request an applicant who appears in person for a license, a duplicate license or reinstatement of a driving privilege to complete satisfactorily the vision screening prescribed by the department.

Sec. 61. Section 28-3228, Arizona Revised Statutes, is amended to read:

28-3228 . School bus drivers; requirements; rules; cancellation

A. A person shall not operate a school bus transporting school children unless the person possesses the appropriate license class for the size of school bus being operated that is issued by the department of transportation MOTOR VEHICLES , a bus endorsement that is issued by the department of transportation MOTOR VEHICLES and a school bus certificate that is issued by the department of public safety.

B. To be certified as a school bus driver a person shall do both of the following:

1. Meet and maintain the minimum standards prescribed by this section and rules adopted by the department of administration in consultation with the department of public safety and with the school bus advisory council established by section 28-3053.

2. Complete an initial instructional course on school bus driver safety and training including behind the wheel training.

C. The department of administration in consultation with the department of public safety and with the school bus advisory council established by section 28-3053 shall adopt rules that establish minimum standards for the certification of school bus drivers. In cooperation with local school districts, the department of public safety shall provide for school bus driver safety and training courses. The standards established shall:

1. Include requirements concerning moral character, knowledge of school bus operation, pupil and motor vehicle safety, physical impairments that might affect the applicant's ability to safely operate a school bus or that might endanger the health or safety of school bus passengers, knowledge of first aid, establishment of school bus safety and training courses, a refresher course to be completed on at least a biennial basis and other matters as the department of administration in consultation with the department of public safety and the school bus advisory council established by section 28-3053 prescribes for the protection of the public.

2. Require tests to detect the presence of alcohol or the use of a drug in violation of title 13, chapter 34 that may adversely affect the ability of the applicant to safely operate a school bus.

3. Authorize the performance of hearing tests with or without the use of a hearing aid as provided in 49 Code of Federal Regulations section 391.41.

D. The department of public safety shall require applicants to furnish fingerprints and shall obtain criminal history record information pursuant to section 41-1750. For the purposes of this subsection, the applicant shall pay a fee to the department of public safety to reimburse the department of public safety for the cost of obtaining the applicant's criminal history record information required by this subsection. The fee shall not exceed the actual cost of obtaining the applicant's criminal history record information.

E. The department of public safety shall issue a school bus driver certificate to an applicant who meets the requirements of this section. The certificate is valid if the applicant maintains the minimum standards established by this section.

F. The department of public safety may cancel the certificate if the person's license to drive is suspended, canceled, revoked or disqualified. The department of public safety shall cancel the certificate if the person fails to maintain the minimum standards established pursuant to this section. A person whose application for a certificate is refused or whose certificate is canceled for failure to meet or maintain the minimum standards may request and receive a hearing from the department of public safety.

G. The department of public safety shall enforce the rules adopted pursuant to this section.

Sec. 62. Section 28-3318, Arizona Revised Statutes, is amended to read:

28-3318 . Service of notice

A. The department shall provide written notice to a person possessing a driver license, to an unlicensed driver or to a nonresident driver of the following:

1. A suspension, revocation, cancellation or disqualification of the license or privilege to operate a motor vehicle.

2. Required attendance at training and education sessions.

B. The department shall send the notice by mail to the address provided to the department on the licensee's application or provided to the department pursuant to section 28-448 28-9189 . If an address has not been provided to the department as provided in this subsection, the department shall send the notice to any address known to the department, including the address listed on a traffic citation received by the department.

C. Service of the notice provided by this section is complete on mailing. The department shall provide further service of notice only if the department is notified of a change of address pursuant to section 28-448 28-9189 .

D. Compliance with the mailing provisions of this section constitutes notice of the suspension or revocation for purposes of prosecution under section 28-1383 or 28-3473. The state is not required to prove actual receipt of the notice or actual knowledge of the suspension or revocation.

E. Compliance with the mailing provisions of this section constitutes notice of suspension or restriction for the purposes of suspension or restriction under section 28-3320. The state is not required to prove actual receipt of the notice or actual knowledge of the suspension or restriction.

Sec. 63. Section 28-4133, Arizona Revised Statutes, is amended to read:

28-4133 . Insurance identification cards; documentary evidence; exception

A. An authorized insurer shall issue at least two motor vehicle insurance identification cards for a motor vehicle or automobile liability policy that meets the requirements of section 28-4079.

B. The card shall state that:

1. A person is required to possess evidence of financial responsibility within the motor vehicle.

2. The card meets the requirement.

3. The card is satisfactory evidence if the person is asked by the department of transportation MOTOR VEHICLES to verify financial responsibility on the motor vehicle.

C. All documentary evidence issued by an insurer or an authorized agent of the insurer shall indicate:

1. The name of the insurer as listed with the department of insurance.

2. For the purpose of verifying insurance coverage, the mailing address and telephone number of the insurer or an authorized agent of the insurer.

3. In order to accurately verify insurance coverage, other information as required by the department of transportation MOTOR VEHICLES .

4. If a binder is issued by an authorized agent of an insurer, the name, address and telephone number of the agent.

D. This section does not apply to a commercial vehicle policy that provides automatic coverage for additional or newly acquired vehicles until the policy's expiration date.

Sec. 64. Section 28-4147, Arizona Revised Statutes, is amended to read:

28-4147 . Service of notice

The department shall send written notice to the owner or lessee of a motor vehicle registered pursuant to chapter 7 of this title of any suspension or any financial responsibility verification. The department shall send the notice by mail to the address provided to the department on the registration application or pursuant to section 28-448 28-9189 . Service of notice is complete on mailing.

Sec. 65. Section 28-4151, Arizona Revised Statutes, is amended to read:

28-4151 . Reinstatement fee; fund

A. A person shall pay a fee of not more than fifty dollars for the reinstatement of a motor vehicle registration and license plate as prescribed by the department for the purposes prescribed in this article.

B. The director shall transmit the fees collected under this section to the state treasurer for deposit in the motor vehicle liability insurance enforcement fund established by subsection C.

C. A motor vehicle liability insurance enforcement fund is established consisting of monies received pursuant to this article. The department of transportation shall administer the fund.

Sec. 66. Section 28-4302, Arizona Revised Statutes, is amended to read:

28-4302 . Fees; disposition

A. The following fees are required:

1. For filing each application for a dealer's, manufacturer's, importer's, distributor's, factory branch's, distributor branch's, automotive recycler's or wholesale motor vehicle dealer's license, fifteen dollars.

2. For filing each application for a provisional dealer's, automotive recycler's or wholesale motor vehicle dealer's license filed in conjunction with an application for a dealer's or automotive recycler's license, ten dollars.

3. For each criminal background investigation required under section 28-4364, four hundred sixty dollars , and notwithstanding subsection B of this section and section 28-6501, fees collected pursuant to this paragraph shall be transmitted to the state treasurer for deposit in the state highway fund established by section 28-6991 .

4. For each filing or continuation of a dealer's, manufacturer's, distributor's, importer's, factory branch's, distributor branch's, automotive recycler's or wholesale motor vehicle dealer's license if issued annually, one hundred dollars.

5. For filing or continuing a dealer's branch license if issued annually, fifty dollars.

6. For filing each application for a permit for the off-premises exhibition of motor vehicles or for a special event to exhibit new motor homes, twenty-five dollars.

7. For filing each application for a permit for the off-premises display and sale of motor vehicles, twenty-five dollars.

B. Except as otherwise provided by statute, the director shall immediately transmit fees collected under this section to the state treasurer for immediate deposit in the Arizona highway user revenue MOTOR VEHICLE fund ESTABLISHED BY SECTION 28-9106 .

Sec. 67. Section 28-4332, Arizona Revised Statutes, is amended to read:

28-4332 . Limited exemption; definitions

A. The director shall grant an exemption from the new or used house trailer dealer licensing requirements of this chapter if the person claiming the exemption furnishes satisfactory proof to the director of licensure as a dealer under title 41, chapter 16.

B. The cash deposit or bond posted by the person pursuant to section 41-2179 is subject to the same conditions and inures to the benefit of the same persons as prescribed in sections 28-4362, 28-4405, 28-4406 and 28-4408.

C. A new or used house trailer dealer who claims an exemption pursuant to subsection A of this section shall comply with all other requirements applicable to a new or used house trailer dealer licensed under this chapter. The director of the department of transportation MOTOR VEHICLES may suspend or cancel the license issued pursuant to title 41, chapter 16 pursuant to this chapter. On issuing a final order cancelling or suspending a license issued pursuant to section 41-2176, the director of the department of transportation MOTOR VEHICLES shall notify the director of the department of building and fire safety who shall require the surrender of the license. Section 41-2184 does not apply to this cancellation or suspension.

D. An exemption granted pursuant to subsection A of this section expires on suspension, revocation or nonrenewal of the license issued pursuant to title 41, chapter 16. The director of the department of building and fire safety shall notify the director of the department of transportation MOTOR VEHICLES of any such suspension, revocation or nonrenewal.

E. For the purposes of this section:

1. "House trailer" means a vehicle, other than a motor vehicle, that is built on a chassis designed for being drawn on the highways by a motor vehicle and that is designed for human habitation.

2. "Used house trailer dealer" means a person, other than a new house trailer dealer, who buys, sells, exchanges or offers or attempts to negotiate a sale or exchange of an interest in used house trailers or who is engaged in the business of selling used house trailers.

Sec. 68. Section 28-4364, Arizona Revised Statutes, is amended to read:

28-4364 . Investigation; provisional licenses; fees; definition

A. On the filing of the application for a license, the director shall:

1. Investigate the matters set forth in the license application.

2. Inspect the place from which the applicant proposes to transact business.

3. Investigate other matters as the director deems necessary.

B. The director shall select a date and time to conduct the investigation and inspection as the director determines is reasonable and necessary.

C. The first phase of the criminal background investigation is a criminal history record check pursuant to section 41-1750. On notification by the department of public safety that the applicant has not been convicted of a violation that would prohibit the applicant from obtaining a license, the director of the department of transportation MOTOR VEHICLES may approve an application for a provisional dealer's or automotive recycler's license pending completion of the criminal history record check if the applicant meets all other licensing requirements of this chapter.

D. A provisional motor vehicle dealer's or automotive recycler's license is valid unless revoked by the director or until the applicant receives approval or denial of the application for a motor vehicle dealer's or automotive recycler's license.

E. The director may revoke a provisional motor vehicle dealer's or automotive recycler's license for a violation of this chapter.

F. If a licensee adds or changes a partner, officer, director, agent or stockholder who owns twenty per cent or more of the corporation and who was not included in the criminal background investigation on a prior application, the licensee shall notify the department within thirty days of the change.

G. At the time of notification as required in subsection F of this section, an application, a full set of fingerprints, if applicable, and a fee of four hundred sixty dollars shall be submitted to the department for the purpose of a criminal background investigation.

H. If any individual added or changed by the licensee is found to be ineligible pursuant to section 28-4365, the director, on completion of the investigation, shall advise the licensee and the individual in writing that the license will be revoked, unless the individual is removed from the position, and the grounds for the action.

I. The requirement for a criminal background investigation does not apply to a manufacturer, importer, factory branch or distributor or a person under eighteen years of age on the date the application is filed with the department.

J. A member of the immediate family of a person currently licensed pursuant to this article is only subject to a criminal history record check that includes an inquiry to the criminal identification section of the department of public safety. If the information on the application and the criminal history record check from the department of public safety do not provide any further information that would prohibit the applicant from obtaining a license pursuant to this article, the director shall approve the application. If the application is denied, the applicant may appeal the denial pursuant to section 28-4366. A person applying for licensure pursuant to this subsection shall pay a fee of ninety dollars for the criminal history record check.

K. For the purposes of this section, "member of the immediate family" means a husband, wife, child or grandchild who has been a resident of this state for a minimum period of five consecutive years immediately preceding the date the application is filed with the department.

Sec. 69. Section 28-4404, Arizona Revised Statutes, is amended to read:

28-4404 . Record requirements; vehicles and parts; classification

A. Each licensee shall keep and maintain at the licensee's place of business, or at each of the licensee's places of business if the licensee has more than one, a permanent record in a form prescribed by the director as follows:

1. Recording and describing each of the following:

(a) Each vehicle that is wrecked, dismantled, disassembled or substantially altered by the licensee.

(b) Each major component part that is acquired by the licensee together with a bill of sale signed by a seller whose identity has been verified and the name and address of the person, firm or corporation from which the licensee purchased the vehicle or part.

(c) The following information regarding the wrecked or acquired vehicle that is the source of a major component part:

(i) If previously titled in this or any other state, the certificate of title number.

(ii) The name of the state where last registered.

(iii) The number of the last license plate issued.

(iv) The make and model of the vehicle.

(v) The identification number and serial number of the vehicle.

(vi) The date purchased.

(vii) The disposition of the chassis.

(viii) The name and address of the person from whom a motor vehicle, motor vehicle body or motor vehicle chassis was purchased or otherwise acquired and the date of the purchase.

(ix) The name and address of the person to whom the motor vehicle, motor vehicle body or motor vehicle chassis was sold or otherwise disposed of, the date of the sale and a description of the vehicle, body or chassis by make and model or identification number.

2. Including a bill of sale signed by the seller for any motor vehicle parts other than major component parts acquired by the licensee, identifying the seller by name, address and date of sale.

B. The licensee shall maintain the record at the licensee's established place of business or principal place of business if the licensee is a broker or a wholesale motor vehicle dealer for a period of three years from the date of acquiring each item recorded.

C. Members of a police department, a sheriff's office, the department of transportation MOTOR VEHICLES and the department of public safety may inspect the record kept by the licensee at any time during regular business hours.

D. An automotive recycler shall maintain a similar record of all disabled vehicles that have been towed or transported to the automotive recycler's place of business or to other places designated by the owner of the vehicle or the owner's representative. This record shall specify the make, model and description of the vehicle, name of the owner, number of the license plate, condition of the vehicle and place to which it was towed or transported.

E. Each licensee shall allow any person described in subsection C, during business hours and after reasonable demand, to physically compare the records required to be maintained with the vehicles or major component parts that are located at the licensee's place of business.

F. After reasonable demand by a person under subsection C or E, a person who fails to display the records required to be maintained is guilty of a class 1 misdemeanor.

Sec. 70. Section 28-4498, Arizona Revised Statutes, is amended to read:

28-4498 . Licensed dealer and automotive recycler; cease and desist order

A. If the director has reasonable cause to believe from an investigation made by the director that a licensed motor vehicle dealer or automotive recycler is engaging in business that violates section 28-4336, subsection B or C, the director may immediately issue and serve on the person by personal delivery or certified mail at the business address of record a cease and desist order requiring the person to immediately cease and desist from further engaging in the business on the receipt of the notice. On failure of a licensee to comply with the order, the director, after a hearing, may suspend or cancel the licensee's license or permit pursuant to section 28-4493 and section 28-4494 or 28-4495 or may take action pursuant to section 28-4496.

B. The director of the department of transportation MOTOR VEHICLES shall provide a copy of the cease and desist order to the director of the department of revenue.

Sec. 71. Section 28-4499, Arizona Revised Statutes, is amended to read:

28-4499 . Unlicensed dealer and automotive recycler; cease and desist order

A. If the director has reasonable cause to believe from information furnished to the director or from an investigation made by the director that a person is engaged in a business regulated by this chapter without being licensed as required by law, the director shall immediately issue and serve on the person by personal delivery or certified mail at the person's last known address a cease and desist order requiring the person to immediately cease and desist from further engaging in the business. On failure of the person to comply with the order, the director may conduct a hearing pursuant to section 28-4500.

B. The director of the department of transportation MOTOR VEHICLES shall provide a copy of the cease and desist order to the director of the department of revenue.

Sec. 72. Section 28-4556, Arizona Revised Statutes, is amended to read:

28-4556. Disposition of fees; motor vehicle fund

Except as otherwise provided by statute, the director shall immediately transmit fees collected under this article to the state treasurer for immediate deposit in the Arizona highway user revenue MOTOR VEHICLE fund ESTABLISHED BY SECTION 28-9106 .

Sec. 73. Section 28-4839, Arizona Revised Statutes, is amended to read:

28-4839 . Report; vehicle abandoned in storage; violation; classification; disposition

A. A vehicle that is left in a public garage or parking lot for storage or parking more than fifteen days, that has not been left under a written contract of storage and that has not during that period been removed by the person leaving it is an abandoned vehicle. The party in possession of such a vehicle shall:

1. Report the vehicle on forms prescribed by the director of the department of transportation MOTOR VEHICLES .

2. Submit the report to the director of the department of transportation MOTOR VEHICLES .

3. Submit a copy of the report to the director of the department of public safety.

B. Except if the vehicle inspection prescribed in section 28-4834 is not completed within the prescribed time period due to no fault of the person, a person who fails to make the report to the director of the department of transportation MOTOR VEHICLES and the director of the department of public safety at the end of five days after the fifteen day period forfeits all claims for storage of the vehicle and is guilty of a class 2 misdemeanor.

C. A vehicle that is abandoned by being left in a public garage or parking lot as provided by this section shall be disposed of pursuant to sections 28-4841 and 28-4842.

Sec. 74. Section 28-5104, Arizona Revised Statutes, is amended to read:

28-5104 . Bond requirement

A. A person who applies for authorization pursuant to this article shall submit with the application a bond in a form to be approved by the director and in an amount of at least twenty-five thousand dollars.

B. A surety company authorized to transact business in this state shall execute the bond with the applicant as principal obligor on the bond and the state as obligee. The bond shall be conditioned that the applicant will faithfully comply with all of the provisions of law and that the bond is noncancellable for the period of time for which the authorization to the applicant is issued. Any liability of the surety company terminates on the director's termination of a third party's authorization to perform title and registration functions.

C. The bond inures to the benefit of any person who suffers loss because of any of the following:

1. Nonpayment by the authorized person of any title fee, registration fee or other related fee or tax paid to the third party by that person.

2. Insolvency or discontinuance of business.

3. Failure of the authorized third party to comply with the authorized third party's duties pursuant to this article.

D. The aggregate liability of a surety company for any breach of the conditions of a bond required pursuant to this section shall not exceed the amount of the bond.

E. The bond requirement of this section does not apply to:

1. A department, agency or political subdivision of this state.

2. An Arizona court.

3. An Arizona law enforcement agency or department.

4. A financial institution or enterprise under the jurisdiction of the state banking department or a federal monetary authority.

5. The federal government or any of its agencies.

6. A motor vehicle dealer that is licensed and bonded by the department OF MOTOR VEHICLES or state organization of licensed and bonded motor vehicle dealers.

7. A manufacturer, importer, factory branch or distributor licensed by the department OF MOTOR VEHICLES .

8. An insurer under the jurisdiction of the department of insurance.

9. An owner of a fleet as defined in section 28-2201.

10. A public utility.

11. A tribal government.

12. A title service company that is bonded by the department OF MOTOR VEHICLES .

Sec. 75. Section 28-5105, Arizona Revised Statutes, is amended to read:

28-5105 . Criminal background investigation

A. An applicant and each partner, officer, director, agent or stockholder owning twenty per cent or more of a corporation seeking authorization pursuant to this article shall provide a full set of fingerprints and a fee of four hundred sixty dollars to enable the department to conduct a criminal background investigation. The criminal background investigation does not apply if either:

1. The applicant is exempt pursuant to subsection H of this section.

2. The applicant is currently licensed pursuant to chapter 10 of this title and the applicant and each partner, officer, director, agent or stockholder owning twenty per cent or more of a corporation have submitted to a criminal background investigation as prescribed by this section during the past five years.

B. The director shall deny an application to act as a third party if an individual included in the application has either:

1. Been convicted of a felony in any state, territory or possession of the United States or any foreign country.

2. Made a misrepresentation or misstatement in the application to purposely conceal a matter that would cause the application to be denied.

C. The first phase of the criminal background investigation shall be a criminal history record check pursuant to section 41-1750. On notification by the department of public safety that the applicant has not been convicted of a violation that would prohibit the applicant from obtaining authorization, the director may approve an application for provisional authorization pending completion of the criminal background investigation if the applicant meets all other requirements of this article. The director may revoke a provisional authorization for a violation of this article or chapter 2, 7 or 15 of this title. A provisional authorization is valid unless revoked by the director or until the applicant receives approval or denial of the application for authorization.

D. Within twenty days of completion of the criminal background investigation, the director shall approve or deny the application for authorization. If the application is denied, the director shall advise the applicant in writing of the denial and the grounds for denial. The department or its employees are not liable for any costs incurred by an applicant seeking authorization under this article.

E. Within thirty days after receipt of the notice of denial, the applicant may petition the director in writing for a hearing on the application pursuant to section 28-5107.

F. If the authorized third party adds a partner, officer, director, agent or stockholder who owns twenty per cent or more of the corporation and who was not included in the criminal background investigation on a prior application, the authorized third party shall notify the department within thirty days of the change.

G. At the time of notification pursuant to subsection F of this section, the third party shall submit to the department an application and, if applicable, a full set of fingerprints and a nonrefundable fee of four hundred sixty dollars for the purpose of a criminal background investigation. On completion of the investigation if the individual added or changed by the authorized third party is found to be ineligible pursuant to subsection B of this section, the director shall advise the authorized third party and the individual in writing of the grounds for the action and that the authorization will be revoked unless the individual is removed from the position.

H. The requirement for a criminal background investigation does not apply to:

1. A department, agency or political subdivision of this state.

2. An Arizona court.

3. An Arizona law enforcement agency or department.

4. A financial institution or enterprise under the jurisdiction of the state banking department or a federal monetary authority.

5. The federal government or any of its agencies.

6. A motor vehicle dealer that is licensed and bonded by the department OF MOTOR VEHICLES or a state organization of licensed and bonded motor vehicle dealers.

7. A manufacturer, importer, factory branch or distributor licensed by the department OF MOTOR VEHICLES .

8. An insurer under the jurisdiction of the department of insurance.

9. An owner or registrant of a fleet as defined in section 28-2201.

10. A public utility.

11. A tribal government.

12. A title service company that is bonded by the department OF MOTOR VEHICLES .

I. The director shall transmit background investigation fees collected pursuant to this section to the state treasurer for deposit in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 .

Sec. 76. Section 28-5134, Arizona Revised Statutes, is amended to read:

28-5134. Bond requirement

A. A person who applies for authorization pursuant to this article shall accompany the application with a bond in a form to be approved by the director and in an amount of at least twenty-five thousand dollars.

B. A surety company authorized to transact business in this state shall execute the bond with the applicant as principal obligor on the bond and this state as obligee. The bond shall be conditioned that the applicant will faithfully comply with all of the provisions of law and that the bond is noncancellable without at least sixty days' prior notice to the director. Any liability of the surety company terminates on the director's termination of a third party's authorization to issue licenses.

C. The bond inures to the benefit of any person who suffers loss because of any of the following:

1. Nonpayment by the authorized person of any license fee paid to the third party by that person.

2. Insolvency or discontinuance of business.

3. Failure of the authorized third party to comply with the authorized third party's duties pursuant to this article.

D. The aggregate liability of a surety company for any breach of the conditions of a bond required pursuant to this section shall not exceed the amount of the bond.

E. The bond requirement of this section does not apply to:

1. A department, agency or political subdivision of this state.

2. An Arizona court.

3. An Arizona law enforcement agency or department.

4. A financial institution or enterprise under the jurisdiction of the state banking department or a federal monetary authority.

5. The federal government or any of its agencies.

6. A motor vehicle dealer that is licensed and bonded by the department of transportation MOTOR VEHICLES or a state organization of licensed and bonded motor vehicle dealers.

7. A manufacturer, importer, factory branch or distributor licensed by the department of transportation MOTOR VEHICLES .

8. An insurer under the jurisdiction of the department of insurance.

9. An owner of a fleet as defined in section 28-2201.

10. A public utility.

11. A tribal government.

12. A title service company that is bonded by the department of transportation MOTOR VEHICLES .

Sec. 77. Section 28-5135, Arizona Revised Statutes, is amended to read:

28-5135. Criminal background investigation

A. An applicant and each partner, officer, director, agent or stockholder owning twenty per cent or more of a corporation seeking authorization pursuant to this article shall provide a full set of fingerprints and a fee of four hundred sixty dollars to enable the department to conduct a criminal background investigation. The criminal background investigation does not apply if both:

1. The applicant is either exempt pursuant to subsection H of this section or is currently licensed pursuant to chapter 10 of this title.

2. The applicant and each partner, officer, director, agent or stockholder owning twenty per cent or more of a corporation have submitted to a criminal background investigation as prescribed by this section during the past five years.

B. The director shall deny an application to act as a third party if an individual included in the application has either:

1. Been convicted of a felony in any state, territory or possession of the United States or any foreign country.

2. Made a misrepresentation or misstatement in the application to purposely conceal a matter that would cause the application to be denied.

C. The first phase of the criminal background investigation shall be a criminal history record check pursuant to section 41-1750. On notification by the department of public safety that the applicant has not been convicted of a violation that would prohibit the applicant from obtaining authorization, the director of the department of transportation MOTOR VEHICLES may approve an application for provisional authorization pending completion of the criminal background investigation if the applicant meets all other requirements of this article. The director of the department of transportation MOTOR VEHICLES may revoke a provisional authorization for a violation of this article or chapter 16, article 2 or 4 of this title. A provisional authorization is valid unless revoked by the director or until the applicant receives approval or denial of the application for authorization.

D. Within twenty days of completion of the criminal background investigation, the director shall approve or deny the application for authorization. If the application is denied, the director shall advise the applicant in writing of the denial and the grounds for denial. The department or its employees are not liable for any costs incurred by an applicant seeking authorization under this article.

E. Within thirty days after receipt of the notice of denial, the applicant may petition the director in writing for a hearing on the application pursuant to section 28-5137.

F. If the authorized third party adds a partner, officer, director, agent or stockholder who owns twenty per cent or more of the corporation and who was not included in the criminal background investigation on a prior application, the authorized third party shall notify the department within thirty days of the change.

G. At the time of notification pursuant to subsection F of this section, the third party shall submit to the department an application, a nonrefundable fee of four hundred sixty dollars and, if applicable, a full set of fingerprints for the purpose of a criminal background investigation. If the individual added or changed by the authorized third party is found to be ineligible pursuant to subsection B of this section and on completion of the investigation, the director shall advise the authorized third party and the individual in writing of the grounds for the action and that the authorization will be revoked unless the individual is removed from the position.

H. The requirement for a criminal background investigation does not apply to:

1. A department, agency or political subdivision of this state.

2. An Arizona court.

3. An Arizona law enforcement agency or department.

4. A financial institution or enterprise under the jurisdiction of the state banking department or a federal monetary authority.

5. The federal government or any of its agencies.

6. A motor vehicle dealer that is licensed and bonded by the department of transportation MOTOR VEHICLES or a state organization of licensed and bonded motor vehicle dealers.

7. A manufacturer, importer, factory branch or distributor licensed by the department of transportation MOTOR VEHICLES .

8. An insurer under the jurisdiction of the department of insurance.

9. An owner or registrant of a fleet as defined in section 28-2201.

10. A public utility.

11. A tribal government.

12. A title service company that is bonded by the department of transportation MOTOR VEHICLES .

I. The director shall transmit background investigation fees collected pursuant to this section to the state treasurer for deposit in the state highway MOTOR VEHICLE fund established by section 28-6991 28-9106 .

Sec. 78. Section 28-5203, Arizona Revised Statutes, is amended to read:

28-5203 . Motor carrier safety revolving fund

A. A motor carrier safety revolving fund is established in the state treasury consisting of monies appropriated to the fund by the legislature, monies deposited pursuant to this chapter and monies received from private grants or donations if so designated by the grantor or donor.

B. Monies in the fund are a continuing appropriation to the department OF MOTOR VEHICLES to be used by the department OF MOTOR VEHICLES , the attorney general and the department of public safety to carry out this chapter. The director shall distribute monies in the fund.

C. The director of the department of transportation MOTOR VEHICLES shall make a full accounting of the use of the fund to the director of the department of administration annually or as required by the director of the department of administration.

D. The motor carrier safety revolving fund is exempt from the provisions of section 35-190 relating to lapsing of appropriations.

Sec. 79. Section 28-5204, Arizona Revised Statutes, is amended to read:

28-5204 . Administration and enforcement; rules; exemption

A. In the administration and enforcement of this chapter, the department of transportation MOTOR VEHICLES shall adopt:

1. Reasonable rules it deems proper governing the safety operations of motor carriers, including rules governing safety operations of motor carriers, shippers and vehicles transporting hazardous materials, hazardous substances or hazardous wastes and shall prescribe necessary forms. In determining reasonable rules, the department of transportation MOTOR VEHICLES shall consider:

(a) The nature of the operations and regulation of public service corporations as defined in article XV, sections 2 and 10, Constitution of Arizona.

(b) Rules adopted by the director of environmental quality pursuant to section 49-855.

2. Rules necessary to enforce and administer this chapter, including rules setting forth reasonable procedures to be followed in the enforcement of this chapter and rules adopting transporter safety standards for hazardous materials, hazardous substances and hazardous waste. In adopting the rules, the department shall consider, as evidence of generally accepted safety standards, the publications of the United States department of transportation and the environmental protection agency.

B. Rules adopted by the department of transportation MOTOR VEHICLES also apply to a manufacturer, shipper, motor carrier and driver.

C. The department of public safety shall and a political subdivision may enforce this chapter and any rule adopted pursuant to this chapter by the department of transportation MOTOR VEHICLES . A person acting for a political subdivision in enforcing this chapter is required to be certified by the department of public safety as qualified for the enforcement activities.

D. The department may audit records and inspect vehicles transporting hazardous materials, hazardous wastes and hazardous substances as prescribed in title 49.

E. This section does not apply to a lightweight motor vehicle carrying hazardous materials in an amount of less than one thousand pounds or not more than one hundred ten gallons of combustible liquid as listed in 49 Code of Federal Regulations section 172.504(a) table 2.

Sec. 80. Section 28-5231, Arizona Revised Statutes, is amended to read:

28-5231 . Records requirements; inspection

A. For the purpose of enforcement of this chapter, a manufacturer, shipper and motor carrier shall maintain and keep within this state books, records and other data as required by the department. The manufacturer, shipper or motor carrier shall not destroy the books, records and other data for a period of three years.

B. During usual business hours or at any time if the cause is to protect the public safety, the manufacturer, shipper or motor carrier shall allow employees of the department of public safety or the department of transportation MOTOR VEHICLES to inspect the books, records or other data.

C. To verify the truth and accuracy of a statement, report or return and to determine compliance with safety rules imposed under this chapter, an officer of the department of public safety or any peace officer, during usual business hours or at any time if the cause is to protect the public safety, may examine:

1. Records, books or other data required to be kept by a manufacturer, shipper or motor carrier under this chapter.

2. Equipment and facilities pertinent to the operation.

3. Other books of account, records and data kept by the manufacturer, shipper or motor carrier in any other business in which the manufacturer, shipper or motor carrier also engages.

Sec. 81. Section 28-5235, Arizona Revised Statutes, is amended to read:

28-5235 . Notification; denial of vehicle registration and operating privileges; audits

A. A person who owns or leases a vehicle transporting hazardous materials, hazardous substances or hazardous wastes shall notify the director of all vehicles transporting the materials, substances or wastes in a manner prescribed by the director . Each notification shall BE IN A MANNER PRESCRIBED BY THE DIRECTOR AND SHALL contain the name and current address of the person transporting the materials, substances or wastes and other information the department requires by rule.

B. The department may deny the vehicle registration, the operating privilege or the nonresident operating privilege for any of the following reasons:

1. Failure to pay any applicable fees.

2. Misrepresentation in the application or notification.

3. Failure to comply with the rules of the department.

4. Failure to make vehicles available for inspection or to make records available for audit.

5. Revocation of an operating privilege within the preceding twelve months.

C. The department shall provide for compliance audits pursuant to this chapter and rules adopted pursuant to this chapter. The department of transportation MOTOR VEHICLES shall provide for reciprocity of audits with the department of public safety and the United States department of transportation.

Sec. 82. Section 28-5237, Arizona Revised Statutes, is amended to read:

28-5237 . Noncompliance; hearing; suspension of registration or license; civil penalty

A. The director may conduct a hearing if a law enforcement agency authorized to enforce this chapter alleges that probable cause exists that a manufacturer, shipper, motor carrier or driver refuses to comply with section 28-5231 or has failed to comply with this chapter or a rule adopted pursuant to this chapter.

B. If after reviewing the allegations the director determines that probable cause exists to believe that the manufacturer, shipper, motor carrier or driver is responsible, the director shall issue an order to show cause why the director should not impose any of the following:

1. A suspension of the registrations of any motor vehicles owned or leased by the manufacturer, shipper or motor carrier.

2. A suspension of the driver license or nonresident operating privilege of a driver.

3. A civil penalty on the manufacturer, shipper, motor carrier or driver.

C. The manufacturer, shipper, motor carrier or driver shall respond to the order at a hearing held not more than sixty days after service of written notice. The director shall send the notice by certified mail to the address provided to the department in the agency's report alleging the noncompliance.

D. A finding of responsibility requires that all of the following conditions exist, and the hearing is limited to the following:

1. The respondent refuses to comply with the requirements of section 28-5231 or failed to comply with any other provision of this chapter or a rule adopted pursuant to this chapter.

2. The respondent ordered to appear at the hearing is responsible for the noncompliance and is responsible under this chapter or a rule adopted pursuant to this chapter to effect compliance or to remedy the noncompliance.

3. The law enforcement agency submitting the report served written notice on the respondent that noncompliance exists.

4. A reasonable period of time of at least ten but not more than thirty days has been provided to attain compliance.

5. The department of public safety or the department of transportation MOTOR VEHICLES performed a follow-up inspection or audit.

6. The inspection or audit shows that compliance was not subsequently attained.

E. After consideration of the evidence presented at the hearing and within five days after the hearing, the director shall serve notice of the director's finding and order. If the director enters a finding of responsibility, the director shall both:

1. Impose a civil penalty as prescribed in section 28-5238.

2. Suspend the registrations of any motor vehicles owned or leased by the manufacturer, shipper or motor carrier or suspend the driver license or nonresident operating privilege of a driver.

F. If the manufacturer, motor carrier, shipper or driver fails to appear for a hearing, in addition to any other remedies provided by law, the director shall suspend the registrations of any motor vehicles owned and leased by the manufacturer, shipper or motor carrier or the driver license or the nonresident operating privilege of the driver. The director shall not remove the suspension until the manufacturer, motor carrier, shipper or driver appears for the hearing and all fees required to reinstate vehicle registration or driving privileges prescribed by statute are paid.

Sec. 83. Section 28-5238, Arizona Revised Statutes, is amended to read:

28-5238 . Civil penalty schedule; suspension of registration or license; reinstatement; enforcement

A. If the director imposes a civil penalty on the manufacturer, motor carrier, shipper or driver, the civil penalty is determined pursuant to the following schedule:

1. A minimum civil penalty of one thousand dollars but not more than five thousand dollars, or if the director determines that the manufacturer, motor carrier, shipper or driver failed to attain compliance with a rule relating to hazardous materials, hazardous substances or hazardous wastes, a minimum civil penalty of five thousand dollars but not more than twenty-five thousand dollars.

2. For a second finding of responsibility within a sixty month period involving the same manufacturer, motor carrier, shipper or driver and the same class of violation, as prescribed by subsection E of this section, either:

(a) A minimum civil penalty of five thousand dollars but not more than ten thousand dollars.

(b) If the director determines that the manufacturer, motor carrier, shipper or driver failed to attain compliance with a rule relating to hazardous materials, hazardous substances or hazardous wastes, a minimum civil penalty of ten thousand dollars but not more than twenty-five thousand dollars.

3. For a third and any subsequent finding of responsibility within a sixty month period involving the same manufacturer, motor carrier, shipper or driver and the same class of violation, as prescribed by subsection E of this section, either:

(a) A minimum civil penalty of ten thousand dollars but not more than twenty-five thousand dollars.

(b) If the director determines that the manufacturer, motor carrier, shipper or driver failed to attain compliance with a rule relating to hazardous materials, hazardous substances or hazardous wastes, a minimum civil penalty of fifteen thousand dollars but not more than twenty-five thousand dollars.

B. On the third and any subsequent finding of responsibility within a sixty month period involving the same manufacturer, motor carrier, shipper or driver and the same class of violation, in addition to imposing the civil penalties prescribed in subsection A, paragraph 3 of this section, the director shall suspend the registrations of any motor vehicles owned or leased by the manufacturer, shipper or motor carrier or the driver license or nonresident operating privilege of the driver for thirty days, except that in the case of noncompliance the suspension may exceed thirty days until the department of public safety states in writing to the director of the department of transportation MOTOR VEHICLES that the cause for the finding of responsibility has been remedied.

C. The manufacturer, motor carrier, shipper or driver shall pay the civil penalty imposed in the order to the department no later than ten days after the order is final.

D. If a civil penalty is imposed and if the civil penalty is not paid when due, the director shall suspend the registrations of any motor vehicles owned or leased by the manufacturer, shipper or motor carrier or shall suspend the driver license or nonresident operating privilege of the driver.

E. For the purpose of determining the amount of civil penalty for repeat findings of responsibility for the same class of violation, the director may adopt rules categorizing violations of this chapter or violations of rules adopted under this chapter into the following classes:

1. Equipment.

2. Commodities transport, including hazardous materials, hazardous substances or hazardous wastes.

3. Driver, shipper or manufacturer records or requirements.

4. Other records.

F. In addition to any other requirements imposed in this section, the director shall not reinstate any suspended registrations of the motor vehicles of the manufacturer, shipper or motor carrier or any suspended driver license or nonresident operating privilege of the driver, manufacturer, shipper or motor carrier until both of the following conditions are met:

1. All fees prescribed by statute to reinstate the vehicle registration or driving privileges are paid.

2. Any civil penalty that has been imposed is paid.

G. The director shall immediately transfer all monies from civil penalties imposed under this chapter to the state treasurer who shall deposit the monies in the motor carrier safety revolving fund established by section 28-5203.

H. A city, town or county shall not enact an ordinance or resolution imposing civil penalties against any shipper, manufacturer or motor carrier for a motor carrier safety violation.

I. The attorney general shall enforce this section.

Sec. 84. Section 28-5401, Arizona Revised Statutes, is amended to read:

28-5401 . Disposition of fees

Except as otherwise provided by statute, the director shall immediately transmit fees and taxes collected under this chapter to the state treasurer for immediate deposit in the Arizona highway user revenue MOTOR VEHICLE fund ESTABLISHED BY SECTION 28-9106 .

Sec. 85. Section 28-5616, Arizona Revised Statutes, is amended to read:

28-5616 . Fuel used in watercraft; survey; costs

A. Every three years, the directors of the department of transportation MOTOR VEHICLES , the Arizona game and fish department and the Arizona state parks board shall have a survey conducted by a public or private agency to determine at least the following information:

1. The percentage of the total license taxes paid on motor vehicle fuel that is used for propelling watercraft.

2. The number of days of recreational watercraft use in each county.

B. The survey shall be completed by the fiscal year ending in 1982 and every three years thereafter.

C. The director shall:

1. Use the percentage determined pursuant to subsection A of this section to determine the amount of license taxes collected on the sale of fuel used in watercraft.

2. Except as provided in subsection D of this section, transmit the amount determined pursuant to paragraph 1 of this subsection on a monthly basis to the state treasurer for deposit in the state lake improvement fund to be distributed pursuant to section 5-382.

D. Of the percentage of motor vehicle tax paid on fuel used to propel watercraft, the department of transportation MOTOR VEHICLES shall retain:

1. One per cent to defray administrative expense.

2. An amount equal to the expenses of the survey provided for in subsection A of this section.

Sec. 86. Section 28-5620, Arizona Revised Statutes, is amended to read:

28-5620 . Records and equipment inspections; hearings; use restrictions; violation; costs

A. The director or a deputy, employee or agent authorized by the director may examine during usual business hours records, books, papers, storage tanks and any other equipment of a distributor, purchaser, seller, refund claimant or carrier pertaining to motor vehicle fuel or aviation fuel imported, received, sold, shipped, delivered or used to either:

1. Verify the truth and accuracy of a statement, report, return or claim.

2. Ascertain whether the tax imposed by this article or section 28-8344 has been paid.

3. Determine the financial responsibility of the distributor for the payment of the taxes imposed by this article or section 28-8344.

4. Determine the validity of a refund.

B. In the enforcement of this article, the director may hold hearings, take testimony of persons, issue subpoenas for the purpose of taking testimony, compel attendance of witnesses and conduct investigations the director deems necessary.

C. Except as prescribed in subsection D of this section or except if required to do so by a court, it is unlawful for a person to disclose information acquired by the director or an agent under this section. This subsection does not mean that the information or evidence is privileged if used by this state or an officer of this state in an action for collection of the tax or a prosecution for a violation of this article.

D. Notwithstanding subsection C of this section, the department of transportation MOTOR VEHICLES shall provide information to the department of weights and measures to determine compliance with title 41, chapter 15, article 7. A gasoline dispensing site shall provide the department of transportation MOTOR VEHICLES with information the director of the department of transportation MOTOR VEHICLES requests and in the form that the director of the department of transportation MOTOR VEHICLES determines is necessary for the purposes of this subsection.

E. The director may prescribe forms for required reports or claims for refund or forms of record to be used by distributors.

F. A distributor may maintain records required by this article in this state. If the records are maintained outside this state and on request of the director, the distributor shall make the records available at a location in this state designated by the director. If the records are maintained outside this state and will not be made available at the location designated by the director, the director may require the distributor to whom a records request has been made to pay in advance costs reimbursable for subsistence and travel expenses for the director or an agent of the director to conduct the examination of the records.

Sec. 87. Section 28-5739, Arizona Revised Statutes, is amended to read:

28-5739 . Single trip use fuel tax permit

A. If a use class motor vehicle is propelled by use fuel and is operated in this state in the course of interstate traffic by an unlicensed user, the department may issue, in lieu of a use fuel license, a special single trip use fuel tax permit authorizing operation of the vehicle for a single trip through this state or from a point on the Arizona border to a point in this state and return to the border.

B. The fee for the single trip permit is based on the excise tax due at the rate of forty-nine dollars for more than fifty miles traveled on the highways of this state and twelve dollars for fifty miles or less traveled on the highways of this state. In addition to the fee based on miles traveled in this state, a fee of one dollar is required for each single trip use fuel tax permit issued.

C. The single trip use fuel tax permit:

1. Is valid for ninety-six hours.

2. Allows the purchase of use fuel as provided by section 28-5718.

D. The department:

1. Shall issue a single trip use fuel tax permit in duplicate to an unlicensed user.

2. May issue a single trip use fuel tax permit for a vehicle entering this state at Teec Nos Pos and exiting at Black Rock or entering this state at Black Rock and exiting at Teec Nos Pos even if the vehicle exits and reenters this state during the trip.

3. May issue a special thirty day use fuel tax permit for a use class motor vehicle if all of the following conditions are met:

(a) The vehicle is not in the commercial transportation business.

(b) The vehicle is in this state for a limited period of time.

(c) The vehicle will make limited use of this state's highways.

(d) The applicant pays a fee of ninety-eight dollars.

E. The director may authorize third parties to issue fuel tax permits pursuant to this section in accordance with rules adopted by the director.

F. EXCEPT AS PROVIDED IN SUBSECTION G OF THIS SECTION, THE DIRECTOR SHALL TRANSMIT FEES COLLECTED PURSUANT TO THIS SECTION TO THE STATE TREASURER FOR DEPOSIT IN THE MOTOR VEHICLE FUND ESTABLISHED BY SECTION 28-9106.

F. G. The director shall transmit fees collected pursuant to this section at ports of entry on the border between this state and Mexico to the state treasurer for deposit in the safety enforcement and transportation infrastructure fund established by section 28-6547.

Sec. 88. Section 28-5805, Arizona Revised Statutes, is amended to read:

28-5805 . Motor vehicle powered by alternative fuels; classification; vehicle license tax; definitions

A. A separate classification of motor vehicles is established for purposes of taxation pursuant to article IX, section 11, Constitution of Arizona, that consists of motor vehicles powered by alternative fuels.

B. Notwithstanding section 28-5801, the registering officer shall collect at the time of application for and before registration of the motor vehicle classified under this section an annual license tax of four dollars for each one hundred dollars in value. During the first twelve months of the life of the vehicle as determined by its initial registration, the value is one per cent of the manufacturer's base retail price of the vehicle. During each succeeding twelve month period the value of the vehicle is fifteen per cent less than the value of the preceding twelve month period.

C. The minimum amount of the license tax computed under this section is five dollars per year for each vehicle subject to the tax.

D. Except as specifically provided in this section, the vehicle license tax on a vehicle classified under this section is governed by this article.

E. The owner of a vehicle claiming the special annual license tax rate provided by this section shall provide proof at the time of application and before registration of the vehicle each year as follows:

1. The owner of a vehicle that is purchased new shall provide a certificate from the manufacturer indicating that the vehicle is powered by an alternative fuel.

2. The owner of a vehicle that is not purchased new, that is a converted vehicle or that is assembled by the owner shall provide either:

(a) A certificate issued by the department of environmental quality indicating that the vehicle is powered by liquefied petroleum gas, natural gas, hydrogen, a blend of hydrogen with liquefied petroleum or natural gas, or alcohol fuels that contain not less than eighty-five per cent alcohol by volume.

(b) A certificate issued by the department of transportation MOTOR VEHICLES indicating that the vehicle is powered by either electricity or solar energy.

F. For purposes of this section:

1. "Alternative fuels" means liquefied petroleum gas, natural gas, hydrogen, a blend of hydrogen with liquefied petroleum or natural gas, alcohol fuels that contain not less than eighty-five per cent alcohol by volume, electricity or solar energy.

2. "Motor vehicle" means a vehicle that meets the safety standards of the national highway traffic safety administration.

Sec. 89. Section 28-5808, Arizona Revised Statutes, is amended to read:

28-5808 . Vehicle license tax distribution

A. On the first and the fifteenth calendar day of each month, the director shall distribute thirty-one and one-half per cent of the monies collected by the director pursuant to section 28-5801, except monies deposited in the state general fund, to the state treasurer for deposit in the highway user revenue fund. On the first calendar day, the amount distributed shall include all monies received from the first through the fifteenth calendar day of the preceding month. On the fifteenth calendar day:

1. The amount distributed shall include all monies received from the sixteenth through the last day of the preceding month.

2. The director shall distribute or deposit the remaining monies received pursuant to section 28-5801 during the entire preceding month as follows:

(a) For fiscal year 1997-1998, sixteen and six-tenths per cent to the state treasurer for deposit in the state general fund for general purposes.

(b) For fiscal year 1998-1999, fifteen per cent to the state treasurer for deposit in the state general fund for general purposes.

(c) For fiscal year 1999-2000 and each fiscal year thereafter, twelve per cent to the state treasurer for deposit in the state general fund for general purposes.

(d) Two per cent to the state treasurer for deposit in the state highway fund established by section 28-6991.

(e) Twenty-five per cent to the county general fund.

(f) For fiscal year 1997-1998, one and four-tenths per cent to the state treasurer to be apportioned among the counties for the same use as highway user revenue fund monies on the basis that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state as shown by the most recent United States decennial census.

(g) For fiscal year 1998-1999, three per cent to the state treasurer to be apportioned among the counties for the same use as highway user revenue fund monies on the basis that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state as shown by the most recent United States decennial census.

(h) For fiscal year 1999-2000 and each fiscal year thereafter, six per cent to the state treasurer to be apportioned among the counties for the same use as highway user revenue fund monies on the basis that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state as shown by the most recent United States decennial census.

(i) Twenty-five per cent to the state treasurer for deposit in the state general fund to aid school financial assistance.

(j) Twenty-five per cent to the county treasurer to be distributed to the incorporated cities and towns of the county apportioned in proportion to the population of each as shown by the most recent United States census.

(k) Five per cent in the state highway MOTOR VEHICLE fund established pursuant to section 28-6991 28-9106 .

B. If an incorporated city or town has had no federal enumeration, the supervisors shall both:

1. Appoint a qualified person to take an accurate census of the incorporated city or town.

2. Certify the results to the county treasurer, and the incorporated city or town shall share in the distribution as provided by this section.

Sec. 90. Section 28-5857, Arizona Revised Statutes, is amended to read:

28-5857 . Use fuel advisory council

A. A use fuel advisory council is established. The director of the department of transportation MOTOR VEHICLES shall appoint the members to the council as follows:

1. One member who represents the department of transportation MOTOR VEHICLES .

2. One member who represents the department of environmental quality.

3. One member who represents oil marketers.

4. One member who represents use fuel vendors.

5. One member who represents motor carriers.

B. Members appointed pursuant to subsection A, paragraphs 1 and 2 of this section serve at the pleasure of the director. Members appointed pursuant to subsection A, paragraphs 3, 4 and 5 of this section serve for staggered terms of three years.

C. Members of the council are not eligible to receive compensation, but the members who are appointed pursuant to subsection A, paragraphs 3, 4 and 5 of this section are eligible to receive reimbursement of expenses by the department pursuant to title 38, chapter 4, article 2.

D. The council shall review the determinations made by the director pursuant to section 28-5856.

E. The department shall provide staff support for the council.

Sec. 91. Section 28-5874, Arizona Revised Statutes, is amended to read:

28-5874 . Single trip motor carrier tax trip permit; tax; expiration

A. There is imposed against each motor vehicle and each lightweight motor vehicle for a single trip motor carrier tax trip permit a motor carrier tax of either:

1. Twelve dollars for fifty miles or less to be traveled on the highways of this state.

2. Forty-eight dollars for more than fifty miles to be traveled on the highways of this state.

B. A single trip motor carrier tax trip permit:

1. Expires on the completion of the specific trip for which it is issued and applies only for a period of ninety-six hours from the time of issuance unless an extension of time is authorized by the director.

2. Is valid for a single trip for vehicles entering this state at Black Rock and exiting at Teec Nos Pos or entering this state at Teec Nos Pos and exiting at Black Rock even if the vehicles exit and reenter this state during the trip.

C. The director may authorize third parties to issue single trip motor carrier tax trip permits pursuant to this section in accordance with rules adopted by the director.

D. EXCEPT AS PROVIDED IN SUBSECTION E OF THIS SECTION, THE DIRECTOR SHALL TRANSMIT FEES COLLECTED PURSUANT TO THIS SECTION TO THE STATE TREASURER FOR DEPOSIT IN THE MOTOR VEHICLE FUND ESTABLISHED BY SECTION 28-9106.

D. E. The director shall transmit fees collected pursuant to this section at ports of entry on the border between this state and Mexico to the state treasurer for deposit in the safety enforcement and transportation infrastructure fund established by section 28-6547.

Sec. 92. Section 28-5875, Arizona Revised Statutes, is amended to read:

28-5875 . Special thirty day motor carrier tax permit; fee

A. The department may issue a special thirty day motor carrier tax permit for a motor vehicle or lightweight motor vehicle if the vehicle is not in the commercial transportation business, is in this state for a limited period of time and will make limited use of this state's highways.

B. The motor carrier tax for a special thirty day permit is ninety-six dollars.

C. The director may authorize third parties to issue special thirty day motor carrier tax trip permits pursuant to this section in accordance with rules adopted by the director.

D. EXCEPT AS PROVIDED IN SUBSECTION E OF THIS SECTION, THE DIRECTOR SHALL TRANSMIT FEES COLLECTED PURSUANT TO THIS SECTION TO THE STATE TREASURER FOR DEPOSIT IN THE MOTOR VEHICLE FUND ESTABLISHED BY SECTION 28-9106.

D. E. The director shall transmit fees collected pursuant to this section at ports of entry on the border between this state and Mexico to the state treasurer for deposit in the safety enforcement and transportation infrastructure fund established by section 28-6547.

Sec. 93. Section 28-6001, Arizona Revised Statutes, is amended to read:

28-6001 . Underground storage tank tax; payments

A. A person who is liable for the motor vehicle fuel tax imposed by section 28-5606 or the aviation fuel tax imposed by section 28-8344 shall make periodic payments of the underground storage tank tax imposed by title 49, chapter 6, article 2 to the director of the department of transportation MOTOR VEHICLES .

B. A person who refines, manufactures, produces, compounds, blends or imports diesel shall register with the department of transportation MOTOR VEHICLES on a form prescribed by the department of transportation MOTOR VEHICLES and shall make periodic payments of the underground storage tank tax imposed by title 49, chapter 6, article 2 to the director. For purposes of this subsection, "diesel" means a liquid petroleum product that meets the specifications in ASTM D-975-88.

Sec. 94. Section 28-6002, Arizona Revised Statutes, is amended to read:

28-6002 . Collection agent

For the purposes of section 28-6001, the director of the department of transportation MOTOR VEHICLES acts only as a collecting agent for the director of the department of environmental quality and assumes no responsibility for the underlying tax liability other than that described in this article.

Sec. 95. Section 28-6003, Arizona Revised Statutes, is amended to read:

28-6003 . Payment procedure; return form

A. A person shall:

1. Make the payments to the director of the department of transportation MOTOR VEHICLES that are required by section 28-6001 at the same time and in the same manner as the motor vehicle fuel tax.

2. Include a return form prescribed by the director of the department of environmental quality indicating:

(a) The time period to which the return applies.

(b) The quantity of fuel used to measure the tax, less exclusions for exports, shrinkage, loss and other exclusions as the director of the department of environmental quality may allow by rule.

(c) The amount of the underground storage tank tax payment.

(d) The amount of any deductions taken pursuant to section 28-6004.

(e) Any other information required by the director of the department of environmental quality.

B. A taxpayer is not required to obtain a separate license for tax payments under this article.

Sec. 96. Section 28-6006, Arizona Revised Statutes, is amended to read:

28-6006 . Administration same as for motor vehicle fuel tax

A. Section 28-5607, subsection B, section 28-5624, subsection D, sections 28-5602, 28-5603, 28-5605, 28-5613, 28-5614, 28-5619, 28-5620, 28-5621, 28-5622 , AND 28-5625 and article 5 of this chapter apply to the persons from whom the underground storage tank tax is collected pursuant to section 28-6001 so that the underground storage tank tax is administered in the same manner as the motor vehicle fuel tax.

B. Penalties, late filing fees and interest collected by the department of transportation MOTOR VEHICLES shall be remitted to the director of the department of environmental quality in the same manner as the tax collected pursuant to this article.

Sec. 97. Section 28-6008, Arizona Revised Statutes, is amended to read:

28-6008 . Distribution; administration costs

A. By the twentieth day of each month, the director of the department of transportation MOTOR VEHICLES shall distribute to the director of the department of environmental quality amounts collected and information from return forms received during the preceding calendar month.

B. The director of the department of transportation MOTOR VEHICLES shall withhold an amount equal to the costs incurred by the department of transportation MOTOR VEHICLES in administering this article that is determined pursuant to an intergovernmental agreement with the department of environmental quality under title 11, chapter 7, article 3. The amount withheld shall be deposited in a revolving fund to be used by the director of the department of transportation MOTOR VEHICLES for administering the underground storage tank tax as described in this article.

C. The director of the department of environmental quality shall dispose of the monies transmitted according to section 49-1036.

Sec. 98. Section 28-6991, Arizona Revised Statutes, is amended to read:

28-6991 . State highway fund; sources

A state highway fund is established in the state treasury that consists of:

1. Monies distributed from the Arizona highway user revenue fund pursuant to chapter 18 of this title.

2. Monies appropriated by the legislature.

3. Monies received from donations for the construction, improvement or maintenance of state highways or bridges. These monies shall be credited to a special account and shall be spent only for the purpose indicated by the donor.

4. Monies received from counties under cooperative agreements, including proceeds from bond issues. The state treasurer shall deposit these monies to the credit of the fund in a special account on delivery to the treasurer of a concise written agreement between the department and the county stating the purposes for which the monies are surrendered by the county, and these monies shall be spent only as stated in the agreement.

5. Monies received from the United States under an act of Congress to provide aid for the construction of rural post roads, but monies received on projects for which the monies necessary to be provided by this state are wholly derived from sources mentioned in paragraphs 2 and 3 of this section shall be allotted by the department and deposited by the state treasurer in the special account within the fund established for each project. On completion of the project, on the satisfaction and discharge in full of all obligations of any kind created and on request of the department, the treasurer shall transfer the unexpended balance in the special account for the project into the state highway fund, and the unexpended balance and any further federal aid thereafter received on account of the project may be spent under the general provisions of this title.

6. Monies in the custody of an officer or agent of this state from any source that is to be used for the construction, improvement or maintenance of state highways or bridges.

7. Monies deposited in the state general fund and arising from the disposal of state personal property belonging to the department.

8. Receipts from the sale or disposal of any or all other property held by the department and purchased with state highway monies.

9. Monies generated pursuant to section 28-410 28-404 .

10. Monies distributed pursuant to section 28-5808, subsection A, paragraph 2, subdivision (d).

11. Monies deposited pursuant to sections 28-1143, 28-2010, 28-2353 and 28-3003.

12. Monies deposited pursuant to section 28-4302, subsection A, paragraph 3 and sections 28-5105 and 28-5135.

13. The following monies:

(a) Monies deposited pursuant to sections 28-2202 and 28-2206 and section 28-5808, subsection A, paragraph 2, subdivision (k).

(b) One dollar of each registration fee and one dollar of each title fee collected pursuant to section 28-2003.

(c) Two dollars of each late registration penalty collected by the director pursuant to section 28-2162.

(d) The air quality compliance fee collected pursuant to section 49-542.

(e) The eight dollar special plate administration fees collected pursuant to sections 28-2404, 28-2412, 28-2413, 28-2414, 28-2415 and 28-2416.

(f) The windshield sticker fee collected pursuant to section 28-2355.

(g) Monies collected pursuant to sections 28-372, 28-2155 and 28-2156 if the director is the registering officer.

14. Monies deposited pursuant to chapter 5, article 5 of this title.

15. Donations received pursuant to section 28-2269.

Sec. 99. Section 28-6993, Arizona Revised Statutes, is amended to read:

28-6993 . State highway fund; authorized uses

A. Except as provided in subsection B of this section and section 28-6538, the state highway fund shall be used for any of the following purposes in strict conformity with and subject to the budget as provided by this section and by sections 28-6997 through 28-7003:

1. To pay salaries, wages, necessary travel expenses and other expenses of officers and employees of the department and the incidental office expenses, including telegraph, telephone, postal and express charges and printing, stationery and advertising expenses.

2. To pay for both:

(a) Equipment, supplies, machines, tools, department offices and laboratories established by the department.

(b) The construction and repair of buildings or yards of the department.

3. To pay the cost of both:

(a) Engineering, construction, improvement and maintenance of state highways and parts of highways forming state routes.

(b) Highways under cooperative agreements with the United States that are entered into pursuant to this chapter and an act of Congress providing for the construction of rural post roads.

4. To pay land damages incurred by reason of establishing, opening, altering, relocating, widening or abandoning portions of a state route or state highway.

5. To reimburse the department revolving account.

6. To pay premiums on authorized indemnity bonds and on compensation insurance under the workers' compensation act.

7. To defray lawful expenses and costs required to administer and carry out the intent, purposes and provisions of this title and to pay lawful bills and charges incurred by the state engineer.

8. To acquire, construct or improve entry roads to state parks or roads within state parks.

9. To acquire, construct or improve entry roads to state prisons.

10. To pay the cost of relocating a utility facility pursuant to section 28-7156.

11. For the purposes provided in subsections C, D, E and F of this section and sections 28-1143, 28-2010, 28-2353 and 28-3003.

B. For each of the following fiscal years, the department shall allocate and the state treasurer shall distribute monies in the state highway fund to the department of public safety for funding a portion of highway patrol costs in eight installments in each of the first eight months of a fiscal year that do not exceed:

1. For the 1997-1998 fiscal year, fifteen million dollars.

2. For the 1998-1999 fiscal year, twelve million five hundred thousand dollars.

3. For the 1999-2000 fiscal year and for all subsequent fiscal years, ten million dollars.

C. Subject to legislative appropriation, the director shall use the monies in the state highway fund as prescribed in section 28-6991, paragraph 12 for processing the application and for the criminal background investigations required pursuant to chapters 10 and 13 of this title.

D. Subject to legislative appropriation, the department may use the monies in the state highway fund as prescribed in section 28-6991, paragraph 13 to carry out the duties imposed by this title for registration or titling of vehicles, to operate joint title, registration and driver licensing offices, to cover the administrative costs of issuing the air quality compliance sticker, modifying the year validating tab and issuing the windshield sticker and to cover expenses and costs in issuing special plates pursuant to sections 28-2404, 28-2412, 28-2413, 28-2414, 28-2415 and 28-2416.

E. The department shall use monies deposited in the state highway fund pursuant to chapter 5, article 5 of this title only as prescribed by that article.

F. Monies deposited in the state highway fund pursuant to section 28-2269 shall be used only as prescribed by that section.

Sec. 100. Title 28, Arizona Revised Statutes, is amended by adding chapter 26, to read:

chapter 26 Department of motor vehicles

article 1. Department of motor vehicles

28-9101 . Department of motor vehicles; establishment

A. A DEPARTMENT OF MOTOR VEHICLES IS ESTABLISHED.

B. THE DIRECTOR IS RESPONSIBLE FOR THE ADMINISTRATION OF THE DEPARTMENT.

28-9102 . Department of motor vehicles; duties

THE DEPARTMENT SHALL:

1. REGISTER MOTOR VEHICLES.

2. LICENSE DRIVERS.

3. COLLECT REVENUES.

4. ENFORCE MOTOR VEHICLE STATUTES.

5. PERFORM DUTIES PRESCRIBED IN THIS CHAPTER AND CHAPTER 3, ARTICLES 17, 18 AND 19, CHAPTERS 4 AND 5, CHAPTER 6, ARTICLES 3 AND 4 AND CHAPTERS 7 THROUGH 16 OF THIS TITLE.

6. PERFORM RELATED FUNCTIONS.

28-9103 . Legal counsel

THE ATTORNEY GENERAL IS THE LEGAL ADVISER OF THE DEPARTMENT AND SHALL PROVIDE LEGAL SERVICES AS THE DEPARTMENT REQUIRES. COMPENSATION FOR PERSONNEL ASSIGNED BY THE ATTORNEY GENERAL TO PERFORM THE SERVICES IS A CHARGE AGAINST APPROPRIATIONS TO THE DEPARTMENT. THE ATTORNEY GENERAL SHALL PROSECUTE AND DEFEND IN THE NAME OF THIS STATE ALL ACTIONS NECESSARY TO CARRY OUT THIS TITLE.

28-9104 . Acceptance and expenditure of federal monies; limitations

A. THE DEPARTMENT MAY ACCEPT AND SPEND GRANTS, DONATIONS, AID OR OTHER MONIES RECEIVED FROM THE FEDERAL GOVERNMENT OR ANY AGENCY OF THE FEDERAL GOVERNMENT FOR ANY MOTOR VEHICLE PURPOSE.

B. THE DEPARTMENT MAY CONTRACT AND DO ALL THINGS NECESSARY TO SECURE THE FULL BENEFITS AVAILABLE TO THIS STATE FOR MOTOR VEHICLE PURPOSES UNDER FEDERAL LAW AND, IN DOING SO, MAY COOPERATE WITH FEDERAL, STATE AND LOCAL GOVERNMENT AGENCIES, PRIVATE AND PUBLIC ORGANIZATIONS AND PRIVATE INDIVIDUALS.

C. THIS CHAPTER SHALL NOT BE CONSTRUED TO AFFECT THE AUTHORITY OF OTHER AGENCIES OR BOARDS OF THIS STATE OR POLITICAL SUBDIVISIONS FROM ACCEPTING, RECEIVING OR SPENDING GRANTS OR OTHER MONIES FROM THE FEDERAL GOVERNMENT OR ANY AGENCY OF THE FEDERAL GOVERNMENT FOR MOTOR VEHICLE PURPOSES PURSUANT TO OTHER PROVISIONS OF LAW OR CHARTER.

28-9105 . Department of motor vehicles venture team

A. THE DEPARTMENT OF MOTOR VEHICLES SHALL ESTABLISH ONE OR MORE VENTURE TEAMS CONSISTING OF AT LEAST TEN MEMBERS, WITH AT LEAST FIVE MEMBERS WHO HAVE PRIVATE SECTOR EXPERIENCE IN EXECUTIVE POSITIONS AND AT LEAST FIVE MEMBERS WHO SERVE AS MANAGERS IN THE DEPARTMENT. THE GOVERNOR SHALL APPOINT THE PRIVATE SECTOR MEMBERS. THE DIRECTOR SHALL APPOINT THE DEPARTMENT MANAGERS. PRIVATE SECTOR MEMBERS SHALL SERVE FOR STAGGERED TERMS OF THREE YEARS. THE GOVERNOR MAY REMOVE A PRIVATE SECTOR MEMBER FOR CAUSE. DEPARTMENT MANAGERS SERVE AT THE PLEASURE OF THE DIRECTOR.

B. THE VENTURE TEAM SHALL SELECT WORK AREAS FOR REVIEW AND CONSULTATION WITH SENIOR MANAGEMENT FROM THE DEPARTMENT. DEPARTMENT MANAGERS MAY SUGGEST WORK AREAS FOR THE VENTURE TEAM TO REVIEW. THE DIRECTOR SHALL DEDICATE AT LEAST FOUR OF THE DEPARTMENT'S EMPLOYEES WITH APPROPRIATE EXPERIENCE AND SKILLS TO PROVIDE STAFF SUPPORT FOR THE VENTURE TEAM. A REPORT OF THE FINDINGS AND RECOMMENDATIONS REGARDING EACH STUDY SHALL BE SUBMITTED TO THE VENTURE TEAM.

C. THE MEMBERS SHALL ELECT A CHAIRMAN FROM AMONG THE TEAM'S PRIVATE SECTOR MEMBERS AND A VICE-CHAIRMAN FROM AMONG ITS MANAGER MEMBERS.

D. NOTWITHSTANDING SECTION 38-101, THE PRIVATE SECTOR MEMBERS ARE NOT CONSIDERED PUBLIC OFFICERS AND ARE NOT SUBJECT TO FINANCIAL DISCLOSURE UNDER TITLE 38, CHAPTER 3.1. THE PRIVATE SECTOR MEMBERS ARE SUBJECT TO TITLE 38, CHAPTER 3, ARTICLE 8. VENTURE TEAM MEETINGS ARE EXEMPT FROM TITLE 38, CHAPTER 3, ARTICLE 3.1.

E. THE MEMBERS OF THE VENTURE TEAM ARE NOT ELIGIBLE TO RECEIVE COMPENSATION FOR THEIR SERVICES, BUT THE PRIVATE SECTOR MEMBERS ARE ELIGIBLE TO RECEIVE REIMBURSEMENT FOR EXPENSES PURSUANT TO TITLE 38, CHAPTER 4, ARTICLE 2.

F. THE VENTURE TEAM SHALL PERIODICALLY SUBMIT REPORTS OF ITS FINDINGS AND RECOMMENDATIONS TO THE DIRECTOR. THE VENTURE TEAM AND DIRECTOR SHALL SUBMIT VENTURE TEAM ANNUAL REPORTS TO THE GOVERNOR, THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

28-9106 . Motor vehicle fund

A. A MOTOR VEHICLE FUND IS ESTABLISHED THAT CONSISTS OF:

1. MONIES DEPOSITED PURSUANT TO SECTIONS 28-1143, 28-2004, 28-2404, 28-2412 THROUGH 28-2416, 28-3002, 28-4302, 28-4556, 28-5105, 28-5135, 28-5401, 28-5739, 28-5874, 28-5875 AND 28-9124, SECTION 28-5808, SUBSECTION A, PARAGRAPH 2, SUBDIVISION (k) AND CHAPTER 5, ARTICLE 5 OF THIS TITLE.

2. THE AIR QUALITY COMPLIANCE FEE COLLECTED PURSUANT TO SECTION 49-542.

3. DONATIONS RECEIVED PURSUANT TO SECTION 28-2269.

B. SUBJECT TO LEGISLATIVE APPROPRIATION AND EXCEPT AS PROVIDED IN SUBSECTIONS C AND D OF THIS SECTION, THE DIRECTOR SHALL USE THE MONIES IN THE MOTOR VEHICLE FUND FOR PURPOSES PRESCRIBED IN THIS CHAPTER AND CHAPTER 3, ARTICLES 17, 18 AND 19, CHAPTERS 4 AND 5, CHAPTER 6, ARTICLES 3 AND 4 AND CHAPTERS 7 THROUGH 16 OF THIS TITLE.

C. THE DEPARTMENT SHALL USE MONIES DEPOSITED IN THE MOTOR VEHICLE FUND PURSUANT TO CHAPTER 5, ARTICLE 5 OF THIS TITLE ONLY AS PRESCRIBED BY THAT ARTICLE.

D. MONIES DEPOSITED IN THE MOTOR VEHICLE FUND PURSUANT TO SECTION 28-2269 SHALL BE USED ONLY AS PRESCRIBED BY THAT SECTION.

Article 2. Director of the department of motor vehicles

28-9121 . Director; appointment; compensation

A. THE GOVERNOR SHALL APPOINT THE DIRECTOR PURSUANT TO SECTION 38-211. THE DIRECTOR SERVES AT THE PLEASURE OF THE GOVERNOR.

B. THE DEPARTMENT OF ADMINISTRATION IN CONSULTATION WITH THE GOVERNOR'S OFFICE SHALL PREPARE A JOB DESCRIPTION FOR THE POSITION OF DIRECTOR AND SHALL RECRUIT CANDIDATES FOR THE POSITION.

C. THE DIRECTOR IS ELIGIBLE TO RECEIVE COMPENSATION PURSUANT TO SECTION 38-611.

28-9122 . Deputy director of the department

THE DIRECTOR MAY APPOINT A DEPUTY DIRECTOR OF THE DEPARTMENT WITH THE APPROVAL OF THE GOVERNOR. THE DEPUTY DIRECTOR SERVES AT THE PLEASURE OF THE DIRECTOR. THE DEPUTY DIRECTOR IS DIRECTLY RESPONSIBLE FOR THE DUTIES DELEGATED TO THE DEPUTY DIRECTOR BY THE DIRECTOR.

28-9123 . Duties of the director; administration

A. THE DIRECTOR SHALL:

1. SUPERVISE AND ADMINISTER THE OVERALL ACTIVITIES OF THE DEPARTMENT AND ITS DIVISIONS AND EMPLOYEES.

2. APPOINT ASSISTANT DIRECTORS FOR EACH OF THE DIVISIONS.

3. PROVIDE FOR THE ASSEMBLY AND DISTRIBUTION OF INFORMATION TO THE PUBLIC CONCERNING DEPARTMENT ACTIVITIES.

4. DELEGATE FUNCTIONS, DUTIES OR POWERS AS THE DIRECTOR DEEMS NECESSARY TO CARRY OUT THE EFFICIENT OPERATION OF THE DEPARTMENT.

5. DESIGNATE THE NECESSARY AGENCIES FOR ENFORCING THE PROVISIONS OF THE LAWS THE DIRECTOR ADMINISTERS OR ENFORCES.

6. EXERCISE OTHER DUTIES OR POWERS AS THE DIRECTOR DEEMS NECESSARY TO CARRY OUT THE EFFICIENT OPERATION OF THE DEPARTMENT.

B. THE ASSISTANT DIRECTORS APPOINTED PURSUANT TO SUBSECTION A ARE EXEMPT FROM THE STATE PERSONNEL SYSTEM.

28-9124 . Disposition of fees

EXCEPT AS OTHERWISE PROVIDED BY STATUTE, THE DIRECTOR SHALL IMMEDIATELY TRANSMIT FEES COLLECTED UNDER THIS CHAPTER TO THE STATE TREASURER FOR IMMEDIATE DEPOSIT IN THE MOTOR VEHICLE FUND ESTABLISHED BY SECTION 28-9106.

28-9125 . Director; rules

THE DIRECTOR SHALL ADOPT RULES PURSUANT TO TITLE 41, CHAPTER 6 AS THE DIRECTOR DEEMS NECESSARY, FOR:

1. COLLECTION OF TAXES AND LICENSE FEES.

2. PUBLIC SAFETY AND CONVENIENCE.

3. ENFORCEMENT OF THE PROVISIONS OF THE LAWS THE DIRECTOR ADMINISTERS OR ENFORCES.

28-9126 . Law enforcement powers; ports of entry; violation; classification

A. THE DIRECTOR AND OFFICERS, AGENTS AND EMPLOYEES OF THE DEPARTMENT OR LOCAL OR STATE LAW ENFORCEMENT AGENCIES THE DIRECTOR DESIGNATES ARE PEACE OFFICERS WITH LIKE AUTHORITY OF OTHER PEACE OFFICERS OF THIS STATE OR CITIES AND TOWNS OF THIS STATE. THE DIRECTOR AND DESIGNATED OFFICERS, AGENTS AND EMPLOYEES MAY EXERCISE THE POWERS THROUGHOUT THIS STATE.

B. A PEACE OFFICER DESIGNATED PURSUANT TO SUBSECTION A OF THIS SECTION:

1. SHALL MEET THE MINIMUM QUALIFICATIONS ESTABLISHED FOR PEACE OFFICERS PURSUANT TO SECTION 41-1822.

2. EXCEPT AS PROVIDED IN TITLE 38, CHAPTER 5, ARTICLE 4, IS NOT ELIGIBLE TO PARTICIPATE IN THE PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM.

C. THIS SECTION DOES NOT PREEMPT THE AUTHORITY AND JURISDICTION OF ESTABLISHED AGENCIES AND POLITICAL SUBDIVISIONS OF THIS STATE.

D. A PEACE OFFICER AS DEFINED IN SECTION 41-1701 OR A PEACE OFFICER DESIGNATED IN SUBSECTION A OF THIS SECTION MAY REQUIRE A VEHICLE THAT IS SUBJECT TO THE FEE IN SECTION 28-5433 OR THE REQUIREMENTS OF SECTIONS 28-2321 THROUGH 28-2324 TO STOP AT A PORT OF ENTRY IN THIS STATE FOR THE PURPOSE OF ENFORCING A MOTOR VEHICLE LAW PRESCRIBED IN THIS TITLE. A PERSON WHO FAILS TO STOP AS REQUIRED BY THIS SUBSECTION IS GUILTY OF A CLASS 1 MISDEMEANOR.

28-9127 . Oaths and acknowledgments

THE DIRECTOR, OFFICERS, AGENTS AND EMPLOYEES OF THE DEPARTMENT THE DIRECTOR DESIGNATES MAY ADMINISTER OATHS AND ACKNOWLEDGE SIGNATURES, WITHOUT A FEE, IN ANY MATTER CONNECTED WITH THE ADMINISTRATION OF A LAW THE ENFORCEMENT OF WHICH IS VESTED IN THE DIRECTOR. THE DIRECTOR SHALL ISSUE TO ALL PERSONS THE DIRECTOR DESIGNATES A CERTIFICATE OF AUTHORITY TO ADMINISTER OATHS AND ACKNOWLEDGE SIGNATURES. THE DIRECTOR SHALL FILE THE ORIGINAL CERTIFICATE IN THE DEPARTMENT AND SHALL FILE A COPY OF THE CERTIFICATE IN THE OFFICE OF THE SECRETARY OF STATE.

28-9128 . Surety bond

A. THE DIRECTOR MAY AUTHORIZE A PERSON WHO IS REQUIRED TO PAY A FEE TO THE DEPARTMENT PURSUANT TO SECTION 28-2003, 28-2094, 28-2352, 28-2402, 28-2481, 28-3002, 28-4302, 28-4533, 28-4540, 28-4542, 28-4544 OR 28-4802, ARTICLE 5 OF THIS CHAPTER OR CHAPTER 15 OF THIS TITLE TO FILE WITH THE DIRECTOR A BOND ON A FORM APPROVED BY THE DIRECTOR WITH A SURETY COMPANY AUTHORIZED BY THE CORPORATION COMMISSION TO TRANSACT BUSINESS IN THIS STATE AS A SURETY. THE PERSON IS THE PRINCIPAL OBLIGOR, AND THIS STATE IS THE OBLIGEE ON THE BOND. THE BOND SHALL BE CONDITIONED ON THE PAYMENT BY THE PERSON TO THE DEPARTMENT OF ALL FEES TOGETHER WITH ANY INTEREST AND PENALTIES IMPOSED BY THE DEPARTMENT PURSUANT TO THIS TITLE. THE DIRECTOR MAY ACCEPT CASH DEPOSITS INSTEAD OF A SURETY BOND TO GUARANTEE FEE PAYMENTS.

B. THE DIRECTOR SHALL DETERMINE THE TOTAL AMOUNT OF THE BOND REQUIRED OF A PERSON, BUT THE AMOUNT SHALL NOT EXCEED APPROXIMATELY THREE TIMES THE HIGHEST MONTHLY FEE ESTIMATED BY THE DIRECTOR TO BECOME DUE BY THE PERSON. THE DIRECTOR MAY INCREASE OR DECREASE THE AMOUNT OF THE BOND AT ANY TIME.

28-9129 . Returned checks; fee

A. THE DIRECTOR MAY ASSESS A FEE FOR A CHECK THAT HAS BEEN RETURNED FOR NONPAYMENT BECAUSE OF INSUFFICIENT MONIES, PAYMENTS STOPPED OR CLOSED ACCOUNTS. THE DIRECTOR, BY RULE, SHALL ADOPT A FEE OF NOT MORE THAN TEN DOLLARS.

B. THE DIRECTOR SHALL TRANSMIT FEES FOR RETURNED CHECKS THAT WERE SUBMITTED FOR TITLING AND REGISTERING VEHICLES TO THE STATE TREASURER FOR DEPOSIT IN THE MOTOR VEHICLE FUND ESTABLISHED BY SECTION 28-9106. THE DIRECTOR SHALL TRANSMIT ALL OTHER FEES COLLECTED UNDER SUBSECTION A OF THIS SECTION TO THE STATE TREASURER FOR DEPOSIT IN THE HIGHWAY USER REVENUE FUND.

28-9130 . Refunds; limitations

A. IF THE DIRECTOR DETERMINES THAT ANY TAX, PENALTY, FEE OR INTEREST HAS BEEN OVERPAID OR COLLECTED THAT WAS NOT LAWFULLY DUE, THE DIRECTOR SHALL STATE THIS FACT IN THE DIRECTOR'S RECORDS. THE DIRECTOR SHALL EITHER CREDIT THE OVERPAYMENT ON AN AMOUNT DUE FROM THE PERSON OR MAKE A REFUND TO THE PERSON OR THE PERSON'S SUCCESSORS, ADMINISTRATORS, EXECUTORS OR ASSIGNEES FROM RECEIPTS THAT ARE IN THE POSSESSION OF THE DIRECTOR AND THAT ARE COLLECTED UNDER THE SAME STATUTE.

B. EXCEPT AS PROVIDED IN THIS SECTION AND EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, APPLICATION FEES, PUBLIC RECORD FEES, PERMIT FEES, LICENSE FEES AND FEES AND TAXES PAID FOR VEHICLE REGISTRATION ARE NOT REFUNDABLE AFTER THEY ARE PAID.

C. NOTWITHSTANDING SUBSECTION B, THE DIRECTOR MAY REFUND THE FEES PRESCRIBED IN SUBSECTION B IF BOTH OF THE FOLLOWING CONDITIONS EXIST:

1. THE SERVICE HAS NOT BEEN RENDERED OR THE PERMIT HAS NOT BEEN USED.

2. IT HAS BEEN DETERMINED THAT THE DIRECTOR ERRED IN ACCEPTING PAYMENT OR THAT THE DIRECTOR CONTRIBUTED TO A MISUNDERSTANDING ON THE PART OF THE PERSON MAKING PAYMENT BY PROVIDING INACCURATE, MISLEADING OR INCORRECT INFORMATION.

D. EXCEPT AS OTHERWISE PROVIDED BY STATUTE, A PERSON SHALL MAKE A REQUEST FOR A REFUND TO THE DIRECTOR WITHIN ONE YEAR OF THE DATE OF PAYMENT ON WHICH A CLAIM FOR REFUND IS MADE.

28-9131 . Fees and taxes; alternative payment methods

A. SUBJECT TO THE LIMITATIONS OF SECTION 41-2544, THE DIRECTOR MAY ENTER INTO AGREEMENTS FOR THE PURPOSE OF ACCEPTING PAYMENT FOR FEES AND TAXES IMPOSED UNDER THIS TITLE BY ALTERNATIVE PAYMENT METHODS, INCLUDING CREDIT CARDS, DEBIT CARDS AND ELECTRONIC FUNDS TRANSFERS.

B. THE COLLECTING OFFICER SHALL DEDUCT ANY FEE CHARGED OR WITHHELD BY A COMPANY PROVIDING THE ALTERNATIVE PAYMENT METHOD UNDER AN AGREEMENT WITH THE DIRECTOR BEFORE THE REVENUES ARE TRANSFERRED TO THE DIRECTOR AS PROVIDED IN SECTIONS 28-2005 AND 28-6533.

28-9132 . Alternative office hours

TO MEET THE NEEDS OF THE PUBLIC THE DIRECTOR MAY ESTABLISH HOURS OF OPERATION FOR DEPARTMENT OFFICES OTHER THAN THE OFFICE HOURS FOR STATE OFFICES PROVIDED IN SECTION 38-401.

Article 3. Agreements

28-9151 . Intergovernmental agreements; ports of entry

A. THE DEPARTMENT MAY ENTER INTO INTERGOVERNMENTAL AGREEMENTS WITH ADJOINING STATES PURSUANT TO TITLE 11, CHAPTER 7, ARTICLE 3 FOR THE PURPOSE OF OPERATING FACILITIES AT PORTS OF ENTRY INTO THIS STATE.

B. THE DIRECTOR MAY NEGOTIATE AND ENTER INTO BILATERAL AGREEMENTS WITH DESIGNATED REPRESENTATIVES OF CONTIGUOUS STATES TO PROVIDE FOR THE STAFFING AND OPERATION OF JOINTLY OCCUPIED PORTS OF ENTRY LOCATED WITHIN THE BOUNDARIES OF THIS STATE OR AN ADJOINING STATE. THE AGREEMENT MAY ALLOW EMPLOYEES OF EITHER STATE TO COLLECT FEES, TAXES AND PENALTIES IMPOSED BY RULES OR LAWS OF EITHER STATE FOR THE OPERATION OF VEHICLES ON THE HIGHWAYS OF EITHER STATE AND FOR THE ISSUANCE OF REQUIRED PERMITS.

C. THE DIRECTOR MAY APPOINT EMPLOYEES OF THE ADJOINING STATE AS LAW ENFORCEMENT AGENTS OF THE DEPARTMENT WHOSE POWERS ARE STRICTLY LIMITED TO THE ENFORCEMENT OF TAX, WEIGHT, SIZE AND LOAD, EQUIPMENT, SAFETY AND FINANCIAL RESPONSIBILITY LAWS AND RULES OF THIS STATE RELATING TO VEHICLES ENTERING OR EXITING THIS STATE. THE DIRECTOR MAY ALLOW EMPLOYEES OF THE DEPARTMENT TO ACCEPT SIMILAR APPOINTMENTS WITH THE ADJOINING STATES.

D. THE AGREEMENT SHALL PROVIDE THAT THIS STATE SHALL NOT COMPENSATE AN EMPLOYEE OF THE ADJOINING STATE APPOINTED PURSUANT TO THIS SECTION AND THAT THE EMPLOYEE IS NOT AN EMPLOYEE OF THIS STATE FOR PURPOSES OF EMPLOYMENT RIGHTS OR BENEFITS. AN EMPLOYEE OF THE ADJOINING STATE SHALL AGREE THAT THIS STATE SHALL NOT COMPENSATE THE EMPLOYEE AND THAT THE EMPLOYEE IS NOT AN EMPLOYEE OF THIS STATE FOR PURPOSES OF EMPLOYMENT RIGHTS OR BENEFITS.

E. AN EMPLOYEE OF THIS STATE WHO ACCEPTS AN APPOINTMENT FROM AN ADJOINING STATE IS NOT AN EMPLOYEE OF THAT STATE BY VIRTUE OF THE APPOINTMENT OR FOR PURPOSES OF EMPLOYMENT RIGHTS OR BENEFITS. THE EMPLOYEE SHALL NOT RECEIVE COMPENSATION FROM AN ADJOINING STATE.

28-9152 . Interstate agreements; commercial vehicle registration

THE DIRECTOR MAY ENTER INTO AGREEMENTS WITH OTHER STATES ON BEHALF OF THIS STATE RELATING TO REGISTRATION OF COMMERCIAL VEHICLES IN THE MANNER PROVIDED FOR IN CHAPTER 7, ARTICLES 7 AND 8 OF THIS TITLE TO FACILITATE THE ADMINISTRATION OF THE REGISTRATION. THE REGISTRATION OF FLEET VEHICLES UNDER THOSE ARTICLES IS SUBJECT TO THE RIGHTS, TERMS AND CONDITIONS GRANTED OR CONTAINED IN AN AGREEMENT MADE PURSUANT TO THIS SECTION. THE DIRECTOR MAY CONCLUDE ARRANGEMENTS OR AGREEMENTS WITH OTHER STATES FOR THE EXCHANGE OF INFORMATION FOR AUDIT AND ENFORCEMENT ACTIVITIES IN CONNECTION WITH THE REGISTRATION.

28-9153 . Interstate agreements; fee and tax exemptions

THE DIRECTOR MAY ENTER INTO AGREEMENTS WITH OTHER STATES ON BEHALF OF THIS STATE RELATING TO THE PARTIAL OR TOTAL EXEMPTION FROM PAYMENT OF LIEU TAXES, GROSS WEIGHT FEES OR USE FEES, AND THE PARTIAL OR TOTAL EXEMPTION FROM PAYMENT OF REGISTRATION FEES OF VEHICLES REGISTERED AND LICENSED IN A STATE ADJOINING THIS STATE IF THE VEHICLES ARE USED IN THIS STATE WITHIN TWENTY-FIVE MILES OF THE BORDER AND IF THE OWNER AND VEHICLES ARE DOMICILED IN THE ADJOINING STATE BUT WITHIN TWENTY-FIVE MILES OF THE BORDER OF THIS STATE.

28-9154 . Contract; civil penalty collection

A COURT OR POLITICAL SUBDIVISION OF THIS STATE MAY CONTRACT WITH THE DEPARTMENT TO COLLECT UNPAID CIVIL PENALTIES UNDER TERMS AND CONDITIONS PRESCRIBED IN THE CONTRACT.

28-9155 . Interstate agreements; dealer or manufacturer plates

THE DIRECTOR MAY ENTER INTO AGREEMENTS WITH OTHER STATES ON BEHALF OF THIS STATE RELATING TO RECIPROCITY IN THE USE OF DEALER OR MANUFACTURER PLATES ON VEHICLES. THE AGREEMENTS SHALL PERMIT MOTOR VEHICLE DEALERS OR MANUFACTURERS IN ANOTHER STATE TO USE DEALER OR MANUFACTURER PLATES ISSUED BY THAT STATE IN THIS STATE WITHOUT REGISTRATION OF THE VEHICLE OR PAYMENT OF TAXES IN THIS STATE. THE USE OF THESE PLATES IS SUBJECT TO THE SAME TERMS AND CONDITIONS THAT THE OTHER STATE IMPOSES ON THE USE OF THE PLATES IN THE OTHER STATE BY A MOTOR VEHICLE DEALER OR MANUFACTURER DOING BUSINESS IN THIS STATE WITHOUT REGISTRATION OF THE VEHICLE OR PAYMENT OF THE TAXES IN THE OTHER STATE.

28-9156 . Agreements with other jurisdictions; parking privileges

A. THE DIRECTOR MAY ENTER INTO AGREEMENTS WITH OTHER JURISDICTIONS, INCLUDING FOREIGN JURISDICTIONS, ON BEHALF OF THIS STATE THAT EXTEND PARKING PRIVILEGES TO RESIDENTS OF THIS STATE WITH A PERMANENT DISABILITY AND THAT RECOGNIZE INTERNATIONAL SYMBOL OF ACCESS SPECIAL PLATES ISSUED BY THE OTHER JURISDICTIONS.

B. THIS STATE SHALL GRANT THE SAME PARKING PRIVILEGES AS GRANTED TO A RESIDENT OF THIS STATE TO A NONRESIDENT FOR A MOTOR VEHICLE THAT IS LICENSED IN ANOTHER STATE OR FOREIGN COUNTRY AND THAT DISPLAYS THE INTERNATIONAL SYMBOL OF ACCESS SPECIAL PLATES ISSUED IN ACCORDANCE WITH THE LAWS OF THE NONRESIDENT STATE OR FOREIGN COUNTRY EVEN IF A WRITTEN AGREEMENT TO DO SO DOES NOT EXIST BETWEEN THIS STATE AND THE NONRESIDENT'S STATE OR FOREIGN COUNTY.

28-9157 . Agreements with nonpublic entities

THE DIRECTOR SHALL ENTER INTO AGREEMENTS BY DIRECT CONTRACT WITH NONPUBLIC ENTITIES FOR SERVICES OR SHALL JOINTLY EXERCISE ANY POWERS COMMON TO THE CONTRACTING PARTIES THAT THE DIRECTOR DEEMS NECESSARY AND IN THE BEST INTERESTS OF THE DEPARTMENT SUBJECT TO THE LIMITATIONS OF SECTION 41-2544.

28-9158 . Agreements with public and private entities

A. THE DIRECTOR SHALL:

1. SUBJECT TO THE LIMITATIONS OF SECTION 41-2544, ENTER INTO AGREEMENTS BY DIRECT CONTRACT WITH PUBLIC AND PRIVATE ENTITIES FOR SERVICES LOCATED IN DEPARTMENT OFFICES THAT THE DIRECTOR DEEMS OF MUTUAL INTEREST TO BOTH PARTIES.

2. FOR COMPENSATION, ENTER INTO AGREEMENTS BY DIRECT CONTRACT WITH PUBLIC AND PRIVATE ENTITIES TO ADVERTISE THOSE ENTITIES' GOODS AND SERVICES.

3. ENTER INTO AGREEMENTS WITH PUBLIC AND PRIVATE ENTITIES TO AUTHORIZE THOSE ENTITIES TO PERFORM CERTAIN FUNCTIONS AND DUTIES OF THE DEPARTMENT.

B. NO LATER THAN JULY 1, 2000, CUSTOMER TRANSACTION FUNCTIONS OF THE DEPARTMENT SHALL BE AVAILABLE TO THE PUBLIC FROM CONTRACTORS THAT ENTER INTO AGREEMENTS WITH THE DEPARTMENT.

28-9159 . Computer software agreements

A. THE DIRECTOR MAY ENTER INTO AGREEMENTS ON BEHALF OF THIS STATE WITH PRIVATE ENTITIES FOR THE DISTRIBUTION, LICENSING, LEASING OR SALE OF COMPUTER SOFTWARE DEVELOPED BY THE DEPARTMENT, EXCEPT FOR COMPUTER SOFTWARE RELATING TO THE MOTOR CARRIER TAX IMPOSED PURSUANT TO CHAPTER 16, ARTICLE 4 OF THIS TITLE. THE PRIVATE ENTITIES THAT ENTER INTO AN AGREEMENT WITH THE DEPARTMENT PURSUANT TO THIS SUBSECTION MAY ONLY DISTRIBUTE, LICENSE, LEASE OR SELL THE COMPUTER SOFTWARE TO GOVERNMENTAL AGENCIES LOCATED OUTSIDE OF THIS STATE AND TO PRIVATE ENTITIES.

B. THE DEPARTMENT MAY DISTRIBUTE, LICENSE, LEASE OR SELL COMPUTER SOFTWARE DEVELOPED BY THE DEPARTMENT TO PRIVATE ENTITIES, OTHER AGENCIES OR POLITICAL SUBDIVISIONS OF THIS STATE AND THIRD PARTIES AUTHORIZED PURSUANT TO SECTION 28-3006 AND CHAPTER 13 OF THIS TITLE. IF THE DEPARTMENT DISTRIBUTES, LICENSES, LEASES OR SELLS COMPUTER SOFTWARE DEVELOPED BY THE DEPARTMENT TO OTHER AGENCIES OR POLITICAL SUBDIVISIONS OF THIS STATE, THE DEPARTMENT MAY ENTER INTO A SITE LICENSE CONTRACT WITH THE AGENCY OR POLITICAL SUBDIVISION OF THIS STATE. OTHER AGENCIES AND POLITICAL SUBDIVISIONS OF THIS STATE AND AUTHORIZED THIRD PARTIES THAT ACQUIRE COMPUTER SOFTWARE FROM THE DEPARTMENT PURSUANT TO THIS SUBSECTION SHALL NOT DISTRIBUTE, LICENSE, LEASE OR SELL THE COMPUTER SOFTWARE TO ANY OTHER PERSON.

C. THE DEPARTMENT MAY ENTER INTO AGREEMENTS WITH OTHER AGENCIES AND POLITICAL SUBDIVISIONS IN THIS STATE FOR THE MAINTENANCE AND SUPPORT OF COMPUTER SOFTWARE ACQUIRED BY AN AGENCY OR POLITICAL SUBDIVISION PURSUANT TO SUBSECTION B OF THIS SECTION.

D. THE DIRECTOR SHALL TRANSMIT MONIES GENERATED PURSUANT TO THIS SECTION TO THE STATE TREASURER FOR DEPOSIT IN THE MOTOR VEHICLE FUND ESTABLISHED BY SECTION 28-9106.

Article 4. Records

28-9181 . Definitions

IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

1. "DUPLICATE" MEANS A COUNTERPART PRODUCED BY ANY OF THE FOLLOWING:

(a) THE SAME IMPRESSION OR FROM THE SAME MATRIX AS THE ORIGINAL.

(b) MEANS OF PHOTOGRAPHY, INCLUDING ENLARGEMENTS AND MINIATURES.

(c) MECHANICAL OR ELECTRONIC RERECORDING.

(d) CHEMICAL REPRODUCTION.

(e) ANY OTHER EQUIVALENT TECHNIQUE THAT ACCURATELY REPRODUCES THE ORIGINAL.

2. "ORIGINAL":

(a) OF A WRITING OR RECORDING MEANS THE WRITING OR RECORDING ITSELF OR ANY COUNTERPART INTENDED TO HAVE THE SAME EFFECT BY THE PERSON EXECUTING OR ISSUING IT.

(b) OF A PHOTOGRAPH MEANS THE NEGATIVE OR A PRINT FROM THE NEGATIVE.

(c) OF DATA STORED IN A COMPUTER OR SIMILAR DEVICE MEANS A PRINTOUT OR OTHER OUTPUT THAT IS READABLE BY SIGHT AND THAT IS SHOWN TO REFLECT THE DATA ACCURATELY.

3. "PHOTOGRAPHS" INCLUDES STILL PHOTOGRAPHS, X-RAY FILMS, VIDEOTAPES AND MOTION PICTURES.

4. "WRITINGS" AND "RECORDINGS" MEANS LETTERS, WORDS OR NUMBERS OR THEIR EQUIVALENT THAT ARE SET DOWN BY HANDWRITING, TYPEWRITING, PRINTING, PHOTOSTATING, PHOTOGRAPHING, MAGNETIC IMPULSE, MECHANICAL OR ELECTRONIC RECORDING OR ANY OTHER FORM OF DATA COMPILATION.

28-9182 . Reproduction of records; requirements

A. THE DIRECTOR MAY CAUSE ANY WRITINGS, RECORDINGS AND PHOTOGRAPHS KEPT BY THE DEPARTMENT TO BE DUPLICATED.

B. WHEN THE DUPLICATES ARE PLACED IN CONVENIENTLY ACCESSIBLE FILES AND PROVISIONS ARE MADE FOR PRESERVING, EXAMINING AND USING THEM, THE DIRECTOR OF THE DEPARTMENT OF MOTOR VEHICLES MAY CERTIFY THE PLACEMENT AND PROVISION TO THE DIRECTOR OF THE DEPARTMENT OF LIBRARY, ARCHIVES AND PUBLIC RECORDS. THE DIRECTOR OF THE DEPARTMENT OF LIBRARY, ARCHIVES AND PUBLIC RECORDS SHALL DIRECT THE DISPOSAL, ARCHIVAL STORAGE OR DESTRUCTION OF THE RECORDS OR PAPERS WITHIN NINETY DAYS AFTER THE CERTIFICATION.

28-9183 . Records; evidence

A CERTIFIED DUPLICATE OF THE ORIGINAL WRITINGS, RECORDINGS AND PHOTOGRAPHS IS DEEMED AN ORIGINAL WRITING, RECORDING OR PHOTOGRAPH FOR ALL PURPOSES AND IS ADMISSIBLE IN EVIDENCE WITHOUT FURTHER FOUNDATION IN ALL COURTS OR ADMINISTRATIVE AGENCIES.

28-9184 . Records; destruction

ON CERTIFICATION BY THE DIRECTOR OF THE DEPARTMENT OF MOTOR VEHICLES OF OBSOLETE OR NONESSENTIAL WRITINGS, RECORDINGS AND PHOTOGRAPHS THAT THE DIRECTOR OF THE DEPARTMENT OF MOTOR VEHICLES DETERMINES ARE NOT OF SUFFICIENT VALUE TO BE PRESERVED BY BEING DUPLICATED, THE DIRECTOR OF THE DEPARTMENT OF LIBRARY, ARCHIVES AND PUBLIC RECORDS SHALL ORDER THEIR DESTRUCTION WITHIN NINETY DAYS AFTER THE CERTIFICATION. THE DIRECTOR OF THE DEPARTMENT OF LIBRARY, ARCHIVES AND PUBLIC RECORDS MAY ELECT TO HAVE TRANSFERRED TO THE DEPARTMENT OF LIBRARY, ARCHIVES AND PUBLIC RECORDS WITHIN THE NINETY DAY PERIOD ANY OF THE DOCUMENTS THAT ARE PROPOSED TO BE DESTROYED.

28-9185 . Computer storage; evidence

A. THE DIRECTOR MAY CAUSE THE INFORMATION CONTAINED ON AN ORIGINAL WRITING, RECORDING OR PHOTOGRAPH OR DUPLICATE MADE PURSUANT TO THIS ARTICLE TO BE PLACED ON COMPUTER STORAGE DEVICES, BUT THE ORIGINAL WRITINGS, RECORDINGS OR PHOTOGRAPHS OR THE COPIES SHALL BE MAINTAINED BY THE DEPARTMENT FOR AS LONG AS REQUIRED BY LAW OR THE DIRECTOR DEEMS NECESSARY AFTER WHICH TIME THE WRITINGS, RECORDINGS AND PHOTOGRAPHS MAY BE DISPOSED OF AS PROVIDED IN THIS ARTICLE. SIGNATURES ON WRITINGS, RECORDINGS AND PHOTOGRAPHS NEED NOT BE PLACED ON THE COMPUTER STORAGE DEVICES.

B. A DUPLICATE OF THE INFORMATION PLACED ON COMPUTER STORAGE DEVICES IS DEEMED AN ORIGINAL OF THE WRITING, RECORDING OR PHOTOGRAPH FOR ALL PURPOSES AND IS ADMISSIBLE IN EVIDENCE WITHOUT FURTHER FOUNDATION IN ALL COURTS OR ADMINISTRATIVE AGENCIES IF THE FOLLOWING CERTIFICATION APPEARS ON EACH PAGE:

THIS DOCUMENT IS A TRUE CERTIFIED DUPLICATE OF THE INFORMATION CONTAINED IN THE COMPUTER STORAGE DEVICES OF THE DEPARTMENT OF MOTOR VEHICLES, IN ACCORDANCE WITH ARIZONA REVISED STATUTES SECTION 28-9185.

28-9186 . Seal; authentication of records

A. THE DIRECTOR SHALL ADOPT A SEAL OF OFFICE TO USE TO AUTHENTICATE RECORDS AND COPIES OF RECORDS THAT ARE REQUIRED TO BE MADE AND KEPT BY THE DEPARTMENT.

B. EACH ASSISTANT DIRECTOR SHALL USE THE DIRECTOR'S SEAL TO AUTHENTICATE RECORDS REQUIRED TO BE MADE AND KEPT WITHIN THE ASSISTANT DIRECTOR'S DIVISION.

C. AUTHENTICATED RECORDS OR AUTHENTICATED COPIES OF RECORDS SHALL BE RECEIVED IN EVIDENCE WITHOUT FURTHER PROOF OF THEIR AUTHENTICITY.

28-9187 . Fees for copies; sale of stamps or coupons; exemptions

A. THE DEPARTMENT MAY FURNISH INFORMATION FROM THE RECORDS THAT ARE REQUIRED TO BE KEPT BY THIS TITLE OR MAY FURNISH COPIES FROM THE RECORDS. THE DEPARTMENT MAY CHARGE A FEE FOR PROVIDING THE INFORMATION OR COPIES THAT DOES NOT EXCEED THREE DOLLARS FOR EACH ITEM.

B. THE DEPARTMENT MAY SELL STAMPS OR COUPONS IN APPROPRIATE DENOMINATIONS FOR THE CONVENIENT ENFORCEMENT OF THIS SECTION. THE STAMPS OR COUPONS MAY BE USED TO ACCOMPANY REQUESTS FOR INFORMATION IN LIEU OF CASH BUT ARE OTHERWISE NONREDEEMABLE. THE DEPARTMENT SHALL CANCEL THE STAMPS OR COUPONS ON FURNISHING THE INFORMATION.

C. THE DEPARTMENT SHALL NOT CHARGE ANY OF THE FOLLOWING FOR COPIES OF RECORDS, FOR CERTIFIED COPIES OF RECORDS OR FOR INFORMATION FURNISHED FROM ITS RECORDS:

1. THIS STATE OR ITS DEPARTMENTS, AGENCIES OR POLITICAL SUBDIVISIONS.

2. A COURT.

3. THE FEDERAL GOVERNMENT OR ITS AGENCIES.

D. THE DEPARTMENT SHALL FURNISH CERTIFIED COPIES OF PUBLIC RECORDS DESIGNATED PURSUANT TO SECTION 28-9188 TO ANY PERSON ON PAYMENT OF A FEE OF FIVE DOLLARS.

E. THIS SECTION DOES NOT APPLY TO INFORMATION REQUIRED BY LAW TO BE KEPT CONFIDENTIAL OR TO STATISTICAL INFORMATION, THE PURPOSE OF WHICH RELATES TO TRAFFIC ACCIDENTS, TRAFFIC OFFENSES OR TRAFFIC ENFORCEMENT.

F. THE DIRECTOR SHALL IMMEDIATELY TRANSMIT FEES COLLECTED UNDER THIS SECTION TO THE STATE TREASURER FOR IMMEDIATE DEPOSIT IN THE MOTOR VEHICLE FUND ESTABLISHED BY SECTION 28-9106.

28-9188 . Public records

A. AN APPLICATION FOR A LICENSE, PERMIT, TITLE OR REGISTRATION MADE TO THE DEPARTMENT AND A DOCUMENT REQUIRED BY LAW OR BY THE DEPARTMENT TO ACCOMPANY THE APPLICATION IS A PUBLIC RECORD, EXCEPT A MEDICAL REPORT AND A REPORT VOLUNTARILY SUBMITTED BY A PHYSICIAN AS DEFINED IN SECTION 28-3005, EXCEPT AS PROVIDED BY SECTION 28-9193 AND EXCEPT AS OTHERWISE PROVIDED BY LAW.

B. IF THE DEPARTMENT IS REQUIRED OR AUTHORIZED TO REVOKE, SUSPEND OR CANCEL A DRIVER LICENSE OR TO SUSPEND VEHICLE REGISTRATIONS PURSUANT TO CHAPTER 9 OF THIS TITLE, IT SHALL NOTIFY THE HOLDER BY A WRITTEN NOTICE THAT INCLUDES A CITATION TO THE STATUTE OR RULE UNDER WHICH THE ACTION IS AUTHORIZED OR REQUIRED. THE DEPARTMENT SHALL RETAIN A COPY OF THE NOTICE. THE COPY OF THE NOTICE SHALL CONTAIN A CERTIFICATION THAT THE ORIGINAL NOTICE WAS MAILED AND THE DATE THE NOTICE WAS MAILED. THE COPY OF THE NOTICE IS A PUBLIC RECORD. IF THE COPY IS ADDRESSED TO A LICENSEE AT THE ADDRESS LAST SHOWN ON THE DEPARTMENT'S RECORDS, AS EVIDENCED BY THE PERSON'S DRIVER LICENSE APPLICATION OR SUBSEQUENT NOTIFICATION PURSUANT TO SECTION 28-9189 BY THE PERSON OF A DIFFERENT ADDRESS, IT IS PRESUMED, UNLESS OTHERWISE SHOWN BY CLEAR AND CONVINCING EVIDENCE, THAT THE PERSON TO WHOM THE NOTICE WAS ADDRESSED RECEIVED THE ORIGINAL NOTICE.

C. THE DEPARTMENT MAY PLACE NOTES, DATE STAMPS, IDENTIFYING NUMBERS OR OTHER INFORMATION ON AN APPLICATION, A RECORD OF CONVICTION OR ANY OTHER RECORD AS IS NECESSARY TO ENSURE THE ACCURACY OF THE RECORD AND TO EXPEDITE ITS HANDLING. THE INFORMATION DOES NOT AFFECT THE VALIDITY OF A RECORD, EXCEPT THAT THE MARKINGS ARE NOT CONSIDERED A PART OF THE RECORD FOR EVIDENTIARY PURPOSES UNLESS PROVEN ACCURATE BY OTHER RECORDS OF THE DEPARTMENT OR OTHER COMPETENT EVIDENCE.

28-9189 . Notice of address or name change; address update

A. IF A PERSON'S NAME OR ADDRESS CHANGES AFTER THE PERSON APPLIES FOR OR RECEIVES A DRIVER LICENSE OR NONOPERATING IDENTIFICATION LICENSE OR IF A PERSON'S ADDRESS CHANGES AFTER THE PERSON APPLIES FOR OR RECEIVES A VEHICLE REGISTRATION OR VEHICLE TITLE, THE PERSON SHALL NOTIFY THE DEPARTMENT WITHIN TEN DAYS AFTER THE CHANGE OF THE OLD AND NEW ADDRESS OR THE FORMER AND NEW NAME AND THE FOLLOWING:

1. IF A REGISTRATION OR TITLE IS APPLIED FOR OR RECEIVED, THE NUMBER OF VEHICLES REGISTERED TO THE PERSON AND THE VEHICLE IDENTIFICATION NUMBERS OF THE VEHICLES.

2. IF A DRIVER LICENSE OR NONOPERATING IDENTIFICATION LICENSE IS APPLIED FOR OR RECEIVED, THE PERSON'S DATE OF BIRTH AND THE NUMBER OF EACH LICENSE HELD BY THE PERSON OR A STATEMENT THAT EACH LICENSE IS SUSPENDED, REVOKED OR CANCELED.

B. A PERSON MAY NOTIFY THE DEPARTMENT OF AN ADDRESS CHANGE BY TELEPHONE, IN WRITING OR IN PERSON AND OF A NAME CHANGE IN PERSON OR IN WRITING.

C. THE DEPARTMENT MAY UPDATE AN ADDRESS IN A VEHICLE REGISTRATION RECORD OR DRIVER LICENSE RECORD IF A TRAFFIC CITATION RECEIVED BY THE DEPARTMENT OR RECORDS OF ANOTHER CONSENTING GOVERNMENT AGENCY INDICATE AN ADDRESS CHANGE AFTER THE DATE THE ADDRESS WAS STATED IN DEPARTMENT RECORDS.

D. A VIOLATION OF THIS SECTION IS A CIVIL TRAFFIC VIOLATION.

28-9190 . Information requests for public records

A. THE DIRECTOR MAY DESIGNATE AS CUSTODIAN OF THE DEPARTMENT'S PUBLIC RECORDS AS MANY EMPLOYEES OF THE DEPARTMENT AS THE DIRECTOR DEEMS NECESSARY.

B. A PERSON WHO REQUESTS A COPY OF OR INFORMATION FROM A PUBLIC RECORD DESIGNATED PURSUANT TO SECTION 28-9188 SHALL PRESENT PERSONAL IDENTIFICATION AND STATE THE REASON FOR MAKING THE REQUEST. THE DEPARTMENT SHALL VERIFY THE NAME AND ADDRESS OF THE PERSON MAKING THE REQUEST BY REQUIRING THE PERSON TO PRODUCE INFORMATION THE DEPARTMENT DETERMINES IS NECESSARY TO ENSURE THAT THE NAME AND ADDRESS OF THE PERSON ARE THE PERSON'S TRUE NAME AND ADDRESS.

C. THE DEPARTMENT MAY SUPPLY THE REQUESTED INFORMATION BY MAIL.

D. THE DEPARTMENT SHALL MAINTAIN A FILE OF REQUESTS FOR INFORMATION FOR SIX MONTHS. THE DEPARTMENT SHALL MAINTAIN THE FILE BY THE NAME OF THE PERSON WHOSE RECORD WAS REQUESTED.

28-9191 . Release of information prohibited; classification; definition

A. NOTWITHSTANDING SECTION 28-9188, THE DEPARTMENT SHALL NOT:

1. DIVULGE INFORMATION FROM A VEHICLE TITLE OR REGISTRATION RECORD UNLESS THE PERSON WHO REQUESTS THE INFORMATION PROVIDES TO THE DEPARTMENT ALL OF THE FOLLOWING:

(a) THE NAME OF THE OWNER.

(b) THE VEHICLE IDENTIFICATION NUMBER OF THE VEHICLE.

(c) THE VEHICLE LICENSE PLATE NUMBER ASSIGNED TO THE VEHICLE.

2. RELEASE A COPY OF A RECORD OR DIVULGE INFORMATION CONCERNING A PERSON'S DRIVING RECORD UNLESS THE PERSON REQUESTING THE DRIVING RECORD PROVIDES TO THE DEPARTMENT ALL OF THE FOLLOWING:

(a) THE NAME OF THE LICENSEE OR THE NAME OF THE PERSON WHOSE RECORD IS REQUESTED.

(b) THE DRIVER LICENSE NUMBER OF THE LICENSEE, A STATEMENT THAT THE PERSON WHOSE RECORD IS REQUESTED HAS NOT APPLIED FOR A LICENSE OR A STATEMENT THAT THE LICENSE HAS BEEN SUSPENDED OR REVOKED.

(c) THE DATE OF BIRTH OF THE LICENSEE OR THE EXPIRATION DATE OF THE DRIVER LICENSE OF THE LICENSEE.

B. SUBSECTION A OF THIS SECTION DOES NOT APPLY TO:

1. A STATE OR ITS DEPARTMENTS, AGENCIES OR POLITICAL SUBDIVISIONS.

2. ANY AGENT OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY WHO HAS A VALID CONTRACT TO CONDUCT THE RANDOM ON-ROAD TESTING PROGRAM PRESCRIBED BY SECTION 49-542.01.

3. A COURT.

4. A LAW ENFORCEMENT OFFICER.

5. A LICENSED PRIVATE INVESTIGATOR.

6. A FINANCIAL INSTITUTION OR ENTERPRISE UNDER THE JURISDICTION OF THE STATE BANKING DEPARTMENT OR A FEDERAL MONETARY AUTHORITY.

7. THE FEDERAL GOVERNMENT OR ITS AGENCIES.

8. AN ATTORNEY WHO IS ADMITTED TO PRACTICE IN THIS STATE AND WHO ALLEGES THAT THE INFORMATION IS RELEVANT TO A PENDING OR POTENTIAL COURT PROCEEDING.

9. A MOTOR VEHICLE DEALER WHO IS LICENSED AND BONDED BY THE DEPARTMENT OR A STATE ORGANIZATION OF LICENSED AND BONDED MOTOR VEHICLE DEALERS.

10. THE RELEASE OF ANY OF THE FOLLOWING INFORMATION TO A PERSON WHO IS INVOLVED IN AN ACCIDENT OR TO THE OWNER OF A VEHICLE INVOLVED IN AN ACCIDENT IF THE PERSON WHO REQUESTS THE INFORMATION SUBMITS PROOF TO THE DEPARTMENT OF INVOLVEMENT IN THE ACCIDENT:

(a) THE DRIVING RECORD OF A PERSON WHO OPERATES A MOTOR VEHICLE INVOLVED IN THE ACCIDENT.

(b) THE VEHICLE TITLE OR REGISTRATION RECORD OF A VEHICLE INVOLVED IN THE ACCIDENT.

11. THE RELEASE OF THE DRIVING RECORD OR TITLE AND REGISTRATION RECORD IF THAT RECORD IS FOR THE REQUESTER'S VEHICLE OR IS THE REQUESTER'S OWN DRIVING RECORD, EXCEPT THAT THE DIRECTOR MAY REQUIRE ANY INFORMATION FROM THE REQUESTER THAT IS DEEMED NECESSARY TO ENSURE THAT THE REQUESTER IS ENTITLED TO RECEIVE THE RECORD.

12. AN INSURER THAT WRITES AUTOMOBILE LIABILITY OR MOTOR VEHICLE LIABILITY POLICIES AND THAT IS UNDER THE JURISDICTION OF THE DEPARTMENT OF INSURANCE, EXCEPT THAT AN INSURER OR ITS AUTHORIZED AGENT REQUESTING INFORMATION PURSUANT TO SUBSECTION A OF THIS SECTION SHALL PROVIDE TWO OF THE THREE REQUIREMENTS UNDER SUBSECTION A, PARAGRAPH 1 OR 2 OF THIS SECTION BEFORE THE DEPARTMENT DIVULGES OR RELEASES THE INFORMATION.

13. THE RELEASE OF A TITLE AND REGISTRATION RECORD IF ALL OF THE FOLLOWING CONDITIONS EXIST:

(a) THE REQUESTER VERIFIES TO THE SATISFACTION OF THE DIRECTOR THAT THE VEHICLE ON WHICH THE REQUESTER IS REQUESTING THE RECORD IS IN THE REQUESTER'S POSSESSION.

(b) THE RECORD IS REQUESTED IN ORDER FOR THE REQUESTER TO NOTIFY THE REGISTERED OWNER OF THE REQUESTER'S INTENT TO APPLY TO THE DEPARTMENT FOR A BONDED TITLE.

(c) THE REQUESTER PROVIDES A VERIFICATION OF A VEHICLE INSPECTION THAT WAS PERFORMED BY AN AUTHORIZED DEPARTMENT EMPLOYEE OR AGENT.

C. AN AUTHORIZED AGENT SHALL PROMPTLY DELIVER INFORMATION RECEIVED FROM THE DEPARTMENT PURSUANT TO SUBSECTION A OF THIS SECTION AND SUBSECTION B, PARAGRAPH 12 OF THIS SECTION TO THE INSURER THAT ORIGINALLY REQUESTED THE INFORMATION. AN AUTHORIZED AGENT SHALL NOT COPY, RETAIN OR TRANSFER BY ANY MEANS ANY OF THE INFORMATION FOR THE AUTHORIZED AGENT'S OWN USE OR FOR USE BY PERSONS OTHER THAN THE INSURER THAT ORIGINALLY REQUESTED THE INFORMATION.

D. THE DEPARTMENT SHALL NOT RELEASE TO AN INSURER, BROKER, MANAGING GENERAL AGENT, AUTHORIZED AGENT OR INSURANCE AGENT ANY INFORMATION IN A PERSON'S DRIVING RECORD PERTAINING TO A TRAFFIC VIOLATION THAT OCCURRED FORTY MONTHS OR MORE BEFORE THE DATE OF THE REQUEST FOR THE RELEASE OF THE INFORMATION.

E. AN AUTHORIZED AGENT WHO COMMITS ANY OF THE FOLLOWING ACTS WITH REGARD TO INFORMATION RECEIVED PURSUANT TO SUBSECTION A OF THIS SECTION AND SUBSECTION B, PARAGRAPH 12 OF THIS SECTION IS GUILTY OF A CLASS 1 MISDEMEANOR:

1. USES A FALSE REPRESENTATION TO OBTAIN INFORMATION FROM A DEPARTMENT RECORD.

2. SELLS OR OTHERWISE DISTRIBUTES THE INFORMATION OBTAINED FROM THE DEPARTMENT TO A PERSON OR ORGANIZATION FOR PURPOSES THAT ARE NOT DISCLOSED IN THE REQUEST.

3. VIOLATES SUBSECTION C OF THIS SECTION.

F. FOR THE PURPOSES OF THIS SECTION, "AUTHORIZED AGENT" MEANS A THIRD PARTY RETAINED BY AN INSURER FOR THE PURPOSE OF REQUESTING DEPARTMENT INFORMATION PURSUANT TO SUBSECTION A OF THIS SECTION AND SUBSECTION B, PARAGRAPH 12 OF THIS SECTION BUT DOES NOT INCLUDE AN AGENT AS DEFINED IN SECTION 20-282, A BROKER AS DEFINED IN SECTION 20-283 OR A MANAGING GENERAL AGENT AS DEFINED IN SECTION 20-284.

28-9192 . Maintaining records

A. IF PURSUANT TO THIS TITLE AN APPLICATION OR RECORD IS REQUIRED TO BE FILED, AN INDEX IS REQUIRED TO BE MAINTAINED OR A RECORD IS REQUIRED TO BE COMPILED AND IF THE DIRECTOR ADOPTS RULES TO PROVIDE THAT THE FILING, INDEXING OR COMPILATION BE ACCOMPLISHED BY USE OF A COMPUTER SO THAT ON INQUIRY TO THE COMPUTER IT IS CAPABLE OF DISCLOSING AND REPRODUCING ALL INFORMATION REQUIRED BY LAW, THE DIRECTOR IS NOT REQUIRED TO FILE, COMPILE OR INDEX RECORDS OTHER THAN BY THE USE OF A COMPUTER.

B. IF A COMPUTER IS USED, THE DIRECTOR SHALL PRESERVE APPLICATIONS OR RECORDS FROM WHICH THE INFORMATION WAS OBTAINED FOR AS LONG AS REQUIRED BY LAW OR UNTIL A NEW APPLICATION IS FILED BY AN APPLICANT OR A NEW RECORD IS RECEIVED AND THE APPLICATION OR RECORD IS NO LONGER NEEDED TO CARRY OUT THE PROVISIONS OF THIS TITLE.

C. THE DIRECTOR IS NOT REQUIRED TO STORE SIGNATURES ON APPLICATIONS OR ON RECORDS.

28-9193 . Information supplied for commercial purposes; charges; violation; classification; definition

A. NOTWITHSTANDING SECTION 28-9188 AND IF A PERSON DOES NOT PROHIBIT DISCLOSURE ON FORMS PROVIDED PURSUANT TO SUBSECTION G OF THIS SECTION, THE DEPARTMENT MAY:

1. SUPPLY INFORMATION FOR COMMERCIAL PURPOSES IF THE INFORMATION IS TRANSMITTED IN A MACHINE READABLE FORM SUCH AS COMPUTER MAGNETIC TAPE TO THE PERSON MAKING THE REQUEST.

2. SELL RECORDS INFORMATION, EXCEPT DRIVER HISTORIES, FOR COMMERCIAL PURPOSES.

B. A COMMERCIAL RECORDS REQUESTER SHALL NOT SELL OR RELEASE A VEHICLE IDENTIFICATION NUMBER, LICENSE PLATE NUMBER, DRIVER LICENSE NUMBER OR DATE OF BIRTH THAT IS OBTAINED FROM THE RECORDS INFORMATION PURCHASED, EXCEPT THAT THE DIRECTOR MAY APPROVE SPECIFIC PURPOSES FOR WHICH A RECORDS INFORMATION REQUESTER MAY RELEASE THE VEHICLE IDENTIFICATION NUMBER TO A VEHICLE MANUFACTURER.

C. THE DEPARTMENT OR A COMMERCIAL RECORDS REQUESTER SHALL NOT SELL OR RELEASE AN INDIVIDUAL RECORD OR ANY RECORDS INFORMATION FOR ANY COMMERCIAL PURPOSE BASED ON A REQUEST THAT PROVIDES ONE OR MORE FACTORS UNIQUE TO A SINGLE RECORD, EXCEPT THAT THE DIRECTOR MAY APPROVE:

1. THE SALE OR RELEASE BY A RECORDS INFORMATION REQUESTER OF THE INFORMATION IF THE DIRECTOR DETERMINES THE SALE OR RELEASE IS NECESSARY FOR THE PUBLIC HEALTH OR SAFETY.

2. THE USE OF THE INFORMATION BY A RECORDS INFORMATION REQUESTER IF THE DIRECTOR DETERMINES THAT THE USE IS FOR GENERAL RESEARCH OR GENERAL STATISTICAL PURPOSES THAT DO NOT PROVIDE SPECIFIC FACTORS FROM A RECORD.

D. THE DIRECTOR SHALL CHARGE A MINIMUM OF SIX HUNDRED DOLLARS PER MILLION RECORDS SEARCHED AND A MINIMUM OF THIRTY DOLLARS PER THOUSAND RECORDS PROVIDED. THE DIRECTOR MAY PRORATE THE CHARGE FOR FRACTIONAL QUANTITIES THAT ARE SEARCHED OR PROVIDED.

E. THE DIRECTOR SHALL NOT PROVIDE RECORDS FOR A COMMERCIAL PURPOSE TO ANY PERSON CONVICTED OF A CLASS 1 MISDEMEANOR PURSUANT TO SUBSECTION H OF THIS SECTION FOR A PERIOD OF FIVE YEARS AFTER CONVICTION.

F. IN PROVIDING A RECORD FOR A COMMERCIAL PURPOSE, THE DEPARTMENT SHALL NOT DISCLOSE THE STREET OR RESIDENCE ADDRESS OF A PERSON WHO HAS PROVIDED THE DEPARTMENT WITH AN ALTERNATE MAILING ADDRESS FOR THE DRIVER RECORD, THE TITLE AND REGISTRATION RECORD OR THE MOBILE HOME RECORD. IF NO ALTERNATE MAILING ADDRESS HAS BEEN PROVIDED TO THE DEPARTMENT, THE DEPARTMENT SHALL PROVIDE THE STREET OR RESIDENCE ADDRESS OF THE PERSON TO THE COMMERCIAL REQUESTER.

G. THE DEPARTMENT SHALL PROVIDE IN A CLEAR AND CONSPICUOUS MANNER:

1. NOTICE ON FORMS FOR ISSUANCE OR RENEWAL OF DRIVER LICENSES, NONOPERATING IDENTIFICATION LICENSES, TITLE AND REGISTRATION THAT INFORMATION COLLECTED BY THE DEPARTMENT MAY BE DISCLOSED TO ANY PERSON REQUESTING INFORMATION FOR ANY COMMERCIAL PURPOSE PURSUANT TO THIS SECTION.

2. AN OPPORTUNITY ON FORMS FOR ISSUANCE OR RENEWAL OF DRIVER LICENSES, NONOPERATING IDENTIFICATION LICENSES, TITLE AND REGISTRATION FOR EACH PERSON WHO IS THE SUBJECT OF A RECORD OF THE DEPARTMENT TO PROHIBIT THE DISCLOSURE OF INFORMATION CONTAINED IN THE PERSON'S RECORD TO ANY PERSON REQUESTING INFORMATION FOR ANY COMMERCIAL PURPOSE PURSUANT TO THIS SECTION.

H. A PERSON WHO COMMITS ANY OF THE FOLLOWING ACTS WITH REGARD TO RECORDS REQUESTED FOR A COMMERCIAL PURPOSE IS GUILTY OF A CLASS 1 MISDEMEANOR:

1. WITHOUT AUTHORIZATION, KNOWINGLY DISCLOSES INFORMATION FROM ANY DEPARTMENT RECORD.

2. USES A FALSE REPRESENTATION TO OBTAIN INFORMATION FROM A DEPARTMENT RECORD.

3. USES INFORMATION OBTAINED FROM A DEPARTMENT RECORD FOR A PURPOSE OTHER THAN THE ONE STATED IN THE REQUEST.

4. SELLS OR MAKES OTHER DISTRIBUTION OF THE INFORMATION OBTAINED FROM THE DEPARTMENT TO A PERSON OR ORGANIZATION FOR PURPOSES THAT ARE NOT DISCLOSED IN THE REQUEST.

5. VIOLATES THIS SECTION.

I. FOR THE PURPOSES OF THIS SECTION, "COMMERCIAL PURPOSE" MEANS A PURPOSE THAT IS NOT ILLEGAL AND FOR WHICH THE REQUESTER CAN REASONABLY EXPECT A MONETARY GAIN THROUGH THE CONTACT OF PERSONS BY MAIL, THROUGH THE COMPILING OF STATISTICS OR BY PROVIDING RESEARCH SERVICES. COMMERCIAL PURPOSE DOES NOT MEAN THE USE OF A PUBLIC RECORD AS EVIDENCE OR AS RESEARCH FOR EVIDENCE IN AN ACTION IN A JUDICIAL OR QUASI-JUDICIAL BODY OF THIS STATE OR A POLITICAL SUBDIVISION OF THIS STATE.

28-9194 . Electronic transfer of information

THE DEPARTMENT MAY ACCEPT ELECTRONIC COMMUNICATION, TRANSFER OR RECEIPT OF ANY ABSTRACT, AFFIDAVIT, APPLICATION INFORMATION, COPY, FORM, ORDER, REPORT, RECORD OR OTHER INFORMATION PRESCRIBED IN THIS TITLE IN ACCORDANCE WITH RULES ADOPTED BY THE DIRECTOR.

28-9195 . Public records; peace officers; redaction

A. NOTWITHSTANDING SECTIONS 28-9188 AND 28-9193, A PEACE OFFICER MAY REQUEST THAT PERSONS BE PROHIBITED FROM ACCESSING THE PEACE OFFICER'S RESIDENTIAL ADDRESS AND TELEPHONE NUMBER CONTAINED IN ANY RECORD MAINTAINED BY THE DEPARTMENT.

B. A PEACE OFFICER MAY REQUEST THIS ACTION BY FILING AN AFFIDAVIT THAT STATES ALL OF THE FOLLOWING:

1. THE PEACE OFFICER'S NAME.

2. THE POSITION THE PEACE OFFICER CURRENTLY HOLDS AND A DESCRIPTION OF THE PEACE OFFICER'S DUTIES.

3. THE REASONS THE PEACE OFFICER REASONABLY BELIEVES THAT THE PEACE OFFICER'S LIFE OR SAFETY OR THAT OF ANOTHER PERSON IS IN DANGER AND THAT REDACTING THE RESIDENTIAL ADDRESS AND TELEPHONE NUMBER FROM THE DEPARTMENT'S PUBLIC RECORDS WILL SERVE TO REDUCE THE DANGER.

C. THE AFFIDAVIT SHALL BE FILED WITH THE PRESIDING JUDGE OF THE SUPERIOR COURT IN THE COUNTY IN WHICH THE AFFIANT RESIDES. TO PREVENT A MULTIPLICITY OF FILINGS, A PEACE OFFICER SHALL DELIVER THE AFFIDAVIT TO THE PEACE OFFICER'S COMMANDING OFFICER, WHO SHALL FILE THE AFFIDAVITS AT ONE TIME. IN THE ABSENCE OF AN AFFIDAVIT THAT CONTAINS A REQUEST FOR IMMEDIATE ACTION AND THAT IS SUPPORTED BY FACTS JUSTIFYING AN EARLIER PRESENTATION, THE COMMANDING OFFICER SHALL NOT FILE MORE OFTEN THAN QUARTERLY AFFIDAVITS OF PEACE OFFICERS PRESENTED TO THE COMMANDING OFFICER.

D. ON RECEIPT OF AN AFFIDAVIT OR AFFIDAVITS, THE PRESIDING JUDGE OF THE SUPERIOR COURT SHALL CAUSE TO BE FILED WITH THE CLERK OF THE SUPERIOR COURT A PETITION ON BEHALF OF ALL REQUESTING PEACE OFFICERS. EACH AFFIDAVIT PRESENTED SHALL BE ATTACHED TO THE PETITION. IN THE ABSENCE OF AN AFFIDAVIT THAT CONTAINS A REQUEST FOR IMMEDIATE ACTION AND THAT IS SUPPORTED BY FACTS JUSTIFYING AN EARLIER CONSIDERATION, THE PRESIDING JUDGE MAY ACCUMULATE AFFIDAVITS AND FILE A PETITION AT THE END OF EACH QUARTER.

E. THE PRESIDING JUDGE OF THE SUPERIOR COURT SHALL REVIEW THE PETITION AND EACH ATTACHED AFFIDAVIT TO DETERMINE WHETHER THE ACTION REQUESTED BY EACH PEACE OFFICER SHOULD BE GRANTED. THE PRESIDING JUDGE OF THE SUPERIOR COURT SHALL ORDER THE REDACTION OF THE RESIDENCE ADDRESS AND TELEPHONE NUMBER FROM THE PUBLIC RECORDS MAINTAINED BY THE DEPARTMENT IF THE JUDGE CONCLUDES THAT THIS ACTION WILL REDUCE A DANGER TO THE LIFE OR SAFETY OF THE AFFIANT OR ANOTHER PERSON.

F. ON ENTRY OF THE COURT ORDER, THE CLERK OF THE SUPERIOR COURT SHALL FILE THE COURT ORDER WITH THE DEPARTMENT. NO MORE THAN ONE HUNDRED FIFTY DAYS AFTER THE DATE THE DEPARTMENT RECEIVES THE COURT ORDER, THE DEPARTMENT SHALL REDACT THE RESIDENCE ADDRESSES AND TELEPHONE NUMBERS OF THE PEACE OFFICERS LISTED IN THE COURT ORDER FROM THE PUBLIC RECORDS OF THE DEPARTMENT. THE RESIDENCE ADDRESS AND TELEPHONE NUMBER SHALL NOT BE DISCLOSED AND ARE NOT PART OF A PUBLIC RECORD.

G. IF THE COURT DENIES AN AFFIANT'S REQUEST PURSUANT TO THIS SECTION, THE AFFIANT MAY REQUEST A COURT HEARING. THE HEARING SHALL BE CONDUCTED BY THE COURT IN THE COUNTY WHERE THE PETITION WAS FILED.

Sec. 101. Section 30-654, Arizona Revised Statutes, is amended to read:

30-654 . Powers and duties of the agency

A. The agency may:

1. Accept grants or other contributions from the federal government or other sources, public or private, to be used by the agency to carry out any of the purposes of this chapter.

2. Do all things necessary, within the limitations of this chapter, to carry out the powers and duties of the agency.

3. Conduct an information program, including but not limited to:

(a) Providing information on the control and regulation of sources of radiation and related health and safety matters, on request, to members of the legislature, the executive offices, state departments and agencies and county and municipal governments.

(b) Providing such published information, audiovisual presentations, exhibits and speakers on the control and regulation of sources of radiation and related health and safety matters to the state's educational system at all educational levels as may be arranged.

(c) Furnishing to citizen groups, on request, speakers and such audiovisual presentations or published materials on the control and regulation of sources of radiation and related health and safety matters as may be available.

(d) Conducting, sponsoring or cosponsoring and actively participating in the professional meetings, symposia, workshops, forums and other group informational activities concerned with the control and regulation of sources of radiation and related health and safety matters when representation from this state at such meetings is determined to be important by the agency.

B. The agency shall:

1. Regulate the use, storage and disposal of sources of radiation.

2. Establish procedures for purposes of selecting any proposed permanent disposal site located within this state for low level radioactive waste.

3. Coordinate with the department of transportation and the corporation commission MOTOR VEHICLES in regulating the transportation of sources of radiation.

4. Assume primary responsibility for and provide necessary technical assistance to handle any incidents, accidents and emergencies involving radiation or sources of radiation occurring within this state.

5. Adopt rules deemed necessary to administer this chapter in accordance with title 41, chapter 6.

6. Adopt uniform radiation protection and radiation dose standards to be as nearly as possible in conformity with, and in no case inconsistent with, the standards contained in the regulations of the United States nuclear regulatory commission and the standards of the United States public health service. In the adoption of the standards, the agency shall consider the total occupational radiation exposure of individuals, including that from sources not regulated by the agency.

7. Adopt rules for personnel monitoring under the close supervision of technically competent people in order to determine compliance with safety rules adopted under this chapter.

8. Adopt a uniform system of labels, signs and symbols and the posting of the labels, signs and symbols to be affixed to radioactive products, especially those transferred from person to person.

9. By rule require adequate training and experience of persons utilizing sources of radiation with respect to the hazards of excessive exposure to radiation in order to protect health and safety.

10. Adopt standards for the storage of radioactive material and for security against unauthorized removal.

11. Adopt standards for the disposal of radioactive materials into the air, water and sewers and burial in the soil in accordance with 10 Code of Federal Regulations part 20.

12. Adopt rules applicable to the shipment of radioactive materials in conformity with and compatible with those established by the United States nuclear regulatory commission, the department of transportation, the treasury department and the United States postal service.

13. In individual cases, impose additional requirements to protect health and safety or grant necessary exemptions which will not jeopardize health or safety, or both.

14. Make recommendations to the governor and furnish such technical advice as required on matters relating to the utilization and regulation of sources of radiation.

15. Make an annual report to the governor and the legislature.

16. Conduct or cause to be conducted off-site radiological environmental monitoring of the air, water and soil surrounding any fixed nuclear facility, any uranium milling and tailing site and any uranium leaching operation, and maintain and report the data or results obtained by the monitoring as deemed appropriate by the agency.

17. Develop and utilize information resources concerning radiation and radioactive sources.

18. Prescribe by rule a schedule of fees to be charged to licensees and registrants of radiation sources which fees shall cover a significant portion of the reasonable costs associated with processing the application for license or registration , AND renewal or amendment of the license or registration and the costs of inspecting the licensee or registrant activities and facilities, including the cost to the agency of employing clerical help, consultants and persons possessing technical expertise and using analytical instrumentation and information processing systems.

19. Adopt rules establishing radiological standards, personnel standards and quality assurance programs to assure the accuracy and safety of screening and diagnostic mammography.

C. Notwithstanding section 30-674, All fees collected under subsection B, paragraph 18 of this section shall be deposited in the state general fund.

Sec. 102. Section 32-2351, Arizona Revised Statutes, is amended to read:

32-2351 . Definitions

In this chapter, unless the context otherwise requires:

1. "Director" means the director of the department of transportation MOTOR VEHICLES .

2. "Instructor" means any person, whether acting for himself as operator of a professional driver training school or for any such school for compensation, who teaches, conducts classes of, gives demonstrations to, or supervises practice of persons learning to operate or drive motor vehicles or preparing to take an examination for a driver's DRIVER license or instruction permit, and any person who supervises the work of any other such instructor.

3. "Professional driver training school" or "school" means a business enterprise conducted by an individual, association, partnership, or corporation for the education and training of persons, either practically or theoretically, or both, to operate or drive motor vehicles, to prepare an applicant for an examination given by the state for a driver's DRIVER license or instruction permit, and charging a consideration or tuition for such services.

Sec. 103. Section 32-2371, Arizona Revised Statutes, is amended to read:

32-2371 . License for schools; requirements; suspension of license

A. No professional driver training school shall be established nor shall any such existing school be continued on or after March 13, 1968 unless such school applies for and obtains from the director a license in the manner and form prescribed by the director.

B. Rules adopted by the director shall state the requirements for a school license, including requirements concerning location, equipment, courses of instruction, instructors, previous records of the school and instructors, schedule of fees and charges, character and reputation of the operators and instructors, insurance in such sum and with such provisions as the director deems necessary to protect adequately the interests of the public, and such other matters as the director may prescribe for the protection of the public.

C. The director of the department of transportation MOTOR VEHICLES shall suspend the license of a professional driver training school that has elected to participate in the student tuition recovery fund on notification by the state board for private postsecondary education that the school has failed to pay an assessment to the fund pursuant to section 32-3072. The suspension remains in effect until the professional driver training school has paid the assessment in full.

Sec. 104. Section 35-101, Arizona Revised Statutes, is amended to read:

35-101 . Definitions

In this chapter, unless the context otherwise requires:

1. "Allotment" means the allocation of an appropriation or other fund source over a full fiscal year within a budget program or expenditure class.

2. "Budget estimates" means statements with accompanying explanations, as provided by this chapter, in which a budget unit states its financial requirements and requests appropriations.

3. "Budget program" means functions and activities of a budget unit or within a budget unit that are preplanned to fulfill a distinct mission.

4. "Budget unit" means any department, commission, board, institution or other agency of the state organization receiving, expending or disbursing state funds or incurring obligations against the state. Budget unit includes the major budget units.

5. "Claim" means a demand against the state for payment for either:

(a) Goods delivered or, in the case of highway construction, goods or facilities to be delivered by the federal government.

(b) Services performed.

6. "Encumbrance" means an obligation in the form of any purchase order, contract or other commitment which is chargeable to an appropriation or any other authorized fund source and for which a part of such fund source is reserved. It ceases to be an encumbrance when paid or canceled.

7. "Expenditure class" means one of the kinds of expenditure denoting a class of services or commodities purchased or properties acquired as specified in the classification of expenditures prescribed by the director of the department of administration for use in expenditure accounting, in making budget estimates and in the budget reports and budgets.

8. "Major budget units" means the following agencies:

(a) The department of education.

(b) The Arizona board of regents, Arizona state university, Arizona state university west campus, Arizona state university east campus, the university of Arizona and northern Arizona university.

(c) The department of economic security.

(d) The state department of corrections.

(e) The department of juvenile corrections.

(f) The Arizona health care cost containment system.

(g) The department of health services.

(h) The state board of directors for community colleges.

(i) The judiciary, including the supreme court, the court of appeals, the superior court, the commissions on appellate and trial court appointments and the commission on judicial conduct.

(j) The department of administration.

(k) The department of transportation.

( l ) THE DEPARTMENT OF MOTOR VEHICLES.

9. "Prepayment" means the payment of a claim before receiving the goods or services.

10. "Purchase order" means a document that is signed by the appropriate agency authorized signatory , that requests a vendor to deliver described goods or services at a specific price and that on delivery and acceptance of the goods or services by this state becomes an obligation of this state.

Sec. 105. Section 35-116, Arizona Revised Statutes, is amended to read:

35-116 . Supervisory powers of governor relating to budget report; exceptions

A. Prior to submission of the budget report to the legislature, the governor shall examine the statements and estimates and shall make or cause to be made such further investigations, with such hearings before the governor, or his designee, and shall make such changes or revisions in appropriations requested as he deems advisable.

B. The judiciary and the legislature shall not be subject to the control of the governor in the preparation and submission of budgets, but such organizations shall submit their requests for appropriations for the ensuing fiscal year to the governor for review by the legislature.

C. The appropriation requests of the Arizona board of regents , THE DEPARTMENT OF MOTOR VEHICLES and the department of transportation for the ensuing fiscal year may be revised by the governor , but he shall also submit the appropriation request prepared and submitted by such budget unit in its original form to the legislature for review.

Sec. 106. Section 36-851, Arizona Revised Statutes, is amended to read:

36-851 . Request for corneal tissue; conditions for removal of corneal tissue; consent of next of kin; definition

A. Upon a request for corneal tissue from an authorized official of an eye bank or storage facility as defined under IN section 36-841 , paragraph 1 or the licensed physician of a patient in need of corneal tissue for a transplant, a county medical examiner or the person performing such duties may authorize the taking of corneal tissue if ALL OF THE FOLLOWING ARE TRUE :

1. The decedent from whom the tissue is to be taken died under circumstances requiring an inquiry by the county medical examiner or the person performing such duties . ; and

2. The removal of corneal tissue will not interfere with the subsequent investigation or autopsy or alter the postmortem facial appearance . ; and

3. Any of the following circumstances exists:

(a) The written or verbal consent of the decedent's next of kin is known or obtained.

(b) When the decedent has indicated pursuant to article 3 of this chapter that the organ may be removed.

(c) If permission has not been refused and a check cannot be made pursuant to article 3 of this chapter because the DEPARTMENT OF motor vehicle division VEHICLES is closed, when a written or verbal consent by the next of kin of the decedent cannot be obtained by the county medical examiner or the person performing such duties, solely because after diligent effort is made the next of kin cannot be contacted.

B. For the purposes of this section, the decedent's next of kin means:

1. The decedent's spouse.

2. If there is no spouse, the decedent's adult children.

3. If there are no adult children or spouse, the decedent's parents.

4. If there are no parents, adult children or spouse, the decedent's sibling.

C. For the purposes of this section, "diligent effort" means that for a period of not less than four nor more than five hours following the time of death as verified by the medical examiner's office, the medical examiner or person designated by the medical examiner shall attempt to notify the decedent's next of kin by telephone at fifteen minute intervals. In the event that it is known that the decedent's next of kin does not have a telephone, the medical examiner or person designated by the medical examiner shall attempt to contact the next of kin in person. The attempt to notify shall be verified in writing by the medical examiner or person designated by the medical examiner and one witness and shall be kept on file at the medical examiner's office or such place as designated by the medical examiner.

Sec. 107. Section 36-2023, Arizona Revised Statutes, is amended to read:

36-2023 . Rules of the division

A. The division, with the approval of the director, shall adopt and enforce rules which establish standards for approved public and private treatment facilities which must be met for a treatment facility to be approved. The division periodically shall inspect approved facilities at reasonable times and in a reasonable manner. Each approved public and private treatment facility shall file with the division on request data, statistics, schedules or information the division reasonably requires. An approved facility that without good cause fails to furnish any data, statistics, schedules or information as requested or that files fraudulent returns thereof shall be removed from the list of approved treatment facilities.

B. The division in compliance with subsection A shall adopt and may amend or repeal rules for the acceptance of persons into a treatment program, in light of the available treatment resources and facilities, with a view to the early and effective provision of evaluation and treatment for alcoholics and intoxicated persons. In establishing the rules, the division shall be guided by the following standards:

1. An intoxicated person or person incapacitated by alcohol, who voluntarily seeks treatment or who is transported to an approved facility by a peace officer or other person, shall be initially brought to and evaluated at a local alcoholism reception center.

2. A person shall receive an initial evaluation.

3. A patient shall be initially assigned or transferred to outpatient treatment or intermediate treatment, unless he THE PATIENT is found to require inpatient treatment.

4. A person shall not be denied treatment solely because he THE PERSON has withdrawn from treatment against medical advice on a prior occasion or because he THE PERSON has relapsed after earlier treatment.

5. An individualized treatment plan shall be prepared and maintained on a current basis for each patient.

6. Provision shall be made for a continuum of coordinated treatment services, so that a person who leaves the facility or another form of treatment will have available and utilize other appropriate treatment.

C. The division shall:

1. Enlist the assistance of all public and private agencies, organizations and individuals engaged in the prevention of alcoholism and treatment of alcoholics and intoxicated persons at approved public and private facilities.

2. Cooperate with the state department of corrections in establishing and conducting programs to provide treatment for alcoholics in penal institutions and alcoholics on parole or community supervision from penal institutions at approved public and private facilities.

3. Cooperate with the department of education, schools, police departments, courts and other public and private agencies, organizations and individuals in establishing programs for the prevention of alcoholism and treatment of alcoholics and intoxicated persons and in preparing curriculum materials thereon for use at all levels of school education.

4. Specify a uniform method for keeping statistical information by approved public and private treatment facilities and collect and make available relevant statistical information including the number of persons treated, frequency of admission, and readmission and frequency and duration of treatment.

5. Cooperate with the department of transportation MOTOR VEHICLES in establishing and conducting programs designed to deal with the problem of persons operating motor vehicles while intoxicated.

6. Prepare an annual report on drug abuse treatment programs in this state that receive funds from the division to be submitted by January 1 of each year to the governor, the president of the senate and the speaker of the house of representatives and to be made available to the general public through the Arizona drug and gang prevention resource center. The report shall include:

(a) The name and location of each program.

(b) The amount and sources of funding for each program.

(c) The number of clients who received services during the preceding fiscal year.

(d) A description of the demographic characteristics of the client population served by each program including age groups, gender, and ethnicity.

(e) A description of client problems addressed by the programs including the types of substances abused.

(f) A summary of the numbers and types of services available and provided during the preceding fiscal year.

(g) An evaluation of the results achieved by the programs.

Sec. 108. Section 36-2243, Arizona Revised Statutes, is amended to read:

36-2243 . Interagency service agreement

The department may enter into an interagency service agreement with the department of transportation MOTOR VEHICLES pursuant to section 35-148 to implement the provisions of this chapter.

Sec. 109. Section 41-608.01, Arizona Revised Statutes, is amended to read:

41-608.01 . State home for veterans trust fund; purpose

A. A state home for veterans trust fund is established in the state treasury. The commission shall administer the fund for the sole purpose of operating and maintaining state operated nursing and domiciliary homes for Arizona veterans.

B. The fund consists of monies transmitted to the state treasurer by:

1. The director of the department of transportation MOTOR VEHICLES pursuant to section 28-2414.

2. The commission from monies generated by operating the Arizona veterans' home.

C. Monies in the fund are subject to annual appropriation by the legislature. The fund is exempt from the provisions of section 35-190 relating to lapsing of appropriations. Any monies in the fund remaining unexpended or unencumbered at the end of the fiscal year do not revert to the state general fund.

D. On notice from the commission, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

Sec. 110. Section 41-790.01, Arizona Revised Statutes, is amended to read:

41-790.01 . Exemptions; exception

A. There shall be exempt from the provisions of this article relating to capital improvement plans:

1. Land acquisition, capital projects or building renewal by any state agency if the total cost of the entire acquisition, project or building renewal will not exceed twenty-five thousand dollars.

2. Programs, projects or improvements of the state transportation board relating to the construction, reconstruction, improvement or maintenance of state highways or bridges.

B. The state board of directors for community colleges is exempt from the provisions of this article, except that if the state board of directors for community colleges requests an appropriation pursuant to section 15-1464, subsection C, the state board of directors for community colleges shall follow the provisions of section 41-793, subsections C and D for the campuses or projects for which the monies are requested and shall submit the required information to the department of administration.

C. Land acquisition, capital projects and building renewal relating to buildings which serve as offices for the department of transportation AND DEPARTMENT OF MOTOR VEHICLES shall not be exempt.

Sec. 111. Section 41-791, Arizona Revised Statutes, is amended to read:

41-791 . Powers and duties relating to public buildings maintenance; compensation of personnel

A. The department is responsible for the direction and control of public buildings maintenance as prescribed in this article.

B. The department is responsible for the allocation of space, operation, alteration, renovation and security of the following buildings:

1. The state capitol executive tower of the state capitol building.

2. The state office buildings in Tucson.

3. All other buildings owned or leased by the state and located near the state capitol building and the state office buildings in Tucson, except for:

(a) Buildings occupied, operated and maintained by the following state agencies:

(i) The department of transportation.

(ii) The Arizona power authority.

(iii) The state compensation fund.

( iv ) THE DEPARTMENT OF MOTOR VEHICLES.

(b) The state capitol museum, the legislative services wing, house of representatives and senate wings of the state capitol building and the public records retention center subject to section 41-1304.

(c) The department of economic security facilities purchased with federal funding assistance and exclusively and continuously operated and maintained for its own occupancy.

(d) The Arizona courts building.

C. The department is responsible for the maintenance of the following buildings and grounds:

1. The entire state capitol building and the grounds adjacent to it.

2. The state office buildings in Tucson and the grounds adjacent to them.

3. Other buildings and grounds owned or leased by the state if the function is not otherwise assigned, except for the interior of the Arizona courts building.

D. The director may establish rules for the operation, maintenance and security of buildings and grounds under his jurisdiction.

E. The department shall:

1. Employ engineers and maintenance and operations personnel as required, including a buildings manager for the state office buildings in Tucson.

2. Determine the hours of duty and assignment of personnel.

F. All personnel employed under this article are eligible to receive compensation as determined under section 38-611.

Sec. 112. Section 41-792.01, Arizona Revised Statutes, is amended to read:

41-792.01 . Capital outlay stabilization fund; authorization for collection of rental; basis of payment; distribution of monies collected; transfer of payment; definition

A. The capital outlay stabilization fund is established which shall consist of monies paid into it in accordance with the provisions of subsection D of this section and legislative appropriations to the account. All monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The director shall make a recommendation for the allocation of a varying sum to the capital outlay stabilization fund each year. No part of the fund may be expended without specific appropriation from the legislature.

C. Each state department and each state agency when using space under the jurisdiction of the department as prescribed in section 41-791 or when using space in a building owned by or leased to the state shall pay a rental as prescribed in subsection D or E of this section.

D. The rental rate authorized for agencies occupying state owned buildings shall be determined by the joint committee on capital review after recommendation by the director prior to the beginning of each fiscal year. The rental is payable whether the department or agency is funded in whole or in part by state monies. The department of administration shall transfer the entire amount of the rental fee assessed on an agency from the agency account into the capital outlay stabilization fund promptly at the start of each fiscal year. During the remainder of the fiscal year, the department of administration shall calculate pro rata adjustments to the rental fee on a monthly basis to reflect any changes in the occupancy of state owned buildings. The department shall transfer the amount of the rental fee adjustment assessed on an agency from the agency account into the capital outlay stabilization fund. The rental fee authorized for agencies occupying state owned buildings is the greater of the amount included in each agency's annual operating budget as reported by the staff of the joint legislative budget committee or the pro rata adjusted amount based on actual occupancy. The director of the department of administration, upon recommendation of the joint committee on capital review, may authorize an exemption for one year at a time for an agency from the full payment account transfer requirements of this subsection if the agency can demonstrate a practice of making full payment of rent on a different basis necessitated by its cash flow. If an agency does not occupy or vacates state owned space after the beginning of the fiscal year, the director of the department of administration, on recommendation of the joint committee on capital review, may authorize a whole or partial exemption from payment of the rental fee. The department of administration shall report quarterly to the director of the joint legislative budget committee on the status of rental fee collections and adjustments.

E. The rental authorized for agencies occupying state leased buildings shall be the greater of the amount included in each agency's annual operating budget as reported by the staff of the joint legislative budget committee or the pro rata adjusted amount based on actual occupancy. The rental amount shall include the amount necessary to pay the lease or lease-purchase obligation and may include the amount necessary to pay operating costs associated with the lease-purchase buildings. The rental is payable whether the department or agency is funded in whole or in part by state monies. At the start of each fiscal year, the department of administration shall transfer the entire amount of the rental fee assessed on an agency from the agency account into the department of administration's fund established for the purposes of this subsection. The department shall transfer from the applicable state agency budgets amounts necessary to pay all operating costs associated with a lease-purchase building in the amounts reported by the staff of the joint legislative budget committee. During the remainder of the fiscal year, the department of administration shall calculate pro rata adjustments to the rental fee on a monthly basis to reflect any changes in the occupancy of state leased buildings. The director of the department of administration, on recommendation of the joint committee on capital review, may authorize an exemption for an agency from the full payment account transfer requirements of this subsection for one year periods if the agency can demonstrate a practice of making full payment of rent on a different basis necessitated by its cash flow. If an agency does not occupy or vacates state leased space after the beginning of the fiscal year, the director of the department of administration, on recommendation of the joint committee on capital review, may authorize a whole or partial exemption from payment of the rental fee.

F. State universities, community colleges , THE DEPARTMENT OF MOTOR VEHICLES and the department of transportation are exempt from the provisions of this section, except when these agencies are using space under the jurisdiction of the department of administration.

G. For the purposes of this section, "state department" or "state agency" means any department or agency of the executive or judicial branch of state government.

Sec. 113. Section 41-803, Arizona Revised Statutes, is amended to read:

41-803 . Operation of state motor vehicle fleet; energy conservation; alternative fuels; definition

A. The director shall operate a motor vehicle fleet for all state owned motor vehicles which shall be made available at convenient locations in the state for the purpose of providing transportation for state officers and employees, except those officers and employees of any agency or department excluded by subsection E of this section.

B. The director may adopt rules necessary to the administration of the motor vehicle fleet.

C. The director shall provide for detailed cost, operation, maintenance, mileage and custody records for each state owned vehicle. The director may assign motor vehicles on an individual trip or permanent basis , but is responsible for vehicle maintenance.

D. Each state department and agency shall pay from available funds the cost of motor vehicle services received from the state motor vehicle fleet. The cost of motor vehicle service shall be determined by the director.

E. The following departments and agencies are excluded from participation in the state motor vehicle fleet:

1. Department of public safety.

2. Department of transportation.

3. Department of economic security.

4. State department of corrections.

5. Universities and community colleges.

6. Arizona state schools for the deaf and the blind.

7. DEPARTMENT OF MOTOR VEHICLES.

F. The director, in consultation with the department of commerce energy office, shall develop and implement a program that requires the systematic replacement of existing state owned vehicles with vehicle models that, according to the United States environmental protection agency guidelines, achieve the highest fuel economy estimates within their vehicle class and shall encourage and progressively increase the use of alternative fuels in state owned vehicles in accordance with life cycle costing.

G. As the fleet is replaced, the department shall do so with factory manufactured vehicles, converted factory manufactured vehicles or converted state fleet vehicles that are capable of using alternative fuels. If an alternative fuel vehicle purchased or converted pursuant to this section uses compressed natural gas, the department shall give a preference to a vehicle with a fuel system certified to operate at three thousand six hundred pounds per square inch or greater.

H. The director may waive the requirements of subsection G of this section for any state agency on receipt of certification supported by evidence acceptable to the department that:

1. The agency's vehicles will be operating primarily in an area in which neither the agency nor a supplier has ESTABLISHED or can reasonably be expected to establish a central refueling station for alternative fuels.

2. The agency is unable to acquire or be provided equipment or refueling facilities necessary to operate vehicles using alternative fuels at a projected cost that is reasonably expected to result in net costs of no greater than thirty per cent more than the net costs associated with the continued use of traditional gasoline or diesel fuels measured over the expected useful life of the equipment or facilities supplied. Applications for waivers shall be filed with the department of commerce energy office pursuant to section 41-1516.01.

I. The director, in the development of the fuel reduction and alternative fuel use program, shall work with state motor vehicle fleet operators, vehicle manufacturers, fuel distributors and others to delineate the vehicles to be covered, taking into consideration range, specialty uses, fuel availability, vehicle cost, vehicle manufacturing capability, safety, resale values and other relevant factors. The state motor vehicle fleet may meet the requirements of subsection G of this section through purchase of new vehicles or the conversion of existing vehicles, in accordance with federal and state requirements and applicable safety laws, to use the alternative fuels. The director, in purchasing, leasing, maintaining or converting vehicles for alternative fuel use, shall comply with all applicable safety standards promulgated by the United States department of transportation. The department of administration may require written certification from the converter that converted vehicles meet all applicable safety standards promulgated by the United States department of transportation.

J. The department of administration may acquire or be provided equipment or refueling facilities necessary to operate such vehicles using alternative fuels:

1. By purchase or lease as authorized by law.

2. By gift or loan of the equipment or facilities.

3. By gift or loan of the equipment or facilities or any other arrangement pursuant to a service contract for the supply of alternative fuels.

K. The director of the department of administration and the department of commerce energy office shall develop and implement a vehicle fleet energy conservation plan for the purposes of reducing vehicle fuel consumption and to encourage and progressively increase the use of alternative fuels in state owned vehicles. The plans shall include:

1. A timetable by which fleet vehicles shall be replaced with vehicles that have demonstrated high fuel economy estimates within their vehicle class.

2. A timetable for increasing the use of alternative fuels in fleet vehicles either through purchase or conversion. The timetable shall reflect the following schedule and percentage of vehicles which operate on alternative fuels:

(a) Not less than forty per cent of the total fleet by December 31, 1995.

(b) Not less than ninety per cent of the total fleet operating primarily in counties with populations exceeding one million two hundred thousand persons according to the most recent federal decennial census by December 31, 1997.

3. Options for increasing, whenever possible, the use of vehicles that have the capability to use available alternative fuels, or vehicles that may be economically converted, if needed, for the use of alternative fuels.

4. Options for the use of demonstrated innovative technologies that promote energy conservation and reduced fuel consumption.

5. Methods that promote efficient trip planning and state vehicle use.

6. Car pooling and van pooling for agency employees for commuting and job related travel.

L. The director of the department of administration shall identify specific vehicle models within each vehicle class that would meet the demands of each state agency and that demonstrate a high degree of fuel economy. Vehicle classes and fuel economy comparisons shall be based on United States department of energy and United States environmental protection agency data pursuant to title 15, United States Code sections 2003 through 2006.

M. The director of the department of administration shall develop a vehicle fleet plan for each agency and for the vehicular demands of the agency by vehicle class.

N. Subsections G through M of this section do not apply to the purchase or lease of a vehicle to be used primarily for criminal law enforcement or to the purchase or lease of a motorcycle, all-terrain vehicle or ambulance.

O. The departments and agencies excluded from participation in the state motor vehicle fleet pursuant to subsection E of this section shall develop and implement a program for alternative fuels and fuel economy for their motor vehicle fleets substantially similar to the standards set forth in this section.

P. For the purposes of this section, "alternative fuels" means any of the following fuel types or power sources:

1. Liquefied petroleum gas.

2. Natural gas.

3. Hydrogen or a blend of hydrogen with liquefied petroleum or natural gas.

4. Alcohol fuels that contain not less than eighty-five per cent alcohol by volume.

5. Electricity.

6. Solar energy.

Sec. 114. Section 41-1092.02, Arizona Revised Statutes, is amended to read:

41-1092.02 . Appealable agency actions; application of procedural rules; exemption from article

A. This article applies to all contested cases as defined in section 41-1001 and all appealable agency actions, except contested cases with or appealable agency actions of:

1. The state department of corrections.

2. The board of executive clemency.

3. The industrial commission of Arizona.

4. The Arizona corporation commission.

5. The Arizona board of regents and institutions under its jurisdiction.

6. The state personnel board.

7. The department of juvenile corrections.

8. The department of transportation.

9. The Arizona health care cost containment system.

10. The department of economic security except as provided in section 8-506.01.

11. The department of revenue regarding income tax, withholding tax or estate tax or any tax issue related to information associated with the reporting of income tax, withholding tax or estate tax.

12. The board of tax appeals.

13. The state board of equalization.

14. THE DEPARTMENT OF MOTOR VEHICLES.

B. Unless waived by all parties, an administrative law judge assigned by the office shall conduct all hearings under this article, and the procedural rules set forth in article 6 of this chapter and rules adopted by the director apply.

C. Except as provided in subsection A of this section:

1. A contested case heard by the office of administrative hearings regarding taxes administered under title 42 shall be subject to the provisions under section 42-122.

2. A final decision of the office of administrative hearings regarding taxes administered under title 42 may be appealed by either party to the director of the department of revenue, or a taxpayer may file and appeal directly to the board of tax appeals pursuant to section 42-124.

D. Except as provided in subsections A and E of this section and notwithstanding any other administrative proceeding established in statute or administrative rule, sections 41-1092.03 through 41-1092.11 apply to all appealable agency actions and sections 41-1092.04, 41-1092.05, 41-1092.07, 41-1092.08, 41-1092.09, 41-1092.10 and 41-1092.11 apply to all contested cases except contested cases with or appealable agency actions of self-supporting regulatory agencies that are supervised by boards or commissions whose members are appointed by the governor.

E. Sections 41-1092.03, 41-1092.08, 41-1092.09, 41-1092.10 and 41-1092.11 do not apply to the department of revenue.

Sec. 115. Section 41-1292.03, Arizona Revised Statutes, is amended to read:

41-1292.03 . Joint legislative review committee on transportation between Sonora, Mexico and Arizona

A. The joint legislative review committee on transportation between Sonora, Mexico and Arizona is established. The committee consists of:

1. Two members of the senate who are appointed by the president of the senate, one from each political party.

2. Two members of the house of representatives who are appointed by the speaker of the house of representatives, one from each political party.

3. The chairperson of the committee in the house of representatives that considers transportation issues who serves as cochairperson.

4. The chairperson of the committee in the senate that considers transportation issues who serves as cochairperson.

5. The director of the department of commerce.

6. Two members ONE MEMBER from the department of transportation with expertise in intermodal transportation systems who are IS appointed by the director of the department of transportation.

7. ONE MEMBER FROM THE DEPARTMENT OF MOTOR VEHICLES WHO IS APPOINTED BY THE DIRECTOR OF THE DEPARTMENT OF MOTOR VEHICLES.

7. 8. Three members of the public, one of whom has expertise in intermodal transportation systems, who are appointed by the governor.

B. The committee shall:

1. Coordinate efforts of the committee as reasonably practicable with a like committee established by Sonora, Mexico.

2. Study issues and problems concerning transportation between Sonora, Mexico and this state, including the following:

(a) The need to modify and improve border crossing procedures and facilities.

(b) The advantages and disadvantages of issuing temporary travel permits to Mexican commercial vehicles entering this state.

(c) The commercial impact of a deep sea port in Guaymas, Mexico.

(d) The potential impact of transporting hazardous materials between Sonora, Mexico and this state.

(e) The current and any anticipated changes in the type and volume of traffic on highways that carry commercial vehicles to the border between Sonora, Mexico and this state.

(f) Environmental and safety problems caused by the type and volume of traffic on highways that carry commercial vehicles to the border between Sonora, Mexico and this state.

(g) Potential financing of any highway construction or planning, or both, that may be recommended by the committee.

(h) The impact of foreign commercial vehicles on the transportation infrastructure of this state.

(i) The balance between revenues collected at ports of entry on the border between Sonora, Mexico and this state and the costs associated with maintaining the transportation infrastructure within twenty-five miles of the border between Sonora, Mexico and this state.

3. Provide recommendations to the legislature that will help alleviate the current environmental, transportation infrastructure and safety problems caused by the type and volume of traffic on highways that carry commercial vehicles to the border between Sonora, Mexico and this state and transportation problems experienced by businesses located on both sides of the border between Sonora, Mexico and this state, that will improve road, air and rail transportation between Sonora, Mexico and this state and regarding highway construction and planning of highways that carry commercial vehicles to the border between Sonora, Mexico and this state.

4. Submit a report with its recommendations on or before December 1 of each year to the president of the senate, the speaker of the house of representatives, the governor, the chairman of the state transportation board and the committee established by Sonora, Mexico.

C. The members of the committee are not eligible to receive compensation, but the members who are appointed pursuant to subsection A, paragraph 7 8 are eligible to receive reimbursement for expenses pursuant to title 38, chapter 4, article 2.

D. An Arizona Mexico commission in the governor's office shall facilitate the meetings of the committee. The committee shall use the services of the Arizona Mexico commission, legislative staff and the staff of the department of transportation AND THE DEPARTMENT OF MOTOR VEHICLES .

Sec. 116. Section 41-1742, Arizona Revised Statutes, is amended to read:

41-1742 . Powers of the division

A. The highway patrol division superintendent may:

1. Adopt rules and regulations governing the policy, procedure and administration of all activities of the patrol.

2. Provide for training the patrolmen.

3. Cause signs to be erected and maintained as are necessary to give notice of any special restrictions.

4. Cooperate with the department of transportation MOTOR VEHICLES and the Arizona department of agriculture in the enforcement of laws relating to motor vehicles.

B. The director of the department of transportation may grant authority to the highway patrol division superintendent to fix temporary speed limits or apply other temporary restrictions when emergency conditions exist. The director of the department of transportation may fix such speed limits, or apply such restrictions when congested traffic or other conditions require restrictions for public safety.

C. The division shall issue to each member of the patrol a badge of authority, with the words "Arizona highway patrol" encircling the badge, the seal of the state in the center thereof and with the designation of the office or rank of the holder below.

Sec. 117. Section 41-2501, Arizona Revised Statutes, as amended by Laws 1996, chapter 94, section 1 and chapter 110, section 5, is amended to read:

41-2501 . Applicability

A. This chapter applies only to procurements initiated after January 1, 1985 unless the parties agree to its application to procurements initiated before such date.

B. This chapter applies to every expenditure of public monies, including federal assistance monies except as otherwise specified in section 41-2637, by this state, acting through a state governmental unit as defined in this chapter, under any contract, except that this chapter does not apply to either grants or contracts between this state and its political subdivisions or other governments, except as provided in article 10 of this chapter. This chapter also applies to the disposal of state materials. Nothing in this chapter or in rules adopted under this chapter shall prevent any state governmental unit or political subdivision from complying with the terms and conditions of any grant, gift, bequest or cooperative agreement.

C. All political subdivisions and other local public agencies of this state may adopt all or any part of this chapter and the rules adopted pursuant to this chapter.

D. The Arizona board of regents, the legislative and judicial branches of state government and the state compensation fund are not subject to the provisions of this chapter except as prescribed in subsection E of this section.

E. The Arizona board of regents and the judicial branch shall adopt rules prescribing procurement policies and procedures for themselves and institutions under their jurisdiction. The rules must be substantially equivalent to the policies and procedures prescribed in this chapter.

F. The Arizona state lottery commission is exempt from the provisions of this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets and related materials. The executive director of the Arizona state lottery commission shall adopt rules substantially equivalent to the policies and procedures in this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets or related materials. All other procurement shall be as prescribed by this chapter.

G. The Arizona health care cost containment system administration is exempt from the provisions of this chapter for provider contracts pursuant to section 36-2904, subsection A and contracts for goods and services including program contractor contracts pursuant to title 36, chapter 29, articles 2 and 3. All other procurement, including contracts for the statewide administrator of the program pursuant to section 36-2903, subsection C, shall be as prescribed by this chapter.

H. Arizona industries for the blind is exempt from the provisions of this chapter for purchases of finished goods from members of national industries for the blind and for purchases of raw materials for use in the manufacture of products for sale pursuant to section 41-1972. All other procurement shall be as prescribed by this chapter.

I. Arizona correctional industries is exempt from the provisions of this chapter for purchases of raw materials and supplies to be used in the manufacture of products for sale entered into pursuant to section 41-1622. All other procurement shall be as prescribed by this chapter.

J. The state transportation board and the director of the department of transportation are exempt from the provisions of this chapter for the procurement of construction or reconstruction, including engineering services, of transportation facilities or highway facilities.

K. The Arizona highways magazine is exempt from the provisions of this chapter for contracts for the production, promotion, distribution and sale of the magazine and related products and for contracts for sole source creative works entered into pursuant to section 28-1883, subsection A, paragraph 5. All other procurement shall be as prescribed by this chapter.

L. The secretary of state is exempt from the provisions of this chapter for contracts entered into pursuant to section 41-1012 to publish and sell the administrative code. All other procurement shall be as prescribed by this chapter.

M. The provisions of this chapter are not applicable to contracts for professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial proceeding in which this state is or may become a party or to contract for special investigative services for law enforcement purposes.

N. The head of any state governmental unit, in relation to any contract exempted by this section from the provisions of this chapter, has the same authority to adopt rules, procedures or policies as is delegated to the director pursuant to this chapter.

O. Agreements negotiated by legal counsel representing this state in settlement of litigation or threatened litigation are exempt from the provisions of this chapter.

P. The provisions of this chapter are not applicable to contracts entered into by the department of economic security with a provider licensed or certified by an agency of this state to provide child day care services or with a provider of family foster care pursuant to section 8-503 or 36-554, to contracts entered into with area agencies on aging created pursuant to the older Americans act of 1965, 42 United States Code section 3001 or to contracts for services pursuant to title 36, chapter 29, article 2.

Q. The department of health services may not require that persons with whom it contracts follow the provisions of this chapter for the purposes of subcontracts entered into for the provision of the following:

1. Mental health services pursuant to section 36-189, subsection B.

2. Services for the seriously mentally ill pursuant to title 36, chapter 5, article 10.

3. Drug and alcohol services pursuant to section 36-141.

4. Domestic violence services pursuant to title 36, chapter 30, article 1.

R. The department of health services is exempt from the provisions of this chapter for contracts for services of physicians at the Arizona state hospital.

S. Contracts for goods and services approved by the fund manager of the public safety personnel retirement system are exempt from the provisions of this chapter.

T. The Arizona department of agriculture is exempt from this chapter with respect to contracts for private labor and equipment to effect cotton or cotton stubble plow-up pursuant to rules adopted under title 3, chapter 2, article 1. On or before September 1 each year the director of the Arizona department of agriculture shall establish and announce costs for each acre of cotton or cotton stubble to be abated by private contractors.

U. The state parks board is exempt from the provisions of this chapter for purchases of guest supplies and items for resale such as food, linens, gift items, sundries, furniture, china, glassware and utensils for the facilities located in the Tonto natural bridge state park.

V. The state parks board is exempt from the provisions of this chapter for the purchase, production, promotion, distribution and sale of publications, souvenirs and sundry items obtained and produced for resale.

W. The Arizona state schools for the deaf and the blind are exempt from the provisions of this chapter when purchasing products through a cooperative that is organized and operates in accordance with state law if such products are not on a statewide contract and are related to the operation of the schools or are products for which special discounts are offered for educational institutions.

X. Expenditures of monies in the morale, welfare and recreational fund established by section 26-153 are exempt from the provisions of this chapter.

Y. THE DEPARTMENT OF MOTOR VEHICLES IS EXEMPT FROM THE PROVISIONS OF THIS CHAPTER FOR AGREEMENTS ENTERED INTO PURSUANT TO SECTION 28-9158, SUBSECTION A, PARAGRAPH 3, IF BOTH OF THE FOLLOWING CONDITIONS EXIST:

1. COMPENSATION IS NOT PAID BY THE DEPARTMENT TO A CONTRACTOR.

2. EXCLUSIVITY IS NOT GRANTED TO A CONTRACTOR BEYOND A REASONABLE EVALUATION PERIOD THAT DOES NOT EXCEED TWO YEARS.

Sec. 118. Section 41-2501, Arizona Revised Statutes, as amended by section 117 of this act, is amended to read:

41-2501 . Applicability

A. This chapter applies only to procurements initiated after January 1, 1985 unless the parties agree to its application to procurements initiated before such date.

B. This chapter applies to every expenditure of public monies, including federal assistance monies except as otherwise specified in section 41-2637, by this state, acting through a state governmental unit as defined in this chapter, under any contract, except that this chapter does not apply to either grants or contracts between this state and its political subdivisions or other governments, except as provided in article 10 of this chapter. This chapter also applies to the disposal of state materials. Nothing in this chapter or in rules adopted under this chapter shall prevent any state governmental unit or political subdivision from complying with the terms and conditions of any grant, gift, bequest or cooperative agreement.

C. All political subdivisions and other local public agencies of this state may adopt all or any part of this chapter and the rules adopted pursuant to this chapter.

D. The Arizona board of regents, the legislative and judicial branches of state government and the state compensation fund are not subject to the provisions of this chapter except as prescribed in subsection E of this section.

E. The Arizona board of regents and the judicial branch shall adopt rules prescribing procurement policies and procedures for themselves and institutions under their jurisdiction. The rules must be substantially equivalent to the policies and procedures prescribed in this chapter.

F. The Arizona state lottery commission is exempt from the provisions of this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets and related materials. The executive director of the Arizona state lottery commission shall adopt rules substantially equivalent to the policies and procedures in this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets or related materials. All other procurement shall be as prescribed by this chapter.

G. The Arizona health care cost containment system administration is exempt from the provisions of this chapter for provider contracts pursuant to section 36-2904, subsection A and contracts for goods and services including program contractor contracts pursuant to title 36, chapter 29, articles 2 and 3. All other procurement, including contracts for the statewide administrator of the program pursuant to section 36-2903, subsection C, shall be as prescribed by this chapter.

H. Arizona industries for the blind is exempt from the provisions of this chapter for purchases of finished goods from members of national industries for the blind and for purchases of raw materials for use in the manufacture of products for sale pursuant to section 41-1972. All other procurement shall be as prescribed by this chapter.

I. Arizona correctional industries is exempt from the provisions of this chapter for purchases of raw materials and supplies to be used in the manufacture of products for sale entered into pursuant to section 41-1622. All other procurement shall be as prescribed by this chapter.

J. The state transportation board and the director of the department of transportation are exempt from the provisions of this chapter OTHER THAN SECTION 41-2586 for the procurement of construction or reconstruction, including engineering services, of transportation facilities or highway facilities.

K. The Arizona highways magazine is exempt from the provisions of this chapter for contracts for the production, promotion, distribution and sale of the magazine and related products and for contracts for sole source creative works entered into pursuant to section 28-1883, subsection A, paragraph 5. All other procurement shall be as prescribed by this chapter.

L. The secretary of state is exempt from the provisions of this chapter for contracts entered into pursuant to section 41-1012 to publish and sell the administrative code. All other procurement shall be as prescribed by this chapter.

M. The provisions of this chapter are not applicable to contracts for professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial proceeding in which this state is or may become a party or to contract for special investigative services for law enforcement purposes.

N. The head of any state governmental unit, in relation to any contract exempted by this section from the provisions of this chapter, has the same authority to adopt rules, procedures or policies as is delegated to the director pursuant to this chapter.

O. Agreements negotiated by legal counsel representing this state in settlement of litigation or threatened litigation are exempt from the provisions of this chapter.

P. The provisions of this chapter are not applicable to contracts entered into by the department of economic security with a provider licensed or certified by an agency of this state to provide child day care services or with a provider of family foster care pursuant to section 8-503 or 36-554, to contracts entered into with area agencies on aging created pursuant to the older Americans act of 1965, 42 United States Code section 3001 or to contracts for services pursuant to title 36, chapter 29, article 2.

Q. The department of health services may not require that persons with whom it contracts follow the provisions of this chapter for the purposes of subcontracts entered into for the provision of the following:

1. Mental health services pursuant to section 36-189, subsection B.

2. Services for the seriously mentally ill pursuant to title 36, chapter 5, article 10.

3. Drug and alcohol services pursuant to section 36-141.

4. Domestic violence services pursuant to title 36, chapter 30, article 1.

R. The department of health services is exempt from the provisions of this chapter for contracts for services of physicians at the Arizona state hospital.

S. Contracts for goods and services approved by the fund manager of the public safety personnel retirement system are exempt from the provisions of this chapter.

T. The Arizona department of agriculture is exempt from this chapter with respect to contracts for private labor and equipment to effect cotton or cotton stubble plow-up pursuant to rules adopted under title 3, chapter 2, article 1. On or before September 1 each year the director of the Arizona department of agriculture shall establish and announce costs for each acre of cotton or cotton stubble to be abated by private contractors.

U. The state parks board is exempt from the provisions of this chapter for purchases of guest supplies and items for resale such as food, linens, gift items, sundries, furniture, china, glassware and utensils for the facilities located in the Tonto natural bridge state park.

V. The state parks board is exempt from the provisions of this chapter for the purchase, production, promotion, distribution and sale of publications, souvenirs and sundry items obtained and produced for resale.

W. The Arizona state schools for the deaf and the blind are exempt from the provisions of this chapter when purchasing products through a cooperative that is organized and operates in accordance with state law if such products are not on a statewide contract and are related to the operation of the schools or are products for which special discounts are offered for educational institutions.

X. Expenditures of monies in the morale, welfare and recreational fund established by section 26-153 are exempt from the provisions of this chapter.

Y. The department of motor vehicles is exempt from the provisions of this chapter for agreements entered into pursuant to section 28-9158, subsection A, paragraph 3, if both of the following conditions exist:

1. Compensation is not paid by the department to a contractor.

2. Exclusivity is not granted to a contractor beyond a reasonable evaluation period that does not exceed two years.

Sec. 119. Repeal

Section 41-2501 , Arizona Revised Statutes, as amended by Laws 1996, chapter 195, section 4, is repealed.

Sec. 120. Section 41-2998.05, Arizona Revised Statutes, is amended to read:

41-2998.05 . Department of transportation; termination July 1, 1998

A. The department of transportation terminates on July 1, 1998.

B. Title 28 is , CHAPTERS 1 AND 2, CHAPTER 3, ARTICLES 1 THROUGH 16, CHAPTER 6, ARTICLES 1 AND 2 AND CHAPTERS 17 THROUGH 25 ARE repealed on January 1, 1999.

Sec. 121. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3007.01, to read:

41-3007.01 . Department of motor vehicles; termination July 1, 2007

A. THE DEPARTMENT OF MOTOR VEHICLES TERMINATES ON JULY 1, 2007.

B. TITLE 28, CHAPTER 3, ARTICLES 17, 18 AND 19, CHAPTERS 4 AND 5, CHAPTER 6, ARTICLES 3 AND 4, CHAPTERS 7 THROUGH 16 AND CHAPTER 26 ARE REPEALED ON JANUARY 1, 2008.

Sec. 122. Section 41-3451, Arizona Revised Statutes, as amended by Laws 1996, chapter 263, section 13, is amended to read:

41-3451 . Automobile theft authority; powers and duties; fund; audit

A. An automobile theft authority is established consisting of:

1. One police chief appointed by the Arizona chiefs' of police association.

2. One sheriff appointed by the Arizona sheriffs' association.

3. A county attorney appointed by the governor.

4. Two employees of insurers licensed to write automobile liability insurance in this state appointed by the governor.

5. Two members of the general public appointed by the governor.

6. The assistant director for OF the DEPARTMENT OF motor vehicle division in the department of transportation VEHICLES .

7. The director of the department of public safety or the director's designee.

B. Members serve staggered four year terms beginning and ending on the third Monday in January. At the first meeting each year, the members shall select a chairman from among the members. The authority shall meet at the call of the chairman or four members.

C. The authority may:

1. Hire up to two staff members as necessary, including an executive director. If an executive director is hired, preference shall be given to qualified executive director applicants with law enforcement and criminal policy experience. The executive director's annual compensation shall not be more than seventy-five thousand dollars.

2. Provide work facilities and equipment as necessary.

3. Determine the scope of the problem of automobile theft, including particular areas of the state where the problem is greatest.

4. Analyze the various methods of combating the problem of automobile theft.

5. Develop and implement a plan of operation.

6. Develop and implement a financial plan.

7. Solicit and accept gifts and grants.

8. Report by December 31 of each year to the governor, the president of the senate and the speaker of the house of representatives on its activities during the preceding fiscal year.

9. Report by December 31 of each year to the automobile theft authority committee on the authority's programs, the success of the programs, the authority's source of funding and the impact automobile theft prevention programs have had on motor vehicle insurance costs.

D. If the chairman of the authority knows that a potential ground for the removal of a member of the authority exists under this subsection, the chairman shall notify the governor. The governor shall remove the member if the governor finds that any of the following applies:

1. The member was not qualified to serve at the time the member was appointed.

2. The member does not maintain the member's qualifications to serve.

3. The member cannot discharge the member's duties for a substantial part of the term due to illness or other disability.

4. The member is absent from more than one-half of the regularly scheduled meetings during a calendar year unless the member's absence is excused by a majority vote of the authority.

E. The automobile theft authority fund is established in the state treasury consisting of any public or private monies that the authority may receive. The automobile theft authority shall administer the fund. SUBJECT TO LEGISLATIVE APPROPRIATION, monies in the fund shall only be used to pay the expenses of the authority and to carry out the purposes of this section. Monies in the fund are exempt from the provisions of sections 35-143.01 and 35-190, relating to lapsing of appropriations. On notice from the authority, the state treasurer shall invest and divest monies in the fund as provided by section 35-313. The state treasurer shall credit all interest earned on the monies in the fund to the fund.

F. The authority may accept nonmonetary contributions, including the services of individuals, office and secretarial assistance, mailings, printing, office equipment, facilities and supplies, that are necessary to carry out its functions. The nonmonetary contributions shall not be included in the costs of administration limitation prescribed by subsection H of this section.

G. The automobile theft authority shall allocate monies in the fund to public agencies for the purpose of establishing, maintaining and supporting programs that are designed to prevent automobile theft, including:

1. Financial support to law enforcement and prosecution agencies for programs that are designed to increase the effectiveness of automobile theft prosecution.

2. Financial support for programs that are designed to educate and assist the public in the prevention of automobile theft.

H. The costs of administration shall not exceed ten per cent of the monies in the fund in any one year so that the greatest possible portion of the monies available to the authority is expended on combating automobile theft.

I. Monies expended from the automobile theft authority fund shall be used to supplement, not supplant, other monies that are available for auto theft prevention.

J. Each insurer issuing motor vehicle liability insurance policies in this state shall pay an annual fee of fifty cents multiplied by the insurer's total earned car years of insurance. From and after June 30, 1996, each insurer shall transmit the fee in January and July of each year to the state treasurer for deposit in the automobile theft authority fund.

K. The authority shall cause an audit to be made of the automobile theft authority fund . The audit shall TO be conducted by a certified public accountant within EVERY two years after the fund is established . The authority shall file a certified copy of the audit with the auditor general immediately. The auditor general may make further audits and examinations as the auditor general deems necessary and may take appropriate action relating to the audit pursuant to chapter 7, article 10.1 of this title.

L. Authority members are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.

M. This section does not apply to vehicles or vehicle combinations with a declared gross weight of twenty-six thousand pounds or more. Motor vehicle liability insurance policies issued in this state for vehicles or vehicle combinations with a declared gross weight of twenty-six thousand pounds or more are exempt from subsection J of this section.

Sec. 123. Section 42-641.01, Arizona Revised Statutes, is amended to read:

42-641.01 . Affidavit of affixture; contents; effect

A. Any person owning a mobile home which is permanently affixed may file an affidavit of affixture with the county recorder of the county in which the real property is located.

B. An affidavit of affixture shall contain all of the following:

1. The vehicle identification numbers of the mobile home.

2. The legal description of the real property to which the mobile home has been affixed.

3. A statement that the mobile home has not previously been assessed and taxed in this state as personal property or the name and address of the person to whom the last tax statement for the mobile home was sent and the location of such mobile home when it was last taxed.

4. The name of the holder of any security interests in the mobile home which are not to be terminated by consent of the secured party contained on the affidavit of affixture as provided in subsection D of this section and the original principal amount secured by the security interest.

5. As an attachment, the department of transportation's receipt OF THE DEPARTMENT OF MOTOR VEHICLES issued pursuant to section 42-643, subsection A, paragraph 3.

C. After the affidavit of affixture has been recorded, the mobile home shall remain on the unsecured property tax roll until the next real and secured property tax roll is prepared, at which time it shall be transferred to the real and secured property tax roll and shall be deemed for all purposes to be a fixture and a real property improvement. Liens on such mobile home shall be perfected either in the manner provided by law for perfection of real property liens or in the manner provided by law for perfection of security interests in fixtures.

D. The recording of an affidavit of affixture does not impair the rights of any holder of a perfected security interest in the mobile home unless the affidavit of affixture contains the acknowledged consent of such secured party to the termination of the security interest. If a secured party so consents, his security interest in the mobile home terminates upon such recording.

Sec. 124. Section 42-643, Arizona Revised Statutes, is amended to read:

42-643 . Certificate of title; exceptions; fee; certificate of compliance

A. All mobile homes customarily kept in this state shall be titled with the department of transportation through the assistant director for the motor vehicle division MOTOR VEHICLES or his ITS agents designated for such purpose and the fee required under title 28 shall be paid except for:

1. Mobile homes owned and held by a dealer solely for purposes of sale.

2. Mobile homes owned and operated exclusively in the public service by the federal government, by the state or by any political subdivision thereof, except that such mobile homes shall be titled, but no tax shall be required.

3. Permanently affixed mobile homes for which an affidavit of affixture has been recorded. The original certificates of title or manufacturer's statements of origin to such mobile homes shall be surrendered to the department of transportation MOTOR VEHICLES or its agent in the manner prescribed by such agency. The department of transportation MOTOR VEHICLES shall issue a receipt for the documents surrendered pursuant to this paragraph.

B. The issuance of a certificate of title for a mobile home shall be as provided by law for the titling of motor vehicles, except that in the case of a mobile home that consists of two or more separate sections, each such section shall have a separate certificate of title.

C. All mobile homes as defined in this article shall be subject to all applicable provisions of title 28, except those provisions relating to registration and except as otherwise provided in this article.

D. If a title or affidavit of affixture is applied for on a mobile home entering this state for sale or installation, a certificate of compliance or waiver issued by the office of manufactured housing shall be required and shall be submitted with the title application or affidavit of affixture.

Sec. 125. Section 42-646, Arizona Revised Statutes, is amended to read:

42-646 . Collection of delinquent tax

A. When a person who is liable for payment of tax under the provisions of this article evades payment of such tax, or is delinquent in the payment of such tax, the tax shall be collected in the same manner and by the same officers as provided in article 1 , OF THIS chapter 3 of this title for collection of delinquent taxes on unsecured personal property. For delinquent tax report purposes, such officers shall use the method and procedures of identifying mobile homes as prescribed by the DEPARTMENT OF motor vehicle division VEHICLES .

B. A purchaser of a mobile home who subsequently pays taxes imposed by this article on such mobile home that were levied and became delinquent when such mobile home was the property of a previous owner may bring an action against such previous owner for the amount of such delinquent taxes paid. If the purchaser prevails, such purchaser shall recover damages including reasonable attorney's fees and treble the amount of delinquent taxes paid. The provisions of this subsection shall not apply where such purchaser has specifically assumed in writing, signed by the purchaser and seller, such delinquent tax liability and the delinquent taxes assumed are correctly stated by year and amount due.

Sec. 126. Section 46-192, Arizona Revised Statutes, is amended to read:

46-192 . Identification of services

A. The department, in conjunction with other state and local government agencies and community organizations and agencies, shall identify those services provided by state departments and agencies that are appropriate services to implement the goal of enabling older Arizonans to maintain the most independence and freedom, avoid institutional care and live in dignity. In addition to existing services, such services may include the following:

1. General information services, including publication of available services, information and referral and outreach.

2. Transportation, including transportation necessary to guarantee access to services.

3. Nutrition, socialization and education.

4. Nonmedical home and community based care including case management, assessment of functional impairment and needed community services, home care, housekeeping chore services, home health aid, personal care, visiting nurse services, adult day care or adult day health, respite care, attendant care and home delivered meals.

5. Physical and mental health services, including inpatient and outpatient care, screening, appliances and supplies, mental health and home health care.

6. Placement services, including nursing homes, supervisory care, personal care, foster care and day care.

7. Protective advocacy and legal services.

8. Education, including senior adult education programs and training and research in the field of aging.

9. Volunteer and leadership development services.

10. Self-support services, including employment services, job development and income maintenance.

B. The department shall develop a basic plan to coordinate the services identified in this section and other appropriate services so as IN ORDER to avoid duplication and increase efficiency.

C. The department of health services, the department of transportation, THE DEPARTMENT OF MOTOR VEHICLES, the Arizona department of education and other appropriate state departments and agencies shall cooperate in coordinating services under the basic plan.

D. The department shall develop a comprehensive agreement by which the personnel and facilities of the department, THE DEPARTMENT OF MOTOR VEHICLES, the department of health services, the department of transportation, the Arizona department of education and other appropriate departments and agencies are utilized in carrying out this article provided that such agreement:

1. Results in more economical performance of duties of those departments and agencies.

2. Allows the department to contract for the services of consultants and agencies, subject to the availability of funding for such purpose.

E. The department may provide information and assist local agencies and organizations that provide services to older Arizonans.

F. The department may, under grant programs, utilize older Americans as staff to implement this article.

G. The integrity of senior citizen participation at all planning and program development levels shall be ensured.

H. The director shall designate an employee within the department to be responsible for the direction, planning, coordination and administration of the department's responsibilities under this article.

Sec. 127. Section 49-542, Arizona Revised Statutes, is amended to read:

49-542 . Emissions inspection program; powers and duties of director; administration; periodic inspection; minimum standards and rules; limitation on repair costs; exception

A. The director shall administer a comprehensive annual or biennial emissions inspection program which shall require the inspection of vehicles in this state pursuant to this article and applicable administrative rules. Such inspection is required in counties with a population in excess of three hundred fifty thousand persons according to the most recent United States decennial census only in vehicle emissions control areas of the county, for those vehicles owned by a person who is subject to section 15-1444 or 15-1627 and for those vehicles registered outside of a vehicle emissions control area but used to commute to the driver's principal place of employment located within a vehicle emissions control area. Inspection in other counties of the state shall commence upon application by a county board of supervisors for participation in such inspection program, subject to approval by the director. In all counties with a population of three hundred fifty thousand or fewer persons according to the most recent United States decennial census, the director shall as conditions dictate provide for testing to determine the effect of vehicle related pollution on ambient air quality in all communities with a metropolitan area population of twenty thousand persons or more according to the most recent United States decennial census. If such testing detects the violation of state ambient air quality standards by vehicle related pollution, the director shall forward a full report of such violation to the president of the senate, the speaker of the house of representatives and the governor.

B. The state's annual or biennial emissions inspection program shall provide for vehicle inspections at official emissions inspection stations or at fleet emissions inspection stations. Each inspection station in area A shall employ at least one mechanic who is available during the station's hours of operation to provide technical advice and assistance for persons who fail the emissions test. The director may enter into agreements with the department of transportation MOTOR VEHICLES or with county assessors for the use of official emissions inspection stations for the purpose of conducting vehicle registrations. An official or fleet emissions inspection station permit shall not be sold, assigned, transferred, conveyed or removed to another location except on such terms and conditions as the director may prescribe.

C. After purchase of a new vehicle, the first emissions inspection is required for the second registration year for that vehicle. Vehicles required to be inspected and registered in this state, except those provided for in section 49-546, shall be inspected, for the purpose of complying with the registration or reregistration requirement pursuant to subsection D of this section, in accordance with the provisions of this article no more than ninety days prior to each reregistration expiration date. A vehicle may be submitted voluntarily for inspection more than ninety days before the reregistration expiration date on payment of the prescribed inspection fee. Such voluntary inspection shall not be considered as compliance with the registration or reregistration requirement pursuant to subsection D of this section.

D. A vehicle shall not be registered or reregistered until such vehicle has passed the emissions inspection and the tampering inspection prescribed in subsection G of this section or has been issued a certificate of waiver. a certificate of waiver shall only be issued one time to a vehicle after January 1, 1997. If any vehicle to be registered or reregistered is being sold by a dealer licensed to sell motor vehicles pursuant to title 28, the cost of any inspection and any repairs necessary to pass the inspection shall be borne by the dealer. A dealer who is licensed to sell motor vehicles pursuant to title 28 and whose place of business is located in a vehicle emissions control area shall not deliver any vehicle to the retail purchaser until the vehicle passes any inspection required by this article or the vehicle is exempt under subsection J of this section.

E. On the registration or reregistration of a vehicle which has complied with the minimum emissions standards pursuant to this section or is otherwise exempt under this section, the registering officer shall issue an air quality compliance sticker to the registered owner which shall be placed on the vehicle as prescribed by rule adopted by the department of transportation MOTOR VEHICLES or issue a modified year validating tab as prescribed by rule adopted by the department of transportation MOTOR VEHICLES . Those persons who reside outside of a vehicle emissions control area but who elect to test their vehicle or are required to test their vehicle pursuant to this section and who comply with the minimum emissions standards pursuant to this section or are otherwise exempt under this section shall remit a compliance form, as prescribed by the department of transportation MOTOR VEHICLES , and proof of compliance issued at an official emissions inspection station to the department of transportation MOTOR VEHICLES along with the appropriate fees. The department of transportation MOTOR VEHICLES shall then issue the person an air quality compliance sticker which shall be placed on the vehicle as prescribed by rule adopted by the department of transportation MOTOR VEHICLES . The registering officer or the department of transportation shall collect an air quality compliance fee of twenty-five cents. The registering officer or the department of transportation shall forward the air quality compliance fee to the state treasurer who shall deposit the monies in the state highway MOTOR VEHICLE fund established by section 28-6991 28 -9106 . The department of transportation MOTOR VEHICLES shall forward any emissions inspection fee to the state treasurer who shall deposit the monies in the emissions inspection fund. The provisions of this subsection do not apply to those vehicles registered pursuant to title 28, chapter 7, article 7 or 8, the sale of vehicles between motor vehicle dealers or vehicles leased to a person residing outside of a vehicle emissions control area by a leasing company whose place of business is in a vehicle emissions control area.

F. The director shall adopt minimum emissions standards pursuant to section 49-447 with which the various classes of vehicles shall be required to comply as follows:

1. For the purpose of determining compliance with minimum emissions standards in area B:

(a) A motor vehicle manufactured in or before the 1980 model year, other than a diesel powered vehicle, shall be required to take and pass the curb idle test condition. A diesel powered vehicle is subject to only a loaded test condition. The conditioning mode shall, at the option of the vehicle owner or owner's agent, be administered only after the vehicle has failed the curb idle test condition. Upon completion of such conditioning mode, a vehicle that has failed the curb idle test condition may be retested in the curb idle test condition. If the vehicle passes such retest, it shall be deemed in compliance with minimum emissions standards unless the vehicle fails the tampering inspection pursuant to subsection G of this section.

(b) A motor vehicle manufactured in or after the 1981 model year, other than a diesel powered vehicle, shall be required to take and pass the curb idle test condition and the loaded test condition.

2. For purposes of determining compliance with minimum emissions standards and functional tests in area A:

(a) Motor vehicles manufactured in or after model year 1981, with a gross vehicle weight rating of eighty-five hundred pounds or less, other than diesel powered vehicles, shall be required to take and pass a transient loaded emissions test.

(b) Motor vehicles other than those prescribed by subdivision (a) of this paragraph and other than diesel powered vehicles shall be required to take and pass a steady state loaded test and a curb idle emissions test.

(c) Notwithstanding the requirement of subsection C of this section that the first emissions inspection after the purchase of a new vehicle be for the second registration year for that vehicle, a diesel powered motor vehicle applying for registration or reregistration in area A more than thirty-three months after the date of initial registration shall be required to take and pass an annual emissions test conducted at an official emissions inspection station or a fleet emissions inspection station as follows:

(i) A loaded, transient or any other form of test as provided for in rules adopted by the director for vehicles with a gross vehicle weight rating of eight thousand five hundred pounds or less.

(ii) A test that conforms with the society for automotive engineers standard J1667 for vehicles with a gross vehicle weight rating of more than eight thousand five hundred pounds.

(d) Motor vehicles by specific class or model year shall be required to take and pass any of the following tests:

(i) An on board diagnostic check as may be required pursuant to title II of the clean air act.

(ii) An evaporative system purge test.

(iii) An evaporative system integrity test.

3. A motorcycle or constant four-wheel drive vehicle shall be required to take and pass a curb idle emissions test.

4. Fleet operators in area B which have been issued a permit under section 49-546 are required to test their vehicles as follows:

(a) A motor vehicle manufactured in or before the 1980 model year shall take and pass only the curb idle test condition, except that a diesel powered vehicle is subject to only a loaded test condition.

(b) A motor vehicle manufactured in or after the 1981 model year shall take and pass the curb idle test condition and a twenty-five hundred revolutions per minute unloaded test condition.

5. Vehicles owned or operated by the United States, this state or a political subdivision of this state shall comply with this subsection without regard to whether those vehicles are required to be registered in this state, except that alternative fuel vehicles of a school district that is located in area A shall be required to take and pass the curb idle test condition and the loaded test condition.

6. Fleet operators in area A shall comply with this section, except that used vehicles sold by a motor vehicle dealer who is a fleet operator and who has been issued a permit pursuant to section 49-546 for purposes of determining compliance with minimum emission standards in area A shall test their vehicles as follows:

(a) A motor vehicle manufactured in or before the 1980 model year shall take and pass the curb idle test condition, except that a diesel powered vehicle is subject to only a loaded test condition.

(b) A motor vehicle manufactured in or after the 1981 model year shall take and pass the curb idle test condition and a two thousand five hundred revolutions per minute unloaded test condition.

7. Beginning on January 1, 2004, a diesel powered motor vehicle with a gross vehicle weight of more than twenty-six thousand pounds and for which gross weight fees are paid pursuant to title 28, chapter 15, article 2 in area A shall not be allowed to operate in area A unless it was manufactured in or after the 1988 model year or is powered by an engine that is certified to meet or surpass emissions standards contained in 40 Code of Federal Regulations section 86.088-11. This paragraph does not apply to vehicles that are registered pursuant to title 28, chapter 7, article 7 or 8.

G. In addition to an emissions inspection, a vehicle is subject to a tampering inspection on at least a biennial basis if the vehicle was manufactured after the 1974 model year and the vehicle is not subject to a transient loaded emissions test. The director shall adopt vehicle configuration guidelines for the tampering inspection which shall be based on the original configuration of the vehicle when manufactured. The tampering inspection shall consist of the following:

1. A visual check to determine the presence of properly installed catalytic converters.

2. An examination to determine the presence of an operational air pump.

3. In area A, if the vehicle was manufactured after the 1974 model year and is not subject to a transient loaded emissions test, a visual inspection for the presence or malfunction of the positive crankcase ventilation system and the evaporative control system.

H. Vehicles required to be inspected shall undergo a functional test of the gas cap to determine if the cap holds pressure within limits prescribed by the director, except for any vehicle that is subject to an evaporative system integrity test.

I. Motor vehicles failing the initial or subsequent test are not subject to a penalty fee for late registration renewal if the original testing was accomplished before the expiration date and if the registration renewal is received by the DEPARTMENT OF motor vehicle division VEHICLES or the county assessor within thirty days of the original test.

J. The director may adopt rules for purposes of implementation, administration, regulation and enforcement of the provisions of this article including:

1. The submission of records relating to the emissions inspection of vehicles inspected by another jurisdiction in accordance with another inspection law and the acceptance of such inspection for compliance with the provisions of this article.

2. The exemption from inspection of:

(a) A motor vehicle manufactured in or before the 1966 model year.

(b) New vehicles originally registered at the time of initial retail sale and titling in this state pursuant to section 28-2153 or 28-2154.

(c) Vehicles registered pursuant to title 28, chapter 7, article 7 or 8.

(d) Vehicles which will not be available within the state during the ninety days prior to registration.

(e) Golf carts.

(f) Electrically-powered vehicles.

(g) Vehicles with an engine displacement of less than ninety cubic centimeters.

(h) The sale of vehicles between motor vehicle dealers.

(i) Vehicles leased to a person residing outside of a vehicle emissions control area by a leasing company whose place of business is in a vehicle emissions control area.

3. Compiling and maintaining records of emissions test results after servicing.

4. A procedure which shall allow the vehicle service and repair industry to compare the calibration accuracy of its emissions testing equipment with the department's calibration standards.

5. Training requirements for automotive repair personnel using emissions measuring equipment whose calibration accuracy has been compared with the department's calibration standards.

6. Any other rule which may be required to accomplish the provisions of this article.

K. The director shall, after consultation with automobile manufacturers and the vehicle service and repair industry, establish by rule a definition of "low emissions tune-up" for motor vehicles subject to inspection under this article. The definition shall specify repair procedures which, when implemented, will reduce vehicle emissions.

L. The director shall adopt rules which specify that the estimated retail cost of all recommended maintenance and repairs shall not exceed the amounts prescribed in this subsection, except that if a vehicle fails a tampering inspection there is no limit on the cost of recommended maintenance and repairs. The director shall issue a certificate of waiver for a vehicle which has failed reinspection, if the director has determined that all recommended maintenance and repairs have been performed. If, after reinspection, the director has determined that the vehicle is in compliance with minimum emissions standards or that all recommended maintenance and repairs for compliance with minimum emissions standards have been performed, but that tampering discovered at a tampering inspection has not been repaired, the director may issue a certificate of waiver if the owner of the vehicle provides to the director a written statement from an automobile parts or repair business that an emissions control device which is necessary to repair the tampering is not available and cannot be obtained from any usual source of supply before the vehicle's current registration expires. Rules adopted by the director for the purpose of establishing the estimated retail cost of all recommended maintenance and repairs pursuant to this subsection shall specify that:

1. In area A the cost shall not exceed:

(a) Five hundred dollars for a diesel powered vehicle with a gross weight in excess of twenty-six thousand pounds.

(b) Five hundred dollars for a diesel powered vehicle with tandem axles.

(c) For a vehicle other than a diesel powered vehicle with a gross weight in excess of twenty-six thousand pounds and other than a diesel powered vehicle with tandem axles:

(i) One hundred dollars for such a vehicle manufactured in or before the 1974 model year.

(ii) Three hundred dollars for such a vehicle manufactured in the 1975 through 1979 model years.

(iii) Four hundred fifty dollars for such a vehicle manufactured in or after the 1980 model year.

2. In area B the cost shall not exceed:

(a) Three hundred dollars for a diesel powered vehicle with a gross weight in excess of twenty-six thousand pounds.

(b) Three hundred dollars for a diesel powered vehicle with tandem axles.

3. For a vehicle other than a diesel powered vehicle with a gross weight in excess of twenty-six thousand pounds and other than a diesel powered vehicle with tandem axles:

(a) Fifty dollars for such a vehicle manufactured in or before the 1974 model year.

(b) Two hundred dollars for such a vehicle manufactured in the 1975 through 1979 model years.

(c) Three hundred dollars for such a vehicle manufactured in or after the 1980 model year.

M. Each person whose vehicle has failed an emissions inspection shall be provided a list of those general recommended tune-up procedures for vehicles which are designed to reduce vehicle emissions levels. The list shall include the following notice: "This test is the result of federal law. You may wish to contact your representative in the United States Congress."

N. Notwithstanding any other provisions of this article, the director may adopt rules allowing exemptions from the requirement that all vehicles must meet the minimum standards for registration or reregistration.

O. The director of environmental quality shall establish, in cooperation with the assistant director for OF the DEPARTMENT OF motor vehicle division of the department of transportation VEHICLES :

1. An adequate method for identifying bona fide residents residing outside of vehicle emissions control areas to ensure that such residents are exempt from compliance with the inspection program established by this article and rules adopted under this article.

2. A written notice that shall accompany the vehicle registration application forms that are sent to vehicle owners pursuant to section 28-2151 and that shall accompany or be included as part of the vehicle emissions test results that are provided to vehicle owners at the time of the vehicle emissions test. This written notice shall describe at least the following:

(a) The restriction of the waiver program to one time per vehicle and a brief description of the implications of this limit.

(b) The availability and a brief description of the vehicle repair grant program established pursuant to subsection S of this section.

(c) Notice that many vehicles carry extended warranties for vehicle emissions systems, and those warranties are described in the vehicle's owner's manual or other literature.

(d) If a catalytic converter replacement program is established pursuant to subsection R of this section, a description of the catalytic converter replacement program.

3. A written notice shall be included as part of the vehicle emissions test results that are provided to vehicle owners at the time of the vehicle emissions test. The notice shall include information on all of the following:

(a) The amount of the vehicle emissions test cost that is paid by the vehicle owner.

(b) The amount of the vehicle emissions test cost that is subsidized by the state, including any amount that the state may have previously subsidized and the source of that subsidy.

(c) Notice that on July 1, 1997 the state subsidy, including state funding for other elements of the vehicle emissions inspection program, may terminate and that the vehicle owner may be expected to pay the full cost of the vehicle emissions inspection test.

P. Notwithstanding any other law, if a vehicle emissions control area is reclassified as an attainment area, emissions testing conducted pursuant to this article shall continue for vehicles registered inside that reclassified area, vehicles owned by a person who is subject to section 15-1444 or 15-1627 and vehicles registered outside of that reclassified area but used to commute to the driver's principal place of employment located within that reclassified area.

Q. A fleet operator who is issued a permit pursuant to section 49-546 may electronically transmit emissions inspection data to the department of transportation MOTOR VEHICLES pursuant to rules adopted by the director of the department of transportation MOTOR VEHICLES in consultation with the director of environmental quality.

R. If the administrator of the United States environmental protection agency finds that area A has failed to demonstrate reasonable further progress or has failed to attain the national ambient air quality standards for carbon monoxide or ozone by the applicable attainment date, the director shall operate and administer a program to require replacement of catalytic converters on motor vehicles that fail to meet emissions standards due to failure of the catalytic converter system if that failure is not the result of tampering. The director shall implement the following:

1. Replacement of catalytic converters on all high-emitting vehicles which fail inspection due to the catalytic converter system.

2. Prohibiting a certificate of waiver pursuant to subsection L of this section for any vehicle which has failed inspection due to the catalytic converter system.

S. For area A, the director shall establish a vehicle repair grant program. The director shall adopt rules to implement the program, which shall include the following:

1. Eligibility for receiving a grant, provided that eligibility shall be limited to persons who own a high-emitting vehicle that fails inspection and who are assistance recipients of the food stamp program.

2. In consultation with the director of the department of economic security, an efficient and accurate system for proper verification of eligibility status.

3. Establishment of categories of repair and maximum grant amounts available for each category of repair. Qualified vehicle owners shall be responsible for one-half of the costs of qualified repairs, and the state shall contribute the other one-half of the costs of qualified repairs up to the applicable threshold waiver amounts.

4. Establishment of procedures which promote administrative efficiency and protect against possible fraud and abuse within the program.

5. A system for expedited payment of grant amounts to mechanics who perform necessary repairs pursuant to the provisions of the program.

T. The director shall establish provisions for rapid testing of certain vehicles and to allow fleet operators, singly or in combination, to contract directly for vehicle emissions testing.

U. Each vehicle emissions control station in area A shall have a sign posted to be visible to persons who are having their vehicles tested. This sign shall state that enhanced testing procedures are a direct result of federal law.

V. The initial adoption of rules pursuant to this section shall be deemed emergency rules pursuant to section 41-1026.

W. The director of environmental quality and the director of the department of transportation MOTOR VEHICLES shall implement a system to exchange information relating to the waiver program, including information relating to vehicle emissions test results and vehicle registration information.

X. Any person who sells a vehicle that has been issued a certificate of waiver pursuant to this section after January 1, 1997 and who knows that a certificate of waiver has been issued after January 1, 1997 for that vehicle shall disclose to the buyer before completion of the sale that a certificate of waiver has been issued for that vehicle.

Sec. 128. Section 49-542.01, Arizona Revised Statutes, is amended to read:

49-542.01 . Random on-road testing; notification; testing requirements; contingency; exemption

A. The director shall implement a random on-road testing program in area A as a supplement to the periodic inspection requirement prescribed by section 49-542. The program shall include the use of remote sensing devices. The program shall not include a pullover program. The program shall include provisions for a minimum of six on-road testing units to be deployed throughout the nonattainment area.

B. For the first identification of a vehicle registered in area A as exceeding the emissions standards, the director shall send a notification letter by first class mail to the registered owner of the vehicle informing the registered owner of the date, time, location and test results. The letter shall also contain a brief description of the emissions control program and the benefits to be derived by the testing and repair procedures.

C. For the second identification of a vehicle registered in area A as exceeding the emissions standards within a twelve month period, the director shall send a notification letter by first class mail to the registered owner of the vehicle informing the registered owner of the date, time, location and test results. The second identification is not valid for purposes of sending a notification letter if the first and second identifications occurred on the same day by remote sensing units that were less than one-quarter mile apart. The letter shall indicate that an emissions test is required to be performed pursuant to section 49-542 within thirty days of the date of the letter. If the owner does not comply with the requirement to be tested, the department of environmental quality shall notify the department of transportation MOTOR VEHICLES by electronic means. The department of transportation MOTOR VEHICLES shall send a letter by first class mail to the registered owner of the vehicle informing the registered owner that the vehicle's registration is suspended. After compliance with the requirement to be tested, the registered owner may apply for reinstatement of the vehicle registration on payment of the applicable fees pursuant to sections 28-2003, 28-2352, 28-2402 and 28-2481.

D. Notwithstanding section 49-542, for a vehicle that is registered in area A and that is identified as emitting fifty per cent or less of the emissions standard for each pollutant on three consecutive occasions within a twelve month period, the director shall send a notification letter by first class mail to the registered owner of the vehicle stating the dates, times, locations and test results. Each identification shall occur in separate months. The letter shall indicate that an emissions test for that vehicle is not required to be performed pursuant to section 49-542 for the next testing cycle and shall contain a notice that a reduced fee shall be paid in lieu of the vehicle emissions testing fee that is established by the director pursuant to section 49-543. The registered owner shall remit the reduced fee to the registering officer at the time of the next testing cycle together with the appropriate registration fees. The registering officer shall transmit the reduced fee to the state treasurer for deposit in the emissions inspection fund established by section 49-544. This subsection does not apply to the first emissions inspection after purchase of a new motor vehicle as prescribed by section 49-542, subsection C.

E. All notification sent to the registered owner of a vehicle pursuant to this section shall be sent to the address provided to the department of transportation MOTOR VEHICLES on the registrant's application or pursuant to section 28-448 28-9189 . Service of notice is complete on mailing. The department of transportation MOTOR VEHICLES shall provide further service of notice only when the department of transportation MOTOR VEHICLES is notified of a change of address pursuant to section 28-448 28-9189 .

F. If the administrator of the United States environmental protection agency finds that area A has failed to demonstrate reasonable further progress or has failed to attain the national ambient air quality standards for ozone or carbon monoxide by the applicable attainment date, the notification procedure and requirements shall comply with subsection C of this section, except that the emissions test shall be required the first time a vehicle is identified.

G. Commercial diesel powered vehicles are exempt from this section.

Sec. 129. Transfers; effect of rules

A. All persons employed on the effective date of this act in the motor vehicle division of the department of transportation are transferred to the department of motor vehicles established by this act.

B. All records, furnishings, equipment and unexpended monies, including appropriated monies for fiscal year 1997-1998, of the motor vehicle division of the department of transportation are transferred to the department of motor vehicles established by this act.

C. All contracts, orders and judicial and quasi-judicial actions and similar matters, whether completed, pending or in process, of the motor vehicle division of the department of transportation are transferred to and retain the same status with the department of motor vehicles established by this act.

D. Rules adopted by the motor vehicle division of the department of transportation remain in effect until superseded by rules of the department of motor vehicles established by this act.

Sec. 130. Purpose

The purpose of the department of motor vehicles is to regulate vehicles, drivers and motor vehicle related taxes and functions.

Sec. 131. Department of motor vehicles; budget; quarterly report

A. It is the intent of the legislature that for January through June of fiscal year 1997-1998 the budget of the department of motor vehicles established by this act remain the same as that appropriated for the motor vehicle division of the department of transportation.

B. The office of strategic planning and budgeting in consultation with the joint legislative budget committee staff shall establish a budget for the department of motor vehicles for fiscal years 1998-1999, 1999-2000 and 2000-2001 for submission to the legislature in each of those fiscal years that reflects a five per cent reduction from the department's budget in the preceding fiscal year as adjusted for pay increases and significant organizational or functional responsibility changes enacted by the legislature.

C. Beginning October 1, 1998, the director of the department of motor vehicles shall submit a quarterly report to the office of strategic planning and budgeting and the joint legislative budget committee relating to the impact of the budget reductions prescribed by this section on customer service. The report shall include any changes in the length of customer wait times and other customer service measurements deemed relevant by the director.

Sec. 132. Delayed effective date

Section 41-2501, Arizona Revised Statutes, as amended by section 118 of this act, is effective from and after June 30, 1998.

Sec. 133. Conditional enactment

Because certain sections of this act amend sections of the Arizona Revised Statutes as amended or added by Senate Bill 1009 (title 28 rewrite; conforming legislation), this act is effective from and after December 31, 1997 only if Senate Bill 1009, forty-third legislature, first regular session, relating to transportation, is enacted into law.


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