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Chapter 1 - 436S - H Ver of HB2001

Reference Title: emissions inspections

AN ACT
AMENDING SECTIONS 49-542, 49-543 AND 49-545, ARIZONA REVISED STATUTES; AMENDING LAWS 1989, CHAPTER 225, SECTION 10, AS AMENDED BY LAWS 1991, CHAPTER 8, SECTION 11; RELATING TO ANNUAL EMISSIONS INSPECTION OF MOTOR VEHICLES.

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

Section 1. Intent

The legislature intends to ensure a cost-effective vehicle emissions inspection program which meets the objectives of ensuring clean air while not unduly burdening vehicle owners. The legislature intends that the cost of emissions inspections be reasonable and that cost controls shall be achieved by the department of environmental quality's reductions in administrative expenses and by applying the entirety of the fees generated by the excess volume of tests to the vehicle owners' test fees.

Sec. 2. 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 area A and area B, for those vehicles owned by a person who is subject to section 15-1444 or 15-1627 and for those vehicles registered outside of area A or area B but used to commute to the driver's principal place of employment located within area A or area B. 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, except for the portion of counties that contain any portion of area A, 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 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. 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 area A or area B 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 or issue a modified year validating tab as prescribed by rule adopted by the department of transportation. Those persons who reside outside of area A or area B 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, and proof of compliance issued at an official emissions inspection station to the department of transportation along with the appropriate fees. The department of transportation 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. 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 fund established by section 28-6991. The department of transportation 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 area A or area B by a leasing company whose place of business is in area A or area B.

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, including constant four-wheel drive 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 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 motor vehicle division 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) During each calendar year vehicles of that model year and vehicles from the prior four model years.

(e) Vehicles which will not be available within the state during the ninety days prior to registration.

(f) Golf carts.

(g) Electrically-powered vehicles.

(h) Vehicles with an engine displacement of less than ninety cubic centimeters.

(i) The sale of vehicles between motor vehicle dealers.

(j) Vehicles leased to a person residing outside of area A or area B by a leasing company whose place of business is in area A or area B.

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) Two 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 the motor vehicle division of the department of transportation:

1. An adequate method for identifying bona fide residents residing outside of area A or area B 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) A description of the catalytic converter replacement program established pursuant to subsection R of this section.

P. Notwithstanding any other law, if area A or area B 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 pursuant to rules adopted by the director of the department of transportation in consultation with the director of environmental quality.

R. The director shall operate and administer a program in area A 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. FOR A VEHICLE THAT IS ISSUED A CERTIFICATE OF WAIVER AFTER JANUARY 1, 1997, THE VEHICLE'S OWNER IS ELIGIBLE FOR A SINGLE GRANT FROM THE DEPARTMENT OF ENVIRONMENTAL QUALITY WITHOUT REGARD TO PARTICIPATION IN OR ELIGIBILITY FOR 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. The repair limits prescribed in subsection L of this section do not apply to a vehicle that is subject to the catalytic converter replacement program established in subsection R of this section.

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 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.

Y. Vehicles that fail the emissions test at emission levels higher than twice the standard established for that vehicle class by the department pursuant to section 49-447 are not eligible for a certificate of waiver pursuant to this section unless the vehicle is repaired sufficiently to achieve an emissions level below twice the standard for that class of vehicle.

Sec. 3. Section 49-543, Arizona Revised Statutes, is amended to read:

49-543 . Emissions inspection costs; disposition; fleet inspection; certificates

A. The director shall fix, regulate and alter in accordance with this section the fees required to be paid for the full costs of the vehicle emissions inspection program pursuant to this article including administration, implementation and enforcement. THE FEE FOR THE TRANSIENT LOADED EMISSIONS TEST SHALL NOT EXCEED TWENTY-FIVE DOLLARS FOR A BIENNIAL TEST AND THE FEE FOR THE STEADY STATE AND CURB IDLE EMISSIONS TESTS SHALL NOT EXCEED ONE-HALF OF THE COST OF THE TRANSIENT LOADED EMISSIONS TEST.

B. In lieu of the emissions inspections prior to the sixth registration year after purchase or lease of a new vehicle, the owner of the vehicle shall pay a fee that is equal to the fee charged for the emissions inspections for that type of vehicle. The owner shall pay this fee together with the registration fee for the vehicle to the registering officer. The registering officer shall transmit the fee to the state treasurer for deposit in the Arizona clean air fund established by section 41-1516. The registering officer may enter into an intergovernmental agreement with another department of this state to collect and transmit the fee. An owner who chooses to have an emissions inspection pursuant to this section is not required to pay the in lieu fee for that emissions test cycle.

C. The registration renewal notice required for the second through fifth registration year of a new vehicle shall include a notice to the vehicle owner that even though an emissions inspection test is not required pursuant to subsection B of this section the owner may choose to have an emissions inspection because of vehicle emissions performance warranty limitations on emissions components of the vehicle.

D. The fees charged for official emissions inspection shall be uniform as applied to each class of vehicle which shall be defined by the director. Except for fees collected by the director pursuant to section 49-546, the inspection fees required to be paid pursuant to this article may be collected with the registration fee by the county assessor at the time and place of motor vehicle registration pursuant to title 28, chapter 7, article 5 and transferred to the state treasurer for deposit in the emissions inspection fund in accordance with the rules adopted by the director or may be collected by the independent contractor at the time of inspection by means of an approved check or cash.

E. Any person, except a person who has been issued a certificate of waiver pursuant to section 49-542, subsection L, whose vehicle has been inspected at an official emissions inspection station shall, if such vehicle was not found to comply with the minimum standards, have his vehicle repaired, including recommended repair or replacement of emissions control devices as a result of tampering, and have the right within sixty consecutive calendar days but not thereafter to return such vehicle for one reinspection without charge. The department may provide for additional reinspections without charge. A vehicle shall not be deemed to pass a reinspection unless the tampering discovered during the tampering inspection is repaired with new or reconditioned emissions control devices.

F. The department shall issue certificates of inspection to owners of fleet emissions inspection stations. Each certificate shall be validated by the fleet emissions inspection stations in a manner required by the director at the time that each owner's fleet vehicle has been inspected or has passed inspection. The validated certificate of inspection shall indicate at the time of registration that the owner's fleet vehicle has been inspected and that the vehicle has passed inspection.

G. The director shall fix an emissions inspection fee before inspection certificates may be issued to the owner of any fleet emissions inspection station. Such fee shall be uniform for each inspection certificate issued and shall be based upon the director's estimated costs to the state of administering and enforcing the provisions of this article as they apply to fleet emissions inspection stations and the vehicles inspected therein. The director shall promptly transmit all such monies collected by the director pursuant to this article to the state treasurer who shall deposit them in the emissions inspection fund.

Sec. 4. Section 49-545, Arizona Revised Statutes, is amended to read:

49-545 . Agreement with independent contractor; qualifications of contractor; agreement provisions

A. The director is authorized to enter into an emissions inspection agreement with one or more independent contractors, subject to public bidding, to provide for the construction, equipment, establishment, maintenance and operation of any official emissions inspection stations in such numbers and locations as may be required to provide vehicle owners reasonably convenient access to inspection facilities for the purpose of obtaining compliance with this article and the rules adopted pursuant to this article. The agreement may provide that official inspection stations shall be placed in permanent or movable buildings at particular locations as well as in mobile units for conveyance from one preannounced particular location to another.

B. The director is prohibited from entering into an emissions inspection agreement with any independent contractor who:

1. Is engaged in the business of manufacturing, selling, maintaining or repairing vehicles, except that the independent contractor shall not be precluded from maintaining or repairing any vehicle owned or operated by the independent contractor.

2. Does not have the capability, resources or technical and management skill to adequately construct, equip, operate and maintain a sufficient number of official emissions inspection stations to meet the demand for inspection of every vehicle which is required to be submitted for inspection pursuant to this article.

C. All persons employed by the independent contractor in the performance of an emissions inspection agreement are deemed to be employees of the independent contractor and not of this state. No employee of the independent contractor shall wear any badge, insignia, patch, emblem, device, word or series of words which would tend to indicate that such person is employed by this state. Employees of the independent contractor are specifically prohibited under this subsection from wearing the flag of this state, the words "state of Arizona", the words "official emissions inspection program" or any similar emblem or phrase.

D. The emissions inspection agreement authorized by this section shall contain, in addition to any other provisions, provisions relating to the following:

1. A contract term or duration of seven and one-half years with reasonable compensation to the contractor if the provisions of this article are repealed.

2. That nothing in the agreement or contract shall require the state to purchase any asset or assume any liability if such agreement or contract is not renewed.

3. The minimum requirements for adequate staff, equipment, management and hours and place of operation of official emissions inspection stations.

4. The submission of such reports and documentation concerning the operation of official emissions inspection stations as the director and the auditor general may require.

5. Surveillance by the department of environmental quality and the auditor general to ensure compliance with vehicular emissions standards, procedures, rules and laws.

6. The right of this state, upon providing reasonable notice to the independent contractor, to terminate the contract with the independent contractor and to assume operation of the vehicle emissions inspection program.

7. The right of this state upon termination of the term of the agreement or upon assumption of the operation of the program to have transferred and assigned to it for reasonable compensation any interest in land, buildings, improvements, equipment, parts, tools and services used by the independent contractors in their operation of the program.

8. The right of this state upon termination of the term of the agreement or assumption of the operation of the program to have transferred and assigned to it any contract rights, and related obligations, for land, buildings, improvements, equipment, parts, tools and services used by the independent contractors in their operation of the program.

9. The obligation of the independent contractors to provide in any agreement to be executed by them, and to maintain in any agreements previously executed by them, for land, buildings, improvements, equipment, parts, tools and services used in their operation of the program for the right of the independent contractors to assign to this state any of their rights and obligations under such contract.

10. The amounts of liquidated damages payable by this state to the independent contractor if the state exercises its right to terminate the contract at the conclusion of the first, second, third or fourth year of the contract pursuant to paragraph 6 OF THIS SUBSECTION . The damages recoverable by the independent contractor if the state exercises its right to terminate the contract shall be limited to the liquidated damages specified in the contract.

11. Any other provision deemed necessary by the director for the administration or enforcement of the emissions inspection agreement.

E. In conjunction with the attorney general and the department of administration, the department of environmental quality shall establish bid specifications or contract terms for a contract with an independent contractor as provided in this section, review bids for award of a contract with the independent contractors and negotiate any terms of a contract with the independent contractors.

F. In evaluating bids for an emissions inspection agreement, no additional consideration shall be given to a bid solely on the basis of the type of conditioning mode proposed in the bid.

G. Before entering into any contract the director shall inquire into the marketplace of independent contractors and based upon this review shall select the independent contractor who in the sole discretion of the director is best qualified to perform the duties required by this article. After a contract is awarded to an independent contractor, the director may modify the contract with the independent contractor to allow the contractor and the state to comply with amendments to applicable statutes or rules. These modifications are exempt from public bidding and may include the addition, deletion or alteration of any contract provision in order to make compliance feasible, including inspection fees and services rendered. Provisions relating to contract term or duration may be amended, except that the term or duration of the contract shall not be extended more than six and one-half years beyond the term of the original contract as awarded BEYOND DECEMBER 31, 2001 . Any proposed modification or amendment to the contract is subject to prior review by the joint legislative budget committee. If the director cannot negotiate an acceptable modification of the contract, the state may terminate the contract.

Sec. 5. Laws 1989, chapter 225, section 10, as amended by Laws 1991, chapter 8, section 11, is amended to read:

Sec. 10. Delayed repeal

Title 49, chapter 3, article 5, Arizona Revised Statutes, is repealed on January 1, 1999 FROM AND AFTER DECEMBER 31, 2001 .

Sec. 6. Vehicle emissions inspection legislative study committee

A. The vehicle emissions inspection legislative study committee is established consisting of the following members:

1. Five members of the house of representatives who are appointed by the speaker of the house of representatives. No more than three of these members may represent the same political party. The speaker shall select one of these members to serve as cochairperson of the committee.

2. Five members of the senate who are appointed by the president of the senate. No more than three of these members may represent the same political party. The president shall select one of these members to serve as cochairperson of the committee.

B. The committee shall review and make recommendations regarding the following issues on or before December 15, 1999:

1. The amount of pollution that is above the allowable standard and that is emitted by vehicles that receive waivers pursuant to section 49-542, Arizona Revised Statutes.

2. The actual net reduction of pollution by vehicles that fail the vehicle emissions inspection and then subsequently pass the vehicle emissions inspection.

3. Assistance to owners of motor vehicles that receive a one-time waiver and that subsequently cannot be registered.

4. The decentralization of the vehicle emissions inspection program.

5. The fostering of a competitive market for the vehicle emissions inspection program.

6. The requirement that a motor vehicle pass an emissions inspection test before it is registered.

7. The cost benefit relationship of the vehicle emissions inspection program.

8. A comparison of how vehicle emissions inspection programs are operated in other jurisdictions and in this state.

9. The cost benefit relationship of all programs funded by the vehicle emissions inspection testing and administration fee.

10. The use of vehicle emissions inspection stations throughout Maricopa county and Pima county by day, week and month and methods to even out demand at vehicle emissions inspection stations to continue reasonable wait times.

11. The need for additional vehicle emissions inspection stations.

12. The funding requirements of the vehicle inspection program through December 31, 2001.

13. The effectiveness of the vehicle emissions inspection program in reducing air pollution.

14. Any other issues related to the vehicle emissions inspection program that the committee deems appropriate.

C. The department of environmental quality and the motor vehicle division of the department of transportation shall provide assistance to the committee as requested by the committee.

Sec. 7. Department of environmental quality; administrative cost savings

The department of environmental quality shall reduce its administrative expenses to ensure that the fee charged to the vehicle owner for the transient loaded emissions test does not exceed the maximum amount permitted by statute. The department of environmental quality shall achieve a cost reduction of at least $1.50 per test through administrative cost savings and shall maintain the same level of service without increasing wait times and while remaining on schedule to accomplish the state's air quality goals. These air quality goals shall include implementation of the final cutpoints for the transient loaded emissions test.

Sec. 8. Department of environmental quality; report

The department of environmental quality shall prepare a plan for the administration of the vehicle emissions inspection program. The plan shall include a description of all fees charged and all cost reductions implemented to accomplish the reductions in costs required by this act. The department shall report on this plan to the legislature and the governor by January 31, 1999. The plan and report shall be based on the same level of service that is currently provided, including maintenance or improvement of wait times, and shall ensure that the state's air quality meets the state implementation plan elements that are scheduled for submittal to the United States environmental protection agency.

Sec. 9. Delayed repeal

Section 6 of this act, relating to the vehicle emissions inspection legislative study committee, is repealed from and after December 31, 1999.

Sec. 10. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.



PASSED THE HOUSE OF REPRESENTATIVES DECEMBER 16, 1998.

PASSED THE SENATE DECEMBER 16, 1998.


FILED IN THE OFFICE OF THE SECRETARY OF STATE DECEMBER 22, 1998.


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