A.R.S. tit. 28 ch. 18 — Arizona Revised Statutes Title 28 Chapter 18 — Distribution Of Highway User Revenues

28-6501. Definition of highway user revenues In this article, unless the context otherwise requires or except as otherwise provided by statute, "highway user revenues" means all monies received in this state from licenses, taxes, penalties, interest and fees authorized by the following: 1. Chapters 2, 7, 8 and 15 of this title, except for: (a) The special plate administration fees prescribed in sections 28-2404, 28-2407, 28-2412 through 28-2470.61 and 28-2514. (b) The donations prescribed in sections 28-2404, 28-2407, 28-2412 through 28-2415, 28-2417 through 28-2470.61, 28-2473, 28-2474, 28-2475, 28-2476, 28-2477 and 28-2478. 2. Section 28-1177. 3. Chapters 10 and 11 of this title. 4. Chapter 16, articles 1, 2 and 4 of this title, except as provided in sections 28-5926 and 28-5927. 28-6502. Record of highway user revenues; minimum dollar distribution A. The director shall file with the secretary of state a permanent record that contains a list of all highway user revenues collected, received or retained in this state in the fiscal year ending June 30, 1970. The list shall separately identify all sources of highway user revenues, including the number of dollars and cents that were distributed to, retained by or received by this state, by any county and by all of the cities and towns of any county cumulatively. B. If the total highway user revenues derived equal or exceed the total derived in the fiscal year ending June 30, 1970, the state and any county shall not receive from these revenues for the use of each and for distribution to cities and towns fewer dollars than were received and distributed in the fiscal year ending June 30, 1970. C. Statutory formulas existing on July 1, 1970 for the distribution of highway user revenues to the state, counties, cities or towns shall not be altered until highway user tax rates are raised and revenues are increased. New formulas adopted shall be based on the highway, road and street needs of the state, counties, cities and towns. 28-6531. Definitions In this article, unless the context otherwise requires: 1. "Arterial street or highway" means a street or highway used primarily for through traffic in such manner that vehicular traffic from intersecting streets and highways is required by law to stop or yield before entering or crossing the street or highway. 2. "Bonds" means any bonds that are payable from the state highway fund as provided in chapter 21, article 1 of this title. 3. "Controlled access highway" has the same meaning prescribed in section 28-601. 4. "Population" means the population determined in the most recent United States decennial census or the most recent special census as provided in section 28-6532 and revisions to the decennial or special census certified by the United States bureau of the census. 5. "State highway fund" means the state highway fund established by section 28-6991. 28-6532. Population determination; decennial or special census; population estimates A. Except as provided by section 42-5033.01, the population as shown by the decennial census as certified by the United States bureau of the census shall be used as the basis for the apportionment of monies pursuant to this article on July 1 in the year after the decennial census. B. During the fifth year after the decennial census, a county, city or town may request the United States bureau of the census to take a special census of the population of the county, city or town. The results of the special census shall be certified to the state treasurer and shall be used on July 1 in the year after the special census as the basis for the apportionment of monies pursuant to this article, except that a city or town may elect to use either the results of the special census or the most recent population estimates from the United States bureau of the census as provided under section 42-5033.01. A city or town may use the results of the special census for only one year, and beginning on July 1 in the second year after the special census, the city or town shall use the most recent population estimates from the United States bureau of the census as provided under section 42-5033.01 as the basis for the apportionment of monies pursuant to this article. C. Notwithstanding any other law, a city or town that is initially incorporated after the decennial census or July 1 of the fifth year after the decennial census and that has caused a special census of the population within the city or town limits to be taken by the United States bureau of the census may cause the result of the special census to be certified to the state treasurer. Beginning on July 1 after the completion of the special census, the results of the special census or the most recent population estimates from the United States bureau of the census may be used as the basis of the apportionment of monies pursuant to this article in determining the amount payable to the city or town. A city or town may use the results of the special census for only one year, and beginning on July 1 in the second year after the special census, the city or town shall use the most recent population estimates from the United States bureau of the census as provided under section 42-5033.01 as the basis for the apportionment of monies pursuant to this article. D. A county may request and utilize a special census for the purposes of subsection B of this section even if one or more incorporated cities or towns in the county do not request a special census. The county special census shall include only those persons residing in unincorporated areas of the county. 28-6533. Arizona highway user revenue fund; reports A. The officer collecting all highway user revenues, as defined in section 28-6501 and in article IX, section 14, Constitution of Arizona, and all fees, penalties and fines collected under sections 28-1101, 28-1103, 28-1105 and 28-1521 shall transfer the revenues to the department. After the deduction of all exemptions and refunds and after taking actions required under subsection C of this section, the department shall immediately deposit, pursuant to sections 35-146 and 35-147, the revenues in a fund designated as the Arizona highway user revenue fund. B. The revenues in the Arizona highway user revenue fund shall only be spent for the purposes prescribed in article IX, section 14, Constitution of Arizona. Counties and incorporated cities and towns shall not spend highway user revenue fund monies distributed to them pursuant to this article for enforcement of traffic laws or administration of traffic safety programs. If the auditor general reports to the state treasurer after conducting a performance audit pursuant to section 41-1279.03, subsection A, paragraph 7 that a jurisdiction has not used revenues as required by this subsection, the state treasurer shall withhold the noncomplying jurisdiction's revenues until the noncomplying jurisdiction presents evidence that is satisfactory to the auditor general and that shows that the jurisdiction has spent monies for purposes prescribed in this subsection from another general revenue source equal to the amount of the revenues diverted from the uses prescribed in this subsection. C. If there is any default, the department shall deduct all amounts required by law or any resolution authorizing the issuance of bonds of the board to be placed in the principal funds, interest funds, reserve funds or sinking funds or any other funds established to service bonds issued or to be issued by the board before the revenues are deposited in the Arizona highway user revenue fund. D. A county receiving monies pursuant to section 28-6538 shall publish an annual financial report for the prior fiscal year of funds received from motor vehicle fuel and use fuel taxes. The financial report shall contain budgeted and actual expenditures for the preceding fiscal year and shall be prepared and distributed by December 31 by the county. 28-6534. Arizona highway user revenue fund distribution; state match advantage for rural transportation fund Not later than June 15 of each fiscal year, the department shall allocate and transfer $2,500,000 of revenues from the Arizona highway user revenue fund to the state match advantage for rural transportation fund established by section 28-339. 28-6537. Arizona highway user revenue fund distribution; highway patrol costs For each fiscal year, the department of transportation shall allocate and transfer monies in the Arizona highway user revenue 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 1996-1997 fiscal year, seventeen million five hundred thousand dollars. 2. For the 1997-1998 fiscal year, fifteen million dollars. 3. For the 1998-1999 fiscal year, twelve million five hundred thousand dollars. 4. For the 1999-2000 fiscal year and for all subsequent fiscal years, ten million dollars. 28-6538. Arizona highway user revenue fund distribution; remaining monies; highway fund distribution; contract authorization; plan requirements A. Each fiscal year the department shall allocate and the state treasurer shall distribute revenues of the Arizona highway user revenue fund remaining after the distribution provided in sections 28-6534 and 28-6537 as follows: 1. To the state highway fund, fifty and one-half percent. 2. To the counties, nineteen percent. 3. To the incorporated cities and towns, twenty-seven and one-half percent. 4. To incorporated cities with a population of three hundred thousand or more persons, three percent. B. At least twelve and six-tenths percent of the revenues allocated each year to the state highway fund pursuant to subsection A of this section shall be further distributed in the following proportions and for the following purposes: 1. Seventy-five percent of the revenues shall be spent, pledged or accumulated in counties with a population of one million five hundred thousand or more persons for the design, right-of-way purchase or construction of controlled access highways that are included in the plan as defined in section 28-6351 and that are accepted into the state highway system either as a state route or as a state highway. 2. Twenty-five percent of the revenues shall be spent, pledged or accumulated in counties with a population of more than eight hundred thousand but less than one million five hundred thousand persons for: (a) The design, right-of-way purchase or construction of controlled access highways that are included in the plan as defined in section 28-6351 and that are accepted into the state highway system either as a state route or as a state highway or related grade separations of controlled access highways that are included in the plan as defined in section 28-6351. (b) Notwithstanding sections 28-6993 and 28-6995, the design, right-of-way purchase, construction, standard and reduced clearance grade separation, extension and widening of arterial streets and highways that are included in the plan as defined in section 28-6351. C. Of the monies allocated to the state highway fund pursuant to subsection A of this section, not more than $5,000,000 annually shall be spent for the acquisition, construction or improvement of entry roads to state parks or roads in state parks. D. Expenditures for state matching monies for the federal interstate system shall be in addition to the amount provided in subsection B of this section. E. The department may contract with a county, city or town to allow the county, city or town to construct the streets or highways prescribed in subsection B of this section. F. A county described in subsection B of this section and the cities and towns in the county, through their regional planning agency, shall list transportation corridors by priority in the plan as defined in section 28-6351. The plan as defined in section 28-6351 may also provide a suggested construction schedule for the transportation corridors contained in the plan. 28-6540. Arizona highway user revenue fund distribution; county, city and town proportions Each month the state treasurer shall distribute all revenues credited to the Arizona highway user revenue fund pursuant to the proportions prescribed in section 28-6538, subsection A as follows: 1. Revenues allocated to the counties shall be further distributed to each individual county as follows: (a) Seventy-two percent based on the proportion that all reported sales of motor vehicle fuel subject to sections 28-5619 and 28-5620 and the estimated consumption of use fuel in the county bear to the total sales of motor vehicle fuel and the estimated consumption of use fuel throughout this state during the preceding calendar month. (b) Twenty-eight percent based on the proportion that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state. 2. Revenues allocated to the incorporated cities and towns pursuant to section 28-6538, subsection A, paragraph 3 shall be distributed on the basis of the following apportionments: (a) One-half shall be apportioned to each city or town on the basis that the population of each bears to the population of all cities and towns in this state. (b) The remaining one-half shall be apportioned first on the basis of the county origin of all reported sales of motor vehicle fuels in this state subject to sections 28-5619 and 28-5620, which amount shall be further apportioned among the several incorporated cities and towns in each county in the proportion that the population of each city or town bears to the total population of all cities and towns in the county. 3. Revenues allocated to incorporated cities with a population of three hundred thousand or more persons shall be apportioned among the cities for the acquisition of rights-of-way or construction of streets or highways based on population. 28-6541. Arizona highway user revenue fund distribution; limitations The percentages, proportions, allocations and distributions prescribed by this article are subject to the following limitations: 1. If the total highway user revenues derived and credited to the Arizona highway user revenue fund equal or exceed the total highway user revenues derived in the fiscal year ending June 30, 1973, the state and any county shall not receive from these revenues for the use of each and for distribution to cities and towns fewer dollars than were received and distributed in the fiscal year ending June 30, 1973. 2. If the total highway user revenues derived and credited to the Arizona highway user revenue fund do not equal or exceed the total highway user revenues derived in the fiscal year ending June 30, 1973, the state and any county shall receive from these revenues for the use of each and for distribution to cities and towns their pro rata allocation based on the percentages as provided in section 28-6538, subsection A. 28-6542. Incorrect distributions; adjustments A. If the department determines that any of the amounts allocated and distributed as provided in this chapter during the preceding twenty-four months are incorrect, the department shall adjust future monthly allocations to correct any overages or shortages as provided in this section. The state treasurer shall distribute revenues in accordance with the adjusted allocations determined pursuant to this section. B. An adjustment to the amount allocated and distributed shall not be initiated pursuant to this section more than twenty-four months after the original distribution. C. The department shall adjust the allocations as follows: 1. In the case of overages, the department shall reduce the subsequent monthly allocation by the amount of the overage, if the remaining allocation is at least seventy-five per cent of the amount that would otherwise have been allocated to the recipient. If the entire amount of the required adjustment cannot be made in a single month, the department shall repeat the procedure in subsequent months until the overage is corrected. 2. In the case of shortages, the department shall increase the subsequent monthly allocation by the amount of the shortage, if the total amount of all of the increases in any single month does not exceed the total amount of all of the reductions made pursuant to paragraph 1 in that month. If the total of all reductions in a month is less than the amount of increases, the department shall proportionally reduce the increases. 28-6546. Arizona highway user revenue fund; investment Upon notice from the director, the state treasurer shall invest and divest monies in the Arizona highway user revenue fund in obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities, and monies earned from investment shall be credited to the fund.