Title 28 — Transportation

Chapter 1 Definitions, Penalties and General Provisions

Article 1 Definitions

§ 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. "All-terrain vehicle" means either of the following:

(a) A motor vehicle that satisfies all of the following:

(i) Is designed primarily for recreational nonhighway all-terrain travel.

(ii) Is fifty or fewer inches in width.

(iii) Has an unladen weight of one thousand two hundred pounds or less.

(iv) Travels on three or more nonhighway tires.

(v) Is operated on a public highway.

(b) A recreational off-highway vehicle that satisfies all of the following:

(i) Is designed primarily for recreational nonhighway all-terrain travel.

(ii) Is eighty or fewer inches in width.

(iii) Has an unladen weight of two thousand five hundred pounds or less.

(iv) Travels on four or more nonhighway tires.

(v) Has a steering wheel for steering control.

(vi) Has a rollover protective structure.

(vii) Has an occupant retention system.

4. "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.

5. "Autocycle" means a three-wheeled motorcycle on which the driver and passengers ride in a fully or partially enclosed seating area that is equipped with a roll cage, safety belts for each occupant and antilock brakes and that is designed to be controlled with a steering wheel and pedals.

6. "Automated driving system" means the hardware and software that are collectively capable of performing the entire dynamic driving task on a sustained basis, regardless of whether it is limited to a specific operational design domain.

7. "Automotive recycler" means a person that is engaged in the business of buying or acquiring a motor vehicle solely for the purpose of dismantling, selling or otherwise disposing of the parts or accessories and that removes parts for resale from six or more vehicles in a calendar year.

8. "Autonomous vehicle" means a motor vehicle that is equipped with an automated driving system.

9. "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.

10. "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.

11. "Board" means the transportation board.

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

13. "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.

14. "Certificate of ownership" means a paper or an electronic record that is issued in another state or a foreign jurisdiction and that indicates ownership of a vehicle.

15. "Certificate of title" means a paper document or an electronic record that is issued by the department and that indicates ownership of a vehicle.

16. "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.

17. "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.

18. "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.

19. "County highway" means a public road that is constructed and maintained by a county.

20. "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 and has paid fees pursuant to section 28-4302.

21. "Department" means the department of transportation acting directly or through its duly authorized officers and agents.

22. "Digital network or software application" has the same meaning prescribed in section 28-9551.

23. "Director" means the director of the department of transportation.

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

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

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

27. "Dynamic driving task":

(a) Means all of the real-time operational and tactical functions required to operate a vehicle in on-road traffic.

(b) Includes:

(i) Lateral vehicle motion control by steering.

(ii) Longitudinal motion control by acceleration and deceleration.

(iii) Monitoring the driving environment by object and event detection, recognition, classification and response preparation.

(iv) Object and event response execution.

(v) Maneuver planning.

(vi) Enhancing conspicuity by lighting, signaling and gesturing.

(c) Does not include strategic functions such as trip scheduling and selecting destinations and waypoints.

28. "Electric bicycle" means a bicycle or tricycle that is equipped with fully operable pedals and an electric motor of less than seven hundred fifty watts and that meets the requirements of one of the following classes:

(a) "Class 1 electric bicycle" means a bicycle or tricycle that is equipped with an electric motor that provides assistance only when the rider is pedaling and that ceases to provide assistance when the bicycle or tricycle reaches the speed of twenty miles per hour.

(b) "Class 2 electric bicycle" means a bicycle or tricycle that is equipped with an electric motor that may be used exclusively to propel the bicycle or tricycle and that is not capable of providing assistance when the bicycle or tricycle reaches the speed of twenty miles per hour.

(c) "Class 3 electric bicycle" means a bicycle or tricycle that is equipped with an electric motor that provides assistance only when the rider is pedaling and that ceases to provide assistance when the bicycle or tricycle reaches the speed of twenty-eight miles per hour.

29. "Electric miniature scooter" means a device that:

(a) Weighs less than thirty pounds.

(b) Has two or three wheels.

(c) Has handlebars.

(d) Has a floorboard on which a person may stand while riding.

(e) Is powered by an electric motor or human power, or both.

(f) Has a maximum speed that does not exceed ten miles per hour, with or without human propulsion, on a paved level surface.

30. "Electric personal assistive mobility device" means a self-balancing device with one wheel or two nontandem wheels and an electric propulsion system that limits the maximum speed of the device to fifteen miles per hour or less and that is designed to transport only one person.

31. "Electric standup scooter":

(a) Means a device that:

(i) Weighs less than seventy-five pounds.

(ii) Has two or three wheels.

(iii) Has handlebars.

(iv) Has a floorboard on which a person may stand while riding.

(v) Is powered by an electric motor or human power, or both.

(vi) Has a maximum speed that does not exceed twenty miles per hour, with or without human propulsion, on a paved level surface.

(b) Does not include an electric miniature scooter.

32. "Evidence" includes both of the following:

(a) A display on a wireless communication device of a department-generated driver license, nonoperating identification license, vehicle registration card or other official record of the department that is presented to a law enforcement officer or in a court or an administrative proceeding.

(b) An electronic or digital license plate authorized pursuant to section 28-364.

33. "Farm" means any lands primarily used for agriculture production.

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

35. "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.

36. "Fully autonomous vehicle" means an autonomous vehicle that is equipped with an automated driving system designed to function as a level four or five system under SAE J3016 and that may be designed to function either:

(a) Solely by use of the automated driving system.

(b) By a human driver when the automated driving system is not engaged.

37. "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.

38. "Gross combined weight rating" means the sum of the gross vehicle weight rating of a motor vehicle and the trailer or semitrailer the motor vehicle tows.

39. "Gross vehicle weight rating" means the weight that is assigned by the motor vehicle manufacturer to a motor vehicle and that represents the maximum recommended total weight, including the vehicle and the load for the vehicle.

40. "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, or any quantity of a material listed as a select agent or toxin under 42 Code of Federal Regulations part 73 that 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.

41. "Human driver" means a natural person in the vehicle who performs in real time all or part of the dynamic driving task or who achieves a minimal risk condition for the vehicle.

42. "Implement of husbandry" means a vehicle that is designed primarily for agricultural purposes and that is used exclusively in the conduct of agricultural operations, including an implement or vehicle that uses an automated driving system or that is autonomous or that is self-propelled or otherwise, whether operated manually, equipped with an automated driving system that is not in use or equipped with an automated driving system that is in use, and that meets both of the following conditions:

(a) Is used solely for agricultural purposes including the preparation or harvesting of cotton, alfalfa, grains, specialty crops and other farm crops. For the purposes of this subdivision, "specialty crops" includes fruits, vegetables, tree nuts, dried fruits and horticulture and nursery crops, including floriculture.

(b) Is only incidentally operated or moved on a highway whether as a trailer or an autonomous vehicle or a self-propelled unit. For the purposes of this subdivision, "incidentally operated or moved on a highway" means travel between a farm and another part of the same farm, from one farm to another farm or between a farm and a place of repair, supply or storage.

43. "Limousine" means a motor vehicle providing prearranged ground transportation service for an individual passenger, or a group of passengers, that is arranged in advance or is operated on a regular route or between specified points and includes ground transportation under a contract or agreement for services that includes a fixed rate or time and is provided in a motor vehicle with a seating capacity not exceeding fifteen passengers including the driver.

44. "Livery vehicle" means a motor vehicle that:

(a) Has a seating capacity not exceeding fifteen passengers including the driver.

(b) Provides passenger services for a fare determined by a flat rate or flat hourly rate between geographic zones or within a geographic area.

(c) Is available for hire on an exclusive or shared ride basis.

(d) May do any of the following:

(i) Operate on a regular route or between specified places.

(ii) Offer prearranged ground transportation service as defined in section 28-141.

(iii) Offer on demand ground transportation service pursuant to a contract with a public airport, licensed business entity or organization.

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

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

47. "Minimal risk condition":

(a) Means a condition to which a human driver or an automated driving system may bring a vehicle in order to reduce the risk of a crash when a given trip cannot or should not be completed.

(b) Includes bringing the vehicle to a complete stop.

48. "Moped" means a bicycle, not including an electric bicycle, an electric miniature scooter or an electric standup scooter, 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 percent grade.

49. "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 excludes a tractor, an electric bicycle, an electric miniature scooter, an electric standup scooter and a moped.

50. "Motor driven cycle" means a motorcycle, including every motor scooter, with a motor that produces not more than five horsepower but does not include an electric bicycle, an electric miniature scooter or an electric standup scooter.

51. "Motorized quadricycle" means a self-propelled motor vehicle to which all of the following apply:

(a) The vehicle is self-propelled by an emission-free electric motor and may include pedals operated by the passengers.

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

(c) The vehicle seats at least eight passengers, including the driver.

(d) The vehicle is operable on a flat surface using solely the electric motor without assistance from the pedals or passengers.

(e) The vehicle is a commercial motor vehicle as defined in section 28-5201.

(f) The vehicle is a limousine operating under a vehicle for hire company permit issued pursuant to section 28-9503.

(g) The vehicle is manufactured by a motor vehicle manufacturer that is licensed pursuant to chapter 10 of this title.

(h) The vehicle complies with the definition and standards for low-speed vehicles set forth in 49 Code of Federal Regulations sections 571.3(b) and 571.500, respectively.

52. "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 scrap vehicle, a personal delivery device, a personal mobile cargo carrying device, a motorized wheelchair, an electric personal assistive mobility device, an electric bicycle, an electric miniature scooter, an electric standup scooter or a motorized skateboard. For the purposes of this subdivision:

(i) "Motorized skateboard" means a self-propelled device that does not have handlebars and that has a motor, a deck on which a person may ride and at least two tandem wheels in contact with the ground.

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

53. "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 inflammable liquids that are specifically manufactured for racing motor vehicles and that are distributed for and used by racing motor vehicles at a racetrack, use fuel as defined in section 28-5601, 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.

54. "Neighborhood electric shuttle":

(a) Means a self-propelled electrically powered motor vehicle to which all of the following apply:

(i) The vehicle is emission free.

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

(iii) The vehicle is capable of transporting at least eight passengers, including the driver.

(iv) The vehicle is a commercial motor vehicle as defined in section 28-5201.

(v) The vehicle is a vehicle for hire as defined in section 28-9501 and operates under a vehicle for hire company permit issued pursuant to section 28-9503.

(vi) The vehicle complies with the definition and standards for low-speed vehicles set forth in 49 Code of Federal Regulations sections 571.3(b) and 571.500, respectively.

(b) Includes a vehicle that meets the standards prescribed in subdivision (a) of this paragraph and that has been modified after market and not by the manufacturer to transport up to fifteen passengers, including the driver.

55. "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 has at least four wheels in contact with the ground.

(c) The vehicle complies with the definition and standards for low-speed vehicles, unless excepted or exempted under federal law, set forth in 49 Code of Federal Regulations sections 571.3(b) and 571.500, respectively.

56. "Neighborhood occupantless electric vehicle" means a neighborhood electric vehicle that is not designed, intended or marketed for human occupancy.

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

58. "Off-road recreational motor vehicle" means a motor vehicle that is designed primarily for recreational nonhighway all-terrain travel and that is not operated on a public highway. Off-road recreational motor vehicle does not mean a motor vehicle used for construction, building trade, mining or agricultural purposes.

59. "Operational design domain":

(a) Means operating conditions under which a given automated driving system is specifically designed to function.

(b) Includes roadway types, speed range, environmental conditions, such as weather or time of day, and other domain constraints.

60. "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.

61. "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.

62. "Pedestrian" means any person afoot. A person who uses an electric personal assistive mobility device or 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.

63. "Personal delivery device":

(a) Means a device that is both of the following:

(i) Manufactured for transporting cargo and goods in an area described in section 28-1225.

(ii) Equipped with automated driving technology, including software and hardware, that enables the operation of the device with the remote support and supervision of a human.

(b) Does not include a personal mobile cargo carrying device.

64. "Personal mobile cargo carrying device" means an electronically powered device that:

(a) Is operated primarily on sidewalks and within crosswalks and that is designed to transport property.

(b) Weighs less than eighty pounds, excluding cargo.

(c) Operates at a maximum speed of twelve miles per hour.

(d) Is equipped with technology to transport personal property with the active monitoring of a property owner and that is primarily designed to remain within twenty-five feet of the property owner.

(e) Is equipped with a braking system that when active or engaged enables the personal mobile cargo carrying device to come to a controlled stop.

65. "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.

66. "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 sightseeing bus, school bus or taxi or a vehicle not operated on a scheduled route basis.

67. "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.

68. "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.

69. "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.

70. "SAE J3016" means surface transportation recommended practice J3016 taxonomy and definitions for terms related to driving automation systems for on-road motor vehicles published by SAE international in June 2018.

71. "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.

72. "Scrap metal dealer" has the same meaning prescribed in section 44-1641.

73. "Scrap vehicle" has the same meaning prescribed in section 44-1641.

74. "Semitrailer" means a vehicle that is with or without motive power, other than a pole trailer or single-axle tow dolly, 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.

75. "Single-axle tow dolly" means a nonvehicle device that is drawn by a motor vehicle, that is designed and used exclusively to transport another motor vehicle and on which the front or rear wheels of the drawn motor vehicle are mounted on the tow dolly while the other wheels of the drawn motor vehicle remain in contact with the ground.

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

77. "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.

78. "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.

79. "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.

80. "Taxi" means a motor vehicle that has a seating capacity not exceeding fifteen passengers, including the driver, that provides passenger services and that:

(a) Does not primarily operate on a regular route or between specified places.

(b) Offers local transportation for a fare determined on the basis of the distance traveled or prearranged ground transportation service as defined in section 28-141 for a predetermined fare.

81. "Title transfer form" means a paper or an electronic form that is prescribed by the department for the purpose of transferring a certificate of title from one owner to another owner.

82. "Traffic survival school" means a school that is licensed pursuant to chapter 8, article 7.1 of this title and that offers educational sessions that are designed to improve the safety and habits of drivers and that are approved by the department.

83. "Trailer" means a vehicle that is with or without motive power, other than a pole trailer or single-axle tow dolly, 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.

84. "Transportation network company" has the same meaning prescribed in section 28-9551.

85. "Transportation network company vehicle" has the same meaning prescribed in section 28-9551.

86. "Transportation network service" has the same meaning prescribed in section 28-9551.

87. "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.

88. "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.

89. "Vehicle":

(a) Means a device in, on or by which a person or property is or may be transported or drawn on a public highway.

(b) Does not include:

(i) Electric bicycles, electric miniature scooters, electric standup scooters and devices moved by human power.

(ii) Devices used exclusively on stationary rails or tracks.

(iii) Personal delivery devices.

(iv) Scrap vehicles.

(v) Personal mobile cargo carrying devices.

90. "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.

Article 2 General Penalties

§ 28-121 Violation; classification; exception; civil traffic violation; surcharge

A. A person who violates a provision of this title or who fails or refuses to do or perform an act or thing required by this title is guilty of a class 2 misdemeanor, unless the statute defining the offense provides for a different classification. This subsection does not apply to any provision or requirement of chapter 3, 5, 7 or 8 or chapter 9, article 4 of this title.

B. A violation of or failure or refusal to do or perform an act or thing required by chapter 3, 5, 7 or 8 or chapter 9, article 4 of this title is a civil traffic violation unless the statute defining the violation provides for a different classification. Civil traffic violations are subject to chapter 5, articles 3 and 4 of this title.

C. In addition to any other penalty assessment provided in this title, the court shall levy the surcharge as required by sections 12-116.01 and 12-116.02.

Article 3 General Provisions

§ 28-141 Prearranged ground transportation; applicability; definitions

A. The department shall not require a permit or impose a fee on a motor vehicle providing prearranged ground transportation service if the motor carrier providing the service does all of the following:

1. Meets all applicable registration requirements for the interstate transportation of passengers under the ICC termination act of 1995 (P.L. 104-88; 109 Stat. 879; 49 United States Code sections 13901 through 13908).

2. Meets all applicable vehicle and intrastate passenger licensing requirements of the state in which the vehicle is domiciled or registered to do business.

3. Provides the service pursuant to a contract for either of the following:

(a) Transportation from this state, including intermediate stops, to a destination in another state.

(b) Transportation from this state, including intermediate stops in another state, to a destination in this state.

B. For the purposes of this section:

1. "Intermediate stop" means a pause in the transportation in order for one or more passengers to engage in personal or business activity, but only if the driver providing the transportation to the passenger does not, before resuming the transportation of the passenger or at least one of the passengers, provide transportation to any other person not included among the passengers being transported when the pause began.

2. "Prearranged ground transportation service" means transportation for a passenger or a group of passengers that is arranged in advance or that is operated on a regular route or between specified points.

§ 28-142 Livery vehicle, taxi, transportation network company vehicle, transportation network company and limousine regulation; state preemption

The regulation and use of livery vehicles, taxis, transportation network company vehicles, transportation network companies and limousines are of statewide concern. Livery vehicles, taxis, transportation network company vehicles and limousines and their use and transportation network companies that are regulated pursuant to this title are not subject to further regulation by a county, city, town or other political subdivision of this state, except that a public airport operator that operates a public airport pursuant to section 28-8421, 28-8423 or 28-8424 or a public body operating a public airport may establish the number of livery vehicles, taxis, transportation network company vehicles, transportation network companies or limousines that may conduct business at a public airport or may set additional or more restrictive requirements for the conduct of that business at a public airport.

§ 28-143 Heavy and commuter rail; construction; definitions

A. For each heavy rail or commuter rail project, the licensed contractor performing the construction shall perform, with the contractor's own organization, construction work on the rail component that amounts to not less than thirty per cent of the contract price for construction of the rail component.

B. The thirty per cent self-performance requirement of subsection A of this section does not apply if the contract price for construction of the rail component is less than one-half of the total contract price for construction of the heavy rail or commuter rail project.

C. Project elements shall not be artificially added to a project to make a project into a heavy rail or commuter rail project. Project elements shall not be artificially deleted from a project to make a project not a heavy rail or commuter rail project.

D. The department may include in any heavy rail or commuter rail project:

1. Rail components.

2. Stations, maintenance or repair facilities, operations centers, office buildings or parking facilities related to heavy rail or commuter rail.

E. If any monies for a heavy rail or commuter rail project are provided by the federal government, any requirement or other provision of this section does not apply to the heavy rail or commuter rail project if the requirement or provision is in conflict with any requirement of federal law, regulation or policy, the federal government or the federal funding agency.

F. For the purposes of this section, in determining the contract price for construction of all or any part of a heavy rail or commuter rail project, the contract price for construction does not include the cost of preconstruction services or design services, as defined in section 28-7361, any other related services or the cost to procure any right-of-way or other cost of condemnation.

G. This section applies to the design-bid-build, design-build, construction-manager-at-risk and job-order-contracting project delivery methods.

H. For the purposes of this section:

1. "Heavy rail or commuter rail project" means a department facilities project for heavy rail or commuter rail, including any rail component and any stations, maintenance or repair facilities, operations centers, office buildings or parking facilities relating to heavy rail or commuter rail.

2. "Rail component" means the part of a heavy rail or commuter rail project related to the track and operation of trains on the track, including the rails, ties, track bed, subgrade, excavations, dirt, rock and other materials removal and buildup, signals and communications equipment, highway crossings and crossing gates and signals. Rail component does not include any stations, maintenance or repair facilities, operations centers, office buildings or parking facilities.

§ 28-144 Driver license or permit restrictions

A. Except as otherwise provided by law, a restriction on a person's driver license or permit to drive as a result of a conviction for a violation of this title may limit the person's privilege to drive for the following applicable purposes:

1. Between the person's residence and place of employment during specified periods of time while at employment.

2. Between the person's residence or place of employment and the person's school according to the person's employment or education schedule.

3. Between the person's residence, place of employment or school and the office of a health professional as defined in section 32-3201.

4. Between the person's residence, place of employment or school and a screening, education or treatment facility for scheduled appointments.

5. Between the person's residence, place of employment or school and the office of the person's probation officer for scheduled appointments, including any appointment that is required to fulfill a condition or requirement that is imposed on the person by this state or a political subdivision of this state.

6. Between the person's residence, place of employment or school and a certified ignition interlock device service facility.

7. Between the person's residence and a location designated for the purpose of parenting time as defined in section 25-401.

8. To transport a dependent person between the driver's or dependent person's residence and the dependent person's employment, school or medical appointment.

9. Between the person's residence and court-ordered screening, education or treatment for scheduled appointments.

B. This section does not apply to a person who is the holder of a commercial driver license issued pursuant to this title.

§ 28-145 Vehicle energy source; restrictions prohibited; exception

Except as provided in section 28-737, section 49-410 and its implementing rules and sections 49-571 and 49-573, this state or a city, town, county or political subdivision of this state shall not restrict the use or sale of a vehicle in this state if the restriction is based on the vehicle's energy source. This section does not apply to government-owned vehicles.

Chapter 2 Administration

Article 1 Transportation Board

§ 28-301 Transportation districts

A. Except as provided in subsection B, the state is divided into six transportation districts as follows:

1. First district, Maricopa county.

2. Second district, Pima county.

3. Third district, Cochise, Greenlee and Santa Cruz counties.

4. Fourth district, Gila, Graham and Pinal counties.

5. Fifth district, Apache, Coconino and Navajo counties.

6. Sixth district, La Paz, Mohave, Yavapai and Yuma counties.

B. If, after January 1, 2009, a county attains a population of five hundred thousand or more persons, a new district shall be formed consisting of only that county. The county shall be removed from the district it was in before the new district was formed. The clerk of the county board of supervisors, with the concurrence of the Arizona commerce authority, shall notify the governor, the state transportation board and the department of transportation of the new district by the end of the calendar year in which the county becomes qualified under this subsection. The governor shall appoint an additional member of the state transportation board for the new district pursuant to this section within sixty days after receiving the notice.

§ 28-302 Transportation board; members; appointments; terms; compensation

A. A transportation board is established in the department of transportation.

B. The board consists of one member from each transportation district with a population of less than two million two hundred thousand persons according to the most recent United States decennial census and two members from each transportation district with a population of two million two hundred thousand or more persons according to the most recent United States decennial census.

C. The governor shall appoint members of the board for terms of six years pursuant to section 38-211 to expire on the third Monday in January of the appropriate year. When appointing members from a transportation district with a population of two million two hundred thousand or more persons according to the most recent United States decennial census, the governor shall take into account geographic balance within the district.

D. A person is not qualified to be a member of the board representing a transportation district if the person has not been a resident and taxpayer of this state and the county from which the person is chosen for at least five years immediately before the person's appointment.

E. The governor shall not appoint a member to serve two terms in succession. If a transportation district includes more than one county, the governor shall rotate the appointment of members for the district among the counties in the district.

F. If a member who represents a transportation district changes the member's residence to another county, the member's office becomes vacant.

G. Each member is eligible to receive compensation pursuant to section 38-611.

§ 28-303 Powers and duties of the board; meetings

A. The board may meet when necessary at any place in this state. The board shall hold other regular meetings as it determines necessary. The chairman may call special meetings with the concurrence of at least two members.

B. The board shall meet for the purpose of organizing on or before the third Monday in January of each year at which time the board shall designate the district member with the shortest period of time remaining to serve a complete term as chairman. The chairman shall preside at all sessions. The board shall designate the district member with the next shortest period of time remaining to serve a complete term as vice-chairman. The vice-chairman shall preside in the absence of the chairman. If the district member with the least time to serve does not choose to serve as chairman, the members shall select a chairman from the remaining board members.

C. If the chairman's membership on the board is terminated for any reason, the remaining members of the board shall select another member to serve as chairman until the regular organizational meeting on or before the third Monday in January of each year.

§ 28-304 Powers and duties of the board; transportation facilities

A. The board shall:

1. Develop and adopt a statewide transportation policy statement. The policy statement shall be adopted as described in section 28-306.

2. Adopt a long-range statewide transportation plan. The plan shall be adopted as described in section 28-307.

3. Adopt uniform transportation planning practices and performance-based planning processes for use by the department. The practices and processes shall be developed as described in sections 28-502 and 28-503.

4. Adopt transportation system performance measures and factors and data collection standards to be used by the department. The performance measures, factors and standards shall be developed as described in sections 28-504 and 28-505.

B. With respect to highways, the board shall:

1. Establish a complete system of state highway routes.

2. Determine which state highway routes or portions of the routes are accepted into the state highway system and which state highway routes to improve.

3. Establish, open, relocate or alter a portion of a state route or state highway.

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

5. Sell board funding obligations to the state treasurer as provided in section 28-7678.

C. The board shall:

1. Establish policies to guide the development or modification of the five year transportation facilities construction program that are consistent with the principles of performance-based planning developed pursuant to article 7 of this chapter. The percentage of department discretionary monies allocated to the region in the plan approved pursuant to chapter 17, article 1 of this title shall not increase or decrease unless the board, in cooperation with the regional planning agency, agrees to change the percentage of the discretionary monies.

2. Award all construction contracts for transportation facilities.

3. Monitor the status of these construction projects.

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

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

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

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

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

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

§ 28-305 Powers and duties of the board; rules

The board may prescribe rules for the effective administration of its powers, duties and responsibilities, including rules relating to:

1. Priority programs.

2. Establishing, altering or vacating highways.

3. Construction contracts.

4. Revenue bonds.

5. Local government airport grants.

6. Prohibiting bid rigging.

§ 28-306 Statewide transportation policy statement

A. The board shall develop a statewide transportation policy statement as provided in this section.

B. The statewide transportation policy statement shall be developed and adopted on or before January 1, 2003 and shall be reviewed and updated on or before January 1 of each odd-numbered year thereafter.

C. The statewide transportation policy statement shall include the performance expectations for the statewide transportation system over the next twenty years using the performance measures developed pursuant to section 28-504. The policy statement shall provide guidance to the department in developing a comprehensive and balanced statewide highway system.

D. In establishing the long-range policy goals for the statewide transportation system, the board shall ensure that the future transportation system facilitates, rather than directs, future development in this state.

E. In establishing the statewide transportation policy statement, the board shall consider, to the greatest extent possible, local, regional and tribal transportation goals.

§ 28-307 Long-range statewide transportation plan; board duties

A. The board shall develop a statewide transportation plan as provided in this section and section 28-506.

B. The statewide plan shall be adopted on or before December 31, 2006 and shall be reviewed and updated on or before July 1 of each fifth year thereafter. The board shall update the dollar estimates in the statewide plan every two years in conjunction with the certifications required by section 28-335.

C. In establishing the statewide plan, the board shall endeavor to ensure that the future transportation system facilitates, rather than directs, future development in this state. To the greatest extent possible, the board shall ensure that the statewide plan reflects the future transportation needs of the various areas of this state as reflected in adopted local and regional land use and general plans.

D. In establishing the statewide plan, the board shall consider, to the greatest extent possible, local, regional and tribal transportation plans.

Article 2 Department of Transportation

§ 28-331 Department of transportation established

A. A department of transportation is established. The department shall provide for an integrated and balanced state transportation system.

B. The director is responsible for the administration of the department.

C. The transportation board has the policy powers and duties prescribed in sections 28-304, 28-305, 28-7209 and 28-8202 and shall advise the director on other matters as required.

§ 28-332 Department of transportation jurisdiction; duties

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 multimodal 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.

6. Except as provided in section 28-472, subsection F, operate a state motor vehicle fleet for all motor vehicles that are owned, leased or rented by this state.

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

1. Motor vehicle.

2. Transportation planning.

3. Highways.

4. Aeronautics.

5. Public transit.

6. Administrative services.

D. The director may do any of the following:

1. Establish divisions in addition to those prescribed in subsection C of this section.

2. Reorganize the department.

3. Consolidate the department.

§ 28-333 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.

§ 28-334 Acceptance and expenditure of federal monies; limitations

A. The department may accept and expend grants, donations, aid or other monies received from the federal government or any agency of the federal government for any transportation purpose.

B. The department may contract and do all things necessary to secure the full benefits available to this state for transportation purposes under federal law and, in doing so, may cooperate with federal, state and local government agencies, Indian tribes, private and public organizations and private individuals. The department may exchange federal funds with local governments in order to receive local funds and may include additional federal funds in the exchange to offset matching costs required of local governments.

C. The department may:

1. Assume the responsibility of the United States department of transportation with respect to highway projects with this state under the national environmental policy act of 1969 (P.L. 91-190; 83 Stat. 852; 42 United States Code sections 4321 through 4347) and with respect to related responsibility for environment review, consultation or other action required under any federal environmental law pertaining to review or approval of a highway project in this state.

2. Assume responsibility under 23 United States Code sections 326 and 327 and enter into one or more agreements, including memoranda of understanding with the United States secretary of transportation related to the state assumption of responsibility for categorical exclusions as provided by 23 United States Code section 326 and the federal surface transportation project delivery program for the delivery of highway projects as provided by 23 United States Code section 327. Sovereign immunity from civil suit in federal court is waived consistent with 23 United States Code sections 326 and 327 and limited to the compliance, discharge or enforcement of a responsibility assumed by the department under this paragraph.

D. This chapter does not affect the authority of other agencies or boards of this state or political subdivisions from accepting, receiving or expending grants or other monies from the federal government or any agency of the federal government for transportation purposes pursuant to other provisions of law or charter.

§ 28-335 Comprehensive financial management system

A. The department shall establish a comprehensive financial management system.

B. The comprehensive financial management system shall include separate certifications of future estimated revenues and future estimated system costs as reflected in the long-range statewide transportation plan developed and updated pursuant to sections 28-307 and 28-506. All transportation revenues, including federal, state, regional and local revenues, shall be included in the certifications. All transportation costs shall be included in the certification of anticipated costs, including optimal long-term system preservation costs and system maintenance and administration costs as well as system expansion costs. In developing the data collection and reporting methodologies, until January 1, 2006, the department shall provide for the use of estimates of the items required in this section if the department or a regional or local transportation agency is unable to obtain reliable information pertaining to the items required.

C. The department shall complete the certifications on or before December 31, 2004 and on or before July 1 of each even-numbered year thereafter.

D. All state, regional and local transportation agencies shall assist the department in preparing the certifications. Tribal governments are encouraged to assist the department in preparing the certifications.

E. If the department is unable to obtain reliable information concerning the revenues or costs of components of the transportation system, it may develop and use estimates of those amounts in order to comply with this section.

§ 28-336 REAL ID act; implementation prohibited

This state shall not participate in the implementation of the REAL ID act of 2005 (P.L. 109-13, division B; 119 Stat. 302). The department shall not implement the REAL ID act of 2005 and shall report to the governor and the legislature any attempt by agencies or agents of the United States department of homeland security to secure the implementation of the REAL ID act of 2005 through the operations of the United States department of homeland security.

§ 28-337 High occupancy vehicle lane; lane degradation; priority use

A. In accordance with 23 United States Code section 166, the department shall develop procedures to monitor the impact that single occupancy vehicles authorized under sections 28-2416 and 28-2416.01 have on the operation of the high occupancy vehicle lanes.

B. If a high occupancy vehicle lane becomes degraded due to the authorization of single occupancy vehicles authorized under sections 28-2416 and 28-2416.01, use of the lane is restricted to the following vehicles in the following priority:

1. Passenger vehicles with two or more occupants, including the driver.

2. Public transit buses.

3. Buses with two or more occupants, including the driver.

4. Motorcycles.

5. Alternative fuel vehicles.

6. Low emission and energy efficient vehicles.

C. The department shall limit use to vehicles in the priority order prescribed in subsection B of this section and shall maintain those restrictions while the lane or portion of the lane remains degraded.

D. For the purposes of this section, a high occupancy vehicle lane is degraded if vehicles operating on the facility, or portions of the facility, are failing to maintain a speed of forty-five miles per hour or greater ninety per cent of the time over a consecutive one hundred eighty day period during morning and evening weekday peak hour periods.

§ 28-338 Enhanced driver license prohibition

This state shall not participate in the implementation of an enhanced driver license program to satisfy the requirements of the federal western hemisphere travel initiative or the REAL ID act of 2005 (P.L. 109-13, division B; 119 Stat. 302). The department shall not implement an enhanced driver license program and shall report to the governor and the legislature any attempt by agencies or agents of the United States department of homeland security to secure the implementation of an enhanced driver license program through the operations of the United States department of homeland security.

§ 28-339 State match advantage for rural transportation fund; allocation of monies; definitions

A. The state match advantage for rural transportation fund is established. The department shall administer the fund. Monies in the fund are continuously appropriated. The fund consists of the following:

1. Monies appropriated by the legislature.

2. Any nonfederal gifts, grants, donations or other amounts received from any public or private source for transportation projects.

B. 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.

C. The department may establish any subaccount in the fund that the department determines is necessary to carry out the purposes of this section.

D. The department may not approve any expenditures from the fund unless the expenditure is made in accordance with this section.

E. Monies in the fund shall be used only for the following:

1. To reimburse up to fifty percent of the costs associated with developing and submitting an application for a federal grant.

2. To provide match or reimbursement of a match for a federal grant.

3. To fund or reimburse design and other engineering services expenditures that meet federal standards for projects eligible for a federal grant. Applicants awarded funding for design and other engineering services shall submit an application for a federal grant within two years after the award or the award lapses and the applicant must repay any expended monies to the fund. The applicant shall submit repayment within thirty days after receiving an invoice from the department.

F. Except as provided in subsection G of this section, the department shall suballocate monies in the fund to the following five categories:

1. Twenty percent to projects located in counties with a population of one hundred thousand persons or more for uses described in subsection E, paragraphs 2 and 3 of this section.

2. Twenty percent to projects located in counties with a population of less than one hundred thousand persons for uses described in subsection E of this section.

3. Twenty percent to projects located in municipalities with a population of ten thousand persons or more for uses described in subsection E, paragraphs 2 and 3 of this section.

4. Twenty percent to projects located in municipalities with a population of less than ten thousand persons for uses described in subsection E of this section.

5. Except as provided in subsection L of this section, twenty percent to the department for uses described in subsection E, paragraphs 2 and 3 of this section.

G. A project located in a county with a population of more than one million persons is not eligible for funding pursuant to subsection F, paragraph 1 of this section. A project located in a municipality that is partially or entirely located in an urbanized area of a county with a population of more than one million persons is not eligible for funding pursuant to subsection F, paragraph 3 or 4 of this section. The department may not use monies pursuant to subsection F, paragraph 5 of this section for projects that are located in an urbanized area of a county with a population of more than one million persons.

H. An entity that is eligible to receive a federal grant shall submit an application to the department to be eligible for an award from the fund. The entity must first obtain the approval of the applicable metropolitan planning organization or council of governments before submitting an application to the department. The department may establish an application deadline and require additional documentation to ensure an applicant is eligible for the federal grant. The board may also determine the extent to which an applicant has the technical and financial capacity to successfully complete the project.

I. On receipt of an application, the department shall determine if the requirements of the notice of funding opportunity or the federal statutes establishing the federal grant are met and if the approval required under subsection H of this section is granted. If the department determines that the application meets the requirements and is complete, the department shall forward the application to the departmental committee established pursuant to section 28-6951 for a recommendation. If a recommendation is made, the department shall notify the chairperson of the board that the application is ready for consideration and action by the board.

J. Once notified pursuant to subsection I of this section, the chairperson of the board shall place the application on an agenda for action within forty-five days after original receipt of the notification. The board may give preference to applicants that can demonstrate any of the following:

1. The percentage of matching monies provided by the applicant.

2. The extent that the applicant will partner with other entities to deliver the project.

3. Other factors as deemed appropriate by the board for the applicable federal grant.

K. The board may approve, deny, modify or request more information on the application. If the board approves an award, the department shall execute an agreement with the applicant regarding reimbursement and expenditures pursuant to subsection E of this section.

L. On the department's request, the board shall approve the use of monies as described in subsection F, paragraph 5 of this section. The department may annually use up to five percent of the monies earned in the previous fiscal year under subsection B of this section to administer the fund.

M. If an applicant receives an award pursuant to subsection E, paragraph 2 of this section but is not able to secure the federal grant, the department shall make the award monies available for other applications.

N. Beginning January 1 and July 1 of each year, the board may redistribute the unawarded monies in the fund to ensure each category under subsection F of this section receives a share of the monies based on the percentages prescribed in subsection F of this section. The department shall post the amount available for each category on the department's website within thirty days after the approval of the redistribution by the board.

O. Notwithstanding subsection J of this section and based on available funding, the board may direct the department to close applications for any category and return any unawarded applications to the applicants.

P. The board shall rescind an award if an applicant receives funding from another source for the same project and purpose in an amount equal to or greater than the award made under this section. The applicant shall repay any monies expended from the fund within one year after the date of the rescission resolution approved by the board.

Q. For the purposes of this section:

1. "Federal grant" means a federal discretionary grant program administered by any federal agency for surface transportation purposes.

2. "Urbanized area" means an urbanized area as defined in the most recent decennial census certified by the United States census bureau.

Article 3 Director of the Department of Transportation

§ 28-361 Director; appointment; compensation

A. The governor shall appoint the director pursuant to section 38-211 from a list of qualified candidates submitted by the transportation board. 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. The board shall receive and review applications for the position of director and shall forward the names of all qualified applicants to the governor. The governor may ask for additional names and recommendations at any time.

C. The director is eligible to receive compensation pursuant to section 38-611.

§ 28-362 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.

§ 28-363 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. Exercise complete and exclusive operational control and jurisdiction over the use of state highways and routes.

6. Coordinate the design, right-of-way purchase and construction of controlled access highways that are either state routes or state highways and related grade separations of controlled access highways.

7. Coordinate the design, right-of-way purchase, construction, standard and reduced clearance grade separation, extension and widening of arterial streets and highways under chapters 17 and 18 of this title.

8. Assist regional transportation planning agencies, councils of government, tribal governments, counties, cities and towns in the development of their regional and local transportation plans to ensure that the streets, highways and other regionally significant modes of transportation within each county form an integrated and efficient regional system.

9. Designate the necessary agencies for enforcing the provisions of the laws the director administers or enforces.

10. Exercise other duties or powers as the director deems necessary to carry out the efficient operation of the department.

11. Cooperate with the Arizona-Mexico commission in the governor's office and with researchers at universities in this state to collect data and conduct projects in the United States and Mexico on issues that are within the scope of the department's duties and that relate to quality of life, trade and economic development in this state in a manner that will help the Arizona-Mexico commission to assess and enhance the economic competitiveness of this state and of the Arizona-Mexico region.

12. Develop a plan to increase use of bypass routes by vehicles on days of poor visibility in the Phoenix metropolitan area.

B. The assistant directors appointed pursuant to subsection A of this section are subject to title 41, chapter 4, article 4.

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

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

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

§ 28-364 Powers of the director

A. The director may provide technical transportation planning expertise to local governments when requested, coordinate local government transportation planning with regional and state transportation planning and guide local transportation planning to ensure compliance with federal requirements. The planning authority granted by this subsection does not preempt planning responsibilities and decisions of local governments.

B. If the governor declares a state of emergency, the director may contract and do all things necessary to provide emergency transportation services for the residents in the affected areas whether the emergency transportation is by street, rail or air.

C. On a determination that it is in this state's best interest, the director may authorize payment for necessary relocation costs in advance of work being performed if an existing facility owned by the United States must be relocated or adjusted due to construction, modification or improvement of a state highway. The director shall base each advance payment on an estimate of cost of the proposed relocation or adjustment prepared by the federal government and acceptable to the director and shall base the final compensation on the actual agreed cost.

D. The director of the department of transportation in consultation with the director of the department of public safety shall develop procedures to exchange information for any purpose related to sections 28-1324, 28-1325, 28-1326, 28-1462 and 28-3318.

E. The director may establish a system or process that does all of the following:

1. Allows for mailing notices of service or other legal documents or records of the department electronically or digitally to a person who consents to receiving these notices, documents or records through a secure electronic or digital system.

2. Enables a person to establish a financial account in the department's database. The account shall be accessible by the person or the person's authorized representative to review statements of all transactions associated with the person's account and to make prepayments or payments for authorized transactions with the department. Notwithstanding any other law, monies in financial accounts established pursuant to this section that remain unexpended for a period of five years or more revert to the Arizona highway user revenue fund and shall be distributed pursuant to section 28-6538.

3. Allows a person to comply with the photograph update and proof of vision test requirements prescribed by section 28-3173 through electronic or digital means that meet the department's standards.

4. Enables the department to accept certificate of title brands from other states or jurisdictions and to record these brands on the appropriate vehicle records.

F. The director, in consultation with the Arizona medical board or the state board of optometry, may do all of the following:

1. Establish medical and vision standards for driver license applicants and examinations.

2. Establish courses of training, training facilities and qualifications and methods of training for driver license examining personnel.

3. Establish procedures for the certification of driver license examining personnel and driver license instructors personnel.

4. Direct research in the field of licensing drivers. The director may accept public or private grants for the research.

5. Conduct research in the field of examination or reexamination of licensing individual drivers with medical or vision problems.

6. Set minimum vision standards for the operation of a motor vehicle in this state.

G. The director may implement electronic or digital versions of driver licenses, nonoperating identification licenses, vehicle registration cards, license plates or other official records of the department.

§ 28-365 Disposition of fees

Except as otherwise provided by statute, the director shall immediately deposit, pursuant to sections 35-146 and 35-147, fees collected under this title in the Arizona highway user revenue fund.

§ 28-366 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.

4. The use of state highways and routes to prevent the abuse and unauthorized use of state highways and routes.

§ 28-367 Public transit

The director shall:

1. Receive, allocate, control and disperse all monies designated for state public transit programs by federal or state law.

2. Pass on projects for construction in cooperation with the United States.

3. Negotiate and enter into contracts on behalf of this state with the United States for the cooperative construction and maintenance of federal aid public transit systems in this state.

4. Enter into agreements on behalf of this state with counties, cities, towns, public transit districts or any other political subdivisions for the improvement or maintenance of public transit systems or for the joint improvement or maintenance of public transit systems.

5. Enter into contracts for the construction of state public transit systems.

§ 28-368 Property acquisition; definition

A. The director may acquire in the name of this state by gift, grant, purchase, lease-purchase, condemnation or any other lawful manner real property or buildings that are necessary, useful or convenient for the use of the department. The director shall not acquire land or buildings by purchase or condemnation without prior approval of the joint committee on capital review established by section 41-1251 and without an appropriation of monies by the legislature for the acquisition.

B. The director may enter into certificate of participation financing arrangements to provide financing or refinancing for real property or buildings that are necessary, useful or convenient for the use of the department.

C. A lease-purchase agreement relating to land or buildings under this section shall provide that:

1. The obligation of this state to make a payment under the agreement is a current expense of the department, is payable exclusively from appropriated monies and is not a general obligation indebtedness of this state or the department.

2. If the legislature fails to appropriate monies or the department fails to allocate the monies for any periodic payment or renewal term of the agreement, the agreement terminates at the end of the current term and this state and the department are relieved of any subsequent obligation under the agreement.

3. The attorney general and the joint committee on capital review shall review and approve the agreement before the lease-purchase agreement takes effect.

D. The attorney general shall review the agreement for compliance with the constitution and laws of this state. If in the attorney general's opinion the agreement is in compliance, the attorney general shall append the attorney general's certification to the agreement and return it to the department. On request by the director, the attorney general may give other opinions relating to the agreement.

E. The joint committee on capital review shall review and approve a lease-purchase agreement under this section before the agreement takes effect.

F. The department may covenant to use its best efforts to budget, obtain, allocate and maintain sufficient appropriated monies to make payments under a lease-purchase agreement. The agreement shall acknowledge that appropriating state monies is a legislative act and is beyond the control of the department or of any other party to the agreement.

G. For the purposes of this section, "certificate of participation financing" means an installment purchase or lease-purchase agreement that is subject to appropriations and that is structured to allow investors to receive a portion of the principal and interest payments made by the department as required by the agreement.

§ 28-369 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. The director may designate:

1. Regular peace officers with like authority of other peace officers of this state or cities and towns of this state.

2. Specialty peace officers whose powers are limited to the enforcement of motor vehicle laws and rules.

B. The director and designated officers, agents and employees may exercise the powers prescribed in subsection A of this section throughout this state.

C. A regular peace officer designated pursuant to subsection A, paragraph 1 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.

D. A peace officer who is designated by the department pursuant to subsection A of this section:

1. Has the primary duties of protecting this state's transportation infrastructure and promoting road safety through the enforcement of state and federal commercial motor carrier laws and rules and of conducting vehicle inspections and investigations of fraud, abuse and misconduct pursuant to state law.

2. May not enforce a violation of chapter 3, articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of this title if the violation is committed by the operator of a noncommercial motor vehicle unless the peace officer determines that a failure to enforce the violation could result in a substantial risk of imminent death or serious physical injury.

E. This section does not preempt the authority and jurisdiction of established agencies and political subdivisions of this state.

F. A mobile port of entry may be operated only within twenty-five road miles of a fixed port of entry in this state unless state or municipal law enforcement agencies request assistance for commercial motor vehicle enforcement to streamline operations or combine enforcement resources for compliance, education or training or to ensure safe, secure and efficient commercial transportation across this state.

G. A peace officer as defined in section 41-1701 or a peace officer designated pursuant to 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, 28-2322, 28-2323 and 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.

§ 28-370 Oaths and acknowledgments; power of attorney; definitions

A. The director and officers, agents and employees of the department who the director designates may administer oaths and acknowledge signatures, without requiring the payment of a fee, in any matter connected with the administration of a law the enforcement of which is vested in the director.

B. Notwithstanding title 14, chapter 5, article 5:

1. The director or an officer, agent or employee of the department who is designated by the director may witness a power of attorney to be used solely in the performance of vehicle title and registration activities.

2. For the purposes of executing a power of attorney in the performance of vehicle title and registration activities, the power of attorney is not required to be:

(a) Notarized if it is witnessed by the director or an officer, agent or employee of the department who is designated by the director.

(b) Notarized if it is involving a total loss vehicle settlement and an insurance company that is licensed pursuant to title 20 or an agent submits it electronically to the department in a manner approved by the director. The power of attorney may be signed electronically and printed on hard copy by using a commercial product that validates a person's identity by using the national institute of standards and technology's identity assurance level 2 or higher authorization without biometrics. A notation directly associated with the electronic signature at or near the signature line on the form shall indicate that the electronic signature was obtained using the national institute of standards and technology's identity assurance level 2 or higher authentication process.

(c) Witnessed if it is notarized.

C. For the purposes of this section:

1. "Agent" includes a motor vehicle dealer or a third party authorized pursuant to this title.

2. "Sign electronically" means to attach to or logically associate with an electronic record an electronic sound, symbol or process that is used by a person to execute or adopt the electronic record with the intent to sign the electronic record without the requirement of a physical touch.

§ 28-371 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, article 2 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.

§ 28-372 Returned checks; dishonored electronic payments; fees

A. The director may assess:

1. The fee specified in section 44-6852 for a check, draft or order that has been dishonored because of insufficient monies, payments stopped or closed accounts.

2. Collection costs.

3. A fee to be determined by the director for each electronic payment that has been dishonored because of insufficient monies, payments stopped or closed accounts.

B. The director shall deposit, pursuant to sections 35-146 and 35-147, fees and costs assessed pursuant to subsection A of this section for dishonored checks, drafts, orders or electronic payments in the state highway fund established by section 28-6991.

§ 28-373 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 once 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.

§ 28-374 Fees and taxes; alternative payment methods; penalties

A. Subject to the limitations of sections 35-142 and 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. Before the revenues are transferred to the director as provided in sections 28-2005 and 28-6533, the collecting officer shall deduct any fee charged or withheld by a company providing the alternative payment method under an agreement with the director or the director may reimburse the collecting officer pursuant to an agreement.

C. For a tax year or reporting period that begins on or after January 1, 1998, the department may require by rule that a person who owed twenty thousand dollars or more for the preceding tax year in taxes imposed by chapter 16, article 1 of this title pay taxes on or before the prescribed payment date in monies that are immediately available to this state on the date of transfer as provided in subsection D of this section. The rule shall be consistent with the cash management policies of the state treasurer.

D. A payment in monies that are immediately available shall be made by electronic funds transfer or any other means that is required by the department, that is approved by the state treasurer and that ensures the availability of the monies to this state on the date of payment.

E. A person who pays taxes as prescribed in subsection C of this section shall furnish to the department evidence as prescribed by the department that shows that payment was remitted on or before the prescribed payment date.

F. A person who fails to make a timely payment in monies that are immediately available is subject to penalties as prescribed in chapter 16 of this title.

§ 28-375 Alternative office hours for motor vehicle division offices

Notwithstanding section 1-302 and to meet the needs of the public, the director may establish hours of operation for motor vehicle division offices other than the office hours for state offices provided in section 38-401.

§ 28-376 Employment of personnel; definition

A. The director may obtain criminal history record information regarding applicants for employment for the purpose of hiring personnel. Before making a final offer of employment, the director shall require the preferred applicants to submit a full set of fingerprints. The director shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. The department of transportation shall not disclose information obtained pursuant to this subsection except to members of the department's staff solely for employment purposes. An applicant shall not be disqualified from employment under this subsection except in accordance with section 13-904, subsection E.

B. The director may obtain consumer report information regarding applicants for employment for the purpose of hiring personnel. Information obtained may only be used to determine the suitability of the applicant for positions involving fiduciary or financial responsibilities, the issuance of driver licenses or other personal identification documents or access to highly confidential information. Consumer report information may be obtained and used only in accordance with the fair credit reporting act (15 United States Code sections 1681 through 1681x). An applicant shall not be disqualified from employment under this subsection unless the consumer report information relied on for the disqualification has a reasonable relationship to the functions of the position.

C. For the purposes of this section, "applicant" means any person who seeks employment as a new hire or any employee of the department who seeks a transfer, a reclassification or a reassignment to a different position.

Article 4 Agreements

§ 28-401 Intergovernmental agreements

A. The department may contract under title 11, chapter 7, article 3 with a state public agency in this state or any other state if the general welfare of this state will be promoted and protected and if not in conflict with any other law.

B. The director shall enter into agreements on behalf of this state with political subdivisions or Indian tribes for the improvement or maintenance of state routes or for the joint improvement or maintenance of state routes.

C. The department may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 with a county with a population of more than two million persons for the construction, design, acquisition and attendant acquisition costs of a county highway bridge to provide direct access to commercial, residential and recreational facilities. The agreement shall:

1. Contain the commitment of the county to pay other monies for the purpose of financing the bridge.

2. State the responsibilities of each party with regard to planning, designing, constructing, owning and maintaining the bridge.

3. Provide that payment for the costs of the bridge shall be made from contributions from the parties to the agreement and other contributors before the use of state transaction privilege tax distributions.

D. The department may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 with a county with a population of more than two million persons for the design, reconstruction and improvement costs of a county highway approaching and traversing a bridge constructed pursuant to subsection C of this section. The agreement shall:

1. Contain the commitment of the county to pay other monies for the purpose of financing the highway improvements.

2. State the responsibilities of each party with regard to planning, designing, constructing, owning and maintaining the highway.

3. Provide that payment for the costs shall be made from contributions from the parties to the agreement and other contributors before the use of state transaction privilege tax distributions.

4. Provide for reimbursement to the state general fund of the amount of highway improvement revenues paid to the highway improvement interest fund or redemption fund under section 28-7656, subsection B on the voluntary conveyance of a majority ownership interest in a sports entertainment facility as prescribed by section 42-5032, subsection B.

5. Contain the representation of the county that it has the legally binding assurance of the owner of a sports entertainment facility as defined in section 42-5032, subsection E, that the owner will reimburse the county for any and all expense the county may incur under subsection D, paragraph 4 of this section and section 42-5032, subsection B.

6. Be submitted to the joint legislative budget committee for its review before the execution of the agreement.

E. The department may enter into agreements with Indian tribes to provide a method or formula to refund taxes paid on exempt motor fuel purchases or use pursuant to this title. For the purposes of this subsection, "motor fuel" has the same meaning prescribed in section 28-5601.

F. The department may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 that obligates the department to indemnify and defend a city, town, county, flood control district, irrigation district or agricultural improvement district or any other political subdivision or governmental agency against claims of liability for injuries, losses or damages incurred in any way as a result of the acts or omissions of the department, including acts, errors, omissions or mistakes of any person for which the department may be liable, and arising out of the construction, operation or maintenance of department projects or facilities or use of department projects or facilities. A city, town, county, flood control district, irrigation district or agricultural improvement district or any other political subdivision or governmental agency may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 that obligates such an entity to indemnify and defend the department against claims of liability for injuries, losses or damages incurred in any way as a result of the acts or omissions of such entity, including acts, errors, omissions or mistakes of any person for which the entity may be liable, and arising out of the construction, operation or maintenance of projects or facilities or use of projects or facilities. Any indemnification pursuant to an intergovernmental agreement must be approved by state risk management in the department of administration.

§ 28-402 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.

§ 28-403 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.

§ 28-404 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.

§ 28-405 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.

§ 28-406 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.

§ 28-407 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 country.

§ 28-408 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.

§ 28-409 Agreements with public and private entities; fund

A. The director shall:

1. Subject to the limitations of section 41-2544, enter into agreements by direct contract with public and private entities or their authorized agents, brokers or subcontractors 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 or their authorized agents, brokers or subcontractors to advertise goods and services.

B. The shared location and advertising agreements expense fund is established consisting of monies received pursuant to agreements entered into pursuant to this section. Monies in the fund are continuously appropriated. The director may use monies deposited in the fund to partially offset the cost incurred by the department in providing a location or advertising. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

C. The director shall not enter into any agreements pursuant to this section without first contacting at least two competitors of the proposed contractor to determine whether terms more beneficial to this state than those offered by the proposed contractor are available. The director shall document the department's efforts to obtain competitive proposals in the contract file.

§ 28-410 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. 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 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 may enter into agreements with agencies or political subdivisions in other states for the sharing or exchange of computer software and web based programs developed by the department if it is determined to be in the best interest of this state. Entities outside of the department that share or exchange the computer software and web based programs pursuant to this subsection shall not distribute, license, lease or sell the computer software or web based program to any other person or agency.

E. The department may enter into agreements with tribes pursuant to subsections B, C and D of this section.

F. The director shall deposit, pursuant to sections 35-146 and 35-147, monies generated pursuant to this section in the state highway fund established by section 28-6991.

§ 28-411 Prompt payment; progress payment; consultants and contractors; subconsultants and subcontractors; design professional

A. The department shall make progress payments pursuant to the terms of an agreement with a consultant or contractor on the basis of an invoice for work already performed. All progress payments shall be paid on or before the twenty-first day after the date the department receives the invoice unless the department does not approve and certify the invoice pursuant to subsection B of this section.

B. Any invoice from a consultant or contractor for progress payments shall be deemed approved and certified by the department unless within seven days from the date the department receives the invoice the department sends the consultant or contractor written notice by first class mail or by electronic means of those items that the department does not approve and certify under the terms of the agreement.

C. On or before the seventh day after the date the department makes a progress payment, if the consultant or contractor contracted with subconsultants or subcontractors to perform the work for which the department made the progress payment, the consultant or contractor shall pay the subconsultants or subcontractors for the work performed to the extent of each subconsultant's or subcontractor's contractual interest in the progress payment. If any subconsultant or subcontractor contests the amount paid by a consultant or contractor from a progress payment made under subsection A of this section, the subconsultant or subcontractor shall notify the department in writing within thirty days after receiving the payment from the consultant or contractor. This subsection does not apply if the contract between the consultant or contractor and the subconsultant or subcontractor expressly provides that the prompt payment provisions of this subsection do not apply to the agreement between the consultant or contractor and the subconsultant or subcontractor.

D. If a consultant or contractor fails to pay a subconsultant or subcontractor within seven days of receiving a progress payment from the department, the consultant or contractor shall pay the subconsultant or subcontractor interest on the unpaid balance, beginning on the eighth day at the rate of one percent per month or fraction of a month. This subsection does not apply if the contract between the consultant or contractor and the subconsultant or subcontractor expressly provides that the prompt payment provisions of this subsection do not apply to the agreement between the consultant or contractor and the subconsultant or subcontractor.

E. A subconsultant or subcontractor may submit a written request to the department asking the department to notify the subconsultant or subcontractor of each subsequent progress payment made to the consultant or contractor. If the department receives a written request under this subsection, the department shall send the requesting party a written notice by first class mail of each subsequent progress payment within five days of making the progress payment.

F. Agreements with the department for consultant or contractor services do not alter the rights of any consultant or contractor to receive prompt and timely payment as provided under this section.

G. Subject to the requirements of this section, the department shall pay the agreed or reasonable value of all labor, materials, work or services furnished, installed or performed by a design professional pursuant to a limited notice to proceed from the department's authorized agent before the execution of a contract or contract modification applicable to the labor, materials, work or services. The unit prices, contract sum, hourly rates or other cost or pricing formula of the contract or contract modification applicable to the labor, materials, work or services is the fair and reasonable cost for purposes of this section unless the department and its design professional otherwise agree in writing. If the parties fail to successfully negotiate and sign a contract or contract modification, the design professional shall be paid for costs incurred pursuant to the limited notice to proceed and subject to the department's cost allowability guidelines. For the purposes of this subsection, "design professional" means an individual or firm registered pursuant to title 32, chapter 1, article 1, to practice architecture, engineering, geology, landscape architecture or land surveying or any combination of those professions and persons employed by the registered individual or firm.

H. To the extent that this section conflicts with section 28-6924, section 28-6924 controls any agreement between the department and a contractor for highway construction projects.

§ 28-412 Agreements with other jurisdictions; exchange of records and reciprocal action for toll enforcement

The director may enter into agreements with other jurisdictions on behalf of this state relating to the following:

1. The exchange of motor vehicle record information for toll facility enforcement purposes.

2. In accordance with the administrative procedures of this state and the other jurisdiction, refusing, suspending or revoking a vehicle registration or suspending or revoking a driver license if a toll operator in either jurisdiction reports to the other jurisdiction receipt of a final decision, order or judgment against the registrant or licensee of liability to the toll operator for unpaid tolls and related penalties and amounts until evidence of satisfaction of the liability is received.

§ 28-413 Reciprocal driver license agreement; foreign countries; expedited license for foreign military members; applicability

A. The department may waive the requirements for a written examination and the driving examination required pursuant to section 28-3164 for an operator of a motor vehicle who holds a valid driver license issued by a foreign country in which the operator previously resided and who applies for an initial driver license in this state as an original applicant, if all of the following conditions are met:

1. The director determines that the standards of the foreign country for licensing operators of motor vehicles are substantially similar to those of this state.

2. The foreign country extends the same reciprocal driver license application privileges to persons licensed in this state.

3. The director and the foreign country have exchanged letters or other documentation to confirm the reciprocal extension of privileges to operate motor vehicles.

4. The original applicant under this section complies with the mandatory motor vehicle insurance provisions of chapter 9, articles 1 and 4 of this title.

B. A person who holds a valid driver license that meets the requirements of subsection A of this section may apply to the department for a class D, G or M license. The person applying for the original license shall present the foreign country driver license to the department on successful application.

C. The department shall publish on its public website a current list of foreign countries for which reciprocal operating privileges have been extended and withdrawn.

D. The department shall issue a class D or M license to and shall waive the written examination and the driving examination required pursuant to section 28-3164 for an active duty member of the armed forces of a foreign country who is stationed in this state if all of the following conditions are met:

1. The foreign country in which the person is serving as an active duty member of the armed forces is a member of the North Atlantic treaty organization that recognizes reciprocal driver permits or licenses.

2. The active duty member is at least eighteen years of age and under seventy-six years of age.

3. If the active duty member is not a citizen of the United States, the active duty member presents to the department documentation issued by the United States agency responsible for citizenship and immigration authorizing the active duty member to be in the United States.

4. The active duty member has military orders to be stationed within this state.

E. A license issued pursuant to subsection D of this section expires on the same date as the expiration of the document issued by the United States agency responsible for citizenship and immigration authorizing the active duty member of the armed forces to be in the United States.

F. This section does not apply to commercial driver licensing.

Article 5 Records

§ 28-440 Definitions

In this article, unless the context otherwise requires:

1. "Bulk records" means multiple records that are retrieved collectively from the department's database as a result of a single request. Bulk records does not include retrieving one record at a time from a single request.

2. "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.

3. "Electronic signature" means an electronic sound, symbol or process attached to or logically associated with a document and executed or adopted by a person with the intent to sign the document.

4. "Express consent" means consent in writing, including consent that is conveyed electronically and that bears an electronic signature.

5. "Highly restricted personal information" means an individual's photograph or image, social security number and medical or disability information.

6. "Insurance support organization" has the same meaning prescribed in section 20-2102.

7. "Medical or disability information" means a restriction or medical code placed on a person's motor vehicle record pursuant to section 28-3159, subsection A, paragraph 1 or section 28-3167.

8. "Motor vehicle record" means any record that pertains to a driver license or permit, vehicle registration, vehicle title or identification document issued by the department or its duly authorized third parties, agents or contractors that are authorized to issue any of those documents.

9. "Opt in" means a customer of the department has provided express consent to the department to allow the release of the customer's personal information, including highly restricted personal information, in a form prescribed by the director.

10. "Original":

(a) Of a record means the record 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.

11. "Personal information" means information that identifies an individual and that includes an individual's photograph, social security number, driver identification number, name, address, telephone number and medical or disability information. Personal information does not include an individual's five-digit zip code and information about vehicular accidents, driving violations and driver status.

12. "Photographs" includes still photographs, x-ray films, videotapes, motion pictures and digitized electronic images.

13. "Records" has the same meaning prescribed in section 41-151.

14. "Vehicle history report" means a report that is developed to track the registration and total loss history of a particular vehicle and includes odometer readings and brand codes, title brand codes and any related vehicle data. Vehicle history report does not include names and addresses.

§ 28-441 Duplication of records

A. The director may cause any records kept by the department to be duplicated.

B. Except as otherwise provided by law, duplicates are admissible in evidence in courts pursuant to court rules.

§ 28-442 Records; evidence

A. A certified duplicate is deemed an original for all purposes and is admissible in evidence without further foundation in all courts or administrative agencies.

B. The display by a person of evidence on a wireless communication device pursuant to this title does not constitute consent for law enforcement to access other content of the wireless communication device.

§ 28-443 Records; management; destruction

A. The director shall establish and maintain an active, continuing program for the economical and efficient management of the department's records pursuant to section 41-151.14.

B. The director shall authorize the destruction of records pursuant to sections 41-151.15 and 41-151.19.

§ 28-444 Computer storage; evidence

A. The director may cause the information contained on an original or duplicate made pursuant to this article to be placed on computer storage devices, but the original or the duplicate shall be maintained by the department for as long as required by law or the director deems necessary after which time the records may be disposed of as provided in this article. Signatures on records need not be placed on the computer storage devices.

B. A duplicate of the information placed on computer storage devices 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 certified duplicate of the information contained in the computer storage devices of the department of transportation, motor vehicle division, in accordance with Arizona Revised Statutes section 28-444.

§ 28-445 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.

§ 28-446 Fees for copies; 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 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.

4. A law enforcement agency in a foreign country.

5. A toll operator as defined in section 28-7751.

C. The department shall furnish either of the following to any person on payment of a fee of five dollars:

1. Certified copies of public records designated pursuant to section 28-447.

2. Vehicle title history information.

D. 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.

E. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected under this section in the Arizona highway user revenue fund.

§ 28-447 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 or a registered nurse practitioner as defined in section 28-3005, except as provided by section 28-455 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 28-448 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.

§ 28-448 Notice of address or name change; address update; civil traffic violation; definition

A. If a person's name or address changes after the person applies for or receives a driver license or nonoperating identification license or 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, in person or by approved electronic means and may notify the department 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.

E. For the purposes of this section, "address" means a legal street address, a post office box or an electronic or digital address that is provided by a person who consents to receive services of notice or other legal documents or records of the department electronically or digitally pursuant to section 28-364.

§ 28-449 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 28-447 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 or electronically.

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.

§ 28-451 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.

§ 28-453 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.

§ 28-454 Records maintained by department of transportation; redaction; definitions

A. Notwithstanding sections 28-447 and 28-455, an eligible person may request that persons be prohibited from accessing the eligible person's identifying information, including any of the following:

1. That person's documents, contained in any record maintained by the department.

2. If the person is a public official, the address of a property held in trust by the public official.

B. An eligible person may request this action by filing an affidavit that states all of the following on an application form developed by the administrative office of the courts in agreement with an association of counties, an organization of peace officers and the department:

1. The person's full legal name and residential address.

2. Unless the person is the spouse of a peace officer or the spouse or minor child of a deceased peace officer or the person is a former public official or former judge, the position the person currently holds and a description of the person's duties, except that an eligible person who is protected under an order of protection or injunction against harassment shall attach a copy of the order of protection or injunction against harassment.

3. The reasons the person reasonably believes that the person's life or safety or that of another person is in danger and that redacting the identifying information 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 multiple filings, an eligible person who is a peace officer, spouse of a peace officer, spouse or minor child of a deceased peace officer, prosecutor, code enforcement officer, corrections or detention officer, corrections support staff member or law enforcement support staff member shall deliver the affidavit to the peace officer's commanding officer, or to the head of the prosecuting, code enforcement, law enforcement, corrections or detention agency, as applicable, or that person's designee, 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, or the head of the prosecuting, code enforcement, law enforcement, corrections or detention agency, as applicable, or that person's designee, shall not file affidavits more often than quarterly.

D. On receipt of an affidavit or affidavits, the presiding judge of the superior court shall file with the clerk of the superior court a petition on behalf of all requesting affiants. 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 affiant 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. Not more than one hundred fifty days after the date the department receives the court order, the department shall redact the identifying information of the affiants listed in the court order from the public records of the department. The identifying information shall not be disclosed and is 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.

H. On motion to the court, if the presiding judge of the superior court concludes that identifying information has been sealed in error or that the cause for the original affidavit no longer exists, the presiding judge may vacate the court order prohibiting public access to the identifying information.

I. Notwithstanding sections 28-447 and 28-455, the department shall not release a photograph of a peace officer if the peace officer has made a request as prescribed in this section that persons be prohibited from accessing the peace officer's identifying information in any record maintained by the department.

J. This section does not prohibit the use of a peace officer's photograph that is either:

1. Used by a law enforcement agency to assist a person who has a complaint against an officer to identify the officer.

2. Obtained from a source other than the department.

K. For the purposes of this section:

1. "Code enforcement officer" means a person who is employed by a state or local government and whose duties include performing field inspections of buildings, structures or property to ensure compliance with and enforce national, state and local laws, ordinances and codes.

2. "Commissioner" means a commissioner of the superior court or municipal court.

3. "Corrections support staff member" means an adult or juvenile corrections employee who has direct contact with inmates.

4. "Election officer" means a state, county or municipal employee who holds an election officer's certificate issued pursuant to section 16-407.

5. "Eligible person" means a health professional, election officer, public official, former public official, peace officer, spouse of a peace officer, spouse or minor child of a deceased public officer, justice, judge or former judge, commissioner, hearing officer, public defender, prosecutor, code enforcement officer, adult or juvenile corrections officer, corrections support staff member, probation officer, member of the commission on appellate court appointments, member of the board of executive clemency, law enforcement support staff member, employee of the department of child safety or employee of adult protective services who has direct contact with families in the course of employment, national guard member who is acting in support of a law enforcement agency, person who is protected under an order of protection or injunction against harassment or firefighter who is assigned to the Arizona counter terrorism information center in the department of public safety.

6. "Former public official" means a person who was duly elected or appointed to Congress, the legislature or a statewide office, who ceased serving in that capacity and who was the victim of a dangerous offense as defined in section 13-105 while in office.

7. "Health professional" means an individual who is licensed pursuant to title 32, chapter 13, 15, 17, 19.1, 25 or 33.

8. "Hearing officer" means a hearing officer who is appointed pursuant to section 28-1553.

9. "Judge" means a judge or former judge of the United States district court, the United States court of appeals, the United States magistrate court, the United States bankruptcy court, the United States immigration court, the Arizona court of appeals, the superior court or a municipal court.

10. "Justice" means a justice of the United States supreme court or the Arizona supreme court or a justice of the peace.

11. "Law enforcement support staff member" means a person who serves in the role of an investigator or prosecutorial assistant in an agency that investigates or prosecutes crimes, who is integral to the investigation or prosecution of crimes and whose name or identity will be revealed in the course of public proceedings.

12. "Peace officer":

(a) Has the same meaning prescribed in section 1-215.

(b) Includes a federal law enforcement officer or agent who resides in this state and who has the power to make arrests pursuant to federal law.

13. "Prosecutor" means a current or former United States attorney, county attorney, municipal prosecutor or attorney general and includes a current or former assistant or deputy United States attorney, county attorney, municipal prosecutor or attorney general.

14. "Public official" means a person who is duly elected or appointed to Congress, the legislature, a statewide office or a county, city or town office.

§ 28-455 Release of personal information; fees

A. In accordance with section 28-458 and the driver's privacy protection act of 1994 (18 United States Code sections 2721 through 2725) and notwithstanding section 28-447, the department shall not knowingly disclose or otherwise make available to any person:

1. Personal information obtained by the department in connection with a motor vehicle record except as otherwise provided in this section.

2. Highly restricted personal information obtained by the department in connection with a motor vehicle record without the express consent of the person to whom the information applies except for uses allowed in subsection C, paragraphs 1, 4, 6 and 9 of this section. This paragraph does not affect the use of organ donation information on an individual's driver license or affect the administration of organ donation in this state.

B. The department shall disclose personal information for use in connection with the following matters:

1. Motor vehicle or driver safety and theft.

2. Motor vehicle emissions.

3. Motor vehicle product alterations, recalls or advisories.

4. Performance monitoring of motor vehicles and dealers by motor vehicle manufacturers.

5. Removal of nonowner records from the original owner records of motor vehicle manufacturers to carry out the purposes of titles I and IV of the anti car theft act of 1992 (18 United States Code sections 2311 through 2322), the automobile information disclosure act (15 United States Code sections 1231, 1232 and 1233), the clean air act of 1963 (42 United States Code sections 7401 through 7671q) and 49 United States Code chapters 301, 305 and 321 through 331.

C. Subject to subsection A of this section, the department may disclose personal information as follows:

1. For use by any government agency, including any court or law enforcement agency, in carrying out its functions or any private person or entity acting on behalf of a government agency in carrying out its functions.

2. For use in connection with matters of:

(a) Performance monitoring of motor vehicles, motor vehicle parts and dealers.

(b) Motor vehicle market research activities, including survey research.

(c) Removal of nonowner records from the original owner records of motor vehicle manufacturers.

3. For use in the normal course of business by a legitimate business or its agents, employees or contractors, but only:

(a) To verify the accuracy of personal information submitted by the individual to the business or its agents, employees or contractors.

(b) If the information submitted is not correct or is no longer correct, to obtain the correct information for the purpose of preventing fraud by, pursuing legal remedies against or recovering on a debt or security interest against the individual.

4. For use by an attorney licensed to practice law or by a licensed private investigator in connection with any civil, criminal, administrative or arbitration proceeding in any court or government agency or before any self-regulatory body, including the service of process, investigation in anticipation of litigation and the execution or enforcement of judgments and orders, or pursuant to a court order.

5. For use in research activities and for use in producing statistical reports if the personal information is not published, redisclosed or used to contact individuals.

6. For use by any insurer that writes automobile liability or motor vehicle liability policies and that is under the jurisdiction of the department of insurance and financial institutions or insurance support organization or by a self-insured entity or its agents, employees or contractors in connection with claims investigation activities, antifraud activities, rating or underwriting.

7. For use in providing notice to the owners of towed or impounded vehicles.

8. For use by any licensed private investigative agency or licensed security service for any purpose allowed under this section.

9. For use by an employer or its agent or insurer to obtain or verify information relating to a holder of a commercial driver license that is required under 49 United States Code sections 31301 through 31317.

10. For use by a toll operator as defined in section 28-7751 in connection with the operation of a toll facility or the enforcement of tolls, administrative charges and penalties as defined in section 28-7751.

11. For any other use in response to requests for individual motor vehicle records if the state has obtained the express consent of the person to whom the personal information pertains.

12. For use by any requester if the requester demonstrates it has obtained the written consent of the individual to whom the information pertains.

13. For any other use that is specifically authorized by law and that is related to the operation of a motor vehicle or public safety, including the following:

(a) Use by a financial institution or enterprise under the jurisdiction of the department of insurance and financial institutions or a federal monetary authority.

(b) Use by a motor vehicle dealer who is licensed and bonded by the department or a state organization of licensed and bonded motor vehicle dealers.

(c) Use by a person who is involved in an accident or 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.

(d) Use by a person applying for a bonded title if all of the following conditions exist:

(i) 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.

(ii) 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.

(iii) The requester provides a verification of a vehicle inspection that was performed by an authorized department employee or agent.

(e) Use by an operator of a self-service storage facility who alleges both of the following:

(i) That the vehicle on which the operator is requesting the record is in the operator's possession.

(ii) That the record is requested to allow the operator to notify the registered owner and any lienholders of record of the operator's intent to foreclose its lien and to sell the vehicle.

(f) For any other use as determined by the director and established by rule.

D. The department may establish and carry out procedures under which the department, on receiving a request for personal information that does not fall within one of the exceptions prescribed in subsection B or C of this section, may mail a copy of the request to the individual about whom the information was requested. The mailing shall inform the individual of the request and contain a statement that the information will not be released unless the individual waives the individual's right to privacy under this section.

E. In addition to the permissible uses prescribed in subsection C of this section, the department may disclose its motor vehicle records information, including personal information, as a bulk record only under any of the following conditions:

1. If the director determines either of the following:

(a) The sale or release of the record is necessary for the public health or safety.

(b) The use is for general research or general statistical purposes that do not provide specific factors from a record.

2. For the release of motor vehicle title and motor vehicle registration information, vehicle identification numbers, title brands, odometer readings and brands and title lien information to a requester if the requester is in the business of preparing vehicle history reports and the information is used to develop a vehicle history report.

F. The department shall not sell records with personal identifying information for a commercial purpose except to a person authorized to receive the records under the permissible use provisions of this section and the driver's privacy protection act of 1994 (18 United States Code sections 2721 through 2725).

G. Driver histories shall not be disclosed under subsection E of this section.

H. Except as provided in subsection I of this section and section 28-446, subsection B, records provided pursuant to subsections B and C of this section are subject to the fees prescribed in section 28-446, subsections A and C.

I. For records searched and provided for the purposes described in subsection E of this section, the director:

1. Shall charge a search fee that is a minimum of $600 per million records searched.

2. Shall charge a records fee that is a minimum of $30 per thousand records provided.

3. May prorate the charge for fractional quantities that are searched or provided.

J. Records requests that require a database search for specific criteria within a record are subject to a search fee. In addition to this search fee, each motor vehicle record provided to a records requester as a result of a criteria search incurs record fees in accordance with subsection H of this section.

§ 28-456 Subsequent sale or disclosure of record information by authorized recipient

A. Except as provided in subsection B of this section, an authorized recipient of personal information may resell or redisclose the information only for a use permitted under section 28-455, subsection B or C.

B. An authorized recipient under section 28-455, subsection C, paragraph 11 may resell or redisclose personal information for any lawful purpose.

C. Any authorized recipient, except a recipient under section 28-455, subsection C, paragraph 11, that resells or rediscloses personal information covered by this section shall keep for a period of five years records identifying each person or entity that receives information and the permitted purpose for which the information will be used and shall make the records available to the department on request.

§ 28-457 Unlawful acts; classification; civil actions

A. The department, including department employees, shall not knowingly obtain or disclose personal information or highly restricted personal information except as authorized by law.

B. A person shall not knowingly obtain or disclose personal information or highly restrictive personal information from a motor vehicle record for any use not permitted under section 28-455, subsection B or C.

C. A person shall not make a false representation to obtain any personal information or highly restrictive personal information from an individual's motor vehicle record.

D. A person who violates this section is guilty of a class 1 misdemeanor.

E. In addition to any criminal penalties or sanctions for violations of this section, civil actions may also be brought in a United States district court pursuant to 18 United States Code section 2724.

§ 28-458 Motor vehicle records release; department review panel

The director shall select a department review panel to do all of the following:

1. Meet as necessary to review applications for the release of motor vehicle records information.

2. Verify the accuracy of an applicant’s information that is required by the director.

3. Based on the review and verification of the application and information required by the director, determine the applicant’s eligibility to receive motor vehicle records information for purposes authorized by law.

§ 28-459 Voluntary notation; customer records; law enforcement disclosure; definitions

A. A person with a driver license or nonoperating identification license issued by the department may request that the department note in the department’s customer record that the person may need a communication accommodation.

B. The owner of a vehicle registered in this state may request that the department note in the department’s vehicle record that there may be an occupant of the vehicle that may need a communication accommodation.

C. The request shall be made in a method determined by the department.

D. The department shall establish procedures to make the notations available only to law enforcement agencies.

E. For the purposes of this section:

1. "Communication accommodation" means that a person has a disability that can impair communication and the person may require an accommodation.

2. "Disability that can impair communication" means a condition that can impair a person's ability to receive, send, process or comprehend concepts of verbal or nonverbal communication or graphic symbols.

Article 6 State Motor Vehicle Fleet

§ 28-471 Definitions

In this article, unless the context otherwise requires:

1. "Agency":

(a) Means a department, board, office, authority, commission or other governmental budget unit of this state, including a governmental budget unit of this state that is under direct administrative control of an elected official.

(b) Does not include the legislative or judicial branches of state government.

2. "Fleet operation services" means any of the following that the department provides to an agency:

(a) Motor vehicles that are owned, leased or rented by this state and that the department provides for transporting state officers and employees.

(b) Fuel services for motor vehicles that are owned, leased or rented by this state.

(c) Maintenance services for motor vehicles that are owned, leased or rented by this state.

(d) Administrative services related to fleet management.

3. "New motor vehicle" means an original equipment manufactured vehicle, a converted original equipment manufactured vehicle or an original equipment manufactured vehicle that will be converted.

§ 28-472 Fleet operation services; records; rules; vehicle replacement rate; participating agencies; coordinator; public service announcements; annual report

A. The director shall operate the state motor vehicle fleet for the purpose of providing fleet operation services to agencies. The director shall make fleet operation services available to an agency on the request of the chosen representative for that agency.

B. The director is responsible for administering the state motor vehicle fleet, including:

1. Procuring motor vehicles for the state motor vehicle fleet.

2. Notwithstanding title 41, chapter 23, article 8, administering the surplus and sale of motor vehicles in the state motor vehicle fleet.

C. The director shall provide for detailed cost, operation, maintenance, mileage and custody records for each state-owned motor vehicle.

D. The director may adopt rules necessary to administer this article.

E. The department shall recover all costs for fleet operation services that are provided to an agency. Each agency shall pay from available monies the cost of fleet operation services received from the department at a rate determined by the director, including a separate vehicle replacement rate for motor vehicle replacements. The director shall deposit, pursuant to sections 35-146 and 35-147, monies received for fleet operation services in the state fleet operations fund established by section 28-475. The director shall deposit, pursuant to sections 35-146 and 35-147, monies received to pay the vehicle replacement rate in the state vehicle replacement fund established by section 28-476.

F. The following agencies are excluded from participation in the state motor vehicle fleet:

1. The department of public safety.

2. The department of economic security.

3. The state department of corrections.

4. Universities and community colleges.

5. The cotton research and protection council.

6. The Arizona commerce authority.

7. The department of transportation.

G. The director shall appoint a state motor vehicle fleet coordinator.

H. An agency may not purchase, lease or rent a motor vehicle unless the agency is excluded from participation in the state motor vehicle fleet by subsection F of this section. The director may withhold registration for any motor vehicle that is purchased, leased or rented in violation of this subsection.

I. Notwithstanding subsection H of this section, an agency that administers a separate account pursuant to section 28-476, subsection C shall control the purchase, lease or rental of motor vehicles. Vehicles purchased, leased or rented under this subsection shall be used by the agency only for the agency's purposes.

J. An agency listed in subsection F of this section may elect to participate in the state motor vehicle fleet by executing an interagency service agreement between the agency and the department.

K. A governmental budget unit of this state that is not an agency may elect to participate in the state motor vehicle fleet by entering into an interagency service agreement with the department.

L. An agency, including an agency listed in subsection F of this section, may accept compensation for placing public service announcements on state-owned motor vehicles, and monies received shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. The agency director shall determine the appropriateness of the announcements, may exempt any motor vehicles that are not suitable for advertising and may contract with private parties to design and place the announcements.

M. On or before October 1 of each year, the department shall submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report that accounts for all monies deposited in the state fleet operations fund established by section 28-475 and the state vehicle replacement fund established by section 28-476, including any monies allocated to separate agency accounts. The report shall also include the number of motor vehicles that were replaced in the prior fiscal year, the number of motor vehicles at each agency, the replacement life cycle for each motor vehicle and the number of motor vehicles the department identifies as not requiring replacement.

§ 28-473 Agency requests for motor vehicles; neighborhood electric vehicles

A. Before making a new motor vehicle purchase, the department shall consider purchasing a neighborhood electric vehicle.

B. If an agency requests a motor vehicle from the state motor vehicle fleet, the agency shall be assigned a neighborhood electric vehicle unless the agency demonstrates to the department that the neighborhood electric vehicle will not meet the needs of the agency because the new motor vehicle will be doing any of the following:

1. Operating on a street with a posted speed limit that exceeds thirty-five miles per hour.

2. Carrying a load that exceeds one thousand five hundred pounds.

3. Transporting more than six persons.

§ 28-474 Statewide alternative fuels plan; coordinator; energy conservation; alternative and clean burning fuels requirements

A. The state motor vehicle fleet coordinator shall develop, implement, document, monitor and modify as necessary a statewide alternative fuels plan in consultation with all agencies that are subject to the alternative fuel and clean burning fuel requirements prescribed in this section or any other law. The coordinator shall approve all motor vehicle acquisitions pursuant to this section, except for acquisitions by community college districts.

B. Motor vehicles purchased for the state motor vehicle fleet shall comply with the United States environmental protection agency standards for low-emission vehicles pursuant to 40 Code of Federal Regulations section 88.104-94 or 88.105-94.

C. The coordinator shall identify specific motor vehicle models within each vehicle class that meet the demands of each agency and that demonstrate a high degree of fuel economy.

D. Subsections B and C of this section do not apply to the purchase or lease of the following:

1. A motor vehicle to be used primarily for criminal law enforcement.

2. A motorcycle.

3. An all-terrain vehicle.

4. An ambulance.

5. A fire truck, a fire engine or any other fire-suppression apparatus.

E. An agency that is excluded from participation in the state motor vehicle fleet pursuant to section 28-472, subsection F shall develop and implement a plan for alternative fuels and clean burning fuels and fuel economy for the agency's motor vehicle fleet that is substantially similar to the standards set forth in this section. The agency shall submit the plan to the coordinator for review.

F. All agencies, including those listed in section 28-472, subsection F, shall comply with the statewide alternative fuels plan that is developed and implemented by the coordinator pursuant to subsection A of this section.

G. The department may not register a motor vehicle that is operated by an agency listed in section 28-472, subsection F if the agency is not in compliance with this section.

§ 28-475 State fleet operations fund; exemption

A. The state fleet operations fund is established consisting of monies received from agencies to pay the costs of fleet operation services pursuant to section 28-472 and from legislative appropriations.

B. The department shall administer the fund. Monies in the fund are subject to legislative appropriation and are 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.

§ 28-476 State vehicle replacement fund; exemption

A. The state vehicle replacement fund is established consisting of payments received from agencies for the vehicle replacement rate pursuant to section 28-472, subsection E, proceeds from the sale of surplus motor vehicles and legislative appropriations. The department may separately account for each agency that pays a vehicle replacement rate pursuant to section 28-472, subsection E.

B. The department shall administer the fund. Monies in the fund are subject to legislative appropriation and are 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.

C. Notwithstanding subsection B of this section, if an agency's separate account includes monies that are restricted in purpose by state or federal law, the agency shall administer the separate account.

Article 7 Transportation Planning

§ 28-501 Definition of division

In this article, unless the context otherwise requires, "division" means the transportation planning division established by section 28-332, subsection C.

§ 28-502 Transportation planning; uniform practices; requirements

A. Transportation planning in this state shall be undertaken in accordance with this article and any applicable federal laws.

B. The division shall develop for submission to the board, pursuant to section 28-304, uniform transportation planning practices to be used by the department. These practices shall be used in the conduct of all studies or analyses relating to any transportation system improvement to be included in the plan developed pursuant to section 28-506.

§ 28-503 Performance based planning and programming

A. The division shall develop for submission to the board performance based planning and programming processes for use by the department.

B. The division shall consult with local, regional and tribal transportation agencies before developing the processes. The division shall encourage and assist tribal transportation agencies that want to adopt these performance based planning and programming processes.

C. The performance based planning and programming processes shall provide a means of evaluating the current performance of the plan developed pursuant to section 28-506 and the five year transportation facilities construction program developed pursuant to section 28-6951 and for evaluating and prioritizing proposed changes to the plan and program.

D. In compliance with policies established pursuant to section 28-304, the department and the board shall use the performance based planning and programming processes in determining future allocations of state and federal financial resources among the department's major program categories.

E. The performance based planning and programming processes shall be used to monitor and evaluate the performance outcomes of transportation planning and programming decisions made by the department and the board.

F. The performance based processes shall:

1. Be periodically reviewed and updated as conditions and system requirements change.

2. Include, at a minimum, all of the following:

(a) Uniform transportation system performance measures established pursuant to section 28-504 and the routine collection and reporting of adopted performance measures.

(b) Uniform transportation system performance factors for evaluating existing and potential projects and services established pursuant to section 28-505.

(c) Weights to be applied to the performance factors identified pursuant to subdivision (b) in evaluating and prioritizing proposed changes to the system. These performance factor weights shall consider and recognize local and regional differences in transportation system performance expectations and shall be used in all state transportation planning.

(d) Systematic forecasts of the anticipated performance outcomes of proposed expenditures.

(e) Systematic periodic reporting and certification of system performance.

3. Integrate planning, programming and reporting processes to ensure a sustainable and reliable highway system.

§ 28-504 Transportation system performance measures; data collection and reporting; methodologies

A. The division shall develop for presentation to the board standardized transportation system performance measures. In addition, the division shall identify the appropriate units of measurement and the processes for determining and reporting the performance measures. The goal of the performance measures is to determine the extent to which the transportation system is moving people, goods and services in relation to the cost of system preservation, maintenance and expansion.

B. The standardized transportation system performance measures shall include at least all of the following:

1. The estimated number of individuals transported.

2. The estimated amount, by weight or volume, of freight transported.

3. The number of miles traveled.

4. The number of vehicles and the estimated capacity of those vehicles.

5. The estimated cost per individual moved per mile.

C. These performance measures shall serve as the basis for monitoring and reporting on the performance outcomes of the state's highway system.

D. The division shall develop transportation data collection and reporting methodologies for system performance measures and the major components of the long-range plan. The division shall consult with local, regional and tribal transportation agencies before developing the methodologies.

E. The department shall collect standardized transportation data for all existing components and any proposed projects under consideration for inclusion in the plan developed pursuant to section 28-506 and the five year transportation facilities construction program developed pursuant to section 28-6951.

§ 28-505 Transportation system performance factors; weights

A. The division shall develop for presentation to the board standard transportation system performance factors that at least include all of the following variables:

1. System preservation.

2. Congestion relief.

3. Accessibility.

4. Integration and connectivity with other modes.

5. Economic benefits.

6. Safety.

7. Air quality and other environmental impacts.

8. Cost-effectiveness of a project or service.

9. Operational efficiency.

10. Project readiness.

B. The division shall develop for presentation to the board transportation system performance factor weights.

C. The performance factors and weights established pursuant to this section shall be used by the department and the board to:

1. Select projects and services in the five year transportation facilities construction program pursuant to chapter 20, article 3 of this title and the long-range statewide transportation plan pursuant to section 28-307.

2. Allocate state and federal financial resources among the department's major program categories.

§ 28-506 Long-range statewide transportation plan; division duties

A. The division shall prepare for presentation to the board a long-range statewide transportation plan. The division shall develop the plan under the board's direction in accordance with the following:

1. The plan shall include all anticipated critical statewide highway system needs for the next twenty years.

2. The plan shall be developed using the planning practices and the performance based planning processes adopted by the board pursuant to section 28-304.

3. To the extent practicable, the plan shall reflect local general land use plans and county comprehensive land use plans.

4. In developing the plan, the division shall consider any information developed as a result of federally mandated planning processes.

5. The plan shall be developed in addition to any federally mandated planning requirements.

6. The division shall develop the plan every five years for review and approval by the board as required by section 28-307.

7. All dollar amounts in the plan shall be expressed in constant dollars denominated in the year of adoption by the board.

8. The division shall annually identify any projects or services that should be considered for inclusion in the next plan.

B. The plan shall include:

1. All projects included in the plan adopted pursuant to section 28-307 and all projects included in the five year transportation facilities construction program developed pursuant to section 28-6951. These projects shall be specifically identified pursuant to subsections C and D of this section.

2. In addition to the projects identified in paragraph 1 of this subsection, lump sum cost estimates for all other components of the statewide highway system pursuant to subsection E of this section.

C. For each statewide transportation project included in the plan, the division shall determine and include in the plan the following:

1. A detailed description of the project, including the location of the project.

2. Estimates of any revenues directly attributable to the project, including passenger charges, tolls and user charges.

3. The anticipated performance outcomes associated with the project.

D. For each transportation capital project included in the plan, the division shall determine separately the cost estimates for each of the following:

1. Right-of-way acquisition and preparation.

2. Project design, planning and engineering.

3. Project construction.

4. Any other related project costs.

E. The division shall develop and include in the plan separate cost estimates for the following:

1. Optimal long-term system preservation of each major transportation system component.

2. Appropriate comprehensive system management.

3. Appropriate system maintenance and operations.

F. To the extent the division is not able to determine any information required in subsection C or D of this section, the division shall develop a reasonable estimate in lieu of the actual information.

G. The division shall develop an estimate of projected revenues for the twenty year period of the plan based on:

1. Existing and enacted future revenue rates and schedules.

2. Reasonable expected future changes in revenue rates and schedules.

H. If the revenues estimated pursuant to subsection G, paragraph 1 or 2 of this section are less than the estimated cost of the plan, the division shall identify the specific portions of the plan that could be completed with the revenues estimated pursuant to subsection G, paragraphs 1 and 2 of this section.

I. For the plan, and the portions of the plan determined pursuant to subsection H of this section, the division shall identify the years in which projects in the plan would likely be initiated and completed.

J. The division shall estimate the anticipated performance outcomes of:

1. The plan as developed by the division.

2. The portion of the plan that could be completed with the revenue estimate determined pursuant to subsection G, paragraph 1 of this section.

3. The portion of the plan that could be completed with the revenue estimate determined pursuant to subsection G, paragraph 2 of this section.

K. The division shall maintain information developed concerning the projects and costs identified in the course of developing the plan in a geographically oriented database established and maintained in accordance with section 28-507.

§ 28-507 Transportation system database

A. In cooperation with local, regional and tribal agencies, the division shall develop and maintain a geographically oriented database of the existing and planned components of the statewide transportation system. The database shall be complete and operational on or before June 30, 2004.

B. The database shall include information concerning all projects considered for inclusion in the statewide transportation plan developed pursuant to section 28-506.

C. All cities, towns, counties and other transportation agencies that receive state or federal transportation monies shall maintain standardized records of their long-range transportation needs and shall report these needs to the division on or before September 1 of each year. As appropriate, local transportation planning agencies may rely on the planning activities and reports of the department and regional planning agencies if these activities and reports have been undertaken pursuant to requirements of this article.

D. In cooperation with local, regional and tribal agencies, the division shall prepare for presentation to the board minimum standards or guidelines delineating the standardized data and information that must be submitted pursuant to this section. The minimum standards shall recognize the differences in local or regional circumstances.

Chapter 3 Traffic and Vehicle Regulation

Article 1 Powers of Governor

§ 28-601 Definitions

In this chapter, unless the context otherwise requires:

1. "Commercial motor vehicle" means a motor vehicle or combination of vehicles that is designed, used or maintained to transport passengers or property in the furtherance of a commercial enterprise, that is a commercial motor vehicle as defined in section 28-5201 and that is not exempt from gross weight fees as prescribed in section 28-5432, subsection B.

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. "Escort vehicle" means a vehicle that is required pursuant to rules adopted by the department to escort motor vehicles or combinations of vehicles that require issuance of a permit pursuant to article 18 or 19 of this chapter for operation on the highways of this state.

5. "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.

6. "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.

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

8. "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.

9. "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.

10. "Low emission and energy efficient vehicle" means a vehicle that has been certified by the United States environmental protection agency administrator in accordance with 23 United States Code section 166 or that is part of a federally approved pilot program.

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

12. "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.

13. "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.

14. "Photo enforcement system" means a device substantially consisting of a radar unit or sensor linked to a camera or other recording device that produces one or more photographs, microphotographs, videotapes or digital or other recorded images of a vehicle's license plate for the purpose of identifying violators of articles 3 and 6 of this chapter.

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

16. "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.

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

18. "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.

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

20. "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.

21. "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.

22. "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.

23. "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.

24. "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.

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

26. "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.

27. "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.

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

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

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

§ 28-602 Powers of governor; federal highway safety act

A. In addition to other duties and responsibilities conferred on the governor by the constitution and laws of this state, the governor may contract and do all other things necessary to secure the full benefits available to this state under the federal highway safety act of 1966 (23 United States Code sections 401 through 404) and any other subsequent federal highway safety acts, including cooperating with federal and state agencies, private and public organizations, and persons to effectuate the purposes of the federal acts and any amendments to the federal acts.

B. The governor is responsible for and may administer the highway safety programs of this state and those of its political subdivisions through the appropriate agency of this state that the governor designates. The responsibility, administration and designation shall be in accordance with the federal highway safety act of 1966 or any other subsequent federal highway safety act and federal regulations adopted to implement the federal acts and as further provided by law.

§ 28-603 Drag racing prevention enforcement fund

A. The drag racing prevention enforcement fund is established consisting of monies deposited pursuant to section 12-116.11. The governor's office of highway safety shall administer the fund. Monies in the fund are continuously appropriated.

B. Monies in the fund shall be used to prevent racing on streets and highways in this state and to enforce section 28-708. The governor's office of highway safety may distribute monies to local law enforcement agencies to help prevent racing on streets and highways in this state and to enforce section 28-708.

Article 2 Obedience to and Effect of Traffic Laws

§ 28-621 Applicability to vehicles on highways; exceptions

The provisions of this chapter and chapter 5 of this title relating to the operation of vehicles refer exclusively to the operation of vehicles on highways except:

1. If a different place is specifically provided by statute.

2. Article 4 of this chapter and section 28-693 apply on highways and elsewhere throughout this state.

§ 28-622 Failure to comply with police officer; classification

A. A person shall not wilfully fail or refuse to comply with any lawful order or direction of a police officer invested by law with authority to direct, control or regulate traffic.

B. A person who violates this section is guilty of a class 2 misdemeanor.

§ 28-622.01 Unlawful flight from pursuing law enforcement vehicle; violation; classification; marked and unmarked vehicles

A driver of a motor vehicle who wilfully flees or attempts to elude a pursuing official law enforcement vehicle is guilty of a class 5 felony if the law enforcement vehicle is either:

1. Being operated in the manner described in section 28-624, subsection C and is appropriately marked to show that it is an official law enforcement vehicle.

2. Unmarked and either of the following applies:

(a) The driver admits to knowing that the vehicle was an official law enforcement vehicle.

(b) Evidence shows that the driver knew that the vehicle was an official law enforcement vehicle.

§ 28-623 Obedience by public officers and employees; exceptions

A. Except as provided in this section and subject to specific exceptions prescribed in this chapter and chapters 4 and 5 of this title with reference to authorized emergency vehicles, the provisions of this chapter and chapters 4 and 5 of this title applicable to the drivers of vehicles on the highways apply to the drivers of all vehicles owned or operated by the United States, this state or any county, city, town, district or other political subdivision of this state.

B. Unless specifically made applicable by law, this chapter and chapters 4 and 5 of this title:

1. Do not apply to persons, teams, motor vehicles and other equipment while actually engaged in work on the surface of a highway.

2. Do not apply to railroad employees working on a railroad track or tracks crossing the highway.

3. Apply to persons and vehicles described in this section if they are traveling to or from work on the surface of a highway or on a railroad track or tracks crossing the highway.

§ 28-624 Authorized emergency vehicles

A. If an authorized emergency vehicle is driven in response to an emergency call, in pursuit of an actual or suspected violator of law or in response to but not on return from a fire alarm, the driver may exercise the privileges provided in this section subject to the conditions stated in this section.

B. If the driver of an authorized emergency vehicle is operating at least one lighted lamp displaying a red or red and blue light or lens visible under normal atmospheric conditions from a distance of five hundred feet to the front of the vehicle, the driver may:

1. Notwithstanding this chapter, park or stand.

2. Proceed past a red or stop signal or stop sign, but only after slowing down as necessary for safe operation.

3. Exceed the prima facie speed limits if the driver does not endanger life or property.

4. Disregard laws or rules governing the direction of movement or turning in specified directions.

C. The exemptions authorized by this section for an authorized emergency vehicle apply only if the driver of the vehicle while in motion sounds an audible signal by bell, siren or exhaust whistle as reasonably necessary and if the vehicle is equipped with at least one lighted lamp displaying a red or red and blue light or lens visible under normal atmospheric conditions from a distance of five hundred feet to the front of the vehicle, except that an authorized emergency vehicle operated as a police vehicle need not be equipped with or display a red or red and blue light or lens visible from in front of the vehicle.

D. This section does not relieve the driver of an authorized emergency vehicle from the duty to drive with due regard for the safety of all persons and does not protect the driver from the consequences of the driver's reckless disregard for the safety of others.

§ 28-625 Persons riding animals or driving animal drawn vehicles

A person riding an animal or driving an animal drawn vehicle on a roadway has all of the rights and is subject to all of the duties applicable to the driver of a vehicle by this chapter and chapters 4 and 5 of this title, except the provisions of this chapter and chapters 4 and 5 of this title that by their very nature can have no application.

§ 28-626 Uniform application of laws throughout state; local ordinances or regulations

A. The provisions of this chapter and chapters 4 and 5 of this title are applicable and uniform throughout this state and in all political subdivisions in this state.

B. A local authority:

1. Shall not enact or enforce an ordinance or regulation in conflict with this chapter or chapter 4 or 5 of this title unless expressly authorized by this chapter or chapter 4 or 5 of this title.

2. May adopt additional traffic regulations that are not in conflict with this chapter or chapter 4 or 5 of this title.

3. Shall adopt ordinances or regulations relating to the control and movement of traffic, including parking or standing ordinances or regulations that provide for the imposition of civil penalties on the violation of the ordinance or regulation.

C. Unless a local ordinance or regulation provides for the imposition of a criminal penalty, a violation of the ordinance or regulation constitutes a civil traffic violation.

§ 28-627 Powers of local authorities

A. This chapter and chapters 4 and 5 of this title do not prohibit a local authority, with respect to streets and highways under its jurisdiction and within the reasonable exercise of the police power, from:

1. Regulating the standing or parking of vehicles.

2. Regulating traffic by means of police officers, traffic control signals or volunteer posse organization members authorized by the sheriff under section 11-441 for the purpose of directing traffic only.

3. Regulating or prohibiting processions or assemblages on the highways.

4. Designating particular highways as one-way highways and requiring that all vehicles on one-way highways be moved in one specific direction.

5. Regulating the speed of vehicles in public parks.

6. Designating any highway as a through highway and requiring that all vehicles stop before entering or crossing the highway or designating any intersection as a stop intersection and requiring all vehicles to stop at one or more entrances to the intersection.

7. Restricting the use of highways as authorized in section 28-1106.

8. Regulating the operation of bicycles and requiring the registration and licensing of bicycles, including the requirement of a registration fee.

9. Regulating or prohibiting the turning of vehicles or specified types of vehicles at intersections.

10. Altering the prima facie speed limits as authorized by this chapter.

11. Designating routes over streets and highways for vehicles not exceeding one hundred two inches in width, exclusive of safety equipment.

12. Adopting other traffic regulations that are specifically authorized by this chapter or chapter 4 or 5 of this title.

13. Designating routes on certain streets and highways for the purpose of allowing off-highway vehicle operators to gain access to or from a designated off-highway recreation facility as defined in section 28-1171, off-highway vehicle trail as defined in section 28-1171 or off-highway vehicle special event as defined in section 28-1171.

14. Regulating electric bicycles and electric standup scooters. A local authority may consider the environmental benefits and traffic benefits of electric bicycles and electric standup scooters when regulating electric bicycles and electric standup scooters.

B. A local authority shall not erect or maintain a stop sign or traffic control signal at any location that requires the traffic on any state highway to stop before entering or crossing any intersecting highway unless approval in writing has first been obtained from the director.

C. An ordinance or regulation enacted under subsection A, paragraph 4, 5, 6, 7, 9 or 10 of this section is not effective until signs giving notice of the local traffic regulations are posted on or at the entrances to the highway or part of the highway affected as is most appropriate.

D. The definition of motor vehicle prescribed in section 28-101 does not prevent a local authority from adopting ordinances that regulate or prohibit the operation of motorized skateboards, except that a local authority shall not adopt an ordinance that requires registration and licensing of motorized skateboards. For the purposes of this subsection, "motorized skateboard" means a self-propelled device that does not have handlebars and that has a motor, a deck on which a person may ride and at least two tandem wheels in contact with the ground.

E. In addition to the appointment of peace officers, a local authority may provide by ordinance for the appointment of:

1. Unarmed police aides or municipally approved private contractors who are employed or contracted by the police department and who are empowered to commence an action or proceeding before a court or judge for a violation of the local authority's ordinances regulating the standing or parking of vehicles. A municipally approved private contractor shall not include a relative of an employee or of an elected official of the municipality. The authority of the unarmed police aide or municipally approved private contractor as authorized in this section is limited to the enforcement of the ordinances of local authorities regulating the standing or parking of vehicles. Pursuant to rules established by the supreme court, an unarmed police aide appointed pursuant to this paragraph may serve any process originating out of a municipal court in the municipality in which the unarmed police aide is employed. Service of process under this paragraph shall only be made during the hours the municipal court is open for the transaction of business and only on court premises. This paragraph does not grant to unarmed police aides or municipally approved private contractors other powers or benefits to which peace officers of this state are entitled.

2. Traffic investigators who may:

(a) Investigate traffic accidents within the jurisdiction of the local authority.

(b) Commence an action or proceeding before a court or judge for any violation of a state statute or local ordinance relating to traffic, if the violation is related to a traffic accident within the jurisdiction of the local authority.

(c) Pursuant to rules established by the supreme court, serve any process originating out of a municipal court in the municipality in which the traffic investigator is employed. Service of process under paragraph 1 of this subsection shall only be made during the hours the municipal court is open for the transaction of business and only on court premises.

F. A traffic investigator appointed pursuant to this section shall:

1. Be unarmed at all times during the course of the traffic investigator's duties.

2. Be an employee of the appointing local authority.

3. File written reports as required pursuant to section 28-667.

G. Notwithstanding subsection E of this section, an unarmed police aide, a municipally approved private contractor or a traffic investigator shall not serve any process resulting from a citation issued for a violation of article 3 or 6 of this chapter or of a city or town ordinance for excessive speed or failure to obey a traffic control device that is obtained using a photo enforcement system.

H. This section does not grant other powers or benefits to traffic investigators to which peace officers of this state are entitled.

I. Pursuant to section 28-1092, a local authority shall provide reasonable access to and from terminals and service facilities on highways under its jurisdiction.

§ 28-628 Rights of real property owners

This chapter does not prevent the owner of real property that is used by the public for purposes of vehicular travel by permission of the owner and not as a matter of right from:

1. Prohibiting that use.

2. Requiring other, different or additional conditions than those specified in this chapter.

3. Otherwise regulating the use as deemed best by the owner.

Article 3 Traffic Signs, Signals and Markings

§ 28-641 Traffic control device manual and specifications

The director shall adopt a manual and specifications for a uniform system of traffic control devices for use on highways in this state. The uniform system shall correlate with and as far as possible conform to the system set forth in the most recent edition of the manual on uniform traffic control devices for streets and highways prepared by the national joint committee on uniform traffic control devices.

§ 28-642 Traffic control signs on state highways; rules

A. The director shall place and maintain traffic control devices that conform to the manual and specifications prescribed in section 28-641 on all state highways as the director deems necessary to indicate and to carry out this chapter or to regulate, warn or guide traffic.

B. A local authority shall not place or maintain a traffic control device on a highway under the jurisdiction of the director except by the director's permission.

C. In cooperation with local authorities, the director shall synchronize traffic control signals on a state highway that has a traffic flow exceeding fifteen thousand motor vehicles per day in a vehicle emissions control area as defined in section 49-541.

D. The director shall adopt rules pursuant to title 41, chapter 6 to establish criteria for the installation and maintenance of directional signs for universities prescribed in section 15-1601, for community colleges as defined in section 15-1401 and for the campus of a regionally accredited college or university.

§ 28-643 Local traffic control devices

Local authorities in their respective jurisdictions shall place and maintain the traffic control devices on highways under their jurisdiction as they deem necessary to indicate and to carry out this chapter or local traffic ordinances or to regulate, warn or guide traffic. All traffic control devices erected shall conform to the manual and specifications prescribed in section 28-641. The manual shall include the specification that the yellow light duration must be at least three seconds.

§ 28-644 Obedience to and required traffic control devices

A. Unless otherwise directed by a traffic or police officer and subject to the exemptions granted the driver of an authorized emergency vehicle in this chapter, the driver of a vehicle shall:

1. Obey the instructions of an official traffic control device applicable to the driver that is placed in accordance with this chapter.

2. Not drive over or across or park in any part of a gore area. This paragraph does not apply to the driver of a vehicle that is disabled while on the paved or main traveled portion of a highway in a manner and to an extent that it is impossible to avoid stopping and temporarily leaving the disabled vehicle in that position. For the purposes of this paragraph, "gore area" means the area that is between a through roadway and an entrance ramp or exit ramp and that is defined by two wide solid white lines that guide traffic entering or exiting a roadway. Gore area does not include a safety zone.

B. Any provision of this chapter that requires signs shall not be enforced against an alleged violator if at the time and place of the alleged violation an official sign is not in proper position and sufficiently legible to be seen by an ordinarily observant person. If a particular section of law does not state that signs are required, that section is effective even though no signs are erected or in place.

§ 28-645 Traffic control signal legend

A. If traffic is controlled by traffic control signals exhibiting different colored lights or colored lighted arrows successively one at a time or in combination, only the colors green, red and yellow shall be used, except for special pedestrian signals carrying a word legend. The lights shall indicate and apply to drivers of vehicles and pedestrians as follows:

1. Green indication:

(a) Vehicular traffic facing a green signal may proceed straight through or turn right or left unless a sign at that place prohibits either turn. Vehicular traffic, including vehicles turning right or left, shall yield the right-of-way to other vehicles and to pedestrians lawfully within the intersection or an adjacent crosswalk at the time the signal is exhibited.

(b) Vehicular traffic facing a green arrow signal, shown alone or in combination with another indication, may cautiously enter the intersection only to make the movement indicated by such arrow or such other movement as is permitted by other indications shown at the same time. Vehicular traffic shall yield the right-of-way to pedestrians lawfully within an adjacent crosswalk and to other traffic lawfully using the intersection.

(c) Unless otherwise directed by a pedestrian control signal as provided in section 28-646, pedestrians facing any green signal, except if the sole green signal is a turn arrow, may proceed across the roadway within any marked or unmarked crosswalk.

2. Steady yellow indication:

(a) Vehicular traffic facing a steady yellow signal is warned by the signal that the related green movement is being terminated or that a red indication will be exhibited immediately thereafter when vehicular traffic shall not enter the intersection.

(b) Unless otherwise directed by a pedestrian control signal as provided in section 28-646, pedestrians facing a steady yellow signal are advised by the signal that there is insufficient time to cross the roadway before a red indication is shown and a pedestrian shall not then start to cross the roadway.

3. Red indication:

(a) Except as provided in subdivisions (b) and (c) of this paragraph, vehicular traffic facing a steady red signal alone shall stop before entering the intersection and shall remain standing until an indication to proceed is shown. On receipt of a record of judgment for a violation of this subdivision or an act in another jurisdiction that if committed in this state would be a violation of this section, the department shall order the person to attend and successfully complete traffic survival school educational sessions within sixty days after the department issues the order. Notwithstanding section 28-3315, if the person fails to attend or successfully complete traffic survival school educational sessions, the department shall suspend the person's driving privilege pursuant to section 28-3306 until the person attends and successfully completes traffic survival school educational sessions. A person whose driving privilege is suspended pursuant to this subdivision may request a hearing. If the person requests a hearing, the department shall conduct the hearing as prescribed in section 28-3306. A law enforcement officer or a jurisdiction issuing a citation to a person who violates this subdivision shall provide written notice to the person that if eligible, the person may attend defensive driving school or, if not eligible or if the person chooses not to attend defensive driving school and is found responsible or enters a plea of responsible for a violation of this subsection, the person must attend and successfully complete traffic survival school educational sessions. The notice shall include a reference to red light violations and state that if the person is required to attend traffic survival school the person will receive notice from the motor vehicle division.

(b) The driver of a vehicle that is stopped in obedience to a red signal and as close as practicable at the entrance to the crosswalk on the near side of the intersection, or if there is no crosswalk, then at the entrance to the intersection, may make a right turn but shall yield the right-of-way to pedestrians and other traffic proceeding as directed by the signal. A right turn may be prohibited against a red signal at any intersection if a sign prohibiting the turn is erected at the intersection.

(c) The driver of a vehicle on a one-way street that intersects another one-way street on which traffic moves to the left shall stop in obedience to a red signal but may then make a left turn into the one-way street. The driver shall yield the right-of-way to pedestrians and other traffic proceeding as directed by the signal at the intersection, except that such left turn may be prohibited if a sign prohibiting the turn is erected at the intersection.

(d) Unless otherwise directed by a pedestrian control signal as provided in section 28-646, a pedestrian facing a steady red signal alone shall not enter the roadway.

B. If an official traffic control signal is erected and maintained at a place other than an intersection, this section applies except as to those provisions of this section that by their nature can have no application. Any stop required shall be made at a sign or marking on the pavement indicating where the stop shall be made, but in the absence of a sign or marking the stop shall be made at the signal.

C. The driver of a vehicle approaching an intersection that has an official traffic control signal that is inoperative shall bring the vehicle to a complete stop before entering the intersection and may proceed with caution only when it is safe to do so. If two or more vehicles approach an intersection from different streets or highways at approximately the same time and the official traffic control signal for the intersection is inoperative, the driver of each vehicle shall bring the vehicle to a complete stop before entering the intersection and the driver of the vehicle on the left shall yield the right-of-way to the driver of the vehicle on the right.

§ 28-646 Pedestrian control signals; loitering prohibited

A. If special pedestrian control signals exhibiting the words "walk" or "don't walk" or a symbol of a walking person that symbolizes the word "walk" or a symbol of an upraised hand that symbolizes the words "don't walk" are in place, the signals shall indicate as follows:

1. Walk or a symbol of a walking person. Pedestrians facing the signal may proceed across the roadway in the direction of the signal and shall be given the right-of-way by the drivers of vehicles.

2. Don't walk or a symbol of an upraised hand. A pedestrian shall not start to cross the roadway in the direction of the signal, but a pedestrian who has partially completed crossing on the walk signal shall proceed to a sidewalk or safety island while the don't walk signal is showing.

B. A pedestrian shall not loiter or unduly delay crossing the roadway after traffic has stopped to give the right-of-way.

§ 28-647 Flashing signals

If an illuminated flashing red or yellow signal is used in a traffic sign or signal it requires obedience by vehicular traffic as follows:

1. Flashing red stop signal. If a red lens is illuminated with rapid intermittent flashes, drivers of vehicles shall stop before entering the nearest crosswalk at an intersection or at a limit line if marked, or if none, then before entering the intersection, and the right to proceed is subject to the rules applicable after making a stop at a stop sign. On receipt of a record of judgment for a violation of this paragraph, the department shall order the person to attend and successfully complete traffic survival school educational sessions within sixty days after the department issues the order. Notwithstanding section 28-3315, if the person fails to attend or successfully complete traffic survival school educational sessions, the department shall suspend the person's driving privilege pursuant to section 28-3306 until the person attends and successfully completes traffic survival school educational sessions. A person whose driving privilege is suspended pursuant to this paragraph may request a hearing. If the person requests a hearing, the department shall conduct the hearing as prescribed in section 28-3306. A law enforcement officer or a jurisdiction issuing a citation to a person who violates this paragraph shall provide written notice to the person that if eligible, the person may attend defensive driving school or, if not eligible or if the person chooses not to attend defensive driving school and is found responsible or enters a plea of responsible for a violation of this paragraph, the person must attend and successfully complete traffic survival school educational sessions. The notice shall include a reference to red light violations and state that if the person is required to attend traffic survival school the person will receive notice from the motor vehicle division.

2. Flashing yellow caution signal. If a yellow lens is illuminated with rapid intermittent flashes, drivers of vehicles may proceed through the intersection or past the signal only with caution.

§ 28-648 Display of unauthorized signs, signals or markings

A. A person shall not place, maintain or display on or in view of a highway an unauthorized sign, signal, marking or device that either:

1. Purports to be or is an imitation of or resembles an official traffic control device or railroad sign or signal.

2. Attempts to direct the movement of traffic.

3. Hides from view or interferes with the effectiveness of an official traffic control device or a railroad sign or signal.

B. A person shall not place or maintain and a public authority shall not permit on a highway a traffic sign or signal bearing any commercial advertising.

C. This section does not prohibit the erection on private property adjacent to highways of a sign giving useful directional information if the sign cannot be mistaken for an official sign.

D. A sign, signal or marking prohibited by this section is a public nuisance, and the authority having jurisdiction over the highway may remove it or cause it to be removed without notice.

§ 28-649 Interference with official traffic control device or railroad sign or signal; possession of traffic preemption emitter; classification; definition

A. A person shall not attempt without lawful authority to or in fact alter, deface, injure, knock down or remove an official traffic control device, a railroad sign or signal or an inscription, shield or insignia on any device, sign or signal or any part of the device, sign or signal.

B. A person shall not possess a traffic preemption emitter unless the person is authorized to possess a traffic preemption emitter within the course and scope of the person's duties with a law enforcement agency, fire department, ambulance service or agency of the federal government, this state or a political subdivision of this state.

C. A person who violates this section is guilty of a class 1 misdemeanor.

D. For the purposes of this section, "traffic preemption emitter" means strobe, strobe light or any device that is capable of changing the display of any traffic control device used to control the movement of vehicles, bicycles or pedestrians.

§ 28-650 Warning devices at construction sites

A person, contractor or political subdivision performing work on roads, streets or highways shall post and maintain warning signs, signals, markers and barricades that are in compliance with the manual and specifications prescribed in section 28-641. These warning signs, signals, markers or barricades shall be maintained at the work site to warn those using the street, road or highway until the work is completed or until such time as the governing body authorizes removal.

§ 28-651 Use of private property to avoid traffic control device prohibited

A person shall not drive on or through any private property, road or driveway to avoid obedience to traffic rules or traffic control devices.

§ 28-652 State highway work zones; definition

A. The director shall adopt standards and specifications for the use of traffic control devices and for work zone safety and mobility in state highway work zones, including an emergency vehicle access plan as prescribed in this section.

B. The standards and specifications for the use of traffic control devices adopted pursuant to subsection A of this section shall include the following:

1. The use of traffic control devices that indicate that the driver is approaching a state highway work zone and that are required to be posted at least one thousand feet before entering a state highway work zone.

2. The use of traffic control devices when workers are present in a state highway work zone that indicate that double civil penalties will be imposed for exceeding the speed limit in a state highway work zone when workers are present and that are required to be posted at least every twenty-five hundred feet within a state highway work zone.

3. The use of traffic control devices that indicate the beginning and end of a state highway work zone.

4. A requirement that the traffic control devices be removed when the preliminary engineering work or construction, repair or maintenance work is completed.

C. For projects requiring a traffic management plan:

1. The standards and specifications for work zone safety and mobility adopted pursuant to subsection A of this section shall provide for consultation with stakeholders, including area law enforcement and emergency responders.

2. The director shall:

(a) Establish an emergency vehicle access plan as part of the traffic management plan in consultation with area law enforcement and emergency responders.

(b) Communicate the emergency vehicle access plan to area law enforcement and emergency responders by electronic mail, fax or other effective means.

D. For the purposes of this section, "state highway work zone" means an area that is within a state highway right-of-way and that is subject to preliminary engineering work or construction, repair or maintenance work.

§ 28-653 Flagger training and certification; exception

A. Any individual who is stationed in a state highway work zone to provide temporary traffic control shall have completed training and be certified by a program that meets the training and certification standards of the national safety council highway flagger training program, the American traffic safety services association flagger program or an equivalent program that meets the same objectives. An equivalent program must meet the United States department of transportation federal highway administration standards for the control of traffic through highway work zones as defined in the manual on uniform traffic control devices for streets and highways.

B. Flaggers shall repeat training and certification requirements at least once every four years.

C. This section does not apply to law enforcement personnel who are employed by governmental entities.

Article 4 Accidents

§ 28-661 Accidents involving death or physical injuries; autonomous vehicles; neighborhood occupantless electric vehicles; failure to stop; violation; classification; driver license revocation; restricted privilege to drive; alcohol or other drug screening

A. The driver of a vehicle involved in an accident on public or private property resulting in injury to or death of a person shall:

1. Immediately stop the vehicle at the scene of the accident or as close to the accident scene as possible but shall immediately return to the accident scene.

2. Remain at the scene of the accident until the driver has fulfilled the requirements of section 28-663.

B. If the vehicle described in subsection A of this section is a fully autonomous vehicle operating without a human driver or a neighborhood occupantless electric vehicle, the requirements of this section are satisfied if the fully autonomous vehicle or neighborhood occupantless electric vehicle stops at the scene of the accident or as close to the accident scene as possible and remains stopped at that location until the requirements of section 28-663 have been satisfied.

C. A driver who is involved in an accident resulting in death or serious physical injury as defined in section 13-105 and who fails to stop or to comply with the requirements of section 28-663 is guilty of a class 3 felony, except that if a driver caused the accident the driver is guilty of a class 2 felony.

D. A driver who is involved in an accident resulting in an injury other than death or serious physical injury as defined in section 13-105 and who fails to stop or to comply with the requirements of section 28-663 is guilty of a class 5 felony.

E. The sentence imposed on a person for a conviction under this section shall run consecutively to any sentence imposed on the person for other convictions on any other charge related to the accident.

F. The department shall revoke the license or permit to drive and any nonresident operating privilege of a person convicted pursuant to subsection C of this section as follows:

1. For an accident resulting in serious physical injury, five years, not including any time that the person is incarcerated.

2. For an accident resulting in death, ten years, not including any time that the person is incarcerated.

G. Five or more years after the revocation period has begun pursuant to subsection F, paragraph 2 of this section, not including any time that the person is incarcerated, a person may apply to the department for a restricted privilege to drive. The department may issue a restricted privilege to drive as described in section 28-144 if the department finds both of the following:

1. The person is not convicted of any offense involving the operation of a motor vehicle while the person's driving privilege is revoked.

2. The person has paid full restitution as ordered by the court.

H. The department shall revoke the license or permit to drive and any nonresident operating privilege of a person convicted pursuant to subsection D of this section for three years.

I. If the court finds by a preponderance of the evidence that the person's use of intoxicating liquor, any drug listed in section 13-3401, a vapor releasing substance containing a toxic substance or any combination of liquor, drugs or vapor releasing substances was a contributing factor to the accident, the court shall order the person to complete alcohol or other drug screening.

§ 28-662 Accidents involving damage to vehicle; failure to stop; autonomous vehicles; neighborhood occupantless electric vehicles; violation; classification; driver license suspension; alcohol or other drug screening

A. The driver of a vehicle involved in an accident on public or private property resulting only in damage to a vehicle that is driven or attended by a person shall:

1. Immediately stop the vehicle at the scene of the accident or as close to the accident scene as possible but shall immediately return to the accident scene.

2. Remain at the scene of the accident until the driver has fulfilled the requirements of section 28-663.

3. Make the stop without obstructing traffic more than is necessary.

B. If the first vehicle described in subsection A of this section is a fully autonomous vehicle operating without a human driver or a neighborhood occupantless electric vehicle, the requirements of this section are satisfied if the fully autonomous vehicle or neighborhood occupantless electric vehicle:

1. Immediately stops at the scene of the accident or as close to the accident scene as possible.

2. Remains stopped at or as close as possible to the scene until the requirements of section 28-663 have been satisfied.

3. Makes the stop without obstructing traffic more than necessary.

C. A person failing to stop or comply with this section is guilty of a class 1 misdemeanor.

D. A court may order the department to suspend the license or permit to drive and any nonresident operating privilege of a person convicted under this section for one year. If reasonable suspicion exists to believe that the person's use of intoxicating liquor, any drug listed in section 13-3401, a vapor releasing substance containing a toxic substance or any combination of liquor, drugs or vapor releasing substances was a contributing factor to the accident, the department may require the person to complete alcohol or other drug screening as a condition of license reinstatement.

§ 28-663 Duty to give information and assistance; autonomous vehicles; neighborhood occupantless electric vehicles; violation; classification; alcohol or other drug screening

A. The driver of a vehicle involved in an accident on public or private property resulting in injury to or death of a person or damage to a vehicle that is driven or attended by a person shall:

1. Give the driver's name and address and the registration number of the vehicle the driver is driving.

2. On request, exhibit the person's driver license to the person struck or the driver or occupants of or person attending a vehicle collided with.

3. Render reasonable assistance to a person injured in the accident, including making arrangements for the carrying of the person to a physician, surgeon or hospital for medical or surgical treatment if it is apparent that treatment is necessary or if the carrying is requested by the injured person.

B. If the first vehicle described in subsection A of this section is a fully autonomous vehicle operating without a human driver or a neighborhood occupantless electric vehicle, the requirements of this section are satisfied if both:

1. The vehicle owner or a person on behalf of the vehicle owner promptly contacts a law enforcement agency to report the accident or if the fully autonomous vehicle or neighborhood occupantless electric vehicle alerts a law enforcement agency to the accident.

2. The vehicle owner, a person on behalf of the vehicle owner, the fully autonomous vehicle or a neighborhood occupantless electric vehicle makes the owner's name and address and the registration number of the vehicle available to either:

(a) A person struck by the vehicle.

(b) The occupants of or a person attending a vehicle that is involved in the accident.

C. A person who fails to comply with subsection A, paragraph 1 or 2 of this section is guilty of a class 1 misdemeanor.

D. A person who fails to comply with subsection A, paragraph 3 of this section is guilty of a class 6 felony. If the court finds by a preponderance of the evidence that the person's use of intoxicating liquor, any drug listed in section 13-3401, a vapor releasing substance containing a toxic substance or any combination of liquor, drugs or vapor releasing substances was a contributing factor to the accident, the court shall order the person to complete alcohol or other drug screening.

§ 28-664 Duty on striking unattended vehicle; autonomous vehicles; neighborhood occupantless electric vehicles; violation; classification

A. The driver of a vehicle that collides with a vehicle that is unattended on public or private property shall immediately:

1. Stop.

2. Either:

(a) Locate and notify the operator or owner of the vehicle of the name and address of the driver and owner of the vehicle striking the unattended vehicle.

(b) In a conspicuous place in the vehicle struck, leave a written notice giving the name and address of the driver and of the owner of the vehicle doing the striking.

B. If the first vehicle described in subsection A of this section is a fully autonomous vehicle operating without a human driver or a neighborhood occupantless electric vehicle, the requirements of this section are satisfied if the fully autonomous vehicle or neighborhood occupantless electric vehicle immediately stops and the vehicle owner or a person on behalf of the vehicle owner provides the notice prescribed in subsection A, paragraph 2 of this section.

C. A person who violates this section is guilty of a class 1 misdemeanor.

§ 28-665 Striking fixtures on a highway; autonomous vehicles; neighborhood occupantless electric vehicles; violation; classification

A. The driver of a vehicle involved in an accident resulting only in damage to fixtures or other property legally on or adjacent to a highway shall:

1. Take reasonable steps to locate and notify the owner or person in charge of the property of:

(a) The fact of the accident.

(b) The driver's name and address.

(c) The registration number of the vehicle the driver is driving.

2. On request, exhibit the driver's driver license.

B. If the vehicle described in subsection A of this section is a fully autonomous vehicle operating without a human driver or a neighborhood occupantless electric vehicle, the requirements of this section are satisfied if the vehicle owner or a person on behalf of the vehicle owner takes reasonable steps to notify the owner or person in charge of the property of all of the following:

1. The fact of the accident.

2. The vehicle owner's name and address.

3. The vehicle's registration number.

C. A person who violates this section is guilty of a class 1 misdemeanor.

§ 28-666 Notice of vehicle accident; autonomous vehicles; neighborhood occupantless electric vehicles

A. The driver of a vehicle involved in an accident resulting in injury to or death of a person shall give notice of the accident immediately by the quickest means of communication, whether oral or written, to either:

1. The local police department if the accident occurs within a municipality.

2. The office of the county sheriff.

3. The nearest office of the highway patrol.

B. If the vehicle described in subsection A of this section is a fully autonomous vehicle operating without a human driver or a neighborhood occupantless electric vehicle, the notice described in this section may be provided by the vehicle owner or a person on behalf of the vehicle owner.

§ 28-667 Written accident report; definition

A. A law enforcement officer or public employee who, in the regular course of duty, investigates a motor vehicle accident resulting in bodily injury, death or damage to the property of any person in excess of $2,000 or the issuance of a citation shall complete a written report of the accident as follows:

1. Either at the time of and at the scene of the accident or after the accident by interviewing participants or witnesses.

2. Within twenty-four hours after completing the investigation.

B. Every law enforcement officer or public employee who, in the regular course of duty, investigates a motor vehicle accident that results in damage to the property of any person in an amount of $2,000 or less, but that does not result in the issuance of a citation or bodily injury or death, shall complete a portion of the written report of the accident. The portion of the written report shall:

1. Be completed either at the time of and at the scene of the accident or after the accident by interviewing participants or witnesses.

2. Be completed within twenty-four hours after completing the investigation.

3. Include the following minimum information:

(a) The time, day, month and year of the accident.

(b) Information adequate to identify the location of the accident.

(c) Identifying information for all involved parties and witnesses, including name, age, sex, address, telephone number, vehicle ownership and registration and proof of insurance.

(d) A narrative description of the facts of the accident, a simple diagram of the scene of the accident and the investigating officer's name, agency and identification number.

C. The agency employing the officer or public employee:

1. Shall not allow a person to examine the accident report or any related investigation report or a reproduction of the accident report or a related investigation report if the request is for a commercial solicitation purpose.

2. May require a person requesting the accident or related investigative report to state under penalty of perjury that the report is not examined or copied for a commercial solicitation purpose.

3. May retain the original report.

4. Shall maintain an electronic copy of the original report if the agency elects not to retain the original report pursuant to paragraph 3 of this subsection.

5. Shall immediately forward a copy of the report to the department of transportation for its use.

6. Except as otherwise provided by law, on request shall provide a copy of the unredacted report to the following:

(a) A person who is involved in the accident or the owner of a vehicle involved in the accident or a representative of the person or owner.

(b) Any insurer licensed pursuant to title 20 if the report is related to an investigation into fraudulent claims, or any insurer that writes automobile liability or motor vehicle liability policies and that is both of the following:

(i) Under the jurisdiction of the department of insurance and financial institutions or a self-insured entity or its agents, employees or contractors in connection with claims investigation activities, antifraud activities, rating or underwriting.

(ii) An insurer of a person or vehicle involved in the accident.

(c) An attorney licensed to practice law or to a licensed private investigator representing a person involved in the accident in connection with any civil, administrative or arbitration proceeding in any court or government agency or before any self-regulatory body, including the service of process, investigation in anticipation of litigation and the execution or enforcement of judgments and orders, or pursuant to a court order.

(d) An insurance support organization as defined in section 20-2102 that provides services in connection with claims investigation activities, antifraud activities, rating or underwriting.

D. If a request is made pursuant to subsection C, paragraph 6, subdivision (a) or (c) of this section and the accident report indicates that a criminal complaint has been issued, before the report is released the personal identifying information regarding any victim shall be redacted from the accident report pursuant to section 13-4434.

E. A law enforcement agency may deny a request for a copy of an unredacted accident report if the agency determines that release of the report would be harmful to a criminal investigation.

F. The department may place notes, date stamps, identifying numbers, marks or other information on the copies as needed, if they do not alter the original information reported by the investigating officer or public employee.

G. Any law restricting the distribution of personal identifying information by a business entity described in subsection C, paragraph 6, subdivisions (b) and (d) of this section applies to personal identifying information contained in an accident report. If a person who receives information under this section is not otherwise subject to distribution restrictions for information contained in accident reports, the person shall not release the report or any information contained in the report except to those persons designated in subsection C, paragraph 6 of this section.

H. For the purposes of this section, "commercial solicitation purpose" means a request for an accident report if there is neither:

1. A relationship between the person or the principal of the person requesting the accident report and any party involved in the accident.

2. A reason for the person to request the report other than for the purposes of soliciting a business or commercial relationship.

§ 28-668 Accidents involving death to drivers; testing alcohol concentration

A. A peace officer who investigates an accident that involves the death of one or more drivers shall promptly notify the county medical examiner of the death or deaths. If probable cause exists to believe that a deceased driver committed an alcohol related traffic offense, the county medical examiner shall test the deceased driver to determine the driver's alcohol concentration.

B. If a county medical examiner has not been appointed in the county in which the accident occurs, the peace officer shall notify and secure a physician who is licensed pursuant to title 32, chapter 13, 14 or 17 or a person who is acting under the authority of a licensed physician to draw a sufficient sample of blood or other bodily substance for determining alcohol concentration. The investigating officer shall forward the sample to the department of public safety crime laboratory for analysis.

C. The investigating officer shall record on the accident report required under section 28-667 the results of the test to determine the alcohol concentration of the driver or drivers.

§ 28-669 Accident report forms

A. The department shall prepare and on request supply to police departments, sheriffs and other suitable agencies forms for accident reports required under this article that are appropriate with respect to the persons required to make the reports and the purposes to be served. The written reports to be made by investigating officers shall call for sufficiently detailed information to disclose with reference to a traffic accident the cause, the conditions then existing and the persons and vehicles involved.

B. An accident report required to be made in writing shall be made on the appropriate form approved by the department and shall contain all of the information required in the form unless it is not available.

C. The department shall modify the written accident report form in conjunction with state and local law enforcement agencies, engineering agencies and emergency medical service organizations.

§ 28-670 Accident report analysis

The department:

1. Shall tabulate all accident reports.

2. May analyze all accident reports.

3. Shall publish annually or at more frequent intervals statistical information based on the accident reports as to the number and circumstances of traffic accidents.

§ 28-671 Accident reports required by city or town

Any incorporated city or town, by ordinance, may require the driver of a vehicle involved in an accident to also file with a designated city or town department a report of an accident or a copy of any report required by this article to be filed with the department. The reports are for the confidential use of the city or town department.

§ 28-672 Causing serious physical injury or death by a moving violation; time limitation; penalties; violation; classification; definition

A. A person is guilty of causing serious physical injury or death by a moving violation if the person violates any one of the following and the violation results in an accident causing serious physical injury or death to another person:

1. Section 28-645, subsection A, paragraph 3, subdivision (a).

2. Section 28-710.

3. Section 28-729.

4. Section 28-771.

5. Section 28-772.

6. Section 28-773.

7. Section 28-792.

8. Section 28-794.

9. Section 28-797, subsection F, G, H or I.

10. Section 28-855, subsection B.

11. Section 28-857, subsection A.

12. Section 28-914.

B. A person who violates this section shall attend and successfully complete traffic survival school educational sessions that are designed to improve the safety and habits of drivers and that are approved by the department. In addition, the court may order the person to perform community restitution.

C. The court shall report a conviction for a violation of this section to the department and:

1. For a first violation of this section, shall direct the department to suspend the person's driving privilege or restrict the person's driving privilege as described in section 28-144 for at least ninety days and not more than one hundred eighty days if the violation results in serious physical injury and at least one hundred eighty days and not more than one year if the violation results in death.

2. For a second or subsequent violation of this section within a period of thirty-six months, shall direct the department to suspend the person's driving privilege for one hundred eighty days if the violation results in serious physical injury and one year if the violation results in death.

D. If a person's driving privilege is suspended pursuant to any other statute because of an incident involving a violation of this section, the suspension period prescribed in subsection C of this section shall run consecutively with the other suspension period.

E. If a person fails to successfully complete traffic survival school educational sessions or perform community restitution pursuant to this section, the court shall notify the department and the department shall promptly suspend the driver license or permit of the driver or the privilege of a nonresident to drive a motor vehicle in this state until the order is satisfied.

F. If the person who suffers serious physical injury as a result of a violation of this section appears before the court in which the action is pending at any time before trial and acknowledges receipt of satisfaction for the injury, on payment of the costs incurred, the court shall order that the prosecution be dismissed and the defendant be discharged. The reasons for the order shall be set forth and entered of record, and the order shall be a bar to another prosecution for the same offense.

G. Restitution awarded pursuant to section 13-603 as a result of a violation of this section shall not exceed $100,000.

H. A prosecution for a violation of this section must be commenced within two years after actual discovery of the offense by the state or the political subdivision having jurisdiction or discovery by the state or the political subdivision that should have occurred with the exercise of reasonable diligence, whichever first occurs.

I. A person who violates this section is guilty of a class 1 misdemeanor.

J. For the purposes of this section, "serious physical injury" has the same meaning prescribed in section 13-105.

§ 28-673 Traffic accidents; implied consent; tests

A. A person who operates a motor vehicle within this state gives consent to a test or tests of the person's blood, breath, urine or other bodily substance for the purposes of determining alcohol concentration or drug content if the person is involved in a traffic accident resulting in death or serious physical injury as defined in section 13-105 and a law enforcement officer has probable cause to believe that the person caused the accident or the person is issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title.

B. The test or tests chosen by the law enforcement agency shall be administered at the direction of a law enforcement officer who has reasonable grounds to believe that the person was involved in a traffic accident resulting in death or serious physical injury as defined in section 13-105 and who has probable cause to believe that the person caused the accident or the person was issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title.

C. After a determination is made that a person was involved in a traffic accident resulting in death or serious physical injury as defined in section 13-105 and the officer has probable cause to believe that the person caused the accident or the person was issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title, the person may be requested to submit to and successfully complete any test or tests prescribed by subsection A of this section, and if the person refuses, the person shall be informed that the person's license or permit to drive will be suspended or denied for twelve months, or for two years for a second or subsequent refusal in a period of eighty-four months, unless the person expressly agrees to submit to and successfully completes the test or tests. A failure to expressly agree to the test or successfully complete the test is deemed a refusal. The person shall also be informed that if the test results show a blood or breath alcohol concentration of 0.08 or more, or if the results show a blood or breath alcohol concentration of 0.04 or more and the person was driving or in actual physical control of a commercial motor vehicle, the person's license or permit to drive will be suspended or denied for not less than ninety consecutive days.

D. If a person refuses to submit to the test designated by the law enforcement agency as provided in subsection B of this section:

1. The test shall not be given, except as provided in section 28-1388, subsection E or pursuant to a search warrant.

2. The law enforcement officer directing the administration of the test shall:

(a) File a certified report of the refusal with the department.

(b) On behalf of the department, serve an order of suspension on the person that is effective thirty days after the date the order is served.

(c) Require the immediate surrender of any license or permit to drive that is issued by this state and that is in the possession or control of the person.

(d) If the license or permit is not surrendered, state the reason why it is not surrendered.

(e) If a valid license or permit is surrendered, issue a temporary driving permit that is valid for thirty days.

(f) Forward the certified report of refusal, a copy of the completed notice of suspension, a copy of any completed temporary permit and any driver license or permit taken into possession under this section to the department within five days after the issuance of the notice of suspension.

E. Section 28-1321, subsections E through P apply to any test prescribed by this section and to any person who refuses to submit to a test prescribed by this section, except that:

1. The certified report shall state the law enforcement officer's reasonable grounds to believe that the person was involved in a traffic accident resulting in death or serious physical injury as defined in section 13-105 and the law enforcement officer's probable cause to believe that the person caused the accident or the person was issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title.

2. The certified report shall be filed pursuant to subsection D of this section.

3. The scope of the hearing shall include the law enforcement officer's probable cause to believe that the person was involved in a traffic accident resulting in death or serious physical injury as defined in section 13-105 and the law enforcement officer's probable cause to believe that the person caused the accident or the person was issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title.

F. A person who is dead, unconscious or otherwise in a condition rendering the person incapable of refusal is deemed not to have withdrawn the consent provided by subsection A of this section and the test or tests shall be administered.

§ 28-674 Traffic accidents; quick clearance

A. Notwithstanding any other provision of this article, motor vehicles involved in traffic accidents and drivers of motor vehicles involved in traffic accidents are subject to this section.

B. This section applies to motor vehicle traffic accidents that occur on controlled access highways and any other highways that are divided into two or more lanes clearly marked for traffic in this state.

C. If a motor vehicle traffic accident occurs and serious physical injury as defined in section 13-105 or death is not apparent, the drivers of the motor vehicles involved in the accident, or any other occupant of the motor vehicles involved in the accident who possesses a valid driver license, shall remove the motor vehicles from the main traveled portion of the roadway into a safe refuge on the shoulder, emergency lane or median or to a place otherwise removed from the roadway if both of the following apply:

1. The moving of the motor vehicle can be done safely.

2. The motor vehicle is capable of being normally and safely driven, does not require towing and can be operated under its own power in its customary manner without further damage or hazard to the motor vehicle, to traffic elements or to the roadway.

D. The driver of a motor vehicle involved in a traffic accident may request any person who possesses a valid driver license to remove the motor vehicle as provided in this section, and the person requested to remove the motor vehicle may comply with the request.

E. The driver or any other person who removes a motor vehicle from the main traveled portion of the roadway as provided in this section before the arrival of a police officer is not liable or at fault regarding the cause of the traffic accident solely by reason of moving the motor vehicle pursuant to this section.

F. This section does not abrogate or affect a driver's duty to do either of the following:

1. File any written report required by a local law enforcement agency, except that compliance with this section does not allow a driver to be prosecuted for the driver's failure to stop and immediately report a traffic accident.

2. Stop and give information pursuant to this article.

G. This section does not relieve a police officer of the duty to submit a written accident report pursuant to this article.

H. In the exercise of the management, control and maintenance of state highways, the department may require and assist in the removal of the following from the main traveled portion of the roadways in the state highway system:

1. All vehicles that are incapacitated for any cause other than having been involved in a motor vehicle traffic accident.

2. All vehicles incapacitated as a result of being involved in a motor vehicle traffic accident and debris caused by a motor vehicle traffic accident if both of the following apply:

(a) Serious physical injury as defined in section 13-105 or death is not apparent.

(b) The move can be accomplished safely by the drivers of the motor vehicles involved or with the assistance of a towing or recovery vehicle and the move will result in the improved safety or convenience of travel on the highway.

I. The department shall not require or assist in the removal of a motor vehicle that is incapacitated as a result of being involved in a motor vehicle traffic accident if serious physical injury as defined in section 13-105 or death is apparent until a police officer has made the necessary measurements and diagrams required for the initial accident investigation.

J. If the department or a police officer believes that a vehicle presents a potential fire or other safety hazard and requests a towing or recovery vehicle to assist in moving the vehicle pursuant to subsection H, paragraph 2 of this section, the department or police officer may direct and acknowledge in writing that the towing or recovery vehicle operator shall either intentionally damage a part of the vehicle that does not need to be damaged to move the vehicle under accepted towing practices or move or tow the vehicle in a manner or with an urgency that is not consistent with acceptable towing practices. The operator of the towing or recovery vehicle is not liable for any damage to personal property resulting from the department's or police officer's effort to mitigate the potential fire or other safety hazard pursuant to this subsection unless the removal is done recklessly or in a grossly negligent manner.

§ 28-675 Causing death by use of a vehicle; violation; classification

A. A person is guilty of causing death by use of a vehicle if all of the following apply:

1. The person is not allowed to operate a motor vehicle pursuant to subsection B of this section.

2. While operating a motor vehicle, the person causes the death of another person.

3. The person commits a violation of any of the following:

(a) Section 28-645, subsection A, paragraph 3, subdivision (a).

(b) Section 28-729.

(c) Section 28-771.

(d) Section 28-772.

(e) Section 28-773.

(f) Section 28-792.

(g) Section 28-794.

(h) Section 28-797, subsection F, G, H or I.

(i) Section 28-855, subsection B.

(j) Section 28-857, subsection A.

B. For the purposes of this section, a person shall not operate a motor vehicle if any of the following applies:

1. The person's driving privilege is revoked for any reason.

2. The person's driving privilege is suspended for any reason pursuant to chapter 4, article 3 of this title.

3. The person's driving privilege is suspended pursuant to section 28-1321.

4. The person's driving privilege is suspended pursuant to the department's action based on a previous conviction for a violation of section 28-3473.

5. The person's driving privilege is suspended pursuant to section 28-3306, subsection A.

6. The person's driving privilege is suspended pursuant to section 28-3308 and the person has had one or more previous suspensions pursuant to that section.

7. The person does one of the following to obtain a driver license:

(a) Knowingly uses a false or fictitious name.

(b) Knowingly makes a false statement.

(c) Knowingly conceals a material fact.

(d) Commits fraud.

(e) Violates section 28-3479.

8. The person does not have a valid driver license and a proper endorsement, if required, as prescribed by chapter 8 of this title and the person is not exempt pursuant to chapter 8 of this title.

9. The person's driving privilege is suspended pursuant to section 28-4141 for failure to provide proof of financial responsibility required by section 28-3319 for a violation of chapter 4, article 3 of this title.

C. The sentence imposed on a person for a conviction under this section shall run consecutively to any sentence imposed on the person for other convictions on any other charge related to the accident.

D. Restitution shall be awarded pursuant to section 13-603 as a result of a violation of this section.

E. The department shall revoke the license or permit to drive and any nonresident operating privilege of a person who is convicted of a violation of this section for one year, not including any time that the person is incarcerated.

F. Causing death by use of a vehicle is a class 4 felony except that causing death by use of a vehicle is a class 3 felony if it results from a violation of subsection B, paragraph 2 or 9 of this section.

§ 28-676 Causing serious physical injury by use of a vehicle; violation; classification

A. A person is guilty of causing serious physical injury by use of a vehicle if all of the following apply:

1. The person is not allowed to operate a motor vehicle pursuant to subsection B of this section.

2. While operating a motor vehicle, the person causes serious physical injury as defined in section 13-105 to another person.

3. The person commits a violation of any of the following:

(a) Section 28-645, subsection A, paragraph 3, subdivision (a).

(b) Section 28-729.

(c) Section 28-771.

(d) Section 28-772.

(e) Section 28-773.

(f) Section 28-792.

(g) Section 28-794.

(h) Section 28-797, subsection F, G, H or I.

(i) Section 28-855, subsection B.

(j) Section 28-857, subsection A.

B. For the purposes of this section, a person shall not operate a motor vehicle if any of the following applies:

1. The person's driving privilege is revoked for any reason.

2. The person's driving privilege is suspended for any reason pursuant to chapter 4, article 3 of this title.

3. The person's driving privilege is suspended pursuant to section 28-1321.

4. The person's driving privilege is suspended pursuant to the department's action based on a previous conviction for a violation of section 28-3473.

5. The person's driving privilege is suspended pursuant to section 28-3306, subsection A.

6. The person's driving privilege is suspended pursuant to section 28-3308 and the person has had one or more previous suspensions pursuant to that section.

7. The person does one of the following to obtain a driver license:

(a) Knowingly uses a false or fictitious name.

(b) Knowingly makes a false statement.

(c) Knowingly conceals a material fact.

(d) Commits fraud.

(e) Violates section 28-3479.

8. The person does not have a valid driver license and a proper endorsement, if required, as prescribed by chapter 8 of this title and the person is not exempt pursuant to chapter 8 of this title.

9. The person's driving privilege is suspended pursuant to section 28-4141 for failure to provide proof of financial responsibility required by section 28-3319 for a violation of chapter 4, article 3 of this title.

C. The sentence imposed on a person for a conviction under this section shall run consecutively to any sentence imposed on the person for other convictions on any other charge related to the accident.

D. Restitution shall be awarded pursuant to section 13-603 as a result of a violation of this section.

E. The department shall revoke the license or permit to drive and any nonresident operating privilege of a person who is convicted of a violation of this section for one year, not including any time that the person is incarcerated.

F. Causing serious physical injury by use of a vehicle is a class 5 felony.

§ 28-677 Declaration of statewide concern; prohibition of emergency response services fees; exceptions

A. The legislature finds that the regulation of emergency response services fees for motor vehicle accidents or other incidents involving motor vehicles or investigations, cleanup or preparation of reports of accidents or incidents is a matter of statewide concern and not subject to further regulation by a county, city or town of this state.

B. Except as provided in subsection C of this section, a county, city or town may not directly or indirectly charge a fee or seek reimbursement from the driver, an insurer or any other person for any costs or expenses for the provision of police, fire or other emergency responder services, personnel, supplies, motor vehicles or equipment in responding to a motor vehicle accident or other incident involving a motor vehicle or in the investigation, cleanup or preparation of a report of the accident or incident.

C. A county, city or town may charge a lawful and proper fee for any liability arising from the following:

1. Damages to property of the county, city or town.

2. Amounts due pursuant to title 12, chapter 7, article 10.

3. Charges for ambulance services provided by the city or town.

4. Charges authorized by section 28-910 or 28-1386.

5. Environmental cleanup costs as required by state or federal law.

6. Charges for public records under title 39, chapter 1.

7. Any other charge specifically permitted by state law.

8. Charges for fire or police services provided outside of the boundaries of a city or town located in a county with a population of less than one million persons.

9. Charges pursuant to intergovernmental agreements between political subdivisions.

§ 28-678 City, town or county critical health information program; decal; emergency responders; fee; definitions

A. A city, town or county, by ordinance, may establish a program to provide emergency responders with critical health information about program participants so that emergency responders may aid program participants who are involved in motor vehicle emergencies or accidents and who are unable to communicate with emergency responders.

B. A city, town or county that establishes a critical health information program:

1. In consultation with interested parties, including local law enforcement agencies, fire departments and emergency medical services personnel, shall design program materials, giving consideration to program materials used by similar programs in other states in order to maximize uniformity. Program materials must include all of the following:

(a) A yellow decal with a diameter of three and one-half inches that reads "saving lives" in its center, and an optional one-half inch border listing the issuing city, town or county, that is to be affixed to the upper left corner of the rear window of the program participant's vehicle.

(b) A health information card that provides space for a program participant to attach a recent photograph and indicate the participant's name, emergency contact information, physicians' names and contact information, medical conditions, recent surgeries, allergies, medications and any other information that the city, town or county deems relevant to emergency responders in the case of emergency.

(c) A yellow program envelope into which the health information card prescribed by subdivision (b) of this paragraph is to be inserted and placed into the program participant's glove compartment.

2. Shall provide sufficient program materials to the public and to state and local law enforcement agencies, which shall also provide the information to the public.

3. May charge program participants a nominal fee for program costs in an amount to be determined by the city, town or county.

C. A yellow decal that is affixed to a motor vehicle that is involved in a motor vehicle accident or emergency:

1. Serves as notice to an emergency responder assisting the motor vehicle that the driver or any passenger in the vehicle may be a program participant.

2. Authorizes an emergency responder at the scene of the accident or emergency to search the glove compartment of the vehicle for a yellow program envelope.

D. An emergency responder may use the information contained in the yellow program envelope for the following purposes:

1. To identify a program participant.

2. To ascertain whether the program participant has a medical condition that may impede communications with the emergency responder.

3. To communicate with the program participant's emergency contacts about the location and general condition of the program participant.

4. To consider the program participant's current medications and preexisting medical conditions when emergency medical treatment is administered for any injury the participant suffers.

E. An emergency responder is not liable for any civil damages as a result of any acts or omissions that do not amount to intentional misconduct or gross negligence in response to incomplete, incorrect or outdated information.

F. An emergency responder is not liable for damage to the program participant's vehicle when obtaining information.

G. For the purposes of this section:

1. "Emergency responder" means municipal, county or state law enforcement officers, firefighters or emergency medical services personnel.

2. "Program participant" means an individual who participates in the critical health information program.

Article 5 Reckless and Aggressive Driving

§ 28-693 Reckless driving; violation; classification; license; surrender; aiding and abetting

A. A person who drives a vehicle in reckless disregard for the safety of persons or property is guilty of reckless driving.

B. A person who is convicted of reckless driving is guilty of a class 2 misdemeanor.

C. In addition, the judge may require the surrender to a police officer of any driver license of the convicted person, shall report the conviction to the department and may order the driving privileges of the person to be suspended for a period of not more than ninety days. On receipt of the abstract of conviction and order, the department shall suspend the driving privilege of the person for the period of time ordered by the judge.

D. If a person who is convicted of a violation of this section has been previously convicted of a violation of this section, section 13-1102 or section 13-1103, subsection A, paragraph 1, in the driving of a vehicle, or section 28-694, 28-708, 28-1381, 28-1382 or 28-1383 within a period of twenty-four months:

1. The person is guilty of a class 1 misdemeanor.

2. The person is not eligible for probation, pardon, suspension of sentence or release on any basis until the person has served not less than twenty days in jail.

3. The judge may require the surrender to a police officer of any driver license of the person and shall immediately forward the abstract of conviction to the department.

4. On receipt of the abstract of conviction, the department shall suspend the driving privilege of the person for one year.

E. A person who knowingly aids or abets another person in the commission of a violation of this section is guilty of a class 2 misdemeanor, except that a second or subsequent violation within a period of twenty-four months is a class 1 misdemeanor.

F. In applying the twenty-four month period provision of subsection D of this section, the dates of the commission of the offense shall be the determining factor, irrespective of the sequence in which the offenses were committed. A second or subsequent violation for which a conviction occurs as provided in this section does not include a conviction for an offense arising out of the same series of acts.

G. On pronouncement of a jail sentence under this section, and after the court receives confirmation that the person is employed or is a student, the court may provide in the sentence that if the defendant is employed or is a student the defendant can continue employment or schooling for not more than twelve hours per day nor more than five days per week. The defendant shall spend the remaining days or parts of days in jail until the sentence is served and shall be allowed out of jail only long enough to complete the defendant's actual hours of employment or schooling.

H. After completing not less than forty-five consecutive days of the suspension period required by subsection D of this section, a person whose driving privilege is suspended for a violation of this section and who is sentenced pursuant to subsection D of this section may apply to the department for a restricted driver license that allows the person to operate a motor vehicle during the period of suspension subject to the restrictions described in section 28-144.

§ 28-694 Wrong-way driving; civil penalty; traffic survival school; definition

A. A person who drives the wrong way on a controlled access highway commits wrong-way driving.

B. A person who is found responsible for a violation of this section is subject to a civil penalty of five hundred dollars.

C. A person who is found responsible for a violation of this section shall attend and successfully complete approved traffic survival school educational sessions that are designed to improve the safety and habits of drivers.

D. For the purposes of this section, "wrong way" means vehicular movement that is in a direction opposing the legal flow of traffic. Wrong way does not include median crossing or a collision where a motor vehicle comes to a stop facing the wrong way.

§ 28-695 Aggressive driving; violation; classification; definition

A. A person commits aggressive driving if both of the following occur:

1. During a course of conduct the person commits a violation of either section 28-701, subsection A or section 28-701.02 and at least two of the following violations:

(a) Failure to obey traffic control devices as provided in section 28-644.

(b) Overtaking and passing another vehicle on the right by driving off the pavement or main traveled portion of the roadway as provided in section 28-724.

(c) Unsafe lane change as provided in section 28-729.

(d) Following a vehicle too closely as provided in section 28-730.

(e) Failure to yield the right-of-way as provided in article 9 of this chapter.

2. The person's driving is an immediate hazard to another person or vehicle.

B. A person convicted of aggressive driving is guilty of a class 1 misdemeanor.

C. In addition to any other penalty prescribed by law:

1. A person convicted of a violation of this section shall attend and successfully complete approved traffic survival school educational sessions that are designed to improve the safety and habits of drivers and that are approved by the department.

2. The court shall forward the abstract of conviction to the department and may order the department to suspend the person's driving privilege for thirty days.

D. If a person who is convicted of a violation of this section has been previously convicted of a violation of this section within a period of twenty-four months:

1. The person is guilty of a class 1 misdemeanor.

2. In addition to any other penalty prescribed by law, the court shall forward the abstract of conviction to the department. On receipt of the abstract of conviction, the department shall suspend the driving privilege of the person for one year.

E. The dates of the commission of the offense determine whether subsection D of this section applies. A second or subsequent violation for which a conviction occurs as provided in this section does not include a conviction for an offense arising out of the same series of acts.

F. After completing not less than forty-five consecutive days of the suspension period required by subsection D of this section, a person whose driving privilege is suspended for a violation of this section and who is sentenced pursuant to subsection D of this section may apply to the department for a restricted driver license that allows the person to operate a motor vehicle during the period of suspension subject to the restrictions described in section 28-144.

G. For the purposes of this section, "course of conduct" means a series of acts committed during a single, continuous period of driving.

Article 6 Speed Restrictions

§ 28-701 Reasonable and prudent speed; prima facie evidence; exceptions

A. A person shall not drive a vehicle on a highway at a speed greater than is reasonable and prudent under the circumstances, conditions and actual and potential hazards then existing. A person shall control the speed of a vehicle as necessary to avoid colliding with any object, person, vehicle or other conveyance on, entering or adjacent to the highway in compliance with legal requirements and the duty of all persons to exercise reasonable care for the protection of others.

B. Except as provided in subsections C and D of this section or except if a special hazard requires a lesser speed, any speed in excess of the following speeds is prima facie evidence that the speed is too great and therefore unreasonable:

1. Fifteen miles per hour approaching a school crossing.

2. Twenty-five miles per hour in a business or residential district.

3. Sixty-five miles per hour in other locations.

C. The speed limits prescribed in this section may be altered as authorized in sections 28-702 and 28-703.

D. The maximum speed provided in this section is reduced to the speed that is reasonable and prudent under the conditions and with regard to the actual and potential hazards then existing, including the following conditions:

1. Approaching and crossing an intersection or railroad crossing.

2. Approaching and going around a curve.

3. Approaching a hillcrest.

4. Traveling on a narrow or winding roadway.

5. A special hazard exists with respect to pedestrians or other traffic or by reason of weather or highway conditions.

E. A person shall not drive a motor vehicle at a speed that is less than the speed that is reasonable and prudent under existing conditions unless the speed that is reasonable and prudent exceeds the maximum safe operating speed of the lawfully operated implement of husbandry.

§ 28-701.02 Excessive speeds; classification

A. A person shall not:

1. Exceed thirty-five miles per hour approaching a school crossing.

2. Exceed the posted speed limit in a business or residential district by more than twenty miles per hour, or if no speed limit is posted, exceed forty-five miles per hour.

3. Exceed the posted speed limit by more than twenty miles per hour in other locations.

B. A person who violates subsection A of this section is guilty of a class 3 misdemeanor.

C. A person who is charged with a violation of this section may not be issued a civil complaint for a violation of section 28-701 if the civil complaint alleges a violation arising out of the same circumstances.

§ 28-702 State highway speed limits

A. If the director determines on the basis of an engineering and traffic investigation that any maximum speed limit is greater or less than is reasonable or safe under the conditions found to exist on any part of a state highway, the director may determine and declare a reasonable and safe maximum speed limit or varying speed limits for the location.

B. The maximum speed limit determined pursuant to this section is effective when appropriate signs giving notice of the maximum speed limit are erected.

C. The director may declare a maximum speed limit that is determined pursuant to this section to be effective at all times or at such times as indicated on the speed limit signs. The director may establish varying speed limits for different times of day, different types of vehicles, varying weather conditions and other factors bearing on safe speeds. The varying limits are effective when posted on appropriate fixed or variable signs.

§ 28-702.01 Waste of a finite resource; civil penalties; urbanized areas; definition

A. If the maximum speed limit on a public highway in this state is at least thirty miles per hour in an area that is outside of an urbanized area, a person shall not drive a motor vehicle at a speed in excess of the posted speed limit on that highway. If the maximum speed limit on a public highway in this state is at least forty miles per hour in an urbanized area, a person shall not drive a motor vehicle at a speed in excess of the posted speed limit on that highway. If the speed at which the person is alleged to have driven as provided in section 28-707, subsection A or the speed at which the court finds the person drove is not more than ten miles per hour in excess of the posted speed limit, the offense may be designated as the waste of a finite resource and is a civil traffic violation subject to subsection B of this section.

B. If a person is found responsible for a civil traffic violation pursuant to subsection A 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 judgment for the violation to the department.

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 $15 plus the surcharges imposed pursuant to sections 12-116.01 and 12-116.02.

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

C. If the maximum speed limit on a public highway in this state is at least thirty miles per hour in an area that is outside of an urbanized area, a person shall not drive a motor vehicle at a speed in excess of the posted speed limit on that highway. If the maximum speed limit on a public highway in this state is at least forty miles per hour in an urbanized area, a person shall not drive a motor vehicle at a speed in excess of the posted speed limit on that highway. If the speed at which the person is alleged to have driven as provided in section 28-707, subsection A or the speed at which the court finds the person drove is more than ten miles per hour in excess of the posted speed limit, the offense is designated as a civil traffic violation and the person is subject to a civil penalty of not more than the amount provided in section 28-1598.

D. For the purposes of this section, "urbanized area" has the same meaning prescribed in section 28-702.04.

§ 28-702.03 Maximum speed limit violation on interstate highway system in another state; effect

If a resident of this state is convicted of violating the maximum speed limit of fifty-five miles per hour on the interstate system highways of another state and the speed at which the person is alleged to have driven is sixty-five miles per hour or less:

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.

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 the insurer shall not cancel or refuse to renew a policy of insurance because of the violation.

§ 28-702.04 Maximum speed limit on interstate highways outside urbanized areas and within certain counties; definition

A. Except as provided in subsections C and D of this section, the speed limit for all types of motor vehicles is sixty-five miles per hour on the interstate system highways located outside of an urbanized area with a population of fifty thousand or more persons, except that the director may declare a lower speed limit on the highways pursuant to section 28-702.

B. A person shall not drive a motor vehicle at a speed in excess of the maximum speed limit prescribed by this section.

C. The director may order the increase of the maximum speed limit prescribed in subsection A of this section to seventy-five miles per hour on an individual interstate system highway subject to this section or on all of the interstate system highways in this state as prescribed in section 28-702.

D. The speed limit for all types of motor vehicles is at least sixty-five miles per hour on the interstate system highways located in a county that has a population of three million or more persons unless all of the following apply:

1. A reduction in the speed limit for operational efficiency is necessary as determined by a department-approved third-party engineering study or road safety assessment.

2. An opportunity for public input is provided.

3. The overall system capacity and transportation mobility will not be reduced.

E. A violation of this section is a civil traffic violation, and the person is subject to a civil penalty that does not exceed the amount provided by section 28-1598.

F. For the purposes of this section, "urbanized area" means an urbanized area as defined in the decennial census by the United States bureau of the census.

§ 28-703 Alteration of speed limits by local authority

A. If a local authority determines on the basis of an engineering and traffic investigation that the maximum speed permitted under this article is greater or less than is reasonable or safe under the conditions found to exist on any part of a street or highway in its jurisdiction, the local authority may determine and declare a reasonable and safe maximum speed limit at the location and, based on the investigation, may:

1. Decrease the limit at intersections.

2. Increase the limit within any business or residence district to not more than sixty-five miles per hour.

3. Decrease the limit outside any business or residence district.

4. Increase or decrease the limit on streets that are adjacent to or otherwise surrounding school grounds or public parks.

B. A local authority shall determine by an engineering and traffic investigation the proper maximum speed for all arterial streets in its jurisdiction and shall declare a reasonable and safe maximum limit on the arterial streets in its jurisdiction that may be more or less than the maximum speed permitted under this article for a business or residence district.

C. A local authority may decrease the limit to not less than fifteen miles per hour on an unpaved street or road within any district in its jurisdiction if the local authority determines that the limit is necessary to achieve or maintain national ambient air quality standards.

D. An altered limit established as provided for in this section is effective at all times, or during hours of darkness, or at other times as may be determined if appropriate signs giving notice of the altered limit are erected on the street or highway.

E. The alteration of maximum speed limits on state highways or extensions of state highways in a municipality by a local authority is not effective until the director approves the alteration.

F. A local authority shall not make more than six alterations per mile along a street or highway pursuant to this section, except for reduced limits at intersections. The difference between adjacent limits shall not be more than ten miles per hour except for school crossings.

§ 28-703.01 End of speed zone; signs required

The agency or authority establishing a speed zone under section 28-702 or 28-703 is responsible for erecting:

1. At the beginning of each zone a sign designating the maximum allowable speed within the zone.

2. At the end of each zone a sign bearing either the legend "resume speed" or setting forth the new maximum speed limit.

§ 28-703.02 Establishing speed on multiple lane highways

On multiple lane highways with two or more separate roadways, different prima facie speed limits may be established for different roadways under any of the procedures specified in sections 28-702 and 28-703.

§ 28-704 Minimum speed limits; requirement to turn off roadway

A. A person shall not drive a motor vehicle at such a slow speed as to impede or block the normal and reasonable movement of traffic except when either of the following applies:

1. Reduced speed is necessary for safe operation or in compliance with law.

2. The reasonable flow of traffic exceeds the maximum safe operating speed of a lawfully operated implement of husbandry.

B. If the director or local authorities within their respective jurisdictions determine on the basis of an engineering and traffic investigation that slow speeds on any part of a highway consistently impede the normal and reasonable movement of traffic, the director or local authority may determine and declare a minimum speed limit below which a person shall not drive a vehicle except when necessary for safe operation or in compliance with law.

C. If a person is driving a vehicle at a speed less than the normal flow of traffic at the particular time and place on a two-lane highway where passing is unsafe and if five or more vehicles are formed in a line behind the vehicle, the person shall turn the vehicle off the roadway at the nearest place designated as a turnout by signs erected by the director or a local authority, or wherever sufficient area for a safe turnout exists, in order to allow the vehicles following to proceed. For the purposes of this subsection:

1. "Turnout" means a widened place in the street for vehicles to pass each other or temporarily park and includes a right turn lane.

2. "Vehicle":

(a) Means a device in, on or by which a person or property is or may be transported or drawn on a public highway.

(b) Includes all of the following:

(i) Electric bicycles, electric miniature scooters, electric standup scooters and devices moved by human power.

(ii) Personal delivery devices.

(iii) Personal mobile cargo carrying devices.

§ 28-705 Special speed limitation; motor driven cycles

A person shall not operate a motor driven cycle at any time provided in section 28-922 at a speed of more than thirty-five miles per hour unless the motor driven cycle is equipped with a head lamp or head lamps that are adequate to reveal a person or vehicle at a distance of three hundred feet ahead.

§ 28-706 Special speed limitations

A. A person shall not drive a vehicle equipped with solid rubber or cushion tires at a speed of more than ten miles per hour.

B. A person shall not drive a vehicle over any bridge or other elevated structure constituting a part of a highway at a speed that is greater than the maximum speed that can be maintained with safety to the bridge or structure if the structure is signposted as provided in this section.

C. On request from any local authority or on the director's own initiative, the director may conduct an investigation of any bridge or other elevated structure constituting a part of a highway. If the director finds that the structure cannot safely withstand vehicles traveling at the speed otherwise permissible under this article, the director shall:

1. Determine and declare the maximum speed of vehicles that the structure can withstand.

2. Cause or permit suitable signs stating the maximum speed to be erected and maintained at a distance of three hundred feet before each end of the structure.

D. At the trial of a person charged with a violation of this section, proof of a determination of the maximum speed by the director and the existence of the signs are conclusive evidence of the maximum speed that can be maintained with safety to the bridge or structure.

§ 28-707 Charging speed violation; burden of proof; findings

A. In a charge of violating a speed restriction in this article, the complaint shall specify all of the following:

1. The speed at which the defendant is alleged to have driven and the maximum speed applicable within the district or at the location.

2. The identification of the defendant.

3. The date and time of the alleged violation.

4. The location of the alleged violation.

B. The provision of this article declaring maximum speed limitations does not relieve the plaintiff in any civil action, other than a civil action to impose a civil penalty, from the burden of proving negligence on the part of the defendant as the proximate cause of an accident.

C. If a person is charged with a criminal offense, except for excessive speed under section 28-701.02, or cited for a civil traffic violation under this article and if the person is operating a commercial motor vehicle as defined in section 28-3001, the court, on conviction of the offense or on adjudication of the civil traffic complaint, shall make a finding based on either an admission or the evidence as to whether the speed that the vehicle was operated was fifteen miles per hour or more over the speed limit.

§ 28-708 Racing on highways; aiding and abetting; violation; classification; exception; definitions

A. A person shall not drive a vehicle or participate in any manner in a race, speed competition or contest, drag race or acceleration contest, test of physical endurance or exhibition of speed or acceleration or for the purpose of making a speed record on a street or highway.

B. A person who violates this section is guilty of a class 1 misdemeanor. If a person is convicted of a second or subsequent violation of this section within twenty-four months after a first conviction, the person is guilty of a class 6 felony and is not eligible for probation, pardon, suspension of sentence or release on any other basis until the person has served not less than ten days in jail or prison.

C. A person who knowingly aids or abets another person in the commission of a violation of this section is guilty of a class 2 misdemeanor, except that a second or subsequent violation within a period of twenty-four months is a class 1 misdemeanor.

D. A person who is convicted of a first violation of this section shall pay a fine of not less than $250 and may be ordered by the court to perform community restitution.

E. A person who is convicted of a subsequent violation of this section shall pay a fine of not less than $500 and may be ordered by the court to perform community restitution.

F. On pronouncement of a jail sentence under this section and in cases of extreme hardship, the court may provide in the sentence that if the defendant is employed or attending school and can continue employment or school the defendant may continue the employment or school for not more than twelve hours per day nor more than five days per week, and the defendant shall spend the remaining days or parts of days in jail until the sentence is served. The court may allow the defendant to be out of jail only long enough to complete the defendant's actual hours of employment or school.

G. If a person is convicted of violating this section, the judge may require the surrender to a police officer of any driver license of the person and immediately forward the abstract of conviction to the department. On a first conviction, the judge may order the suspension of the driving privileges of the person for a period of not more than ninety days. In the case of a first conviction and on receipt of the abstract of conviction and order of the court, the department shall suspend the driving privileges of the person for the period of time ordered by the judge. In the case of a second or subsequent conviction for an offense committed within a period of twenty-four months and on receipt of the abstract of conviction, the department shall suspend the driving privileges of the person for one year.

H. The director may authorize in writing an organized and properly controlled event to use a highway or part of a highway even though it is prohibited by this section. The authorization shall specify the time of the event, the highway or part of a highway to be used and any special conditions the director may require for the particular event.

I. After completing not less than forty-five consecutive days of the suspension period required by subsection F of this section, a person whose driving privilege is suspended for a violation of this section and who is sentenced pursuant to subsection F of this section may apply to the department for a restricted driver license that allows the person to operate a motor vehicle during the period of suspension subject to the restrictions described in section 28-144.

J. For the purposes of this section:

1. "Drag race" means either:

(a) The operation of two or more vehicles from a point side by side at accelerating speeds in a competitive attempt to outdistance each other.

(b) The operation of one or more vehicles over a common selected course and from the same point for the purpose of comparing the relative speeds or power of acceleration of the vehicle or vehicles within a certain distance or time limit.

2. "Racing" means the use of one or more vehicles in an attempt to outgain or outdistance another vehicle or prevent another vehicle from passing.

§ 28-709 Maximum speed limit for large vehicles and vehicles with trailers

A. Unless a lower maximum speed limit is posted or the department designates a greater maximum speed limit pursuant to subsection B of this section, a person shall not drive either of the following on a highway in this state at a speed that is greater than sixty-five miles per hour:

1. A motor vehicle or vehicle combination with a declared gross weight of more than twenty-six thousand pounds, excluding a motor vehicle designed for carrying sixteen or more passengers, including the driver. For the purposes of this paragraph, "declared gross weight" and "vehicle combination" have the same meaning prescribed in section 28-5431.

2. A vehicle that is drawing a pole trailer that weighs six thousand or more pounds.

B. If the department determines on the basis of an engineering and traffic investigation of a highway under its jurisdiction that the designation of a maximum speed limit for vehicles prescribed in subsection A of this section that is greater than sixty-five miles per hour would facilitate the safe and orderly movement of traffic, the department may designate such a maximum speed for travel of those vehicles and shall erect signs at reasonable intervals giving notice of the speed limitation.

§ 28-710 State highway work zone safety; civil penalty; fund

A. In a state highway work zone as defined in section 28-652 that is designated as a state highway work zone by traffic control devices indicating the beginning and end of the state highway work zone and in which workers are not present, a person shall not drive a vehicle at a speed that is greater than the speed allowed by traffic control devices.

B. In a state highway work zone as defined in section 28-652 that is designated as a state highway work zone by traffic control devices indicating the beginning and end of the state highway work zone and in which workers are present, a person shall not drive a vehicle at a speed that is greater than the speed allowed by traffic control devices. If a person is found responsible for a civil traffic violation under this subsection, the person is subject to a civil penalty equal to the amount of the civil penalty for the same speeding violation committed in a state highway work zone in which workers are not present and shall pay an additional assessment equal to the amount of that civil penalty. The court shall collect the additional assessment at the same time the court collects the civil penalty. Partial payments of the total amount due pursuant to this subsection shall be divided according to the proportion that the civil penalty, the surcharges levied pursuant to sections 12-116.01 and 12-116.02 and the additional assessment imposed pursuant to this subsection represent of the total amount due. The court and the department shall treat failure to pay the additional assessment imposed pursuant to this subsection in the same manner as failure to pay a civil penalty, including taking action against the person's driver license or permit or privilege to drive pursuant to sections 28-1601, 28-3153 and 28-3305.

C. A state highway work zone safety fund is established consisting of monies deposited pursuant to subsection D, paragraph 1 of this section. The governor's office of highway safety shall administer the fund. The monies in the fund are continuously appropriated. Monies in the fund shall be used to establish and maintain a public education campaign for highway work zone safety.

D. If a person is found responsible for a violation of subsection B of this section in a justice court or the superior court, the court shall transmit monies received to pay the additional assessment to the county treasurer. If a person is found responsible for a violation of subsection B of this section in a municipal court, the court shall transmit the monies received to pay the additional assessment to the city treasurer. Notwithstanding section 28-1554, the city or county treasurer shall transmit the monies received to pay the additional assessment to the state treasurer. The state treasurer shall deposit the monies received to pay the additional assessment as follows:

1. Fifty per cent in the state highway work zone safety fund established by this section.

2. Fifty per cent in the state highway fund established by section 28-6991.

Article 7 Driving on Right Side of Roadway, Overtaking and Passing

§ 28-721 Driving on right side of roadway; driving on shoulder; exceptions; education

A. On all roadways of sufficient width, a person shall drive a vehicle on the right half of the roadway except as follows:

1. When overtaking and passing another vehicle proceeding in the same direction under the rules governing the movement.

2. When the right half of a roadway is closed to traffic while under construction or repair.

3. On a roadway divided into three marked lanes for traffic under the rules applicable on the roadway.

4. On a roadway designated and signposted for one-way traffic.

B. On all roadways, a person driving a vehicle proceeding at less than the normal speed of traffic at the time and place and under the conditions then existing shall drive the vehicle in the right-hand lane then available for traffic or as close as practicable to the right-hand curb or edge of the roadway, except when overtaking and passing another vehicle proceeding in the same direction or when preparing for a left turn at an intersection or into a private road or driveway.

C. In an age restricted community that is located in an unincorporated area of a county with a population of more than three million persons, a person may drive a golf cart or a neighborhood electric vehicle on a paved shoulder that is adjacent to a roadway or as close as practicable to the right-hand curb or edge of a paved roadway if there is no delineated paved shoulder.

D. Defensive driving school courses that are offered by defensive driving schools operated pursuant to chapter 8, article 7 of this title and traffic survival schools operated pursuant to chapter 8, article 7.1 of this title shall include educational information relating to subsections A and B of this section. The department shall include information relating to subsections A and B of this section in any of the department's examination, information and education materials.

§ 28-722 Passing vehicles proceeding in opposite directions

Drivers of vehicles proceeding in opposite directions shall pass each other to the right, and on roadways having width for not more than one line of traffic in each direction, each driver shall give to the other driver at least one-half of the main traveled portion of the roadway as nearly as possible.

§ 28-723 Overtaking a vehicle on the left

The following rules govern the overtaking and passing of vehicles proceeding in the same direction:

1. The driver of a vehicle overtaking another vehicle proceeding in the same direction shall pass to the left of the vehicle at a safe distance and shall not again drive to the right side of the roadway until safely clear of the overtaken vehicle. Except as provided in section 28-903, the driver may overtake and pass a golf cart or neighborhood electric vehicle pursuant to this paragraph even if the driver's vehicle shares a lane with the golf cart or neighborhood electric vehicle when the overtaking and passing occur.

2. Except when overtaking and passing on the right is permitted, the driver of an overtaken vehicle shall give way to the right in favor of the overtaking vehicle on audible signal or blinking of head lamps at nighttime and shall not increase the speed of the overtaken vehicle until completely passed by the overtaking vehicle.

§ 28-724 Overtaking on the right

A. The driver of a vehicle may overtake and pass on the right of another vehicle only under the following conditions:

1. When the vehicle overtaken is making or about to make a left turn.

2. On a street or highway with unobstructed pavement that is not occupied by parked vehicles and that is of sufficient width for two or more lines of moving vehicles in each direction.

3. On a one-way street or on a roadway on which traffic is restricted to one direction of movement and if the roadway is free from obstructions and of sufficient width for two or more lines of moving vehicles.

B. The driver of a vehicle may overtake and pass another vehicle on the right only under conditions permitting the movement in safety. The driver shall not make the movement by driving off the pavement or main traveled portion of the roadway.

§ 28-725 Limitations on overtaking on the left

A person shall not drive a vehicle to the left side of the center of the roadway in overtaking and passing another vehicle proceeding in the same direction unless the left side is clearly visible and is free of oncoming traffic for a sufficient distance ahead to permit the overtaking and passing to be completed without interfering with the safe operation of any vehicle approaching from the opposite direction or any vehicle overtaken. The overtaking vehicle shall return to the right-hand side of the roadway before coming within one hundred feet of any vehicle approaching from the opposite direction.

§ 28-726 Limitations on driving to left of roadway center

A. A person shall not drive a vehicle to the left side of the roadway under the following conditions:

1. When approaching the crest of a grade or on a curve in the highway where the driver's view is obstructed within such distance as to create a hazard in the event another vehicle might approach from the opposite direction.

2. When approaching within one hundred feet of or traversing any intersection or railroad grade crossing or where appropriate signs or markings have been installed to define a no passing zone.

3. When the view is obstructed on approaching within one hundred feet of any bridge, viaduct or tunnel.

B. The limitations provided in this section do not apply on a one-way roadway.

§ 28-727 No passing zones

The director may determine those portions of a highway where overtaking and passing or driving to the left of the roadway would be especially hazardous and may indicate the beginning and end of the zones by appropriate signs or markings on the roadway. When the signs or markings are in place and clearly visible to an ordinarily observant person, every driver of a vehicle shall obey the directions of the signs or markings.

§ 28-728 One-way roadways and rotary traffic islands

A. The director may designate any highway or any separate roadway under the director's jurisdiction for one-way traffic and shall erect appropriate signs giving notice of one-way traffic.

B. On a roadway designated and signposted for one-way traffic, a person shall drive a vehicle only in the direction designated.

C. A person shall drive a vehicle passing around a rotary traffic island only to the right of the island.

§ 28-729 Driving on roadways laned for traffic

If a roadway is divided into two or more clearly marked lanes for traffic, the following rules in addition to all others consistent with this section apply:

1. Except as provided in sections 28-778 and 28-903, a person shall drive a vehicle as nearly as practicable entirely within a single lane and shall not move the vehicle from that lane until the driver has first ascertained that the movement can be made with safety.

2. On a roadway that is divided into three lanes, a person shall not drive a vehicle in the center lane except when overtaking and passing another vehicle where the roadway is clearly visible and the center lane is clear of traffic within a safe distance, or in preparation for a left turn or where the center lane is at the time allocated exclusively to traffic moving in the direction the vehicle is proceeding and is signposted to give notice of the allocation.

3. Official signs may be erected directing slow-moving traffic to use a designated lane or designating those lanes to be used by traffic moving in a particular direction regardless of the center of the roadway, and drivers of vehicles shall obey the directions of every sign.

§ 28-730 Following too closely

A. The driver of a motor vehicle shall not follow another vehicle more closely than is reasonable and prudent and shall have due regard for the speed of the vehicles on, the traffic on and the condition of the highway.

B. The driver of a motor truck or motor vehicle that is drawing another vehicle when traveling on a roadway outside of a business or residence district and that is following another motor truck or motor vehicle drawing another vehicle shall leave, if conditions permit, sufficient space so that an overtaking vehicle may enter and occupy the space without danger. This subsection does not prevent a motor truck or motor vehicle drawing another vehicle from overtaking and passing any like vehicle or other vehicles.

C. A person who is driving a motor vehicle in a caravan or motorcade on a roadway outside of a business or residence district, whether or not towing other vehicles, shall allow sufficient space between each vehicle or combination of vehicles to enable any other vehicle to enter and occupy the space without danger. This subsection does not apply to funeral processions.

D. This section does not apply to a demonstration project that the department of transportation conducts if both of the following apply:

1. The demonstration project is on a state highway.

2. The director consults with the department of public safety before the demonstration project is implemented.

§ 28-731 Driving on divided highways

If a highway is divided into two roadways by leaving an intervening space or by a physical barrier or clearly indicated dividing section constructed to impede vehicular traffic, a person shall drive a vehicle only on the right-hand roadway and shall not drive a vehicle over, across or within the dividing space, barrier or section, except through an opening in the physical barrier or dividing section or space or at a crossover or intersection established by public authority.

§ 28-732 Restricted access

A person shall not drive a vehicle onto or from a controlled access roadway except at entrances and exits established by public authority.

§ 28-733 Restrictions on use of controlled access highway

A. The director may, and local authorities by ordinance may, prohibit the use of any part of a controlled access highway under their respective jurisdictions by pedestrians, bicycles or other nonmotorized traffic or by any person operating a motor driven cycle.

B. The director or the local authority adopting the prohibition prescribed in subsection A shall erect and maintain official signs on the applicable controlled access highway. When the signs are erected, a person shall not disobey the restrictions stated on the signs.

§ 28-734 Driving through safety zone

A person shall not drive a vehicle through or within a safety zone.

§ 28-735 Overtaking bicycles; civil penalties

A. When overtaking and passing a bicycle proceeding in the same direction, a person driving a motor vehicle shall exercise due care by leaving a safe distance between the motor vehicle and the bicycle of not less than three feet until the motor vehicle is safely past the overtaken bicycle.

B. If a person violates this section and the violation results in a collision causing:

1. Serious physical injury as defined in section 13-105 to another person, the violator is subject to a civil penalty of up to five hundred dollars.

2. Death to another person, the violator is subject to a civil penalty of up to one thousand dollars.

C. Subsection B of this section does not apply to a bicyclist who is injured in a vehicular traffic lane when a designated bicycle lane or path is present and passable.

§ 28-736 Use of highway lanes; restrictions

A. If the department or a local authority determines on the basis of an engineering and traffic investigation of a highway under its jurisdiction that the designation of a specific lane or lanes for travel of the vehicles prescribed in subsection B of this section would facilitate the safe and orderly movement of traffic, the department or local authority may designate a specific lane or lanes for the travel of those vehicles and shall erect signs at reasonable intervals giving notice of those lanes.

B. The following vehicles shall be driven in the lane or lanes designated pursuant to subsection A of this section if signs are erected giving notice of that designation:

1. A motor vehicle or vehicle combination with a declared gross weight of more than twenty-six thousand pounds, excluding a motor vehicle designed for carrying sixteen or more passengers, including the driver. For the purposes of this paragraph, "declared gross weight" and "vehicle combination" have the same meaning prescribed in section 28-5431.

2. A vehicle that is drawing a pole trailer that weighs six thousand or more pounds.

C. This section does not apply to a driver who is preparing for a left-hand or right-hand turn, who is entering or exiting a highway or who must necessarily drive in a lane other than the designated lane to continue on the driver's intended route.

§ 28-737 High occupancy vehicle lanes; civil penalty; definition

A. Except as provided in sections 28-2416 and 28-2416.01 and subsection B of this section, a person shall not drive a vehicle carrying fewer than two persons, including the driver, in a high occupancy vehicle lane at any time the use of the high occupancy vehicle lane is restricted to vehicles carrying two or more persons, including the driver.

B. Subsection A does not apply to any of the following:

1. During the performance of a tow truck operator's duties, a tow truck operator driving a tow truck.

2. A person driving a motorcycle.

3. A person driving a public transportation vehicle.

4. An authorized emergency vehicle as defined in section 28-101 that is in use by a first responder in the line of duty.

C. A person who violates subsection A of this section is subject to a civil penalty of two hundred dollars.

D. Notwithstanding section 28-1554, one hundred dollars of each civil penalty collected pursuant to subsection C of this section shall be deposited in the state general fund.

E. For the purposes of this section, "public transportation vehicle" means any vehicle that provides a public entity's public transportation service and either:

1. Is owned or operated by the public entity.

2. Is operated under a contract with the public entity.

Article 8 Turning, Starting and Signals on Stopping and Turning

§ 28-751 Required position and method of turning

The driver of a vehicle intending to turn shall do so as follows:

1. Right turns. Both the approach for a right turn and a right turn shall be made as close as practicable to the right-hand curb or edge of the roadway. The driver of a vehicle or combination of vehicles with a total length of at least forty feet or a total width of at least ten feet may deviate to the extent necessary from the lane into which the driver is making a right turn in a manner that avoids contact with another person or vehicle.

2. Left turns. The driver of a vehicle intending to turn left shall approach the turn in the extreme left-hand lane lawfully available to traffic moving in the direction of travel of the vehicle. If practicable the driver shall make the left turn from the left of the center of the intersection and shall make the turn to the left lane immediately available for the driver's direction of traffic. The driver of a vehicle or combination of vehicles with a total length of at least forty feet or a total width of at least ten feet may deviate to the extent necessary from the lane into which the driver is making a left turn in a manner that avoids contact with another person or vehicle.

3. The director or local authorities in their respective jurisdictions may cause markers, buttons or signs to be placed and may require and direct that a different course from that specified in this section be traveled by vehicles turning at an intersection. When markers, buttons or signs are so placed, a driver of a vehicle shall not turn a vehicle other than as directed and required by the markers, buttons or signs.

4. Two-way left turn lanes. If a special lane for making left turns by drivers proceeding in opposite directions has been indicated by official traffic control devices:

(a) A driver shall not make a left turn from any other lane.

(b) A driver shall not drive a vehicle in the lane except if preparing for or making a left turn from or into the roadway or if preparing for or making a u-turn if otherwise permitted by law.

§ 28-752 Limitations on turning around

A person shall not turn a vehicle to proceed in the opposite direction on a curve or on the approach to or near the crest of a grade if the vehicle cannot be seen by the driver of any other vehicle approaching from either direction within five hundred feet.

§ 28-753 Starting parked vehicle

A person shall not start a vehicle that is stopped, standing or parked unless the movement can be made with reasonable safety.

§ 28-754 Turning movements and required signals

A. A person shall not turn a vehicle at an intersection unless the vehicle is in proper position on the roadway as required in section 28-751, or turn a vehicle to enter a private road or driveway or otherwise turn a vehicle from a direct course or move right or left on a roadway unless and until the movement can be made with reasonable safety. A person shall not so turn any vehicle without giving an appropriate signal in the manner provided by this article in the event any other traffic may be affected by the movement.

B. A signal of intention to turn right or left when required shall be given continuously during not less than the last one hundred feet traveled by the vehicle before turning.

C. A person shall not stop or suddenly decrease the speed of a vehicle without first giving an appropriate signal in the manner provided by this article to the driver of any vehicle immediately to the rear when there is opportunity to give the signal.

§ 28-755 Hand or arm signals or mechanical signal

A person shall give a stop or turn signal if required by this article by means of the hand and arm or by a signal lamp or lamps or mechanical signal. If a vehicle is constructed or loaded so that a hand and arm signal would not be visible both to the front and rear of the vehicle, the signals must be given by a lamp or lamps or signal device.

§ 28-756 Method of giving hand and arm signals

A. Except as provided by subsection B, a person shall give all hand and arm signals required by this article from the left side of the vehicle in the following manner, and the signals shall indicate as follows:

1. Left turn. Hand and arm extended horizontally.

2. Right turn. Hand and arm extended upward.

3. Stop or decrease speed. Hand and arm extended downward.

B. A person operating a bicycle may give a right turn signal by extending the right hand and arm horizontally to the right side of the bicycle.

Article 9 Right-of-Way

§ 28-771 Vehicle at intersection; exception; entering freeway

A. When two vehicles enter or approach an intersection from different streets or highways at approximately the same time, the driver of the vehicle on the left shall yield the right-of-way to the vehicle on the right. This subsection does not apply to vehicles approaching or entering an uncontrolled "T" intersection if the vehicle on the left is on a continuing street or highway and the vehicle on the right is on the terminating street or highway. The vehicle on the terminating street or highway shall yield to the vehicle on the continuing street or highway.

B. The right-of-way rule prescribed in subsection A of this section is modified at through highways and otherwise as stated in this article.

C. Intersecting road crossings between the main roadway of a freeway and acceleration lanes, ramps or any other approach roads are not intersections as defined in section 28-601, and subsection A of this section does not control questions of right-of-way at the crossings. A vehicle entering a freeway from an acceleration lane, a ramp or any other approach road shall yield the right-of-way to a vehicle on the main roadway of the freeway entering the merging area at the same time.

§ 28-772 Vehicle turning left at intersection

The driver of a vehicle within an intersection intending to turn to the left shall yield the right-of-way to a vehicle that is approaching from the opposite direction and that is within the intersection or so close to the intersection as to constitute an immediate hazard.

§ 28-773 Intersection entrance

The driver of a vehicle shall stop in obedience to a stop sign as required by section 28-855 and then proceed with caution yielding to vehicles that are not required to stop and that are within the intersection or are approaching so closely as to constitute an immediate hazard.

§ 28-774 Highway access from private road or driveway

The driver of a vehicle about to enter or cross a highway from a private road or driveway shall yield the right-of-way to all closely approaching vehicles on the highway.

§ 28-775 Authorized emergency vehicles; approaching; following fire apparatus; passing stationary vehicles; violation; civil penalties; defensive driving schools; driver license examinations

A. Except when otherwise directed by a police officer, on the immediate approach of an authorized emergency vehicle that is equipped with at least one lighted lamp exhibiting a red or red and blue light or lens visible under normal atmospheric conditions from a distance of five hundred feet to the front of the vehicle and that is giving an audible signal by siren, exhaust whistle or bell, the driver of another vehicle shall:

1. Yield the right-of-way.

2. Immediately drive to a position parallel to and as close as possible to the right-hand edge or curb of the roadway clear of any intersection.

3. Stop and remain in the position prescribed in paragraph 2 of this subsection until the authorized emergency vehicle has passed.

B. An authorized emergency vehicle being operated with activated emergency lights and siren is exempt from the requirements of this section.

C. The driver of a vehicle other than one on official business shall not follow any fire apparatus traveling in response to a fire alarm closer than five hundred feet or drive into or park the vehicle within the block where fire apparatus has stopped in answer to a fire alarm.

D. When a police vehicle is giving a visual signal with at least one lighted red or red and blue light or lens and is giving an audible signal by siren, the driver of another vehicle:

1. Shall not approach or drive parallel to the police vehicle.

2. Shall maintain a distance of at least three hundred feet behind any police vehicle involved in an emergency until the police vehicle moves to the lane closest to the right-hand edge or curb of the roadway.

E. If a person who drives a vehicle approaches a stationary vehicle and the stationary vehicle is giving a signal by displaying alternately flashing lights or is displaying warning lights, the person shall do either of the following:

1. If on a highway having at least four lanes with at least two lanes proceeding in the same direction as the approaching vehicle, proceed with due caution and if possible, with due regard to safety and traffic conditions, yield the right-of-way by making a lane change into a lane not adjacent to that of the stationary vehicle.

2. If changing lanes would be impossible or unsafe, proceed with due caution and reduce the speed of the vehicle, maintaining a safe speed for road conditions.

F. A person who violates subsection E of this section is subject to a civil penalty of $275, except that the person is subject to:

1. A civil penalty of $500 for a second violation within a period of five years.

2. A civil penalty of $1,000 for a third or subsequent violation within a period of five years.

G. This section does not relieve the driver of an authorized emergency vehicle from the duty to drive with due regard for the safety of all persons using the highway.

H. Defensive driving school courses that are offered by defensive driving schools operated pursuant to chapter 8, article 7 of this title, traffic survival school and any driver education program approved by the department shall include educational information relating to subsections D and E of this section. The department shall include information relating to subsections D and E of this section in any of the department's examination, information or education material.

I. The department shall educate the public about this section periodically throughout the year and maintain information about this section on the department's website.

§ 28-776 Funeral or military procession right-of-way; funeral or military escort vehicles; certification; fee; definitions

A. Pedestrians and the operators of all vehicles, except emergency vehicles, shall yield the right-of-way to each vehicle that is a part of a funeral procession being led by a funeral escort vehicle or a military procession being led by a military escort vehicle. The driver of the funeral escort vehicle or military escort vehicle may direct the drivers of other vehicles in the procession to proceed through any intersection or to make turns or other movements, and the other vehicles may continue to follow and make the turns or other movements as are made by or as directed by the driver of the funeral escort vehicle or military escort vehicle notwithstanding any traffic control device prescribed by statute or local ordinance, except that a driver of a vehicle in the funeral procession or military procession shall not exceed the posted speed limit and shall exercise reasonable and prudent care to avoid colliding with any other vehicle or pedestrian on the roadway. Each vehicle in a funeral procession or military procession shall have its headlights lighted.

B. A driver of a funeral escort vehicle or military escort vehicle who is certified pursuant to subsection D of this section may direct and control the drivers of vehicles in a funeral procession or military procession and any other vehicle in or approaching any intersection to stop, proceed or make the turns or other movements as required without regard to any traffic control device prescribed by statute or local ordinance. Funeral escort vehicles or military escort vehicles may exceed the speed limit by fifteen miles per hour when overtaking processions to direct traffic at the next intersection. A funeral escort vehicle or military escort vehicle shall be equipped with at least one lighted lamp exhibiting a red or red and blue light or lens visible under normal atmospheric conditions from a distance of five hundred feet to the front of the vehicle and an audible signal by bell, siren or exhaust whistle as required under section 28-624.

C. The sheriff in each county shall register funeral escort vehicles and military escort vehicles and issue an identification sticker or plate that is affixed to the vehicle in order to identify the vehicle as a funeral escort vehicle or military escort vehicle. When acting as a funeral escort or military escort, the driver of a properly equipped and registered funeral escort vehicle or military escort vehicle has all of the rights and privileges of a driver of an authorized emergency vehicle proceeding to an emergency call as provided under section 28-624.

D. Within thirty days after receiving an application for approval, the sheriff in each county shall approve or disapprove in writing all markings, emblems, seals and other insignia on a funeral escort vehicle before being displayed. The sheriff may not unreasonably withhold approval. The sheriff shall ensure that the vehicle does not bear markings similar to the vehicle markings used by a law enforcement agency of the federal or state government or a political subdivision of this state or bear words, emblems, seals or other insignia that could cause a reasonable person to confuse the vehicle with a law enforcement vehicle. Beginning October 1, 2008, the right and left sides of a funeral escort vehicle shall be clearly marked with the words "funeral escort" in letters that are at least five inches in height, except that if the funeral escort vehicle is a motorcycle the letters shall be at least two inches in height.

E. The sheriff in each county may certify any person who holds at least a valid class A, B, C, D or M driver license issued by this state as a certified driver of a funeral escort vehicle or military escort vehicle if the person:

1. Completes a training program in motor vehicle safety and traffic control safety as prescribed by the sheriff.

2. Pays the fee that is prescribed by the sheriff for the program and that does not exceed the cost of the program.

F. Within thirty days after receiving an application for approval, the sheriff in each county shall approve or disapprove in writing all uniforms, badges, patches and insignias worn by a certified driver of a funeral escort vehicle before being displayed. The sheriff may not unreasonably withhold approval. Beginning October 1, 2008, the uniform shall contain insignia that identifies the wearer as a funeral escort. The sheriff shall ensure that a uniform, badge, patch or insignia does not bear markings similar to the markings of a law enforcement agency of the federal or state government or a political subdivision of this state or bear the words "sheriff", "police", "deputy", "marshall", "agent" or "officer" or any other word that could cause a reasonable person to confuse a certified driver of a funeral escort vehicle with law enforcement personnel.

G. Each county sheriff shall recognize as valid in that county a registered military escort vehicle or a certified driver of a military escort vehicle, or both, if the registration or certification, or both, occurs in another county in this state pursuant to this section.

H. A person:

1. Shall not receive any compensation for providing a military procession.

2. May only provide a military procession if requested by a United States military member or veteran or the family of a United States military member or veteran.

I. For the purposes of this section:

1. "Funeral procession" means two or more vehicles accompanying the body of a deceased person, including a funeral escort vehicle registered by the sheriff.

2. "Military procession" means two or more vehicles, including a military escort vehicle, accompanying any of the following:

(a) The body of a deceased member of the United States military or a deceased veteran of the United States military.

(b) A member of the United States military who is being deployed or who is returning from deployment.

(c) A person who is being honored at a military event.

(d) A monument honoring United States military members or veterans of the United States military that is being transported in this state.

§ 28-777 Golf carts and neighborhood electric vehicles; vehicles turning right

A person driving a golf cart or a neighborhood electric vehicle pursuant to section 28-721, subsection C shall yield the right-of-way to a vehicle that is traveling in the same direction and that is intending to turn to the right.

§ 28-778 Roundabouts; large trucks; definitions

A. The operator of a vehicle or combination of vehicles with a total length of a least forty feet or a total width of at least ten feet, with due regard for all other traffic, may deviate from the lane in which the operator is driving to the extent necessary to approach and drive through a roundabout.

B. When approaching or driving through a roundabout, a person who is driving a vehicle shall yield the right-of-way to the operator who is driving a vehicle or combination of vehicles with a total length of at least forty feet or a total width of at least ten feet through the roundabout at the same time or so closely in time as to present an immediate hazard and shall slow down or stop if necessary to yield. This subsection does not require a person who is driving a vehicle through a roundabout to yield the right-of-way to the operator of a vehicle or combination of vehicles with a total length of at least forty feet or a total width of at least ten feet that is approaching the roundabout.

C. If two vehicles or combination of vehicles each having a total length of at least forty feet or a total width of at least ten feet approach or drive through a roundabout at the same time or so closely in time as to present an immediate hazard, the driver on the right shall yield the right-of-way to the driver on the left and shall slow down or stop if necessary to yield.

D. The director or local jurisdiction, on highways under the applicable jurisdiction, shall post signs at all roundabouts, whether constructed before, on or after October 30, 2023. The signs shall include both of the following:

1. A yield sign before the roundabout entrance.

2. A sign, as outlined in subsection E of this section, before the roundabout entrance.

E. The department shall:

1. Design a uniform and standard sign to convey the information that large trucks have the right-of-way or that vehicles should yield to large trucks in a roundabout.

2. Develop a uniform standard by which the sign is to be displayed along with the standard yield sign.

F. For the purposes of this section:

1. "Collector street" means a street that serves or is intended to serve as the principal traffic way between large and separated areas or districts and that is the main means of access between arterial streets or as otherwise defined in a local jurisdiction's transportation plan.

2. "Local road" means a street that is usually in a residential area and that provides connectivity between a collector street and an arterial street for local traffic or as otherwise defined in a local jurisdiction's transportation plan.

3. "Roundabout":

(a) Means a circular intersection or junction in which road traffic flows almost continuously in one direction around a central island.

(b) For the purposes of subsection D of this section, does not include an intersection or junction that is located on a local road or a collector street.

Article 10 Pedestrian Rights and Duties

§ 28-791 Pedestrians subject to traffic rules

A. Pedestrians are subject to traffic control signals at intersections as provided in section 28-645 unless required by local ordinance to comply strictly with the signals. At all places other than intersections, pedestrians are accorded the privileges and are subject to the restrictions stated in this article.

B. A local authority may require by ordinance that pedestrians strictly comply with the directions of an official traffic control signal and may prohibit by ordinance pedestrians from crossing a roadway in a business district or crossing a designated highway except in a crosswalk.

§ 28-792 Right-of-way at crosswalk

A. Except as provided in section 28-793, subsection B, if traffic control signals are not in place or are not in operation, the driver of a vehicle shall yield the right-of-way, slowing down or stopping if need be in order to yield, to a pedestrian crossing the roadway within a crosswalk when the pedestrian is on the half of the roadway on which the vehicle is traveling or when the pedestrian is approaching so closely from the opposite half of the roadway as to be in danger. A pedestrian shall not suddenly leave any curb or other place of safety and walk or run into the path of a vehicle that is so close that it is impossible for the driver to yield.

B. If a vehicle is stopped at a marked crosswalk or at an unmarked crosswalk at an intersection to permit a pedestrian to cross the roadway, the driver of another vehicle approaching from the rear shall not overtake and pass the stopped vehicle.

§ 28-793 Crossing at other than crosswalk

A. A pedestrian crossing a roadway at any point other than within a marked crosswalk or within an unmarked crosswalk at an intersection shall yield the right-of-way to all vehicles on the roadway.

B. A pedestrian crossing a roadway at a point where a pedestrian tunnel or overhead pedestrian crossing has been provided shall yield the right-of-way to all vehicles on the roadway.

C. Between adjacent intersections at which traffic control signals are in operation, pedestrians shall not cross at any place except in a marked crosswalk.

§ 28-794 Drivers to exercise due care

Notwithstanding the provisions of this chapter every driver of a vehicle shall:

1. Exercise due care to avoid colliding with any pedestrian on any roadway.

2. Give warning by sounding the horn when necessary.

3. Exercise proper precaution on observing a child or a confused or incapacitated person on a roadway.

§ 28-795 Pedestrians to use right half of crosswalk

Pedestrians shall move expeditiously, when practicable, on the right half of crosswalks.

§ 28-796 Pedestrian on roadways

A. If sidewalks are provided, a pedestrian shall not walk along and on an adjacent roadway.

B. If sidewalks are not provided, a pedestrian walking along and on a highway shall walk when practicable only on the left side of the roadway or its shoulder facing traffic that may approach from the opposite direction.

C. A person shall not stand in a roadway for the purpose of soliciting a ride from the driver of a vehicle.

§ 28-797 School crossings; civil penalty; assessment; definition

A. The director with respect to state highways, the county board of supervisors with respect to county highways or the governing body of a city or town or its designee with respect to city or town streets, by and with the advice of the school district governing board, may mark or cause to be marked by the department or local authorities crosswalks in front of each school building or school grounds abutting the locations where children are required to cross the highway or street.

B. The department or local authorities may approve additional crossings across highways not abutting on school grounds on application of school authorities and with written satisfactory assurance given the department or local authorities that guards will be maintained by the school district at the crossings to enforce the proper use of the crossing by school children.

C. The manual prescribed in section 28-641 shall provide for yellow marking of the school crossing, yellow marking of the center line of the roadway and the erection of portable signs indicating that vehicles must stop when persons are in the crossing. The manual shall also provide the type and wording of portable signs indicating that school is in session and that the civil penalty for a violation of this section will be doubled when the signs are present and permanent signs that warn of the approach to school crossings.

D. When the school crossings are established, school authorities shall place within the highway the portable signs indicating that school is in session. This placement shall be not more than three hundred feet from each side of the school crossing. In addition, portable signs indicating that the driver shall stop when children are in the crosswalk shall be placed at school crossings. School authorities shall maintain these signs when school is in session and shall cause them to be removed within one hour after the end of a school session or pursuant to an agreement with a city or town.

E. Notwithstanding any other law:

1. An agency of appropriate jurisdiction may establish a school crossing on an unpaved highway or street adjacent to a school when the agency determines the need for the school crossing on the basis of a traffic study. School crossings on unpaved highways and streets shall be marked by the use of signs as prescribed in the manual prescribed in section 28-641.

2. A local authority may establish a school crossing at an intersection containing a traffic control signal if the local authority determines the need for a school crossing on the basis of a traffic study.

F. A vehicle shall not proceed at a speed of more than fifteen miles per hour between the portable signs placed on the highway indicating that there shall be no passing, that school is in session and that the driver shall stop when children are in the crosswalk.

G. When a school authority places and maintains the required portable signs indicating that there shall be no passing, that school is in session and that the driver shall stop when children are in the crosswalk, all vehicles shall come to a complete stop at the school crossing when the crosswalk is occupied by a person.

H. A vehicle approaching the crosswalk shall not proceed at a speed of more than fifteen miles per hour between the portable signs placed on the highway indicating that there shall be no passing, that school is in session, that the driver shall stop when children are in the crosswalk and that the civil penalty will double.

I. When a school authority places and maintains the required portable signs indicating that there shall be no passing, that school is in session, that the driver shall stop when children are in the crosswalk and that the civil penalty will double, all vehicles shall come to a complete stop at the school crossing when a person is in the crosswalk.

J. If a person is found responsible for a violation of subsection F or G of this section, the person is subject to a civil penalty.

K. If a person is found responsible for a violation of subsection H or I of this section, the person is subject to a civil penalty and shall pay an additional assessment equal to the amount of the civil penalty. The additional assessment is not subject to any surcharge.

L. The court shall collect the additional assessment imposed pursuant to subsection K of this section at the same time the court collects the civil penalty. Partial payments of the total amount due pursuant to this subsection shall be divided according to the proportion that the civil penalty, the surcharges levied pursuant to sections 12-116.01 and 12-116.02 and the additional assessment imposed pursuant to this section represent of the total amount due. The court and the department shall treat failure to pay the additional assessment imposed pursuant to this subsection in the same manner as failure to pay a civil penalty, including taking action against the person's driver license or permit or privilege to drive pursuant to sections 28-1601, 28-3153 and 28-3305.

M. If a person is found responsible pursuant to subsection K of this section in a justice court or superior court, the court shall transmit monies received to pay the additional assessment to the county treasurer. If a person is found responsible pursuant to subsection K of this section in a municipal court, the court shall transmit the monies received to pay the additional assessment to the city treasurer. The city or county treasurer shall deposit the monies received to pay the additional assessment in a fund to pay for costs related to enforcement of this section.

N. For the purposes of this section, "school is in session", when used either in reference to the period of time or to signs, means during school hours or while children are going to or leaving school during opening or closing hours.

Article 11 Operation of Bicycles

§ 28-811 Parent and guardian responsibility; applicability of article

A. The parent of a child and the guardian of a ward shall not authorize or knowingly permit the child or ward to violate this chapter.

B. Except as otherwise provided in this article, this chapter applies to a bicycle when it is operated on a highway or on a path set aside for the exclusive use of bicycles.

§ 28-812 Applicability of traffic laws to bicycle riders

A. A person riding a bicycle on a roadway or on a shoulder adjoining a roadway is granted all of the rights and is subject to all of the duties applicable to the driver of a vehicle by this chapter and chapters 4 and 5 of this title, except special rules in this article and except provisions of this chapter and chapters 4 and 5 of this title that by their nature can have no application.

B. If a person is found responsible for a civil traffic violation resulting from operating a bicycle:

1. A department or agency of this state may not consider the violation for the purpose of determining whether the person's driver license should be suspended or revoked. A court may not transmit an abstract of the record of the violation to the department of transportation.

2. An insurer may not consider the violation as a moving traffic violation against the person for the purpose of establishing rates for motor vehicle liability insurance or determining the insurability of the person. An insurer may not cancel or refuse to renew an insurance policy because of the violation.

3. A report may not be made under section 28-1559, subsection B.

§ 28-813 Riding on bicycles

A. A person propelling a bicycle shall not ride other than on or astride a permanent and regular seat attached to the bicycle.

B. A person shall not use a bicycle to carry more persons at one time than the number for which it is designed and equipped.

§ 28-814 Clinging to vehicle

A person riding on a bicycle, coaster, sled or toy vehicle or on roller skates shall not attach the bicycle, coaster, sled, toy vehicle or roller skates or that person to a vehicle on a roadway.

§ 28-815 Riding on roadway and bicycle path; bicycle path usage

A. A person riding a bicycle on a roadway at less than the normal speed of traffic at the time and place and under the conditions then existing shall ride as close as practicable to the right-hand curb or edge of the roadway, except under any of the following situations:

1. If overtaking and passing another bicycle or vehicle proceeding in the same direction.

2. If preparing for a left turn at an intersection or into a private road or driveway.

3. If reasonably necessary to avoid conditions, including fixed or moving objects, parked or moving vehicles, bicycles, pedestrians, animals or surface hazards.

4. If the lane in which the person is operating the bicycle is too narrow for a bicycle and a vehicle to travel safely side by side within the lane.

B. Persons riding bicycles on a roadway shall not ride more than two abreast except on paths or parts of roadways set aside for the exclusive use of bicycles.

C. A path or lane that is designated as a bicycle path or lane by state or local authorities is for the exclusive use of bicycles even though other uses are permitted pursuant to subsection D of this section or are otherwise allowed by state or local authorities.

D. A person shall not operate, stop, park or leave standing a vehicle, including a neighborhood occupantless electric vehicle, in a path or lane designated as a bicycle path or lane by a state or local authority except in the case of emergency or for crossing the path or lane to gain access to a public or private road or driveway.

E. Subsection D of this section does not prohibit the use of the path or lane by the appropriate local authority.

§ 28-816 Carrying article on bicycle

A person shall not carry a package, bundle or article while operating a bicycle if the package, bundle or article prevents the driver from keeping at least one hand on the handlebars.

§ 28-817 Bicycle equipment

A. A bicycle that is used at nighttime shall have a lamp on the front that emits a white light visible from a distance of at least five hundred feet to the front and a red reflector on the rear of a type that is approved by the department and that is visible from all distances from fifty feet to three hundred feet to the rear when the reflector is directly in front of lawful upper beams of head lamps on a motor vehicle. A bicycle may have a lamp that emits a red light visible from a distance of five hundred feet to the rear in addition to the red reflector.

B. A person shall not operate a bicycle that is equipped with a siren or whistle.

C. A bicycle shall be equipped with a brake that enables the operator to make the braked wheels skid on dry, level, clean pavement.

§ 28-818 Bicycle safety fund

A. A bicycle safety fund is established. The department shall administer the fund. The fund consists of monies received from:

1. The federal government or any agency of the federal government for any purpose authorized by this section.

2. Donations.

3. This state or any agency of this state for any purpose authorized by this section.

B. The department:

1. May designate monies deposited in the bicycle safety fund for use only for specified purposes consistent with this section and only for use in specified political subdivisions of this state.

2. Shall spend monies contributed by a political subdivision to the bicycle safety fund and any donation to the fund designated for use in a political subdivision and any matching monies deposited in the fund as a result of the contribution or donation only for use in the political subdivision.

3. Shall only spend monies from the bicycle safety fund as follows:

(a) For planning, engineering, constructing and maintaining bicycle paths and bicycle lanes.

(b) As matching monies to be used with federal or local monies spent for planning, engineering, constructing or maintaining bicycle paths and bicycle lanes.

(c) As matching monies to be used with federal or local monies spent for planning and implementing safety programs.

C. Monies in the bicycle safety fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department may spend monies in the fund for purposes authorized by this section subject to legislative appropriation.

§ 28-819 Electric bicycles; electric standup scooters

A. An operator of an electric bicycle or an electric standup scooter is granted all the rights and privileges and is subject to all of the duties of a person riding a bicycle. Except as otherwise provided in this section or as otherwise regulated by a local authority, an electric bicycle or an electric standup scooter is subject to the same provisions of this title as a bicycle.

B. An electric bicycle or an electric standup scooter is not subject to the provisions of this title relating to certificates of title, registration, vehicle license tax, driver licenses or vehicle insurance.

C. Beginning January 1, 2019, manufacturers and distributors of electric bicycles shall apply a label that is permanently affixed, in a prominent location, to each electric bicycle. The label shall contain the classification number, top assisted speed and motor wattage of the electric bicycle and shall be printed in at least nine-point type.

D. A class 1 electric bicycle, a class 2 electric bicycle or an electric standup scooter may be used on bicycle and multiuse paths. A local authority or agency of this state having jurisdiction over a bicycle or multiuse path may prohibit the operation of a class 1 electric bicycle, class 2 electric bicycle or electric standup scooter on the path.

E. A class 3 electric bicycle may not be operated on a bicycle or multiuse path unless it is within or adjacent to a highway or roadway or unless the local authority or agency of this state having jurisdiction over the path allows the operation.

F. An electric standup scooter must have a unique identification that consists of letters or numbers, or both, and that is visible from a distance of at least five feet. The identification:

1. May not be obscured by branding or other markings.

2. Shall be used in this state to identify the electric standup scooter. This paragraph applies to all persons, including local authorities.

Article 12 Special Stops Required

§ 28-851 Railroad crossing; safety

A. Except as provided in subsection B of this section, when a person driving a vehicle approaches a railroad grade crossing, the driver of the vehicle shall stop within fifty feet but not less than fifteen feet from the nearest rail of the railroad and may not proceed if any of the following applies:

1. A clearly visible electric or mechanical signal device gives warning of the immediate approach of a railroad train or other on-track equipment.

2. A crossing gate is lowered or a human flagman gives or continues to give a signal of the approach or passage of a railroad train or other on-track equipment.

3. A railroad train or other on-track equipment approaching within approximately one thousand five hundred feet of the highway crossing emits a signal audible from such a distance and the railroad train or other on-track equipment is an immediate hazard by reason of its speed or proximity to the crossing.

4. An approaching railroad train or other on-track equipment is plainly visible and is in hazardous proximity to the crossing.

5. Any other condition exists that makes it unsafe to proceed through the crossing.

B. An operator of a vehicle who suspects a false activation or malfunction of a railroad grade crossing signal device where there is no gate or barrier may proceed through the railroad grade crossing after stopping if all of the following apply:

1. The operator of the vehicle has a clear line of sight of at least one mile of the railroad tracks in all directions.

2. There is no evidence of an approaching railroad train or other on-track equipment.

3. The vehicle may cross over the tracks safely.

4. If the vehicle is a school bus, the operator complies with written district policy.

C. An operator of a vehicle may not make a u-turn or turn the vehicle to proceed in the opposite direction on a railroad track or railroad grade crossing.

D. A person shall not proceed through, around, over or under a crossing gate or barrier at a railroad crossing while the gate or barrier is closed or is being opened or closed.

E. A pedestrian shall not do any of the following:

1. Enter or remain within the area between a railroad track and a railroad sign or signal if the railroad grade crossing is active.

2. Occupy or remain on a railroad grade crossing when the railroad sign or signal is not active except to cross the railroad crossing on a designated walkway.

3. Remain in an area between railroad signs or signals, railroad gates or rail crossing arms if the railroad grade crossing is active.

§ 28-852 Dangerous railroad grade crossing

The director, and local authorities with the approval of the director, may designate particularly dangerous highway grade crossings of railroads and may erect stop signs at the crossings. If the stop signs are erected, the driver of a vehicle shall stop within fifty feet but not less than fifteen feet from the nearest rail of the railroad and shall proceed only on exercising due care.

§ 28-853 Railroad grade crossing; stop required of certain vehicles; exceptions; other requirements

A. Except as otherwise provided in this article, before crossing at grade any track or tracks of a railroad, the driver of a motor vehicle carrying passengers for hire, of any school bus carrying any school child or of any vehicle carrying or returning after delivering explosive substances or flammable liquids as a cargo or part of a cargo shall stop the vehicle within fifty feet but not less than fifteen feet from the nearest rail of the railroad, listen and look in both directions along the track for an approaching train or other on-track equipment and for signals indicating an approaching railroad train or other on-track equipment and not proceed until the driver can do so safely. After stopping as required by this subsection and on proceeding when it is safe to do so, the driver of the vehicle shall cross only in a gear of the vehicle for which there is no need to change gears while traversing the crossing and shall not shift gears while crossing the track or tracks. This subsection does not apply at:

1. A crossing where a police officer or a traffic control signal directs traffic to proceed.

2. A street railway grade crossing within a business or residence district.

B. A driver of a commercial motor vehicle shall not enter a railroad or rail transit crossing unless there is sufficient space on the other side of the railroad or rail transit crossing to accommodate the vehicle being driven.

C. A driver of a commercial motor vehicle shall not enter a railroad or rail transit crossing unless there is sufficient undercarriage clearance to cross the intersection without obstructing the through passage of a railway vehicle, including a railroad train or a city transit vehicle.

§ 28-854 Railroad grade crossing; moving heavy equipment; exception; definition

A. A person shall not operate or move any heavy equipment on or across a track at a railroad grade crossing unless:

1. Notice of the intended crossing is given to a station agent of the railroad.

2. Before making the crossing, the person operating or moving the vehicle or heavy equipment:

(a) Stops the vehicle or equipment at least fifteen feet but not more than fifty feet from the nearest rail of the railroad.

(b) While stopped, listens and looks in both directions along the track for an approaching railroad train or other on-track equipment and for signals indicating an approaching railroad train or other on-track equipment.

3. Does not proceed until the crossing can be made safely.

B. A person shall not make a crossing pursuant to subsection A of this section when a warning is given by automatic signal, crossing gates or a flagman or otherwise of the immediate approach of a railroad train or car or other on-track equipment. If a flagman is provided by the railroad, movement over the crossing shall be under the flagman's direction.

C. This section does not apply to the normal movement of farm equipment in the regular course of a farm operation.

D. For the purposes of this section, "heavy equipment" means any crawler type tractor, steam shovel, derrick, roller or other equipment or structure having a normal operating speed of ten miles per hour or less or a vertical body or load clearance of less than one-half inch per foot of the distance between any two adjacent axles or in any event of less than nine inches measured above the level surface of a roadway.

§ 28-855 Stop signs; yield signs

A. The director, with reference to state highways, and local authorities, with reference to other highways under their jurisdiction, may designate through highways and erect stop or yield signs at specified entrances to the through highways or may designate an intersection as a stop or yield intersection and erect like signs at one or more entrances to the intersection.

B. A driver of a vehicle approaching a stop sign shall stop before entering the crosswalk on the near side of the intersection, or if there is no crosswalk, shall stop at a clearly marked stop line, or if there is no line, shall stop at the point nearest the intersecting roadway where the driver has a view of approaching traffic on the intersecting roadway before entering the intersection except when directed to proceed by a police officer.

C. The driver of a vehicle approaching a yield sign shall slow down in obedience to the sign to a speed reasonable for the existing conditions and shall yield the right-of-way to any vehicle in the intersection or approaching on another highway so closely as to constitute an immediate hazard during the time the driver is moving across or within the intersection. If after driving past a yield sign without stopping the driver is involved in a collision with a vehicle in the intersection, the collision is prima facie evidence of the driver's failure to yield the right-of-way.

§ 28-856 Emerging from alley, driveway or building

The driver of a vehicle emerging from an alley, driveway or building within a business or residence district shall:

1. Stop the vehicle immediately before driving onto a sidewalk or onto the sidewalk area extending across any alleyway or private driveway.

2. Yield the right-of-way to any pedestrian as necessary to avoid collision.

3. On entering the roadway, yield the right-of-way to all closely approaching vehicles on the roadway.

§ 28-857 School bus signs; overtaking and passing school bus; violation; driver license suspension; civil penalty

A. On meeting or overtaking from either direction a school bus that has stopped on the highway, the driver of a vehicle on a highway shall:

1. Stop the vehicle before reaching the school bus, if the school bus is displaying the signal as provided in subsection D of this section and if alternately flashing lights are in use.

2. Not proceed until the school bus resumes motion or the signal and alternately flashing lights are no longer displayed.

B. A school bus shall have on the front and rear of the school bus a plainly visible sign containing the words "school bus" in letters not less than eight inches in height.

C. A school bus operated on a highway shall cover or conceal all markings indicating "school bus" unless the school bus is operated for the transportation of children to or from any of the following:

1. School.

2. School sponsored academic activities.

3. School sponsored vocational and technical education.

4. School sponsored athletic trips.

5. School sponsored extracurricular activities.

D. A school bus shall have a signal with the word "stop" printed on both sides in white letters not less than five inches high on a red background. The signal shall be an eighteen inch reflectorized octagon. When transporting school children to or from school or home, the operator of the school bus shall:

1. Manually operate the signal in a manner so that the signal is clearly visible from both front and rear when extended from the left of the body of the school bus.

2. Display the signal and alternately flashing lights if passengers are being received or discharged while the school bus is stopped on the roadway or a private road or driveway as defined in section 28-601.

E. The driver of a vehicle on a highway with separate roadways need not stop on meeting or passing a school bus that is:

1. On a different roadway.

2. On a controlled access highway and the school bus is stopped in a loading zone that is a part of or adjacent to the highway and where pedestrians are not permitted to cross the roadway.

F. For the purposes of subsection E of this section, a lane or group of lanes on either side of a two-way left turn lane is not considered a separate roadway.

G. A person who is responsible for a violation of subsection A of this section is subject to a civil penalty as follows:

1. The court shall impose a minimum civil penalty of two hundred fifty dollars for the first violation.

2. If a person violates this section a second time within a period of thirty-six months, the court shall impose a minimum civil penalty of seven hundred fifty dollars and shall direct the department to suspend the driver license of the person for not more than six months.

3. If a person violates this section three or more times within a period of thirty-six months, the court shall impose a minimum civil penalty of one thousand dollars and shall direct the department to suspend the driver license of the person for at least six months but not more than one year.

§ 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. On receiving the report, the director 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.

§ 28-858 Approaching horses and livestock

A person operating a motor vehicle on a public highway and approaching a horse-drawn vehicle, a horse on which a person is riding or livestock being driven on the highway shall exercise reasonable precaution to prevent frightening and to safeguard the animals and to ensure the safety of persons riding or driving the animals. If the animals appear frightened, the person in control of the vehicle shall reduce its speed and if requested by signal or otherwise shall not proceed further toward the animals unless necessary to avoid accident or injury until the animals appear to be under control.

Article 13 Stopping, Standing or Parking

§ 28-871 Stopping, standing or parking outside business or residence district

A. On a highway outside of a business or residence district, a person shall not stop, park or leave standing a vehicle, whether attended or unattended, on the paved or main traveled part of the highway if it is practicable to stop, park or leave the vehicle off that part of the highway. If a person stops, parks or leaves standing a vehicle, the person shall leave an unobstructed width of the highway opposite the standing vehicle for the free passage of other vehicles and a clear view of the standing vehicle shall be available from a distance of two hundred feet in each direction on the highway.

B. This section does not apply to:

1. The driver of a vehicle that is disabled while on the paved or main traveled portion of a highway in a manner and to an extent that it is impossible to avoid stopping and temporarily leaving the disabled vehicle in that position.

2. A vehicle or the driver of a vehicle engaged in the official delivery of the United States mail that stops on the right-hand side of the highway for the purpose of picking up or delivering mail if the following conditions are met:

(a) A clear view of the vehicle is available from a distance of three hundred feet in each direction on the highway or a flashing amber light at least four inches in diameter with the letters "stop" printed on the light is attached to the rear of the vehicle.

(b) The vehicle has a uniform sign that:

(i) Is at least fourteen inches in diameter.

(ii) Has the words "U.S. mail" printed on the sign.

(iii) Is attached to the rear of the vehicle.

§ 28-872 Removal of vehicles; notice; liability for costs; hearing

A. If a police officer finds a vehicle standing on a highway in violation of section 28-871 the officer may move the vehicle or require the driver or other person in charge of the vehicle to move the vehicle to a position off the paved or main traveled part of the highway.

B. A police officer may remove or cause to be removed to a place of safety an unattended vehicle that is illegally left standing on a highway, bridge or causeway or in a tunnel in a position or under circumstances that obstruct the normal movement of traffic.

C. A police officer may remove or cause the removal of a vehicle to the nearest garage or other place of safety as follows:

1. If a report has been made that the vehicle has been stolen or taken without the consent of its owner.

2. If the person or persons in charge of the vehicle are unable to provide for its custody or removal.

3. If the person driving or in control of the vehicle is arrested for an alleged offense for which the officer is required by law to take the person arrested before a proper magistrate without unnecessary delay.

4. If the vehicle is left unattended for more than four hours on the right-of-way of a freeway that has full control of access and no crossings at grade.

5. Within the boundaries of a city, if the vehicle is left unattended for more than two hours on the right-of-way of a freeway that has full control of access and no crossings at grade.

D. If a police officer removes or causes the removal of a vehicle pursuant to this section, the police officer shall do both of the following when the vehicle is removed:

1. Provide to the tow truck operator a form that the police officer signs and that includes the following information:

(a) The vehicle identification number.

(b) A number identifying the law enforcement agency and the officer ordering the tow.

(c) The year, make and model of the vehicle.

(d) The license plate number if available.

(e) The date and time the vehicle was towed.

(f) The address from which the vehicle was towed.

(g) The name, address and telephone number, if the telephone number is known, of the registered owner and the primary lien holder of the vehicle to permit the towing company to notify the registered owner or the primary lien holder.

2. Electronically communicate to the officer's law enforcement agency the following if the officer has the equipment to electronically communicate the information:

(a) The name and telephone number of the person towing the vehicle.

(b) The information prescribed by paragraph 1 of this subsection.

E. If a police officer provides the tow truck operator with the form described in subsection D, paragraph 1 of this section, the tow truck operator must provide the form to the person responsible for filing the abandoned vehicle report pursuant to section 28-4838. The person responsible for filing the abandoned vehicle report shall submit the form to the department of transportation at the time the person files the abandoned vehicle report.

F. The law enforcement agency receiving electronic information pursuant to subsection D of this section shall record the information as prescribed by the department of public safety. The department of public safety shall make the information available to the department of transportation.

G. When the department of transportation receives the information from either the department of public safety or the person responsible for filing the abandoned vehicle report pursuant to section 28-4838, the department of transportation shall send notice by first class mail to all persons listed on the department of transportation's records as having an ownership interest in the vehicle. The notice shall include the vehicle identification number and the name and telephone number of the person that towed the vehicle. The director of the department of transportation may include additional information on the notice as the director deems necessary.

H. Except as provided in subsection I of this section:

1. The public agency employing an officer who removes or causes the removal of a vehicle under this section is not liable for the cost of towing or storing the vehicle if the officer acts under color of the officer's lawful authority.

2. Before release of the vehicle by the towing service, the owner or the owner's agent of a vehicle that is removed or caused to be removed under this article shall pay or make satisfactory arrangements to pay for any reasonable towing and storage costs incurred in towing or storing the vehicle.

I. If a tow truck operator is required in writing by a public agency to tow or store a vehicle that is required as evidence in a criminal action or for future criminal investigation by the public agency, the public agency is liable for the towing and storage costs of the vehicle.

J. If a police officer removes or causes the removal of a vehicle as permitted by this section, the public agency employing the officer shall provide the registered owner of the vehicle or the registered owner's agent with the opportunity for a poststorage hearing to determine the validity of the removal. This hearing shall be conducted within forty-eight hours after a request, excluding weekends and holidays. The public agency employing the officer may authorize its own officer or employee to conduct the hearing if the hearing officer is not the same person who removed or caused the removal of the vehicle. The public agency employing the officer who removes or causes the removal of the vehicle is responsible for the costs incurred for towing and storage if it is determined at the hearing that probable cause for the removal cannot be established.

§ 28-873 Stopping, standing or parking prohibitions; exceptions; definition

A. Except if necessary to avoid conflict with other traffic or if in compliance with law or the directions of a police officer or traffic control device, a person shall not stop, stand or park a vehicle in any of the following places:

1. On a sidewalk.

2. In a private driveway if any part of the vehicle or an attachment to the vehicle, including a hitch or trailer, blocks an area of a sidewalk and impedes continuous pedestrian use of the sidewalk in a manner that is not consistent with the Americans with disabilities act as defined in section 41-1492. This paragraph does not apply if the vehicle is temporarily parked for the purposes of loading or unloading the vehicle.

3. In front of a public or private driveway, except that this paragraph does not apply to a vehicle or the driver of a vehicle engaged in the official delivery of the United States mail if both of the following apply:

(a) The driver does not leave the vehicle.

(b) The vehicle is stopped only momentarily.

4. Within an intersection.

5. Within fifteen feet of a fire hydrant.

6. On a crosswalk.

7. Within twenty feet of a crosswalk at an intersection.

8. Within thirty feet on the approach to any flashing beacon, stop sign, yield sign or traffic control signal located at the side of a roadway.

9. Between a safety zone and the adjacent curb or within thirty feet of points on the curb immediately opposite the ends of a safety zone, unless the director or a local authority indicates a different length by signs or markings.

10. Within fifty feet of the nearest rail or a railroad crossing or within eight feet six inches of the center of any railroad track, except while a motor vehicle with motive power attached is loading or unloading railroad cars.

11. Within twenty feet of the driveway entrance to a fire station and on the side of a street opposite the entrance to any fire station within seventy-five feet of the entrance when properly posted.

12. Alongside or opposite a street excavation or obstruction when stopping, standing or parking would obstruct traffic.

13. On the roadway side of a vehicle stopped or parked at the edge or curb of a street.

14. On a bridge or other elevated structure on a highway or within a highway tunnel.

15. At any place where official signs prohibit standing or stopping.

16. On a controlled access highway except:

(a) For emergency reasons.

(b) In areas specifically designated for parking such as rest areas.

B. A local authority may allow motor vehicles providing a public entity's public transportation service to stop on a state highway or state route for the purpose of allowing passengers to enter or exit if all of the following apply:

1. The local authority that has jurisdiction over the location of the proposed stopping point conducts a traffic and engineering investigation to determine whether passengers are able to safely enter or exit public transportation vehicles at the proposed stopping point.

2. The local authority that conducts the traffic and engineering investigation pursuant to paragraph 1 of this subsection submits the results of the investigation to the director for review and approval of the proposed stopping point.

3. The driver does not leave the vehicle.

4. The vehicle is stopped only long enough to load and unload passengers.

5. The vehicle engages four-way hazard flashers.

6. The roadway has a posted speed limit that does not exceed fifty-five miles per hour.

7. The roadway has signed or signalized intersection controls within a jurisdictionally confined boundary.

8. The vehicle is clearly marked as a public transportation vehicle.

9. As determined by the director in conjunction with the local authority, the driver drives the vehicle into a pullout or uses any other available method that limits the vehicle from interfering with traffic on the roadway.

C. For the purposes of this section, "public transportation vehicle" means any vehicle that either:

1. Is owned or operated by a public entity.

2. Is operated under a contract with a public entity.

§ 28-874 Additional parking rules

A. Except as otherwise provided in this section, a person who stops or parks a vehicle on a roadway where there are adjacent curbs shall stop or park the vehicle with its right-hand wheels parallel to and within eighteen inches of the right-hand curb.

B. A local authority may permit by ordinance:

1. Parking of vehicles with the left-hand wheels adjacent to and within eighteen inches of the left-hand curb of a one-way roadway.

2. Angle parking on any roadway, except that a local authority shall not permit angle parking on any federal aid highway or state highway unless the director has determined by resolution or order that the roadway is of sufficient width to permit angle parking without interfering with the free movement of traffic.

C. With respect to highways under the director's jurisdiction, the director may place signs prohibiting or restricting the stopping, standing or parking of vehicles on any highway where in the director's opinion the stopping, standing or parking is dangerous to those using the highway or where the stopping, standing or parking of vehicles would unduly interfere with the free movement of traffic on the highway. The signs shall be official signs, and a person shall not stop, stand or park a vehicle in violation of the restrictions stated on the signs.

§ 28-875 Law enforcement exception

The stopping, standing or parking restrictions provided in this article do not apply to a police or peace officer when the stopping, standing or parking is for the purpose of actual performance of a law enforcement duty.

§ 28-876 Parking spaces for electric vehicles; civil penalty

A. A person shall not stop, stand or park a motor vehicle within any parking space specially designated for parking and fueling motor vehicles fueled exclusively by electricity unless the motor vehicle is powered by electricity and has been issued an alternative fuel vehicle special plate or sticker pursuant to section 28-2416.

B. If a law enforcement officer finds a motor vehicle in violation of this section, the law enforcement officer shall issue a complaint to the operator or other person in charge of the motor vehicle or, if an operator or other person is not present, to the registered owner of the motor vehicle for a civil traffic violation.

C. A person who is found responsible for a violation of this section is subject to a civil penalty of at least three hundred fifty dollars. Notwithstanding section 28-1554, the civil penalties collected pursuant to this subsection shall be deposited in the state general fund.

§ 28-877 Alternative fuel vehicles; parking in carpool parking spaces

A person who is driving a vehicle powered by an alternative fuel may park without penalty in parking areas that are designated for carpool operators as defined in section 28-4032.

Article 14 Parking for Persons with Physical Disabilities

§ 28-881 Parking restrictions; applicability

This article does not apply:

1. To zones where stopping, standing or parking is prohibited to all vehicles as provided in sections 28-871, 28-873 and 28-936.

2. If there is a local ordinance that prohibits parking during heavy traffic periods such as rush hours or where parking clearly would present a traffic hazard for the general public.

§ 28-882 Parking spaces for persons with physical disabilities

A. Each state agency having jurisdiction over street parking or publicly owned and operated parking facilities shall provide specially designated and marked motor vehicle parking spaces for the exclusive use of persons with physical disabilities.

B. Each political subdivision of this state having jurisdiction over street parking or publicly owned and operated parking facilities shall provide, as determined by the county board of supervisors or the governing body of a city or town, specially designated and marked motor vehicle parking spaces for the exclusive use of persons with physical disabilities.

C. Each parking space described in this section shall be prominently outlined with paint and posted with a permanent sign that is located at least three feet but not more than six feet above the grade, that is of a color and design approved by the department and that bears the internationally accepted symbol of access and the caption "reserved parking".

§ 28-883 Agreements with other jurisdictions; reciprocity

A. The director may enter into agreements with other jurisdictions, including foreign jurisdictions, on behalf of this state:

1. Relating to the extension to residents of this state of parking privileges for persons with a permanent disability.

2. To recognize international symbol of access special plates or the placard issued by the other jurisdictions.

B. This state shall grant the same parking privileges that are granted to a resident of this state to a nonresident for a motor vehicle licensed in another state or foreign country displaying the international symbol of access special plates or the placard issued in accordance with the laws of the nonresident's 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 country.

§ 28-884 Parking space for persons with physical disabilities; prohibition; access aisle

A. Except as provided in subsection B of this section, a person shall not stop, stand or park a motor vehicle within any specially designated and marked parking space provided pursuant to this article unless the motor vehicle is transporting a person who has been issued a valid placard or international symbol of access special plates and either:

1. The motor vehicle displays the valid permanent disability or temporary disability removable windshield placard.

2. The motor vehicle displays international symbol of access special plates that are currently registered to the vehicle.

B. A person who is chauffeuring a person with a physical disability in a vehicle without a placard or international symbol of access special plates may park momentarily in a parking space provided pursuant to this article for the purpose of loading or unloading the person with a physical disability, and a complaint shall not be issued to the driver for the momentary parking.

C. A person shall not stop, stand or park a motor vehicle, including a vehicle displaying an international symbol of access special plate or placard, in the access aisle of a parking space described in section 28-882. For the purposes of this subsection, "access aisle" means a designated area adjacent to a parking space described in section 28-882 that is marked by either spaced, crosshatched or diagonal stripes or a distinctive change in color or material and that leads to an accessible route of travel.

D. A person who has been issued an international symbol of access special plate on behalf of a minor pursuant to section 28-2409 shall use a designated and marked parking space provided pursuant to this article only when the person is transporting the minor with permanent physical disabilities.

§ 28-885 Civil traffic violation; civil penalty; recall of placards and plates; defense

A. If a law enforcement officer or a parking enforcement specialist employed by a local authority finds a motor vehicle in violation of this article, the person shall issue a complaint to the operator or other person in charge of the motor vehicle or, if an operator or person in charge is not present, to the registered owner of the vehicle for a civil traffic violation. A court or duly appointed hearing officer may impose on the operator, person in charge or owner of a vehicle parked in violation of this section a minimum civil penalty of fifty dollars plus the penalty assessments prescribed by statute.

B. If a person violates this article, the director may recall the placard or international symbol of access special plates issued to the person.

C. If no vehicle operator was present and an officer served a complaint on the registered owner of the vehicle, the court may dismiss a violation of this section if the person produces in court proof of a disability placard for the registered owner's vehicle that was valid on the date of the violation.

§ 28-886 Volunteer program

A local authority may establish a volunteer parking enforcement specialist program for parking for persons with physical disabilities. Under this program, the local authority may authorize volunteers to issue citations only to persons who violate section 28-884 or an ordinance regulating parking in parking spaces for persons with physical disabilities.

Article 15 Miscellaneous Rules

§ 28-891 Backing limitations

A. The driver of a vehicle shall not back the vehicle unless the movement can be made with reasonable safety and without interfering with other traffic.

B. The driver of a vehicle shall not back the vehicle on any access road, exit or entrance ramp or roadway of a controlled access highway.

§ 28-892 Riding on motorcycle or all-terrain vehicle

A. A person operating a motorcycle or all-terrain vehicle shall ride only on the permanent and regular seat attached to the motorcycle or all-terrain vehicle.

B. The operator of a motorcycle shall not carry any other person and any other person shall not ride on a motorcycle unless the motorcycle is designed to carry more than one person. On a motorcycle designed to carry more than one person, a passenger may ride on the permanent and regular seat if it is designed for two persons or on another seat firmly attached to the motorcycle at the rear or side of the operator.

C. The operator of an all-terrain vehicle shall not carry any other person and any other person shall not ride on an all-terrain vehicle unless the all-terrain vehicle is equipped to carry more than one person. On an all-terrain vehicle that is equipped to carry more than one person, a passenger may ride on the permanent and regular seat if it is equipped for two persons or on another seat firmly attached to the all-terrain vehicle at the rear or side of the operator.

§ 28-893 Obstruction to view; interference with driving

A. A person shall not drive a vehicle when the vehicle's load or passengers obstruct the driver's view to the front or sides of the vehicle or interfere with the driver's control over the vehicle's driving mechanism.

B. A passenger in a vehicle shall not ride in a position that interferes with the driver's view ahead or to the sides or that interferes with the driver's control over the vehicle's driving mechanism.

§ 28-894 Driving on mountain highways

The driver of a motor vehicle traveling through defiles or canyons or on mountain highways shall hold the motor vehicle under control and as near the right-hand edge of the roadway as reasonably possible.

§ 28-895 Coasting prohibited

A. The driver of a motor vehicle traveling on a downgrade shall not coast with the gears of the vehicle in neutral.

B. The driver of a commercial motor vehicle traveling on a downgrade shall not coast with the clutch disengaged.

§ 28-896 Towing trailer; lateral sway

A person shall not drive a vehicle towing a trailer or semitrailer at a rate of speed that causes the trailer or semitrailer to sway laterally from the line of traffic.

§ 28-897 Crossing fire hose

A person shall not drive a vehicle over an unprotected hose of a fire department if the hose is laid down on a street or private driveway to be used at a fire or alarm of fire. This section does not apply if a fire department official in command at the fire or alarm of fire directs traffic to drive over the hose.

§ 28-898 Objects on roadway; prohibition

A. A person shall not throw or deposit on a roadway any glass bottle, glass, nails, tacks, wire, cans or other substance likely to injure a person, animal or vehicle on the roadway.

B. A person who drops or permits to be dropped or thrown on a roadway any destructive or injurious material shall immediately remove the material or cause it to be removed.

C. A person removing a wrecked or damaged vehicle from a highway shall remove any glass or other injurious substance dropped on the highway from the vehicle.

§ 28-899 Barbed wire; damages

A person who owns, leases, has charge of or possesses a barbed wire fence along a public highway:

1. Shall not permit or allow the wire of the fence to lie loose along or in the highway so as to endanger the safety of a person or animal passing along the highway.

2. Is liable for all damages arising from the loose wire.

§ 28-900 School transportation rules

A. The department of public safety in consultation with the student transportation advisory council established by section 28-3053 shall adopt rules as necessary to improve the safety and welfare of student passengers by minimizing the probability of accidents involving school buses and student passengers and by minimizing the risk of serious bodily injury to student passengers in the event of an accident.

B. The rules may include:

1. Minimum standards for the design and equipment of school buses that are designed for sixteen or more passengers.

2. Minimum standards for the periodic inspection and maintenance of school buses that are designed for sixteen or more passengers.

3. Procedures for the operation of school buses that are designed for sixteen or more passengers.

4. Minimum standards for the design and equipment of motor vehicles described in section 15-925 that are substantially different than the minimum standards prescribed in paragraph 1 of this subsection.

5. Minimum standards for the periodic inspection and maintenance of motor vehicles described in section 15-925.

6. Procedures for the operation of motor vehicles described in section 15-925.

7. Other criteria as deemed by the department of public safety and the student transportation advisory council to be necessary and appropriate to ensure the safe operation of school buses and motor vehicles that are described in section 15-925. Any rules adopted pursuant to this section shall allow for a variety of vehicles to be used to meet the needs of students and systems of varying sizes and locations.

C. The rules shall provide, if applicable, minimum standards equal to or more restrictive than those adopted by the United States department of transportation in accordance with 23 United States Code and rules adopted pursuant to 23 United States Code.

D. Notwithstanding a rule adopted by the department of public safety with respect to exterior color of a school bus that is designed for sixteen or more passengers, in order to reduce the interior temperature of a school bus, the exterior top of a school bus may be painted white, but the white area shall not extend beyond the center clearance lights, front and rear, and shall not extend below a line five inches above the top of the side windows.

E. An officer or employee of any school district or charter school who violates any of the rules or who fails to include the obligation to comply with the rules in any contract executed by the officer or employee on behalf of the school district or charter school is guilty of misconduct and is subject to removal from office or employment. Any person who operates a school bus or motor vehicle under contract with a school district or charter school and who fails to comply with any of the rules is in breach of contract, and the school district or charter school shall cancel the contract after notice and a hearing by the responsible officers of the school district or charter school.

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

§ 28-901 Maximum number in school bus; stops at school

A. Except for the purpose of conducting drills under school rules and in the emergency evacuation or dispersal of pupils and school personnel, a person shall not operate a school bus on a public highway:

1. While carrying more passengers than can be properly seated.

2. While a person is standing in the school bus.

B. In receiving or discharging children at the school, a person who drives a vehicle carrying children to and from school shall stop the vehicle on the side of the highway on which the school is located.

§ 28-902 Repainting government vehicle

If a motor vehicle that is painted yellow and that is owned or operated by this state, a county, city, town or political subdivision of this state, a school district or a school is sold or transferred to a private owner, the private owner shall repaint the motor vehicle a different color and obliterate all official painted insignia before the motor vehicle is driven on a public highway.

§ 28-903 Operation of motorcycle on laned roadway; exceptions

A. All motorcycles are entitled to the full use of a lane. A person shall not drive a motor vehicle in such a manner as to deprive any motorcycle of the full use of a lane. This subsection does not apply to motorcycles operated two abreast in a single lane.

B. Except as provided in subsection F of this section, the operator of a motorcycle shall not overtake and pass in the same lane occupied by the vehicle being overtaken.

C. Except as provided in subsection F of this section, a person shall not operate a motorcycle between the lanes of traffic or between adjacent rows of vehicles.

D. A person shall not operate a motorcycle more than two abreast in a single lane.

E. Subsections B and C of this section do not apply to peace officers in the performance of their official duties.

F. The operator of a two-wheeled motorcycle may overtake and pass another vehicle that is stopped in the same direction of travel and in the same lane as the operator and may operate the motorcycle between lanes of traffic if the movement may be made safely and if the operator does both of the following:

1. Operates the motorcycle on a street that both:

(a) Is divided into at least two adjacent traffic lanes in the same direction of travel.

(b) Has a speed limit that does not exceed forty-five miles per hour.

2. Travels at a speed that does not exceed fifteen miles per hour.

§ 28-904 Driving on sidewalk

A. A person shall not drive a vehicle on a sidewalk area except on a permanent or duly authorized temporary driveway.

B. This section does not apply to a motorized wheelchair, electric personal assistive mobility device, personal mobile cargo carrying device, authorized emergency vehicle, security vehicle owned by this state or small service vehicle owned by this state or a political subdivision of this state.

§ 28-905 Opening vehicle door

A person shall not open a door on a motor vehicle unless it is reasonably safe to do so and can be done without interfering with the movement of other traffic. A person shall not leave a door open on a side of a motor vehicle exposed to moving traffic for a period of time longer than necessary to load or unload a passenger.

§ 28-906 Mechanical raising and lowering devices

A person shall not raise or lower the height of a motor vehicle by mechanical means while the motor vehicle is moving on a highway at a speed in excess of fifteen miles per hour.

§ 28-907 Child restraint system; civil penalty; exemptions; notice; child restraint fund; definitions

A. Except as provided in subsection H of this section, a person shall not operate a motor vehicle on the highways in this state when transporting a child who is under five years of age unless that child is properly secured in a child restraint system.

B. The operator 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 require each passenger who is at least five years of age, who is under eight years of age and who is not more than four feet nine inches tall to be restrained in a child restraint system.

C. Child restraint systems shall meet the requirements of 49 Code of Federal Regulations section 571.213 for the performance, design and installation of child restraint systems for use in motor vehicles as prescribed in this section.

D. A person who violates this section is subject to a civil penalty of $50, except that a civil penalty shall not be imposed if the person makes a sufficient showing that the motor vehicle has been subsequently equipped with a child restraint system that meets the standards adopted pursuant to subsection C of this section. A sufficient showing may include a receipt mailed to the appropriate court officer that evidences purchase or acquisition of a child restraint system. The court imposing and collecting the civil penalty shall deposit, pursuant to sections 35-146 and 35-147, the monies, exclusive of any surcharges imposed pursuant to sections 12-116.01 and 12-116.02, in the child restraint fund.

E. If a law enforcement officer stops a vehicle for an apparent violation of this section, the officer shall determine from the driver the age and height of the child or children in the vehicle to assess whether the child or children in the vehicle should be in child restraint systems.

F. If the information given to the officer indicates that a violation of this section has not been committed, the officer shall not detain the vehicle any further unless some additional violation is involved. The stopping of a vehicle for an apparent or actual violation of this section is not probable cause for the search or seizure of the vehicle unless there is probable cause for another violation of law.

G. The requirements of this section or evidence of a violation of this section are not admissible as evidence in a judicial proceeding except in a judicial proceeding for a violation of this section.

H. This section does not apply to any of the following:

1. A person who operates a motor vehicle that was originally manufactured without passenger restraint devices.

2. A person who operates a motor vehicle that is also a recreational vehicle as defined in section 41-4001.

3. A person who operates a commercial motor vehicle and who holds a current commercial driver license issued pursuant to chapter 8 of this title.

4. A person who must transport a child in an emergency to obtain necessary medical care.

5. A person who operates an authorized emergency vehicle that is transporting a child for medical care.

6. A person who transports more than one child under eight years of age in a motor vehicle that because of the restricted size of the passenger area does not provide sufficient area for the required number of child restraint systems, if both of the following conditions are met:

(a) At least one child is restrained or seated as required by this section.

(b) The person has secured as many of the other children in child restraint systems pursuant to this section as is reasonable given the restricted size of the passenger area and the number of passengers being transported in the motor vehicle.

I. Before the release of any newly born child from a hospital, the hospital in conjunction with the attending physician shall provide the parents of the child with a copy of this section and information with regard to the availability of loaner or rental programs for child restraint systems that may be available in the community where the child is born.

J. The child restraint fund is established. The fund consists of all civil penalties deposited pursuant to this section and any monies donated by the public. The department of child safety shall administer the fund.

K. The department of child safety shall purchase child restraint systems that meet the requirements of this section from monies deposited in the fund. If a responsible agency requests child restraint systems and if they are available, the department of child safety shall distribute child restraint systems to the requesting responsible agency.

L. On the application of a person to a responsible agency on a finding by the responsible agency to which the application was made that the applicant is unable to acquire a child restraint system because the person is indigent and subject to availability, the responsible agency shall lend the applicant a child restraint system at no charge for as long as the applicant has a need to transport a child who is subject to this section.

M. Monies in the child restraint fund shall not exceed $20,000. All monies collected over the $20,000 limit shall be deposited in the Arizona highway user revenue fund established by section 28-6533.

N. The parent or guardian of a child or other adult accompanying a child in the vehicle may be issued a citation for a violation of subsection A of this section that occurs in a fully autonomous vehicle operating with the automated driving system engaged.

O. For the purposes of this section:

1. "Child restraint system" means an add-on child restraint system, a built-in child restraint system, a factory-installed built-in child restraint system, a rear-facing child restraint system or a booster seat as defined in 49 Code of Federal Regulations section 571.213.

2. "Indigent" means a person who is defined as an eligible person pursuant to section 36-2901.01.

3. "Responsible agency" means a licensed hospital, a public or private agency providing shelter services to victims of domestic violence, a public or private agency providing shelter services to homeless families or a health clinic.

§ 28-908 Persons in wheelchairs or on electric personal assistive mobility devices

A person operating a wheelchair, a motorized wheelchair, an electric personal assistive mobility device or a personal mobile cargo carrying device has all of the rights and duties that are contained in this chapter and chapters 4 and 5 of this title and that are applicable to pedestrians except provisions that by their nature can have no application.

§ 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 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 require each passenger under sixteen years of age to 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 passenger is sitting, have the lap belt properly adjusted and fastened while the vehicle is in motion.

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.

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 or a registered nurse practitioner 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 $10 for each violation.

H. The parent or guardian of a passenger under sixteen years of age or other adult accompanying the passenger under sixteen years of age may be issued a citation for a violation of subsection B of this section that occurs in a fully autonomous vehicle operating with the automated driving system engaged.

§ 28-910 Liability for emergency responses in flood areas; definitions

A. A driver of a vehicle who drives the vehicle on a public street or highway that is temporarily covered by a rise in water level, including groundwater or overflow of water, and that is barricaded because of flooding is liable for the expenses of any emergency response that is required to remove from the public street or highway the driver or any passenger in the vehicle that becomes inoperable on the public street or highway or the vehicle that becomes inoperable on the public street or highway, or both.

B. A person convicted of violating section 28-693 for driving a vehicle into any area that is temporarily covered by a rise in water level, including groundwater or overflow of water, may be liable for expenses of any emergency response that is required to remove from the area the driver or any passenger in the vehicle that becomes inoperable in the area or the vehicle that becomes inoperable in the area, or both.

C. The expenses of an emergency response are a charge against the person liable for those expenses pursuant to subsection A or B of this section. The charge constitutes a debt of that person and may be collected proportionately by the public agencies, for-profit entities or not-for-profit entities that incurred the expenses. The person's liability for the expenses of an emergency response shall not exceed two thousand dollars for a single incident. The liability imposed under this section is in addition to and not in limitation of any other liability that may be imposed.

D. An insurance policy may exclude coverage for a person's liability for expenses of an emergency response under this section.

E. For the purposes of this section:

1. "Expenses of an emergency response" means reasonable costs directly incurred by public agencies, for-profit entities or not-for-profit entities that make an appropriate emergency response to an incident.

2. "Public agency" means this state and any city, county, municipal corporation, district or other public authority that is located in whole or in part in this state and that provides police, fire fighting, medical or other emergency services.

3. "Reasonable costs" includes the costs of providing police, fire fighting, rescue and emergency medical services at the scene of an incident and the salaries of the persons who respond to the incident but does not include charges assessed by an ambulance service that is regulated pursuant to title 36, chapter 21.1, article 2.

§ 28-911 Electric personal assistive mobility devices

A person who is under sixteen years of age shall not operate an electric personal assistive mobility device.

§ 28-912 Vehicles transporting equine; violation; classification; definitions

A. A vehicle used to transport any equine to a slaughtering establishment may have no more than one level or tier in the compartment containing the equine.

B. The animal cargo space of vehicles used for the transportation of equines to slaughtering establishments must:

1. Be designed, constructed and maintained in a manner that at all times protects the health and well-being of any equine being transported.

2. Segregate any aggressive equine from the other equines in or on the vehicle.

3. Have sufficient interior height to allow each equine to stand with its head extended to the fullest normal postural height.

4. Be equipped with doors and ramps of sufficient size to provide for safe loading and unloading of any equine.

C. Before the transportation of any equine to a slaughtering establishment, the owner or shipper must:

1. For a period of not less than six consecutive hours immediately before any equine is loaded in or on the vehicle, provide each equine appropriate food, potable water and the opportunity to rest.

2. Load each equine on the vehicle so that:

(a) Each equine has enough floor space to ensure that no equine is crowded in a way likely to cause injury or discomfort.

(b) Any aggressive equine cannot come into contact with any other equine on the vehicle.

D. During transit to the slaughtering establishment, the owner or shipper must:

1. Drive in a manner to avoid causing injury to the equines.

2. Observe the equines as frequently as circumstances allow, but not less than once every six hours, to check the physical condition of the equines and ensure that all requirements of this section are being followed. The owner or shipper must obtain veterinary assistance as soon as practical for any equine in obvious physical distress. Any equine that becomes nonambulatory during transit must be euthanized as soon as practical.

3. Offload from the vehicle any equine that has been in or on the vehicle for twenty-eight consecutive hours and provide the equine appropriate food, potable water and the opportunity to rest for at least five consecutive hours.

4. Transport all equines to a slaughtering establishment as expeditiously and carefully as possible in a manner that does not cause unnecessary discomfort, stress, physical harm or trauma. Electric prods shall not be used for any purpose on equines while transporting equines to a slaughtering establishment, including while loading or unloading the vehicle, except when human safety is threatened.

E. Transporting one equine in violation of this section is a class 3 misdemeanor. A subsequent violation under this subsection is a class 2 misdemeanor.

F. Transporting two or more equine in violation of this section is a class 2 misdemeanor. A subsequent violation under this subsection is a class 1 misdemeanor.

G. For the purposes of this section:

1. "Equine" has the same meaning prescribed in section 3-1201.

2. "Slaughtering establishment" has the same meaning prescribed in section 3-2001.

§ 28-914 Use of portable wireless communication device while driving; prohibition; civil penalty; state preemption; definitions

A. Unless a motor vehicle is parked or stopped pursuant to section 28-645, subsection A, paragraph 3 or section 28-851, a person may not operate a motor vehicle on a street or highway if the person does either of the following:

1. Physically holds or supports with any part of the person's body either of the following:

(a) A portable wireless communication device, except that a person may use a portable wireless communication device with an earpiece, headphone device or device worn on a wrist to conduct a voice-based communication.

(b) A stand-alone electronic device.

2. Writes, sends or reads any text-based communication, including a text message, instant message, email or internet data, on a portable wireless communication device or stand-alone electronic device. This paragraph does not apply to either of the following:

(a) The use of voice-based communications, including through the use of a portable wireless communication device or stand-alone electronic device, to direct the writing, sending, reading or other communicating of any text-based communication.

(b) The use of a portable wireless communication device or stand-alone device when used in a hands-free manner for:

(i) Navigation of the motor vehicle.

(ii) Use of a global positioning system.

(iii) Obtaining motor vehicle information or information related to driving a motor vehicle.

B. This section does not prohibit the operation of a motor vehicle while using a device, including a device that is accessible through an interface that is embedded in a motor vehicle, that allows communication without the use of either of the driver's hands, except to activate or deactivate a function of the device.

C. This section does not apply to:

1. An operator of an authorized emergency, law enforcement or probation vehicle who uses a portable wireless communication device while acting in an official capacity.

2. An operator who is licensed by the federal communications commission while operating a radio frequency device other than a portable wireless communication device.

3. An operator who uses a two-way radio or private land mobile radio system, within the meaning of 47 Code of Federal Regulations part 90, while in the performance and scope of the operator's work-related duties and who is operating a fleet vehicle or who possesses a commercial driver license.

4. An operator who uses a portable wireless communication device either:

(a) To report illegal activity or summon emergency help.

(b) That was permanently or temporarily affixed to the motor vehicle to relay information in the course of the operator's occupational duties between the operator and either:

(i) A dispatcher.

(ii) A digital network or software application service.

D. Beginning January 1, 2021, a person who violates this section is subject to a civil penalty as follows:

1. At least $75 but not more than $149 for a first violation.

2. At least $150 but not more than $250 for a second or subsequent violation.

E. The department shall post a sign at each point at which an interstate highway or United States highway enters into this state that informs an operator that both:

1. The use of a portable wireless communication device while operating a motor vehicle is prohibited in this state.

2. The operator is subject to a civil penalty if the operator uses a portable wireless communication device in violation of this section while operating a motor vehicle in this state.

F. A peace officer who stops a motor vehicle for an alleged violation of this section may not:

1. Take possession of or otherwise inspect a portable wireless communication device in the possession of the operator unless otherwise authorized by law.

2. Issue a citation for a violation of this section before January 1, 2021 and may issue only a warning beginning on April 22, 2019 through December 31, 2020.

G. Except as provided in section 28-3312, a department or agency of this state may not consider a violation of this section for the purpose of determining whether the person's driver license should be suspended or revoked.

H. The regulation and use of portable wireless communication devices while operating a motor vehicle are of statewide concern. From and after December 31, 2020, the regulation of portable wireless communication devices pursuant to this section and their use while operating a motor vehicle is not subject to further regulation by a county, city, town or other political subdivision of this state. From and after December 31, 2020, a regulation by a county, city, town or other political subdivision that violates this subsection, whether enacted before or after January 1, 2021, is void.

I. For the purposes of this section:

1. "Portable wireless communication device":

(a) Means a cellular telephone, a portable telephone, a text-messaging device, a personal digital assistant, a stand-alone computer, a global positioning system receiver or a substantially similar portable wireless device that is used to initiate or receive communication, information or data.

(b) Does not include a radio, citizens band radio, citizens band radio hybrid, commercial two-way radio communication device or its functional equivalent, subscription-based emergency communication device, prescribed medical device, amateur or ham radio device or in-vehicle security, navigation or remote diagnostics system.

2. "Stand-alone electronic device" means a portable device other than a portable wireless communication device that stores audio or video data files to be retrieved on demand by a user.

Article 16 Equipment

§ 28-921 Applicability of equipment requirements

A. A person shall not:

1. Drive or move and the owner shall not knowingly cause or permit to be driven or moved on a highway a vehicle or combination of vehicles that:

(a) Is in an unsafe condition that endangers a person.

(b) Does not contain those parts or is not at all times equipped with lamps and other equipment in proper condition and adjustment as required in this article.

(c) Is equipped in any manner in violation of this article.

2. Do an act forbidden or fail to perform an act required under this article.

B. This article does not prohibit the use of additional parts and accessories on a vehicle if the use is not inconsistent with this article.

C. The provisions of this article with respect to equipment on vehicles do not apply to:

1. Trailers used solely in the operation of a farm for the transportation of the unprocessed fiber products on the farm or from the farm to a cotton gin, road machinery, road rollers, farm tractors or implements of husbandry when the implement is being incidentally operated or moved on a highway whether as a trailer or self-propelled unit. Notwithstanding this paragraph, a farm tractor equipped with an electric lighting system shall display at all times mentioned in section 28-922 a red tail lamp and either multiple beam or single beam head lamps meeting the requirements of sections 28-925, 28-941 and 28-943. For the purposes of this paragraph, "incidentally operated or moved on a highway" means travel between a farm and another part of the same farm, from one farm to another farm or between a farm and a place of repair, supply or storage.

2. Vehicles driven by enforcement officers of the Arizona game and fish department in conducting night patrols and investigating night poaching activities.

§ 28-922 Lighted lamps required

At any time from sunset to sunrise and at any other time when there is not sufficient light to render clearly discernible persons and vehicles on the highway at a distance of five hundred feet ahead, a vehicle on a highway in this state shall display lighted lamps and illuminating devices as required by this article for different classes of vehicles, subject to exceptions for parked vehicles as provided in this article.

§ 28-923 Visibility distance; mounted height of lamps

A. If a requirement is provided in this article as to the distance from which certain lamps and devices shall render objects visible or within which the lamps or devices shall be visible, the provisions apply during the times stated in section 28-922 with respect to a vehicle without a load when on a straight, level and unlighted highway under normal atmospheric conditions unless a different time or condition is expressly provided.

B. If a requirement is provided in this article for the mounted height of lamps or devices it means from the center of the lamp or device to the level ground on which the vehicle stands when the vehicle is without a load.

§ 28-924 Motor vehicle head lamps

A. A motor vehicle other than a motorcycle, an all-terrain vehicle or a motor driven cycle shall be equipped with at least two head lamps with at least one on each side of the front of the motor vehicle. The head lamps shall comply with the requirements and limitations of this article.

B. A motorcycle, an all-terrain vehicle and a motor driven cycle shall be equipped with at least one and not more than two head lamps that comply with the requirements and limitations of this article.

C. A head lamp on a motor vehicle, including a motorcycle, an all-terrain vehicle and a motor driven cycle, shall be located at a height of not more than fifty-four inches nor less than twenty-two inches to be measured as provided in section 28-923, subsection B.

§ 28-925 Tail lamps

A. A motor vehicle, trailer, semitrailer and pole trailer and any other vehicle that is being drawn at the end of a train of vehicles shall be equipped with at least one tail lamp mounted on the rear. When lighted as required by this article, each tail lamp shall emit a red light plainly visible from a distance of five hundred feet to the rear, except that in the case of a train of vehicles, only the tail lamp on the rearmost vehicle need actually be seen from the distance specified.

B. A tail lamp on a vehicle shall be located at a height of not more than seventy-two inches nor less than fifteen inches to be measured as provided in section 28-923, subsection B.

C. Either a tail lamp or a separate lamp shall be constructed and placed in a manner that illuminates with a white light the rear license plate and renders it clearly legible from a distance of fifty feet to the rear. A tail lamp or tail lamps together with any separate lamp for illuminating the rear license plate shall be wired to provide that the tail lamp or lamps are lighted whenever the head lamps or auxiliary driving lamps are lighted.

§ 28-926 New motor vehicles; reflectors

A. Except as provided in subsection B of this section, a new motor vehicle sold and operated on a highway, other than a truck tractor, shall carry on the rear, either as a part of the tail lamps or separately, either:

1. Two red reflectors that comply with this section.

2. If it is a motorcycle or a motor driven cycle, at least one reflector that complies with this section.

B. A vehicle of the type provided in section 28-929 shall be equipped with reflectors as required in that section.

C. A reflector shall be mounted on the vehicle at a height of not less than twenty inches nor more than sixty inches measured as provided in section 28-923, subsection B and shall be of such size and characteristics and so mounted as to be visible at night from all distances within three hundred feet to fifty feet from the vehicle when directly in front of lawful upper beams of head lamps, except that visibility from a greater distance is required of reflectors on certain types of vehicles.

§ 28-927 Stop lamps; peace officers; warnings

A. A person shall not sell a new motor vehicle, including a motorcycle or motor driven cycle, in this state unless it is equipped with a stop lamp and every stop lamp on the vehicle meets the requirements of section 28-939.

B. A person may not drive a vehicle on the highways unless it is equipped with a stop lamp and every stop lamp on the vehicle meets the requirements of section 28-939.

C. The first violation of subsection B of this section is not a civil traffic violation and may not result in a citation. A peace officer may issue a verbal or written warning or notice to repair to a person for the first violation of subsection B of this section.

§ 28-928 Applicability of lighting laws

The sections of this article, including sections 28-929 through 28-934, relating to clearance and marker lamps, reflectors and stoplights, apply as stated in those sections to vehicles of the type enumerated in the sections, namely passenger buses, trucks, truck tractors and certain trailers, semitrailers and pole trailers, respectively, when operated on a highway. These vehicles shall be equipped as required and all lamp equipment required shall be lighted at the times mentioned in section 28-922, except that clearance and side marker lamps need not be lighted on a vehicle when operated within any municipality where there is sufficient light to render clearly discernible persons and vehicles on the highway at a distance of five hundred feet.

§ 28-929 Additional lighting equipment required on certain vehicles

In addition to other equipment required in this article, the following vehicles shall be equipped with the following equipment under the conditions stated in section 28-928:

1. On a bus or truck regardless of size, on the rear, two reflectors, one at each side, and two stoplights.

2. On a bus or truck eighty inches or more in overall width, in addition to the requirements in paragraph 1 of this section:

(a) On the front, two clearance lamps, one at each side.

(b) On the rear, two clearance lamps, one at each side.

(c) On each side, two side marker lamps, one at or near the front and one at or near the rear. Vehicles that exceed thirty feet in length shall have a third side marker lamp at the midpoint between the front and rear marker lamps.

(d) On each side, two reflectors, one at or near the front and one at or near the rear. Vehicles that exceed thirty feet in length shall have a third reflector at the midpoint between the front and rear reflectors.

3. On a truck tractor:

(a) On the front, two clearance lamps, one at each side.

(b) On the rear, two stoplights.

4. On a trailer or semitrailer with a gross weight of more than three thousand pounds:

(a) On the front, two clearance lamps, one at each side.

(b) On each side, two side marker lamps, one at or near the front and one at or near the rear. Vehicles that exceed thirty feet in length shall have a third side marker lamp at the midpoint between the front and rear marker lamps.

(c) On each side, two reflectors, one at or near the front and one at or near the rear. Vehicles that exceed thirty feet in length shall have a third reflector at the midpoint between the front and rear reflectors.

(d) On the rear, two clearance lamps, one at each side, and two reflectors, one at each side, and two stoplights.

5. On a pole trailer with a gross weight of more than three thousand pounds:

(a) On each side, one side marker lamp and one clearance lamp that may be in combination, to show to the front, side and rear.

(b) On the rear of the pole trailer or load, two reflectors, one at each side.

6. On a trailer, semitrailer or pole trailer with a gross weight of three thousand pounds or less:

(a) On the rear, two reflectors, one on each side.

(b) Two stoplights on a trailer or semitrailer if it is loaded in such a manner or is of such dimensions as to obscure the stoplight on the towing vehicle.

§ 28-930 School bus lighting equipment; standards and specifications

A. The director may adopt standards and specifications applicable to lighting equipment on and special warning devices to be carried by school buses consistent with and supplemental to this article. The standards and specifications may designate and permit the use of alternately flashing warning signal lights on school buses for the purpose of indicating when children are boarding or alighting from a school bus. The standards and specifications shall correlate with and, as far as possible, conform to the current specifications as approved by the society of automotive engineers.

B. A person shall operate an alternately flashing warning signal light on any school bus when the school bus is a minimum of one hundred feet from a stop or is stopped on a highway for the purpose of permitting school children to board or alight from it.

C. A school bus may be equipped with alternately flashing red strobe lamps on the octagonal signal manually operated by the school bus operator pursuant to section 28-857, subsection D.

§ 28-931 Lamp colors

A. Front clearance lamps and those marker lamps and reflectors mounted on the front or on the side near the front of a vehicle shall display or reflect an amber color.

B. Rear clearance lamps and those marker lamps and reflectors mounted on the rear or on the sides near the rear of a vehicle shall display or reflect a red color.

C. All lighting devices and reflectors mounted on the rear of any vehicle shall display or reflect a red color, except that:

1. The stoplight or other signal device may be red, amber or yellow, except on a commercial vehicle, as defined in section 28-2231, the stoplight shall be red and the other signal devices shall be red or amber.

2. The light illuminating the license plate or the light emitted by a backup lamp shall be white.

§ 28-932 Reflector and lamp mountings

A. Reflectors that are required by section 28-929 shall be mounted at a height of not less than twenty-four inches and not more than sixty inches above the ground on which the vehicle stands, except that if the highest part of the permanent structure of the vehicle is less than twenty-four inches, the reflector at that point shall be mounted as high as that part of the permanent structure permits.

B. The rear reflectors on a pole trailer may be mounted on each side of the bolster or load.

C. A required red reflector on the rear of a vehicle may be incorporated with the tail lamp, but the reflector shall meet all of the other reflector requirements of this article.

D. Clearance lamps shall be mounted on the permanent structure of the vehicle in a manner that indicates its extreme width and as near the top of the vehicle as practicable. Clearance lamps and side marker lamps may be mounted in combination if illumination is given as required by this section with reference to both.

§ 28-933 Reflector and lamp visibility

A. A reflector on a vehicle referred to in section 28-929 shall be of such size and characteristics and so maintained as to be readily visible at nighttime from all distances within five hundred feet to fifty feet from the vehicle when directly in front of lawful upper beams of head lamps. Reflectors required to be mounted on the sides of the vehicle shall reflect the required color of light to the sides, and reflectors mounted on the rear shall reflect a red color to the rear.

B. Front and rear clearance lamps shall be capable of being seen and distinguished under normal atmospheric conditions at the times lights are required at a distance of five hundred feet from the front and rear, respectively, of the vehicle.

C. Side marker lamps shall be capable of being seen and distinguished under normal atmospheric conditions at the times lights are required at a distance of five hundred feet from the side of the vehicle on which mounted.

§ 28-934 Obstructed lights not required

If motor and other vehicles are operated in combination when lights are required, any lamp, except tail lamps, need not be lighted if the lamp would be obscured by another vehicle of the combination by reason of its location on a vehicle of the combination. This section does not affect the requirement that lighted clearance lamps be displayed on the front of the foremost vehicle required to have clearance lamps or that all lights required on the rear of the rearmost vehicle of any combination be lighted.

§ 28-935 Lamp or flag on projecting load

A. If the load on a vehicle extends to the rear four feet or more beyond the bed or body of the vehicle, two red lights or two lanterns and reflectors, one on each side, plainly visible from a distance of at least five hundred feet to the sides and rear shall be displayed at the extreme rear end of the load, at the times specified in section 28-922. The red light or lantern required by this section is in addition to the red rear light required on every vehicle.

B. At any other time, a red flag or cloth not less than eighteen inches square shall be displayed at the extreme rear end of the load. The flag or cloth shall be displayed so that the entire area is visible to the driver of a vehicle approaching from the rear.

§ 28-936 Lamps on parked vehicles

A. When a vehicle is lawfully parked on a street or highway during the hours between a half hour after sunset and a half hour before sunrise and if there is sufficient light to reveal a person or object within a distance of five hundred feet on the street or highway, lights need not be displayed on the parked vehicle.

B. When a vehicle is parked or stopped on a roadway or shoulder adjacent to the roadway, whether attended or unattended, during the hours between a half hour after sunset and a half hour before sunrise and if there is not sufficient light to reveal a person or object within a distance of five hundred feet on the highway, the parked or stopped vehicle shall be equipped with one or more lamps that exhibit a white or amber light on the roadway side and that are visible from a distance of five hundred feet to the front of the vehicle and a red light visible from a distance of five hundred feet to the rear. This subsection does not apply to a motor driven cycle.

C. A lighted head lamp on a parked vehicle shall be depressed or dimmed.

§ 28-937 Lamps on other vehicles and equipment

All vehicles, including animal-drawn vehicles and vehicles that are referred to in section 28-921, subsection C and that are not specifically required by this article to be equipped with lamps, shall be equipped at the times specified in section 28-922 with at least one lighted lamp or lantern exhibiting a white light visible from a distance of five hundred feet to the front of the vehicle and with a lamp or lantern exhibiting a red light visible from a distance of five hundred feet to the rear.

§ 28-938 Spot and auxiliary lamps

A motor vehicle may be equipped with any of the following:

1. Not more than one spot lamp that when lighted is aimed and used on approaching another vehicle only so that no part of the high intensity portion of the beam is directed to the left of the prolongation of the extreme left side of the vehicle nor more than one hundred feet ahead of the vehicle.

2. Not more than two fog lamps that are mounted on the front at a height of not less than twelve inches and not more than thirty inches above the level surface on which the vehicle stands and that are aimed so that when the vehicle is not loaded none of the high intensity portion of the light to the left of the center of the vehicle shall project, at a distance of twenty-five feet ahead, higher than a level of four inches below the level of the center of the lamp that is aimed.

3. Not more than two auxiliary passing lamps that are mounted on the front at a height of not less than twenty-four inches and not more than forty-two inches above the level surface on which the vehicle stands and that meet the requirements and limitations provided in sections 28-921 through 28-949.

4. Not more than two auxiliary driving lamps that are mounted on the front at a height of not less than sixteen inches nor more than forty-two inches above the level surface on which the vehicle stands and that meet the requirements and limitations provided in sections 28-921 through 28-949.

§ 28-939 Signal lamps and devices

A. A motor vehicle may be equipped and if required under this article shall be equipped with the following:

1. A stop lamp on the rear that emits a red or yellow light, that is actuated on application of the service or foot brake and that may be incorporated with a tail lamp.

2. One or more lamps or a mechanical signal device that is capable of clearly indicating an intention to turn either to the right or to the left and that is visible both from the front and rear.

B. A stop lamp shall be plainly visible and understandable from a distance of one hundred feet to the rear both during normal sunlight and at nighttime. A signal lamp or lamps indicating the intention to turn shall be visible and understandable during daytime and nighttime from a distance of one hundred feet both to the front and rear. If a vehicle is equipped with a stop lamp, tail lamp or other signal lamp, each lamp shall:

1. Be maintained at all times in good working condition.

2. Not project a glaring or dazzling light.

C. A mechanical signal device shall be self-illuminated when in use at the times provided in section 28-922.

§ 28-940 Additional lighting equipment

A motor vehicle may be equipped with any of the following:

1. Not more than two side cowl or fender lamps that emit an amber or white light without glare.

2. Not more than one running board courtesy lamp on each side of the motor vehicle that emits a white or amber light without glare.

3. Not more than two backup lamps either separately or in combination with other lamps, but a backup lamp shall not be lighted when the motor vehicle is in forward motion.

§ 28-941 Multiple beam road lighting equipment arrangement

Except as otherwise provided in this article, the headlamps, the auxiliary driving lamp or the auxiliary passing lamp or combinations of the headlamps, driving lamp or passing lamp on a motor vehicle other than a motor driven cycle shall be arranged so that selection may be made between distributions of light projected to different elevations, subject to the following requirements and limitations:

1. There shall be an uppermost distribution of light, or composite beam, so aimed and of sufficient intensity to reveal persons and vehicles at a distance of at least three hundred fifty feet ahead for all conditions of loading.

2. There shall be a lowermost distribution of light, or composite beam, so aimed and of sufficient intensity to reveal persons and vehicles at a distance of at least one hundred feet ahead, and under any condition of loading, none of the high intensity portion of the beam shall be directed to strike the eyes of an approaching driver.

3. A new motor vehicle, other than a motor driven cycle or a fully autonomous vehicle incapable of operation by a human driver, that is registered in this state and that has multiple beam road lighting equipment shall be equipped with a beam indicator that is:

(a) Lighted when the uppermost distribution of light from the headlamps is in use and not otherwise lighted.

(b) Designed and located so that when lighted it is readily visible without glare to the driver of the vehicle.

4. A person shall not operate a motor vehicle with a colored transparent or translucent substance or material installed, affixed or applied on or in front of the headlamps, the auxiliary driving lamp or the auxiliary passing lamp or combinations of the headlamps, driving lamp or passing lamp that would obstruct, reduce or interfere with the visibility or effectiveness of the headlamps or that would change the color of light emitted. This paragraph does not prohibit the placement of clear transparent material mounted in front of the headlamps, fog lamps or auxiliary driving lamps.

§ 28-942 Multiple beam road lighting equipment usage

If a motor vehicle is operated on a roadway or shoulder adjacent to a roadway during the times provided in section 28-922, the driver shall use a distribution of light or composite beam that is directed high enough and that has sufficient intensity to reveal persons and vehicles at a safe distance in advance of the vehicle, subject to the following requirements and limitations:

1. If a driver of a vehicle approaches an oncoming vehicle within five hundred feet, the driver shall use a distribution of light or composite beam aimed so that the glaring rays are not projected into the eyes of the oncoming driver. The lowermost distribution of light or composite beam provided in section 28-941, paragraph 2 is deemed to avoid glare at all times, regardless of road contour and loading.

2. If the driver of a vehicle follows another vehicle within two hundred feet to the rear, except when engaged in the act of overtaking and passing, the driver shall use a distribution of light permissible under this article other than the uppermost distribution of light specified in section 28-941, paragraph 1.

§ 28-943 Single beam road lighting equipment

Head lamps that are arranged to provide a single distribution of light are permitted on motor vehicles manufactured and sold before January 1, 1951, and on neighborhood electric vehicles, in lieu of multiple beam road lighting equipment specified in this article, if the single distribution of light complies with the following requirements and limitations:

1. The head lamps are aimed so that when the vehicle is not loaded none of the high intensity portion of the light projects, at a distance of twenty-five feet ahead, higher than a level of five inches below the level of the center of the lamp that is aimed and in no case higher than forty-two inches above the level on which the vehicle stands at a distance of seventy-five feet ahead.

2. The intensity is sufficient to reveal persons and vehicles at a distance of at least two hundred feet.

§ 28-944 Lighting equipment on motor driven cycles

The head lamp or head lamps on a motor driven cycle may be of the single beam or multiple beam type and shall comply with requirements and limitations as follows:

1. A head lamp or head lamps on a motor driven cycle shall be of sufficient intensity to reveal a person or a vehicle at a distance of not less than one hundred feet when the motor driven cycle is operated at a speed of less than twenty-five miles per hour and at a distance of not less than two hundred feet when the motor driven cycle is operated at a speed of twenty-five or more miles per hour, and the motor driven cycle is subject to the speed limitations in section 28-705.

2. If the motor driven cycle is equipped with a multiple beam head lamp or head lamps:

(a) The upper beam shall meet the minimum requirements provided in paragraph 1 of this section and shall not exceed the limitations set forth in section 28-941, paragraph 1.

(b) The lowermost beam shall meet the requirements applicable to a lowermost distribution of light as set forth in section 28-941, paragraph 2.

3. If the motor driven cycle is equipped with a single beam lamp or lamps, the lamp or lamps shall be aimed so that when the vehicle is loaded none of the high intensity portion of light, at a distance of twenty-five feet ahead, projects higher than the level of the center of the lamp from which it comes.

§ 28-945 Alternate road lighting equipment

A motor vehicle, except a commercial vehicle as defined in section 28-2231, may be operated under the conditions specified in section 28-922 when it is equipped with two lighted lamps that are on the front of the motor vehicle and that are capable of revealing persons and objects seventy-five feet ahead in lieu of lamps required in section 28-941 or 28-943, but the motor vehicle shall not be operated at a speed of more than twenty miles per hour.

§ 28-946 Number of driving lamps required or permitted

A. At all times provided in section 28-922, at least two lighted lamps shall be displayed, one on each side at the front of a motor vehicle other than a motorcycle or motor driven cycle, except when the vehicle is parked subject to the rules governing lights on parked vehicles.

B. If a motor vehicle equipped with head lamps as required by this article is also equipped with any auxiliary lamps, spot lamp or other lamp on the front of the motor vehicle projecting a beam of intensity greater than three hundred candlepower, not more than four of any such lamps on the front of a vehicle shall be lighted at any one time when on a highway.

§ 28-947 Special restrictions on lamps

A. A person shall direct a lighted lamp or illuminating device on a motor vehicle, other than a head lamp, spot lamp, auxiliary lamp or flashing front direction signal, that projects a beam of light of an intensity greater than three hundred candlepower so that no part of the beam strikes the level of the roadway on which the vehicle stands at a distance of more than seventy-five feet from the vehicle.

B. A person shall not drive or move a vehicle or equipment on a highway with a lamp or device on the vehicle that is capable of displaying a red or red and blue light or lens visible from directly in front of the center of the vehicle. Lights visible from the front of a vehicle shall be amber or white. This section does not apply to either of the following:

1. An authorized emergency vehicle or a vehicle on which a red or red and blue light or lens visible from the front is used by a law enforcement officer for traffic control while employed in an off-duty capacity for an entity other than the law enforcement agency or as expressly authorized or required by this chapter.

2. An emergency vehicle that is solely used for hobby or display purposes and that has been issued a historic vehicle license plate pursuant to section 28-2484 if either of the following applies:

(a) The lights are covered and are not activated while a person is transporting or driving the vehicle to or from a parade, authorized assemblage of historic vehicles or test.

(b) The lights are activated only in a parade, for an authorized assemblage of historic vehicles or for testing purposes.

C. Except as provided in subsection D or E of this section, flashing lights on motor vehicles are prohibited except either:

1. On authorized emergency vehicles, school buses or snow removal equipment.

2. As warning lights on disabled or parked vehicles.

3. On a vehicle as a means for indicating a right or left turn.

D. A vehicle may have lamps that may be used to warn the operators of other vehicles of the presence of a vehicular traffic hazard requiring the exercise of unusual care in approaching, overtaking or passing. The vehicle may display these lamps as a warning in addition to any other warning signals required by this article. The lamps used to display the warning to the front shall be mounted at the same level and as widely spaced laterally as practicable and shall display simultaneously flashing white or amber lights or any shade of color between white and amber. The lamps used to display the warning to the rear shall be mounted at the same level and as widely spaced laterally as practicable and shall show simultaneously flashing amber or red lights or any shade of color between amber and red. These warning lights shall be visible from a distance of at least one thousand five hundred feet under normal atmospheric conditions at night.

E. A person may equip a motorcycle with a means of modulating the intensity of a head lamp beam between the higher and lower brightness at a rate of two hundred to two hundred eighty cycles per minute. A person shall not modulate the head lamp beam during the hours of darkness as prescribed in section 28-922.

§ 28-948 Snow removal equipment lamps

A person shall not operate snow removal equipment on a highway unless the lamps on the equipment comply with and are lighted when and as required by applicable federal safety standards and specifications.

§ 28-949 Selling or using lamps

A. A person shall not have for sale, sell or offer for sale for use on or as a part of the equipment of a motor vehicle, trailer or semitrailer or shall not use on any such vehicle a reflector that is required by this article, head lamp, auxiliary driving lamp, rear lamp, signal lamp or parts of any of the foregoing that tend to change the original design or performance unless the lamps or reflectors are of a type that meets applicable federal safety standards.

B. A person shall not have for sale, sell or offer for sale for use on or as a part of the equipment of a motor vehicle, trailer or semitrailer a lamp or device that is described in this section unless the lamp or device bears the trademark or name under which it is approved so as to be legible when installed.

C. A person shall not use on any motor vehicle, trailer or semitrailer a lamp that is described in this section unless the lamp is mounted and adjusted to focus and aim pursuant to applicable federal safety standards.

§ 28-952 Required brake equipment

A. The following brake equipment is required:

1. A motor vehicle, other than a motorcycle, all-terrain vehicle or motor driven cycle, if it is operated on a highway shall be equipped with brakes adequate to control the movement of and to stop and hold the vehicle, including two separate means of applying the brakes, each of which means is effective to apply the brakes to at least two wheels. If these two separate means of applying the brakes are connected in any way, they shall be constructed so that failure of any one part of the operating mechanism does not leave the motor vehicle without brakes on at least two wheels.

2. A motorcycle, an all-terrain vehicle and every motor driven cycle when operated on a highway shall be equipped with at least one brake that may be operated by hand or foot.

3. When it is operated on a highway a trailer or semitrailer with a gross weight of three thousand pounds or more shall be equipped with brakes that are adequate to control the movement of and to stop and to hold the vehicle and that are designed to either be applied by the driver of the towing motor vehicle from its cab or be of a type that operates automatically when the service brakes of the towing motor vehicle are applied. The brakes shall be designed and connected so that in case of an accidental breakaway of the towed vehicle the brakes shall be automatically applied, except that brakes are not required on all wheels of a truck that is being towed as a semitrailer and that is being towed in a drive-away, tow-away operation, if the combination of vehicles is capable of complying with all state and federal brake performance requirements. Only those brakes on the vehicle being towed need to be operative as may be necessary to ensure compliance with the performance requirements.

4. A new motor vehicle, trailer or semitrailer, except a motorcycle, all-terrain vehicle or motor driven cycle, sold in this state and operated on the highways shall be equipped with service brakes on all wheels of the vehicle, except that a semitrailer or trailer with a gross weight of less than three thousand pounds need not be equipped with brakes.

5. In any combination of motor drawn vehicles, means shall be provided for either or both of the following if capable of being used alternatively:

(a) Applying the rearmost trailer brakes of a trailer equipped with brakes in approximate synchronism with the brakes on the towing vehicle and developing the required braking effort on the rearmost wheels at the fastest rate.

(b) Applying braking effort first on the rearmost trailer equipped with brakes.

6. A motor vehicle and combination of vehicles manufactured or sold in this state after July 1, 1964, except motorcycles, all-terrain vehicles and motor driven cycles, shall be equipped with parking brakes that are:

(a) Adequate to hold the vehicle on any grade on which it is operated under all conditions of loading on a surface free from snow, ice or loose material.

(b) Capable of being applied in conformance with the requirements of subdivision (a) of this paragraph by the driver's muscular effort, by spring action or by equivalent means. The operation of the parking brakes may be assisted by the service brakes or other source of power, if failure of the service brake actuation system or other power assisting mechanism will not prevent the parking brakes from being applied in conformance with the foregoing requirements.

(c) Designed so that when the brakes are applied they shall remain applied with the required effectiveness despite exhaustion of any source of energy or leakage of any kind.

7. The same brake drums, brake shoes and lining assemblies, brake shoe anchors and mechanical brake shoe actuation mechanism normally associated with the wheel brake assemblies may be used for both the service brakes and the parking brakes. If the means of applying the parking brakes and the service brakes are connected in any way, they shall be constructed so that failure of any one part does not leave the vehicle without operative brakes.

8. The brake shoes operating within or on the drums on the vehicle wheels of a motor vehicle may be used for both service and hand operation.

B. At all times, under all conditions of loading, on a dry, smooth, level road free from loose material and on application of the service or foot brake, a motor vehicle or combination of motor drawn vehicles shall be capable of being stopped within the distances specified below or of being decelerated at a sustained rate corresponding to these distances:

Feet to stop Deceleration

from 20 miles in feet

per hour per second

Vehicles or combinations of

vehicles having brakes on

all wheels 30 14

Vehicles or combinations of

vehicles not having brakes

on all wheels 40 10.7

C. Brakes shall be maintained in good working order and shall be adjusted to operate as equally as practicable with respect to the wheels on opposite sides of the vehicle.

§ 28-953 Brakes on all-terrain vehicles and motor driven cycles

A. The director may:

1. Require an inspection of the brake on an all-terrain vehicle or a motor driven cycle.

2. Disapprove a brake that does not comply with the performance ability standard provided in section 28-952 or that is not so designed or constructed to ensure reasonable and reliable performance in actual use.

B. The director may refuse to register or may suspend or revoke the registration of a vehicle referred to in this section if the director determines that the brake on the vehicle does not comply with this section.

C. A person shall not operate on a highway a vehicle referred to in this section if the director has disapproved the brake equipment on the vehicle or type of vehicle.

§ 28-954 Horns and warning devices

A. A motor vehicle when operated on a highway shall be equipped with a horn that is in good working order and that is capable of emitting sound audible under normal conditions from a distance of at least two hundred feet. Any horn or other warning device shall not emit an unreasonably loud or harsh sound or a whistle.

B. If reasonably necessary to ensure the safe operation of a motor vehicle, the driver shall give an audible warning with the driver's horn but shall not otherwise use the horn when on a highway.

C. A vehicle shall not be equipped with and a person shall not use on a vehicle a siren, whistle or bell, except as otherwise permitted in this section.

D. A vehicle may but is not required to be equipped with a theft alarm signal device that is arranged so that it cannot be used by the driver as an ordinary warning signal.

E. An authorized emergency vehicle may be equipped with a siren, whistle or bell that is capable of emitting sound audible under normal conditions from a distance of at least five hundred feet and that is of a type approved by the department. The siren shall not be used except when the vehicle is operated in response to an emergency call or in the immediate pursuit of an actual or suspected violator of the law or when necessary to serve a civil traffic complaint. During these events the driver of the vehicle shall sound the siren when reasonably necessary to warn pedestrians and other drivers of the approach of the emergency vehicle.

F. A siren shall be allowed on a fire engine that is solely used for hobby or display purposes and that has been issued a historic vehicle license plate pursuant to section 28-2484 if either of the following applies:

1. The siren is covered and is not activated while a person is transporting or driving the vehicle to or from a parade, authorized assemblage of historic vehicles or test.

2. The siren is activated only in a parade, for an authorized assemblage of historic vehicles or for testing purposes.

§ 28-955 Mufflers; noise and air pollution prevention; emissions control devices; civil penalty; exception

A. A motor vehicle shall be equipped at all times with a muffler that is in good working order and that is in constant operation to prevent excessive or unusual noise.

B. A person shall not use a muffler cutout, bypass or similar device on a motor vehicle on a highway.

C. The engine and power mechanism of a motor vehicle shall be equipped and adjusted to prevent the escape of excessive fumes or smoke.

D. Beginning with motor vehicles and motor vehicle engines of the 1968 model year, motor vehicles and motor vehicle engines shall be equipped with emissions control devices that meet the standards established by the director of environmental quality.

E. A person who violates this section is subject to a civil penalty of at least one hundred dollars.

F. This section does not apply to an electrically powered motor vehicle.

§ 28-955.01 Motorcycles; noise level equipment; unauthorized equipment

A. A person shall not operate or as an owner allow the operation of a motorcycle in this state that is not equipped with the manufacturer's original muffler or other original noise reduction equipment or with a replacement muffler or replacement noise reduction equipment capable of reducing the noise levels below the maximum operating noise levels established pursuant to 40 Code of Federal Regulations section 205.152.

B. A person shall not use a muffler cutout, bypass or similar device on a motorcycle operated in this state.

§ 28-955.03 Exemption for racing motorcycles; definition

A. Section 28-955.01 does not apply to a racing motorcycle operated in a racing event or in a facility used for a racing event.

B. For the purposes of this section, "racing motorcycle" means either:

1. A motorcycle that is intended by the manufacturer to be operated at a facility used for a racing event.

2. A motorcycle that has been modified by the owner to be operated at a facility used for a racing event.

§ 28-955.04 Exhaust system; visual inspection; requirements; civil penalty

A. A commercial motor vehicle that operates in this state shall have an exhaust system that is detectable by a visual inspection and that meets all of the following:

1. Is free from a defect that adversely affects sound reduction.

2. Is equipped with either a muffler or other noise dissipative device.

3. Is not equipped with a cutout, bypass or similar device.

B. A person who violates this section is subject to a civil penalty of at least five hundred dollars. If the person shows the court that a muffler has been installed or the existing muffler has been serviced to comply with subsection A, the court may reduce or waive the civil penalty.

§ 28-956 Mirrors; exception

A motor vehicle that is constructed or loaded in a manner that obstructs the driver's view to the rear of the vehicle from the driver's position shall be equipped with two mirrors located in a manner to reflect to the driver a view of the highway for a distance of at least two hundred feet to the rear of the vehicle. This section does not apply to a fully autonomous vehicle that is incapable of operation by a human driver.

§ 28-957 Windshield wipers required; exceptions

A. The windshield on a motor vehicle shall be equipped with a device for cleaning rain, snow or other moisture from the windshield. The device shall be constructed in a manner to be controlled or operated by the driver of the vehicle.

B. A windshield wiper on a motor vehicle shall be maintained in good working order.

C. This section does not apply to a golf cart or a fully autonomous vehicle that is incapable of operation by a human driver.

§ 28-957.01 Windshields required; exceptions

A. The following vehicles shall be equipped with an adequate windshield:

1. A passenger vehicle, except a motorcycle, an all-terrain vehicle and a golf cart manufactured or modified before June 17, 1998.

2. A motor truck or truck tractor, except fire trucks, fire engines or other fire apparatus, whether publicly or privately owned.

B. This section does not apply to any of the following:

1. An implement of husbandry.

2. An antique, classic or horseless carriage automobile if it was not originally equipped with a windshield.

3. A fully autonomous vehicle that is incapable of operation by a human driver.

§ 28-958 Tire equipment restrictions

A. A solid rubber tire on a vehicle shall have rubber on its entire traction surface at least one inch thick above the edge of the flange of the entire periphery.

B. A tire on a vehicle that is moved on a highway shall not have on its periphery any block, stud, flange, cleat, spike or other protuberance that is made of any material other than rubber and that projects beyond the tread of the traction surface of the tire, except that it is permissible to use:

1. Farm machinery with tires having protuberances that will not injure the highway.

2. Tire chains of reasonable proportions on a vehicle when required for safety because of snow, ice or other conditions tending to cause a vehicle to skid.

3. From October 1 to May 1 pneumatic tires containing metal type studs of tungsten carbide or other suitable material that are inserted or constructed in a manner so that the number of studs or the percentage of metal in contact with the roadway does not exceed three per cent of the total tire area in contact with the roadway under any conditions.

C. The director and local authorities in their respective jurisdictions may issue special permits authorizing the operation on a highway of traction engines or tractors having movable tracks with transverse corrugations on the periphery of the movable tracks or farm tractors or other farm machinery, the operation of which on a highway would otherwise be prohibited under this chapter.

§ 28-958.01 Rear fender splash guards

A. A person shall not operate a truck, trailer, semitrailer or bus on a highway unless the vehicle is equipped with rear fender splash guards that comply with the specifications provided in this section.

B. The splash guards:

1. Shall be attached in a manner that prevents the splashing of mud or water on the windshield of other motor vehicles.

2. Shall extend to a length of not more than eight inches from the ground.

3. Shall be wide enough to cover the full tread or treads of the tires being protected.

4. Shall be installed close enough to the tread surface of the tire or wheel to control the side throw of the bulk of the thrown road surface material.

5. May be constructed of a flexible rubberized material.

6. Shall be attached in a manner that, regardless of movement either in the splash guards or the vehicle, the splash guards retain their general parallel relationship to the tread surface of the tire or wheel under all ordinary operating conditions.

C. This section does not apply to:

1. A vehicle commonly known as a pickup truck with a manufacturer's gross vehicle weight rating of ten thousand pounds or less, except that this section applies if the pickup truck has been modified from the original bumper height design to raise the center of gravity of the pickup truck.

2. A truck tractor or converter dolly when used in combination with another vehicle.

3. A single, tandem or triple axle trailer with fenders that are wide enough to cover the full tread or treads of the tires being protected and that extend to a length of not more than fourteen inches from the ground.

§ 28-959 Safety glass required; applicability; denial or suspension of registration; definition

A. A person shall not sell and the department shall not register a new motor vehicle as specified in this section unless the vehicle is equipped with safety glass wherever glass is used in doors, windows and windshields.

B. This section applies to passenger motor vehicles, other than golf carts, including passenger buses and school buses. For trucks, including truck tractors, the requirements of this section for safety glass apply to all glass used in doors, windows and windshields in the drivers' compartments of the vehicles.

C. The director shall not register a new motor vehicle unless it is equipped with an approved type of safety glass. The director shall suspend the registration of any motor vehicle that is subject to this section and that the director finds is not equipped with an approved type of safety glass. The suspension shall continue until the motor vehicle is made to conform to the requirements of this section.

D. A person shall not replace glass or glazing materials used in partitions, doors, windows, windshields or wind deflectors in a motor vehicle with a material other than safety glass.

E. For the purposes of this section, "safety glass" means a product composed of glass that is manufactured, fabricated or treated in a manner that substantially prevents shattering and flying of the glass when struck or broken and that meets applicable federal safety standards.

§ 28-959.01 Materials on windows or windshield; exceptions; requirements; violation; definitions

A. This section does not apply to:

1. Front side wing vents and windows that have a substance or material in conjunction with glazing material that has a light transmission of thirty-three percent plus or minus three percent and a luminous reflectance of thirty-five percent plus or minus three percent.

2. Front side wing vents and windows that have a substance or material not attached in conjunction with glazing material that is used by a vehicle operator on a moving vehicle during daylight hours as provided in section 28-922.

3. Rearview mirrors.

4. Adjustable nontransparent sun visors that are mounted forward of the side windows and that are not attached to the glass.

5. Signs, stickers or other materials that are either:

(a) Displayed in a seven inch square in the lower corner of the windshield farthest removed from the driver.

(b) Displayed in a five inch square in the lower corner of the windshield nearest the driver.

6. Side windows that are to the rear of the driver and rear windows that have a substance or material in conjunction with glazing material that has a luminous reflectance of thirty-five percent plus or minus three percent or less.

7. Direction, destination or termination signs on a passenger common carrier motor vehicle, if the signs do not interfere with the driver's clear view of approaching traffic.

8. Rear window wiper motors.

9. A rear trunk lid handle or hinges.

10. The rear window or windows if the motor vehicle is equipped with outside mirrors that are on both left-hand and right-hand sides of the vehicle and that are located in a manner to reflect to the driver a view of the highway through each mirror for a distance of at least two hundred feet to the rear of the motor vehicle.

11. Transparent material that is installed, affixed or applied to the topmost portion of the windshield if:

(a) The bottom edge of the material is at least twenty-nine inches above the undepressed driver's seat when measured from a point five inches in front of the bottom of the backrest with the driver's seat in its rearmost and lowermost position with the vehicle on a level surface.

(b) The material is not red or amber in color.

12. Safety monitoring equipment and driver feedback if mounted in either of the following locations:

(a) Immediately behind, slightly above or slightly below the rearview mirror.

(b) Where the rearview mirror would commonly be positioned if the motor vehicle is without a windshield mounted rearview mirror.

B. Except as otherwise provided in this section, a person shall not operate a motor vehicle with an object or material placed, displayed, installed, affixed or applied on the windshield or side or rear windows or with an object or material placed, displayed, installed, affixed or applied in or on the motor vehicle in a manner that obstructs or reduces a driver's clear view through the windshield or side or rear windows.

C. Except as otherwise provided in this section, a person shall not place, install, affix or apply a transparent material on the windshield or side or rear windows of a motor vehicle if the material alters the color or reduces the light transmittance of the windshield or side or rear windows.

D. Each manufacturer shall certify to the director that the product or material the manufacturer manufactures or assembles complies with the reflectivity and transmittance requirements of this section.

E. This section does not allow or prohibit the use and placement of federal, state or local certificates on any window as are required or prohibited by applicable laws.

F. A person who sells or installs objects or materials under this section shall set forth in a conspicuous manner that the installation of the object or material to the driver or passenger side window may be illegal in some states.

G. On application from a person required for medical reasons to be shielded from the direct rays of the sun that is supported by written attestation of this fact from a physician licensed pursuant to title 32, chapter 13, 14 or 17, the department may issue an exemption from this section for a motor vehicle belonging to the person or in which the person is a habitual passenger. A person may operate a vehicle or alter the color or reduce the light transmitted through the side or rear windows of a vehicle pursuant to an exemption issued by the director.

H. In this section, unless the context otherwise requires:

1. "Light transmission" means the ratio of the amount of total light, expressed in percentages, that is allowed to pass through the product or material including the glazing to the amount of total light falling on the product or material and the glazing.

2. "Luminous reflectance" means the ratio of the amount of total light, expressed in percentages, that is reflected outward by the product or material to the amount of total light falling on the product or material.

3. "Manufacturer" means either:

(a) A person who engages in the manufacturing or assembling of sun screening products or materials designed to be used in conjunction with vehicle glazing materials.

(b) A person who fabricates, laminates or tempers the glazing material incorporating the capacity to reflect or to reduce the transmittance of light during the manufacturing process.

§ 28-960 Flares; warning devices; requirements

A. Except as provided in subsection B of this section, a person shall not operate a motor truck, passenger bus or truck tractor on a highway outside the corporate limits of a city or town from a half hour after sunset to a half hour before sunrise unless the following equipment is carried in the vehicle:

1. At least three flares or three red electric lanterns that comply with the following:

(a) Each flare or lantern is capable of being seen and distinguished at a distance of five hundred feet under normal atmospheric conditions at nighttime.

(b) Each flare or liquid-burning pot torch is capable of burning for at least twelve hours in five miles per hour wind velocity and capable of burning in any air velocity from zero to forty miles per hour.

(c) Each flare is substantially constructed to withstand reasonable shocks without leaking.

(d) Each flare is carried in the vehicle in a metal rack or box.

(e) Each red electric lantern is capable of operating continuously for at least twelve hours and is substantially constructed to withstand reasonable shock without breakage.

2. At least three red-burning fusees, unless red electric lanterns are carried, that are:

(a) Made in accordance with specifications of the bureau of explosives, 30 Vesey Street, New York City and so marked.

(b) Capable of burning at least fifteen minutes.

3. At least two red cloth flags that are at least twelve inches square and have standards to support the flags.

B. At the time and under the conditions stated in subsection A of this section, a person shall not operate a motor vehicle used in transporting flammable liquids in bulk or transporting compressed flammable gases, unless three red electric lanterns meeting the requirements stated in subsection A of this section are carried in the vehicle. A flare, fusee or signal produced by a flame shall not be carried in a vehicle described in this subsection.

C. A person is in compliance with this section if the person operates a motor vehicle described in this section and carries in the vehicle three portable reflector units that are designed and constructed to meet the requirements of 49 Code of Federal Regulations section 571.125.

§ 28-961 Display of warning devices; disabled vehicle

A. Except as provided in subsection B of this section, if a motor truck, passenger bus, truck tractor, trailer, semitrailer or pole trailer is disabled on the traveled portion of a highway or the shoulder of a highway outside of a city or town at a time when lighted lamps are required on vehicles, the driver of the vehicle shall display the following warning devices on the highway during the time the vehicle is disabled on the highway:

1. A lighted fusee immediately placed on the roadway at the traffic side of the motor vehicle unless electric lanterns are displayed.

2. Within the burning period of the fusee and as promptly as possible, three lighted flares or pot torches or three electric lanterns placed on the roadway as follows:

(a) One at a distance of approximately one hundred feet in advance of the vehicle and one at a distance of approximately one hundred feet to the rear of the vehicle, each in the center of the lane of traffic occupied by the disabled vehicle.

(b) One at the traffic side of the vehicle approximately ten feet rearward or forward of the vehicle.

B. If a vehicle that is used in transporting flammable liquids in bulk or compressed flammable gases is disabled on a highway at a time or place provided in subsection A of this section, the driver of the vehicle shall display on the roadway the following lighted warning devices:

1. One red electric lantern immediately placed on the roadway at the traffic side of the vehicle.

2. Two other red electric lanterns placed to the front and rear of the vehicle in the same manner prescribed for flares in subsection A of this section.

C. If a vehicle of a type provided in subsection B of this section is disabled, the use of flares, fusees or any signal produced by flame as warning signals is prohibited.

D. If a vehicle referred to in this section is disabled on the traveled portion of a highway or the shoulder of a highway outside of a city or town at a time when the display of fusees, flares or electric lanterns is not required, the driver of the vehicle shall display two red flags on the roadway in the lane of traffic occupied by the disabled vehicle, one at a distance of approximately one hundred feet in advance of the vehicle and one at a distance of approximately one hundred feet to the rear of the vehicle.

E. A person is in compliance with this section if three portable reflector units are both:

1. Displayed at the times and under the conditions provided in this section either during the daytime or at nighttime.

2. Placed on the roadway in the locations prescribed by this section for the placing of electric lanterns and lighted flares.

F. The flares, fusees, lanterns and flags required in this section shall conform with the requirements of section 28-960 applicable to the flares, fusees, lanterns and flags.

§ 28-962 Vehicles transporting explosives; rules

A. A person operating a vehicle transporting an explosive on a highway shall comply at all times with the following provisions:

1. The vehicle shall be placarded in accordance with the placarding requirements specified in 49 Code of Federal Regulations part 172.

2. The vehicle shall be equipped with a fire extinguisher as required in 49 Code of Federal Regulations part 393.

B. The director shall adopt additional rules governing the transportation of explosives and other dangerous articles by vehicles on the highways as the director deems advisable for the protection of the public.

§ 28-963 Image display device; prohibition; exceptions; definition

A. While a person is driving a motor vehicle and the motor vehicle is in motion on a public roadway or on an off-highway vehicle trail as defined in section 28-1171, the person shall not:

1. View a broadcast television image or a visual image from an image display device within the motor vehicle unless the visual image is a static background image or imagery in support of mapping services or applications.

2. Watch a video or movie on a portable wireless communication device or stand-alone electronic device other than watching data related to the navigation of the motor vehicle, except that a person may view data related to the navigation of the motor vehicle, vehicle information or information related to driving a motor vehicle.

3. Record or broadcast a video on a portable wireless communication device or stand-alone electronic device, except that the person may use the devices for the sole purpose of continuously recording or broadcasting video within or outside of the motor vehicle.

B. A person shall not operate a motor vehicle with an image display device that is visible to a driver seated in a normal driving position when the vehicle is in motion.

C. This section does not apply to any of the following:

1. Emergency vehicles.

2. Image display devices that do any of the following:

(a) Display images that provide a driver with navigation and related traffic, road and weather information.

(b) Provide vehicle information, controls or information related to driving a vehicle.

(c) Enhance or supplement a driver's view of the area to the front, rear or side of the vehicle.

(d) Permit a driver to monitor the vehicle occupants seated behind the driver.

(e) Display information intended to enhance traffic safety.

3. Image display devices that are built into the motor vehicle and that do not display images to a driver while the vehicle is in motion.

4. Image display devices that are portable and are not used to display dynamic visual images other than for purposes of navigation or global positioning to a driver while the vehicle is in motion.

5. Image display devices present in vehicles of a public service corporation or any political subdivision of this state and used for service or maintenance of its facilities.

6. Any use of an image display device while the vehicle is parked.

D. For the purposes of this section:

1. "Image display device" means equipment capable of displaying to the driver of a motor vehicle rapidly changing images that are either of the following:

(a) A broadcast television image or similar entertainment content transmitted by other wireless means to the image display device.

(b) A dynamic visual image, other than text, from a digital video disc or other storage device.

2. "Portable wireless communication device" has the same meaning prescribed in section 28-914.

3. "Stand-alone electronic device" has the same meaning prescribed in section 28-914.

§ 28-964 Motorcycles; all-terrain vehicles; motor driven cycles; equipment; exception; citations; civil penalty; community restitution

A. An operator or passenger of a motorcycle, all-terrain vehicle or motor driven cycle who is under eighteen years of age shall wear at all times a protective helmet on the operator's or passenger's head in an appropriate manner. A law enforcement officer may issue a citation for a violation of this subsection only to an operator or passenger who is sixteen or seventeen years of age and who has been issued a driver license or permit. The protective helmet shall be safely secured while the operator or passenger is operating or riding on the motorcycle, all-terrain vehicle or motor driven cycle. An operator of a motorcycle, all-terrain vehicle or motor driven cycle shall wear at all times protective glasses, goggles or a transparent face shield of a type approved by the director unless the motorcycle, all-terrain vehicle or motor driven cycle is equipped with a protective windshield. This subsection does not apply to any of the following:

1. Electrically powered three wheeled vehicles or three wheeled vehicles on which the operator and passenger ride within an enclosed cab.

2. A motorcycle, all-terrain vehicle or motor driven cycle that is a farm or agricultural vehicle if the operator or passenger is engaged in agricultural work.

3. An all-terrain vehicle as defined in section 28-101, paragraph 3, subdivision (b).

4. A motorcycle, all-terrain vehicle or motor driven cycle that is operated on private property.

B. A motorcycle, all-terrain vehicle and motor driven cycle shall be equipped with a rearview mirror, seat and footrests for the operator. A motorcycle, all-terrain vehicle or motor driven cycle operated with a passenger shall be equipped with a seat and footrests for the passenger.

C. An operator of a motorcycle, all-terrain vehicle or motor driven cycle who is at least eighteen years of age may be issued a citation if either of the following occurs:

1. A passenger of the motorcycle, all-terrain vehicle or motor driven cycle is under eighteen years of age and is not wearing a protective helmet as prescribed in subsection A of this section.

2. The operator or passenger of the motorcycle, all-terrain vehicle or motor driven cycle is under eighteen years of age and is both:

(a) Not wearing a protective helmet as prescribed in subsection A of this section.

(b) In the same group or party as the operator of the initial motorcycle, all-terrain vehicle or motor driven cycle who is at least eighteen years of age.

D. For an initial violation of this section, a person is subject to a civil penalty of $100 or community service if the person is sixteen or seventeen years of age at the time of the violation.

§ 28-965 Fuel tank caps

A person shall not operate a motor vehicle on a highway unless the filling spout for the fuel tank is properly closed by means of a cap or cover composed of a noncombustible material that meets or exceeds applicable federal safety standards. This section does not apply to an electrically powered motor vehicle.

§ 28-966 Neighborhood electric vehicles; neighborhood electric shuttles; motorized quadricycles; neighborhood occupantless electric vehicles; speed; restrictions; exception; definition

A. A neighborhood electric vehicle and a neighborhood electric shuttle shall not be operated at a speed of more than twenty-five miles per hour. A motorized quadricycle shall not be operated at a speed of more than fifteen miles per hour.

B. A neighborhood electric vehicle, a neighborhood electric shuttle and a motorized quadricycle shall not be driven on a highway that has a posted speed limit of more than thirty-five miles per hour. This subsection does not prohibit a neighborhood electric vehicle, a neighborhood electric shuttle or a motorized quadricycle from crossing a highway that has a posted speed limit of more than thirty-five miles per hour at an intersection.

C. A neighborhood electric vehicle, a neighborhood electric shuttle and a motorized quadricycle shall have a notice of the operational restrictions applying to the vehicle permanently attached to or painted on the vehicle in a location that is in clear view of the driver. This subsection does not apply to a fully autonomous vehicle that is incapable of operation by a human driver.

D. Notwithstanding subsection B of this section, a neighborhood occupantless electric vehicle may be operated on a highway that has a posted speed limit of forty-five miles per hour or less. This subsection does not prohibit a neighborhood occupantless electric vehicle from crossing a highway that has a posted speed limit of more than forty-five miles per hour at an intersection.

E. When operating on a highway with a posted speed limit of more than thirty-five miles per hour but not exceeding forty-five miles per hour, a neighborhood occupantless electric vehicle is subject to the following restrictions:

1. The neighborhood occupantless electric vehicle must be operated in the right-hand travel lane or as close as practicable to the right-hand curb or edge of the highway, except when preparing for a left turn.

2. On a highway with two travel lanes, the neighborhood occupantless electric vehicle must turn off the roadway to a controlled stop as soon as practicable and when it is safe to do so to allow faster moving vehicles to pass when passing is unsafe because of traffic in the opposite direction or other conditions and there are five or more vehicles immediately behind the neighborhood occupantless electric vehicle.

3. The neighborhood occupantless electric vehicle must display a slow-moving vehicle sign that:

(a) Has a reflective surface that is designed to be clearly visible in daylight and at night from the light of standard automobile headlamps at a distance of at least five hundred feet.

(b) Is mounted base down on the rear of the vehicle at a height that does not impair the visibility of the sign.

(c) Is maintained in a clean and reflective condition.

4. The neighborhood occupantless electric vehicle may not be operated on a highway in which the director or local authorities within their respective jurisdictions have determined and declared, pursuant to section 28-704, subsection B, a minimum speed limit of more than twenty-five miles per hour. This paragraph does not prohibit a neighborhood occupantless electric vehicle from crossing such a highway at an intersection.

5. The neighborhood occupantless electric vehicle may not be operated on a roadway within the boundaries of a public airport terminal and may not be operated at a public airport without express permission of the public airport owner.

6. The neighborhood occupantless electric vehicle may not transport hazardous materials that are regulated under the hazardous materials transportation authorization act of 1994 (P.L. 103-311; 108 Stat. 1673; 49 United States Code sections 5101 through 5128) and that must be placarded under 49 Code of Federal Regulations sections 172.500 through 172.560.

F. Neighborhood occupantless electric vehicles are subject to the requirements of chapter 32 of this title.

G. For the purposes of this section, "highway" means a street or roadway.

Article 17 Inspection of Vehicles

§ 28-981 Vehicle equipment; safety requirement

A. A person shall not drive or move on a highway a motor vehicle, tow truck, trailer, semitrailer or pole trailer or any combination of a motor vehicle, tow truck, trailer, semitrailer or pole trailer unless:

1. The equipment on the vehicle is in good working order and adjustment as required in this chapter.

2. The vehicle is in a safe mechanical condition that does not endanger the driver or other occupant or a person on the highway.

B. The provisions of this article with respect to equipment on vehicles do not apply to trailers used solely in the operation of a farm for the transportation of unprocessed fiber products on the farm or from a farm to a cotton gin, road machinery, road rollers, farm tractors or implements of husbandry when the implement is being incidentally operated or moved on a highway whether as a trailer or self-propelled unit. For the purposes of this subsection, "incidentally operated or moved on a highway" means travel between a farm and another part of the same farm, from one farm to another farm or between a farm and a place of repair, supply or storage.

§ 28-982 Vehicle and equipment inspection; notice of repair or adjustment

A. If at any time there is reasonable cause to believe that a vehicle is unsafe or is not equipped as required by law or that a vehicle's equipment is not in proper adjustment or repair, the superintendent of the highway patrol, members of the highway patrol, other officers and employees of the department of public safety as the director may designate and any peace officer may require the driver of the vehicle to stop and submit the vehicle to an inspection and such test with reference to the inspection as may be appropriate.

B. If the vehicle is in an unsafe condition or any required part or equipment is not present or is not in proper repair and adjustment, the officer shall give a written notice to the driver. The officer's department shall retain the original of the notice. The notice shall state:

1. That the vehicle is required to be placed in safe condition and that the vehicle's equipment is required to be properly repaired and adjusted.

2. The particulars with reference to the requirements provided in paragraph 1.

3. That a certificate of correction or adjustment of illegal or faulty equipment shall be obtained within five days.

C. The director of the department of public safety shall prescribe the form of the notice required by this section.

§ 28-983 Compliance with inspection laws; operation prohibited

A. A person driving a vehicle shall not refuse to submit the vehicle to an inspection and test if required to do so by an officer authorized by section 28-982.

B. On receiving a notice as provided in section 28-982, the owner or driver of the vehicle shall comply with the notice and shall secure within five days the certification of adjustment that is provided on the notice. When the certification is completed, the notice shall be forwarded to the issuing department. In lieu of compliance with this subsection the vehicle shall not be operated, except as provided in subsection C of this section.

C. A person shall not operate a vehicle after receiving a notice pursuant to section 28-982 until the vehicle and its equipment have been placed in proper repair and adjustment and otherwise have been made to conform to the requirements of this chapter, unless it is necessary to return the vehicle to the residence or place of business of the owner or driver that is not more than a distance of twenty miles or to a garage.

D. If repair or adjustment of a vehicle or its equipment is found necessary on inspection, the owner of the vehicle:

1. May obtain the repair or adjustment at any place the owner chooses.

2. Shall not operate the vehicle on a highway until the certification of adjustment is obtained.

§ 28-984 School bus inspection; rules

A. At least annually:

1. Each school bus registered in this state shall be inspected according to rules adopted pursuant to section 28-900.

2. An official certificate of inspection and approval shall be obtained from the department of public safety for each school bus registered in this state.

B. The inspections shall be made and the certificates shall be obtained as prescribed by law and by rules adopted pursuant to section 28-900.

C. Inspection of a school bus shall be made when the bus is initially registered in this state. The superintendent of the school district shall have all school buses that are registered by the district inspected pursuant to this section. If a school bus is privately owned, the owner of the school bus shall have the bus inspected pursuant to this section.

D. The department of public safety shall enforce this section.

§ 28-985 Interstate movement of household goods inspection; rules

The department of public safety is authorized to regulate interstate movement of household goods as outlined in 49 United States Code section 14710. The department of public safety is authorized to adopt and implement rules in order to implement a regulatory program.

Article 18 Vehicle Size, Weight and Load

§ 28-1091 Violation; scope and effect

A. A person shall not drive or move and the owner of a vehicle shall not knowingly cause or permit to be driven or moved on a highway a vehicle or vehicles of a size or weight exceeding the limitations stated in this article or otherwise in violation of this article.

B. The maximum size and weight of vehicles specified in this article are lawful throughout this state. A local authority shall not alter the limitations stated in this article unless authorized by this article.

C. The size, weight and load provisions of this article do not apply to either:

1. Fire apparatus.

2. Urban public transit transportation system vehicles.

3. Implements of husbandry, including farm tractors, that are temporarily moved on a highway.

4. Vehicles operated under the terms of a special permit issued pursuant to this article.

D. A law enforcement officer shall not issue a citation to or detain a motor carrier who does not have a permit issued by the department or a local authority if the motor carrier is on a street or roadway that is controlled by a local authority and all of the following apply:

1. The local authority does not issue permits pursuant to section 28-1103.

2. The motor carrier is unable to obtain a permit required by section 28-1103 from the department solely for the reason that the motor carrier is operating on streets and roadways that are under the jurisdiction of a local authority.

3. The motor carrier is in compliance with rules adopted by the department pursuant to section 28-1103 or ordinances adopted by the local authority that relate to the movement of overdimensional or overweight vehicles.

E. Escort vehicle operators are not responsible for violations of this article or article 19 of this chapter committed by the operator of the escorted vehicle or the owner of the escorted vehicle.

§ 28-1092 Reasonable access; definitions

A. The department shall provide reasonable access to vehicles of legal size to and from terminals and service facilities within one road mile of the national network on highways within its jurisdiction.

B. The local authority shall provide reasonable access to vehicles of legal size to and from terminals and service facilities within one road mile of the national network on highways within its jurisdiction. The local authority shall provide the director with a list of routes or maps designating the highways on which reasonable access is denied by December 1, 1992. The local authority shall update the list annually beginning on December 31, 1993. The department shall consolidate and publish the list annually.

C. Except as otherwise provided by this title, the department or the local authority shall provide reasonable access to vehicles of legal size beyond one road mile of the national network on a route on highways within its jurisdiction if both of the following apply:

1. A test drive on the route or an application of a vehicle template to a plan of the route shows that vehicles of legal size can safely travel on the route.

2. The vehicles are of legal size.

D. The department and the local authority may deny reasonable access to or from the national network by a vehicle of legal size on highways within their jurisdiction as follows:

1. Reasonable access may be denied if access would result in a significant and clearly evident safety problem in relation to a vehicle of legal size.

2. For vehicles that are at least one hundred two inches wide, reasonable access may be denied on specific routes with lanes that are ten feet wide or less.

3. Reasonable access may be denied if denial is related to the specific configuration and resultant safety factor of the individual route, including structural hazards.

4. In denying reasonable access, the department or local authority shall not grant exceptions for categories, types or groups of routes.

E. A person shall submit a written request for reasonable access to the department if it concerns highways under its jurisdiction or to the local authority if it concerns highways under its jurisdiction. If a written request for reasonable access is not acted on within ninety days after receipt by the appropriate jurisdiction, reasonable access is approved. If a written request for reasonable access is denied by the department or the local authority, the person may appeal to the jurisdiction that denied access, and the jurisdiction shall issue a decision within ninety days. If the appeal is denied by the local jurisdiction, the person may request a review by the director of the denial of access.

F. The department shall design a uniform symbol that is an exception sign to convey information that access is denied. The department shall use the sign to indicate any point of exit from the national network that does not have a connecting state or local authority access route to terminals or service facilities.

G. The department or a local authority shall not require a person to obtain a permit for a vehicle of legal size or to pay a fee to gain reasonable access pursuant to this section.

H. For purposes of this section:

1. "National network" means the system of highways that is a part of any segment of the national system of interstate and defense highways or any other qualifying federal aid highway or state highway designated by the director as authorized by the surface transportation assistance act of 1982 (P.L. 97-424; 96 Stat. 2097) and designated pursuant to section 28-1093.

2. "Reasonable access" means providing the most reasonable and practical route available, including allowance for return of the vehicle to the national network on a route other than the route traveled to the terminal or service facility if it is feasible and more practical to follow the alternate route, unless allowing access would result in a significant and clearly evident safety problem.

3. "Service facility" means a facility that provides food, fuel, lodging, repairs or emergency medical care.

4. "Terminal" means a location where either:

(a) Freight originates, terminates or is handled in the transportation process.

(b) Commercial motor carriers maintain operating facilities.

5. "Vehicle of legal size" means a vehicle of a size that meets the limitations prescribed in section 28-1093, subsection C, section 28-1094 and section 28-1095, subsections A and B, subsection C, paragraphs 1, 2, 3 and 4 and subsection D.

§ 28-1093 Vehicle width; exceptions

A. Except as otherwise provided in subsections B and C of this section and section 28-627, the total outside width of a vehicle or the load on the vehicle shall not exceed eight feet.

B. If pneumatic tires, in substitution for the same type or other type of tires, are placed on a vehicle in operation on July 1, 1950:

1. The maximum width from the outside of one wheel and tire to the outside of the opposite wheel and tire shall not exceed eight feet six inches.

2. The outside width of the body of the vehicle or the load on the vehicle shall not exceed eight feet.

C. A person may operate a vehicle with a total width of the vehicle or the load on the vehicle of not more than one hundred two inches, exclusive of safety equipment, on:

1. Any segment of the national system of interstate and defense highways.

2. Any other qualifying federal aid highway.

3. Any state highway, as designated by the director.

4. Streets that are designated by a local authority as follows:

(a) The local authority may designate the streets by signage of the allowable streets or by maintenance of a map or list of allowable streets as approved by a resolution of the local authority.

(b) In designating the streets, the local authority shall consider any reasonable restriction including such safety restrictions as structural hazards and street width and any other safety factors identified by the local authority as a hazard to the motoring public.

5. A highway that reasonably accesses interstate system highways, federal aid highways or state highways from terminals and facilities that provide food, fuel, repairs and lodging or from emergency medical facilities.

D. Notwithstanding subsections A, B and C of this section, the total outside width of a noncommercial recreational vehicle as defined in section 41-4001 may be more than one hundred two inches if the excess width is attributable to recreational vehicle appurtenances that do not extend beyond the exterior rearview mirrors of the recreational vehicle or tow vehicle and the rearview mirrors only extend the distance necessary to provide the appropriate field of view for the vehicle before the appurtenances are attached. For the purposes of this subsection, "recreational vehicle appurtenance":

1. Includes:

(a) An awning and its support hardware.

(b) Any appendage that is intended to be an integral part of the recreational vehicle and that is installed by the manufacturer or dealer.

2. Does not include an item that is temporarily affixed or attached to the exterior of the recreational vehicle by the vehicle's operator for the purpose of transporting the item from one location to another location.

§ 28-1094 Vehicle height; exceptions; special permits

A. Without a permit issued under section 28-1103 or this section, a vehicle unladen or with a load shall not exceed a height of thirteen feet six inches above the level surface on which the vehicle stands.

B. The department with respect to highways under its jurisdiction and a local authority with respect to highways under its jurisdiction shall also designate a system of highways that a vehicle unladen or with a load not exceeding fourteen feet above the level surface on which a vehicle stands may operate without a permit prescribed in subsection C of this section. In designating the streets, the local authority shall consider any reasonable restriction including such safety restrictions as structural hazards, street width and any other safety factors identified by the local authority as a hazard to the motoring public.

C. Notwithstanding section 28-1103, the department with respect to highways under its jurisdiction and a local authority with respect to highways under its jurisdiction, on application in writing and good cause shown, may issue a special permit in writing that is valid for one year and that authorizes the applicant to operate or move a motor vehicle or combination of vehicles on designated routes in this state if the laden height does not exceed fourteen feet. A fee of forty-five dollars is required for each motor vehicle covered by a permit issued pursuant to this subsection. Except as expressly provided in this subsection, the special permit is governed by sections 28-1103, 28-1104 and 28-1105.

D. Notwithstanding section 28-1103, the department with respect to highways under its jurisdiction and a local authority with respect to highways under its jurisdiction, on application and good cause shown, may issue a permit pursuant to this chapter that authorizes the applicant to operate or move a motor vehicle on designated routes in this state if the laden height of the vehicle exceeds fourteen feet. A fee of fifteen dollars is required for each motor vehicle covered by a permit issued pursuant to this subsection. Except as expressly provided in this subsection, the single trip special permit is governed by sections 28-1103, 28-1104 and 28-1105.

§ 28-1095 Vehicle length; exceptions; permits; rules; definitions

A. A vehicle, including any load on the vehicle, shall not exceed a length of forty feet extreme overall dimension, including front and rear bumpers. This subsection does not apply to any of the following:

1. A semitrailer when used in combination with a truck or a truck tractor.

2. A truck that is equipped with a conveyor bed, that is used solely as a fiber and forage module mover and that does not exceed forty-eight feet in length.

3. An articulated bus or articulated trolley coach that does not exceed a length of sixty feet.

4. A bus that is not articulated and that does not exceed a length of forty-five feet.

5. A recreational vehicle, a power unit, a farm vehicle, a horse trailer or wheeled equipment as defined in section 28-2153 if used in combination with two units and if the combination does not exceed sixty-five feet in length.

6. A recreational vehicle as defined in section 41-4001, paragraph 33, subdivision (b) that does not exceed a length of forty-five feet.

B. A vehicle transporter may draw only one semitrailer. A combination of vehicles, excluding a vehicle transporter and the semitrailer it draws, that is coupled together shall not consist of more than two units, except that a truck or a truck tractor and semitrailer may draw either one trailer or a forklift.

C. The following restrictions apply:

1. The length of a semitrailer operating in a truck tractor-semitrailer combination or a truck tractor-semitrailer-forklift combination shall not exceed fifty-seven feet six inches.

2. The length of a semitrailer or trailer operating in a truck tractor-semitrailer-trailer combination shall not exceed twenty-eight feet six inches.

3. The length of a trailer operating in a truck-trailer combination shall not exceed twenty-eight feet six inches.

4. If the length of a semitrailer is more than fifty-three feet, the overall length of a truck tractor-semitrailer combination shall not exceed sixty-five feet on all highways, except for the national intercity truck route network designated by the United States secretary of transportation as required by the surface transportation assistance act of 1982 or on a system of highways that is designated by a local authority. In designating the streets, the local authority shall consider any reasonable restriction including such safety restrictions as structural hazards and street width and any other safety factors identified by the local authority as a hazard to the motoring public.

5. A vehicle transporter and the semitrailer it draws shall not exceed a length of eighty feet with a front overhang of not more than four feet and a rear overhang of not more than six feet.

6. A truck-semitrailer combination shall not exceed an overall length of sixty-five feet.

D. Subsection B and subsection C, paragraphs 1 through 6 of this section do not apply to damaged, disabled or abandoned vehicles or combinations of vehicles while being towed by a tow truck in compliance with section 28-1108.

E. Notwithstanding subsections B and C of this section, extensions of not more than three feet beyond the foremost part and six feet beyond the rear bed or body of a vehicle or combination of vehicles used to transport manufactured vehicles or fiber and forage shall not be included in measuring the length of the vehicle or combination of vehicles when loaded.

F. Pursuant to a permit issued pursuant to section 28-1103, a truck or a truck tractor-semitrailer may draw not more than two additional trailers or semitrailers. The department shall adopt rules governing the movement and safety of a combination of vehicles under this subsection and authorizing the issuance in advance of prepaid permits. The rules shall include the adoption of minimum speeds on grades, lighting, signing, identification and braking requirements and any other rules the department deems necessary. The permit issued pursuant to this subsection is limited to the following highways:

1. An interstate highway that connects with two states if both states allow such combinations of trailers or semitrailers and if the interstate highway does not exceed forty miles between the connecting states.

2. A state route or highway that is located within four miles of and extends to the border of this state and an adjacent state that allows such combinations of trailers or semitrailers.

3. A state route or highway that extends at least ten miles through an Indian reservation, that does not cross the Colorado river and that is located within twenty miles of and extends to the border of this state and an adjacent state that allows such combinations of trailers or semitrailers.

G. Notwithstanding subsections B and C of this section:

1. A motor vehicle may draw one single-axle tow dolly on which a motor vehicle may be transported. A person shall secure the raised end of any motor vehicle being transported pursuant to this paragraph to the tow dolly by two separate chains, cables or equivalent devices adequate to prevent shifting or separation of the drawn vehicle and the tow dolly.

2. A truck or a truck tractor may draw a trailer or semitrailer that does not exceed a length of fifty-seven feet only on an interstate highway or on a highway that is within ten miles of an interstate highway if the trailer or semitrailer is manufactured in this state and is traveling with or without a load from its place of manufacture to be delivered for use outside this state.

3. A recreational vehicle may pull two units if all of the following conditions are met:

(a) The middle unit is equipped with a fifth wheel and brakes. The middle unit may be a farm vehicle or a horse trailer and shall have a weight equal to or greater than the rear unit.

(b) If the rear unit has a gross weight of three thousand pounds or more, it is equipped with brakes.

(c) The total combined gross weight of the towed units does not exceed the manufacturer's stated gross vehicle weight of the towing unit.

4. A vehicle transporter may transport cargo or general freight on a backhaul in compliance with section 28-1100.

H. For the purposes of this section:

1. "Backhaul" means the return trip of a vehicle transporter carrying cargo or general freight over all or part of the same route.

2. "Farm vehicle" has the same meaning prescribed in section 28-2514.

3. "Recreational vehicle" means a motor vehicle that is designed and customarily used for private pleasure, including vehicles commonly called motor homes, pickup trucks with campers and pickup trucks with a fifth wheel trailing device.

§ 28-1096 Projecting loads on passenger vehicles

A passenger type vehicle shall not be operated on a highway with a load carried on the vehicle if the load extends beyond the line of the fenders on the left side of the vehicle or extends more than six inches beyond the line of the fenders on the right side of the vehicle.

§ 28-1097 Maximum load extensions; length limitations for pole trailers

A. Notwithstanding the provisions of section 28-1095 that limit the length of vehicles and loads:

1. The load on a vehicle operated alone or the load on the front vehicle of a combination of vehicles shall not extend more than three feet beyond the foremost part of the vehicle.

2. The load on a vehicle operated alone or the load on the rear vehicle of a combination of vehicles shall not extend more than six feet beyond the rear of the bed or body of the vehicle.

B. The extensions beyond the front and rear of the vehicle as provided in this section are not included in determining the length of the vehicle for the purposes of section 28-1095.

C. The limitations as to length of vehicles and loads prescribed in section 28-1095 and this section do not apply to a load on a pole trailer when transporting poles or pipes or structural material that cannot be dismembered, except that any pole, pipe or other material exceeding eighty feet in length shall not be transported unless a permit has been obtained as authorized in section 28-1103.

§ 28-1098 Vehicle loads; restrictions; exception; civil penalties

A. For the purpose of highway safety or air pollution prevention, a person shall not drive or move a vehicle on a highway, street or roadway unless the vehicle is constructed or loaded in a manner to prevent any of its load from dropping, sifting, leaking or otherwise escaping from the vehicle, except the following are allowed:

1. Sufficient sand may be dropped for the purpose of securing traction.

2. Water or another substance may be sprinkled on a roadway in cleaning or maintaining the roadway.

3. Minor pieces of agricultural materials such as leaves and stems from agricultural loads or equipment.

B. A person shall not operate a vehicle on a highway, street or roadway with a load unless the load and any covering on the load are securely fastened in a manner to prevent the covering or load from becoming loose, detached or in any manner a hazard to other users of the highway, street or roadway.

C. This section does not apply to a vehicle when the vehicle is being used for agricultural purposes on a farm.

D. If a person is found in violation of this section and the violation:

1. Does not cause any damage or injury and is the person's:

(a) First violation in a sixty-month period, the person is subject to a civil penalty of not more than $250.

(b) Second or subsequent violation in a sixty-month period, the person is subject to a civil penalty of not more than $350.

2. Results in an accident causing serious physical injury as defined in section 13-105 to another person, the person is subject to a civil penalty of not more than $500.

3. Results in an accident causing the death of another person, the person is subject to a civil penalty of not more than $1,000.

§ 28-1099 Single axle load limit; exceptions

A. The gross weight imposed on the highway by the wheels of any one axle of a vehicle shall not exceed twenty thousand pounds, except that:

1. The director may issue a special permit pursuant to section 28-1103 for the purpose of moving road machinery that exceeds the maximum weight specified in this section from job to job within this state and from job to place of servicing and return within this state.

2. Any over-the-road bus may exceed the maximum single axle weight limit but shall not exceed twenty-four thousand pounds. For the purposes of this paragraph, "over-the-road bus" means a bus characterized by an elevated passenger deck located over a baggage compartment.

B. This section does not limit in any manner the power of the director and a local authority to issue a special permit pursuant to section 28-1103.

C. For the purposes of this article, the gross weight imposed on the highway by the wheels of any one axle equals the total load transmitted to the road by all wheels whose centers are included between two parallel transverse vertical planes forty inches apart, extending across the full width of the vehicle.

§ 28-1100 Vehicles and loads; gross weight restrictions; exceptions

A. Except as provided in subsection H of this section or section 28-1099, a person may operate a vehicle on all highways, including a toll facility as defined in section 28-7751, subject to the following maximum gross weights:

1. Twenty thousand pounds, including enforcement tolerances, on any one axle.

2. Thirty-four thousand pounds, including enforcement tolerances, on a tandem axle.

3. Eighty thousand pounds on a vehicle combination of five axles or more.

4. On a group of two or more consecutive axles, including any steering or castering axles, an overall gross weight, including enforcement tolerances, produced by application of the following formula in which W equals overall gross weight on any group of two or more consecutive axles to the nearest five hundred pounds, L equals distance in feet between the extreme of any group of two or more consecutive axles to the nearest foot and N equals number of axles in any group under consideration, except that two consecutive sets of tandem axles may carry a gross load of thirty-four thousand pounds each if the overall distance between the first and last axles of the consecutive sets of tandem axles is thirty-six feet or more if the overall gross weight does not exceed eighty thousand pounds, including all enforcement tolerances:

W = 500 (LN/(N-1) + 12N + 36)

B. For the purposes of subsection A of this section, "tandem axles" means two or more consecutive axles that are more than forty inches but not more than ninety-six inches apart.

C. This section does not apply to a vehicle and load that cannot be easily dismantled or divided and that have been issued a special permit pursuant to section 28-1103.

D. It is not a defense in a prosecution for a violation of this section that a vehicle or vehicle combination is registered for a declared gross weight as defined in section 28-5431 in excess of the amount allowed under this section. The department shall not make an allowance or refund for fees paid for the weight in excess of the amount allowed under this section.

E. A single vehicle or a single vehicle of a combination of vehicles shall not be equipped with more than three axles, including the front steering axle, unless the additional axles are steering axles or castering axles. The limitation on the number of axles provided in this subsection does not apply to a vehicle operated with a permit issued pursuant to section 28-1103.

F. A vehicle or combination of vehicles equipped with one or more variable load axles shall have the pressure control preset and located outside of the cab so that the operator of the vehicle cannot vary the weight carried on the variable load axle or axles during transport of a load. The actuating control that raises or lowers the axle or axles may be located inside the cab for safety purposes. This actuating control must completely raise or completely lower the axle or axles when activated.

G. This section does not apply to a truck that meets all of the following requirements and for which a special permit has been issued pursuant to section 28-1103:

1. Is equipped with a conveyor bed.

2. Is used solely as a fiber and forage module mover.

3. Does not exceed forty-eight feet in length.

4. Is only operated each year from August 1 through January 30, unless the director extends the period of use.

H. The gross weight of a heavy-duty vehicle that is equipped with idle reduction technology and the gross weight imposed on the highway by the wheels of any one axle or axle group of the vehicle may exceed the weight limitation specified in subsection A of this section by not more than five hundred fifty pounds or the weight of the idle reduction technology, whichever is less. This subsection only applies if the heavy-duty vehicle operator, on request, proves by written certification the weight of the idle reduction technology and, by demonstration or certification, that the idle reduction technology is fully functional at all times. For the purposes of this subsection, "heavy-duty vehicle" and "idle reduction technology" have the same meanings prescribed in 42 United States Code section 16104a.

I. The gross weight of a vehicle operated by an engine fueled primarily by natural gas, battery electric, or hydrogen and the gross weight imposed on the highway by the wheels of any one axle or axle group of the vehicle may exceed the weight limitation specified in subsection A of this section, but may not exceed eighty-two thousand pounds or an amount that is equal to the difference between the weight of the vehicle attributable to the natural gas tank and fueling system or battery electric or hydrogen fuel cell electric fueling system and the weight of a comparable diesel tank and fueling system, whichever is less.

§ 28-1101 Weight violations; civil penalty; classification; procedures; evidence

A. A person who violates section 28-1099, 28-1100 or 28-1102 is:

1. Subject to a civil penalty of any of the following:

(a) As prescribed in subsection B of this section.

(b) As prescribed in section 28-1102.

(c) Of $1 if the excess weight is one thousand pounds or less.

2. Guilty of a class 3 misdemeanor for a second violation of these sections within six months of the preceding judgment.

3. Guilty of a class 2 misdemeanor for a second conviction for a violation of these sections within one year of the preceding conviction pursuant to paragraph 2 of this subsection.

B. A court shall impose civil penalties as follows:

If the excess weight is: The minimum civil penalty is:

1,001 to 1,250 pounds $ 100.00

1,251 to 1,500 200.00

1,501 to 2,000 300.00

2,001 to 2,500 400.00

2,501 to 3,000 500.00

3,001 to 3,500 840.00

3,501 to 4,000 980.00

4,001 to 4,500 1120.00

4,501 to 4,750 1260.00

4,751 to 5,000 1400.00

5,001 and over 1400.00 plus an additional

$100 for each 1000 pounds

of excess weight

C. If an officer finds that a person has violated only the axle weight limitation and not the total weight limitation, the officer shall request the driver to shift the load, as reasonable under the circumstances, to comply with the axle weight limitation and notwithstanding section 28-1521 or this section:

1. If the driver does not comply with the request of the officer to shift the load, the driver is subject to a civil penalty.

2. If the driver complies with the axle weight limitation after shifting the load and the excess axle weight was two thousand five hundred pounds or less:

(a) The officer shall not cite the driver.

(b) The driver is not subject to a civil penalty for a violation of the axle weight limitation.

3. If the driver shifts the load but does not comply with the axle weight limitation or if the excess axle weight is more than two thousand five hundred pounds, the driver is subject to a civil penalty for a violation of the axle weight limitation.

D. If a person is arrested for violating section 28-1099 or 28-1100, the arresting officer may take the person immediately before a magistrate who is within the county in which the offense charged is alleged to have been committed and who has jurisdiction of the offense. If the person is taken before a justice of the peace, the person shall be taken before the nearest or most accessible justice of the peace with reference to the place where the arrest is made.

E. The officer or court collecting or receiving a civil penalty, fee, fine or forfeiture for a violation of section 28-1099, 28-1100 or 28-1102 shall deposit, pursuant to sections 35-146 and 35-147, the amount in the Arizona highway user revenue fund. If a civil penalty, fee or fine is collected, $10 of the civil penalty, fee or fine is deductible as reimbursement of costs from the amount collected, unless the fee or fine is less than $10. The collecting official shall deposit the deducted monies with the city, town or county treasury of the city, town or county prosecuting or processing the violation.

F. A weight certificate or any other document that evidences the receipt of goods for shipment, that is issued by a person engaged in the business of transporting or forwarding goods and that states the gross weight of the vehicle with load that is in excess of the prescribed maximum weight limitation prescribed in section 28-1099 or 28-1100 is prima facie evidence that the weight of a vehicle and load is unlawful.

G. If the commodity being carried is sold by weight, a weight certificate or any other document that evidences the receipt of goods for shipment, that is issued by a person engaged in the business of transporting or forwarding goods and that states the gross weight of the vehicle with load that is not in excess of the prescribed maximum weight limitation permitted by section 28-1100 is prima facie evidence that the gross weight of a vehicle and load is lawful. The presumption that the weight of the vehicle and load is lawful may be rebutted by the weight of the vehicle and load as shown by means of the department's stationary scale or a public weighmaster scale.

§ 28-1102 Weighing of vehicles and loads; civil penalty

A. A police or peace officer having reason to believe that the weight of a vehicle and load does not conform to this article may require the driver to:

1. Stop and submit to a weighing of the vehicle and load by means of either portable or stationary scales.

2. Drive the vehicle to the nearest public scales, if the scales are within two miles.

B. If on weighing a vehicle and load pursuant to subsection A of this section an officer determines that the weight does not conform to this article, the officer may require the driver to stop the vehicle in a suitable place and remain standing until the portion of the load is removed as necessary to reduce the gross weight of the vehicle to the limit allowed under this article. The owner or operator shall care for the material unloaded at the risk of the owner or operator.

C. A driver of a vehicle is subject to a civil penalty of $250 who either:

1. Knowingly fails or refuses to stop and submit the vehicle and load to a weighing.

2. Knowingly fails or refuses when directed by an officer on a weighing of the vehicle to stop the vehicle and otherwise comply with subsections A and B of this section.

D. A peace officer as defined in section 41-1701 or any other peace officer designated by the director may require the weighing of a commercial vehicle by means of portable scales at any time. Failure to submit to weighing as required by this subsection is punishable by a civil penalty, the minimum of which is the minimum civil penalty for over six thousand pounds overweight as prescribed in section 28-1101, subsection B.

§ 28-1103 Excess size and weight special permits; definition

A. Subject to section 28-1104, subsection E, on application in writing and for good cause, the director with respect to highways under the jurisdiction of the department and a local authority with respect to highways under its jurisdiction may issue a special permit in writing authorizing the applicant to operate or move a vehicle or combination of vehicles of a size or weight of vehicle or load exceeding the maximum specified in this article or otherwise not in conformity with this chapter on any highway under the jurisdiction of the party granting the permit and for the maintenance of which the party is responsible.

B. A special permit may be issued for the movement of overdimensional and overweight loads that is subject to department rules for overdimensional and overweight loads. The director shall adopt rules for overdimensional and overweight loads. The director may establish fees to cover all or part of the cost of review and analysis of requests for overdimensional and overweight load permits. The department shall collect the fees, in addition to the special permit fee provided by this section or section 28-1105.

C. Subject to this section, the director or local authority may issue the following special permits that are valid for thirty days or one year and that may be limited by the director or local authority:

1. A special permit authorizing the applicant to transport a load by means of a truck-semitrailer, truck-trailer, truck tractor-semitrailer-semitrailer or truck tractor-semitrailer-trailer combination, if all of the following conditions are met:

(a) The overall length of the cargo carrying unit of the vehicle combination does not exceed ninety-five feet.

(b) The axle weight limitations are subject to sections 28-1099 and 28-1100.

(c) The overall gross weight of the vehicle combination does not exceed one hundred twenty-nine thousand pounds.

(d) The vehicle combination is traveling within twenty miles of the borders of this state and an adjacent state that allows such combinations of length and gross vehicle weight.

2. Except on the national intercity truck route network designated by the United States secretary of transportation as required by the surface transportation assistance act of 1982, a special permit authorizing the applicant to transport a load by means of a truck and two trailing units or a truck tractor, a semitrailer and two trailing units if all of the following conditions are met:

(a) The overall length of the cargo carrying unit of the vehicle combination does not exceed ninety-five feet.

(b) The axle weight limitations conform to sections 28-1099 and 28-1100.

(c) The overall gross weight of the vehicle combination does not exceed one hundred twenty-three thousand five hundred pounds.

(d) The vehicle combination is traveling on either:

(i) A state route or highway that is located within four miles of and extends to the border of this state and an adjacent state that allows vehicle combinations of a truck or a truck tractor-semitrailer and not more than two additional trailers or semitrailers.

(ii) A state route or highway that extends at least ten miles through an Indian reservation, does not cross the Colorado river and is located within twenty miles of and extends to the border of this state and an adjacent state that allows such combinations of trailers or semitrailers.

3. On application in writing by an owner of a watercraft as defined in section 5-301 and on good cause shown, a special excess width permit for a fee of forty-five dollars for each watercraft covered by the permit that:

(a) Authorizes the owner to move a vehicle loaded with the watercraft on a highway under the jurisdiction of the issuer if all of the following conditions exist:

(i) The total outside width of the vehicle and watercraft does not exceed ten feet.

(ii) The vehicle loaded with the watercraft is otherwise in conformity with the limitations prescribed by this chapter.

(iii) The watercraft is properly registered with the Arizona game and fish department.

(b) Contains the watercraft registration number.

D. The director may issue a special excess width permit for the operation of a vehicle with a reducible load only if both:

1. The load exceeds the width limitation prescribed in section 28-1093.

2. The load does not exceed ten feet in width.

E. Subject to this section and on receipt of an application, the director or local authority shall issue a permit that is valid for thirty days or one year and that authorizes the commercial movement of recreational vehicles as defined in section 41-4001 that exceed the size restrictions prescribed in this article. There is no limit on the number of movements generated or the number of vehicles moved by the permittee under a permit issued pursuant to this subsection. Notwithstanding section 28-1104, additional permit requirements shall not be imposed on the commercial movement of these recreational vehicles if the recreational vehicles comply with section 28-1093, subsection D.

F. If a local authority issues permits pursuant to this section, the local authority shall adopt and enforce ordinances that are substantially identical to rules adopted by the department that relate to overdimensional or overweight commercial vehicles, and the local authority may adopt ordinances relating to infrastructure restrictions, route restrictions and time-of-day restrictions. The local authority shall provide to the department in a timely manner in an electronic format prescribed by the director all current ordinances and rules of the local authority relating to the permits. The department shall:

1. Make the ordinances and rules available to the public in an electronic format.

2. Notify a local authority of any updates or changes to rules established by the department.

G. Before the adoption and enforcement of an ordinance by a local authority pursuant to subsection F of this section, the engineer or designated officer having jurisdiction over the highways within the local authority shall submit the proposed ordinance to the department and the department shall submit the proposed ordinance to the overdimensional permit council established by section 28-1150 for review.

H. The overdimensional permit council has ninety days after the date that the department receives the proposed ordinance pursuant to subsection G of this section to review the proposed ordinance for compliance with subsection F of this section. The proposed ordinance is deemed compliant if the overdimensional permit council does not act within ninety days as prescribed by this subsection. If the overdimensional permit council determines that the proposed ordinance does not comply with subsection F of this section, the overdimensional permit council shall notify the department of the noncompliance before the end of the ninety-day period. The department shall notify the engineer or designated officer with jurisdiction over highways of the local authority in writing within thirty days after the review and provide specific provisions and the council's reasons that the ordinance is not in compliance with subsection F of this section.

I. On receipt of written notification that the proposed ordinance is not in compliance with subsection F of this section, the local authority shall make changes as applicable. If the local authority accepts the overdimensional permit council's recommended changes, further review is not required. If the local authority makes any other substantial change to the ordinance after the overdimensional permit council's review the local authority shall resubmit the change to the department for review pursuant to subsection G of this section.

J. This section does not limit a local authority's power to restrict highway use pursuant to section 28-1106.

K. The department is immune from liability for providing to the public a local authority's ordinances or rules relating to permits issued by the local authority pursuant to this section if the department relies on the information submitted by the local authority in good faith.

L. For the purposes of this section, "cargo carrying unit" means any portion of a commercial motor vehicle combination used for the carrying of cargo, including a trailer, a semitrailer or the cargo carrying section of a single unit truck. Cargo carrying unit does not include the cab portion of a truck or truck tractor.

§ 28-1104 Issuance of special permits; rules

A. The application for a special permit prescribed in section 28-1103 shall specifically describe the vehicle or vehicles and load to be operated or moved and the particular highways for which the permit to operate is requested. If the actual vehicle and load to be moved are subsequently of a lesser dimension or weight than that described on the permit, both of the following apply:

1. The director shall not require the operator to apply for a new permit or pay an additional fee.

2. The operator shall comply with all other conditions of the permit.

B. Subject to subsection E of this section and if the special permit is issued, the director or local authority may:

1. Establish seasonal or other time limitations within which the vehicles described may be operated on the highways indicated or otherwise limit or prescribe conditions of operation of the vehicle or vehicles, when necessary to assure against undue damage to the road foundations, surfaces or structures.

2. Require an undertaking or any other security as deemed necessary to compensate for an injury to a roadway or road structure.

C. The special permit shall be carried in the vehicle or combination of vehicles to which it refers and shall be open to inspection by any police officer or authorized agent of an authority granting the permit. A person shall not violate any of the terms or conditions of the special permit.

D. The director shall adopt rules for the movement of equipment without a special permit for the purpose of repair or for local operation.

E. A permit shall not be issued pursuant to section 28-1103 for moving a mobile home unless the applicant provides evidence of payment of all applicable ad valorem taxes or a clearance from the assessor of the county in which the mobile home is located. The clearance is valid for not more than thirty days, and the assessor shall issue the clearance if the assessor determines that all fees and ad valorem taxes applicable to the mobile home pursuant to title 42 have been paid as of the date of application. This subsection does not limit the discretion of the director or local authority to deny an application for a permit for moving a mobile home for reasons other than nonpayment of ad valorem taxes.

§ 28-1105 Special permit fees

A. Except as otherwise provided by law, the following fees are required:

1. Fifteen dollars for each special permit issued pursuant to section 28-1103 for excess size, except that a thirty dollar fee is required for each thirty day permit and a three hundred sixty dollar fee is required for each annual permit.

2. Except as provided in paragraph 4 of this subsection, seventy-five dollars for each permit and each thirty day permit issued pursuant to section 28-1103 for excess weight, except that a six hundred dollar fee is required for each annual permit. For commercial vehicles traveling through an international port of entry on a special single trip excess weight permit issued pursuant to section 28-1103, notwithstanding section 28-6538, each month the department shall allocate and the state treasurer shall distribute the seventy-five dollar special single trip permit fee collected pursuant to this paragraph as follows:

(a) To the state highway fund established by section 28-6991, fifty per cent.

(b) To counties located in the twenty-five mile commercial border zone identified on the permit, twenty-five per cent.

(c) To incorporated cities and towns located in the twenty-five mile commercial border zone identified on the permit, twenty-five per cent. Revenues allocated to incorporated cities and towns pursuant to this subdivision 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 located in the twenty-five mile commercial border zone identified on the permit.

3. Except as provided in paragraph 4 of this subsection, for a permit requested for a motor vehicle or combination of vehicles that is in excess of both the size and weight permitted by this chapter, the amount of fees applicable for an excess weight permit.

4. For a vehicle combination described in section 28-1103, subsection C:

(a) Seventy-five dollars for each single trip or thirty-day permit issued for excess size and weight.

(b) Three hundred sixty dollars for each annual permit issued for excess size and weight up to one hundred twenty-three thousand five hundred pounds.

(c) Six hundred dollars for each annual permit issued for excess size and weight more than one hundred twenty-three thousand five hundred pounds and up to one hundred twenty-nine thousand pounds.

B. A fee is not required for a permit issued pursuant to section 28-1103 for the movement of vehicles or combinations of vehicles owned by the United States government, this state or a county, city or town.

C. If a special permit is required by the director and by one or more authorities to move a vehicle or combination of vehicles, the applicant for the permit or permits shall pay a permit fee only to the director and is not required to pay a permit fee to a local authority.

D. If a special permit is required by more than one local authority to move a vehicle or combination of vehicles and if the permit is not required by the director, the applicant shall pay a permit fee only to the local authority that has jurisdiction of the streets and highways where the movements of the vehicle or combination of vehicles originate.

§ 28-1106 Restriction on highway usage; definitions

A. By ordinance or resolution and for a total period of not more than ninety days in any one calendar year, a local authority with respect to highways under its jurisdiction may prohibit the operation of a vehicle on the highway or may impose restrictions as to the weight of a vehicle to be operated on the highway if the highway by reason of deterioration, rain, snow or other climatic conditions will be seriously damaged or destroyed unless the use of vehicles on the highway is prohibited or the permissible weights of the vehicles are reduced.

B. A local authority enacting an ordinance or resolution pursuant to subsection A of this section shall erect or cause signs to be erected and maintained designating the provisions of the ordinance or resolution at each end of that portion of a highway affected by the ordinance or resolution. The ordinance or resolution is not effective until the signs are erected and maintained.

C. A local authority with respect to highways under its jurisdiction may prohibit by ordinance or resolution the operation of trucks or other commercial vehicles or may impose limitations as to the weight of vehicles on designated highways. The local authority shall place uniform signs designed by the department on the highway to designate the prohibitions and limitations.

D. The director has authority as granted by this section to local authorities to determine by resolution and to impose restrictions as to the weight of vehicles operated on a highway under the jurisdiction of the director. The restrictions are effective when uniform signs designed by the department giving notice of the restrictions are erected on the highway or portion of the highway affected by the resolution.

E. Notwithstanding subsections C and D of this section, for ordinances or resolutions that are enacted pursuant to this section on and after January 1, 2020 the director or a local authority may only restrict or prohibit a vehicle of legal size from operating on a highway that is a major arterial street that connects two or more local jurisdictions if the department or the local authority conducts a test drive or applies a vehicle template on the highway that shows that a vehicle of a legal size may not safely operate on the highway.

F. If a vehicle of legal size may not safely operate on a major arterial street, the director and local authority may not grant exceptions for categories or types or groups of routes.

G. A highway that does not have a truck restriction before being annexed by a local authority or otherwise transferred to a local authority may not be incorporated into an existing truck restriction that is passed by a local jurisdiction on or after January 1, 2020 unless the highway meets the criteria prescribed by subsection E of this section.

H. A person may request in writing a review of any route restrictions for vehicles of legal size if the route restriction is enacted pursuant to this section on or after January 1, 2020. The director shall act on all requests within ninety days after receiving the written request. If the director determines that a vehicle of legal size can operate safely on a major arterial street, the local jurisdiction may not restrict that major arterial street.

I. For a major arterial street that has a truck restriction that does not provide through access between two or more jurisdictions before January 1, 2023 and that is subsequently improved from and after December 31, 2022 to provide through traffic between two or more jurisdictions, the truck restriction is nullified unless at least one of the criteria below is met:

1. The highway is a major arterial street that meets the criteria prescribed by subsection E of this section.

2. A local authority notifies by certified mail all active statewide associations that are registered for lobbying purposes with the secretary of state and that primarily represent trucking interests of the new through traffic connection, and the local authority obtains a letter of support from all of the associations.

3. The subsequent improvement providing a through connection is located one mile or less from a reasonable alternative route that provides a through access or connection to the other jurisdictions without restrictions.

J. The signs prescribed in subsections C and D of this section shall be placed near every intersection or junction with a traffic control device along designated highways, shall inform the public of the restrictions and shall either direct the public to the fastest route to leave a restricted route or inform the public of the distance that the route is restricted. Beginning January 1, 2024, the restrictions imposed pursuant to subsections C and D of this section are unenforceable on restricted routes in existence from and after October 30, 2023 if the director or local authority fails to erect or maintain signs as prescribed by this subsection.

K. For the purposes of this section:

1. "Major arterial street":

(a) Means an arterial street as defined in section 28-6531.

(b) Includes:

(i) A principal arterial street.

(ii) Any arterial street if a local authority does not distinguish between major and minor arterial streets.

(iii) Any arterial street that has access to a freeway, controlled access highway or the national highway system.

(iv) Any arterial street that has a bridge along its route.

(v) Any arterial street that is designated as a major arterial street in an adjoining jurisdiction.

2. "Reasonable alternative route" means a highway that does not restrict or prohibit a vehicle of legal size from operating and that does not directly connect to a highway under the jurisdiction of another local authority with an immediate adjacent existing restriction or prohibition enacted pursuant to this section.

3. "Safely operate" means a determination based on a test drive, traffic engineering study or application of a vehicle template that a vehicle of legal size may operate on a highway that is a major arterial street without causing a significant and clearly evident safety problem in relation to a vehicle of legal size.

4. "Truck restriction" means an ordinance or resolution that prohibits or limits the operation of trucks or other commercial vehicles on designated highways.

5. "Vehicle of legal size" means a vehicle that complies with the limitations set forth in all of the following:

(a) Section 28-1093, subsection C.

(b) Section 28-1094.

(c) Section 28-1095, subsections A and B unless exempt pursuant to section 28-1095, subsection D.

(d) Section 28-1095, subsection C, paragraphs 1, 2, 3 and 4 unless exempt pursuant to section 28-1095, subsection D.

§ 28-1107 Liability; highway or structure damage

A. A person driving a vehicle, object or contrivance on a highway or highway structure is liable for all damage that the highway or structure may sustain as a result of an illegal operation or driving or moving of the vehicle, object or contrivance or as a result of operating, driving or moving a vehicle, object or contrivance weighing or measuring in excess of the maximum weight or height in this article even if authorized by a special permit issued as provided in section 28-1094 or 28-1103.

B. If the driver is not the owner of the vehicle, object or contrivance but is operating, driving or moving the vehicle, object or contrivance with the express or implied permission of the owner, the owner and driver are jointly and severally liable for any damage.

C. The authorities in control of the highway or highway structure may recover the damage in a civil action.

§ 28-1108 Vehicle towing; definition

A. If a vehicle is towing another vehicle, the drawbar or other connection shall be of sufficient strength to pull all weight towed by the vehicle, and the drawbar or other connection may not exceed fifteen feet from one vehicle to the other, except the connection between any two vehicles transporting poles, pipe, machinery or other objects of a structural nature that cannot readily be dismembered.

B. If a vehicle is towing another vehicle and the connection consists of a chain, rope or cable, a white flag or cloth at least twelve inches square shall be displayed on the connection.

C. A person may not operate a tow truck for the purpose of towing vehicles without first registering with the department of public safety and obtaining a permit pursuant to the rules that govern tow trucks and that are adopted by the department of public safety.

D. The total weight of a tow truck and the towed vehicle is exempt from the maximum total gross weight load allowed under section 28-1100 if a damaged, disabled or abandoned vehicle or vehicle combination is towed.

E. For the purposes of this section, "drawbar" means a rigid structure that connects a trailer and a towing vehicle and that articulates at the point of connection with the trailer and articulates at the point of connection with the towing vehicle.

§ 28-1110 Escort vehicle operation; training and certification; insurance; exemption

A. Except as otherwise provided in this section, any individual operating an escort vehicle that is escorting a vehicle required to be permitted pursuant to this article or article 19 of this chapter on a highway in this state shall have completed training in and be certified by a program that meets the escort vehicle operator training and certification standards of the commercial vehicle safety alliance, including best practices in traffic control techniques on the road, or an equivalent program that meets the same objectives before entering into service as an escort vehicle operator.

B. An escort vehicle operator shall repeat training and certification requirements at least once every four years.

C. An escort vehicle operator shall:

1. Be at least eighteen years of age.

2. Have a valid driver license.

3. Have a legible and valid escort vehicle operator certificate issued in this state or in another state in the operator's immediate possession while operating an escort vehicle that is escorting a vehicle required to be permitted pursuant to this article or article 19 of this chapter on a highway in this state.

D. Escort vehicle operators who are trained and certified pursuant to subsection A of this section may perform traffic control under guidelines developed by the department of transportation, the department of public safety and the transportation industry. Escort vehicle operators who perform traffic control must have in force a minimum level of commercial liability insurance as prescribed by the director of the department of transportation and that is not less than five hundred thousand dollars.

E. An individual who operates an escort vehicle in violation of this section or rules adopted by the director relating to the operation of escort vehicles is responsible for a civil traffic violation.

F. 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 judgment for the violation to the department.

G. This section does not apply to law enforcement personnel escorting overdimensional permitted loads in the conduct of their normal duties or under contract to governmental entities.

H. A certification issued by another state authorizing a person to escort vehicles required to be permitted pursuant to this article or article 19 of this chapter on a highway in this state satisfies the certification requirements of this section but does not authorize the person to perform traffic control except as prescribed by rules established by the department.

§ 28-1111 Commercial and noncommercial vehicles and trailers; website publications

A. In cooperation with the department of public safety, the department of transportation shall develop easily understandable publications of the laws, rules and department policies relating to commercial and noncommercial motor vehicles, trailers and vehicle combinations that contain the following:

1. Weight thresholds specifying the differences between commercial and noncommercial vehicles and vehicle combinations.

2. Equipment requirements for different weight classes of commercial and noncommercial vehicles and vehicle combinations.

3. Allowable vehicle combinations.

4. Other information the director deems necessary.

B. The department of transportation and the department of public safety shall jointly develop and publish on the website of each agency the information prescribed by subsection A no later than January 1, 2009.

Article 19 Envelope Permits

§ 28-1141 Definitions

In this article, unless the context otherwise requires:

1. "Envelope" means the outermost dimensions of a load or vehicle to include width, height and length and the weight of the vehicle or its load.

2. "Envelope permit" means a permit issued by the department authorizing a person to transport property on the highways of this state pursuant to all applicable statutes and local ordinances and the terms listed on the permit.

3. "Power unit" means a vehicle that propels itself or tows a trailer or combination of vehicles on the highways of this state.

§ 28-1142 Application

A. A person shall not operate, move or leave standing on a highway of this state a vehicle that is carrying or transporting cargo and that is required to have a permit for excess size or weight or that is otherwise not in conformity with this chapter unless the department issued an envelope permit or the person obtained a permit pursuant to section 28-1103.

B. A person shall submit an application for an envelope permit to the director in writing on a form prescribed and furnished by the director. The application shall be verified and shall state:

1. The principal place of business of the applicant.

2. The established place of business or the place of business at or from which the business is to be conducted.

3. The vehicle identification number of and the make of the vehicle that the applicant lists as an authorized vehicle on the envelope permit.

4. Other information the director requires.

C. The director shall deny an application for an envelope permit if the applicant knowingly makes a misrepresentation, misstatement or material omission of information on the application. A person who is denied an envelope permit pursuant to this subsection is not eligible to reapply for an envelope permit for a period of up to twenty-four months from the date of the denial.

D. This article, article 18 of this chapter and department rules relating to envelope permits and overdimensional permits apply if a local authority does not issue permits pursuant to section 28-1103.

E. The department shall make its rules relating to envelope permits and overdimensional permits electronically available in a format that is the same or similar to the format prescribed by the director pursuant to section 28-1103.

§ 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 deposit, pursuant to sections 35-146 and 35-147, twenty-five per cent of the fees collected pursuant to this section in the state highway fund established by section 28-6991. 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.

§ 28-1144 Issuing envelope permits; restrictions; requirements

A. Except as provided in subsection D of this section, on approval of the application, the director may issue an envelope permit. The envelope permit for a nonspecific and nonreducible vehicle or cargo shall not authorize a vehicle or a vehicle transporting cargo on a highway to exceed two hundred fifty thousand pounds gross weight, fourteen feet in width, sixteen feet in height and one hundred twenty feet in length.

B. The director may issue an envelope permit for a vehicle hauling a houseboat within a ten mile radius of a lake that is located in this state and the state of Utah and whose tributary is the Colorado River if the vehicle or load does not exceed one hundred fifty thousand pounds gross weight, sixteen and one-half feet in width, twenty-five feet in height and one hundred twenty feet in length. A person who operates a vehicle on a highway transporting a houseboat for which an envelope permit has been issued pursuant to this subsection must notify the department as prescribed by the director each time a vehicle hauls a houseboat as authorized by the envelope permit. A person who violates the notification requirement of this subsection subjects the envelope permit to immediate revocation by the department and must apply for a special permit prescribed in section 28-1103 in order to comply with article 18 of this chapter relating to vehicle size, weight and load. The director shall adopt rules, including establishing fees, for envelope permits for vehicles hauling houseboats pursuant to this subsection.

C. Except as provided in subsection D of this section, a vehicle for which an envelope permit is issued shall have at least three axles. Except for excess gross weight, excess width or length authorized by the envelope permit, a vehicle and cargo shall meet the requirements of statutes, rules and ordinances governing the movement of vehicles on highways and rules of local authorities.

D. On approval of the application, the director may issue an envelope permit for a vehicle with two axles that is transporting a nonspecific and nonreducible vehicle or cargo on a highway if the vehicle or vehicle transporting cargo does not exceed the applicable maximum gross weight limits as prescribed in section 28-1100, fourteen feet in width, sixteen feet in height and one hundred twenty feet in length.

E. A person who operates a vehicle on a highway transporting cargo for which an envelope permit has been issued and is required shall have a legible envelope permit in the person's immediate possession. The envelope permit is valid only if the power unit towing or transporting the cargo is listed on the permit. The operator shall display the envelope permit on demand of a peace officer.

F. A photocopy or facsimile of the envelope permit is not valid.

G. An envelope permit shall provide for the listing of any number of power units on the permit. A permit may be duplicated and modified to include the listing of additional power units at the time of initial application or later.

H. The director shall not issue an envelope permit for a vehicle or vehicle combination that transports cargo commonly known as a mobile or modular home.

§ 28-1145 Third party permit issuance

The director, in consultation with the overdimensional permit council established by section 28-1150, may authorize third parties pursuant to chapter 13, article 1 of this title to issue permits pursuant to article 18 of this chapter and this article.

§ 28-1146 Administration

A. The director shall regulate all persons required by this article to have envelope permits.

B. The director may:

1. Investigate and require the assistance of the department of public safety or county or local law enforcement agencies in its investigation.

2. Conduct hearings.

3. Compel the attendance of witnesses at the hearings.

§ 28-1147 Revocation or suspension of envelope permits and privileges

A. The director may suspend or revoke an envelope permit if the director determines that the person:

1. Made a material misrepresentation or misstatement in the application for an envelope permit.

2. Violated or is violating either:

(a) A law of this state governing the movement of vehicles on the highways.

(b) A rule adopted by the director or a local authority.

3. Does not have an established place of business or principal place of business.

4. Failed or is failing to maintain records that are required to be maintained.

B. On determining that grounds for suspension or revocation of an envelope permit exist, the director shall give notice to the person in writing of the suspension or revocation. The notice shall require the person to appear before the director at a specified time and place to show cause why the envelope permit should not be suspended or revoked. The director shall set the time and place for the hearing. The licensee may appear and be heard at the hearing and other persons may be present and may testify at the hearing. The order of suspension or revocation is final if a response is not received from the permittee within fifteen days of the date the notice for hearing was mailed.

C. If the envelope permit of a person is suspended for a violation of this article, the suspension is not effective for more than two years. If the envelope permit is revoked for a violation of this article, the person may apply for a new envelope permit after two years. The director shall make a written order that suspends or revokes or declines to suspend or revoke the envelope permit.

D. If the director determines that a person failed to obtain an envelope permit or a permit under section 28-1103, the director may suspend the privilege of obtaining subsequent permits for two years from the date of the suspension. A person whose permit privileges are suspended may request a hearing within fifteen days to show cause why the envelope permit privileges should not be reinstated. At the time and place fixed by the director, the person shall appear and be heard and other persons may be present and may testify at the hearing.

E. Decisions of the director are subject to judicial review pursuant to title 12, chapter 7, article 6.

§ 28-1148 Liability

A user of an envelope permit accepts full responsibility and liability for use of the envelope permit and holds the state harmless for an act or the omission of an act while operating a vehicle or transporting cargo for which an envelope permit has been issued and is required.

§ 28-1149 Records; inspection

A. A permit holder shall maintain in this state for at least three years records and other data for all vehicles operated and cargo transported under an envelope permit.

B. The director may prescribe uniform forms for the keeping of records and other data.

C. During usual business hours or at any other time if needed to protect public safety, the permit holder shall allow department employees or state or local peace officers to inspect the permit holder's records and other data.

§ 28-1150 Overdimensional permit council

A. The overdimensional permit council is established consisting of the following nine members who are appointed by the governor:

1. One member representing the department of public safety.

2. One member representing the department of transportation.

3. Four members representing motor carriers.

4. One member from a city or town with a population of more than one hundred thousand persons.

5. One member from a city or town with a population of one hundred thousand persons or less.

6. One member representing the governor's office of highway safety.

B. The members serve staggered three year terms.

C. The overdimensional permit council shall:

1. Meet at least annually.

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

3. Advise and assist the department of transportation in developing rules required to administer this article and article 18 of this chapter.

4. Advise and consult with the motor carrier industry, department of transportation and state and local law enforcement agencies concerning matters relating to overdimensional permits.

5. Review each proposed ordinance that a local authority submits pursuant to section 28-1103, subsection G to determine if the proposed ordinance is substantially identical, uniform and consistent with the rules adopted by the department for oversized or overweight vehicles pursuant to section 28-1103, subsection F.

D. Members of the overdimensional permit council are not eligible to receive compensation or reimbursement for expenses.

E. The overdimensional permit council is subject to title 38, chapter 3, article 3.1.

F. The department shall provide for electronic notification of overdimensional permit council meetings to interested parties.

§ 28-1151 Violation; civil penalty

A person who operates, moves or leaves standing on a highway a vehicle or a vehicle carrying or transporting cargo in violation of an envelope permit is subject to a civil penalty of $750.

Article 20 Off-Highway Vehicles

§ 28-1171 Definitions

In this article, unless the context otherwise requires:

1. "Access road" means a multiple use corridor that meets all of the following criteria:

(a) Is maintained for travel by two-wheel vehicles.

(b) Allows entry to staging areas, recreational facilities, trail heads and parking.

(c) Is determined to be an access road by the appropriate land managing authority.

2. "Closed course" means a maintained facility that uses department approved dust abatement and fire abatement measures.

3. "Highway" means the entire width between the boundary lines of every way publicly maintained by the federal government, the department, a city, a town or a county if any part of the way is generally open to the use of the public for purposes of conventional two-wheel drive vehicular travel. Highway does not include routes designated for off-highway vehicle use.

4. "Mitigation" means the rectification or reduction of existing damage to natural resources, including flora, fauna and land or cultural resources, including prehistoric or historic archaeological sites, if the damage is caused by off-highway vehicles.

5. "Off-highway recreation facility" includes off-highway vehicle use areas and trails designated for use by off-highway vehicles.

6. "Off-highway vehicle":

(a) Means a motorized vehicle that is operated primarily off of highways and that is designed, modified or purpose-built primarily for recreational nonhighway all-terrain travel.

(b) Includes a tracked or wheeled vehicle, recreational or utility side-by-side vehicle, all-terrain vehicle, motorcycle, dirt bike, dune buggy, sand rail, amphibious vehicle, ground effects or air cushion vehicle and any other means of land transportation deriving motive power from a source other than muscle or wind. For the purposes of this subdivision, "dirt bike" means a lightweight motorcycle that is designed for use on rough terrain, including unsurfaced roads or tracks.

(c) Does not include a vehicle that is either:

(i) Designed primarily for travel on, over or in the water.

(ii) Used in installation, inspection, maintenance, repair or related activities involving facilities for the provision of utility or railroad service or used in the exploration or mining of minerals or aggregates as defined in title 27.

7. "Off-highway vehicle special event" means an event that is endorsed, authorized, permitted or sponsored by a federal, state, county or municipal agency and in which the event participants operate off-highway vehicles on specific routes or areas designated by a local authority pursuant to section 28-627.

8. "Off-highway vehicle trail" means a multiple use corridor that is both of the following:

(a) Open to recreational travel by an off-highway vehicle.

(b) Designated or managed by or for the managing authority of the property that the trail traverses for off-highway vehicle use.

9. "Off-highway vehicle use area" means the entire area of a parcel of land, except for approved buffer areas, that is managed or designated for off-highway vehicle use.

§ 28-1172 Applicability; private and Indian lands

This article applies to all lands in this state except private land and Indian land.

§ 28-1173 Enforcement

All peace officers of this state and counties or municipalities of this state and other duly authorized state employees may enforce this article.

§ 28-1174 Operation restrictions; violation; classification; citation

A. A person may not operate or allow a minor who is under twelve years of age to operate an off-highway vehicle:

1. With reckless disregard for the safety of persons or property.

2. Off of an existing road, trail or route in a manner that causes damage to wildlife habitat, riparian areas, cultural or natural resources or property or improvements.

3. On roads, trails, routes or areas closed as indicated in rules or regulations of a federal agency, this state, a county or a municipality or by proper posting if the land is private land.

4. Over unimproved roads, trails, routes or areas unless driving on roads, trails, routes or areas where such driving is allowed by rule or regulation.

B. A person shall operate or allow a minor who is under twelve years of age to operate an off-highway vehicle only on roads, trails, routes or areas that are opened as indicated in rules or regulations of a federal agency, this state or a county or a municipality.

C. A person shall not operate or allow a minor who is under twelve years of age to operate an off-highway vehicle in a manner that damages the environment, including excessive pollution of air, water or land, abuse of the watershed or cultural or natural resources or impairment of plant or animal life, where it is prohibited by rule, regulation, ordinance or code.

D. A person shall not place or remove a regulatory sign governing off-highway vehicle use on any public or state land. This subsection does not apply to an agent of an appropriate federal, state, county, town or city agency operating within that agency's authority.

E. Except as provided in subsection I of this section, a person who violates subsection A, paragraph 1 is guilty of a class 2 misdemeanor.

F. Except as provided in subsection I of this section, a person who violates any other provision of this section is guilty of a class 3 misdemeanor.

G. In addition to or in lieu of a fine pursuant to this section, a judge may order the person to perform at least eight but not more than twenty-four hours of community restitution or to complete an approved safety course related to the off-highway operation of motor vehicles, or both.

H. Subsections A and B of this section do not prohibit a private landowner or lessee from performing normal agricultural or ranching practices while operating an all-terrain vehicle or an off-highway vehicle on the private or leased land.

I. If a minor who is under twelve years of age violates this section, a citation shall be issued to the parent or legal guardian of the minor and not to the minor. If a minor who is at least twelve years of age and under sixteen years of age violates this section, a citation may be issued to the minor or to the parent or legal guardian of the minor, but not to both.

§ 28-1175 Instruction course; fee

A. The Arizona game and fish department shall conduct or approve an educational course of instruction in off-highway vehicle safety and environmental ethics. The course shall include instruction on off-highway vehicle uses that limit air pollution and harm to natural terrain, vegetation and animals. Successful completion of the course requires successful passage of a written examination.

B. Any governmental agency, corporation or other individual that conducts a training or educational course, or both, that is approved by the Arizona game and fish department, the United States bureau of land management or the United States forest service or that is approved or accepted by the all-terrain vehicle safety institute or the national off-highway vehicle conservation council may collect a fee from the participant that is reasonable and commensurate for the training and that is determined by the director of the Arizona game and fish department by rule.

§ 28-1176 Off-highway vehicle recreation fund; annual reports; definition

A. An off-highway vehicle recreation fund is established. The fund consists of:

1. Monies appropriated by the legislature.

2. Monies deposited pursuant to sections 28-1177 and 28-5927.

3. Federal grants and private gifts.

B. Monies in the off-highway vehicle recreation fund are appropriated to the Arizona state parks board solely for the purposes provided in this article. Interest earned on monies in the fund shall be credited to the fund. Monies in the off-highway vehicle recreation fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

C. The Arizona game and fish department shall spend thirty-five percent of the monies in the off-highway vehicle recreation fund for:

1. Informational and educational programs related to safety, the environment and responsible use with respect to off-highway vehicle recreation.

2. Law enforcement activities relating to this article.

3. The administration of the indicia program.

4. Off-highway vehicle law enforcement pursuant to title 17, chapter 4, article 3, including seven full-time employees to enforce this article and title 17, chapter 4, article 3.

D. The state land department shall spend five percent of the monies in the off-highway vehicle recreational fund to allow occupants of off-highway vehicles with resident or nonresident off-highway vehicle user indicia to cross state trust land on existing roads, trails and designated routes. The state land department shall use these monies for costs associated with off-highway vehicle use of lands within its jurisdiction, to mitigate damage to the land, for necessary environmental, historical and cultural clearance or compliance activities and to fund enforcement of off-highway vehicle laws.

E. The Arizona state parks board shall spend sixty percent of the monies in the off-highway vehicle recreation fund for the following purposes:

1. No more than twelve percent to fund staff support to plan and administer the off-highway vehicle recreation fund.

2. To establish an off-highway vehicle program based on the priorities established in the off-highway vehicle recreational plan.

3. To designate, construct, maintain, renovate, repair or connect off-highway vehicle routes and trails and to designate, manage and acquire land for access roads, off-highway vehicle recreation facilities and off-highway vehicle use areas. After expenditures pursuant to paragraph 1 of this subsection, the Arizona state parks board shall not spend more than thirty-five percent of the remaining monies received pursuant to this subsection for construction of new off-highway vehicle trails.

4. For enforcement of off-highway vehicle laws.

5. For off-highway vehicle related informational and environmental education programs, information, signage, maps and responsible use programs.

6. For the mitigation of damages to land, revegetation and the prevention and restoration of damages to natural and cultural resources, including the closure of existing access roads, off-highway vehicle use areas and off-highway vehicle routes and trails.

7. For necessary environmental, historical and cultural clearance or compliance activities.

F. The allocation of the monies in subsection E, paragraphs 3 through 7 of this section and the percentages allocated to each of the purposes prescribed in subsection E, paragraphs 3 through 7 of this section shall be based on an off-highway vehicle recreational plan.

G. Monies in the off-highway vehicle recreation fund shall not be used to construct new off-highway vehicle trails or routes on environmentally or culturally sensitive land unless the appropriate land management agency determines that certain new trail construction would benefit or protect cultural or sensitive sites. For the purposes of this subsection, "environmentally or culturally sensitive land" means areas of lands that are either:

1. Administratively or legislatively designated by the federal government as any of the following:

(a) A national monument.

(b) An area of critical environmental concern.

(c) A conservation area.

(d) An inventoried roadless area.

2. Determined by the applicable land management agency to contain significant natural or cultural resources or values.

H. The Arizona state parks board shall examine applications for eligible projects and determine the amount of funding, if any, for each project. In determining the amount of monies for eligible projects, the Arizona state parks board shall give preference to applications for projects with mitigation efforts and for projects that encompass a large number of purposes described in subsection E, paragraphs 3 through 7 of this section.

I. Beginning September 1, 2011, and on or before September 1 of each subsequent year, each agency that receives monies from the off-highway vehicle recreation fund shall submit an off-highway vehicle report to the president of the senate, the speaker of the house of representatives, the chairperson of the senate natural resources and rural affairs committee, or its successor committee, and the chairperson of the house of representatives natural resources and public safety committee, or its successor committee. The report shall be made available to the public. The report shall include information on all of the following if applicable:

1. The amount of monies spent or encumbered in the fund during the preceding fiscal year for the purposes of off-highway vehicle law enforcement activities.

2. The amount of monies spent from the off-highway vehicle recreation fund during the preceding fiscal year for employee services.

3. The number of full-time employees employed in the preceding fiscal year in connection with off-highway vehicle law enforcement activities.

4. The amount of monies spent from the off-highway vehicle recreation fund during the preceding fiscal year for information and education.

5. The number and specific location of verbal warnings, written warnings and citations given or issued during the preceding fiscal year.

6. A specific and detailed accounting for all monies spent in accordance with this section for construction of new off-highway vehicle trails, mitigation of damages to lands, revegetation, the prevention and restoration of damages to natural and cultural resources, signage, maps and necessary environmental, historical and cultural clearance or compliance activities.

J. For the purposes of this section, "off-highway vehicle recreational plan" means a plan that is maintained by the Arizona state parks board pursuant to section 41-511.04.

§ 28-1177 Off-highway vehicle user fee; indicia; registration; state trust land recreational permit; exception

A. A person shall not operate or allow the operation of an all-terrain vehicle or an off-highway vehicle in this state without either a resident or nonresident off-highway vehicle user indicia issued by the department if the all-terrain vehicle or off-highway vehicle meets both of the following criteria:

1. Is designed by the manufacturer primarily for travel over unimproved terrain.

2. Has an unladen weight of two thousand five hundred pounds or less.

B. A person shall apply to the department of transportation for a resident or nonresident off-highway vehicle user indicia by submitting an application prescribed by the department of transportation and a user fee for the indicia in an amount to be determined by the director of the department of transportation in cooperation with the director of the Arizona game and fish department and the Arizona state parks board. The resident or nonresident off-highway vehicle user indicia is valid for one year from the date of issuance and may be renewed. The department shall prescribe by rule the design and placement of the indicia.

C. When a person pays for a resident off-highway vehicle user indicia pursuant to this section, the person may request a motor vehicle registration if the vehicle meets all equipment requirements to be operated on a highway pursuant to article 16 of this chapter. If a person submits a signed affidavit to the department affirming that the vehicle meets all of the equipment requirements for highway use and that the vehicle will be operated primarily off of highways, the department shall register the vehicle for highway use and the vehicle owner is not required to pay the registration fee prescribed in section 28-2003. This subsection does not apply to vehicles that as produced by the manufacturer meet the equipment requirements to be operated on a highway pursuant to article 16 of this chapter.

D. The director shall deposit, pursuant to sections 35-146 and 35-147, seventy percent of the user fees collected pursuant to this section in the off-highway vehicle recreation fund established by section 28-1176 and thirty percent of the user fees collected pursuant to this section in the Arizona highway user revenue fund.

E. The Arizona game and fish department may provide for the purchase of nonresident off-highway vehicle user indicia and may impose an additional service fee in an amount to be determined by the Arizona game and fish commission by rule. The Arizona game and fish department shall deposit, pursuant to sections 35-146 and 35-147, the service fees collected pursuant to this subsection in the game and fish fund established by section 17-261.

F. An occupant of an off-highway vehicle with a resident or nonresident off-highway vehicle user indicia issued pursuant to this section who crosses state trust lands must comply with all of the rules and requirements under a state trust land recreational permit. All occupants of an off-highway vehicle with a resident or nonresident off-highway vehicle user indicia shall obtain a state trust land recreational permit from the state land department for all other authorized recreational activities on state trust land.

G. This section does not apply to off-highway vehicles, all-terrain vehicles or off-road recreational motor vehicles that are used off-highway exclusively for agricultural, ranching, construction, mining, mining exploration or building trade purposes.

H. In consultation with the department of transportation, the Arizona game and fish department may adopt rules necessary to implement this section.

§ 28-1178 Operation of off-highway vehicles; exceptions

A person may operate an all-terrain vehicle or an off-highway vehicle in this state without a resident or nonresident off-highway vehicle user indicia issued pursuant to section 28-1177 if any of the following applies:

1. The person is participating in an off-highway special event.

2. The person is operating an all-terrain vehicle or an off-highway vehicle on private land.

3. The person is loading or unloading an all-terrain vehicle or an off-highway vehicle from a vehicle.

4. During a period of emergency or if the operation is directed by a peace officer or other public authority.

5. The vehicle displays a valid dealer license plate that the department issues pursuant to section 28-4533.

§ 28-1179 Off-highway vehicle equipment requirements; rule making; exception

A. An off-highway vehicle in operation in this state shall be equipped with all of the following:

1. Brakes adequate to control the movement of the vehicle and to stop and hold the vehicle under normal operating conditions.

2. Lighted headlights and taillights that meet or exceed original equipment manufacturer guidelines if operated between one-half hour after sunset and one-half hour before sunrise.

3. Except when operating on a closed course, either a muffler or other noise dissipative device that prevents sound above ninety-six decibels. The director shall adopt the current sound measurement standard of the society of automotive engineers for all-terrain vehicles and motorcycles and the current sound measurement standard of the international organization for standardization for all other off-highway vehicles.

4. A spark arrestor device that is approved by the United States department of agriculture and that is in constant operation except if operating on a closed course.

5. A safety flag that is at least six by twelve inches and that is attached to the off-highway vehicle at least eight feet above the surface of level ground, if operated on sand dunes or in areas designated by the managing agency.

B. A person who is under eighteen years of age may not operate an off-highway vehicle or be an off-highway vehicle passenger on public or state land unless the person is wearing a protective helmet that is properly fitted and fastened, that is designed for motorized vehicle use and that has a minimum United States department of transportation safety rating.

C. A person may not allow a person who is under eighteen years of age to operate an off-highway vehicle or be an off-highway vehicle passenger in violation of subsection B of this section.

D. Subsections B and C of this section do not apply to a child who is an off-highway vehicle passenger if both of the following occur:

1. The child is properly secured in a child restraint system pursuant to section 28-907.

2. The off-highway vehicle is equipped with a rollover protection system.

E. In consultation with the department, the Arizona game and fish commission may:

1. Adopt rules necessary to implement this section.

2. Prescribe additional equipment requirements not in conflict with federal laws.

F. This section does not apply to a private landowner or lessee performing normal agricultural or ranching practices while operating an all-terrain vehicle or an off-highway vehicle on the private or leased land in accordance with the landowner's or lessee's lease.

§ 28-1180 Race or organized event; authorization required

No person may organize, promote or hold an off-highway vehicle race or other organized event on any land or highway in this state, except as authorized by the appropriate agency that has jurisdiction over the land or highway or the landowner.

§ 28-1181 Civil traffic violation

Unless otherwise specified in this article, a violation of this article is a civil traffic violation.

Article 21 Photo Enforcement Systems

§ 28-1201 Definition of photo enforcement system

In this article, unless the context otherwise requires, "photo enforcement system" has the same meaning prescribed in section 28-601.

§ 28-1202 Exemption; first responders

A vehicle in use by a first responder in the line of duty is exempt from any enforcement action or measure resulting from a photo enforcement system.

§ 28-1203 Photo enforcement system placement; speed limit change

A photo enforcement system shall not be placed on a street or highway within six hundred feet of a posted speed limit change except that a photo enforcement system may be placed in an area around a school crossing that is delineated by signs as prescribed by section 28-797, subsection D.

§ 28-1204 Photo enforcement zones; signage; standards; citation dismissal

A. Except as provided in subsection F of this section, every local authority or agency of this state using a photo enforcement system shall adopt standards and specifications that indicate to a person operating a motor vehicle that a photo enforcement system is present and operational.

B. The standards and specifications adopted pursuant to subsection A of this section shall include all of the following:

1. At least two signs shall be placed in a location before a photo enforcement system. One sign shall be in a location that is approximately three hundred feet before the photo enforcement system. Placement of additional signs shall be more than three hundred feet before a photo enforcement system to provide reasonable notice to a person that a photo enforcement system is present and operational.

2. A sign that clearly states the posted speed limit shall be placed between the two signs prescribed by paragraph 1.

3. Signs indicating a photo enforcement system shall be removed or covered when the photo enforcement system is no longer present or not operating.

C. Signs erected by a local authority or agency of this state as prescribed in this section shall contain a yellow warning notice and correlate with and as far as possible conform to the system set forth in the most recent edition of the manual on uniform traffic control devices for streets and highways adopted by the director pursuant to section 28-641.

D. If the standards and specifications prescribed pursuant to this section are not in effect during the operation of a photo enforcement system, the court may dismiss any citation issued to a person who is identified by the use of the photo enforcement system.

E. During the time a vehicle containing photo enforcement equipment is being used to identify violators of articles 3 and 6 of this chapter, the rear of the vehicle shall be clearly marked to indicate that the vehicle is functioning as a photo enforcement vehicle. This subsection does not apply to a vehicle that does not contain a photo enforcement system and that is used by a law enforcement officer.

F. Subsection B of this section does not apply to a mobile photo enforcement vehicle during the time a mobile photo enforcement vehicle is deployed on streets with a posted speed limit of forty miles per hour or less.

§ 28-1205 Red light running

A violation of article 3 of this chapter that is detected by a photo enforcement system may only result in a traffic ticket and complaint if the traffic control device involved in the violation conforms to the manual and specifications prescribed in section 28-641.

§ 28-1206 Photo enforcement system; prohibited use

This state or a local authority may not use a photo enforcement system on a state highway in this state to identify violators of article 3 or 6 of this chapter.

Article 22 Personal Delivery Devices

§ 28-1221 Definitions

In this article, unless the context otherwise requires:

1. "Agent" means a director, officer, employee or other person who is authorized to act on behalf of a business entity.

2. "Business entity" means a legal entity, including a corporation, partnership or sole proprietorship.

3. "Pedestrian area" includes a sidewalk, crosswalk, school crosswalk, school crossing zone or safety zone.

§ 28-1222 Applicability of laws to personal delivery devices

A. The operation of a personal delivery device is governed exclusively by both of the following:

1. This article.

2. Any applicable regulation that is adopted by a local authority and that is consistent with this article.

B. A personal delivery device that is operated in compliance with this article is not a vehicle.

§ 28-1223 Operator

A. A person may operate a personal delivery device only if both of the following apply:

1. The person is a business entity.

2. A human who is an agent is capable of monitoring or exercising physical control over the navigation and operation of the personal delivery device.

B. Except as provided by subsection C of this section, when a personal delivery device operated by a business entity is engaged, the business entity is the operator of the personal delivery device solely for the purpose of assessing compliance with applicable traffic laws.

C. When a personal delivery device operated by a business entity is engaged and an agent controls the personal delivery device in a manner that is outside the scope of the agent's office or employment, the agent is the operator of the personal delivery device.

D. A person is not the operator of a personal delivery device solely because the person either:

1. Requests a delivery or service provided by the personal delivery device.

2. Dispatches the personal delivery device.

§ 28-1224 Operation requirements

A personal delivery device must:

1. Operate in a manner that complies with the provisions of this title that apply to pedestrians except those provisions that by their nature can have no application.

2. Yield to or not obstruct the right-of-way of all other traffic, including pedestrians.

3. Not unreasonably interfere with other traffic, including pedestrians.

4. If operated at nighttime, display the lights required by section 28-1226.

5. Comply with any applicable regulations that are adopted by a local authority.

6. Not transport hazardous materials that are regulated under the hazardous materials transportation authorization act of 1994 (49 United States Code sections 5101 through 5128) and must be placarded under 49 Code of Federal Regulations sections 172.500 through 172.560.

7. Be monitored or controlled to ensure compliance with paragraph 3 of this section.

§ 28-1225 Areas of operation; speed limits

A. Except as provided in subsection B of this section a personal delivery device may be operated either:

1. At speeds up to twelve miles per hour in a pedestrian area.

2. At speeds up to twenty miles per hour on the side or shoulder of a highway in an area that is not a pedestrian area.

B. A local authority may establish a maximum speed of less than twelve miles per hour for a personal delivery device in a pedestrian area if the local authority determines that a maximum speed of twelve miles per hour is unreasonable or unsafe for that area. A maximum speed established under this subsection may not be less than seven miles per hour.

§ 28-1226 Equipment

A. A personal delivery device must be equipped with both of the following:

1. A marker that clearly states the name and contact information of the owner and a unique identification number.

2. A braking system that enables the device to come to a controlled stop.

B. A personal delivery device that is operated at nighttime must be equipped with lights on the front and rear of the personal delivery device that are visible and recognizable under normal atmospheric conditions on all sides of the device from one to five hundred feet from the device when the lights are directly in front of lower beams of headlamps as prescribed in section 28-924.

§ 28-1227 Local authority regulations; peace officers

A. A local authority may not regulate the operation of a personal delivery device on a highway or in a pedestrian area in a manner that is inconsistent with this article.

B. This section does not:

1. Affect the authority of a local authority's peace officers to enforce the laws of this state relating to the operation of a personal delivery device.

2. Prevent a local authority from prohibiting personal delivery devices in a specified zone or during certain hours in a specified zone to protect public health and safety.

§ 28-1228 Insurance

A business entity that operates a personal delivery device must maintain an insurance policy that includes general liability coverage of at least $100,000 for damages arising from the operation of the device.

Chapter 4 Driving Under the Influence

Article 1 General Provisions

§ 28-1301 Definitions

In this chapter, unless the context otherwise requires:

1. "Certified ignition interlock device" means an ignition interlock device that is certified pursuant to article 5 of this chapter.

2. "Circumvent" or "circumvention" means an attempted or successful bypass of the proper functioning of a certified ignition interlock device and includes all of the following:

(a) The bump start of a motor vehicle with a certified ignition interlock device.

(b) The introduction of a false sample other than a deep-lung breath sample from the person driving the motor vehicle.

(c) The introduction of an intentionally contaminated or a filtered breath sample.

(d) The intentional disruption or blocking of a digital image identification device.

(e) The continued operation of the motor vehicle after the certified ignition interlock device detects breath alcohol exceeding the presumptive limit prescribed in section 28-1381, subsection G, paragraph 3 or, if the person is under twenty-one years of age, any attempt to operate the motor vehicle with any spirituous liquor in the person's body.

(f) Operating a motor vehicle without a properly functioning certified ignition interlock device.

(g) Allowing a person other than the person who is required to maintain a functioning certified ignition interlock device pursuant to this chapter to breathe into the certified ignition interlock device for the purpose of providing a breath alcohol sample to start the motor vehicle or for the rolling retest.

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

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

(b) Has either a gross vehicle weight rating or a gross weight of twenty-six thousand one or more pounds, whichever is greater.

(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 pursuant to chapter 14 of this title.

4. "Education" means a program in which a person participates in at least sixteen hours of classroom instruction relating to alcohol or other drugs.

5. "Gross weight" has the same meaning prescribed in section 28-5431.

6. "Ignition interlock device" means a device that is based on alcohol specific electrochemical fuel sensor technology that meets the national highway traffic safety administration specifications, that connects a breath analyzer to a motor vehicle's ignition system, that is constantly available to monitor the concentration by weight of alcohol in the breath of any person attempting to start the motor vehicle by using its ignition system and that deters starting the motor vehicle by use of its ignition system unless the person attempting to start the motor vehicle provides an appropriate breath sample for the device and the device determines that the concentration by weight of alcohol in the person's breath is below a preset level.

7. "Ignition interlock service provider" means a person who is an authorized representative of a manufacturer and who is under contract with the department to install or oversee the installation of ignition interlock devices by the provider's authorized agents or subcontractors and to provide services to the public related to ignition interlock devices.

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

9. "Manufacturer" means a person or an organization that is located in the United States, that is responsible for the design, construction or production of an ignition interlock device and that is certified by the department to offer ignition interlock devices for installation in motor vehicles in this state.

10. "Rolling retest" means a breath alcohol test that is required of a person at random intervals after the motor vehicle is started and that is in addition to the initial test required to start the motor vehicle.

11. "Screening" means a preliminary interview and assessment of an offender to determine if the offender requires alcohol or other drug education or treatment.

12. "Tampering" means an overt or conscious attempt to physically disable or otherwise disconnect the certified ignition interlock device from its power source that allows the operator to start the engine without taking and passing the requisite breath test.

13. "Technician" means a person who is certified and properly trained by an ignition interlock service provider to install, inspect, repair, calibrate, service or remove certified ignition interlock devices.

14. "Treatment" means a program consisting of at least twenty hours of participation in a group setting dealing with alcohol or other drugs in addition to the sixteen hours of education.

§ 28-1302 Applicability of chapter

This chapter applies on highways and elsewhere in this state.

§ 28-1303 Oversight council on driving or operating under the influence abatement; report

A. The oversight council on driving or operating under the influence abatement is established consisting of the following ten members:

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

2. The assistant director for the motor vehicle division of the department of transportation or the assistant director's designee.

3. The director of the governor's office of highway safety.

4. One member of the public who is appointed by the governor.

5. One member of the public who is appointed by the speaker of the house of representatives.

6. One member of the public who is appointed by the president of the senate.

7. One municipal law enforcement member who is appointed by the governor on the recommendation of an Arizona association of chiefs of police.

8. One county law enforcement member who is appointed by the governor on the recommendation of an Arizona county sheriff's association.

9. One city prosecutor who is appointed by the governor on the recommendation of the Arizona prosecuting attorney's advisory council.

10. One county attorney who is appointed by the governor on the recommendation of the Arizona prosecuting attorney's advisory council.

B. Members appointed pursuant to subsection A, paragraphs 4, 5, 6, 7, 8, 9 and 10 of this section serve three-year staggered terms.

C. Members appointed pursuant to subsection A, paragraphs 1, 2 and 3 of this section shall serve as advisory nonvoting members of the council.

D. The voting members of the council shall annually elect a chairperson from among the members.

E. Members of the council are not eligible to receive compensation, but members who are appointed pursuant to subsection A, paragraphs 4, 5, 6, 7, 8, 9 and 10 of this section are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.

F. The oversight council on driving or operating under the influence abatement may use the facilities for meeting and the staff of the Arizona criminal justice commission.

G. The oversight council on driving or operating under the influence abatement may enter into interagency agreements with the Arizona criminal justice commission and other agencies for agency business.

H. The council shall:

1. Make grants from the driving under the influence abatement fund established by section 28-1304 to political subdivisions and tribal governments that apply for monies for enforcement purposes, prosecutorial and judicial activities and alcohol abuse treatment services related to preventing and abating driving or operating under the influence occurrences in a motor vehicle or a motorized watercraft as defined in section 5-301.

2. Make grants from the driving under the influence abatement fund established by section 28-1304 to innovative programs that use emerging technologies to educate, prevent or deter occurrences of driving or operating under the influence in a motor vehicle or a motorized watercraft.

3. Receive quarterly reports from the entities receiving grants and evaluate their effectiveness. The council may make additional grants to the recipients and oversee the progress of those programs.

4. On or before December 1 of each year, submit a written report on the effectiveness of the grants provided in reducing the incidence of driving or operating under the influence to the governor, the speaker of the house of representatives and the president of the senate and shall provide a copy of this report to the secretary of state.

§ 28-1304 Driving under the influence abatement fund

A. The driving under the influence abatement fund is established consisting of monies deposited pursuant to section 4-213, subsection J, section 5-396, subsection I, paragraph 2, section 5-397, subsection D, paragraph 3 and subsection F, paragraph 3, section 28-1382, subsection D, paragraph 3 and subsection E, paragraph 3, section 28-1383, subsection J, paragraph 2 and section 28-1465.

B. The oversight council on driving or operating under the influence abatement established by section 28-1303 shall administer the fund.

C. Twenty-five per cent of the monies deposited in the fund shall be used for grants for innovative programs pursuant to section 28-1303, subsection H, paragraph 2 and seventy per cent of the monies deposited in the fund shall be used for grants to political subdivisions and tribal governments pursuant to section 28-1303, subsection H, paragraph 1.

D. Not more than five per cent of the monies deposited in the fund shall be used for both of the following:

1. Administrative purposes of the oversight council on driving or operating under the influence abatement.

2. Payment of the costs of notification prescribed by section 28-1467.

E. Monies in the fund are:

1. Continuously appropriated.

2. Exempt from the provisions of section 35-190 relating to lapsing of appropriations.

F. On notice from the oversight council on driving or operating under the influence abatement, the state treasurer shall invest and divest monies in the fund as provided in section 35-313, and monies earned from investments shall be credited to the fund.

Article 2 Implied Consent and Tests

§ 28-1321 Implied consent; tests; refusal to submit to test; order of suspension; hearing; review; temporary permit; notification of suspension; special ignition interlock restricted driver license

A. A person who operates a motor vehicle in this state gives consent, subject to section 4-244, paragraph 34 or section 28-1381, 28-1382 or 28-1383, to a test or tests of the person's blood, breath, urine or other bodily substance for the purpose of determining alcohol concentration or drug content if the person is arrested for any offense arising out of acts alleged to have been committed in violation of this chapter or section 4-244, paragraph 34 while the person was driving or in actual physical control of a motor vehicle while under the influence of intoxicating liquor as prescribed in section 28-1381 or drugs. The test or tests chosen by the law enforcement agency shall be administered at the direction of a law enforcement officer having reasonable grounds to believe that the person was driving or in actual physical control of a motor vehicle in this state either:

1. While under the influence of intoxicating liquor as prescribed in section 28-1381 or drugs.

2. If the person is under twenty-one years of age, with spirituous liquor in the person's body.

B. After an arrest a violator shall be requested to submit to and successfully complete any test or tests prescribed by subsection A of this section, and if the violator refuses the violator shall be informed that the violator's license or permit to drive will be suspended or denied for twelve months, or for two years for a second or subsequent refusal within a period of eighty-four months, unless the violator expressly agrees to submit to and successfully completes the test or tests. A failure to expressly agree to the test or successfully complete the test is deemed a refusal. The violator shall also be informed that:

1. If the test results show a blood or breath alcohol concentration of 0.08 or more, if the results show a blood or breath alcohol concentration of 0.04 or more and the violator was driving or in actual physical control of a commercial motor vehicle, a vehicle for hire as defined in section 28-9501 or while providing transportation network services as defined in section 28-9551 as a transportation network company driver as defined in section 28-9551 or if the results show there is any drug defined in section 13-3401 or its metabolite in the person's body and the person does not possess a valid prescription for the drug, the violator's license or permit to drive will be suspended or denied for not less than ninety consecutive days.

2. The violator's driving privilege, license, permit, right to apply for a license or permit or nonresident operating privilege may be issued or reinstated following the period of suspension only if the violator completes alcohol or other drug screening.

C. A person who is dead, unconscious or otherwise in a condition rendering the person incapable of refusal is deemed not to have withdrawn the consent provided by subsection A of this section and the test or tests may be administered, subject to section 4-244, paragraph 34 or section 28-1381, 28-1382 or 28-1383.

D. If a person under arrest refuses to submit to the test designated by the law enforcement agency as provided in subsection A of this section:

1. The test shall not be given, except as provided in section 28-1388, subsection E or pursuant to a search warrant.

2. The law enforcement officer directing the administration of the test shall:

(a) File a certified report of the refusal with the department within thirty days after the date of the arrest. If a certified report is not forwarded to the department as prescribed by this subdivision, the department shall not enter an order of suspension on its records unless the violation listed in subsection A of this section resulted in death or serious physical injury as defined in section 13-105.

(b) On behalf of the department, do one of the following:

(i) Serve an order of suspension on the person that is effective thirty days after the date the order is served.

(ii) Advise the person that the certified report will be submitted to the department and that the department will notify the person in writing if an order of suspension is entered. The law enforcement officer shall direct the person to ensure the person's address is updated with the department pursuant to section 28-448.

(c) Require the immediate surrender of any license or permit to drive that is issued by this state and that is in the possession or control of the person. The law enforcement agency may do either of the following to a driver license or permit taken into possession under this subdivision:

(i) In compliance with sections 41-151.15 and 41-151.19, destroy the driver license or permit.

(ii) Forward the driver license or permit to the department within thirty days after the issuance of the notice of suspension.

(d) If the license or permit is not surrendered, state the reason why it is not surrendered.

(e) If a valid license or permit is surrendered, issue a temporary driving permit that is valid for thirty days.

(f) Forward the certified report of refusal, a copy of the completed notice of suspension and a copy of any completed temporary permit to the department within thirty days after the issuance of the notice of suspension.

E. The certified report is subject to the penalty for perjury as prescribed by section 28-1561 and shall state all of the following:

1. The officer's reasonable grounds to believe that the arrested person was driving or in actual physical control of a motor vehicle in this state either:

(a) While under the influence of intoxicating liquor as prescribed in section 28-1381 or drugs.

(b) If the person is under twenty-one years of age, with spirituous liquor in the person's body.

2. The manner in which the person refused to submit to the test or tests.

3. That the person was advised of the consequences of refusal.

F. On receipt of the certified report of refusal and a copy of the order of suspension, the department shall enter the order of suspension on its records. The order of suspension is effective thirty days after the date that the order was served unless a timely request for a hearing as provided in this section is filed by the accused person. If the department receives only the certified report of refusal, the department shall notify the person named in the report in writing sent by mail that:

1. Thirty days after the date of issuance of the notice the department will suspend the person's license or permit, driving privilege or nonresident driving privilege.

2. The department will provide an opportunity for a hearing if the person requests a hearing in writing or online and the request is received by the department within thirty days after the notice is sent.

G. The order of suspension issued by a law enforcement officer or the department under this section shall notify the person that:

1. The person may submit a written or online request for a hearing.

2. The request for a hearing must be received by the department within thirty days after the date of the notice or the order of suspension will become final.

3. The affected person's license or permit to drive or right to apply for a license or permit or any nonresident operating privilege will be suspended for twelve months from that date or for two years from that date for a second or subsequent refusal within a period of eighty-four months.

4. The person's driving privilege, license, permit, right to apply for a license or permit or nonresident operating privilege may be issued or reinstated following the period of suspension only if the person completes alcohol or other drug screening.

H. The order for suspension shall:

1. Be accompanied by printed forms that are ready to mail to the department, that may be filled out and signed by the person to indicate the person's desire for a hearing and that advise the person that the person may alternatively submit an online request for a hearing.

2. Advise the person that unless the person has surrendered any driver license or permit issued by this state the person's hearing request will not be accepted, except that the person may certify pursuant to section 28-3170 that the license or permit is lost or destroyed.

I. On the receipt of a request for a hearing, the department shall set the hearing within sixty days. The department may hold the hearing in person, by telephone or by videoconference. If the department holds the hearing in person, the hearing shall be held in the county in which the person named in the report resides unless the law enforcement agency filing the certified report of refusal pursuant to subsection D of this section requests at the time of its filing that the hearing be held in the county where the refusal occurred.

J. A timely request for a hearing stays the suspension until a hearing is held, except that the department shall not return any surrendered license or permit to the person but may issue temporary permits to drive that expire not later than when the department has made its final decision. If the person is a resident without a license or permit or has an expired license or permit, the department may allow the person to apply for a restricted license or permit. If the department determines the person is otherwise entitled to the license or permit, the department shall issue and retain a restricted license or permit subject to this section.

K. Hearings requested under this section shall be conducted in the same manner and under the same conditions as provided in section 28-3306. For the purposes of this section, the scope of the hearing shall include only the issues of whether:

1. A law enforcement officer had reasonable grounds to believe that the person was driving or was in actual physical control of a motor vehicle in this state either:

(a) While under the influence of intoxicating liquor as prescribed in section 28-1381 or drugs.

(b) If the person is under twenty-one years of age, with spirituous liquor in the person's body.

2. The person was placed under arrest.

3. The person refused to submit to the test.

4. The person was informed of the consequences of refusal.

L. If the department determines at the hearing to suspend the affected person's privilege to operate a motor vehicle, the suspension provided in this section is effective thirty days after giving written notice of the suspension, except that the department may issue or extend a temporary license that expires on the effective date of the suspension. If the person is a resident without a license or permit or has an expired license or permit to operate a motor vehicle in this state, the department shall deny to the person the issuance of a license or permit for a period of twelve months after the order of suspension becomes effective or for a period of two years after the order of suspension becomes effective for a second or subsequent refusal within a period of eighty-four months, and may reinstate the person's driving privilege, license, permit, right to apply for a license or permit or nonresident operating privilege following the period of suspension only if the person completes alcohol or other drug screening.

M. If the suspension order is sustained after the hearing, a motion for rehearing is not required. Within thirty days after a suspension order is sustained, the affected person may file a petition in the superior court to review the final order of suspension or denial by the department in the same manner provided in section 28-3317. The court shall hear the review of the final order of suspension or denial on an expedited basis.

N. If the suspension or determination that there should be a denial of issuance is not sustained, the ruling is not admissible in and has no effect on any administrative, civil or criminal court proceeding.

O. If it has been determined under the procedures of this section that a nonresident's privilege to operate a motor vehicle in this state has been suspended, the department shall give information either in writing or by electronic means of the action taken to the motor vehicle administrator of the state of the person's residence and of any state in which the person has a license.

P. After completing any alcohol or other drug screening that is ordered by the department pursuant to this chapter, a person whose driving privilege is suspended pursuant to this section may apply to the department for a special ignition interlock restricted driver license pursuant to section 28-1401. Unless the certified ignition interlock period is extended by the department pursuant to section 28-1461, a person who is issued a special ignition interlock restricted driver license as provided in this subsection shall maintain a functioning certified ignition interlock device in compliance with this chapter during the remaining period of the suspension prescribed by this section. This subsection does not apply to a person whose driving privilege is suspended for a second or subsequent refusal within a period of eighty-four months.

Q. Notwithstanding section 28-1401, the department may issue a special ignition interlock restricted driver license to a person for an offense described in subsection A of this section. A person who applies for and who is issued a special ignition interlock restricted driver license pursuant to this subsection agrees to the administrative action taken by the department against the person's license. Once the department issues a special ignition interlock restricted driver license pursuant to this subsection, the person waives any right to an administrative hearing contesting the administrative action against the person's license pursuant to this section or section 28-1385.

§ 28-1322 Preliminary breath tests; rules on approval of devices

A. A law enforcement officer who has reasonable suspicion to believe that a person has committed a violation of section 28-1381 or 28-1382 may request that the person submit to a preliminary breath test or tests before an arrest.

B. In addition to a breath test or tests, the officer may require that the person submit to further testing pursuant to section 28-1321.

C. The director of the department of public safety shall adopt rules prescribing the approval of quantitative preliminary breath testing devices.

§ 28-1323 Admissibility of breath test or other records

A. The results of a breath test administered for the purpose of determining a person's alcohol concentration are admissible as evidence in any trial, action or proceeding on establishing the following foundational requirements:

1. The test was performed using a quantitative breath testing device approved by the department of health services or the department of public safety. A properly authenticated certification by the department of health services or the department of public safety or judicial notice of department of health services or department of public safety rules is sufficient to establish this requirement.

2. The operator who conducted the test possessed a valid permit issued by the department of health services or the department of public safety to operate the device used to conduct the test.

3. Duplicate tests were administered and the test results were within 0.02 alcohol concentration of each other or an operator observed the person charged with the violation for twenty minutes immediately preceding the administration of the test.

4. The operator who conducted the test followed an operational checklist approved by the department of health services or the department of public safety for the operation of the device used to conduct the test. The testimony of the operator is sufficient to establish this requirement.

5. The device used to conduct the test was in proper operating condition. Records of periodic maintenance that show that the device was in proper operating condition are admissible in any proceeding as prima facie evidence that the device was in proper operating condition at the time of the test. Calibration checks with a standard alcohol concentration solution bracketing each person's duplicate breath test are one type of records of periodic maintenance that satisfies the requirements of this section. The records are public records.

B. Compliance with subsection A of this section is the only requirement for the admission in evidence of a breath test result.

C. The inability of any person to obtain manufacturer's schematics and software for a quantitative breath testing device that is approved as prescribed in subsection A of this section shall not affect the admissibility of the results of a breath test pursuant to this section.

D. Records that may be obtained or that are otherwise maintained pursuant to section 28-1327 are admissible as evidence in any trial, action or proceeding.

§ 28-1324 Breath test rules

The director of the department of public safety shall adopt rules prescribing methods and procedures for the administration of breath tests to determine alcohol concentration. The rules shall include:

1. The approval of quantitative breath testing devices.

2. Procedures for ensuring the accuracy of results obtained from approved breath testing devices.

3. Qualifications for persons who conduct breath tests.

4. Qualifications for persons who instruct others in the operation of breath testing devices.

§ 28-1325 Breath test operator permits

A. The director of the department of public safety shall issue permits to operators who have received approved instruction and who have demonstrated their ability to accurately operate an approved breath testing device.

B. The director of the department of public safety may revoke the permit of a person who fails to operate a breath testing device according to the rules adopted by the director of the department of public safety.

§ 28-1326 Blood test; rules; permits

A. The director of the department of public safety shall adopt rules prescribing the approval of methods for the analysis of blood or other bodily substances to determine blood alcohol concentration.

B. The director of the department of public safety shall issue a permit to an analyst who has demonstrated the ability to accurately analyze blood or other bodily substances for alcohol concentration.

C. The director of the department of public safety may revoke the permit of an analyst who either:

1. Has demonstrated an inability to accurately analyze blood or other bodily substances for alcohol concentration.

2. Fails to analyze blood or other bodily substances for alcohol concentration according to rules adopted by the director of the department of health services.

§ 28-1327 Reproduction of records; admissibility; computer storage; definition

A. The head of a law enforcement agency or the director of the department of health services may place on computer storage any records concerning a quantitative breath testing device. Signatures that are found on the records do not have to be placed on computer storage.

B. A duplicate of any information that is placed on computer storage pursuant to subsection A is deemed to be an original of the record for all purposes and is admissible without further foundation in evidence if the following appears on each page:

Pursuant to section 28-1327, Arizona Revised Statutes, this document is a certified duplicate of the information contained in computer storage devices of the (name of agency).

C. For the purposes of this section, "duplicate" means a counterpart produced by any of the following:

1. The same impression or from the same matrix as the original.

2. Means of photography, including enlargements and miniatures.

3. Mechanical or electronic rerecording.

4. Chemical reproduction.

5. Any other equivalent technique that accurately reproduces the original.

Article 3 Driving Under the Influence

§ 28-1381 Driving or actual physical control while under the influence; trial by jury; presumptions; admissible evidence; sentencing; time limitation; violation; classification; definition

A. It is unlawful for a person to drive or be in actual physical control of a vehicle in this state under any of the following circumstances:

1. While under the influence of intoxicating liquor, any drug, a vapor releasing substance containing a toxic substance or any combination of liquor, drugs or vapor releasing substances if the person is impaired to the slightest degree.

2. If the person has an alcohol concentration of 0.08 or more within two hours of driving or being in actual physical control of the vehicle and the alcohol concentration results from alcohol consumed either before or while driving or being in actual physical control of the vehicle.

3. While there is any drug defined in section 13-3401 or its metabolite in the person's body.

4. If the vehicle is a commercial motor vehicle that requires a person to obtain a commercial driver license as defined in section 28-3001 and the person has an alcohol concentration of 0.04 or more.

5. While operating a vehicle for hire as defined in section 28-9501 or while providing transportation network services as defined in section 28-9551 as a transportation network company driver as defined in section 28-9551 if the person has an alcohol concentration of 0.04 or more.

B. It is not a defense to a charge of a violation of subsection A, paragraph 1 of this section that the person is or has been entitled to use the drug under the laws of this state.

C. A person who is convicted of a violation of this section is guilty of a class 1 misdemeanor.

D. A person using a drug as prescribed by a medical practitioner who is licensed pursuant to title 32 and who is authorized to prescribe the drug is not guilty of violating subsection A, paragraph 3 of this section.

E. In any prosecution for a violation of this section, the state shall allege, for the purpose of classification and sentencing pursuant to this section, all prior convictions of violating this section, section 28-1382 or section 28-1383 occurring within the past thirty-six months, unless there is an insufficient legal or factual basis to do so.

F. At the arraignment, the court shall inform the defendant that the defendant may request a trial by jury and that the request, if made, shall be granted.

G. In a trial, action or proceeding for a violation of this section or section 28-1383 other than a trial, action or proceeding involving a person who is driving or in actual physical control of a commercial motor vehicle or a vehicle for hire as defined in section 28-9501 or involving a person who is providing transportation network services as defined in section 28-9551 as a transportation network company driver as defined in section 28-9551, the defendant's alcohol concentration within two hours of the time of driving or being in actual physical control as shown by analysis of the defendant's blood, breath or other bodily substance gives rise to the following presumptions:

1. If there was at that time 0.05 or less alcohol concentration in the defendant's blood, breath or other bodily substance, it may be presumed that the defendant was not under the influence of intoxicating liquor.

2. If there was at that time in excess of 0.05 but less than 0.08 alcohol concentration in the defendant's blood, breath or other bodily substance, that fact shall not give rise to a presumption that the defendant was or was not under the influence of intoxicating liquor, but that fact may be considered with other competent evidence in determining the guilt or innocence of the defendant.

3. If there was at that time 0.08 or more alcohol concentration in the defendant's blood, breath or other bodily substance, it may be presumed that the defendant was under the influence of intoxicating liquor.

H. Subsection G of this section does not limit the introduction of any other competent evidence bearing on the question of whether or not the defendant was under the influence of intoxicating liquor.

I. A person who is convicted of a violation of this section:

1. Shall be sentenced to serve not less than ten consecutive days in jail and is not eligible for probation or suspension of execution of sentence unless the entire sentence is served.

2. Shall pay a fine of not less than $250.

3. May be ordered by a court to perform community restitution.

4. Shall pay an additional assessment of $500 to be deposited by the state treasurer in the prison construction and operations fund established by section 41-1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

5. Shall pay an additional assessment of $500 to be deposited by the state treasurer in the public safety equipment fund established by section 41-1723. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

6. If the violation involved intoxicating liquor, shall be required by the department, on report of the conviction, to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28-3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date the person successfully completes the alcohol or other drug screening, education, evidence-based psychotherapy or treatment program requirements of this title and the person is otherwise eligible to reinstate the person's driver license or driving privilege. The person who operates a motor vehicle with a certified ignition interlock device under this paragraph shall comply with article 5 of this chapter.

7. Shall be required by the department to attend and successfully complete an approved traffic survival school course.

8. At the person's option, may be ordered by the court to participate in a religious program that is approved by the court. The person's participation in a religious program must be voluntary, and the purpose of the religious program may not include any effort to coerce the person to adopt or change any religious affiliation or beliefs.

J. Notwithstanding subsection I, paragraph 1 of this section, at the time of sentencing the judge may suspend all but one day of the sentence if the person completes a court ordered alcohol or other drug screening, education, evidence-based psychotherapy or treatment program. If the person fails to complete the court ordered alcohol or other drug screening, education, evidence-based psychotherapy or treatment program and has not been placed on probation, the court shall issue an order to show cause to the defendant as to why the remaining jail sentence should not be served.

K. If within a period of eighty-four months a person is convicted of a second violation of this section or is convicted of a violation of this section and has previously been convicted of a violation of section 28-1382 or 28-1383 or an act in another jurisdiction that if committed in this state would be a violation of this section or section 28-1382 or 28-1383, the person:

1. Shall be sentenced to serve not less than ninety days in jail, thirty days of which shall be served consecutively, and is not eligible for probation or suspension of execution of sentence unless the entire sentence has been served.

2. Shall pay a fine of not less than $500.

3. Shall be ordered by a court to perform at least thirty hours of community restitution.

4. Shall have the person's driving privilege revoked for one year. The court shall report the conviction to the department. On receipt of the report, the department shall revoke the person's driving privilege and, if the violation involved intoxicating liquor, shall require the person to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28-3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date the person successfully completes the alcohol or other drug screening, education, evidence-based psychotherapy or treatment program requirements of this title and the person is otherwise eligible to reinstate the person's driver license or driving privilege. The person who operates a motor vehicle with a certified ignition interlock device under this paragraph shall comply with article 5 of this chapter.

5. Shall pay an additional assessment of $1,250 to be deposited by the state treasurer in the prison construction and operations fund established by section 41-1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

6. Shall pay an additional assessment of $1,250 to be deposited by the state treasurer in the public safety equipment fund established by section 41-1723. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

7. Shall be required by the department to attend and successfully complete an approved traffic survival school course.

L. Notwithstanding subsection K, paragraph 1 of this section, at the time of sentencing, the judge may suspend all but thirty days of the sentence if the person completes a court ordered alcohol or other drug screening, education, evidence-based psychotherapy or treatment program. If the person fails to complete the court ordered alcohol or other drug screening, education, evidence-based psychotherapy or treatment program and has not been placed on probation, the court shall issue an order to show cause as to why the remaining jail sentence should not be served.

M. In applying the eighty-four month provision of subsection K of this section, the dates of the commission of the offense shall be the determining factor, irrespective of the sequence in which the offenses were committed.

N. A second violation for which a conviction occurs as provided in this section shall not include a conviction for an offense arising out of the same series of acts.

O. After completing forty-five days of the revocation period prescribed by subsection K of this section, a person whose driving privilege is revoked for a violation of this section and who is sentenced pursuant to subsection K of this section is eligible for a special ignition interlock restricted driver license pursuant to section 28-1401.

P. The court may order a person who is convicted of a violation of this section that does not involve intoxicating liquor to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28-3319. On receipt of the report of conviction and certified ignition interlock device requirement, the department shall require the person to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28-3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date the person successfully completes the alcohol or other drug screening, education, evidence-based psychotherapy or treatment program requirements of this title and the person is otherwise eligible to reinstate the person's driver license or driving privilege. The person who operates a motor vehicle with a certified ignition interlock device under this subsection shall comply with article 5 of this chapter.

Q. A prosecution for a violation of this section involving a collision that resulted in serious physical injury or death as identified in a written accident report completed pursuant to section 28-667 must be commenced within two years after actual discovery of the offense by the state or the political subdivision having jurisdiction or discovery by the state or the political subdivision that should have occurred with the exercise of reasonable diligence, whichever first occurs.

R. For the purposes of this section, "evidence-based psychotherapy" means psychotherapy services that are offered by a psychologist who is licensed pursuant to title 32, chapter 19.1 and who integrates the best available scientific research with clinical expertise based on the context of the patient's characteristics, culture and preferences.

§ 28-1382 Driving or actual physical control while under the extreme influence of intoxicating liquor; trial by jury; sentencing; time limitation; violation; classification

A. It is unlawful for a person to drive or be in actual physical control of a vehicle in this state if the person has an alcohol concentration as follows within two hours of driving or being in actual physical control of the vehicle and the alcohol concentration results from alcohol consumed either before or while driving or being in actual physical control of the vehicle:

1. 0.15 or more but less than 0.20.

2. 0.20 or more.

B. A person who is convicted of a violation of this section is guilty of driving or being in actual physical control of a vehicle while under the extreme influence of intoxicating liquor.

C. At the arraignment, the court shall inform the defendant that the defendant may request a trial by jury and that the request, if made, shall be granted.

D. A person who is convicted of a violation of this section:

1. Shall be sentenced to serve not less than thirty consecutive days in jail and is not eligible for probation or suspension of execution of sentence unless the entire sentence is served if the person is convicted of a violation of subsection A, paragraph 1 of this section. A person who is convicted of a violation of subsection A, paragraph 2 of this section shall be sentenced to serve not less than forty-five consecutive days in jail and is not eligible for probation or suspension of execution of sentence unless the entire sentence is served.

2. Shall pay a fine of not less than $250, except that a person who is convicted of a violation of subsection A, paragraph 2 of this section shall pay a fine of not less than $500. The fine prescribed in this paragraph and any assessments, restitution and incarceration costs shall be paid before the assessment prescribed in paragraph 3 of this subsection.

3. Shall pay an additional assessment of $250. If the conviction occurred in the superior court or a justice court, the court shall transmit the monies received pursuant to this paragraph to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the monies received pursuant to this paragraph to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer. The state treasurer shall deposit the monies received in the driving under the influence abatement fund established by section 28-1304.

4. May be ordered by a court to perform community restitution.

5. Shall be required by the department, on receipt of the report of conviction, to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28-3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date the person successfully completes the alcohol or other drug screening, education or treatment program requirements of this title and the person is otherwise eligible to reinstate the person's driver license or driving privilege. The person who operates a motor vehicle with a certified ignition interlock device under this paragraph shall comply with article 5 of this chapter.

6. Shall pay an additional assessment of $1,000 to be deposited by the state treasurer in the prison construction and operations fund established by section 41-1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

7. Shall pay an additional assessment of $1,000 to be deposited by the state treasurer in the public safety equipment fund established by section 41-1723. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

8. Shall be required by the department to attend and successfully complete an approved traffic survival school course.

E. If within a period of eighty-four months a person is convicted of a second violation of this section or is convicted of a violation of this section and has previously been convicted of a violation of section 28-1381 or 28-1383 or an act in another jurisdiction that if committed in this state would be a violation of this section or section 28-1381 or 28-1383, the person:

1. Shall be sentenced to serve not less than one hundred twenty days in jail, sixty days of which shall be served consecutively, and is not eligible for probation or suspension of execution of sentence unless the entire sentence has been served if the person is convicted of a violation of subsection A, paragraph 1 of this section. A person who is convicted of a violation of subsection A, paragraph 2 of this section shall be sentenced to serve not less than one hundred eighty days in jail, ninety of which shall be served consecutively, and is not eligible for probation or suspension of execution of sentence unless the entire sentence has been served.

2. Shall pay a fine of not less than $500, except that a person who is convicted of a violation of subsection A, paragraph 2 of this section shall pay a fine of not less than $1,000. The fine prescribed in this paragraph and any assessments, restitution and incarceration costs shall be paid before the assessment prescribed in paragraph 3 of this subsection.

3. Shall pay an additional assessment of $250. If the conviction occurred in the superior court or a justice court, the court shall transmit the monies received pursuant to this paragraph to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the monies received pursuant to this paragraph to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer. The state treasurer shall deposit the monies received in the driving under the influence abatement fund established by section 28-1304.

4. Shall be ordered by a court to perform at least thirty hours of community restitution.

5. Shall have the person's driving privilege revoked for at least one year. The court shall report the conviction to the department. On receipt of the report, the department shall revoke the person's driving privilege and shall require the person to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28-3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date the person successfully completes the alcohol or other drug screening, education or treatment program requirements of this title and the person is otherwise eligible to reinstate the person's driver license or driving privilege. The person who operates a motor vehicle with a certified ignition interlock device under this paragraph shall comply with article 5 of this chapter.

6. Shall pay an additional assessment of $1,250 to be deposited by the state treasurer in the prison construction and operations fund established by section 41-1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

7. Shall pay an additional assessment of $1,250 to be deposited by the state treasurer in the public safety equipment fund established by section 41-1723. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

8. Shall be required by the department to attend and successfully complete an approved traffic survival school course.

F. In applying the eighty-four month provision of subsection E of this section, the dates of the commission of the offense shall be the determining factor, irrespective of the sequence in which the offenses were committed.

G. A second violation for which a conviction occurs as provided in this section shall not include a conviction for an offense arising out of the same series of acts.

H. After completing forty-five days of the revocation period prescribed by subsection E of this section, a person whose driving privilege is revoked for a violation of this section and who is sentenced pursuant to subsection E of this section is eligible for a special ignition interlock restricted driver license pursuant to section 28-1401.

I. Notwithstanding subsection D, paragraph 1 of this section, at the time of sentencing if the person is convicted of a violation of subsection A, paragraph 1 of this section, the judge may suspend all but nine days of the sentence if the person equips any motor vehicle the person operates with a certified ignition interlock device for a period of twelve months. If the person is convicted of a violation of subsection A, paragraph 2 of this section, the judge may suspend all but fourteen days of the sentence if the person equips any motor vehicle the person operates with a certified ignition interlock device for a period of twelve months. If the person fails to comply with article 5 of this chapter and has not been placed on probation, the court shall issue an order to show cause as to why the remaining jail sentence should not be served.

J. A prosecution for a violation of this section involving a collision that resulted in serious physical injury or death as identified in a written accident report completed pursuant to section 28-667 must be commenced within two years after actual discovery of the offense by the state or the political subdivision having jurisdiction or discovery by the state or the political subdivision that should have occurred with the exercise of reasonable diligence, whichever first occurs.

K. A person who is convicted of a violation of this section is guilty of a class 1 misdemeanor.

§ 28-1383 Aggravated driving or actual physical control while under the influence; county jail program; annual report; violation; classification; definitions

A. A person is guilty of aggravated driving or actual physical control while under the influence of intoxicating liquor or drugs if the person does any of the following:

1. Commits a violation of section 28-1381, section 28-1382 or this section while the person's driver license or privilege to drive is suspended, canceled, revoked or refused or while a restriction is placed on the person's driver license or privilege to drive as a result of violating section 28-1381 or 28-1382 or under section 28-1385.

2. Within a period of eighty-four months commits a third or subsequent violation of section 28-1381, section 28-1382 or this section or is convicted of a violation of section 28-1381, section 28-1382 or this section and has previously been convicted of any combination of convictions of section 28-1381, section 28-1382 or this section or acts in another jurisdiction that if committed in this state would be a violation of section 28-1381, section 28-1382 or this section.

3. While a person under fifteen years of age is in the vehicle, commits a violation of either:

(a) Section 28-1381.

(b) Section 28-1382.

4. While the person is ordered by the court or required pursuant to section 28-3319 by the department to equip any motor vehicle the person operates with a certified ignition interlock device, commits a violation of section 28-1381, section 28-1382 or this section.

5. Commits a violation of section 28-1381, section 28-1382 or this section while driving the wrong way on a highway.

B. The dates of the commission of the offenses are the determining factor in applying the eighty-four month provision provided in subsection A, paragraph 2 of this section regardless of the sequence in which the offenses were committed. For the purposes of this section, a third or subsequent violation for which a conviction occurs does not include a conviction for an offense arising out of the same series of acts. The time that a probationer is found to be on absconder status or the time that a person is incarcerated in any state, federal, county or city jail or correctional facility is excluded when determining the eighty-four month period provided in subsection A, paragraph 2 and subsection E of this section.

C. The notice to a person of the suspension, cancellation, revocation or refusal of a driver license or privilege to drive is effective as provided in section 28-3318 or pursuant to the laws of the state issuing the license.

D. A person is not eligible for probation, pardon, commutation or suspension of sentence or release on any other basis until the person has served not less than four months in prison if the person is convicted under any of the following:

1. Subsection A, paragraph 1 of this section.

2. Subsection A, paragraph 2 of this section and within an eighty-four month period has been convicted of two prior violations of section 28-1381, section 28-1382 or this section, or any combination of those sections, or acts in another jurisdiction that if committed in this state would be a violation of section 28-1381, section 28-1382 or this section.

3. Subsection A, paragraph 5 of this section.

E. A person who is convicted under subsection A, paragraph 2 of this section and who within an eighty-four month period has been convicted of three or more prior violations of section 28-1381, section 28-1382 or this section, or any combination of those sections, or acts in another jurisdiction that if committed in this state would be a violation of section 28-1381, section 28-1382 or this section is not eligible for probation, pardon, commutation or suspension of sentence or release on any other basis until the person has served not less than eight months in prison.

F. A person who is convicted under subsection A, paragraph 3, subdivision (a) of this section shall serve at least the minimum term of incarceration required pursuant to section 28-1381.

G. A person who is convicted under subsection A, paragraph 3, subdivision (b) of this section shall serve at least the minimum term of incarceration required pursuant to section 28-1382.

H. A person who is convicted of a violation of this section shall attend and complete alcohol or other drug screening, education or treatment from an approved facility. If the person fails to comply with this subsection and is placed on probation, in addition to the provisions of section 13-901 the court may order that the person be incarcerated as a term of probation as follows:

1. For a person sentenced pursuant to subsection D of this section, for an individual period of not more than four months and a total period of not more than one year.

2. For a person sentenced pursuant to subsection E of this section, for an individual period of not more than eight months and a total period of not more than two years.

I. The time that a person spends in custody pursuant to subsection H of this section shall not be counted towards the sentence imposed if the person's probation is revoked and the person is sentenced to prison after revocation of probation.

J. On a conviction for a violation of this section, the court:

1. Shall report the conviction to the department. On receipt of the report, the department shall revoke the driving privilege of the person. The department shall not issue the person a new driver license within one year of the date of the conviction and, if the violation involved intoxicating liquor, shall require the person to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28-3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twenty-four months beginning on the date the person successfully completes the alcohol or other drug screening, education or treatment program requirements of this title and the person is otherwise eligible to reinstate the person's driver license or driving privilege. The person who operates a motor vehicle with a certified ignition interlock device under this paragraph shall comply with article 5 of this chapter.

2. In addition to any other penalty prescribed by law, shall order the person to pay an additional assessment of $250. If the conviction occurred in the superior court or a justice court, the court shall transmit the monies received pursuant to this paragraph to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the monies received pursuant to this paragraph to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer. The state treasurer shall deposit the monies received in the driving under the influence abatement fund established by section 28-1304. Any fine imposed for a violation of this section and any assessments, restitution and incarceration costs shall be paid before the assessment prescribed in this paragraph.

3. Shall order the person to pay a fine of not less than $750.

4. In addition to any other penalty prescribed by law, shall order the person to pay an additional assessment of $1,500 to be deposited by the state treasurer in the prison construction and operations fund established by section 41-1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

5. In addition to any other penalty prescribed by law, shall order the person to pay an additional assessment of $1,500 to be deposited by the state treasurer in the public safety equipment fund established by section 41-1723. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

K. On conviction for a violation of this section the defendant shall be required by the department to attend and successfully complete an approved traffic survival school course.

L. After completing the period of suspension required by section 28-1385, a person whose driving privilege is revoked for a violation of subsection A, paragraph 3 of this section may apply to the department for a special ignition interlock restricted driver license pursuant to section 28-1401.

M. The court may order a person who is convicted of a violation of this section that does not involve intoxicating liquor to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28-3319. On receipt of the report of conviction and certified ignition interlock device requirement, the department shall require the person to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28-3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date the person successfully completes the alcohol or other drug screening, education or treatment program requirements of this title and the person is otherwise eligible to reinstate the person's driver license or driving privilege. The person who operates a motor vehicle with a certified ignition interlock device under this subsection shall comply with article 5 of this chapter.

N. The sheriff of a county with a population of less than five hundred thousand persons may establish an aggravated driving under the influence jail program. If the sheriff establishes an aggravated driving under the influence jail program, the program may not be implemented until the state department of corrections enters into an agreement with the county board of supervisors pursuant to section 31-234 to facilitate the program. Notwithstanding subsections D and E of this section, if the violation occurs in a county that has established and implemented an aggravated driving under the influence jail program or in a county that is contiguous to a county that has established and implemented an aggravated driving under the influence jail program and the person is placed on probation, the mandatory term of incarceration that the person would otherwise serve in prison may be served in the jail of the county that established and implemented the program. A person who is incarcerated in a county jail pursuant to this subsection is not eligible for any release, work detail or monitoring program that the person would not otherwise be eligible for if incarcerated in prison. A county sheriff who establishes an aggravated driving under the influence jail program pursuant to this subsection shall submit an annual report to the Arizona criminal justice commission that contains the data that the Arizona statistical analysis center determines is necessary to prepare a recidivism report pursuant to section 41-2405.

O. Aggravated driving or actual physical control while under the influence of intoxicating liquor or drugs committed under:

1. Subsection A, paragraph 1, 2, 4 or 5 of this section is a class 4 felony.

2. Subsection A, paragraph 3 of this section is a class 6 felony.

P. For the purposes of this section:

1. "Suspension, cancellation, revocation or refusal" means any suspension, cancellation, revocation or refusal.

2. "Wrong way" means vehicular movement that is in a direction opposing the legal flow of traffic. Wrong way does not include median crossing or a collision where a motor vehicle comes to a stop facing the wrong way.

§ 28-1384 Aggravated driving or actual physical control while under the influence; forfeiture of vehicle

A. If a person is convicted of violating section 28-1383, the court, in addition to any other penalty imposed by law, shall order the motor vehicle owned and operated by the person at the time of the offense forfeited in the same manner as provided in title 13, chapter 39.

B. A vehicle used by a person as a common carrier in the transaction of business as a common carrier is not subject to forfeiture unless it appears that the owner or other person in charge of the vehicle consented to or was privy to a violation described in subsection A of this section.

C. Property that is subject to forfeiture and all interests in property that are forfeited under this section shall be disposed of and allocated in the same manner as provided in title 13, chapter 39, except that all monies that are obtained as a result of forfeiture under this section shall be deposited in the state general fund.

§ 28-1385 Administrative license suspension for driving under the influence or for homicide or assault involving a motor vehicle; report; hearing; summary review; ignition interlock device requirement

A. Within thirty days after an arrest occurs, a law enforcement officer shall forward to the department a certified report as prescribed in subsection B of this section, subject to the penalty for perjury prescribed by section 28-1561, if both of the following occur:

1. The officer arrests a person for a violation of section 4-244, paragraph 34, section 28-1381, section 28-1382 or section 28-1383 or for a violation of title 13, chapter 11 or section 13-1201 or 13-1204 involving a motor vehicle.

2. The person submits to a test of the person's blood, breath, urine or other bodily substance that is allowed by section 28-1321 or any other law or a sample of blood is obtained pursuant to section 28-1388 and the results are either not available or the results indicate any of the following:

(a) 0.08 or more alcohol concentration in the person's blood or breath.

(b) 0.04 or more alcohol concentration in the person's blood or breath if the person was driving or in actual physical control of a commercial motor vehicle.

(c) 0.04 or more alcohol concentration in the person's blood or breath if the person was driving or in actual physical control of a vehicle for hire as defined in section 28-9501 or while providing transportation network services as defined in section 28-9551 as a transportation network company driver as defined in section 28-9551.

(d) Any drug defined in section 13-3401 or its metabolite is in the person's body except if the person possesses a valid prescription for the drug.

B. The officer shall make the certified report required by subsection A of this section on forms supplied or approved by the department. The report shall state information that is relevant to the enforcement action, including:

1. Information that adequately identifies the arrested person.

2. A statement of the officer's grounds for belief that the person was driving or in actual physical control of a motor vehicle in violation of section 4-244, paragraph 34, section 28-1381, section 28-1382 or section 28-1383 or committed a violation of title 13, chapter 11 or section 13-1201 or 13-1204 involving a motor vehicle.

3. A statement that the person was arrested for a violation of section 4-244, paragraph 34, section 28-1381, section 28-1382 or section 28-1383 or for a violation of title 13, chapter 11 or section 13-1201 or 13-1204 involving a motor vehicle.

4. A report of the results of the blood or breath alcohol test that was administered, if the results are available.

C. The law enforcement officer directing the administration of the test shall:

1. File a certified report that is required by subsection A of this section with the department within thirty days after the date of the arrest. If a certified report is not forwarded to the department as prescribed by this paragraph, the department may not enter an order of suspension on its records unless the violation listed in subsection A of this section resulted in death or serious physical injury as defined in section 13-105.

2. On behalf of the department, do one of the following:

(a) Serve an order of suspension on the person that is effective thirty days after the date that the order is served.

(b) Advise the person that the certified report will be submitted to the department and that the department will notify the person in writing if an order of suspension is entered. The law enforcement officer shall direct the person to ensure the person's address is updated with the department pursuant to section 28-448.

D. If the officer serves an order of suspension on the person the order of suspension:

1. Is effective thirty days after the date it is served.

2. Shall require the immediate surrender of any license or permit to drive that is issued by this state and that is in the possession or control of the person.

3. Shall contain information concerning the right to a summary review and hearing, including information concerning the hearing as required by section 28-1321, subsections G and H.

4. Shall be accompanied by printed forms that are ready to mail to the department, that the person may fill out and sign to indicate the person's desire for a hearing or summary review and that advise the person that the person may alternatively submit an online request for a hearing or summary review.

5. Shall be entered on the department's records on receipt of the report by the officer and a copy of the order of suspension.

6. Shall inform the person that the person's driving privilege, license, permit, right to apply for a license or permit or nonresident operating privilege may be issued or reinstated following the period of suspension or issuance of a special ignition interlock restricted driver license only if the person completes alcohol or other drug screening.

7. Shall contain information on alcohol or other drug education and treatment programs that are provided by a facility approved by the department of health services.

E. If the blood test result is unavailable at the time the test is administered, the result shall be forwarded to the department before the hearing held pursuant to this section in a form prescribed by the director.

F. If the license or permit is not surrendered pursuant to subsection D of this section, the officer shall state the reason for the nonsurrender. If a valid license or permit is surrendered, the officer shall issue a temporary driving permit that is valid for thirty days. The officer shall forward a copy of the completed order of suspension and a copy of any completed temporary permit to the department within thirty days after the issuance of the order of suspension along with the report. The law enforcement agency may do either of the following with a valid license or permit that is surrendered pursuant to this section:

1. In compliance with sections 41-151.15 and 41-151.19, destroy the license or permit.

2. Forward the license or permit to the department within thirty days after the issuance of the notice of suspension.

G. On receipt of the certified report, the department shall enter an order of suspension on its records. The department shall mail a written notification to the person who is named in the certified report. The notification shall:

1. Include information on alcohol or other drug education and treatment programs that are provided by a facility approved by the department of health services.

2. Disclose all of the following:

(a) Thirty days after the date of issuance of the notice, the department will suspend the person's driving privilege or nonresident operating privilege.

(b) The person may submit a written or online request for a hearing or summary review.

(c) The request for a hearing or summary review must be received by the department within thirty days after the date of the notice or the order of suspension becomes final.

(d) The person's driving privilege or right to apply for a driving privilege or the person's nonresident operating privilege will be suspended as prescribed in subsections H and I of this section.

(e) The person's driving privilege or right to apply for a driving privilege or the person's nonresident operating privilege may be issued or reinstated following the period of suspension only if the person completes alcohol or other drug screening.

(f) The person may apply for a special ignition interlock restricted driver license pursuant to subsections J and K of this section.

H. The department shall suspend the affected person's license or permit to drive or right to apply for a license or permit or any nonresident operating privilege for not less than ninety consecutive days from that date. If the person is otherwise qualified, the department may reinstate the person's driving privilege, license, permit, right to apply for a license or permit or nonresident operating privilege following the period of suspension only if the violator completes alcohol or other drug screening.

I. Notwithstanding subsections A, B, C, D, E, F, G and H of this section and except as provided in subsection J of this section, the department shall suspend the driving privileges of the person described in subsection A of this section for at least thirty consecutive days and shall restrict the person's driving privileges as prescribed in section 28-144 for at least sixty consecutive additional days if the person:

1. Did not cause death or serious physical injury as defined in section 13-105 to another person during the course of conduct out of which the current action arose.

2. Has not been convicted of a violation of section 4-244, paragraph 34, section 28-1381, section 28-1382 or section 28-1383 within eighty-four months after the date of commission of the acts out of which the current action arose. The dates of commission of the acts are the determining factor in applying the eighty-four month provision.

3. Provides satisfactory evidence to the department of the person's completion of alcohol or other drug screening that is ordered by the department. If the person does not complete alcohol or other drug screening, the department may impose a ninety day suspension pursuant to this section.

J. In lieu of a driving privilege suspension pursuant to subsection I of this section, on a person's request, the department shall issue a special ignition interlock restricted driver license to the person if the requirements set forth in subsection I, paragraphs 1, 2 and 3 of this section are met.

K. Notwithstanding section 28-1401, the department may issue a special ignition interlock restricted driver license to a person for an offense described in subsection A of this section. A person who applies for and who is issued a special ignition interlock restricted driver license pursuant to this subsection agrees to the administrative action taken by the department against the person's license. Once the department issues a special ignition interlock restricted driver license pursuant to this subsection, the person waives any right to an administrative hearing contesting the administrative action against the person's license pursuant to this section or section 28-1321.

L. A timely request for a hearing stays the suspension until a hearing is held, except that the department shall not return any surrendered license or permit to the person but may issue temporary permits to drive that expire not later than when the department has made its final decision. If the person is a resident without a license or permit or has an expired license or permit, the department may allow the person to apply for a restricted license or permit. If the department determines the person is otherwise entitled to the restricted license or permit, the department shall issue, but retain, the license or permit, subject to this section. All hearings requested under this section shall be conducted in the same manner and under the same conditions as provided in section 28-3306.

M. For the purposes of this section, the scope of the hearing shall include only the following issues:

1. Whether the officer had reasonable grounds to believe the person was driving or was in actual physical control of a motor vehicle while under the influence of intoxicating liquor as prescribed in section 28-1381 or drugs.

2. Whether the person was placed under arrest for a violation of section 4-244, paragraph 34, section 28-1381, section 28-1382 or section 28-1383 or for a violation of title 13, chapter 11 or section 13-1201 or 13-1204 involving a motor vehicle.

3. Whether a test was taken, the results of which indicated any of the following:

(a) An alcohol concentration in the person's blood or breath at the time the test was administered of either:

(i) 0.08 or more.

(ii) 0.04 or more if the person was driving or in actual physical control of a commercial motor vehicle.

(iii) 0.04 or more if the person was driving or in actual physical control of a vehicle for hire as defined in section 28-9501 or while providing transportation network services as defined in section 28-9551 as a transportation network company driver as defined in section 28-9551.

(b) Any drug defined in section 13-3401 or its metabolite in the person's body except if the person possesses a valid prescription for the drug.

4. Whether the testing method used was valid and reliable.

5. Whether the test results were accurately evaluated.

N. The results of the blood or breath alcohol test shall be admitted on establishing the requirements in section 28-1323 or 28-1326.

O. If the department determines at the hearing to suspend the affected person's privilege to operate a motor vehicle, the suspension provided in this section is effective thirty days after giving written notice of the suspension, except that the department may issue or extend a temporary license that expires on the effective date of the suspension. If the person is a resident without a license or permit or has an expired license or permit to operate a motor vehicle in this state, the department shall deny the issuance of a license or permit to the person for not less than ninety consecutive days. The department may reinstate the person's driving privilege, license, permit, right to apply for a license or permit or nonresident operating privilege following the period of suspension only if the violator completes alcohol or other drug screening.

P. A person may request a summary review of an order issued pursuant to this section instead of a hearing at any time before the effective date of the order. A timely request for summary review stays the suspension until a decision is issued. The person shall submit the request in writing to the department together with any written explanation as to why the department should not suspend the driving privilege. The department shall review all reports submitted by the officer and any written explanation submitted by the person and shall determine if the order of suspension should be sustained or voided. The department shall not hold a hearing, and the review is not subject to title 41, chapter 6. The department shall notify the person of its decision.

Q. If the suspension or determination that there should be a denial of issuance is not sustained after a hearing or review, the ruling is not admissible in and does not have any effect on any civil or criminal court proceeding.

R. If it has been determined under the procedures of this section that a nonresident's privilege to operate a motor vehicle in this state has been suspended, the department shall give information either in writing or by electronic means of the action taken to the motor vehicle administrator of the state of the person's residence and of any state in which the person has a license.

§ 28-1386 Operating a motor vehicle, aircraft, watercraft or water skis under the influence; emergency response costs; definitions

A. A person who is under the influence of intoxicating liquor, any drug, a vapor releasing substance containing a toxic substance or any combination of liquor, drugs or vapor releasing substances, who causes an accident that results in an appropriate emergency response and who is convicted of a violation of any of the following sections is liable for the expenses of that emergency response:

1. Section 28-1381, 28-1382 or 28-1383.

2. Section 28-8279, section 28-8280 or section 28-8282, subsection C.

3. Section 5-395 or 5-397.

B. The expenses of an emergency response are a charge against the person liable for those expenses pursuant to subsection A, paragraph 1 of this section. The charge is a debt of that person. The public agency, for-profit entity or not-for-profit entity that incurred the expenses may collect the debt proportionally. The person's liability for the expenses of an emergency response shall not exceed one thousand dollars for a single accident. The liability imposed under this section is in addition to and not in limitation of any other liability that may be imposed.

C. Any testimony, admission or other statement made by a defendant in a proceeding brought pursuant to this section or any evidence derived from the testimony, admission or statement is not admissible in a criminal proceeding arising out of the same accident.

D. As used in this section:

1. "Expenses of an emergency response" means reasonable costs directly incurred by a public agency, for-profit entity or not-for-profit entity that makes an appropriate emergency response to an accident, including the costs of providing police, fire fighting, rescue and emergency medical services at the scene of an accident and the salaries of the persons who respond to the accident but excluding charges assessed by an ambulance service that is regulated pursuant to title 36, chapter 21.1, article 2.

2. "Public agency" means this state and any city, county, municipal corporation, district or other public authority that is located in whole or in part in this state and that provides police, fire fighting, medical or other emergency services.

§ 28-1387 Prior convictions; alcohol or other drug screening, education and treatment; license suspension; supervised probation; civil liability; procedures

A. The court shall allow the allegation of a prior conviction or any other pending charge of a violation of section 28-1381, 28-1382 or 28-1383 or an act in another jurisdiction that if committed in this state would be a violation of section 28-1381, 28-1382 or 28-1383 filed twenty or more days before the date the case is actually tried and may allow the allegation of a prior conviction or any other pending charge of a violation of section 28-1381, 28-1382 or 28-1383 or an act in another jurisdiction that if committed in this state would be a violation of section 28-1381, 28-1382 or 28-1383 filed at any time before the date the case is actually tried if this state makes available to the defendant when the allegation is filed a copy of any information obtained concerning the prior conviction or other pending charge. Any conviction may be used to enhance another conviction irrespective of the dates on which the offenses occurred within the eighty-four month provision. For the purposes of this article, an order of a juvenile court adjudicating a person delinquent is equivalent to a conviction.

B. In addition to any other penalties prescribed by law, the judge shall order a person who is convicted of a violation of section 28-1381, 28-1382 or 28-1383 to complete alcohol or other drug screening that is provided by a facility approved by the department of health services, the United States department of veterans affairs or a probation department. If a judge determines that the person requires further alcohol or other drug education or treatment, the person may be required pursuant to court order to obtain alcohol or other drug education or treatment under the court's supervision from an approved facility. The judge may review an education or treatment determination at the request of the state, the defendant or the probation officer or on the judge's initiative. The person shall pay the costs of the screening, education or treatment unless, after considering the person's ability to pay all or part of the costs, the court waives all or part of the costs. If a person is referred to a screening, education or treatment facility, the facility shall report to the court whether the person has successfully completed the screening, education or treatment program. The court may accept evidence of a person's completion of alcohol or other drug screening pursuant to section 28-1445 as sufficient to meet the requirements of this section or section 28-1381, 28-1382 or 28-1383 or may order the person to complete additional alcohol or other drug screening, education or treatment programs. If a person has previously been ordered to complete an alcohol or other drug screening, education or treatment program pursuant to this section, the judge shall order the person to complete an alcohol or other drug screening, education or treatment program unless the court determines that alternative sanctions are more appropriate.

C. After a person who is sentenced pursuant to section 28-1381, subsection I has served twenty-four consecutive hours in jail or after a person who is sentenced pursuant to section 28-1381, subsection K or section 28-1382, subsection D or E has served forty-eight consecutive hours in jail and after the court receives confirmation that the person is employed or is a student, the court shall provide in the sentence that the defendant, if the defendant is employed or is a student and can continue the defendant's employment or schooling, may continue the employment or schooling for not more than twelve hours a day nor more than six days a week, unless the court finds good cause to not allow the release and places those findings on the record. The person shall spend the remaining day, days or parts of days in jail until the sentence is served and shall be allowed out of jail only long enough to complete the actual hours of employment or schooling.

D. Unless the license of a person convicted under section 28-1381 or 28-1382 has been or is suspended pursuant to section 28-1321 or 28-1385, the department on receipt of the abstract of conviction of a violation of section 28-1381 or 28-1382 shall suspend the license of the affected person for not less than ninety consecutive days.

E. When the department receives notification that the person meets the criteria provided in section 28-1385, subsection I, the department shall suspend the driving privileges of the person for not less than thirty consecutive days and shall restrict the person's driving privileges as described in section 28-144 for not less than sixty consecutive additional days.

F. If a person is placed on probation for violating section 28-1381 or 28-1382, the probation shall be supervised unless the court finds that supervised probation is not necessary or the court does not have supervisory probation services.

G. Any political subdivision processing or using the services of a person ordered to perform community restitution pursuant to section 28-1381 or 28-1382 does not incur any civil liability to the person ordered to perform community restitution as a result of these activities unless the political subdivision or its agent or employee acts with gross negligence.

H. The court may order alternative sanctions to community restitution that is ordered pursuant to section 28-1381, subsection K or section 28-1382, subsection E if the court determines that education, treatment or other alternative sanctions are more appropriate.

§ 28-1388 Blood and breath tests; violation; classification; admissible evidence

A. If blood is drawn under section 28-1321, only a physician, a registered nurse or another qualified person may withdraw blood for the purpose of determining the alcohol concentration or drug content in the blood. The qualifications of the individual withdrawing the blood and the method used to withdraw the blood are not foundational prerequisites for the admissibility of a blood alcohol content determination made pursuant to this subsection.

B. If a law enforcement officer administers a duplicate breath test and the person tested is given a reasonable opportunity to arrange for an additional test pursuant to subsection C of this section, a sample of the person's breath does not have to be collected or preserved.

C. The person tested shall be given a reasonable opportunity to arrange for any physician, registered nurse or other qualified person of the person's own choosing to administer a test or tests in addition to any administered at the direction of a law enforcement officer. The failure or inability to obtain an additional test by a person does not preclude the admission of evidence relating to the test or tests taken at the direction of a law enforcement officer.

D. If a person under arrest refuses to submit to a test or tests under section 28-1321, whether or not a sample was collected pursuant to subsection E of this section or a search warrant, evidence of refusal is admissible in any civil or criminal action or other proceeding. The issue of refusal is an issue of fact to be determined by the trier of fact in all cases.

E. Notwithstanding any other law, if a law enforcement officer has probable cause to believe that a person has violated section 28-1381 and a sample of blood, urine or other bodily substance is taken from that person for any reason, a portion of that sample sufficient for analysis shall be provided to a law enforcement officer if requested for law enforcement purposes. A person who fails to comply with this subsection is guilty of a class 1 misdemeanor.

F. A person who collects blood, urine or any other bodily substance under this section or any hospital, laboratory or clinic employing or using the services of the person does not incur any civil liability as a result of this activity if requested by a law enforcement officer to collect blood, urine or other bodily substances unless the person, while performing the activity, acts with gross negligence.

G. A statement by the defendant that the defendant was driving a vehicle that was involved in an accident resulting in injury to or death of any person is admissible in any criminal proceeding without further proof of corpus delicti if it is otherwise admissible.

§ 28-1389 Waiver of fine, surcharge or assessment

The court shall not waive a fine or assessment imposed pursuant to this article or a surcharge imposed pursuant to section 12-116.01 or 12-116.02 for a conviction of an offense listed in this article.

§ 28-1390 Emergency personnel; law enforcement

A. Notwithstanding any other law, if a law enforcement officer reasonably believes that a person may have violated section 28-1381, 28-1382 or 28-1383, the law enforcement officer may request emergency department personnel of a health care institution as defined in section 36-401 to provide to the law enforcement officer a copy of any written or electronic report of the person’s blood alcohol concentration.

B. Before requesting the information required by subsection A of this section, a law enforcement officer shall obtain permission from the emergency department director or the director’s designee to speak with the personnel. The permission shall not be refused, but may be delayed if, in the opinion of the emergency department director or the director’s designee, taking the personnel away from patient care duties could cause patient harm.

C. If a law enforcement officer makes a request of emergency department personnel pursuant to subsection A of this section, the personnel shall comply with the request. Emergency department personnel are not required to determine whether a law enforcement officer has a reasonable belief that a person may have violated section 28-1381, 28-1382 or 28-1383 when complying with the request in subsection A of this section.

D. Emergency department personnel do not incur any civil liability as a result of complying with this section unless the personnel, while performing the activity, act with gross negligence.

Article 3.1 Special Ignition Interlock Restricted Driver Licenses

§ 28-1401 Special ignition interlock restricted driver licenses; application fee

A. A person whose class D or class G license has been suspended pursuant to section 28-1385 or suspended or revoked for a first refusal pursuant to section 28-1321, a second violation of section 28-1381 or 28-1382 or a first violation of section 28-1383, subsection A, paragraph 3 may apply to the department for a special ignition interlock restricted driver license that allows the person to operate a motor vehicle during the period of suspension or revocation subject to the restrictions of the certified ignition interlock device requirements prescribed in article 5 of this chapter if the person's privilege to operate a motor vehicle has been restricted, suspended or revoked and the offense involved only alcohol or, if the person's alcohol concentration is 0.08 or more, a combination of drugs and alcohol pursuant to any of the following:

1. Section 28-1321, if the person meets the criteria of section 28-1321, subsection P.

2. Section 28-1381, if the person meets the criteria of section 28-1381, subsection O and the person presents evidence that is satisfactory to the director and that shows that the person has completed the requirements prescribed in section 28-1387, subsection B.

3. Section 28-1382, if the person meets the criteria of section 28-1382, subsection H and the person presents evidence that is satisfactory to the director and that shows that the person has completed the requirements prescribed in section 28-1387, subsection B.

4. Section 28-1383, if the person meets the criteria of section 28-1383, subsection L and the person presents evidence that is satisfactory to the director and that shows that the person has completed the requirements prescribed in section 28-1387, subsection B.

5. Section 28-1385, if the person meets the criteria of section 28-1385, subsection I.

B. An applicant for a special ignition interlock restricted driver license shall pay an application fee in an amount to be determined by the director.

C. The department shall issue a special ignition interlock restricted driver license during the period of a court-ordered restriction pursuant to sections 28-3320 and 28-3322 subject to the certified ignition interlock requirements prescribed in article 5 of this chapter.

D. If the department issues a special ignition interlock restricted driver license, the department shall not delete a suspension or revocation from its records.

§ 28-1402 Issuance of special ignition interlock restricted driver license

A. On application pursuant to section 28-1401, subsection A the department may, and pursuant to section 28-1401, subsection C the department shall, issue a special ignition interlock restricted driver license that only allows a person whose class D or class G license has been suspended pursuant to section 28-1385 or suspended or revoked for a first refusal pursuant to section 28-1321, a second violation of section 28-1381 or 28-1382 or a first violation of section 28-1383, subsection A, paragraph 3 to operate a motor vehicle that is equipped with a functioning certified ignition interlock device.

B. The department may only issue a special ignition interlock restricted driver license to an applicant who is otherwise qualified by law.

C. Except as provided in section 28-1463, if the department suspends, revokes, cancels or otherwise rescinds a person's special ignition interlock restricted license or privilege for any reason, the department shall not issue a new license or reinstate the special ignition interlock restricted driver license during the prescribed period of suspension or revocation or while the person is otherwise ineligible to receive a license.

§ 28-1403 Extension of interlock restricted licenses; hearing; scope

A. A person whose driver license restriction is extended pursuant to section 28-1461 may submit to the department a written request for a hearing. The written request must be received by the department within fifteen days after the date of the order of extension of the restriction. On receipt of a request for a hearing, a hearing shall be held within thirty days.

B. Hearings requested pursuant to this section shall be conducted in the same manner and under the same conditions as provided in section 28-3306. For the purposes of this section, the scope of the hearing shall include only the following issues:

1. Whether the person was issued a special ignition interlock restricted driver license.

2. Whether the person tampered with the certified ignition interlock device.

3. Whether the person attempted to operate the vehicle with an alcohol concentration exceeding the presumptive limit as prescribed in section 28-1381, subsection G, paragraph 3, two or more times during the period of license restriction or limitation.

4. If the person is under twenty-one years of age, whether the person attempted to operate the vehicle with any spirituous liquor in the person's body during the period of license restriction or limitation.

5. Whether the person submitted proof of compliance or calibration as prescribed in section 28-1461.

Article 4 Judicial and Administrative Provisions

§ 28-1441 Driving under the influence; records

A. The court shall maintain and make accessible to the general public all records regarding the disposition of cases in which a person is charged with a violation of section 28-1381, 28-1382 or 28-1383. The court shall include in these records an explanation of its reasons for accepting any plea agreement or dismissing any charge of a violation of section 28-1381, 28-1382 or 28-1383.

B. As determined to be necessary by the director, the department shall maintain and make accessible to ignition interlock service providers limited motor vehicle and driver records information for the purpose of determining the eligibility of a person requesting installation of a certified ignition interlock device. The department shall not charge a fee for providing this information to the ignition interlock service provider.

§ 28-1442 Driving under the influence; records; reporting

A. The administrative office of the courts shall report to the governor's office of highway safety by September 1 of each year for the previous fiscal year:

1. The number of complaints issued charging a violation that include both sections 28-1381 and 28-1382.

2. The number of complaints issued charging a violation that include either section 28-1381 or 28-1382.

B. By September 1 of each year the motor vehicle division shall report to the governor’s office of highway safety the number of ignition interlock devices ordered to be installed pursuant to sections 28-1381, 28-1382 and 28-1383 for the previous fiscal year.

C. By September 1 of each year the motor vehicle division shall report to the governor's office of highway safety the number of ignition interlock devices that are currently in use in this state pursuant to an order to be installed pursuant to sections 28-1381, 28-1382 and 28-1383.

D. By October 1 of each year the governor’s office of highway safety shall report the information collected for the previous fiscal year pursuant to subsections A, B and C of this section to the president of the senate and the speaker of the house of representatives.

§ 28-1443 Minimum or medium security facility

A. A city, town or county may establish a minimum or medium security facility for the confinement of persons convicted of a violation of section 28-1381, 28-1382 or 28-1383.

B. A judge may order a person sentenced pursuant to section 28-1381, 28-1382 or 28-1383 to serve the person's sentence in a minimum or medium security facility if one has been established.

C. The state department of corrections may enter into an agreement with a county, city or town pursuant to title 11, chapter 7, article 3 for the incarceration in a minimum or medium security facility of persons sentenced pursuant to section 28-1381, 28-1382 or 28-1383.

§ 28-1444 Reimbursement of incarceration costs

A. The court shall order a person who is sentenced to a term of incarceration for a violation of this chapter to reimburse the political subdivision that is responsible for the costs of the person's incarceration for those incarceration costs.

B. The court may determine the amount of incarceration costs to be paid based on the following factors:

1. The per diem per person cost of incarceration incurred by the political subdivision that incarcerates the person.

2. The person's ability to pay part or all of the incarceration costs.

§ 28-1445 Alcohol or other drug screening; license suspension

A. The department of transportation shall order a person whose driving privilege, license, permit, right to apply for a license or permit or nonresident operating privilege is suspended pursuant to section 28-1385 to complete alcohol or other drug screening pursuant to this chapter. The alcohol or other drug screening shall be provided by a facility approved by the department of health services, the United States department of veterans affairs, an addiction counselor as defined in section 28-3005 or a probation department.

B. The department may accept evidence satisfactory to the department and in a manner prescribed by the department, after consulting with the administrative office of the courts, of a person's completion of alcohol or other drug screening ordered by the court pursuant to section 28-1381, 28-1382, 28-1383 or 28-1387 as sufficient to meet the alcohol or other drug screening requirements of section 28-1385 and this section or the department may order the person to complete additional alcohol or other drug screening.

C. A person who is ordered to complete alcohol or other drug screening is responsible for paying the costs of the screening.

D. The department shall issue a driver license or permit or reinstate a person's driving privilege only if the person provides satisfactory evidence to the department that the person has completed alcohol or other drug screening.

E. A person who provides an alcohol or other drug screening program shall electronically report the following to the department in a form prescribed by the department:

1. The completion of screening pursuant to this section.

2. The failure of a person to complete screening as ordered by the department pursuant to this section.

§ 28-1446 Calculating incarceration credit

A person who receives time served credit towards a mandatory term of incarceration for a violation of this chapter must serve at least eight consecutive hours for each day of credit.

Article 5 Ignition Interlock Devices

§ 28-1461 Use of certified ignition interlock devices; reporting

A. If a person's driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402:

1. The person shall:

(a) Pay the costs for installation and maintenance of the certified ignition interlock device.

(b) Provide proof to the department of installation of a functioning certified ignition interlock device in each motor vehicle operated by the person.

(c) Provide proof of compliance to the department at least once every ninety days during the period the person is ordered to use an ignition interlock device.

(d) Provide proof of calibration of the certified ignition interlock device to the department at least once every ninety days during the period the person is ordered to use an ignition interlock device.

2. The department shall not reinstate the person's driving privilege or issue a special ignition interlock restricted driver license until the person has installed a functioning certified ignition interlock device in each motor vehicle operated by the person and has provided proof of installation to the department.

B. While a person maintains a functioning certified ignition interlock device in a vehicle pursuant to this chapter, the ignition interlock manufacturer shall electronically provide the following information to the department in the manner and format prescribed by the department in rule, and the department shall reject any information that does not meet these requirements:

1. Any tampering or circumvention.

2. Any failure to provide proof of compliance or inspection of the certified ignition interlock device as prescribed in this section.

3. Any attempt to operate the vehicle with an alcohol concentration exceeding the presumptive limit as prescribed in section 28-1381, subsection G, paragraph 3 or, if the person is under twenty-one years of age, any attempt to operate the vehicle with any spirituous liquor in the person's body.

4. Each time that a person fails to properly perform any set of three consecutive rolling retests that occur during a drive cycle.

C. If the person is under eighteen years of age, the ignition interlock service provider, if requested by the person's parent or legal guardian, shall provide to the person's parent or legal guardian the information prescribed in subsection B of this section.

D. On request, the ignition interlock manufacturer shall provide the information prescribed in subsection B of this section to:

1. The department of health services authorized provider.

2. The probation department that is providing alcohol or other drug screening, education or treatment to the person.

3. The physician, psychologist, physician assistant, registered nurse practitioner or addiction counselor who is evaluating the person's ability to safely operate a motor vehicle following a revocation of the person's driving privilege as prescribed in section 28-3315, subsection D.

4. The court.

E. The department shall extend an ignition interlock restricted or limited driver license and the certified ignition interlock device period for six months if the department has reasonable grounds to believe that any of the following applies:

1. The person tampered with or circumvented the certified ignition interlock device.

2. The person attempted to operate the vehicle with an alcohol concentration exceeding the presumptive limit as prescribed in section 28-1381, subsection G, paragraph 3, two or more times during the period of license restriction or limitation.

3. If the person is under twenty-one years of age, the person attempted to operate the vehicle with any spirituous liquor in the person's body during the period of license restriction or limitation.

4. The person failed to provide proof of compliance or inspection as prescribed in this section.

5. The person attempts to operate the vehicle with an alcohol concentration of 0.08 or more during a six month extension pursuant to this subsection.

6. The person fails to properly perform any set of three consecutive rolling retests that occur during a drive cycle.

F. If the special ignition interlock restricted license is extended pursuant to subsection E of this section, the limitations prescribed in sections 28-1381, 28-1382, 28-1383 and 28-3319 do not begin until the restrictive period of the license ends.

G. The department shall make a notation on the driving record of a person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383, 28-1385 or 28-3319 or restricted pursuant to section 28-1402 that states that the person shall not operate a motor vehicle unless it is equipped with a certified ignition interlock device. Unless the person is convicted of a second or subsequent violation of section 28-1381, 28-1382 or 28-1383, the notation may not include any mark, color change or other notation or indication on the person's physical driver license.

H. Proof of compliance does not include a skipped or missed random sample if the motor vehicle's ignition is off at the time of the skipped or missed sample.

§ 28-1462 Ignition interlock device certification and decertification; service provider bonds

A. After consulting with the director of the department of public safety, the assistant director for the motor vehicle division of the department of transportation shall:

1. Certify ignition interlock devices.

2. Publish a list of certified ignition interlock devices that includes information about the manufacturers of the devices and where the devices may be ordered.

3. Make the list available to the courts and probation departments without charge.

4. Establish standards and qualifications for technicians.

B. The assistant director shall adopt rules prescribing the requirements for certification and decertification of an ignition interlock device. These rules shall include:

1. The procedure for certification of ignition interlock devices.

2. Provisions to ensure the reliability of the ignition interlock device over the range of motor vehicle environments.

3. Provisions to ensure that the ignition interlock device works accurately in an unsupervised environment.

4. The procedure for decertification of an ignition interlock device for cause.

C. The assistant director shall not certify an ignition interlock device unless all of the following are satisfied:

1. The device requires a deep-lung breath sample or another accurate measure of the concentration by weight of alcohol in the breath.

2. The device is made by a manufacturer that is covered by product liability insurance in the amount of one million dollars per event and three million dollars in the aggregate.

3. The manufacturer of the device indemnifies this state against any liability that may result from the use of the device.

4. The device meets or exceeds the 2013 national highway traffic safety administration standards, including the ability to wirelessly transmit and receive information, take a digital image and include the global positioning system location of the device at the time of a requested test.

5. The device is repaired or modified only by the manufacturer of the device.

6. All of the device reporting that is required by sections 28-1461 and 28-1468 originates from the device manufacturer.

D. The assistant director may adopt, in whole or in part, the guidelines, rules, regulations, studies or independent laboratory tests performed and relied on by other states or agencies or commissions of other states in the certification or approval of ignition interlock devices.

E. Each ignition interlock service provider who installs a certified ignition interlock device shall submit to the department a bond in a form to be approved by the assistant director and in an amount of at least two hundred thousand dollars. The bond inures to the benefit of any person who is ordered or required to equip a motor vehicle with an ignition interlock device pursuant to article 3 of this chapter or section 28-3319 and who suffers a loss because of either of the following:

1. Insolvency or discontinuance of business of the ignition interlock service provider who installed the device.

2. Failure of the ignition interlock service provider or agent or subcontractor of the ignition interlock service provider to comply with any provision of a contract that is required pursuant to section 28-1468 or any rule adopted pursuant to this section.

F. The assistant director shall adopt a warning label design to be affixed to each certified ignition interlock device on installation. The label shall contain a warning that a person tampering with, circumventing or otherwise misusing the ignition interlock device is guilty of a class 1 misdemeanor.

G. After consultation with the director of the department of public safety, the assistant director may include information the assistant director deems necessary in the notice prescribed in section 28-3318 regarding certified ignition interlock devices.

H. An ignition interlock service provider shall collect a fee for each certified ignition interlock device that is installed by the provider in an amount that is determined by the director. The ignition interlock service provider shall remit the collected fees to the department on a monthly basis and in a manner established by the department. The department shall deposit the fees in the ignition interlock device fund established by section 28-1469.

§ 28-1463 Proof of compliance; suspension; hearings

A. If a person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402 does not submit proof of compliance to the department as prescribed in section 28-1461, the department shall suspend the person's driving privilege until proof of compliance is submitted to the department. Unless a different time period is specified pursuant to section 28-3319, subsection D, the department shall require use of the certified ignition interlock device for one year from the date the person submits proof of compliance as prescribed in section 28-1461. If a person does not request a hearing pursuant to subsection B of this section, the department shall immediately suspend the person's driver license.

B. A person whose driver license is suspended pursuant to this section may submit a written request for a hearing. The written request must be received by the department within fifteen days after the date of the order of suspension. On receipt of a request for a hearing, a hearing shall be held within thirty days.

C. A timely request for a hearing stays the suspension until a hearing is held, except that the department shall not return any surrendered driver license or permit to the person but may issue temporary permits to drive that expire no later than when the department has made its final decision.

D. Hearings requested pursuant to this section shall be conducted in the same manner and under the same conditions as provided in section 28-3306. For the purposes of this section, the scope of the hearing shall include only the following issues:

1. Whether the person was ordered or required to equip a motor vehicle with an ignition interlock device pursuant to article 3 or 3.1 of this chapter or section 28-3319.

2. Whether the person submitted proof of compliance or calibration pursuant to section 28-1461.

§ 28-1464 Ignition interlock devices; violations; classification; definition

A. Except in cases of a substantial emergency, a person shall not knowingly rent, lease or lend a motor vehicle to a person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402 unless the motor vehicle is equipped with a functioning certified ignition interlock device.

B. A person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402 and who rents, leases or borrows a motor vehicle from another person shall notify the person who rents, leases or lends the motor vehicle to the person that the person has specific requirements for the operation of the motor vehicle and the nature of the requirements.

C. During any period when a person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402 is required to operate only a motor vehicle that is equipped with a certified ignition interlock device, the person shall not request or permit any other person to breathe into the ignition interlock device or start a motor vehicle equipped with an ignition interlock device for the purpose of providing the person with an operable motor vehicle.

D. A person shall not breathe into an ignition interlock device or start a motor vehicle equipped with an ignition interlock device for the purpose of providing an operable motor vehicle to a person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402.

E. A person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402 shall not tamper with or circumvent the operation of an ignition interlock device.

F. A person who is not an ignition interlock service provider or an agent or subcontractor of an ignition interlock service provider and who is not a person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402 shall not tamper with or circumvent the operation of an ignition interlock device.

G. Except in cases of substantial emergency, a person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402 shall not operate a motor vehicle without a functioning certified ignition interlock device during the applicable time period.

H. If the ignition interlock device is removed from a vehicle by an ignition interlock service provider, the ignition interlock manufacturer shall electronically notify the department in a form prescribed by the department that the ignition interlock device has been removed from the vehicle.

I. If the person does not provide evidence to the department within seventy-two hours that the person has installed a functioning certified ignition interlock device in each vehicle operated by the person and has provided proof of installation to the department, the department shall suspend the special ignition interlock restricted driver license or privilege as prescribed in section 28-1463.

J. A person who is ordered by the court or required by the department pursuant to section 28-3319 to equip any motor vehicle the person operates with a certified ignition interlock device shall while under arrest submit to any test chosen by a law enforcement officer pursuant to section 28-1321, subsection A.

K. A person who violates this section is guilty of a class 1 misdemeanor. Additionally, if a person is convicted of violating subsection B, C, E or G of this section, the department shall extend the duration of the certified ignition interlock device requirement for not more than one year.

L. For the purposes of this section, "substantial emergency" means that a person other than the person whose driving privilege is limited pursuant to section 28-1381, 28-1382, 28-1383 or 28-3319 or restricted pursuant to section 28-1402 is not reasonably available to drive in response to an emergency.

§ 28-1465 Rulemaking; ignition interlock service providers and manufacturers; civil penalty

The director shall adopt rules pursuant to title 41, chapter 6 as the director deems necessary for the administration and enforcement of this article, including a rule that permits the director to impose a civil penalty against a manufacturer of a certified ignition interlock device or an ignition interlock service provider who fails to properly report ignition interlock data to the director in the manner prescribed by the director. Any monies collected from civil penalties imposed for a failure to report ignition interlock data shall be deposited in the driving under the influence abatement fund established by section 28-1304.

§ 28-1466 Display of certification; transfer prohibited

A certification issued pursuant to this article:

1. Shall be conspicuously displayed in the place of business for which it was obtained.

2. Is not transferable or subject to sale or reassignment.

§ 28-1467 Ignition interlock service provider contracts; cancellation; notice

If the director cancels an ignition interlock service provider's contract, the director shall notify each person with an ignition interlock device from the ignition interlock service provider that the person has thirty days to obtain another ignition interlock service provider.

§ 28-1468 Ignition interlock service provider application; denial; appeal; contract requirements; manufacturer reporting requirements; cease and desist order

A. An application for authorization of an ignition interlock service provider contract must be submitted to the director by the manufacturer in writing on a form prescribed and furnished by the director. The person shall include with the application all documents and fees prescribed by the director.

B. The application shall be verified and must contain:

1. The name and residence address of the applicant, the name and residence address of each partner if the applicant is a partnership or the name and residence address of each principal officer if the applicant is a corporation.

2. The applicant's principal place of business.

3. The location or planned location for each place of business at or from which the business is to be conducted.

4. Any other information the director requires.

C. The director may approve an application for authorization of a contract if the director determines that the requirements of this article are met.

D. The director may deny an application for authorization of a contract if any person included in the application has:

1. Made a misrepresentation or misstatement in the application to conceal a matter that would cause the application to be denied.

2. Been convicted of a class 1, 2, 3 or 4 felony or a crime of moral turpitude, breach of trust, fraud, theft or dishonesty in any jurisdiction or any foreign country within ten years before the date of the application.

3. Been convicted of any criminal act, other than a crime described in paragraph 2 of this subsection, in any jurisdiction or a foreign country within five years before the date of the application.

4. Been involved in any activity that the director determines to be inappropriate in relation to the authority granted.

E. The director may deny an application for authorization of an ignition interlock service provider contract under this article and, if denied, shall notify the applicant in writing of the denial within twenty days after the denial and of the grounds for the denial if the director determines that any of the following applies:

1. The applicant is not eligible for an ignition interlock service provider contract under this article.

2. The application is not made in good faith.

3. The application contains a material misrepresentation or misstatement.

4. The applicant has not met the requirements of this chapter.

F. An applicant whose application is denied may make a written request to the department for a hearing on the denial of the application within fifteen days after the notice of denial. If the applicant does not request a hearing within thirty days, the denial is final.

G. If the applicant requests a hearing, the director shall provide written or electronic notice to the applicant to appear at a hearing to show cause why the denial of the applicant's application should not be upheld. After consideration of the evidence presented at the hearing, the director shall issue a written decision and order.

H. If the application is denied, the applicant may appeal the decision pursuant to title 12, chapter 7, article 6.

I. If the director authorizes an ignition interlock service provider's application for a contract, the ignition interlock service provider's contract with the department must meet or exceed the requirements in this section, be for a term of at least three years and include all of the following provisions and requirements:

1. Require the ignition interlock service provider to maintain at least one service center in each county in this state.

2. Ignition interlock devices must be effectively and efficiently installed, calibrated and removed.

3. Ignition interlock devices must be serviced, inspected and monitored.

4. The ignition interlock manufacturer must electronically transmit reports to the department in a format that is determined by the department and that includes any of the following:

(a) Driver activity.

(b) Bypass approval.

(c) Compliance.

(d) Client violations.

(e) Unique identifying numbers for each device.

(f) Unique employee numbers identifying the person who installed or removed an ignition interlock device.

5. A detailed implementation plan that outlines the steps and the time frames necessary for the ignition interlock service provider to be fully operational.

6. The ignition interlock service provider must collect and remit all applicable fees and taxes to the appropriate government entity.

7. If the ignition interlock service provider is out of compliance, corrective actions that will be taken, including penalty provisions and liquidated damages.

8. The ignition interlock device must have security protections, including each device having the capability to record each event and provide visual evidence of any actual or attempted tampering, alteration, bypass or circumvention.

9. The ignition interlock service provider will process the transition and ensure that continuous monitoring occurs if an ignition interlock device client requires transition of services.

10. The ignition interlock service provider will self-certify, complete background checks and train technicians in compliance with the rules adopted by the department.

11. The ignition interlock service provider must ensure that each service center is adequately staffed and equipped to provide all ignition interlock device support services. Mobile service operations based at a service center are permitted, except that a tow truck may not be used for mobile service. A service center may not provide services for more than one ignition interlock service provider.

12. The ignition interlock service provider must train clients on how to use the ignition interlock device.

13. A transition plan that will ensure continuous monitoring is achieved if the ignition interlock service provider leaves this state.

14. Require the ignition interlock service provider to have and maintain insurance that is approved by the department.

15. A procedure for progressive discipline of an employee, agent or subcontractor of an ignition interlock service provider who fails to comply with the requirements of this chapter or of the ignition interlock service provider contract.

16. Require client information and financial records to be maintained at a commercial business location in this state that is not a residence and that has posted business hours where the department may access the records. On termination or expiration of the contract, the ignition interlock service provider must submit all client information to the department.

17. The ignition interlock service provider may not charge a client to replace a defective ignition interlock device.

18. The ignition interlock device must take a digital image identifying the client who is providing the breath sample and the digital image must include the date and time that the breath sample was provided.

19. The ignition interlock service provider must comply with all county and municipal zoning regulations for commercial businesses and provide a corresponding business license to the department.

20. The ignition interlock service provider must clearly post all client fees for the installation, removal and inspection of the certified ignition interlock device.

J. If the director has reasonable cause to believe that a person who is a party to an ignition interlock service provider contract pursuant to this article is violating any provision of this chapter, the director shall immediately issue and mail a cease and desist order to the person's last known address.

K. On receipt of the cease and desist order, the person shall immediately cease and desist, or cease and desist as provided in the contract between the department and the ignition interlock service provider, from further engaging in any activity that is not authorized pursuant to this chapter and that is specified in the cease and desist order.

L. On failure of the person to comply with the cease and desist order, the director may conduct a hearing pursuant to this section.

§ 28-1469 Ignition interlock device fund

A. The ignition interlock device fund is established consisting of monies deposited pursuant to section 28-1462, subsection H. The department shall administer the fund. Monies in the fund must be used by the department for administering this article, including compliance measures, audits and investigating complaints that are related to ignition interlock devices and ignition interlock service providers.

B. The monies in the fund are subject to legislative appropriation and are exempt from section 35-190 relating to lapsing of appropriations.

Chapter 5 Penalties and Procedures for Vehicle Violations

Article 1 Definitions

§ 28-1501 Definitions

In this chapter, unless the context otherwise requires:

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

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

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

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

5. "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.

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

Article 2 Penalties and Violations

§ 28-1521 Violation; civil penalty

A person who violates a provision of chapter 3 of this title or this chapter is subject to a civil penalty unless the statute defining the offense provides for a criminal classification.

§ 28-1522 Injuring or preventing operation of vehicle; classification; emergency exception

A. A person is guilty of a class 3 misdemeanor who:

1. Knowingly breaks, injures, tampers with or removes any part of a vehicle for any purpose against the will or without the consent of the owner of the vehicle.

2. In any other manner knowingly and maliciously interferes with or prevents the running or operation of the vehicle.

3. Without consent of the owner or person in charge of a vehicle, climbs into or on a vehicle with intent to commit any crime, malicious mischief or injury to the vehicle.

4. While a vehicle is stopped and unattended, knowingly either:

(a) Manipulates any levers, starting crank or other starting device, brakes or other mechanism of the vehicle.

(b) Sets the vehicle in motion.

B. Subsection A does not apply if any of the conduct described in subsection A is committed either:

1. In an emergency in furtherance of public safety or convenience.

2. By or under the direction of an officer in the performance of the officer's duty.

§ 28-1523 Transporting hazardous material; violation; classification

A person who violates any provision of chapter 3 or 4 of this title or this chapter while operating a motor vehicle transporting a hazardous material, substance or waste that requires placarding as prescribed by department rule is guilty of a class 2 misdemeanor unless the violation is classified by law as a class 1 misdemeanor or a felony.

§ 28-1524 Offense by person owning or controlling vehicle; classification

It is a class 2 misdemeanor for the owner, or any other person, employing or otherwise directing the driver of a vehicle to require or to knowingly permit the operation of the vehicle on a highway in any manner contrary to law.

§ 28-1525 Assessment; failure to pay fine

In addition to any fine, fee, penalty or assessment authorized by law, a person who is convicted in the superior court or a justice court for a violation of this title shall pay an assessment of one hundred twenty-five dollars if a warrant for failure to pay a fine, fee, penalty or assessment imposed as a result of the conviction is issued for the arrest of the defendant. The court shall transmit the assessed monies to the county treasurer for deposit in the county general fund. The assessment is not subject to any surcharge.

§ 28-1526 Point assessment

If a person violates chapter 3 or 4 of this title, the department may assess points against the person's driving record for only one violation if multiple violations result from the same action or course of conduct. For the purposes of this section, the department shall assess the number of points for the violation that the department determines has the highest number of points.

Article 3 Criminal Violations and Traffic Complaints

§ 28-1551 Parties to a crime

A. A person who commits, attempts to commit, conspires to commit or aids or abets in the commission of an act declared in chapter 3 or 4 of this title or this chapter to be a crime, whether individually, in connection with one or more other persons or as a principal, agent or accessory, is guilty of the offense.

B. A person who falsely, fraudulently, forcibly or wilfully induces, causes, coerces, requires, permits or directs another person to violate any provision of chapter 3 or 4 of this title or this chapter is guilty of the offense.

§ 28-1552 Jurisdiction of municipal and justice courts

A. Municipal courts and justice courts have concurrent jurisdiction over all civil and misdemeanor criminal violations of chapters 3, 4, 5, 7, 8, 9, 10, 11, 14 and 15 of this title and over class 2 and 3 misdemeanor criminal violations of chapter 25 of this title that are committed within their boundaries by persons eighteen years of age or older.

B. Municipal courts and justice courts have concurrent jurisdiction over civil traffic violations committed within their boundaries by persons under eighteen years of age if the presiding judge of the superior court in the county declined jurisdiction pursuant to section 8-202.

§ 28-1553 Hearing officers; civil traffic violations

A. Subject to funding by the governing body and within their jurisdictions, justice courts may appoint hearing officers to preside over civil traffic violation cases. The appointments are subject to the concurrence of the presiding judge of the superior court in the county in which the justice court is located.

B. A city or town may appoint hearing officers to preside over civil traffic violation cases. These appointments shall be made in a manner provided by ordinance of the city or town.

C. Hearing officers may hear and dispose of civil traffic violation cases under the supervision of the court. The judgment of the hearing officer constitutes the judgment of the court that may be appealed to the superior court pursuant to title 22, chapter 2, article 4.

§ 28-1554 Disposition of fees, fines, forfeitures and civil penalties

A. All fees, fines, forfeitures and civil penalties imposed and collected by the municipal courts in the exercise of their concurrent jurisdiction shall be retained by and inure to the benefit of the city or town in which the municipal court is located.

B. All fees, fines, forfeitures and civil penalties imposed and collected by the justice court shall be retained by and inure to the benefit of the county in which the court is located.

§ 28-1555 Traffic violation charge; juveniles

A. A court shall not dispose of a moving traffic violation charge arising from the issuance of a traffic citation to a juvenile under eighteen years of age unless a parent or guardian of the juvenile appears in court with the juvenile at the time of the disposition of the charge.

B. If unusual circumstances prevent the appearance of the parent or guardian, the court may waive the appearance and shall send written notice to the parent or guardian, if known, advising the parent or guardian of the charge and its disposition.

§ 28-1556 Applicability of procedures; arrest without warrant

A. Sections 28-1524 and 28-1551 through 28-1554 govern all police officers in making arrests without a warrant for violations of chapters 3 and 4 of this title and this chapter. The procedure prescribed in this article is not exclusive of any other method prescribed by law for the arrest and prosecution of a person for an offense of like grade.

B. For a criminal offense alleged to have been committed in violation of this title and for which an officer is not authorized to arrest without a warrant, the officer may present the alleged violation before a magistrate in the same manner as any other misdemeanor and may proceed either under a warrant of arrest or a summons and notice to appear.

§ 28-1557 Traffic complaint form; use of social security number prohibited

A. Each traffic enforcement agency in this state shall use a uniform traffic ticket and complaint form for traffic complaints pursuant to the rules of procedure in traffic cases adopted by the supreme court of Arizona that is issued in books meeting the requirements of this article.

B. Each traffic complaint shall contain the following notice:

1. If you fail to appear as directed in this complaint on a criminal charge, a warrant will be issued for your arrest and your license will be suspended.

2. If you fail to appear as directed in this complaint on a civil traffic violation:

(a) A default judgment will be entered against you.

(b) A civil penalty will be imposed.

(c) Your license or nonresident operating privilege will be suspended until the civil penalty is paid.

C. The chief administrative officer of each traffic enforcement agency:

1. Is responsible for the issuance of the books.

2. Shall maintain a record of every book and each complaint contained in the book issued to individual members of the traffic enforcement agency.

3. Shall require and retain a receipt for each issued book.

D. A traffic complaint that is issued to an individual shall not contain a person's social security number. This subsection does not apply to copies of the traffic complaint that are retained by law enforcement and the courts.

§ 28-1558 Traffic complaints; disposition; records

A. On issuing a traffic complaint to an alleged violator of any provision of the motor vehicle laws of this state or of any traffic ordinance of any city or town, each traffic enforcement officer shall deposit the original or a copy of the traffic citation with a court having jurisdiction over the alleged offense or with its traffic violations bureau.

B. On the deposit of the original or a copy of the traffic complaint with a court having jurisdiction over the alleged offense or with its traffic violations bureau, the original or copy of the traffic complaint may be disposed of only by trial in the court or other official action by a judge of the court or a hearing officer, including forfeiture of the bail or by the deposit of sufficient bail with or payment of a fine or civil penalty to the traffic violations bureau by the person to whom the traffic complaint was issued.

C. It is unlawful and official misconduct for any traffic enforcement officer or other officer or public employee to dispose of a traffic complaint or copies of a traffic complaint or of the record of the issuance of the complaint or copies in a manner other than as required by this article.

D. The chief administrative officer of each traffic enforcement agency shall require the return to the chief administrative officer of:

1. A copy of each traffic complaint issued by an officer under the chief administrative officer's supervision to an alleged violator of any traffic law or ordinance.

2. All copies of each traffic complaint that is spoiled or on which any entry has been made and not issued to an alleged violator.

§ 28-1559 Traffic case records; abstract of record; reports

A. Each magistrate, judge or hearing officer of a court shall:

1. Keep or cause to be kept a record of each traffic complaint or other legal form of traffic charge deposited with or presented to the court or its traffic violations bureau.

2. Keep a record of each official action by the court or its traffic violations bureau in reference to each traffic complaint or other legal form of traffic charge deposited with or presented to the court or its traffic violations bureau, including but not limited to a record of:

(a) Each conviction, forfeiture of bail or deposit, judgment of acquittal or civil adjudication.

(b) The amount of the civil penalty, fine or forfeiture resulting from each traffic complaint deposited with or presented to the court or traffic violations bureau.

B. Within ten days after the conviction, judgment or forfeiture of bail or deposit of a person on a charge of violating chapter 3 or 4 of this title or this chapter or any other law regulating the operation of vehicles on highways, each magistrate of the court or clerk of the court of record in which the conviction or judgment was had or bail or deposit was forfeited shall prepare and immediately forward to the department an abstract of the record of the court covering the case in which the person either:

1. Was convicted.

2. Was adjudicated to have committed a civil traffic violation.

3. Forfeited bail or deposit.

C. The person required to prepare the abstract shall certify that it is true and correct.

D. A report is not required for a conviction or civil adjudication involving the illegal parking or standing of a vehicle.

E. The abstract shall be made on a form furnished or in a manner prescribed by the department and shall include:

1. The name and address of the party charged.

2. The number, if any, of the driver license of the party charged.

3. The registration number of the vehicle involved.

4. The nature of the offense or civil traffic violation.

5. The date of the hearing, the plea, the judgment or whether bail or deposit was forfeited.

6. The amount of the fine, civil penalty or forfeiture.

F. Each court of record shall also forward a like report to the department on the conviction of a person of homicide or aggravated assault resulting from the operation of a motor vehicle or any other felony in the commission of which a motor vehicle was used. To facilitate the preparation of the report, the sentencing minute entry that is issued by the court shall indicate if the person was convicted of an offense that required the mandatory revocation of a driver license pursuant to section 28-3304, subsection A, paragraph 1, 2, 3, 4 or 5.

G. The department shall keep all abstracts received under this section for inspection as required by law.

H. Each judge, referee, hearing officer, probation officer or other person responsible for the disposition of cases involving traffic offenses or civil violations committed by persons under eighteen years of age shall:

1. Keep a full record of each case in which the person is charged with a violation of chapter 3 or 4 of this title or this chapter or any other law regulating the operation of vehicles on highways.

2. Report the offense or civil violation to the department at its office in Phoenix not more than thirty days after the date of conviction or of finding of responsibility, except that a report is not required for parking violations or if it is found that the offense or civil violation was not committed.

I. The report required by subsection H of this section shall:

1. Be made on a form furnished or in a manner prescribed by the department.

2. Contain:

(a) All necessary information as to the identity of the offender.

(b) The citing or arresting agency.

(c) The date and nature of the offense or civil violation.

(d) The date of the hearing, the plea, the judgment or whether bail or deposit was forfeited.

(e) The amount of the fine, civil penalty or forfeiture.

J. Failure, refusal or neglect of a judicial officer to comply with this section is misconduct in office and grounds for removal from office.

K. Notwithstanding any other law, the department may not take administrative action against a person's driving privilege or a vehicle's registration if a judicial officer reports a conviction or finding of responsibility to the department more than five years after the date of conviction or finding of responsibility.

§ 28-1560 Illegal cancellation of traffic citation; classification; audit

A. A person who cancels any traffic citation, in any manner other than as provided in this article or the nonresident violator compact adopted by chapter 6, article 4 of this title, is guilty of a class 3 misdemeanor.

B. The appropriate fiscal officer of the governmental agency to which the traffic enforcement agency is responsible shall audit monthly the records of traffic citations required in this article. Audit procedures shall be sufficient to assure proper accountability for traffic citation records.

§ 28-1561 Certification of uniform traffic complaint forms; false certification

A. Uniform traffic complaint forms need not be sworn to if they contain a form of certification by the issuing officer in substance as follows: "I hereby certify that I have reasonable grounds to believe and do believe that the person named herein committed the offense or civil violation described herein contrary to law."

B. A false certification under the provisions of subsection A is perjury.

Article 4 Procedures for Civil Traffic Violations

§ 28-1591 Traffic violations; civil matters; service

A. A violation of a statute relating to traffic movement and control, including a statute governing parking or standing requirements, shall be treated as a civil matter as provided in chapter 3 of this title or this chapter, unless the statute provides for a different classification as a criminal offense.

B. This article does not require that either the initial notification or a subsequent summons and complaint for a parking or standing violation be issued or served as required by this article.

C. If it is necessary to issue a summons and complaint because there is not a satisfactory response to the initial notice of a parking or standing violation, the summons and complaint may be sent by regular mail to the address provided to the department by the individual made responsible for the alleged violation by the applicable statute or ordinance. Service of the summons and complaint is complete on mailing.

§ 28-1592 Commencement of action; original citation changes

A. A civil traffic violation case is commenced by issuance or filing of a uniform traffic ticket and complaint as provided in this article.

B. A civil traffic violation case shall be commenced as follows:

1. If a case is commenced by issuance, it shall be issued within sixty days after the alleged violation.

2. If the case is commenced by filing, it shall be filed within sixty days after the alleged violation and shall be served within ninety days after the filing date.

3. Except as provided in paragraph 4 of this subsection, within one hundred eighty days after the alleged violation if the alleged violation is under investigation in conjunction with a traffic accident.

4. Within one year after the alleged violation if the alleged violation is under investigation in conjunction with a traffic accident resulting in death.

C. On an original citation, if a peace officer or duly authorized traffic agent changes the date, time or location of the violation or the section of law that is allegedly violated, the original citation must be amended through the court pursuant to the Arizona rules of civil traffic and civil boating violations.

§ 28-1593 Service of uniform traffic ticket and complaint

A. A traffic complaint may be served by delivering a copy of the uniform traffic ticket and complaint to the person charged with the violation or by any means authorized by the Arizona rules of civil procedure. At the discretion of the issuing authority, a complaint for a violation issued after an investigation in conjunction with a traffic accident may be sent by certified mail, return receipt requested and delivered to addressee only, to the address provided by the person charged with the violation. Service of the complaint is complete on filing the receipt in the court having jurisdiction of the violation.

B. The original complaint shall be filed in a court having jurisdiction of the violation within ten court days of the time the complaint was issued. A peace officer, or duly authorized agent or someone paid to act on behalf of a traffic enforcement agency, may issue the traffic complaint.

§ 28-1594 Authority to detain persons

A peace officer or duly authorized agent of a traffic enforcement agency may stop and detain a person as is reasonably necessary to investigate an actual or suspected violation of this title and to serve a copy of the traffic complaint for an alleged civil or criminal violation of this title.

§ 28-1595 Failure to stop or provide driver license or evidence of identity; violation; classification

A. The operator of a motor vehicle who knowingly fails or refuses to bring the operator's motor vehicle to a stop after being given a visual or audible signal or instruction by a peace officer or duly authorized agent of a traffic enforcement agency is guilty of a class 2 misdemeanor.

B. After stopping as required by subsection A of this section, the operator of a motor vehicle who fails or refuses to exhibit the operator's driver license as required by section 28-3169 or a driver who is not licensed and who fails or refuses to provide evidence of the driver's identity on request is guilty of a class 2 misdemeanor. The evidence of identity that is presented shall contain all of the following information:

1. The driver's full name.

2. The driver's date of birth.

3. The driver's residence address.

4. A brief physical description of the driver, including the driver's sex, weight, height and eye and hair color.

5. The driver's signature.

C. A person other than the driver of a motor vehicle who fails or refuses to provide evidence of the person's identity to a peace officer or a duly authorized agent of a traffic enforcement agency on request, when such officer or agent has reasonable cause to believe the person has committed a violation of this title, is guilty of a class 2 misdemeanor.

D. A peace officer or duly authorized agent of a traffic enforcement agency may give the signal or instruction required by subsection A of this section by hand, emergency light, voice, whistle or siren.

E. A person shall not be convicted of a violation of subsection B of this section if the person provided evidence of identity required by subsection B, paragraphs 1 through 5 of this section and produces to the court a legible driver license or an authorized duplicate of the license that is issued to the person and that was valid at the time the violation of subsection B of this section occurred.

§ 28-1596 Traffic complaint; proceedings

A. A person served with a civil traffic complaint shall:

1. Appear at the time and place stated in the complaint, or may appear before the time, if so authorized by the court, and on the directions contained in the complaint.

2. Admit or deny the allegations of the complaint.

B. Allegations not denied at the time of appearance are deemed admitted. A fee shall not be charged for the appearance.

C. If the allegations are admitted, the court shall enter judgment for the state and shall impose a civil penalty. The person may admit the allegations with an explanation, and then the court shall enter judgment for the state and impose a civil penalty. In determining the civil penalty, the court shall consider the explanation submitted.

D. If the person denies the allegations of the complaint the court shall set the matter for a hearing. The hearing is informal and without a jury. At the hearing, the state is required to prove the violation charged by a preponderance of the evidence. Technical rules of evidence do not apply, except for statutory provisions relating to privileged communications. If the person elects to be represented by counsel the person shall notify the court at least ten days before the hearing date. Hearings may be recorded. If the court finds in favor of the person, the court shall enter an order dismissing the allegation. If the court finds in favor of the state, the court shall enter judgment for the state and shall impose a civil penalty.

E. If a resident of this state served with a civil traffic complaint alleging a violation of this title or if a nonresident served with a civil traffic complaint requiring suspension or revocation of a driver license under the laws of this state fails to appear at or before the time directed to appear or at the time set for a hearing by the court, the allegations in the complaint are deemed admitted, and the court shall enter judgment for this state, impose a civil penalty and report the judgment to the department.

F. A nonresident may satisfy the complaint served under subsection A by complying with the nonresident violator compact adopted by chapter 6, article 4 of this title, if applicable.

G. If a nonresident who is served with a civil traffic complaint that does not require a suspension or revocation of the nonresident's driver license pursuant to the laws of this state fails to appear at or before the time directed to appear or at the time set for a hearing by the court, the court shall report the nonappearance to the department pursuant to the provisions of the nonresident violator compact adopted by chapter 6, article 4 of this title.

§ 28-1597 Witnesses; nonapplicability of rules of civil procedure

A. The state and the person charged with a civil traffic violation may subpoena witnesses as provided by section 13-4072. Witnesses are not entitled to fees for appearing in connection with a civil violation proceeding.

B. Except as otherwise provided in chapter 3 of this title or this chapter, the rules of civil procedure do not apply.

§ 28-1598 Maximum civil penalty

Except as otherwise provided, a civil penalty imposed pursuant to this article shall not exceed two hundred fifty dollars. In addition, the court shall levy surcharges pursuant to sections 12-116.01 and 12-116.02.

§ 28-1599 Admission; evidence of negligence

An admission of the allegation of a civil traffic complaint or a judgment on the complaint is not evidence of negligence in a civil or criminal proceeding that is not authorized by chapter 3 of this title or this chapter.

§ 28-1600 Appeal

A. A party may appeal the judgment of the court. The appeal may be to the superior court in the same manner as provided by rules adopted by the supreme court.

B. The posting of an appeal bond stays enforcement of the judgment.

C. Commissioners of the superior court may hear and determine appeals.

§ 28-1601 Failure to pay civil penalty; suspension or restriction of driving privilege; collection procedure

A. A person shall pay all civil penalties within thirty days from entry of judgment, except that if payment within thirty days will place an undue economic burden on a person, the court may extend the time for payment or may provide for installment payments. If the civil penalty is not paid or an installment payment is not made when due, the court may declare the entire civil penalty, surcharge or assessment due.

B. Notwithstanding subsection A of this section, if a civil penalty is paid on entry of judgment, the court may reduce the civil penalty by up to five percent of the penalty imposed.

C. Notwithstanding subsection A of this section, the court shall not initiate collection procedures on an unpaid civil penalty or notify the department to refuse to renew a vehicle registration for an unpaid civil traffic violation if all of the following apply:

1. The unpaid civil penalty is for a traffic violation for which the final disposition occurs more than thirty-six months before the court initiates collection proceedings.

2. The court does not have a paper or electronic record dated within thirty-six months after the traffic violation occurs indicating that the responsible person was notified that the civil penalty is unpaid and due.

3. The court has not notified either the responsible person or the department about the court's request to the department to refuse to renew the responsible person's vehicle registration pursuant to article 5 of this chapter.

4. The court does not have a record of extending the time for payment of the civil penalty or providing for installment payments.

D. If the court is prohibited from initiating collection procedures on an unpaid civil penalty and from notifying the department to refuse to renew a vehicle registration, pursuant to subsection C of this section, the court shall notify the department and the department shall remove the violation from the person's driving record.

E. With the approval of the supreme court, the presiding judge of any court may periodically conduct a program aimed at reducing the amount of outstanding fines, penalties, assessments and surcharges. Notwithstanding any other law, except a fine ordered as a result of a violation of section 28-1381 or 28-1382, the program may include authorizing up to a fifty percent reduction in the total amount of a court ordered fine, penalty, assessment or surcharge that is due and that is delinquent for at least twelve months followed by an increased enforcement effort for a fine, penalty, assessment or surcharge that is not paid. The supreme court shall adopt rules of procedure for the programs.

F. If penalties are reduced pursuant to subsection E of this section, associated surcharges and assessments shall be reduced in proportion to the reduction. This subsection does not apply to section 12-116.

G. If a person presents reasonable evidence to the court that a civil penalty and any other fees, fines, assessments or surcharges required by the court have been paid, the court shall cease its collection activities for that civil penalty and order the department to immediately rescind its actions related to the court's order or request to refuse to renew the person's vehicle registration pursuant to article 5 of this chapter.

§ 28-1602 Photo enforcement violations; law enforcement review; violation; classification; service of process; no duty to identify photo or respond; definitions

A. Notwithstanding any other law, if a person receives a notice of violation in the mail for a violation of chapter 3, article 3 or 6 of this title or of a city or town ordinance for excessive speed or failure to obey a traffic control device that is obtained using a photo enforcement system, the person does not have to do either of the following:

1. Identify who is in the photo.

2. Respond to the notice of violation.

B. The notice of violation must state the following:

1. The notice is not a court issued document and the recipient is under no obligation to identify the person or respond to the notice.

2. Failure to respond to the notice may result in official service that may result in an additional fee being levied.

C. Before a citation is issued, a law enforcement agency must review evidence that is recorded by a photo enforcement system to determine whether a violation of chapter 3, article 3 or 6 of this title or of a city or town ordinance for excessive speed or failure to obey a traffic control device occurred.

D. A photo enforcement company may not determine whether a violation of chapter 3, article 3 or 6 of this title occurred for the purpose of the issuance of a citation. A violation of this subsection is a class 1 misdemeanor.

E. In addition to any other means authorized by the Arizona rules of civil procedure, alternative service of process must be sent by certified mail with an additional copy by regular mail and a notice must be posted on the front door of the business or residence and, if present and accessible, a residence's garage door. Service of the complaint is complete on filing the mailing receipt and proof of posting in the court having jurisdiction of the violation. Notwithstanding any other law, a person's driving privileges may not be suspended or revoked as a result of a citation that is served by alternative service of process under this subsection.

F. If a law enforcement agency issues a citation as a result of a photo enforcement system and serves the citation in a manner other than what is prescribed by section 28-1593, subsection A, the agency shall inform the person that there is no obligation to identify the driver or respond to the citation. Failure to respond to the citation will result in the probability that the person will be formally served pursuant to state law and the Arizona rules of civil procedure which will likely result in the person being required to pay the cost of the service.

G. For the purposes of this section:

1. "Notice of violation" means a notice issued by a photo enforcement company or municipality that is not a uniform traffic ticket and complaint.

2. "Photo enforcement system" has the same meaning prescribed in section 28-601.

§ 28-1603 Civil penalty mitigation or waiver

A. Notwithstanding any other law, a judge may mitigate or waive any civil penalty that is required under chapters 3, 5, 7, 8 and 9 of this title if the person who is ordered to pay the penalty demonstrates that the payment would be a hardship on the person or on the person's immediate family.

B. In determining whether to mitigate a civil penalty, the court may consider any relevant information, including any of the following:

1. The civil penalty's impact on the person's ability to pay restitution.

2. Whether the civil penalty would constitute a financial hardship to the person or the person's immediate family.

3. Whether the person receives temporary assistance for needy families pursuant to 42 United States Code section 603 or supplemental nutrition assistance pursuant to 7 United States Code sections 2011 through 2036c.

4. Whether the person receives benefits pursuant to the supplemental security income program (42 United States Code sections 1381 through 1383f).

5. Whether the person is legally authorized to be employed and is seeking, obtaining or maintaining employment or is attending school.

C. This section does not apply to the surcharge imposed and collected pursuant to section 16-954, subsection A.

§ 28-1604 Community restitution in lieu of monetary obligation; definition

A. Notwithstanding any other law, if a monetary obligation is imposed on a person at sentencing, on the person's request the court may order the person to perform community restitution in lieu of the payment of the monetary obligation. The court shall determine the location where the community restitution is performed. The court shall credit any community restitution performed at a rate that is equal to the minimum wage prescribed by section 23-363, subsections A and B, rounded up to the nearest dollar.

B. For the purposes of this section, "monetary obligation" means a civil penalty, a surcharge, an assessment or a fee except for a fee imposed pursuant to section 12-116.

Article 5 Traffic Ticket Enforcement Assistance Program

§ 28-1630 Definitions

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

1. "Monetary obligations" includes fines, fees, penalties, court costs, surcharges, restitution, assessments and penalty enhancements.

2. "Restitution" means restitution ordered pursuant to section 13-603, subsection C. Restitution does not include an amount ordered pursuant to section 13-804, subsection F.

§ 28-1631 Traffic ticket enforcement assistance program; establishment

A. The department shall establish procedures to:

1. Assist the courts and political subdivisions of this state to collect delinquent monetary obligations imposed for violations of title 5, chapter 3 and for civil and criminal traffic violations.

2. Assist in the enforcement of criminal traffic failure to appear offenses.

B. The program established by this article shall not include collection of delinquent parking tickets.

§ 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. A registered owner of a vehicle is delinquent in paying a monetary obligation for a violation of title 5, chapter 3 or for a civil or criminal traffic violation.

2. A 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 send notice by first class mail to all registered owners of the vehicle listed on the department's records that the court or political subdivision is notifying the department to refuse to renew the vehicle registration due to a registered owner's delinquency in paying a monetary fine or failure to appear pursuant to subsection A of this section.

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 all registered owners that the vehicle registration will not be renewed. The department shall deposit, pursuant to sections 35-146 and 35-147, these fees in the state highway fund established by section 28-6991.

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.

§ 28-1633 Contracts

A. A court or political subdivision of this state may contract with the department to:

1. Provide electronic data access of department records to facilitate documentation of unpaid monetary obligations for violations of title 5, chapter 3 and for civil and criminal traffic violations and for failure to appear in criminal traffic cases.

2. Refuse to renew a motor vehicle registration until the court or political subdivision notifies the department in a form prescribed by the director that either:

(a) The unpaid monies due on the violation for which a vehicle registration was not renewed have been paid.

(b) The unpaid monies are no longer delinquent.

(c) The registered owner charged with the criminal traffic offense appeared in court for the criminal traffic offense for which the vehicle registration was not renewed.

(d) A waiver was issued under section 28-1635.

3. Collect the unpaid monies on behalf of the court or political subdivision under terms and conditions prescribed by the contract.

B. A court that is not authorized by law to contract directly with the department shall seek the approval of the appropriate funding authority before entering into a contract with the department.

C. The director shall implement the electronic access authorized by this section only if the director determines the system proposed by the court or political subdivision is fully compatible with the existing and anticipated systems of the department.

D. An agreement may be executed pursuant to this section only if all of the following conditions are met:

1. The planning, implementation and operation of the system are at no expense to the department.

2. The court or political subdivision both:

(a) Ensures that its system is compatible with state systems and those of participating courts or political subdivisions.

(b) Agrees that it will bear all current and future expenses necessary to ensure compatibility of its system with the state system.

3. The court or political subdivision assumes all financial, technical and legal risks associated with electronic access of department records through its system.

E. The department, court or political subdivision may contract with nongovernmental agencies or private sector businesses to perform any of the acts authorized by this section, except that the department shall mail the notice to all registered owners at the most recent address for each registered owner known to the department that the vehicle registration will not be renewed.

§ 28-1634 Registration allowed

A. The department shall allow registration of the vehicle if it receives the form prescribed by the director pursuant to section 28-1633 from the court or political subdivision that requested the department not to register the motor vehicle.

B. The department shall not refuse to register a vehicle under this article if there is a transfer of ownership of the vehicle involved to a bona fide purchaser. For purposes of this subsection, "bona fide purchaser" means a purchaser who buys a vehicle in good faith and without knowledge that the seller's right to renew the vehicle registration has been refused pursuant to this article.

§ 28-1635 Waiver

A. On proper application, the court may waive its right pursuant to this article to request the department to refuse to renew the vehicle registration of a registered owner who is delinquent in paying a fine or penalty for a violation subject to this article, if both:

1. Nonrenewal of the vehicle registration would pose an economic hardship on the registered owner or the registered owner's immediate family.

2. The failure to pay is not due to an intentional refusal to obey the order of the court or an intentional refusal to make a good faith effort to obtain the monies required for the payment.

B. Except for the person subject to the monetary obligation pursuant to this article, any person who is identified on the records of the department as an owner of a vehicle subject to refusal to renew a vehicle registration pursuant to this article may file a sworn petition in any court where a citation was issued that resulted in the request to refuse to renew a vehicle registration requesting the court waive the court’s right to refuse the vehicle registration renewal on at least one vehicle the person owns. If the person does not live within the jurisdiction of the court, the court shall not require the person to appear personally. The court may rule based upon the petition, or if the court wishes to hear oral argument and the person does not live within the jurisdiction of the court, the court shall permit the person to appear telephonically.

C. If the court determines the registered owner making the request is not the person responsible for the alleged violation or failure to appear that results in the court's notification to the department to refuse to renew the vehicle registration, the court may waive its right to request that the department refuse to renew a vehicle registration.

D. If the court grants a request pursuant to subsection C of this section, the court shall provide written documentation to the person making the request or may electronically notify the department that the department may issue a vehicle registration to the registered owner named in the document for the vehicle listed in the document.

§ 28-1636 Rules

A. The supreme court shall adopt rules or procedures necessary for the courts to carry out this article including the time periods during which persons who are responsible for payment of monetary obligations and are subject to this article shall pay all monetary obligations before a court or political subdivision may request the department to refuse to renew the registration of the person's vehicle.

B. In adopting rules or procedures prescribing the time periods during which persons who are subject to this article shall pay all monetary obligations, the supreme court shall consider the economic circumstances of registered owners.

Article 6 Traffic Violations by Diplomats

§ 28-1651 Applicability

A. This article applies to an individual who displays to a law enforcement officer a driver license issued by the United States department of state or who otherwise claims immunities or privileges under 22 United States Code sections 254a through 258a with respect to either of the following:

1. The individual's violation of section 13-1102, section 13-1103, section 13-1104, subsection A, paragraph 3 or section 13-1204, subsection A, paragraph 1 or 2 arising from an act that was committed while driving a motor vehicle.

2. A moving violation under this title or an ordinance or regulation of a local authority.

B. This article does not prohibit or limit the application of any law to a criminal or motor vehicle violation by an individual who has or claims immunities or privileges under 22 United States Code sections 254a through 258a.

§ 28-1652 Law enforcement officer duties

If a driver who is subject to this article is stopped by a law enforcement officer who has probable cause to believe that the driver has committed a violation described in this article, the law enforcement officer shall do all of the following:

1. As soon as practicable contact the United States department of state in order to verify the driver's status and immunity, if any.

2. Record all relevant information from any driver license or identification card, including a driver license or identification card issued by the United States department of state.

3. Within five working days after the date the officer stops the driver, forward all of the following to the department of public safety:

(a) If the driver is involved in a vehicle accident, the vehicle accident report.

(b) If a citation or other charging document was issued to the driver, a copy of the citation or other charging document.

(c) If a citation or other charging document was not issued to the driver, a written report of the incident.

§ 28-1653 Documents and records

The department of public safety shall:

1. File each vehicle accident report, citation or other charging document and incident report that the department of public safety receives pursuant to this article.

2. Keep convenient records or make suitable notations showing each:

(a) Conviction.

(b) Finding of responsibility.

(c) Vehicle accident.

§ 28-1654 Department of state

Within five working days after receipt, the department of public safety shall send a copy of each document and record described in section 28-1653 to the bureau of diplomatic security, office of foreign missions, of the United States department of state.

Chapter 6 Agreements and Compacts

Article 3 Driver License Compact

§ 28-1851 Definitions

In this article, unless the context otherwise requires:

1. "Executive head" means the governor of the state of Arizona.

2. "Licensing authority" means the department.

§ 28-1852 Adoption of compact

The driver license compact is entered into and enacted into law as follows:

Driver License Compact

Article I

Findings and Declaration of Policy

(a) The party states find that:

(1) The safety of their streets and highways is materially affected by the degree of compliance with state and local ordinances relating to the operation of motor vehicles.

(2) Violation of such a law or ordinance is evidence that the violator engages in conduct which is likely to endanger the safety of persons and property.

(3) The continuance in force of a license to drive is predicated upon compliance with laws and ordinances relating to the operation of motor vehicles, in whichever jurisdiction the vehicle is operated.

(b) It is the policy of each of the party states to:

(1) Promote compliance with the laws, ordinances and administrative rules and regulations relating to the operation of motor vehicles by their operators in each of the jurisdictions where such operators drive motor vehicles.

(2) Make the reciprocal recognition of licenses to drive and eligibility therefor more just and equitable by considering the overall compliance with motor vehicle laws, ordinances and administrative rules and regulations as a condition precedent to the continuance or issuance of any license by reason of which the licensee is authorized or permitted to operate a motor vehicle in any of the party states.

Article II

Definitions

As used in this compact:

(a) "State" means a state, territory or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico.

(b) "Home state" means the state which has issued and has the power to suspend or revoke the use of the license or permit to operate a motor vehicle.

(c) "Conviction" means a conviction of any offense related to the use or operation of a motor vehicle which is prohibited by state law, municipal ordinance or administrative rule or regulation, or a forfeiture of bail, bond or other security deposited to secure appearance by a person charged with having committed any such offense, and which conviction or forfeiture is required to be reported to the licensing authority.

Article III

Reports of Conviction

The licensing authority of a party state shall report each conviction of a person from another party state occurring within its jurisdiction to the licensing authority of the home state of the licensee. Such report shall clearly identify the person convicted, describe the violation, specifying the section of the statute, code or ordinance violated, identify the court in which action was taken, indicate whether a plea of guilty or not guilty was entered, or the conviction was a result of the forfeiture of bail, bond or other security, and shall include any special findings made in connection therewith.

Article IV

Effect of Conviction

(a) The licensing authority in the home state, for the purposes of suspension, revocation or limitation of the license to operate a motor vehicle, shall give the same effect to the conduct reported, pursuant to article III of this compact, as it would if such conduct had occurred in the home state, in the case of convictions for:

(1) Manslaughter or negligent homicide resulting from the operation of a motor vehicle.

(2) Driving a motor vehicle while under the influence of intoxicating liquor or a narcotic drug or under the influence of any other drug to a degree which renders the driver incapable of safely driving a motor vehicle.

(3) Any felony in the commission of which a motor vehicle is used.

(4) Failure to stop and render aid in the event of a motor vehicle accident resulting in the death or personal injury of another.

(b) As to other convictions, reported pursuant to article III, the licensing authority in the home state shall give such effect to the conduct as is provided by the laws of the home state.

(c) If the laws of a party state do not provide for offenses or violations denominated or described in precisely the words employed in subdivision (a) of this article, such party state shall construe the denominations and descriptions appearing in subdivision (a) hereof as being applicable to and identifying those offenses or violations of a substantially similar nature and the laws of such party state shall contain such provisions as may be necessary to ensure that full force and effect is given to this article.

Article V

Applications for New Licenses

Upon application for a license to drive, the licensing authority in a party state shall ascertain whether the applicant has ever held, or is the holder of a license to drive issued by any other party state. The licensing authority in the state where application is made shall not issue a license to drive to the applicant if:

(1) The applicant has held such a license, but the same has been suspended by reason, in whole or in part, of a violation and if such suspension period has not terminated.

(2) The applicant has held such a license, but the same has been revoked by reason, in whole or in part, of a violation and if such revocation has not terminated, except that after the expiration of one year from the date the license was revoked, such person may make application for a new license if permitted by law. The licensing authority may refuse to issue a license to any such applicant if, after investigation, the licensing authority determines that it will not be safe to grant to such person the privilege of driving a motor vehicle on the public highways.

(3) The applicant is the holder of a license to drive issued by another party state and currently in force unless the applicant surrenders such license.

Article VI

Applicability of Other Laws

Except as expressly required by provisions of this compact, nothing contained herein shall be construed to affect the right of any party state to apply any of its other laws relating to licenses to drive to any person or circumstance nor to invalidate or prevent any driver license agreement or other cooperative arrangement between a party state and a non-party state.

Article VII

Compact Administrator and Interchange of Information

(a) The head of the licensing authority of each party state shall be the administrator of this compact for his state. The administrators, acting jointly, shall have the power to formulate all necessary and proper procedures for the exchange of information under this compact.

(b) The administrator of each party state shall furnish to the administrator of each other party state any information or documents reasonably necessary to facilitate the administration of this compact.

Article VIII

Entry Into Force and Withdrawal

(a) This compact shall enter into force and become effective as to any state when it has enacted the same into law.

(b) Any party state may withdraw from this compact by enacting a statute repealing the same, but no such withdrawal shall take effect until six months after the executive head of the withdrawing state has given notice of the withdrawal to the executive heads of all other party states. No withdrawal shall affect the validity or applicability by the licensing authorities of states remaining party to the compact of any report of conviction occurring prior to the withdrawal.

Article IX

Construction and Severability

This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the constitution of any party state or of the United States or the applicability thereof to any government, agency, person or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state party thereto, the compact shall remain in full force and effect as to the remaining states and in full force and effect as to the state affected as to all severable matters.

§ 28-1853 Exchange of information

The licensing authority shall furnish to the appropriate authorities of any other party state any information or documents reasonably necessary to facilitate the administration of articles III, IV and V of the driver license compact.

§ 28-1854 Compensation and expenses of administrator

The compact administrator provided for in article VII of the driver license compact is not entitled to any additional compensation because of the administrator's services as administrator of the compact. The administrator shall be reimbursed for travel and other necessary expenses incurred in the performance of the administrator's official duties under the compact pursuant to title 38, chapter 4, article 2.

§ 28-1855 Report by courts and agencies

Any court, other agency or subdivision of a court or agency that has jurisdiction to take any action suspending, revoking or otherwise limiting a license to drive shall report the action and the adjudication on which it is based to the licensing authority within ten days on forms furnished by the licensing authority.

Article 4 Nonresident Violator Compact

§ 28-1871 Definitions

In this article, unless the context otherwise requires:

1. "Jurisdiction executive" means the governor of this state.

2. "Licensing authority" means the department.

§ 28-1872 Adoption of compact

The nonresident violator compact is adopted and enacted into law as follows:

Nonresident Violator Compact

Article I

Findings, Declaration of Policy and Purpose

(a) The party jurisdictions find that:

(1) In most instances, a motorist who is cited for a traffic violation in a jurisdiction other than his home jurisdiction either:

(i) Must post collateral or bond to secure appearance for trial at a later date.

(ii) If unable to post collateral or bond, is taken into custody until the collateral or bond is posted.

(iii) Is taken directly to court for the trial to be held.

(2) In some instances, the motorist's driver's license may be deposited as collateral to be returned after he has complied with the terms of the citation.

(3) The purpose of the practices described in paragraphs (1) and (2) above is to ensure compliance with the terms of a traffic citation by the motorist who, if permitted to continue on his way after receiving the traffic citation, could return to his home jurisdiction and disregard his duty under the terms of the traffic citation.

(4) A motorist receiving a traffic citation in his home jurisdiction is permitted, except for certain violations, to accept the citation from the officer at the scene of the violation and to immediately continue on his way after promising or being instructed to comply with the terms of the citation.

(5) The practice described in paragraph (1) above causes unnecessary inconvenience and, at times, a hardship for the motorist who is unable at the time to post collateral, furnish a bond, stand trial or pay the fine, and thus is compelled to remain in custody until some arrangement can be made.

(6) The deposit of a driver's license as a bail bond, as directed in paragraph (2) above, is viewed with disfavor.

(7) The practices described herein consume an undue amount of law enforcement time.

(b) It is the policy of the party jurisdictions to:

(1) Seek compliance with the laws, ordinances and administrative rules and regulations relating to the operation of motor vehicles in each of the jurisdictions.

(2) Allow motorists to accept a traffic citation for certain violations and proceed on their way without delay whether or not the motorist is a resident of the jurisdiction in which the citation was issued.

(3) Extend cooperation to its fullest extent among the jurisdictions for obtaining compliance with the terms of a traffic citation issued in one jurisdiction to a resident of another jurisdiction.

(4) Maximize effective utilization of law enforcement personnel and assist court systems in the efficient disposition of traffic violations.

(c) The purpose of this compact is to:

(1) Provide a means through which the party jurisdictions may participate in a reciprocal program to effectuate the policies enumerated in paragraph (b) above in a uniform and orderly manner.

(2) Provide for the fair and impartial treatment of traffic violators operating within party jurisdictions in recognition of the motorist's right of due process and the sovereign status of a party jurisdiction.

Article II

Definitions

(a) In the nonresident violator compact, the following words have the meaning indicated, unless the context requires otherwise.

(b) (1) "Citation" means any summons, ticket or other official document issued by a police officer for a traffic violation containing an order which requires the motorist to respond.

(2) "Collateral" means any cash or other security deposited to secure an appearance for trial, following the issuance by a police officer of a citation for a traffic violation.

(3) "Compliance" means the act of answering a citation, summons or subpoena through appearance at court or a tribunal or payment of fines and costs.

(4) "Court" means a court of law or traffic tribunal.

(5) "Driver's license" means any license or privilege to operate a motor vehicle issued under the laws of the home jurisdiction.

(6) "Home jurisdiction" means the jurisdiction that issued the driver's license of the traffic violator.

(7) "Issuing jurisdiction" means the jurisdiction in which the traffic citation was issued to the motorist.

(8) "Jurisdiction" means a state, territory or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, provinces of Canada or other countries.

(9) "Motorist" means driver of a motor vehicle operating in a party jurisdiction other than the home jurisdiction.

(10) "Personal recognizance" means an agreement by a motorist made at the time of issuance of the traffic citation that he will comply with the terms of that traffic citation.

(11) "Police officer" means any individual authorized by the party jurisdiction to issue a citation for a traffic violation.

(12) "Terms of the citation" means those options expressly stated on the citation.

Article III

Procedure for Issuing Jurisdiction

(a) When issuing a citation for a traffic violation, a police officer shall issue the citation to a motorist who possesses a driver's license issued by a party jurisdiction and shall not, subject to the exceptions noted in paragraph (b) of this article, require the motorist to post collateral to secure appearance, if the officer receives the motorist's personal recognizance that he or she will comply with the terms of the citation.

(b) Personal recognizance is acceptable only if not prohibited by law. If mandatory appearance is required, it should take place immediately following issuance of the citation.

(c) On failure of a motorist to comply with the terms of a traffic citation, the appropriate official shall report the failure to comply to the licensing authority of the jurisdiction in which the traffic citation was issued. The report shall be made in accordance with procedures specified by the issuing jurisdiction and shall contain information as specified in the compact manual as minimum requirements for effective processing by the home jurisdiction.

(d) On receipt of the report, the licensing authority of the issuing jurisdiction shall transmit to the licensing authority in the home jurisdiction of the motorist the information in a form and content as contained in the compact manual.

(e) The licensing authority of the issuing jurisdiction need not suspend the privilege of a motorist for whom a report has been transmitted.

(f) The licensing authority of the issuing jurisdiction shall not transmit a report on any violation if the date of transmission is more than six months after the date on which the traffic citation was issued.

(g) The licensing authority of the issuing jurisdiction shall not transmit a report on any violation where the date of issuance of the citation predates the most recent of the effective dates of entry for the two jurisdictions affected.

Article IV

Procedure for Home Jurisdiction

(a) On receipt of a report of a failure to comply from the licensing authority of the issuing jurisdiction, the licensing authority of the home jurisdiction shall notify the motorist and initiate a suspension action in accordance with the home jurisdiction's procedures to suspend the motorist's driver's license until satisfactory evidence of compliance with the terms of the traffic citation has been furnished to the home jurisdiction licensing authority. Due process safeguards will be accorded.

(b) The licensing authority of the home jurisdiction shall maintain a record of actions taken and make reports to issuing jurisdictions as provided in the compact manual.

Article V

Applicability of Other Laws

Except as expressly required by provisions of this compact, nothing contained herein shall be construed to affect the right of any party jurisdiction to apply any of its other laws relating to license to drive to any person or circumstance, or to invalidate or prevent any driver license agreement or other cooperative arrangements between a party jurisdiction and a nonparty jurisdiction.

Article VI

Compact Administrator Procedures

(a) For the purpose of administering the provisions of this compact and to serve as a governing body for the resolution of all matters relating to the operation of this compact, a board of compact administrators is established. The board shall be composed of one representative from each party jurisdiction to be known as the compact administrator. The compact administrator shall be appointed by the jurisdiction executive and will serve and be subject to removal in accordance with the laws of the jurisdiction he represents. A compact administrator may provide for the discharge of his duties and the performance of his functions as a board member by an alternate. An alternate may not be entitled to serve unless written notification of his identity has been given to the board.

(b) Each member of the board of compact administrators shall be entitled to one vote. No action of the board shall be binding unless taken at a meeting at which a majority of the total number of votes on the board are cast in favor. Action by the board shall be only at a meeting at which a majority of the party jurisdictions are represented.

(c) The board shall elect annually, from its membership, a chairman and vice-chairman.

(d) The board shall adopt bylaws, not inconsistent with the provisions of this compact or the laws of a party jurisdiction, for the conduct of its business and shall have the power to amend and rescind its bylaws.

(e) The board may accept for any of its purposes and functions under this compact any and all donations, and grants of money, equipment, supplies, materials and services, conditional or otherwise, from any jurisdiction, the United States or any other governmental agency, and may receive, utilize and dispose of the same.

(f) The board may contract with or accept services or personnel from any governmental or intergovernmental agency, person, firm or corporation, or any private nonprofit organization or institution.

(g) The board shall formulate all necessary procedures and develop uniform forms and documents for administering the provisions of this compact. All procedures and forms adopted pursuant to board action shall be contained in the compact manual.

Article VII

Entry into Compact and Withdrawal

(a) This compact shall become effective when it has been adopted by at least two jurisdictions.

(b) (1) Entry into the compact shall be made by a resolution of ratification executed by the authorized officials of the applying jurisdiction and submitted to the chairman of the board.

(2) The resolution shall be in a form and content as provided in the compact manual and shall include statements that in substance are as follows:

(i) A citation of the authority by which the jurisdiction is empowered to become a party to this compact.

(ii) Agreement to comply with the terms and provisions of the compact.

(iii) That compact entry is with all jurisdictions then party to the compact and with any jurisdiction that legally becomes a party to the compact.

(3) The effective date of entry shall be specified by the applying jurisdiction, but it shall not be less than sixty days after notice has been given by the chairman of the board of compact administrators or by the secretariat of the board to each party jurisdiction that the resolution from the applying jurisdiction has been received.

(c) A party jurisdiction may withdraw from this compact by official written notice to the other party jurisdictions, but a withdrawal shall not take effect until ninety days after notice of withdrawal is given. The notice shall be directed to the compact administrator of each member jurisdiction. No withdrawal shall affect the validity of this compact as to the remaining party jurisdictions.

Article VIII

Exceptions

The provisions of this compact shall not apply to parking or standing violations, highway weight limit violations and violations of law governing the transportation of hazardous materials.

Article IX

Amendments to the Compact

(a) This compact may be amended from time to time. Amendments shall be presented in resolution form to the chairman of the board of compact administrators and may be initiated by one or more party jurisdictions.

(b) Adoption of an amendment shall require endorsement of all party jurisdictions and shall become effective thirty days after the date of the last endorsement.

(c) Failure of a party jurisdiction to respond to the compact chairman within one hundred twenty days after receipt of the proposed amendments shall constitute endorsement.

Article X

Construction and Severability

This compact shall be liberally construed so as to effectuate the purposes stated herein. The provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the construction of any party jurisdiction or of the United States or the applicability thereof to any government agency, person or circumstance, the compact shall not be affected thereby. If this compact shall be held contrary to the constitution of any jurisdiction party thereto, the compact shall remain in full force and effect as to the remaining jurisdictions and in full force and effect as to the jurisdiction affected as to all severable matters.

Article XI

Title

This compact shall be known as the nonresident violator compact of 1977.

§ 28-1873 Documents; duties

The licensing authority shall execute all documents and perform all acts necessary to enter into and to carry out the nonresident violator compact adopted by this article.

§ 28-1874 Compensation and expenses of administrator

The compact administrator of this state is not entitled to any additional compensation for the administrator's service but is eligible for reimbursement for expenses incurred with the compact administrator's responsibilities as administrator in the same manner as expenses incurred in connection with other responsibilities of the compact administrator's office or employment.

Chapter 7 Certificate of Title and Registration

Article 1 General Provisions

§ 28-2001 Definitions

A. "Resident", for the purpose of registration and operation of motor vehicles:

1. Except as provided by paragraph 2, means the following:

(a) A person who, regardless of domicile, remains in this state for an aggregate period of seven months or more during a calendar year.

(b) A person who engages in a trade, profession or occupation in this state or who accepts employment in other than either:

(i) Seasonal agricultural work.

(ii) Temporary seasonal work for a period of not more than three months if the state in which the temporary seasonal worker is permanently domiciled has a similar exception.

(c) A person who places children in a public school without payment of nonresident tuition.

(d) A person who declares that the person is a resident of this state for the purpose of obtaining at resident rates a state license or tuition fees at an educational institution maintained by public monies.

(e) An individual, partnership, company, firm, corporation or association that maintains a main office, a branch office or warehouse facilities in this state and that bases and operates motor vehicles in this state.

(f) An individual, partnership, company, firm, corporation or association that operates motor vehicles in intrastate transportation, for other than seasonal agricultural work.

(g) A person who is registered to vote in this state.

2. Does not mean:

(a) A nonresident owner of a foreign vehicle that is registered and licensed in a state adjoining this state and that is used in this state for other than the transportation of passengers or property for compensation, if the nonresident owner and vehicle are domiciled in an adjoining state but within twenty-five miles of the border of this state and if the state in which the owner resides and in which the vehicle is registered exempts from payment of registration and weight fees like vehicles from this state, regardless of whether the nonresident owner engages in a trade, profession or occupation in this state or accepts employment.

(b) An out-of-state student enrolled with seven or more semester hours regardless of whether the student engages in a trade, profession or occupation in this state or accepts employment in this state. For the purposes of this paragraph, "out-of-state student" means either:

(i) A person who is enrolled at an educational institution maintained by public monies and who is not classified as an in-state student under section 15-1802.

(ii) A person who is a student at a private educational institution and who would not be classified as an in-state student under section 15-1802 if the student were attending a public educational institution.

(c) A nonresident daily commuter as defined in section 28-2291.

B. In this chapter, unless the context otherwise requires:

1. "Mobile home" means a structure that is transportable in one or more sections, including the plumbing, heating, air conditioning and electrical systems that are contained in the structure, and that, when erected on site, is either of the following:

(a) More than eight body feet in width, thirty-two body feet or more in length and built on a permanent chassis.

(b) Regardless of the size, used as a single family dwelling or for commercial purposes with or without a permanent foundation.

2. "Serial number" means the number placed on the vehicle by its manufacturer or assigned pursuant to section 28-2165.

§ 28-2002 Assessor or director as county agent

A. Except in counties that have entered into an agreement authorized by section 28-2006, the assessor of each county is an agent of the department for the performance of the acts and duties delegated to the assessor.

B. A county assessor or the director in those counties that have entered into an agreement authorized by section 28-2006 may establish outlets for the issuance of licenses as are necessary. The outlets and offices are constituted county offices of the department.

§ 28-2003 Fees; vehicle title and registration; identification plate; definitions

A. The following fees are required:

1. For each certificate of title, salvage certificate of title, restored salvage certificate of title or nonrepairable vehicle certificate of title, $4.

2. For each certificate of title for a mobile home, $7. The director shall deposit $3 of each fee imposed by this paragraph in the state highway fund established by section 28-6991.

3. Except as provided in section 28-1177, for the registration of a motor vehicle, $8, except that the fee for motorcycles is $9.

4. For a duplicate registration card or any duplicate permit, $4.

5. For each special ninety day nonresident registration issued under section 28-2154, $15.

6. For the registration of a trailer or semitrailer that is not a travel trailer, that is ten thousand pounds or less declared gross weight and that is used in the furtherance of a commercial enterprise, $8.

7. For the registration of a trailer or semitrailer that is not a travel trailer and that exceeds ten thousand pounds declared gross weight:

(a) On initial registration, a onetime fee of $245.

(b) On renewal of registration or if previously registered in another state, a onetime fee of:

(i) If the trailer's or semitrailer's model year is less than six years old, $145.

(ii) If the trailer's or semitrailer's model year is at least six years old, $95.

8. For the registration of a noncommercial trailer that is not a travel trailer and that is ten thousand pounds or less declared gross weight:

(a) On initial registration, a onetime fee of $20.

(b) On renewal of registration, a onetime fee of $5.

9. For a transfer of a noncommercial trailer that is not a travel trailer and that is ten thousand pounds or less declared gross weight, $12.

10. For each special ninety day resident registration issued under section 28-2154, $15.

11. For each one trip registration permit issued under section 28-2155, $1.

12. For each temporary general use registration issued under section 28-2156, $15.

13. For each identification plate bearing a serial or identification number to be affixed to any vehicle, $5.

B. For the purposes of this section:

1. "Declared gross weight" has the same meaning prescribed in section 28-5431.

2. "Travel trailer" means a trailer that is:

(a) Mounted on wheels.

(b) Designed to provide temporary living quarters for recreational, camping or travel use.

(c) Less than eight feet in width and less than forty feet in length.

§ 28-2004 Disposition of fees; highway user revenue 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 deposit, pursuant to sections 35-146 and 35-147, the monies in the Arizona highway user revenue fund.

§ 28-2005 Disposition of fees; county assessor's special registration fund

A. If the county assessor is acting as an agent of the department, the county assessor shall transmit the following monies to the county treasurer of the county in which the fee is collected:

1. One dollar of each registration fee.

2. One dollar of each title fee.

3. Two dollars of each late registration penalty collected by the assessor.

B. The county treasurer shall deposit the fees received pursuant to subsection A of this section in a special registration fund for the use of the assessor in carrying out the duties imposed by this article. The county treasurer shall allow and shall pay claims against the fund in the same manner as claims against the county are allowed and paid.

C. The board of supervisors may order the transfer of all or any unexpended part of the monies in the special registration fund received during the previous fiscal year to the fund for the maintenance and construction of county highways. The county treasurer may invest inactive monies in the special registration fund in United States government bonds or interest bearing notes and other interest bearing obligations of the United States for which the full faith and credit of the United States are pledged. The county treasurer shall credit all interest earned on the special registration fund monies to the special fund.

D. Except as otherwise provided by law, the collecting officer shall immediately transmit monies received from fees and taxes imposed by this chapter, except the portion retained for the assessor's special registration fund, to the director. The director shall deposit, pursuant to sections 35-146 and 35-147, the monies in the Arizona highway user revenue fund.

E. Each county assessor shall collect and transmit monies received as motor vehicle emissions inspection fees, exemption fees or certificate of waiver fees pursuant to section 49-543, the annual registration fee and the vehicle license tax to the state treasurer. The state treasurer shall deposit:

1. The emissions inspection fees, exemption fees and certificate of waiver fees in the emissions inspection fund established by section 49-544.

2. The annual registration fee and vehicle license tax as prescribed by law.

§ 28-2006 Contract to transfer duties and responsibilities

A. The director and a county board of supervisors may contract to provide for the transfer of the duties and responsibilities of the county assessor pursuant to this title to the department.

B. The agreement shall provide for the following:

1. The purchase and conveyance of real property presently used, subject to available monies.

2. The transfer and payment of personal property presently used.

3. The employment of persons presently employed by the county if the employees desire the transfer.

4. The effective date of the transfer.

5. The amount of monies in the county assessor's special registration fund established pursuant to section 28-2005 that will be transferred, if any.

C. On the agreement's effective date, the department assumes all of the powers, duties and responsibilities of the county assessor pursuant to this title.

D. The department of administration shall transfer into the state service on a noncompetitive basis a permanent county employee who is affected by the agreement authorized by this section and who desires to be transferred to state employment. If the employee has not successfully completed six months' related experience, the employee shall serve a ninety day probationary period in the state service.

§ 28-2007 Highway safety fee; refund

A. At the time of application for and before registration each year of a vehicle, the registering officer shall collect a highway safety fee in an amount to be determined by the director. The director shall deposit, pursuant to sections 35-146 and 35-147, all monies collected pursuant to this section in the Arizona highway patrol fund established by section 41-1752.

B. Notwithstanding subsection A of this section, beginning from and after June 30, 2021, the registering officer may not collect a highway safety fee. The registering officer may not collect a highway safety fee for registrations that expire on June 30, 2021. For any registration that expires on June 30, 2021 for which the registering officer collected a highway safety fee, the department shall refund the highway safety fee collected.

§ 28-2008 Duplicate certificate of title, permit, registration card or license plates

A. If a permit, registration card or license plate is lost or mutilated or becomes illegible, the person entitled to the permit, card or plate shall immediately apply for and obtain a duplicate or substitute permit, card or plate by furnishing information satisfactory to the department.

B. If a paper certificate of title is lost or mutilated or becomes illegible, the person entitled to the certificate of title may apply for a duplicate or substitute certificate of title by furnishing information satisfactory to the department. The department may implement procedures related to the issuance of a duplicate paper certificate of title.

§ 28-2009 Certificate of title; validity

The certificate of title is valid for the life of the vehicle as long as the vehicle is owned by the original holder of the title, unless it has been replaced pursuant to section 28-2008.

§ 28-2010 Motorcycle safety fund; administration

A. The motorcycle safety fund is established consisting of monies deposited pursuant to subsection B of this section and monies from gifts, grants and other donations. The director of the governor's office of highway safety shall administer the fund. On notice from the director of the governor's office of highway safety, the state treasurer shall invest and divest monies in the fund as provided in section 35-313, and monies earned from investment shall be credited to the fund. Up to ten percent of the monies in the fund may be used for administrative costs. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. Notwithstanding section 28-2004, the director of the department of transportation shall deposit, pursuant to sections 35-146 and 35-147, $1 of each motorcycle registration fee collected pursuant to section 28-2003 in the motorcycle safety fund.

C. Subject to legislative appropriation, the director of the governor's office of highway safety shall use monies deposited in the motorcycle safety fund pursuant to this section to implement and support voluntary motorcycle education, awareness, training and other programs and may use the monies to cover the cost of materials for motorcycle safety, education and awareness programs.

D. Any fee, assessment or other levy that is authorized by law or administrative rule and that is collected and deposited in the motorcycle safety fund shall be held in trust. The monies in the fund may be used only for the purposes prescribed by statute and may not be appropriated or transferred by the legislature to fund the general operations of this state or to otherwise meet the obligations of the general fund of this state. This subsection does not apply to any taxes or other levies that are imposed pursuant to title 42 or 43.

§ 28-2011 Vehicle inspections

A. The department may conduct the following levels of motor vehicle inspections:

1. Level one. A level one inspection consists of matching the public vehicle identification number and a secondary vehicle identification number to the vehicle ownership documents to determine the identity of the vehicle.

2. Level two. A level two inspection consists of matching the public vehicle identification number, a secondary vehicle identification number and the confidential vehicle identification number to the vehicle ownership documents to determine the identity of the vehicle.

3. Level three. A level three inspection consists of a level two inspection plus verification of vehicle identification numbers on, at the discretion of the inspector, some or all component parts to determine the identity of the vehicle and that the vehicle is properly equipped for highway use.

B. A person who submits a motor vehicle to the department for inspection shall pay the following fees:

1. For a level two inspection, twenty dollars.

2. For a level three inspection, fifty dollars.

C. The department shall deposit the inspection fees in the vehicle inspection and certificate of title enforcement fund established by section 28-2012.

D. An inspection fee is not required for an inspection of a motor vehicle owned by a foreign government, by a consul or any other representative of a foreign government, by the United States, by a state or political subdivision of a state or by an Indian tribal government.

§ 28-2012 Vehicle inspection and certificate of title enforcement fund

A. The vehicle inspection and certificate of title enforcement fund is established consisting of monies deposited pursuant to sections 28-2011 and 28-2013 and section 28-2095, subsection G.

B. Monies in the vehicle inspection and certificate of title enforcement fund are subject to legislative appropriation to the department to be used by the department to defray the cost of investigations involving certificates of title, licensing fraud, registration enforcement and automobile theft related issues.

C. The vehicle inspection and certificate of title enforcement fund is exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 28-2013 Disposition of property; deposit of proceeds

A. The department may receive monies from any department or agency of the United States, this state or any political subdivision of this state and may sell, transfer or otherwise dispose of all property seized and forfeited to the state, or otherwise awarded to the department, as a result of any investigation.

B. The department shall deposit, pursuant to sections 35-146 and 35-147, any proceeds resulting from subsection A of this section, except an investigation or prosecution conducted pursuant to article 3 of this chapter, in the vehicle inspection and certificate of title enforcement fund established by section 28-2012.

Article 2 Certificate of Title and Registration

§ 28-2051 Application for certificate of title; vision screening test

A. A person shall apply to the department on a form prescribed or authorized by the department for a certificate of title to a motor vehicle, trailer or semitrailer. The person shall make the application within fifteen days after the purchase or transfer of the vehicle, trailer or semitrailer except that a licensed motor vehicle dealer shall make the application within thirty days after the purchase or transfer. All transferees shall sign the application, except that one transferee may sign the application if both of the following apply:

1. The application is for the purposes of converting an out-of-state certificate of title to a certificate of title issued pursuant to this article.

2. The ownership or legal status of the motor vehicle, trailer or semitrailer does not change.

B. The application shall contain:

1. The transferee's full name and either the driver license number of the transferee or a number assigned by the department.

2. The transferee's complete residence address.

3. A brief description of the vehicle to be issued a certificate of title.

4. The name of the manufacturer of the vehicle.

5. The serial number of the vehicle.

6. The last license plate number if applicable and if known and the state in which the license plate number was issued.

7. If the application is for a certificate of title to a new vehicle, the date of sale by the manufacturer or dealer to the person first operating the vehicle.

8. If the application is in the name of a lessor:

(a) The lessor shown on the application as the owner or transferee.

(b) At the option of the lessor, the lessee shown on the application as the registrant.

(c) The address of either the lessor or lessee.

(d) The signature of the lessor.

9. If the application is for a certificate of title to a specially constructed, reconstructed or foreign vehicle, a statement of that fact. For the purposes of this paragraph, "specially constructed vehicle" means a vehicle not originally constructed under a distinctive name, make, model or type by a generally recognized manufacturer of vehicles.

10. If an applicant rents or intends to rent the vehicle without a driver, a statement of that fact.

11. Other information required by the department.

C. Unless subsection B, paragraph 8 of this section applies, on request of an applicant, the department shall allow the applicant to provide on the certificate of title of a motor vehicle, trailer or semitrailer a post office box address that is regularly used by the applicant.

D. A person shall submit the following information with an application for a certificate of title:

1. To a vehicle previously registered:

(a) The odometer mileage disclosure statement prescribed by section 28-2058.

(b) If the applicant is applying for a certificate of title pursuant to section 28-2060, the applicant's statement of the odometer reading as of the date of application.

2. To a new vehicle:

(a) Either of the following:

(i) A manufacturer's certificate of origin showing the date of sale to the dealer or person first receiving the vehicle from the manufacturer. Before the department issues a certificate of title to a new vehicle, a manufacturer's certificate of origin shall be surrendered to the department.

(ii) A factory invoice, a form that is provided by the department or other documentation that shows the date of sale to the dealer or the person who first received the vehicle from the manufacturer.

(b) The name of the dealer or person.

(c) A description sufficient to identify the vehicle.

(d) A statement certifying that the vehicle was new when sold.

(e) If sold through a dealer, a statement by the dealer certifying that the vehicle was new when sold to the applicant.

E. The department may request that an applicant who appears in person for a certificate of title of a motor vehicle, trailer or semitrailer satisfactorily complete the vision screening test prescribed by the department.

§ 28-2052 Title and registration of foreign vehicles

A. Except as provided in subsection E of this section, the owner of a foreign vehicle that has been registered in another state or country and for which an application for a certificate of title is made shall surrender to the department the license plates assigned to the vehicle, the registration card, the certificate of ownership or other evidence of foreign registration and satisfactory evidence of ownership showing that the applicant is the lawful owner or possessor of the vehicle.

B. If in the course of interstate operation of a vehicle registered in another state or country it is desirable to retain registration of the vehicle in the other state or country, the applicant need not follow the requirements of subsection A of this section but shall submit evidence of the foreign registration and ownership for inspection. The department shall register the vehicle on a proper showing of evidence of registration but shall not issue a certificate of title for the vehicle.

C. The department may inspect a foreign vehicle before issuing a certificate of title or before registration, including examination and inspection to establish compliance with section 28-955, under conditions and standards as required by the director of environmental quality. The department may establish procedures to accept vehicle inspections completed in another state.

D. Before the department issues a certificate of title to a vehicle imported into this country, the owner shall obtain a certificate of compliance that states that the vehicle meets all federal vehicle equipment and emissions equipment requirements. This subsection does not apply to a golf cart manufactured or modified before June 17, 1998 or neighborhood electric vehicle manufactured or modified before June 17, 1998.

E. The department may establish procedures to accept evidence that the certificate of title or certificate of ownership has been voided or destroyed by another state.

§ 28-2053 Certificate of title without registration

A. The department may only issue a vehicle certificate of title without registration for a vehicle that is physically present in this state for any of the following reasons:

1. The applicant for a certificate of title is a nonresident whose vehicle is not subject to vehicle registration in this state.

2. The applicant certifies that the vehicle was acquired for purposes other than highway use.

3. The vehicle was acquired by operation of law.

4. The vehicle is an off-road recreational motor vehicle required to be issued a certificate of title pursuant to section 28-2061.

B. The department shall issue a certificate of title without registration for either of the following reasons:

1. The owner will register the vehicle under article 7 or 8 of this chapter.

2. The vehicle is a trailer or semitrailer that will be used in interstate commerce and that is registered in another state.

§ 28-2054 Certificate of title; application processing

A. The department shall file each application for a certificate of title. When the department is satisfied that the application is genuine and regular and that the applicant is entitled to a certificate, it shall register the vehicle and the owner alphabetically under the name of the owner and numerically under the serial number and under a distinctive title number assigned to the vehicle and the owner.

B. In addition to all other requirements, if the application is for a certificate of title to a mobile home the department shall not issue or transfer a certificate of title on the mobile home if there are any delinquent personal property taxes on the mobile home.

§ 28-2055 Certificate of title; content requirements; transfer on death provision

A. The department or an authorized third party shall do both of the following:

1. Create the certificate of title with space for notation of liens and encumbrances on the vehicle at the time of transfer.

2. Provide forms for assignment of title or interest and warranty by the owner that include the odometer mileage disclosure statement pursuant to section 28-2058.

B. At the request of the owner, the certificate of title may contain, by attachment, a transfer on death provision where the owner may designate a beneficiary of the vehicle.

C. If a motor vehicle, trailer or semitrailer has been registered in any other state or country, the department shall retain in its records the name of the state or country in which the prior registration took place.

§ 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 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, 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 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, article 2 until the tax is paid.

B. The department of transportation shall notify the department of revenue of taxes collected pursuant to this section. At the end of each month the department of transportation shall deposit, pursuant to sections 35-146 and 35-147, tax monies collected pursuant to this section in the state general fund.

C. The department of revenue shall provide the department of transportation with the means, including using tax rates applicable to each jurisdiction levying a use tax, to calculate the use taxes required to be collected pursuant to subsection A of this section.

§ 28-2057 Registration without certificate of title or bond; receipt; fee

A. If the department is not satisfied as to the ownership of the vehicle or is not satisfied that there are no undisclosed security interests in the vehicle, the department may register a vehicle but shall either:

1. Withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the department as to the applicant's ownership of the vehicle and that there are no undisclosed security interests in the vehicle.

2. As a condition of issuing a certificate of title, require the applicant to file a bond with the department as prescribed in subsection B of this section.

B. The department shall prescribe the form of the bond required by subsection A of this section. The applicant shall execute the bond and either accompany it with the deposit of cash or have a person authorized to conduct a surety business in this state also execute the bond. The bond shall be in an amount equal to one and one-half times the value of the vehicle as determined by the department and conditioned to indemnify any prior owner and lienholder and any subsequent purchaser of the vehicle or person acquiring any security interest in it and their respective successors in interest against any expense, loss or damage, including reasonable attorney fees, by reason of the issuance of the certificate of title of the vehicle or on account of any defect in or undisclosed security interest on the right, title and interest of the applicant in and to the vehicle.

C. An interested person has a right of action to recover on the bond for any breach of its condition. The aggregate liability of the surety to all persons shall not exceed the amount of the bond.

D. The bond and any deposit accompanying it shall be returned at the end of three years or prior to the end of three years if the vehicle is no longer registered in this state and the currently valid certificate of title is surrendered to the department, unless the department has been notified of the pendency of an action to recover on the bond.

E. If the applicant does not have the original certificate of title because the certificate of title is held by a lender located outside this state and if the applicant presents documents to the department sufficient in the judgment of the department to establish ownership of the vehicle, the department may register the vehicle and issue a receipt in lieu of the certificate of title provided by section 28-2052. The fee for the receipt is equal to the fee prescribed for a certificate of title pursuant to section 28-2003.

§ 28-2058 Transfer of title; odometer mileage disclosure statement; education

A. When the owner of a registered or unregistered vehicle transfers or assigns the owner's title or interest to the vehicle:

1. If the vehicle is registered:

(a) The owner shall endorse on the certificate of title or title transfer form an assignment with the warranty of title.

(b) Except as provided in section 28-2094, the owner shall deliver the certificate of title or title transfer form to the purchaser or transferee at the time of delivery of the vehicle to the purchaser or transferee.

(c) The registration of the vehicle expires and the owner shall transfer the license plates, surrender the license plates to the department or an authorized third party or submit an affidavit of license plate destruction within thirty days after the owner transfers or assigns the owner's title or interest in the vehicle.

(d) Except as provided in section 28-2091, the acquiring owner shall apply for registration or a certificate of title, or both, within fifteen days after the relinquishing owner transfers or assigns the relinquishing owner's certificate of title or interest in the vehicle. The director may prorate the registration period as the director deems necessary to coincide with emissions inspection requirements.

(e) Except if the acquiring owner is an insurer who acquires the vehicle pursuant to a claim settlement, the acquiring owner shall display on the vehicle a temporary registration plate, another permit or a valid license plate as prescribed by the department until ownership of the vehicle is transferred in the department's records.

2. Regardless of whether or not the vehicle is registered:

(a) Except as provided in subsection B of this section, the owner shall deliver to the purchaser or transferee an odometer mileage disclosure statement in a form prescribed by the director.

(b) Except as provided in sections 28-2051, 28-2060 and 28-2091, the purchaser or transferee shall present the certificate of title or title transfer form to the department with the required fee within fifteen days after the transfer and:

(i) The department shall issue a new certificate of title.

(ii) If required, the purchaser or transferee shall apply for and obtain registration, and the department shall issue new license plates to the purchaser or transferee.

B. The odometer disclosure requirement of subsection A of this section does not apply to:

1. A motor vehicle that is ten model years of age if the model year is 2010 or older.

2. A motor vehicle that is twenty model years of age if the model year is 2011 or newer.

3. A motor vehicle that has a gross vehicle weight rating of sixteen thousand pounds or more.

4. A vehicle that is not self-propelled.

5. A motor vehicle that is sold directly by the manufacturer to an agency of the United States in conformity with contractual specifications.

6. A new motor vehicle that is purchased for resale and not for use by the purchaser.

C. In the department's information and education materials, the department shall include information relating to the process by which an individual may notify the department when the title to or an interest in a vehicle is transferred or assigned.

§ 28-2059 Obtaining a certificate of title; refusal; revocation

A. If satisfactory proof of ownership is furnished to the director, the director may issue a certificate of title for a motor vehicle, trailer or semitrailer whether or not a certificate of title has ever been issued for that motor vehicle, trailer or semitrailer.

B. If the director determines that an applicant for a certificate of title to a motor vehicle, trailer or semitrailer is not entitled to a certificate of title, the director may refuse to issue a certificate of title or to register the vehicle. The director may revoke a registration already acquired or an outstanding certificate of title. The director shall serve a notice of refusal to issue a certificate of title or vehicle registration or a notice of revocation of a certificate of title or registration in person or by first class mail. Within fifteen days after the date the notice is mailed or served, a person who is aggrieved by the refusal or revocation may request a hearing.

§ 28-2060 Transfer of ownership by operation of law

A. Except as provided in subsection F of this section, when the title or interest of an owner of a registered vehicle passes to another other than by voluntary transfer, the transferee shall obtain a transfer of registration within thirty days after the passing of the title or interest.

B. Within thirty days after passing of the title or interest of an owner of a registered or unregistered vehicle, the transferee of the vehicle shall obtain a new certificate of title on proper application and presentation of the last certificate of title, if available, and such instruments or documents of authority or certified copies of the instruments or documents that are sufficient or required by law to evidence or effect a transfer of title or interest in or to chattels that pass to another other than by voluntary transfer.

C. If a motor vehicle has been forfeited to the federal government and is sold at public auction pursuant to federal law, the purchaser at the sale takes title free of any liens or encumbrances if federal law so provides. If a motor vehicle has been forfeited to any local or state government entity, agency or political subdivision or to any federal law enforcement agency after the disposition of all claims under the laws of this state, the order of the court forfeiting the vehicle shall transfer good and sufficient title to the transferee and to any subsequent purchaser or transferee. The purchaser or transferee shall register the motor vehicle within thirty days after the sale or transfer, and the department shall issue a certificate of title to the purchaser or transferee on presentation of the evidence of title without any reference to liens or encumbrances.

D. The transferee of a vehicle required to have a certificate of title and be registered under section 28-2153 or a mobile home required to have a certificate of title under section 28-2063 may obtain a transfer of registration to the transferee and a new certificate of title if both of the following occur:

1. The title or interest of the owner of the vehicle passes to another either:

(a) Through notice and sale under the conditions contained in any security agreement, chattel mortgage, conditional sale or other evidence of lien or under the authority given by statute in cases arising under sections 33-1021 and 33-1022 or under section 33-1704.

(b) For a mobile home the lien on which is also a lien on real property, through a contract for conveyance of real property, deed of trust or mortgage.

2. Satisfactory evidence is presented to the director that the sale of the vehicle was fairly and lawfully conducted in conformity with all requirements of law after due notice to the former owner. In cases arising under section 33-1704, a declaration that is signed by both the seller and the buyer and that sets forth compliance with section 33-1704 constitutes satisfactory evidence, and the director may rely on that declaration.

E. Any administrator, executor, trustee or other representative of the owner, a peace officer or a person repossessing a vehicle under the terms of any conditional sales contract, lease, chattel mortgage or other security agreement or a purchaser at a sale foreclosing a lien, or the assignee or legal representative of any such person, may operate a vehicle from the place of repossession or place where it was formerly kept to a garage or place of storage in the county or state where the contract was recorded or where the person repossessing the vehicle resides or to any other garage or place of storage that is not more than seventy-five miles from the place of repossession or place where the vehicle was formerly kept by the owner if either of the following conditions exists:

1. The license plates assigned to the vehicle are displayed on the vehicle.

2. If license plates are not displayed, a written permit has been obtained from the department or the local authorities having jurisdiction over the highways and a placard that bears the name and address of the person authorizing the movement and that is legible from a distance of one hundred feet during daylight is displayed in plain sight on the vehicle.

F. If ownership of a motor vehicle for which a certificate of title has been issued in this state or another state reverts through operation of state law to a lienholder of record through repossession pursuant to the terms of a security agreement or through another similar instrument that is valid in such state, a repossession affidavit by the lienholder of record in this state or another state stating that the vehicle was repossessed on default of the terms stated in the security agreement or similar instrument is proof of ownership, right of possession and right of transfer by the lienholder of record. If the lienholder of record is licensed in this state as a financial institution as defined in section 28-4301, the lienholder of record shall electronically submit the repossession affidavit to the department. The director shall prescribe the form and content of the Arizona repossession affidavit. This state and its agencies, employees and agents are not liable for relying in good faith on the content of the repossession affidavit.

§ 28-2061 All-terrain vehicles; off-highway vehicles; off-road recreational motor vehicles; certificates of title; exemption

A. On the retail sale of a new all-terrain vehicle, off-highway vehicle as defined in section 28-1171 or off-road recreational motor vehicle, the dealer or person first receiving the motor vehicle from the manufacturer shall apply, on behalf of the purchaser, to the department for a certificate of title to the motor vehicle in the name of the purchaser. If satisfied that the application is genuine and regular and that the applicant is entitled to a certificate of title, the department shall issue a certificate of title to the motor vehicle without requiring registration for the motor vehicle.

B. A person who owns an all-terrain vehicle, off-highway vehicle as defined in section 28-1171 or off-road recreational motor vehicle shall apply for and obtain a certificate of title required by this section in the manner prescribed in this chapter. On the transfer of ownership of an all-terrain vehicle, off-highway vehicle as defined in section 28-1171 or off-road recreational motor vehicle for which a certificate of title is required by this section, a person shall apply for and obtain a new certificate of title in the manner prescribed in this chapter.

C. A person participating in an off-highway vehicle special event as defined in section 28-1171 is exempt from the requirements of this section.

§ 28-2062 Mobile home delinquent personal property tax list

A. The department shall prepare and maintain a list that identifies each prior year for which outstanding delinquent personal property taxes on mobile homes remain unpaid. The list shall contain:

1. The complete manufacturer's serial number, the brand name or model and the name of the manufacturer of each mobile home.

2. The name and address of the current owners.

3. The year of levy, the assessing county and one of the following unique identifying numbers:

(a) The taxpayer identification number.

(b) The tax roll identification number of the outstanding delinquent taxes for each mobile home.

4. Other information that the department may find necessary.

B. The department of revenue, each county assessor and each county treasurer shall provide such cooperation and information as the department of transportation requires in the preparation and maintenance of the listing required by subsection A.

C. The department shall provide each county assessor who acts as a registering officer for the department with copies of or access to the listing prepared pursuant to subsection A.

§ 28-2063 Mobile home certificate of title; exceptions; fee

A. The department shall issue a certificate of title for a mobile home that is customarily kept in this state and the fee required under section 28-2003 shall be paid except for:

1. A mobile home that is owned and held by a dealer solely for purposes of sale.

2. A mobile home that is owned and operated exclusively in the public service by the United States, by this state or by any political subdivision of this state, except that it shall have a certificate of title.

3. A mobile home that is permanently affixed, as defined in section 42-15201, and for which an affidavit of affixture has been recorded pursuant to section 33-1501. The owner shall surrender the original certificates of title or manufacturer's statements of origin to permanently affixed mobile homes to the department in the manner prescribed by the department. The department 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 issuance of a certificate of title for motor vehicles, except that in the case of a mobile home that consists of two or more separate sections, each section shall have a separate certificate of title.

C. A mobile home is subject to all applicable provisions of this title, except those relating to registration.

D. If a certificate of title is applied for on a mobile home entering this state for sale or installation, a certificate of compliance or waiver issued by the Arizona department of housing is required and shall be submitted with the certificate of title application.

§ 28-2064 Electronic certificates of title system; applicability; rules

A. The director may establish a system to require recording of certificate of title information for newly issued, transferred and corrected certificates of title, including perfection and release of security interests, through electronic media in a cost-effective manner in lieu of the submission and maintenance of paper documents as provided in this chapter. The director may contract with an association of new motor vehicle dealers to manage a lien recording system on behalf of the department at no cost to this state.

B. In the process of establishing the system, the director shall:

1. Establish procedures for issuing and maintaining an electronic certificate of title system that is applicable to all certificate of title transactions performed in this state.

2. Develop methods to electronically share information related to applications for certificates of title with law enforcement agencies and entities licensed under this title.

C. Section 28-444, subsection B applies to certificates of title under the system established pursuant to this section.

D. This section does not apply to certificates of title for mobile homes.

E. The director may adopt rules as necessary to implement this section, including the criteria for when the department may issue a paper certificate of title.

§ 28-2065 Electronic and digital signatures; documents

A. The director, in cooperation with a statewide association of franchised new motor vehicle dealers, shall establish a program to accept and use electronic or digital signatures.

B. In the process of developing the program, the director shall research and develop methods to allow the department, authorized third parties, licensed financial institutions, licensed insurers or any other business or individual as determined by the director to accept, exchange and use electronic or digital signatures for any document or for any transaction prescribed in this chapter and sections 28-370, 28-444, 28-453 and 28-5111.

C. The participants shall ensure that adequate security measures are in place to prevent any illegal use of the signatures or other information exchanged pursuant to this section.

D. The director may determine and require reimbursement from program participants for costs related to computer programming, hardware, development and personnel. The department shall deposit, pursuant to sections 35-146 and 35-147, all monies received pursuant to this section in a separate account of the state highway fund established by section 28-6991. Monies in the separate account are continuously appropriated. The director may transfer monies deposited pursuant to this subsection from the separate account to the operating budget of the department's motor vehicle division for the purpose of reimbursing the department's operating budget for expenditures made by the division pursuant to this section.

E. This section does not limit the use of electronic and digital signatures used by state agencies, boards or commissions pursuant to section 18-106.

F. The director may adopt rules necessary to implement this section.

Article 3 Salvage, Seizure and Dismantling of Vehicles

§ 28-2091 Salvage certificate of title; stolen vehicle certificate of title; nonrepairable vehicle certificate of title; recovered vehicles; violation; classification; definitions

A. If a vehicle that is subject to the issuance of a certificate of title or registration pursuant to this chapter becomes a salvage vehicle, stolen vehicle or nonrepairable vehicle and is acquired by an insurance company as a result of a total loss insurance settlement, the insurance company or its authorized agent shall submit an application, as determined by the insurance company or its authorized agent, to the department within thirty days after the certificate of title is properly assigned by the owner to the insurance company, with all liens released, on a form prescribed by the department for either a salvage certificate of title, stolen vehicle certificate of title or nonrepairable vehicle certificate of title. The selected certificate of title shall include all of the following:

1. A properly endorsed certificate of title except that a notarized signature on the certificate of title or on any supporting documents required for the transfer is not required.

2. A lien satisfaction, if applicable.

3. The appropriate fees.

B. Within thirty days after oral or written acceptance by the owner of an offer in settlement of total loss, if an insurance company or its authorized agent is unable to obtain the documents prescribed by subsection A, paragraphs 1 and 2 of this section, the insurance company or its authorized agent, on a form provided by the department, may submit an application to the department for a salvage certificate of title, stolen vehicle certificate of title or nonrepairable vehicle certificate of title. The application shall attest that the insurance company or its authorized agent has made two or more written attempts to obtain the documents prescribed by subsection A, paragraphs 1 and 2 of this section. The written attempts are required to be sent only to a lienholder or owner of a vehicle that has not provided the documents prescribed in subsection A, paragraphs 1 and 2 of this section. The application shall include the appropriate fees prescribed by subsection A, paragraph 3 of this section. The insurance company shall indemnify and hold harmless the department for any claims resulting from issuing a salvage certificate of title, stolen vehicle certificate of title or nonrepairable vehicle certificate of title pursuant to this subsection.

C. Except for vehicles registered pursuant to section 28-2482, 28-2483 or 28-2484, if the owner retains possession of a salvage vehicle or nonrepairable vehicle, the owner shall comply with this section before receiving a total loss settlement from the insurance company or otherwise disposing of the vehicle.

D. Any other owner of a vehicle that is a salvage vehicle or nonrepairable vehicle shall apply for a salvage certificate of title or nonrepairable vehicle certificate of title pursuant to this section.

E. On receipt of a proper application, the department shall issue a salvage certificate of title, stolen vehicle certificate of title or nonrepairable vehicle certificate of title for the vehicle.

F. If the department issues a nonrepairable vehicle certificate of title for a vehicle, the registration of the vehicle is cancelled. The front of a nonrepairable vehicle certificate of title shall be branded with the word "nonrepairable". The ownership of a vehicle for which a nonrepairable vehicle certificate of title has been issued shall not be reassigned more than two times on that certificate of title or a title transfer form. If a nonrepairable vehicle certificate of title is issued for a vehicle, the department shall not perform any title transfers or issue any further paper certificate of title for that vehicle.

G. An owner of a vehicle that is not a salvage vehicle who sells the vehicle as scrap or for purposes of dismantling or destroying shall assign the certificate of title or a title transfer form to the purchaser, and the purchaser shall comply with section 28-2094.

H. On sale of the vehicle, an owner of a salvage vehicle for which a salvage certificate of title has been obtained or an owner of a nonrepairable vehicle for which a nonrepairable vehicle certificate of title has been obtained shall assign and deliver the salvage certificate of title or nonrepairable vehicle certificate of title or a title transfer form to the purchaser and shall notify the department of the name and address of the purchaser.

I. Except as provided in subsection L of this section, the department shall issue a certificate of title to a vehicle that has been issued a salvage certificate of title or stolen vehicle certificate of title as a result of a total loss settlement by reason of theft if the vehicle is recovered and was not wrecked or stripped of essential parts and the insurance company or its authorized agent submits an affidavit to the department in a form prescribed by the department stating either of the following:

1. The vehicle is a recovered theft and both of the following:

(a) The vehicle was not wrecked or stripped of essential parts.

(b) To the insurance company's or its authorized agent's actual knowledge, no air bag or component part necessary to the proper function of the air bag system deployed in the vehicle or was removed from the vehicle.

2. The vehicle is a recovered theft and, to the insurance company's or its authorized agent's actual knowledge, an air bag or an air bag module deployed in the vehicle or was removed from the vehicle. The insurance company or its authorized agent shall list the location in the vehicle of each deployment or removal of an air bag or an air bag module.

J. On receipt of an affidavit submitted pursuant to subsection I, paragraph 2 of this section, the department shall mark its records to indicate the deployment or removal of the air bag or air bag module from the vehicle and the location of each deployment or removal.

K. The insurance company or its authorized agent shall give the purchaser of a vehicle that is a recovered theft, as described in subsection I of this section, a copy of the affidavit submitted pursuant to subsection I of this section.

L. If the vehicle is a recovered theft and components of the vehicle's air bag system, other than the air bag or the air bag module described in subsection I, paragraph 2 of this section, or other parts of the vehicle were removed compromising the functional integrity of the air bag system or the structural integrity of the vehicle, the insurance company or its authorized agent shall submit an affidavit to the department in a form prescribed by the department stating that the vehicle is a recovered theft and that components of the vehicle's air bag system, other than the air bag or the air bag module described in subsection I, paragraph 2 of this section, or other parts of the vehicle were removed compromising the functional integrity of the air bag system or the structural integrity of the vehicle. The department shall not issue a certificate of title to the vehicle but may issue a restored salvage certificate of title pursuant to section 28-2095 if all of the following apply:

1. The vehicle is repairable.

2. The department successfully completes a level three inspection as prescribed in section 28-2011.

3. The vehicle meets other requirements the director prescribes.

M. Except as provided in subsection N of this section, any person who sells a vehicle that is issued a certificate of title pursuant to subsection I of this section and who has actual knowledge that an air bag, an air bag module or components of the vehicle's air bag system compromising the functional integrity of the air bag system deployed or were removed from the vehicle shall not fail to disclose the deployment or removal to the buyer before completion of the sale with the intention of concealing the deployment or removal. A person who violates this subsection is guilty of a class 1 misdemeanor.

N. Subsection M of this section does not apply to either of the following:

1. An insurance company or its authorized agent who issues an affidavit pursuant to subsection I of this section unless the insurance company or its authorized agent intentionally fails to disclose the deployment or removal of an air bag, an air bag module or components of the vehicle's air bag system that compromise the functional integrity of the air bag system.

2. A person who owns a vehicle that is issued a certificate of title pursuant to subsection I of this section if the person repairs or replaces the air bag or air bag module in the vehicle.

O. Any person who sells a vehicle for which a salvage certificate of title has been issued and who knows a salvage certificate of title has been issued for the vehicle shall clearly and conspicuously disclose in writing or by electronic means to the buyer before completion of the sale that the vehicle is a salvage vehicle and has a salvage certificate of title.

P. If a vehicle that has a certificate of title as a salvage vehicle is to be scrapped, dismantled or destroyed, the owner or purchaser shall comply with section 28-2094.

Q. The provisions of this chapter that refer to certificates of title apply to salvage certificates of title, stolen vehicle certificates of title and nonrepairable vehicle certificates of title issued pursuant to this section unless they conflict with this section.

R. If a component part of a vehicle on which the vehicle identification number is affixed is to be replaced and if the vehicle is being repaired by a person other than its owner, the person shall notify the owner in writing and in the manner prescribed by the department that the part has been replaced, and the owner shall comply with section 28-2165. This subsection does not apply if the department has not issued a salvage certificate of title or a nonrepairable certificate of title and if the vehicle manufacturer or the manufacturer's authorized agent meets all of the following conditions:

1. The frame is the component part replaced.

2. The frame replacement is performed by the vehicle manufacturer or the manufacturer's authorized agent.

3. If the original frame contained a vehicle identification number or serial number, the original vehicle identification number or serial number, in a similar size and style, is restamped in the replacement frame by the manufacturer or the manufacturer's authorized agent.

4. Any existing manufacturer warranties remaining on the vehicle are not voided.

5. The manufacturer or the manufacturer's authorized agent obliterates all vehicle identification numbers or serial numbers contained on the original frame.

S. Except as otherwise provided, a person who violates this section is guilty of a class 2 misdemeanor.

T. For the purposes of this section:

1. "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.

2. "Nonrepairable vehicle" means a vehicle of a type that is otherwise subject to the issuance of a certificate of title and registration pursuant to this chapter and that either:

(a) Has no resale value except as a source of parts or scrap metal and the owner or insurer designates the vehicle solely as a source of parts or scrap metal.

(b) Is a completely stripped vehicle that is recovered from theft and that is missing the engine or motor, the transmission, all of the bolt-on sheet metal body panels, all of the doors and hatches, substantially all of the interior components and substantially all of the grill and light assemblies or that the owner designates has little or no resale value except its worth as a source of scrap metal or as a source of a vehicle identification number that could be used illegally.

(c) Is a completely burned vehicle that has been burned to the extent that there are no usable or repairable body or interior components, tires and wheels, engine or motor or transmission and that the owner irreversibly designates as having little or no resale value except as a source of scrap metal or as a source of a vehicle identification number that could be used illegally.

3. "Salvage vehicle" means a vehicle, other than a nonrepairable vehicle, of a type that is subject to the issuance of a certificate of title and registration pursuant to this chapter and that has been stolen, wrecked, destroyed, flood or water damaged or otherwise damaged to the extent that the owner, leasing company, financial institution or insurance company considers it uneconomical to repair the vehicle.

4. "Stolen vehicle certificate of title" means a vehicle ownership document issued to the owner of a vehicle that has been stolen and not recovered.

§ 28-2092 Vehicle seizure

Employees of the department and peace officers, as defined by section 1-215, may seize a vehicle:

1. From which the serial or other identification number or mark is removed, defaced, obliterated or changed unless either of the following:

(a) An application has been made to the department as provided in this article.

(b) All of the conditions prescribed in subdivision (c) of this paragraph are met.

(c) The vehicle is not a salvage vehicle and the department has not issued a salvage certificate of title or a nonrepairable certificate of title, and all of the following apply:

(i) The frame of the vehicle is the component part replaced.

(ii) The frame replacement is performed by the manufacturer or the manufacturer’s authorized agent.

(iii) If the original frame contained a vehicle identification number or serial number, the original vehicle identification number or serial number, in a similar size and style, is restamped in the replacement frame by the manufacturer or the manufacturer’s authorized agent.

(iv) Any existing manufacturer's warranty remaining on the vehicle has not been voided.

(v) The manufacturer or the manufacturer’s authorized agent obliterates all vehicle identification numbers or serial numbers contained on the original frame.

(vi) Notification of the frame replacement is entered onto the national insurance crime bureau database.

2. For which the registration or license plates are fictitious.

3. That is being dismantled, scrapped or destroyed by a person who does not have a dismantle certificate of title, nonrepairable vehicle certificate of title or salvage certificate of title issued to the person or if an application for any of those certificates of title has not been made.

4. If it is a salvage vehicle that is being reconstructed or repaired by a person who does not have in the person's possession a salvage certificate of title in the person's name or assigned to the person or a work or repair order signed by the owner or agent of the vehicle.

§ 28-2093 Sale of seized vehicles or motors; disposition of proceeds

A. If a vehicle or motor has been seized under this chapter and held for six months and the owner has not complied with the provisions of law under which the vehicle or motor was seized, including payment of all fees, penalties, costs and expenses of seizure, the director shall sell the vehicle or motor.

B. After thirty days the department may sell a motor vehicle, trailer or semitrailer seized and held for nonpayment of any fee, tax or other assessment or penalty on the vehicle that is due the department or for its account.

C. The department shall sell a motor vehicle, motor, trailer or semitrailer under this section at public auction after notice of the sale by certified mail, return receipt requested, at least five but not more than twenty days before the sale, directed to the last known address of the owner of the vehicle or motor, if the owner is known. If the owner is unknown, the department shall give notice by publication in a newspaper of general circulation in the county in which the vehicle or motor was seized. If notice is published in a weekly newspaper, the department shall publish it once each week for two consecutive weeks, or if notice is published in a daily newspaper, six consecutive times, the last publication to be at least five but not more than ten days before the date of the sale.

D. The department shall pay the proceeds from the sale, after the fees, penalties, costs and expenses of seizure and sale are deducted, to the owner from whom the vehicle or motor was seized, if the owner is known. If the owner is unknown, the department shall deposit, pursuant to sections 35-146 and 35-147, the proceeds in the Arizona highway user revenue fund.

§ 28-2094 Dismantling motor vehicle; application fee; certificate of title; exemption

A. An owner who sells a motor vehicle, trailer or semitrailer as scrap or for dismantling or destroying shall assign the certificate of title or title transfer form of the vehicle to the purchaser. The purchaser shall deliver the following to the department:

1. An application for a dismantle certificate of title to scrap, dismantle or destroy the vehicle.

2. The certificate of title or title transfer form of the vehicle purchased.

3. The registration card of the vehicle.

4. The license plate of the vehicle, if any.

5. A fee of four dollars.

B. An owner who intends or desires to dismantle a vehicle shall first forward all of the following to the department:

1. An application for a dismantle certificate of title to dismantle or wreck the vehicle.

2. The certificate of title or title transfer form of the vehicle.

3. The registration card of the vehicle.

4. The license plate of the vehicle, if any.

5. A fee of four dollars.

C. If the registration card or license plate is lost or destroyed, the applicant shall state in a form prescribed by the department under penalty of perjury the circumstances of the loss or destruction. On receipt of the documents and fee required by this section, the department shall issue a dismantle certificate of title to the applicant to dismantle or destroy the vehicle. The dismantle certificate of title or title transfer form authorizes the person to transport or possess the vehicle or to transfer ownership by endorsement on the dismantle certificate of title or title transfer form. The department shall not issue a certificate of title for the vehicle if it is dismantled or destroyed.

D. A licensed automotive recycler who files with the application for a dismantle certificate of title under this section an Arizona certificate of title indicating that the vehicle is free of all liens or a valid release of any liens shown on the certificate of title may begin dismantling the vehicle five days after mailing or three days after delivery of the required documents and fee to the department unless notified by the department of the claim of lien or interest in the vehicle by some other person. If the department sends this notice, the licensed automotive recycler shall cease dismantling or sale of the vehicle and any of its parts until the rights of the other person are determined.

E. A licensed automotive recycler may dismantle a vehicle without obtaining a dismantle certificate of title in the licensed automotive recycler's name if the vehicle has previously been issued a dismantle certificate of title, a salvage certificate of title or a nonrepairable vehicle certificate of title. The dismantle certificate of title, salvage certificate of title or nonrepairable vehicle certificate of title must be the current title of record. An automotive recycler shall file a written request to dismantle the vehicle in a form prescribed by the department. The automotive recycler may begin dismantling the vehicle after mailing or delivering the request. If the department notifies the automotive recycler of a claim of lien or interest in the vehicle by some other person, the automotive recycler shall cease dismantling or sale of the vehicle and any of its parts until the rights of the other person are determined.

F. An owner may dismantle a vehicle without obtaining a dismantle certificate of title if a nonrepairable vehicle certificate of title has been issued for the vehicle.

G. The director may adopt rules to implement this section.

H. This section does not apply to the removal of a part for the purpose of replacement.

§ 28-2095 Restored salvage certificate of title; inspections; definitions

A. If a salvage vehicle as defined in section 28-2091 is rebuilt or restored to operation, the owner of the motor vehicle shall not transfer the motor vehicle until a restored salvage certificate of title has been issued pursuant to this section.

B. On application for a restored salvage certificate of title, the department shall conduct a level two or level three inspection of the vehicle that is the subject of the application to determine its proper identity pursuant to section 28-2011. The inspection may include a review of bills of sale and invoices for component parts used in the reconstruction process. If the department is unable to conduct a level three inspection for a restored salvage certificate of title within twenty days after a request is made, the department shall conduct an inspection of the vehicle within forty-eight hours after the twenty day period.

C. The seller or agent of a seller of a salvage vehicle as defined in section 28-2091 shall inform the purchaser of a salvage vehicle that ownership documentation for certain replacement parts used in the repair of the salvage vehicle is required in connection with the inspection prescribed by this section.

D. A person who possesses a salvage vehicle as defined in section 28-2091 and who submits it for inspection as prescribed by this section shall submit to the department paperwork that is satisfactory to the director. Satisfactory paperwork may include copies of invoices, notarized bills of sale or other acceptable proof of ownership for component parts.

E. If proper ownership documentation for a component part is not submitted as required by this section, the department may seize the component part.

F. If the department finds a stolen component part in a vehicle while conducting an inspection provided for under this section, the department shall seize the component part pursuant to section 28-4594.

G. The department shall deposit, pursuant to sections 35-146 and 35-147, any proceeds resulting from the seizure and forfeiture of a component part pursuant to subsection E or F of this section in the vehicle inspection and certificate of title enforcement fund established by section 28-2012.

H. Any person who sells a vehicle for which a restored salvage certificate of title has been issued and who knows a restored salvage certificate of title has been issued for the vehicle shall clearly and conspicuously disclose in writing or by electronic means to the buyer before completion of the sale that the vehicle is a restored salvage vehicle and has a restored salvage certificate of title.

I. For the purposes of this section:

1. For passenger vehicles, "component parts" includes the cowl or firewall, front end assembly, rear clip, including the roof panel, the roof panel if installed separately and the frame or any portion of the frame, or in the case of a unitized body, the supporting structure that serves as the frame, each door, the hood, each fender or quarter panel, the deck lid or hatchback, each bumper, transmissions or transaxles and an engine or motor. For the purposes of this paragraph:

(a) "Front end assembly" includes the hood, fenders, bumper, radiator and supporting members for these items. For vehicles with a unitized body, the front end assembly also includes the frame support members.

(b) "Rear clip" includes the roof, quarter panels, trunk lid, floor pan, rear bumper and support members for these items.

2. For trucks or truck-type or bus-type vehicles, "component parts" includes the cab, the frame or any portion of the frame, and in the case of a unitized body, the supporting structure that serves as a frame, the cargo compartment floor panel, the passenger compartment floor pan, the roof panel, transmissions or transaxles, engines or motors, each door, the hood, each fender or quarter panel, each bumper, the tailgate and all component parts that are included in paragraph 1 of this subsection and that are not listed in this paragraph if the part is replaced.

3. For motorcycles, "component parts" includes the engine or motor, transmission or transaxle, frame, front fork, crankcase and fairing and any other body molding.

4. "Restored salvage vehicle" means a vehicle that has been restored and for which a salvage certificate of title or a dismantle certificate of title has been issued.

§ 28-2096 Flood or water damaged vehicles

A. If a vehicle from a foreign jurisdiction has a flood or water damage branded certificate of title, the department may issue a certificate of title for that vehicle that contains a flood or water damage brand.

B. If the department determines that a flood or water damaged vehicle is actually a total loss insurance settlement vehicle, the department may issue:

1. A flood or water damage salvage certificate of title for the vehicle pursuant to section 28-2091.

2. If a vehicle with a flood or water damage salvage certificate of title is rebuilt or restored to operation, a flood or water damage restored salvage certificate of title pursuant to section 28-2095.

C. If a vehicle has been issued a certificate of title that contains a flood or water damage brand, on application for a dismantle or nonrepairable vehicle certificate of title for that vehicle, the department may issue a flood or water damage dismantle or nonrepairable vehicle certificate of title for that vehicle.

§ 28-2097 Modular motor homes; definition

A. Notwithstanding any other provision of this title:

1. If a refurbished coach or body component is remounted to a new cab and chassis power unit of a modular motor home, the department shall issue a certificate of title for the modular motor home according to the make of the refurbished coach. The manufacturer's cab and chassis vehicle identification number determines the model year. The department shall conduct a level one inspection of the vehicle and shall brand the certificate of title refurbished.

2. If a modular motor home is separated by removal of the coach or body component from the cab and chassis power unit and a cargo box, container or structure, if any, other than a motor home coach, is fitted to the cab and chassis unit, it ceases to be a modular motor home. The department shall conduct a level one inspection and shall issue a certificate of title for the vehicle according to the body style determined by the inspection. The department shall use the make and model year of the cab and chassis for the purpose of issuing a certificate of title and shall brand the certificate of title refurbished.

B. If a vehicle covered by this section is offered for sale, a person who sells the vehicle shall keep full and complete disclosure statements and present those statements to any person or entity that requests them at the time of a sale or purchase. For the purposes of this subsection, full and complete disclosure statements are documents that accurately reflect the history of the original manufacturer's cab and chassis, including vehicle identification numbers, dates of required inspections, odometer readings and other information prescribed by the director in rules.

C. For the purposes of this section, "modular motor home" means:

1. A type of motor home that is primarily designed as temporary living quarters, that satisfies the requirements prescribed in section 28-4301, paragraph 19, subdivision (b) and that is intended from inception through final assembly to consist of an incomplete cab and chassis power unit component and a coach or body component that are designed and engineered to be joined or separated without sheet metal modifications to the cab and chassis power unit component.

2. A vehicle that if joined to form a single unit consists of both:

(a) A cab and chassis power unit component that is purchased or acquired new from an original manufacturer.

(b) A coach or body component that is either purchased or acquired new from an original manufacturer or that is refurbished.

§ 28-2098 Vehicle sales; no certificate of title; violation; classification; penalties

A. Notwithstanding any other law, a registered scrap metal dealer or a licensed automotive recycler may purchase a vehicle without obtaining a certificate of title if the scrap metal dealer or automotive recycler complies with subsection B of this section, the transactional value of the vehicle does not exceed $1,200, the vehicle is at least twelve model years old and the owner does not have the paper certificate of title to the vehicle for any of the following reasons:

1. The owner or the owner's authorized agent has not obtained a title in the owner's or agent's name for the vehicle.

2. The owner has lost the paper certificate of title for the vehicle.

3. The owner has returned the title to the department. If this paragraph applies, a vehicle may be transferred to only a scrap metal dealer or an automotive recycler.

B. For purchases under this section, the registered scrap metal dealer or licensed automotive recycler shall do all of the following:

1. Take a picture at the time of the transaction of all of the following:

(a) The owner.

(b) The vehicle.

(c) The vehicle's vehicle identification number or federal identification sticker.

2. Pay for the vehicle with a check and not with cash.

3. Obtain a statement that contains all of the information required by subsection C of this section, that is signed by the owner and that affirms the conditions prescribed in subsection A of this section.

C. When the department is able to accept an electronic form, the statement prescribed by subsection B of this section shall be submitted electronically in a form that is prescribed by the department and shall contain all of the following:

1. A statement that the vehicle will not be titled again and will be dismantled or scrapped.

2. A description of the vehicle, including the year, make, model and vehicle identification number.

3. The owner's name and address and the number from the owner's driver license, nonoperating identification license issued pursuant to section 28-3165 or photo identification card issued by a tribal government or the United States military.

4. A certification that the owner either:

(a) Never obtained a title to the vehicle in the owner's name.

(b) Was issued a title for the vehicle and the title was lost or stolen.

(c) Has returned the title to the department.

5. A certification that the vehicle is both of the following:

(a) At least twelve model years old.

(b) Not subject to a security interest or lien.

6. An acknowledgment that the owner and the scrap metal dealer or automotive recycler understand that the statement required by this subsection will be filed with the department and that it is a class 1 misdemeanor to knowingly falsify any information on the statement.

7. The owner's signature and the date of the transaction.

8. The name and address of the business acquiring the vehicle.

9. The national motor vehicle title information system identification number.

10. A business agent's signature and date, including the agent's printed name and title if the agent is signing on behalf of a corporation.

D. A registered scrap metal dealer or licensed automotive recycler that purchases a vehicle under this section:

1. Shall maintain a photocopy or electronic scan of the owner's driver license, nonoperating identification license issued pursuant to section 28-3165 or photo identification card issued by a tribal government or the United States military.

2. May maintain a copy of the owner's photo identification and reference that photo identification without making a separate photocopy for each transaction for subsequent purchases.

3. Shall hold the vehicle at least three business days after the date that the registered scrap metal dealer or licensed automotive recycler reports the purchase pursuant to subsection I of this section before the registered scrap metal dealer or licensed automotive recycler may crush, dismantle or shred the vehicle.

E. The department may develop an electronic system for a registered scrap metal dealer or a licensed automotive recycler to verify at the time of a transaction that a motor vehicle offered for sale has not been reported stolen.

F. Before purchasing a motor vehicle under this section, a registered scrap metal dealer or a licensed automotive recycler shall verify that the motor vehicle offered for sale has not been reported stolen. In addition to submitting information to the department pursuant to this section and the national motor vehicle title information system as required by 28 Code of Federal Regulations part 25, subpart B, after the department develops an electronic verification system pursuant to this section, a registered scrap metal dealer or a licensed automotive recycler shall verify that a vehicle is not stolen by using the electronic verification system before purchasing a vehicle without a certificate of title. If the electronic verification system indicates that the vehicle is stolen, the registered scrap metal dealer or licensed automotive recycler may not purchase the vehicle and shall report the findings to a law enforcement agency. A registered scrap metal dealer or a licensed automotive recycler is not required to apprehend a person that attempts to sell a motor vehicle that was reported stolen.

G. A registered scrap metal dealer or a licensed automotive recycler must use a department vehicle lien or encumbrance database that is in place on February 1, 2018 or a comparable database to check for liens or encumbrances on vehicles purchased under this section if the database substantially complies with section 28-2134 which requires the release of a satisfied lien.

H. A person who knowingly gives false, fraudulent or erroneous information in connection with the signed statement prescribed in subsection B of this section, who falsely certifies the truthfulness and accuracy of information supplied in connection with the statement or who knowingly sells a vehicle that is subject to an unsatisfied lien is guilty of a class 1 misdemeanor and shall pay a fine of $2,500.

I. Within forty-eight hours after the close of business each day, a registered scrap metal dealer or licensed automotive recycler that purchases or receives vehicles for scrap or for parts shall report to the national motor vehicle title information system a list of each vehicle purchased that day for scrap or for parts. The list shall contain all of the following:

1. The name, address and contact information for the reporting entity.

2. The vehicle identification number.

3. The date that the vehicle was obtained.

4. The name of the person from whom the vehicle was obtained.

5. Whether the vehicle was or will be crushed, disposed of or offered for sale or other purposes.

6. Whether the vehicle will be exported out of the United States.

7. The national motor vehicle title information system identification number of the business acquiring the vehicle.

J. Each reporting entity shall retain all statements and records required under subsection B of this section for a period of two years. A registered scrap metal dealer and a licensed automotive recycler shall print a form or maintain an electronic record to show that the registered scrap metal dealer or licensed automotive recycler completed a search on the department's electronic system to verify that a vehicle that the registered scrap metal dealer or licensed automotive recycler purchases pursuant to this section is not stolen. The form must contain the vehicle's vehicle identification number and the date on which the search was conducted. The registered scrap metal dealer and licensed automotive recycler must electronically retain the form or electronic record for at least five years. The department must retain records of searches on the department's electronic system pursuant to this section as specified in its record retention schedule.

K. A person who engages in the activities of a scrap metal dealer or an automotive recycler, whether or not registered or licensed as such, and who knowingly and wilfully fails to deliver a vehicle title pursuant to section 28-2094 or the statement required under subsection B of this section to the department or to report vehicle information described in subsection I of this section to the national motor vehicle title information system within forty-eight hours after the completion of a transaction is in violation of this section and is subject to a civil penalty of up to $1,000 per violation. A local or state law enforcement agency, a county attorney or the attorney general may bring an action in any court of competent jurisdiction to enforce this section. Any civil penalties assessed shall be deposited as follows:

1. Fifty percent shall be deposited, pursuant to sections 35-146 and 35-147, in the state highway fund established by section 28-6991.

2. Fifty percent shall be deposited, pursuant to sections 35-146 and 35-147, in the automobile theft authority fund established by section 41-3451.

L. The seller of material from scrap vehicles shall certify to the purchaser that all scrap vehicles used for the material in the sale have been properly reported to the department or the national motor vehicle title information system.

M. Notwithstanding any other law, only this title governs the purchase by a scrap metal dealer of a vehicle solely for the purpose of processing the vehicle into a scrap vehicle or into prepared grades of scrap metal as defined in section 44-1641.

Article 4 Vehicle Liens and Encumbrances

§ 28-2131 Liens and encumbrances; validity

The following, other than a lien dependent on possession, are not valid against the creditors of an owner acquiring a lien by levy or attachment or against subsequent purchasers or encumbrancers without notice until the requirements of this article are met:

1. Any security agreement, conditional sale contract, conditional lease, chattel mortgage or other lien or encumbrance.

2. A certificate of title retention instrument or any other instrument affecting or evidencing title to, ownership of or reservation of title to a vehicle required to be issued a certificate of title and registered under section 28-2153 or a mobile home required to be issued a certificate of title under section 28-2063.

3. A contract for conveyance of real property, deed of trust or mortgage securing a lien on a mobile home and on real property.

§ 28-2132 Indication of lien or encumbrance

A. The department shall provide on the application for a certificate of title and the application for registration only a section that provides for the indication of a lien or encumbrance on the vehicle.

B. The applicant's signature on the application for a certificate of title or the application for registration only is consent for the lien or encumbrance to be indicated by the department on its official certificate of title record for the vehicle.

C. Except as provided in subsection D of this section and on receipt of the application as provided in this section, the department shall endorse on the application the date and hour it was received at the registering office of the department.

D. The department shall not issue a new certificate of title if the outstanding certificate of title indicates an existing lien or encumbrance unless the lien or encumbrance has been satisfied or the lienor or encumbrancer has consented in writing or electronically to the transfer of title.

§ 28-2133 Index and filing of liens, encumbrances or instruments; constructive notice

A. The department shall maintain an appropriate index of all liens, encumbrances or title retention instruments filed as provided by this article.

B. The filing and issuance of a new certificate of title as provided in this article is constructive notice to creditors of the owner or to subsequent purchasers of all liens and encumbrances against the vehicle described in the certificate of title, except those that are authorized by law and that are dependent on possession. If the documents referred to in this article are delivered to a registering office or an authorized third party provider of the department within thirty days after the date of their execution, the constructive notice dates from the time of execution. Otherwise, the notice dates from the time of receipt and filing of the documents by the department as shown by its endorsement. For the purposes of this subsection, the time stamp on the documents that is administered by the registering officer or authorized third party provider of the department electronically or otherwise is conclusive as to the time and date of delivery of the documents.

C. The method provided in subsection B of this section for giving constructive notice of a lien or encumbrance on a vehicle required to be issued a certificate of title and registered under section 28-2153 or a mobile home required to be issued a certificate of title under section 28-2063 is exclusive, except for liens dependent on possession. A lien, encumbrance or title retention instrument or document that evidences any of them and that is filed as provided by this article is exempt from the provisions of law that otherwise require or relate to the recording or filing of instruments creating or evidencing title retention or other liens or encumbrances on vehicles of a type subject to registration under this chapter.

D. Notwithstanding any other law and except as otherwise provided in this subsection, the failure of a motor vehicle dealer as defined in section 28-4301, a finance company or the department to complete the paperwork within thirty days as prescribed in subsection B of this section shall not result in the loss of the vehicle for either the lienholder or the person who purchased the vehicle. This subsection does not limit or negate the powers of a trustee under 11 United States Code section 547 or any successor statute.

§ 28-2134 Satisfaction of lien or encumbrance; assignment of obligation by lienholder; civil penalty

A. When a holder of a lien or encumbrance receives payment in full satisfying a lien or encumbrance recorded under this article, the holder of the lien or encumbrance shall release the lien or encumbrance and notify the owner of the vehicle at the address shown on the certificate of title or, if the holder of the lien or encumbrance has been previously notified of sale or transfer of the vehicle, the person who is legally entitled to possession that the department has issued a certificate of title to the person for the vehicle.

B. If a holder of a lien or encumbrance assigns the obligation and the holder lawfully has possession of the certificate of title, the holder shall deliver the certificate of title at the time of assignment to the holder's assignee. If a holder of a lien or encumbrance is not entitled to possession of the certificate of title when the holder assigns the obligation, the holder shall immediately deliver the certificate of title to the assignee when the holder becomes lawfully entitled to and obtains lawful possession of the certificate of title. The holder's assignee is entitled to hold the certificate of title until the obligation is satisfied. When the obligation is satisfied, the assignee shall deliver the certificate of title to the next holder of a lien or encumbrance entitled to possession of the certificate of title or, if there is not another holder of a lien or encumbrance entitled to possession of the certificate of title, to the owner of the vehicle as prescribed in subsection A of this section.

C. If a holder of a lien or encumbrance who possesses a certificate of title as provided in this article refuses or fails to surrender the certificate of title to the person who is legally entitled to possession of the certificate of title on that person's request and within fifteen business days after the holder receives payment in full satisfaction of the holder's lien or encumbrance, after an opportunity for an administrative hearing, the department may impose and collect a civil penalty from the holder of the lien or encumbrance to be deposited, pursuant to sections 35-146 and 35-147, in the state highway fund established by section 28-6991 as follows:

1. Fifty dollars if the certificate of title is surrendered in accordance with this subsection within three additional business days.

2. The penalty provided for in paragraph 1 of this subsection plus fifty dollars for each additional day exceeding eighteen business days that the certificate of title is not surrendered in accordance with this subsection up to a maximum of five hundred dollars for each certificate of title.

D. The department may satisfy a lien or encumbrance on its records and on a certificate of title to a vehicle if the owner of the vehicle furnishes satisfactory proof of the payment in full of the underlying debt and an affidavit stating the following:

1. That the owner has made a diligent search to locate the holder of the lien or encumbrance.

2. With particularity the steps taken in the search.

3. That after the search the holder of the lien or encumbrance could not be found.

E. The department may satisfy a lien or encumbrance against a vehicle on its records by accepting a certificate of title to the vehicle issued by another jurisdiction if all of the following conditions exist:

1. The lien previously recorded in this state does not appear on the title presented from another jurisdiction.

2. The certificate of title was issued by the other jurisdiction at least one year before the time it was presented to this state.

3. The law of the other jurisdiction requires a lien or encumbrance to be recorded on that state's certificate of title.

§ 28-2135 Perfection of security interest in inventory and mobile homes

Notwithstanding any other provision in this article:

1. A security interest in inventory, as defined in section 47-9102, consisting in whole or in part of vehicles required to be issued a certificate of title and registered under section 28-2153 or of mobile homes shall be perfected in accordance with the filing provisions of title 47, chapter 9, article 5 to the extent that those provisions are applicable by virtue of title 47, chapter 9, article 3.

2. A lien on a mobile home for which an affidavit of affixture has been recorded pursuant to section 42-15203 shall be perfected either according to the laws governing perfection of liens on real property or according to the laws governing perfection of security interests in fixtures.

§ 28-2136 Unsatisfied liens

A. Except as provided in subsection B of this section, the department may remove from its records a lien on a vehicle required to be issued a certificate of title and registered under section 28-2153 if the lien remains on the records of the department as unsatisfied twelve years after filing with the department.

B. This section applies only to noncommercial vehicles other than travel trailers, motor homes or mobile homes.

§ 28-2137 Restitution lien; removal

A. Notwithstanding section 28-2132, after a hearing, the director may remove a restitution lien filed pursuant to section 13-805 or 13-806 from a vehicle record if the director finds both of the following:

1. A person purchased the vehicle without any knowledge that the vehicle was subject to a filed restitution lien.

2. The person who sold the vehicle is an obligor under a filed restitution lien and sold the vehicle without disclosing to the purchaser that the vehicle was subject to a filed restitution lien.

B. If a restitution lien is removed as prescribed in subsection A of this section, the department shall place a code on the obligor's record that automatically restores the restitution lien on any vehicle that is subsequently issued a certificate of title or registered, or both, by the obligor.

C. If the lien, or any portion of the lien, was the result of an order to pay restitution, the party for whom restitution was ordered shall be provided with notice of any hearing held pursuant to this section and an opportunity to appear. The department shall provide notice of the hearing to the governmental agency that requested the lien be placed on the obligor's record. The governmental agency that requested the lien shall promptly provide notice to any party for whom restitution was ordered.

§ 28-2138 Return of a motor vehicle that is subject to a security interest; suspended registration and license plate

A. A person must return a motor vehicle that is subject to a security interest if all of the following apply:

1. The person fails to make a payment on the lien for more than ninety days.

2. The secured creditor notifies the owner in writing, by certified mail return receipt requested, that the owner is ninety days late in making a payment and is in default. The notice shall include the following:

(a) A statement stating:

You are now in default on loan agreement #____________. If you fail to return the _____________________ (year of vehicle, make, model) within thirty days, the motor vehicle's registration and assigned license plate will be suspended.

(b) The business address and hours of operation for return of the motor vehicle.

(c) The maximum penalties for failing to return a motor vehicle that is subject to a security interest.

3. The owner fails to cure the default within thirty days.

4. With the intent to hinder or prevent the enforcement of the secured creditor's security interest, the owner knowingly fails to do either of the following:

(a) Return the motor vehicle to the secured creditor.

(b) Allow the secured creditor to take possession of the motor vehicle.

B. The original contract creating the security interest in the motor vehicle shall contain the following information:

1. A statement that the person must return a motor vehicle that is subject to a security interest within thirty days after receiving notice of default.

2. A statement that notice of default will be mailed to the address on the loan agreement and that it is the responsibility of the owner to keep the listed address current.

3. The maximum penalty for failing to return a motor vehicle that is subject to a security interest.

C. Subsection A of this section does not apply if any of the following conditions exists:

1. The owner was physically incapacitated and unable to request or obtain permission of the secured creditor to retain the motor vehicle.

2. The motor vehicle itself was in a condition, through no intentional fault of the owner, that it could not be returned to the secured creditor within the specified time and the owner has notified the secured creditor of the condition of the motor vehicle.

3. The owner has a security interest pursuant to section 47-2711, subsection C.

D. If a law enforcement agency seizes the motor vehicle, the secured creditor shall be responsible for all towing, storage and related fees or charges.

E. If a person does not return a motor vehicle pursuant to this section, the secured creditor may file an affidavit with the department stating that the person has not returned a motor vehicle that is subject to a security interest pursuant to this section. On receipt of the affidavit, the department shall immediately suspend the registration of, and any license plate assigned to, the motor vehicle. The department may not transfer the motor vehicle's suspended registration or license plate or reregister the motor vehicle until the secured creditor notifies the department that the motor vehicle is recovered.

Article 5 Registration Requirements Generally

§ 28-2151 Registration by mail; postage fund

A. The director 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 director may establish a postage fund and charge the estimated costs incurred under this section for transmitting renewal notices to applicants. The director may transfer monies in the director's postage fund annually and use the monies as provided in section 28-6993, subsection C.

§ 28-2152 Registration in county of residence; violation; classification; civil penalty; fee transfer

A. A person who registers a motor vehicle belonging to the person or leased to the person in a county other than the county where the person maintains the person's permanent and actual residence or at a place within the county that is outside the vehicle emissions control area with intent to evade title 49, chapter 3, article 5 is guilty of a class 2 misdemeanor and is subject to a fine of no more than one hundred dollars.

B. A lessee of a vehicle titled in the name of a lessor shall register the vehicle in the county where the lessee resides. The lessee shall provide documentation satisfactory to the director that the person is the lessee of the vehicle and resides in the county in which the person applies for registration of the vehicle.

C. A person who registers a motor vehicle belonging to the person or leased to the person in a county other than the county where the person maintains the person's permanent and actual residence or at a place within the county that is outside the vehicle emissions control area is responsible for a civil violation and is subject to a civil penalty of no more than one hundred dollars.

D. A county assessor who registers a motor vehicle illegally for a person not residing in the county shall transfer monies collected and retained by the county in connection with the registration to the county assessor of the county of the person's permanent and actual residence.

§ 28-2153 Registration requirement; exceptions; assessment; violation; classification

A. A person shall not operate, move or leave standing on a highway a motor vehicle, trailer or semitrailer unless the motor vehicle, trailer or semitrailer has been registered with the department for the current registration year or is properly registered for the current registration year by the state or country of which the owner or lessee is a resident.

B. A resident shall not operate, move or leave standing on a highway a motor vehicle, trailer or semitrailer that is:

1. Owned by a nonresident and that is primarily under the control of a resident of this state for more than seven months unless the motor vehicle, trailer or semitrailer has been registered with the department for the current registration year.

2. Leased by the resident for more than twenty-nine days unless the motor vehicle, trailer or semitrailer has been registered with the department for the current registration year.

C. This section applies to a trailer or semitrailer without motive power unless the vehicle is disabled or is being towed as an abandoned vehicle at the direction of a law enforcement agency.

D. This section does not apply to:

1. A farm tractor.

2. A trailer used solely in the operation of a farm for transporting the unprocessed fiber or forage products of a farm or any implement of husbandry designed primarily for or used in agricultural operations and only incidentally operated or moved on a highway.

3. A road roller or road machinery, including a power sweeper, that is temporarily operating or moved on the highway.

4. An owner permitted to operate a vehicle under special provisions relating to lienholders, manufacturers, dealers and nonresidents.

5. Motorized or nonmotorized equipment designed primarily for and used in mining operations and only incidentally operated or moved on a highway.

6. A motor vehicle that is being towed by a tow truck that has been registered and for which a permit has been obtained pursuant to section 28-1108.

7. A golf cart used in the operation of a golf course or only incidentally operated or moved on a highway.

8. Wheeled equipment. For the purposes of this paragraph, "wheeled equipment" means:

(a) A compressor.

(b) A forklift or a hay squeeze machine that is designed to load hay in an off-road situation.

(c) A portable cement mixer.

(d) A single axle tow dolly.

(e) A tar pot.

(f) A water trailer used for watering livestock or for agricultural or domestic purposes.

(g) A welder.

(h) Any other similar item designed and used primarily for construction or building trade purposes.

9. An all-terrain vehicle or an off-road recreational motor vehicle operating on a dirt road that is located in an unincorporated area of this state. For the purposes of this paragraph, "dirt road" means an unpaved or ungraveled road that is not maintained by this state or a city, town or county of this state.

10. A person operating an off-highway vehicle who is participating in an off-highway vehicle special event as defined in section 28-1171.

11. An all-terrain vehicle or an off-highway vehicle as defined in section 28-1171 that is only incidentally operated or moved on a highway.

E. A person who owns or operates a trailer that is exempt from registration pursuant to subsection D, paragraph 2 of this section shall notify the county assessor of the exemption, and the assessor shall assess the trailer. A person who violates this subsection is guilty of a class 2 misdemeanor.

§ 28-2154 Special registrations

A. A nonresident who purchases an unregistered vehicle in this state for removal to the state of residence of the purchaser shall obtain a special ninety day nonresident registration permit for the vehicle. The nonresident shall obtain the special ninety day nonresident registration permit by applying to the department, to an authorized third party or to a motor vehicle dealer as defined in section 28-4301 and by paying the fees prescribed by section 28-2003. Unless the nonresident purchaser has completed a form prescribed by section 42-5009, subsection H, an affidavit in a form prescribed by the director shall accompany the application and shall contain the following statements:

1. The purchaser is not a resident of this state as defined in section 28-2001. For the purposes of this section and section 28-2154.01, the purchaser shall present to the department, an authorized third party or a motor vehicle dealer a driver license or other evidence prescribed by the director showing that the purchaser is not a resident of this state.

2. The vehicle is purchased to be registered out of state within ninety days after the issuance of the special ninety day nonresident registration permit.

3. The vehicle is not purchased for transfer to a resident of this state.

4. Other information that the director deems necessary.

B. At the time of application for a special ninety day nonresident registration permit, the purchaser shall submit for inspection proper evidence of ownership of the vehicle to be registered. The special ninety day nonresident registration permit is valid for not more than ninety days from the date of issuance and shall be in the form prescribed by the director. A person who obtains a special ninety day nonresident registration permit on a semitrailer that has been manufactured in this state may use the semitrailer for commercial purposes if the semitrailer is being used to transport goods from this state, subject to the payment of any taxes prescribed by this title.

C. An enrolled member of an Indian tribe who resides on the Indian reservation established for that tribe and who purchases an unregistered vehicle in this state for removal to the Indian reservation shall obtain a special ninety day nonresident registration permit for the vehicle. The member may obtain the special ninety day nonresident registration permit by applying to the department, to an authorized third party or to any motor vehicle dealer as defined by section 28-4301 and by payment of the fees prescribed by section 28-2003.

D. A resident who does not have complete documentation for issuance of an Arizona title and registration on a noncommercial vehicle but who has established ownership of the vehicle to the satisfaction of the department may receive a special ninety day resident registration by applying and paying the fee prescribed by section 28-2003 to the department. The basis of assessment for the full annual registration fee and vehicle license tax relates back to the date of issuance of the first special ninety day resident registration.

E. A resident may receive a second consecutive special ninety day resident registration on application and payment of the fee prescribed by section 28-2003 if:

1. The person has applied for a bonded title and the title has not been issued during the first ninety day registration.

2. The person is awaiting settlement of an estate.

3. The person is awaiting lien clearance.

4. The person is awaiting a hearing decision as a result of a title complaint.

5. The person is awaiting the issuance of honorary consular official special license plates.

6. The director determines other circumstances justify the issuance.

F. At the discretion of the director, a resident may receive more than two consecutive special ninety day resident registrations for a vehicle in a twelve month period.

G. If there is a judgment against a resident of this state in another state that requires suspension of the resident's vehicle registration, in lieu of suspension of the resident's vehicle registration the department may issue a special temporary registration for the resident's vehicle that is valid for a period of not more than one hundred eighty days.

§ 28-2154.01 Special ninety day nonresident registration permits; procedures

A. A dealer or an authorized third party that issues a special ninety day nonresident registration permit pursuant to section 28-2154 shall send an electronic record of the permit to the department through an authorized third party or through the department's authorized third-party electronic service provider.

B. The department, an authorized third party or a dealer shall not:

1. Issue, assign or deliver a special ninety day nonresident registration permit to any person unless the person does all of the following:

(a) Obtains the special ninety day nonresident registration permit pursuant to section 28-2154.

(b) Completes an affidavit in a form prescribed by the director pursuant to section 28-2154 or completes a form prescribed by section 42-5009, subsection H.

(c) Presents to the department, authorized third party or motor vehicle dealer a current valid driver license issued by another state indicating an address outside of this state.

(d) Provides any other information reasonably and uniformly required by the department of transportation pursuant to section 28-2154 or the department of revenue pursuant to section 42-5009, subsection H.

2. Issue and affix, as prescribed in subsection C of this section, a special ninety day nonresident registration permit unless the permit is recorded in the electronic records of the department.

C. A person who issues a special ninety day nonresident registration permit shall affix or insert, clearly and indelibly, on the face of each permit the dates of issuance and expiration and the make and vehicle identification number of the vehicle. The special ninety day nonresident registration permit shall not bear the name or address of the person who purchased the vehicle in a position that is legible from outside of the vehicle.

D. A dealer or authorized third party who issues a special ninety day nonresident registration permit shall maintain a record, in a form prescribed by the director, of all special ninety day nonresident registration permits issued by the dealer or authorized third party and a record of other information pertaining to the issuance of special ninety day nonresident registration permits that the department of transportation or the department of revenue requires.

E. The dealer or authorized third party shall keep each record for at least three years after the date of entry of the record.

F. A dealer or authorized third party shall allow the director of the department of transportation or the director of the department of revenue full and free access to the records during regular business hours.

G. The electronic record is written notice of the removal of the vehicle from this state for use in the purchaser's state of residence and relieves the dealer or authorized third party of liability in accordance with the requirements of section 42-5009.

H. If a purchaser registers the vehicle in this state within three hundred sixty-five days after the issuance of the special ninety day nonresident registration permit, the purchaser is liable in an amount equal to any tax, penalty and interest that the motor vehicle dealer or authorized third party would have been required to pay under title 42, chapter 5 and under articles IV and VI of the model city tax code as defined in section 42-6051. At the time of issuing the special ninety day nonresident registration permit, a motor vehicle dealer or authorized third party shall inform the purchaser in writing of the purchaser's liability described in this section. Subsequent registration or use of the vehicle in this state does not create a cause of action against a dealer or authorized third party that complies with section 28-2154, subsection A, this section and section 42-5009, subsection H.

I. The department of transportation and the department of revenue shall jointly develop and prescribe forms for the motor vehicle dealer, the authorized third party and the purchaser to complete for the proper administration and enforcement of this section.

J. Compliance with this section and section 28-2154 allows delivery of the vehicle to a nonresident purchaser in this state and retains the applicable deductions pursuant to section 42-5061, subsection A, paragraph 28 and subsection V.

§ 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 or a vehicle with a suspended registration 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.

5. Movement of a vehicle by a licensed wholesale motor vehicle dealer only if the wholesale motor vehicle dealer does not have valid dealer license plates issued pursuant to section 28-4533, subsection B, paragraph 3.

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. 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.

E. Except for permits issued to licensed wholesale motor vehicle dealers under this section, 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.

F. The fee for the one trip registration permit is prescribed in section 28-2003. The department shall deposit the fee in the state highway fund established by section 28-6991.

§ 28-2156 Temporary general use registration; definition

A. In lieu of permanent registration, the department may issue a temporary general use registration that allows a person to operate a vehicle for not more than thirty days.

B. The director may authorize issuance of this temporary registration if either of the following applies:

1. The person does not qualify for registration under section 28-2154 or 28-2292 or article 10 of this chapter.

2. The person is a nonresident who owns an off-highway vehicle that is titled in another state and otherwise meets the requirements of chapter 3, article 20 of this title.

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. This subsection does not apply to a person who owns an off-highway vehicle that is titled in another state and otherwise meets the requirements of chapter 3, article 20 of this title.

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 $1 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 fund established by section 28-6991 if the director is the registering officer.

H. For the purposes of this section, "off-highway vehicle" means an off-highway vehicle that satisfies all of the following:

1. Is designed primarily for recreational nonhighway all-terrain travel.

2. Is not more than eighty inches in width.

3. Has an unladen weight of not more than two thousand five hundred pounds.

4. Travels on four or more nonhighway tires.

5. Has a steering wheel for steering control.

6. Has a rollover protective structure.

7. Has an occupant retention system.

§ 28-2157 Application for registration; exception

A. A person shall apply to the department for registration of a motor vehicle, trailer or semitrailer on forms prescribed or authorized by the department.

B. The application shall contain:

1. The name and complete residence address of the owner.

2. A description of the vehicle, including the serial number.

3. If it is a new vehicle, the date of sale by the manufacturer or dealer to the person first operating the vehicle.

4. If the owner of the vehicle rents or intends to rent the vehicle without a driver, a statement of that fact.

5. Other facts required by the department.

C. The registering officer shall indicate on the face of the registration application that the registrant may be subject to vehicle emissions testing requirements pursuant to section 49-542.

D. On request of an applicant, the department shall allow the applicant to provide on the registration of a motor vehicle, trailer or semitrailer a post office box address that is regularly used by the applicant and that is located in the county in which the applicant resides.

E. The person shall include with the application the required fees and the certificate of title to the vehicle for which registration is sought. The registering officer may waive the requirement that the applicant present a certificate of title at the time of making an application for renewal if the registering officer has available complete and sufficient records to accurately compute the vehicle license tax.

F. The department may request an applicant who appears in person to register a motor vehicle, trailer or semitrailer to satisfactorily complete the vision screening test prescribed by the department.

G. A person applying for initial registration of a neighborhood electric vehicle, a neighborhood electric shuttle or a motorized quadricycle shall certify in writing that a notice of the operational restrictions applying to the vehicle as provided in section 28-966 are contained on a permanent notice attached to or painted on the vehicle in a location that is in clear view of the driver. This subsection does not apply to a fully autonomous vehicle that is incapable of operation by a human driver.

§ 28-2158 Registration card

A. The department shall file each application for registration. If satisfied that the application is genuine, the department shall issue a registration card to the owner of the vehicle and shall assign license plates to the vehicle.

B. The registration card shall contain on the face of the card all of the following:

1. The date it is issued.

2. The registration number assigned to the owner and the vehicle.

3. The name and address of the owner.

4. A description of the registered vehicle, including the serial number.

5. The amount of fees paid for registration of the vehicle.

C. The registration card shall be carried at all times in the driver's compartment of the vehicle for which it is issued or displayed on a wireless communication device. The registration card is subject to inspection by the director, members of the highway patrol or any peace officer.

§ 28-2159 Staggered registration

A. The director shall establish a system of staggered registration on a monthly basis to distribute the work of registering vehicles as uniformly as practicable throughout the twelve months of the calendar year.

B. All vehicle registrations provided in this chapter expire pursuant to schedules established by the director. The director may set the number of renewal periods within the month from one each month to one each day depending on which system is most economical and best accommodates the public.

C. If adoption of the staggered system results in the expiration of any registration more than a year from its issuance, the department shall charge a prorated registration fee in addition to the annual fee.

D. In order to initiate a system of registering or reregistering vehicles during any month of the calendar year, the director may register or reregister a vehicle for more or less than a twelve month period, but not more than eighteen months, and may prorate the annual registration fee if in the director's opinion proration tends to fulfill the purpose of the monthly registration system.

E. The director may provide for a two year or five year registration period for any vehicle not subject to annual emissions testing pursuant to section 49-542. For vehicles eligible for a two year or five year registration, the director shall provide in each renewal registration packet information that clearly indicates:

1. The vehicle owner has a choice of registering the vehicle for one year, for two years or for five years.

2. The total amount due for a one year registration period.

3. The total amount due for a two year registration period.

4. The total amount due for a five year registration period.

F. The director or a registering officer may allow a person who owns three or more vehicles to register or reregister the vehicles for less than one year so that the vehicles' registrations expire on the same date. The director may not delay the registration date for a vehicle if it causes a decrease in the vehicle license tax. The director or the registering officer shall prorate the registration fee of these vehicles. This subsection does not apply to a commercial vehicle with a gross weight of more than ten thousand pounds or to a motor vehicle rental or leasing agency.

G. The director shall adopt rules necessary to accomplish the purposes of this section.

§ 28-2161 Nonpayment of fees, taxes and assessments; consequences

A. Subject to section 28-5807, the director shall:

1. Refuse to register a motor vehicle, trailer or semitrailer owned by or under the control of a person who has failed, refused or neglected to pay any motor vehicle fee, tax or other assessment, or a penalty on the fee, tax or assessment, that is due the department or for its account. The department shall not renew a registration that is refused until the registration fees and the full amount of the delinquent fees, taxes or other assessments and penalties are paid.

2. Revoke the registration of a motor vehicle, trailer or semitrailer owned by or under the control of a person who has been delinquent for at least forty-five days in the payment of any motor vehicle fee, tax or other assessment due the department or for its account.

B. The department shall renew the registration of a motor vehicle, trailer or semitrailer revoked pursuant to subsection A of this section for the owner who failed, refused or neglected to pay any motor vehicle fee, tax or other assessment, or a penalty on the fee, tax or assessment, only on payment of the fees prescribed for registration and the full amount of the delinquent fees, taxes or other assessments and penalties.

§ 28-2162 Delinquent registration; penalty; lien; failure to apply for certificate of title; waiver

A. If a vehicle is operated on a highway without payment of the registration or certificate of title transfer fee, the fee is delinquent. If the fee is not paid before the date on which the vehicle is required to be registered for the current registration year, the department shall collect a penalty. The penalty is eight dollars for the first month of delinquency and four dollars for each additional month, not to exceed a total penalty of one hundred dollars. Registration of a vehicle in the name of the applicant for the year immediately preceding the year for which the application for registration is made is prima facie evidence that the vehicle has been operated on the highways during the year for which the application for registration is made.

B. Except as provided in section 28-5807, an applicant shall submit the total annual registration fee, the weight fee, any other required fee and the penalty prescribed in subsection A of this section with an application for registration of a vehicle that is submitted after the date the vehicle was required to be registered for the registration year in which registration of the vehicle for the next preceding year expired. If it is determined at the time of renewal, on proof satisfactory to the director, that the vehicle was not operated on the highways of this state before the filing of the application and the registration of the vehicle, the department shall refund or waive the penalty prescribed in subsection A of this section.

C. A registration fee and any penalty added to the fee are a lien on the vehicle on which they are due from the due date. The department may collect the fee and penalty by seizure of the vehicle from the person in possession of the vehicle, if any, and by sale as provided by law.

D. The director shall prescribe the method of readily identifying on the license plate the current registration date of the license plate.

E. A person who fails to apply for a certificate of title for any mobile home or other vehicle that is not registered under this title within thirty days after acquiring the mobile home or vehicle shall pay an additional fee equal to the penalty prescribed in subsection A of this section.

F. If a person who is licensed pursuant to chapter 10 of this title applies for a dismantle certificate of title for a vehicle pursuant to section 28-2094, the department shall waive any penalties that relate to the vehicle and that are imposed pursuant to this section.

§ 28-2163 Cancellation of registration; refusal to renew registration

A. The department shall cancel, suspend, revoke or deny the registration of a vehicle that it determines is unsafe or unfit to be operated or that is not equipped as required by law and shall retrieve license plates and registration cards for these vehicles.

B. The department shall cancel the registration of a vehicle if the person to whom the registration card or license plates have been issued makes or permits to be made an unlawful use of the vehicle or permits the use of the vehicle by a person not entitled to the use.

C. The department shall refuse to renew the registration of a vehicle owned by a person who has failed to comply with the ignition interlock requirements under chapter 4, articles 3.1 and 5 of this title.

§ 28-2164 Reregistration on becoming liable for weight fee; exceptions

A. On using or offering to use a registered vehicle for transportation of passengers for compensation or on altering or reconstructing it for the transportation of property, whether or not the weight fee has been paid, the owner shall immediately:

1. Surrender to the department the certificate of title and registration card to and the license plate assigned to the vehicle.

2. Apply for a corrected certificate of title.

3. Obtain a new registration, and an additional fee, other than the weight fee, is not required.

B. Subsection A of this section does not apply to transportation network companies, transportation network company drivers or transportation network company vehicles.

§ 28-2165 Special serial or identification number

A. If the manufacturer's serial or other identifying number of a motor vehicle, trailer or semitrailer is altered, removed, obliterated, defaced, omitted or otherwise missing or if the original manufacturer's serial or identification number on a major component part of a motor vehicle can be permanently restored after having been removed, defaced, altered or destroyed, the owner at the time of application for registration of or a certificate of title to the vehicle shall file an application with the department, on a form the department provides, that contains facts and information required by the director for the assignment of a special serial or identifying number.

B. The form prescribed by subsection A of this section shall require, at a minimum, both of the following:

1. A sworn statement by the owner that the owner is the lawful owner of the vehicle and that sets forth the basis for the claim of ownership, including documentation such as purchase contracts, bills of sale, invoices and receipts for the original vehicle and any replacement parts that replaced damaged portions of the original vehicle that bore original manufacturer's serial or identification numbers.

2. A copy of police or law enforcement agency reports documenting the theft and recovery of the vehicle, a copy of a police or law enforcement agency accident report documenting the extent of damage to the vehicle, a certified copy of documents from an insurance company documenting the precise nature, extent and dollar amount of damage to the vehicle or a sworn statement by the owner, including full and complete supporting documentation, establishing the origin of the vehicle and each major component part of the vehicle.

C. If the director is satisfied that the applicant has provided the documentation required by this section and that the applicant is entitled to assignment of a special serial or identification number, the director shall designate the serial number and note it on the application, on a suitable record of the department and on the authorization of use of the number.

D. The director shall furnish to the applicant a serial plate together with the authorization of use that shall be immediately delivered to a department inspector or agent who shall permanently attach the serial plate to the item in a conspicuous position and certify the attachment on the authorization of use. After attachment and certification, the plate is the lawful serial or identification number and shall remain on the item during its existence.

E. Subsection A of this section does not apply if the provisions of section 28-2092, paragraph 1, subdivision (c) are met.

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

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

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

2. The owner has furnished to the department of transportation satisfactory proof of the owner's ability to respond in damages in the amount of $15,000 if one motor vehicle is registered and $10,000 for each additional motor vehicle. Proof of the ability to respond in damages in the amount of $100,000 is sufficient for any number of motor vehicles.

B. The policy of insurance required by subsection A of this section 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 $15,000 for any one person injured or killed and $30,000 for any number more than one person injured or killed in any one accident.

(b) Liability of the renter for property damage in the amount of at least $10,000 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. Subject to subsection D of this section, the public liability insurance or the obligation of a self-insured owner pursuant to this section is primary coverage to any other available liability insurance coverage that is available and applicable for any damages and injury caused by a renter unless one of the following applies:

1. It is disclosed in the rental agreement to the renter the following:

"The owner does not extend any of its motor vehicle financial responsibility or provide public liability insurance coverage to the renter, authorized drivers or any other driver."

This disclosure shall be by one of the following methods:

(a) In at least ten-point bold type in the rental or lease agreement and affirmatively acknowledged by the renter.

(b) In the terms of the master agreement maintained with the renter.

(c) At the time a reservation is made by a renter online, the disclosure is made in a conspicuous manner.

2. The renter purchased public liability insurance from the owner that provides coverage that complies with subsection B of this section to renters and authorized drivers of rental motor vehicles for liability that arises from the operation of the rental motor vehicle. Any liability insurance purchased from the owner pursuant to this subsection shall apply and be exhausted prior to any other applicable and available liability insurance coverage.

D. The owner regulated by this section:

1. Shall respond to the third-party claim, provide financial responsibility as prescribed in subsection B of this section and provide a defense for all claims for damages or liability arising out of the ownership, maintenance or use of a motor vehicle if there is an accident, there are damages or injuries that are caused by the renter and one of the following applies:

(a) The renter does not have any other liability coverage that is available and applicable to the loss.

(b) The owner has not fully and accurately provided to the claimant the contact information regarding the renter, including the name, the address, the applicable insurance company and the policy number or the insurance company's claim number, within twenty days after the owner is notified of the claim.

2. After the owner has assumed defense of the claim under this subsection, cannot tender the claim to the excess insurer without the written agreement from the excess insurer and the excess insurer is not responsible for any costs incurred by the owner before the tender is accepted.

3. Has no obligation to provide a defense after the owner has paid its coverage limits, if the renter does not have any other liability coverage that is available and applicable to the loss.

4. 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.

5. Except as provided in paragraph 4 of this subsection, has no other right of subrogation against the person who rented the motor vehicle.

E. In a situation where the owner does not provide primary coverage, the public liability insurance or the obligation of the self-insured owner pursuant to this section shall provide excess coverage up to the limits prescribed in subsection B of this section.

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

G. 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.

H. 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.

I. As used in this section, an owner who is 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.

J. For the purposes of this section, "renter" includes any person operating a motor vehicle with permission of the person who has rented it.

§ 28-2167 Commercial vehicle registration; financial responsibility

On notice from the department that the department deems it necessary, the registering officer shall not complete the registration of an applicant subject to the motor carrier financial responsibility requirements of chapter 9, article 2 of this title until the applicant has met the financial responsibility requirements of section 28-4033.

§ 28-2168 Federal heavy vehicle use tax; enforcement assistance

The department may assist the United States department of treasury in enforcing the federal heavy vehicle use tax (26 United States Code section 4481). The director may determine persons who have paid or who are subject to or exempt from payment of the federal heavy vehicle use tax and may cancel the registration or refuse to register a vehicle that is owned or operated by a person and that is not in compliance with the federal heavy vehicle use tax.

§ 28-2169 Intrastate commercial vehicle registration; required numbers

The department may require by rule that an applicant for registration of a vehicle that is subject to the gross weight fees imposed pursuant to section 28-5432 have a United States department of transportation number and provide to the director a United States department of transportation number and a federal taxpayer identification number issued to the applicant for registration before the vehicle may be registered to travel in this state.

Article 6 Fleet Registration

§ 28-2201 Definition of fleet

In this article, unless the context otherwise requires, "fleet" means two or more vehicles owned by a person and registered in this state.

§ 28-2202 Fleet registration; requirements

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.

§ 28-2203 Registration card; sticker

On approval of the application for fleet registration, the director shall issue a permanent registration card and a permanent validating sticker for each qualified vehicle in the fleet. The permanent registration card shall be carried in the vehicle at all times and shall be made available to any law enforcement officer on demand. The department shall determine the manner in which the permanent validating sticker is displayed.

§ 28-2204 Department as registering officer; vehicle license tax distribution; definition

A. Except as provided in section 28-5101, the department is the registering officer for the initial application for registration and subsequent renewal application of fleet registrants. In the application for registration the applicant shall group vehicles by county of domicile.

B. The director shall distribute the vehicle license tax based on the county of domicile using the distribution formula prescribed in section 28-5808.

C. For the purposes of this section, "domicile" means the place from which a vehicle is most commonly dispatched or controlled.

§ 28-2205 New fleet registrant; fees; taxes

For purposes of establishing a new fleet registrant and in order to establish a uniform month of expiration:

1. The department shall maintain the valuation for the vehicle license tax determined pursuant to section 28-5801 at the current valuation if it is necessary to calculate a partial year vehicle license tax.

2. The gross weight fee prescribed in section 28-5433 and the motor carrier fee prescribed in section 28-5854 may be discounted on a monthly basis for purposes of calculating a partial registration year.

§ 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 deposit the identification fee, pursuant to sections 35-146 and 35-147, in the state highway fund established by section 28-6991.

§ 28-2207 Renewal of fleet registration; deletion of vehicle

A. On the renewal of a fleet registration, the department shall require payment of full license fees for each vehicle registered in the preceding year unless the vehicle has been deleted from the fleet as required by this section.

B. To delete a vehicle from a fleet, the fleet registrant shall notify the department that the license plate assigned to the vehicle has been removed from the vehicle. Notwithstanding section 28-2058, the department may allow a fleet registrant to retain a license plate that is not transferred to another vehicle. If the department does not allow a fleet registrant to retain the license plate, the fleet registrant shall either surrender the license plate to the department or an authorized third party or submit an affidavit of license plate destruction as prescribed by the director. If the license plate is lost or stolen, the fleet registrant shall submit a sworn statement detailing the circumstances for the inability to retain, surrender or destroy the license plate.

§ 28-2208 Fleet utility trailers; five year registration; definition

A. In lieu of annual registration, the director shall provide for the registration of fleet utility trailers for five year periods on proper application by the owner of the trailers. The owner is subject to all fees and license taxes imposed by this title and shall pay the fees and taxes as if the trailers were registered annually.

B. An application for registration of fleet utility trailers for a five year period shall contain a proportional number of the trailers equal to the average number and the assessed value of the trailers operated in or through this state during the preceding calendar year.

C. The director shall require the owner of fleet utility trailers registered pursuant to this section to annually file on a form to be supplied by the department for each of the ensuing four years information the director deems necessary for the computation of the average number and assessed value of the trailers operated in and through this state during the preceding calendar year. If in any year subsequent to the first year of registration the average number or assessed value of the trailers increases, the director may require the owner to register additional trailers for the remainder of the five year period.

D. The director may cancel at any time any or all of the license plates and registration cards issued to the owner of fleet utility trailers registered pursuant to this section for nonpayment of registration fees or license taxes or for noncompliance with subsection C.

E. For the purposes of this section, "fleet utility trailer" means a trailer of a utility trailer fleet consisting of two hundred fifty or more trailers with a gross weight of less than six thousand pounds.

§ 28-2209 Commercial vehicle fleet license plates; fund

A. The department may issue a commercial vehicle fleet license plate in a manner determined by the department to a person that pays a fee described in subsection B or C of this section.

B. A fleet with more than one hundred commercial vehicles may apply for a commercial vehicle fleet license plate with the fleet's approved logo in a standard location on the license plate as designed by the fleet and approved by the department. The department may charge the fleet a fee in an amount to be determined by the director for the initial design and administration of the plate in addition to the registration fee required by section 28-2003. The department may establish design guidelines to help streamline the approval process and minimize the costs.

C. A fleet with more than twenty-five commercial vehicles may apply for a commercial vehicle fleet license plate with the fleet's name placed on the bottom of the license plate as designed by the fleet and approved by the department. The department may charge the fleet a fee in an amount to be determined by the director for the initial design and administration of the plate in addition to the registration fee required by section 28-2003. The department may establish design guidelines to help streamline the approval process and minimize costs.

D. The commercial vehicle fleet license plate fund is established consisting of monies collected pursuant to this section. The director shall administer the fund. The director shall use the monies for the implementation of this section. Monies deposited in the commercial vehicle fleet license plate fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

Article 7 International Proportional Registration

§ 28-2231 Definitions

In this article, unless the context otherwise requires:

1. "Commercial vehicle" means:

(a) For vehicles base licensed in this state, a bus, truck or truck tractor, trailer or semitrailer.

(b) For vehicles based in another state, a bus, truck or truck tractor that has a gross weight of six thousand pounds or more and that is operated in more than one jurisdiction.

2. "Fleet" means one or more commercial vehicles.

3. "Jurisdiction" means a state, district, province, political subdivision, territory or possession of the United States or a foreign country.

4. "Preceding year" means a period of twelve consecutive months fixed by the director. The director shall fix the period within the eighteen months immediately preceding the beginning of the registration or license year for which proportional registration is sought. In fixing the period, the director shall make it conform to the terms, conditions and requirements of an applicable agreement or arrangement for the proportional registration of vehicles.

§ 28-2232 International proportional registration authority; rules; definition

A. Except as otherwise provided in this article, the registration of fleet vehicles on a proportional basis without reference to or application of section 28-2051, 28-2052, 28-2321, 28-2322, 28-2323 or 28-2324 or other statutes of this state relating to vehicle registration is authorized.

B. Sections 28-2161, 28-2162 and 28-5724 and article 16 of this chapter apply to vehicles proportionally registered pursuant to this article.

C. This article does not require a vehicle to be proportionally registered if the vehicle is otherwise registered in this state for the operation in which the vehicle is engaged under section 28-2003, 28-2324, 28-2325 or 28-5433 or any other law prescribing vehicle registration fees.

D. The department may:

1. Refuse to issue a registration, license plate or permit for a vehicle that is licensed under this chapter and that has been assigned to a commercial motor carrier if the federal motor carrier safety administration prohibits the commercial motor carrier from operating.

2. Suspend or revoke a registration, license plate or permit issued for a vehicle that is licensed under this chapter and that has been assigned to a commercial motor carrier if either of the following applies:

(a) The federal motor carrier safety administration prohibits the commercial motor carrier from operating.

(b) The commercial motor carrier knowingly allowed or required an employee to operate a commercial motor vehicle in violation of a federal out-of-service order.

3. Reinstate or reissue a registration, license plate or permit for a vehicle that is licensed under this chapter and that is assigned to a commercial motor carrier if the federal motor carrier safety administration allows the commercial motor carrier to resume operating.

E. The director shall adopt rules necessary to administer and enforce this article.

F. For the purposes of this section, "out-of-service order" has the same meaning prescribed in 49 Code of Federal Regulations section 390.5.

§ 28-2233 Interstate commercial fleet registration; application; restrictions

A. In lieu of the registration required by section 28-2153, in lieu of the full payment of fees prescribed by sections 28-2003 and 28-5433 and notwithstanding section 28-2321, a resident or nonresident engaged in operating one or more fleets of commercial vehicles in this state and another jurisdiction may register and license each fleet for operation in this state.

B. The director may refuse to permit proportional registration of vehicles based in a jurisdiction that does not grant proportional registration privileges to fleet vehicles based in this state.

C. A person may proportionally register and license a vehicle pursuant to this article by filing an application with the director. The execution of the application is subject to penalties of perjury for false statements. The application shall contain the following information and other information pertinent to vehicle registration as the director requires:

1. Total fleet miles determined as follows:

(a) The total number of miles operated in all jurisdictions during the preceding year by the power units in the fleet.

(b) If a fleet is composed entirely of trailers or semitrailers, the total number of miles that the vehicles were towed on the highways of all jurisdictions during the preceding year.

2. In-state miles determined as follows:

(a) The total number of miles operated in this state during the preceding year by the power units in the fleet.

(b) If a fleet is composed entirely of trailers or semitrailers, the total number of miles that the vehicles were towed on the highways of this state during the preceding year.

3. A description and identification of each vehicle of the fleet that is to be proportionally registered in this state during the registration year for which proportional fleet registration is requested.

4. For proportional registration of an interstate fleet to be operated in this state for the first time:

(a) The mileage data with respect to the fleet for the preceding year in other jurisdictions and the estimated annual mileage for the fleet in this state.

(b) If no operations were conducted with the fleet during the preceding year, a full statement of the proposed method of operation and estimates of annual mileage in this state and other jurisdictions.

5. The United States department of transportation number and the federal taxpayer identification number.

D. The application shall not include as a proportionally registered fleet vehicle a vehicle that is operated exclusively in this state or a vehicle if the sole purpose of its operation in this state is for use in the conduct of intrastate business.

E. The department shall not register a vehicle under this article unless it has been or will be proportionally or otherwise properly registered in at least one other jurisdiction during the period for which proportional registration is sought in this state.

F. From the applications submitted for proportional registration of an interstate fleet to be operated in this state for the first time, the director shall fix the in-state and total fleet miles to be used in determining the mileage proportion for the fleet and may evaluate and adjust the estimate in the application if the director is not satisfied the estimate is correct.

§ 28-2234 Owner-operators

An owner-operator who leases a vehicle to a motor carrier may proportionally register the vehicle by one of the following procedures:

1. The owner-operator may be the registrant, and the vehicle may be registered in the name of the owner-operator. The department shall allocate the fees according to the operational records of the owner-operator. The identification plate and cab card are the property of the lessor.

2. The lessee may be the registrant at the option of the lessor and the vehicle may be registered by the motor carrier. The registration shall be in both the owner-operator's name and that of the motor carrier as lessee. The department shall allocate the fees according to the records of the motor carrier. The identification plate and cab card are the property of the lessee.

§ 28-2235 Interstate commercial fleet registration; trailers; fees

A. The application of each fleet registered pursuant to this article shall include a total fee payment of at least four dollars fifty cents for each vehicle in the fleet. The fee payment shall be submitted at the time and in the manner directed by the director and is computed as follows:

1. Divide in-state miles by total fleet miles.

2. Determine the total amount necessary to register each vehicle in the fleet for which registration is requested based on the applicable fees and taxes prescribed by sections 28-2003, 28-5433, 28-5471 and 28-5801.

3. Multiply the sum obtained in paragraph 2 by the fraction obtained in paragraph 1.

B. In addition to all other fees, the applicant shall include a filing fee of seven dollars fifty cents with each application or supplemental application for nine or fewer vehicles, fifteen dollars for ten through twenty-four vehicles and twenty-two dollars fifty cents for twenty-five or more vehicles.

C. The applicant for proportional registration of a fleet, the nonmotor vehicles of which are operated in jurisdictions in addition to those in which the applicant's proportionally registered motor vehicles are operated, may state the nonmotor vehicles separately in the application and compute and pay the fees in accordance with the separate statement. In this application the total miles are the total miles that the nonmotor vehicles were towed by any of the applicant's motor vehicles on highways in all jurisdictions during the preceding year.

§ 28-2236 Interstate commercial fleet registration; identification; fee; registration card

A. On payment of the appropriate fees for a proportional registration application submitted pursuant to this article, the director shall register the vehicles described and identified in the application and shall issue a permanent validating sticker for each motor vehicle described in the application. In addition, the director shall charge a fee of three dollars for each additional proportionally registered vehicle and shall determine whether to issue a sticker.

B. The department shall issue a registration card for each proportionally registered vehicle that bears on its face the number of the license or the permanent validating sticker issued for the proportionally registered vehicle and other information from the application for proportional registration as the director determines is appropriate for identifying the vehicle. The registration card, or a facsimile of the registration card, shall be carried in the vehicle at all times. If it is a combination of vehicles, the registration card shall be carried in the vehicle supplying the motive power.

C. Proportionally registered interstate fleet vehicles that are registered and identified pursuant to this article and chapter 15, article 3 of this title are fully licensed and registered in this state for any type of movement or operation.

§ 28-2237 Additional vehicles

A. A vehicle that is acquired by the owner after the beginning of the registration year and subsequently added to a proportionally registered fleet shall be proportionally registered by applying the mileage percentage used in the original application for the fleet for the registration period to the fees otherwise due for the vehicle pursuant to section 28-2235 for the remainder of the registration year.

B. A vehicle that is operated by the owner as a lessee of another owner who, in the license year, has proportionally registered the vehicle in this state is not considered an addition to the lessee's fleet if the lessor establishes to the satisfaction of the director both of the following:

1. That the owner maintains and will submit complete annual mileage data for each vehicle for all states, including, by individual states, all miles operated in service by the lessor and the lessee of the lessor.

2. That the vehicle or its replacement will be included in the lessor's proportional registration application in this state in the normal course of operations for the succeeding license year.

§ 28-2238 Records; audits; interest; penalty

A. An owner whose application for proportional registration is accepted shall preserve the records on which the application is based for four years following the year or period on which the application is based. On request of the director, the owner shall either:

1. Make records available to the director at the director's office for audit as to the accuracy of computations and payments and the assessment of deficiencies or allowances for credit.

2. Pay the costs of an audit by the department at the applicant's home office.

B. The director may enter into agreements with agencies of other jurisdictions administering motor vehicle registration laws for joint audits of an owner whose application for proportional registration has been accepted.

C. The department shall not make an assessment for deficiency or a claim for credit for a period for which records are not required. Amounts that are found to be due and owing on audit bear interest of twelve per cent from the date they should have been paid until the date of actual payment. If the audit discloses a deliberate and wilful intent to evade the requirements of payment under section 28-2233, the department shall also assess an additional penalty of ten per cent of the amounts found to be due and owing on audit.

§ 28-2239 Temporary proportional registrations; temporary registration; fee

A. The department may sell temporary proportional registrations to motor carriers that are registering under this article. Motor carriers may use temporary proportional registrations for vehicles that are added to an existing fleet, in lieu of lost registrations pending receipt of permanent or replacement registrations or for vehicles that have a federal out-of-service order from a previous owner on the department's record.

B. The department may issue temporary registrations to motor carriers that are based in this state and that are registered pursuant to this title.

C. The cost of a temporary proportional registration is $1, and the registration is valid for sixty days.

Article 8 Alternative Proportional Registration

§ 28-2261 Alternative proportional registration agreements; authority

A. In lieu of the registration required by section 28-2153, in lieu of international proportional registration pursuant to article 7 of this chapter and notwithstanding section 28-2321, the director may provide for the apportionment of registration and other fees for resident or nonresident fleets of apportionable commercial vehicles that are engaged in interstate and intrastate commerce between this state and another state or states in which fleets operate in accordance with a proportional registration agreement pursuant to this article.

B. The director may enter into proportional registration agreements with another state or states providing that residents of the other state or states who operate a commercial vehicle may allocate and apportion the registration and other fees and taxes for the commercial vehicle prescribed in sections 28-2003, 28-5433, 28-5471 and 28-5801 pursuant to a formula agreed on by the director and the other state or states.

C. The director may enter into an agreement pursuant to this article if residents of this state are granted the same allocation and apportionment privileges for commercial motor vehicles registered in the other state or states. An agreement, arrangement, declaration or amendment entered into pursuant to this article shall be in writing and is not effective until filed with the department.

§ 28-2262 Alternative proportional registration agreements; restriction; contents

A. A proportional registration agreement authorized by this article does not exempt a motor vehicle, owner or operator from complying with all laws, rules and regulations pertaining to the operation of motor vehicles and pertaining to highway maximum length, width, height and weight.

B. A proportional registration agreement authorized by this article may:

1. Provide for collecting and forwarding the applicable registration and other fees and applications to another state or states.

2. Define the size of a fleet that may consist of one or more vehicles.

3. Provide a method to determine the state in which a fleet is based.

4. Establish a minimum fee or a flat fee if a fleet operator adds jurisdictions to the fleet operator's area of operation.

5. Include other provisions to facilitate the administration of the agreement.

§ 28-2263 Withdrawal of vehicle

If a vehicle that is subject to an agreement authorized by this article is permanently withdrawn from a proportionally registered fleet because the vehicle has been destroyed, sold or otherwise completely removed from the registrant's service, the director shall refund the unused portion of the fees paid with respect to the vehicle or apply the fees against the registrant's liability for subsequent additions to the fleet during the registration year or for additional fees on audit.

§ 28-2264 Trailers

The registration fees prescribed in sections 28-2003 and 28-5801 for trailers and semitrailers base licensed in this state under an agreement authorized by this article may be allocated or apportioned.

§ 28-2265 Owner-operators; permit

If an owner-operator is not operating as a lessor, the owner-operator may apply for a fifteen day permit for a fee of twenty dollars for each motor vehicle or vehicle combination using a registered gross weight that does not exceed the empty weight of the vehicle. The director may extend registration reciprocity to similar registrations issued by other jurisdictions.

§ 28-2266 Registration requirements; fees; registration card

A. The department shall not register a motor vehicle pursuant to this article unless all the following are provided:

1. A United States department of transportation number.

2. A federal taxpayer identification number.

3. The name of the party responsible for ensuring that the vehicle meets the applicable federal and state motor carrier safety laws and regulations.

B. In addition to all other fees, a person applying or making a supplemental application for registration under this article shall pay a filing fee of seven dollars fifty cents for nine or fewer vehicles, fifteen dollars for ten through twenty-four vehicles or twenty-two dollars fifty cents for twenty-five or more vehicles.

C. On payment of the appropriate fees for the registration, the director shall register the vehicles described and identified in the application and may issue a distinctive sticker for each motor vehicle described in the application. The director shall charge a fee of three dollars for each registered vehicle and shall determine whether to issue a sticker.

D. For each registered vehicle the director shall issue a registration card that bears on its face the number of the license or distinctive sticker issued for the registered vehicle and the other information extracted from the application for registration as the director determines appropriate for identifying the vehicle. The card shall be carried in the vehicle at all times. If it is a combination of vehicles, the card shall be carried in the vehicle supplying the motive power.

§ 28-2267 Temporary registrations; fee

A. The department may sell temporary registrations to motor carriers with existing fleets that are registered under section 28-2232 or this article. Motor carriers may use temporary registrations for vehicles that are added to an existing fleet, in lieu of lost registrations pending the receipt of permanent or replacement registrations or for vehicles that have a federal out-of-service order from a previous owner on the department's record.

B. The temporary registration fee is $1. The temporary registration is valid for sixty days.

§ 28-2268 Audit costs

If the place of business where records are audited is located outside of this state, the director may require the licensee to pay the department in advance for the cost of reimbursing employee subsistence and travel expenses.

§ 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, highway use fees, special plate fees and motor carrier fees 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 fund established by section 28-6991.

Article 9 Nonresident Daily Commuter

§ 28-2291 Definition of nonresident daily commuter

In this article, unless the context otherwise requires, "nonresident daily commuter" means a person who is a resident of a contiguous state, who enters and leaves this state on a daily basis for the purpose of employment and whose motor vehicle is principally garaged in the contiguous state.

§ 28-2292 Nonresident daily commuter vehicle operation

Notwithstanding this chapter, a nonresident daily commuter may operate a motor vehicle on the highways of this state if all of the following conditions are met:

1. The motor vehicle is either:

(a) A passenger vehicle.

(b) A commercial vehicle of a type commonly referred to as a pickup truck of less than six thousand pounds unladen weight with not more than two axles.

2. The motor vehicle is used regularly to transport passengers on the highways of this state principally between and to and from the place of residence in a contiguous state and the place of employment in this state by the owner of the motor vehicle and is not used for any other business purpose.

3. The motor vehicle is not used in the course of a business within this state, including the transportation of property other than incidental personal property between and to or from the place of residence in a contiguous state and the place of employment of the motor vehicle owner in this state.

§ 28-2293 Application

A. A nonresident daily commuter may apply for an identification card by filing an application with the department.

B. The department shall prescribe a form to be completed by the applicant that includes all of the following information:

1. The vehicle license plate number and the vehicle identification number of the motor vehicle.

2. The name of the registered owner of the motor vehicle.

3. A statement that the applicant is a nonresident daily commuter.

4. A statement that the nonresident daily commuter will always carry the nonresident identification card in the motor vehicle for which the card is assigned and will present the card to any peace officer of this state on demand as prescribed by section 28-2295.

5. A statement that the place of employment of the nonresident daily commuter is within the corridor prescribed by section 28-2294.

§ 28-2294 Nonresident daily commuter; identification card; fee

(L18, Ch. 260, sec. 13)

A. On application and completion of the form prescribed by section 28-2293, the department shall provide a nonresident daily commuter with an identification card that is valid for two years.

B. A motor vehicle is exempt from registration by this state if the following conditions are met:

1. The motor vehicle is operated pursuant to subsection A of this section and otherwise in accordance with this article.

2. The motor vehicle is a passenger vehicle or an unladen truck.

3. The motor vehicle is licensed in a contiguous state and is used to commute into this state to a destination within a corridor in this state that parallels the border between this state and the contiguous state and that extends not more than thirty-five air miles into this state from the border at any point.

C. The privilege accorded by subsection A of this section is revoked if the motor vehicle is operated for commuter purposes beyond the thirty-five mile corridor.

D. The department may charge a fee of not more than eight dollars for each motor vehicle exempt from registration pursuant to this section, as necessary, to recover the costs of administering this article.

§ 28-2294 (Version 2) Nonresident daily commuter; identification card; fee

(L18, Ch. 260, sec. 14. Conditionally Eff.)

A. On application and completion of the form prescribed by section 28-2293, the department shall provide a nonresident daily commuter with an identification card that is valid for two years.

B. A motor vehicle is exempt from registration by this state if the following conditions are met:

1. The motor vehicle is operated pursuant to subsection A of this section and otherwise in accordance with this article.

2. The motor vehicle is a passenger vehicle or an unladen truck.

3. The motor vehicle is licensed in a contiguous state and is used to commute into this state to a destination within a corridor in this state that parallels the border between this state and the contiguous state and that extends not more than seventy air miles into this state from the border at any point.

C. The privilege accorded by subsection A of this section is revoked if the motor vehicle is operated for commuter purposes beyond the air mileage limitation provided in subsection B of this section.

D. The department may charge a fee of not more than eight dollars for each motor vehicle exempt from registration pursuant to this section, as necessary, to recover the costs of administering this article.

§ 28-2295 Identification card

A nonresident daily commuter shall carry the nonresident daily commuter identification card at all times in the motor vehicle for which the card is assigned and shall present the card to any peace officer of this state on demand.

Article 10 Nonresident Responsibility

§ 28-2321 Registration requirement for nonresident's vehicle

A. Except as otherwise provided in this article, every foreign motor vehicle owned by a nonresident and operated in this state shall be registered and licensed in the same manner as a motor vehicle that has not been registered or licensed if the motor vehicle is operated in this state either:

1. For the transportation of passengers or property for compensation.

2. In the business of a nonresident carried on in this state.

3. For the transportation of property.

4. In the furtherance of a commercial enterprise and is a passenger-carrying motor vehicle designed to seat twelve or more persons.

B. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected pursuant to this section at ports of entry on the border between this state and Mexico as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

C. Sections 28-2322, 28-2323 and 28-2324 and this section do not apply to:

1. A foreign motor vehicle that is owned by a nonresident and that would be exempt from payment of gross weight fees under section 28-5432 if the motor vehicle were owned by a resident of this state.

2. A foreign motor vehicle that is owned by a nonresident and operated in this state for the transportation of property in the furtherance of a commercial enterprise and that is either:

(a) Commonly referred to as a passenger car or station wagon.

(b) Commonly known and referred to by manufacturer's rating as a three-quarter ton or less pickup truck or three-quarter ton or less van.

§ 28-2322 License plate requirement for nonresident's foreign vehicle

A person shall not operate a foreign vehicle owned by a nonresident on a highway and a nonresident owner shall not knowingly permit the foreign vehicle to be operated on a highway unless there is displayed on the vehicle the license plates assigned to the vehicle for the current registration year by the state or country of which the owner is a resident.

§ 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 is not required to pay that portion of the exempted fees and taxes pursuant to the agreement.

§ 28-2324 Limited registration; fees; violation

A. If a person desires to operate a motor vehicle that is required to be registered by section 28-2321 for a period of less than the full registration year and the motor vehicle is registered and licensed under the laws of another state or country, the owner may apply to the department in the manner and form prescribed for the registration of the motor vehicle for either thirty, sixty or ninety day periods. The person shall pay the following percentages of the full annual registration, use and gross weight fees that are applicable to the applicant's motor vehicle as prescribed by sections 28-2003, 28-5433 and 28-5471, or $12, whichever is more:

1. For thirty days, twenty percent.

2. For sixty days, thirty-five percent.

3. For ninety days, fifty percent.

B. The department shall not accept an application for a fraction of any of the periods prescribed in subsection A of this section. The department may issue registrations without restriction as to number or sequence.

C. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected pursuant to subsection A of this section at ports of entry on the border between this state and Mexico as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

D. If satisfied as to the facts stated in the application, the department shall register and license the motor vehicle for the period prescribed in subsection A of this section and shall assign an appropriate certificate or license. The operator shall display the certificate or license on the motor vehicle in the manner prescribed by the department when the motor vehicle is operated or driven on a highway of this state.

E. If a nonresident owner of a foreign motor vehicle is apprehended while operating the vehicle beyond the period specified in the owner's certificate or license and the owner has not applied for renewal of the certificate or license:

1. The department shall not issue another thirty, sixty or ninety day certificate or license to the owner during the registration year in which the violation occurred.

2. The nonresident owner shall register the motor vehicle and pay the fees for the registration year.

§ 28-2325 Single trip permit; fees

A. An owner or operator of a vehicle that is required to be registered pursuant to section 28-2321 may apply to the department for a single trip permit. The single trip permit authorizes the interstate operation of the vehicle:

1. For a single trip through this state.

2. From any point on the Arizona border to a point within this state and back to the border.

3. From a railhead within this state and return to a railhead.

4. From a point within this state to the border of this state.

B. In order to obtain a single trip permit pursuant to this section, the owner or operator shall provide evidence of each of the following to the department:

1. An insurance policy that satisfies all of the following:

(a) Meets the financial responsibility requirements prescribed in chapter 9 of this title.

(b) Is issued by an insurer that has been issued a certificate of authority or that has been permitted to transact surplus lines insurance by the public official that supervises insurance in a state of the United States or the District of Columbia.

(c) Provides valid insurance coverage in this state.

2. A current driver license of a class and type recognized by the department as valid in the United States.

3. Current compliance with vehicle safety inspection requirements prescribed in 49 Code of Federal Regulations sections 396.17 through 396.23.

C. If satisfied as to the facts stated in the application and the evidence provided pursuant to subsection B of this section, the department shall register the vehicle by issuing a single trip permit on payment by the owner or operator of the following fees:

1. For a one or two axle vehicle, $2 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

2. For a three axle vehicle or combination of vehicles with not more than three axles, $3 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

3. For a vehicle or combination of vehicles with four axles, $4 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

4. For a vehicle or combination of vehicles with five axles, $5 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

5. For a vehicle or combination of vehicles with six axles, $6 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

6. For a vehicle or combination of vehicles with more than six axles, $7 for each fifty miles or fraction of fifty miles to be traveled on the highways in any one trip.

D. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected pursuant to subsection C of this section at ports of entry on the border between this state and Mexico as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

E. The application for a single trip permit to the department does not qualify the applicant for eligibility in an assigned risk plan approved pursuant to section 28-4008.

F. The single trip permit shall contain information, be in the form and be issued and displayed in or on the vehicle as prescribed by department rules.

G. A single trip permit expires on completion of the specific trip for which the permit is issued and shall not exceed a period of ninety-six hours from the time of issuance unless an extension of time is authorized in writing by the department.

H. If a person operates a vehicle for which a single trip permit has been issued otherwise than as authorized in the permit, the owner or operator shall apply for and obtain annual registration of the vehicle and shall pay the fees applicable at the time the terms of the permit are violated.

§ 28-2326 Acceptance of rights and privileges; appointment for service of process

A. The rights and privileges conferred by sections 28-2321, 28-2322, 28-2323 and 28-2324 and section 28-3152, subsection A, paragraphs 4 and 5 are deemed accepted, and the acceptance is evidenced, by a nonresident:

1. If the nonresident or the nonresident's agent operates a motor vehicle on a public highway under the provisions of and the conditions imposed by sections 28-2321, 28-2322, 28-2323 and 28-2324 and section 28-3152, subsection A, paragraphs 4 and 5.

2. If the nonresident or the nonresident's agent operates a motor vehicle on a public highway other than under the provisions of sections 28-2321, 28-2322, 28-2323 and 28-2324 and section 28-3152, subsection A, paragraphs 4 and 5.

3. If a motor vehicle that is owned by a nonresident is operated on a public highway with the owner's express or implied permission under circumstances that render a resident motor vehicle owner liable for damages to person or property caused by the operation.

B. Acceptance of the rights and privileges stated in subsection A of this section constitutes the appointment of the director by the nonresident as the nonresident's true and lawful attorney on whom process may be served in an action against the nonresident that arises from an accident or collision involving the nonresident, the nonresident's agent or any other person operating a motor vehicle owned by the nonresident with the nonresident's express or implied permission on a public highway.

C. This section also applies to a nonresident defendant who was a resident of this state at the time of the accident or occurrence that gave rise to the action.

§ 28-2327 Service on director; notice to nonresident; fee; proof of service

A. Service of process under section 28-2326 is made by leaving a copy of the summons and complaint and a fee of four dollars with the director or in the director's office during office hours. The service of process is deemed sufficient service on the nonresident if either:

1. The plaintiff immediately does all of the following:

(a) Sends notice of the service and a copy of the summons and complaint by certified mail to the nonresident defendant.

(b) Appends the defendant's return receipt and the plaintiff's affidavit of compliance with this section and section 28-2326 to the original summons.

(c) Files them with the court within the time the court allows.

2. The plaintiff both:

(a) Serves notice of the service and a copy of the summons and complaint on the defendant, if found outside this state, by a duly constituted officer qualified to serve like process in the state or the jurisdiction where the defendant is found.

(b) Files with the court, within the time the court allows, the officer's return showing that the notice, copy of the summons and complaint were served as provided by this section on the defendant.

B. The court in which the action is pending may order postponements necessary to give the defendant a reasonable opportunity to defend the action.

C. The director shall keep a record, including the day and hour of service, of all process served on the director under this section.

D. The fee paid to the director at the time of service shall be taxed as costs in the suit if the plaintiff recovers.

§ 28-2328 Violation; classification

A. Except as provided in subsection B of this section, a person who violates this article is guilty of a class 2 misdemeanor.

B. A person who violates section 28-2322 is responsible for a civil traffic violation.

Article 11 License Plates Generally

§ 28-2351 License plate provided; design

A. Notwithstanding any other law, the department shall provide to every owner one license plate for each vehicle registered. At the request of the owner and on payment of a fee in an amount prescribed by the director by rule, the department shall provide one additional license plate for a vehicle for which a special plate is requested pursuant to this chapter.

B. The license plate shall display the number assigned to the vehicle and to the owner of the vehicle and the name of this state, which may be abbreviated. The director shall coat the license plate with a reflective material that is consistent with the determination of the department regarding the color and design of license plates and special plates. The director shall design the license plate and the letters and numerals on the license plate to be of sufficient size to be plainly readable during daylight from a distance of one hundred feet. In addition to the standard license plate issued for a trailer before August 12, 2005, the director shall issue a license plate for trailers that has a design that is similar to the standard size license plate for trailers but that is the same size as the license plate for motorcycles. The trailer owner shall notify the department which size license plate the owner wants for the trailer.

C. In addition to the requirements prescribed in subsection B of this section, for all license plates, including all special plates, that are designed or redesigned on or after September 24, 2022:

1. The background color of the license plate shall contrast significantly with the color of the letters and numerals on the license plate and with the name of this state on the license plate.

2. The name of this state shall appear on the license plate in capital letters in sans serif font and be three-fourths of an inch in height.

D. Notwithstanding any other law, the department shall not contract with a nongovernmental entity to purchase or secure reflective material for the plates issued by the department unless the department has made a reasonable effort to secure qualified bids or proposals from as many individual responsible respondents as possible.

E. The department shall determine the color and design of the license plate subject to the requirements prescribed by subsections B and C of this section. All plates issued by the department, except the plates that are issued pursuant to sections 28-2404, 28-2412, 28-2413, 28-2414, 28-2416, 28-2416.01, 28-2417 through 28-2470.39, 28-2472, 28-2473, 28-2474, 28-2475, 28-2476 and 28-4533 and article 14 of this chapter, shall be the same color as and similar in design to the license plate as determined by the department.

F. A passenger motor vehicle that is rented without a driver shall receive the same type of license plate as is issued for a private passenger motor vehicle.

§ 28-2352 License plate; return; replacement; fee

A. On termination of the lawful use of the license plate the director may require return to the department of the plate issued by the department.

B. If the license plate of a vehicle is mutilated or illegible, the owner shall return the plate to the department, and the department shall issue a new plate on payment of the fee provided in this section.

C. The fee for replacement of each lost, destroyed or mutilated license plate, pair of license plates or year validating tab is five dollars.

§ 28-2353 Special license plate replacement fee

A. The department may establish a special license plate replacement fee for deposit in the state highway fund established by section 28-6991. The fee is composed of twenty-five cents of each registration fee collected or received by the department. These fees are in addition to fees authorized to be kept pursuant to sections 28-2005 and 28-6991.

B. Subject to legislative appropriation, the department shall use the monies deposited in the state highway fund pursuant to this section to systematically replace license plates that are no longer plainly readable or to offset the cost of the issuance of a newly designed license plate.

§ 28-2354 License plates; attachment; civil penalty

A. A person shall display the license plate or plates as follows:

1. For a motor vehicle, motorcycle, trailer or semitrailer, on the rear.

2. Except as provided in paragraph 3 of this subsection, for a vehicle for which two license plates are issued, the vehicle owner shall display either of the following:

(a) One plate on the rear.

(b) One plate on the front and one plate on the rear.

3. For a vehicle for which two special license plates are issued pursuant to section 28-2409, one plate on the rear of the vehicle and one plate on the operator's wheelchair carrier or wheelchair lift when it is attached to the vehicle.

B. A person shall display all license plates as required by subsection A of this section until their lawful use expires or is canceled or revoked. A person shall maintain each license plate so it is clearly legible. A person shall securely fasten each license plate to the vehicle as follows:

1. To prevent the plate from swinging.

2. At a height of at least twelve inches from the ground to the bottom of the plate.

3. In a position to be clearly visible.

C. A person shall maintain each license plate so that the name of this state at the top of the license plate is not obscured.

D. Unless authorized by the department, a person shall not apply a covering or any substance to the license plate or use an electronic device or electrochromatic film that obscures from any angle the numbers, characters, year validating tabs or name of the jurisdiction issuing the plate.

E. 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 subsection C 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.

F. If a person violates subsection C of this section, the person is subject to a civil penalty of thirty dollars, except that if a person violates subsection C of this section within twelve months after the date of a prior violation of subsection C of this section, the person is subject to a civil penalty of one hundred dollars.

§ 28-2355 License plates; tabs; stickers

The department may issue one or more tabs or windshield stickers to indicate the year for which a license plate is issued.

§ 28-2356 Transfer of license plates to another vehicle; credit

A. Except as otherwise provided in this chapter, the owner of a vehicle for which the department provided license plates pursuant to section 28-2351 shall retain those license plates when the owner transfers the vehicle to another person.

B. The owner may apply for a credit that is posted to the owner's record or financial account of the unexpired portion of the vehicle license taxes, gross weight fees, commercial registration fees, special plate fees and motor carrier fees as prescribed in this section if both of the following apply:

1. The owner makes proper application to the director or to an authorized third party.

2. The owner agrees to allow the department to deduct a twelve dollar processing fee from the amount of the credit.

C. If the other vehicle is not of the same vehicle type as the vehicle for which the license plates were provided by the department pursuant to section 28-2351, the owner 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 provide new license plates of the proper vehicle type to the owner.

D. The owner of a registered vehicle who transfers license plates to another vehicle or who claims a credit pursuant to this section is entitled to a credit for the unexpired portion of the fees and taxes paid as required by law in accordance with the following conditions:

1. The fees and taxes are prorated on a monthly basis beginning on the first day of the registration month following the date of acquisition of the vehicle.

2. The credit shall be an amount computed as follows:

(a) For each full month remaining in the registration cycle, the record or financial account credit shall be prorated using the assessed value of the vehicle for the year that the full month is in.

(b) If the vehicle is permanently registered, one-twenty-fourth for each full month after acquisition of the vehicle to the twenty-fourth month after the date of initial permanent registration of the vehicle.

E. If the owner of a registered vehicle transfers the vehicle to another person but does not apply for a credit within thirty days of the transfer as required by section 28-2058, the unexpired portion of the fees and taxes shall decrease pursuant to subsection E of this section until the owner applies for the credit.

F. An owner who transfers license plates to another vehicle pursuant to this section is subject to the same penalties for the use of the license plates on another vehicle or for improper use of the license plates as the owner would have been subject to for use of the license plates on the vehicle to which the plates were previously assigned.

G. The owner of a vehicle registered in this state is not entitled to a credit pursuant to this section if the vehicle is registered in another state unless the owner is applying the credit pursuant to this section to another vehicle the owner owns or acquires for registration in this state.

Article 12 Special Plates

§ 28-2401 Definitions

In this article, unless the context otherwise requires:

1. "Immediate family member" means a spouse or a parent, child, brother or sister whether by adoption or blood.

2. "Special plates" means plates issued pursuant to this article.

§ 28-2402 Special plate fees

The following fees are required:

1. Twenty-five dollars for each original and for each annual renewal of special plates issued under this article, except special plates for hearing impaired persons issued under section 28-2408 and international symbol of access special plates issued under section 28-2409.

2. Twelve dollars for a transfer of special plates, unless exempt pursuant to section 28-2403.

§ 28-2403 Special plates; transfers; violation; classification

A. Except as otherwise provided in this article, the department shall issue or renew special plates in lieu of the regular license plates pursuant to the following conditions and procedures and only if the requirements prescribed by this article for the requested special plates are met:

1. Except as provided in sections 28-2416 and 28-2416.01, a person who is the registered owner of a vehicle registered with the department or who applies for an original or renewal registration of a vehicle may submit to the department a completed application form as prescribed by the department with the fee prescribed by section 28-2402 for special plates in addition to the registration fee prescribed by section 28-2003.

2. Except for plates issued pursuant to sections 28-2404, 28-2412, 28-2413, 28-2414, 28-2416, 28-2416.01, 28-2417 through 28-2470.39, 28-2472, 28-2473, 28-2474, 28-2475 and 28-2476 and article 14 of this chapter, the special plates shall be the same color as and similar to the design of the regular license plates that is determined by the department.

3. Except as provided in section 28-2416, the department shall issue special plates only to the owner or lessee of a vehicle that is currently registered, including any vehicle that has a declared gross weight, as defined in section 28-5431, of twenty-six thousand pounds or less.

4. Except as provided in sections 28-2416 and 28-2416.01, the department shall charge the fee prescribed by section 28-2402 for each annual renewal of special plates in addition to the registration fee prescribed by section 28-2003.

B. Except as provided in sections 28-2416 and 28-2416.01, on notification to the department and on payment of the transfer fee prescribed by section 28-2402, a person who is issued special plates may transfer the special plates to another vehicle the person owns or leases. Persons who are issued special plates for hearing impaired persons pursuant to section 28-2408 and international symbol of access special plates pursuant to section 28-2409 are exempt from the transfer fee. If a person who is issued special plates sells, trades or otherwise releases ownership of the vehicle on which the plates have been displayed, the person shall immediately report the transfer of the plates to the department or the person shall surrender the plates to the department as prescribed by the director. It is unlawful for a person to whom the plates have been issued to knowingly allow them to be displayed on a vehicle except the vehicle authorized by the department.

C. The special plates shall be affixed to the vehicle for which registration is sought in lieu of the regular license plates.

D. A person is guilty of a class 3 misdemeanor who:

1. Violates subsection B of this section.

2. Fraudulently gives false or fictitious information in the application for or renewal of special plates or placards issued pursuant to this article.

3. Conceals a material fact or otherwise commits fraud in the application for or renewal of special plates or placards issued pursuant to this article.

§ 28-2404 Special organization license plates

A. Special organization license plates authorized before September 30, 2009 remain valid license plates issued by this state unless the legislature enacts legislation specifically terminating those license plates.

B. The department shall issue special organization license plates authorized before September 30, 2009 to initial applicants or applicants requesting a duplicate, replacement or new license plate.

C. The director shall allow a request for a special organization license plate authorized before September 30, 2009 to be combined with a request for personalized special plates if the organization makes the request and pays the department the monies necessary as determined by the department to cover the department's costs to implement the 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 the organization special license plate.

D. An organization that receives authorization for a special organization license plate before September 30, 2009 may redesign the special organization license plate if the new design is approved by the department and the organization pays thirty-two thousand dollars to the department to issue the redesigned special organization license plate.

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

F. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall distribute all donations collected pursuant to this section as authorized in a written resolution of the entity that provides the thirty-two thousand dollars to the department pursuant to subsection D of this section. The entity must use the donations for the same purpose as originally approved.

G. The department shall issue special organization license plates authorized before September 30, 2009 to applicants who are otherwise qualified by law for the license plates and who are not members of the organization if the department receives a written resolution from the organization requesting issuance to nonmembers.

§ 28-2406 Personalized special plates

A. A person may apply for personalized special plates for any vehicle the person owns or leases or as a gift for the owner or lessee of a vehicle by indicating on the application the letters, numbers or combination of letters and numbers requested as a registration number. The department shall determine the number of positions allowed on the personalized special plates. The personalized special plates shall not conflict with existing plates and shall not duplicate registration numbers. The department may refuse to issue or may suspend, cancel or revoke any combination of letters or numbers or any combination of letters and numbers that carries connotations that are offensive to good taste and decency, any combination that is misleading or any combination that duplicates other plates.

B. If a person who has been issued personalized special plates sells, trades or otherwise releases ownership of the vehicle on which the plates have been displayed and relinquishes the plates to the new owner of the vehicle, the person shall release the person's priority to the letters, numbers or combination of letters and numbers that is displayed on the personalized special plates in the manner prescribed by the director. The person to whom the plates are relinquished shall apply to the department for issuance of the plates to the new applicant.

§ 28-2407 Amateur radio operator special plates; fund

A. The department shall issue amateur radio operator special plates to a person who provides satisfactory proof that the person owns and holds an unrevoked and unexpired amateur radio station license issued by the federal communications commission.

B. The amateur radio operator special plates shall be inscribed with the official identifying amateur radio call letters of the applicant as assigned by the federal communications commission.

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

D. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona amateur radio education and community involvement fund established by subsection E of this section.

E. The Arizona amateur radio education and community involvement fund is established consisting of monies received pursuant to this section. The director shall administer the fund. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

F. The director shall annually allocate monies from the fund, excluding administrative fees, to an organization that is a nonprofit corporation in this state that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes that meets all of the following:

1. Is comprised of amateur radio clubs throughout this state.

2. Has objectives that include:

(a) Combining opinions, ideas and strengths of various clubs.

(b) Assisting affiliated clubs in promoting the welfare of the amateur radio fraternity.

(c) Encouraging activities that will benefit amateur radio.

3. Awards scholarships to licensed amateurs who are enrolled in an institute of higher learning.

4. Awards grants to affiliated clubs for purposes that benefit the amateur radio community and enhance the communications network in this state.

G. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided in section 35-313, and monies earned from investment shall be credited to the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 28-2408 Special plates for hearing impaired persons; placard; definition

A. The department shall issue to a hearing impaired person special plates that display a distinctive number assigned to the vehicle and to the vehicle owner or lessee and that indicate the owner or lessee of the vehicle is hearing impaired.

B. On application, the department shall issue a removable placard to a hearing impaired person at no additional charge for display in a vehicle operated by the hearing impaired person. The department shall design the placard and determine the required display of the placard.

C. For the purposes of this section, "hearing impaired person" means a person who cannot, with or without a hearing aid, hear and understand normal speech in optimal listening conditions and who submits to the department a certificate that is issued by a person licensed to practice medicine in this state or another state or by an audiologist certified by the American speech, language and hearing association and that states the applicant is hearing impaired.

§ 28-2409 International symbol of access special plates; placard; update of records; invalid placard or plate; definitions

A. The department shall issue special plates bearing the international symbol of access to either:

1. A person who is an owner or lessee of a motor vehicle and who either:

(a) Has a permanent physical disability.

(b) Is the parent or legal guardian of a minor with a permanent physical disability.

2. An organization that owns or leases a motor vehicle that primarily transports persons with physical disabilities.

B. A permanent disability special plate issued under this section is valid for as long as the person to whom the plate is issued qualifies for issuance under this section.

C. A person who has a permanent physical disability may obtain, if qualified, a permanent disability removable windshield placard. A person who has a temporary physical disability may obtain, if qualified, a temporary disability removable windshield placard. An organization described in subsection A, paragraph 2 of this section may obtain, if qualified, a placard for each of the qualified vehicles. The department shall issue only one valid placard to an applicant with a temporary or permanent physical disability, except to replace a lost, stolen or mutilated placard or if the department determines, on receiving the applicant's written request, that the needs of the applicant are such that up to three valid placards are required. The department shall issue a placard pursuant to this section at no additional charge.

D. The department may issue up to three permanent disability removable windshield placards to a nonprofit organization that provides assistance to senior citizens. The nonprofit organization shall maintain records on each volunteer who uses these placards to transport persons with temporary or permanent disabilities.

E. A permanent disability removable windshield placard issued under this section is valid for as long as the person to whom it is issued qualifies for issuance under this section. A temporary disability removable windshield placard issued under this section is valid for a period of time as determined by the department. A person who desires to obtain a temporary disability removable windshield placard for an additional period of time shall submit a new application.

F. A person or an organization described in subsection A, paragraph 2 of this section that desires to obtain a permanent disability removable windshield placard or a temporary disability removable windshield placard or international symbol of access special plates shall submit an application to the department of transportation on a form furnished by the department of transportation that contains one of the following:

1. If a person with a permanent or temporary disability, a medical certificate completed by a hospital administrator, an authorized physician, an authorized physician assistant, a registered nurse practitioner or a physical therapist who certifies that the applicant has a physical disability.

2. If a person with a disability who is a veteran and who has a one hundred percent disability, a copy of the person's certificate of one hundred percent disability issued by the United States department of veterans affairs.

3. If an organization, a signed statement by an authorized officer of the organization affirming that the registered vehicle that is owned or leased by the organization and that will display the placard or the international symbol of access special plates primarily transports persons with physical disabilities.

G. On receipt of the application containing the medical certificate, the certificate of one hundred percent disability issued by the United States department of veterans affairs or the signed statement, if the department of transportation finds that the applicant qualifies for the parking privileges pursuant to chapter 3, article 14 of this title, the department of transportation shall issue the placard or international symbol of access special plates.

H. The placard or international symbol of access special plates shall be displayed on or in the motor vehicle in the manner prescribed by the department.

I. A request for special plates issued under this section may be combined with a request for an honored military license plate issued under article 13 of this chapter or any other special plate. The department shall prescribe the form for the request. The request is subject to payment of only the fee required for the honored military license plate or other special plate and is not subject to any other special plate fee under section 28-2402. An international symbol of access special plate that is combined with an honored military license plate or any other special plate is not a personalized special plate under section 28-2406.

J. If a person for whom a permanent disability removable windshield placard or permanent disability special plate has been issued pursuant to this section has been identified as deceased through monthly inquiries of federal or state vital record databases, the department shall update the record that the permanent disability removable windshield placard or the permanent disability special plate is canceled. The department shall electronically provide notice that the placard or plate is canceled to an authorized central law enforcement telecommunication system database that is accessible to law enforcement officers in this state.

K. For the purposes of this section:

1. "Authorized physician" means a doctor of medicine, osteopathy, podiatry or chiropractic who is licensed to practice medicine in this state or another state or authorized by the United States government to practice medicine.

2. "Authorized physician assistant" means a physician assistant who is under the supervision of an authorized physician.

3. "Permanent disability removable windshield placard" means a two-sided, hooked placard that includes on each side all of the following:

(a) The international symbol of access that is at least three inches in height, that is centered on the placard and that is white on a blue shield.

(b) An identification number.

(c) The seal or other identification of the issuing authority.

4. "Physical disability" means that a person, as determined by a hospital administrator or authorized physician, meets any of the following conditions:

(a) Cannot walk two hundred feet without stopping to rest.

(b) Cannot walk without the use of or assistance from any brace, cane, crutch, other person, prosthetic device, wheelchair or other assistive device.

(c) Is restricted by lung disease to such an extent that the person's forced respiratory, expiratory volume for one second, if measured by spirometry, is less than one liter, or the arterial oxygen tension is less than sixty mm/Hg on room air at rest.

(d) Uses portable oxygen.

(e) Has a cardiac condition to the extent that the person's functional limitations are classified in severity as class III or class IV according to standards set by the American heart association.

(f) Is severely limited in the person's ability to walk due to an arthritic, neurological or orthopedic condition.

5. "Temporary disability removable windshield placard" means a two-sided, hooked placard that includes on each side all of the following:

(a) The international symbol of access that is at least three inches in height, that is centered on the placard and that is white on a red shield.

(b) An identification number.

(c) A date of expiration.

(d) The seal or other identification of the issuing authority.

§ 28-2410 Honorary consular official special plates

The department shall issue honorary consular official special plates to a citizen of the United States or a permanent resident of this country who submits satisfactory proof to the department that the citizen or permanent resident is appointed by a foreign country to facilitate and promote the interest of the foreign country with this state.

§ 28-2411 Personalized street rod vehicle special plates

A. The department shall issue personalized street rod vehicle special plates to a person who owns a vehicle with a body design that retains at least the basic original style as manufactured in 1948 or earlier and that has been modified for safe road use. This modification may include:

1. Modification of the drive train and suspension and brake systems.

2. Modifications to the body through the use of materials such as steel or fiberglass.

3. Any other safety or comfort features.

B. A person who complies with subsection A may apply for personalized street rod vehicle special plates by indicating on the application the letters, numbers or combination of letters and numbers requested as a registration number. The department shall determine the number of positions allowed on the personalized street rod vehicle special plates. The personalized street rod vehicle special plates shall not conflict with existing plates and shall not duplicate registration numbers. The department may refuse to issue or may suspend, cancel or revoke any combination of letters or numbers or any combination of letters and numbers that carries connotations that are offensive to good taste and decency, any combination that is misleading or any combination that duplicates other plates.

C. If a person who has been issued personalized street rod vehicle special plates sells, trades or otherwise releases ownership of the vehicle on which the plates have been displayed and relinquishes the plates to the new owner of the vehicle, the person shall release the person's priority to the letters, numbers or combination of letters and numbers that is displayed on the personalized street rod vehicle special plates in the manner prescribed by the director. The person to whom the plates are relinquished shall apply to the department for issuance of the plates to the new applicant.

§ 28-2412 Collegiate special plates; definition

A. Except as otherwise provided in this subsection, the department shall issue collegiate special plates that identify each university that is described in section 15-1601 or each community college district. 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 or a community college district, the department may revise the color and design of the plates as appropriate for the university or community college district. Beginning from and after September 14, 2024, the department may issue collegiate special plates for a community college district only if a person pays $32,000 to the department for the implementation of a collegiate special plate for the community college district. The person that pays the $32,000 for the implementation of the collegiate special plate for a community college district shall design the collegiate special plate for the community college district. The design and color of the collegiate special plates are subject to the approval of the department.

B. Of the $25 fee required by section 28-2402 for original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is a collegiate plate annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit the collegiate plate annual donations as follows:

1. To the Arizona board of regents for placement in the appropriate university collegiate special plate fund.

2. To the community college district collegiate special plate fund established pursuant to section 15-1447.

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.

E. For the purposes of this section, "community college district" means a community college district that includes all of the following:

1. Is established pursuant to sections 15-1402 and 15-1403 or section 15-1402.01.

2. Is a political subdivision of this state.

3. Has a full-time equivalent student enrollment pursuant to section 15-1466.01 of more than five hundred students.

§ 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 $25 fee required by section 28-2402 for original environmental special plates and for renewal of environmental special plates, $8 is a special plate administration fee and $17 is an environmental plate annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall deposit the environmental plate annual donations in the environmental special plate fund established by section 41-6013 for disbursement by the state land department for environmental education programs.

§ 28-2414 Veteran special plates

A. The department shall issue veteran special plates to:

1. A person who submits satisfactory proof to the department that the person is a veteran.

2. The immediate family member of a person who has been issued a license plate pursuant to this section.

B. The department shall issue veteran special plates for motorcycles.

C. The department shall design the veteran special plates. Each veteran special plate shall contain a red, white and blue design and the designation "veteran" at the bottom of the plate. The department shall design seven different veteran special plates as follows:

1. One plate shall contain an American flag in the center of the plate.

2. One plate shall contain an army seal.

3. One plate shall contain a navy seal.

4. One plate shall contain a United States marine corps seal.

5. One plate shall contain an air force seal.

6. One plate shall contain a coast guard seal.

7. One plate shall contain a Native American code talkers seal.

D. A person who meets the qualifications of subsection A of this section may select which veteran special plate design prescribed by subsection C of this section that the person receives from the department.

E. Of the $25 fee required by section 28-2402 for original veteran special plates and for renewal of veteran special plates, $8 is a special plate administration fee and $17 is a veteran plate annual donation.

F. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall deposit the veteran plate annual donations in the veterans' donations fund established by section 41-608.

G. A request for special plates issued under this section may be combined with a request for a personalized special plate issued pursuant to section 28-2406. The department shall prescribe the form for the request. The initial combined request is subject to the fee required for veteran special plates and the fee required for the other special plate issued pursuant to section 28-2406. On renewal of the combined special plates, the fee is $25 and shall be divided and deposited as prescribed in subsections E and F of this section.

§ 28-2415 National guard special plates

A. The department shall issue national guard special plates. The director may allow a request for national guard 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 the national guard special plates.

B. Of the $25 fee required by section 28-2402 for original national guard special plates and for renewal of national guard special plates, $8 is a special plate administration fee and $17 is a national guard special plate annual donation.

C. The director of the department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall deposit the national guard special plate annual donations in the morale, welfare and recreational fund established by section 26-153.

§ 28-2416 Alternative fuel vehicle special plates; stickers; use of high occupancy vehicle lanes; civil penalty; definition

A. A person who owns a motor vehicle that has either been converted or manufactured to use an alternative fuel as the vehicle's exclusive fuel source and that is incapable of operating on any other type of fuel and the alternative fuel was subject to the use fuel tax imposed pursuant to chapter 16 of this title before April 1, 1997 may apply for alternative fuel vehicle special plates pursuant to this section. If a person who owns an alternative fuel vehicle does not apply for an alternative fuel vehicle special plate pursuant to this section, the person may apply and shall pay associated fees for:

1. A license plate pursuant to this article or article 11 of this chapter.

2. A special license plate issued pursuant to this article and an alternative fuel vehicle sticker as provided in subsection D of this section.

B. The department shall issue alternative fuel vehicle special plates, or an alternative fuel vehicle sticker as provided in subsection D of this section, to a person who satisfies all of the following:

1. Owns a motor vehicle that is exclusively powered by an alternative fuel and that is incapable of operating on any other type of fuel.

2. Provides proof as follows:

(a) For an original equipment manufactured alternative fuel vehicle, the dealer who sells the motor vehicle shall provide to the department and the owner of the motor vehicle a certificate indicating:

(i) That the motor vehicle is exclusively powered by an alternative fuel and is incapable of operating on any other type of fuel.

(ii) The emission classification of the motor vehicle as low, inherently low, ultralow or zero.

(b) For a converted motor vehicle or a motor vehicle that is assembled by the owner, the department of environmental quality or an agent of the department of environmental quality shall provide a certificate to the department of transportation and the owner of the motor vehicle indicating that the motor vehicle is exclusively powered by an alternative fuel and is incapable of operating on any other type of fuel.

3. Pays an $8 special plate administration or alternative fuel vehicle sticker fee, except that vehicles that are registered pursuant to section 28-2511 are exempt from that fee. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration or alternative fuel vehicle sticker fees in the state highway fund established by section 28-6991.

C. The color and design of the alternative fuel vehicle special plates are subject to the approval of the governor's 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. If a motor vehicle qualifies pursuant to this section and any other special plates are issued pursuant to this article or article 7, 8 or 13 of this chapter or section 28-2414, 28-2470.29 or 28-2514 for the motor vehicle, the department may issue an alternative fuel vehicle sticker to the person who owns the motor vehicle. The alternative fuel vehicle sticker shall be diamond-shaped, shall indicate the type of alternative fuel used by the vehicle and shall be placed on the motor vehicle as prescribed by the department.

E. Except as provided in section 28-337, a person may drive a motor vehicle with alternative fuel vehicle special plates or an alternative fuel vehicle sticker in high occupancy vehicle lanes at any time, regardless of occupancy level, without penalty.

F. A person shall not drive a motor vehicle in a high occupancy vehicle lane with an alternative fuel vehicle sticker if the motor vehicle is not an alternative fuel vehicle for which an alternative fuel vehicle sticker has been issued pursuant to this section. A person who violates this subsection is subject to a civil penalty of $350. Notwithstanding section 28-1554, the civil penalty collected pursuant to this subsection shall be deposited in the state general fund.

G. For the purposes of section 28-337, the department shall:

1. Limit or suspend the issuance of alternative fuel vehicle special plates.

2. Remove the privilege of operating in the high occupancy vehicle lane with a single occupant, including the driver.

H. 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.

I. For the purposes of this section, "alternative fuel" has the same meaning prescribed in section 1-215.

§ 28-2416.01 Low emission and energy efficient vehicle special plates; use of high occupancy vehicle lanes; civil penalty

A. Except as provided in section 28-337 and if the department receives approval from the federal government as prescribed in subsection D of this section, a person who owns a motor vehicle that is a low emission and energy efficient vehicle as defined in section 28-601 may apply for a low emission and energy efficient vehicle special plate pursuant to this section. The low emission and energy efficient vehicle special plate shall be designed by the director.

B. A person who applies for a low emission and energy efficient vehicle special plate shall pay an eight dollar plate administration fee, except that vehicles that are registered pursuant to section 28-2511 are exempt from that fee. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991.

C. The director may allow a request for a low emission and energy efficient vehicle special plate 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 low emission and energy efficient vehicle special plates. Low emission and energy efficient vehicle special plates may be transferred to another low emission and energy efficient vehicle for which the person is the registered owner or lessee.

D. Except as provided in section 28-337 and if the department receives approval from the federal government allowing the use of high occupancy vehicle lanes by low emission and energy efficient vehicles, as defined in section 28-601, that achieve not less than a fifty per cent increase in city fuel economy or not less than a twenty-five per cent increase in combined city-highway fuel economy in accordance with 23 United States Code section 166, a person may drive a motor vehicle with a low emission and energy efficient vehicle special plate in high occupancy vehicle lanes at any time, regardless of occupancy level, without penalty.

E. A person shall not drive a motor vehicle in a high occupancy vehicle lane with a low emission and energy efficient vehicle special plate if the motor vehicle is not a low emission and energy efficient vehicle for which a low emission and energy efficient vehicle special plate has been issued pursuant to this section. A person who violates this subsection is subject to a civil penalty of three hundred fifty dollars. Notwithstanding section 28-1554, the civil penalty collected pursuant to this subsection shall be deposited in the state general fund.

F. For the purposes of section 28-337, the department shall:

1. Limit or suspend the issuance of low emission and energy efficient vehicle special plates.

2. Remove the privilege of operating in the high occupancy vehicle lane with a single occupant, including the driver.

§ 28-2417 Child abuse prevention special plates

A. The department of transportation shall issue child abuse prevention special plates. The director of the division for children in the governor's office or the director's designee shall design the child abuse prevention special plates. The design and color of the child abuse prevention special plates are subject to the approval of the department of transportation.

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 an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the prevention of child abuse fund established by section 41-109.

§ 28-2418 Navajo nation special plates

A. The department shall issue Navajo nation special plates. The color and design of the Navajo nation special plates shall be different from the color and design of regular license plates determined by the department and shall be representative of the Navajo nation.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the Navajo nation department of highway safety. The Navajo nation department of highway safety shall use these monies only for traffic control devices that conform to the manual and specifications prescribed in section 28-641 on highways on the Navajo reservation that are located in this state and that are not state highways.

§ 28-2419 Transplantation awareness special plates; fund

A. The department shall issue transplantation awareness special plates. The color and design of the transplantation awareness special plates shall be different from the color and design of regular license plates determined by the department.

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 an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the transplantation awareness fund established by this section.

D. The transplantation awareness fund is established consisting of monies received pursuant to this section. The director shall administer the fund.

E. The director shall select a private coalition that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that has a mission of promoting transplantation awareness and allocate the monies in the fund to the coalition on an annual basis.

F. On notice from the director, 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.

G. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 28-2420 San Carlos Apache tribe special plates

A. The department shall issue San Carlos Apache tribe special plates. The color and design of the San Carlos Apache tribe special plates shall be different from the color and design of regular license plates determined by the department and shall be representative of the San Carlos Apache tribe.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the San Carlos Apache tribe transportation board. The San Carlos Apache tribe transportation board shall use these monies only for traffic control devices that conform to the manual and specifications prescribed in section 28-641 on highways on the San Carlos Apache tribe reservation that are located in this state and that are not state highways.

§ 28-2421 Character education special plates

A. The department of transportation shall issue character education special plates. The department of education shall accept and use monies donated by sources outside the department of education for the payment to the department of transportation. The superintendent of public instruction or the superintendent's designee shall design the character education special plates. The design and color of the character education special plates are subject to the approval of the department of transportation.

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 an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the character education special plate fund established by section 15-719 for disbursement by the department of education pursuant to section 15-719.

§ 28-2422 Spaying and neutering of animals special plates

A. The department shall issue spaying and neutering of animals special plates. The companion animal spay and neuter committee established by section 28-2422.01 shall design the spaying and neutering of animals special plates. The design and color of the spaying and neutering of animals special plates are subject to the approval of the department.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the spaying and neutering of animals fund established by section 28-2422.02.

§ 28-2422.01 Companion animal spay and neuter committee

A. The companion animal spay and neuter committee is established consisting of the following seven members who reside in this state and who are appointed by the governor:

1. Two members, each representing a different humane society that is incorporated in this state and that provides spay and neuter services.

2. Two members, each representing a different animal control entity that is not affiliated with a humane society.

3. One member who resides in a county with a population of three hundred thousand persons or less and who represents an animal welfare entity.

4. One member who represents the Arizona veterinary medical association.

5. One member who represents an established community coalition of animal welfare organizations.

B. The companion animal spay and neuter committee members shall serve five-year terms.

C. The committee shall:

1. Distribute monies from the spaying and neutering of animals fund established by section 28-2422.02. The committee may designate a third-party administrator who shall assume the responsibilities of receiving applications, making decisions relating to the distribution of monies and complying with the distribution requirements prescribed in section 28-2422.02. For the purposes of this section, the third-party administrator shall be a corporation that files under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that is experienced in awarding grants.

2. Submit a written report to the governor, the president of the senate and the speaker of the house of representatives pursuant to section 28-2422.02.

D. Members of the committee are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.

§ 28-2422.02 Spaying and neutering of animals fund; applications; award of fund monies; report; definitions

A. The spaying and neutering of animals fund is established consisting of monies received pursuant to sections 28-2422 and 43-619. The companion animal spay and neuter committee shall administer the fund. The first thirty-two thousand dollars received shall be reimbursed to the entity that paid the implementation fee to the department of transportation pursuant to section 28-2422. Excluding the initial thirty-two thousand dollar reimbursement, not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

B. The companion animal spay and neuter committee shall allocate monies to a qualifying entity that allocates the monies to programs that seek to reduce pet overpopulation by sterilizing, at minimal or no cost, dogs and cats in this state, including those that are impounded and sterilized pursuant to section 11-1022. The companion animal spay and neuter committee shall annually distribute all monies deposited in the spaying and neutering of animals fund, excluding administrative fees, to any qualifying entities. Monies awarded pursuant to this section shall not be used to sterilize animals that may be euthanized unless euthanasia becomes necessary due to illness, injury or behavior.

C. On notice from the companion animal spay and neuter committee, 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. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

E. Before allocating monies pursuant to subsection B of this section:

1. The companion animal spay and neuter committee shall prepare and issue a request for donation application that includes at least the following information:

(a) A description of the project types that are eligible for funding, including the scope of the work to be performed by an awardee.

(b) Identification of the funding source and the total amount of available monies.

(c) Whether a single award or multiple awards may be made.

(d) Encouragement of collaboration by entities for community partnerships, if appropriate.

(e) Any additional information required by the applications.

(f) The criteria or factors under which an application will be evaluated for an award and the relative importance of each criterion or factor.

(g) The due date for submittal of an application and the anticipated time the awards may be made.

2. Adequate public notice of the request for donation application shall be given a reasonable time before the date set forth in the request for application. The notice may include publication one or more times in a newspaper of general circulation in this state a reasonable time before the application opening.

3. A preapplication conference may be conducted before the due date for the submittal of an application to explain the donation application requirements. Statements made at a preapplication conference are not amendments to a request for a donation application unless a written amendment is issued.

4. A donation application shall be publicly received at the time and place designated in the request for donation application. The name of each applicant shall be publicly read and recorded. All other information in the donation application is confidential during the process of evaluation. All applications shall be open for public inspection after donations are awarded. To the extent the applicant designates and the state concurs, trade secrets and other proprietary information contained in the application shall remain confidential.

5. An application shall be evaluated by at least four evaluators who are members of the companion animal spay and neuter committee. The evaluators may allow an applicant to make an oral or written presentation regarding the scope of work, terms and conditions of the donations, budget and other relevant matters set forth in the request for application. An applicant shall be accorded fair treatment with respect to any opportunity for oral or written presentations. The evaluators may require an applicant to revise the application to reflect information provided in an oral or written presentation. Any person who has information contained in the application of competing applicants shall not disclose that information.

6. The evaluators shall review each application based solely on the evaluation criteria or factors set forth in the request for donation application. Each evaluator shall maintain a written record of the evaluator's assessment of each application, which shall include comments regarding compliance with each evaluation criterion or factor, the citation of a specific criterion or factor as the basis of each stated strength or weakness and a clear differentiation between comments based on facts presented in the application and comments based on professional judgment.

7. The evaluators shall make award recommendations to the companion animal spay and neuter committee based on the evaluators' reviews of each application. The evaluators' recommendations may include the adjustment of the budgets of the applicants individually or collectively.

8. The companion animal spay and neuter committee may affirm, modify or reject the evaluators' recommendations in whole or in part. Modification of the evaluators' recommendations may include the adjustment of the budget on any proposed award individually or on all awards by an amount or percentage. If the companion animal spay and neuter committee modifies or rejects the recommendations, the committee shall document in writing the specific justifications for the action taken.

9. The companion animal spay and neuter committee may enter into agreements with other state governmental units to furnish assistance in conducting the solicitation of donation applications.

10. The companion animal spay and neuter committee may resolve protests of the award or proposed award of a donation. An appeal from a decision of the companion animal spay and neuter committee may be made to the director of the department of administration. A protest of an award or proposed award of a donation and any appeals shall be resolved in accordance with the rules of procedure adopted by the department of administration pursuant to section 41-2611.

F. On or before December 31 of each year, the companion animal spay and neuter committee shall submit a written report to the governor, the president of the senate and the speaker of the house of representatives on all expenditures made from the fund in that calendar year. The report shall include all administrative expenses, all grants of monies, the names of grantees and any remaining balance in the fund. The committee shall provide a copy of the report to the secretary of state.

G. The companion animal spay and neuter committee shall make available to the public a list of all grants awarded pursuant to this section.

H. For the purposes of this section:

1. "Donation" means furnishing financial or other assistance, including state monies or federal grant monies, by the companion animal spay and neuter committee to any qualifying entity that allocates the monies to programs that seek to reduce pet overpopulation by sterilizing, at minimal or no cost, dogs and cats in this state that are owned by the general public or that are impounded and sterilized pursuant to section 11-1022.

2. "Qualifying entity" means either of the following:

(a) An animal welfare organization that files under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that offers or subsidizes sterilization services of dogs and cats, including organizations represented on the companion animal spay and neuter committee.

(b) An animal control agency that offers or subsidizes sterilization services of dogs and cats, including organizations represented on the companion animal spay and neuter committee.

§ 28-2423 Breast and cervical cancer screening and diagnostic special plates

A. The department shall issue breast and cervical cancer screening and diagnostic special plates. The director of the department, or the director's designee, shall design the breast and cervical cancer screening and diagnostic special plates. The director may allow a request for breast and cervical cancer screening and diagnostic 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 breast and cervical cancer screening and diagnostic special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the breast and cervical cancer screening and diagnostic special plate fund established by section 36-119.

§ 28-2424 Golden rule special plates

A. The department shall issue golden rule special plates. The incorporated nonprofit corporation that provided the thirty-two thousand dollars for implementation of this section shall design the golden rule special plates. The design and color of the golden rule special plates are subject to the approval of the department. The director may allow a request for golden rule 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 golden rule special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the golden rule special plate fund established by section 15-243.

§ 28-2425 White Mountain Apache tribe special plates

A. The department shall issue White Mountain Apache tribe special plates. The color and design of the White Mountain Apache tribe special plates shall be different from the color and design of regular license plates determined by the department and shall be representative of the White Mountain Apache tribe. The director may allow a request for White Mountain Apache tribe 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 White Mountain Apache tribe special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the White Mountain Apache tribe transportation committee. The White Mountain Apache tribe transportation committee shall use these monies only for traffic control devices that conform to the manual and specifications prescribed in section 28-641 on highways on the Fort Apache Indian reservation that are located in this state and that are not state highways.

§ 28-2426 Arizona professional baseball club special plates; fund

A. The department shall issue Arizona professional baseball club special plates. The entity that provides the thirty-two thousand dollars shall design the Arizona professional baseball club special plates. The design and color of the Arizona professional baseball club special plates are subject to the approval of the department. The director may allow a request for Arizona professional baseball club 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 Arizona professional baseball club special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona professional baseball club special plate fund established by subsection D of this section.

D. The Arizona professional baseball club special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars received shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The director shall allocate monies from the fund through a private Arizona professional baseball organization's foundation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that further allocates the monies to programs relating to youth education and development, housing for the homeless or low-income persons and health care for the indigent. The director shall forward all monies deposited in the Arizona professional baseball club special plate fund, excluding administrative fees, to the foundation on an annual basis.

E. On notice from the director, 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.

§ 28-2427 Families of fallen police officers special plates

A. The department of transportation shall issue families of fallen police officers special plates. The entity that provides the thirty-two thousand dollars shall design the families of fallen officers special plate. The design and color of the families of fallen police officers special plates are subject to the approval of the department of transportation. The director of the department of transportation may allow a request for families of fallen police officers special plates to be combined with a request for personalized special plates. If the director of the department of transportation allows such a combination, the request shall be in a form prescribed by the director of the department of transportation and is subject to the fees for the personalized special plates in addition to the fees required for families of fallen police officers special plates.

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

C. The department of transportation shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the families of fallen police officers special plate fund established by section 41-1721.

§ 28-2428 Military support special plates

A. The department of transportation shall issue military support special plates. The costs of issuing the military support special plates shall be paid by monies in the veterans' donation fund established pursuant to section 41-608. The department of veterans' services and the department of transportation shall design the military support special plates. The director may allow a request for military support 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 military support special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the veterans' donation fund established by section 41-608.

§ 28-2429 Arizona highways special plates

A. The department shall issue Arizona highways special plates. The costs of issuing the Arizona highways special plates shall be paid from monies received by the Arizona highways magazine fund pursuant to section 28-7315, subsection B, paragraph 2. The department shall design the Arizona highways special plates. The director may allow a request for Arizona highways 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 Arizona highways special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona highways magazine fund established by section 28-7315.

§ 28-2430 In God we trust special plates

(L11, Ch. 320, sec. 4 & Ch. 323, sec. 3)

A. If a nonprofit corporation that is incorporated in this state gives the department thirty-two thousand dollars, the department shall issue the in God we trust special plates. The entity that provides the thirty-two thousand dollars shall design the in God we trust special plates. The design and color of the in God we trust special plates are subject to the approval of the department. The director may allow a request for in God we trust 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 the in God we trust special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall distribute all donations collected pursuant to this section as authorized in a written resolution of the incorporated nonprofit corporation that provided the thirty-two thousand dollars for implementation of this section. The incorporated nonprofit corporation shall file a copy of this resolution with the department. The incorporated nonprofit corporation must use the donations to promote the national motto "in God we trust", first amendment rights and the heritage of this state and nation.

§ 28-2430 (Version 2) In God we trust special plates

(L11, Ch. 324, sec. 3)

A. If an incorporated nonprofit corporation gives the department thirty-two thousand dollars, the department shall issue the in God we trust special plates. The entity that provides the thirty-two thousand dollars shall design the in God we trust special plates. The design and color of the in God we trust special plates are subject to the approval of the department. The director may allow a request for in God we trust 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 the in God we trust special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall distribute all donations collected pursuant to this section as authorized in a written resolution of the incorporated nonprofit corporation that provided the thirty-two thousand dollars for implementation of this section. The incorporated nonprofit corporation shall file a copy of this resolution with the department. The incorporated nonprofit corporation must use the donations to promote the national motto "in God we trust", first amendment rights and the heritage of this state and nation.

§ 28-2431 Gold star family special plates

A. The department shall issue gold star family special plates to a person who submits satisfactory proof to the department that the person is an immediate family member of a person who died while on active duty in the United States military if a charitable organization affiliated with an Arizona professional basketball club donates thirty-two thousand dollars to the veterans' donations fund established by section 41-608 for the purpose of paying the implementation costs of the gold star family special plates. The costs of implementing the gold star family special plates shall be paid by the monies in the veterans' donations fund established by section 41-608 that were donated by the Arizona professional basketball club. The department in cooperation with an organization formed for the support of mothers who have had children die while on active duty in the United States military shall design the gold star family special plate. The director may allow a request for gold star family 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 gold star family special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the veterans' donations fund established by section 41-608.

§ 28-2432 Arizona professional basketball clubs special plates; fund

A. The department shall issue Arizona professional basketball clubs special plates in two different designs as follows:

1. On or before December 31, 2024, the entity that provides the $32,000 for the implementation of the Arizona professional basketball clubs special plates shall design the Arizona professional men's basketball club special plates. The design and color of the Arizona professional men's basketball club special plates are subject to the approval of the department.

2. If, by December 31, 2024, a person provides an additional $32,000 to the department for the Arizona professional basketball clubs special plates, the person that provides the $32,000 shall design the Arizona professional women's basketball club special plates. The design and color of the Arizona professional women's basketball club special plates are subject to the approval of the department.

B. All of the following apply to the Arizona professional basketball clubs special plates issued pursuant to subsection A of this section:

1. The director may allow a request for Arizona professional basketball clubs 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 Arizona professional basketball clubs special plates.

2. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

3. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona professional basketball clubs special plate fund established by subsection C of this section.

C. The Arizona professional basketball clubs special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. The first $32,000 received pursuant to subsection A, paragraph 1 of this section shall be reimbursed to the entity that paid the implementation fee to the department and the first $32,000 received pursuant to subsection A, paragraph 2 of this section shall be reimbursed to the person that paid the implementation fee to the department. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The director shall allocate monies from the fund through a private Arizona professional basketball organization's foundation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The director shall forward all monies deposited in the Arizona professional basketball clubs special plate fund, excluding administrative fees, to the foundation on an annual basis.

D. On notice from the director, 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.

§ 28-2433 Arizona professional football club special plates; fund

A. If, by December 31, 2009, a charitable organization affiliated with an Arizona professional football club donates thirty-two thousand dollars to the department for the implementation of an Arizona professional football club special plate, the department shall issue the Arizona professional football club special plates. The entity that provides the thirty-two thousand dollars for the implementation of the Arizona professional football club special plates shall design the Arizona professional football club special plates. The design and color of the Arizona professional football club special plates are subject to the approval of the department. The director may allow a request for Arizona professional football club 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 Arizona professional football club special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona professional football club special plate fund established by subsection D of this section.

D. The Arizona professional football club special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars received shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The director shall allocate monies from the fund through a private Arizona professional football organization's foundation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The director shall forward all monies deposited in the Arizona professional football club special plate fund, excluding administrative fees, to the foundation on an annual basis.

E. On notice from the director, 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.

§ 28-2434 Emergency medical services special plates

A. If, by December 31, 2014, a nonprofit corporation in this state that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue emergency medical services special plates. The nonprofit corporation that provides the thirty-two thousand dollars for the implementation of the emergency medical services special plates shall design the emergency medical services special plates. The design and color of the emergency medical services special plates are subject to the approval of the department. The director may allow a request for emergency medical services 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 emergency medical services special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall distribute all donations collected pursuant to this section as authorized in a written resolution of the nonprofit corporation that provided the thirty-two thousand dollars for implementation of this section. The nonprofit corporation shall file a copy of this resolution with the department. The nonprofit corporation must use the donations for public purposes related to emergency medical services.

§ 28-2435 Arizona masonic fraternity special plates; fund

A. If, by December 31, 2010, thirty-two thousand dollars is paid to the department for the implementation of this section, the department shall issue Arizona masonic fraternity special plates. The entity that provides the thirty-two thousand dollars shall design the Arizona masonic fraternity special plates. The design and color of the Arizona masonic fraternity special plates are subject to the approval of the department. The director may allow a request for Arizona masonic fraternity 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 the Arizona masonic fraternity special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona masonic fraternity special plate fund established by subsection D of this section.

D. The Arizona masonic fraternity special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The director shall annually allocate all monies from the fund, excluding administrative fees, to the entity that provides the thirty-two thousand dollars to the department pursuant to subsection A of this section. The trustees of the entity receiving the monies shall further distribute the monies to statewide charities that are supported by Arizona masons and that are qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes.

E. On notice from the director, 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.

§ 28-2436 Arizona agricultural youth organization special plates

A. If, by December 31, 2010, thirty-two thousand dollars is paid to the department for the implementation of this section, the department shall issue Arizona agricultural youth organization special plates. The entity that provides the thirty-two thousand dollars shall design the Arizona agricultural youth organization special plates. The design and color of the Arizona agricultural youth organization special plates are subject to the approval of the department. The director may allow a request for Arizona agricultural youth organization 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 the Arizona agricultural youth organization special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona agricultural youth organization special plate fund established by section 15-791 for disbursement by the state board of education acting as the state board for vocational and technological education pursuant to section 15-791.

§ 28-2437 Law enforcement special plates; fund

A. If, by December 31, 2011, an entity described in subsection E of this section pays thirty-two thousand dollars to the department for implementation of this section, the department shall issue law enforcement special plates. The entity that provides the thirty-two thousand dollars shall design the law enforcement special plates. The design and color of the law enforcement special plates are subject to the approval of the department. The director may allow a request for law enforcement 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 the law enforcement special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the law enforcement special plate fund established by this section.

D. The law enforcement special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to the entity in this state that paid the implementation fee to the department pursuant to subsection A of this section. The entity must be an incorporated nonprofit corporation that is qualified under section 501(c)(5) of the United States internal revenue code for federal income tax purposes and must be a professional association that is composed of singular independent police, corrections and detention labor associations in this state and that has a primary mission of representing those associations before the state legislature and local governments on issues that affect the working law enforcement officer, including issues relating to member benefits, member rights, member pay, equipment, legislation and fair treatment.

F. On notice from the director, 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.

§ 28-2438 Youth development organization special plates; fund

A. If, by December 31, 2011, an entity described in subsection E of this section pays thirty-two thousand dollars to the department for implementation of this section, the department shall issue youth development organization special plates. The entity that provides the thirty-two thousand dollars shall design the youth development organization special plates. The design and color of the youth development organization special plates are subject to the approval of the department. The director may allow a request for youth development organization 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 the youth development organization special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the youth development organization special plate fund established by this section.

D. The youth development organization special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to the entity in this state that paid the implementation fee to the department pursuant to subsection A of this section. The entity must be an incorporated nonprofit corporation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and must be one of the nation's largest and most prominent values-based youth development organizations that provides a program for young people that builds character, that trains them in the responsibilities of participating citizenship and that develops personal fitness. The incorporated nonprofit corporation must have been in existence for at least one century and must help build the future leaders of this country by combining educational activities and lifelong values with fun.

F. On notice from the director, 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.

§ 28-2439 Don't tread on me special plates

A. If an entity receives thirty-two thousand dollars through donations for the issuance of don't tread on me special plates and gives the department the thirty-two thousand dollars, the department shall issue don't tread on me special plates. The entity that provides the thirty-two thousand dollars shall design the don't tread on me special plates, except that the background of the don't tread on me special plates shall be in the image and color of the Gadsden flag. The design of the don't tread on me special plates is subject to the approval of the department. The director may allow a request for don't tread on me 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 don't tread on me special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the don't tread on me special plates fund established by section 28-2439.02.

§ 28-2439.01 Arizona tea party committee

A. The Arizona tea party committee is established consisting of the following thirteen members who reside in this state and who are United States citizens:

1. One member who is appointed by the president of the senate and who is the director of an incorporated nonprofit corporation that is qualified under section 501(c)(3) or 501(c)(4) of the United States internal revenue code for federal income tax purposes, that has a mission of bringing together, empowering and training tea party groups and that has affiliated members that represent diverse geographical locations throughout this state.

2. Two members who are appointed by the president of the senate and who each represent an organization in this state that promotes the tea party governing principles of fiscal responsibility, limited government and free markets. One of the two members must reside in a county with a population of more than one hundred sixty thousand persons but less than one hundred sixty-seven thousand persons.

3. Three members who are appointed by the speaker of the house of representatives and who each represent an organization in this state that promotes the tea party governing principles of fiscal responsibility, limited government and free markets.

4. Seven members who are appointed by the governor and who each represent an organization in this state that promotes the tea party governing principles of fiscal responsibility, limited government and free markets.

B. The Arizona tea party committee members shall serve five year terms.

C. The committee shall:

1. Distribute monies from the don't tread on me special plates fund established by section 28-2439.02.

2. Submit a written report to the governor, the president of the senate and the speaker of the house of representatives pursuant to section 28-2439.02.

3. No later than sixty days before the expiration of a member's term, deliver a list of at least two, but no more than five, candidates to the governor, the president of the senate or the speaker of the house of representatives in order to fill a vacancy on the committee. The governor, the president of the senate or the speaker of the house of representatives shall select and appoint a member to the committee from the list submitted by the committee.

D. Members of the committee are not eligible to receive compensation or reimbursement of expenses.

§ 28-2439.02 Don't tread on me special plates fund; grants; definition

A. The don't tread on me special plates fund is established consisting of monies received pursuant to section 28-2439. The Arizona tea party committee shall administer the fund. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund and the grant program pursuant to this section. Monies in the fund are continuously appropriated.

B. The Arizona tea party committee shall allocate monies to qualifying entities in this state that use monies to promote tea party governing principles. The Arizona tea party committee shall annually distribute all monies deposited in the don't tread on me special plates fund, excluding administrative fees, to any qualifying entities. Funds awarded pursuant to this section must be used for the purposes for which the monies were awarded.

C. On notice from the Arizona tea party committee, 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. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

E. Before allocating monies pursuant to subsection B of this section:

1. The Arizona tea party committee shall establish a grant program to distribute fund monies and prepare and issue a request for grant application that includes at least the following information:

(a) A description of the intended uses of grant monies.

(b) Whether a single award or multiple awards may be made.

(c) The criteria or factors under which an application will be evaluated for award and the relative importance of each criteria or factor.

(d) The due date for submittal of an application and the anticipated time the awards may be made.

(e) Any additional information required by the committee.

2. Adequate public notice of request for grant application shall be given a reasonable time before the date set forth in the request for application.

3. A grant application shall be publicly received at the time and place designated in the request for grant application. The name of each applicant shall be publicly recorded. All other information in the application is confidential during the process of evaluation. All applications shall be open for public inspection after grant monies are awarded.

4. An application shall be evaluated by at least three members of the Arizona tea party committee. The members shall review each application based solely on the evaluation criteria or factors set forth in the request for grant application.

5. The Arizona tea party committee may enter into agreements with other state governmental units to furnish assistance in conducting the solicitation of grant applications.

6. The Arizona tea party committee may resolve protests of the award or proposed award of a grant. An appeal from a decision of the Arizona tea party committee may be made to the director of the department of administration. A protest of an award or proposed award of a grant and any appeals shall be resolved in accordance with the rules of procedure adopted by the department of administration pursuant to section 41-2611.

F. On or before December 31 of each year, the Arizona tea party committee shall submit a written report to the governor, the president of the senate and the speaker of the house of representatives on all expenditures made from the fund in that calendar year. The report shall include all administrative expenses, all grants of monies, the names of grantees and any remaining balance in the fund. The committee shall provide a copy of the report to the secretary of state.

G. The Arizona tea party committee shall make available to the public a list of all grants awarded pursuant to this section on request.

H. Grantees shall maintain a written record of all expenditures made using grant monies and shall furnish those records on the request of the Arizona tea party committee. The Arizona tea party committee may request and review the written records maintained by grantees.

I. For the purposes of this section, "qualifying entities" means organizations that foster tea party governing principles, including all of the following:

1. To promote the Constitution of the United States as the supreme law of the land through education and preservation of the founding principles of the Constitution of the United States.

2. To protect state sovereignty, as provided for under the tenth amendment of the Constitution of the United States.

3. To adhere to the tenets of limited government, free enterprise for businesses and fiscal responsibility by federal, state and local governments.

4. To stand for the security of borders with other nations for the stability and safety of the United States.

§ 28-2440 Multiple sclerosis awareness special plates

A. If, by December 31, 2011, thirty-two thousand dollars is paid to the department for the implementation of this section, the department shall issue multiple sclerosis awareness special plates. The director of the department, or the director's designee, shall design the multiple sclerosis awareness special plates. The director may allow a request for multiple sclerosis awareness 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 multiple sclerosis awareness special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the multiple sclerosis awareness fund established by section 36-120.

§ 28-2441 Hunger relief special plates; fund

A. If, by June 30, 2012, an entity pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue hunger relief special plates. The entity that provides the thirty-two thousand dollars shall design the hunger relief special plates. The design and color of the hunger relief special plates are subject to the approval of the department. The director may allow a request for hunger relief 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 the hunger relief special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the hunger relief special plate fund established by subsection D of this section.

D. The hunger relief special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars received shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Monies in the fund are continuously appropriated. The director shall annually allocate all monies from the fund to an organization that operates statewide to coordinate food bank services and that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The organization shall establish a process to distribute the monies annually to organizations that provide food distribution to hungry people in this state and that are qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. To the extent possible, the distributing organization shall distribute monies collected in a geographic region to organizations serving individuals in that region. The director shall forward all monies deposited in the hunger relief special plate fund to the organization on an annual basis. The organization may retain not more than ten per cent of the monies for documented expenses related to an application and award process.

E. On notice from the director, 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. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 28-2442 Childhood cancer research special plates

A. If, by December 31, 2012, thirty-two thousand dollars is paid to the department for the implementation of this section, the department shall issue childhood cancer research special plates. The person or entity that provides the thirty-two thousand dollars for implementation of this section shall design the childhood cancer research special plates. The design and color of the childhood cancer research special plates are subject to the approval of the department. The director may allow a request for childhood cancer research 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 childhood cancer research special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the childhood cancer and rare childhood disease research fund established by section 36-121.

§ 28-2443 Litter prevention and cleanup special plates; fund

A. If, by December 31, 2011, an entity pays thirty-two thousand dollars to the department for implementation of this section, the department shall issue litter prevention and cleanup special plates. The entity that provides the thirty-two thousand dollars shall design the litter prevention and cleanup special plates. The design and color of the litter prevention and cleanup special plates are subject to the approval of the department. The director may allow a request for litter prevention and cleanup 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 the litter prevention and cleanup special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the litter prevention and cleanup special plate fund established by this section.

D. The litter prevention and cleanup special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually distribute monies in the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code, that is associated with the department to assist with litter prevention and litter cleanup and that operates statewide.

F. On notice from the director, 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.

§ 28-2444 Arizona professional hockey club special plates; fund

A. If, by December 31, 2015, an entity pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue Arizona professional hockey club special plates. The entity that provides the thirty-two thousand dollars shall design the Arizona professional hockey club special plates. The design and color of the Arizona professional hockey club special plates are subject to the approval of the department. The director may allow a request for Arizona professional hockey club 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 the Arizona professional hockey club special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona professional hockey club special plate fund established by this section.

D. The Arizona professional hockey club special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The director shall allocate monies from the fund through a private Arizona professional hockey organization's foundation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The director shall forward all monies deposited in the Arizona professional hockey club special plate fund, excluding administrative fees, to the foundation on an annual basis.

E. On notice from the director, 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.

§ 28-2445 Arizona public broadcast television special plates; fund

A. If, by December 31, 2011, an entity pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue Arizona public broadcast television special plates. The entity that provides the thirty-two thousand dollars shall design the Arizona public broadcast television special plates. The design and color of the Arizona public broadcast television special plates are subject to the approval of the department. The director may allow a request for Arizona public broadcast television 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 the Arizona public broadcast television special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona public broadcast television special plate fund established by this section.

D. The Arizona public broadcast television special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten per cent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The director shall allocate monies from the fund to a foundation of public broadcast television in this state that is licensed as a full-power noncommercial educational station by the federal communications commission and that provides a noncommercial and nonsectarian educational broadcast service that is available to television viewers located in central and northern Arizona. The foundation must be a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The director shall forward all monies deposited into the Arizona public broadcast television special plate fund, excluding administrative fees, to the foundation on an annual basis.

E. On notice from the director, 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.

§ 28-2446 Global graduate management school special plates; fund

A. If, by December 31, 2011, thirty-two thousand dollars is paid to the department for the implementation of this section, the department shall issue global graduate management school special plates. The entity that provides the thirty-two thousand dollars shall design the global graduate management school special plates. The design and color of the global graduate management school special plates are subject to the approval of the department. The director may allow a request for global graduate management school 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 the global graduate management school special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the global graduate management school special plate fund established by subsection D of this section.

D. The global graduate management school special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the entity that provides the thirty-two thousand dollars pursuant to subsection A of this section. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The director shall annually allocate monies from the fund, excluding administrative fees, to a graduate management school in this state that is focused exclusively on global business, that is regarded as the world's leading institution in the education of global managers and that has operations in the United States and in other nations. The graduate management school shall use the allocated monies for the graduate management school's operations and activities, including educating global leaders who create sustainable prosperity worldwide and facilitating the development of the global mindset.

E. On notice from the director, 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. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 28-2447 Women veteran special plates

A. The department shall design and issue women veteran special plates. Each women veteran special plate shall contain a red, white and blue design and the designation "women veterans" at the bottom of the plate. The department shall design seven different women veteran special plates as follows:

1. One plate shall contain a logo design to be approved by the director and shall be available to any applicant, even if the applicant is not a veteran or a veteran's immediate family member.

2. One plate shall contain a United States army seal.

3. One plate shall contain a United States navy seal.

4. One plate shall contain a United States marine corps seal.

5. One plate shall contain a United States air force seal.

6. One plate shall contain a United States coast guard seal.

7. One plate shall contain a Native American code talker seal.

B. An applicant may select the women veteran special plate design only if the applicant is either:

1. A person who submits satisfactory proof to the department that the person is a veteran.

2. The immediate family member of a person who has been issued a women veteran special plate pursuant to paragraph 1 of this subsection.

C. An applicant who is not described in subsection B of this section may only receive a women veteran special plate design prescribed by subsection A, paragraph 1 of this section.

D. The director may allow a request for women veteran 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 the women veteran special plates.

E. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

F. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the veterans' donations fund established by section 41-608.

§ 28-2448 Arizona centennial special plates; fund

A. The department shall issue Arizona centennial special plates. The department shall use thirty-two thousand dollars from the state highway fund, established by section 28-6991, to implement this section. The office of tourism shall design the Arizona centennial special plates. The design and color of the Arizona centennial special plates are subject to the approval of the department. The director of the department of transportation may allow a request for Arizona centennial special plates to be combined with a request for personalized special plates. If the director of the department of transportation allows such a combination, the request shall be in a form prescribed by the director of the department of transportation and is subject to the fees for the personalized special plates in addition to the fees required for the Arizona centennial special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona centennial special plate fund established by this section.

D. The Arizona centennial special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the state highway fund established by section 28-6991. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies in the fund to the university of Arizona to pay costs related to the maintenance and operations of the mining, mineral and natural resources educational museum.

F. On notice from the director, 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.

§ 28-2449 All in for Arizona schools special plates; fund

A. If, by December 31, 2016, an entity pays $32,000 to the department for the implementation of this section, the department shall issue all in for Arizona schools special plates for motor vehicles. The entity that provides the $32,000 shall design the all in for Arizona schools special plates. The design and color of the all in for Arizona schools special plates are subject to the approval of the department. The director may allow a request for all in for Arizona schools 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 the all in for Arizona schools special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the all in for Arizona schools special plate fund established by this section.

D. The all in for Arizona schools special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. Not more than five percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The director shall annually allocate all monies from the fund, excluding administrative fees, to the entity that provides the $32,000 to the department pursuant to subsection A of this section. The entity receiving the monies shall establish a process, including working with county school superintendents, to distribute the monies to public educators who propose extraordinary activities, projects or lessons for students in kindergarten programs and grades one through eight.

E. On notice from the director, 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.

§ 28-2450 Girls' youth organization special plates; fund

A. If, by December 31, 2013, an entity pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue girls' youth organization special plates. The entity that provides the thirty-two thousand dollars shall design the girls' youth organization special plates. The design and color of the girls' youth organization special plates are subject to the approval of the department. The director may allow a request for girls' youth organization 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 the girls' youth organization special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the girls' youth organization special plate fund established by this section.

D. The girls' youth organization special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to the entity in this state that paid the implementation fee to the department pursuant to subsection A of this section. The entity must be an incorporated nonprofit corporation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that provides a program for young girls that builds girls of courage, confidence and character who make the world a better place. The incorporated nonprofit corporation must have been in existence for at least one century and must help girls discover the fun, friendship and power of girls together. The program must:

1. Include a myriad of enriching experiences, such as extraordinary field trips, sports skill-building clinics, community service projects, cultural exchanges and environmental stewardships, that help the girls grow courageous and strong.

2. Help girls develop their full individual potential, relate to others with increasing understanding, skill and respect, develop values to guide their actions and to provide the foundation for sound decision-making and contribute to the improvement of society through their abilities, leadership skills and cooperation with others.

F. On notice from the director, 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.

§ 28-2451 Arizona motorsports commemorative special plates; fund

A. If, by December 31, 2014, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue Arizona motorsports commemorative special plates. The person that provides the thirty-two thousand dollars shall design the Arizona motorsports commemorative special plates. The design and color of the Arizona motorsports commemorative special plates are subject to the approval of the department. The director may allow a request for Arizona motorsports commemorative 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 Arizona motorsports commemorative special plates.

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 an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona motorsports commemorative special plate fund established by this section.

D. The Arizona motorsports commemorative special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person that provides the thirty-two thousand dollars pursuant to subsection A of this section. Not more than ten per cent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the Arizona motorsports commemorative special plate fund, excluding administrative fees, to a foundation that is a national leader in providing resources and charitable support for children through education, medical treatment, dream experiences and volunteerism. The foundation must satisfy all of the following requirements:

1. Have a scholarship program that aids in providing summer camp opportunities and dream experiences at motorsports events for terminally ill and special needs children.

2. Have a mission that requires investment in creating opportunity for school-aged students and helping the students to engage in science and engineering using motorsports as the basis of the educational program.

3. Be a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes.

4. Be named after, or have a donor advised fund named after, a special event location that promotes sanctioned motorsports and family events within this state.

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

§ 28-2452 Firefighter special plates; fund

A. If, by December 31, 2015, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue firefighter special plates. The design and color of the firefighter special plates are subject to the approval of the department. The director may allow a request for firefighter 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 firefighter special plates.

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 an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the firefighter special plate fund established by this section.

D. The firefighter special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person who provides the thirty-two thousand dollars pursuant to subsection A of this section. Not more than five percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the firefighter special plate fund, excluding administrative fees, to an incorporated nonprofit corporation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that has a mission of leading, serving and collaborating to mobilize enduring philanthropy for a better state. The nonprofit corporation must have been awarding grants since 1978 and must provide funding year-round to nonprofit organizations, government agencies and educational institutions for a variety of uses, including general operating support, programmatic support and capacity building. The monies in the fund must be used to provide scholarships for life safety training of firefighters in this state.

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

§ 28-2453 Arizona professional golf special plates; fund

A. If, by December 31, 2015, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue Arizona professional golf special plates. The person that provides the thirty-two thousand dollars shall design the Arizona professional golf special plates. The design and color of the Arizona professional golf special plates are subject to the approval of the department. The director may allow a request for Arizona professional golf 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 Arizona professional golf special plates.

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 an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona professional golf special plate fund established by this section.

D. The Arizona professional golf special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person that provides the thirty-two thousand dollars pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the Arizona professional golf special plate fund, excluding administrative fees, to a foundation that is an incorporated nonprofit corporation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that does all of the following:

1. Develops and operates youth golf programs in this state.

2. Teaches golf and operates golf specific programs to benefit individuals with intellectual and physical disabilities by promoting self-esteem and a sense of belonging.

3. Teaches programs that focus on the inherent values related to the game of golf, including sportsmanship, perseverance, honesty, integrity, respect, confidence, responsibility, courtesy and judgment.

4. Provides scholarships for youth based on community involvement and academic excellence.

5. Assists allied organizations for the benefit of teaching golf to youth.

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

§ 28-2454 Military scholarship special plates

A. If, by December 31, 2015, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue military scholarship special plates. The design and color of the military scholarship special plates are subject to the approval of the department. The director may allow a request for military scholarship 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 military scholarship special plates.

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 an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the veterans' donations fund established by section 41-608.

§ 28-2455 Health sciences educational institution special plates; fund

A. If, by December 31, 2015, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue health sciences educational institution special plates. The design and color of the health sciences educational institution special plates are subject to the approval of the department. The director may allow a request for health sciences educational institution 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 health sciences educational institution special plates.

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 an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the health sciences educational institution special plate fund established by subsection D of this section.

D. The health sciences educational institution special plate fund is established consisting of monies received pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person that provides the thirty-two thousand dollars pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. The director shall annually allocate monies from the fund, excluding administrative fees, to a private entity that is recognized as a nonprofit corporation under section 501(c) of the internal revenue code, that solely provides graduate and postgraduate education in the health sciences and that has an enrollment of at least three thousand full-time students. The entity receiving the monies must use the monies for academic scholarships. For the purposes of this subsection, "health sciences" includes medicine, nursing, physician assistant studies, pharmacy, physical therapy, occupational therapy, biomedical sciences, podiatry, clinical psychology, cardiovascular science, nurse anesthesia, dentistry, optometry and veterinary medicine.

E. On notice from the director, 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. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 28-2456 Historic federal highway preservation special plates; fund

A. If, by December 31, 2016, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue historic federal highway preservation special plates. The person that provides the thirty-two thousand dollars shall design the historic federal highway preservation special plates. The design and color of the historic federal highway preservation special plates are subject to the approval of the department. The director may allow a request for historic federal highway preservation 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 the historic federal highway preservation special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the historic federal highway preservation special plate fund established by this section.

D. The historic federal highway preservation special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The organization must:

1. Have been in existence for at least thirty years.

2. Be dedicated to its mission to preserve, protect and promote a federal highway that is in this state.

3. Have contributed efforts that resulted in this state's segment of the federal highway being designated as a historic road and a national scenic byway and in the highway attaining all-American road status.

4. Assist all communities in this state along the federal highway with preservation and marketing projects.

F. On notice from the director, 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.

§ 28-2457 First responder special plates; fund

A. If, by December 31, 2016, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue first responder special plates. The person who provides the thirty-two thousand dollars shall design the first responder special plates. The design and color of the first responder special plates are subject to the approval of the department. The director may allow a request for first responder 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 the first responder special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the first responder special plate fund established by this section.

D. The first responder special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person who paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must offer immediate financial assistance, emotional support, peer training and professional referral services to families of public safety officers and firefighters who are seriously injured or killed in the line of duty. The entity must offer scholarships to family members of public safety officers and firefighters who wish to continue their education beyond high school. The entity must have been in existence for at least forty-five years.

F. On notice from the director, 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.

§ 28-2458 Play unified special plates; fund

A. If, by December 31, 2018, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue play unified special plates. The person that provides the thirty-two thousand dollars shall design the play unified special plates. The design and color of the play unified special plates are subject to the approval of the department. The director may allow a request for play unified 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 the play unified special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the play unified special plate fund established by this section.

D. The play unified special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an organization that is a nonprofit corporation in this state that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that does all of the following:

1. Is dedicated to promoting social inclusion for individuals with disabilities and those without disabilities through sports, health, youth and adult leadership and other self-advocacy programs and campaigns.

2. Operates an education and sports based project supported by an engaged youth community that increases athletic and leadership opportunities for students with and without intellectual disabilities.

3. Activates youth to promote school communities that foster respect, dignity and advocacy for people with intellectual disabilities.

F. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided in section 35-313, and monies earned from investment shall be credited to the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 28-2459 Regionally accredited institution of higher education special plates; fund

A. If, by December 31, 2016, a regionally accredited institution of higher education with at least one university campus in this state pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue regionally accredited institution of higher education special plates when the department has the technology necessary for issuance. The entity that provides the thirty-two thousand dollars shall design the regionally accredited institution of higher education special plates. The design and color of the regionally accredited institution of higher education special plates are subject to the approval of the department. The director may allow a request for regionally accredited institution of higher education 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 the regionally accredited institution of higher education special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the regionally accredited institution of higher education special plate fund established by this section.

D. The regionally accredited institution of higher education special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to a foundation of a regionally accredited institution of higher education in this state with at least one university campus in this state that has more than two thousand students residing on the campus and that has a nondiscrimination policy for admissions. The foundation must be a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes.

F. On notice from the director, 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.

§ 28-2460 Collector car auction special plates; fund

A. If, by December 31, 2017, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue collector car auction special plates. The person that provides the thirty-two thousand dollars shall design the collector car auction special plates. The design and color of the collector car auction special plates are subject to the approval of the department. The director may allow a request for collector car auction 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 the collector car auction special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the collector car auction special plate fund established by this section.

D. The collector car auction special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that is affiliated with a collector car auction company that meets all of the following:

1. Is headquartered in this state.

2. Has been operating in this state for over twenty consecutive years.

3. Is a public consignment auction dealer as defined in section 28-4301.

4. Auctions more than one thousand collector vehicles for no reserve each year in this state.

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

§ 28-2461 Active duty military installation support special plates; fund

A. If, by December 31, 2017, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue active duty military installation support special plates. The person that provides the thirty-two thousand dollars shall design the active duty military installation support special plates. The design and color of the active duty military installation support special plates are subject to the approval of the department. The director may allow a request for active duty military installation support 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 the active duty military installation support special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the active duty military installation support special plate fund established by this section.

D. The active duty military installation support special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an organization that is a nonprofit corporation in this state, that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets all of the following:

1. Is headquartered in this state.

2. Has been operating in this state for over ten consecutive years.

3. Has a sole purpose to support an active duty military installation in this state.

4. Provides programs and services for the active duty military installation to benefit members of the United States military and their families.

5. Provides financial support to programs and services supporting the active duty military installation. The programs and services may include support for morale and well-being, culture and tradition and mission sustainability activities.

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

§ 28-2462 Science education special plates; fund

A. If, by December 31, 2017, a person pays thirty-two thousand dollars to the department for the implementation of this section, the department shall issue science education special plates. The person that provides the thirty-two thousand dollars shall design the science education special plates. The design and color of the science education special plates are subject to the approval of the department. The director may allow a request for science education 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 the science education special plates.

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

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the science education special plate fund established by this section.

D. The science education special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets all of the following:

1. Is headquartered in this state.

2. Has been operating in this state for over thirty consecutive years.

3. As its primary purpose, is delivering informal science education to students, teachers and families.

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

§ 28-2463 Alzheimer's disease research special plates

A. If, by December 31, 2019, a person pays $32,000 to the department for the implementation of this section, the department shall issue Alzheimer's disease research special plates. The person that provides the $32,000 shall design the Alzheimer's disease research special plates. The design and color of the Alzheimer's disease research special plates are subject to the approval of the department. The director may allow a request for Alzheimer's disease research 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 the Alzheimer's disease research special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Alzheimer's disease research fund established by section 36-123.02.

§ 28-2464 Share the road special plates; fund

A. If, by December 31, 2019, a person pays $32,000 to the department for the implementation of this section, the department shall issue share the road special plates. The person that provides the $32,000 shall design the share the road special plates. The design and color of the share the road special plates are subject to the approval of the department. The director may allow a request for share the road 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 the share the road special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the share the road special plate fund established by this section.

D. The share the road special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, as follows:

1. Fifty percent to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets both of the following:

(a) Is headquartered in this state.

(b) Promotes safety and awareness in the cycling community.

2. Fifty percent to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets both of the following:

(a) Is headquartered in this state.

(b) Offers the opportunity for a person to use a loaner bicycle if the person is registered in a charity cycling event and is not able to afford to purchase a bicycle.

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

§ 28-2465 Affordable homeownership special plates; fund

A. If, by December 31, 2019, a person pays $32,000 to the department for the implementation of this section, the department shall issue affordable homeownership special plates. The person that provides the $32,000 shall design the affordable homeownership special plates. The design and color of the affordable homeownership special plates are subject to the approval of the department. The director may allow a request for affordable homeownership 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 the affordable homeownership special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the affordable homeownership special plate fund established by this section.

D. The affordable homeownership special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets all of the following:

1. Seeks to bring people together to build homes, communities and hope.

2. Focuses on providing shelter.

3. Advocates for affordable housing.

4. Promotes dignity and hope.

5. Supports sustainable and transformative development.

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

§ 28-2466 Collegiate football bowl game special plates; fund

A. If, by December 31, 2019, a person pays $32,000 to the department for the implementation of this section, the department shall issue collegiate football bowl game special plates. The person that provides the $32,000 shall design the collegiate football bowl game special plates. The design and color of the collegiate football bowl game special plates are subject to the approval of the department. The director may allow a request for collegiate football bowl game 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 the collegiate football bowl game special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the collegiate football bowl game special plate fund established by this section.

D. The collegiate football bowl game special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets all of the following:

1. Is headquartered in this state.

2. Has been operating in this state for over forty-five years.

3. Is affiliated with two collegiate football bowl games that are played in this state.

4. Has donated at least $15,000,000 to charitable organizations in this state that are qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes.

5. Fosters a culture of community outreach and service.

6. Strives to enhance organizations that contribute to the success of their communities through youth, sports and education.

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

§ 28-2467 Community services special plates; fund

A. If, by December 31, 2019, a person pays $32,000 to the department for the implementation of this section, the department shall issue community services special plates. The person that provides the $32,000 shall design the community services special plates. The design and color of the community services special plates are subject to the approval of the department. The director may allow a request for community services 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 the community services special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the community services special plate fund established by this section.

D. The community services special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets all of the following:

1. Is located in an incorporated community with a population of less than five hundred persons and an elevation of at least seven thousand feet and that is located in a county with a population of more than five hundred thousand persons and less than one million five hundred thousand persons.

2. Promotes economic development and business cooperation with the county and other governmental organizations.

3. Solicits and administers grants to improve public facilities.

4. Sponsors, hosts or organizes events and educational activities that promote tourism and fire prevention.

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

§ 28-2468 Humanitarian services special plates; fund

A. If, by December 31, 2019, a person pays $32,000 to the department for the implementation of this section, the department shall issue humanitarian services special plates. The person that provides the $32,000 shall design the humanitarian services special plates. The design and color of the humanitarian services special plates are subject to the approval of the department. The director may allow a request for humanitarian services 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 the humanitarian services special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the humanitarian services special plate fund established by this section.

D. The humanitarian services special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets all of the following:

1. Was founded in 1917 by a resident of this state.

2. Has almost one million five hundred thousand members worldwide.

3. Is the largest nongovernmental entity in the world.

4. Is the only nongovernmental entity with a presence at the United Nations.

5. Has a mission to learn, discover, act and celebrate.

6. Focuses on vision, youth, disaster relief, humanitarian aid, diabetes, hunger, the environment and childhood cancer.

F. The monies distributed pursuant to subsection E of this section shall be used for the following:

1. Summer camp programs for special needs children and adults.

2. Vision and hearing services.

3. Maintaining and operating the charitable organization's memorial and visitor center.

4. Community service projects.

5. Senior care facilities.

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

§ 28-2469 Support cancer victims special plates; fund

A. If, by December 31, 2022, a person pays $32,000 to the department for the implementation of this section, the department shall issue support cancer victims special plates. The person that provides the $32,000 shall design the support cancer victims special plates. The design and color of the support cancer victims special plates are subject to the approval of the department. The director may allow a request for support cancer victims 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 the support cancer victims special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the support cancer victims special plate fund established by this section.

D. The support cancer victims special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Provide emotional, nutritional and physical support for cancer victims, families and caregivers.

2. Provide evidenced-based programming that includes symptom management, mental health and long-term survivorship skill training offered in a home-like, comfortable, nonclinical environment.

3. Deliver all programs free of charge to anyone impacted by cancer.

4. Have been in operation in this state for over twenty years.

5. Be affiliated with a national organization promoting the same cause.

6. Have a statewide mission to serve all parts of this state, including rural and underserved communities.

F. On notice from the director, 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.

§ 28-2470 Real estate professional special plates; fund

A. If, by December 31, 2021, an entity pays $32,000 to the department for the implementation of this section, the department shall issue real estate professional special plates to an applicant who is a member of the entity. The entity that provides the $32,000 shall design the real estate professional special plates. The design and color of the real estate professional special plates are subject to the approval of the department. The director may allow a request for real estate professional 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 the real estate professional special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the real estate professional special plate fund established by this section.

D. The real estate professional special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to a charitable organization that is qualified under section 501(c)(6) of the United States internal revenue code for federal income tax purposes and that all of the following:

1. Is a trade association in this state.

2. Represents more than fifty thousand real estate professionals.

3. Subscribes to the strict code of ethics outlined by the national association of realtors.

4. Has members who are active real estate licensees under title 32, chapter 20 and who include professionals from all areas of real estate, including residential, commercial, property management, land, appraisal and relocation.

F. The monies distributed pursuant to subsection E of this section shall be used to help build and operate affordable supportive housing so more units can be constructed to meet the growing needs for our communities in this state and reduce the number of people experiencing homelessness.

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

§ 28-2470.01 Empowering today's youth special plates; fund

A. If, by December 31, 2021, a person pays $32,000 to the department for the implementation of this section, the department shall issue empowering today's youth special plates. The person that provides the $32,000 shall design the empowering today's youth special plates. The design and color of the empowering today's youth special plates are subject to the approval of the department. The director may allow a request for empowering today's youth 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 the empowering today's youth special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the empowering today's youth special plate fund established by this section.

D. The empowering today's youth special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the empowering today's youth special plate fund, excluding administrative fees, to a foundation that satisfies all of the following requirements:

1. Is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes.

2. Provides financial support for a youth development organization of the land grant university system in this state that has the following mission mandates:

(a) Agriculture.

(b) Science, technology, engineering and mathematics.

(c) Civic engagement.

(d) Healthy living.

3. Was incorporated in 1970 as a nonprofit educational organization by a group of this state's agricultural, civic and corporate leaders.

4. Gives today's youth an extra edge for life success through hands-on, research-based educational programs and opportunities.

5. Serves youths who are five through eighteen years of age in all fifteen counties in this state and in at least five tribal nations.

F. On notice from the director, 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.

§ 28-2470.02 Congenital heart defect special plates

A. If, by December 31, 2022, a person pays $32,000 to the department for the implementation of this section, the department shall issue congenital heart defect special plates. The person that provides the $32,000 shall design the congenital heart defect special plates. The design and color of the congenital heart defect special plates are subject to the approval of the department. The director may allow a request for congenital heart defect 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 the congenital heart defect special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the congenital heart defect special plate fund established by section 36-123.03.

§ 28-2470.03 Veterans of overseas conflicts special plates; fund

A. If, by December 31, 2021, a person pays $32,000 to the department for the implementation of this section, the department shall issue veterans of overseas conflicts special plates. The person that provides the $32,000 shall design the veterans of overseas conflicts special plates. The design and color of the veterans of overseas conflicts special plates are subject to the approval of the department. The director may allow a request for veterans of overseas conflicts 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 the veterans of overseas conflicts special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the veterans of overseas conflicts special plate fund established by this section.

D. The veterans of overseas conflicts special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is qualified under section 501(c)(19) of the United States internal revenue code for federal income tax purposes. The entity may use the monies only to train and pay persons throughout this state where needed to process veterans claims for service-connected disabilities and illnesses. The entity must:

1. Be located in this state.

2. Have a mission to:

(a) Foster camaraderie among United States veterans of overseas conflicts.

(b) Serve veterans, the military and the community.

(c) Advocate on behalf of all veterans.

3. Have a vision to ensure that veterans are respected for their service, always receive their earned entitlements and are recognized for the sacrifices they and their loved ones make on behalf of the United States.

4. Have the following core values:

(a) Always put the interest of the entity's members first.

(b) Treat donors as partners in the entity's cause.

(c) Promote patriotism.

(d) Honor military service.

(e) Ensure the care of veterans and their families.

(f) Serve the entity's communities.

(g) Promote a positive image of veterans of foreign wars.

(h) Respect the diversity of veteran opinions.

F. On notice from the director, 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.

§ 28-2470.04 Wishes for children with critical illnesses special plates; fund

A. If, by December 31, 2021, a person pays $32,000 to the department for the implementation of this section, the department shall issue wishes for children with critical illnesses special plates. The person that provides the $32,000 shall design, in consultation with law enforcement, the wishes for children with critical illnesses special plates. The design and color of the wishes for children with critical illnesses special plates are subject to the approval of the department. The director may allow a request for wishes for children with critical illnesses 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 the wishes for children with critical illnesses special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the wishes for children with critical illnesses special plate fund established by this section.

D. The wishes for children with critical illnesses special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be headquartered in this state.

2. Have incorporated in this state in 1982.

3. Create life-changing wishes for children who live in this state and who have critical illnesses.

4. Transform lives through the granting of unique and personalized wish experiences during a child's diagnosis with and treatment of a critical illness.

5. Serve children in this state.

F. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

G. On notice from the director, 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.

§ 28-2470.05 Veterans of overseas conflicts auxiliary special plates; fund

A. If, by December 31, 2021, a person pays $32,000 to the department for the implementation of this section, the department shall issue veterans of overseas conflicts auxiliary special plates. The director may allow a request for veterans of overseas conflicts auxiliary 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 the veterans of overseas conflicts auxiliary special plates.

B. The veterans of overseas conflicts auxiliary special plates shall have a standard design with both of the following:

1. One area on the plate that is a three-inch square and that is set aside for a logo or message.

2. One area on the bottom of the plate that is set aside for a message.

C. The department shall determine the standard design of the special plate prescribed by subsection A of this section and shall approve the logo or message prescribed by subsection B of this section.

D. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

E. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the veterans of overseas conflicts auxiliary special plate fund established by this section.

F. The veterans of overseas conflicts auxiliary special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

G. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is qualified under section 501(c)(19) of the United States internal revenue code for federal income tax purposes. The entity may use the monies only to fund its charitable works. The entity must:

1. Be located in this state.

2. Have a tradition of serving veterans, active duty personnel and their families.

3. Have been established in 1931.

4. Have over ten thousand members.

5. Have at least fifty-two auxiliaries in this state.

6. Have begun serving male family members of women veterans and women active duty personnel in 2015.

H. On notice from the director, 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.

§ 28-2470.06 Education and community enrichment special plates; fund

A. If, by December 31, 2021, a person pays $32,000 to the department for the implementation of this section, the department shall issue education and community enrichment special plates. The person that provides the $32,000 shall design the education and community enrichment special plates. The design and color of the education and community enrichment special plates are subject to the approval of the department. The director may allow a request for education and community enrichment 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 the education and community enrichment special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the education and community enrichment special plate fund established by this section.

D. The education and community enrichment special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be headquartered in this state.

2. Have a mission to promote education through scholarships and other educational programming and to promote youth activities, sports and cultural enrichment in the community.

3. Develop programming through partnerships and collaboration with local community organizations.

4. Have an annual grant cycle and emphasize giving grants to nonprofits that work in the areas of youth, youth sports, education, western heritage or cultural and community enrichment.

5. Provide the following:

(a) Grant funding for individual schools.

(b) Science, technology, engineering and mathematics education grants.

(c) Robotics program grants.

(d) Project graduation grants.

(e) Future teacher scholarships.

(f) Scholarships to Scottsdale community college.

(g) National board certification scholarships.

(h) Education scholarships.

(i) Monies to educational programs that are designed to bring more persons to the teaching profession.

(j) Monies to programs that further the effort of educating the youth in this state.

F. On notice from the director, 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.

§ 28-2470.07 Rodeo special plates; fund

A. If, by December 31, 2021, a person pays $32,000 to the department for the implementation of this section, the department shall issue rodeo special plates. The person that provides the $32,000 shall design the rodeo special plates. The design and color of the rodeo special plates are subject to the approval of the department. The director may allow a request for rodeo 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 the rodeo special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the rodeo special plate fund established by this section.

D. The rodeo special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be headquartered in this state.

2. Support a museum in this state that boasts rodeo artifacts going back to at least 1953, including saddles ridden by famous rodeo champions.

3. Award collegiate scholarships.

F. On notice from the director, 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.

§ 28-2470.08 Children and families special plates; fund

A. If, by December 31, 2021, an entity pays $32,000 to the department for the implementation of this section, the department shall issue children and families special plates. The entity that provides the $32,000 shall design the children and families special plates. The design and color of the children and families special plates are subject to the approval of the department. The director may allow a request for children and families 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 the children and families special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the children and families special plate fund established by this section.

D. The children and families special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is qualified under section 501(c)(6) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be headquartered in this state.

2. Have been established in 1937 and incorporated in this state in 1978.

3. Sponsor a professional golf tournament in this state.

4. Have over three hundred members.

5. Provide monies to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes that:

(a) Has a board that consists of fifteen members from varying professional backgrounds.

(b) Has a mission to support organizations that assist children and families, help people in need and improve the quality of life in the greater Phoenix metropolitan area.

(c) Directs its giving toward organizations based or with a significant presence in this state.

F. On notice from the director, 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.

§ 28-2470.09 Empowering charitable organizations special plates; fund

A. If, by December 31, 2021, a person pays $32,000 to the department for the implementation of this section, the department shall issue empowering charitable organizations special plates. The person that provides the $32,000 shall design the empowering charitable organizations special plates. The design and color of the empowering charitable organizations special plates are subject to the approval of the department. The director may allow a request for empowering charitable organizations 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 the empowering charitable organizations special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the empowering charitable organizations special plate fund established by this section.

D. The empowering charitable organizations special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be headquartered in this state.

2. Have a mission to improve lives in the greater Tucson community by empowering charitable organizations with resources to carry out their missions of assisting veterans and active duty military members who are based in the southern part of this state.

F. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

G. On notice from the director, 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.

§ 28-2470.10 Army scholarship special plates; fund

A. If, by December 31, 2022, a person pays $32,000 to the department for the implementation of this section, the department shall issue army scholarship special plates. The person that provides the $32,000 shall design the army scholarship special plates. The design and color of the army scholarship special plates are subject to the approval of the department. The director may allow a request for army scholarship 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 the army scholarship special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the veterans' donations fund established by section 41-608.

§ 28-2470.11 Hualapai tribe special plates

A. If, by December 31, 2022, a person pays $32,000 to the department for the implementation of this section, the department shall issue Hualapai tribe special plates. The color and design of the Hualapai tribe special plates shall be different from the color and design of regular license plates determined by the department and shall be representative of the Hualapai tribe. The director may allow a request for Hualapai tribe 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 the Hualapai tribe special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the Hualapai tribal public works department. The Hualapai tribal public works department shall use these monies for road maintenance services and for traffic control devices that conform to the manual and specifications prescribed in section 28-641 on highways on the Hualapai tribe reservation that are located in this state and that are not state highways.

§ 28-2470.12 Youth music and art special plates; fund

A. If, by December 31, 2022, a person pays $32,000 to the department for the implementation of this section, the department shall issue youth music and art special plates. The person that provides the $32,000 shall design the youth music and art special plates. The design and color of the youth music and art special plates are subject to the approval of the department. The director may allow a request for youth music and art 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 the youth music and art special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the youth music and art special plate fund established by this section.

D. The youth music and art special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be located in this state.

2. Have been in existence since 1995.

3. Have a mission to inspire persons who are at least twelve years of age and under twenty-one years of age to grow through music, dance and art.

4. Provide an inclusive, welcoming and safe place for teenagers to explore and discover their creativity and give them the hope they need to change their lives.

5. Foster a support system, facility and classes in the arts and entertainment to impact the lives of young persons and shape their futures for the better.

6. Uniquely provide classes, lessons, mentorship and guidance from various accomplished members and celebrities in the arts fields.

F. On notice from the director, 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.

§ 28-2470.13 Community impact special plates; fund

A. If, by December 31, 2022, a person pays $32,000 to the department for the implementation of this section, the department shall issue community impact special plates. The person that provides the $32,000 shall design the community impact special plates. The design and color of the community impact special plates are subject to the approval of the department. The director may allow a request for community impact 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 the community impact special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the community impact fund established by this section.

D. The community impact special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be headquartered in this state.

2. Be affiliated with a clothing brand that is inspired by this state and that is headquartered in this state.

3. Have a mission to drive local innovation and inspire community action through the support and empowerment of entrepreneurs in this state.

4. Be dedicated to the prosperity of its community members and this state through the support of local organizations.

5. Provide both of the following:

(a) Grant opportunities to entrepreneurs in this state.

(b) Mentorships and programming for entrepreneurs in this state.

F. On notice from the director, 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.

§ 28-2470.14 Remembrance special plates; fund

A. If, by December 31, 2022, a person pays $32,000 to the department for the implementation of this section, the department shall issue remembrance special plates. The person that provides the $32,000 shall design the remembrance special plates. The design and color of the remembrance special plates are subject to the approval of the department. The director may allow a request for remembrance 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 the remembrance special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the remembrance special plate fund established by this section.

D. The remembrance special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be based in this state.

2. Have been established in 2012.

3. Have a mission to provide a safe community and support system for children and families on their grief journey.

4. Offer peer-to-peer grief support groups, grief informed training to communities and schools and facilitate a grief resource center for children and families who are grieving.

5. Help families rediscover happiness through support groups, special events and a community of understanding people.

6. Provide peer support and education groups to help grieving children learn healthy coping skills, to prevent mental health challenges later in adolescence and adulthood and to gain a renewed sense of hope.

7. Provide services to children and families at no cost.

8. Be named after a person whose father died in 2005.

F. On notice from the director, 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.

§ 28-2470.15 Ovarian cancer awareness special plates; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue ovarian cancer awareness special plates. The person that provides the $32,000 shall design the ovarian cancer awareness special plates. The design and color of the ovarian cancer awareness special plates are subject to the approval of the department. The director may allow a request for ovarian cancer awareness 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 the ovarian cancer awareness special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the ovarian cancer awareness special plate fund established by this section.

D. The ovarian cancer awareness special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be a national women's health organization.

2. Have a mission to save lives by fighting to prevent and cure ovarian cancer and to improve the quality of life for survivors.

3. Raise earlier awareness about the signs, symptoms and risk factors of ovarian cancer and educate the public about the power of early detection.

4. Provide resources, services and support so that women with ovarian cancer can live extraordinary lives.

5. Fund the most impactful research initiatives that push forward the study of ovarian cancer detection and treatment.

6. Create nationwide movements that activate communities across the United States to become involved in the battle against ovarian cancer.

F. On notice from the director, 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.

§ 28-2470.16 Tribally accredited institution of higher education special plates; fund

A. If, by December 31, 2022, a person pays $32,000 to the department for the implementation of this section, the department shall issue tribally accredited institution of higher education special plates. The person that provides the $32,000 shall design the tribally accredited institution of higher education special plates. The design and color of the tribally accredited institution of higher education special plates are subject to the approval of the department. The director may allow a request for tribally accredited institution of higher education 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 the tribally accredited institution of higher education special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the tribally accredited institution of higher education special plate fund established by this section.

D. The tribally accredited institution of higher education special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to a tribally accredited institution of higher education in this state. The tribally accredited institution of higher education must:

1. Be a charitable organization that is qualified under section 501(c)(3) of the internal revenue code for federal income tax purposes.

2. Operate exclusively for educational and charitable purposes.

3. Be the first tribal college in the United States.

F. On notice from the director, 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.

§ 28-2470.17 Arizona beekeepers special plates; fund

A. If, by December 31, 2022, a person pays $32,000 to the department for the implementation of this section, the department shall issue Arizona beekeepers special plates. The person that provides the $32,000 shall design the Arizona beekeepers special plates. The design and color of the Arizona beekeepers special plates are subject to the approval of the department. The director may allow a request for Arizona beekeepers 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 the Arizona beekeepers special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona beekeepers special plate fund established by this section.

D. The Arizona beekeepers special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be located in this state.

2. Have been in existence since 2017.

3. Have a mission to teach and encourage better methods among beekeepers in this state, to promote cooperation and sharing, to reach a common understanding regarding beekeeper problems and solutions and to stimulate the interest of the general public in the advantages and benefits of beekeeping.

4. Encourage the study of and research in apiculture with an emphasis on better methodology, increased production, public safety and improved marketing.

5. Participate in outreach activities, including special events and visits to schools, to teach and inform the general public about honeybees and the beekeeping industry.

§ 28-2470.18 Gila River Indian community special plates

A. If by December 31, 2024, a person pays $32,000 to the department for the implementation of this section, the department shall issue Gila River Indian community special plates. The person that provides the $32,000 shall design the Gila River Indian community special plates. The design and color of the Gila River Indian community special plates are subject to the approval of the department. The director may allow a request for Gila River Indian community 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 the Gila River Indian community special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the Gila River Indian community transportation committee. The Gila River Indian community transportation committee shall use these monies only for traffic control devices that conform to the manual and specifications prescribed in section 28-641 on highways on the Gila River Indian reservation that are located in this state and that are not state highways.

§ 28-2470.19 Ak-Chin Indian community special plates

A. If, by December 31, 2023, a person pays $32,000 to the department for the implementation of this section, the department shall issue Ak-Chin Indian community special plates. The person that provides the $32,000 shall design the AK-Chin Indian community special plates. The design and color of the Ak-Chin Indian community special plates are subject to the approval of the department. The director may allow a request for Ak-Chin Indian community 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 the Ak-Chin Indian community special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the Ak-Chin Indian community department of public safety. The Ak-Chin Indian community department of public safety shall use these monies only for traffic control devices that conform to the manual and specifications prescribed in section 28-641 on highways on the Ak-Chin Indian reservation that are located in this state and that are not state highways.

§ 28-2470.20 Humanitarian service organization special plates; fund

A. If by December 31, 2023, a person pays $32,000 to the department for the implementation of this section, the department shall issue humanitarian service organization special plates. The person that provides the $32,000 shall design the humanitarian service organization special plates. The design and color of the humanitarian service organization special plates are subject to the approval of the department. The director may allow a request for humanitarian service organization 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 the humanitarian service organization special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the humanitarian service organization special plate fund established by this section.

D. The humanitarian service organization special plate fund is established consisting of monies deposited pursuant to this section. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets all of the following:

1. Has a global network of at least one million two hundred thousand persons who make a positive and lasting change in communities in the United States and outside of the United States.

2. Takes action on sustainable projects.

3. Works to better the world and communities through projects relating to literacy, peace, water and health.

4. Has been in this state since 1914.

5. Has at least one hundred fourteen clubs in this state and has a membership of more than five thousand members in this state.

6. Has raised monies in this state to support service projects in the following areas:

(a) Promoting peace.

(b) Fighting disease.

(c) Providing clean water, sanitation and hygiene.

(d) Saving mothers and children.

(e) Supporting education.

(f) Growing local economies.

(g) Protecting the environment.

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

§ 28-2470.21 Pascua Yaqui tribe special plates

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue Pascua Yaqui tribe special plates. The director may allow a request for Pascua Yaqui tribe 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 the Pascua Yaqui tribe special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the Pascua Yaqui tribe. The Pascua Yaqui tribe shall use these monies only for the following:

1. Education scholarships, including monies for academic related and extracurricular activities, for children in the Pascua Yaqui tribe.

2. Legal assistance for unrepresented persons.

§ 28-2470.22 Arizona professional soccer club special plates; fund

A. If by December 31, 2023, a person pays $32,000 to the department for the implementation of this section, the department shall issue Arizona professional soccer club special plates. The person that provides the $32,000 shall design the Arizona professional soccer club special plates. The design and color of the Arizona professional soccer club special plates are subject to the approval of the department. The director may allow a request for Arizona professional soccer club 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 the Arizona professional soccer club special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and all donations collected pursuant to this section in the Arizona professional soccer club special plate fund established by this section.

D. The Arizona professional soccer club special plate fund is established consisting of monies deposited pursuant to this section. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund, excluding administrative fees, to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets all of the following:

1. Is an Arizona professional soccer club foundation.

2. Has a mission to support the development of student athletes in the community by focusing attention on the whole athlete with emphasis on character, teamwork, commitment and self-confidence.

3. Provides financial awards to families with financial barriers to participation in soccer programs.

4. Develops youth soccer programs in this state.

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

§ 28-2470.23 Northern Arizona wine trail special plates; fund

A. If, by December 31, 2024, a person pays $32,000 to the department for the implementation of this section, the department shall issue northern Arizona wine trail special plates. The person that provides the $32,000 shall design the northern Arizona wine trail special plates. The design and color of the northern Arizona wine trail special plates are subject to the approval of the department. The director may allow a request for northern Arizona wine trail 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 the northern Arizona wine trail special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the northern Arizona wine trail special plate fund established by this section.

D. The northern Arizona wine trail special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Have more than twenty winery members that are located in a designated American viticultural area in the north central region of this state that has vineyards that are examples of sustainable practices making grapes an even more efficient water crop.

2. Encourage continued growth of the region described in paragraph 1 of this subsection by promoting water-friendly vineyard development and helping industry professionals play a more prominent role in advocating for responsible drinking.

F. On notice from the director, 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.

§ 28-2470.24 Neurodiversity services and research special plates; fund

A. If, by December 31, 2024, a person pays $32,000 to the department for the implementation of this section, the department shall issue neurodiversity services and research special plates. The person that provides the $32,000 shall design the neurodiversity services and research special plates. The design and color of the neurodiversity services and research special plates are subject to the approval of the department. The director may allow a request for neurodiversity services and research 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 the neurodiversity services and research special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the neurodiversity services and research special plate fund established by this section.

D. The neurodiversity services and research special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to two entities that are qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that are engaged with the neurodiversity community as follows:

1. One entity must:

(a) Be an internationally recognized leader that conducts innovative research, provides evidence-based practices, disseminates effective training and builds inclusive communities for individuals of all ages with autism and their families.

(b) Offer nearly twenty programs and services rooted in applied behavior analysis and provide community outreach and training.

(c) Have an innovative research program that brings together scientists and stakeholders to gain a better understanding of possible causes of autism, identify better treatments and educate others about how to improve the quality of life for those impacted.

2. One entity must:

(a) Advance innovative residential and community options for adults with autism, down syndrome, traumatic brain injury and other neurodiversities through its vision for fueling a new wave of real estate and community integrated living options.

(b) Have a property that is eighty-one thousand square feet and that contains a sixty-three unit apartment community set in an urban area.

(c) Have an institute that leverages the property described in subdivision (b) of this paragraph to serve as a research and development site and to support the replication of residential and postsecondary education models through collaboration among the public, private, philanthropic and nonprofit sectors.

F. On notice from the director, 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.

§ 28-2470.25 Wildland fire prevention special plates; fund

A. If, by December 31, 2024, a person pays $32,000 to the department for the implementation of this section, the department shall issue wildland fire prevention special plates. The person that provides the $32,000 shall design the wildland fire prevention special plates. The design and color of the wildland fire prevention special plates are subject to the approval of the department. The director may allow a request for wildland fire prevention 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 the wildland fire prevention special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the wildland fire prevention special plate fund established by this section.

D. The wildland fire prevention special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Have a vision of an exemplary, one-of-a-kind wildland fire learning center that honors the legacy of deceased hotshot crew firefighters by educating, inspiring and motivating visitors to adopt behaviors that prevent wildland fires, resulting in fewer fire-related fatalities.

2. Have a mission to establish and operate a wildland fire learning center that honors deceased hotshot crew firefighters by telling their story, displaying and housing artifacts and memorabilia and educating visitors about wildland fire, firefighting and prevention.

3. Has a board comprised of family members of deceased hotshot crew firefighters and community members.

F. On notice from the director, 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.

§ 28-2470.26 Teen suicide awareness special plates; fund

A. If, by December 31, 2024, a person pays $32,000 to the department for the implementation of this section, the department shall issue teen suicide awareness special plates. The person that provides the $32,000 shall design the teen suicide awareness special plates. The design and color of the teen suicide awareness special plates are subject to the approval of the department. The director may allow a request for teen suicide awareness 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 the teen suicide awareness special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the teen suicide awareness special plate fund established by this section.

D. The teen suicide awareness special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Have been established in this state in 1986 to prevent teen suicide.

2. Provide a peer-to-peer teen crisis hotline and text line.

3. Have a mission to prevent teen suicide through enhancing resiliency in youth and fostering supportive communities.

4. Provide teen suicide prevention education to teenagers, schools and the community at large.

5. Have begun the school identification card initiative in 2015 to put peer counseling information on the back of student identification cards.

6. Host tabling events for teen suicide prevention awareness month.

7. Provide prevention and hotline services to children and families at no cost.

8. Facilitate suicide prevention trainings for school staff.

F. On notice from the director, 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.

§ 28-2470.27 West valley charity special plates; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue west valley charity special plates. The person that provides the $32,000 shall design the west valley charity special plates. The design and color of the west valley charity special plates are subject to approval of the department. The director may allow a request for west valley charity 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 the west valley charity special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the west valley charity special plate fund established by this section.

D. The west valley charity special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must have:

1. Been in existence since 2013.

2. At least fifty active members who volunteer with the organization.

3. A mission that includes all of the following objectives relating to phoenix west valley communities:

(a) Assisting children, families and veterans.

(b) Helping people in need.

(c) Improving the quality of life.

4. An annual beneficiary grant award process.

F. On notice from the director, 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.

§ 28-2470.28 Youth charities organization special plate; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue youth charities organization special plates. The person that provides the $32,000 shall design the youth charities organization special plates. The color and design of the youth charities organization special plates are subject to approval of the department. The director may allow a request for youth charities organization 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 the youth charities organization special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the youth charities organization special plate fund established by this section.

D. The youth charities organization special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be headquartered in this state.

2. Have been incorporated in this state in March 1996.

3. Exclusively support Arizona children's charities through at least two annual fundraising events.

4. Be affiliated with a membership-based organization that is headquartered in Scottsdale, Arizona that consists of an active membership of not more than sixty-five members under forty years of age.

F. On notice from the director, 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.

§ 28-2470.29 Made in Arizona special plates

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue made in Arizona special plates. The person that provides the $32,000 shall design the made in Arizona special plates. The design and color of the made in Arizona special plates are subject to approval of the department.

B. The director may allow a request for made in Arizona special plates to be combined with:

1. 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 the made in Arizona special plates.

2. A request for an alternative fuel vehicle sticker issued pursuant to section 28-2416, subsection D. If the director allows such a combination, the request shall be in a form prescribed by the director and is subject to the administrative fee for the alternative fuel vehicle sticker in addition to the fees required for the made in Arizona special plates.

C. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

D. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the made in Arizona special plate fund established by section 41-1506.03.

§ 28-2470.30 Education fundraising special plates; fund; definition

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue education fundraising special plates. The person that provides the $32,000 shall design the education fundraising special plates. The design and color of the education fundraising special plates are subject to approval of the department. The director may allow a request for education fundraising 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 the education fundraising special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the education fundraising special plate fund established by this section.

D. The education fundraising special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Have a mission of community fundraising to fuel access, innovation and excellence within one unified school district in this state.

2. Achieve this mission through events, campaigns and partnerships.

3. Use any monies raised through fundraising to promote equitable access to learning and enrichment opportunities, stimulate classroom innovation and ensure academic excellence for one unified school district in this state.

F. On notice from the director, 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.

G. For the purposes of this section, "unified school district" has the same meaning prescribed in section 15-901.

§ 28-2470.31 Sorority and fraternity special plates; fund

A. If, by December 31, 2025, a sorority or fraternity pays $32,000 to the department for implementation of this section, the department shall issue sorority and fraternity special plates. The sorority and fraternity special plates shall be of uniform design and shall include space for one sorority or fraternity logo. A sorority or fraternity that meets the requirements of subsection E of this section and that provides $32,000 to the department shall design a logo for the sorority or fraternity that is different from designs for other sorority or fraternity logos that are issued pursuant to this section. The design and color of the sorority and fraternity logos are subject to the approval of the department. The director may allow a request for sorority and fraternity 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 the sorority and fraternity special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the sorority and fraternity special plate fund established by this section.

D. The sorority and fraternity special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to the sorority or fraternity that paid the implementation fee to the department pursuant to subsection A of this section and to the sororities and fraternities that paid the special plate fee to the department based on the total number of special plates issued to each sorority or fraternity pursuant to subsection A of this section. The sorority or fraternity must be recognized by a university in this state and must have a mission to:

1. Foster cooperative actions of its members in dealing with matters of mutual concern.

2. Promote the well-being of its affiliate sororities and fraternities, facilitate the establishment and development of local councils and provide leadership training for its constituents.

3. Educate citizens and communities in this state in the interest of the general public through community education, literature and broadcast information with respect to government issues about methodologies and strategies to improve, maintain and promote the needs and knowledge of the residents of this state, with respect to economic development, public safety and access to educational opportunities so that the residents of this state can serve for the protection, conservation and preservation of their human and natural environment in and around this state.

F. On notice from the director, 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.

§ 28-2470.32 Hopi Tribe special plates; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue Hopi Tribe special plates. The person that provides the $32,000 shall design the Hopi Tribe special plates. The design and color of the Hopi Tribe special plates are subject to approval of the department. The director may allow a request for Hopi Tribe 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 the Hopi Tribe special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the Hopi tribal department of public safety and emergency services. The Hopi Tribe shall use these monies for road maintenance services and for traffic control devices that conform to the manual and specifications prescribed in section 28-641 on highways on the Hopi tribal reservation that are located in this state and that are not state highways.

§ 28-2470.33 Arizona bicycling special plates; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue Arizona bicycling special plates. The Arizona bicycling special plates shall be of uniform design and shall include space for one Arizona bicycling logo. A person that meets the requirements of subsection E of this section and that provides $32,000 to the department shall design an Arizona bicycling logo. The design and color of the Arizona bicycling logos are subject to approval of the department. The director may allow a request for Arizona bicycling 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 the Arizona bicycling special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the Arizona bicycling special plate fund established by this section.

D. The Arizona bicycling special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to the entity that paid the implementation fee to the department pursuant to subsection A of this section and to the entities that paid the special plate fee to the department based on the total number of special plates issued to each entity pursuant to subsection A of this section and that are qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. An entity must:

1. Produce or participate in bicycling events in this state for community, charity and wellness.

2. Have all of the following objectives:

(a) Aiding in the economic development of this state.

(b) Establishing this state as the bicycle center of the United States.

(c) Encouraging individuals to adopt bicycling as a natural daily life activity.

F. On notice from the director, 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.

§ 28-2470.34 Public safety personnel mental health special plates; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue public safety personnel mental health special plates. The person that provides the $32,000 shall design the public safety personnel mental health special plates. The color and design of the public safety personnel mental health special plates are subject to approval of the department. The director may allow a request for public safety personnel mental health 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 the public safety personnel mental health special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the public safety personnel mental health special plate fund established by this section.

D. The public safety personnel mental health special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Provide anonymous mental health wellness and suicide prevention for public safety personnel and family members of public safety personnel.

2. Provide stress coaching that focuses on public safety personnel, family members of public safety personnel and public safety organizations, including:

(a) Proactive and resiliency training to assist public safety personnel to recognize early warning signs in themselves and their colleagues.

(b) Family support to assist family members of public safety personnel in understanding the unique stressors associated with a public safety lifestyle and recognizing early warning signs.

(c) Personalized support for public safety personnel and family members of public safety personnel which is available twenty-four hours a day.

F. On notice from the director, 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.

§ 28-2470.35 Kidney disease awareness special plates; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue kidney disease awareness special plates. The person that provides the $32,000 shall design the kidney disease awareness special plates. The design and color of the kidney disease awareness special plates are subject to approval of the department. The director may allow a request for kidney disease awareness 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 the kidney disease awareness special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the kidney disease awareness special plate fund established by this section.

D. The kidney disease awareness special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be a major voluntary health agency seeking solutions for kidney and urinary tract diseases through education, prevention and treatment.

2. Be committed to improving the quality of life for those with kidney failure, including persons on dialysis and transplant recipients.

3. Provide community education about kidney health and the prevention of chronic kidney disease.

4. Advocate for organ donation.

5. Partner with federal, state and local governments, public and private institutions, and foundations and individuals.

F. On notice from the director, 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.

§ 28-2470.36 America250 special plates; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue America250 special plates. The person that provides the $32,000 shall design the America250 special plates. The design and color of the America250 special plates are subject to approval of the department. The director may allow a request for America250 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 the America250 special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the America250 special plate fund established by this section.

D. The America250 special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. Through December 31, 2026, the director shall monthly allocate monies from the America250 special plate fund to the Arizona America250 commission to pay costs related to America250 projects and events. From and after December 31, 2026, the director shall annually allocate monies from the America250 special plate fund to the state library fund established by Section 41-151.06.

F. On notice from the director, 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.

§ 28-2470.37 Italian American special plates; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue Italian American special plates. The person that provides the $32,000 shall design the Italian American special plates. The design and color of the Italian American special plates are subject to approval of the department. The director may allow a request for Italian American 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 the Italian American special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the Italian American special plate fund established by this section.

D. The Italian American special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Have a mission to advance the achievements and values of the Italian culture and presence in America and to strengthen and empower ties between the United States and Italy.

2. Actively collaborate with the United States Congress on all major issues impacting Italian Americans.

3. Provide college scholarships to eligible Italian Americans.

4. Conduct an annual first-time travel to Italy program for young Italian Americans on a merit basis.

F. On notice from the director, 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.

§ 28-2470.38 988 suicide awareness special plates

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue 988 suicide awareness special plates. The person that provides the $32,000 shall design the 988 suicide awareness special plates. The design and color of the 988 suicide awareness special plates are subject to approval of the department.

B. The director may allow a request for 988 suicide awareness 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 the 988 suicide awareness special plates.

C. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

D. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the 988 suicide awareness special plate fund established by section 36-123.04.

§ 28-2470.39 Youth charity special plates; fund

A. If, by December 31, 2025, a person pays $32,000 to the department for the implementation of this section, the department shall issue youth charity special plates. The person that provides the $32,000 shall design the youth charity special plates. The design and color of the youth charity special plates are subject to approval of the department. The director may allow a request for youth charity 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 the youth charity special plates.

B. Of the $25 fee required by section 28-2402 for the original special plates and for the renewal of special plates, $8 is a special plate administration fee and $17 is an annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall transmit all donations collected pursuant to this section to the youth charity special plate fund established by this section.

D. The youth charity special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first $32,000 in the fund shall be reimbursed to the entity that paid the implementation fee to the department pursuant to subsection A of this section. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.

E. The director shall annually allocate monies from the fund to an entity that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The entity must:

1. Be headquartered in this state.

2. Have a mission to improve the lives of youth in this state by helping youth in this state overcome adversity and reach their full potential as productive, caring and responsible citizens.

3. Provide grants to programs and nonprofit organizations.

F. On notice from the director, 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.

Article 13 Honored Military License Plates

§ 28-2471 Honored military license plates; procedures; transfers; violation; classification

A. The department shall issue or renew military license plates issued pursuant to this article in lieu of the regular license plates pursuant to the following conditions and procedures and only if the requirements prescribed by this article for the requested license plates are met:

1. A person who is the registered owner of a vehicle registered with the department or who applies for an original or renewal registration of a vehicle may submit to the department a completed application form as prescribed by the department.

2. The department shall issue license plates only to the owner or lessee of a vehicle that is currently registered, including any vehicle that has a declared gross weight, as defined in section 28-5431, of twenty-six thousand pounds or less.

B. On notification to the department, a person who is issued license plates pursuant to this article may transfer the license plates to another vehicle for which the person is the registered owner or lessee. If a person who is issued license plates sells, trades or otherwise releases ownership of the vehicle on which the plates have been displayed, the person shall immediately report the transfer of the plates to the department or the person shall surrender the plates to the department as prescribed by the director. It is unlawful for a person to whom the plates have been issued to knowingly permit them to be displayed on a vehicle except the vehicle authorized by the department.

C. The owner shall affix the license plates to the vehicle for which registration is sought in lieu of the regular license plates.

D. A person is guilty of a class 3 misdemeanor who:

1. Violates subsection B of this section.

2. Fraudulently gives false or fictitious information in the application for or renewal of license plates issued pursuant to this article.

3. Conceals a material fact or otherwise commits fraud in the application for or renewal of license plates issued pursuant to this article.

§ 28-2472 Congressional medal of honor license plates

The department shall issue at no additional cost distinctive license plates to a person who submits proof to the department that the person is a recipient of the congressional medal of honor.

§ 28-2473 Former prisoner of war license plates; fees

A. The department shall issue distinctive license plates to:

1. A person, other than a person who was discharged from the armed forces under conditions less than honorable, who submits satisfactory proof to the department that the person was captured and incarcerated by an enemy of the United States during a period of conflict with the United States.

2. The immediate family member of a person who has been issued a license plate pursuant to this section.

B. For each original license plate issued pursuant to this section, the department shall collect a fee of fifteen dollars in addition to the registration fee required by section 28-2003. For each annual renewal of license plates issued pursuant to this section, the department shall charge a fee of five dollars in addition to the registration fee required by section 28-2003. The department shall deposit, pursuant to sections 35-146 and 35-147, the fifteen dollar fee as a donation in the veterans' donations fund established by section 41-608.

§ 28-2474 Purple heart medal recipient license plates; fees

A. The department shall issue distinctive license plates to:

1. A person who submits satisfactory proof to the department that the person is a veteran and a bona fide purple heart medal recipient.

2. The immediate family member of a person who has been issued a license plate pursuant to this section.

B. For each original license plate issued pursuant to this section, the department shall collect a fee of twenty-five dollars in addition to the registration fee required by section 28-2003. For each annual renewal of license plates issued pursuant to this section, the department shall charge a fee of five dollars in addition to the registration fee required by section 28-2003. The department shall deposit, pursuant to sections 35-146 and 35-147, the twenty-five dollar fee as a donation in the veterans' donations fund established by section 41-608.

§ 28-2475 Pearl Harbor survivor license plates; fees

A. The department shall issue distinctive license plates to:

1. A person who submits satisfactory proof from the department of veterans' services to the department of transportation that all of the following are true:

(a) The person was a member of the United States armed forces on December 7, 1941.

(b) The person received an honorable discharge from the United States armed forces.

(c) The person was on station on December 7, 1941 during the hours of 7:55 a.m. to 9:45 a.m. Hawaii time at Pearl Harbor, the island of Oahu or offshore at a distance not exceeding three miles.

2. The immediate family member of a person who has been issued a license plate pursuant to this section.

B. For each original license plate issued pursuant to this section, the department shall collect a fee of twenty-five dollars in addition to the registration fee required by section 28-2003. For each annual renewal of license plates issued pursuant to this section, the department shall charge a fee of five dollars in addition to the registration fee required by section 28-2003. The department shall deposit, pursuant to sections 35-146 and 35-147, the twenty-five dollar fee as a donation in the veterans' donations fund established by section 41-608.

§ 28-2476 Distinguished flying cross license plates; fees

A. The department shall issue distinctive license plates to:

1. A person who submits satisfactory proof to the department that the person is a veteran and a bona fide distinguished flying cross recipient.

2. An immediate family member of a person who has been issued a license plate pursuant to this section.

B. For each pair of original license plates issued pursuant to this section, the department shall collect a fee of $25 in addition to the registration fee required by section 28-2003. For each annual renewal of license plates issued pursuant to this section, the department shall charge a fee of $5 in addition to the registration fee required by section 28-2003. The department shall deposit, pursuant to sections 35-146 and 35-147, the $25 fee as a donation in the veterans' donation fund established by section 41-608.

Article 14 License Plates for Vehicles of Historic Value

§ 28-2481 Historic value license plate fees

In addition to the payment of all other fees required by law, the following fees are required for license plates issued pursuant to this article:

1. For each original license plate, twenty-five dollars.

2. For each annual renewal of the license plate, ten dollars.

§ 28-2482 License plates for horseless carriages; definition

A. The department shall issue license plates for a horseless carriage on application and in the manner and at the time prescribed by the department. The license plates are in lieu of the regular license plates issued by the department.

B. The registration numbers and license plates assigned to horseless carriages shall be manufactured from Arizona copper and shall run in separate numerical series beginning with "horseless carriage no. 1". The license plates shall be of a distinguishing color.

C. On renewal of the registration of a horseless carriage, the department shall annually issue symbols or devices as provided in section 28-2355.

D. For the purposes of this section, "horseless carriage" means a motor vehicle manufactured in 1915 or before.

§ 28-2483 License plates for classic cars; definition

A. The department shall issue special license plates for a classic car on application and in the manner and at the time prescribed by the department. The license plates are in lieu of the regular license plates issued by the department.

B. The registration numbers and license plates assigned to classic cars shall be manufactured from Arizona copper and shall run in separate numerical series commencing with "classic car no. 1". The license plates shall be of a distinguishing color but different from the color selected for license plates issued under section 28-2482 or 28-2484. The director may allow a request for classic car 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 the classic car special plates.

C. On renewal of registration of a classic car, the department shall annually issue symbols or devices as provided in section 28-2355.

D. For the purposes of this section, "classic car" means a car included in the 1963 list of classic cars filed with the director by the classic car club of America. The director shall revise the list every five years.

§ 28-2484 License plates for historic vehicles; definition

A. The department shall issue special license plates for a historic vehicle on application and in the manner and at the time prescribed by the department. The license plates are in lieu of the regular license plates issued by the department.

B. The registration numbers and special license plates assigned to the historic vehicles shall be manufactured from Arizona copper and shall run in separate unique numerical series. The license plates shall be of a distinguishing color but different from the color selected for license plates issued under section 28-2482 or 28-2483.

C. On renewal of registration of a historic vehicle, the department shall annually issue symbols or devices as provided in section 28-2355.

D. The director shall grant the final approval of a vehicle to be licensed under this section.

E. For the purposes of this section, "historic vehicle" means any of the following:

1. A vehicle bearing a model year date of original manufacture that is twenty-five years old or older.

2. A vehicle included in a list of historic vehicles filed with the director by a recognized historic or classic vehicle organization during the month of December of each year.

3. A reconstructed vehicle that the director determines, on application by the owner, retains at least the basic original body style as manufactured twenty-five years or more before the date of the application.

§ 28-2485 Safety requirements; compliance

Notwithstanding any other law, a motor vehicle that is eligible to be licensed under this article is in compliance with the safety requirements of the laws of this state relating to motor vehicles if the original safety equipment placed on the motor vehicle by the manufacturer of the motor vehicle is in good operating condition or if the original equipment has been replaced by equipment equal to or more efficient than the original equipment.

§ 28-2486 Retention of old certificate of title

A. The owner of a vehicle may retain the old canceled certificate of title if:

1. The application for a new title is granted.

2. The old title is marked "canceled" on its face.

3. A photostatic copy paid for by the applicant is made of the canceled certificate of title.

B. The photostatic copy is deemed to be the original for purposes of canceled title records of the department.

§ 28-2487 Model year date license plates

An owner of a vehicle that is eligible for registration pursuant to section 28-2483 or 28-2484 may use a license plate previously issued by this state with the date of the year corresponding to the model year date when the vehicle was manufactured in lieu of the license plates issued pursuant to section 28-2483 or 28-2484. To qualify for the license plate authorized by this section:

1. The department shall approve the license plate and determine that the model year date license plate is legible and serviceable and that the license plate numbers do not conflict with other numbers currently assigned to license plates issued by the department. The department may consult with an organization of old car hobbyists in determining whether the date of the year of the license plate to be used corresponds to the model year date when the vehicle was manufactured.

2. The owner of the vehicle shall comply with the requirements for the registration of the vehicle.

§ 28-2488 Relinquishment of special plates

If a person who has been issued special plates pursuant to this article sells, trades or otherwise releases ownership of the vehicle to which the special plates have been assigned, the person may relinquish the plates to the new owner of the vehicle. On relinquishing the special plates, the person releases priority to the letters, numbers or combination of letters and numbers that is displayed on the special plates in the manner prescribed by the director. The person to whom the special plates are relinquished shall apply to the department for issuance of the special plates to that person.

Article 15 Distinctive Vehicles

§ 28-2511 Official vehicles; registration exemption; definitions

A. A registration fee is not required for a vehicle owned by a foreign government, by a consul or any other official representative of a foreign government, by the United States, by a state or political subdivision of a state, by an Indian tribal government, by a provider of ambulance, fire fighting or rescue services that is used solely for the purpose of providing emergency services or by a nonprofit organization that presents to the department a form approved by the director of the division of emergency management pursuant to section 26-318. The person who has custody of these vehicles shall register them as required by this chapter and shall display official license plates that bear distinguishing marks. The department shall furnish the license plates free of charge. The department may issue regular license plates without any distinguishing marks for vehicles that are exempt from title 38, chapter 3, article 10 pursuant to section 38-538.03, subsection B.

B. The director may issue license plates for vehicles owned by and used in the line of duty by law enforcement agencies in other states and the federal government without being registered as required by this chapter.

C. The director may enter into agreements or arrangements subject to the approval of the attorney general of this state with the federal government and with motor vehicle departments in other states to provide for a reciprocal exchange of license plates for use on vehicles owned or operated by law enforcement agencies for investigating actual or suspected violations of law. License plates of other states obtained pursuant to this subsection may be used on exempt vehicles of law enforcement agencies of this state or a political subdivision of this state.

D. The director shall maintain a record of the license plates issued pursuant to subsections B and C of this section. The director shall also keep a record of the license plates received pursuant to subsection C of this section, the regular license plates issued pursuant to subsection A of this section and the vehicles to which the plates are attached. These records are not open to public inspection except on demand of the attorney general.

E. Except as otherwise provided in this subsection, any vehicle that is registered pursuant to this section and that is exclusively powered by an alternative fuel shall display an alternative fuel vehicle special plate issued pursuant to section 28-2416. Except as otherwise provided in this subsection, any vehicle that is registered pursuant to this section and that is a low emission and energy efficient vehicle as defined in section 28-601 shall display a low emission and energy efficient vehicle special plate issued pursuant to section 28-2416.01. The department may issue regular license plates without any alternative fuel or low emission and energy efficient distinguishing marks or regular alternative fuel vehicle special plates or low emission and energy efficient vehicle special plates for vehicles that are exempt from title 38, chapter 3, article 10 pursuant to section 38-538.03, subsection B. This subsection applies to all existing vehicles that are registered pursuant to this section and all newly-acquired vehicles that are registered pursuant to this section.

F. For the purposes of this section:

1. "Alternative fuel" has the same meaning prescribed in section 1-215.

2. "Ambulance" means a vehicle for which a certificate of registration has been issued pursuant to section 36-2212.

§ 28-2512 All-terrain motor vehicles; off-highway vehicles; off-road recreational motor vehicles; license plates

A. Every owner of an all-terrain vehicle, off-highway vehicle as defined in section 28-1171 or off-road recreational motor vehicle shall apply to the department for a license plate.

B. The department shall furnish to an owner of an all-terrain vehicle, off-highway vehicle as defined in section 28-1171 or off-road recreational motor vehicle one license plate for each vehicle.

C. The fee for a plate issued pursuant to this section is eight dollars.

D. The license plate assigned to a motor vehicle pursuant to this section shall be:

1. Attached to the rear of the vehicle.

2. Securely fastened to the vehicle in a clearly visible position.

E. An owner of an off-highway vehicle as defined in section 28-1171 participating in an off-highway vehicle special event as defined in section 28-1171 is exempt from the requirements of this section.

F. On or before July 1, 2009, the director shall establish procedures to systematically replace license plates issued for all-terrain vehicles, off-highway vehicles and off-road recreational motor vehicles before January 1, 2009 with the license plate prescribed in this section.

G. In consultation with the Arizona game and fish department and the Arizona state parks board, the director shall design the license plate prescribed by this section.

§ 28-2513 Mopeds

Notwithstanding any other provision of this title:

1. A certificate of title is not required for a moped that is registered pursuant to this chapter.

2. A number permanently affixed to the frame of the moped identifies the moped for registration purposes.

3. The license tax imposed by article IX, section 11, Constitution of Arizona, is four dollars fifty cents for each moped registered each year.

4. A moped is exempt from the provisions of section 28-964 relating to required equipment on motorcycles and motor driven cycles and from the provisions of title 49, chapter 3, article 5 relating to vehicle emissions inspections.

5. The motor vehicle fee for registration or reregistration of a moped is five dollars. All other fees applicable to motor vehicles also apply to a moped.

6. Any class of driver license is valid for operating a moped.

7. A moped is restricted from rights-of-way designated for exclusive use by bicycles.

§ 28-2514 Farm vehicle license plates; reciprocity; definitions

A. The department shall issue a farm vehicle license plate to a person who owns a farm vehicle.

B. The fee for an original farm vehicle license plate is twenty-five dollars. Eight dollars of the fee for an original farm vehicle license plate is a special plate administration fee. The fee for renewal of a farm vehicle license plate is eight dollars and is a special plate administration fee. The department shall deposit, pursuant to sections 35-146 and 35-147, the special plate administration fees in the state highway fund established by section 28-6991.

C. Possession of a farm vehicle license plate issued pursuant to this section does not exempt a driver of a farm vehicle from the requirements prescribed in chapter 8 of this title.

D. If another state extends registration reciprocity to farm vehicles with farm vehicle license plates issued pursuant to this section, this state shall extend registration reciprocity to farm vehicles with farm vehicle license plates issued by that state.

E. For the purposes of this section:

1. "Commercial farming" and "commercial stock raising" have the same meanings prescribed in section 28-3102.

2. "Farm vehicle" means a vehicle or vehicle combination that is all of the following:

(a) Used for commercial farming or commercial stock raising.

(b) Controlled and operated by the farm vehicle owner or the owner's family member or employee.

(c) Used to transport agricultural products, machinery or supplies to or from a commercial farming or a commercial stock raising operation.

(d) Not used in the operations of a common or contract motor carrier.

(e) Not exempt from registration pursuant to section 28-2153.

§ 28-2516 Motorized gas powered bicycles or tricycles; definition

A. Notwithstanding any other provision of this title:

1. A certificate of title is not required for a motorized gas powered bicycle or tricycle.

2. Registration is not required for a motorized gas powered bicycle or tricycle.

3. Vehicle license tax is not imposed on a motorized gas powered bicycle or tricycle.

4. A motorized gas powered bicycle or tricycle is exempt from the provisions of section 28-964 relating to required equipment on motorcycles and motor-driven cycles and from the provisions of title 49, chapter 3, article 5 relating to vehicle emissions inspections.

5. A driver license is not required to operate a motorized gas powered bicycle or tricycle.

6. A motorized gas powered bicycle or tricycle may use rights-of-way designated for the exclusive use of bicycles.

7. A motorized gas powered bicycle or tricycle is not subject to chapter 9 of this title.

B. This section does not prohibit a local authority from adopting an ordinance that regulates or prohibits the operation of motorized gas powered bicycles or tricycles, except that a local authority shall not adopt an ordinance that requires registration and licensing of motorized gas powered bicycles or tricycles.

C. For the purposes of this section, "motorized gas powered bicycle or tricycle":

1. Means a bicycle or tricycle that is equipped with a helper motor that has a maximum piston displacement of forty-eight cubic centimeters or less, that may also be self-propelled and that is operated at speeds of less than twenty miles per hour.

2. Does not include an electric bicycle.

Article 16 Violations

§ 28-2531 Registration; violation; classification; exceptions

A. A person is guilty of a class 5 felony who:

1. Intentionally removes a manufacturer's serial or identification number from, defaces, alters or destroys a manufacturer's serial or identification number on or knowingly possesses any removed, defaced, altered or destroyed manufacturer's serial or identification number from a motor vehicle.

2. Is in possession of a motor vehicle knowing or having reason to know that a manufacturer's serial or vehicle identification number has been removed, defaced, altered or destroyed without the permission of the department.

3. Knowingly issues a license plate without payment of the full amount of the registration and weight fee payable on the date of issuance of the license plate.

B. A person is guilty of a class 2 misdemeanor who:

1. Displays or possesses a registration card or license plate knowing it to be fictitious or to have been stolen, canceled, revoked, suspended or altered.

2. Lends to a person or knowingly permits the use of the person's registration card or license plate by a person not entitled to the card or plate.

3. Knowingly fails or refuses to surrender to the department on demand a license plate that has been suspended, canceled or revoked.

4. Uses a false or fictitious name or address in an application for registration of a vehicle or for a renewal or duplicate of a registration.

5. Knowingly makes a false statement or conceals a material fact or otherwise commits fraud in an application for registration of a vehicle or for a renewal or duplicate of a registration.

6. Knowingly issues a registration card that does not contain all information required to be shown on the card.

7. Knowingly places information on a registration card that does not appear on the certificate of title of the vehicle.

8. Operates on a street or highway a motor vehicle without an emissions control device as required by section 28-955 or with a device that has been dismantled or disconnected or is otherwise inoperative.

9. Displays or possesses a registration card or license plate while operating a vehicle on a highway after the person certifies to the department pursuant to section 28-4152 that the vehicle is nonoperational, is in storage or will not be operated on a highway of this state and does not have evidence of current financial responsibility applicable to the motor vehicle.

10. Intentionally alters, forges or counterfeits a permanent disability removable windshield placard issued by this state or another state or country.

C. This section does not apply to law enforcement officers or employees of the United States, this state or a political subdivision of this state if the violation occurs in the course of their official duties.

D. Subsection A, paragraph 2 of this section does not apply to a towing company that has a vehicle in its possession pursuant to section 9-499.05, 11-251.04, 28-872 or 28-4834 or a business acting in good faith and in the normal course of business and in conformance with all applicable laws.

E. Subsection A, paragraphs 1 and 2 of this section do not apply to a person who, for motor vehicles manufactured before 1981, removes and reinstalls a manufacturer's serial or identification number from a motor vehicle if the removal and reinstallation are reasonably necessary for repair or restoration, unless the person knows or has reason to know that the motor vehicle is stolen.

§ 28-2532 Registration; violation; civil penalty; dismissal

A. A person who is the resident or nonresident owner or operator of a motor vehicle, trailer or semitrailer that is required by law to be registered in this state and that is not registered or does not display license plates assigned by the department for the current registration year and who operates or knowingly allows the vehicle to be operated on a highway is subject to a civil penalty of $300 notwithstanding section 28-1598.

B. A court shall dismiss an action brought under this section if the defendant obtains the appropriate license plates or registration after violating this section. A court may decide not to impose a civil penalty against a defendant for a violation of this section if the defendant was an operator but was not the owner of the motor vehicle, trailer or semitrailer.

§ 28-2533 Registration; violation; additional civil penalty; disposition of civil penalty

A. In addition to all other penalties prescribed by law, an owner of a motor vehicle that is or was registered in another state, territory or foreign country who knowingly fails to register the vehicle for the first time in this state as required by law is, notwithstanding any other law, subject to a civil penalty of three hundred dollars.

B. A court shall not dismiss an action brought under this section merely because the defendant has obtained the appropriate registration after violating this section.

C. The law enforcement agency that cites the owner for a violation of this section shall retain twenty per cent of the civil penalty provided by this section. The court shall deposit, pursuant to sections 35-146 and 35-147, any remaining monies collected under this section in the Arizona highway user revenue fund.

Chapter 8 Motor Vehicle Driver Licenses

Article 1 General Provisions

§ 28-3001 Definitions

In this chapter, unless the context otherwise requires:

1. "Cancellation" means the annulment or termination of a driver license because of an error or defect or because the licensee is no longer entitled to the license.

2. "Commercial driver license" means a license that is issued to an individual and that authorizes the individual to operate a class of commercial motor vehicles.

3. "Commercial motor vehicle" means a motor vehicle or combination of motor vehicles that is used in commerce to transport passengers or property and that includes any of the following:

(a) A motor vehicle or combination of motor vehicles that has either a gross combined weight rating or gross weight of twenty-six thousand one or more pounds inclusive of a towed unit with a gross vehicle weight rating or gross weight of more than ten thousand pounds, whichever is greater.

(b) A motor vehicle that has either a gross vehicle weight rating or a gross weight of twenty-six thousand one or more pounds, whichever is greater.

(c) A bus.

(d) A motor vehicle or combination of motor vehicles that is used in the transportation of materials found to be hazardous for the purposes of the hazardous materials transportation authorization act of 1994 (49 United States Code sections 5101 through 5128) and is required to be placarded under 49 Code of Federal Regulations section 172.504, as adopted by the department pursuant to chapter 14 of this title.

4. "Conviction" has the same meaning prescribed in section 28-101 and also means a final conviction or judgment, including an order of a juvenile court finding that a juvenile has violated a provision of this title or has committed a delinquent act that if committed by an adult constitutes any of the following:

(a) Criminal damage to property pursuant to section 13-1602, subsection A, paragraph 1.

(b) A felony offense in the commission of which a motor vehicle was used, including theft of a motor vehicle pursuant to section 13-1802, unlawful use of means of transportation pursuant to section 13-1803 or theft of means of transportation pursuant to section 13-1814.

(c) A forfeiture of bail or collateral deposited to secure a defendant's appearance in court that has not been vacated.

5. "Disqualification" means a prohibition from obtaining a commercial driver license or driving a commercial motor vehicle.

6. "Employer" means a person, including the United States, a state or a political subdivision of a state, that owns or leases a commercial motor vehicle or that assigns a person to operate a commercial motor vehicle.

7. "Endorsement" means an authorization that is added to an individual's driver license and that is required to permit the individual to operate certain types of vehicles.

8. "Foreign" means outside the United States.

9. "Gross weight" has the same meaning prescribed in section 28-5431.

10. "Judgment" means a final judgment and any of the following:

(a) The finding by a court that an individual is responsible for a civil traffic violation.

(b) An individual's admission of responsibility for a civil traffic violation.

(c) The voluntary or involuntary forfeiture of deposit in connection with a civil traffic violation.

(d) A default judgment entered by a court pursuant to section 28-1596.

11. "License class" means, for the purpose of determining the appropriate class of driver license required for the type of motor vehicle or vehicle combination a driver intends to operate or is operating, the class of driver license prescribed in section 28-3101.

12. "Nondomiciled commercial driver license" means a commercial driver license issued to an individual domiciled in a foreign country or to an individual domiciled in another state if that state is prohibited from issuing commercial driver licenses.

13. "Original applicant" means any of the following:

(a) An applicant who has never been licensed or cannot provide evidence of licensing.

(b) An applicant who is applying for a higher class of driver license than the license currently held by the applicant.

(c) An applicant who has a license from a foreign country.

14. "Revocation" means that the driver license and driver's privilege to drive a motor vehicle on the public highways of this state are terminated and shall not be renewed or restored, except that an application for a new license may be presented and acted on by the department after one year from the date of revocation.

15. "State of domicile" means the state or jurisdiction where a person has the person's true, fixed and permanent home and principal residence and to which the person has the intention of returning after an absence.

16. "Suspension" means that the driver license and driver's privilege to drive a motor vehicle on the public highways of this state are temporarily withdrawn during the period of the suspension.

17. "Vehicle combination" means a motor vehicle and a vehicle in excess of ten thousand pounds gross weight that it tows, if the gross combined weight rating is more than twenty-six thousand pounds.

§ 28-3002 Fees; driver licenses; disposition; exemption

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, G 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, an amount determined by the director.

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

9. In addition to the fees prescribed in paragraph 2 and except as provided in paragraph 11:

(a) For reinstatement of driving privileges after suspension or disqualification, ten dollars.

(b) For reinstatement of driving privileges after revocation, twenty dollars.

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.

12. For vision screening tests of out-of-state drivers, five dollars.

13. For class D or M driver license skills tests for out-of-state drivers, fifteen dollars.

14. For a driver license or nonoperating identification license issued pursuant to section 28-3175, an amount to be determined by the director.

B. Except as otherwise provided by statute, the director shall immediately deposit, pursuant to sections 35-146 and 35-147, fees collected under this section in the Arizona highway user revenue fund.

C. The fees established pursuant to this section do not apply to a veteran who does not have a residence address or whose residence address is the address of a shelter that provides services to the homeless. For the purposes of this subsection, "veteran" has the same meaning prescribed in section 41-601.

§ 28-3003 Driver license fees; deposit

A. The department may receive and deposit in the state highway fund established by section 28-6991 monies collected by the director pursuant to section 28-3002, paragraph 1, subdivisions (a), (b) and (c), paragraph 3, subdivisions (a), (b), (c) and (d), paragraph 4, subdivisions (a), (b) and (c), paragraph 5, subdivisions (c), (d) and (e) and paragraph 6.

B. Subject to legislative appropriation, the department may use these monies in the state highway fund to carry out the duties imposed by this title for the licensing of drivers and to cover the administrative costs of driving tests for commercial motor vehicle operators.

§ 28-3004 License records

A. The department shall file an application for a license and shall maintain suitable indexes containing, in alphabetical order:

1. Each application denied, with a note on each application of the reason for the denial.

2. Each application granted.

3. Except as provided in subsection B of this section, the name of each licensee whose license has been suspended or revoked by the department, with a note after each name of the reason for the action.

B. Except as provided in subsection C of this section, the director shall expunge from the public records maintained by the department a note of a suspension or revocation made pursuant to section 28-1385 if, after the suspension or revocation period, any of the following occurs:

1. The licensee submits a certified copy of the court record indicating either of the following:

(a) A dismissal of the violation on which the suspension or revocation is based and submits proof that the charge was not refiled within six months after the dismissal.

(b) A finding of not guilty of the violation on which the suspension or revocation is based.

2. After twelve months the licensee has not been charged with a violation of section 28-1381 or 28-1382 resulting from the event on which the suspension or revocation is based if the event does not involve death or serious physical injury as defined in section 13-105.

3. After twenty-four months the licensee has not been charged with a violation of section 28-1381 or 28-1382 resulting from the event on which the suspension or revocation is based if the event involves death or serious physical injury as defined in section 13-105.

C. The director shall not expunge the record or shall rescind the expungement of the record if the licensee operates a commercial motor vehicle without the proper class of commercial driver license, holds a commercial driver license or is convicted of or found responsible for a violation of chapter 3, 4 or 5 of this title that occurred during the suspension or revocation period or if the licensee's driver license or permit is suspended pursuant to section 28-1321 or suspended and restricted pursuant to section 28-1385 during the suspension or revocation period.

D. The department shall file all abstracts of court records of convictions and judgments it receives under the laws of this state and shall maintain convenient records of the abstracts or make suitable notations on the abstracts in order that an individual record of each licensee showing the convictions and judgments of the licensee and the traffic accidents in which the licensee has been involved is readily ascertainable and available for the consideration of the department on an application for renewal of a license and at other suitable times.

E. The department shall maintain the records pursuant to this section for five years after the application, suspension, revocation or abstract of a court record of conviction or judgment has become inactive.

§ 28-3005 Medical or psychological reports; immunity; definitions

A. For medical conditions, a physician or registered nurse practitioner, or for psychological conditions, a psychologist, physician, psychiatric mental health nurse practitioner or addiction counselor who provides information to the director in good faith and at the written request of a driver license applicant or licensee concerning a person's medical or psychological condition with respect to operation of a motor vehicle is immune from personal liability with respect to the information provided.

B. Notwithstanding the physician-patient, nurse-patient or psychologist-client confidentiality relationship, a physician, registered nurse practitioner or psychologist may voluntarily report a patient to the department who has a medical or psychological condition that in the opinion of the physician, registered nurse practitioner or psychologist could significantly impair the person's ability to safely operate a motor vehicle. If a report is made, the physician, registered nurse practitioner or psychologist shall make the report in writing, including the name, address and date of birth of the patient. On receipt of the report, the department may require an examination of the person reported in the manner provided by section 28-3314. A person shall not bring an action against a physician, registered nurse practitioner or psychologist for not making a report pursuant to this subsection. The physician, registered nurse practitioner or psychologist submitting the report in good faith is immune from civil or criminal liability for making the report pursuant to this subsection. The physician's, registered nurse practitioner's or psychologist's report is subject to subpoena or order to produce in an action except an action against the physician, registered nurse practitioner or psychologist submitting the report.

C. In this section:

1. "Addiction counselor" means a person who is licensed by the board of behavioral health examiners in this state, who is licensed or certified in another state, who is certified by a board for certification of addiction counselors, who is a nationally certified addiction counselor or who is employed by the federal government and practicing in this state.

2. "Medical or psychological condition" means a condition that could affect a person's functional ability to safely operate a motor vehicle.

3. "Physician" means a medical doctor, optometrist, chiropractor, naturopathic physician, doctor of osteopathy or doctor of homeopathy who is licensed to practice in this state or another state or who is employed by the federal government and practicing in this state or their agents.

4. "Psychiatric mental health nurse practitioner" means a person certified as a registered nurse practitioner in a psychiatric mental health specialty area under the provisions of title 32, chapter 15.

5. "Psychologist" means a person who is licensed pursuant to title 32, chapter 19.1, who is licensed to practice psychology in another state or who is employed by the federal government and practicing in this state.

6. "Registered nurse practitioner" has the same meaning prescribed in section 32-1601.

§ 28-3006 Driver license and nonoperating identification license applications; organ or tissue donation preference; reimbursement; definition

A. The director shall establish procedures:

1. To allow a person applying for a driver license, permit or nonoperating identification license pursuant to this chapter to indicate during the application process the person's preference to be an organ or tissue donor. An indication that the applicant wishes to be an organ or tissue donor is considered to be a document of gift.

2. For the release of information contained in the driving record of a person who executes a document of gift that indicates a preference to be an organ or tissue donor if the release is for the purpose of being registered in the donor registry maintained pursuant to section 36-858.

B. In consultation with an organ procurement organization of this state, the director may prescribe the form and content of an indicia to be placed on a driver license, permit or nonoperating identification license issued by the department indicating the person's wishes to be an organ or tissue donor.

C. The department shall not implement this section unless the organ procurement organization that is located in this state and that meets the requirements of section 371 of the public health service act (58 Stat. 682; 42 United States Code section 273) provides adequate funding to the department to cover the costs the department will incur in implementing this section.

D. For the purposes of this section, "document of gift" has the same meaning prescribed in section 36-841.

Article 2 School Bus Advisory Council

§ 28-3053 Student transportation advisory council

A. The student transportation advisory council is established consisting of the following members appointed by the governor:

1. One member representing the department of public safety.

2. One member representing the state board of education.

3. One member representing the state board for charter schools.

4. One member from a school district with a student count of less than six hundred in a county with a population of less than three hundred thousand persons.

5. One member from a school district with a student count of six hundred or more but less than three thousand.

6. One member from a school district with a student count of more than three thousand.

7. One member representing transportation administrators.

8. One member who is a certified school bus driver or school bus driver instructor.

9. One member representing a private sector school bus service provider or a private sector student transportation service provider.

10. One member from a charter school with a student count of less than six hundred.

11. One member from a charter school with a student count of more than six hundred.

12. One member with expertise in electric vehicle fleets, electric vehicle charging infrastructure or charging management services.

13. Two public members.

B. The members shall serve staggered three-year terms unless a member vacates the position. Appointment to fill a vacancy resulting other than from expiration of a term is for the unexpired portion of the term only.

C. The student transportation advisory council shall:

1. Meet at least twice annually.

2. Select a chairperson from its members.

3. Advise and assist the department of public safety in developing the rules required by sections 28-900 and 28-3228.

4. Recommend curricula for school bus driver safety and training courses required by section 28-3228.

5. Advise and consult with the department of public safety concerning matters related to the certification of school bus drivers and the safety of school buses and vehicles described in section 15-925.

6. Advise and consult with the department of public safety concerning matters related to modernizing and innovating K-12 student transportation to reduce transportation barriers for students, increase access to public school options and provide more transportation options for school districts and charter schools, including electric transportation.

7. Advise and consult with the department of administration concerning purchasing strategies to maximize transportation resources and find efficiencies to modernize and properly size transportation vehicles and systems.

8. Establish a mailing list that includes any party expressing an interest in the council's activities. The council shall provide written notice to each person on the list at least fifteen days before the date on which the meeting is to be held. The notice shall be sent by mail or electronic means to the party's last address of record with the council or by any other method reasonably calculated to effect actual notice to any party expressing interest in the council's activities. Written notice by electronic means is effective when transmitted. For other methods written notice is effective on receipt or five days after the date shown on the postmark stamped on the envelope, whichever is earlier.

9. Preapprove contract carriers and private parties as prescribed in section 15-923, subsection B.

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

Article 3 Driver License Classes and Endorsements

§ 28-3101 Driver license classes

A. Except as provided in subsections B and C of this section and section 28-3102, the following driver license classes are valid:

1. Class A. A class A license is valid for operating either of the following:

(a) A motor vehicle that tows a vehicle with a gross vehicle weight rating of more than ten thousand pounds if the gross combined weight rating is twenty-six thousand one or more pounds.

(b) A vehicle that requires a class B, C or D license.

2. Class B. A class B license is valid for operating any of the following:

(a) A single motor vehicle with a gross vehicle weight rating of twenty-six thousand one or more pounds.

(b) A motor vehicle with a gross vehicle weight rating of twenty-six thousand one or more pounds that tows a vehicle with a gross vehicle weight rating of ten thousand pounds or less.

(c) A vehicle that requires a class C or D license for operation.

3. Class C. A class C license is valid for operating any of the following:

(a) A single motor vehicle with a gross vehicle weight rating of twenty-six thousand pounds or less.

(b) A motor vehicle with a gross vehicle weight rating of twenty-six thousand pounds or less that tows a vehicle with a gross vehicle weight rating of ten thousand pounds or less.

(c) A motor vehicle with a gross vehicle weight rating of twenty-six thousand pounds or less that tows a vehicle with a gross vehicle weight rating of more than ten thousand pounds, if the gross combined weight rating is less than twenty-six thousand one pounds.

(d) A vehicle that is required to be placarded for hazardous materials.

(e) A bus or school bus.

(f) A vehicle that requires a class D license for operation.

4. Class D. A class D license is valid for operating any of the following:

(a) A single motor vehicle with a gross vehicle weight rating of twenty-six thousand pounds or less, including an autocycle.

(b) A motor vehicle with a gross vehicle weight rating of twenty-six thousand pounds or less that tows a vehicle with a gross vehicle weight rating of ten thousand pounds or less.

(c) A motor vehicle with a gross vehicle weight rating of twenty-six thousand pounds or less that tows a vehicle with a gross vehicle weight rating of more than ten thousand pounds if the gross combined weight rating is less than twenty-six thousand one pounds.

(d) A motorized touring vehicle. For the purposes of this subdivision, "motorized touring vehicle" means a motor vehicle that is all of the following:

(i) Owned by a commercial entity.

(ii) Rented for use during a sightseeing tour that is guided by an employee of the commercial entity that rents the motor vehicle.

(iii) Designed to travel with three wheels on the ground.

(iv) Capable of a maximum speed of forty-five miles per hour.

5. Class G. A class G license is valid for operating a single motor vehicle with a gross vehicle weight rating of twenty-six thousand pounds or less.

6. Class M. A class M license is valid for operating a motorcycle, motor driven cycle or moped but is not necessary for operating an autocycle or a motorcycle that has at least three wheels and a three-point safety belt and bucket or bench seats and that is fully enclosed or uses a roll cage frame. For the purpose of licensing a driver, the department may endorse a class M license classification on a valid class A, B, C, D or G license.

B. A class A, B, C, D or G license is not valid for operating a vehicle that requires a class M license or a vehicle that requires a special endorsement unless the proper endorsement appears on the license.

C. A commercial driver license is not required to operate a vehicle described in subsection A, paragraph 1, 2 or 3 of this section if the vehicle has been issued a historic vehicle license plate pursuant to section 28-2484 and the department provides in the vehicle registration record both of the following:

1. That the vehicle is classified as a noncommercial vehicle and may not be used as a commercial vehicle.

2. The vehicle's declared gross weight as defined in section 28-5431 is entered as zero.

§ 28-3102 Exceptions to driver license classes; definitions

A. Notwithstanding section 28-3101, a person who operates an authorized emergency vehicle, a farm vehicle or a recreational vehicle may operate the vehicle with a class A, B, C, D or G license.

B. For the purposes of this section:

1. "Commercial farming" means the intensive cultivation of arable land by raising agricultural or horticultural products as a principal source of the owner's livelihood.

2. "Commercial stock raising" means breeding, raising and caring for domestic animals as a principal source of the owner's livelihood.

3. "Farm vehicle" means a vehicle or combination of vehicles that is used for commercial farming or commercial stock raising and that meets all of the following requirements:

(a) Is controlled and operated by the farm vehicle owner or the owner's family member or employee.

(b) Is used to transport agricultural products, machinery or supplies to or from a commercial farming or a commercial stock raising operation.

(c) Is not used in the operations of a for-hire motor carrier.

(d) Is used within one hundred fifty miles of the farm vehicle owner's commercial farming or commercial stock raising operation.

4. "For-hire motor carrier" means a person engaged in and compensated directly for the transportation of goods or passengers.

5. "Recreational vehicle" means a motor vehicle or vehicle combination that is more than twenty-six thousand pounds gross vehicle weight rating and that is designed and exclusively used for private pleasure, including vehicles commonly called motor homes, pickup trucks with campers, travel trailers, boat trailers and horse trailers used exclusively to transport personal possessions or persons for noncommercial purposes.

§ 28-3103 Driver license endorsements

A. A driver license applicant shall obtain the following endorsements to the applicant's driver license and shall submit to an examination appropriate to the type of endorsement if the applicant operates one or more of the following vehicles:

1. A motorcycle endorsement for operation of a motorcycle if the applicant qualifies for a class M license and if the applicant qualifies for or has a class A, B, C, D or G license.

2. A hazardous materials endorsement on a class A, B or C license for operation of a vehicle that transports hazardous materials, wastes or substances in a quantity and under circumstances that require the placarding or marking of the transport vehicle as required by the department's safety rules prescribed pursuant to chapter 14 of this title. The department or an outside source authorized by the department and approved by the transportation security administration may:

(a) Conduct background checks in accordance with the transportation security administration procedures.

(b) Require that all hazardous materials endorsement applicants submit fingerprints.

3. A double-triple trailer endorsement on a class A license for operation of a vehicle towing double or triple trailers.

4. A passenger vehicle endorsement on a class A, B or C license for operation of a bus designed to transport sixteen or more passengers, including the driver, or a school bus.

5. A tank vehicle endorsement on a class A, B or C license for operation of a tank vehicle. For the purposes of this paragraph, "tank vehicle" means a commercial motor vehicle that is designed to transport a liquid or gaseous material within a tank that is either permanently or temporarily attached to the vehicle or chassis, including a cargo tank and a portable tank and excluding a portable tank having a rated capacity under one thousand gallons.

6. A school bus endorsement on a class A, B or C license for operation of a school bus. Applicants shall successfully complete both a written knowledge test and a driving skills test to obtain a school bus endorsement.

B. When applying for a commercial driver license endorsement pursuant to article 5 of this chapter, the applicant shall successfully complete the skills portion of the examination in a motor vehicle or vehicle combination applicable to the endorsement.

C. On notification by the transportation security administration that an individual's authorization to hold a hazardous materials endorsement has been terminated, the department shall immediately cancel the hazardous materials endorsement on the driver's commercial driver license.

Article 4 General Licensing Provisions

§ 28-3151 Driver license requirement; definition

A. Unless exempt pursuant to this chapter, a person shall not drive a motor vehicle or vehicle combination on a highway without a valid driver license and proper endorsement as prescribed by this chapter.

B. A person who is licensed under this chapter is entitled to exercise the privilege granted by this chapter on highways and is not required to obtain another license to exercise the privilege by a county, municipal or local board or a body with authority to adopt local police regulations.

C. A person may not drive an off-highway vehicle in this state without a valid driver license as prescribed by this chapter. If a minor who is under twelve years of age violates this subsection, a citation shall be issued to the parent or legal guardian of the minor and not to the minor. If a minor who is at least twelve years of age and under sixteen years of age violates this subsection, a citation may be issued to the minor or to the parent or legal guardian of the minor, but not to both.

D. For the purposes of this section, "highway":

1. Means the entire width between the boundary lines of every way publicly maintained by the federal government, the department or a city, town or county if any part of the way is open to the public for the purposes of vehicular travel other than exclusive off-highway vehicle use.

2. Does not include routes designated for off-highway vehicle use.

§ 28-3152 Driver license; exemptions; limitation

A. Except as provided in subsection B, the following persons are exempt from licensing under this chapter:

1. Except for United States reserve technicians, any of the following while operating a commercial motor vehicle for military purposes:

(a) Active duty military personnel.

(b) Members of the United States military reserve forces.

(c) Members of the United States army national guard on active duty or the United States air national guard on active duty, including:

(i) Personnel on full-time national guard active duty.

(ii) Personnel on part-time national guard training.

(d) United States army national guard and United States air national guard military technicians who are civilians and who are required to wear military uniforms.

(e) Active duty United States coast guard personnel.

2. A person while driving or operating a farm tractor or implement of husbandry that is incidentally operated or moved on a highway.

3. A person who is a nonresident, who is at least sixteen years of age and who has in the person's immediate possession a valid driver license issued to the person in the person's home state or country while the person is operating a motor vehicle requiring a class D license.

4. A person who is a nonresident, who is at least eighteen years of age and who has in the person's immediate possession a valid commercial driver license or classified license that is issued to the person in the person's home state or country and that authorizes operation of a commercial motor vehicle while the person is operating a motor vehicle requiring a class A, B or C license in this state, except that the person must be licensed under this chapter before accepting employment from a resident of this state involving the operation of a motor vehicle requiring a class A, B or C license.

5. A person who is a nonresident, who is at least eighteen years of age and whose home state or country does not require the licensing of operators while the person operates a motor vehicle requiring a class D license for a period of not more than ninety days in a calendar year, if the motor vehicle that the person is operating is duly registered in the home state or country of the nonresident.

6. A person who has in the person's immediate possession a valid driver license issued to the person by another state or country while the person is operating a motor vehicle requiring a class D license, who is an employee, agent or consultant of an organization that operates in this state and at least one other state or country, who is principally domiciled or employed in another state or country and who is present in this state not more than ninety consecutive days.

B. A person who is a resident of a foreign country and who operates a commercial vehicle in this state shall obtain a commercial driver license of the proper class that is issued by this state or another state, if the foreign country does not grant reciprocal driver license privileges to operators of commercial vehicles who are residents of this state.

§ 28-3153 Driver license issuance; prohibitions

A. The department shall not issue the following:

1. A driver license to a person who is under eighteen years of age, except that the department may issue:

(a) A restricted instruction permit for a class D or G license to a person who is at least fifteen years of age.

(b) An instruction permit for a class D, G or M license as provided by this chapter to a person who is at least fifteen years and six months of age.

(c) A class G or M license as provided by this chapter to a person who is at least sixteen years of age.

2. A class D, G or M license or instruction permit to a person who is under eighteen years of age and who has been tried in adult court and convicted of a second or subsequent violation of criminal damage to property pursuant to section 13-1602, subsection A, paragraph 1 or convicted of a felony offense in the commission of which a motor vehicle is used, including theft of a motor vehicle pursuant to section 13-1802, unlawful use of means of transportation pursuant to section 13-1803 or theft of means of transportation pursuant to section 13-1814, or who has been adjudicated delinquent for a second or subsequent act that would constitute criminal damage to property pursuant to section 13-1602, subsection A, paragraph 1 or adjudicated delinquent for an act that would constitute a felony offense in the commission of which a motor vehicle is used, including theft of a motor vehicle pursuant to section 13-1802, unlawful use of means of transportation pursuant to section 13-1803 or theft of means of transportation pursuant to section 13-1814, if committed by an adult.

3. A class A, B or C license to a person who is under twenty-one years of age, except that the department may issue a class A, B or C license that is restricted to only intrastate driving to a person who is at least eighteen years of age.

4. A license to a person whose license or driving privilege has been suspended, during the suspension period.

5. Except as provided in section 28-3315, a license to a person whose license or driving privilege has been revoked.

6. A class A, B or C license to a person who has been disqualified from obtaining a commercial driver license.

7. A license to a person who on application notifies the department that the person is an alcoholic as defined in section 36-2021 or a drug dependent person as defined in section 36-2501, unless the person submits a medical examination report that includes a current evaluation from an addiction counselor indicating that, in the opinion of the counselor, the condition does not affect or impair the person's ability to safely operate a motor vehicle.

8. A license to a person who has been adjudged to be incapacitated pursuant to section 14-5304 and who at the time of application has not obtained either a court order that allows the person to drive or a termination of incapacity as provided by law.

9. A license to a person who is required by this chapter to take an examination unless the person successfully passes the examination.

10. A license to a person who is required under the motor vehicle financial responsibility laws of this state to deposit proof of financial responsibility and who has not deposited the proof.

11. A license to a person if the department has good cause to believe that the operation of a motor vehicle on the highways by the person would threaten the public safety or welfare.

12. A license to a person whose driver license has been ordered to be suspended for failure to pay child support, except that a noncommercial restricted license may be issued pursuant to section 25-518.

13. A class A, B or C license to a person whose license or driving privilege has been canceled until the cause for the cancellation has been removed.

14. A class A, B or C license or instruction permit to a person whose state of domicile is not this state.

15. A class A, B or C license to a person who fails to demonstrate proficiency in the English language as determined by the department.

B. The department shall not issue a driver license to or renew the driver license of the following persons:

1. A person about whom the court notifies the department that the person violated the person's written promise to appear in court when charged with a violation of the motor vehicle laws of this state until the department receives notification in a manner approved by the department that the person appeared either voluntarily or involuntarily or that the case has been adjudicated, that the case is being appealed or that the case has otherwise been disposed of as provided by law.

2. If notified pursuant to section 28-1601, a person who fails to pay a civil penalty as provided in section 28-1601, except for a parking violation, until the department receives notification in a manner approved by the department that the person paid the civil penalty, that the case is being appealed or that the case has otherwise been disposed of as provided by law.

C. The magistrate or the clerk of the court shall provide the notification to the department prescribed by subsection B of this section.

D. Notwithstanding any other law, the department shall not issue to or renew a driver license or nonoperating identification license for a person who does not submit proof satisfactory to the department that the applicant's presence in the United States is authorized under federal law. For an application for a driver license or a nonoperating identification license, the department shall not accept as a primary source of identification a driver license issued by a state if the state does not require that a driver licensed in that state be lawfully present in the United States under federal law. The director shall adopt rules necessary to carry out the purposes of this subsection. The rules shall include procedures for:

1. Verification that the applicant's presence in the United States is authorized under federal law.

2. Issuance of a temporary driver permit pursuant to section 28-3157 pending verification of the applicant's status in the United States.

§ 28-3154 Instruction permit for a class D or G license

A. A person who is at least fifteen years and six months of age may apply to the department for an instruction permit for a class D or G license. The department may issue an instruction permit to the applicant after the applicant successfully passes all parts of the examination other than the driving test.

B. The instruction permit entitles the permittee to drive a motor vehicle requiring a class D or G license on the public highways for twelve months when both of the following conditions are met:

1. The permittee has the permit in the permittee's immediate possession.

2. The permittee is accompanied by a person who has a class A, B, C or D license, who is at least twenty-one years of age and who occupies a seat beside the permittee.

C. A permittee may not drive a motor vehicle while using a wireless communication device for any reason except during an emergency in which stopping the motor vehicle is impossible or will create an additional emergency or safety hazard. A peace officer may not stop or issue a citation to a person operating a motor vehicle on a highway in this state for a violation of this subsection unless the peace officer has reasonable cause to believe there is another alleged violation of a motor vehicle law of this state.

§ 28-3155 Restricted instruction permit

A. On receipt of a proper application, the department may issue a restricted instruction permit for a class D or G license to an applicant who is enrolled in a driver training program approved by the department and who is at least fifteen years of age. The restricted instruction permit is effective for a school year or a more restricted period.

B. After the applicant successfully passes all parts of the examination other than the driving test, the department may issue a restricted instruction permit to the applicant. The permit entitles the permittee to operate a motor vehicle requiring a class D license when all of the following conditions are met:

1. The permittee has the permit in the permittee's immediate possession.

2. The permittee drives on a designated highway or within a designated area.

3. An approved instructor who has a class A, B, C or D license occupies a seat beside the permittee.

§ 28-3156 Class M instruction permit

A. A person who is at least fifteen years and six months of age may apply to the department for an instruction permit for a class M license. The department may issue an instruction permit to the applicant after the applicant successfully passes all parts of the examination other than the motorcycle skill test.

B. The permit entitles the permittee to operate a motorcycle requiring a class M license or endorsement when the permittee has the permit in the permittee's immediate possession. The permit is valid for seven months from the date of issuance.

C. The permittee shall not operate a motorcycle as follows:

1. On a controlled access highway as defined in section 28-601.

2. On a public highway from sunset to sunrise or when there is insufficient light to clearly discern a person and a vehicle on the highway at a distance of five hundred feet.

D. The department shall not issue more than two class M permits to the same person within twenty-four months.

§ 28-3157 Temporary driver permit

A. The department may issue a temporary driver permit to an applicant for a driver license. The permit allows the driver to operate a motor vehicle while the department is completing its investigation and determining all facts relative to the applicant's privilege to receive a driver license.

B. The permittee shall have the permit in the permittee's immediate possession while operating a motor vehicle. The permit is invalid when the permittee is issued a driver license or when a driver license is refused for good cause.

§ 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. The department shall refund an application fee pursuant to section 28-373.

C. An applicant for an instruction permit or a driver license shall give the department satisfactory proof of the applicant's full legal name, date of birth, sex and domicile residence address in this state, if the applicant has a 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. If the applicant was never licensed, the applicant's last previous state or country of residence.

4. The social security number of the applicant.

E. The department shall:

1. Verify that a social security number provided by an applicant is a valid number assigned to that applicant.

2. Retain the social security number in its records.

F. The social security number provided to the department pursuant to subsection D of this section for an applicant's driver license or instruction permit shall not appear on an applicant's driver license or instruction permit unless the applicant requests that the social security number appear on the applicant's driver license or instruction permit as the driver license or instruction permit number. Except as provided in sections 28-455 and 41-1954, the department shall not release the social security number to any person unless the applicant requests that the social security number appear on the applicant's driver license or instruction permit as the driver license or instruction permit number. The provisions of this subsection shall be included in each application.

G. 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.

H. 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.

I. 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.

J. If a driver license applicant submits satisfactory proof to the department that the applicant is a veteran, on request of the applicant, the department shall allow a distinguishing mark to appear on the license that identifies the person as a veteran.

§ 28-3159 Restricted licenses

A. With good cause, the department may issue the following restricted driver licenses:

1. A driver license with any of the following:

(a) Restrictions suitable to the licensee's driving ability for the type of motor vehicle or special mechanical control devices required on a motor vehicle that the licensee may operate.

(b) Restrictions suitable to the licensee's ability to drive a motor vehicle in areas, at locations or on highways or during certain times.

(c) Other restrictions as the department determines appropriate to ensure the safe operation of a motor vehicle by the licensee.

2. A class A, B or C driver license that restricts the driver from operating:

(a) A commercial motor vehicle equipped with air brakes, if the applicant either fails the air brake component of the knowledge examination or performs the skills test in a vehicle that is not equipped with air brakes.

(b) A vehicle in interstate commerce, if the applicant is not subject to 49 Code of Federal Regulations part 391.

(c) A motor vehicle for the purposes of interstate commerce, if an applicant for a class A, B or C license is at least eighteen years of age.

3. A class A, B or C driver license with other restrictions that the department determines are appropriate to ensure the safe operation of a commercial motor vehicle by the licensee.

4. A class M license that restricts the driver from driving a vehicle other than a motorcycle, motor driven cycle or moped with a maximum piston displacement of one hundred cubic centimeters or less, if the applicant performs the driving examination with a motorcycle, motor driven cycle or moped with a maximum piston displacement of one hundred cubic centimeters or less.

5. A special ignition interlock restricted driver license pursuant to chapter 4, article 3.1 of this title.

6. A license restricting the travel of the driver as provided in section 25-518.

B. The department may either issue a special restricted license or display the restrictions on the usual driver license form.

§ 28-3160 Applications of minors; liability

A. Except as provided in section 28-3161, the following person or persons shall sign and verify before a person authorized to administer oaths the application of a person under eighteen years of age for an instruction permit, a class G or M driver license or an endorsement to a class G or M driver license:

1. If both the father and mother of the applicant are living, have custody of the applicant and are married to each other, either the father or the mother of the applicant.

2. If both the father and mother of the applicant are living, have custody of the applicant and are not married to each other, both the father and mother of the applicant.

3. If one parent of the applicant has custody of the applicant, the parent who has custody.

4. If neither parent of the applicant is living, the person or guardian who has custody of the applicant or an employer of the applicant.

5. If the applicant resides with a foster parent, the foster parent.

6. If there is no guardian or employer of the applicant, a responsible person who is willing to assume the obligation imposed by this chapter on a person who signs the application of a minor.

B. Negligence or wilful misconduct of a minor when driving a motor vehicle on a highway is imputed to the person who signs the application of the minor for a permit or license. Except as otherwise provided in subsection D of this section, the person who signs the application is jointly and severally liable with the minor for damage caused by the negligence or wilful misconduct.

C. Notwithstanding section 25-214, subsection C, a spouse who signs the application pursuant to subsection A of this section binds the marital community.

D. The parents or guardian of a minor are not liable under subsection B of this section during the time proof of financial responsibility is maintained by the minor or on behalf of the minor in the form and in amounts required by law for the operation of a motor vehicle the minor owns, or if the minor is not the owner of a motor vehicle, for the operation of any motor vehicle.

§ 28-3161 Application of student minor; instructor liability

A. A person who is at least fifteen years of age, who is attending school and who is not living or residing with the person's parent or guardian may apply for a restricted instruction permit issued pursuant to section 28-3155. An approved instructor of the drivers training program for which the permit is issued may sign the application in lieu of the requirements of section 28-3160.

B. The permit is valid only when the instructor who signed the application is in the vehicle with the permittee.

C. If the person is under eighteen years of age, an approved instructor assumes the obligations imposed on a person signing the application of a minor only when the instructor who signed the application is in the vehicle with the permittee.

D. The application for a restricted instruction permit shall include a statement that the instructor who signs the application understands that the instructor is liable for damage caused by negligence or wilful misconduct of the permittee while operating a motor vehicle when the instructor is in the vehicle.

§ 28-3162 Cancellation of minor's driver license; release from liability

A. A person who signs the application of a minor for a driver license may file with the department a verified written request that the department cancel the driver license of the minor. On receipt of the request, the department shall cancel the driver license of the minor and the person who signed the application of the minor is released from the liability for subsequent negligence or wilful misconduct of the minor in operating a motor vehicle.

B. A parent of a minor who applies for a driver license may file a verified written request to cancel the driver license if the parent has custody of the minor and if the parent is subject to section 28-3160, subsection A but does not sign the application.

C. On receipt of satisfactory evidence of the death of the person or persons who signed the application of a minor for a driver license, the department shall cancel the driver license and shall not issue a new license until a new application is made, duly signed and verified as required by this chapter. This subsection does not apply if the minor has reached eighteen years of age.

§ 28-3163 Unlicensed minor; liability

An owner of a motor vehicle who causes or who knowingly permits an unlicensed minor to drive a vehicle on a highway and a person who gives or furnishes a motor vehicle to an unlicensed minor are jointly and severally liable with the minor for damages caused by the negligence or wilful misconduct of the minor in driving the vehicle.

§ 28-3164 Original applicants; examination

A. The department may do any of the following:

1. Examine an applicant for an original driver license.

2. Accept the examination conducted by an authorized third party pursuant to chapter 13 of this title. Beginning July 1, 2014, the third party must be authorized pursuant to section 28-5101.01 or 28-5101.03.

3. Accept documentation of successful completion of a driver training course approved by the department. Beginning July 1, 2014, for a class D or G license the documentation must be provided by a third party authorized pursuant to section 28-5101.02.

4. Accept documentation that the applicant has successfully completed education on special performance equipment and medically related driving circumstances. Beginning July 1, 2014, the documentation must be provided by a third party authorized pursuant to section 28-5101.02.

5. Accept documentation that the applicant has successfully completed driver education lessons provided by an instructor who is certified by the superintendent of public instruction.

B. The examination shall include all of the following:

1. A test of the applicant's:

(a) Eyesight.

(b) Ability to read and understand official traffic control devices.

(c) Knowledge of safe driving practices and the traffic laws of this state, including those practices and laws relating to bicycles.

(d) Knowledge of the effect of using a portable wireless communication device as defined in section 28-914 or engaging in other actions that could distract a driver on the safe or effective operation of a motor vehicle.

2. An actual demonstration of ability to exercise ordinary and reasonable control in the operation of a vehicle or vehicle combination of the type covered by the license classification or endorsement for which the applicant applies.

3. Other physical and mental examinations if the department finds them necessary to determine the applicant's fitness to safely operate a motor vehicle on the highways.

C. The department may examine an original applicant for a class M license or a motorcycle endorsement or the department may accept the examination conducted by an authorized third party pursuant to chapter 13, article 1 of this title or documentation of successful completion of a motorcycle training program approved by the department. Beginning July 1, 2014, the documentation of successful completion of a motorcycle training program must be provided by a third party motorcycle driver license training provider authorized pursuant to section 28-5101.02 or a motorcycle training program approved by the department and provided in another state or by the United States military. The department may examine an applicant who has a motorcycle license from another jurisdiction. This examination shall be the same as for all applicants, except that the department may make modifications it finds necessary to determine the applicant's fitness to operate a motorcycle, motor driven cycle or moped on the highways.

D. The department shall examine a person who holds a driver license issued by another country and who applies for an initial license in this state as an original applicant, except that the department may waive an actual demonstration of the ability to exercise ordinary and reasonable control in the operation of a motor vehicle if the person applies for a class D or G license and appears to meet the department's medical qualifications and if the out-of-state license is not revoked or is not expired for more than one year.

E. The department may waive the driving examination for initial applicants for a class M license or a motorcycle endorsement if all of the following conditions exist:

1. The applicant's current license indicates the applicant has been specifically licensed to operate a motorcycle.

2. The applicant appears to meet the department's medical qualifications.

3. The applicant's out-of-state license is not revoked or is not expired for more than one year.

§ 28-3165 Nonoperating identification license; immunity; rules; emancipated minors; definition

A. On receipt of an application from a person who does not have a valid driver license issued by this state or whose driving privilege is suspended, the department shall issue a nonoperating identification license that contains a distinguishing number assigned to the licensee, the full legal name, the date of birth, the residence address and a brief description of the licensee and either a facsimile of the signature of the licensee or a space on which the licensee is required to write the licensee's usual signature with pen and ink. A nonoperating identification license that is issued to a person whose driving privilege is suspended shall not be valid for more than one hundred eighty days from the date of issuance.

B. On request of an applicant:

1. The department shall allow the applicant to provide on the nonoperating identification license a post office box address that is regularly used by the applicant.

2. If the applicant submits satisfactory proof to the department that the applicant is a veteran, the department shall allow a distinguishing mark to appear on the nonoperating identification license that identifies that person as a veteran.

3. If the applicant elects to show and submits satisfactory proof to the department that the applicant is an enrolled member of a federally recognized Indian tribe located in this state, the department shall allow a distinguishing mark to appear on the nonoperating identification license that identifies the applicant as a native American. The distinguishing mark may not identify a specific Indian tribe or other specific personal information that is submitted on the documents that provide satisfactory proof that the person is an enrolled member of a federally recognized Indian tribe located in this state. Documents that provide satisfactory proof that the person is an enrolled member of a federally recognized Indian tribe located in this state include:

(a) An enhanced tribal card.

(b) A tribal identification card.

(c) A tribal certificate of Indian blood.

(d) A tribal or bureau of Indian affairs affidavit of birth.

C. A person who is issued a license pursuant to this section shall use it only for identification purposes of the licensee. The nonoperating identification license does not grant authority to operate a motor vehicle in this state. The department shall clearly label the nonoperating identification license "for identification only, not for operation of a motor vehicle".

D. On issuance of a driver license, the holder of a nonoperating identification license shall surrender the nonoperating identification license to the department, and the department shall not refund any fee paid for the issuance of the nonoperating identification license.

E. A nonoperating identification license shall contain the photograph of the licensee. When issuing a nonoperating identification license, the department shall use a process that prohibits as nearly as possible the ability to superimpose a photograph on the license without ready detection. The department shall process nonoperating identification licenses and photo attachments in color.

F. On application, an applicant shall give the department satisfactory proof of the applicant's full legal name, date of birth, sex and residence address, if the applicant has a residence address, and that the applicant's presence in the United States is authorized under federal law. The application shall briefly describe the applicant, state whether the applicant has been licensed, and if so, the type of license issued, when and by what state or country and whether any such license is under suspension, revocation or cancellation. The application shall contain other identifying information required by the department.

G. The department may adopt and implement procedures to deny a nonoperating identification license to a person who has been deported. The department may adopt and implement procedures to reinstate a person's privilege to apply for a nonoperating identification license if the person's legal presence status is restored.

H. A nonoperating identification license issued by the department is solely for the use and convenience of the applicant for identification purposes.

I. The department shall adopt rules and establish fees for issuance of a nonoperating identification license, except that the department shall not require an examination.

J. The fees established pursuant to this section do not apply to any of the following:

1. A person who is sixty-five years of age or older.

2. A person who is a recipient of public monies as an individual with a disability under title XVI of the social security act, as amended.

3. A veteran who does not have a residence address.

4. A veteran whose residence address is the address of a shelter that provides services to the homeless.

5. A child who is in the custody of the department of child safety.

K. If a person qualifies for a nonoperating identification license and is under the legal drinking age, the department shall issue a license that is marked by color, code or design to immediately distinguish it from a nonoperating identification license issued to a person of legal drinking age. The department shall indicate on the nonoperating identification license issued pursuant to this subsection the year in which the person will attain the legal drinking age.

L. If a minor has been emancipated pursuant to title 12, chapter 15, on application and proof of emancipation, the department shall issue a nonoperating identification license that contains the words "emancipated minor".

M. Notwithstanding any other law, if an applicant for a nonoperating identification license is at least sixteen years of age and either does not have a residence address or is in the department of child safety's custody, the applicant does not need a signature of the applicant's parent, guardian, foster parent or employer.

N. For the purposes of this section, "veteran" has the same meaning prescribed in section 41-601.

§ 28-3166 Driver license content and application; marked licenses; emancipated minors

A. The department shall issue a driver license to a qualified applicant. The driver license shall contain a distinguishing number assigned to the licensee, the license class, any endorsements, the licensee's full name, date of birth and residence address, if the licensee has a residence address, a brief description of the licensee and either a facsimile of the signature of the licensee or a space on which the licensee is required to write the licensee's usual signature with pen and ink. A driver license is not valid until it is signed by the licensee. On request of an applicant:

1. The department shall allow the applicant to provide on the driver license a post office box address that is regularly used by the applicant and that is located in the county in which the applicant resides.

2. If the applicant submits satisfactory proof to the department that the applicant is a veteran, the department shall allow a distinguishing mark to appear on the license that identifies the person as a veteran.

3. If the applicant elects to show and submits satisfactory proof to the department that the applicant is an enrolled member of a federally recognized Indian tribe located in this state, the department shall allow a distinguishing mark to appear on the license that identifies the applicant as a Native American. The distinguishing mark may not identify a specific Indian tribe or other specific personal information that is submitted on documents that provide satisfactory proof that the person is an enrolled member of a federally recognized Indian tribe located in this state. Documents that provide satisfactory proof that the person is an enrolled member of a federally recognized Indian tribe located in this state include:

(a) An enhanced tribal card.

(b) A tribal identification card.

(c) A tribal certificate of Indian blood.

(d) A tribal or bureau of Indian affairs affidavit of birth.

B. An application for a driver license and the driver license issued shall contain the photo image of the applicant or licensee. When issuing a driver license, the department shall use a process that prohibits as nearly as possible the ability to alter or reproduce the license or that prohibits the ability to superimpose a photo image on the license without ready detection. The department shall process driver licenses and photo images in color.

C. An applicant who is at least sixteen but under twenty-four years of age shall provide the department with satisfactory proof of the applicant's legal name and date of birth.

D. If a person is qualified for a driver license and is under the legal drinking age, the department shall issue a license that is marked by color, code or design to immediately distinguish it from a license issued to a person of legal drinking age. The department shall indicate on the driver license issued pursuant to this subsection the year in which the person will attain the legal drinking age.

E. The department shall mark a special ignition interlock restricted driver license issued pursuant to chapter 4, article 3.1 of this title by color, code or design to immediately distinguish it from other licenses issued by the department.

F. If a person is qualified for a driver license but is subject to the certified ignition interlock device limitations prescribed in section 28-1381, 28-1382, 28-1383 or 28-3319, the department shall issue a license that is marked by color, code or design to immediately distinguish it from other licenses issued by the department.

G. The department shall not include information in the magnetic stripe and bar code of a driver license other than information that the department is authorized to obtain and place on a driver license pursuant to this article.

H. If a minor has been emancipated pursuant to title 12, chapter 15, on application and proof of emancipation, the department shall issue a driver license that contains the words "emancipated minor".

§ 28-3167 Medical code information on license; rules; immunity

A. The department shall provide on each driver license and on each nonoperating identification license a space where a licensee may indicate that the licensee suffers from some type of adverse medical condition using a medical code prescribed by the department if the licensee presents a signed statement from a physician who is licensed pursuant to title 32, chapter 13, 14 or 17 or a registered nurse practitioner who is licensed pursuant to title 32, chapter 15 stating that the person suffers from the condition.

B. The department shall prescribe by rule a medical code to identify the medical conditions using a system of numerals or letters commonly accepted by the medical profession. Except for the purposes of entering the medical code on the driver license or nonoperating identification license, and unless the person affirmatively requests in writing that the person wants the medical code as part of the computer record, the department shall not maintain the medical code in the department computer after the department issues the driver license or nonoperating identification license.

C. The department and this state are exempt from liability for damages from the use of medical code information provided on a license pursuant to this section.

§ 28-3168 Driver license and nonoperating identification license applications; selective service registration; reimbursement

A. When a male person who is under twenty-six years of age applies for a driver license or a nonoperating identification license or for renewal of a driver license, the person consents to register with the selective service system in compliance with section 3 of the military selective service act (50 United States Code appendix section 453).

B. Driver license applications, driver license renewal applications and nonoperating identification license applications, including electronic applications, shall contain the following statement:

By submitting this application, I consent to registration with the selective service system if I am required to register under federal law. If I am under eighteen years of age, I understand that I will be registered as required by federal law when I become eighteen years of age.

C. The applicant's submission of the application shall serve as an indication that the applicant has already registered with the selective service system or that the applicant is authorizing the department to forward the necessary information for registration to the selective service system.

D. The department shall forward in an electronic format the necessary personal information required for registration of applicants described in subsection A to the selective service system.

E. The department shall not implement this section unless the selective service system provides adequate funding to the department to cover the costs the department will incur in implementing this section.

§ 28-3169 Possession and display of driver license; defense

A. A licensee shall have a legible driver license in the licensee's immediate possession at all times when operating a motor vehicle. On demand of a justice of the peace, a police officer or a field deputy or inspector of the department, a licensee shall display the license.

B. A person who is served a complaint for violating this section is not responsible if the person produces in court or the office of the police officer or field deputy or inspector of the department a legible driver license or an authorized duplicate of the license issued to the person that was valid at the time of the alleged violation of this section.

§ 28-3170 Duplicate permit or license

A. If an instruction permit or driver license issued under this chapter is lost, destroyed or made illegible, if the name or address of the applicant changes or if a new photo image is desired, the person to whom the permit or license was issued may obtain a duplicate, update or substitute of the permit or license, on payment of the fee required by section 28-3002.

B. If a person holds a driver license and wants a distinguishing mark on the license that identifies the person as a veteran, the person may obtain an update or substitute of the license after both of the following:

1. Submitting satisfactory proof to the department that the applicant is a veteran.

2. Paying the fee required by section 28-3002, subsection A, paragraph 7.

§ 28-3171 Driver license expiration and renewal; exception; extension

A. Except as provided in subsection B, D or E of this section and unless medical restrictions require a shorter expiration period, a driver license is:

1. Except as provided in paragraph 3 of this subsection, valid until the applicant's sixty-fifth birthday.

2. Renewable for successive periods of five years after the applicant's sixtieth birthday.

3. Valid for a period of up to five years if initially issued to an applicant who is sixty years of age or older.

B. Notwithstanding subsection A of this section, on presentation of satisfactory proof of qualification, the director may issue a class D, G or M license or permit for a period of up to five years to:

1. A person who is an out-of-state student or who is the spouse of an out-of-state student. For the purposes of this paragraph, "out-of-state student" has the same meaning prescribed in section 28-2001.

2. An immediate family member of any active duty military personnel temporarily stationed in this state.

3. Any other person for whom the director determines other circumstances justify the issuance.

C. An applicant shall apply for renewal of a driver license before the expiration of a current license. The department may require an examination of a renewal applicant for a class D, G or M license as required of an original applicant.

D. A veteran, as defined in section 41-601, whose driver license expires is not required to renew the veteran's driver license for six months after the date of the veteran's discharge from military service.

E. The department may extend the expiration date of a class D or M license for a resident if the applicant is not in this state at the time the license expires and will not be in this state for at least thirty consecutive days after the expiration of the driver license. On payment by the applicant of the fee prescribed in section 28-3002, the department shall issue a certificate of extension that is valid only if accompanied by the applicant's previous license. An applicant for extension of a license shall comply with the following:

1. The application requirements of section 28-3158.

2. The licensing requirements of section 28-3153.

3. Medical requirements applicable to all license applicants, except that the applicant is not required to obtain an eyesight examination.

§ 28-3173 License update

A. By written notice the department shall require a licensee to update the licensee's photograph or present or mail to the department in a form prescribed by the department a report based on a vision test performed by the department or an examination by an optometrist or an ophthalmologist or physician licensed to practice medicine, if the license has not been updated in the preceding twelve years.

B. The director may require a licensee to update the licensee's license at any time during the twelve year period from the date of issuance.

§ 28-3174 Class G driver licenses; restrictions; civil penalties; motorcycles

A. A person who is under eighteen years of age may apply to the department for a class G driver license if all of the following apply:

1. The person is at least sixteen years of age.

2. The person has a valid instruction permit issued pursuant to this article and the person has held the instruction permit for at least six months, except that this requirement does not apply to a person who has a currently valid driver license issued by another jurisdiction.

3. Any of the following applies:

(a) The person has satisfactorily completed a driver education program that is approved by the department of transportation. If the driver education program is offered by a public high school, the program shall be approved by the department of transportation in consultation with the department of education.

(b) Both of the following apply:

(i) The person completes a driver education program that is offered by a defensive driving school that is certified pursuant to section 28-3395 and that is approved by the supreme court or a traffic survival school.

(ii) A custodial parent or guardian of the person certifies in writing to the department that the applicant has completed at least twenty hours of supervised driving practice and that at least six of the required practice hours were at night.

(c) A custodial parent or guardian of the person certifies in writing to the department that the applicant has completed at least thirty hours of supervised driving practice and that at least ten of the required practice hours were at night.

B. If the applicant successfully passes the examination prescribed in section 28-3164 and satisfies the requirements prescribed in subsection A of this section, the department may issue a class G driver license to the applicant.

C. Except as provided in subsection D of this section, a class G driver license entitles the licensee to drive a motor vehicle that requires a class G license on the public highways.

D. Except as provided in subsection K of this section, for the first six months that a class G licensee holds the license, the licensee shall not drive a motor vehicle on a public highway from 12:00 a.m. to 5:00 a.m. unless either:

1. The licensee is accompanied by a parent or legal guardian who has a class A, B, C or D license and who occupies a seat beside the class G licensee.

2. The licensee is driving directly to or from a sanctioned school sponsored activity, the licensee's place of employment, a sanctioned religious activity or a family emergency.

E. Except as provided in this subsection and subsection K of this section, for the first six months that a class G licensee holds the license, the licensee shall not drive a motor vehicle on a public highway at any time if the licensee is driving a motor vehicle containing more than one passenger under the age of eighteen. This restriction does not:

1. Prohibit the licensee from driving a motor vehicle containing passengers under the age of eighteen if the passengers are the licensee's siblings.

2. Apply if the licensee is accompanied by a parent or legal guardian who has a class A, B, C or D license and who occupies a seat beside the class G licensee.

F. Except as provided in subsection K of this section, for the first six months that a class G licensee holds the license, the licensee may not drive a motor vehicle while using a wireless communication device for any reason except either:

1. During an emergency in which stopping the motor vehicle is impossible or will create an additional emergency or safety hazard.

2. When using an audible turn-by-turn navigation system if both of the following apply:

(a) The destination is not manually entered into the wireless communication device while the licensee is driving the motor vehicle.

(b) The licensee does not manually adjust the wireless communication device while driving the motor vehicle.

G. 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 subsection D, E or F 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.

H. If a licensee is found responsible for violating subsection D, E or F of this section, the licensee:

1. For a first violation, is subject to a maximum civil penalty of $75. The department shall extend the restriction prescribed by subsection D, E or F of this section for thirty days, or if the restriction prescribed by subsection D, E or F of this section is complete, the thirty day restriction begins on the department's receipt of the report of the finding of responsibility.

2. For a second violation, is subject to a maximum civil penalty of $100. The department shall extend the restriction prescribed by subsection D, E or F of this section for sixty days, or if the restriction prescribed by subsection D, E or F of this section is complete, the sixty day restriction begins on the department's receipt of the report of the finding of responsibility. If at the time of the second violation the licensee is subject to an extension of the six month period pursuant to paragraph 1 of this subsection, the extensions run consecutively.

3. For a third or subsequent violation, is subject to a maximum civil penalty of $100. On the department's receipt of the report of the finding of responsibility, the department shall suspend the licensee's driving privilege for thirty days. If the licensee also has a suspension resulting from a moving civil traffic violation or a moving criminal traffic offense as prescribed by section 28-3321, the suspensions run consecutively.

I. A citation issued for violating subsection D of this section shall be dismissed if the licensee to whom the citation was issued produces any of the following evidence to the appropriate court officer on or before the date and time specified on the citation for court appearance and in a manner specified by the court:

1. A written, notarized letter from the parent or legal guardian of the licensee that the licensee was going to or returning from a sanctioned school sponsored activity, the licensee's place of employment, a sanctioned religious activity or a family emergency.

2. A written, notarized letter from a representative of the sanctioned school sponsored activity certifying that the licensee was returning from the school activity.

3. A written, notarized letter from the licensee's employer certifying that the licensee was returning from the licensee's place of employment.

4. A written, notarized letter from a representative of the sanctioned religious activity certifying that the licensee was returning from the religious activity.

J. A citation issued for violating subsection E of this section shall be dismissed if the licensee to whom the citation was issued produces a written, notarized letter from the parent or legal guardian of the licensee to the appropriate court officer on or before the date and time specified on the citation for court appearance and in a manner specified by the court that states the passengers in the vehicle with the licensee at the time of the violation were the siblings of the licensee.

K. The restrictions imposed by subsection D, E or F of this section do not apply beginning on the licensee's eighteenth birthday. Any penalties or restrictions imposed pursuant to subsection H of this section shall be fully satisfied even if the licensee is eighteen years of age or older.

L. A person who holds a class G driver license may apply for a class D license on or after the person's eighteenth birthday, except that a person whose class G driver license is suspended pursuant to section 28-3321 is not entitled to receive a class D driver license until after the suspension period expires.

M. If a person who is under eighteen years of age and at least sixteen years of age applies for a class M license or a motorcycle endorsement, the department shall not issue the class M license or motorcycle endorsement to the person unless both of the following apply:

1. The applicant has held an instruction permit issued pursuant to section 28-3156 for at least six months, except that this requirement does not apply to a person who has a currently valid motorcycle driver license or endorsement issued by another jurisdiction.

2. Either:

(a) The person has satisfactorily completed a motorcycle driver education program that is approved by the department. If the driver education program is offered by a public high school, the program shall be approved by the department of transportation in consultation with the department of education.

(b) A custodial parent or guardian of the person certifies in writing to the department that the applicant has completed at least thirty hours of motorcycle driving practice.

§ 28-3175 Driver licenses; nonoperating identification licenses; use for boarding aircraft; accessing restricted areas; rules

A. Notwithstanding any other law, on or before April 1, 2016, if a driver license applicant or nonoperating identification license applicant requests a driver license or nonoperating identification license that allows the applicant to board a federally regulated commercial aircraft or to access restricted areas in federal facilities, nuclear power plants or military facilities, the department must issue the applicant the driver license or nonoperating identification license.

B. A driver license or nonoperating identification license issued pursuant to this section:

1. Shall be valid for a period not to exceed eight years.

2. May not contain radio frequency identification technology.

C. The department shall adopt rules to implement this section.

Article 5 Commercial Driver Licensing

§ 28-3221 Commercial driver license

The department shall mark a license issued to a qualified person for a class A, B or C license as a commercial driver license or a CDL.

§ 28-3222 State of domicile change

A person who operates a commercial motor vehicle and who changes state of domicile to this state shall obtain the appropriate class of commercial driver license from this state within thirty days of changing state of domicile to this state and shall surrender the person's current driver license as a condition of receiving a commercial driver license in this state.

§ 28-3223 Original applicant; requirements; expiration; renewal examination

A. In addition to the requirements applicable to all driver license applicants, an original applicant for a class A, B or C license is subject to the following requirements:

1. The applicant shall submit evidence of compliance with medical standards and requirements that the department adopts by rule.

2. The applicant must have held a driver license for at least one year either in this state, any other state or a foreign country.

3. The applicant shall take additional knowledge examinations to demonstrate understanding of the following:

(a) Safety operation rules.

(b) Commercial motor vehicle safety control systems.

(c) Safe vehicle control.

(d) The relationship of cargo to vehicle control.

(e) Basic hazardous materials knowledge.

(f) The objectives and proper procedures for performing vehicle safety inspections.

(g) Air brake systems.

(h) Legal requirements for size, weight and vehicle configurations.

(i) Emergency procedures.

4. In addition to the other requirements of this section, an applicant for a class A driver license shall demonstrate a knowledge and understanding of:

(a) Vehicle coupling and uncoupling.

(b) Unique combination vehicle inspections.

5. The applicant shall take a driving test in a vehicle or vehicle combination that at least meets the minimum size requirements for the class of driver license sought. The driving test shall include a demonstration of familiarity with pretrip inspection procedures.

B. A person possessing a commercial driver license on or before June 30, 2005 shall renew the license within eight years according to procedures established by the department.

C. Notwithstanding section 28-3171, the holder of a class A, B or C driver license shall renew the license every eight years in a manner prescribed by the department.

D. The department may administer an examination to a renewal applicant for a class A, B or C driver license. This examination on renewal shall include the following:

1. Evidence of compliance with medical standards adopted by the department.

2. Administration of knowledge tests or road tests, or both, as required of an original applicant.

§ 28-3224 Nondomiciled commercial driver license

A. The department may issue a nondomiciled commercial driver license to a resident of another jurisdiction if the United States secretary of transportation determines that the commercial motor vehicle testing and licensing standards in the other jurisdiction do not meet the testing standards established in 49 Code of Federal Regulations part 383.

B. On receipt of a proper application, the department may issue a nondomiciled commercial driver license to an applicant who meets the requirements for a class A, B or C license pursuant to section 28-3223.

C. The department shall mark a license issued pursuant to this section as a nondomiciled commercial driver license or a nondomiciled CDL.

D. A person applying for a nondomiciled commercial driver license shall surrender any nondomiciled commercial driver license issued by another state as a condition of receiving a nondomiciled commercial driver license in this state.

§ 28-3225 Commercial learner's permit

A. A person who is at least eighteen years of age may apply to the department for a learner's permit for a class A, B or C license. The department may issue a learner's permit to the applicant after the applicant passes all parts of the examination and meets all other requirements for a class A, B or C license other than the driving test.

B. The permit entitles the permittee to drive a motor vehicle requiring a class A, B or C license on the public highways for twelve months after the date of issuance when the following conditions are met:

1. The permittee has the permit in the permittee's immediate possession.

2. The permittee is accompanied by a person who has the same class or a higher class of license issued by this state or any other qualifying state and who occupies a seat beside the driver.

3. If the permittee is under twenty-one years of age, the permittee does not operate a commercial motor vehicle interstate.

§ 28-3226 Limitation on number of driver licenses

A driver of a commercial motor vehicle shall not have more than one driver license, except during the ten day period beginning on the date the person is issued a driver license in this state to allow the driver to return to the department a commercial driver license currently held by the driver.

§ 28-3227 Commercial drivers; convictions; notification requirements; violation

A. A driver of a commercial motor vehicle who has a driver license issued by this state and who is convicted of violating a state law or local ordinance relating to motor vehicle traffic in any state or a federal, provincial, territorial or municipal law of another country, other than a parking violation, shall notify the department within thirty days of the date of the conviction in the manner prescribed by the department.

B. A driver of a commercial motor vehicle who has a driver license issued by this state and who is convicted of violating a state law or local ordinance relating to motor vehicle traffic in any state or a federal, provincial, territorial or municipal law of another country, other than a parking violation, shall notify the person's employer in writing of the conviction within ten days of the date of conviction.

C. A driver whose driver license is suspended, revoked or canceled by a state, who loses the privilege to drive a commercial motor vehicle in a state for any period of time or who is disqualified from driving a commercial motor vehicle for any period of time shall notify the person's employer of the action before the end of the business day following the day the driver receives notice of the action.

D. A person who applies for employment as a driver of a commercial motor vehicle shall provide the person's employer, at the time of application, with the following information for the ten years preceding the date of application:

1. A list of the names and addresses of the applicant's previous employers for which the applicant was a driver of a commercial motor vehicle.

2. The dates the applicant was employed by each employer.

3. The reason for leaving each employment.

E. The applicant shall certify that all information furnished pursuant to subsection D of this section is true and complete. An employer may require an applicant to provide additional information.

F. A driver of a commercial motor vehicle who provides false or fraudulent information to an employer or who fails to report the information required in subsection A, B, C or D of this section is guilty as provided in section 28-3481.

§ 28-3228 School bus drivers; student transportation requirements; rules; cancellation of certificate

A. A person shall not operate a school bus that is designed for sixteen or more passengers and that transports 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, a bus endorsement that is issued by the department of transportation and a school bus certificate that is issued by the department of public safety. A person shall not operate a vehicle described in section 15-925 to transport schoolchildren unless the person possesses the appropriate license class for the size of the vehicle being operated, a school bus driver certificate that is issued by the department of public safety and a valid fingerprint clearance card as required by subsection D of this section.

B. To be certified as a school bus driver for a vehicle that is designed for sixteen or more passengers, 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 public safety in consultation with the student transportation 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 public safety in consultation with the student transportation advisory council established by section 28-3053 shall adopt rules that establish minimum standards for the certification of school bus drivers and drivers of other vehicles described in section 15-925. In cooperation with local school districts and charter schools, the department of public safety shall provide for school transportation safety and training courses. The standards established shall:

1. Include requirements concerning knowledge of operating a school bus or a vehicle described in section 15-925, pupil and motor vehicle safety, physical impairments that might affect the applicant's ability to safely operate a school bus or vehicle described in section 15-925 or that might endanger the health or safety of passengers, knowledge of first aid, establishment of school bus and other vehicle safety and training courses, a refresher course to be completed on at least a biennial basis and other matters as the department of public safety and the student transportation advisory council established by section 28-3053 prescribe 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 or vehicle described in section 15-925.

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.

4. Require the applicant to possess a commercial driver license issued by the department, except that:

(a) Notwithstanding subsection A of this section the applicant may possess a commercial driver license issued by another state if the applicant will be driving a school bus for a school district that is adjacent to that state.

(b) An applicant to drive a vehicle described in section 15-925 does not need to possess or obtain a commercial driver license. This subdivision applies only if a commercial driver license is not required by state or federal law to operate the vehicle based on the vehicle's gross vehicle weight rating or occupancy.

D. Each person who applies for a school bus driver certificate shall have a valid fingerprint clearance card that is issued pursuant to title 41, chapter 12, article 3.1 and shall submit an identity verified fingerprint card as described in section 15-106 that the department of public safety shall use to process the fingerprint clearance card as outlined in section 15-106.

E. A person who is issued a school bus driver certificate shall maintain a valid identity verified fingerprint clearance card for the duration of any school bus driver certification period.

F. The department of public safety shall suspend a school bus driver certificate if the fingerprint clearance card is invalid, suspended, canceled or revoked.

G. 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.

H. 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.

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

§ 28-3229 Military applicants; driving test waiver; requirements

A. The department may waive the requirement that an original applicant for a class A, B or C license take the driving test prescribed by section 28-3223, subsection A, paragraph 5 if the applicant is on active duty in the armed forces of the United States or has separated from the armed forces of the United States under honorable conditions and certifies that during the two-year period immediately before application all of the following apply:

1. The applicant has not had more than one driver license, other than a military license.

2. The applicant has not had any driver license suspended, revoked or canceled.

3. The applicant has not been convicted of an offense committed while operating any type of motor vehicle that would subject the applicant to mandatory disqualification pursuant to section 28-3312.

4. The applicant has not been found responsible for or guilty of a moving traffic violation that results in a motor vehicle accident and has no record of a motor vehicle accident in which the applicant is at fault.

B. The department may waive the driving test pursuant to subsection A of this section if the applicant certifies and provides evidence as prescribed by the department that all of the following apply:

1. The applicant is regularly employed or within the time period prescribed in the United States department of transportation commercial driver's license standards, requirements and penalties, 49 Code of Federal Regulations section 383.77, was regularly employed in a military position requiring operation of a commercial motor vehicle.

2. The applicant is exempt from commercial driver licensing requirements pursuant to section 28-3152, subsection A, paragraph 1 or a comparable law of another state implementing 49 Code of Federal Regulations section 383.3(c).

3. For at least two years immediately before separating from the armed forces of the United States under honorable conditions the applicant operated a motor vehicle that is representative of the class of motor vehicle that the applicant operates or expects to operate.

C. An applicant who obtains a driving test waiver under this section shall take and successfully pass any knowledge test required pursuant to this chapter.

§ 28-3230 Federal motor carrier safety administration commercial driver's license drug and alcohol clearinghouse; driving privilege denial; expungement

A. The department shall search the federal motor carrier safety administration's drug and alcohol clearinghouse before the department issues, upgrades, renews or transfers a commercial driver license or issues, upgrades or renews a commercial learner's permit.

B. On notification from the federal motor carrier safety administration's drug and alcohol clearinghouse that a driver is prohibited from operating a commercial motor vehicle due to a violation of the controlled substances and alcohol use and testing prohibitions in 49 Code of Federal Regulations sections 382.201 through 382.217, the department shall:

1. Deny issuing, upgrading, renewing or transferring a commercial driver license or issuing, upgrading or renewing a commercial learner's permit.

2. Initiate downgrade procedures for commercial driver license and commercial learner's permit holders by removing the commercial privilege from the commercial driver license or commercial learner's permit. The downgrade is effective within sixty days after the department receives notification of the driver's prohibited status.

C. As provided by this chapter, the department shall allow issuing, upgrading, renewing, transferring or reinstating a commercial driver license or issuing, upgrading, renewing or reinstating a commercial learner's permit on notification from the federal motor carrier safety administration's drug and alcohol clearinghouse that a driver is no longer prohibited from operating a commercial motor vehicle.

D. If the federal motor carrier safety administration notifies the department that a driver was erroneously placed in a prohibited status, the department shall expunge the driver record of any reference to and actions taken on the driver record as a result of the erroneous notification and allow for the reinstatement of the commercial privilege for a commercial driver license or commercial learner's permit.

Article 6 Regulation

§ 28-3301 License or permit cancellation

A. The department may cancel a driver license or permit on determining any of the following:

1. The licensee was not entitled to the issuance of the license or permit under this chapter.

2. The licensee failed to give the required or correct information in the application or committed fraud in making the application.

3. A person who signed an application for a driver license or permit or who was issued a driver license or permit files a written request with the department for cancellation of the license or permit including all of the following information:

(a) The name of the licensee or permittee.

(b) The driver license or permit number.

(c) The date of birth of the licensee or permittee or the expiration date of the driver license or permit.

4. The licensee failed to respond to a request by the department to update the licensee's license.

5. The licensee has failed, refused or neglected to pay any fee, tax or assessment, or a penalty on the fee, tax or assessment, due to the department or for its account.

B. If the department determines that a person falsely or fraudulently applied for an original or duplicate driver license, nonoperating identification license or permit, the department shall cancel the license or permit issued to the person and suspend the person's privilege to operate a motor vehicle for six months from the date of cancellation for the first offense and for one year from the date of cancellation for the second or a subsequent offense.

C. Cancellation of a license or permit under this section does not affect a pending action against the licensee or permittee.

D. The cancellation of a license is without prejudice. A person whose license is canceled may apply for a new license at any time after the cancellation.

E. If voluntarily surrendered or requested by a licensee, the department shall cancel a nonoperating identification license. A nonoperating identification license canceled pursuant to this subsection is terminated without prejudice and shall be surrendered to the department.

F. The department may cancel a nonoperating identification license if the licensee has failed, refused or neglected to pay any fee, tax or assessment, or a penalty on the fee, tax or assessment, due to the department or for its account.

§ 28-3302 Nonresident driver privilege; suspension or revocation; reporting convictions

A. The privilege of driving a motor vehicle on the highways of this state that is given to a nonresident driver under this chapter is subject to suspension or revocation by the department in the same manner and for the same cause as a driver license that is issued under this chapter.

B. On receipt of a record of the conviction in this state of a nonresident driver of a motor vehicle of an offense under the motor vehicle laws of this state, the department may forward a certified copy of the record to the motor vehicle administrator in the state or country in which the person who is convicted is a resident.

§ 28-3303 Suspension or revocation of driver license or privilege for actions outside of state

A. Except as provided in subsection B of this section, the department may suspend or revoke the license or driving privilege of a resident of this state or the privilege of a nonresident to drive a motor vehicle in this state and shall require the person to successfully complete approved traffic survival school educational sessions as prescribed in section 28-3306 on receipt of notice of a conviction of the person of an offense in another jurisdiction that would be grounds for the suspension or revocation of the person's driver license if the offense had been committed in this state. Section 28-3306, subsections C through G apply if a person's license or driving privilege is suspended or revoked or if a person is required to successfully complete approved driver educational sessions as provided by this subsection.

B. The department shall revoke the license or driving privilege of a resident of this state or the privilege of a nonresident to drive a motor vehicle in this state after receiving notice of a conviction of the person in another jurisdiction and after determining that the conviction was for an offense that if committed in this state would be grounds for revocation pursuant to section 28-3304 or chapter 3, 4 or 5 of this title.

C. The department may suspend or revoke the driver license of a resident of this state who fails to comply with the terms of a traffic citation that is lawfully issued in a jurisdiction outside this state pursuant to the nonresident violator compact adopted by chapter 6, article 4 of this title.

D. Notwithstanding chapter 6, articles 3 and 4 of this title and in lieu of suspension of a driver license or driving privileges, the department may issue a temporary driver license that is valid for a period of not more than one hundred eighty days.

§ 28-3304 Mandatory revocation of license; definition

A. In addition to the grounds for mandatory revocation provided for in chapters 3, 4 and 5 of this title, the department shall immediately revoke the license of a driver on receipt of a record of the driver's conviction of any of the following offenses if the conviction is final:

1. A homicide or aggravated assault resulting from the operation of a motor vehicle.

2. A felony in the commission of which a motor vehicle is used.

3. Theft of a motor vehicle pursuant to section 13-1802.

4. Unlawful use of means of transportation pursuant to section 13-1803.

5. Theft of means of transportation pursuant to section 13-1814.

6. Drive by shooting pursuant to section 13-1209.

7. Failure to stop and render aid as required under the laws of this state if a motor vehicle accident results in the death or personal injury of another.

8. Perjury or the making of a false affidavit or statement under oath to the department under this chapter or under any other law relating to the ownership or operation of a motor vehicle.

9. Conviction or forfeiture of bail not vacated on a second charge of violating section 28-1381 or 28-1382 within eighty-four months.

10. Conviction or forfeiture of bail not vacated on a third or subsequent charge of violating section 28-1381, 28-1382 or 28-1383 within eighty-four months.

11. Conviction or forfeiture of bail not vacated on a charge of violating section 28-1381 or 28-1382 and the driver has been convicted within a period of eighty-four months of an offense in another jurisdiction that if committed in this state would be a violation of section 28-1381 or 28-1382.

B. In determining the starting date for the eighty-four month period prescribed in subsection A, paragraphs 9, 10 and 11 of this section, the department shall use the date of the commission of the offense.

C. For the purposes of this section, "conviction" means a final adjudication or judgment, including an order of a juvenile court finding that a juvenile violated any provision of this title or committed a delinquent act that if committed by an adult would constitute a criminal offense.

§ 28-3305 Court action on conviction

A. If a person is convicted of an offense or if a judgment is entered against the person for which revocation of the driver license of the person by the department is mandatory pursuant to this chapter, the court that ordered the conviction or judgment shall:

1. Require the person to surrender to the court all driver licenses held by the person.

2. Invalidate or destroy the driver licenses.

3. Forward a record of the conviction or judgment to the department.

B. A court with jurisdiction over offenses or civil traffic violations committed under this chapter, any other law of this state or a municipal ordinance regulating the operation of motor vehicles on highways shall forward a record of the conviction of or judgment against a person in the court, except for a violation related to standing or parking, to the department and may recommend the suspension of the driver license of the person.

C. If a court declares that an entire civil penalty is due pursuant to section 28-1601, the court shall immediately notify the department. After payment of the civil penalty, the court shall give notice immediately of full satisfaction of the civil penalty by a method approved by the department. On payment of a reinstatement fee as provided in section 28-3002, the department shall terminate the suspension of a driver license, a driver permit or the privilege of a nonresident to drive a motor vehicle in this state if no other grounds for suspension exist.

§ 28-3306 Discretionary license suspension or revocation; traffic survival school; hearing

A. The department may suspend or revoke the license of a driver or require a licensee to attend and successfully complete approved traffic survival school educational sessions designed to improve the safety and habits of drivers on a showing by department records or other sufficient evidence that the licensee:

1. Has committed an offense for which mandatory revocation of the license is required on conviction.

2. Has been involved as a driver in an accident resulting in the death or personal injury of another or serious property damage.

3. Has been convicted of or adjudged to have violated traffic regulations governing the movement of vehicles with such a frequency that it indicates a disrespect for traffic laws and a disregard for the safety of other persons on the highways.

4. Has been convicted of reckless driving as provided in section 28-693 or is a habitually reckless or negligent driver of a motor vehicle.

5. Is medically, psychologically or physically incapable of operating a motor vehicle and, based on law enforcement, medical or other department information, the continued operation of a motor vehicle by the licensee would endanger the public health, safety and welfare.

6. Has committed or permitted an act involving an unlawful or fraudulent use of the license.

7. Has committed an offense in another jurisdiction that if committed in this state is grounds for suspension or revocation.

8. Has been convicted of a violation of section 28-1381 or 28-1382.

9. Has been convicted of a violation of section 28-1464.

B. On receipt of satisfactory evidence of a violation of a driver license restriction, the department may suspend or revoke the driver license.

C. On suspending or revoking the license of a person or requiring a licensee to attend and successfully complete approved traffic survival school educational sessions designed to improve the safety and habits of drivers pursuant to this section, the department shall notify the licensee in writing immediately.

D. On the receipt of the person's request for a hearing, the department shall set the hearing within sixty days. The department may hold the hearing in person, by telephone or by videoconference. If the department holds the hearing in person, the department shall hold the hearing in the county where the licensee resides unless the law enforcement agency issuing the citation or affidavit that authorizes the suspension or revocation requests at the time of issuance that the hearing be held in the county where the violation allegedly occurred.

E. If a hearing is held, the department or its duly authorized agent may administer oaths, may issue subpoenas for the attendance of witnesses and the production of relevant books and papers and may require a reexamination of the licensee.

F. At the hearing, the department shall either rescind its order of suspension or its order requiring the licensee to attend and successfully complete approved traffic survival school educational sessions or, if good cause exists, the department may uphold or extend the order, revoke the license or make any order that is within its discretionary power under this section and that is in the interest of public safety.

G. If a licensee receives notice requiring the licensee to attend and successfully complete approved traffic survival school educational sessions and the department receives information of noncompliance with this order, the department shall amend the order to suspend or revoke the license.

H. A person whose driver license is suspended or revoked as provided in subsection A, paragraph 5 of this section may submit a written request to the department for an administrative hearing. The person shall submit the request for a hearing within fifteen days after the department provides the person with notice of suspension or revocation. On receipt of a proper request for a hearing, the department shall provide the person with an opportunity for a hearing in the county where the person resides within thirty days after the department receives the request. The request for a hearing does not stay a summary suspension issued by the department.

I. The department shall remove a suspension from a record if the person has completed all requirements imposed under this title or by a court in this state, including the successful completion of traffic survival school educational sessions, except for payment of reinstatement fees as prescribed by section 28-3002. The person shall pay the appropriate reinstatement fees that are required under section 28-3002 when conducting a transaction with the department.

§ 28-3307 Order to complete traffic survival school educational sessions

A. If a licensee is required to attend and successfully complete approved traffic survival school educational sessions designed to improve the safety and habits of drivers pursuant to section 28-645, 28-647, 28-672, 28-695, 28-3306 or 28-3321, the department shall indicate on the computer record that the licensee is required to complete traffic survival school educational sessions.

B. On successful completion of the traffic survival school educational sessions, the department shall record satisfaction of the requirement on the licensee's computer record.

§ 28-3308 Mandatory suspension; failure to appear

On notification by the court that a person failed to appear as directed for a scheduled court appearance after service of a criminal complaint alleging a violation of a provision of this title, the department shall suspend the person's driver license or nonresident operating privilege until the person appears. If the person appears and does not pay the person's fines, surcharges or assessments, on notification by the court the department shall suspend the person's driving privileges or restrict the person's driving privileges as described in section 28-144 until the fines, surcharges and assessments are paid.

§ 28-3309 License suspension and denial; improper use by persons under legal drinking age; improper use by persons under eighteen years of age; providing spirituous liquor to a minor; exceptions

A. The department shall promptly suspend a driver license or nonoperating identification license issued to or the driving privilege of a person who is under the legal drinking age and who is convicted of using a false or lawfully issued license of this state or any other jurisdiction in violation of section 4-241, subsection L or N for not more than:

1. Six months for a first conviction.

2. Twelve months for a second or subsequent conviction.

B. The department shall promptly deny the right of an otherwise qualified person to apply for a driver and identification license if the person does not have a valid driver or identification license and the person is convicted of using the driver or identification license of another person in violation of section 4-241, subsection L or N or in violation of section 13-3403.02, subsection C for not more than:

1. Six months for a first conviction.

2. Twelve months for a second or subsequent conviction.

C. The department shall promptly suspend a driver license or nonoperating identification license issued to or the driving privilege of a person who is under eighteen years of age and who is convicted of using a false or lawfully issued license of this state or any other jurisdiction in violation of section 13-3403.02, subsection C for not less than:

1. Six months for a first conviction.

2. Twelve months for a second or subsequent conviction.

D. If a judge orders the suspension of a driver license or driving privilege for a violation of section 4-241, subsection P, the department shall promptly suspend a driver license issued to or the driving privilege of the person for the period of time ordered by the judge.

E. Subsection D of this section does not apply to any of the following:

1. A parent who is over twenty-one years of age and who gives spirituous liquor to the parent's child in a private residence.

2. A guardian who is over twenty-one years of age and who gives spirituous liquor to the guardian's ward in a private residence.

3. A person who gives spirituous liquor to another person who is under twenty-one years of age in conjunction with a religious service or ceremony pursuant to section 4-249 if the spirituous liquor was lawfully purchased.

4. A title 4 licensee and its employees, as long as the licensee is acting within the scope of its license and the employee is acting within the scope of employment.

§ 28-3310 Improper use of license; peace officer affidavit; license suspension; hearing

A. A peace officer who arrests a person for the commission of an offense for which, on conviction, suspension of any license or privilege to operate a motor vehicle is required by section 28-3309 shall file an affidavit with the department. The peace officer shall make the affidavit on a form furnished or in a manner prescribed by the department. The affidavit shall contain a form of certification that is prescribed by and subject to the penalty for perjury pursuant to section 28-1561. The affidavit shall include the name, date of birth, social security number and address of the person arrested, the number, if any, of the person's driver or nonoperating identification license, the nature of the offense, the date of the offense and the officer's reasonable grounds to believe the person committed the offense. The officer shall file the affidavit with the department within fifteen days after the date the offense was committed.

B. On the receipt of an affidavit that is in compliance with subsection A of this section, the department shall suspend any driver and identification license issued to the person, the privilege to obtain the licenses and the privilege to operate a motor vehicle on a highway of this state for not less than:

1. Six months for a first offense.

2. Twelve months for a second or subsequent offense.

C. Except as provided in subsection D of this section, the suspension pursuant to subsection B of this section is effective fifteen days after the department gives written notice by mail to the address provided to the department by the licensee or provided on the affidavit. The notice shall indicate the action taken pursuant to this section and shall state that the department will provide an opportunity for a hearing if the department receives a written request for a hearing from the person within fifteen days after the notice is sent.

D. On receipt of a written request, the department shall provide an opportunity for a hearing as early as practicable and within thirty days after the request. The department shall hold the hearing in the county where the person named in the affidavit resides, unless the law enforcement agency issuing the affidavit requests at the time of filing the affidavit that the hearing be held in the county where the offense occurred. The request stays the suspension by the department until a hearing is held.

E. At the hearing, the department or its duly authorized agent may administer oaths, issue subpoenas for the attendance of witnesses and the production of relevant books and papers and require a reexamination of the person named in the affidavit. If at the hearing the department suspends the person's privilege to operate a motor vehicle, the suspension is effective fifteen days after the department gives written notice of the suspension, except as provided in section 28-3311.

F. If the suspension or determination of a denial of issuance is sustained after the hearing, the person whose driver license, nonoperating identification license or permit to drive or nonresident operating privilege is suspended or the person to whom a driver license, nonoperating identification license or permit is denied under this section may file a petition in the superior court to review the final order in the same manner as provided in section 28-3317.

G. If the suspension or determination of a denial of issuance is not sustained, the ruling is not admissible in and does not affect any civil or criminal court proceeding.

§ 28-3311 Concurrent suspensions

Periods of suspension required pursuant to section 28-3309, subsection A or B or section 28-3310 arising from the same offense run concurrently and begin on the date the original suspension is effective.

§ 28-3312 Mandatory disqualification of commercial driver licenses; definition

A. The department shall disqualify a person who is required to have a commercial driver license, who is a commercial driver license holder or who is a commercial learner's permit holder from driving a commercial motor vehicle as follows:

1. Except as provided in subsection E of this section and except as otherwise provided in this subsection, for at least one year if a person:

(a) Refuses a test in violation of section 28-1321.

(b) Is convicted of a first violation of any of the following:

(i) Driving a commercial motor vehicle under the influence of intoxicating liquor or a controlled substance or while having an alcohol concentration of 0.04 or more.

(ii) Leaving the scene of an accident involving a motor vehicle driven by the person.

(iii) Using a motor vehicle in the commission of a felony.

(iv) A violation of chapter 4, article 3 of this title while operating a noncommercial motor vehicle.

(v) Driving a commercial motor vehicle while, as a result of prior violations of this title committed while operating a commercial motor vehicle, the person's commercial driver license is revoked, suspended or canceled or the person is disqualified from operating a commercial motor vehicle.

(vi) Causing a fatality through the negligent operation of a commercial motor vehicle, including a conviction of manslaughter, homicide or negligent homicide resulting from operation of a motor vehicle.

2. For at least three years, if the person is convicted of any of the violations prescribed in paragraph 1 of this subsection and the violation occurred while the person was transporting a hazardous material in the quantity and under the circumstances that require placarding of the transport vehicle under the department's safety rules pursuant to chapter 14 of this title.

3. For the life of the person, if the person is convicted of two or more violations of any of the offenses prescribed in paragraph 1 of this subsection or of any combination of those offenses arising from two or more separate incidents. The department shall consider only offenses committed from and after December 31, 1989 in applying this paragraph.

4. Permanently if the person is convicted of using any motor vehicle in the commission of a felony involving the manufacture, distribution or dispensing of a controlled substance or possession with intent to manufacture, distribute or dispense a controlled substance.

5. For at least sixty consecutive days, if the person is convicted of two serious traffic violations committed in a motor vehicle arising from separate incidents occurring within a three-year period from the date of the violation.

6. For at least one hundred twenty days served in addition to any other disqualification, if the person is convicted of a third or subsequent serious traffic violation committed in a motor vehicle arising from separate incidents occurring within a three-year period from the date of the violation.

7. For at least sixty consecutive days, if the department determines that the person falsified information or documentation as part of the licensing process.

8. For at least one year, if the person is convicted of fraud related to the issuance of a commercial learner's permit or commercial driver license.

9. Permanently if the person is convicted of any of the following offenses or an offense committed in another jurisdiction that if committed in this state would be a violation of any of the following offenses and a commercial motor vehicle was used in the commission of the offense:

(a) Sex trafficking pursuant to section 13-1307.

(b) Trafficking of persons for forced labor or services pursuant to section 13-1308.

(c) Child sex trafficking pursuant to section 13-3212.

B. Except as provided in subsection C of this section, a person who is required to have a commercial driver license or a commercial driver license holder and who is found responsible for violating an out-of-service order pursuant to section 28-5241 is disqualified from driving a commercial motor vehicle as follows:

1. For a period of one hundred eighty days if the person is found responsible for a first violation of an out-of-service order.

2. For a period of two years if the person is found responsible for a second violation of any out-of-service order during any ten-year period arising from separate incidents.

3. For a period of three years if the person is found responsible for a third or subsequent violation of any out-of-service order during any ten-year period arising from separate incidents.

C. A person who is required to have a commercial driver license or a commercial driver license holder and who is found responsible for violating an out-of-service order pursuant to section 28-5241 while transporting hazardous materials or while operating a commercial motor vehicle designed or used to transport sixteen or more passengers, including the driver, is disqualified from driving a commercial motor vehicle as follows:

1. For a period of one hundred eighty days if the person is found responsible for a first violation of an out-of-service order.

2. For a period of three years if the person is found responsible for a second or subsequent violation of any out-of-service order during any ten-year period arising from separate incidents.

D. A person who is required to have a commercial driver license or a commercial driver license holder and who is convicted of or found responsible for violating any federal, state or local railroad grade crossing law, ordinance or regulation is disqualified from driving a commercial motor vehicle as follows:

1. For a period of sixty days if a person is convicted of or found responsible for a first violation.

2. For a period of one hundred twenty days if a person is convicted of or found responsible for a second violation during any three-year period.

3. For a period of one year if a person is convicted of or found responsible for a third or subsequent violation during any three-year period.

E. If a federal agency determines that a commercial motor vehicle licensee is driving in a manner that constitutes an imminent hazard, the department, on receipt of notification by the federal government, shall disqualify the driver for a period not to exceed one year. The disqualification shall run concurrently with any other disqualification imposed on the driver. For the purposes of this subsection, "imminent hazard" means the existence of a condition that presents a substantial likelihood that death, serious illness, severe personal injury or a substantial endangerment to health, property or the environment may occur before the reasonably foreseeable completion date of a formal proceeding to decrease the risk of death, illness, injury or endangerment.

F. The department shall keep records of findings of responsibility for a civil traffic violation and of conviction of any moving criminal traffic violation for a commercial driver licensee for violations in any type of motor vehicle and for a person required to have a commercial driver license if the violations arise from the operation of a commercial motor vehicle. The department shall make the records available to other states, the United States secretary of transportation, the driver and any motor carrier or prospective motor carrier or the motor carrier's designated agent within ten days after receiving a report of a conviction or finding of responsibility in this state or receipt of a report of a conviction or finding of responsibility or disqualification received from another state.

G. Disqualification for a serious traffic violation committed by a commercial driver license holder while operating a noncommercial motor vehicle applies only if the conviction results in the revocation, cancellation or suspension of the person's commercial driver license or noncommercial driver license.

H. The department may adopt rules establishing guidelines and conditions under which the department may reduce a disqualification for life pursuant to subsection A, paragraph 3 of this section to a disqualification of at least ten years. If a person's disqualification is reduced pursuant to rules adopted pursuant to this subsection and the person is subsequently convicted of a violation described in subsection A, paragraph 1 of this section, the person is permanently disqualified from driving a commercial vehicle and is not eligible to apply for a reduction of the disqualification pursuant to rules adopted pursuant to this subsection.

I. Except as provided in subsection E of this section, the beginning date of the disqualification shall be ten days after the date the department receives the report of conviction or finding of responsibility.

J. For the purposes of this section, "serious traffic violation" means a conviction or finding of responsibility for any of the following:

1. Excessive speeding involving a single offense for a speed of fifteen miles per hour or more above the posted speed limit.

2. Reckless driving as provided by section 28-693.

3. Aggressive driving as provided by section 28-695.

4. Racing as defined in section 28-708.

5. Improper or erratic traffic lane changes as provided by section 28-729.

6. Following the vehicle ahead too closely as provided by section 28-730.

7. A violation of this title that is connected with a fatal traffic accident.

8. Driving a commercial motor vehicle if the person has not been issued a valid commercial driver license pursuant to this chapter.

9. Driving a commercial motor vehicle without a commercial driver license in the person's possession.

10. Driving a commercial motor vehicle without having a valid endorsement for the type of commercial motor vehicle or motor vehicle combination being operated.

11. Driving a commercial motor vehicle while using a portable wireless communication device as provided by section 28-914.

§ 28-3313 Record update

A. Within ten days of the suspension, revocation, cancellation or disqualification of a commercial driver license for a period of sixty days or more, the department shall update its records to reflect the action and shall notify the commercial driver license information system of the action taken.

B. Within ten days of the suspension, revocation, cancellation or disqualification of a commercial driver license issued by another state or of a nondomiciled commercial driver license, the department shall notify the state licensing authority that issued the license of the action taken.

§ 28-3314 License reexamination

A. If the department has good cause to believe that a licensed driver is incapable of operating a motor vehicle pursuant to section 28-3306, subsection A, paragraph 5 or is otherwise not qualified to be licensed, the department may require the licensee to submit to an examination as prescribed by the department after the department gives at least five days' advance written notice to the licensee. After the examination, the department shall take action as appropriate and may:

1. Suspend or revoke the license.

2. Permit the licensee to retain the license.

3. Restrict the licensee's driving privileges as permitted under section 28-3159.

B. Refusal or neglect of the licensee to submit to the examination under this section is grounds for suspension or revocation of the license.

C. The department may use accident information received pursuant to this title and from other governmental agencies to determine if good cause exists to believe that a licensed driver is incapable of operating a motor vehicle pursuant to section 28-3306, subsection A, paragraph 5 or is otherwise not qualified to be licensed.

§ 28-3315 Period of suspension, revocation or disqualification; unlicensed drivers; definitions

A. The department shall not suspend, revoke or disqualify a driver license or privilege to drive a motor vehicle on the public highways for more than one year from the date of a conviction or judgment, if any, against a person for which this chapter makes revocation, suspension or disqualification mandatory or from the date the notice is sent pursuant to section 28-3318 if no conviction was involved, except as permitted under subsection E of this section and sections 28-3312, 28-3319 and 28-3320.

B. A person whose license or privilege to drive a motor vehicle on the public highways has been revoked may apply for reinstatement of the person's license as provided by law after the cause of the revocation is removed or after expiration of the revocation period prescribed by law. The department may reinstate the person's driver license after the department reviews an applicant's driving record in this state or another state or other sufficient evidence to determine that:

1. All withdrawal actions are complete.

2. The applicant has not been convicted of or found responsible for any traffic violations within twelve months preceding application.

3. All other statutory requirements are satisfied.

C. The department shall not accept an application for reinstatement of a driver license until after the twelve month period prescribed in subsection B of this section has elapsed.

D. If the department reinstates a person's driver license or driving privilege for a revocation that is related to alcohol or other drugs, the department may accept an evaluation that was performed within the previous twelve months from a physician, a psychologist, a physician assistant, a registered nurse practitioner or an addiction counselor indicating that, in the opinion of the physician, psychologist, physician assistant, registered nurse practitioner or addiction counselor, the condition does not affect or impair the person's ability to safely operate a motor vehicle. For the purposes of reinstating a license or driving privilege pursuant to this article, the department may rely on the opinion of a physician, a psychologist, a physician assistant, a registered nurse practitioner or an addiction counselor.

E. Notwithstanding subsections A and B of this section:

1. A person whose license or privilege to drive is revoked pursuant to section 28-3304, subsection A, paragraph 1 or 10 is not entitled to have the person's license or privilege renewed or restored for three years.

2. A person whose license or privilege to drive is revoked pursuant to section 13-1209 is not entitled to have the person's license or privilege renewed or restored for the period of time ordered by the court.

3. If a license, permit or privilege to drive is revoked pursuant to section 28-661, subsection F the license, permit or privilege may not be renewed or restored except as prescribed by section 28-661, subsections F and G.

4. A person whose license, permit or privilege to drive is revoked pursuant to section 28-661, subsection H is not entitled to have the person's license, permit or privilege renewed or restored for three years.

F. If an unlicensed driver commits an offense for which a driver license could be suspended, revoked or disqualified, the department shall not accept the unlicensed driver's application for a driver license for a period equal to the period of time that applies to a driver with a license. If the offense is one for which a driver license could be revoked, the department shall not accept the unlicensed driver's application for a driver license unless the application includes an evaluation from a physician, psychologist, physician assistant, registered nurse practitioner or addiction counselor on the habits and driving ability of the person and the evaluator is satisfied that it is safe to grant the privilege of driving a motor vehicle on the public highways.

G. The expiration of a person's license during the period of time it is under suspension, revocation or disqualification does not invalidate or terminate the suspension, revocation or disqualification.

H. A person whose license or privilege to drive a motor vehicle on the public highways has been suspended pursuant to section 28-3306, subsection A, paragraph 5 or section 28-3314 may apply for a new license as provided by law after the cause for suspension is removed or after expiration of the suspension period prescribed by law if both of the following conditions are met:

1. The department is satisfied, after reviewing the medical condition and driving ability of the person, that it is safe to grant the person the privilege of driving a motor vehicle on the public highways.

2. If the person has a medical condition related to alcohol or other drugs, the department may accept an evaluation form from a physician, a psychologist, a physician assistant, a registered nurse practitioner or an addiction counselor indicating that, in the opinion of the physician, psychologist, physician assistant, registered nurse practitioner or addiction counselor, the condition does not affect or impair the person's ability to operate a motor vehicle in a safe manner.

I. For the purposes of this section:

1. "Addiction counselor" has the same meaning prescribed in section 28-3005.

2. "Physician" means a physician who is licensed pursuant to title 32, chapter 13, 14, 17 or 29.

3. "Physician assistant" means a physician assistant who is licensed pursuant to title 32, chapter 25.

4. "Psychologist" means a psychologist who is licensed pursuant to title 32, chapter 19.1.

5. "Registered nurse practitioner" means a registered nurse practitioner who is licensed pursuant to title 32, chapter 15.

§ 28-3316 Operation of vehicle under a foreign license prohibited during suspension or revocation

A resident or nonresident whose driver license or privilege to operate a motor vehicle in this state is suspended or revoked pursuant to this chapter shall not operate a motor vehicle in this state under a license, permit or registration certificate issued by another jurisdiction, or otherwise during the suspension or after the revocation until a new license is obtained pursuant to this chapter.

§ 28-3317 Appeal

A. Unless the cancellation or revocation is mandatory under this chapter, a person who is denied a license or whose license is canceled, suspended or revoked by the department may seek judicial review pursuant to title 12, chapter 7, article 6, except that section 12-910, subsections A, B, E and F do not apply.

B. The court shall expedite the disposition of appeals pursuant to this section.

C. The court hearing and determination shall extend to all questions of law and fact presented by the entire record before the court. The court shall not hear new or additional evidence in support of or in opposition to a finding, order, determination or decision of the department, except in cases in which, in the discretion of the court, justice demands the admission of new or additional evidence.

§ 28-3318 Service of notice; definitions

A. The department shall provide written, electronic or digital 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, disqualification or certified ignition interlock device limitation of the license or privilege to operate a motor vehicle.

2. Required attendance at training and education sessions.

B. The department may include additional information in the written, electronic or digital notice developed in consultation with the director of the department of public safety as prescribed in section 28-1462 regarding certified ignition interlock devices.

C. The department shall send the notice by mail or electronically or digitally to the address provided to the department on the licensee's application or provided to the department pursuant to section 28-448. 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.

D. 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.

E. Compliance with the mailing provisions of this section constitutes notice of the suspension, revocation, cancellation, disqualification or certified ignition interlock device limitation for purposes of prosecution under section 28-1383, 28-1464 or 28-3473. The state is not required to prove actual receipt of the notice or actual knowledge of the suspension, revocation, cancellation, disqualification or certified ignition interlock device limitation.

F. 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.

G. For the purposes of this section:

1. "Certified ignition interlock device" has the same meaning prescribed in section 28-1301.

2. "Mail" or "mailing" means delivery by first class or certified mail or through a department electronic or digital system.

§ 28-3319 Action after license suspension, revocation or denial for driving under the influence or refusal of test; ignition interlock device requirement; definition

A. If, pursuant to section 28-1321, 28-1381, 28-1382, 28-1383, 28-3320 or 28-3322, the license of a driver or the driving privilege of a nonresident is suspended or revoked, the department shall not terminate the suspension or revocation or issue a special ignition interlock restricted driver license, if applicable, pursuant to chapter 4, article 3.1 of this title until the person provides proof of financial responsibility pursuant to chapter 9, article 3 of this title.

B. If, pursuant to section 28-1321, 28-1381, 28-1382, 28-1383, 28-3320 or 28-3322, an unlicensed resident is denied a license or permit to operate a motor vehicle, the department shall not issue a license or permit until the person provides proof of financial responsibility pursuant to chapter 9, article 3 of this title.

C. If a person whose license or driving privilege is suspended or revoked pursuant to section 28-1321, 28-1381, 28-1382, 28-1383 or 28-1385 is ordered, pursuant to section 28-1381, 28-1382, 28-1383 or 28-1385, to attend alcohol or other drug screening, education or treatment, the department shall not either:

1. Terminate the suspension or issue a special ignition interlock restricted driver license, if applicable, pursuant to chapter 4, article 3.1 of this title until the person or licensed treatment facility provides proof that the person has completed or is participating satisfactorily in alcohol or other drug screening, education or treatment.

2. Issue a new license or a special ignition interlock restricted driver license, if applicable, pursuant to chapter 4, article 3.1 of this title to operate a motor vehicle after the revocation until the person or licensed treatment facility provides proof that the person has completed the court-ordered program.

D. Except as provided in subsection E of this section, on receipt of a report of conviction from a court for a violation that involved intoxicating liquor or that specifically requires the installation of a certified ignition interlock device, the department shall require any motor vehicle the convicted person operates to be equipped with a functioning certified ignition interlock device and the convicted person to meet the requirements prescribed in section 28-1461 as follows:

1. For twelve months if:

(a) Except as provided in subsection G of this section, the person is convicted of a violation of section 28-1381, section 28-1382, subsection A, paragraph 1 or section 28-1383, subsection A, paragraph 3, subdivision (a).

(b) The department determines that within a period of eighty-four months the person is convicted of a second or subsequent violation of section 28-1381 or section 28-1382, subsection A, paragraph 1 with a prior conviction of a violation of section 28-1381, 28-1382 or 28-1383 or an act in another jurisdiction that if committed in this state would be a violation of section 28-1381, 28-1382 or 28-1383.

2. For eighteen months if the person is convicted of a violation of section 28-1382, subsection A, paragraph 2.

3. For twenty-four months if:

(a) The person is convicted of a violation of section 28-1382, subsection A, paragraph 2 and the department determines that within a period of eighty-four months the person has a prior conviction of a violation of section 28-1381, 28-1382 or 28-1383 or an act in another jurisdiction that if committed in this state would be a violation of section 28-1381, 28-1382 or 28-1383.

(b) The person is convicted of a violation of section 28-1383, subsection A, paragraph 1, 2, 4 or 5 or paragraph 3, subdivision (b).

E. If a person is required to equip a motor vehicle with a certified ignition interlock device pursuant to subsection D of this section and the person has a medical condition that prevents the person from using the certified ignition interlock device during the entire time period required by subsection D of this section, the department shall require monthly alcohol and drug screening instead of the certified ignition interlock device for the time period prescribed by subsection D of this section. The department shall require evidence of the medical condition that is satisfactory to the department and in a manner prescribed by the department from an authorized physician as defined in section 28-2409 or an authorized physician assistant as defined in section 28-2409. The alcohol or drug screening shall be provided by a facility approved by the department of health services, the United States department of veterans affairs, a substance abuse counselor as defined in section 28-3005 or a probation department.

F. The requirement prescribed in subsection D of this section begins on the date the person successfully completes the alcohol or other drug screening, education or treatment program requirements of this title and the person is otherwise eligible to reinstate the person's driver license or driving privilege. If the person is issued a special ignition interlock restricted driver license for the violations giving rise to the requirements prescribed in subsection D of this section or pursuant to section 28-1321, subsection P or section 28-1385, subsection J, the person shall be credited for the amount of time that a certified ignition interlock device is installed on the person's motor vehicle after the department authorizes the installation of the certified ignition interlock device on that person's motor vehicle.

G. A person who is required to equip a motor vehicle with a certified ignition interlock device pursuant to this section shall comply with chapter 4, article 5 of this title.

H. The department shall defer the remainder of the time period prescribed in subsection D, paragraph 1, subdivision (a) of this section commencing with the later of six months from the date the interlock was installed or the completion of the requirements of this subsection if all of the following apply:

1. The person is sentenced pursuant to section 28-1381, subsection I.

2. The person successfully completes an alcohol education program consisting of at least sixteen hours pursuant to section 28-1381.

3. The person has maintained a functioning ignition interlock device on all motor vehicles the person operates and has met the requirements of section 28-1461.

4. The person has not attempted to operate a vehicle with an alcohol concentration of 0.08 or more two or more times during the period of license restriction or limitation.

5. At the time of the offense, the person was not involved in a motor vehicle accident that resulted in physical injury or property damage.

6. All necessary compliance information has been provided to the department by the ignition interlock device provider, the alcohol screening program and the alcohol education program.

I. The deferment pursuant to subsection H of this section is permanent, unless the person is arrested for a violation of section 28-1381, 28-1382 or 28-1383 that occurs during the period of the deferment. If the person is arrested as described in this subsection, the department shall revoke the deferment and require the person to complete the remainder of the time period prescribed in subsection D, paragraph 1, subdivision (a) of this section.

J. Notwithstanding any other law, the department shall reduce the length of time that a person is required to have a functioning certified ignition interlock device installed in a motor vehicle pursuant to subsection D of this section by the length of time that the person is incarcerated in a jail or prison facility for a violation of section 28-1381 or 28-1383 that did not involve intoxicating liquor.

K. For the purposes of this section, "certified ignition interlock device" has the same meaning prescribed in section 28-1301.

§ 28-3320 Suspension of license for persons under eighteen years of age; notice; definition

A. In addition to the grounds for mandatory suspension or revocation provided for in chapters 3, 4 and 5 of this title, the department shall immediately suspend the driver license or privilege to drive or refuse to issue a driver license or privilege to drive of a person who commits an offense while under eighteen years of age as follows:

1. For a period of two years on receiving the record of the person's conviction for a violation of section 4-244, paragraph 34, section 28-1381 or section 28-1382.

2. For a period of three years on receiving the record of the person's conviction for a violation of section 28-1383.

3. Until the person's eighteenth birthday on receiving the record of the person's conviction for a violation of section 13-1602, subsection A, paragraph 1 or section 13-1604, subsection A involving the damage or disfigurement of property by graffiti.

4. Until the person's eighteenth birthday on receiving the record of the person's conviction of criminal damage pursuant to section 13-1602, subsection A, paragraph 5 or a violation of a city or town ordinance that prohibits the type of criminal action prescribed in section 13-1602, subsection A, paragraph 5.

5. Until the person's eighteenth birthday on receiving the record of the person's conviction for a violation of any statute or ordinance involving the purchase or possession of materials used for graffiti.

6. Until the person's eighteenth birthday on receiving the record of the person's conviction for a violation of any provision of title 13, chapter 34.

7. Until the person's eighteenth birthday or for a period of two years on receiving the record of the person's conviction for a second or subsequent violation of section 4-244, paragraph 9, if ordered by the court.

8. Until the person's eighteenth birthday on receiving the record of the person's conviction of theft of a motor vehicle pursuant to section 13-1802, unlawful use of means of transportation pursuant to section 13-1803 or theft of means of transportation pursuant to section 13-1814.

B. If ordered by the court, the department shall restrict the person's privilege to drive between the person's home, school and place of employment during specified periods of time according to the person's school and employment schedule.

C. If a person commits an offense prescribed in subsection A, paragraph 1 of this section and the person's privilege to drive is restricted as prescribed in subsection B of this section, the department shall issue a special ignition interlock restricted driver license to the person pursuant to section 28-1401.

D. If ordered by the court pursuant to section 4-246, subsection D, the department shall suspend the driving privilege of a person under eighteen years of age for a period of up to one hundred eighty days on receiving the record of the person's first conviction for a violation of section 4-244, paragraph 9.

E. For the purposes of this section, "conviction" means a final conviction or judgment, including an order of the juvenile court finding that a juvenile violated any provision of this title or committed a delinquent act that if committed by an adult would constitute a criminal offense.

§ 28-3321 Moving violations by persons under eighteen years of age; traffic survival school; suspension

A person who holds a driver permit or license and who is found responsible for a moving civil traffic violation pursuant to this title or who is convicted of a moving criminal traffic offense pursuant to this title, excluding violations of sections 28-693, 28-695, 28-708, 28-1381, 28-1382, 28-1383 and 28-3174, and who commits the moving civil traffic violation or moving criminal traffic offense while the person is under eighteen years of age is subject to the following:

1. On receipt of the first record of judgment or conviction, the department shall order the person to attend and successfully complete traffic survival school educational sessions.

2. On receipt of the second record of judgment or conviction, the department shall suspend the person's driving privilege for three months.

3. On receipt of the third record of judgment or conviction, the department shall suspend the person's driving privilege for six months.

§ 28-3322 Suspension of license for persons eighteen, nineteen and twenty years of age; definition

A. In addition to the grounds for mandatory suspension or revocation provided for in chapters 3, 4 and 5 of this title, the department shall immediately suspend the driver license or privilege to drive or refuse to issue a driver license or privilege to drive of a person who commits a violation of section 4-244, paragraph 34 while the person is eighteen, nineteen or twenty years of age on receipt of the record of the person's conviction for a violation of section 4-244, paragraph 34 for a period of two years.

B. If ordered by the court, the department shall restrict the person's privilege to drive between the person's home, school and place of employment during specified periods of time according to the person's school and employment schedule.

C. If a person's privilege to drive is restricted as prescribed in subsection B of this section, the department shall issue a special ignition interlock restricted driver license to the person pursuant to section 28-1401.

D. For the purposes of this section, "conviction" means a final conviction or judgment, including an order of the juvenile court finding that a juvenile violated any provision of this title or committed a delinquent act that if committed by an adult would constitute a criminal offense.

§ 28-3323 Notification to the superintendent of public instruction

The director shall notify the superintendent of public instruction if the department suspends or revokes the driver license of a person who gives driver education lessons to high school students.

Article 7 Defensive Driving School

§ 28-3391 Definition of court

In this article, unless the context otherwise requires, "court" means a juvenile division of the superior court, a justice of the peace court or a municipal court.

§ 28-3392 Defensive driving school; eligibility

A. A court:

1. Shall allow an individual who is issued a citation for a civil traffic moving violation pursuant to chapter 3, articles 2, 3, 4 and 6 through 15 of this title or a local civil traffic ordinance relating to the same subject matter to attend a defensive driving school for the purposes provided in this article.

2. Except as prescribed in subsection C of this section:

(a) May allow an individual who is issued a citation for a violation of section 28-701.02 to attend a defensive driving school.

(b) Shall allow an individual who holds a commercial driver license and who is issued a citation for a civil traffic moving violation pursuant to chapter 3, article 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14 or 15 of this title or a local civil traffic ordinance relating to the same subject matter to attend a defensive driving school for the purposes provided in this article only if the individual was driving a vehicle requiring a class D license or a class M license and the vehicle was not being used for commercial purposes.

B. A person who attends a defensive driving school pursuant to this article is not eligible to attend a defensive driving school again within twelve months from the day of the last violation for which the person was authorized by this article to attend a defensive driving school.

C. Notwithstanding subsection A of this section:

1. An individual who commits a civil or criminal traffic violation resulting in death or serious physical injury is not eligible to attend a defensive driving school, except that the court may order the individual to attend a defensive driving school in addition to another sentence imposed by the court on an adjudication or admission of the traffic violation.

2. If a driver of a commercial motor vehicle that requires a commercial driver license is found guilty or responsible for a moving violation, the court may require the violator to attend defensive driving school as an element of sentence, but may not dismiss the conviction or finding of responsibility and shall report the conviction or finding of responsibility to the department as prescribed in section 28-1559. A driver of a commercial motor vehicle that requires a commercial driver license is not eligible for the defensive driving diversion program.

§ 28-3393 Defensive driving school attendance; discrimination prohibited; notice requirements

A. Except as provided in subsection B, an eligible individual who elects to attend a defensive driving school shall attend one of the following within the time allowed by the court:

1. A defensive driving school that is certified by the supreme court and complies with the court automation and reporting requirements pursuant to subsections B and C.

2. On application to the court and on the showing of reasonable justification by the individual, another supreme court certified defensive driving school. Reasonable justification includes the fact that the individual resides in another area and that attendance at any of the defensive driving schools that comply with the court automation and reporting requirements creates a hardship on the individual.

B. On the expiration of all contracts that are in existence on July 1, 2007 between the court and a defensive driving school provider, an eligible individual who elects to attend a defensive driving school may attend any supreme court certified defensive driving school that complies with the court automation and reporting requirements. For the purposes of this subsection, the renewal of any contract between a court and a defensive driving school after July 1, 2007, shall be considered a new contract.

C. A court may adopt requirements for a school to electronically report school completions and to transfer funds, subject to the approval of the defensive driving board.

D. A law enforcement officer or a jurisdiction issuing a civil traffic citation to an individual shall provide notice to the individual that if eligible, the individual may attend any supreme court certified defensive driving school subject to subsection B.

E. A court shall not promote or favor any supreme court certified defensive driving school over another, except that the notice provided pursuant to subsection D may exclude a school that does not comply with the court's automation and reporting requirements pursuant to subsections B and C.

§ 28-3394 Successful course completion

A. Except as provided in section 28-3394.01, if an eligible individual successfully completes the course at a defensive driving school:

1. The court shall dismiss the civil or criminal traffic citation for which the individual attended the school.

2. The department shall not include a record of the civil or criminal traffic citation for which the individual attended the school on the individual's driving record.

B. The dismissal of a civil or criminal traffic citation pursuant to this section does not preclude the introduction of evidence pertaining to the issuance of the citation in a civil or criminal proceeding.

§ 28-3394.01 Commercial driver license holders

A. The court shall forward to the department an abstract of a record of judgment against a person who holds a commercial driver license and who is eligible to attend defensive driving school pursuant to section 28-3392. The department shall include a record of the civil traffic violation on the person's driving record. The department or an agency of this state may not consider the violation for the purpose of determining whether the person's driver license should be suspended or revoked.

B. If the person described in subsection A of this section successfully completes the course at a defensive driving school:

1. The court may not impose a civil penalty for the traffic citation for which the individual attended the school.

2. For private passenger motor vehicle liability insurance, an insurer shall consider the traffic citation equivalent to a dismissed traffic citation pursuant to section 28-3394 except that an insurer of a commercial motor vehicle may consider the citation for underwriting and rating purposes for any policy covering the vehicle.

§ 28-3395 Supreme court authority and duties; rules; record

A. The supreme court may contract with a public or private agency that does not provide defensive driving schools in this state pursuant to this article to provide assistance in carrying out the duties of this article.

B. The supreme court shall:

1. Supervise the use of defensive driving schools by the courts in this state.

2. Make public the amount of the court diversion fee assessed by each court in this state pursuant to this article and the total cost to attend a defensive driving school in each court.

3. Establish an automated statewide database for keeping a record of persons who attend a defensive driving school. This database shall not include a record of persons who attend a defensive driving school for a driver education program pursuant to section 28-3174.

4. Adopt rules that establish criteria for the certification of qualified defensive driving schools and instructors used by the courts.

5. Establish procedures for courts and schools to remit reports that are required by the supreme court.

6. Certify and monitor defensive driving schools and instructors that serve as a court authorized diversion program.

7. Require that a defensive driving school class not exceed a total of four and one-half hours, including any testing, reviewing and grading related to the defensive driving school class.

8. Require each defensive driving school to submit to the supreme court the school's future schedule of classroom defensive driving courses, including the dates, start and end times, instructors' names and location for each course. Each scheduled defensive driving school class shall admit only students who are registered with that school. A defensive driving school certified instructor may not teach or facilitate a defensive driving school class for more than one certified defensive driving school during the same class instruction time period. A course's date, time and location may not be changed or canceled except for extraordinary circumstances.

C. The information contained in the database required by this section is not a public record.

§ 28-3396 Court diversion fee

A. The presiding judge of each court shall:

1. Set the amount of the court diversion fee that an individual, including an individual who holds a commercial driver license, who attends a defensive driving school may be assessed.

2. Charge an individual a forty-five dollar surcharge if the individual attends a defensive driving school.

3. Immediately inform the supreme court in writing of the amount of the court diversion fee that is established for the court and the total cost to attend a defensive driving school.

4. Immediately inform the supreme court in writing of any changes in the total cost to attend a defensive driving school.

B. Payment of the court diversion fee and surcharge is in lieu of payment of a civil penalty or criminal fine and any surcharge that are imposed for a traffic violation.

C. The driving school shall collect the court diversion fee and surcharge before or at the time an individual attends the school. On receipt of the diversion fee, the defensive driving school shall transmit the fee promptly to the appropriate court pursuant to procedures prescribed by the supreme court. On receipt of the surcharge, the defensive driving school shall transmit the surcharge promptly to the state treasurer for deposit, pursuant to sections 35-146 and 35-147, as follows:

1. The first ten million four hundred thousand dollars in revenue annually in the department of public safety forensics fund established by section 41-1730.

2. All remaining money in the state general fund.

§ 28-3397 Additional fees; disposition

A. In addition to the court diversion fee and the fee for the cost to attend a defensive driving school, a person who attends a defensive driving school pursuant to this article or by a court order shall pay a fee of not more than fifteen dollars that is established by the supreme court.

B. Before or at the time an individual attends a defensive driving school, the school shall collect the defensive driving school fund fee established pursuant to this section and the fee, if any, charged by the defensive driving school for the course.

C. The defensive driving school shall transmit the fee established by the supreme court pursuant to this section to the supreme court. The supreme court shall deposit the fee in the defensive driving school fund established by section 28-3398 pursuant to procedures established by the supreme court.

§ 28-3398 Defensive driving school fund

A. A defensive driving school fund is established consisting of monies collected for the fee established by the supreme court pursuant to section 28-3397.

B. The monies in the fund shall be used, subject to legislative appropriation, to supervise the use of defensive driving schools by the courts in this state and to expedite the processing of all offenses prescribed in chapters 3 and 4 of this title.

C. The fund established in this section is not subject to reversion. On notice from the supreme court, 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.

§ 28-3399 Audit

The supreme court may require a defensive driving school to be audited for compliance with the requirements of this article.

Article 7.1 Traffic Survival Schools

§ 28-3411 Enforcement; contract with private entity

A. Subject to title 41, chapter 6, the director shall adopt rules for the administration and enforcement of this article. The director or the director's authorized representative shall inspect the school facilities and equipment used by applicants and licensees under this article.

B. The director shall administer and enforce this article.

C. The director may contract with a private entity to conduct inspections pursuant to this section and to administer any rules adopted pursuant to this section that relate to the licensure and administration of traffic survival schools pursuant to this article. The term of any contract entered into pursuant to this subsection shall not exceed five years with a right to renew for an additional five years. The private entity that contracts with the director pursuant to this subsection:

1. Shall not provide traffic survival school courses.

2. May charge a fee to each person who enrolls in a traffic survival school.

§ 28-3412 Fee; enrollment limitation

A. Governmental agencies, corporations or individuals that conduct traffic survival school educational sessions approved by the department may collect a fee that is reasonable and commensurate for the educational sessions.

B. Except as provided in section 28-3413, subsection B, paragraph 2, subdivision (b) and notwithstanding any other law, the only limitation on enrollment in a traffic survival school educational session shall be the lawful fire safety capacity of the facility in which the class meets.

§ 28-3413 License for schools; requirements; fingerprint clearance card

A. A person may not act as a traffic survival school unless the person 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:

1. Requirements concerning location, equipment, courses of instruction, instructors, previous records of the school and instructors, insurance in an amount and with provisions that the director deems necessary to protect adequately the interests of the public and other matters prescribed by the director.

2. A requirement that traffic survival school courses of instruction must:

(a) Consist of at least eight hours of instruction and include information relating to aggressive driving as provided by section 28-695.

(b) Be offered and completed in person and may not be offered or completed online unless the governor declares a state of emergency. The department may grant a person who enrolls in a traffic survival school a onetime waiver of the in-person requirement if the person demonstrates to the department that completing the course in person would impose a substantial burden on the person.

C. Each applicant who owns twenty percent or more of an entity and each partner or stockholder who owns twenty percent or more of an entity and who seeks licensure pursuant to this article shall provide the department or a contracted private entity of the department pursuant to section 28-3411 with a valid fingerprint clearance card issued pursuant to section 41-1758.03.

§ 28-3414 Refusal to issue or renew license of school

A. The director may refuse to issue or renew the license for a school if the director determines that the licensee or applicant has not complied with or has knowingly violated any provision of this article or any rule adopted pursuant to this article or has been convicted of a violation of title 13 or this title.

B. An applicant or licensee who is aggrieved by the director's decision may make a written request to the department for a hearing within thirty days after service of notice of the refusal. If the applicant or licensee does not request a hearing within thirty days, the decision is final. If the applicant or licensee requests a hearing, the director shall give written notice to the applicant or licensee to appear at the hearing and show cause why the refusal to issue or renew the license should not be upheld. After consideration of the evidence presented at the hearing, the director shall serve notice in writing to the applicant or licensee of the director's findings and order.

§ 28-3415 License expiration; fees; disposition

A. Except as provided in section 32-4301, all licenses expire on the last day of the calendar year and may be renewed on application to the director as prescribed by rule.

B. Each application for an original or renewal license to operate a traffic survival school shall be accompanied by a fee of two hundred dollars.

C. An application for a branch license shall be accompanied by a fee of fifty dollars.

D. A license fee may not be refunded if a license is suspended or revoked.

E. All monies received by the director from the fees provided in this article shall be deposited, pursuant to sections 35-146 and 35-147, in the state highway fund established by section 28-6991.

§ 28-3416 Civil penalty; cancellation, suspension or revocation of license; appeal

A. If the director finds that the licensee has not complied with or has knowingly violated this article or any rule adopted pursuant to this article or has been convicted of a violation of title 13 or this title, the director may do either of the following:

1. Impose a civil penalty on the licensee of at least three hundred dollars but not more than three thousand dollars for each violation.

2. After conducting a hearing, cancel, suspend or revoke the license of the school.

B. Decisions of the director are subject to judicial review pursuant to title 12, chapter 7, article 6.

C. The director shall deposit, pursuant to sections 35-146 and 35-147, all civil penalties collected pursuant to this section in the state highway fund established by section 28-6991.

§ 28-3417 Cease and desist orders

A. If the director has reasonable cause to believe that a traffic survival school licensed pursuant to this article has violated or is violating a law of this state or rule adopted by the director, the director may immediately issue and serve on the licensee, by personal delivery or first class mail at the business address of record, a cease and desist order requiring the licensee to immediately cease and desist from further engaging in the business or the prohibited activity, or both.

B. A licensee who receives a cease and desist order may submit a written request for a hearing to the director. The licensee shall submit the request for a hearing within thirty days after the licensee receives the cease and desist order. On failure of a licensee to comply with the order or after a requested hearing, the director may suspend or cancel the licensee's license pursuant to section 28-3416.

§ 28-3418 Violation; classification

A person who violates any provision of this article is guilty of a class 3 misdemeanor.

Article 8 License Violations

§ 28-3471 Violation; civil penalty

A person who violates a provision of this chapter is subject to a civil penalty unless a different classification is provided by law.

§ 28-3472 Renting or leasing motor vehicle; restrictions

A. A person shall not rent or lease a motor vehicle to another person unless either:

1. The other person is licensed to operate the vehicle under this chapter.

2. If the other person is a nonresident, the other person is licensed under the laws of the state or country of the other person's residence or the state or country of the nonresident does not require a driver to be licensed.

B. A person shall not rent or lease a motor vehicle to another person until the person inspects the driver license of the other person and compares and verifies the signature on the license with the signature of the other person that is written in the person's presence.

C. A person who rents or leases a motor vehicle to another person shall keep a record of the registration number of the rented or leased motor vehicle, the name and address of the other person, the number of the license of the other person and the date and place the license was issued. The person who rents or leases a motor vehicle shall allow a police officer or employee of the department to inspect the record.

D. A person shall not rent or lease a motorcycle or motor driven cycle to a person unless the operator is equipped with protective headgear and face gear as required in section 28-964.

§ 28-3473 Driving on a suspended, revoked or canceled license; violation; classification

A. Except as provided in section 28-3482, a person may not operate a motor vehicle on a public highway if the person's privilege to drive a motor vehicle is suspended, revoked, canceled or refused or if the person is disqualified from driving.

B. A person who violates this section is guilty of a class 1 misdemeanor.

§ 28-3474 Permitting unauthorized minor to drive; classification

A person who knowingly causes or permits the person's child or ward or any person under eighteen years of age to drive a motor vehicle on a highway if the person is not authorized under this chapter or in violation of this chapter is guilty of a class 2 misdemeanor.

§ 28-3475 Permitting unauthorized person to drive

A person shall not authorize or knowingly permit a motor vehicle owned by that person or under that person's control to be driven on a highway by any other person who is not authorized under this chapter or in violation of this chapter.

§ 28-3476 Falsification of license; classification

A. A person who intentionally alters, forges or counterfeits a driver license or nonoperating identification license issued by this state, any other state, Canada or Mexico is guilty of falsification of a license.

B. A person counterfeits a driver license or nonoperating identification license if a person produces, prints, issues or sells a card or document that meets all of the following conditions:

1. Is not a driver license or nonoperating identification license that is issued by this state, any other state, Canada or Mexico.

2. Is similar to or in the likeness of a driver license or nonoperating identification license that is issued by this state, any other state, Canada or Mexico.

3. Does not have printed on the front in at least twelve point bold type "Not an official license".

C. Falsification of a license is a class 1 misdemeanor, except that falsification of a license in which serious physical injury as defined in section 13-105 occurred as a result of the act from which the violation occurred is a class 6 felony.

§ 28-3478 Unlawful use of license; classification

It is a class 2 misdemeanor for a person:

1. To knowingly display, cause or permit to be displayed or have in the person's possession a canceled, revoked, suspended, fictitious or fraudulently altered driver license.

2. To lend the person's driver license to another person or to knowingly permit the use of the person's driver license by another person.

3. To knowingly display or represent as the person's own driver license a driver license not issued to the person.

4. In a driver license application to:

(a) Knowingly use a false or fictitious name.

(b) Knowingly make a false statement.

(c) Knowingly conceal a material fact.

(d) Otherwise commit fraud.

5. To permit an unlawful use of the person's driver license.

6. To knowingly use a false or fictitious name in an application for a nonoperating identification license or to knowingly falsify other information required by section 28-3165, make a false statement, conceal a material fact or otherwise commit fraud in an application for a nonoperating identification license.

§ 28-3479 Perjury

A person who makes a false affidavit or who knowingly swears or affirms falsely to a matter or thing required by this chapter to be sworn to or affirmed is guilty of perjury and is subject to punishment as provided by law.

§ 28-3480 Operation in violation of restriction; classification; civil traffic violation

A. Except as provided in subsections B and C of this section, a person who operates a motor vehicle in violation of a driver license restriction is guilty of a class 2 misdemeanor.

B. If the restriction that is violated is the requirement to wear corrective lenses while operating a motor vehicle, the person is responsible for a civil traffic violation.

C. If the restriction that is violated is imposed pursuant to section 28-3308, the person is responsible for a civil traffic violation.

D. If the person is cited for a violation of subsection C of this section and presents evidence to the court that the person's unrestricted driving privilege has been reinstated, the court may dismiss the citation.

§ 28-3481 Commercial motor vehicle drivers; violations; classification

A. A person who drives a commercial motor vehicle on a highway in this state without a valid appropriate class of commercial driver license or commercial driver license endorsement is guilty of a class 3 misdemeanor.

B. A driver of a commercial motor vehicle who provides false or fraudulent information to an employer as required by section 28-3227 is guilty of a class 3 misdemeanor.

C. A driver of a commercial motor vehicle who fails to report the information required in section 28-3227 is guilty of a class 3 misdemeanor.

§ 28-3482 Driving on a license suspended for failure to appear; restricted privilege to drive; civil penalty; dismissal

A. A person may not drive a motor vehicle on a public highway if the person's privilege to drive a motor vehicle is suspended pursuant to section 28-3308.

B. A person who violates this section is responsible for a civil traffic violation and is not subject to vehicle removal or impoundment pursuant to section 28-3511.

C. If a person is cited for a violation of this section and the person presents evidence to the court that the person's unrestricted privilege to drive has been reinstated, the court may dismiss the charge of driving under a suspended license.

§ 28-3483 Driving on a suspended license conviction; restricted driving privilege

A person who is convicted of driving on a suspended class D or M license before January 1, 2011 may apply for a restricted privilege to drive on a form prescribed by the director. The department shall issue a restricted privilege to drive that is valid for one year and that limits the person's driving privilege as described in section 28-144 if the person does all of the following:

1. Completes all requirements of the sentence imposed by the court.

2. Satisfies all suspension periods imposed on the person's driving privilege as a result of a conviction of or a finding of responsibility for a violation of this title.

3. Pays the applicable reinstatement fee as prescribed by section 28-3002.

Article 9 Vehicle Immobilization, Impoundment and Storage

§ 28-3511 Removal and immobilization or impoundment of vehicle; Arizona crime information center database

A. A peace officer shall cause the removal and either immobilization or impoundment of a vehicle if the peace officer determines that:

1. A person is driving the vehicle while any of the following applies:

(a) Except as otherwise provided in this subdivision, the person's driving privilege is revoked for any reason. A peace officer shall not cause the removal and either immobilization or impoundment of a vehicle pursuant to this subdivision if the person's privilege to drive is valid in this state.

(b) The person has not ever been issued a valid driver license or permit by this state and the person does not produce evidence of ever having a valid driver license or permit issued by another jurisdiction. This subdivision does not apply to the operation of an implement of husbandry.

(c) The person is subject to an ignition interlock device requirement pursuant to chapter 4 of this title and the person is operating a vehicle without a functioning certified ignition interlock device. This subdivision does not apply to the operation of a vehicle due to a substantial emergency as defined in section 28-1464.

(d) In furtherance of the illegal presence of an alien in the United States and in violation of a criminal offense, the person is transporting or moving or attempting to transport or move an alien in this state in a vehicle if the person knows or recklessly disregards the fact that the alien has come to, has entered or remains in the United States in violation of law.

(e) The person is concealing, harboring or shielding or attempting to conceal, harbor or shield from detection an alien in this state in a vehicle if the person knows or recklessly disregards the fact that the alien has come to, entered or remains in the United States in violation of law.

2. A person is driving a vehicle in violation of section 28-693 and the peace officer reasonably believes that allowing the person to continue driving the vehicle would expose other persons to the risk of serious bodily injury or death.

3. A person is driving a vehicle in violation of section 28-708 and the peace officer reasonably believes that allowing the person to continue driving the vehicle would expose other persons to the risk of serious bodily injury or death.

4. A person is obstructing a highway or other public thoroughfare in violation of section 13-2906 and the peace officer reasonably believes that allowing the person to continue driving the vehicle would expose other persons to the risk of serious bodily injury or death.

5. The vehicle is displayed for sale or for transfer of ownership with a vehicle identification number that has been destroyed, removed, covered, altered or defaced.

B. A peace officer shall cause the removal and impoundment of a vehicle if the peace officer determines that a person is driving the vehicle and if all of the following apply:

1. The person's driving privilege is canceled or revoked for any reason or the person has not ever been issued a driver license or permit by this state and the person does not produce evidence of ever having a driver license or permit issued by another jurisdiction.

2. The person is not in compliance with the financial responsibility requirements of chapter 9, article 4 of this title.

3. The person is driving a vehicle that is involved in an accident that results in either property damage or injury to or death of another person.

C. Except as provided in subsection D of this section, while a peace officer has control of the vehicle the peace officer shall cause the removal and either immobilization or impoundment of the vehicle if the peace officer has probable cause to arrest the driver of the vehicle for a violation of section 4-244, paragraph 34 or section 28-1382 or 28-1383.

D. A peace officer shall not cause the removal and either the immobilization or impoundment of a vehicle pursuant to subsection C of this section if all of the following apply:

1. The peace officer determines that the vehicle is currently registered and that the driver or the vehicle is in compliance with the financial responsibility requirements of chapter 9, article 4 of this title.

2. Another person is with the driver at the time of the arrest.

3. The peace officer has reasonable grounds to believe that the other person who is with the driver at the time of the arrest meets all of the following:

(a) Has a valid driver license.

(b) Is not impaired by intoxicating liquor, any drug, a vapor releasing substance containing a toxic substance or any combination of liquor, drugs or vapor releasing substances.

(c) Does not have any spirituous liquor in the person's body if the person is under twenty-one years of age.

4. The other person who is with the driver at the time of the arrest notifies the peace officer that the person will drive the vehicle from the place of arrest to the driver's home or other place of safety.

5. The other person drives the vehicle as prescribed by paragraph 4 of this subsection.

E. Except as provided in subsection H of this section and as otherwise provided in this article, a vehicle that is removed and either immobilized or impounded pursuant to subsection A, B or C of this section shall be immobilized or impounded for twenty days. An insurance company does not have a duty to pay any benefits for charges or fees for immobilization or impoundment.

F. The owner of a vehicle that is removed and either immobilized or impounded pursuant to subsection A, B or C of this section, the spouse of the owner and each person who has provided the department with indicia of ownership as prescribed in section 28-3514 or other interest in the vehicle that exists immediately before the immobilization or impoundment shall be provided with an opportunity for an immobilization or poststorage hearing pursuant to section 28-3514.

G. A law enforcement agency that employs the peace officer who removes and either immobilizes or impounds a vehicle pursuant to this section shall enter information about the removal and either immobilization or impoundment of the vehicle in the Arizona crime information center database within three business days after the removal and either immobilization or impoundment.

H. A vehicle that is removed and either immobilized or impounded pursuant to subsection A, paragraph 4 of this section shall be immobilized or impounded for seven days.

§ 28-3512 Release of vehicle; civil penalties; definition

A. An immobilizing or impounding agency shall release a vehicle before the end of the immobilization or impoundment period as follows:

1. To the registered owner, if the vehicle is a stolen vehicle.

2. To the registered owner, if the vehicle is subject to bailment and is driven by an employee of a business establishment, including a parking service or repair garage, who is subject to section 28-3511, subsection A, B or C.

3. To the registered owner, if the owner was operating the vehicle at the time of removal and either immobilization or impoundment and presents proof satisfactory to the immobilizing or impounding agency that the owner's driving privilege has been reinstated.

4. To the registered owner, if all of the following apply:

(a) The owner or the owner's agent was not the person driving the vehicle pursuant to section 28-3511, subsection A.

(b) The owner or the owner's agent is in the business of renting motor vehicles without drivers.

(c) The vehicle is registered pursuant to section 28-2166.

(d) There was a rental agreement in effect at the time of the immobilization or impoundment.

5. Except as provided in paragraph 7 of this subsection, to the spouse of the registered owner or any person who is identified as an owner of the vehicle on the records of the department at the time of removal and either immobilization or impoundment, if the spouse or person was not the driver of the vehicle at the time of removal and either immobilization or impoundment and the spouse or person enters into an agreement with the immobilizing or impounding agency that stipulates that if the spouse or person allows a driver who does not have a valid driving privilege or a driver who commits a violation that causes the spouse's or person's vehicle to be removed and either immobilized or impounded pursuant to this article within one year after any agreement is signed by an immobilizing or impounding agency, the spouse or person will not be eligible to obtain release of the spouse's or person's vehicle before the end of the immobilization or impoundment period.

6. To the motor vehicle dealer, if the vehicle is owned by a motor vehicle dealer who has paid fees pursuant to section 28-4302 and is driven by a customer, potential customer or employee of the motor vehicle dealer and the motor vehicle dealer has provided to the immobilizing or impounding agency indicia of the motor vehicle dealer's ownership of the vehicle, including a certificate of title or a manufacturer-issued certificate or statement of origin.

7. To any person who is identified as an owner of the vehicle on the records of the department at the time of removal and either immobilization or impoundment, if the vehicle is a commercial motor vehicle, a street sweeper or heavy equipment as defined in section 28-854 and the person was not the driver of the vehicle at the time of removal and either immobilization or impoundment.

B. A vehicle shall not be released pursuant to subsection A of this section except pursuant to an immobilization or a poststorage hearing under section 28-3514 or if all of the following are presented to the immobilizing or impounding agency:

1. The owner's or owner's spouse's currently valid driver license issued by this state or the owner's or owner's spouse's state of domicile.

2. Proof of current vehicle registration or a valid salvage or dismantle certificate of title.

3. Proof that the vehicle is in compliance with the financial responsibility requirements of chapter 9, article 4 of this title.

4. If the person is required by the department to install a certified ignition interlock device on the vehicle, proof of installation of a functioning certified ignition interlock device in the vehicle. The impounding agency, storage yard, facility, person or agency having physical possession of the vehicle shall allow access during normal business hours to the impounded vehicle for the purpose of installing a certified ignition interlock device. The impounding agency, storage yard, facility, person or agency having physical possession of the vehicle shall not charge any fee or require compensation for providing access to the vehicle or for the installation of the certified ignition interlock device.

C. The owner or the owner's spouse if the vehicle is released to the owner's spouse is responsible for paying all immobilization, towing and storage charges related to the immobilization or impoundment of the vehicle and any administrative charges established pursuant to section 28-3513, unless the vehicle is stolen and the theft was reported to the appropriate law enforcement agency. If the vehicle is stolen and the theft was reported to the appropriate law enforcement agency, the operator of the vehicle at the time of immobilization or impoundment is responsible for all immobilization, towing, storage and administrative charges.

D. Before the end of the immobilization or impoundment period, the immobilizing or impounding agency shall release a vehicle to a person, other than the owner, identified on the department's record as having an interest in the vehicle immediately before the immobilization or impoundment if all of the following conditions are met:

1. The person is either of the following:

(a) In the business of renting motor vehicles without drivers and the vehicle is registered pursuant to section 28-2166.

(b) A motor vehicle dealer, bank, credit union or acceptance corporation or any other licensed financial institution legally operating in this state or is another person who is not the owner and who holds a security interest in the vehicle immediately before the immobilization or impoundment.

2. The person pays all immobilization, towing and storage charges related to the immobilization or impoundment of the vehicle and any administrative charges established pursuant to section 28-3513 unless the vehicle is stolen and the theft was reported to the appropriate law enforcement agency. If the vehicle is stolen and the theft was reported to the appropriate law enforcement agency, the operator of the vehicle at the time of immobilization or impoundment is responsible for all immobilization, towing, storage and administrative charges.

3. The person presents foreclosure documents or an affidavit of repossession of the vehicle.

4. The person requesting release of the vehicle was not the person driving the vehicle at the time of removal and immobilization or impoundment.

E. Before a person described in subsection D of this section releases the vehicle to the owner who was operating the vehicle at the time of removal and immobilization or impoundment, the person described in subsection D of this section shall require the owner to present and shall retain for a period of at least three years from the date of releasing the vehicle a copy of all of the following:

1. A driver license issued by this state or the owner's or owner's agent's state of domicile.

2. A current vehicle registration or a valid salvage or dismantle certificate of title.

3. Evidence that the vehicle is in compliance with the financial responsibility requirements of chapter 9, article 4 of this title.

F. The person described in subsection D of this section may require the owner to pay charges that the person incurred in connection with obtaining custody of the vehicle, including all immobilization, towing and storage charges that are related to the immobilization or impoundment of the vehicle and any administrative charges that are established pursuant to section 28-3513.

G. A vehicle shall not be released after the end of the immobilization or impoundment period unless the owner or owner's agent presents all of the following to the impounding or immobilizing agency:

1. A valid driver license issued by this state or by the owner's or owner's agent's state of domicile.

2. A current vehicle registration or a valid salvage or dismantle certificate of title.

3. Evidence that the vehicle is in compliance with the financial responsibility requirements of chapter 9, article 4 of this title.

4. If the person is required by the department to install a certified ignition interlock device on the vehicle, proof of installation of a functioning certified ignition interlock device in the vehicle. The impounding agency, storage yard, facility, person or agency having physical possession of the vehicle shall allow access during normal business hours to the impounded vehicle for the purpose of installing a certified ignition interlock device. The impounding agency, storage yard, facility, person or agency having physical possession of the vehicle shall not charge any fee or require compensation for providing access to the vehicle or for the installation of the certified ignition interlock device.

H. The storage charges relating to the impoundment of a vehicle pursuant to this section shall be subject to a contractual agreement between the impounding agency and a towing firm for storage services pursuant to section 41-1830.51 and shall be $25 for each day of storage, including any time the vehicle remains in storage after the end of the impoundment period.

I. The immobilizing or impounding agency shall have no lien or possessory interest in a stolen vehicle if the theft was reported to the appropriate law enforcement agency. The immobilizing or impounding agency shall release the vehicle to the owner or person other than the owner as identified in subsection D of this section even if the operator at the time of immobilization or impoundment has not paid all immobilization, towing, storage and administrative charges.

J. A person who enters into an agreement pursuant to subsection A, paragraph 5 of this section and who allows another person to operate the vehicle in violation of the agreement is responsible for a civil traffic violation and shall pay a civil penalty of at least $250.

K. A person described in subsection D, paragraph 1 of this section who violates subsection E of this section is responsible for a civil traffic violation and shall pay a civil penalty of at least $250.

L. For the purposes of this section, "certified ignition interlock device" has the same meaning prescribed in section 28-1301.

§ 28-3513 Administrative charges

A. The immobilizing or impounding agency shall establish procedures for immobilization hearings or poststorage hearings, for the release of properly immobilized or impounded vehicles and for imposition of a charge for administrative costs relating to the removal, immobilization, impoundment, storage or release of a vehicle. The immobilizing or impounding agency may waive the administrative charges.

B. The administrative charges established pursuant to this section shall be one hundred fifty dollars and shall not be charged to a towing company that performs removal, immobilization, impoundment, storage or release of the vehicle.

C. The immobilizing or impounding agency shall collect any administrative charges at the time of the release of the vehicle unless the vehicle is stolen and the theft was reported to the appropriate law enforcement agency. If the vehicle is stolen and the theft was reported to the appropriate law enforcement agency, the operator of the vehicle at the time of immobilization or impoundment is responsible for all towing, immobilization, storage and administrative charges.

D. The administrative charges established pursuant to this section are in addition to any other immobilization, impoundment or storage charges.

E. A justice court providing an immobilization or poststorage hearing may collect a fee equal to the fee established pursuant to section 22-281 for a small claims answer.

F. If the immobilizing or impounding agency is:

1. A municipality, the administrative charges collected pursuant to this section shall be transmitted to the city treasurer for deposit in a special fund established by the municipality for the purpose of implementing section 28-872 and this article.

2. A county, the administrative charges collected pursuant to this section shall be transmitted to the county treasurer for deposit in a special fund established by the county for the purpose of implementing section 28-872 and this article.

3. The department of public safety, the administrative charges collected pursuant to this section shall be deposited, pursuant to sections 35-146 and 35-147, in the Arizona highway patrol fund established by section 41-1752.

4. The capitol police, the administrative charges collected pursuant to this section shall be deposited, pursuant to sections 35-146 and 35-147, in the capitol police administrative towing fund established by section 41-1725.

§ 28-3514 Hearings; notice of immobilization or storage; definition

A. If a peace officer removes and either immobilizes or impounds a vehicle pursuant to section 28-3511, the immobilizing or impounding agency may provide the owner, the spouse of the owner and any other person providing indicia of ownership or other interest in the vehicle immediately before the immobilization or impoundment with the opportunity for an immobilization or poststorage hearing to determine the validity of the immobilization or storage or consider any mitigating circumstances relating to the immobilization or storage or release of the vehicle before the end of the immobilization or impoundment period. If the immobilizing or impounding agency provides the opportunity for an immobilization or poststorage hearing, the immobilizing or impounding agency shall conduct the hearing in accordance with any of the following:

1. In the immobilizing or impounding agency's jurisdiction.

2. Telephonically.

3. Pursuant to procedures prescribed by the immobilizing or impounding agency to transfer the authority to conduct the immobilization or poststorage hearing to a law enforcement agency in the jurisdiction in which the owner, the spouse of the owner, the owner's agent or any person identified in the department's record as having an interest in the vehicle immediately before the immobilization or impoundment resides.

B. If the immobilizing or impounding agency does not provide an opportunity for an immobilization or poststorage hearing, a justice court shall conduct the immobilization or poststorage hearing. If an immobilization or poststorage hearing is conducted by a justice court, the immobilizing or impounding agency shall appear and show evidence. Immobilization or poststorage hearings conducted by a justice court shall be considered as civil filings for the purposes of judicial productivity credits.

C. Within three business days after immobilization or impoundment, excluding weekends and holidays, the immobilizing or impounding agency shall send a notice of storage by first class mail to each person, other than the owner, identified on the department's record as having an interest in the vehicle or who has provided the department with indicia of ownership or other interest in the vehicle that exists immediately before the immobilization or impoundment. Service of notice of immobilization or storage is complete on mailing. If within three business days after immobilization or impoundment, excluding weekends and holidays, the immobilizing or impounding agency fails to notify a person, other than the owner, identified on the department's record as having an interest in the vehicle immediately before the immobilization or impoundment, the immobilizing agency or the person in possession of the vehicle shall not charge any administrative fees or more than fifteen days' immobilization or impoundment when the person redeems the impounded vehicle or has the immobilization device removed from the vehicle.

D. Within three business days after immobilization or impoundment, excluding weekends and holidays, the immobilizing or impounding agency shall mail or personally deliver notice of immobilization or storage to the owner of the vehicle.

E. The notice of immobilization or storage shall include all of the following information:

1. A statement that the vehicle was immobilized or impounded.

2. The name, address and telephone number of the immobilizing or impounding agency providing the notice.

3. The name, address and telephone number of the immobilizing or impounding agency or justice court that will provide the immobilization or poststorage hearing.

4. The location of the place of storage and a description of the vehicle, including, if available, the manufacturer, model, license plate number and mileage of the vehicle.

5. A statement that in order to receive an immobilization or poststorage hearing the owner, the spouse of the owner, the owner's agent or the person identified in the department's record as having an interest in the vehicle immediately before the immobilization or impoundment, within ten days after the date on the notice, shall request an immobilization or poststorage hearing by contacting the immobilizing or impounding agency in person or in writing or by filing a request with the justice court if the impounding agency does not provide for a hearing and paying a fee equal to the fee established pursuant to section 22-281 for a small claims answer.

6. A statement that if the immobilizing or impounding agency does not provide the opportunity for an immobilization or poststorage hearing, the owner, the spouse of the owner, the owner's agent or any person identified in the department's record as having an interest in the vehicle or a person who has provided the department with indicia of ownership or other interest in the vehicle that exists immediately before the immobilization or impoundment may request that the immobilization or poststorage hearing be conducted by a justice court in the immobilizing or impounding agency's jurisdiction or the jurisdiction in which the owner, the spouse of the owner, the owner's agent or the person identified in the department's record as having an interest in the vehicle immediately before the immobilization or impoundment resides.

F. The immobilization or poststorage hearing shall be conducted by the immobilizing or impounding agency or justice court within five business days, excluding weekends and holidays, after receipt of the request.

G. Failure of the owner, the spouse of the owner or other person or the other person's agent to request an immobilization or poststorage hearing within ten days after the date on the notice prescribed in subsection E of this section or to attend a scheduled hearing satisfies the immobilization or poststorage hearing requirement.

H. The immobilizing or impounding agency employing the person who directed the immobilization or storage is responsible for the costs incurred for immobilization, towing and storage if it is determined in the immobilization or poststorage hearing that reasonable grounds for the immobilization or impoundment and storage are not established.

I. In compliance with the requirements of this section, the vehicle owner, the vehicle owner's spouse or another person who has an interest in the vehicle or who has provided the department with indicia of ownership or other interest in the vehicle that exists immediately before the immobilization or impoundment shall have an opportunity for a single poststorage hearing for the release of the vehicle by either the immobilizing or impounding agency or a justice court but not both.

J. For the purposes of this section, "indicia of ownership" includes a certificate of title, a manufacturer-issued certificate or a statement of origin or other similar document.

§ 28-3515 Unclaimed vehicles

If a claim has not been made for the return or possession of the vehicle by a person legally entitled to the vehicle within the immobilization or impoundment period pursuant to this article, the person who has possession of the vehicle shall submit an abandoned vehicle report as provided in section 28-4838. The immobilizing or impounding agency shall require the person who takes possession of a vehicle pursuant to this section to obtain a release for the vehicle from the immobilizing or impounding agency.

Chapter 9 Vehicle Insurance and Financial Responsibility

Article 1 General Provisions

§ 28-4001 Definitions

In this chapter, unless the context otherwise requires:

1. "Judgment" means a judgment that has become final by expiration without appeal of the time within which an appeal might have been perfected or by final affirmation on appeal and that is rendered by a court of competent jurisdiction of any state or of the United States on a cause of action either:

(a) Arising out of the ownership, maintenance or use of a motor vehicle for damages, including damages for care and loss of services, because of either bodily injury to or death of a person or injury to or destruction of property, including the loss of use of the property.

(b) On an agreement of settlement for damages described in subdivision (a) of this paragraph.

2. "License" means a license, temporary instruction permit or temporary license issued under the laws of this state pertaining to the licensing of persons to operate motor vehicles.

3. "Motor vehicle" means a self-propelled vehicle that is registered or required to be registered under the laws of this state.

4. "Motor vehicle liability policy" means an owner's or an operator's policy of liability insurance that is both:

(a) Certified as provided in section 28-4077 or 28-4078 as proof of financial responsibility.

(b) Issued by an insurance carrier duly authorized to transact business in this state, to or for the benefit of the person named as the insured, except as otherwise provided in section 28-4078.

5. "Nonresident operating privilege" means the privilege conferred on a nonresident by the laws of this state pertaining to the nonresident's operation of a motor vehicle or the use of a motor vehicle owned by the nonresident in this state.

6. "Operator" means a person who is in actual physical control of a motor vehicle, whether or not the person has a license.

7. "Proof of financial responsibility" means proof of ability to respond in damages for liability on account of accidents occurring after the effective date of the proof and arising out of the ownership, maintenance or use of a motor vehicle, in the amounts required by section 28-4009 or 28-4033.

8. "Registration" means the registration certificate or certificates and license plates issued under the laws of this state pertaining to the registration of motor vehicles.

9. "State" means a state, territory or possession of the United States, the District of Columbia or a province of the Dominion of Canada.

§ 28-4002 Director; duties

The director shall:

1. Administer and enforce this chapter.

2. Print for distribution to the public rules adopted to administer this chapter and furnish the rules to a person on application and payment of the cost as prescribed by the director.

§ 28-4003 Exceptions

This chapter does not apply to a motor vehicle that is either:

1. Owned by the United States, this state or a political subdivision of this state.

2. Except for section 28-4085, subject to the requirements of a provision of law requiring insurance or other security on certain types of vehicles.

§ 28-4004 Transfer of registration

This chapter does not:

1. Prevent the owner of a motor vehicle whose registration has been suspended under this chapter from effecting a bona fide sale of the motor vehicle to another person whose rights or privileges are not suspended under this chapter.

2. Prevent the transferee from registering the motor vehicle.

3. Affect the rights of a conditional vendor, chattel mortgagee or lessor of a motor vehicle registered in the name of another as owner who becomes subject to this chapter.

§ 28-4005 Past application

This chapter does not apply to any accident or judgment arising from an accident or to a violation of the motor vehicle laws of this state occurring before January 1, 1952.

§ 28-4006 Legal processes

This chapter does not prevent the plaintiff in an action at law from relying for relief on the other processes provided by law.

§ 28-4007 Self-insurers

A. Except as provided in subsection E of this section, a person in whose name more than ten motor vehicles are registered or who is required to comply with the financial responsibility requirements prescribed in article 2 of this chapter may qualify as a self-insurer or partial self-insurer by obtaining a certificate of self-insurance or partial self-insurance issued by the director as provided in this section.

B. After determining that the person is financially able and will continue to be able to pay judgments obtained against the person, the director may issue a certificate of self-insurance or partial self-insurance.

C. On not less than five days' notice and after a hearing, the director may cancel a certificate of self-insurance or a certificate of partial self-insurance on reasonable grounds. For the purposes of this subsection, "reasonable grounds" includes any of the following circumstances:

1. Failure to pay a judgment within thirty days after the judgment becomes final.

2. Determination by the director that the person has not complied with the financial responsibility requirements of this chapter.

3. Determination by the director that the person knowingly submitted false information that is required by this chapter to this state, a political subdivision of this state, a court or a law enforcement agency.

4. Determination by the director that the person knowingly failed to respond within thirty days to a claim for damages for liability arising out of the ownership, maintenance or use of a motor vehicle.

5. Determination by the director that the person does not meet the bond requirements prescribed in section 28-4011.

D. A person who is required to comply with the financial responsibility requirements prescribed in article 2 of this chapter may file an application with the department for partial self-insurance to cover any portion of the financial responsibility requirements.

E. A person may also qualify as a self-insurer if the person is insured by a captive insurer that is domiciled and authorized by the department of insurance and financial institutions to transact business in this state and that provides coverage in an amount of at least that required by section 28-4033.

F. A person applying for self-insurance or partial self-insurance pursuant to this section shall comply with both of the following at the time of application:

1. The person shall submit evidence in a form prescribed by the director that the person is financially able and will continue to be able to pay the entire amount of self-insurance or partial self-insurance allowed by the director for judgments obtained against the person for liability arising out of the ownership, maintenance or use of a motor vehicle.

2. If applicable, the person shall submit evidence in a form prescribed by the director that the person has a valid insurance policy that meets the requirements prescribed in section 28-4033 and that is issued by an insurer that holds a valid certificate of authority or that is allowed to transact surplus lines insurance in this state.

G. The director may adopt rules to implement this section, including rules requiring additional evidence that the person meets the financial responsibility requirements of this chapter and rules providing for the periodic submission of evidence demonstrating that the person meets the standards required by the department to qualify as a self-insurer, a captive insurer or partial self-insurer.

H. The director of the department of transportation, in consultation with the director of the department of insurance and financial institutions, may establish procedures that allow a person to apply for and file a certificate of either partial self-insurance or self-insurance.

I. The director of the department of transportation, in consultation with the director of the department of insurance and financial institutions, shall establish procedures to exchange information regarding changes in the self-insurance status of persons who are subject to this section.

§ 28-4008 Assigned risk plans

A. After consultation with insurance companies authorized to issue motor vehicle liability policies in this state, the director of the department of insurance and financial institutions shall approve a reasonable plan for the equitable apportionment among the companies of applicants for policies and for motor vehicle liability policies who are in good faith entitled to but are unable to procure the policies through ordinary methods.

B. After a plan has been approved, all insurance companies authorized to issue motor vehicle liability policies in this state shall subscribe to and participate in the plan.

C. An applicant for a policy under this section, a person insured under an assigned risk plan and an insurance company affected may appeal to the director of the department of insurance and financial institutions from any ruling or decision of the manager or committee designated to operate the plan. Within ten days after notice of an order or act of the director of the department of insurance and financial institutions, a person aggrieved under this section by the order or act may file a petition in the superior court in the county in which the director of the department of insurance and financial institutions is domiciled against the director of the department of insurance and financial institutions for a review of the order or act. The court shall summarily hear the petition and may make any appropriate order or decree.

§ 28-4009 Motor vehicle liability policy requirements

A. An owner's motor vehicle liability policy shall comply with the following:

1. The policy shall designate by explicit description or by appropriate reference all motor vehicles for which coverage is granted. If coverage is provided for a fleet of seven or more motor vehicles, the maximum payable for any one accident is the limit of liability stated in the policy. There is no accumulation of coverage for each separate vehicle covered.

2. The policy shall insure the person named in the policy as the insured and any other person, as insured, using the motor vehicle or motor vehicles with the express or implied permission of the named insured against loss from the liability imposed by law for damages arising out of the ownership, maintenance or use of the motor vehicle or motor vehicles within the United States or the Dominion of Canada, subject to limits exclusive of interest and costs, for each motor vehicle as follows:

(a) For a policy that is issued or renewed on or before June 30, 2020 or for a policy that is issued to a person that has a valid certificate of self-insurance or partial self-insurance pursuant to section 28-4007:

(i) $15,000 because of bodily injury to or death of one person in any one accident.

(ii) Subject to the limit for one person, $30,000 because of bodily injury to or death of two or more persons in any one accident.

(iii) $10,000 because of injury to or destruction of property of others in any one accident.

(b) For a policy that is issued or renewed beginning on July 1, 2020, except for a policy that is issued to a person that has a valid certificate of self-insurance or partial self-insurance pursuant to section 28-4007:

(i) $25,000 because of bodily injury to or death of one person in any one accident.

(ii) Subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident.

(iii) $15,000 because of injury to or destruction of property of others in any one accident.

3. By agreement in writing between a named insured and the insurer the policy may exclude as insured a person or persons designated by name when operating a motor vehicle. The written agreement between the named insured and insurer is effective for each renewal of the policy by the insurer and remains in effect until the insurer agrees in writing to provide coverage for the person or persons who were previously excluded from coverage.

B. An operator's motor vehicle liability policy shall insure the person named as insured in the policy against loss from the liability imposed on the person by law for damages arising out of the use by the person of a motor vehicle not owned by the person, within the same territorial limits and subject to the same limits of liability provided in subsection A of this section for an owner's motor vehicle liability policy.

C. A motor vehicle liability policy:

1. Shall state the name and address of the named insured, the coverage afforded by the policy, the premium charged for the policy, the complete vehicle identification number of all vehicles covered by the policy, the policy period and the limits of liability.

2. Shall contain an agreement or be endorsed that insurance is provided under the policy in accordance with the coverage defined in this chapter for bodily injury and death or property damage, or both.

3. Is subject to all of the provisions of this chapter.

4. Is not required to insure liability either:

(a) Under any workers' compensation law.

(b) On account of bodily injury to or death of an employee of the insured while engaged in the employment, other than domestic, of the insured or while engaged in the operation, maintenance or repair of the motor vehicle.

(c) For damage to property owned by, rented to, in charge of or transported by the insured.

(d) For damage to property or bodily injury caused intentionally by or at the direction of the insured.

(e) For a private passenger motor vehicle used while a transportation network company driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services unless expressly authorized by the terms of the motor vehicle liability insurance policy or an endorsement or amendment to the policy.

5. Is subject to the following provisions that are not required to be in the policy:

(a) The liability of the insurance carrier with respect to the insurance required by this chapter becomes absolute when injury or damage covered by the motor vehicle liability policy occurs. The policy may not be cancelled or annulled as to that liability by an agreement between the insurance carrier and the insured after the occurrence of the injury or damage, and a statement made by the insured or someone on the insured's behalf or a violation of the policy shall not defeat or void the policy.

(b) The satisfaction by the insured of a judgment for the injury or damage is not a condition precedent to the right or duty of the insurance carrier to make payment on account of the injury or damage.

(c) The insurance carrier may settle any claim covered by the policy, and if the settlement is made in good faith, the amount of the claim is deductible from the limits of liability specified in subsection A, paragraph 2 of this section.

(d) The policy, the written application for the policy, if any, and any rider or endorsement that does not conflict with this chapter constitute the entire contract between the parties.

6. May provide that the insured shall reimburse the insurance carrier for any payment the insurance carrier would not have been obligated to make under the terms of the policy except for this chapter.

7. May provide for the prorating of the insurance under the policy with other valid and collectible insurance.

D. A policy that grants the coverage required for a motor vehicle liability policy may also grant lawful coverage in excess of or in addition to the coverage specified for a motor vehicle liability policy, and the excess or additional coverage is not subject to this chapter. With respect to a policy that grants the excess or additional coverage, the term "motor vehicle liability policy" applies only to that part of the coverage that is required by this section.

E. The requirements for a motor vehicle liability policy may be fulfilled by the policies of one or more insurance carriers that together meet the requirements.

F. A binder issued pending the issuance of a motor vehicle liability policy fulfills the requirements for the policy.

§ 28-4010 Motor vehicle liability policy; primary and excess coverage

A. If two or more policies affording valid and collectible motor vehicle liability insurance apply to the same motor vehicle that is involved in an occurrence out of which a liability loss arises and one of the policies affords coverage to a named insured engaged in the business of selling, repairing, servicing, delivering, testing, road testing, parking or storing motor vehicles, both of the following are conclusively presumed:

1. If at the time of loss the motor vehicle is being operated by a person engaged in one of the businesses or by the person's employee or agent, the insurance afforded by the policy issued to the person engaged in the business is primary and the insurance afforded by any other policy is excess.

2. If at the time of loss the motor vehicle is being operated by a person other than a person described in this subsection, the insurance afforded by the policy issued to a person engaged in a business described in this subsection is excess over all other insurance available to the operator as a named insured or otherwise.

B. Except as provided in subsection A, if two or more policies affording valid and collectible liability insurance apply to the same motor vehicle that is involved in an occurrence out of which a liability loss arises, it is conclusively presumed that the insurance afforded by that policy in which the motor vehicle is described or rated as an owned automobile is primary and the insurance afforded by any other policy or policies is excess.

C. The presumptions stated in subsection A may be modified or amended only by a written agreement signed by all insurers who have issued a policy or policies applicable to a loss described in subsection A and all named insureds under these policies.

§ 28-4011 Bonds; motor carriers; amount; failure of security

A. A self-insurer or partial self-insurer shall file a bond with the director on a form approved by the director with a surety company authorized by the corporation commission to transact business in this state as surety on the bond. The self-insurer or partial self-insurer shall be the principal obligor and this state shall be the obligee on the bond. The bond shall be conditioned on the compliance by the self-insurer or partial self-insurer with laws governing motor carriers.

B. The director shall fix the total amount of the bond required of a self-insurer or partial self-insurer and may increase or reduce the amount at any time, subject to the limitations provided in this section. The bond required of a self-insurer or partial self-insurer shall be at least two hundred fifty thousand dollars.

C. A self-insurer or partial self-insurer may request in writing that the director reduce a bond required pursuant to this section. The director may reduce a bond if the director determines that the self-insurer or partial self-insurer has continuously complied with this article and the self-insurer or partial self-insurer has not incurred claims for accidents involving motor vehicles for at least the previous three consecutive years. If the director determines that the reduction of the bond would jeopardize public safety, the director may elect to retain the bond or may increase the bond amount required. A person who is aggrieved by a decision of the director pursuant to this subsection may appeal the decision by requesting a hearing.

D. If liability on the bond filed by the self-insurer or partial self-insurer with the director is discharged or reduced or if in the opinion of the director a surety on the bond given has become unsatisfactory or unacceptable, the director may require the self-insurer or partial self-insurer to file a new bond with satisfactory sureties in the same amount. If the self-insurer or partial self-insurer fails to file a new bond as required, the director shall cancel the person's certificate of self-insurance or partial self-insurance immediately. If a new bond is furnished by the self-insurer or partial self-insurer, the director shall cancel and surrender the bond for which the new bond is substituted.

E. If the director decides that the amount of the existing bond is insufficient to ensure the safety of the public and the director gives the self-insurer or partial self-insurer five days written notice mailed to the self-insurer's or partial self-insurer’s last known address, on the written demand of the director, the self-insurer or partial self-insurer shall immediately file an additional bond in the same manner and form with a surety company on the bond approved by the director in an amount determined by the director as necessary to protect public safety at all times. If the self-insurer or partial self-insurer fails to file an additional bond as required, the director shall immediately cancel the certificate of self-insurance or partial self-insurance of the person.

F. A surety on a bond furnished by a self-insurer or partial self-insurer shall be released and discharged from all liability to this state accruing on the bond on the last day of the month that includes the sixtieth day after the date on which the surety files with the director a written request to be released and discharged. The request does not relieve, release or discharge the surety from liability already accrued or from liability that accrues before the last day of the month that includes the end of the sixty day period. On receipt of notice of the request, the director shall promptly notify the self-insurer or partial self-insurer who furnished the bond and shall immediately cancel the certificate of self-insurance or partial self-insurance of the person, unless the self-insurer or partial self-insurer, on or before the last day of the month that includes the end of the sixty day period, files with the director a new bond with a surety company satisfactory to the director in the amount and form provided in this section. If a new bond is furnished by the self-insurer or partial self-insurer, the director shall cancel and surrender the bond for which the new bond is substituted.

Article 2 Transportation Financial Responsibility

§ 28-4031 Definitions

In this article, unless the context otherwise requires:

1. "Declared gross weight" has the meaning prescribed in section 28-5431. If a declaration has not been made, declared gross weight means gross weight.

2. "Gross weight" has the meaning prescribed in section 28-5431.

3. "Person" means:

(a) An owner or operator of a motor vehicle or vehicle combination subject to the financial responsibility requirements of this article.

(b) For taxis, limousines, sedans or executive sedans, the person listed on the department’s records as the owner of the vehicle.

4. "Public highway" means any way or place of whatever nature and of any kind that is used or open to the use by the public as a matter of right for the purpose of vehicular travel, including a highway under construction.

5. "Vehicle combination" has the meaning prescribed in section 28-5431.

§ 28-4032 Persons subject to financial responsibility requirements

A. Notwithstanding any other statute:

1. A person who operates in the furtherance of a commercial enterprise in this state a motor vehicle or vehicle combination that has a declared gross weight of more than twenty thousand pounds shall comply with the financial responsibility requirements of this article and article 4 of this chapter.

2. A person who operates a motor vehicle or vehicle combination for the purpose of transporting hazardous materials, hazardous substances or hazardous wastes as defined by the department shall comply with the financial responsibility requirements of this article and article 4 of this chapter unless any of the following applies:

(a) The transportation of hazardous materials, hazardous substances or hazardous wastes is incidental to the principal purpose of the vehicular travel at the time the transportation occurs.

(b) The transportation of hazardous materials, hazardous substances or hazardous wastes is not in the furtherance of a commercial enterprise.

(c) The transportation of an amount of hazardous material listed in 49 Code of Federal Regulations section 172.504(a) table two is less than one thousand pounds or not more than one hundred ten gallons for a combustible liquid.

B. A person who operates a bus used to transport passengers for hire, other than a car pool operator, shall comply with the financial responsibility requirements of this article and article 4 of this chapter. This subsection does not apply to a car pool operator. For the purposes of this subsection, "car pool operator" means a natural person when engaged either regularly or occasionally in carrying one or more other persons by motor vehicle on a public highway, with or without compensation, if the carriage of the other person or persons is both:

1. Not for profit. A car pool operator is conclusively presumed not to be carrying persons for profit if either:

(a) The operator receives compensation of not more than twenty cents per mile for total vehicle miles traveled, except that the proportionate share of the car pool operator shall be included in the amount.

(b) The operator carries one or more of the operator's passengers in consideration of the operator being carried in like situations by the passenger or passengers. The receipt of compensation of more than twenty cents per mile for total vehicle miles traveled does not preclude a car pool operator from showing that this compensation does not result in a profit to the operator or that the operator did not intend that a profit result.

2. Incidental to another purpose of the car pool operator. Except in unusual circumstances, the carriage is incidental to another purpose of the operator if the operator is not making the trip solely for the purpose of carrying a passenger. A car pool operator is conclusively presumed not to be transporting passengers for hire.

C. A person who is listed on the department's records as the owner of a taxi, livery vehicle or limousine used to transport passengers for hire shall comply with the financial responsibility requirements of this article and article 4 of this chapter.

§ 28-4033 Financial responsibility requirements

A. A person that is subject to the requirements of this article shall maintain motor vehicle combined single limit liability insurance as follows:

1. For the transportation of nonhazardous property:

(a) For a vehicle with a gross vehicle weight of more than twenty-six thousand pounds, minimum coverage in the amount of seven hundred fifty thousand dollars.

(b) For a vehicle with a gross vehicle weight of twenty thousand one pounds to twenty-six thousand pounds, minimum coverage in the amount of three hundred thousand dollars.

2. For the transportation of passengers:

(a) In a vehicle with a seating capacity of sixteen passengers or more, minimum coverage in the amount of five million dollars and uninsured motorist coverage in the amount of at least three hundred thousand dollars.

(b) In a vehicle with a seating capacity of less than sixteen passengers including the driver, but more than eight passengers including the driver, minimum coverage in the amount of seven hundred fifty thousand dollars and uninsured motorist coverage in the amount of at least three hundred thousand dollars.

(c) In a vehicle with a seating capacity of not more than eight passengers including the driver, a policy containing one of the following:

(i) Minimum coverage in the amount of two hundred fifty thousand dollars and uninsured motorist coverage in the amount of at least two hundred fifty thousand dollars issued by an insurer that holds a valid certificate of authority or that is permitted to transact surplus lines insurance in this state.

(ii) Minimum coverage as prescribed by section 28-4038 or 28-4039, as applicable.

3. For the transportation of hazardous materials, hazardous substances or hazardous wastes:

(a) Minimum coverage in the amount of five million dollars for the transportation of:

(i) Hazardous substances, as defined in 49 Code of Federal Regulations part 171, transported in a cargo tank, portable tank or hopper-type vehicle with capacities in excess of three thousand five hundred water gallons.

(ii) Any quantity of class A or B explosives.

(iii) Any quantity of poison gas (poison A).

(iv) Liquefied compressed gas or compressed gas transported in a cargo tank, portable tank or hopper-type vehicle with capacities in excess of three thousand five hundred water gallons.

(v) The quantity of radioactive materials that requires specialized handling and transportation controls as indicated in 49 Code of Federal Regulations part 173.

(b) Minimum coverage in the amount of one million dollars for the transportation of the following:

(i) Any quantity of oil listed in 49 Code of Federal Regulations part 172.

(ii) Any quantity of hazardous wastes, hazardous materials or hazardous substances as defined and listed in 49 Code of Federal Regulations part 171 and in 49 Code of Federal Regulations part 172 but not included in subdivision (a) of this paragraph.

B. If a motor vehicle is leased or rented, the lessor shall ensure that the lessee is covered under the lessor's liability insurance as provided by this section or the lessor shall require that the lessee meet the financial responsibility requirements of this section. In the case of taxis, livery vehicles or limousines, a person who is listed on the department's records as the owner shall comply with the financial responsibility requirements of this article and article 4 of this chapter.

C. If a lessee uses the motor vehicle for a purpose that is required under this section to have a higher amount of financial responsibility than was required of the lessor or renter, the lessee shall maintain the higher financial responsibility requirements of this section.

D. The uninsured motorist coverage required by this section is not required until June 1, 1987 and may be provided by a self-insurance program authorized under section 28-4007. A person who is under contract with this state or a political subdivision of this state, who operates a motor vehicle owned by this state or a political subdivision of this state and who is included in the self-insurance program of this state or a political subdivision of this state is exempt from the uninsured motorist requirements of this section.

§ 28-4034 Maintenance, certification and verification of financial requirements

A. A person who operates a motor vehicle in this state and who is subject to the financial responsibility requirements of this article shall maintain at all times the amounts prescribed in section 28-4033 that obligates the person to pay compensation for injuries to persons and for loss or damage to property by reason of the ownership, maintenance or use of a motor vehicle or vehicle combination owned or operated by the person.

B. The department may require a person who is subject to the financial responsibility requirements of this article to certify the existence of financial responsibility in the form and at the times the department deems necessary. The department may forward the certification to the named insurer to determine if the certification is correct. Civil liability does not accrue to the insurer or any of its employees for reports made to the department if the reports are made in good faith based on the most recent information available to the insurer.

§ 28-4036 Violation; classification

A person who is subject to the financial responsibility requirements of this article and who operates or causes to be operated a vehicle in this state without meeting the financial responsibility requirements of this article is guilty of:

1. A class 3 misdemeanor.

2. A class 1 misdemeanor if the vehicle is involved in an accident in this state.

§ 28-4037 Foreign vehicles; exception

A. Before a vehicle owner or lessor operates in this state a vehicle that is subject to sections 28-2321 through 28-2324 and that has primary registration and license plates issued by a foreign country or jurisdiction of a foreign country with which this state does not have motor vehicle registration reciprocity or an agreement for proportional registration, the owner or lessor shall submit to the department proof of financial responsibility for the future pursuant to this article that provides valid insurance coverage in this state and that is issued by an insurer that has been issued a certificate of authority or that has been permitted to transact surplus lines insurance by the public official that supervises insurance in a state of the United States or the District of Columbia.

B. The department may refuse to issue the registration for a vehicle or may cancel the registration of a vehicle owned or operated by a person who does not comply with this section.

C. This section does not apply to a vehicle registered pursuant to section 28-2325.

§ 28-4038 Transportation network services; financial responsibility requirements; survey

A. For a transportation network company that requires a transportation network company driver to accept rides that are booked and paid for exclusively through the transportation network company's digital network or software application and during the time in which the transportation network company driver is logged in to the transportation network company's digital network or software application to be a driver, but is not in the act of providing transportation network services, the transportation network company driver or the transportation network company, or both, shall provide primary motor vehicle liability insurance coverage in the amount of $25,000 because of bodily injury to or death of one person in any one accident, subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident and $20,000 because of injury to or destruction of property of others in any one accident. Coverage shall be maintained through any of the following:

1. A private passenger motor vehicle policy maintained by the transportation network company driver that expressly provides liability coverage while the driver is logged in to the transportation network company's digital network or software application to be a driver.

2. A motor vehicle liability policy maintained by the transportation network company.

3. A commercial motor vehicle liability policy.

B. For a transportation network company that requires a transportation network company driver to accept rides that are booked and paid for exclusively through the transportation network company's digital network or software application and during the time in which the transportation network company driver is providing transportation network services, the transportation network company driver or the transportation network company, or both, shall maintain the following insurance coverages:

1. Primary commercial motor vehicle liability insurance that covers the transportation network company driver's provision of transportation network services in a minimum amount of $250,000 per incident, except that the minimum amount shall be $1,000,000 per incident when a passenger to whom the transportation network company driver is providing transportation network services is occupying the transportation network company vehicle.

2. Primary commercial uninsured motorist coverage in a minimum amount of either of the following, whichever is greater:

(a) $25,000 per person and $75,000 per incident.

(b) The minimum liability limits for bodily injury or death prescribed in section 28-4009.

C. Unless an insurance policy expressly provides coverage or contains an amendment or endorsement that expressly provides coverage, the transportation network company driver's insurance policy and the motor vehicle owner's personal motor vehicle insurance policy shall not be required to provide coverage for the transportation network company vehicle, the transportation network company driver, the motor vehicle owner or any third party while a transportation network company driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services.

D. Notwithstanding subsection C of this section, an insurer may offer, for the period during which a transportation network company driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services, one of the following:

1. A motor vehicle liability insurance policy expressly providing such coverage.

2. An amendment or endorsement to an existing motor vehicle liability insurance policy specifically providing such coverage.

E. An insurance policy required by this section is deemed to satisfy the financial responsibility requirements for a motor vehicle insurance policy under this title.

F. A transportation network company driver shall carry proof of insurance in the transportation network company vehicle at all times while logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services. If an accident occurs involving a transportation network company vehicle, the transportation network company driver shall provide proof of insurance to the parties involved in the accident at the time of the accident. The transportation network company driver shall also notify the transportation network company of the accident.

G. In a claims coverage investigation, transportation network companies and any insurer providing coverage as prescribed in this section shall fully cooperate in the exchange of information, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network or software application in the twenty-four-hour period immediately preceding the accident, and shall disclose to each other a clear description of the coverage, exclusions and limits provided under any insurance policy each party issued or maintained.

H. This section and section 28-4009 do not create an obligation for an insurer that issues coverage to which section 20-1631 applies to offer, provide or issue a motor vehicle liability insurance policy or an endorsement or amendment that includes coverage for any liability arising while a transportation network company driver is logged in to the transportation network company's digital network or software application to be a driver or is providing transportation network services.

I. An insurance policy required by this section may be placed with an insurer authorized to transact insurance in this state pursuant to title 20, chapter 2, article 1 or a surplus lines insurer pursuant to title 20, chapter 2, article 5.

J. The department of insurance and financial institutions, as part of its annual survey of insurance companies, may request information from any property and casualty insurer authorized to write private passenger motor vehicle coverage in this state, including information regarding:

1. Whether the insurer offers for purchase a policy or an endorsement or amendment that covers transportation network company drivers while the driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services.

2. The number of those policies, endorsements or amendments that have been purchased during the reporting period.

3. The number of those policies, endorsements or amendments that have been canceled during the reporting period.

§ 28-4039 Taxi, livery vehicle or limousine; financial responsibility

A. Motor vehicle liability insurance for a taxi, livery vehicle or limousine may be maintained as follows:

1. During the time in which the taxi, livery vehicle or limousine driver is available to provide passenger transportation, but has not accepted a ride request and is not in the act of providing passenger transportation, primary commercial motor vehicle liability insurance coverage in the amount of $25,000 because of bodily injury to or death of any one person in any one accident, subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident and $20,000 because of injury to or destruction of property of others in any one accident. This policy may be maintained by either the driver or the company.

2. After the taxi, livery vehicle or limousine driver has accepted a ride request through any communication and during the time in which the taxi, livery vehicle or limousine driver is providing passenger transportation, the taxi, livery vehicle or limousine driver or the taxi, livery vehicle or limousine company shall maintain the following insurance coverage:

(a) Primary commercial motor vehicle liability insurance in a minimum amount of $250,000 per incident.

(b) Primary commercial uninsured motorist coverage in a minimum amount of either of the following, whichever is greater:

(i) $25,000 per person and $75,000 per incident.

(ii) The minimum liability amounts for bodily injury or death prescribed in section 28-4009.

B. A taxi, livery vehicle or limousine driver shall carry proof of insurance in the vehicle at all times while providing transportation services. If an accident occurs involving a taxi, livery vehicle or limousine, the taxi, livery vehicle or limousine driver shall provide proof of insurance to the parties involved in the accident at the time of the accident. The taxi, livery vehicle or limousine driver shall also notify the taxi, livery vehicle or limousine company of the accident.

C. In a claims coverage investigation, a taxi, livery vehicle or limousine company and any insurer providing coverage as prescribed in this section shall fully cooperate in the exchange of information and shall disclose to each other a clear description of the coverage, exclusions and limits provided under any insurance policy that each party issued or maintained.

Article 3 Proof of Financial Responsibility for the Future

§ 28-4071 Nonpayment of judgments; report

A. If a person fails to satisfy a judgment within sixty days, on written request of the judgment creditor or the judgment creditor's legal representative, the clerk of the court, or the judge of a court that has no clerk, in which the judgment is rendered shall forward a certified copy of the judgment to the director immediately after the expiration of the sixty days.

B. If the defendant who is named in a certified copy of a judgment reported to the director is a nonresident, the director shall transmit a certified copy of the judgment to the official in charge of the issuance of licenses and registration certificates of the state of which the defendant is a resident.

§ 28-4072 Nonpayment of judgments; suspension; exceptions

A. On receipt of a certified copy of a judgment, the director shall immediately suspend the license and registration and nonresident operating privilege of a person against whom the judgment was rendered, except as otherwise provided in this section and section 28-4075.

B. If the judgment creditor consents in writing on a form prescribed by the director that the judgment debtor be allowed the license and registration or the nonresident operating privilege and if the judgment debtor furnishes proof of financial responsibility, the director may allow the privileges from the date of the consent and thereafter until the consent is revoked in writing, notwithstanding default in the payment of the judgment or of any installments prescribed in section 28-4075.

C. A person whose license, registration or nonresident operating privilege has been or is about to be suspended or shall become subject to suspension under this article may be relieved from the effect of the judgment as prescribed in this article by filing with the director all of the following:

1. An affidavit stating that at the time of the accident on which the judgment was rendered the affiant was insured, that the insurer is liable to pay the judgment and the reason, if known, why the insurance company has not paid the judgment.

2. The original or a certified copy of the policy of insurance, if available.

3. Other documents required by the director to show that the loss, injury or damage for which the judgment was rendered was covered by the policy of insurance.

D. If the director is satisfied from the papers filed pursuant to subsection C of this section that the insurer was authorized to issue the policy of insurance at the time and place of issuing the policy and that the insurer is liable to pay the judgment, at least to the extent and for the amounts required in this chapter, the director:

1. Shall not suspend the license, registration or nonresident operating privilege.

2. If the license, registration or nonresident operating privilege is already suspended, shall reinstate the license, registration or nonresident operating privilege.

§ 28-4073 Suspension length; reinstatement; designated fund

A. The license, registration and nonresident operating privilege shall remain suspended and the director shall not renew or issue a license or registration in the name of the person, including a person not previously licensed, until each judgment is satisfied in full or to the extent provided by this chapter or unless the judgment creditor failed to renew the judgment as provided in title 12, chapter 9, article 6 or the judgment is otherwise legally unenforceable and the person gives proof of financial responsibility subject to the exemptions stated in sections 28-4072 and 28-4075. If the judgment creditor fails to renew the judgment, the director shall consider the judgment satisfied beginning on the date of its expiration.

B. On receipt of an affidavit executed by a judgment debtor stating that a diligent search to locate the judgment creditor has been made and reciting with particularity the steps taken and that the judgment creditor or the successor in interest could not be found for the purpose of receiving payment of the judgment and on payment of the amount of the judgment to the department in a fund designated for that purpose, the director may reinstate the license, registration and nonresident operating privilege of the judgment debtor. The director shall hold the monies in trust for the purpose of satisfying the judgment. Monies deposited in the fund revert to the state general fund five years from the date of the deposit if not claimed by the judgment creditor.

C. Notwithstanding section 28-4088, a person whose license, registration or nonresident operating privilege is reinstated shall maintain proof of financial responsibility for two years after the judgment is satisfied.

§ 28-4074 Payments; satisfaction of judgments

A. For the purpose of this chapter only, a judgment referred to in this article is deemed satisfied on compliance with one of the following:

1. When payment sufficient to satisfy the limits prescribed in section 28-4009 is made.

2. If higher limits are required pursuant to section 28-4033, when payment sufficient to satisfy those limits is made.

B. Payments made in settlements of claims because of bodily injury, death or property damage arising from a motor vehicle accident shall be credited in reduction of the amounts provided for in this section.

§ 28-4075 Installment payment of judgments; default

A. On due notice to the judgment creditor, a judgment debtor may apply to the court in which the judgment was rendered for the privilege of paying the judgment in installments, and the court may order and fix the amounts and times of payment of the installments without prejudice to any other legal remedy that the judgment creditor may have.

B. The director shall not suspend a license, registration or nonresident operating privilege and shall restore a license, registration or nonresident operating privilege suspended after nonpayment of a judgment if the judgment debtor gives proof of financial responsibility and obtains an order permitting the payment of the judgment in installments and while the payment of an installment is not in default.

C. If the judgment debtor fails to pay an installment as specified by the order, on notice of the default the director shall immediately suspend the license, registration or nonresident operating privilege of the judgment debtor until the judgment is satisfied as provided in this chapter.

§ 28-4076 Alternate methods of proof

If required by this chapter, a person may give proof of financial responsibility by filing one of the following:

1. A certificate of insurance pursuant to section 28-4077 or 28-4078.

2. Certificates of deposit or cash pursuant to section 28-4084.

§ 28-4077 Certificate of insurance

A. A person may give proof of financial responsibility by filing with the director the written certificate of an insurance carrier duly authorized to do business in this state certifying that there is in effect a motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility. The certificate shall:

1. Be in a form and shall contain the information prescribed by the director.

2. Designate by explicit description or by appropriate reference all motor vehicles covered by the certificate, unless the policy is issued to a person who is not the owner of a motor vehicle.

B. A motor vehicle shall not be or shall not continue to be registered in the name of a person required to file proof of financial responsibility unless the motor vehicle is designated in the certificate.

§ 28-4078 Certificate by nonresident

A. A nonresident owner of a motor vehicle that is not registered in this state may give proof of financial responsibility by filing with the director a written certificate of an insurance carrier authorized to transact business in the state in which the motor vehicle described in the certificate is registered, or if the nonresident does not own a motor vehicle, in the state in which the insured resides, if the certificate otherwise conforms with this chapter. The director shall accept the certificate on the condition that the insurance carrier complies with the following provisions with respect to the policies certified:

1. The insurance carrier shall execute a power of attorney authorizing the director to accept service on its behalf of notice or process in an action arising out of a motor vehicle accident in this state.

2. The insurance carrier shall agree in writing that the policies shall be deemed to conform with the laws of this state relating to the terms of motor vehicle liability policies issued in this state.

B. If an insurance carrier that is not authorized to transact business in this state and that is qualified to furnish proof of financial responsibility defaults in any such undertaking or agreement, the director shall not accept a certificate of the carrier as proof whether filed before the default or tendered as proof after the default, as long as the default continues.

§ 28-4081 Notice; cancellation or termination of policy

If an insurance carrier has certified a motor vehicle liability policy under section 28-4077 or 28-4078, the insurance carrier shall not cancel or terminate the certified insurance until at least ten days after the insurance carrier files a notice of cancellation or termination of the insurance with the director, except that a policy subsequently procured and certified terminates, on the effective date of its certification, the insurance previously certified with respect to a motor vehicle designated in both certificates.

§ 28-4082 Applicability to other policies

A. This chapter does not apply to or affect policies of motor vehicle insurance against liability that are required by any other law of this state, and if these policies contain an agreement or are endorsed to conform with the requirements of this chapter, they may be certified as proof of financial responsibility under this chapter.

B. This chapter does not apply to or affect policies insuring only the insured named in the policy against liability resulting from the maintenance or use by persons in the insured's employ or on the insured's behalf of motor vehicles not owned by the insured.

§ 28-4084 Monies or certificates of deposit as proof; exception

A. The state treasurer may issue a certificate that gives evidence of proof of financial responsibility that the person named in the certificate has deposited with the state treasurer forty thousand dollars in cash or certificates of deposit with a value of forty thousand dollars issued by a financial institution.

B. The state treasurer shall not accept the deposit and issue a certificate for and the director shall not accept the certificate unless the depositor provides evidence that there are no unsatisfied judgments of any kind against the depositor in the county where the depositor resides.

C. The state treasurer shall hold the deposit to satisfy, in accordance with this chapter, an execution on a judgment issued against the person making the deposit for damages, including damages for care and loss of services, because of bodily injury to or death of a person or for damages because of injury to or destruction of property, including the loss of use of the property, resulting from the ownership, maintenance, use or operation of a motor vehicle after the deposit is made.

D. Monies or certificates of deposit deposited pursuant to this section are not subject to attachment or execution unless the attachment or execution arises out of a suit for damages described in subsection C.

E. Deposits of cash or certificates of deposit under this section do not satisfy the financial responsibility requirements prescribed in article 2 of this chapter.

§ 28-4085 Proof by owner for others

If a person required to give proof of financial responsibility under this chapter is or later becomes either an operator in the employ of an owner or a member of the immediate family or household of an owner, the director shall accept proof given by the owner in lieu of proof by the other person to permit the other person to operate a motor vehicle for which the owner has given proof as provided by this chapter.

§ 28-4086 Substitution of proof

The director shall consent to the cancellation of a certificate of insurance or shall direct and the state treasurer shall return any monies or certificates of deposit to the person entitled to the monies or certificates of deposit on the substitution and acceptance of other adequate proof of financial responsibility pursuant to this chapter.

§ 28-4087 Requirement of other proof

If proof of financial responsibility filed under this chapter no longer fulfills the purposes for which the proof is required, the director shall both:

1. Require for the purpose of this chapter other proof as required by this chapter.

2. Suspend the license and registration or the nonresident operating privilege pending the filing of other proof.

§ 28-4088 Duration, cancellation and return of proof

A. On request, the director shall either:

1. Consent to the immediate cancellation of a certificate of insurance.

2. Direct and the state treasurer shall return to the person who is entitled monies or certificates of deposit deposited pursuant to this chapter as proof of financial responsibility.

3. Waive the requirement of filing proof under any of the following circumstances:

(a) At any time after three years from the date the proof was required.

(b) The death of the person on whose behalf the proof was filed or the permanent incapacity of the person to operate a motor vehicle.

(c) If the person who has given proof surrenders the person's license and registration to the director.

B. The director shall not consent to the return of monies or certificates of deposit if an action for damages on a liability covered by the proof is pending, if a judgment on that liability is unsatisfied or if the person who has deposited the monies or certificates of deposit has been involved as an operator or owner in a motor vehicle accident resulting in injury or damage to the person or property of others within one year immediately preceding the request. An affidavit of the applicant stating that these facts do not exist, that the applicant has been released from all of the applicant's liability or that the applicant has been finally adjudicated not liable for the injury or damage is sufficient evidence in the absence of evidence to the contrary in the records of the director.

C. If a person whose proof has been returned under subsection A, paragraph 3, subdivision (c) applies for a license or registration within three years from the date proof was originally required, the director shall refuse the application unless the applicant reestablishes the proof for the remainder of the three year period.

Article 4 Mandatory Motor Vehicle Insurance

§ 28-4131 Definition of evidence

In this article, unless the context otherwise requires, "evidence" includes:

1. An original, a photocopy or a copy of a current and valid:

(a) Motor vehicle or automobile liability policy that meets the requirements of section 28-4009.

(b) Binder or certificate of motor vehicle or automobile liability insurance that meets the requirements of section 28-4009.

(c) Certificate of self-insurance issued by the department under article 1 of this chapter.

(d) Certificate of deposit that meets the requirements of section 28-4084.

(e) Motor vehicle insurance identification card issued by an authorized insurer or an authorized agent of the insurer for a motor vehicle or automobile liability policy that meets the requirements of section 28-4009.

(f) Certificate of insurance for a policy that meets the requirements of section 28-4033.

2. Designation of a motor vehicle as owned or leased by this state or any of its political subdivisions according to section 38-538.

3. A display on a wireless communication device of any item listed in paragraph 1 of this section.

§ 28-4132 Financial responsibility requirement exemptions

This article does not apply to the owner or operator of any:

1. Farm tractor.

2. Trailer used solely in the operation of a farm for transporting the unprocessed fiber or forage products of a farm or an implement of husbandry designed primarily for or used in agricultural operations and only incidentally operated or moved on a highway.

3. Road-roller or road machinery, including a power sweeper, temporarily operating or moved on the highway.

4. Trailer not used for commercial purposes or semitrailer not used for commercial purposes.

5. Motor vehicle rented without a driver that meets the requirements of section 28-2166.

6. Motor vehicle registered pursuant to section 28-2154.

7. Motor vehicle owned by the United States government.

8. Golf cart used in the operation of a golf course or only incidentally operated or moved on a highway.

9. All-terrain vehicle or off-road recreational motor vehicle operating on a dirt road that is located in an unincorporated area of this state. For the purposes of this paragraph, "dirt road" means an unpaved or ungraveled road that is not maintained by this state or a city, town or county of this state.

10. Off-highway vehicle participating in an off-highway vehicle special event as defined in section 28-1171.

§ 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 28-4009 or section 28-4033, subsection A, paragraph 2, subdivision (c).

B. The card shall include the number that the department assigns to the insurer and shall state that:

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

2. The card or an image of the card that is displayed on a wireless communication device meets the requirement prescribed in paragraph 1 of this subsection.

3. The card or an image of the card that is displayed on a wireless communication device is satisfactory evidence if the person is asked by the department of transportation 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 and financial institutions.

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.

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.

§ 28-4134 Law enforcement officer responsibilities

A. On the investigation of a motor vehicle accident or an alleged violation of the motor vehicle laws of this state or a traffic ordinance of a city or town, a law enforcement officer shall:

1. Inquire of the department computer system whether there is a notice of valid insurance cancellation or nonrenewal applicable to the motor vehicle or an indication that the vehicle is not registered for operation pursuant to section 28-4152.

2. Require and the person shall produce evidence of financial responsibility for that motor vehicle.

B. A department report that there is a notice of cancellation or a nonrenewal applicable to the vehicle or that the vehicle is not registered for operation pursuant to section 28-4152 is sufficient cause to charge the owner or operator of the vehicle with a violation of chapter 7, article 16 of this title and section 28-4135 or 28-4139, or both. The officer shall issue a citation under section 28-4135 or 28-4139, or both, unless the operator of the vehicle produces other or more recent evidence of financial responsibility.

§ 28-4135 Motor vehicle financial responsibility requirement; civil penalties; restricted driving privilege; evidence at hearing

A. A motor vehicle that is operated on a highway in this state shall be covered by one of the following:

1. A motor vehicle or automobile liability policy that provides limits not less than those prescribed in section 28-4009.

2. An alternate method of coverage as provided in section 28-4076.

3. A certificate of self-insurance as prescribed in section 28-4007.

4. A policy that satisfies the financial responsibility requirements prescribed in article 2 of this chapter.

B. A person operating a motor vehicle on a highway in this state shall have evidence within the motor vehicle of current financial responsibility applicable to the motor vehicle. The evidence may be displayed on a wireless communication device that is in the motor vehicle. If a person displays the evidence on a wireless communication device pursuant to this subsection, the person is not consenting for law enforcement to access other contents of the wireless communication device.

C. Failure to produce evidence of financial responsibility on the request of a law enforcement officer investigating a motor vehicle accident or an alleged violation of a motor vehicle law of this state or a traffic ordinance of a city or town is a civil traffic violation that is punishable as prescribed in this section.

D. A citation issued for violating subsection B or C of this section shall be dismissed if the person to whom the citation was issued produces evidence to the appropriate court officer on or before the date and time specified on the citation for court appearance and in a manner specified by the court, including the certification of evidence by mail, of either of the following:

1. The financial responsibility requirements prescribed in this section were met for the motor vehicle at the date and time the citation was issued.

2. A motor vehicle or automobile liability policy that meets the financial responsibility requirements of this state and that insured the person and the motor vehicle the person was operating at the time the person received the citation regardless of whether or not the motor vehicle was named in the policy.

E. Except as provided in section 28-4137, a person who violates this section is subject to a civil penalty as follows:

1. The court shall impose a minimum civil penalty of five hundred dollars for the first violation. On receipt of the abstract of the record of judgment, the department shall suspend the person's driving privileges or restrict the person's driving privileges as described in section 28-144 for three months. Before issuing a restricted driving privilege pursuant to this paragraph, the department shall verify that the person is in compliance with the financial responsibility requirements of this article.

2. If a person violates this section a second time within a period of thirty-six months, the court shall impose a minimum civil penalty of seven hundred fifty dollars. On receipt of the abstract of the record of judgment, the department shall suspend the driver license of the person and the registration and license plates of the motor vehicle involved for six months.

3. If a person violates this section three or more times within a period of thirty-six months, the court shall impose a minimum civil penalty of one thousand dollars. On receipt of the abstract of the record of judgment, the department shall suspend the driver license of the person and the registration and license plates of the motor vehicle involved for one year. The department shall require on reinstatement of the driver license, the registration and the license plates that the person file with the department proof of financial responsibility in accordance with article 3 of this chapter.

F. A court may require a person to produce an insurance identification card as evidence in a hearing for a violation of this section.

§ 28-4137 Reduction or waiver of penalty; rules

A. The court may reduce or waive the penalty imposed for a violation of section 28-4135 if the person subject to the penalty presents to the court proof of both of the following:

1. The person has not been found responsible for a violation of section 28-4135 within the past twenty-four months or not more than one violation within the past thirty-six months as evidenced by the person's driving record.

2. The person has purchased a six month policy of insurance that meets the requirements of section 28-4009.

B. The supreme court may adopt rules for the court as necessary to implement this section.

§ 28-4138 Charges of violations

A. A person may be charged for a violation of section 28-4135, subsection A or B, or both. Only one penalty shall be imposed against a person charged and found to have violated both sections arising out of the same series of acts.

B. Suspensions imposed pursuant to section 28-4135 are in addition to any suspensions that may be imposed by the department pursuant to this article.

C. In imposing a civil penalty arising out of the same series of acts for which the department issued a suspension, the court may order a suspension issued pursuant to section 28-4135 to run concurrently with any suspension ordered by the department.

§ 28-4139 License plate display violation; civil penalty; disposition

A. Display of a license plate on a motor vehicle if the registration or license plate has been suspended pursuant to this article shall subject the person involved to a civil penalty of not less than two hundred fifty dollars.

B. The court shall impose the penalty pursuant to this section in addition to any other penalties imposed pursuant to this article.

C. Suspended license plates shall be confiscated at the time of citation, and all penalties imposed pursuant to this section shall be paid to the general fund of the state agency or political subdivision of the citing officer.

D. The department shall provide information on suspended license plates to law enforcement agencies.

§ 28-4140 Commencement of action for violation

Notwithstanding section 28-1592, subsection B, a civil traffic violation case pursuant to this article may be commenced within one year of the alleged violation.

§ 28-4141 Suspension of license, registration and license plates

A. On imposing a civil penalty for a violation of this article, the court may, if the violation is the first violation within a thirty-six month period, and shall, if the violation is a second or subsequent violation within a thirty-six month period, order the surrender of the person's driver license.

B. If a suspension is ordered, the court shall direct the department to suspend the driver license of the person and the registration and license plate of the motor vehicle involved for the time provided in section 28-4135.

C. If the person is a nonresident, the court shall direct the department to suspend the nonresident operating privilege of the person and notify the official in charge of issuance of driver licenses in the state where the nonresident resides of the suspension of the person's nonresident operating privilege.

D. Registration and license plates that have been suspended on imposition of a civil penalty for a violation of this article:

1. Remain suspended for the period for which the suspension was issued.

2. On completion of the suspension period, remain suspended until the registered owner both:

(a) Provides proof of financial responsibility pursuant to article 3 of this chapter for the owner's motor vehicle to the department.

(b) Pays a fee of twenty-five dollars to the department.

E. A person's driver license that has been suspended on imposition of a civil penalty for a violation of this article:

1. Remains suspended for the period for which the suspension was issued.

2. On completion of the suspension period, remains suspended until the person both:

(a) Provides proof of financial responsibility pursuant to article 3 of this chapter to the department.

(b) Pays a ten dollar fee to the department.

F. A person whose driver license, motor vehicle registration or nonresident driving privilege is suspended pursuant to a civil penalty for a violation of this article is not entitled to a hearing on the suspension before the department but is entitled to a hearing for a restricted license as provided in section 28-4145.

§ 28-4142 Vehicle registration; financial responsibility verifications; exception; violation; classification

A. A person applying for initial registration or renewal of registration of a motor vehicle required to be registered pursuant to chapter 7 of this title consents to comply with the financial responsibility verifications conducted by the department pursuant to this article or submits to the suspension of the person's motor vehicle registration and license plate and driver license.

B. The application for registration shall contain a notice to the applicant restating subsection A of this section.

C. Thirty days after the department issues the initial registration and before the renewal of registration, it shall review the vehicle record to determine if the motor vehicle described in the application is in compliance with state financial responsibility requirements. If the review indicates that the motor vehicle is not currently covered by a valid liability insurance policy, the department shall send the registrant a notice of intent to suspend the license plate and registration of the vehicle pursuant to section 28-4149.

D. This section does not apply to a motor vehicle owned by this state or a political subdivision of this state.

E. A person is guilty of a class 2 misdemeanor if the person does any of the following:

1. Forges any evidence of proof of financial responsibility.

2. Signs evidence of proof of financial responsibility without authority.

3. Files or offers for filing a notice or evidence of proof of financial responsibility and knows or has reason to believe that the notice or evidence is forged or signed without authority.

§ 28-4143 Vehicle accident; financial responsibility verification; suspension

A. To ensure compliance with this article, the department may verify the financial responsibility of the owner of a motor vehicle involved in an accident in this state. If an accident involves an unregistered vehicle, the department may conduct a financial responsibility verification in the same manner as required for a registered vehicle.

B. If a motor vehicle is selected for financial responsibility verification under subsection A of this section, the department shall verify all insurance information on file for the requested vehicle by forwarding the information contained on the record to the insurer or the applicable party to determine if the insurance was in effect on the date of the accident.

C. On receipt of a denial from an insurer or any other applicable party or if no insurance information was on file, the department shall mail a notice to the owner requiring evidence from the owner that the motor vehicle met the financial responsibility requirement of section 28-4135 or section 28-4033, subsection A, paragraph 2, subdivision (c) on the date of the accident. The notice shall require the owner to submit evidence of financial responsibility to the department within thirty days after the date the notice was mailed.

D. The department shall verify all evidence of financial responsibility submitted pursuant to subsection C of this section and shall take action as follows:

1. If the evidence of financial responsibility submitted by the owner indicates the existence of a motor vehicle or automobile liability policy covering the motor vehicle, the following steps shall be taken:

(a) The department shall forward the evidence document or the applicable information contained in the evidence document to the listed insurer or other appropriate party to determine whether the policy was valid on the date of the accident.

(b) The insurer or other appropriate party shall notify the department in writing within thirty days after the date the inquiry was mailed if the policy was not valid on the date indicated.

(c) On receipt of a letter of denial from an insurer or any other appropriate party, the department shall send to the owner a suspension notice that states:

(i) The insurer's denial of coverage on the date of the accident.

(ii) The owner's driver license and motor vehicle registration will be suspended fifteen days after the date the suspension notice was mailed unless the owner produces additional evidence to the department on or before the effective date of the suspension that the financial responsibility requirement of section 28-4135 or section 28-4033, subsection A, paragraph 2, subdivision (c) was met for the vehicle on the date of the accident or unless the owner requests a hearing.

2. If the evidence of financial responsibility submitted by the owner indicates either self-insurance or a certificate of deposit, the department shall:

(a) Verify that the evidence is properly reflected in the department records.

(b) If it is determined that the evidence of financial responsibility is false or otherwise invalid, send a suspension notice to the owner that the person's driver license and motor vehicle registration will be suspended fifteen days after the date the suspension notice is mailed unless a hearing is requested.

3. If the person appearing as the registered owner of the vehicle according to department records is able to provide proof as prescribed by the director that the vehicle was sold before the date of the accident, the department shall not suspend the driver license or registration privilege of the person.

E. Information that is being verified pursuant to this section is a public record.

§ 28-4144 Notice; suspension; reinstatement fees

A. If the owner's response to a mailing pursuant to section 28-4143 indicates that the motor vehicle does not meet the financial responsibility requirement of section 28-4135 or section 28-4033, subsection A, paragraph 2, subdivision (c), the department shall send a suspension notice to the owner that states:

1. The motor vehicle does not meet the financial responsibility requirements.

2. The owner's driver license and motor vehicle registration will be suspended fifteen days after the date the suspension notice is mailed and, if the owner is required to comply with section 28-4033, subsection A, paragraph 2, subdivision (c), that all motor vehicles that are registered to the owner and that do not meet the financial responsibility requirements will be suspended fifteen days after the date the notice is mailed unless either:

(a) The owner produces additional evidence to the department on or before the effective date of the suspension that the financial responsibility requirement of section 28-4135 or section 28-4033, subsection A, paragraph 2, subdivision (c) was met for the vehicle on the date of the accident.

(b) The owner requests a hearing.

B. If a response is not received within thirty days after the date the original notice requiring proof of financial responsibility is mailed, the department shall:

1. Send a suspension notice to the owner that the owner's driver license and motor vehicle registration or registration privilege will be suspended fifteen days after the date the suspension notice is mailed and, if the owner is required to comply with section 28-4033, subsection A, paragraph 2, subdivision (c), that all motor vehicles that are registered to the owner and that do not meet the financial responsibility requirements will be suspended fifteen days after the date the notice is mailed unless the owner submits evidence of financial responsibility or proof that the vehicle was sold pursuant to section 28-4143 before the effective date of the suspension.

2. If a response or evidence of financial responsibility or proof of vehicle sale pursuant to section 28-4143 is not received within the required time, suspend the motor vehicle registration or registration privilege, license plate and driver license.

3. If there is no other basis for the suspension and evidence of financial responsibility or evidence of vehicle sale is later submitted, verify the evidence of financial responsibility or sale pursuant to section 28-4143 and remove the suspension from the public record if financial responsibility is proven.

C. Except as provided in subsection B of this section, if the motor vehicle registration, registration privilege, license plate or driver license is suspended pursuant to section 28-4143 or this section:

1. The suspension is for a minimum of one year.

2. The department shall not terminate the suspension until the applicant both:

(a) Files with the department proof of financial responsibility in accordance with article 3 of this chapter.

(b) Pays to the department a ten dollar fee for the reinstatement of the driver license and a twenty-five dollar fee for the reinstatement of the motor vehicle registration and license plate, except that these fees do not apply to a suspension removed pursuant to subsection B of this section or to a suspension applicable to a person who is required to comply with the financial responsibility requirements prescribed in article 2 of this chapter unless the person was required to comply with the financial responsibility requirements prescribed in section 28-4033, subsection A, paragraph 2, subdivision (c).

§ 28-4145 Restricted license and registration

A. A person whose driver license, registration and license plate have been suspended pursuant to section 28-4143 or 28-4144 may apply to the department for a restricted license and registration. The license and registration are restricted to travel during the course of employment or between the person's place of employment and residence and their use is limited to specified periods of the day or night according to the person's employment schedule. The department shall not grant an application for a restricted license and registration until the person meets the requirements of section 28-4144, subsection C.

B. Notwithstanding section 28-4141, a person whose driver license, vehicle registration and license plate have been suspended on imposition of a civil penalty for a violation of this article or have been suspended by the department may apply to the department for a restricted license and registration. The license and registration are restricted to travel during the course of employment, between the person's place of employment and residence or between the person's place of residence and school, and are limited in use to specified periods of the day or night according to the requirements of the person's employment or school schedule. The department shall not grant the application for a restricted license and registration until the applicant files and maintains proof of financial responsibility with the department.

§ 28-4146 Immunity

Any insurer, insurer's employees or agents or other person is not civilly liable for reports made to the department under section 28-4143 or 28-4144 if the reports are made in good faith based on the most recent information available to the insurer or other appropriate party.

§ 28-4147 Service of notice; definition

A. 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 electronically or digitally, by mail to the address provided to the department on the registration application or pursuant to section 28-448. Service of notice is complete on mailing.

B. For the purposes of this section, "mail" or "mailing" means delivery by first class or certified mail or through a department electronic or digital system.

§ 28-4148 Notice of insurance cancellation or nonrenewal

A. Effective from and after January 1, 1998 and through July 31, 1998, each insurer who cancels or becomes aware of the cancellation or nonrenewal of or failure to renew or issuance of a motor vehicle liability insurance policy issued on a vehicle in this state shall provide to the department all cancellations, nonrenewals or new issues for any reason after thirty or fewer days have elapsed from the time of processing the cancellation, nonrenewal or new issue of a policy.

B. Effective August 1, 1998, each insurer who cancels or becomes aware of the cancellation or nonrenewal of or failure to renew or issuance of a motor vehicle liability insurance policy issued on a vehicle in this state shall provide to the department all cancellations, nonrenewals or new issues for any reason after seven or fewer days have elapsed from the time of processing the cancellation, nonrenewal or new issue of a policy. Any insurer with less than ten thousand policies in place as of the effective date of this section, shall have until August 1, 1999 to comply with the requirements of this section.

C. The insurer shall provide the information by electronic data interchange in a format pursuant to a schedule specified by and in a manner prescribed by the director.

D. The department shall not require an insurer to specify the vehicle identification number of a vehicle covered under a commercial vehicle policy that provides automatic coverage for additional or newly acquired vehicles until the policy's expiration date.

E. The department shall provide the notice of cancellation or nonrenewal information to all law enforcement agencies on an on-line computerized call in basis from law enforcement vehicles.

F. On cancellation or nonrenewal of a policy, an insurer shall notify the insured that the department has been notified of the cancellation or nonrenewal and that the insured's motor vehicle registration may be suspended.

G. Except as provided in section 28-4143, subsection E, information provided by an insurer to the department pursuant to this section shall be made available only to law enforcement agencies for law enforcement purposes.

§ 28-4149 Suspension; notice of intent

A. If the department determines from information provided by an insurer or department records that a motor vehicle liability policy has been cancelled or has not been renewed as provided in section 28-4148 and pursuant to a schedule prescribed by the director, the department shall send the registered owner or lessee a notice of intent to suspend the license plate and registration of the vehicle.

B. On receiving evidence of financial responsibility as prescribed in this article, the department shall immediately delete the cancellation or nonrenewal from the record.

C. If the registered owner or lessee fails to provide evidence of financial responsibility as prescribed in this section within fifteen days of the mailing date of the notice of intent to suspend the registration and license plate of the vehicle, the department shall notify the owner or lessee that the license plate and registration of the vehicle have been suspended. If the owner or lessee at a later date provides evidence that liability insurance coverage meeting the requirements of this article was in effect before the effective date of the suspension or provides evidence of compliance with section 28-4152 before the effective date of the suspension, the department shall void the suspension.

D. If the owner's or lessee's motor vehicle registration privilege and license plate are suspended, the department shall not terminate the suspension, except as provided in subsection C of this section, until proof of financial responsibility pursuant to article 1 or 2 of this chapter is filed with the department.

§ 28-4150 Effect of suspension on contract

The suspension of a motor vehicle registration pursuant to this article does not establish grounds for the rescission or invalidity of a contract or financing agreement entered into for the purchase of a motor vehicle in this state.

§ 28-4151 Reinstatement fee; motor vehicle liability insurance enforcement 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. Except as provided in subsection B of this section, this fee does not apply to a person who is required to comply with the financial responsibility requirements prescribed in article 2 of this chapter.

B. The fee prescribed in subsection A of this section applies to a person who is required to comply with the financial responsibility requirements prescribed in section 28-4033, subsection A, paragraph 2, subdivision (c).

C. The director shall deposit, pursuant to sections 35-146 and 35-147, the fees collected under this section in the motor vehicle liability insurance enforcement fund established by subsection D of this section.

D. 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, subject to legislative appropriation.

§ 28-4152 Nonoperation of vehicle on highways of this state; exception; certification

A. A vehicle owner or lessee who does not operate a vehicle on a highway of this state is not required to meet the requirements of section 28-4135 during the period in which the vehicle is not in use if the requirements of subsections B through F of this section are met.

B. Within fifteen days after receipt of a notice from the department pursuant to section 28-4148, the vehicle owner or lessee shall do one of the following:

1. Comply with the requirements of section 28-4135 and provide proof of compliance in a manner prescribed by the director.

2. Certify to the department in a manner prescribed by the department all of the following:

(a) That the vehicle is nonoperational, will be placed in storage or will not be operated on a highway of this state.

(b) The reason the vehicle is not operated on a highway of this state.

(c) That the vehicle will not be operated on a highway of this state unless the financial responsibility requirements of section 28-4135 are met and unless proof of compliance is provided to the department pursuant to this section.

C. The certification prescribed in this section does not relieve a person of any registration fees or taxes imposed by the laws of this state.

D. The person shall annually certify to the department that the motor vehicle remains nonoperational, is in storage or is not operated on a highway of this state.

E. By certifying pursuant to subsection B, paragraph 2 of this section, the vehicle owner or lessee consents to the placement of an indicator on the computer records of the department that the vehicle is not registered for operation on a highway of this state until the insurer or vehicle owner meets the requirements of subsection F of this section.

F. The department shall not remove the indicator prescribed in subsection E of this section from the registration record until either of the following occurs:

1. An insurer that is licensed to transact business in this state notifies the department pursuant to section 28-4148 that the requirements of section 28-4009 are met.

2. The department receives proof from the vehicle owner or lessee that the requirements of section 28-4135 are met.

G. On receiving notice from the court that a vehicle owner or lessee who made a certification pursuant to subsection B of this section has been convicted of a violation of section 28-4135, the owner or lessee is not eligible to certify pursuant to subsection B, paragraph 2 of this section for a one year period from the date of conviction.

§ 28-4153 False certification or affirmation; violation; classification; suspension; fees

A. A person who makes a false certification or affirms falsely to any matter or thing required by section 28-4152 to be certified or affirmed is guilty of a class 2 misdemeanor.

B. If the department has reasonable grounds to believe the registered owner of a motor vehicle registered in this state has falsely certified or affirmed any matter or thing required by section 28-4152, the department shall:

1. Suspend the registered owner's motor vehicle registration, license plate and driver license for a period of one year.

2. Send notice to the registered owner that the motor vehicle registration, license plate and driver license will be suspended fifteen days after the date the notice was mailed unless a hearing is requested.

C. The department shall not terminate the suspension until the applicant both:

1. Files with the department proof of financial responsibility pursuant to article 3 of this chapter.

2. Pays ten dollars to the department for the reinstatement of the driver license and twenty-five dollars for the reinstatement of the motor vehicle registration and license plate.

Chapter 10 Vehicle Dealers, Automotive Recyclers and Transporters

Article 1 General Provisions

§ 28-4301 Definitions

In this chapter, unless the context otherwise requires:

1. "Area of responsibility" means the area surrounding an individual dealer that the factory designates as that dealer's individual primary geographic territory for the purpose of marketing, promoting, selling and leasing new motor vehicles. In the absence of the factory designated area, the area of responsibility is that geographical area surrounding a dealer that lies closer to that dealer than to other dealers of the same line-make.

2. "Branch license" means a license that is issued by the director to a licensed motor vehicle dealer and that permits the licensee to sell motor vehicles from an established place of business within the same county but other than the original or principal place of business for which the license was issued.

3. "Broker" means a person who for any fee, commission or other valuable consideration offers to provide, provides or represents that the person will provide a service of arranging or assisting in effecting the purchase of a motor vehicle and who is not:

(a) A new motor vehicle dealer or an employee or agent of a new motor vehicle dealer.

(b) A used motor vehicle dealer or an employee or agent of a used motor vehicle dealer.

(c) A manufacturer or employee or agent of a manufacturer.

(d) An auctioneer or engaged in the auto auction business.

(e) A wholesale motor vehicle dealer.

4. "Community" means the relevant market area. For the purposes of this paragraph, "relevant market area" means the incorporated city or town in which the franchise is located.

5. "Distributor" means a person who either:

(a) Sells or distributes new motor vehicles to new motor vehicle dealers in this state.

(b) Maintains distributor representatives in this state.

6. "Distributor branch" means a branch office maintained or availed of by a distributor for either:

(a) The sale of new motor vehicles to new motor vehicle dealers in this state.

(b) Directing or supervising its representatives in this state.

7. "Established place of business":

(a) Means a permanent enclosed building or structure that is owned either in fee or leased with sufficient space to display two or more motor vehicles of a kind and type that the dealer is licensed to sell and that is devoted principally to the use of a motor vehicle dealer in the conduct of the business of the dealer.

(b) In the case of a used motor vehicle dealer, trailer dealer or semitrailer dealer:

(i) Need not be a permanent building or structure or part of a permanent building or structure.

(ii) May be a vacant lot or part of a vacant lot.

(iii) Does not mean or include a residence, tent, temporary stand or temporary quarters or permanent quarters occupied pursuant to a temporary arrangement.

(c) In the case of an automotive recycler, means a permanent site or location at which the business of an automotive recycler is or will be conducted.

8. "Exhibitor" means a manufacturer of new motor homes that exhibits new motor homes at a special event.

9. "Factory branch" means a branch office maintained or availed of by a manufacturer for either:

(a) The sale of new motor vehicles to distributors or the sale of new motor vehicles to new motor vehicle dealers in this state.

(b) Directing or supervising its representatives in this state.

10. "Financial institution" means a bank, trust company, savings and loan association, credit union, consumer lender, international banking facility or holding company that is licensed, regulated or insured by the department of insurance and financial institutions, the federal deposit insurance corporation, the office of thrift supervision, the comptroller of the currency, the national credit union share insurance fund or the national credit union administration.

11. "Franchise" means a contract between two or more persons if all of the following conditions are included:

(a) A commercial relationship of definite duration or continuing indefinite duration is involved.

(b) The franchisee is granted the right to offer, sell and service in this state new motor vehicles manufactured or distributed by the franchisor.

(c) The franchisee, as a separate business, constitutes a component of the franchisor's distribution system.

(d) The operation of the franchisee's business is substantially associated with the franchisor's trademark, service mark, trade name, advertising or other commercial symbol designating the franchisor.

(e) The operation of the franchisee's business is substantially reliant on the franchisor for the continued supply of new motor vehicles, parts and accessories.

12. "Franchisee" means a person who both:

(a) Receives new motor vehicles from the franchisor under a franchise.

(b) Offers and sells to and services new motor vehicles for the general public.

13. "Franchisor" means a person who both:

(a) Manufactures or distributes new motor vehicles.

(b) May enter into a franchise.

14. "Importer" means a person who transports or arranges for the transportation of a foreign manufactured new motor vehicle into the United States for sale in this state.

15. "Lead" means any retail consumer who satisfies all of the following:

(a) Responds to a factory-directed program that obtains consumer contact information and that provides such information to one or more dealers.

(b) Expresses an interest to the factory in purchasing, leasing or acquiring any vehicle or product, service or financing available from the dealers of that factory.

(c) Does not qualify for any reasonable factory sponsored employee, retiree or vendor new vehicle purchase program or any other reasonable similar factory new vehicle purchase program.

16. "Line-make" means those motor vehicles that are offered for sale, lease or distribution under a common name, trademark, service mark or brand name of the manufacturer of those same motor vehicles.

17. "Major component part" includes a motor vehicle or vehicle part that the manufacturer has assigned any factory, motor, serial or other identification number or mark.

18. "Manufacturer" means any person who either:

(a) Manufactures or assembles new motor vehicles.

(b) Manufactures or installs on previously assembled truck chassis special bodies or equipment that when installed forms an integral part of the new motor vehicle and that constitutes a major manufacturing alteration, excluding the installation of a camper on a pickup truck.

19. "Motor home" means a motor vehicle that is primarily designed as temporary living quarters and that:

(a) Is built onto as an integral part of, or is permanently attached to, a motor vehicle chassis.

(b) Contains at least four of the following independent life support systems if each is permanently installed and designed to be removed only for purposes of repair or replacement:

(i) A cooking facility with an onboard fuel source.

(ii) A gas or electric refrigerator.

(iii) A toilet with exterior evacuation.

(iv) A heating or air conditioning system with an onboard power or fuel source separate from the vehicle engine.

(v) A potable water supply system that includes at least a sink, a faucet and a water tank with an exterior service supply connection.

(vi) A 110-125 volt electric power supply.

20. "Motor vehicle" means an automobile, motor bus, motorcycle, truck or truck tractor or any other self-propelled vehicle, trailer or semitrailer.

21. "Motor vehicle dealer" means a new motor vehicle dealer, a used motor vehicle dealer, a public consignment auction dealer, a broker or a wholesale motor vehicle auction dealer, excluding a person who comes into possession of a motor vehicle as an incident to the person's regular business and who sells, auctions or exchanges the motor vehicle.

22. "New house trailer dealer" means a person who buys, sells, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, new house trailers or used house trailers taken in trade on new house trailers. For the purposes of this paragraph, "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.

23. "New motor vehicle" means a motor vehicle, other than a used motor vehicle, that is held either for:

(a) Sale by the franchisee who first acquired the vehicle from the manufacturer or distributor of the vehicle.

(b) Sale by another franchisee of the same line-make.

24. "New motor vehicle dealer" means a person who buys, sells, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, new motor vehicles or used motor vehicles taken in trade on new motor vehicles or used vehicles purchased for resale.

25. "Off-premises display and sales" means a promotion or sale of motor vehicles for a period of time as specified by the director that both:

(a) Is sponsored by a licensed motor vehicle dealer, the licensed motor vehicle dealer's agents or the manufacturer.

(b) Takes place at a location within the same county but not at the licensee's established place of business.

26. "Off-premises exhibition" means the exhibition of a motor vehicle for a period of time as specified by the director at a location within the same county but not at the established place of business of a licensed motor vehicle dealer and at which a solicitation or sale does not occur.

27. "Provisional automotive recycler's license" means a license that both:

(a) Is issued by the department only in conjunction with an application for an automotive recycler's license.

(b) Permits the applicant or applicants to conduct the business of an automotive recycler regulated by this chapter pending completion of the criminal records check pursuant to section 28-4361.

28. "Provisional dealer's license" means a license that both:

(a) Is issued by the department only in conjunction with an application for a dealer's license.

(b) Permits the applicant or applicants to conduct the business of a motor vehicle dealer regulated by this chapter pending completion of the criminal records check pursuant to section 28-4361.

29. "Public consignment auction dealer" means a person who at the public consignment auction dealer's established place of business or at an authorized off-premises location pursuant to the requirements of section 28-4401 is in the business of both of the following:

(a) Conducting live auctions with a licensed auctioneer verbally calling for and accepting bids.

(b) Providing live auction services to the public on a consignment contract basis.

30. "Retail consumer" means any person purchasing, leasing or acquiring or possibly purchasing, leasing or acquiring a vehicle or product, service or financing not for resale.

31. "Service" means any service that is sold, leased or provided to retail consumers and that directly relates to the ownership or leasing of a new or used motor vehicle, including extended service contracts or motor vehicle warranty and nonwarranty repairs or maintenance, including both parts and labor.

32. "Special event" means an exhibition of new motor homes by a motor vehicle dealer licensed to sell new motor homes or an exhibitor for a period of time specified by the director at a location in this state other than the licensee's or exhibitor's established place of business.

33. "Used motor vehicle" means a motor vehicle that has been sold, bargained, exchanged or given away or the title to the motor vehicle has been transferred from the person who first acquired the vehicle from the manufacturer, or importer, dealer or agent of the manufacturer or importer, and that has been placed in bona fide consumer use. For the purposes of this paragraph, "bona fide consumer use" means actual operation by an owner who acquired a new motor vehicle both:

(a) For use in the owner's business or for pleasure or otherwise.

(b) For which a certificate of title has been issued or that has been registered as provided by law.

34. "Used motor vehicle dealer" means a person, other than a new motor vehicle dealer, who buys, sells, auctions, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, seven or more used motor vehicles in a continuous twelve month period. Used motor vehicle dealer does not include a wholesale motor vehicle auction dealer or a public consignment auction dealer.

35. "Wholesale motor vehicle auction dealer" means a person who both:

(a) Is in the business of providing auction services solely in wholesale transactions to motor vehicle dealers licensed by this state or any other jurisdiction.

(b) Does not buy, sell or own the motor vehicles the auction dealer auctions in the ordinary course of business.

36. "Wholesale motor vehicle dealer" means a person who sells used motor vehicles only to licensed motor vehicle dealers.

§ 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 filing 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, except that if a dealer has a contractual relationship with a third-party lender, the fee is four hundred dollars, of which three hundred dollars shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund and one hundred dollars in the state highway fund.

4. For each continuation of a dealer's license if issued annually, one hundred dollars, except that if a dealer has a contractual relationship with a third-party lender, the fee is two hundred fifty dollars, of which one hundred fifty dollars shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund and one hundred dollars in the state highway fund.

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, for a motor vehicle show 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 deposit, pursuant to sections 35-146 and 35-147, fees collected under this section in the Arizona highway user revenue fund.

§ 28-4303 Administration

The director shall supervise and regulate all persons required by this chapter to be licensed. In the supervision and regulation required by this section, the director may:

1. Investigate as the director deems necessary and for that purpose the director may require the aid and assistance of the highway patrol division.

2. Conduct hearings.

3. Compel the attendance of witnesses at the hearings.

§ 28-4304 Dealer and registration monies; deposit

Monies collected by the director for the following shall be deposited in the state highway fund established by section 28-6991:

1. Civil penalties and vehicle registration reinstatements pursuant to this chapter.

2. Each filing or continuation of a dealer's, manufacturer's, distributor's, importer's, factory branch's, distributor branch's, automotive recycler's or dealer's branch license pursuant to section 28-4302.

3. Each filing for an application for an off-premises exhibition permit or an off-premises display and sales permit.

§ 28-4306 Jurisdiction; service of process; arbitration; venue

A. A court of this state may exercise jurisdiction over a manufacturer, corporation, importer or distributor that has been granted a license under this chapter with respect to any conduct of the manufacturer, corporation, importer or distributor in this state. In addition to any other method provided by rule or statute, personal jurisdiction over a manufacturer, corporation, importer or distributor may be acquired in a civil action or proceeding instituted in a court by service of process in the manner provided in this section.

B. If a manufacturer, corporation, importer or distributor is not a resident of this state and engages in any business in this state, the manufacturer, corporation, importer or distributor shall designate an agent or the director on whom service of process may be made in this state. The agent shall be a resident of this state or a corporation authorized to do business in this state. The manufacturer, corporation, importer or distributor shall make the designation in writing and file it with the director. If process cannot be served in this state on the designated agent, process may be served on the director, but the plaintiff or petitioner shall immediately mail a copy of the process and pleading by certified mail to the defendant or respondent. Service of process is complete with service on the director.

C. The defendant or respondent shall appear and answer within thirty days after completion of service on the director in the manner and under the same penalty as if the defendant or respondent had been personally served with the summons or other process.

D. The plaintiff or petitioner shall file an affidavit of compliance with this section with the clerk of the court within the time the court allows if process was served to the director.

E. Notwithstanding any provision of a franchise, if a manufacturer or distributor requires a new motor vehicle dealer to submit a dispute covered by this chapter or any other law to arbitration or mediation, the time for the dealer to file a complaint, action, petition or protest is stayed until the mediation or arbitration proceeding is complete.

F. If an arbitration proceeding is required pursuant to a provision in a franchise, venue for the arbitration proceeding shall be in this state and the arbitration proceeding shall be governed by the laws of this state. The venue prescribed by this subsection shall not be modified by contract.

§ 28-4307 Civil damages

A dealer who suffers a pecuniary loss or who is otherwise adversely affected because of a violation of this chapter by a manufacturer or distributor has a cause of action against the manufacturer or distributor for damages and may recover those damages in any court of competent jurisdiction.

§ 28-4308 Prohibition; applicability

A. A manufacturer, distributor, factory branch, distributor branch, motor vehicle dealer or automotive recycler shall not engage in business except in accordance with the requirements of law.

B. This chapter does not apply to:

1. A public officer engaged in the discharge of the officer's official duties.

2. Any trustee, receiver or other officer acting under the jurisdiction of a court.

3. A financial institution disposing of a repossessed vehicle.

4. A person disposing of the person's personal vehicles.

5. A self-service storage facility disposing of a vehicle pursuant to section 33-1704.

6. An owner of a classic car, as defined in section 28-2483, or a historic vehicle, as defined in section 28-2484, if both of the following apply:

(a) The owner sells the classic car or historic vehicle.

(b) The classic car or historic vehicle is titled in the owner's name in this state before December 31, 2005.

C. The provisions of this chapter regulating and licensing manufacturers, distributors, factory branches, distributor branches and franchisors only apply to those manufacturers, distributors, factory branches, distributor branches and franchisors of passenger cars, trucks, buses, motorcycles, trailers and semitrailers.

D. Sections of this chapter that:

1. Refer to a motor vehicle dealer apply to a new house trailer dealer.

2. Refer to a motor vehicle dealer apply to a used house trailer dealer as defined in section 28-4332.

Article 2 Licensing Requirements

§ 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 37, article 4.

B. The cash deposit or bond posted by the person pursuant to section 41-4029 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 may suspend or cancel the license issued pursuant to title 41, chapter 37, article 4 pursuant to this chapter. On issuing a final order cancelling or suspending a license issued pursuant to section 41-4026, the director of the department of transportation shall notify the director of the Arizona department of housing who shall require the surrender of the license.

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 37, article 4. The director of the Arizona department of housing shall notify the director of the department of transportation 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.

§ 28-4333 Licensing requirement; exemptions

A. A new motor vehicle shall not be sold in this state unless either the manufacturer on direct dealerships of domestic vehicles, the importer of foreign manufactured vehicles on direct dealerships or the distributor on indirect dealerships of either domestic or foreign vehicles is licensed as provided in this chapter. Obtaining the license conclusively establishes that the manufacturer, distributor or importer is subject to the laws of this state regulating manufacturers, importers and distributors.

B. An organization that has qualified for an exemption from taxation of income under section 501 of the internal revenue code may sell a donated used motor vehicle without obtaining a license under this chapter, subject to the following:

1. The nonprofit organization shall maintain the tax-exempt status until any monies received from the sale of the used motor vehicle have been expended and a member, director, officer, employee or agent of the nonprofit organization shall not receive any direct or indirect pecuniary benefit from the sale of the used motor vehicle.

2. The nonprofit organization shall sell the used motor vehicle by assignment using a licensed motor vehicle dealer.

3. Notwithstanding section 28-2058, the nonprofit organization is not required to obtain a new certificate of title or registration for the donated motor vehicle but shall assign the certificate of title to the licensed motor vehicle dealer for ultimate assignment to the retail purchaser of the motor vehicle.

4. The nonprofit organization shall maintain the motor vehicle financial responsibility requirements prescribed by chapter 9, article 4 of this title if operating the motor vehicle including operating the motor vehicle to the place of assignment.

5. The nonprofit organization may operate the donated motor vehicle to the place of assignment without purchasing the one trip registration permit required by section 28-2155.

C. Notwithstanding any other provision of this chapter, a person who receives or does not receive consideration for providing a purchaser the opportunity to purchase a motor vehicle from a licensed new motor vehicle dealer at a price that does not exceed a certain amount is not required to be licensed as a motor vehicle dealer or broker under this chapter if the person does not participate in the negotiation of the actual price paid, the delivery terms or any other terms related to the purchase of the vehicle.

§ 28-4334 License requirement; established place of business; unimproved lots and premises; violation; classification

A. Except as provided in sections 28-4335, 28-4401 and 28-4402, a person shall not engage in any business regulated by this chapter except from an established place of business and unless the person has obtained from the director a license authorizing the person to engage in the business.

B. A licensee may use unimproved lots and premises or parts of unimproved lots and premises for the storage of motor vehicles or for the storage of motor vehicle parts or accessories if the lots or premises are located in the county in which the licensee has an established place of business.

C. A person who violates subsection A of this section is guilty of a class 1 misdemeanor.

§ 28-4335 Wholesale motor vehicle dealer or broker

A. A wholesale motor vehicle dealer or a broker:

1. Is required to be licensed pursuant to this chapter and pay fees pursuant to section 28-4302.

2. Is required to be a legal resident of this state.

3. Is not required to operate from an established place of business.

4. Shall maintain a place of business in which records of the business are kept.

B. If the licensee is a broker, the principal place of business shall not be a location that is zoned for residential use.

§ 28-4336 Separate licenses and permits

A. A branch licensee shall obtain a separate branch license for each place of business at which a licensee transacts business other than the original or principal place of business.

B. A motor vehicle dealer licensee shall obtain a separate permit for and display the separate permit at each location other than the licensee's established place of business at which the licensee conducts an off-premises exhibition, an off-premises display and sales or a special event.

C. An exhibitor shall obtain a separate permit for and display the separate permit at each location at which the exhibitor conducts a special event.

Article 3 Licensing Procedures

§ 28-4361 License application; criminal records check; education and training

A. A person shall apply for a license to the director in writing on forms prescribed by the director. The person shall include with the application all documents and bonds required and the annual license fees prescribed by section 28-4302.

B. The application shall be verified and shall contain:

1. The name and residence of either:

(a) The applicant.

(b) If the applicant is a partnership, each partner.

(c) If the applicant is a corporation, each principal officer, director, agent or stockholder who owns twenty percent or more of the corporation and the name of the state in which the corporation was organized.

2. The principal place of business of the applicant.

3. The established place of business or the place of business at or from which the applicant will conduct the business.

4. The make or makes of new motor vehicles, if any, that the applicant will sell or offer for sale in this state.

5. The business hours of the applicant.

6. Other information that the director requires.

C. Each applicant who owns twenty percent or more of an entity, and each partner or stockholder who owns twenty percent or more of an entity, and who seeks a new license shall provide:

1. A full set of fingerprints to the department of transportation for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

2. A nonrefundable fee to be paid to the department of public safety for the criminal records check.

D. If a licensee adds or changes a partner or stockholder who owns twenty percent or more of the entity and who was not included in the criminal records check on a prior application, the licensee shall notify the department within thirty days of the change. At the time of notification, an application and, if applicable, a full set of fingerprints and the fee for a criminal records check shall be submitted to the department. If any individual who is added or changed by the licensee is found to be ineligible pursuant to section 28-4365, the director, on completion of the criminal records check, shall advise the licensee and the individual in writing that the license will be revoked, unless the individual is removed from the position, and of the grounds for the action.

E. The requirement for a criminal records check:

1. Does not apply to a manufacturer, importer, factory branch or distributor or a person who is under eighteen years of age on the date the application is filed with the department.

2. May not apply if the application is for a subsequent license and each applicant who owns twenty percent or more of an entity, and each partner or stockholder who owns twenty percent or more of an entity, either:

(a) Have submitted to a criminal records check during the past five years.

(b) Are currently licensed under this section.

3. Does not apply to a new motor vehicle dealer who has paid fees pursuant to section 28-4302.

F. The director may establish education and training for a person applying for an initial or a renewal of a used motor vehicle dealer or wholesale motor vehicle dealer license pursuant to this section. The director may contract with a private entity to provide the education and training established under this subsection. The private entity that contracts with the director pursuant to this subsection may charge a fee for the education and training.

§ 28-4362 Application; fee; bond

Applications shall be accompanied by:

1. The filing fees prescribed in section 28-4302, and each licensee shall pay the annual license fee prescribed in section 28-4302.

2. A bond that:

(a) Is in a form to be approved by the director.

(b) Is in an amount prescribed by the director of at least twenty thousand dollars for an automotive recycler's license and not more than one hundred thousand dollars for all other licenses.

(c) Is executed by a surety company authorized to transact business in this state as surety on the bond with the applicant as principal obligor on the bond and the state as obligee.

(d) Is cancellable only on at least sixty days' prior notice to the director.

(e) Inures to the benefit of a person who suffers loss because of either:

(i) Nonpayment by the dealer of customer prepaid title, registration or other related fees or taxes.

(ii) The automotive recycler's or the dealer's failure to deliver in conjunction with the sale of a vehicle a valid vehicle title certificate free and clear of any prior owner's interests and all liens except a lien created by or expressly assumed in writing by the buyer of the vehicle.

3. A copy of the dealer's current transaction privilege tax license.

§ 28-4363 Franchises; filing agreement; violation; classification

A. At the time a franchisee applies for a license, the franchisee shall file with the director a certified copy of the franchisee's written agreement with the manufacturer and a certificate of appointment as dealer or distributor.

B. The certificate of appointment shall be signed as follows:

1. By an authorized agent of the manufacturer of domestic vehicles on direct manufacturer-dealer agreements.

2. If the manufacturer is wholesaling through an appointed distributorship, by an authorized agent of the distributor on indirect distributor-dealer agreements.

3. By an authorized agent of the importer on direct importer-dealer agreements of foreign made vehicles.

4. By an authorized agent of the distributor on indirect distributor-dealer agreements.

5. For a distributor's certificate of appointment, by an authorized agent of the manufacturer of domestically manufactured vehicles or by an authorized agent of the manufacturer or importer of foreign made vehicles.

C. A franchisee is not required to file a written agreement or certificate of appointment if the manufacturer on direct dealerships, the distributor on indirect dealerships or the importer on direct dealerships meets all of the following conditions:

1. Utilizes the identical basic agreement for all of its franchised dealers or distributors in this state.

2. Certifies in the certificate of appointment that this blanket agreement is on file and the written agreement with the dealer or distributor, respectively, is identical with the filed blanket agreement.

3. Has filed with the director one such agreement together with a list of franchised dealers or distributors.

D. The manufacturer, distributor or importer shall notify the director at least forty-five days before any proposed revisions of or additions to the basic agreement on file or of any franchisee supplements to the agreement.

E. A manufacturer, other than a manufacturer of a recreational vehicle as defined in section 41-4001, shall not modify a franchise during the term of the franchise or on the renewal of a franchise if the modification substantially and adversely affects the new motor vehicle dealer's rights, obligations, investment or return on the investment without giving at least forty-five days' notice of the proposed modification to the new motor vehicle dealer unless the change is required by law. Within the forty-five day period, the new motor vehicle dealer may file with the director and serve notice on the manufacturer of an objection requesting a determination pursuant to article 5 of this chapter of whether there is good cause for permitting the proposed modification.

F. Annual renewal of certificates filed as provided in this section is not required.

G. A manufacturer on direct dealerships, a distributor on indirect dealerships or an importer on direct dealerships who has filed with the director an agreement used by all of its franchisees in this state together with a list of all such franchisees and who knowingly fails to notify the director at least forty-five days before any proposed revisions, changes or additions to the materials filed is guilty of a class 2 misdemeanor.

§ 28-4364 Investigations; inspections

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, physically or through an alternate method established by the director, 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 director may approve an application for a provisional dealer's or automotive recycler's license pending completion of the criminal records check pursuant to section 28-4361 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.

§ 28-4365 Action on application; denial; immunity from costs

A. Within twenty days after completion of the criminal records check, the director shall approve or deny the application for the issuance of a license. If the application is denied, the director shall advise the applicant in writing of the denial and the grounds for the denial.

B. The director may deny an application for a license if:

1. An individual included in the application made a misrepresentation, omission or misstatement in the application to conceal a matter that may cause the application to be denied.

2. An individual included in the application has been convicted of fraud or an auto related felony in a state, territory or possession of the United States or a foreign country within the ten years immediately preceding the date the criminal records check is complete.

3. An individual included in the application has been convicted of a felony, other than a felony described in paragraph 2 of this subsection, in a state, territory or possession of the United States or a foreign country within the five years immediately preceding the date the criminal records check is complete.

4. An individual in the application does not meet the requirements of law or the requirements of a rule adopted by the director pursuant to law.

5. Within five years preceding the application, an individual included in the application has had a similar license suspended, revoked or cancelled in this or any other state.

C. The individual whose information is found to be a misrepresentation, omission or misstatement is not eligible to reapply for a license for twelve months from the date of denial.

D. The department or its employees are not liable for any costs incurred by an applicant seeking licensure under this chapter.

§ 28-4366 Hearing on application; appeal

A. Within thirty days after receipt of the notice of denial, the applicant may petition the director in writing for a hearing on the application. On filing the petition, the director shall fix a date for the hearing.

B. The applicant has the right to be present at the hearing, to testify in the applicant's own behalf and to have other persons as the applicant desires be present and testify at the hearing.

C. The director shall issue subpoenas to the persons the applicant requests, requiring them to be present and to testify at the hearing.

D. A transcript of the testimony of all witnesses taken at the hearing shall be made and preserved.

E. Within ten days after the hearing, the director shall make written findings of fact and conclusions and shall either grant or finally deny the application.

F. If the application is finally denied, the applicant, within thirty days from the date of final denial, may appeal to the superior court in Maricopa county. The action shall be tried as other civil actions and shall be conducted as a trial de novo.

Article 4 Vehicle Dealer Requirements and Restrictions

§ 28-4401 Off-premises exhibition, off-premises display and sales and special event permits; parking motor vehicle for sale on public property; prohibition; defaced vehicle identification number; mandatory immobilization or impoundment

A. A licensed motor vehicle dealer may conduct an off-premises exhibition, an off-premises display and sales or a special event by permit.

B. An Arizona franchised new car dealer association may conduct a motor vehicle show by permit.

C. An exhibitor that does not have a licensed franchised dealer in this state may conduct a special event by permit. An exhibitor that has a licensed franchised dealer in this state is limited to participating in a special event through the exhibitor's licensed dealer. A licensed motor vehicle dealer or an exhibitor shall not make a solicitation or sale at a special event.

D. An applicant for an off-premises exhibition, an off-premises display and sales or a special event permit shall submit proof to the department that the proposed site is in compliance with local zoning ordinances.

E. An off-premises exhibition permit, display and sales permit or special event permit is not assignable.

F. A special event shall not be held at the same location at which an off-premises exhibition or an off-premises display and sale are held.

G. Except as otherwise provided in this section, a motor vehicle dealer or person acting as a motor vehicle dealer shall not park a motor vehicle for the primary purpose of displaying the vehicle for sale or for transfer of ownership on any of the following:

1. A public street or highway.

2. A public parking lot.

3. Any other public property.

4. Any private property if the public may lawfully drive a motor vehicle on the property. This paragraph does not apply if the property is a motor vehicle dealer's lot and the motor vehicle that is parked on the property is in the motor vehicle dealer's inventory.

H. A vehicle that is displayed for sale with a vehicle identification number that has been destroyed, removed, covered, altered or defaced is subject to mandatory vehicle immobilization or impoundment pursuant to section 28-3511.

§ 28-4402 Recreational vehicles; public events; permits

A. A motor vehicle dealer who is licensed to sell only recreational vehicles as defined in section 28-3102 and who is the only franchisee for that line-make in the county in which the motor vehicle dealer is licensed may exhibit and sell those recreational vehicles at a fair or similar public event in an adjacent county by permit if a franchisee for that line-make is not licensed in the adjacent county.

B. A licensed motor vehicle dealer may display and sell motor vehicles during a public event for a limited period of time, not to exceed ten days in any one calendar year, outside of the county in which the licensed motor vehicle dealer has an established place of business if the display and sales take place in an incorporated city or town whose boundaries include territory within two counties and the licensed motor vehicle dealer's established place of business is in one of the two counties. Before any display or sales, the licensed motor vehicle dealer shall obtain a permit from the department and shall submit proof to the department that the proposed site is in compliance with local zoning ordinances.

§ 28-4403 Record requirements; motor vehicle information; inspection; liability; electronic submission

A. A licensee shall keep and maintain at the licensee's established place of business, or place of business if the licensee is a broker or a wholesale motor vehicle dealer, a permanent record in the form prescribed by the director. The permanent record may be in an electronic format and shall contain:

1. A particular description of each motor vehicle of a type subject to registration under the laws of this state that is bought, sold, brokered or exchanged by the licensee or received or accepted by the licensee for sale, brokering or exchange.

2. A particular description of each used motor vehicle body or chassis that is sold or otherwise disposed of.

3. A particular description of each motor vehicle that is bought or otherwise acquired and wrecked by the licensee.

4. 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 it was purchased or acquired.

5. 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 it was sold or disposed of and a sufficient description of the vehicle, body or chassis by name or identifying number or otherwise to identify it.

B. A licensed automotive recycler that has a vehicle in the automotive recycler's inventory shall:

1. At the same time have possession of a duly and regularly assigned salvage certificate of title, nonrepairable vehicle certificate of title or dismantle certificate of title to the vehicle.

2. Not offer for sale or sell a vehicle unless a salvage certificate of title, nonrepairable vehicle certificate of title or dismantle certificate of title to the vehicle has been obtained.

C. Each motor vehicle dealer shall give the customer a written or electronic contract and shall maintain a copy of the contract for three years at the dealer's established place of business.

D. Each record required by this section and all inventories relating to the records of a licensee shall be available at all times for physical inspection by agents of the department or members of the highway patrol division. The agents or members may enter on premises where the records or inventories are located during normal business hours for purposes of the inspection. The licensee or any designated employee or agent may accompany any person making the inspection while the person is on the licensee's premises.

E. The licensee is only liable to a person making an inspection under this section for an injury arising out of the condition of the premises that occurs while the person is on the licensee's premises if the licensee knowingly allows the person to encounter a hidden peril or wantonly or wilfully causes the person harm.

F. A wholesale motor vehicle dealer shall submit electronically to the department any documents that are requested by the department during the wholesale motor vehicle dealer's reported business hours and that are prescribed in this section. The wholesale motor vehicle dealer shall submit the requested documents within forty-eight hours after the request is transmitted.

§ 28-4404 Record requirements; vehicles and parts; electronic submission; violation; 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. Authorized representatives of the department of transportation or any law enforcement agency 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. Beginning January 1, 2014, a wholesale motor vehicle dealer shall submit electronically to the department any documents that are requested by the department during the wholesale motor vehicle dealer's reported business hours and that are prescribed in this section. The wholesale motor vehicle dealer shall submit the requested documents within forty-eight hours after the request is transmitted.

G. 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.

§ 28-4405 Display of license; continuation date; late penalty

A. A license issued under this chapter:

1. Shall be conspicuously displayed in either:

(a) The established place of business for which it was obtained.

(b) The place of business if the licensee is a broker or a wholesale vehicle dealer.

2. Is not transferable or subject to sale or reassignment.

B. The director may issue licenses with staggered continuation dates to distribute the continuation workload as uniformly as practicable throughout the twelve months of the calendar year. In order to initiate a staggered license continuation system, the director may issue a license for more or less than a twelve-month period, but not more than eighteen months, and may prorate the license fee.

C. A motor vehicle dealer licensee shall submit its renewal application, evidence of its current transaction privilege tax license and applicable renewal fees to the department of transportation on or before the license continuation date. For the purposes of renewal, the license continuation date is as follows:

1. If the motor vehicle dealer is also a licensed dealer pursuant to title 44, chapter 2.1, the date prescribed by the initial licensing department, either the department of transportation or the department of insurance and financial institutions.

2. If the motor vehicle dealer is not also a licensed dealer pursuant to title 44, chapter 2.1, the date prescribed by the department of transportation.

D. If a licensee fails, neglects or refuses to pay the required fee for the ensuing year on or before the license continuation date, the fee is delinquent and a penalty equal to the fee shall be added to the fee and collected.

§ 28-4406 Sign requirements

A. Each motor vehicle dealer and automotive recycler shall erect and maintain at the entrance to the motor vehicle dealer's or automotive recycler's established place of business a permanent sign indicating that the business of a motor vehicle dealer or automotive recycler is conducted at or from the premises. The sign shall be legible at a distance of at least three hundred feet during daylight.

B. A wholesale motor vehicle dealer or broker shall erect and maintain at the entrance of the wholesale motor vehicle dealer's or broker's principal place of business a permanent sign indicating that the business of a wholesale motor vehicle dealer or broker is conducted at or from the premises.

§ 28-4407 Business hours; notice of change

Each person issued a license pursuant to this chapter shall:

1. Include business hours on each renewal application.

2. Provide written notice of any change in business hours to the director at least ten days before the change to the hours.

§ 28-4408 Change in place of business

Before a licensee moves from one established place of business to another, or from one place of business to another if the licensee is a broker or a wholesale motor vehicle dealer, the licensee shall apply to and obtain consent to the removal from the director.

§ 28-4409 Evidence of ownership requirement; exception

A. Except as provided in section 28-4410:

1. Each dealer in motor vehicles, trailers and semitrailers, including manufacturers who sell to other than dealers, having possession of or offering for sale a motor vehicle, trailer or semitrailer shall have at the same time either:

(a) Possession of a duly and regularly assigned certificate of title to the vehicle.

(b) Reasonable indicia of ownership or right of possession as approved by the director.

2. A dealer or manufacturer shall not offer for sale or sell a motor vehicle, trailer or semitrailer until the dealer or manufacturer has obtained a certificate of title to the motor vehicle, trailer or semitrailer, except that a certificate of title is not required for a new motor vehicle sold by manufacturers to dealers.

B. A wholesale motor vehicle auction dealer is exempt from the requirement of having to possess a duly and regularly assigned certificate of title and from other requirements relating to the reassignment of certificate of title documents and disclosures to buyers. A wholesale motor vehicle auction dealer may buy or sell a motor vehicle at wholesale in the wholesale motor vehicle auction dealer's own name if the wholesale motor vehicle auction dealer complies with the provisions of this title relating to certificates of title, reassignments of certificate of title documents and disclosures to buyers.

C. A wholesale motor vehicle dealer must apply for a certificate of title in the name of the wholesale motor vehicle dealer any vehicle that the wholesale motor vehicle dealer acquires before the wholesale motor vehicle dealer transfers the vehicle to another licensed motor vehicle dealer.

§ 28-4410 Consignment contracts; definitions

A. A dealer in motor vehicles, trailers and semitrailers may possess and offer for sale a motor vehicle, trailer or semitrailer without having a duly or regularly assigned certificate of title or title transfer form in the dealer's possession if the dealer possesses all of the following:

1. A consignment contract or dealer acquisition contract.

2. The most recent registration card for the vehicle.

3. A statement by the lienholder disclosing all unsatisfied liens, if applicable.

B. A dealer may complete the sale of a motor vehicle, trailer or semitrailer offered for sale under subsection A of this section when the dealer possesses verification that all liens on the motor vehicle, trailer or semitrailer have been satisfied by the dealer or assumed by the purchaser.

C. A dealer who offers a vehicle for sale on consignment shall inform a prospective customer that the vehicle is on consignment to the dealer.

D. The director shall adopt rules on the minimum form and content of consignment contracts and dealer acquisition contracts.

E. This chapter does not allow the consignment of motor vehicles from one licensee to another licensee.

F. A dealer in motor vehicles, trailers or semitrailers may offer for sale or sell a motor vehicle, trailer or semitrailer without having a duly or regularly assigned certificate of title in the dealer's possession if the dealer possesses a complete photocopy of the duly or regularly assigned certificate of title, the original of which has been delivered to a financial institution or a subsidiary of the financial institution pursuant to an inventory financing arrangement.

G. For the purposes of this section:

1. "Consignment contract" means an agreement executed by both the owner of a vehicle and a licensed motor vehicle dealer pursuant to which the vehicle is delivered to the dealer to sell for the owner.

2. "Dealer acquisition contract" means an agreement that both:

(a) Is executed by both the owner of a vehicle, the certificate of title for which is in possession of a lienholder in accordance with the laws of this state or another state, and a licensed motor vehicle dealer.

(b) Transfers ownership of the vehicle described in subdivision (a) of this paragraph to a licensed dealer from a person other than a manufacturer, distributor, franchisor or dealer.

3. "Inventory financing arrangement" means an agreement under which a dealer grants a security interest to a financial institution under the provisions of title 47, chapter 9.

§ 28-4410.01 Public consignment auction dealers; exemptions; notices; requirements; penalties; payment of taxes; wholesale motor vehicle dealer prohibition

A. A public consignment auction dealer is exempt from the following:

1. An implied warranty of merchantability described in section 28-4412, subsection B and section 44-1267.

2. An emissions inspection pursuant to section 49-542, subsection D.

B. A public consignment auction dealer shall post at the public consignment auction dealer's established place of business a sign indicating that the public consignment auction dealer is exempt from the provisions described in subsection A of this section.

C. A public consignment auction dealer, on transferring a motor vehicle by sale, shall provide written notice to the department of transportation and the department of revenue within fifteen days after the transfer on a form jointly prescribed by the directors of the departments that includes:

1. The date of the transfer.

2. The name and address of the seller.

3. The name and address of the purchaser.

4. The vehicle identification number of the motor vehicle.

5. The make and model of the motor vehicle.

6. The successful bid price and any premiums or commissions paid associated with the auction of the motor vehicle.

7. Notice as to whether the vehicle is a salvage vehicle.

D. A public consignment auction dealer who fails to provide written notice to the department within fifteen days after transferring a motor vehicle, as prescribed by subsection C of this section, shall pay the department a penalty of eight dollars for the first month and four dollars for each additional month that the notice is not provided, not to exceed a total of one hundred dollars.

E. A public consignment auction dealer, on transferring a motor vehicle by sale, shall give written notice to the purchaser at the time of delivery of the motor vehicle to the purchaser in the form of an invoice or on a form prescribed by the director that includes:

1. The date of the transfer.

2. The vehicle identification number of the motor vehicle.

3. The make and model of the motor vehicle.

4. The successful bid price and any premiums or commissions paid associated with the auction of the motor vehicle.

5. Notice as to whether the vehicle is a salvage vehicle.

F. A public consignment auction dealer shall keep and maintain at the public consignment auction dealer's established place of business a permanent record in a form prescribed by the director. The permanent record shall include the information prescribed by subsection C of this section and contain a description of all motor vehicle transfers and sales. The public consignment auction dealer shall make the permanent record available for inspection by the department of transportation, the department of revenue or any peace officer.

G. A public consignment auction dealer shall do all of the following:

1. Inform the purchaser of a motor vehicle that the purchaser is responsible for the emission inspection requirements described in section 49-542, subsection D.

2. Comply with the consignment contract requirements prescribed in section 28-4410 if the motor vehicle is acquired from a person other than a licensee, except that the public consignment auction dealer shall obtain documentation that shows that the seller of the vehicle is the legal owner of the vehicle.

3. Comply with the requirements of section 28-4409 relating to evidence of ownership if the motor vehicle is acquired from another licensee.

4. Comply with the requirements of section 28-2091 relating to salvage certificates of title.

H. If a public consignment auction dealer violates this section, the director may do either of the following:

1. Suspend or cancel the dealer's license.

2. Impose a civil penalty of at least one thousand dollars but not more than three thousand dollars as prescribed in this section or in section 28-4501.

I. This section does not exempt a public consignment auction dealer from any transaction privilege tax imposed pursuant to title 42, chapter 5.

J. A wholesale motor vehicle dealer shall not sell motor vehicles to a public consignment auction dealer.

§ 28-4411 Damage to new motor vehicles; disclosure; definition

A. Except as provided in subsection B:

1. A manufacturer shall disclose in writing to a new motor vehicle dealer damage to a new motor vehicle delivered to the dealer if the damage is known to the manufacturer and repaired, the damage occurred after the manufacturing process is complete but before delivery to the dealer and the damage exceeds three per cent of the manufacturer's suggested retail price as calculated at the rate of the dealer's authorized warranty rate for labor and parts.

2. A new motor vehicle dealer shall disclose in writing to a purchaser of the new motor vehicle before entering into a sales contract that the new motor vehicle has been damaged and repaired if the damage to the new motor vehicle exceeds three per cent of the manufacturer's suggested retail price as calculated at the rate of the dealer's authorized warranty rate for labor and parts.

B. Disclosure is not required for any glass, tires or bumper of a new motor vehicle if the damaged item has been replaced with original or comparable equipment.

C. If disclosure is not required under this section, a purchaser may not revoke or rescind a sales contract due solely to the fact that the new motor vehicle was damaged and repaired before completion of the sale.

D. For purposes of this section, "manufacturer's suggested retail price" means the retail price of the new motor vehicle suggested by the manufacturer, including the retail delivered price suggested by the manufacturer for each accessory or item of optional equipment physically attached to the new motor vehicle at the time of delivery to the new motor vehicle dealer that is not included within the retail price suggested by the manufacturer for the new motor vehicle.

§ 28-4412 Guaranty disclosure; used motor vehicles; definition

A. Before the consummation of the sale of a used motor vehicle, a motor vehicle dealer shall:

1. Provide each purchaser with a written statement that:

(a) Indicates whether or not an express warranty or guaranty is associated with the used motor vehicle.

(b) Is distinguished from the body of the sales agreement through the use of either bold-faced type or bold-faced type of a color other than that used in the body of the agreement.

(c) States "as is — not expressly warranted or guaranteed", if the used motor vehicle to be sold is not expressly warranted or guaranteed.

(d) Explicitly states the nature and extent of the express warranty or guaranty, if the used motor vehicle to be sold is expressly warranted or guaranteed.

(e) States "as is — not guaranteed to pass vehicle emissions inspection. Vehicle not eligible for certificate of waiver and must be repaired to meet emissions standards", if the used motor vehicle is a disabled vehicle that is offered for sale at a wholesale public auction with an auctioneer who is a licensed used motor vehicle dealer and if the vehicle does not comply with the requirements prescribed in section 49-542.

2. Direct the purchaser's attention to the written statement.

B. This section does not negate any implied warranties otherwise applicable to the sale of a used motor vehicle, including the implied warranty of merchantability described in section 44-1267.

C. Notwithstanding any other provision of this section or title 12, chapter 6, article 9, a motor vehicle dealer that sells a used motor vehicle to another motor vehicle dealer or for the sole purpose of being legally destroyed or dismantled does not have a duty to inspect a used motor vehicle for defects or damage before the sale. This subsection does not negate any duties owed by a licensed motor vehicle dealer to its retail customers.

D. For the purposes of this section, "disabled vehicle" means a motor vehicle that cannot operate on its own motive power.

§ 28-4413 Prohibiting ownership, operation or control of a warranty service facility; exception; objections

A. A manufacturer, factory branch, distributor or distributor branch or a subsidiary of a manufacturer, factory branch, distributor or distributor branch shall not directly or indirectly own, operate or control, except on an emergency or interim basis, a new motor vehicle warranty service facility that is located in this state and that is not part of a franchise dealership.

B. Subsection A does not apply in a community or county in which a dealer is not available to perform required warranty repairs or if an existing dealer is unable or unwilling to perform the warranty repairs required by the manufacturer. If subsection A does not apply pursuant to this subsection, a dealer may object to a manufacturer, factory branch, distributor or distributor branch or a subsidiary of a manufacturer, factory branch, distributor or distributor branch directly or indirectly owning, operating or controlling a new motor vehicle warranty service facility as provided in article 5 of this chapter.

§ 28-4414 Alternative fuel vehicles; definition

A. A new motor vehicle dealer shall make available to the public information on alternative fuel vehicles and incentives in this state for purchasing or leasing alternative fuel vehicles.

B. For the purposes of this section, "alternative fuel" has the same meaning prescribed in section 1-215.

§ 28-4415 Advertising

A. A broker shall not advertise or offer for sale or exchange any specific motor vehicle.

B. A motor vehicle dealer shall not advertise or offer for sale or exchange any specific motor vehicle unless one of the following applies:

1. The motor vehicle is for sale and located at the motor vehicle dealer's established place of business.

2. The motor vehicle dealer discloses in the advertisement the specific street address and business hours where the motor vehicle may be inspected by a retail consumer.

3. The motor vehicle is available to the motor vehicle dealer directly from the manufacturer or distributor of the motor vehicle at the time of the advertisement or offer.

C. A broker or motor vehicle dealer may advertise the broker's or motor vehicle dealer's service of arranging or assisting in effecting the purchase of a new motor vehicle from a new motor vehicle dealer and specify the line makes and models of the new vehicles.

D. A broker may not advertise the price of or payment terms for any motor vehicle. A broker shall disclose that the advertiser is a broker and shall clearly and conspicuously state the following:

All motor vehicles arranged for sale are subject to price and availability from the selling motor vehicle dealer.

§ 28-4416 Deposits

A broker shall only accept a purchase deposit that is made payable to a motor vehicle dealer. A broker shall not accept a purchase deposit relating to the sale of a motor vehicle unless the motor vehicle is available to the broker at the broker's licensed place of business or is available as prescribed in section 28-4415 at the time either the broker or motor vehicle dealer accepts the deposit.

§ 28-4417 Required disclosures on sales contracts

A motor vehicle dealer shall disclose in a clear and conspicuous manner on any contract for the sale of a motor vehicle to a retail consumer each of the following:

1. Whether or not the transaction is subject to a fee received by a broker from the selling motor vehicle dealer.

2. The name of the broker, if applicable.

§ 28-4418 Warranties and rebates in broker transactions

A. A manufacturer or distributor shall not dishonor a warranty, rebate or other incentive offered to the public or a motor vehicle dealer in connection with the sale of a new motor vehicle to a retail consumer based solely on the fact that a broker arranged or negotiated the sale.

B. This section does not prohibit the disallowance of the warranty, rebate or incentive if the retail consumer or motor vehicle dealer is ineligible to receive the rebate or incentive pursuant to any other term or condition of a rebate or incentive program.

§ 28-4419 Required and prohibited activities

If providing a service of arranging or assisting in effecting the purchase of a motor vehicle by a retail consumer, a broker or motor vehicle dealer licensed pursuant to this chapter:

1. Shall:

(a) Execute a written brokering agreement and provide a completed copy to both of the following:

(i) The retail consumer entering into the brokering agreement. The completed copy shall be provided before the retail consumer signs an agreement for the purchase of the motor vehicle described in the brokering agreement or before the broker or motor vehicle dealer accepts one hundred dollars or more from the retail consumer, whichever occurs first.

(ii) The selling motor vehicle dealer. The completed copy shall be provided before the selling motor vehicle dealer enters into a purchase agreement with the retail consumer.

(b) On demand of a retail consumer, refund any purchase money, including purchase deposits, at any time before the retail consumer signs a motor vehicle purchase agreement with a selling motor vehicle dealer of the motor vehicle described in the brokering agreement.

(c) On demand of a retail consumer, cancel a brokering agreement and refund any monies paid by a retail consumer, including a brokerage fee, under any of the following circumstances:

(i) If the final price of the brokered motor vehicle exceeds the purchase price listed in the brokering agreement.

(ii) If the motor vehicle delivered is not as described in the brokering agreement.

(iii) If the brokering agreement expires before the retail consumer is presented with a purchase agreement from a selling motor vehicle dealer that is arranged through the broker and that contains a purchase price at or below the price listed in the brokering agreement.

(d) Disclose to the retail consumer and selling motor vehicle dealer as soon as practicable whether the broker receives or does not receive a fee or other compensation, regardless of the form or time of payment, from the selling motor vehicle dealer and the dollar amount of any fee that the retail consumer is obligated to pay to the broker. This arrangement shall be confirmed in a brokering agreement.

(e) Maintain records pursuant to section 28-4403.

(f) Maintain for a minimum of three years a copy of the executed brokering agreement and other notices and documents related to each brokered transaction.

(g) Advise the retail consumer, before accepting any money, that a full refund will be given if the motor vehicle ordered through the broker is not obtained for the retail consumer or if the service contracted for is not provided.

2. Shall not:

(a) Accept a purchase deposit from any retail consumer that exceeds two and one-half per cent of the selling price of the motor vehicle described in the brokering agreement.

(b) Receive a fee from more than one source if providing services to a retail consumer as either a broker or motor vehicle dealer in the same transaction.

§ 28-4420 Contents of brokering agreement

A brokering agreement shall contain the following terms, conditions, requirements and disclosures:

1. The name, address, license number and telephone number of the broker.

2. A complete description, including line-make, model, year and color of the motor vehicle and the desired options.

3. The following statement:

The following information shall be completed before the signing of this brokering agreement:

(a) The dollar purchase price of vehicle: _______________.

(b) The date this agreement will expire if a purchase agreement from a selling dealer is not presented for your signature: ___________________________.

(c) The fee that you are obligated to pay, if any: _________________.

4. A notice that is printed in conspicuous type, that is placed immediately below the statement required by paragraph 3 and that states whether or not a fee is received from the selling dealer.

5. The following notice on the face of the brokering agreement in conspicuous type, circumscribed by a line, that reads as follows:

Notice

This is an agreement to provide services. This is not an agreement for the purchase of a vehicle. Arizona law gives you the following rights and protection:

Once you have signed this agreement, you have the right to cancel it and receive a full refund of any monies paid, including any brokerage fee you may have paid, under any of the following circumstances:

(a) The final price of the vehicle exceeds the purchase price listed above.

(b) The vehicle is not as described above on delivery.

(c) This agreement expires before you are presented with a selling dealer's purchase agreement.

If you have paid a purchase deposit, you have the right to receive a refund of that deposit at any time before you sign a vehicle purchase agreement with a selling dealer. Purchase deposits are limited by law to no more than 2.5 per cent of the purchase price of a vehicle. If you are unable to resolve a dispute with your broker or auto buying service, please contact an investigator of the department of transportation.

6. The date the agreement is executed.

7. The signature of the broker and the retail consumer.

§ 28-4421 Selling dealer's duties

A. For purposes of issuing a certificate of title, registration, warranties, rebates and incentives in a brokered sale of a new motor vehicle to a retail consumer, the selling new motor vehicle dealer and not the broker is responsible for:

1. Applying for a certificate of title in the name of the purchaser and securing vehicle registration and the license plates for the purchaser.

2. Securing the manufacturer's warranty in the name of the purchaser.

3. Making all applications for any manufacturer's rebates and incentives due the purchaser.

B. If there is a manufacturer's recall, the retail consumer shall be notified directly by the manufacturer.

§ 28-4422 Resale of new motor vehicles

A motor vehicle dealer may resell a new motor vehicle if all of the following apply:

1. A certificate of title is not transferred from the person who first acquired the new motor vehicle from the manufacturer or importer or agent of the manufacturer or importer.

2. The new motor vehicle is returned to the selling motor vehicle dealer.

3. The motor vehicle dealer gives written notice to the retail consumer that the vehicle was delivered to a previous purchaser.

4. The retail consumer signs an acknowledgment of receipt of the written notice prescribed by paragraph 3 and the motor vehicle dealer maintains a copy of the acknowledgment in the dealer's records.

§ 28-4423 Wholesale motor vehicle auction dealers; sign; title stamp

Each wholesale motor vehicle auction dealer shall:

1. Conspicuously post at the wholesale motor vehicle auction dealer's established place of business a sign that contains the following statement:

Arizona Revised Statutes section 28-4334 prohibits a person who purchases a vehicle from this wholesale motor vehicle auction dealer from selling the vehicle in this state unless the person is a licensed dealer in this state. A person who violates this statutory provision is guilty of a class 1 misdemeanor.

2. Stamp "export only" on the certificate of title of any vehicle sold to a person who is licensed as a dealer by another country.

§ 28-4424 Motor vehicle sale rescission or cancellation

A. If a motor vehicle dealer and a purchaser elect to rescind or cancel the sale of a motor vehicle within thirty days after the date of the title application, the motor vehicle dealer shall document the rescission or cancellation of the sale, shall submit documentation to the department in a manner prescribed by the department on receipt of the following items from the applicable department and shall return to the rightful parties all fees, taxes and other monies. The documentation shall:

1. Be completed and submitted to the department within fifteen business days after the date the parties agreed to cancel or rescind the sale.

2. Include a copy of an agreement executed by the motor vehicle dealer, the purchaser and, if the purchase was financed, the lender financing the purchase providing for the recission or cancellation of the sale.

3. Include a certificate of title if it has been issued or an attestation that the certificate of title has been lost or destroyed.

B. Within seven business days after receiving the documentation described in subsection A of this section, the department shall:

1. Rescind, cancel or revoke any application for a certificate of title or any issued certificate of title.

2. Refund to the motor vehicle dealer any fees and taxes that the motor vehicle dealer paid to the department, except:

(a) The fee prescribed in section 28-2003, subsection A, paragraph 1.

(b) All applicable fees, reimbursements and retained monies that are authorized by section 28-5101, subsections F, G and H.

3. Issue a certificate of title to the motor vehicle dealer that shows the motor vehicle dealer as the owner and the odometer mileage reading as recorded at the rescission or cancellation.

C. If a motor vehicle is subject to subsection A of this section, a motor vehicle dealer may not offer for retail sale the motor vehicle that is the subject of the sale rescission or cancellation until the motor vehicle dealer has received the certificate of title pursuant to subsection B of this section.

D. A rescission or cancellation under this section does not negate that the motor vehicle has been the subject of a previous retail sale.

E. In connection with the financing of a rescinded or canceled motor vehicle sale, a motor vehicle dealer shall return to a lienholder or a prospective lienholder:

1. All monies that the motor vehicle dealer receives pursuant to subsection B, paragraph 2 of this section. The motor vehicle dealer shall return the monies described in this paragraph within three business days after receiving the monies from the department.

2. All other monies that the motor vehicle dealer receives from the lienholder or the prospective lienholder. The motor vehicle dealer shall return the monies described in this paragraph within three business days after the motor vehicle dealer and the purchaser agree to rescind or cancel the sale.

Article 5 Franchise Regulation

§ 28-4451 Product liability; warranty obligations; audits; vehicle exports; used vehicle recall obligations; definitions

A. Each manufacturer shall file with the director a copy of the delivery and preparation obligations required to be performed by a new motor vehicle dealer before delivery of new motor vehicles to buyers. These delivery and preparation obligations constitute the new motor vehicle dealer's only responsibility for the product liability as between the new motor vehicle dealers and the manufacturer. The new motor vehicle dealer shall furnish the buyer of a new motor vehicle with a signed copy of the manufacturer's or distributor's delivery and preparation requirements indicating that all of the requirements have in fact been performed.

B. Any mechanical, body or parts defects arising from any express or implied warranties of the manufacturer constitute the manufacturer's product or warranty liability.

C. The manufacturer or distributor shall compensate an authorized new motor vehicle dealer who performs work to rectify the manufacturer's or distributor's warranty obligations, recall obligations or delivery and preparation obligations.

D. The compensation that the manufacturer or distributor pays to a new motor vehicle dealer for diagnostic work, repair service and labor shall be fair and reasonable and, at the option of the new motor vehicle dealer, may be determined pursuant to subsection E of this section. Time allowances for the diagnosis and performance of warranty work and service shall be reasonable and adequate for the work or services to be performed. The compensation that the manufacturer or distributor pays to the new motor vehicle dealer for parts used in warranty or recall related service shall be fair and reasonable and, at the option of the new motor vehicle dealer, may be determined pursuant to subsection E of this section.

E. The new motor vehicle dealer may declare the retail rates that it customarily charges for parts or labor or both parts and labor by submitting to the manufacturer or distributor the lesser of one hundred sequential, nonwarranty, customer-paid service repair orders or ninety consecutive days of customer-paid service repair orders for warranty-like repairs made not more than one hundred eighty days before the submission. The new motor vehicle dealer's retail labor rate shall be determined by dividing the amount of the dealer's total labor sales contained in the submitted repair orders by the total number of labor hours that generated those sales. The new motor vehicle dealer's retail rate for parts shall be a percentage determined by dividing the total sales for parts in the submitted repair orders by the new motor vehicle dealer's total cost for those parts, minus one, multiplied by one hundred to produce a percentage. Declared rates are presumed to be fair and reasonable except that a manufacturer or distributor, within thirty days after receiving the new motor vehicle dealer's submission, may rebut the presumption by reasonably substantiating that the rate or rates are inaccurate or unreasonable compared to other similarly situated same line-make new motor vehicle dealers in this state. The new motor vehicle dealer's declared parts, labor or both parts and labor rates shall go into effect thirty days following the manufacturer's or distributor's receipt of the declaration, unless the manufacturer or distributor timely sends a rebuttal of the declared rate or rates to the new motor vehicle dealer. If any of the declared rates are rebutted, the manufacturer or distributor shall propose an adjustment of the rebutted rate or rates within thirty days after receiving the new motor vehicle dealer's submission. If the new motor vehicle dealer does not agree with the proposed adjusted rate or rates, it may file a protest with the director within thirty days after receipt of the manufacturer's or distributor's proposal. If a protest is timely filed, the director shall inform the manufacturer or distributor that a timely protest has been filed and that a hearing will be held on the protest if any available manufacturer or distributor mediation opportunity has been used and was unsuccessful in reaching an agreement between the parties.

F. In calculating the retail rate or rates that a new motor vehicle dealer customarily charges for parts or labor, the following work may not be included in the calculation:

1. Repairs for manufacturer or distributor special events, specials or promotional discounts for retail customer repairs.

2. Parts sold at wholesale.

3. Engine assemblies and transmission assemblies, if the new motor vehicle dealer agrees to be compensated for those assemblies with a handling charge instead of a retail parts markup.

4. Routine maintenance not covered under any retail customer warranty, such as fluids, filters and belts not provided in the course of repairs.

5. Nuts, bolts, fasteners and similar items that do not have individual part numbers.

6. Vehicle reconditioning.

G. The manufacturer, factory branch, distributor or distributor branch may reasonably and periodically audit a new motor vehicle dealer to determine the validity of paid claims for dealer compensation or any charge-backs for warranty parts or service compensation. Audits shall only be for the twelve month period immediately following the date of the payment. This limitation does not apply if the manufacturer, factory branch, distributor or distributor branch reasonably suspects fraud. As a result of an audit that is authorized by this subsection, the manufacturer or distributor has the right to charge back to the new motor vehicle dealer the amount of any previously paid claim after the new motor vehicle dealer has had notice and an opportunity to participate in any available manufacturer or distributor mediation processes and all legal appeals have been exhausted if mediation failed to result in an agreement.

H. The manufacturer, factory branch, distributor or distributor branch shall reserve the right to reasonable periodic audits to determine the validity of paid claims for dealer compensation or any charge-backs for consumer or dealer incentives. Audits shall only be for a one year period immediately following the date of the payment. This limitation does not apply if the manufacturer, factory branch, distributor or distributor branch reasonably suspects fraud. As a result of an audit authorized by this subsection, the manufacturer or distributor has the right to charge back to the new motor vehicle dealer the amount of any previously paid claim after the new motor vehicle dealer has had notice and an opportunity to participate in any available manufacturer or distributor mediation processes and all legal appeals have been exhausted if mediation failed to result in an agreement.

I. All claims by new motor vehicle dealers under this section for labor and parts and all claims for compensation relative to any sales incentive programs shall be paid within thirty days after approval by the manufacturer or distributor subject to the manufacturer's or distributor's right to audit the claims provided in subsection G or H of this section. All claims shall be either approved or disapproved within thirty days after receipt on forms and in the manner specified by the manufacturer or distributor. Any claim not disapproved in writing or by means of electronic transmission within thirty days after receipt is deemed approved, and payment must be made within thirty days after approval.

J. If a manufacturer or distributor furnishes a part or component to a new motor vehicle dealer, at no cost, to use in performing repairs under a recall, campaign service action or warranty repair, the manufacturer or distributor shall compensate the dealer for the part or component in the same manner as warranty parts compensation under this section by compensating the dealer the retail parts rate on the wholesale cost for the part or component as listed in the manufacturer's or distributor's price schedule, minus the wholesale cost for the part or component.

K. A manufacturer or distributor may not require a new motor vehicle dealer to establish the retail rates customarily charged by the dealer for parts or labor by an unduly burdensome or time-consuming method or by requiring information that is unduly burdensome or time-consuming to provide calculations, including part-by-part or transaction-by-transaction calculations. A new motor vehicle dealer may not declare any new retail rate more than once in any twelve-month period. A manufacturer or distributor may use the repair orders submitted by a new motor vehicle dealer under subsection E of this section to validate any or all of a new motor vehicle dealer's current warranty reimbursement rates or require a new motor vehicle dealer to submit, not more than once every twelve months, repair orders pursuant to this section to validate the new motor vehicle dealer's retail rate or rates. If a manufacturer or distributor finds that any of a new motor vehicle dealer's retail rates have declined, the manufacturer or distributor may prospectively reduce the respective warranty reimbursement rate.

L. If the new motor vehicle dealer has otherwise properly submitted the claim pursuant to the manufacturer's or distributor's warranty or incentive program guidelines, a manufacturer or distributor may not deny a claim by a new motor vehicle dealer for reimbursement of any warranty parts or service compensation or any consumer or dealer incentive compensation based solely on a new motor vehicle dealer's incidental failure to comply with a specific claim processing requirement that does not put into question the legitimacy of the claim. If a claim is rejected for such an incidental requirement, the new motor vehicle dealer may correct or complete and resubmit a previously submitted warranty or incentive claim for a period of up to sixty days after the new motor vehicle dealer's receipt of first notice of the failure from the manufacturer or distributor. A manufacturer or distributor is not required to approve any warranty or incentive claim if all claim processing requirements are not complied with by the new motor vehicle dealer within the time periods prescribed by this section.

M. If a new motor vehicle dealer sells or leases a vehicle to a customer who exports the vehicle to a foreign country, unless the manufacturer, distributor or importer proves that the new motor vehicle dealer knew or reasonably should have known that the vehicle would be exported, a manufacturer, distributor or importer shall not do any of the following:

1. Refuse to sell, allocate or deliver new motor vehicles to the new motor vehicle dealer.

2. Charge back to or withhold payments or other things of value from the new motor vehicle dealer that the new motor vehicle dealer otherwise would be eligible for under an incentive program or contest.

3. Prevent a new motor vehicle dealer from participating in any sales promotion or program.

4. Take an adverse action against a new motor vehicle dealer, including reducing vehicle allocations or terminating or threatening to terminate a dealer.

N. There is a rebuttable presumption that the new motor vehicle dealer described in subsection M of this section did not know or should not have reasonably known that the vehicle described in subsection M of this section would be exported. The presumption may be rebutted by a preponderance of the evidence that the new motor vehicle dealer knew or should have reasonably known that the vehicle was to be exported.

O. If a timely protest is filed under subsection E of this section, the director shall:

1. Enter an order fixing the time and place of a hearing on the protest. The hearing shall be held within seventy-five days after the date of the order.

2. Send by certified mail a copy of the order to the dealer and the manufacturer.

3. Appoint a member of the Arizona state bar who shall be designated as an administrative law judge to conduct the hearing and who shall be compensated under a contractual relationship.

P. Prehearing discovery shall be conducted pursuant to the Arizona rules of civil procedure.

Q. Evidence that would be admissible under the issues in such an action in a state or federal court is admissible in a hearing held by the administrative law judge. The administrative law judge shall reasonably apportion all costs between the parties, including compensation for the administrative law judge's services. The administrative law judge may:

1. Issue subpoenas.

2. Administer oaths.

3. Compel the attendance of witnesses and the production of books, papers, documents and all other evidence.

4. Apply to the superior court in the county in which the hearing is held for a court order enforcing this section.

R. A transcript of the testimony of all witnesses taken at the hearing shall be made and preserved. Within forty-five days after the hearing the administrative law judge shall make written findings of fact and conclusions of law and enter a final order.

S. A party to the hearing before the administrative law judge may appeal pursuant to title 12, chapter 7, article 6. An appeal of a decision of an administrative law judge has preference over other civil matters and shall be heard at the earliest practicable date.

T. As a condition to the appeal, the appealing party shall file a cash bond, supersedeas bond or its equivalent with the director. The bond shall be sufficient in amount to cover the damages incurred by the prevailing party, but the amount of the bond may not exceed the lesser of $50,000 or ten percent of the appealing party's net worth. The appealing party may file alternatives to cash such as certificates of deposit purchased from a financial institution licensed to do business in this state pursuant to title 6 or bonds of the United States government.

U. A manufacturer shall compensate its new motor vehicle dealers for all labor and parts that are required to perform recall repairs. The compensation shall be fair and reasonable and, at the option of the new motor vehicle dealer, may be determined pursuant to subsection E of this section. If parts or a remedy is not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by the new motor vehicle dealer that is authorized to sell new motor vehicles of the same line-make of the recalled motor vehicle within thirty days after the manufacturer issues a stop-sale or do not drive notification on the used motor vehicle, the manufacturer shall compensate the new motor vehicle dealer at a rate of at least 1.5 percent of the value of the used motor vehicle per month, or prorated portion of a month when applicable, until a date when the recall parts or a remedy is delivered to the dealer or when the vehicle is no longer in the new motor vehicle dealer's inventory.

V. The value of the used motor vehicle that is subject to a stop-sale or do not drive notification shall be the average trade-in value for used vehicles as determined by reference to a nationally recognized publication that reports on used motor vehicle values.

W. It is a violation of this section for a manufacturer to reduce the amount of compensation that is otherwise owed to a new motor vehicle dealer, whether through a chargeback, removal from an incentive program, reduction in amount owed under an incentive program or any other means, because the new motor vehicle dealer has submitted a claim for compensation under subsection U of this section or was otherwise compensated for a vehicle that is subject to a recall if a stop-sale or do not drive notification has been issued.

X. All reimbursement claims that are made by a new motor vehicle dealer pursuant to subsection U of this section for recall remedies or repairs or for compensation if no part or repair is reasonably available and the used motor vehicle is subject to a stop-sale or do not drive notification shall be made in compliance with at least one of the following:

1. In a like manner as a warranty reimbursement claim under this section.

2. At a rate set forth in a national compensation program that the manufacturer manages if the compensation provided to the new motor vehicle dealer equals or exceeds the reimbursement level for a claim that is determined as a warranty reimbursement claim pursuant to paragraph 1 of this subsection.

3. At the level set forth in the national compensation program without further consideration if the manufacturer and new motor vehicle dealer agree.

Y. The manufacturer shall approve or disapprove a claim within thirty days after it is submitted to the manufacturer in the manner and on the forms the manufacturer reasonably prescribes. The manufacturer shall pay a claim within thirty days after approval of the claim. Any claim that is not specifically disapproved in writing by the manufacturer within thirty days following the manufacturer's receipt of the claim is deemed approved.

Z. Subsections U through Y of this section apply only to used motor vehicles that are subject to safety or emissions recalls pursuant to and recalled in accordance with federal law and for which a stop-sale or do not drive notification has been issued and to motor vehicle manufacturers and new motor vehicle dealers with used motor vehicles of the line-make that the new motor vehicle dealer is franchised to sell or on which the new motor vehicle dealer is authorized to perform recall repairs.

AA. Subsections U through Y of this section apply only to new motor vehicle dealers holding an affected used motor vehicle for sale that was any of the following:

1. In inventory at the time the stop-sale or do not drive notification was issued.

2. Taken in the used motor vehicle inventory of the new motor vehicle dealer as a consumer trade-in incident to the purchase of a new motor vehicle from the new motor vehicle dealer after the stop-sale or do not drive notification was issued.

3. Properly taken in the used motor vehicle inventory of the new motor vehicle dealer as a lease return vehicle returned to the new motor vehicle dealer in accordance with the terms of the applicable contract.

BB. If a franchisee demands indemnification, a manufacturer, importer, distributor, distributor branch, factory branch or franchisor that is licensed pursuant to this chapter may not fail or refuse to indemnify an existing or former franchisee and the franchisee's successors and assigns for any sustained damages and attorney fees and other expenses reasonably incurred by the franchisee that result from a claim that is made or asserted by a third party against the franchisee to the extent that the claim results from any of the following:

1. The condition, characteristic, manufacture, assembly or design of any vehicle, parts or accessories, tools or equipment or the selection or combination of parts or components that are manufactured or distributed by the manufacturer, importer, distributor, distributor branch, factory branch or franchisor.

2. Service systems, procedures or methods that the manufacturer, importer, distributor, distributor branch, factory branch or franchisor requires the franchisee to use if the franchisee properly uses the system, procedure or method.

3. The improper use or disclosure by a manufacturer, importer, distributor, distributor branch, factory branch or franchisor of nonpublic personal information obtained from a franchisee relating to a consumer, customer or employee of the franchisee.

4. An act or omission of the manufacturer, importer, distributor, distributor branch, factory branch or franchisor for which the franchisee would have a claim for contribution or indemnity under applicable law or under the franchise, irrespective of and without regard to any prior termination or expiration of the franchise.

5. An act or omission of the franchisee that is the result of the franchisee's use of a service provided by a digital vendor required by the manufacturer, importer, distributor, distributor branch, factory branch or franchisor if the use of the service violates the laws of this state or federal law. This paragraph does not apply if the claim arises out of the wilful misconduct of a franchisee or a franchisee's employee.

CC. For the purposes of this section:

1. "Service provided by a digital vendor" includes any electronic system that manages consumer data or generates consumer notices or documentation.

2. "Stop-sale or do not drive notification" means a notification that is issued by a manufacturer to some or all of its franchised dealerships and that states that certain used motor vehicles in the dealerships' inventories shall not be sold or leased, either at retail or wholesale, due to a federal safety defect or noncompliance recall or a federal or California emissions recall.

§ 28-4452 Limitations; franchise establishment, cancellation, termination or nonrenewal

A. Notwithstanding the terms, provisions or conditions of an agreement or franchise, a franchisor shall not cancel, terminate or refuse to renew a franchise unless the franchisor has good cause for termination or nonrenewal.

B. A franchisor shall not enter into a franchise for the purpose of establishing an additional new motor vehicle dealership in a community in which the same line-make is then represented, unless there is good cause for the additional new motor vehicle dealership under the franchise and unless it is in the public interest.

C. Notwithstanding any other statute, a franchisor may initiate proceedings under this article to establish a new franchise before naming the particular franchisee and before designating or purchasing the particular site of the new franchise.

§ 28-4453 Franchise; notice of intention

A. If a franchisor seeks to enter into a franchise establishing an additional new motor vehicle dealership of the same line-make, the franchisor shall, and the franchisee may at any time, file with the director a notice of intention to enter into a franchise for additional representation of the same line-make.

B. If the franchisor intends to establish an additional new motor vehicle dealership, the director shall send notice within five days of receipt to all franchisees of the same line-make in the community and to all other franchises located within ten miles of the proposed dealership by the shortest street route, if located outside the community, who are then engaged in the business of offering to sell or selling the same line-make. In counties with a population of less than two hundred thousand persons, the notice additionally shall be sent to all dealers located within twenty miles of the proposed new franchise as determined by the shortest street route. The director shall address copies of notices to the principal place of business of the franchisees.

C. The relocation or the reopening of a dealership within two years of the closing within the area of responsibility assigned in the franchise is not considered an additional dealership for purposes of this chapter, provided that the location of the replacement dealership is within one mile of the previous location.

D. If a franchisor seeks to terminate, cancel or not renew a franchise, the franchisor shall notify the franchisee and the director in writing by certified mail or personal delivery. The notice shall contain all of the following:

1. A statement of the franchisor's intention to terminate, cancel or not renew the franchise.

2. A statement of the reasons for the termination, cancellation or nonrenewal.

3. The date on which the termination, cancellation or nonrenewal is effective.

E. This section does not apply to an intended termination, cancellation or nonrenewal of a franchise that the franchisee elects voluntarily, pursuant to a plan established by the franchisor, to submit to binding arbitration.

§ 28-4454 Objection to approval of notice

A. A person who receives or is entitled to receive a copy of a notice provided for in section 28-4453 may object to the approval of a notice by filing a written objection with the director within fifteen days from the date the notice was received by the person.

B. If there is an objection to the establishment of a new motor vehicle dealership, the objecting new motor vehicle dealer shall submit evidence to the director to establish that:

1. The objector is a new motor vehicle dealer located in the same community as the proposed new motor vehicle dealership, or within ten miles by the shortest street route of the proposed dealership, if located outside the community. If the proposed franchise is located in a county with a population of less than two hundred thousand persons, a dealer of the same line-make located within twenty miles, as determined by the shortest street route, also has standing to object pursuant to this section.

2. The objector is providing facilities, equipment, parts, capital and personnel in substantial compliance with its contractual obligation to the franchisor.

§ 28-4455 Determination of standing; failure to object

A. If the director intends to determine that the objector has established both of the reasons prescribed by section 28-4454, subsection B, the director shall notify the franchisor and allow the franchisor to submit evidence in rebuttal before the director makes a final determination. The director's determination is only for the purpose of establishing standing to object to the establishment of the new motor vehicle dealer franchise.

B. If no objection is filed within fifteen days from the date the notice was received by the person or if the objector fails to establish both of the reasons pursuant to section 28-4454, subsection B, the director shall approve the notice.

§ 28-4456 Hearing on objection; appeal

A. If a timely objection has been filed and, if the objection is to the establishment of a new motor vehicle dealership, the objection meets both of the reasons prescribed by section 28-4454, subsection B, the director shall:

1. Enter an order fixing the time and place of a hearing on the objection. The hearing shall be held within seventy-five days after the date of the order.

2. Send by certified mail with return receipt requested a copy of the order to the same persons entitled to receive a copy of the notice provided for in section 28-4453.

3. Appoint a member of the Arizona state bar who shall be designated as an administrative law judge to conduct the hearing and who shall be compensated under a contractual relationship.

B. Prehearing discovery shall be conducted pursuant to the Arizona rules of civil procedure.

C. At the hearing the franchisor has the burden of proof to establish that good cause exists to terminate or not renew the franchise. If there is an objection to the establishment of a new motor vehicle dealership, the administrative law judge shall determine that good cause does or does not exist to establish the proposed dealership.

D. Evidence that would be admissible under the issues in such an action in a state or federal court is admissible in a hearing held by the administrative law judge. The administrative law judge shall reasonably apportion all costs between the parties, including compensation for the administrative law judge's services.

E. The administrative law judge may:

1. Issue subpoenas.

2. Administer oaths.

3. Compel the attendance of witnesses and the production of books, papers, documents and all other evidence.

4. Apply to the superior court in the county in which the hearing is held for a court order enforcing this article.

F. A transcript of the testimony of all witnesses taken at the hearing shall be made and preserved. Within forty-five days after the hearing the administrative law judge shall make written findings of fact and conclusions and enter a final order.

G. A party to the hearing before the administrative law judge may appeal pursuant to title 12, chapter 7, article 6. An appeal of a decision of an administrative law judge has preference over other civil matters and shall be heard at the earliest practicable date.

H. As a condition to the appeal, the appealing party shall file a cash bond, supersedeas bond or its equivalent with the director. The bond shall be sufficient in amount to cover the damages incurred by the prevailing party, but the amount of the bond shall not exceed the lesser of fifty thousand dollars or ten per cent of the appealing party's net worth. The party may file alternatives to cash such as certificates of deposit purchased from a financial institution licensed to do business in this state or bonds of the United States government.

§ 28-4457 Franchise termination, cancellation or nonrenewal; good cause; changes

A. Notwithstanding the terms, provisions or conditions of an agreement or franchise, the following are not good cause for the termination, cancellation or nonrenewal of a franchise:

1. The change of ownership of the franchisee's dealership. This paragraph does not authorize a change in ownership that would have the effect of the sale of the franchise without the manufacturer's or distributor's consent. The consent shall not be unreasonably withheld. The burden of establishing the reasonableness is on the franchisor.

2. The fact that the franchisee refused to purchase or accept delivery of a new motor vehicle, parts or accessories or any other commodity or service not ordered by the franchisee.

B. If a franchisor enters into or attempts to enter into a franchise, whether on termination or cancellation, on refusal to renew another franchise or on the establishment of an additional new motor vehicle dealership in a community where the same line-make is then represented, without first complying with this chapter, a license under this chapter shall not be issued to that franchisee or proposed franchisee to engage in the business of selling new motor vehicles that are manufactured or distributed by that franchisor.

C. In determining whether good cause has been established for terminating, canceling or not renewing a franchise, the administrative law judge shall consider the existing circumstances, including the following:

1. Amount of business transacted by the franchisee.

2. Investment necessarily made and obligations incurred by the franchisee in the performance of the franchisee's part of the franchise.

3. Permanency of the investment.

4. Whether it is injurious to the public welfare for the business of the franchisee to be discontinued.

5. Whether the franchisee has adequate new motor vehicle facilities, equipment, parts and qualified management, sales and service personnel to reasonably provide consumer care for the new motor vehicles sold at retail by the franchisee and any other new motor vehicle of the same line-make.

6. Whether the franchisee refuses to honor warranties of the franchisor to be performed by the franchisee if the franchisor reimburses the franchisee for the warranty work performed by the franchisee.

7. Except as provided in subsection A:

(a) Failure by the franchisee to substantially comply with those requirements of the franchise that are determined by the administrative law judge to be reasonable and material.

(b) Bad faith by the franchisee in complying with those terms of the franchise that are determined by the administrative law judge to be reasonable and material.

D. If failure by the franchisee to substantially comply with a reasonable and material provision of the franchise relates to the performance of sales or service by the franchisee, good cause is established if all of the following are true:

1. The franchisor notifies the franchisee of the failure in writing.

2. The notice states that it is provided for failure of performance pursuant to this chapter.

3. The franchisee is provided a reasonable opportunity in which to exert good faith efforts to carry out the provisions of the franchise. The reasonable opportunity provided shall be over a period of at least one hundred eighty days.

4. The franchisee does not demonstrate substantial compliance with the franchisor's performance standards during that period and the failure to demonstrate compliance is not due to factors controlled by the franchisor.

E. In determining whether good cause has been established for entering into an additional franchise for the same line-make the administrative law judge shall consider the existing circumstances including the following:

1. Amount of business transacted by other franchisees of the same line-make in that community.

2. Investment necessarily made and obligations incurred by other franchisees of the same line-make in that community in the performance of their part of their franchises.

3. Whether the franchisees of the same line-make in that community are providing adequate consumer care for the new motor vehicle products of the line-make, including the adequacy of new motor vehicle dealer sales and service facilities, equipment, supply of parts and qualified management, sales and service personnel.

4. The economic impact on existing franchisees of the same line-make due to the addition of a franchise.

5. The effect on the retail motor vehicle business and the consuming public.

F. On the termination or nonrenewal of a franchise for any reason, including the cessation of a line-make but not including a voluntary termination of the franchise agreement by the franchisee or a termination by the franchisor based on good cause as determined pursuant to this section, the franchisor must do all of the following:

1. Pay the franchisee being terminated the fair market value of the franchise as of the date of the notice of termination or nonrenewal or twelve months before the date of notice, whichever is greater. The fair market value shall be the goodwill value of the franchisee's franchise in the franchisee's community as of the relevant date.

2. Reimburse the franchisee for the cost of any facility upgrades and renovations required by the franchisor within three years before the termination or nonrenewal less any offsets actually received by the franchisee from the franchisor toward the upgrades or renovations, including stipends, credits and other subsidies.

3. Repurchase any data processing programs, software and equipment required by the franchisor for communication of sales, service, warranty or other information to the franchisor or report data to the franchisor that meets the following criteria:

(a) Was used by the franchisee exclusively for the line-make vehicle covered by the dealer agreement being terminated or not renewed.

(b) Was purchased by the franchisee in the three year period before the termination or nonrenewal of the dealer agreement or was leased by the franchisee before the effective date of the termination or nonrenewal, except that the franchisor shall only be responsible for payments under the lease for a period not to exceed three years.

4. Pay to the franchisee an amount equal to twelve months' rent at the fair market rental value for the real property, except that if the real property is leased from a third party who is unrelated to the franchisee, the amount to be paid by the franchisor shall equal twelve months' rent pursuant to the current lease of the real property in effect at the time of the termination or nonrenewal. If the termination or nonrenewal relates to fewer than all of the franchises operated by the franchisee at a single location, the amount to be paid by the franchisor pursuant to this paragraph shall be based on the percentage of the total square footage attributed to the franchise being terminated or not renewed at the time of the termination or nonrenewal.

5. Compensate the franchisee for all new, unused and undamaged parts listed in the manufacturer's current parts catalog and still in the original merchandising packaging. The prices for the parts are the prices in effect as of the effective date of the termination or nonrenewal of the franchise, less any applicable allowances, credits or subsidies actually received by the franchisee from the franchisor.

6. Compensate the franchisee for the fair market value of all undamaged, except for ordinary wear and tear, and unmodified special tools, equipment and signage that are required by the franchisor and that are acquired by the franchisee within the three year period before the termination or nonrenewal.

7. Compensate the franchisee at the dealer's net acquisition cost for all new, undamaged, unmodified and unsold vehicle inventory of the current model year and one model year before that is acquired from the manufacturer or from another same line-make dealer in the ordinary course of business before the effective date of the termination or nonrenewal if the vehicle has less than five hundred miles registered on the odometer.

G. Payments made pursuant to subsection F are in addition to any other payments required by the laws of this state or the applicable franchise agreement. Payments shall be made to the franchisee no later than ninety days after the effective date of the termination or nonrenewal of the dealer agreement and a showing that the franchisee can deliver good and clear title to the items described in subsection F.

§ 28-4458 Coercion prohibited; definition

A. A manufacturer of new motor vehicles, factory branch, distributor, distributor branch, field representative, officer or agent or any representative of a manufacturer of new motor vehicles, factory branch, distributor, distributor branch, field representative, officer or agent shall not coerce or attempt to coerce a new motor vehicle dealer to do any of the following:

1. Accept delivery of a new motor vehicle or vehicles, parts or accessories for the vehicle or vehicles or any other commodities that the dealer has not ordered.

2. Enter into an agreement with the manufacturer, factory branch, distributor, distributor branch or representative of the manufacturer, factory branch, distributor or distributor branch.

3. Do any other act unfair to the dealer by threatening to cancel or not renew a franchise existing between the manufacturer, factory branch, distributor, distributor branch or representative of the manufacturer, factory branch, distributor or distributor branch and the dealer.

4. Construct, renovate or make substantial alterations to the dealer's facilities unless the manufacturer, factory branch, distributor, distributor branch or representative of the manufacturer, factory branch, distributor or distributor branch is able to demonstrate that the changes are reasonable and justifiable in light of current and reasonably foreseeable economic conditions, the availability of additional vehicle allocation and the dealer's market for the sale of vehicles or unless the alteration is reasonably required to effectively display and service a vehicle based on the technology of the vehicle.

5. Enter into a real property use or site control agreement as a condition of awarding a franchise, adding a line-make or dealer agreement to an existing new motor vehicle dealer, renewing a dealer agreement, approving the sale or transfer of the ownership of a dealership or approving the relocation of a dealership. This paragraph does not apply to a real property use or site control agreement if either of the following is offered to and accepted by the dealer without coercion or condition in exchange for a real property use or site control agreement:

(a) Fair and reasonable monetary consideration.

(b) Separate and valuable consideration that may be calculated to a sum certain.

6. In connection with the sale of a used motor vehicle, other than a used motor vehicle sold pursuant to a factory's certified pre-owned program, require the use of only parts and accessories manufactured by the manufacturer, factory branch, distributor, distributor branch or importer. This paragraph does not apply to parts used to perform repairs pursuant to a recall or repairs performed pursuant to a manufacturer, factory branch, distributor, distributor branch or importer's warranty.

7. Install on the dealer's dealership premises a customer facing electric vehicle charging station accessible to the general public.

B. A manufacturer, factory branch, distributor, distributor branch or field representative or an officer, agent or representative of a manufacturer, factory branch, distributor, distributor branch or field representative shall not require, coerce or attempt to coerce any new motor vehicle dealer in this state to refrain from participation in the management of, investment in or acquisition of any other line-make of new motor vehicle or related products unless justified by reasonable business considerations.

C. A manufacturer, factory branch, distributor, distributor branch, field representative or officer shall not coerce or attempt to coerce a motor vehicle dealer and a manufacturer shall not do either of the following:

1. Release to any outside party any confidential financial information of the dealer that may be provided from time to time by the dealer.

2. Release to the general public average or composite prices, identified as such, based in whole or in part on such financial information.

D. Information described in subsection C, paragraphs 1 and 2 of this section shall not be released without the express written consent of the dealer, except that it may be released:

1. Pursuant to subpoena or as otherwise required by law in any administrative, judicial or arbitration proceeding or in any law enforcement investigation.

2. To a law enforcement agency, except that this exception does not apply to personal financial information.

E. A manufacturer, importer or distributor shall not adopt, change, establish or implement a plan or system for the allocation, scheduling or delivery of new motor vehicles, parts or accessories to its motor vehicle dealers that is not fair, reasonable and equitable or modify an existing plan or system for the allocation, scheduling or delivery of new motor vehicles, parts or accessories in a manner that causes the plan or system to be unreasonable, unfair or inequitable to the dealers of the manufacturer's, importer's or distributor's line-make. On the request of a franchisee, a manufacturer, importer or distributor shall disclose in writing to the franchisee the basis on which new motor vehicles, parts and accessories are allocated, scheduled and delivered among the manufacturer's, importer's or distributor's dealers of the same line-make.

F. A manufacturer, factory branch, distributor, distributor branch or field representative or an officer, agent or representative of a manufacturer, factory branch, distributor, distributor branch or field representative shall not require a dealer or condition the awarding of a franchise, the addition of a line-make, the renewal of a franchise, the approval of the relocation of a franchise or the approval of a sale or transfer of a franchise on the willingness of a dealer or a proposed dealer or owner of an interest in the dealership facility to construct, renovate or maintain exclusive facilities, personnel or showroom area dedicated to a particular line-make if the imposition of such a requirement would be unreasonable in light of the existing circumstances, including the manufacturer's reasonable business considerations, present economic and market conditions and forecasts for future economic and market conditions in the dealer's retail territory. The manufacturer, factory branch, distributor, distributor branch or field representative has the burden of proof to demonstrate that its demand for exclusivity is justified by reasonable business considerations and is reasonable in light of the dealer's circumstances. This subsection does not apply to a voluntary agreement between a dealer and a manufacturer if separate and valuable consideration was offered and accepted. The renewal of a franchise agreement does not, by itself, constitute separate and valuable consideration. The manufacturer has the burden of proof to show by a preponderance of the evidence that the dealer entered into a voluntary agreement regarding exclusivity.

G. Any condition, stipulation or provision in a franchise or distributorship agreement purporting to bind any person acquiring or holding a franchise or distributorship to waive compliance with any provision of this chapter or any other law of this state is void except that a person who is acquiring or holding a franchise or distributorship is not prohibited under this section from electing in writing, at or after the time a dispute arises, from using any voluntary dispute resolution procedure, from entering into any voluntary agreement to settle legitimate disputes between the disputed parties or from entering into any agreement waiving any provision of this chapter or any other law of this state for which the franchisee receives separate and valid consideration at the time of the execution of the waiver.

H. A manufacturer, importer or distributor is not required to make available or pay incentives or other benefits to a dealer that has not satisfied the requirements for eligibility on the same terms that are applied uniformly and equitably to all dealers of the same line-make in this state.

I. For the purposes of this section, "coerce":

1. Means the wrongful use of force or threat to persuade, constrain or compel a dealer to take or refrain from taking a specific action.

2. Includes threatening to wrongfully withhold vehicles or parts or refusing to offer available incentives on the same terms as offered to other dealers of the same line-make in this state or offering a dealer a higher price for vehicles or parts than is offered to other same line-make dealers in this state or not providing the opportunity to earn available incentives on the same terms as other same line-make dealers in this state on the basis of the dealer refusing, declining or failing to perform a specific behavior.

3. Does not include required compliance with a manufacturer's, importer's or distributor's reasonably necessary standards and requirements to fulfill the dealer's sales and service obligations.

§ 28-4459 Manufacturer or distributor right of first refusal

A. If a change of all, or substantially all, ownership of a new motor vehicle dealership or transfer of all, or substantially all, dealership assets is proposed, a manufacturer or distributor may exercise a right of first refusal to acquire the dealership if all of the following requirements are met:

1. The manufacturer or distributor notifies the dealer in writing within sixty days after receipt of the completed application forms and related information generally used by a manufacturer or distributor to conduct its review and a copy of all agreements regarding the proposed transfer of its intent to exercise its right of first refusal or its rejection of the proposed transfer. If the manufacturer or distributor fails to notify the dealer of its exercise of its right of first refusal or its rejection of the proposed transfer within the sixty day period, the proposed transfer is deemed to be approved by the manufacturer or distributor.

2. The exercise of the right of first refusal results in the dealer receiving the same or greater compensation than the dealer negotiated or contracted to receive in connection with the proposed change of all, or substantially all, ownership of the dealership or transfer of all, or substantially all, dealership assets.

3. The proposed change of all, or substantially all, dealership assets does not involve the transfer of assets or the transfer or issuance of stock by the dealer or one or more dealer owners to a designated family member or members or the spouse, child, grandchild, spouse of a child or grandchild, brother, sister or parent of the dealer or one or more dealer owners or to a qualified manager, a partnership or a corporation controlled by any of those persons.

4. The manufacturer or distributor agrees to pay the reasonable expenses, including reasonable attorney fees that do not exceed the usual, customary and reasonable fees charged for similar work done for other clients, incurred by the proposed new owner and transferee before the manufacturer's or distributor's exercise of its right of first refusal in negotiating and implementing the contract for the proposed change of all, or substantially all, ownership of the dealership or transfer of all, or substantially all, dealership assets. Notwithstanding the provisions of this paragraph, a manufacturer or distributor shall not pay those expenses and attorney fees if the dealer has not submitted or caused to be submitted to the manufacturer or distributor an accounting of those expenses within twenty days after the dealers' receipt of the manufacturer's or distributor's written request for the accounting. This accounting may be requested by a manufacturer or distributor before exercising its right of first refusal.

B. A manufacturer or distributor may not use or threaten to use the exercise of the right of first refusal in bad faith.

§ 28-4460 Factories; competition or unfair discrimination prohibited; definitions

A. A factory shall not directly or indirectly compete with or unfairly discriminate among its dealers.

B. Competing with or unfair discrimination includes any one of the following:

1. The factory having an ownership interest or franchise interest in, or operating or acting in the capacity of, a new motor vehicle dealer or a used motor vehicle dealer, except that:

(a) A factory is not prohibited from owning or operating as a new motor vehicle dealer for a temporary period if either of the following applies:

(i) The temporary period is not more than twelve months during the transition from one dealer to another dealer if the dealership is for sale and is being actively marketed by the factory at a bona fide reasonable price and on reasonable terms and conditions to any independent qualified buyer.

(ii) The factory submits evidence that disposition of its interest will result in financial loss to the factory or dealership.

The temporary period may be extended in one year increments if either of the requirements of this subdivision are met.

(b) A factory is not prohibited from temporarily owning a dealership while in a bona fide relationship with a qualified person. A bona fide relationship with a person who is qualified requires that:

(i) The total sales price of the dealership is not less than an amount that is consistent with standard business practices.

(ii) The independent qualified person make a substantial unencumbered bona fide initial investment in the dealership that is reasonable and consistent with standard business practices.

(iii) The bona fide initial investment of the qualified person is subject to potential loss. The qualified person's percentage share of any potential dealership losses shall not be less than the person's percentage share of ownership of the dealership at the time of the loss.

(iv) The qualified person buy substantial portions of the factory's remaining ownership interest in substantial regular periodic payments throughout the acquisition period.

(v) The qualified person can expect to acquire and retain full and complete ownership of the dealership within a reasonable period of time that is not longer than ten years and on reasonable terms and conditions that are consistent with standard business practices. The ten-year acquisition period may be extended for good cause shown by the qualified person.

(vi) During the acquisition period if the qualified person is paid a management fee, the management fee shall be reasonable and consistent with standard business practices for an individual managing a franchise of similar size and volume of sales and leases of vehicles or products.

(c) A factory is not prohibited from owning on a permanent basis a minority interest in a dealership if all of the following conditions are satisfied:

(i) The interest owned by the factory is not more than forty-five percent or the percentage interest actually owned by the factory on January 1, 2000, whichever is less.

(ii) Any dealership in which the factory owns the interest shall not be less than seventy-five miles from the nearest dealership of the same line-make in which the factory does not own the interest.

(iii) All dealerships in which the factory owns the interest shall not sell or lease more than one of the line-makes of new motor vehicles and parts manufactured by the factory.

(iv) All dealerships in which the factory owns the interest shall sell or lease the same line-make of new motor vehicles and parts manufactured by the factory. The dealerships may also sell or lease new motor vehicles and parts of a line-make manufactured by a factory that does not have an ownership interest in the dealership.

(v) The factory or an entity in which the factory has the interest must have been licensed in this state as a new motor vehicle dealer on January 1, 2000 selling the line-make of new motor vehicle manufactured by the factory.

(vi) The factory must have owned the interest in at least one dealership selling the line-make manufactured by the factory on January 1, 2000.

(vii) The factory or an entity in which the factory has the interest shall not sell any line-make of new motor vehicle that it was not selling in this state before January 1, 2000.

(viii) All automotive related services and financing related to the line-make or the factory owning the interest shall be sold or provided only to owners of vehicles of the line-make, regardless of where the vehicle was purchased, or to any purchasers of any new or used motor vehicles purchased from a dealership in which the factory has an interest. This item shall not preclude that dealership from selling or providing any nonwarranty repairs or maintenance on motor vehicles of any line-make or warranty repairs or maintenance of any line-make of new motor vehicles sold by the dealership and not manufactured by the factory.

(ix) All used motor vehicles of a line-make manufactured by the factory, other than the line-make that the dealership sells or leases new, acquired by the dealership, directly or indirectly from the factory, shall be acquired only at wholesale auction open to dealers of all line-makes manufactured by the factory.

2. The factory selling, leasing, providing or updating, or offering to sell, lease, provide or update, a vehicle or product, service or financing to any retail consumer or lead, including a subscription service for a motor vehicle feature that uses components and hardware that is already installed on the motor vehicle at the time of purchase or lease and would function after activation without ongoing cost to or support by the dealer, manufacturer, factory, distributor or third-party service provider. This paragraph does not:

(a) Prohibit a factory from advertising to sell, lease or provide a vehicle or product, service or financing through its dealers.

(b) Prohibit a factory from selling, leasing, providing or updating or offering to sell, lease, provide or update a vehicle or product, service or financing through its dealers.

(c) Prohibit a factory from providing a vehicle or product or service for occasional promotional or charitable uses.

(d) Prohibit a factory from selling, leasing or providing a vehicle or product, service or financing to an agency of the federal government.

(e) Prohibit a factory from selling or leasing a vehicle or product, service or financing through its dealers to retail consumers who qualify for any reasonable factory sponsored factory employee, factory retiree or factory vendor new vehicle purchase program or any other reasonable similar factory related new vehicle purchase program.

(f) Prohibit a factory from providing financing to retail consumers through any used motor vehicle dealer or new motor vehicle dealer of any line-make.

(g) Prohibit a factory from providing a loan directly to a person or entity if the loan is for a purpose unrelated to the ownership or leasing of a new motor vehicle or a used motor vehicle not for resale.

(h) Prohibit a factory from providing loans directly to used motor vehicle dealers or new motor vehicle dealers of any line-make for any purpose, including working capital, real estate, construction or motor vehicle or parts inventories.

(i) Prohibit a factory from arranging or providing emergency roadside service.

(j) Prohibit a factory from offering factory sponsored extended service contracts to purchasers of new motor vehicles, provided that:

(i) Such offers shall not take place less than ninety days after the date the retail consumer takes delivery of the new motor vehicle.

(ii) Such offers are made to retail consumers only at the manufacturer's suggested retail price.

(k) Prohibit a factory from selling a lease vehicle to the original lessee pursuant to a purchase option set forth in the lease. Such sale may be a credit sale with the factory as the credit seller and may include the direct sale of extended service contracts at the manufacturer's suggested retail price.

(l) Prohibit a factory, at the request of a motor vehicle lessee, from extending a lease of a motor vehicle.

(m) Prohibit a factory from offering and approving a retail consumer credit application for the financing or leasing of a motor vehicle if both of the following apply:

(i) The final transaction takes place through a licensed motor vehicle dealer.

(ii) The factory does not establish or quote any interest rate, finance rate or lease rate in association with a credit application.

(n) Prohibit a factory from renewing or charging any subscription or connection fees for any in-vehicle electronic wireless communication, information or entertainment services such as navigation system updates, satellite radio, roadside assistance, software-dependent driver assistance or driver automation features and vehicle-connected services that rely on cellular or other data networks for continued operation.

3. The factory controlling any aspect of the final amount charged, the final sales price or the final lease price for any vehicle or product, trade-in or service offered to retail consumers in a dealer's area of responsibility without the written consent of the dealer. The dealer's consent may be withdrawn on forty-five days' notice without retribution or the threat of retribution from the factory. This paragraph does not prohibit a factory from:

(a) Changing dealer cost or establishing any of the following:

(i) Manufacturer's suggested retail price pursuant to 15 United States Code section 1232.

(ii) Factory's suggested retail price for parts.

(iii) Factory's suggested retail price for service.

(b) Establishing from time to time reasonable sales, lease or financing promotions of reasonable and limited duration. Programs up to a year are presumed to be of reasonable and limited duration.

(c) Establishing reasonable standard feature option packages or vehicle option content in any way.

(d) Establishing the terms of any vehicle warranty.

(e) Establishing reasonable sales, lease or financing terms through its dealers to retail consumers who qualify for any reasonable factory sponsored factory employee, factory retiree or factory vendor new vehicle purchase program or any other reasonable similar factory related new vehicle purchase program.

(f) Linking the factory's internet site to internet sites maintained by its dealers or third parties, or to internet sites maintained jointly by the factory and its dealers and made available to all of the factory's dealers of the same line-make, provided that the factory shall not dictate, limit, establish, set or endorse as a basis for a retail transaction any price other than the manufacturer's suggested retail price.

(g) Establishing the price at which the lessee of a motor vehicle may purchase or re-lease that motor vehicle on expiration or termination of that lessee's lease.

(h) Operating or facilitating a program or system through which individual dealers may provide quotes or offers to individual consumers.

4. The factory refusing to unconditionally offer and provide to its same line-make dealers all models, series and editions of new motor vehicles that are publicly advertised for that line-make in this state. The failure to deliver any new motor vehicles shall not be considered a violation of this paragraph if the failure is caused by a lack of manufacturing capacity, labor strike, shortage of materials or trade embargo or any other condition over which the factory has no control. A factory may require a dealer to purchase reasonable quantities of advertising materials, purchase reasonable quantities of special tools required to properly service a motor vehicle and undertake reasonable salesperson or service person training related to the motor vehicle as a condition of receiving a motor vehicle. This paragraph does not:

(a) Apply to recreational vehicle manufacturers.

(b) Prohibit a factory from providing monetary, financial or optional equipment incentives to fleet purchasers for new motor vehicles not for resale.

5. The factory denying to any dealer any price reduction, rebate, incentive payment or similar pricing device relating to the sale or offer to sell a new motor vehicle to a dealer, pursuant to a program that discriminates among dealers of the same line-make in this state, when the dealer cannot qualify or receive the benefits of the program for reasons other than the dealer's failure to use reasonable effort to qualify and the terms of the program are such that a failure to qualify or receive its benefits would constitute the constructive termination of the dealer.

6. The factory failing to provide or direct a lead relating to a particular line-make either:

(a) To the dealer with whom the lead has a preexisting relationship.

(b) To the dealer of the same line-make that is located closest to where the lead resides, or to the local business address if the lead is a business.

(c) To the dealer of the same line-make in whose assigned area of responsibility the lead resides, or the local business address if the lead is a business.

(d) According to the lead's voluntary preference.

7. The factory implementing or modifying a vehicle reservation system for the sale or lease of motor vehicles that does not comply with the following requirements:

(a) A vehicle reservation system designed, implemented or controlled by the factory that allocates vehicles to dealers shall use customer dealer selection or other objective criteria to allocate the vehicles.

(b) At least thirty days before implementing a vehicle reservation system, a factory shall make available to its dealers a description of the reservation program rules and requirements through the system, as applicable. Notice of a material change to the rules and requirements shall be provided by the factory to its dealers at least thirty days before the changes becoming effective.

C. Under subsection B, paragraph 6 of this section:

1. The factory need not provide or direct a lead to a dealer who does not sell the vehicle or product, service or financing in which the lead expresses an interest.

2. The factory is responsible only for providing to the dealer information that it possesses concerning the lead.

3. The factory is not precluded from providing or directing leads to any other dealer of the same line-make.

4. All leads are provided or directed in a fair, nondiscriminatory, equitable and timely manner to dealers and, except as provided in subsection D of this section, without charging a fee for those leads.

D. Subsection B, paragraph 6 of this section does not apply to any factory sponsored internet-based program specifically designed to provide retail consumers with internet access to dealer quotations on vehicles, products, financing or services if:

1. Fees for the program are reasonable and consistent with industry standards.

2. Dealer participation is not conditioned on participation in any other program or on ratings derived from customer surveys.

E. A manufacturer or distributor may not recover all or any portion of its costs for compensating a dealer for warranty parts and service, including parts and service associated with vehicle recalls, either by reduction in the amount due the dealer or by separate charge, surcharge, administrative fee or other imposition. This subsection does not prohibit a manufacturer or distributor from increasing the wholesale price of a vehicle or part in the ordinary course of business.

F. For the purposes of this section:

1. "Controlling" means dictating, limiting, establishing, setting or endorsing as a basis for a retail transaction any price other than the manufacturer's suggested retail price.

2. "Dealer" or "dealership" means a new motor vehicle dealer or franchisee.

3. "Factory":

(a) Means a manufacturer, importer or distributor or any legal entity in which a manufacturer, importer or distributor owns a majority interest or has direct or indirect power to direct or cause the direction of the management whether through voting securities, contract or otherwise.

(b) Includes successors in interest to all entities described in subdivision (a) of this paragraph that continue retail operations selling or servicing the same line-make as any motor vehicle dealer that has, as of the effective date of such succession, a franchise to sell and service such line-make, including successors that acquire the interests by purchase, merger or conversion.

(c) Excludes any new motor vehicle dealer, used motor vehicle dealer or trailer manufacturer.

(d) Excludes any agent, affiliate, representative or subsidiary that is primarily engaged in the business of rental of passenger and commercial motor vehicles and industrial and construction equipment and activities incidental to that business if all of the following conditions are satisfied:

(i) Passenger and commercial motor vehicles sold by the agent, affiliate, representative or subsidiary are limited to used passenger and commercial motor vehicles that have been previously used exclusively and regularly by the agent, affiliate, representative or subsidiary in the conduct of business and used passenger and commercial motor vehicles traded in on motor vehicles sold by the agent, affiliate, representative or subsidiary.

(ii) Warranty repairs performed by the agent, affiliate, representative or subsidiary on passenger and commercial motor vehicles are limited to those passenger and commercial motor vehicles that it owns, previously owned or takes in trade.

(iii) Motor vehicle financing provided by the agent, affiliate, representative or subsidiary to retail consumers for passenger and commercial motor vehicles is limited to vehicles sold by the agent, affiliate, representative or subsidiary in the conduct of business.

4. "Financing":

(a) Means the financial service of providing retail consumers the ability to pay for a purchase or lease of a new or used motor vehicle, parts or services over an extended period of time.

(b) Does not include the furnishing of credit cards capable of general use in retail transactions or the provision of any loans secured by real estate.

5. "Motor vehicle feature" means a convenience or safety function included on a motor vehicle, such as heated seats or driver assistance, that typically is offered to a consumer as an upgrade at the time of purchase or lease of the motor vehicle.

6. "Parts":

(a) Means all items that are designed to be incorporated within or attached to or used to operate, maintain or service a motor vehicle.

(b) Does not include any of the following:

(i) Parts purchased or provided for use by professional racing enterprises.

(ii) Parts no longer included in the current factory price schedule.

(iii) Specialized parts for research vehicles or other similar uses of limited application.

(iv) Owners' manuals or repair manuals.

(v) Parts that are provided by an automotive recycler in the normal course of business for an automotive recycler.

(vi) Motor vehicle keys.

7. "Service" means either of the following:

(a) Motor vehicle warranty and nonwarranty repairs or maintenance, including both parts and labor.

(b) Extended warranties, vehicle mechanical maintenance insurance and similar vehicle repair service contracts.

8. "Subscription service":

(a) Means a service that is provided in exchange for a recurring payment, including a weekly, monthly or annual payment that is charged to and made by a consumer.

(b) Does not include a consumer's recurring payment made pursuant to a retail installment contract as defined in section 44-281 or lease as defined in section 47-2A103.

9. "Vehicle or product" means a new motor vehicle, a used motor vehicle or parts.

10. "Vehicle reservation system" means a process that is used to hold open the opportunity for a specified consumer to place an order for the purchase or lease of a new motor vehicle.

§ 28-4461 Right of designated family member to succeed in ownership

A. Any owner of a new motor vehicle dealer may appoint by will or any other written instrument that is approved by the manufacturer a designated family member to succeed in the ownership interest of the owner of the new motor vehicle dealer.

B. Unless there is good cause for refusal to honor succession on the part of the manufacturer, any designated family member of a deceased or incapacitated owner of a new motor vehicle dealer may succeed to the ownership interest of the owner of the new motor vehicle dealer under the existing franchise if both of the following apply:

1. The designated family member gives the manufacturer written notice of the family member's intention to succeed to the ownership interest of the owner of the new motor vehicle dealer within ninety days after the owner's death or incapacity.

2. The designated family member agrees to be bound by all terms and conditions of the franchise.

C. The manufacturer may request, and a designated family member shall provide within forty-five days after the manufacturer's request, personal financial and business experience data that are reasonably necessary to determine whether the succession should be honored.

§ 28-4462 Refusal to honor succession to ownership; notice required

A. If a manufacturer believes that good cause exists for refusing to honor the succession to ownership interest of the owner of a new motor vehicle dealer by a family member of a deceased or incapacitated owner of a new motor vehicle dealer under the existing franchise agreement, the manufacturer, not more than sixty days after the receipt of either the notice that is prescribed by section 28-4461, subsection B or any personal or financial data that the manufacturer has requested pursuant to section 28-4461, whichever is received later, may serve on the designated family member notice of its refusal to honor the succession and of its intent to discontinue the existing franchise with the dealer no sooner than one hundred twenty days after the notice is served.

B. The notice of refusal and discontinuance must state the specific grounds for the refusal to honor the succession and of the manufacturer's intent to discontinue the existing franchise with the new motor vehicle dealer no sooner than one hundred twenty days after the notice is served.

C. If the notice of refusal and discontinuance is not timely served on the designated family member, the franchise shall continue in effect subject to termination only as otherwise permitted by this chapter.

D. If there is a conflict between the written instrument filed by the motor vehicle dealer with the manufacturer designating a certain person as the motor vehicle dealer's successor and this section, the written instrument filed with the manufacturer governs.

§ 28-4463 Burden of proof and consideration

In determining whether good cause for the refusal to honor the succession exists, the manufacturer:

1. Has the burden of proving that the successor is a person who is not of good moral character or does not meet the franchisor's existing and reasonable standards, including financial standards.

2. Must consider the volume of sales and service of the new motor vehicle dealer using uniformly applied minimum business experience standards in the market area.

§ 28-4464 Applicability

This article does not apply to a manufacturer that does not and has never used franchised new motor vehicle dealers to offer, sell or service new motor vehicles that are manufactured or distributed by a franchisor, manufacturer, importer or distributor.

Article 6 License Regulation

§ 28-4491 Enforcement powers

Notwithstanding sections 28-4494 and 28-4495, in the enforcement of any law pertaining to licensed or unlicensed dealers or automotive recyclers, the director may conduct hearings pursuant to title 41, chapter 6, article 6, take testimony and conduct investigations as the director deems necessary.

§ 28-4492 Appeal

Decisions of the director are subject to judicial review pursuant to title 12, chapter 7, article 6.

§ 28-4493 Cancellation or suspension; grounds

A. The director may suspend or cancel the license, off-premises exhibition permit, off-premises display and sales permit or special event permit of any licensee or exhibitor if the director determines that the licensee or exhibitor:

1. Has made a material misrepresentation or misstatement in the licensee's or exhibitor's application for a license, off-premises exhibition permit, off-premises display and sales permit or special event permit.

2. Has used or is using any false advertising as prescribed by section 13-2203.

3. Has violated or is violating a law of this state or a rule adopted by the director pursuant to law.

4. Has failed or is failing to keep and maintain records required to be kept and maintained by the licensee or exhibitor.

5. Has no established place of business or principal place of business as required by this chapter.

6. Has knowingly dealt in stolen motor vehicles or parts or accessories of stolen motor vehicles.

7. Has failed or is failing or the licensee's or exhibitor's manager, agents or representatives have failed or are failing to devote a substantial portion of time to the business for which the licensee or exhibitor is licensed or to be actively or principally engaged in the business for which the licensee or exhibitor is licensed.

8. Has refused to service and fulfill the manufacturer's warranty.

9. Is offering for private sale a motor vehicle in the licensee's or exhibitor's inventory.

10. Has used or is using a private residence to illegally transact business regulated by this chapter.

11. As a manufacturer, factory branch, distributor, field representative, officer or agent or any representative of a manufacturer, factory branch, distributor, field representative, officer or agent without good cause has cancelled or failed to renew the franchise of a new motor vehicle dealer. All existing dealers' franchises continue in full force and operation under a newly appointed distributor on the termination of an existing distributor unless otherwise mutually agreed by the newly appointed distributor and the dealer.

B. The director may suspend or cancel a license if the director determines that an individual included in the application for the license:

1. Made a misrepresentation, omission or misstatement in the application to conceal a matter that may cause the application to be denied.

2. Has been convicted of fraud or an auto related felony in a state, territory or possession of the United States or a foreign country within the past ten years immediately preceding the date a criminal records check is complete.

3. Has been convicted of a felony, other than a felony described in paragraph 2 of this subsection, in a state, territory or possession of the United States or a foreign country within the past five years immediately preceding the date a criminal records check is complete.

§ 28-4494 License suspension or cancellation; hearing

A. On determining that grounds for suspension or cancellation of a license exist, the director shall give notice of the grounds to the licensee in writing and by the notice shall require the licensee to appear before the director at a specified time and place to show cause why the licensee's license should not be suspended or cancelled.

B. At the time and place fixed by the director and at least ten days after the notice, the licensee shall appear and be heard and may have other persons the licensee desires be present and testify at the hearing.

C. The director shall issue subpoenas to persons as the licensee requests that require them to be present and testify at the hearing. A transcript of the testimony of witnesses taken at the hearing shall be made and preserved.

D. Within ten days after the hearing, the director shall make written findings of fact and conclusions and by order either shall suspend or cancel or decline to suspend or cancel the license.

E. If the license is subject to suspension or cancellation for a violation of section 28-4493, subsection A, paragraph 11, the suspension or cancellation is effective for not more than two years and is effective only in the territory formerly served by the unfairly cancelled dealer, except that in a metropolitan area served by several dealers enfranchised to sell the same make of new motor vehicles, the suspension or cancellation order does not affect the relationship of the manufacturer with the remaining dealers in the area.

F. If the license is subject to suspension or cancellation for a second violation of section 28-4493, subsection A, paragraph 9, the suspension or cancellation is effective for five years.

G. The director may suspend or cancel the license of a licensee, after providing at least thirty days' written notice to the licensee, if any of the following occurs:

1. A bond furnished by a licensee pursuant to this chapter is insufficient and the licensee fails to provide any additional or other bond as required by the director.

2. The surety on a bond furnished by a licensee pursuant to this chapter requests to be released and discharged and the licensee fails to provide any additional or other bond as required by the director.

§ 28-4495 Permits; cancellation; cease and desist order; hearing

A. Notwithstanding any other law, if the licensee or exhibitor is conducting an off-premises exhibition, off-premises display and sale or special event pursuant to a permit granted under section 28-4401, on determining that grounds for cancellation of an off-premises exhibition permit, off-premises display and sales permit or a special event permit exist, the director may issue a cease and desist order and notice of cancellation of the permit to the licensee or exhibitor.

B. If the director determines that the licensee or exhibitor has failed to obtain a permit authorized under section 28-4401 for an off-premises exhibition, off-premises display and sale or special event, the director may issue a cease and desist order and may suspend the privilege of obtaining subsequent off-premises exhibition permits, off-premises display and sales permits and special event permits for the licensee or exhibitor for a period of one year from the date of suspension.

C. A licensee or exhibitor whose off-premises exhibition permit, off-premises display and sales permit or special event permit privileges are canceled or suspended may request a hearing to show cause why the permit privileges should not be canceled or suspended. At the time and place fixed by the director, the licensee or exhibitor shall appear and be heard. Other persons the licensee or exhibitor desires may be present and may testify at the hearing.

§ 28-4496 Licensed dealer or automotive recycler; hearing; civil penalty

A. Notwithstanding section 28-4495, the director may conduct a hearing pursuant to section 28-4491 if the director alleges that a licensed motor vehicle dealer or automotive recycler refuses or fails to comply with a cease and desist order issued pursuant to section 28-4498.

B. The director shall conduct a hearing pursuant to section 28-4491 if the director alleges that a licensed motor vehicle dealer has violated section 28-4493, subsection A, paragraph 9.

C. The director shall hold the hearing at least fifteen but not more than thirty days after service of a written notice. The director shall send the notice by personal delivery or certified mail to the address provided to the department in the report alleging the noncompliance.

D. A finding that a licensed motor vehicle dealer or automotive recycler is in violation of this chapter requires that all of the following conditions exist, and the scope of the hearing is limited to the following:

1. A determination that the person refuses or fails to comply with the requirements of section 28-4498.

2. A determination that the person ordered to appear at the hearing is responsible for the violation.

E. If after reviewing the allegations and results of the hearing the director determines that the licensed motor vehicle dealer or automotive recycler is in violation of this chapter, the director may impose the civil penalty pursuant to section 28-4501.

F. After consideration of the evidence presented at the hearing, the director shall serve notice of the director's finding and order within five days after the hearing.

§ 28-4497 Action to restrain violation by licensee

If the director has reasonable cause to believe that a licensee has violated or is violating any law of this state that the director enforces or administers or has violated or is violating a rule or order adopted or issued by the director pursuant to law, in addition to any remedies existing under this chapter or otherwise, the director may bring and maintain, in the name and on behalf of this state, an action in the superior court in Maricopa county against a licensee to restrain or enjoin the licensee from continuing the violation. In the action, the court shall proceed as in other actions for injunction.

§ 28-4498 Licensed dealer and automotive recycler; cease and desist order; request for hearing

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 has violated or is violating a law of this state or rule adopted by the department, the director may immediately issue and serve on the licensee by personal delivery or first class mail at the business address of record a cease and desist order requiring the licensee to immediately cease and desist from further engaging in the business or the prohibited activity, or both, on the receipt of the notice. A licensee who receives a cease and desist order may submit a written request for a hearing to the director. The licensee shall submit the request for a hearing within thirty days after the licensee receives the cease and desist order. On failure of a licensee to comply with the order or after a requested hearing, the director 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. If the director conducts an investigation and has reasonable cause to believe that a licensed motor vehicle dealer is in violation of section 28-4493, subsection A, paragraph 9, the director may immediately issue and serve on the licensee by personal delivery or first class mail at the business address of record a cease and desist order requiring the licensee to immediately cease and desist from further engaging in the business or the prohibited activity, or both, on the receipt of the notice. The director shall notify the licensee that a hearing will be conducted and that civil penalties may be imposed pursuant to section 28-4501. On failure of a licensee to comply with the order or after a hearing, the director 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.

C. The director of the department of transportation shall provide a copy of any cease and desist order issued pursuant to this section to the director of the department of revenue.

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

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 first class 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 and shall notify the person that a hearing will be scheduled and that civil penalties may be imposed pursuant to section 28-4501.

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

§ 28-4500 Unlicensed dealer and automotive recycler; hearing; civil penalty; suspension of motor vehicle registrations; reinstatement fee

A. The director shall conduct a hearing pursuant to section 28-4491 if an officer authorized to enforce this chapter alleges that a person refuses or fails to comply with a cease and desist order issued pursuant to section 28-4499.

B. The director shall hold the hearing at least fifteen but not more than thirty days after receipt of either of the following:

1. A written request for a hearing.

2. A written notice of hearing as prescribed by section 28-4498 or 28-4499.

C. A finding that a person is in violation of the dealer or automotive recycler licensing requirements of this chapter requires that the person appearing at the hearing is responsible for the violation.

D. If, after reviewing the allegations and results of the hearing, the director determines that the person is in violation of the dealer or automotive recycler licensing provisions of this chapter, the director may impose a civil penalty pursuant to section 28-4501.

E. After consideration of the evidence presented at the hearing, the director shall serve notice of the director's finding and order within five days after the hearing.

F. Unless a continuance is granted, if a person who is alleged to be in violation of the dealer or automotive recycler licensing provisions of this chapter fails to appear for a hearing, the director may suspend the registrations of all motor vehicles owned and leased by the person. The director shall not remove the suspension until the person appears for the hearing and pays a fee of fifty dollars to the department for the reinstatement of each motor vehicle registration and license plate.

§ 28-4501 Licensed or unlicensed dealer and automotive recycler; civil penalty; transaction privilege taxes

A. Notwithstanding the suspension authorized by section 28-4500, if the director finds that a person is in violation of the licensing provisions of this chapter, after a hearing conducted pursuant to section 28-4496, 28-4498, 28-4499 or 28-4500, the director:

1. May impose a civil penalty of at least one thousand dollars but not more than three thousand dollars per violation.

2. Shall require that the person pay all transaction privilege taxes on motor vehicle sales that were conducted in violation of this chapter.

B. The person shall pay the civil penalty imposed pursuant to this section to the department no later than thirty days after the order is final. If the person fails to pay the civil penalty within thirty days after the order is final, the director shall file an action in the superior court in the county in which the hearing is held to collect the civil penalty.

C. The director shall deposit, pursuant to sections 35-146 and 35-147, all civil penalties collected pursuant to this section that result from licensed or unlicensed motor vehicle dealer activity in the motor vehicle dealer enforcement fund established by section 28-4504.

§ 28-4502 Used motor vehicle dealer; violation; classification

In addition to the penalties provided in sections 28-4499, 28-4500 and 28-4501, a person who acts as a used motor vehicle dealer in violation of the licensing provisions of this chapter is guilty of a class 1 misdemeanor.

§ 28-4503 Out-of-business cancellations; hearing

A. Notwithstanding section 28-4494, if the department documents that a licensee has ceased operating as a motor vehicle dealer, the department may cancel the licensee's license and give notice of the cancellation to the licensee in writing. The notice shall state that the department will provide an opportunity for a hearing if the department receives a written request from the licensee for a hearing within thirty days after the notice is sent. If a licensee requests a hearing, the licensee shall show cause at the hearing why the license should not be canceled.

B. If a hearing is requested, the department or the department's duly authorized agent shall issue subpoenas to persons as the licensee requests that require them to be present and testify at the hearing. A transcript of the testimony of witnesses taken at the hearing shall be made and preserved.

C. If a hearing is held, within ten days after the hearing, the department or the department's duly authorized agent shall make written findings of fact and conclusions and by order uphold the cancellation or decline to uphold the cancellation.

§ 28-4504 Motor vehicle dealer enforcement fund

The motor vehicle dealer enforcement fund is established consisting of civil penalties collected pursuant to section 28-4501 that result from licensed or unlicensed motor vehicle dealer activity. The department shall administer the fund. Monies in the fund are subject to legislative appropriations. The director shall deposit all unexpended and unencumbered monies in the fund exceeding two hundred fifty thousand dollars at the end of each fiscal year in the state highway fund established by section 28-6991.

§ 28-4505 Unlicensed motor vehicle dealer enforcement task force; report

A. The unlicensed motor vehicle dealer enforcement task force is established in the department of transportation and consists of the following members:

1. Three members from the department of transportation who are appointed by the director of the department of transportation.

2. Three members from the department of revenue who are appointed by the director of the department of revenue.

3. Three members who represent an independent automobile dealers' association in this state and who are appointed by the director of the department of transportation.

B. The unlicensed motor vehicle dealer enforcement task force shall:

1. Meet at least quarterly to review unlicensed motor vehicle dealer enforcement activities in this state.

2. Submit a report to the director of the department of transportation at least quarterly that contains the status of the task force's findings and provide a copy of this report to the secretary of state.

Article 7 Dealer and Manufacturer License Plates

§ 28-4531 Definitions

In this article, unless the context otherwise requires:

1. "Cargo" means commercial or industrial items but does not include personal items such as luggage and camping equipment.

2. "Dealer" means a new motor vehicle dealer, a used motor vehicle dealer or a wholesale motor vehicle dealer.

3. "Employee of the dealer" means any of the following:

(a) An employee who is paid compensation and who appears on the records of the dealer as an employee for whom social security, withholding taxes and all other deductions required by law for employees are made and for whom all applicable payroll taxes are paid by the dealer.

(b) An independent contractor who appears on the records of the dealer and who is paid compensation for specific services that are performed for the dealer and that require the operation of dealer owned vehicles.

(c) An immediate family member of the dealer who appears on the records of the dealer and who is paid compensation for specific services that are performed for the dealer and that require the operation of dealer owned vehicles. For the purposes of this subdivision, "immediate family member" means a spouse or a parent, child, brother or sister whether related by adoption or blood.

4. "Employee of the manufacturer" means an employee who is paid compensation and who appears on the records of the manufacturer as an employee for whom social security, withholding taxes and all other deductions required by law for employees are made and for whom all applicable payroll taxes are paid by the manufacturer.

5. "Full-time employee of the dealer" means a person who qualifies as an employee of the dealer and who works at least twenty-four hours each week for the dealer.

6. "Full-time employee of the manufacturer" means a person who qualifies as an employee of the manufacturer and who works at least twenty-four hours each week for the manufacturer.

7. "Manufacturer" means a person engaged in the business of manufacturing motor vehicles, trailers or semitrailers or a person engaged in the manufacture of integrated automotive systems and modules that are being tested at or in conjunction with a facility located in this state.

8. "Manufacturer's service program" means a program that originates from a manufacturer and is imposed on that manufacturer's dealers, that provides for the use of new motor vehicles in connection with a new motor vehicle dealer's service operations and that imposes certain duration and mileage restrictions on the use of those new motor vehicles.

9. "Modules" means groups of component parts that are arranged in close physical proximity to each other within a vehicle and that may be assembled by the supplier and shipped to the manufacturer for installation in a vehicle as a unit.

10. "Systems" means groups of component parts that are located throughout a vehicle and that operate together to provide a specific vehicle function.

§ 28-4532 Dealer owned vehicles; registration exemption; use of dealer plates; civil penalty

A. A vehicle that is owned by a dealer and that is otherwise required to be registered is exempt from registration while the vehicle is owned by the dealer. A vehicle owned by a dealer may be operated under owner responsibility on public highways and streets according to the following provisions:

1. The vehicle displays a license plate issued to the owner as provided in this article in the manner prescribed in section 28-2354.

2. The owner, an employee of the dealer or a prospective buyer may operate the vehicle according to subsection C of this section.

B. Dealers' plates shall not be used on the following dealer owned vehicles:

1. A work or service vehicle, except for a vehicle that is owned by a new motor vehicle dealer that has a manufacturer's service program and that is used in that program.

2. A leased or rented vehicle owned by a dealer.

3. A laden vehicle designed for the transportation of cargo unless the cargo consists of no more than three vehicles that are owned by the dealer and the laden vehicle and the cargo are being operated or transported by the dealer for resale.

4. A vehicle that has been sold.

C. Except as provided in subsection B of this section, a dealer plate may be used on a dealer owned vehicle as follows:

1. When operated by the dealer or by an employee of the dealer in connection with the dealer's business. The vehicle may be operated as personal use transportation if it is assigned to a dealer or full-time employee of the dealer on a full-time use basis and if a record of the assignment is made as specified in section 28-4535. The authorized use applies to dealers or employees solely and does not apply to any other person as operator.

2. When operated by a prospective buyer for demonstration purposes for a period of not more than forty-eight hours for passenger vehicles and seventy-two hours for unladen pickups and trucks.

3. When operated by a person who is lawfully engaged in a contract with a dealer to perform any of the following at a permanent site or location where the person conducts business:

(a) Exterior surface protection.

(b) Interior surface protection.

(c) Window sunscreen protection.

(d) Body repair or maintenance.

(e) Undercoating, soundproofing or rustproofing.

(f) Audio equipment installation.

(g) Other similar work required to prepare a vehicle for sale to the public.

D. A person who violates this section is subject to a civil penalty of up to five hundred dollars.

§ 28-4533 Dealer's certificate; dealer license plates; fees

A. A dealer may apply to the department, on a form provided for that purpose, for a dealer's certificate containing a general distinguishing number. If the applicant is a dealer in new motor vehicles, trailers or semitrailers, the applicant shall submit satisfactory proof that the applicant is a duly authorized distributor or dealer for a manufacturer.

B. The department may issue dealer license plates to each dealer as follows:

1. For new motor vehicle dealers, not more than one hundred fifty dealer license plates.

2. For used motor vehicle dealers, not more than fifteen dealer license plates plus one additional license plate for every fifty vehicles that are sold based on reported sales in the previous license year.

3. For wholesale motor vehicle dealers, not more than two dealer license plates plus one additional license plate for every fifty vehicles that are sold based on reported sales in the previous license year. All of the following requirements apply to dealer license plates issued pursuant to this paragraph:

(a) Before the wholesale motor vehicle dealer's license continuation date, the wholesale motor vehicle dealer must submit evidence satisfactory to the department that the wholesale motor vehicle dealer has sold at least ten vehicles to one or more licensed new or used motor vehicle dealers in the previous license year.

(b) If the wholesale motor vehicle dealer does not submit the evidence prescribed in subdivision (a) of this paragraph, the department shall cancel the dealer license plates issued to the wholesale motor vehicle dealer.

(c) The department shall not issue more than ten dealer license plates to a wholesale motor vehicle dealer pursuant to this paragraph.

C. The department, on granting the application, shall issue to the applicant a certificate containing the applicant's name and address and the general distinguishing number assigned to the applicant and the dealer license plates for which the applicant applied on payment of the fee provided in this section.

D. The fee for each license plate or pair of license plates issued to a dealer is:

1. $30, if the dealer is not a motorcycle dealer.

2. $10, if the dealer is a motorcycle dealer.

E. The director may recall, redesign and reissue dealer license plates pursuant to this article. The plate or pair of plates issued shall contain a number or symbol distinguishing them from every other plate or pair of plates issued to the same dealer. The director shall not allow a request for dealer license plates to be combined with a request for a personalized special plate issued pursuant to section 28-2406. Reissued dealer license plates shall be distributed as determined by the director.

F. The right to use a dealer license plate issued terminates at midnight on the last day of the month in which the plate fees are due unless the plate fees for the following year are paid.

G. A dealer who applies for and obtains dealer license plates shall comply with chapter 9 of this title.

§ 28-4534 Continuation date; delinquent fee; penalty

A. In order to distribute the continuation workload as uniformly as practicable throughout the twelve months of the calendar year, the director may provide for staggered continuation dates for the right to use a dealer license plate. In order to initiate a staggered continuation system, the director may initially provide or continue the right for more or less than a twelve month period, but not more than eighteen months, and may prorate the fees.

B. If a dealer fails, neglects or refuses to pay the required fee for the ensuing year on or before midnight on the continuation date, the fee is delinquent, and the department shall charge and collect a penalty equal to the fee if the dealer files an application for reinstatement after the continuation date.

§ 28-4535 Dealer records; replacement; fee

A. A dealer shall keep a written record of the vehicles on which the dealer license plate or plates are used and the person to whom each plate or pair of plates is assigned. The dealer shall make the record available for inspection by the department, a member of the highway patrol or any other peace officer.

B. The record required by this section shall contain the following information for each dealer license plate:

1. The date assigned.

2. The make, type, year, model and identification number of a vehicle to which it is assigned.

3. The name and address of any assignee.

C. The director may authorize a dealer to use an inventory stock number in lieu of the vehicle identification number required in subsection B of this section if the director is satisfied that the dealer's records are sufficiently detailed and accurately maintained to disclose the full vehicle identity if necessary.

D. If a dealer license plate is lost or stolen, the dealer shall make a written report immediately to the director that identifies the plate by type and number, including all available data concerning the loss or theft.

E. For each dealer license plate, pair of plates or year validating tab to replace lost, destroyed or mutilated plates or tab, the dealer shall pay a replacement fee as prescribed in section 28-4542.

§ 28-4536 Authority to operate vehicle with cargo

If a valid demonstration of a vehicle cannot be accomplished without hauling cargo on the vehicle, the director may issue, on written application, special authority before the actual demonstration for the laden movement while displaying a dealer license plate.

§ 28-4538 Suspension of dealer and manufacturer license plates

A. The department shall suspend the use of any or all of the dealer license plates issued to a dealer for not more than three months if a dealer violates section 28-4532, 28-4533, 28-4534, 28-4535 or 28-4536.

B. If the director finds that a manufacturer or licensed dealer displays a manufacturer or dealer license plate that is provided pursuant to section 28-4533, 28-4540 or 28-4544 on a work or service vehicle, a vehicle used for private use or a vehicle for hire, the director may suspend the right of the dealer or manufacturer to use the plate.

C. A manufacturer or licensed dealer who receives a notice of suspension pursuant to subsection B of this section may submit a written request for a hearing to the director. The manufacturer or licensed dealer shall submit the request for a hearing within thirty days after the manufacturer or licensed dealer receives the notice of suspension.

§ 28-4539 Manufacturer unladen truck and passenger vehicles; registration exemption

A. An unladen truck or passenger vehicle that is owned by a manufacturer and that is of a type otherwise required to be registered is exempt from registration while the vehicle is being used according to this section. The vehicle may be operated under owner responsibility on public highways and streets if the vehicle displays in the manner prescribed in section 28-2354 a manufacturer unladen truck and passenger vehicle test license plate or plates issued to the owner as provided in this section.

B. A person shall not use a manufacturer unladen vehicle test license plate on the following manufacturer owned unladen trucks or passenger vehicles:

1. A leased or rented vehicle owned by the manufacturer.

2. A vehicle carrying more than three hundred pounds of cargo.

3. A work or service vehicle.

4. A vehicle that has been sold.

5. A laden vehicle designed for the transportation of cargo.

C. Except as provided in subsection B of this section, the manufacturer, a full-time employee of the manufacturer in connection with the manufacturer's business, a person who has permission of a full-time employee or a person contracted and designated by the manufacturer to operate the vehicle for business purposes may use a manufacturer unladen vehicle test license plate on a vehicle. The use authorized by this subsection includes operation of the vehicle as personal use transportation if it is assigned to a manufacturer or full-time employee or contracted person on a full-time use basis and if a record of the assignment is made as provided in section 28-4542 or other evidence of a contract and designation between the manufacturer and the person is present inside the vehicle.

§ 28-4540 Manufacturer unladen vehicle test license plates and certificate; fee

A. A manufacturer may obtain a general distinguishing number and one or more pairs of unladen vehicle test license plates or single test plates appropriate to various types of vehicles by applying to the department on a form provided by the department and by paying a fee of thirty dollars for each plate.

B. After granting the application, the department shall issue to the applicant a certificate containing the applicant's name and address and the general distinguishing number assigned to the applicant and the unladen vehicle test license plates for which the applicant applied.

C. The test license plate or pair of plates issued shall contain a number or symbol distinguishing them from every other test license plate or pair of plates issued to the same manufacturer.

D. The right to use a test license plate issued for a calendar year terminates at midnight on December 31 of each year unless the plate is renewed.

E. A manufacturer who applies for and obtains manufacturer unladen vehicle test license plates shall comply with chapter 9 of this title.

§ 28-4541 Continuation date; delinquent fee due from manufacturer; penalty

A. In order to distribute the continuation workload as uniformly as practicable throughout the twelve months of the calendar year, the director may provide for staggered continuation dates for the right to use a manufacturer license plate. In order to initiate a staggered continuation system, the director may initially provide or continue the right for more or less than a twelve month period, but not more than eighteen months, and may prorate the fees.

B. If a manufacturer fails, neglects or refuses to file an application for renewal and pay the required fee for the ensuing year on or before midnight on the continuation date, the fee is delinquent, and the department shall charge and collect a penalty equal to the fee if the manufacturer files an application for renewal after the continuation date.

§ 28-4542 Manufacturer records; replacement; fee

A. A manufacturer shall keep a written record of the vehicles on which the unladen vehicle test license plate or plates are used and the person to whom each test license plate or pair of plates is assigned. The manufacturer shall make the record available for inspection by the department, an officer or agent of the department, a member of the highway patrol or a peace officer.

B. The record required by this section shall contain the following information for each test license plate:

1. The date assigned.

2. The make, type, year, model and identification number of a vehicle to which it is assigned and the name and address of any assignee.

C. The director may authorize a manufacturer to use an inventory stock number in lieu of the vehicle identification number required in subsection B if the director is satisfied that the manufacturer's records are sufficiently detailed and accurately maintained to disclose the full vehicle identity if necessary.

D. If a manufacturer unladen vehicle test license plate is lost or stolen, the manufacturer shall make a written report immediately to the director that identifies the plate by type and number, including all available data concerning the loss or theft.

E. For each test license plate, pair of plates or year validating tab to replace lost, destroyed or mutilated plates or tab, the manufacturer shall pay a replacement fee of five dollars.

§ 28-4544 Manufacturer laden vehicle test license plates; fees

A. For the purposes of testing laden vehicles designed for the transportation of cargo, a manufacturer may obtain a manufacturer laden vehicle test license plate or year validation tab by applying to the department and by paying an annual fee as follows:

1. Thirty-six dollars, for a vehicle with a declared gross weight of twelve thousand pounds or less.

2. Two hundred fifty-three dollars, for a vehicle with a declared gross weight of more than twelve thousand pounds but not more than twenty-six thousand pounds.

3. One thousand seventy dollars, for a vehicle with a declared gross weight of more than twenty-six thousand pounds.

B. Except as provided in subsection C of this section, the manufacturer shall use the laden vehicle test license plate on a laden vehicle that is being tested on the highways of this state by the manufacturer during the period for which the fee is paid.

C. A manufacturer shall not use a manufacturer laden vehicle test license plate issued for a vehicle in one fee class pursuant to subsection A of this section on a vehicle in another fee class designated for a vehicle with a higher declared gross weight.

D. The procedures for applying for and receiving a manufacturer laden vehicle test license plate and the privileges and restrictions on the use of the plates are the same as for a manufacturer unladen truck and passenger vehicle test license plate as provided by sections 28-4539 through 28-4542, except that a person operating a laden vehicle with a manufacturer laden vehicle test license plate may not operate or use the laden vehicle for personal use transportation.

§ 28-4545 Manufacturer's and dealer's permit to move without license plates

A manufacturer of motor vehicles, trailers or semitrailers may operate or move the vehicles for a distance of seventy-five miles and a dealer in new motor vehicles, trailers or semitrailers may operate or move the vehicles for a distance of fifty miles, or a further distance authorized by the department, to or from the factory where the vehicles are manufactured or a railway depot, vessel, place of shipment or delivery or salesroom without registering them and without license plates attached if both:

1. A written permit is first obtained from the department or local authority with jurisdiction over the highway traversed.

2. A placard bearing the name and address of the manufacturer authorizing or directing the movement is prominently displayed on each vehicle and is plainly readable from a distance of one hundred feet during daylight.

§ 28-4546 Temporary registration plates

A. The director may issue to new motor vehicle dealers and used motor vehicle dealers temporary registration plates that dealers may issue subject to the limitations and conditions prescribed in sections 28-4547 through 28-4554.

B. The director shall establish a system to require the recording of temporary registration plate information through electronic media on the department's vehicle title and registration database. The temporary registration plate information shall be made available to law enforcement officers. The director shall implement the recording of temporary registration plate information through electronic media when the director determines the system is operational, but no later than July 1, 2003.

§ 28-4547 Requirements for temporary registration plates

A. A dealer shall not:

1. Issue, assign or deliver temporary registration plates to anyone other than a bona fide purchaser of a vehicle that is not registered for the current year.

2. Issue temporary registration plates unless the purchaser files an application for a certificate of title and an application for annual registration of the vehicle before or at the time the plates are issued.

3. Issue temporary registration plates unless the application for a certificate of title is accompanied by either a manufacturer's certificate of origin properly assigned by a licensed new motor vehicle dealer, a properly signed certificate of title or a title transfer form.

B. The dealer, as the agent of the purchaser, shall forward the application for a certificate of title, the application for registration and the prescribed fees for both applications to the department.

§ 28-4548 Issuance of temporary registration permits by manufacturers or dealers

Notwithstanding section 28-4547, the director may furnish to licensed manufacturers or new motor vehicle dealers temporary registration permits that the manufacturer or dealer may issue if temporarily donating new motor vehicles to either of the following:

1. An organization that has qualified for an exemption from taxation of income under section 501 of the internal revenue code.

2. This state or a political subdivision of this state.

§ 28-4549 Electronic record of temporary registration as notice of transfer; fee

A dealer who issues temporary registration plates shall send to the department through an authorized third party or the department's authorized third party electronic service provider before the dealer issues the plates an electronic record of the temporary registration plates. This electronic record is written notice of the transfer. Each dealer sending an electronic record of the temporary registration permit through the department's authorized third party electronic service provider shall pay a fee of one dollar to the department's authorized third party electronic service provider.

§ 28-4550 Temporary registration plate

A person who issues temporary registration plates shall affix or insert, clearly and indelibly, on the face of each temporary registration plate the date of issuance and expiration and the make and vehicle identification number of the vehicle. The temporary registration plates shall not bear the name or address of the person who purchased the vehicle in a position that is legible from outside the vehicle.

§ 28-4551 Expiration of temporary registration

A. A temporary registration plate expires and is void on receipt of a license plate provided pursuant to section 28-2351 or a year validating tab or on expiration of forty-five days from the date of issuance.

B. A person to whom a temporary registration plate has been issued shall destroy the temporary registration plate immediately on receipt of a license plate provided pursuant to section 28-2351 or a year validating tab. If a license plate or year validating tab is not received within forty-five days from the issuance of the temporary registration plate, the owner shall destroy the temporary registration plate immediately on expiration of the forty-five day period.

§ 28-4552 Dealer records; temporary registration plates

A. A dealer to whom temporary registration plates are issued shall maintain in permanent form a record of all temporary registration plates delivered to the dealer, a record of all temporary registration plates issued by the dealer and a record of other information pertaining to the receipt or issuance of temporary registration plates that the department requires.

B. The dealer shall keep each record for at least three years from the date of entry of the record.

C. A dealer shall allow the director full and free access to the records during regular business hours.

§ 28-4553 Temporary registration plates; violation; classification

A. A dealer shall not lend to a person or use on a vehicle that the dealer owns temporary registration plates.

B. A person shall not:

1. Issue a temporary registration plate before sending an electronic record to the department. A person who violates this paragraph is guilty of a class 3 misdemeanor.

2. Issue a temporary registration plate containing a misstatement of fact. A person who violates this paragraph is guilty of a class 3 misdemeanor.

3. Knowingly insert false information on the face of the temporary registration plate. A person who violates this paragraph is guilty of a class 2 misdemeanor.

§ 28-4554 Suspension of issuance of temporary registration plates

A. If the director finds that a dealer has not complied with sections 28-4546 through 28-4553 or the directions of the director, the director may suspend the right of the dealer to issue temporary registration plates.

B. A dealer who receives a notice of suspension may submit a written request for a hearing to the director. The dealer shall submit the request for a hearing within thirty days after the dealer receives the notice of suspension.

§ 28-4555 Notice of vehicle transfer

A. A manufacturer, dealer, wholesale motor vehicle auction dealer, distributor, factory branch, distributor branch, field representative or officer or an agent or representative of a manufacturer, dealer, wholesale motor vehicle auction dealer, distributor, factory branch, distributor branch, field representative or officer, on transferring a motor vehicle, whether by sale, lease or otherwise, to a person shall give written or electronic notice of the transfer to the department within fifteen days after the transfer. The notice shall contain the date of the transfer, the names and addresses of the transferor and transferee, the vehicle identification number of the motor vehicle and the make and model year of the motor vehicle.

B. The notice prescribed by subsection A of this section is met by the issuance or submittal of any of the following to the department in a manner prescribed by the director:

1. A temporary registration permit issued by a licensed new motor vehicle dealer or used motor vehicle dealer.

2. A sold notice.

3. A notice of title transfer.

4. A notice of transfer indicating the transfer of ownership from one licensed dealer to another licensed dealer.

5. Any information that is prescribed by the director and that is submitted in an electronic format.

C. The notice prescribed by subsection A of this section that relates to wholesale motor vehicle auction dealers does not apply until both:

1. The department implements a system that allows the wholesale motor vehicle auction dealer to submit the notice electronically to the department individually or through an electronic updating process at the option of the dealer.

2. Ninety days after the department provides written notice of the system's implementation to each wholesale motor vehicle auction dealer.

§ 28-4556 Disposition of fees; highway user revenue fund

Except as otherwise provided by statute, the director shall immediately deposit, pursuant to sections 35-146 and 35-147, fees collected under this article in the Arizona highway user revenue fund.

Article 8 Violations

§ 28-4591 Violation; classification

A person who violates this article or articles 1 through 7 of this chapter is guilty of a class 3 misdemeanor unless another classification is specifically prescribed in this chapter.

§ 28-4592 License assignment prohibited; classification

A licensee who assigns a license to another person is guilty of a class 1 misdemeanor.

§ 28-4593 Altering a serial or identification number; classification; exception

A. A person who knowingly removes, defaces, alters or destroys a manufacturer's serial or identification number of a motor vehicle or major component part of a vehicle without the permission of the department is guilty of a class 3 misdemeanor.

B. A person who intentionally removes, defaces, alters or destroys a manufacturer's serial or identification number of a motor vehicle or major component part of a vehicle with the intent to alter the identity of that or another motor vehicle or major component part is guilty of a class 5 felony.

C. This section does not apply to a person who, for motor vehicles manufactured before 1981, removes and reinstalls a manufacturer's serial or identification number from a motor vehicle if the removal and reinstallation are reasonably necessary for repair or restoration, unless the person knows or has reason to know that the motor vehicle is stolen.

§ 28-4594 Altered serial or identification number; contraband; seizure; disposition

A. Except if a manufacturer's serial or identification number of a motor vehicle or major component part of a vehicle is removed, defaced, altered or destroyed with the permission of the department or is removed and reinstalled as described in section 28-2531, subsection E or if a special serial or identifying number issued by the department has been properly affixed to a vehicle pursuant to section 28-2165, a motor vehicle or major component part of the vehicle that has had the manufacturer's or department's serial or identification number removed, defaced, altered or destroyed and a serial or identification number so removed are contraband.

B. A law enforcement agency shall both:

1. Immediately seize and store the motor vehicle or major component part of a vehicle or serial or identification number that is contraband pursuant to subsection A of this section.

2. Attempt to restore the original manufacturer's serial or identification numbers on the item seized as follows:

(a) If the original identification numbers can be permanently restored and the last owner as identified on official title records maintained by the vehicle registration agency of the state, country or territory in which the vehicle was last issued a certificate of title or the person or entity to which a certificate of title was assigned by the last owner as identified on official title records can be found, the law enforcement agency shall return the motor vehicle or major component part of a vehicle to the person or entity.

(b) If the original identification numbers can be temporarily restored and the last owner as identified on official title records maintained by the vehicle registration agency of the state, country or territory in which the vehicle was last issued a certificate of title or the person or entity to which a certificate of title was assigned by the last owner as identified on official title records can be found, the county attorney of the county in which the motor vehicle or major component part of a vehicle was seized or the attorney general, within sixty days after the date of seizure or such other reasonable time that is set by the court, shall file a petition or action in the superior court in the county in which the item was seized or in Maricopa county to forfeit the motor vehicle or major component part of a vehicle to this state for use or other appropriate disposition by the law enforcement agency that seized the item or for such other disposition as the state deems appropriate. The petition shall set forth probable cause that the item is contraband. A copy of the petition or notice of pending forfeiture shall be served as follows:

(i) On the person from whom the item was seized by certified mail to the person's last known address.

(ii) On the last owner and any lienholders or interest holders identified on official title records by certified mail to the names and addresses identified on official title records.

(iii) On any other known interest holders by certified mail to each holder's last known address.

(iv) By publication in one issue of a newspaper of general circulation in the county in which the property was seized.

(c) If the original identification numbers cannot be permanently or temporarily restored or the last owner as identified on official title records cannot be found, the county attorney in the county in which the motor vehicle or major component part of a vehicle was seized or the attorney general, within sixty days after the date of seizure or such other reasonable time as is set by the court, shall file a petition or action in the superior court in the county in which the item was seized or in Maricopa county to forfeit the motor vehicle or major component part of a vehicle to this state for use or other appropriate disposition by the law enforcement agency that seized the item or for such other disposition as the state deems appropriate. The petition shall set forth probable cause that the item is contraband. A copy of the petition or notice of pending forfeiture shall be served on the person from whom the item was seized by certified mail to the person's last known address.

C. If a verified claim is not filed within the time period provided in section 28-4595, subsection A, the court shall declare the seized item to be contraband and shall sign an order forfeiting the seized item to the state for use or other appropriate disposition by the law enforcement agency that seized the item or for other disposition as the state deems appropriate.

§ 28-4595 Verified claim disputing contraband status; hearing; disposition

A. Within thirty days after the date of service of the notice required by section 28-4594, any person claiming an interest in the item seized may file a verified claim, signed by the claimant, disputing the contraband status of the item seized. The verified claim shall include the following:

1. A statement that the claimant is the lawful owner of the item seized and the basis, including documentation, for the claim of ownership.

2. A statement setting forth which portions of the seized item are claimed not to be contraband and the basis for each claim.

B. If a verified claim is filed within the time period provided in subsection A of this section, the court shall conduct a hearing to determine whether the item seized is contraband. Notice of the hearing shall be provided to all persons who filed verified claims in accordance with this section.

C. If a claimant does not prove by a preponderance of the evidence that the original identification numbers can be permanently restored to the item or that the item can be rendered noncontraband, the court shall declare the item contraband and forfeit the item to this state for use or other appropriate disposition by the law enforcement agency that seized the item or for other disposition as the state deems appropriate.

D. If a claimant proves by a preponderance of the evidence that all or any portion of the item seized is not contraband, the claimant proving lawful ownership of that portion of the seized item, within thirty days or within a reasonable time period set by the court, may segregate and retrieve at the claimant's cost all or any portion of the seized item determined by the court not to be contraband. The seizing agency shall sell or otherwise dispose of all or any portion of the item not retrieved by the claimant within the prescribed time period, and the proceeds of the disposition, less any costs incurred by the seizing agency, shall be returned to the claimant proving lawful ownership at the claimant's address of record.

E. On return of a motor vehicle or a major component part of a vehicle that can be rendered noncontraband by obtaining a special serial number pursuant to section 28-2165, the person who is awarded possession of the item shall apply to the department within ten days after taking possession for assignment of a special serial number pursuant to section 28-2165 and shall file with the court proof that the application was made. After the granting or denial of an application for a special serial number, the person who is awarded possession of the item shall file proof with the court that a special serial number was obtained or denied. If the application is denied:

1. The court shall order the person awarded possession of the item to return the item to the seizing agency.

2. The seizing agency shall sell or otherwise dispose of the item.

3. The proceeds of the disposition, less any costs incurred by the seizing agency, shall be returned to the claimant proving lawful ownership at the claimant's address of record.

F. An item defined as contraband in section 28-4594, subsection A shall not be returned to a claimant under any circumstances.

Article 9 Transporter License Plates

§ 28-4621 Definitions

In this article, unless the context otherwise requires:

1. "Driveaway or towaway methods" means the transportation service rendered by a transporter by which motor vehicles are driven singly or in combinations by the tow bar, saddle-mount or full-mount methods or a lawful combination of the tow bar, saddle-mount or full-mount methods or by which a truck or truck tractor tows or draws a semitrailer or trailer.

2. "Transporter" means a person who is lawfully engaged in the business of transporting or delivering vehicles that are not the person's own and vehicles of a type otherwise required to be registered, by the driveaway or towaway methods, from a point of manufacture, assembly or distribution or from the owner of the vehicles to a dealer or sales agent of a manufacturer or to any consignee designated by the shipper or consignor.

§ 28-4622 Exceptions

This article does not apply to work or service vehicles that are owned or operated by a transporter or that are hauled by the truckaway method.

§ 28-4623 Transporter certificate; transporter license plates and tabs

A. A transporter may apply to the department on the appropriate form for a certificate containing a general distinguishing number and for two or more single transporter license plates.

B. The applicant shall submit proof of the applicant's status as a bona fide transporter as reasonably required, tender the proper fees as required by section 28-4629 and submit proof of compliance with chapter 16, article 4 of this title.

C. On granting the application, the department shall issue to the applicant a registration certificate containing the applicant's name, address and identifying status and the general distinguishing number assigned solely to the applicant.

D. The department shall issue single serially numbered transporter license plates for which the applicant applied. The transporter license plates shall display a symbol identifying the status of the applicant.

E. A certificate or transporter license plate or tab expires at midnight on December 31 of each year.

F. In lieu of issuing new plates annually, the department may furnish and issue tabs to indicate the year for which the plates are valid.

§ 28-4624 Vehicles with transporter license plates; registration exemption

Notwithstanding any other law, a transporter may operate, move or transport a vehicle that is not the transporter's own and that is otherwise required to be registered without registering the vehicle if all of the following conditions are met:

1. The driveaway or towaway methods are used.

2. The sole purpose is to transport or deliver the vehicle.

3. One transporter license plate issued to the transporter pursuant to this article is displayed on the vehicle.

§ 28-4625 Display of transporter license plates

A. If a transporter operates one vehicle singly, the vehicle shall display a transporter license plate on the front of the vehicle.

B. If a transporter operates and moves more than one vehicle, the first vehicle in the combination shall display one transporter license plate on the front of the vehicle and each other vehicle in the combination shall display one plate on the rear of the vehicle.

§ 28-4626 Transporter records

A. A transporter shall keep a written record of the vehicles on which the plates are used and of the date of use. The transporter shall make available to the director for inspection all of the records of the transporter.

B. A copy of bills of lading showing invoices or orders or other documents containing the following information is a sufficient record:

1. The names of the consignor and consignee.

2. A complete description of the vehicle, including the make, model, year of manufacture, motor number and serial number.

C. The transporter shall file one executed copy of the document at the office of the director or at a port of entry.

§ 28-4627 Suspension or revocation; reissue

A. After an impartial investigation, the director may notify a transporter who is allegedly violating this article of a hearing to be held before the director after ten days. On hearing the evidence and on finding and determining that fraud has been committed in the application for a certificate or a transporter license plate or tab or in the use of a plate or tab or that there is no satisfactory proof of the status of the transporter, the director may withhold, suspend or revoke a certificate or a transporter license plate or tab.

B. On good cause shown, the director may reissue a certificate or a transporter license plate or tab after it has been withheld, suspended or revoked.

§ 28-4628 Violation; classification

A person who violates a provision of this article or a person who wrongfully uses or permits wrongful use of the privileges of this article by any other person is guilty of a class 3 misdemeanor.

§ 28-4629 Fees

A. The following fees are required:

1. For the registration certificate and the first two transporter license plates or tabs issued to a transporter, three hundred seventy-five dollars.

2. For each additional transporter license plate or tab and for replacement of each plate or tab, thirty dollars.

3. For replacement of lost certificates or for additional copies of a certificate, seven dollars fifty cents.

B. The fees provided in this section are in full consideration for the right to use the highways of this state and are in lieu of all other taxes and fees except fuel taxes and the motor carrier fee required by chapter 16, article 4 of this title.

§ 28-4630 Election for limited operation transporters

In lieu of complying with this article, a transporter that has a limited operation may elect to comply with all other applicable statutes.

§ 28-4631 Transfer prohibited

The certificate and transporter license plates and tabs issued pursuant to this article are not transferable from the applicant and holder to any other person.

§ 28-4632 Deposit of monies

The director shall deposit, pursuant to sections 35-146 and 35-147, monies received or collected by the director pursuant to this article in the Arizona highway user revenue fund before the fifteenth day of each month.

Article 10 Protected Data

§ 28-4651 Definitions

In this article, unless the context otherwise requires:

1. "Authorized Integrator” means a third party with whom a dealer enters into a contractual relationship to perform a specific function for a dealer that allows the third party to access protected dealer data or to write data to a dealer data system, or both, to carry out the specified function.

2. "Cyber ransom" means to encrypt, restrict or prohibit or threaten or attempt to encrypt, restrict or prohibit a dealer's or a dealer's authorized integrator's access to protected dealer data for monetary gain.

3. "Dealer data system":

(a) Means a software, hardware or firmware system that is owned, leased or licensed by a dealer, that includes a system of web-based applications, computer software or computer hardware, whether located at the motor vehicle dealership or hosted remotely, and that stores or provides access to protected dealer data.

(b) Includes dealership management systems and consumer relations management systems.

4. "Dealer data vendor" means a dealer management system provider, consumer relationship management system provider or other vendor providing similar services that permissibly stores protected dealer data pursuant to a contract with the dealer.

5. "Fee" means a charge for allowing access to protected dealer data beyond any direct costs incurred by the dealer data vendor in providing protected dealer data access to an authorized integrator or allowing an authorized integrator to write data to a dealer data system.

6. "Prior express written consent" means the dealer's express written consent that is contained in a document separate from any other consent, contract, franchise agreement or other writing and that contains:

(a) The dealer's consent to the data sharing and identification of all parties with whom the data may be shared.

(b) All details that the dealer requires relating to the scope and nature of the data to be shared, including the data fields and the duration for which the sharing is authorized.

(c) All provisions and restrictions that are required under federal law to allow the sharing.

7. "Protected dealer data" means any:

(a) Personal, financial or other data relating to a consumer that a consumer provides to a dealer or that a dealer otherwise obtains and that is stored in the dealer's dealer data system.

(b) Motor vehicle diagnostic data that is stored in a dealer data system. This subdivision does not give a dealer any ownership or rights to share or use the motor vehicle diagnostic data beyond what is necessary to fulfill a dealer's obligation to provide warranty, repair or service work to its consumers.

(c) Other data that relates to a dealer's business operations in the dealer's dealer data system.

8. "Required manufacturer data":

(a) Means data that is required to be obtained by the manufacturer under federal or state law or to complete or verify a transaction between the dealer and the manufacturer.

(b) Includes information that is reasonably necessary for any of the following:

(i) A safety, recall or other legal notice obligation.

(ii) The sale and delivery of a new motor vehicle or a certified used motor vehicle to a consumer.

(iii) The validation and payment of consumer or dealer incentives.

(iv) Claims for dealer supplied services relating to warranty parts or repairs.

(v) The evaluation of dealer performance, including without limitation the evaluation of the dealer's monthly financial statements and sales or service, consumer satisfaction with the dealer through direct consumer contact or consumer surveys.

(vi) Dealer and market analytics.

(vii) The identification of the dealer that sold or leased a specific motor vehicle and the date of the transaction.

(viii) Marketing purposes designed for the benefit of or to direct leads to dealers but does not include a consumer's financial information on the consumer's credit application or a dealer's individualized notes about a consumer which are not related to a transaction.

(ix) Motor vehicle diagnostic data.

(x) The development, evaluation or improvement of the manufacturer's products or services.

9. "Star standards" means the current, applicable security standards published by the standards for technology in automotive retail.

10. "Third party":

(a) Includes a service provider, vendor, including a dealer data vendor and authorized integrator, and any other person other than the dealer.

(b) Does not include a governmental entity acting pursuant to federal, state or local law, a third party acting pursuant to a valid court order or a manufacturer.

§ 28-4652 Dealers; data submission to manufacturers or third parties

A manufacturer or a third party may not require a dealer to grant the manufacturer, the third party or any person acting on behalf of the manufacturer or third party direct or indirect access to the dealer's dealer data system. Instead of providing a manufacturer or third party with access to the dealer's data system, a dealer may submit or push data or information to a manufacturer or third party through any widely acceptable electronic file format or protocol that complies with the star standards or other generally accepted standards that are at least as comprehensive as the star standards.

§ 28-4653 Manufacturers and third parties; prohibitions; requirements

A. A third party may not do any of the following:

1. Access, share, sell, copy, use or transmit protected dealer data without prior express written consent.

2. Engage in any act of cyber ransom.

3. Take any action by contract, technical means or otherwise to prohibit or limit a dealer's ability to protect, store, copy, share or use protected dealer data, including all of the following:

(a) Imposing any fee or other restriction on the dealer or an authorized integrator for accessing or sharing protected dealer data or for writing data to a dealer data system, including any fee on a dealer that chooses to submit or push data or information to the third party as prescribed in section 28-4652. A third party must disclose a charge to the dealer and justify the charge by documentary evidence of the costs associated with access or the charge will be deemed to be a fee pursuant to this subdivision.

(b) Prohibiting a third party that has satisfied or is compliant with the star standards or other generally accepted standards that are at least as comprehensive as the star standards and that the dealer has identified as one of its authorized integrators from integrating into the dealer's dealer data system or placing an unreasonable restriction on integration by an authorized integrator or other third party that the dealer wishes to be an authorized integrator. For the purposes of this subdivision, "unreasonable restriction" includes:

(i) An unreasonable limitation or condition on the scope or nature of the data that is shared with an authorized integrator.

(ii) An unreasonable limitation or condition on the ability of the authorized integrator to write data to a dealer data system.

(iii) An unreasonable limitation or condition on a third party that accesses or shares protected dealer data or that writes data to a dealer data system.

(iv) Requiring unreasonable access to a third party's sensitive, competitive or other confidential business information as a condition for accessing protected dealer data or sharing protected dealer data with an authorized integrator.

(v) Prohibiting or limiting a dealer's ability to store, copy, securely share or use protected dealer data outside of the dealer data system in any manner and for any reason.

(vi) Allowing access to or accessing protected dealer data without prior express written consent.

B. Prior express written consent may:

1. Be unilaterally revoked or amended by the dealer with thirty days' notice without cause and immediately for cause.

2. Not be sought or required as a condition of or factor for consideration or eligibility for any manufacturer program, standard or policy, including those that offer or relate to a bonus, incentive, rebate or other payment or benefit to a dealer, except that if the bonus, incentive, rebate or other payment program requires the delivery of the information that is protected dealer data to qualify for the program and receive the program benefits, a dealer must supply the information to participate in the program.

C. This section does not prevent a dealer, manufacturer or third party from discharging its obligations as a service provider or otherwise under federal, state or local law to protect and secure protected dealer data or to otherwise limit those responsibilities.

D. Unless a dealer gives prior written consent, a manufacturer may not access, share, sell, copy, use or transmit or require a dealer to share or provide access to protected dealer data beyond the required manufacturer data and may use any required manufacturer data obtained from a dealer data system for the purposes listed in section 28-4651, paragraph 8.

E. A manufacturer may not engage in an act of cyber ransom or take an action by contract, technical means or otherwise to prohibit or limit a dealer's ability to protect, store, copy, share or use protected dealer data, including actions described in subsection A, paragraph 3, subdivision (b) of this section. A manufacturer or a manufacturer's selected third party may not require a dealer to pay a fee for the sharing of required manufacturer data if the manufacturer both:

1. Requires a dealer to provide required manufacturer data through a specific third party that the manufacturer selects.

2. Does not allow the dealer to submit the data using the dealer's choice of a third-party vendor and both of the following apply:

(a) The data is in a format that is compatible with the file format required by the manufacturer.

(b) The third-party vendor satisfies or is in compliance with the star standards or other generally accepted standards that are at least as comprehensive as the star standards.

F. A manufacturer shall indemnify a dealer for any third-party claims asserted against or damages incurred by the dealer to the extent caused by access to, use of or disclosure of protected dealer data in violation of this section by the manufacturer or a third party acting on behalf of a manufacturer to whom the manufacturer has provided the protected dealer data. A dealer bringing a cause of action against a manufacturer for a violation of this section has the burden of proof.

G. Notwithstanding subsection D of this section and except as provided in section 28-4655, this article does not restrict or limit a manufacturer's right to obtain required manufacturer data, use required manufacturer data for the purposes prescribed by subsection D of this section or use or control data that is proprietary to the manufacturer, created by the manufacturer, obtained from a source other than the dealer or that is public information.

§ 28-4654 Dealer data vendors; authorized integrators; requirements

A. A dealer data vendor shall:

1. Adopt and make available a standardized framework for the exchange, integration and sharing of data from dealer data systems with authorized integrators and the retrieval of data by authorized integrators using the star standards or a standard that is compatible with the star standards.

2. Provide access to open application programming interfaces to authorized integrators. If the application programming interfaces are not the reasonable commercial or technical standard for secure data integration, the dealer data vendor may provide a similar open access integration method if that method provides the same or better access to authorized integrators as an application programming interface and uses the required standardized framework.

B. A dealer data vendor and authorized integrator:

1. May access, use, store or share protected dealer data or any other data from a dealer data system only to the extent allowed in the written agreement with the dealer.

2. Must make any agreement relating to access to, sharing or selling of, copying, using or transmitting protected dealer data terminable on ninety days' notice from the dealer.

3. On notice of the dealer's intent to terminate the agreement, in order to prevent any risk of consumer harm or inconvenience, must work to ensure a secure transition of all protected dealer data to a successor dealer data vendor or authorized integrator, including:

(a) Providing access to or an electronic copy of all protected dealer data and all other data stored in the dealer data system in a commercially reasonable time and format that a successor dealer data vendor or authorized integrator can access and use.

(b) Deleting or returning to the dealer all protected dealer data before the contract terminates pursuant to the dealer's written directions.

4. On a dealer's request, must provide the dealer with a listing of all entities with whom it is sharing protected dealer data or with whom it has allowed access to protected dealer data.

5. Must allow a dealer to audit the dealer data vendor or authorized integrator's access to and use of any protected dealer data.

§ 28-4655 Applicability

This article does not:

1. Govern, restrict or apply to data that exists outside of a dealer data system, including data that is generated by a motor vehicle or devices that a consumer connects to a motor vehicle.

2. Authorize a dealer or third party to use data that is obtained from a person in a manner that is inconsistent with either:

(a) An agreement with the person.

(b) The purposes for which the person provided the data to the dealer or third party.

Chapter 11 Abandoned, Seized and Junk Vehicles

Article 1 General Provisions

§ 28-4801 Definitions

In this chapter, unless the context otherwise requires:

1. "Abandoned vehicle" means a vehicle, trailer or semitrailer that is of a type subject to registration under this title whether lost, stolen, abandoned or otherwise unclaimed and that has been abandoned on a public highway, public property or elsewhere in this state, including private property. Evidence that a vehicle was left unattended for a period of forty-eight hours within the right-of-way of any highway, road, street or other public thoroughfare or for a period of seventy-two hours on public or private property or elsewhere in this state is prima facie evidence of abandonment.

2. "Officer" means any police officer or other law enforcement officer.

3. "Vehicle registration agency" means the agency or department of any state that has charge of the records of motor vehicle registration in that state.

§ 28-4802 Fees

A. Except as provided in subsection B of this section, the owner of record of a vehicle at the time of abandonment of the vehicle is liable to the department for the transfer of ownership or disposal in an amount prescribed by the director by rule if the vehicle was:

1. Abandoned and junked pursuant to article 3 of this chapter on private property or public land or on or within the right-of-way of a street or highway.

2. Abandoned on private property or public land or on or within the right-of-way of a street or highway and the department issues a transfer of ownership pursuant to the procedures prescribed by this chapter.

3. Abandoned and junked pursuant to article 3 of this chapter and towed with the written permission of the state land commissioner from state trust land located within the boundaries of an incorporated city or town.

B. The owner of record of a vehicle at the time of abandonment is liable to the department for the transfer of ownership or disposal in an amount prescribed by the director by rule if the vehicle was:

1. Abandoned and junked pursuant to article 3 of this chapter and towed with the written permission of the governing authority off of national forest, state park, bureau of land management or state trust land located outside the boundaries of an incorporated city or town.

2. Abandoned and towed with the written permission of the governing authority off of national forest, state park, bureau of land management or state trust land located outside the boundaries of an incorporated city or town and the department issues a transfer of ownership pursuant to the procedures prescribed by this chapter.

3. Abandoned outside the right-of-way of a street or highway located outside the boundaries of an incorporated city or town.

C. In addition to the registration fee or driver license fee prescribed by sections 28-2003 and 28-3002, the department shall collect the fee prescribed in subsections A and B of this section as an additional registration fee at the time the owner of the vehicle subsequently registers another vehicle in this state or as an additional driver license fee at the time the owner of the vehicle subsequently applies for or renews a driver license issued by this state. The department shall deposit, pursuant to sections 35-146 and 35-147, the additional fee collected for the transfer of ownership or disposal in the abandoned vehicle administration fund established by section 28-4804, except that ninety per cent of the fees collected pursuant to subsection A of this section and sixty per cent of the fees collected pursuant to subsection B of this section shall be deposited in the state highway fund.

D. The department:

1. Shall notify the owner of an abandoned vehicle for which ownership has been transferred or of a junk vehicle that has been disposed of about the additional fee at the time of a subsequent vehicle registration or driver license application or renewal.

2. Shall provide a complete description of the abandoned or junked vehicle, the vehicle identification number of the vehicle and the date on which the vehicle was disposed of or ownership was transferred by the department.

3. May waive the additional fee if the person provides proof satisfactory to the director that the vehicle had been transferred or assigned to another person before the day of abandonment.

4. May prescribe by rule a fee of not more than ten dollars for processing an abandoned vehicle report.

§ 28-4803 Public vehicle; fee exemption

Fees as prescribed in this title shall not be collected if the transfer of ownership is in the name of a state agency or political subdivision.

§ 28-4804 Abandoned vehicle administration fund

A. The abandoned vehicle administration fund is established consisting of monies collected pursuant to section 28-4802 and all other monies collected pursuant to this chapter. The department shall administer the fund. Monies in the fund are continuously appropriated. The director shall deposit the monies collected in the state highway fund established by section 28-6991 except that the monies that are deposited pursuant to section 28-4805 may not be deposited in the state highway fund and shall be used to partially reimburse registered towing companies pursuant to section 28-4805.

B. In addition to the use prescribed in subsection A of this section, the department shall use monies collected pursuant to this chapter to carry out the other duties prescribed by this chapter.

§ 28-4805 Towing company; partial reimbursement; registration; payment forfeiture

A. If a vehicle is abandoned pursuant to section 28-4802 and a fee is collected by the department, the towing company that towed the abandoned vehicle, if still in business, is entitled to receive twenty percent of the fee collected as a partial reimbursement of the costs incurred by the towing company.

B. A towing company that is owed partial reimbursement under subsection A of this section is required to register with the state's procurement office in order to qualify for payment. Failure to register with the state's procurement office will result in denial of payment and forfeiture of the payment.

C. The department shall make three good faith attempts to contact the towing company identified as having towed an abandoned vehicle pursuant to section 28-4802 in order to facilitate payment of the partial reimbursement under subsection A of this section. Notwithstanding any other law and after the good faith effort required by this subsection, if the department does not receive a response from or is unable to make contact with the towing company after thirty days, the payment is subject to forfeiture and will revert to the abandoned vehicle administration fund established by section 28-4804.

§ 28-4806 Abandoned vehicle fee monies; deposit; towing companies; payment system

A. Before the distribution of abandoned vehicle fees collected pursuant to section 28-4802, subsection C and before the distribution of vehicle license tax monies pursuant to section 28-5808, subsection D, the department shall deposit twenty percent of abandoned vehicle fees collected in the abandoned vehicle administration fund established by section 28-4804.

B. The director, in consultation with registered towing companies in this state, shall establish a monthly payment system to reimburse registered towing companies that are entitled to partial reimbursement under section 28-4805.

Article 2 Regulation

§ 28-4831 Abandonment prohibited

A person shall not abandon a vehicle on any street or highway or on any other public, federal, state trust, national forest, state park or bureau of land management land or private property.

§ 28-4832 Exemption

A motor vehicle eligible for licensing pursuant to chapter 7, article 14 of this title or section 28-2411 is not an abandoned vehicle and shall not be seized pursuant to this chapter or any ordinance authorized by this chapter while the vehicle is stored or maintained on the vehicle owner's private property.

§ 28-4833 Local ordinances

Subject to the limitations imposed by section 28-4832, an incorporated city or town may provide by ordinance for the removal and custody of abandoned vehicles on public or private property within its jurisdiction. The disposal of these vehicles shall be pursuant to this chapter.

§ 28-4834 Vehicle removal

A. An officer who has reasonable grounds to believe that a vehicle has been lost, stolen, abandoned or otherwise unclaimed may remove or cause the removal of the vehicle from any street or highway or on any other public, federal, state trust, national forest, state park or bureau of land management land or private property. For the purposes of this subsection, an officer may remove or cause the removal of a vehicle if the driver of the vehicle engages in unlawful flight from a pursuing law enforcement vehicle pursuant to section 28-622.01, leaves the vehicle and continues to engage in unlawful flight from a pursuing law enforcement vehicle pursuant to section 28-622.01 or by other means, including on foot or in another vehicle.

B. In counties with a population of less than one million five hundred thousand persons, before an officer removes or causes the removal of a vehicle that is abandoned as provided in section 28-4839 from the person in possession of the vehicle, the owner or lienholder of the vehicle or any other person who has an interest in the vehicle shall pay the person on whose property the vehicle was discovered an amount that does not exceed five dollars for each day of storage up to a maximum of five hundred dollars for the storage of the vehicle and the fee for processing an abandoned vehicle report as prescribed by section 28-4802 if the person on whose property the vehicle was discovered does both of the following:

1. Notifies a law enforcement agency by telephone in the jurisdiction where the vehicle was discovered of the presence of the vehicle on the person's property within forty-eight hours after the property owner discovered the vehicle.

2. Gives notice of abandonment of the vehicle in the manner prescribed by law.

C. This section does not require a law enforcement agency to pay any charges related to a vehicle that a law enforcement agency is required or otherwise authorized by law to impound or remove.

D. If a person removes or causes the removal of any vehicle, including an abandoned vehicle, from private property, the person shall both:

1. Obtain written authorization from the owner or lessee of the property on a form prescribed by the director.

2. Submit the form and the vehicle identification form to the department.

E. An officer who is employed by a public agency or political subdivision and who has removed an abandoned vehicle pursuant to this section or who has removed or caused to be removed a vehicle pursuant to section 28-872 shall inspect the vehicle and shall complete the vehicle identification form prescribed or approved by the director. The agency or political subdivision shall make an inquiry to determine whether the abandoned vehicle is a stolen abandoned vehicle.

F. A person who has removed or caused to be removed an abandoned vehicle from public land pursuant to section 28-4802 or private property shall have the vehicle inspected by an officer or agent of the department who shall complete the vehicle identification form prescribed by the director. The officer or agent designated by the director shall make an inquiry to determine whether the abandoned vehicle is a stolen abandoned vehicle.

G. If a renter or lessee of private property parks a vehicle on the private property in an area that the owner authorizes for the vehicle, a person may not remove or cause the removal of the vehicle from the private property unless there is evidence of abandonment. Expired registration of a vehicle may be considered in determining if a vehicle is abandoned but may not conclusively determine abandonment unless there is additional evidence of abandonment.

§ 28-4835 Presumption of responsibility

The abandonment of a vehicle in a manner provided in this chapter is a presumption that the last registered owner of record is responsible for the abandonment and is subject to this chapter, unless either:

1. An affidavit has been filed that the vehicle was stolen pursuant to section 28-4844.

2. A stolen report has been accepted by a local law enforcement agency.

3. A report has been filed pursuant to section 28-2058.

§ 28-4836 Towed vehicles; notification; Arizona crime information center database; violation; classification

A. Except if acting under the direction of a peace officer, a person who moves or tows a vehicle into a public garage, parking lot, storage yard or automotive recycling yard or on private property without the consent of the vehicle owner or the owner's agent shall notify the law enforcement agency of the jurisdiction where the vehicle was located before the moving or towing. The notification shall be by telephone within one hour of the time the vehicle is moved or towed.

B. Within three business days after a law enforcement agency receives notice pursuant to this section, the law enforcement agency shall enter information about the moving or towing of the vehicle in the Arizona crime information center database.

C. A person who fails to comply with subsection A of this section forfeits all claims for towing and storing the vehicle and is guilty of a class 1 misdemeanor.

§ 28-4837 Towing and storage costs

A. The public agency employing an officer who has removed or causes the removal of a vehicle under this chapter is not liable for the cost of towing or storing the vehicle if the officer acts under color of the officer's lawful authority.

B. The owner of a vehicle that is removed or caused to be removed under this chapter is liable for any reasonable costs incurred in towing or storing the vehicle.

§ 28-4838 Report; abandoned and seized vehicles; violation; classification

A. A person who has knowledge and custody of a vehicle that is either lost, stolen, abandoned or otherwise unclaimed, that has been seized pursuant to law or removed from the right-of-way of any highway, road, street or other public thoroughfare or other public property by order of an officer of the department of public safety, sheriff's officer or city or town police officer and that has been held for a period of ten days and a claim has not been made for the return or possession of the vehicle by a person legally entitled to the vehicle shall do all of the following within five days after the expiration of the ten day retention period:

1. Submit an electronic abandoned vehicle report to the director that is on a form prescribed by the director and that contains all of the following:

(a) A complete description of the vehicle.

(b) The vehicle license or registration number, if any.

(c) The circumstances of the person's or officer's removal or custody.

(d) Other information the director requires.

2. Provide a completed electronic application for transfer of ownership on a form prescribed by the director.

3. Submit a vehicle identification form as prescribed by the director.

4. If applicable, submit the authorization form signed by the private property owner as prescribed in section 28-4834.

5. Pay all fees prescribed by this title.

B. Except if the vehicle inspection as prescribed in section 28-4834 is not completed within the time prescribed in subsection A of this section due to no fault of the person, a person who fails to submit the documents for the purpose of transferring ownership by the time specified in subsection A of this section:

1. Forfeits all claims for towing and storing the vehicle.

2. Is guilty of a class 2 misdemeanor.

§ 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 ten 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.

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

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 and the director of the department of public safety at the end of five days after the ten 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.

§ 28-4840 Report; vehicle abandoned in repair facility; disposition

A. A vehicle that is left in a repair facility operated for commercial purposes for more than ten days after notice to pick up the vehicle has been mailed to the owner by certified restricted mail to be delivered to the addressee only, return receipt requested, at the address listed on the vehicle registration is deemed an abandoned vehicle. Unless the vehicle is left under a written or oral contract for repair, the party in possession of such a vehicle shall:

1. Report the vehicle to the director.

2. File all other applicable documents.

3. Pay all fees prescribed by this title.

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, an operator of a repair facility who fails to make the report to the director by the end of the succeeding thirty days forfeits all claims for towing, repair estimates or storage of the vehicle.

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

D. This section does not impair any lien of a proprietor of a garage or repair or service station under the laws of this state or the right of a lienholder to foreclose, and a proprietor of a garage or repair or service station shall not use this section instead of section 33-1022. For the purposes of this subsection, "service station" means a place operated primarily for the purpose of delivering motor vehicle fuel into the fuel tanks of motor vehicles.

§ 28-4841 Abandoned vehicle; notice of intent to transfer vehicle

A. On receipt of a report as required by this chapter, the director shall determine the name and address of the owner and lienholder, if any, or any other person identified on the department's record by either:

1. Searching the department records.

2. Asking the vehicle registration agency of another state if the vehicle is registered in that state.

B. On receipt of information from reports pursuant to section 28-4838 or 28-4839 and after determining the name and address of the owner and lienholder, if any, or any other person identified on the department's record who may have an interest in the vehicle, the director shall notify all interested persons by mail within five days for a vehicle with a record in this state or within thirty days for all other vehicles. The director shall make the notice on a form prescribed by the director. The notice shall include:

1. A complete description of the vehicle.

2. A notice of intent to transfer ownership of the vehicle to the person in possession of the vehicle if, within thirty days after the date placed on the notification by the department, the owner or lienholder or a person who has an interest in the vehicle does not notify the department of the owner's, lienholder's or person's interest in the vehicle or claim the vehicle.

3. The vehicle identification number.

4. The place and date the vehicle was found, seized or taken into possession.

5. The storage location of the vehicle.

6. A statement that the owner is liable to the department for the amounts provided in section 28-4802 if the vehicle was abandoned and removed pursuant to section 28-4802 and that the cost will be collected if the owner subsequently registers another vehicle in this state or subsequently applies for or renews a driver license issued by this state.

C. If the records of the department or out of state jurisdiction do not disclose the name and address of the owner and lienholder, if any, or any other person identified on the department's record who may have an interest in the vehicle, or if the notice is returned marked unclaimed or addressee unknown, the department shall publish the notice of the intent of the director to transfer ownership of abandoned vehicles pursuant to this chapter on the department's website for at least thirty days. The published notice shall include a statement of the intent of the director to transfer ownership of abandoned vehicles after ten days of the published notice and that the department will make available to the public a complete vehicle description of abandoned vehicles subject to transfer of ownership.

D. A person who has filed a report of an abandoned vehicle pursuant to section 28-4838, 28-4839 or 28-4840 shall notify the director within twenty-four hours and in the manner prescribed by the director if the vehicle is released or returned to or redeemed or repossessed by the lawful owner or lienholder, if any, or any other person who is identified on the department's record and who may have an interest in the vehicle.

§ 28-4842 Unclaimed vehicle; transfer of ownership; immunity; towing companies

A. If a vehicle remains unclaimed at the expiration of the dates prescribed in section 28-4841, subsections B and C, the director shall make an inquiry to determine if the vehicle is a stolen vehicle. On receiving notice that the vehicle has not been reported stolen, the director may transfer ownership of the vehicle free and clear of all liens or encumbrances on compliance with this chapter to the person in possession of the vehicle.

B. An application for transfer of ownership shall be signed by the applicant or authorized agent of the applicant and shall contain a certified statement that includes the following:

1. As of the date of application, no person has presented proof of ownership and financial responsibility for the release or return of the vehicle.

2. The applicant is currently in possession of the vehicle.

C. This state and its agencies, employees and agents are not liable for relying in good faith on the contents of the abandoned vehicle report or affidavits as prescribed by this chapter.

D. A person in possession of a vehicle is not liable for obtaining a transfer of ownership of an abandoned vehicle if the person in possession of the vehicle complies with this chapter.

E. For the purposes of this section, to prove ownership of a vehicle a person must submit a government issued photo identification and at least one of the following:

1. A valid certificate of title.

2. Proof of current vehicle registration, not including a restricted use three-day permit.

3. A repossession affidavit, a hold harmless liability release from legal claims and, if applicable, a proof of lien on the vehicle.

4. An insurance company release pursuant to section 28-4847.

5. A certified motor vehicle record.

6. Proof of a bona fide security interest or other financial interest in the vehicle that exists at the time of the tow.

§ 28-4843 Reclaimed vehicle; payment of costs

Except as provided in section 28-4834, on proof by the person in possession of an abandoned vehicle that notice of the abandonment and intention to transfer ownership has been given in the manner provided by law, the person in possession of the vehicle is entitled to be paid a reasonable amount for storage of the vehicle and the fee for processing an abandoned vehicle report as prescribed by section 28-4802 from the owner, lienholder or person who has an interest in the vehicle if this person reclaims the vehicle before the transfer of ownership.

§ 28-4844 Affidavit; stolen vehicle; suspension of registration

A. When the owner of a motor vehicle, trailer or semitrailer that is stolen or embezzled files an affidavit with the department alleging the vehicle is stolen or embezzled, the department shall immediately suspend registration of the vehicle and shall not transfer the registration or reregister the vehicle until it is notified that the owner has recovered the vehicle.

B. The affidavit is effective only during the current registration year in which given, but if during that year the vehicle is not recovered, the owner may file a new affidavit with like effect for the ensuing year.

C. An owner who has filed an affidavit of theft or embezzlement shall immediately notify the department of the recovery of the vehicle.

§ 28-4845 Stolen and recovered vehicles; record and report; distribution

A. The director of the department of public safety shall maintain a record of stolen and recovered vehicles. On request by any law enforcement agency of this state or of any political subdivision of this state, the director of the department of public safety shall provide the requesting agency with information in the record. On receipt by the director of the department of public safety, the information shall be forwarded to the appropriate agency of the federal government.

B. Each law enforcement agency of this state or any political subdivision of this state authorized to accept stolen vehicle reports shall provide all information in the report to the director of the department of public safety immediately on receipt of the report.

§ 28-4846 Stolen vehicles; inspection; violation; classification

A. For the purposes of enforcing this title or locating stolen vehicles or parts of those vehicles, peace officers may:

1. Inspect a vehicle to examine any vehicle identification number, serial number or other unique distinguishing number, sign or symbol in any public garage, vehicle storage, repair, leasing or rental lot or facility, vehicle equipment rental yard, vehicle salvage pool or other similar establishment.

2. Inspect the title or registration of those vehicles in order to establish their rightful ownership or possession.

B. Peace officers may also inspect a bicycle, an implement of husbandry, special construction equipment and a motor vehicle designed for off-highway use that is on the premises described in subsection A or if such a vehicle is incidentally operated or transported on a highway.

C. Inspections shall be conducted at a time and in a manner that minimizes any unreasonable interference with or delay of the business operation.

D. If information comes to the attention of the person conducting an inspection pursuant to this section that may necessitate obtaining a search warrant and if steps are promptly initiated for the procurement of a search warrant, the persons conducting the inspection may take all necessary steps to secure the premises under inspection until the warrant application is acted on by a judicial officer.

E. Off-duty officers and officers employed in a law enforcement capacity to conduct inspections pursuant to this section, including peace officers designated by the director pursuant to section 28-369, may access any state or national criminal information system to determine if a vehicle is stolen.

F. A person who refuses to permit inspection under this section is guilty of a class 1 misdemeanor.

§ 28-4847 Owners; insurance companies; release; fees; vehicle repair facilities; applicability; violation; classification; business practices; unlawful practices; definition

A. A towing company shall release a towed vehicle to the owner or a person designated in writing by an insurance company during normal business hours on the day the request for release is provided to the towing company, the detailed statement of charges is provided by the towing company at no cost and payment for any reasonable towing, storage and related fees is received by the towing company. Beginning January 1, 2019, owners, insurance companies, towing companies and other persons requesting the release of a vehicle from a storage lot pursuant to this section shall use the standard form prescribed by the department pursuant to this section and shall present proof of ownership pursuant to section 28-4842, subsection E. The request for release shall be in writing and:

1. If applicable, shall indicate the name of the insurer as well as the name, address, telephone number and fax number of a representative of the insurer.

2. Shall include the name, address and telephone number of the owner, the owner's written consent for release of the vehicle and the name of the insured, if different from the owner.

3. If applicable, shall include the insurer's claim number and the name of the person to whom the insurer authorizes release of the vehicle.

4. If applicable, shall be signed by the owner except as provided in paragraph 6 of this subsection.

5. May be faxed, e-mailed or delivered by other electronic means, mailed or hand delivered to the towing company.

6. If the written consent of the owner is not obtained pursuant to paragraph 2 of this subsection, the request for release shall include a statement that the insurer has authorization from the vehicle owner to remove the vehicle from the towing company's storage lot.

7. Shall include a statement that the owner has been informed that pursuant to this section the towing company is presumptively not responsible for any loss of personal property or damage to the vehicle that is not disclosed to the towing company before the insurer or the insurer's authorized agent removes the vehicle from the towing company's storage lot. The notice shall also include a statement that the owner or person designated in writing by the owner and witnessed by a third party may inspect the vehicle at the towing company's storage lot during regular business hours, may remove any personal property from the vehicle and may report any damage to the vehicle to the towing company at the time of inspection. The towing company shall not require payment for the removal of personal property that is inside the vehicle if the removal is during business hours. For the purposes of this paragraph, personal property does not include any vehicle parts, vehicle equipment or vehicle accessories.

B. After an owner or insurance company has completed a request for release of a vehicle and before payment is made for the release of that vehicle, the towing company shall provide to the owner or insurance company at no cost a detailed written statement of all charges for towing, storage and related fees. If before noon on a day that the towing company is required to be open or available by appointment pursuant to subsection N of this section, an owner or insurance company requests a detailed statement of charges, the towing company shall provide a detailed statement of charges by the close of business that day. The itemized charges shall include charges for the day of the request and the daily rate to be charged if the vehicle is to be released on a later day. If the towing company fails to provide a detailed list of charges by the close of business on the day of the request, the towing company shall not assess any storage charges on subsequent days until the day that the towing company provides the detailed statement of charges to the owner or insurance company. After the owner or insurance company requests release of a vehicle, a towing company may not impose any additional fees or charges until the towing company provides the detailed written statement. After the towing company provides the detailed written statement, additional storage charges may accrue until final payment is made and the vehicle is removed from the lot by the vehicle owner or the insurance company or the person designated in writing by the insurance company.

C. If the vehicle owner does not inspect the vehicle pursuant to subsection A, paragraph 7 of this section before removal of the vehicle to another lot, or has inspected the vehicle and has had the opportunity to remove personal property in the vehicle, a rebuttable presumption shall be created that damage to the vehicle and any loss of personal property in the vehicle occurred while the vehicle was not in the custody of the towing company. The presumption may be overcome by a preponderance of evidence to the contrary.

D. After an accident, a towing company shall tow the vehicle to the closest storage lot designated in the applicable contract unless there is insufficient capacity in the closest storage lot or the owner directs the towing company to tow the vehicle to a different location other than a storage lot. If an officer at the scene directs a vehicle to be taken to another site as evidence in a criminal action or for future criminal investigation, the vehicle shall be taken to that site.

E. A person in this state may choose any vehicle repair facility for the repair of a motor vehicle. A person in this state may choose any towing company or operator of a towing vehicle to transport a motor vehicle from a towing company's storage lot to a vehicle repair facility. At the same time a towing company or operator of a towing vehicle provides information about a vehicle repair facility, the company or operator shall inform the person of both of the following:

1. The person's right to choose any vehicle repair facility for the repair of a motor vehicle.

2. Any commonality of ownership between the vehicle repair facility and either the towing company or the operator of the towing vehicle.

F. A towing company shall not tow or transport a vehicle from its storage lot without the prior permission of the vehicle owner or the insurance company. The towing company may move a vehicle between its own storage lots without obtaining prior permission. The towing company shall not charge any additional fee or other monies to a vehicle owner or an insurance company as a result of any change in location of the vehicle between its own storage lots.

G. A towing company may not:

1. For a primary tow, charge an owner or insurance company any amount in excess of an amount that is authorized pursuant to the contract or this section. For purposes of this paragraph, "primary tow":

(a) Means a vehicle tow from the site of an accident to a storage lot or other location that is designated by an owner or officer pursuant to subsection D of this section.

(b) Includes work related to a vehicle tow at the accident scene.

2. Refuse to release a vehicle to an owner or insurance company after the owner or insurance company presents a request for release of the vehicle pursuant to subsection B of this section and pays the authorized fees and charges.

H. A vehicle repair facility or any employee of a vehicle repair facility shall not pay or agree to pay, and a towing company or any employee of a towing company shall not accept or agree to accept, any monies, fees, commissions, credits, gifts, gratuities, things of value or other compensation that is provided directly or indirectly for the purpose of inducing the towing company or any employee of a towing company to do any of the following:

1. Attempt to intimidate, unreasonably persuade or induce the person requesting the tow or transport of a vehicle to choose the services of the vehicle repair facility recommended by the towing company.

2. Refuse to tow or transport the vehicle unless the person requesting the tow or transport of a vehicle agrees to the vehicle repair facility recommended by the towing company.

3. Deliver a vehicle to a vehicle repair facility other than the vehicle repair facility chosen by the person requesting the tow or transport of the vehicle.

4. Make an intentional misrepresentation regarding the condition of the vehicle, the person's insurer or a specific vehicle repair facility.

I. Subsection E of this section does not create a private right or cause of action to or on behalf of any person.

J. This section does not create a cause of action or a right to bring an action against a towing company for releasing a motor vehicle to a person other than the owner if the written authorization as prescribed in this section is provided to the towing company by the owner or an insurance company.

K. This section only applies to tows resulting from motor vehicle accidents.

L. A person who fails to release a vehicle on receipt of the owner's or insurance company's written request for release pursuant to subsection B of this section and payment of authorized towing and storage fees and charges is guilty of a petty offense. A person who subsequently violates this subsection within thirty-six months after a prior violation of this subsection is guilty of a class 3 misdemeanor.

M. The registered owner presenting proof of ownership pursuant to section 28-4842, subsection E, the insurance company or a person designated in writing by the owner may inspect the vehicle at the towing company's storage lot during normal business hours, may remove any personal property from the vehicle and may report to the towing company at the time of inspection any damage to the vehicle that is allegedly caused by the towing company. The towing company may require the owner or insurance company to sign a release of liability for the removal of personal items from a vehicle. Beginning January 1, 2019, owners, insurance companies, towing companies and other persons who remove personal items from a vehicle pursuant to this section shall use the standard form prescribed by the department pursuant to this section. The towing company may not require payment for the removal of personal property that is inside the vehicle if the inspection and removal occurs during normal business hours. For the purposes of this subsection, personal property does not include vehicle parts, vehicle equipment or vehicle accessories.

N. A towing company shall implement the following business and billing practices:

1. For billing purposes, a storage day is from midnight of one day to midnight of the next day.

2. The towing company shall allow a vehicle owner's or insurance company's payment of towing and storage fees and charges to be made in the form of cash, credit card, debit card, insurance company-issued check or money order.

3. The towing company's storage lot must be open or otherwise available by appointment to provide current billing statements to vehicle owners and insurance companies and be open to the public or by appointment for releasing vehicles between the hours of 9:00 a.m. and 5:00 p.m. Monday through Friday, excluding holidays.

4. Except as provided in paragraphs 1 through 3 of this subsection, all towing and storage fees and charges, including extra charges, shall be made pursuant to the terms of the applicable contract with the jurisdiction governing the tow and storage.

5. Storage fees and charges may not accrue for any day when the storage lot is not open or available by appointment on a day and time specified in paragraph 3 of this subsection to obtain a detailed statement of charges or to have a vehicle released.

O. For tows that result from a motor vehicle accident:

1. All acts of employees or contractors of a towing company within the scope of employment are deemed to be acts of the towing company. An act or practice in violation of this section constitutes an unlawful practice under section 44-1522. The attorney general may investigate and take appropriate action against a towing company that violates this section as prescribed by title 44, chapter 10, article 7 and the towing company is subject to any other civil or criminal action, remedy and penalty provided by law.

2. A lien does not exist in favor of a towing company or storage lot for unpaid towing or storage fees or charges that are incurred. This paragraph does not affect the applicability of section 28-872, subsection H, paragraph 2 and section 28-4842.

P. On or before December 31, 2018, the department shall develop and prescribe the following forms to be used by owners, insurance companies and others:

1. A release form to release a vehicle from a towing company storage lot pursuant to this section.

2. A release of liability form relating to the removal of personal items from a vehicle located in a towing company storage lot.

Q. The department may revise the forms prescribed by subsection P of this section.

R. Except as otherwise provided in this section, the provisions of a contract between a towing company and a jurisdiction apply to towing and storage transactions.

S. For the purposes of this section:

1. "Contract" means the current contractual agreement between the towing company and the governmental jurisdiction in which the accident occurs.

2. Gift does not include an item of nominal value.

§ 28-4848 Access to vehicle; ignition interlock service provider; lienholder; fee prohibited; violation; classification

A. A towing company, storage yard, facility or person that has physical possession of a vehicle that was removed pursuant to section 9-499.05, 11-251.04 or 28-872, that was impounded pursuant to chapter 8, article 9 of this title or that was abandoned shall provide access during normal business hours to a person who presents evidence that the person either:

1. Is certified by the department as an ignition interlock device manufacturer or ignition interlock service provider and requires access to the vehicle for the purpose of removing the device from the vehicle.

2. Is listed as a lienholder on the department’s records for the vehicle and requires access to the vehicle for the purpose of assessing the condition of the vehicle.

B. After complying with subsection C of this section, an ignition interlock device manufacturer or ignition interlock service provider or a lienholder who is denied access to a vehicle by a towing company, storage yard, facility or person that has physical possession of the vehicle may report the denial to the impounding agency or a law enforcement agency that has jurisdiction in the city or county in which the vehicle is being stored and may submit a written request for assistance as prescribed by the impounding agency or law enforcement agency to obtain access to the vehicle for the purposes prescribed in this section. The impounding agency or the law enforcement agency shall provide assistance to the lienholder in obtaining access to the vehicle within five business days after the date the written request is received by the impounding agency or law enforcement agency.

C. A towing company, storage yard, facility or person that has physical possession of a vehicle as prescribed in subsection A of this section shall provide access during normal business hours to an ignition interlock device manufacturer or ignition interlock service provider or lienholder who submits a request for access to a vehicle. The request for access shall be in writing, shall contain the name, address and telephone number of the person making the request for access to the vehicle and either:

1. For a lienholder, shall include a copy of a signed contract, loan agreement or credit agreement indicating the vehicle owner’s name, the vehicle identification number, the vehicle make and model or other identifying indicia or a certified record issued by the department listing the person as a lienholder.

2. For an ignition interlock device manufacturer or ignition interlock service provider, shall include a copy of a signed contract identifying the make and model or serial number of the ignition interlock device, the make and model of the vehicle or the vehicle identification number of the vehicle in which the device is installed.

D. If the vehicle owner does not inspect the vehicle before removal of the ignition interlock device by the manufacturer or ignition interlock service provider, or has inspected the vehicle and has had the opportunity to remove personal property in the vehicle, a rebuttable presumption is created that damage to the vehicle and any loss of personal property in the vehicle occurred while the vehicle was not in the custody of the towing company, storage yard, facility or person that has physical possession of the vehicle. The presumption may be overcome by a preponderance of evidence to the contrary.

E. This section does not create a cause of action or a right to bring an action against a towing company, storage yard, facility or person that has physical possession of the vehicle for allowing access to a vehicle to a person other than the owner if the written request as prescribed in this section is provided to the towing company, storage yard, facility or person that has physical possession of the vehicle.

F. A towing company, storage yard, facility or person that has physical possession of a vehicle shall not charge a fee or require or request any compensation for providing access to a vehicle pursuant to this section.

G. A person who violates this section is guilty of a class 2 misdemeanor.

Article 3 Junk Vehicles

§ 28-4881 Definition of junk vehicle

For the purposes of this article, "junk vehicle" means a vehicle that is in such a state of deterioration that it cannot be profitably dismantled or salvaged for parts and cannot be profitably restored.

§ 28-4882 Junk vehicle; disposition

A. If a vehicle has been reported abandoned under section 28-4838, the person making the report may request that the vehicle be processed as a junk vehicle. An agent of the department shall inspect the vehicle to determine if the vehicle is a junk vehicle.

B. On making a determination that the vehicle is a junk vehicle, the director shall cause a search of department records to be made, or if a junk vehicle is registered in another state, make inquiry of the vehicle registration agency in that state, to ascertain the name and address of the owner and lienholder, if any, or any other person identified on the department's record.

C. On receipt of information disclosing the name and address of the owner and lienholder, if any, or any other person identified on the department's record who may have an interest in the vehicle, the director shall give notice to all interested persons of the director's intention to allow the disposition of the junk vehicle as prescribed by this section. The director shall give the notice by mail within five days for a vehicle with a record in this state or within thirty days for all other vehicles.

D. If the records of the department or out of state jurisdiction do not disclose the name and address of the owner and lienholder, if any, or any other person who is identified on the department's record and who may have an interest in the vehicle, or if the notice is returned marked unclaimed or addressee unknown, the department shall publish the notice of the intention of the director to allow the disposition of the junk vehicle as prescribed by this article once in a newspaper of general circulation in the county in which the junk vehicle was found. The published notice shall include a statement that the department will make available to the public a complete vehicle description of junk vehicles.

E. If the vehicle is unclaimed at the expiration of thirty days after the date placed on the notification mailed by the department or within ten days of the publication as provided in subsections C and D of this section, the director shall determine if the vehicle is a stolen vehicle. On receiving notification that the vehicle has not been reported stolen, the director shall issue written authorization to the owner of the property authorizing the owner of the property or a licensed automotive recycler to dispose of the junk vehicle pursuant to section 28-4883.

§ 28-4883 Vehicle crusher required

A. The junk vehicle shall not be restored or dismantled for parts for resale but shall be disposed of by a vehicle crusher. The person authorized by the director to dispose of the junk vehicle shall enter on the person's copy of the written authorization the name of the person crushing the junk vehicle.

B. The person crushing the junk vehicle shall mail a copy of the written authorization to the department within five days of receipt of the written authorization certifying that the vehicle has been crushed and including the certificate of title, registration card and license plate or plates assigned to the vehicle. If the certificate of title, registration card or license plate or plates are not available, the person authorized to dispose of the junk vehicle shall forward the available documents and plates with a description of the vehicle, including the make, model, year, vehicle identification number, color and last known owner of the vehicle.

C. A person disposing of a junk vehicle is exempt from paying fees prescribed in this chapter.

§ 28-4884 Destroyed vehicles; certificates of title

A. On receipt of the written authorization, documents, license plates and information prescribed in section 28-4883, the department shall void the certificate of title to the vehicle and shall maintain a record of all vehicles destroyed pursuant to this article.

B. A certificate of title shall not be issued for a vehicle destroyed pursuant to this article.

C. A certificate of title voided pursuant to this section removes all liens or encumbrances, including any liens relating to titling and registration.

Chapter 13 Authorized Third Parties

Article 1 General Provisions

§ 28-5100 Definitions

In this article, unless the context otherwise requires:

1. "Authorized third party" means an entity that has executed a written agreement and is authorized by the department to perform limited or specific functions but is not authorized by the department to function as an authorized third party electronic service provider.

2. "Authorized third party electronic service partner" means an entity that has been awarded a written agreement with the department pursuant to a competitive bid process to provide electronic transmission services and that may be authorized by the director to develop and implement information technology and other automated systems and to provide any necessary ongoing support for these systems.

3. "Authorized third party electronic service provider" means an entity that has executed a written agreement with the department and is authorized by the department to provide electronic transmission services between the department, private citizens, other government agencies and public and private entities in this state or in any other state, territory or country.

§ 28-5101 Third party authorization

A. The director may authorize third parties to perform certain of the following functions:

1. Title and registration.

2. Motor carrier licensing and tax reporting.

3. Dealer licensing.

4. Driver licensing as prescribed in sections 28-5101.01, 28-5101.02 and 28-5101.03.

B. The director may authorize a person to be a third party electronic service provider or to be a third party electronic service partner. An authorized third party electronic service provider shall meet all of the requirements established by the department. The written agreement between the department and the authorized third party electronic service provider may be for a limited number of services and may limit the persons that may receive the services. An authorized third party electronic service partner shall meet the requirements established by the department and shall be selected through a competitive bid process.

C. A person shall not engage in any business pursuant to this article unless the director authorizes the person to engage in the business.

D. The director may furnish necessary documents or license plates subject to this article.

E. Except as provided in subsection F of this section, an authorized third party or an authorized third party electronic service provider shall submit to the department all statutorily prescribed fees and taxes it collects. In addition to the statutorily prescribed fees and taxes, an authorized third party or an authorized third party electronic service provider may collect and retain a reasonable and commensurate fee for its services.

F. In addition to payment pursuant to section 28-374, the department shall reimburse the authorized third party or third party electronic service provider as follows:

1. One dollar of each initial, renewal, replacement or duplicate registration fee for a vehicle or an aircraft.

2. One dollar of each initial, duplicate or transfer certificate of title fee for a vehicle or an aircraft.

3. An amount equal to two percent of each vehicle license tax payment or aircraft license tax payment the authorized third party collects and submits to the department or four dollars for each registration year or part of a registration year, whichever is more. The reimbursement amount shall not exceed the amount of vehicle license tax or aircraft license tax collected.

4. Four dollars for each initial, renewal, replacement or duplicate application that the third party processes and that relates to driver licenses, nonoperating identification licenses or permits. An authorized third party may add the cost for expedited processing of renewal, replacement or duplicate applications if requested by the applicant.

5. An amount equal to two percent of each overweight or excess size vehicle registration or permit fee the third party collects and submits to the department or one dollar for each overweight or excess size vehicle registration or permit processed, whichever is more.

6. One dollar for each motor vehicle or special motor vehicle record, excluding motor vehicle records released to commercial recipients, including insurers and their authorized agents.

7. Five dollars or one-fourth of one percent of the fuel taxes reported, whichever is greater, for each fuel tax report filed electronically. The maximum annual amount retained each year shall not exceed four hundred eighty thousand dollars.

8. One dollar for each fuel tax permit.

9. One dollar for each nonsufficient funds or dishonored check payment.

10. One dollar for each abandoned vehicle report processed, except for applications for crushed vehicles.

11. One dollar for each abandoned vehicle payment.

12. Two dollars for each initial special or personalized license plate application.

13. One dollar for each initial, renewal or replacement vehicle dealer license plate.

14. Five dollars for each application for an initial vehicle dealer license or continuation of a vehicle dealer license.

15. One dollar of each twelve dollar fee paid pursuant to section 28-2356.

16. One dollar for each traffic survival school application and one dollar for each certificate of completion processed.

17. One dollar for each replacement license plate or tab.

G. For authorized third party electronic service partners, the amount of compensation and the amount of reimbursements for transactions shall be negotiated by the department and the authorized third party electronic service partner and shall be set forth in the written agreement authorizing the third party electronic service partner. If reimbursement is made for individual transactions, the reimbursements shall not exceed the amounts specified in subsections F, H and I of this section. Other forms of compensation or reimbursements for services may be specified in the written agreement. Compensation and reimbursements provided for by the written agreement may include the development and implementation of information technology and other automated systems and any necessary support for these systems.

H. The department's authorized third party electronic service provider may retain two dollars for processing documents electronically when the statutory fee pursuant to this title is two dollars or more.

I. The director may authorize the third party electronic service provider to process electronic fund transfers to the department for payment of motor vehicle taxes and fees. The third party electronic service provider may add a two dollar processing fee for each electronic funds transfer.

J. Each authorized third party that holds itself out as providing services to the general public shall post a sign in a conspicuous location in each facility of the authorized third party that contains all of the following:

1. The amount charged for each transaction performed by the authorized third party.

2. The amount charged by the department for the same transaction.

3. How to file a complaint or concern with the department about the authorized third party.

§ 28-5101.01 Authorized third party driver license providers; requirements

A. Except as provided in section 28-5101.03, an authorized third party driver license provider must perform both of the following:

1. Driver license skills and written testing.

2. Driver license processing.

B. A person who is a third party driver license provider authorized pursuant to this section may also be authorized pursuant to this article to perform certain title and registration functions.

C. A person who applies for authorization pursuant to this section shall submit with the application all of the following:

1. A bond in a form to be approved by the director and in an amount of at least $300,000 for an initial application for authorization pursuant to this section and an additional $100,000 for each additional location providing driver license functions prescribed in subsection A of this section, except that if the authorized third party is also authorized pursuant to this article to perform certain title and registration functions at the same location only a single $100,000 bond is required for that location. The total bond amount required by this paragraph shall not exceed $1,000,000. The bond requirements of this paragraph do not apply to government entities prescribed in section 28-5104, subsection E, paragraphs 1, 2, 3, 5 and 11.

2. Documentation that the applicant satisfies all of the following:

(a) Has been an authorized third party pursuant to this chapter for at least the immediately preceding three years.

(b) Has conducted an average of at least one thousand retention transactions per month for the previous calendar year.

(c) Is in good standing with the department.

(d) Has a facility plan for each location that shows adequate space and equipment necessary to perform the functions prescribed in subsection A of this section.

3. Documentation that the applicant has during business hours at least one certified processor qualified to perform at a minimum all of the following at each location:

(a) Fraudulent document recognition.

(b) Ignition interlock requirements.

(c) Driver license reinstatements.

D. A third party driver license provider authorized pursuant to this section must comply with all quality control requirements prescribed by the department.

E. A third party driver license provider authorized pursuant to subsection A of this section may perform administrative functions or testing functions or both administrative functions and testing functions for the issuance and renewal of commercial driver licenses as authorized by the director and pursuant to federal law.

§ 28-5101.02 Authorized third party driver license training providers; requirements; applicability

A. Beginning July 1, 2014, a person must be an authorized third party driver license training provider to perform driver license training.

B. A person who applies for authorization pursuant to this section is not required to submit a bond with the application.

C. A third party driver license training provider authorized pursuant to this section must comply with all quality control requirements prescribed by the department.

D. This section does not apply to any professional driver training school licensed pursuant to title 32, chapter 23.

§ 28-5101.03 Authorized third party commercial driver license examiners; requirements

A. Beginning July 1, 2014, a person must be a separately authorized third party commercial driver license examiner to perform commercial driver license skills testing.

B. A third party commercial driver license examiner authorized pursuant to this section must comply with all quality control requirements prescribed by the department.

§ 28-5102 Powers and duties of director

A. The director shall:

1. Supervise and regulate all persons required by this article to obtain authorization.

2. Establish minimum quality standards of service and a quality assurance program for authorized third parties to ensure that an authorized third party is complying with the minimum standards.

3. Adopt rules to administer and enforce this chapter.

B. The director may:

1. Conduct investigations the director deems necessary.

2. Conduct audits.

3. Make on-site inspections during regular business hours and at locations as the director deems appropriate to determine compliance by an authorized third party with this article. If an inspection is conducted at a place located outside this state, the director may charge a fee to the authorized third party.

4. Require that an authorized third party or employees or agents of an authorized third party be certified to perform the functions prescribed in this article.

5. Require authorized third parties and authorized third party electronic service providers to reimburse the department for mutually agreed on costs.

§ 28-5103 Application procedure

A. A person may apply for authorization or certification, or both, pursuant to this article to the director in writing on a form prescribed and furnished by the director. The person shall include with the application all documents and fees prescribed by the director.

B. The application shall be verified and shall contain:

1. The name and residence address of the applicant, the name and residence address of each partner if the applicant is a partnership or the name and residence address of each principal officer if the applicant is a corporation.

2. The principal place of business of the applicant.

3. The established place of business at or from which the business is to be conducted.

4. Other information the director requires.

§ 28-5104 Bond requirement

A. Except as provided in subsection F of this section and sections 28-5101.01 and 28-5101.02, 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 $100,000 for each location.

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 without at least sixty days' prior notice to the director. Any future liability of the surety company terminates on the director's termination of a third party's authorization.

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 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, an agency or a political subdivision of this state.

2. A court of this state.

3. A law enforcement agency or department of this state.

4. A financial institution or enterprise under the jurisdiction of the department of insurance and financial institutions 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 or a state organization of licensed and bonded motor vehicle dealers.

7. A manufacturer, an importer, a factory branch or a distributor licensed by the department of transportation.

8. An insurer under the jurisdiction of the department of insurance and financial institutions.

9. An owner or a registrant of a fleet of one hundred or more vehicles.

10. A public utility.

11. A tribal government.

12. An employer or association that has at least five hundred employees or members.

F. A towing company employee who conducts a level one motor vehicle inspection described in section 28-2011 and 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 not more than $25,000. The bond issued pursuant to this subsection covers every location in which the towing company is located.

§ 28-5105 Criminal records check; denial of application; immunity from costs

A. Except as provided by subsection B of this section, each applicant who owns twenty percent or more of an entity, each partner or stockholder who owns twenty percent or more of an entity and each person who is an employee of an authorized third party who has access to personal information as defined in section 28-440 obtained from the department or a customer of the department or monies collected on behalf of this state, and who seeks authorization or certification, or both, pursuant to this article shall provide:

1. A full set of fingerprints to the department of transportation for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

2. A nonrefundable fee to be paid to the department of public safety for the criminal records check.

B. Each employee of an authorized third party who conducts vehicle inspections on behalf of this state shall provide:

1. A full set of fingerprints to the department of transportation for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

2. A nonrefundable fee to be paid to the department of public safety for the criminal records check.

C. The director may deny an application for authorization or certification, or both, if any individual included in the application has either:

1. Made a misrepresentation or misstatement in the application to conceal a matter that would cause the application to be denied.

2. Been convicted of fraud or an auto-related felony in any state, territory or possession of the United States or any foreign country within the ten years immediately preceding the date the criminal records check is complete.

3. Been convicted of a felony, other than a felony described in paragraph 2 of this subsection, in a state, territory or possession of the United States or a foreign country within the five years immediately preceding the date the criminal records check is complete.

4. Violated a rule or policy of the department.

5. Been involved in any activity that the director determines to be inappropriate in relation to the authority granted.

D. The director may approve an application for provisional authorization or certification, or both, pending completion of the criminal records check if the applicant meets all other requirements of this article. The director may revoke a provisional authorization or certification, or both, for a violation of this title. A provisional authorization or certification, or both, is valid unless revoked by the director or until the applicant receives approval or denial of the application for authorization or certification, or both.

E. Within twenty days of completion of the criminal records check, the director shall approve or deny the application. 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 or certification, or both, under this article.

F. 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.

G. If the authorized third party adds a partner or stockholder who owns twenty percent or more of the entity and who was not included in the criminal records check on a prior application, the authorized third party shall notify the department within thirty days of the change.

H. At the time of notification pursuant to subsection G of this section, the third party shall submit to the department of transportation an application and, if applicable, a full set of fingerprints and the fee to be paid to the department of public safety for a criminal records check. On completion of the investigation if the individual added or changed by the authorized third party is found to be ineligible pursuant to subsection C of this section, the director of the department of transportation 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.

I. The requirement for a criminal records check does not apply to an applicant who is seeking third-party authorization and who is:

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

2. A court of this state.

3. A law enforcement agency or department of this state.

4. A financial institution or enterprise under the jurisdiction of the department of insurance and financial institutions 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 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.

8. An insurer under the jurisdiction of the department of insurance and financial institutions.

9. An owner or registrant of a fleet of one hundred or more vehicles.

10. A public utility.

11. A tribal government.

12. An employer or association that has at least five hundred employees or members.

J. For the purposes of this section, personal information does not include information received pursuant to section 28-872.

§ 28-5106 Records

A third party who is authorized pursuant to this article shall:

1. Maintain records in a form and manner prescribed by the director.

2. Allow access to the records during regular business hours to authorized representatives of the director or any law enforcement agency to ensure compliance with all applicable statutes and rules.

§ 28-5107 Application denial; hearing; appeal

A. The director may deny an application for third party authorization or certification, or both, under this article and shall advise the applicant in writing within twenty days of the denial and the grounds for the denial if the director determines that any of the following applies:

1. The applicant is not eligible for third party authorization or certification, or both, under this article.

2. The application is not made in good faith.

3. The application contains a material misrepresentation or misstatement.

4. The applicant has not met the requirements of law.

B. An applicant who is aggrieved by the denial of an application may make a written request to the department for a hearing on the application within thirty days after service of the notice of denial. If the applicant does not request a hearing within thirty days, the denial is final.

C. If the applicant requests a hearing, the director shall give written notice to the applicant to appear at a hearing to show cause why the denial of the applicant's application should not be upheld. After consideration of the evidence presented at the hearing, the director shall serve notice in writing to the applicant of the director's findings and order. A timely request for a hearing stays the denial of the application.

D. If the application is denied, the applicant may appeal the decision pursuant to title 12, chapter 7, article 6.

§ 28-5108 Cancellation or suspension of authorization or certification; hearing; appeal

A. The director may suspend or cancel an authorization or certification, or both, granted pursuant to this article if the director determines that the third party or certificate holder has done any of the following:

1. Made a material misrepresentation or misstatement in the application for authorization or certification.

2. Violated a law of this state.

3. Violated a rule or policy adopted by the department.

4. Failed to keep and maintain records required by this article.

5. Allowed an unauthorized person to engage in any business pursuant to this article.

6. Been involved in any activity that the director determines to be inappropriate in relation to the authority granted.

B. The director may suspend or cancel an authorization or certification, or both, granted pursuant to this chapter if the director determines that an individual included in the application for authorization or certification:

1. Made a misrepresentation, omission or misstatement in the application to conceal a matter that may cause the application to be denied.

2. Has been convicted of fraud or an auto related felony in a state, territory or possession of the United States or a foreign country within the ten years immediately preceding the date a criminal records check is complete.

3. Has been convicted of a felony, other than a felony described in paragraph 2 of this subsection, in a state, territory or possession of the United States or a foreign country within the five years immediately preceding the date a criminal records check is complete.

C. The director shall suspend or cancel an authorization of a third party granted pursuant to this article if the director determines that the third party failed to maintain the bond required pursuant to section 28-5104.

D. If the director has reasonable grounds to believe that a certificate holder or other person employed by an authorized third party has committed a serious violation, the director may order a summary suspension of the third party's authorization granted pursuant to this chapter pending formal suspension or cancellation proceedings. For the purposes of this subsection, "serious violation" means:

1. Title or registration fraud.

2. Driver license or identification license fraud.

3. Improper disclosure of personal information as defined in section 28-440.

4. Bribery.

5. Theft.

E. On determining that grounds for suspension or cancellation of an authorization or certification, or both, exist, the director shall give written notice to the third party or certificate holder to appear at a hearing before the director to show cause why the authorization or certification should not be suspended or canceled.

F. After consideration of the evidence presented at the hearing, the director shall serve notice of the director's finding and order to the third party or certificate holder.

G. If a third party authorization or a certification is suspended or canceled, the third party or certificate holder may appeal the decision pursuant to title 12, chapter 7, article 6.

§ 28-5109 Cease and desist order

A. If the director has reasonable cause to believe that a person who is authorized as a third party pursuant to this article or who holds a certificate granted pursuant to this article is violating any provision of this title, the director shall immediately issue and serve on the person, by personal delivery or first class mail at the person's last known address, a cease and desist order.

B. On receipt of the cease and desist order, the person shall immediately cease and desist, or cease and desist as provided in the contract between the department and the authorized third party, from further engaging in any activity that is authorized pursuant to this article and that is specified in the cease and desist order.

C. On failure of the person to comply with the cease and desist order, the director may conduct a hearing pursuant to this article.

§ 28-5110 Action to restrain violation

If the director has reasonable cause to believe that a person authorized under this article is violating any law of this state, the enforcement or administration of which is vested in the director, or has or is violating any rule or order adopted by the director pursuant to law, in addition to any remedies existing under this article, the director may bring an action in the superior court in Maricopa county in the name of and on behalf of the state and against the person to restrain or enjoin the person from continuing the violation.

§ 28-5111 Electronic transmission and recording of title, registration and driver license; program; authorized third party

A. The director may establish a program to measure and determine the effectiveness of the following in improving customer service, operations, capital cost reductions and security of information transmitted to the department:

1. The electronic transmission and recording of vehicle certificate of title and registration information between the department and an authorized third party or an authorized third party electronic service provider for the purpose of titling and registering vehicles entering this state from another jurisdiction in a cost-effective manner in lieu of the submission and maintenance of paper documents.

2. The electronic transmission and recording of driver license applications between the department and another state through an authorized third party or authorized third party electronic service provider for the purpose of issuing driver licenses in a cost-effective manner in lieu of the submission and maintenance of paper documents as provided in this chapter.

3. The electronic transmission and recording of vehicle accident data between the department, other states and law enforcement agencies within this state or within another state through an authorized third party or authorized third party electronic service provider.

B. In the process of establishing the system, the director shall:

1. Research methods the department and authorized third parties or authorized third party electronic service providers may use to exchange and maintain information relating to driver licenses and vehicle certificates of title and registration without submitting or receiving a paper document.

2. Develop methods an authorized third party or an authorized third party electronic service provider may use to electronically submit updated information relating to the certificate of title and registration record or the driver license record.

C. The director may limit the number of other states and authorized third party electronic service providers participating in the system. If the director determines the system is successful, the director may expand the system.

D. Chapter 2, article 5 of this title applies to certificates of title and driver license information under the system established pursuant to this section.

Chapter 14 Motor Carrier Safety

Article 1 General Provisions

§ 28-5201 Definitions

In this chapter, unless the context otherwise requires:

1. "Commercial motor vehicle" means a motor vehicle or combination of motor vehicles that is designed, used or maintained to transport passengers or property in the furtherance of a commercial enterprise on a highway in this state, that is not exempt from the gross weight fees as prescribed in section 28-5432, subsection B and that includes any of the following:

(a) A single vehicle or combination of vehicles that has either a gross vehicle weight rating or a gross weight of twenty-six thousand one or more pounds, whichever is greater, and that is used for the purposes of intrastate commerce.

(b) A single vehicle or combination of vehicles that has a gross vehicle weight rating of ten thousand one or more pounds and that is used for the purposes of interstate commerce.

(c) A school bus.

(d) A bus.

(e) A vehicle that transports passengers for hire and that has a design capacity for nine or more persons.

(f) A vehicle that is used in the transportation of materials found to be hazardous for the purposes of the hazardous materials transportation authorization act of 1994 (49 United States Code sections 5101 through 5128) and that is required to be placarded under 49 Code of Federal Regulations section 172.504, as adopted by the department pursuant to this chapter.

2. "Declared gross weight" has the same meaning prescribed in section 28-5431. If a declaration has not been made, declared gross weight means gross weight.

3. "Gross weight" has the same meaning prescribed in section 28-5431.

4. "Hazardous material" means a substance that has been determined by the United States department of transportation under 49 Code of Federal Regulations to be capable of posing an unreasonable risk to health, safety and property if transported in commerce.

5. "Hazardous substance" means a material and its mixtures or solutions that have been determined by the United States department of transportation under 49 Code of Federal Regulations to be capable of posing an unreasonable risk to health, safety and property if transported in commerce.

6. "Hazardous waste" means a material that is subject to the hazardous waste manifest requirements of the department of environmental quality or the United States environmental protection agency.

7. "Manufacturer" means a person who transports or causes to be transported or shipped by a motor vehicle a material that is represented, marked, certified or sold by a person for transportation in commerce.

8. "Motor carrier" means a person who operates or causes to be operated a commercial motor vehicle on a public highway.

9. "Motor vehicle" means any vehicle, machine, truck tractor, trailer or semitrailer that is propelled or drawn by mechanical power and that is used on a public highway in the transportation of passengers or property in the furtherance of a commercial enterprise.

10. "Person" means a public or private corporation, company, partnership, firm, association or society of persons, the federal government and its departments or agencies, this state or any of its agencies, departments, political subdivisions, counties, towns or municipal corporations or a natural person.

11. "Public highway" means a public street, alley, road, highway or thoroughfare of any kind in this state that is used by the public or that is open to the use of the public as a matter of right, for the purpose of vehicular travel.

12. "Shipper" means a person who offers a material for motor vehicle transportation in commerce.

13. "Transportation" means a movement of person or property by a motor vehicle and any loading, unloading or storage incidental to the movement.

14. "Vehicle combination" has the same meaning prescribed in section 28-5431.

§ 28-5202 Applicability

A. Except as otherwise provided, this chapter applies to all commercial motor vehicles, commercial motor vehicle combinations and manufacturers, shippers, motor carriers and drivers who operate, cause the operation of, ship materials using or transport persons or property using commercial motor vehicles.

B. Commercial vehicles owned or operated by this state or a political subdivision or public authority of this state are subject to this chapter.

C. This chapter applies throughout this state for the purpose of enforcing state and federal laws and rules relating to the operation of commercial motor vehicles.

D. Any city, town, county or other political subdivision of this state shall not adopt or implement a law or rule relating to hazardous materials, hazardous substances or hazardous wastes other than as authorized by this chapter.

§ 28-5203 Motor carrier safety revolving fund

A. A motor carrier safety revolving fund is established 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 to be used by the department, 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 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.

§ 28-5204 Administration and enforcement; rules

A. In the administration and enforcement of this chapter, the department of transportation 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 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 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. 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 that are subject to this chapter.

Article 2 Regulation

§ 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 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.

§ 28-5232 Danger to public safety; suspension of registration or license; civil penalty; hearing; reinstatement

A. If after reviewing a report submitted by a law enforcement agency authorized to enforce this chapter the director determines that probable cause exists to believe that the continued operation by a manufacturer, shipper or motor carrier or the continued operation of a motor vehicle by a driver constitutes a danger to the public safety, the director shall issue both:

1. An order immediately imposing either of the following:

(a) Suspension of the registration of the motor vehicle owned or leased by the manufacturer, shipper or motor carrier.

(b) Suspension of the driver license or nonresident operating privilege of a driver.

2. An order to require the manufacturer, shipper, motor carrier or driver to show cause why the director should not impose a civil penalty and to show cause why the director should not continue the registration or license suspension.

B. The manufacturer, shipper, motor carrier or driver shall respond to the order to show cause 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 law enforcement agency's report alleging the safety danger or to the address provided in the application for vehicle registration or in the notification provided by an interstate carrier.

C. The scope of the hearing is limited to the following:

1. A determination that the respondent was operating on the public highway and that the operation constituted a danger to the public safety.

2. That the respondent ordered to appear at the hearing is responsible for the danger and is responsible under this title or a rule adopted under this title to prevent the danger or to remedy the danger.

D. After consideration of the evidence presented at the hearing, the director shall serve written notice of the director's finding and order within five days after the hearing. If the director enters a finding of responsibility, the director shall continue the suspension of the vehicle registration of the vehicles owned or leased by the manufacturer, shipper or motor carrier or shall continue the suspension of the driver license or nonresident operating privilege of the driver. A rehearing or a request for a rehearing on the matter does not stay the suspension of the vehicle registration or driver license or nonresident operating privilege.

E. If the director enters a finding of responsibility, the director shall impose a civil penalty as prescribed in section 28-5238.

F. The director shall not reinstate the registration of the motor vehicle owned or leased by the manufacturer, shipper or motor carrier or the driver license or nonresident operating privilege of the driver until all of the following are met:

1. The department of public safety or the law enforcement agency originally submitting the report provides in writing to the director that, if applicable, the cause for the finding of responsibility has been remedied.

2. All fees prescribed by statute to reinstate the vehicle registration or driving privileges are paid.

3. A civil penalty that has been imposed is paid.

G. If the manufacturer, shipper, motor carrier or driver fails to appear for a hearing, in addition to any other remedies provided by law, the director shall continue the suspension of the registration of the motor vehicle owned or 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, shipper, motor carrier or driver appears for the hearing and all of the conditions prescribed in subsection F of this section are met.

§ 28-5234 Exemption from rules on drivers' qualification and hours of service; definitions

A. If the department adopts 49 Code of Federal Regulations parts 390 through 397 as a rule, a telecommunications corporation engaged in rendering public utility service or a railroad and its employees whose work necessarily involves the operation of a motor vehicle weighing more than eighteen thousand pounds gross vehicle weight rating but which operation is only incidental to the performance of their principal nondriving duties and purpose of employment are exempted from compliance with 49 Code of Federal Regulations parts 391 and 395, except that 49 Code of Federal Regulations part 391, subparts A and E apply unless it is the practice of the telecommunications corporation engaged in rendering public utility service or the railroad to assign regular drivers, qualified in accordance with 49 Code of Federal Regulations parts 390 through 397, to motor vehicles weighing more than eighteen thousand pounds gross vehicle weight rating, and if such driver becomes unavailable or unable to operate the motor vehicle on a given occasion due to an unavoidable or unforeseen circumstance against which provisions could not be reasonably made, compliance with 49 Code of Federal Regulations parts 391 and 395 is not required.

B. A person who is an employee of a public service corporation, a political subdivision of this state that is engaged in rendering public utility service or a railroad is exempt from any hours of service requirements at any time when relief assistance is needed to supplement state or local efforts and capabilities to save lives, protect against substantial loss of property, protect the public health and safety or lessen or avert the consequence of a catastrophe. If an emergency respondent independently identifies an occasion or instance that jeopardizes life or property or that endangers public health and safety, an emergency situation exists, and the respondent is exempt from any hours of service requirements if the respondent contacts with due diligence and coordinates with state or local officials.

C. The following intrastate drivers may begin to calculate hours of service requirements at any point at which the driver goes on duty after the driver has been off duty for twenty-four or more consecutive hours:

1. Drivers who are primarily involved in the transportation of groundwater drilling rigs.

2. Drivers used primarily in the transportation of construction materials and equipment en route to or from an active construction site that is within a seventy-five air mile radius of the driver's normal work reporting location and is at a stage between initial mobilization of equipment and materials to the site and final completion of the construction project. This paragraph does not apply to drivers transporting hazardous materials in a quantity that requires placarding.

3. Drivers of public utility service vehicles that are operated primarily within the service area of the public utility's subscribers, that are used in furtherance of repairing, maintaining or operating any physical facilities necessary for the delivery of public utility services and that are engaged in any activity necessarily related to the ultimate delivery of public utility services to the consumer, including travel to, from, on or between activity sites. The public utility is not required to be the owner of the vehicle.

D. For the purposes of this section:

1. "Public service corporation" means a public service corporation as defined in article XV, section 2, Constitution of Arizona.

2. "Railroad" means a railway or railroad that is regulated as a common carrier under article XV, section 10, Constitution of Arizona, and that is subject to title 40, chapter 4, article 3.

3. "Telecommunications corporation" means an entity as defined in section 40-201 that is subject to regulation by the corporation commission.

§ 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 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 shall provide for reciprocity of audits with the department of public safety and the United States department of transportation.

§ 28-5236 Violations; inspection; material containment

A. A person shall not operate a vehicle that transports hazardous materials, hazardous substances or hazardous wastes on a highway in this state unless the vehicle has been properly inspected pursuant to 49 Code of Federal Regulations.

B. A person shall not transport or cause the transportation of hazardous materials, hazardous substances or hazardous wastes unless the material is properly contained and manifested as prescribed by applicable statutes and rules.

§ 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 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.

§ 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 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 deposit, pursuant to sections 35-146 and 35-147, all monies from civil penalties imposed under this chapter 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.

§ 28-5239 Judicial review

Decisions of the director are subject to judicial review pursuant to title 12, chapter 7, article 6. The court shall consider only evidence that was presented at the original hearing.

§ 28-5240 Civil traffic violation; civil penalty

A. An equipment violation of this chapter or any rule adopted pursuant to this chapter is a civil traffic violation.

B. The driver of a commercial motor vehicle who violates or fails to comply with this chapter or any rule adopted pursuant to this chapter is responsible for a civil traffic violation and is subject to a civil penalty of up to $500.

§ 28-5241 Out-of-service orders; violation; classification; civil penalty; attorney general enforcement; definition

A. A driver, motor carrier, shipper or manufacturer that violates an out-of-service order is guilty of:

1. A class 2 misdemeanor for a first offense.

2. A class 1 misdemeanor for a second offense.

3. A class 6 felony for any subsequent offense.

B. The attorney general may enforce this section.

C. A motor carrier, shipper or manufacturer shall not require or allow a driver:

1. To operate a commercial motor vehicle that is subject to an out-of-service order until all repairs required by the out-of-service order have been satisfactorily completed.

2. Who is subject to an out-of-service order to operate a commercial motor vehicle until the reason for the out-of-service order has been remedied.

D. A driver:

1. Shall not operate a commercial motor vehicle that is subject to an out-of-service order until all repairs required by the out-of-service order have been satisfactorily completed.

2. Who is subject to an out-of-service order shall not operate a commercial motor vehicle until the reason for the out-of-service order has been remedied.

E. In addition to the civil penalties imposed by section 28-5240, and the criminal penalties imposed by this section, a violation of this section is a civil traffic violation.

F. The court shall impose:

1. On a driver who violates or fails to comply with an out-of-service order a civil penalty of:

(a) At least $2,500 for an initial violation or failure.

(b) $5,000 for a subsequent violation or failure.

2. A civil penalty of at least $2,750 and not more than $25,000 on a motor carrier, shipper or manufacturer that violates an out-of-service order or that requires or allows a driver to violate or fail to comply with an out-of-service order.

G. In addition to other penalties prescribed by this chapter, if a motor carrier, shipper, manufacturer or driver is found responsible for a violation of this section, the motor carrier or driver is subject to disqualification pursuant to section 28-3312.

H. For the purposes of this section, "out-of-service order" means a declaration by a specialty officer of the department or a law enforcement officer authorized pursuant to section 28-5204 that a driver, motor vehicle or motor carrier is out of service pursuant to this chapter.

§ 28-5242 Registration requirements; interstate or foreign commerce; enforcement; civil penalty; violation; classification

A. A motor carrier shall not operate in this state a motor vehicle involved in interstate or foreign commerce or require or allow a driver to operate a motor vehicle involved in interstate or foreign commerce unless the motor carrier is registered pursuant to 49 United States Code sections 13901 and 13902. A motor carrier domiciled outside of the United States shall have proof of the registration in the vehicle when operating in this state.

B. A motor carrier shall not operate in this state a motor vehicle involved in interstate or foreign commerce or require or allow a driver to operate a motor vehicle involved in interstate or foreign commerce beyond the scope of the motor carrier's registration issued pursuant to 49 United States Code sections 13901 and 13902.

C. A person who violates subsection A or B of this section is subject to a civil penalty of $500.

D. The department or a law enforcement officer authorized pursuant to section 28-5204 may place a motor vehicle under an out-of-service order until either the cargo is removed from the vehicle or the officer obtains proof that the motor carrier is registered pursuant to 49 United States Code sections 13901 and 13902.

E. A motor carrier shall not operate a motor vehicle or allow a driver to operate a motor vehicle subject to an out-of-service order issued pursuant to this section until the reason for the out-of-service order has been remedied. A motor carrier or driver who violates this subsection is guilty of a class 1 misdemeanor.

§ 28-5243 Railroad crossing violations; civil penalty

A. A motor carrier shall not knowingly require, authorize or permit a driver to violate any federal, state or local railroad crossing law, ordinance or regulation.

B. The court shall impose a civil penalty of not more than ten thousand dollars on a motor carrier who violates this section.

C. In addition to all other penalties prescribed by this chapter, if a motor carrier is found responsible for a violation of this section, the motor carrier is subject to disqualification pursuant to section 28-3312.

§ 28-5244 Motor carriers; civil penalty; definition

A. Notwithstanding any other law, a foreign motor carrier or foreign private motor carrier that is required to have a certificate of registration issued by the United States secretary of the department of transportation pursuant to 49 Code of Federal Regulations sections 368.1 through 368.8 shall not do any of the following:

1. Operate in this state without the required certificate in the vehicle.

2. Operate beyond the limitations or restrictions specified in the certificate as issued.

3. Refuse to show the certificate on request of a peace officer or an employee of the department.

4. Provide point-to-point transportation services, including express delivery services, in the United States for goods other than international cargo that is incidental to the engagement of that vehicle in international traffic. Any such carriage by the motor carrier in the general direction of an export move or as a part of the return of the vehicle to its base country shall be considered incidental to that vehicle's engagement in international traffic.

B. Notwithstanding any other law, a motor carrier that is required to be registered with the United States secretary of the department of transportation pursuant to 49 United States Code section 13902 or 49 Code of Federal Regulations sections 390.1 through 390.37 shall not do any of the following:

1. Operate in this state without the required registration.

2. Operate beyond the limitations or restrictions specified in its registration.

3. Operate in this state without the required operating authority.

C. A motor carrier that violates subsection A or B is subject to a civil penalty of one thousand dollars.

D. A law enforcement agency may impound a vehicle operated in violation of subsection A or B and its cargo until the citation and all charges related to the impoundment are cleared. The impoundment charges are the responsibility of the vehicle's owner.

E. A motor carrier granted permanent operating authority pursuant to 49 Code of Federal Regulations sections 368.1 through 368.8 shall not operate a vehicle on a highway unless the vehicle is inspected by a commercial vehicle safety alliance-certified inspector at least every three months and shall display a current safety inspection decal attesting to the successful completion of those inspections for at least three years after receiving permanent operating authority.

F. Subsection E does not apply to a motor carrier that is granted authority to operate solely in a commercial zone on the United States-Mexico international border.

G. For the purposes of this section, "limitations or restrictions" includes commercial zones, municipality, contiguous municipalities, unincorporated area, and terminal areas, as defined in 49 Code of Federal Regulations sections 372.101 through 372.221.

Chapter 15 Fees

Article 1 General Provisions

§ 28-5401 Disposition of fees

Except as otherwise provided by statute, the director shall immediately deposit, pursuant to sections 35-146 and 35-147, fees and taxes collected under this chapter in the Arizona highway user revenue fund.

Article 2 Gross Weight Fees

§ 28-5431 Definitions

In this article, unless the context otherwise requires:

1. "Declared gross weight" means the gross weight in pounds ascribed to a motor vehicle, trailer, semitrailer or vehicle combination by the applicant for registration.

2. "Gross weight" means the sum of the empty weight in pounds of a motor vehicle combination plus the weight in pounds of the maximum load to be carried on the motor vehicle combination at any one time, except that for tow trucks, gross weight means the sum of the empty weight in pounds of the tow truck plus the weight in pounds of operational supplies and equipment.

3. "Vehicle combination" means a motor vehicle and the trailers and semitrailers that it tows.

§ 28-5432 Gross weight fees; application; exceptions

A. This article applies to all of the following:

1. A trailer or semitrailer with a gross weight of ten thousand pounds or less and that is used in the furtherance of a commercial enterprise.

2. A motor vehicle or vehicle combination if the motor vehicle or vehicle combination is designed, used or maintained primarily for the transportation of passengers for compensation or for the transportation of property.

3. A hearse, an ambulance or any other vehicle that is used by a mortician in the conduct of the mortician's business.

4. A commercial motor vehicle as defined in section 28-5201.

B. This article does not apply to:

1. A vehicle commonly referred to as a station wagon or to a vehicle commonly known as and referred to by the manufacturer's rating as a three-quarter ton or less pickup truck or three-quarter ton or less van unless such a vehicle is maintained and operated more than one thousand hours in a vehicle registration year for the transportation of passengers or property in the furtherance of a commercial enterprise. An applicant requesting title or registration of a motor vehicle in the name of a commercial enterprise shall pay the fees imposed by this article unless the applicant certifies on the application that the vehicle will not be maintained and operated in the furtherance of a commercial enterprise.

2. A trailer or semitrailer with a declared gross weight of ten thousand pounds or less, if the trailer or semitrailer is not used in the furtherance of a commercial enterprise and the applicant certifies on the application that the vehicle will not be maintained and operated in the furtherance of a commercial enterprise.

C. The following motor vehicles, trailers and semitrailers are exempt from the gross weight fee prescribed in section 28-5433:

1. A motor vehicle, trailer or semitrailer that is owned and operated by a religious institution and that is used exclusively for the transportation of property produced and distributed for charitable purposes without compensation. For the purposes of this paragraph, "religious institution" means a recognized organization that has an established place of meeting for religious worship and that holds regular meetings for that purpose at least once each week in at least five cities or towns in this state.

2. A motor vehicle, trailer or semitrailer that is owned and operated by a nonprofit school that is recognized as being tax exempt by the federal or state government if the motor vehicle, trailer or semitrailer is used exclusively for any of the following:

(a) The transportation of pupils in connection with the school curriculum.

(b) The training of pupils.

(c) The transportation of property for charitable purposes without compensation.

3. A motor vehicle, trailer or semitrailer that is owned by a nonprofit organization in this state that presents to the department a form approved by the director of the division of emergency management pursuant to section 26-318.

4. A vehicle that is owned and operated only for government purposes by a foreign government, a consul or any other official representative of a foreign government, by the United States, by a state or political subdivision of a state or by an Indian tribal government.

5. A motor vehicle that is privately owned and operated exclusively as a school bus pursuant to a contract with a school district. If a privately owned and operated school bus is temporarily operated for purposes other than those prescribed in the definition of school bus in section 28-101, the registering officer shall assess and collect a monthly gross weight fee equal to one-tenth of the annual gross weight fee prescribed by section 28-5433 for each calendar month that the motor vehicle is so operated in this state. The registering officer shall not apportion the gross weight fee for a fraction of a calendar month.

§ 28-5433 Gross weight fees; additional registration fees; farm vehicle reduction; consolidation

A. In addition to the registration fee required by section 28-2003, a person shall pay to the department at the time of application for registration of a vehicle that is subject to this article pursuant to section 28-5432 a commercial registration fee of four dollars and a gross weight fee calculated beginning on the first day of the month following the date of transfer for the declared gross weight of the trailer, semitrailer, motor vehicle or vehicle combination according to the following table:

Gross Weight Weight Fee

up to 8,000 $ 7.50

8,001 to 10,000 36.00

10,001 to 12,000 63.00

12,001 to 14,000 103.00

14,001 to 16,000 121.00

16,001 to 18,000 144.00

18,001 to 20,000 162.00

20,001 to 22,000 198.00

22,001 to 24,000 216.00

24,001 to 26,000 234.00

26,001 to 28,000 288.00

28,001 to 30,000 324.00

30,001 to 32,000 378.00

32,001 to 36,000 414.00

36,001 to 40,000 468.00

40,001 to 45,000 522.00

45,001 to 50,000 576.00

50,001 to 55,000 630.00

55,001 to 60,000 684.00

60,001 to 65,000 738.00

65,001 to 70,000 792.00

70,001 to 75,000 864.00

75,001 to 80,000 918.00

B. Notwithstanding subsection A of this section, the owner of a farm vehicle that is issued a farm vehicle license plate pursuant to section 28-2514 shall pay a gross weight fee that is one-half of the gross weight fee calculated pursuant to subsection A of this section.

C. If an unregistered vehicle was operated on the highways of this state during the preceding registration year, the director may collect the gross weight fee for the preceding year.

D. The director shall consolidate the gross weight fee prescribed by this section with the motor carrier fee imposed by section 28-5854 for the purpose of reducing administrative activities of motor carriers and of the department. The director shall prepare forms necessary to perform the consolidation.

§ 28-5434 Proration of gross weight fees

For a registration issued after the beginning of the registration year, a person shall pay the fees prescribed in this article reduced by one-twelfth for each month of the year that elapsed since the first day of the month following the date of transfer of the vehicle or vehicle combination or the date the vehicle or vehicle combination becomes subject to registration.

§ 28-5435 Increase in gross vehicle weight; additional fee

A. A person may increase the declared gross weight of a vehicle or vehicle combination after the original registration and during the registration year by reregistration of the vehicle or vehicle combination. The person shall pay a fee in addition to the gross weight fee prescribed in this article based on the difference between the fee due at the time of reregistration for the weight class in which the vehicle or vehicle combination was originally registered and the fee due at the time of reregistration for the increased weight class. If during a registration year the declared gross weight of a vehicle or vehicle combination is reduced, there is no reduction or refund allowed for a part of the original weight fee previously paid.

B. A vehicle or vehicle combination that is operated under a special permit allowing excess weight pursuant to section 28-1103 is not required to declare an increased gross weight or to pay a fee ascribed to the increased gross weight pursuant to this article.

§ 28-5436 Reduced gross weight fees; seasonal agricultural work

A. On application, a resident owner of a motor vehicle, trailer or semitrailer that is operated solely in seasonal agricultural work and that is subject to the fees prescribed by section 28-5433 may pay a reduced fee for a period of at least ninety days but less than a full year.

B. The application shall specify a number of thirty day periods. The director shall compute the reduced fee on a basis of one-twelfth of the annual fee prescribed by section 28-5433 for the motor vehicle, trailer or semitrailer multiplied by the number of thirty day periods specified in the application. The operation of the motor vehicle, trailer or semitrailer is valid for the period for which the reduced fees are paid.

C. The resident owner shall pay all other fees and taxes applicable to the motor vehicle, trailer or semitrailer in full without regard to the reduction authorized by this section.

§ 28-5437 Operation with excess weight; violation; classification

A person who operates or who causes, permits or authorizes the operation on the public highways of this state of a vehicle singly or in a vehicle combination with a gross weight in excess of the vehicle's or vehicle combination's declared gross weight:

1. Is guilty of a class 2 misdemeanor notwithstanding section 28-5438.

2. Is deemed to have set a new declared gross weight for the vehicle or vehicle combination.

3. Shall reregister the vehicle or vehicle combination and shall pay a fee for the new gross weight or the maximum gross weight allowed by law, whichever is lower, without any allowance or reduction in the fee as provided for in this article or the proportional mileage per cent factor as provided in chapter 7, article 7 or 8 of this title.

§ 28-5438 Weight violations; civil penalty; classifications; procedures; evidence

A. A person who violates this article is:

1. Subject to a civil penalty either:

(a) As prescribed in subsection B of this section.

(b) Of one dollar if the excess weight is one thousand pounds or less.

2. Guilty of a class 3 misdemeanor for a second violation of this article within six months of the preceding judgment.

3. Guilty of a class 2 misdemeanor for a second conviction for a violation of this article within one year of the preceding conviction pursuant to paragraph 2 of this subsection.

B. A court shall impose civil penalties as follows:

If the excess weight is: The minimum civil penalty is:

1,001 to 1,250 pounds $100.00

1,251 to 1,500 200.00

1,501 to 2,000 300.00

2,001 to 2,500 400.00

2,501 to 3,000 500.00

3,001 to 3,500 840.00

3,501 to 4,000 980.00

4,001 to 4,500 1120.00

4,501 to 4,750 1260.00

4,751 to 5,000 1400.00

5,001 and over 1400.00 plus an additional $100 for each 1000 pounds of excess weight

C. An unregistered vehicle that is operated on a public highway is deemed to have a gross weight of one pound for purposes of the civil penalty imposed by this section.

D. If an officer finds that a person has violated only the axle weight limitation and not the total weight limitation, the officer shall request the driver to shift the load, as reasonable under the circumstances, to comply with the axle weight limitation and notwithstanding this section:

1. If the driver does not comply with the request of the officer to shift the load, the driver is subject to a civil penalty or a criminal penalty.

2. If the driver complies with the axle weight limitation after shifting the load and the excess axle weight was two thousand five hundred pounds or less:

(a) The officer shall not cite the driver.

(b) The driver is not subject to a civil penalty or a criminal penalty for a violation of the axle weight limitation.

3. If the driver shifts the load but does not comply with the axle weight limitation or if the excess axle weight is more than two thousand five hundred pounds, the driver is subject to a civil penalty or a criminal penalty for a violation of the axle weight limitation.

E. If a person is arrested for violating this article, the arresting officer may take the person immediately before a magistrate who is within the county in which the offense charged is alleged to have been committed and who has jurisdiction of the offense. If the person is taken before a justice of the peace, the person shall be taken before the nearest or most accessible justice of the peace with reference to the place where the arrest is made.

F. The officer or court collecting or receiving a civil penalty, fee, fine or forfeiture for a violation of this article shall deposit, pursuant to sections 35-146 and 35-147, the amount in the Arizona highway user revenue fund. If a civil penalty, fee or fine is collected, ten dollars of the civil penalty, fee or fine is deductible as reimbursement of costs from the amount collected, unless the fee or fine is less than ten dollars. The collecting official shall deposit the deducted monies with the city, town or county treasury of the city, town or county prosecuting or processing the violation.

G. A weight certificate or any other document that evidences the receipt of goods for shipment, that is issued by a person engaged in the business of transporting or forwarding goods and that states the gross weight of the vehicle with load that is in excess of the prescribed maximum weight limitation permitted by this article is prima facie evidence that the weight of a vehicle and load is unlawful.

H. If the commodity being carried is sold by weight, a weight certificate or any other document that evidences the receipt of goods for shipment, that is issued by a person engaged in the business of transporting or forwarding goods and that states the gross weight of the vehicle with load that is not in excess of the prescribed maximum weight limitation permitted by this article is prima facie evidence that the gross weight of a vehicle and load is lawful. The presumption that the weight of the vehicle and load is lawful may be rebutted by the weight of the vehicle and load as shown by means of the department's stationary scale or a public weighmaster scale.

Article 3 Highway Use Fees

§ 28-5471 Highway use fees; commercial motor vehicles; definition

A. In addition to all other fees, a person registering a motor vehicle or vehicle combination in this state under chapter 7, article 7 or 8 of this title or section 28-2324 shall pay for each motor vehicle or vehicle combination a highway use fee determined according to the following table:

Gross weight Use fee for Use fee for

1979 and 1978 and older

newer models models

75,001 - 80,000 $ 2,217 $ 1,095

70,001 - 75,000 1,895 1,040

65,001 - 70,000 1,175 975

60,001 - 65,000 1,099 915

55,001 - 60,000 902 860

50,001 - 55,000 828 790

45,001 - 50,000 751 715

40,001 - 45,000 665 635

36,001 - 40,000 664 560

32,001 - 36,000 570 485

30,001 - 32,000 469 405

28,001 - 30,000 378 325

26,001 - 28,000 287 245

24,001 - 26,000 190 190

22,001 - 24,000 135 135

20,001 - 22,000 125 125

18,001 - 20,000 115 115

16,001 - 18,000 105 105

14,001 - 16,000 90 90

12,001 - 14,000 80 80

10,001 - 12,000 70 70

8,001 - 10,000 60 60

0 - 8,000 50 50

B. For the purposes of this article, "model" means the year that is assigned to the motor vehicle for vehicle titling purposes.

§ 28-5472 Additional highway use fees; nonresident owners

A nonresident owner of a foreign vehicle operated in this state and registered under section 28-2324 shall pay a highway use fee determined according to the following table:

Gross weight Use fee Use fee for 1978

and older models

75,001 - 80,000 $ 110 $ 40

70,001 - 75,000 105 35

65,001 - 70,000 100 35

60,001 - 65,000 90 30

55,001 - 60,000 85 30

50,001 - 55,000 80 30

45,001 - 50,000 70 25

40,001 - 45,000 65 25

36,001 - 40,000 55 20

32,001 - 36,000 50 20

30,001 - 32,000 40 15

28,001 - 30,000 35 15

26,001 - 28,000 25 10

24,001 - 26,000 20 10

22,001 - 24,000 15 8

20,001 - 22,000 15 8

18,001 - 20,000 10 8

16,001 - 18,000 10 8

14,001 - 16,000 10 8

12,001 - 14,000 10 8

10,001 - 12,000 10 8

8,001 - 10,000 8 8

0 - 8,000 8 8

§ 28-5473 Highway use fee; reduction; basis; proration; exemption

A. The highway use fee provided by this article is based on the gross weight as declared for the gross weight fee pursuant to section 28-5433.

B. The department shall reduce the highway use fee liability for a registration year for a fleet of vehicles proportionally registered pursuant to chapter 7, article 7 or 8 of this title by the amount of vehicle license taxes paid pursuant to section 28-5801 for the same registration year and for the same motor vehicles, trailers and semitrailers in the fleet.

C. The department shall reduce the highway use fee prescribed in this article on a motor vehicle not previously registered or otherwise qualified for operation in this state by one-twelfth for each full month of the registration year that has expired.

D. An owner of a farm vehicle that is issued a farm vehicle license plate pursuant to section 28-2514 is exempt from the highway use fee prescribed by this article.

§ 28-5474 Axle fees; commercial vehicles; border crossing; definition

A. The director may adopt rules establishing a fee based on the number of axles attached to a foreign vehicle or a foreign vehicle combination that is imposed on nonresidents operating or causing the operation of a foreign vehicle or foreign vehicle combination that enters this state by crossing the border between this state and Mexico in the furtherance of a commercial enterprise.

B. If the director establishes a fee by rule pursuant to this section, the fee shall apply to a nonresident who is operating or causing the operation of a foreign vehicle or foreign vehicle combination and who is required to register the foreign vehicle or foreign vehicle combination pursuant to section 28-2321 or who is responsible for paying any fees required by section 28-2324, 28-2325, 28-5739, 28-5863 or 28-5864.

C. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected pursuant to this section as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

D. For the purposes of this section, "foreign vehicle" or "foreign vehicle combination" means a truck or truck tractor and semitrailer and any trailer that it tows that is registered in a foreign country or jurisdiction of a foreign country and enters this state by crossing the border between this state and Mexico in the furtherance of a commercial enterprise.

Article 4 Light Motor Vehicle Fee

§ 28-5491 Definitions

In this article, unless the context otherwise requires:

1. "Declared gross weight" has the same meaning prescribed in section 28-5431.

2. "Light motor vehicle" means a self-propelled motor driven vehicle that has a declared gross weight of twelve thousand or fewer pounds and that is used to transport for hire persons, freight or property.

§ 28-5492 Light motor vehicle fee imposed

A. Beginning on January 1, 1998, in addition to the registration and gross weight fees required by this title, an annual light motor vehicle fee of sixty-four dollars is imposed on each light motor vehicle.

B. The light motor vehicle fee imposed by this section shall be added to the gross weight fee imposed by section 28-5433 and is payable at the time the light motor vehicle is registered. The director shall consolidate the light motor vehicle fee imposed by this section with the gross weight fee imposed by section 28-5433 for the purpose of reducing administrative activities of the owners and operators of light motor vehicles and the department. The director shall prepare appropriate forms to perform the consolidation.

Chapter 16 Taxes

Article 1 Motor Fuel Taxes

§ 28-5601 Definitions

In this article and articles 2 and 5 of this chapter, unless the context otherwise requires:

1. "Blending":

(a) Means the mixing of one or more products, regardless of the original character of the product blended, if the product obtained by the blending is capable of use or otherwise sold for use in the generation of power for the propulsion of a motor vehicle, aircraft or watercraft.

(b) Does not include blending that occurs in the process of refining by the original refiner of crude petroleum or the blending of products known as lubricating oil and greases.

2. "Bulk end user" means a person who receives into the person's own storage facilities in transport truck lots motor fuel for the person's own consumption.

3. "Bulk plant" means a motor fuel storage and distribution facility that is not a terminal and from which motor fuel may be removed at a rack.

4. "Bulk transfer" means any transfer of motor fuel from one location to another by pipeline tender or marine delivery within the bulk transfer terminal system.

5. "Bulk transfer terminal system" means the motor fuel distribution system consisting of refineries, pipelines, marine vessels and terminals. Motor fuel in a refinery, pipeline, vessel or terminal is in the bulk transfer terminal system. Motor fuel in the fuel supply tank of any engine, or in any tank car, rail car, trailer, truck or other equipment suitable for ground transportation, is not in the bulk transfer terminal system.

6. "Consumer" means the end purchaser of motor vehicle fuel for use on the highways in this state, the end purchaser of motor vehicle fuel for use in watercraft on waterways of this state or the end purchaser of aviation fuel for use in aircraft.

7. "Destination state" means the state, territory or foreign country to which motor fuel is directed for delivery into a storage facility, a receptacle, a container or a type of transportation equipment for the purpose of resale or use.

8. "Distributor" means a person who acquires motor fuel from a supplier or another distributor for subsequent sale or use and who may blend or import into or export from this state motor fuel in the original package or container or otherwise but excluding a person who imports motor fuel in the fuel tank of a motor vehicle or aircraft.

9. "Dyed diesel fuel" means diesel fuel that is dyed pursuant to United States internal revenue service regulations or requirements, including any invisible marker requirements.

10. "Fuel tank" means a receptacle on a motor vehicle, watercraft or aircraft from which fuel is supplied for the propulsion of the motor vehicle, watercraft or aircraft, excluding a cargo tank but including a separate compartment of a cargo tank used as a fuel tank and an auxiliary tank or receptacle of any kind from which fuel is supplied for the propulsion of the motor vehicle, watercraft or aircraft, whether or not the tank or receptacle is directly connected to the fuel supply line of the motor vehicle, watercraft or aircraft.

11. "Highway" means any way or place in this state of whatever nature that is maintained by public monies and that is open to the use of the public for purposes of vehicular travel, including a highway under construction.

12. "In this state" means any way or place within the exterior limits of the state of Arizona that is maintained by public monies, including any such way or place that is owned by or ceded to the United States of America.

13. "Indian reservation" means all lands that are within the limits of areas set aside by the United States for the exclusive use and occupancy of Indian tribes by treaty, law or executive order and that are currently recognized as Indian reservations by the United States department of the interior.

14. "Indian tribe" means any organized nation, tribe, band or community recognized as an Indian tribe by the United States department of the interior.

15. "Interstate user" means a person registering a use class motor vehicle under chapter 7, article 7 or 8 of this title or section 28-2321 or 28-2324.

16. "Invoiced gallons" means the gallons actually billed on an invoice in payment to a supplier.

17. "Light class motor vehicle" means a motor vehicle that uses use fuel on the highways in this state but excludes a road tractor, truck tractor, truck or passenger carrying vehicle having a declared gross vehicle weight of more than twenty-six thousand pounds or having more than two axles.

18. "Motor fuel" means motor vehicle fuel, use fuel and aviation fuel.

19. "Motor vehicle" means a self-propelled vehicle required to be licensed or subject to licensing for operation on a highway.

20. "Permissive supplier" means an out-of-state supplier that elects, but is not required, to have a supplier's license pursuant to this article.

21. "Person" means an individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver or syndicate, this state, any county, city, town, district or other subdivision of this state, an Indian tribe, or any other group or combination acting as a unit.

22. "Position holder":

(a) Means the person who holds the inventory position in motor fuel in a terminal, as reflected on the records of the terminal operator. For the purposes of this subdivision, "a person who holds the inventory position in motor fuel" means a person who has a contract with the terminal operator for the use of storage facilities and terminaling services for fuel at the terminal.

(b) Includes a terminal operator who owns fuel in the terminal.

23. "Public monies" means those monies that are received by this state and that are derived all or in part from tax revenues or other funding sources.

24. "Qualified terminal" means a terminal that is designated as a qualified terminal pursuant to the United States internal revenue code, regulation and practices and that has been assigned a terminal control number by the United States internal revenue service.

25. "Rack" means a mechanism for delivering motor fuel from a refinery, a terminal or a bulk plant into a railroad tank car, a transport truck or other means of transfer that is outside the bulk transfer terminal system.

26. "Refiner" means any person who owns, operates or otherwise controls a refinery within the United States.

27. "Refinery" means a facility that is used to produce motor fuel from crude oil, unfinished oils, natural gas liquids, transmix or other hydrocarbons or by blending and from which motor fuel may be removed by pipeline, by vessel or at a rack.

28. "Road tractor" means a motor vehicle that is designed and used for drawing other vehicles and that is not constructed to carry either a load independently or any part of the weight of a vehicle or load so drawn.

29. "Sell" includes a transfer of title or possession, exchange or barter in any manner or by any means.

30. "Supplier":

(a) Means a person who is registered pursuant to section 4101 of the United States internal revenue code for transactions in motor fuels in the bulk transfer terminal distribution system and who is one of the following:

(i) The position holder in a terminal or refinery in this state.

(ii) A person who imports motor fuel into this state from a foreign country.

(iii) A person who acquires motor fuel from a terminal or refinery in this state from a position holder pursuant to a two party exchange.

(iv) The position holder in a terminal or refinery outside this state with respect to motor fuel that that person imports into this state on the account of that person.

(b) Includes a permissive supplier unless specifically provided otherwise. Supplier does not include a terminal operator merely because the terminal operator handles motor fuel consigned to the terminal operator within a terminal.

31. "Terminal" means a storage and distribution facility for motor fuel, which is supplied by pipeline or marine vessel, that is registered as a qualified terminal by the United States internal revenue service and from which motor fuel may be removed at a rack.

32. "Terminal bulk transfer" includes the following:

(a) A marine barge movement of motor fuel from a refinery or terminal to a terminal.

(b) Pipeline movements of motor fuel from a refinery or terminal to a terminal.

33. "Terminal operator" means any person who owns, operates or otherwise controls a terminal and who does not use a substantial portion of the motor fuel that is transferred through or stored in the terminal for the person's own use or consumption or in the manufacture of products other than motor fuel. A terminal operator may own the motor fuel that is transferred through or stored in the terminal.

34. "Transmix" means the buffer or interface between two different products in a pipeline shipment or a mix of two different products within a refinery or terminal that results in an off-grade mixture that is not usable or salable as motor fuel.

35. "Two party exchange" means a transaction:

(a) In which motor fuel is transferred from one licensed supplier or licensed permissive supplier to another licensed supplier or licensed permissive supplier.

(b) That includes a transfer from the person that holds the original inventory position for motor fuel in the terminal as reflected on the records of the terminal operator.

(c) That is simultaneous with removal from the terminal by the receiving exchange party.

(d) In which the terminal operator in the terminal operator's books and records treats the receiving exchange party as the supplier that removes the product across a terminal rack for purposes of reporting the events to the department.

36. "Use" includes the placing of fuel into any receptacle on a motor vehicle from which fuel is supplied for the propulsion of the vehicle unless the operator of the vehicle establishes to the satisfaction of the director that the fuel was consumed for a purpose other than to propel a motor vehicle on a highway in this state and, with respect to fuel brought into this state in any such receptacle on a use class motor vehicle, the consumption of the fuel in this state. A person who places fuel in a receptacle on a use class motor vehicle of another is not deemed to have used the fuel.

37. "Use class motor vehicle" means a motor vehicle that uses use fuel on a highway in this state and that is a road tractor, truck tractor, truck or passenger carrying vehicle having a declared gross vehicle weight of more than twenty-six thousand pounds or having more than two axles.

38. "Use fuel" includes all gases and liquids used or suitable for use to propel motor vehicles, except fuels that are subject to the motor vehicle fuel tax imposed by this article.

39. "User" includes a person who, within the meaning of the term use as defined in this section, uses fuel in a use class motor vehicle.

40. "Vendor" includes a person who sells use fuel in this state and who places the fuel or causes the fuel to be placed into any receptacle on a motor vehicle from which receptacle fuel is supplied for the propulsion, including a service station dealer, a broker and a user who sells use fuel to others.

§ 28-5602 Enforcement

The following persons have authority to enforce this article:

1. The director of the department of transportation and the director's duly appointed agents.

2. The associate director of the weights and measures services division of the Arizona department of agriculture and the associate director's duly appointed agents.

3. The department of public safety and its officers.

§ 28-5603 Motor fuel testing

A. The director may take samples of any liquid believed to be motor fuel and may make or cause to be made an analysis of the liquid.

B. The chemistry department or other qualified department of the university of Arizona shall:

1. Analyze samples on request of the director.

2. Promptly furnish to the director a full report of the analysis without cost.

§ 28-5604 Reward for detecting violations

The department may set up in its budget for the fiscal year an item from which a person, other than a state officer or employee, who directs the attention of the director to a person who has failed to file the required reports and has failed to pay taxes imposed by this article or section 28-8344 may be paid an amount that in the discretion of the department is deemed proper but that does not exceed ten per cent of the amount of the tax, penalty and interest ultimately collected from the person as a result of the information.

§ 28-5605 Use fuel tax collection; fuel dispenser labels; civil penalty

A. A vendor shall not collect more than the use fuel tax imposed pursuant to section 28-5606, subsection B, paragraph 1 from a person who purchases use fuel for use in the propulsion of a light class motor vehicle on a highway in this state or for use in the propulsion of a use class motor vehicle that is exempt pursuant to section 28-5432 from the weight fee prescribed in section 28-5433 on a highway in this state.

B. Subject to the following, vendors shall label use fuel dispensers pursuant to standards established by the weights and measures services division of the Arizona department of agriculture:

1. Labels on use fuel dispensers shall notify the purchaser of the state use fuel tax rate. The department of transportation shall provide the use fuel dispenser labels to vendors if the vendor submits a receipt from one fueling position for each use fuel type and, if applicable, one in-store point-of-sale system.

2. If the vendor sells use fuel only to light class motor vehicles or use class motor vehicles that are exempt pursuant to section 28-5432 from the weight fee prescribed in section 28-5433, or both, the vendor shall post that limitation and include the tax rate prescribed in section 28-5606, subsection B, paragraph 1.

3. If light class motor vehicles and use class motor vehicles are allowed to fuel at the same use fuel dispenser, the vendor shall include the tax rate prescribed in section 28-5606, subsection B, paragraph 2 and post a notice that the tax rate for light class motor vehicles and use class motor vehicles that are exempt pursuant to section 28-5432 from the weight fee prescribed in section 28-5433 is the tax rate prescribed in section 28-5606, subsection B, paragraph 1.

4. If the vendor prohibits light class motor vehicles or use class motor vehicles from dispensing fuel from a specific fuel dispenser, the vendor shall post that prohibition.

5. In addition to posting a sign on a use fuel dispenser that indicates that the price of the use fuel dispensed from that dispenser includes the applicable federal and state taxes, a vendor that dispenses use fuel from a cardlock facility shall require the purchaser of use fuel for light class motor vehicles or use class motor vehicles that are exempt pursuant to section 28-5432 from the weight fee prescribed in section 28-5433, or both, to complete a declaration of status in a form and a manner approved by the director. For the purposes of this paragraph, "cardlock facility" means a use fuel vendor that satisfies all of the following:

(a) Is licensed in this state.

(b) Sells only to preapproved purchasers of use fuel who have been issued cards, keys or other controlled access to identify the exclusive withdrawal of that particular purchaser.

(c) Does not have a representative on the premises to observe the withdrawal of use fuel from the vendor's storage.

(d) Measures volumes of fuel dispensed by pump meters or other accurate recording devices.

C. A vendor who violates subsection B of this section is subject to a civil penalty of $100 for each day the violation continues.

§ 28-5606 Imposition of motor fuel taxes

A. In addition to all other taxes provided by law, a tax of eighteen cents per gallon is imposed on motor vehicle fuel possessed, used or consumed in this state.

B. To partially compensate this state for the use of its highways:

1. A use fuel tax is imposed on use fuel used in the propulsion of a light class motor vehicle on a highway in this state at the same rate per gallon as the motor vehicle fuel tax prescribed in subsection A of this section, except that there is no use fuel tax on alternative fuels.

2. A use fuel tax is imposed on use fuel used in the propulsion of a use class motor vehicle on a highway in this state at the rate of twenty-six cents for each gallon, except that there is no use fuel tax on alternative fuels and use class vehicles that are exempt pursuant to section 28-5432 from the weight fee prescribed in section 28-5433 are subject to the use fuel tax imposed by paragraph 1 of this subsection.

3. Through December 31, 2024, a use fuel tax is imposed on use fuel used in the propulsion of a motor vehicle transporting forest products in compliance with the requirements of section 41-1516 on a highway in this state at the rate of nine cents for each gallon, except that there is no use fuel tax on alternative fuels.

C. The motor vehicle fuel and use fuel taxes imposed pursuant to this section and the aviation fuel taxes imposed pursuant to section 28-8344 are conclusively presumed to be direct taxes on the consumer or user but shall be collected and remitted to the department by suppliers for the purpose of convenience and facility only. Motor vehicle fuel, use fuel and aviation fuel taxes that are collected and paid to the department by a supplier are considered to be advance payments, shall be added to the price of motor vehicle fuel, use fuel or aviation fuel and shall be recovered from the consumer or user.

D. Motor vehicle fuel and use fuel taxes imposed pursuant to this section on the use of motor vehicle fuel and use fuel and the aviation fuel taxes imposed pursuant to section 28-8344 on the use of aviation fuel, other than by bulk transfer, arise at the time the motor vehicle, use or aviation fuel either:

1. Is imported into this state and is measured by invoiced gallons received outside this state at a refinery, terminal or bulk plant for delivery to a destination in this state.

2. Is removed, as measured by invoiced gallons, from the bulk transfer terminal system or from a qualified terminal in this state.

3. Is removed, as measured by invoiced gallons, from the bulk transfer terminal system or from a qualified terminal or refinery outside this state for delivery to a destination in this state as represented on the shipping papers if a supplier imports the motor vehicle, use or aviation fuel for the account of the supplier or the supplier has made a tax precollection election pursuant to section 28-5636.

E. If motor fuel is removed from the bulk transfer terminal system or from a qualified terminal or is imported into this state, the original removal, transfer or importation of the motor fuel is subject to the collection of the tax. If this motor fuel is transported to another qualified terminal or reenters the bulk transfer terminal system, the subsequent sale of the motor fuel on which tax has been collected is not subject to collection of an additional tax if proper documentation is retained to support the transaction.

§ 28-5607 Fuel imported by other than licensed supplier; payment of tax; fee; import limitation

A. A person who is not licensed as a supplier and who imports motor fuel from a point outside this state to a point in this state shall pay both:

1. The tax at a department facility approved by the director before importing the fuel.

2. A twenty-five dollar administrative processing fee.

B. A person who is not licensed as a supplier and who causes motor fuel on which taxes have not been collected to be transported from a point outside this state to a point in this state shall pay to the director the following:

1. The tax required by section 28-5606 or 28-8344.

2. A penalty equal to the tax required by section 28-5606 or 28-8344.

3. Interest of one per cent per month or portion of a month on the tax.

C. A person who is not licensed as a supplier may not import more than sixteen thousand gallons of motor fuel per calendar year.

§ 28-5608 Fuel imported in fuel tanks; violation; classification

A. An owner or operator of a motor vehicle, watercraft or aircraft who imports motor fuel into this state in the fuel tank or tanks of a motor vehicle, watercraft or aircraft in a quantity exceeding the capacity of the fuel tank or tanks of that vehicle, watercraft or aircraft according to the manufacturer's stock specifications shall pay to the director the tax required of suppliers on the excess motor fuel.

B. A person who violates this section is guilty of a class 2 misdemeanor.

§ 28-5609 Railroad common carrier exemption; exception; report

A. Except for section 28-5607, subsection B, sections 28-5602, 28-5603, 28-5608, 28-5610, 28-5611, 28-5612, 28-5622, 28-5624 and 28-5923 and this section, this article does not apply to railroad common carriers that are not engaged in the business of a supplier for pecuniary gain.

B. A railroad common carrier:

1. If it imports motor fuel, shall make a verified report to the director on forms prescribed and furnished by the director, on or before the twenty-seventh day of the next succeeding month, showing the amount of fuel it has imported.

2. If it sells, otherwise disposes of or uses any fuel it has imported in a motor vehicle operated on the highways in this state or in a watercraft or an aircraft, shall make a verified report to the director on forms prescribed and furnished by the director, on or before the twenty-seventh day of the next succeeding month, showing either:

(a) The name of the person or persons to whom the fuel was sold or otherwise disposed of.

(b) If used by it in a motor vehicle operated on the highways in this state or in a watercraft or an aircraft, a description of the vehicle, watercraft or aircraft in which the fuel was used.

3. Shall pay to the director at the time the report is made the tax required of suppliers by this article.

4. Shall furnish to the director other information concerning motor fuel imported by it as the director requires.

5. May be required to file a bond with the director in an amount fixed by the director to ensure compliance with this section.

§ 28-5610 Exemptions

A. The following are exempt from motor vehicle fuel and use fuel taxes imposed by section 28-5606 and aviation fuel taxes imposed by section 28-8344:

1. Motor fuel for which proof of export is available in the form of a terminal-issued destination state shipping paper or bill of lading and that is either:

(a) Exported by a supplier who is licensed in the destination state.

(b) Sold by a supplier to a distributor for immediate export.

2. Motor fuel that was acquired by a distributor, as to which the tax imposed by this article or section 28-8344 has previously been paid or accrued and that was subsequently exported by transport truck by or on behalf of the distributor in a diversion across state boundaries properly reported to the department. If diverted by a distributor, the distributor shall perfect the exemption by filing a refund application with the department within six months after the diversion.

3. Motor vehicle fuel or use fuel that is sold within an Indian reservation to an enrolled member of the Indian tribe who is living on the Indian reservation established for the benefit of that Indian tribe and that is used by the enrolled member for the enrolled member's own benefit. This exemption does not apply to sales within an Indian reservation by an Indian or Indian tribe to non-Indian consumers or to Indian consumers who are not members of the Indian tribe for which the Indian reservation was established or to use fuel used to operate motor vehicles for a commercial purpose outside of the reservation on highways in this state. For the purposes of this paragraph, "Indian" means an individual who is registered on the tribal rolls of the Indian tribe for whose benefit the Indian reservation was created.

4. Motor vehicle fuel or use fuel used solely and exclusively as fuel to operate a motor vehicle on highways in this state if the motor vehicle is leased to or owned by and is being operated for the sole benefit of an Indian tribe for governmental purposes only.

5. Motor fuel that is moving in interstate or foreign commerce and that is not destined or diverted to a point in this state.

6. Motor vehicle or aviation fuel that is sold to the United States or an instrumentality or agency of the United States.

7. Taxable use fuel that has been accidentally contaminated so as to be unsalable as highway fuel as proved by proper documentation.

8. Dyed diesel fuel, including fuel used by either of the following:

(a) A farm tractor or implement of husbandry designed primarily for or used in agricultural operations and only incidentally operated or moved on a highway.

(b) A road roller or vehicle that is all of the following:

(i) Designed and used primarily for grading, paving, earthmoving or other construction work on a highway.

(ii) Not designed or used primarily for transportation of persons or property.

(iii) Incidentally operated or moved over the highway.

B. A use class vehicle shall pay the use fuel tax for light class motor vehicles prescribed by section 28-5606, subsection B, paragraph 1 if the vehicle is a truck and satisfies all of the following:

1. Is at least twenty-five years old.

2. Has been issued a historic vehicle license plate pursuant to section 28-2484.

3. Is not used as a commercial vehicle.

C. Notwithstanding subsection A, paragraph 8 of this section, the following are not exempt from use fuel taxes imposed by section 28-5606:

1. A vehicle that was originally designed for the transportation of persons or property and to which machinery is attached or on which machinery or other property may be transported.

2. A dump truck.

3. A truck mounted transit mixer.

4. A truck or trailer mounted crane.

5. A truck or trailer mounted shovel.

D. Except as provided in subsections E and F of this section, a person who claims an exemption pursuant to this section shall perfect the exemption by claiming a refund pursuant to section 28-5612.

E. Subject to sections 28-5645, 28-5646, 28-5647, 28-5648, and 28-5649, dyed diesel fuel is exempt from use fuel taxes at the time of sale.

F. Motor fuel that originates outside this state, is moving in interstate or foreign commerce and is not destined or diverted to a point in this state is exempt from motor fuel taxes as the motor fuel travels across this state.

§ 28-5611 Refunds; motor vehicle fuel

A. Except as provided in subsection B of this section, on application to the director pursuant to this article and if section 28-5612 is complied with, a person who buys and uses motor vehicle fuel shall receive a refund in the amount of the tax if the person pays the tax on the fuel and either:

1. Uses the fuel other than in any of the following:

(a) A motor vehicle on a highway in this state.

(b) Watercraft on the waterways of this state.

(c) A motor vehicle operating on a transportation facility or toll road pursuant to chapter 22 of this title.

2. Buys aviation fuel for use in aircraft applying seeds, fertilizer or pesticides.

3. Loses the fuel by fire, theft or other accident.

B. If a claim for refund is based on the use of motor vehicle fuel in aircraft, five cents of the tax collected on each gallon of motor vehicle fuel claimed shall remain in the state aviation fund, and the department shall refund the remainder of the tax pursuant to section 28-5612.

§ 28-5612 Refund procedure; violation

A. A person who is seeking a refund and who is not licensed as a supplier, interstate user, restricted distributor or use fuel vendor shall:

1. File an application with the director within six months after the date of sale.

2. Submit proof satisfactory to the director of the following:

(a) The purpose for which the fuel was used.

(b) The tax paid purchase.

3. Make an application in a form prescribed by the department that requests the following information:

(a) Name and address of the claimant.

(b) Period covered by the claim showing dates.

(c) Location of equipment, if applicable.

(d) Gallons on which a refund is claimed.

(e) Amount of the refund claimed.

(f) Other information required by the director.

B. The claim shall not be under oath but shall contain or be accompanied by a written declaration that it is made under penalties of perjury and, if it is for motor vehicle fuel, that it complies in all respects with section 28-5611 relating to refunds.

C. The original invoice or a duplicate that is satisfactory to the director and that includes the following information shall accompany the application:

1. The date of purchase.

2. The seller's name and address.

3. The number of gallons purchased.

4. The type of fuel purchased.

5. The price per gallon of the fuel.

6. Other information required by the director.

D. If a person files a claim for a refund pursuant to this section for motor fuel exported, the person shall make satisfactory proof of export to the director and file the claim within three months after the date of export in the form and containing the information required by the director. The original invoice or an acceptable duplicate shall accompany the claim.

E. The director shall accept only one application for refund of motor fuel taxes for any one person within a six month period if the aggregate total of all motor fuel taxes paid and for which a refund is claimed does not equal at least ten dollars.

F. If a person who is exempt from use fuel taxes pursuant to section 28-5610 submits a claim for a refund pursuant to this section for use fuel taxes, the department shall not pay the refund until the department determines the difference between the amount of the refund and the amount of the use tax that is imposed under title 42, chapter 5, article 4 on the fuel exempt from use fuel taxes if owed by the person. If the department determines that the amount of the refund is greater than the amount owed for the use tax, the department shall deposit the amount owed for the use tax pursuant to subsection M of this section and refund the amount of the difference to the person. If the department determines that the amount of the refund is less than the amount owed for the use tax, the department shall forward any balance due information to the department of revenue for collection.

G. Except as provided in subsection F of this section, if the director does not issue a refund within sixty days after a complete application for refund is filed as prescribed in this article, the director shall pay interest at the rate of eleven per cent per year from the date the complete application for refund is filed until the date on which the refund is made.

H. If the director denies a refund, the director shall notify the claimant that the refund is denied. The director's denial is final unless the applicant makes a written request for a hearing as prescribed in section 28-5924.

I. It is unlawful for a person to knowingly operate a motor vehicle on the highways or a watercraft on the waterways using motor vehicle fuel or use fuel that has been sold to a person making a claim pursuant to this section.

J. In addition to other penalties prescribed by law, the director shall not give a person who violates this section a refund on motor fuel purchased during the six months succeeding the date the director advises the person by mail of the director's discovery of the violation.

K. A person whose right to a refund is suspended may bring an action in superior court in Maricopa County to set aside the suspension.

L. The director may recover excess refunds from the person to whom the refund was made. The director shall assess the claimant the amount of the excess refund and interest. The director shall compute interest at one per cent per month of the amount of excess refund due beginning on the date of refund and until the date the assessment is paid.

M. The department of transportation shall deposit, pursuant to sections 35-146 and 35-147, use tax revenues collected pursuant to subsection F of this section in the state general fund by the end of each month and notify the department of revenue of the amount of use tax collected each month.

§ 28-5613 Licensee refunds; definition

A. A licensee who is seeking a refund shall apply pursuant to section 28-5612, except that a licensee shall file an application for refund within three years after the date of purchase or invoice of the motor fuel for which a refund is claimed.

B. For the purposes of this section, "licensee" includes a supplier, an interstate user, a restricted distributor or a licensed use fuel vendor.

§ 28-5614 Refunds; use fuel

A. If a vendor pays the use fuel tax rate for use class motor vehicles on use fuel that is actually used in the propulsion of a light class motor vehicle on a highway in this state or that is actually used in the propulsion of a use class motor vehicle that is exempt pursuant to section 28-5432 from the weight fee prescribed in section 28-5433 on a highway in this state and for the purpose of convenience and facility only, the vendor may apply to the department for a refund of the difference between the amount of the use class motor vehicle use fuel tax paid and the amount of the light class motor vehicle use fuel tax on the same number of gallons purchased.

B. If a person who transports forest products on a highway in this state in compliance with the requirements of section 41-1516 pays the use fuel tax rate prescribed in section 28-5606, subsection B, paragraph 2 for a use class motor vehicle that is eligible for the use fuel tax rate prescribed in section 28-5606, subsection B, paragraph 3, the person may apply to the department for a refund of the difference between the amount of the use fuel tax paid and the use fuel tax rate prescribed for a motor vehicle transporting forest products.

C. The director may prescribe any forms the director deems necessary to implement this section.

D. A vendor may file an application for a refund pursuant to this section on a monthly basis subject to the limitations prescribed in section 28-5612.

E. The director shall:

1. Pay the refund from current use fuel tax receipts.

2. Deduct the refund from the monthly use fuel tax receipts before the deposit pursuant to section 28-5730 is made.

§ 28-5615 Presumption of use

A. For the proper administration of this article and to prevent evasion of the use fuel tax, it is presumed, until the contrary is established by competent proof under rules and procedures the director adopts, that all use fuel received into any receptacle on a motor vehicle from which fuel is supplied to propel the vehicle is consumed in propelling the vehicle on the highways in this state.

B. If a vendor's dealings in use fuel primarily involve delivery of use fuel into the fuel tanks of motor vehicles it is presumed, until the contrary is established by competent proof under procedures the director adopts, that the vendor's total use fuel acquisitions have been delivered into the fuel tanks of motor vehicles for the propulsion of the vehicles on the public highways.

§ 28-5616 Light class motor vehicles

With respect to light class motor vehicles, the director shall not:

1. Issue a refund for use fuel purchased in this state and consumed on the highways of another state.

2. Tax use fuel acquired in another state and consumed on the highways in this state.

§ 28-5617 Vendors; receipt

A. A vendor of use fuel, the use of which is taxable under this article, who sells and delivers the use fuel into a fuel tank shall give the user a receipt for the use fuel. The receipt shall include the following:

1. The date of purchase.

2. The seller's name and address.

3. The number of gallons purchased.

4. The type of fuel purchased.

5. The price per gallon of the fuel.

6. The rate of tax paid.

7. Other information required by the director.

B. A person who is the owner of use fuel that is contained in bulk storage and who permits the fuel to be delivered into the fuel tank of a motor vehicle for which the person is not the owner or lessee:

1. Is presumed to be a vendor of use fuel.

2. Shall comply with the requirements in this article for vendors of use fuel.

§ 28-5618 Report requirements

A. On or before the twenty-seventh day of each month, a supplier shall file with the director a true and verified statement in a form prescribed by the director showing:

1. The total number of gallons of motor vehicle fuel or aviation fuel, blended, imported, exported or acquired during the preceding calendar month.

2. The number of gallons of motor vehicle fuel or aviation fuel sold or otherwise disposed of by the supplier for use in each of the several counties of this state.

3. The total number of gallons of motor vehicle fuel that is included in this subsection and that is intended for use in aircraft.

4. Other information the director requires.

B. In addition to making the statement required in subsection A and if the supplier received an interstate shipment of motor vehicle fuel during the preceding month, the supplier shall report on or before the twenty-seventh day of each month to the director in a form prescribed by the director:

1. The quantity and particular description of the fuel received by interstate shipment and delivered intercounty.

2. The name of the consignor and consignee.

3. The date shipped.

4. The date received.

5. How it was shipped.

6. Other information the director requires.

C. A supplier may amend a report filed pursuant to this section within three years after the date the original tax report was filed unless the report for the period is final due to an audit.

D. If an amended report results in a reduction in taxes paid, the department shall credit the licensee's account unless the licensee files a written request for a refund.

§ 28-5619 Records required; violation; classification

A. Suppliers and restricted distributors shall maintain and keep records of motor vehicle fuel or aviation fuel received, acquired, used, sold and delivered in this state by the supplier or restricted distributor, the amount of tax paid as part of the purchase price, invoices, bills of lading and other pertinent records and papers required by the director for the reasonable administration of this article at least until the later of the following:

1. Three years after a report is required to be filed pursuant to this article.

2. Three years after a report is filed.

B. Any person, other than a restricted distributor, purchasing motor vehicle fuel taxable under this article or aviation fuel taxable under section 28-8344 from a supplier for the purpose of resale shall maintain and keep for one year a record of motor vehicle fuel or aviation fuel received, the amount of tax paid to the supplier as part of the purchase price, delivery tickets, invoices, bills of lading and other records the director requires.

C. Each distributor and vendor shall maintain and keep for three years the following:

1. Records of use fuel received, sold or delivered in this state by the distributor or vendor.

2. Invoices, bills of lading and other pertinent records and papers required by the director for the reasonable administration of this article.

D. The director may require distributors to file information as to sales or deliveries to vendors or users of use fuel at the times and in the form as the director requires.

E. A person who violates this section is guilty of a class 1 misdemeanor.

§ 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 person pertaining to motor 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 supplier 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. The director may prescribe forms for required reports or claims for refund or forms of record to be used by suppliers, distributors, restricted distributors, vendors or refund claimants.

D. Records required by this article may be maintained in this state. If the records are maintained outside this state and on request of the director, the records shall be made 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 person 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.

§ 28-5621 Failure to report or pay tax; penalties; interest; transmittal date

A. Except as otherwise provided in this subsection, if a supplier fails to submit the monthly report to the director on or before the twenty-seventh day of the month, fails to submit the data or information required under this article in the monthly report or fails to pay the amount of taxes due when payable, the supplier shall pay interest on the unpaid tax at the rate of one per cent per month or portion of a month from the due date until paid and a penalty of five per cent shall be added to any tax not paid on or before the day prescribed for the payment of the tax. A supplier is not subject to the five per cent penalty on transactions reported within ninety days after the due date if the supplier has paid at least ninety-nine and one-half per cent of the actual tax liability for the month by the due date.

B. In addition to the penalty provided by subsection A, a person who fails to file a report required by this section when due shall pay an additional penalty of twenty-five dollars.

C. If a report or remittance required by this article is transmitted through the United States mail and is not received by the director until after the date on which the report is required to be filed or the payment was required to be made and if the envelope in which the report or remittance is enclosed has a post office cancellation mark dated on or before that date, on receipt of the envelope, the director shall treat the report or remittance as if it had been received on the required date.

§ 28-5622 Tax estimate

If a person neglects or refuses to make and file a report as required by this article, or files an incorrect or fraudulent report, the director shall determine from information obtainable in the director's office or elsewhere the number of gallons of motor fuel with respect to which the person has incurred liability under this article or section 28-8344.

§ 28-5623 Civil penalty; use fuel purchaser; vendor refund; financial penalty prohibited; subsequent violations

A. Notwithstanding any other law, if a person intentionally purchases use fuel for use in a use class motor vehicle that is not exempt pursuant to section 28-5432 from the weight fee prescribed in section 28-5433 and the person pays the use fuel tax rate for a light class motor vehicle, all of the following apply:

1. Except as provided in subsection B of this section, the person is subject to a civil penalty of one thousand dollars or ten dollars for each gallon of use fuel dispensed, whichever is greater, and shall pay to the department the difference between the amount of light class motor vehicle use fuel tax paid and the amount of the use class motor vehicle use fuel tax on the same number of gallons purchased.

2. The department may not deny a refund requested by a vendor pursuant to section 28-5614 for that purchase.

3. The department shall not impose any penalty, including a financial penalty of any kind, on a vendor for that purchase if the purchase was determined as a result of any inquiry, including any audit process.

B. For a second or subsequent violation, the civil penalty shall be determined by multiplying the amount prescribed in subsection A of this section by the number of prior violations.

C. A vendor shall not be liable for the civil penalty imposed by this section provided the vendor is not the owner or operator of the vehicle into which the fuel was dispensed or conspired with the purchaser to evade the proper tax rate.

§ 28-5624 Transportation of fuel by motor vehicle; documentation; violation; penalties

A. An operator of a motor vehicle transporting motor fuel on a highway in this state shall carry documentation to accompany the shipment at all times while the shipment is being transported on the highways in this state. The director may inspect the documentation at any time.

B. The documentation shall include:

1. The date of shipment of the fuel.

2. The quantity and particular description of the fuel.

3. The names of the consignor and consignee.

4. The destination state of the fuel shipment.

5. Other information as the director requires.

C. An operator of a motor vehicle transporting motor fuel in this state who fails to carry documentation at the time and in the manner required pursuant to subsection A of this section shall pay to the director a penalty of one hundred dollars for each shipment not accompanied by the required documentation in addition to payment of the tax required by section 28-5606 or the tax prescribed in section 28-8344. An operator of a motor vehicle transporting motor fuel may apply for abatement of the penalty pursuant to section 28-5934.

§ 28-5625 Restricted distributor licenses; reports; violation; classification

A. A person shall obtain a license and report pursuant to subsection D of this section as a restricted distributor of motor vehicle fuel from the director if all of the following apply:

1. The person transports for sale motor vehicle fuel to another county from the county that was originally reported by the supplier.

2. The person purchases or otherwise acquires motor vehicle fuel in tank car or cargo lots.

3. The person sells the motor vehicle fuel for delivery in this state or export from this state.

4. The person is not required by this article to be licensed as a supplier.

B. To obtain a restricted distributor license, a person shall file with the director an application that contains the following:

1. The name under which the person is transacting business in this state.

2. The address of the person's principal office or place of business in this state.

3. The name and address of the owner, the names and addresses of the partners if the restricted distributor is a partnership or the names and addresses of the principal officer if the restricted distributor is a corporation or association.

4. Other information the director requires.

C. If the application is in proper form and is accepted for filing, the director shall issue to the applicant a license to transact business as a restricted distributor in this state subject to cancellation as provided by law.

D. A restricted distributor shall report on or before the twenty-seventh day of each month to the director in a form prescribed by the director:

1. The quantity of motor vehicle fuel acquired during the preceding calendar month.

2. The disposition of the motor vehicle fuel for use in each of the several counties.

3. The name of the consignor and consignee.

4. The date shipped.

5. The date received.

6. How it was shipped.

7. Other information the director requires.

E. A restricted distributor may amend a report filed pursuant to this section within three years after the date the original tax report was filed unless the report for the period is final due to an audit.

F. If a restricted distributor files a false report or fails, refuses or neglects to file a report pursuant to subsection D of this section, the director may cancel the restricted distributor's license and notify the restricted distributor of the cancellation by regular mail at the last known address of the restricted distributor appearing in the department's records.

G. If a restricted distributor ceases to engage in business as a restricted distributor in this state by reason of discontinuance, sale or transfer of the business, the restricted distributor shall notify the director in writing at least ten days before the discontinuance, sale or transfer takes effect. If the restricted distributor sells or transfers the business, the restricted distributor shall include the name and address of the purchaser or transferee in the notice to the director.

H. A person who is required to be licensed as a restricted distributor of motor vehicle fuel pursuant to this section and who fails to obtain a license is guilty of a class 1 misdemeanor.

§ 28-5626 Suppliers; vendors; licenses required

A. Except as provided in section 28-5607, a person who acts as a distributor and who possesses motor fuel on which fuel taxes have not been accrued or collected by a supplier shall be licensed as a supplier.

B. It is unlawful for a person to engage in business in this state as a supplier, unless the person has a license issued by the director to engage in that business.

C. A person who sells use fuel for delivery directly into a vehicle fuel tank shall also be licensed as a vendor and shall maintain separate business records.

§ 28-5627 License application

A. To obtain a license, a supplier shall file with the director an application under oath and in the form the director prescribes including:

1. The name under which the supplier will transact business in this state.

2. The location and address of the supplier's principal office or place of business in this state.

3. The name and complete residence address of either:

(a) The owner.

(b) The partners, if the supplier is a partnership.

(c) The principal officers, if the supplier is a corporation or association.

4. If the supplier is a corporation or association organized under the laws of another state, territory or country, a certified copy of the certificate of license issued by the corporation commission showing that the corporation or association is authorized to transact business in this state.

5. A bond of the character stipulated and in the amount provided for in section 28-5631.

6. A filing fee of fifty dollars.

7. Other information the director requires.

B. A person who desires to precollect the tax imposed by this article as a supplier and who is a permissive supplier may obtain a permissive supplier's license by filing an application as prescribed in subsection A of this section. Application for or possession of a permissive supplier's license does not in itself subject the applicant or licensee to the jurisdiction of this state for any purpose other than administration and enforcement of this article.

C. The director shall not issue a license unless the application is accompanied by the required bond or evidence that the bond exists.

D. The director shall keep and file all applications and bonds with an alphabetical index of the applications and bonds and a record of all licensed suppliers.

§ 28-5628 Refusal to issue license

If an application for a license to transact business as a supplier in this state is filed by a person whose license has previously been cancelled for cause by the director or if the director is of the opinion that the application is not filed in good faith or that the application is filed by some person as a subterfuge for a real person in interest whose license or registration has previously been cancelled for cause by the director and after a hearing, the director may refuse to issue a license to transact business as a supplier in this state. The director shall give the applicant five days' notice in writing of the hearing. The applicant may appear in person or by counsel and present testimony.

§ 28-5629 License issued

If the application is in proper form and has been accepted for filing, if the filing fee is paid and if the bond is accepted and approved, the director shall issue to the supplier a license to transact business as a supplier in this state, subject to cancellation as provided by law.

§ 28-5630 License; assignability; display; duplicates

A. A license issued to a supplier under section 28-5629:

1. Is not assignable.

2. Is valid only for the supplier in whose name it is issued.

3. Shall be displayed conspicuously in the principal place of business of the supplier in this state.

B. A licensee shall obtain a duplicate license for each established branch office or location for a fee of five dollars and shall display the duplicate license in the same manner as the original license displayed in the licensee's principal place of business.

§ 28-5631 Bonds; amount; failure of security

A. A supplier shall file a bond with the director on a form approved by the director with a surety company authorized by the Arizona corporation commission to transact business in this state as surety on the bond. The supplier shall be the principal obligor, and this state shall be the obligee on the bond. The bond shall be conditioned on the prompt filing of true reports and the payment by the supplier to the director of all motor fuel taxes that are levied or imposed by this state, together with all penalties and interest on the taxes, and generally on faithful compliance with this article.

B. The director shall fix the total amount of the bond required of a supplier and may increase or reduce the amount at any time, subject to the limitations provided in this article. In fixing the total amount of the bond required of a supplier, the director shall require a bond in an amount equal to two times the director's estimate of the supplier's monthly tax, determined in a manner the director deems proper. The total amount of the bond required of a supplier shall be at least five thousand but not more than five million dollars.

C. A supplier may request in writing that the director return, refund or release a bond required pursuant to this section. The director may return, refund or release a bond if the director determines that the supplier has continuously complied with this article for at least the previous three consecutive years. If the director determines that the return, refund or release of the bond would jeopardize state revenues, the director may elect to retain the bond or may reimpose a requirement for a bond. A person who is aggrieved by a decision of the director pursuant to this subsection may request a hearing pursuant to section 28-5924.

D. If liability on the bond filed by the supplier with the director is discharged or reduced or if in the opinion of the director a surety on the bond given has become unsatisfactory or unacceptable, the director may require the supplier to file a new bond with satisfactory sureties in the same amount. If the supplier fails to file a new bond as required, the director shall cancel the license of the supplier immediately. If the new bond is furnished by the supplier, the director shall cancel and surrender the bond for which the new bond is substituted.

E. If on a hearing, of which the supplier was given five days' notice in writing mailed to the supplier's last known address, the director decides that the amount of the existing bond is insufficient to ensure payment to this state of the amount of the tax, penalties and interest for which the supplier is or may become liable, the supplier, on the written demand of the director, shall immediately file an additional bond in the same manner and form with a surety company on the bond approved by the director in an amount determined by the director as necessary to secure at all times payment by the supplier of all taxes, penalties and interest due under this article. If the supplier fails to file an additional bond as required, the director shall cancel the license of the supplier immediately.

F. A surety on a bond furnished by a supplier shall be released and discharged from all liability to this state accruing on the bond on the last day of the month that includes the sixtieth day after the date on which the surety files with the director a written request to be released and discharged. The request does not relieve, release or discharge the surety from liability already accrued or from liability that accrues before the last day of the month that includes the end of the sixty day period. On receipt of notice of the request, the director shall promptly notify the supplier who furnished the bond and shall cancel the license of the supplier immediately, unless the supplier, on or before the last day of the month that includes the end of the sixty day period, files with the director a new bond with a surety company satisfactory to the director in the amount and form provided in this section. If the new bond is furnished by the supplier, the director shall cancel and surrender the bond for which the new bond is substituted.

G. This section does not relieve a supplier of the supplier's duty to file the verified monthly report required by this article.

§ 28-5633 License cancellation

A. The director may immediately cancel the license of a supplier and notify the supplier in writing of the cancellation by certified mail, mailed to the last known address of the supplier appearing in the files of the department, if the supplier either:

1. Files a false report of data or information required by this article.

2. Fails, refuses or neglects to file a monthly report or any other report required by this article.

3. Fails, refuses or neglects to pay the full amount of the tax required by this article or section 28-8344.

B. The director may cancel a license that is issued to any supplier and that becomes effective sixty days after the date of receipt of the written request of the supplier for the cancellation. The director shall not cancel a license on request of a supplier unless the supplier pays, before the date of the cancellation, all taxes payable under this article or section 28-8344 and all penalties and fines accruing by reason of the supplier's failure to make accurate reports as required by this article or to pay the taxes or penalties.

C. The director may cancel the license of a supplier on investigation and sixty days' notice mailed to the last known address of the supplier if the director determines that the person to whom the license has been issued is no longer engaged in the business of a supplier and has not been engaged in the business of a supplier for six months before the cancellation.

§ 28-5634 Bond cancellation

If the license of a supplier is cancelled by the director pursuant to section 28-5633 and if the supplier has paid all taxes due and payable by the supplier as required by this article or section 28-8344 on the receipt, sale or use of motor vehicle fuel or aviation fuel and has paid all interest and penalties accruing by reason of the supplier's failure to make accurate reports or to pay the tax and interest and penalties, the director shall cancel and surrender the bond filed by the supplier.

§ 28-5635 Discontinuance, sale or transfer of business; violation; classification

A. When a supplier ceases to engage in business as a supplier in this state and discontinues, sells or transfers the business:

1. The supplier shall notify the director in writing at least ten days before the discontinuance, sale or transfer takes effect. The notice shall give:

(a) The date of discontinuance, sale or transfer of the business.

(b) The name and address of the purchaser or transferee of the business.

2. All taxes, penalties and interest not then due and payable under this article or section 28-8344 are due and payable concurrently with the discontinuance, sale or transfer. Concurrent with the discontinuance, sale or transfer, the supplier shall:

(a) Make a report.

(b) Pay all taxes, interest and penalties.

(c) Surrender to the director the license issued to the supplier by the director.

B. Unless the notice is given to the director, the purchaser or transferee is liable to this state for the amount of all taxes, penalties and interest accrued under this article or section 28-8344 against the supplier who is selling or transferring the supplier's business on the date of the sale or transfer but only to the extent of the value of the property and business that is acquired from the supplier.

C. A person who violates this section is guilty of a class 1 misdemeanor.

§ 28-5636 Supplier blanket election

A. A licensed supplier may and a licensed permissive supplier shall make a blanket election with the department to treat all removals from all of its out-of-state terminals with a destination in this state as shown on the terminal-issued shipping paper or bill of lading as if the removals were removed across the rack by the supplier from a terminal in this state for all purposes.

B. The election provided by this section shall be made by filing a notice of election with the department.

C. The department shall release a list of electing suppliers under this section on request by any person.

D. The absence of an election by a supplier under this section in no way relieves the supplier of responsibility for remitting the tax imposed by this article on the removal from an out-of-state terminal for import into this state by the supplier.

E. Any supplier that makes the election provided by this section shall precollect the tax imposed pursuant to this article or the tax imposed pursuant to section 28-8344 on all removals from a qualified terminal on its account as a position holder, or as a person receiving motor vehicle or aviation fuel from a position holder pursuant to a two party exchange agreement without regard to the license status of the person acquiring the motor vehicle or aviation fuel from the supplier, the point or terms of sale or the character of delivery.

F. Each supplier who elects to precollect tax under this section agrees to waive any defense that the state lacks jurisdiction to require collection on all out-of-state sales by the supplier as to which the supplier had knowledge that the shipments were destined for this state and agrees that this state imposes the requirement pursuant to this subsection under its general police powers to regulate the movement of motor vehicle or aviation fuel.

G. Each supplier who elects to precollect tax pursuant to this section is not subject to any civil penalties or interest imposed pursuant to this article for any corrections resulting from a diversion of the motor vehicle or aviation fuel from the original destination as represented by the purchaser or the agent of the purchaser.

§ 28-5637 Collection of fuel tax from purchaser; deferred remittance election

A. Each supplier who sells motor fuel shall precollect from and remit on behalf of the purchaser the motor vehicle fuel or use fuel tax imposed pursuant to this article or the aviation fuel tax imposed pursuant to section 28-8344.

B. At the election of an eligible purchaser, the supplier shall not require a payment of the motor fuel tax on transport truck loads from the purchaser sooner than five business days before the date on which the tax is required to be remitted by the supplier under section 28-5925 or on other terms agreed to by the eligible purchaser and the supplier. This subsection does not apply if the supplier requires the purchaser to pay cash or a cash equivalent for motor fuel purchases.

C. The election shall be evidenced by a written statement from the department as to the purchaser eligibility status as determined pursuant to section 28-5638 and is subject to a condition that the remittances by the eligible purchaser of all amounts of tax due the supplier shall be paid by electronic funds transfer on or before five days preceding the date of the remittance by the supplier to the department.

D. The election by the eligible purchaser under this section may be terminated by the supplier if the eligible purchaser does not make timely payments to the supplier as required by this section.

§ 28-5638 Deferred remittance election eligibility

A. Each purchaser that desires to make an election under section 28-5637 shall present evidence to the department that either:

1. The applicant was a licensed distributor in good standing before January 1, 1998.

2. The applicant meets the financial responsibility and bonding requirements imposed by this article. The bond shall conform to the specific requirements of this section.

B. The department may require a purchaser that pays the tax to a supplier to file with the department a surety bond that is payable to this state and on which the purchaser is the obligor, or other financial security, in an amount satisfactory to the department. The department may require that the bond indemnify the department against uncollectible tax credits claimed by the supplier under section 28-5639.

C. The department may rescind a purchaser's eligibility and election to defer motor vehicle or aviation fuel tax remittances after a hearing and on a showing of good cause, including failure to make a timely tax deferred payment of tax to a supplier under section 28-5637, by sending written notice to all suppliers or publishing notice of the revocation pursuant to rules. The department may require further assurance of the financial responsibility of the purchaser, may increase the bond requirement for that purchaser or may take any other action that the department may require to ensure remittance of the motor vehicle or aviation fuel tax.

§ 28-5639 Uncollectible tax credit

A. In computing the amount of motor fuel tax due, the supplier is entitled to a credit against the tax payable in the amount of tax paid by the supplier that has become uncollectible from an eligible purchaser.

B. The supplier shall provide notice to the department of a failure to collect the tax within thirty days after the earliest date on which the supplier was entitled to collect the tax from the eligible purchaser under section 28-5637.

C. The credit shall be claimed on the first return after the expiration of the thirty day period if the payment remains unpaid as of the filing date of that return or the credit is disallowed.

D. The claim for credit shall identify the defaulting eligible purchaser and any tax liability that remains unpaid.

E. If an eligible purchaser fails to make a timely payment of the amount of tax due, the credit of the supplier is limited to the amount due from the purchaser, plus any tax that accrues from that purchaser for a period of thirty days after the date of failure to pay.

F. An additional credit shall not be allowed to a supplier under this section until the department authorizes the purchaser under section 28-5638 to make a new election.

§ 28-5640 Collection allowance

Each supplier and permissive supplier that properly remits tax under this article may retain four-tenths of one per cent of the taxes imposed by this article and collected and remitted by that supplier in accordance with this article to cover the costs of administration imposed by this article, including reporting, audit compliance and shipping paper preparation, except that the amount retained under this article shall not exceed two hundred thousand dollars in any one calendar year.

§ 28-5643 Reliance on representations

A. A supplier and a terminal operator are entitled to rely for all purposes of this article on the representation by the transporter, the shipper or the agent of the shipper as to the intended state of destination.

B. The shipper, importer, transporter, agent of the shipper and any purchaser, not the supplier or terminal operator, are jointly liable for any tax otherwise due to this state as a result of a diversion of the motor fuel from the represented destination state.

C. A terminal operator is entitled to rely on the representation of a licensed supplier with respect to the obligation of the supplier to precollect tax and the related shipping paper representation to be as shown on the shipping paper.

§ 28-5644 Terminal operator; joint and several liability

A. A terminal operator is jointly and severally liable for the motor vehicle fuel or use fuel tax imposed pursuant to this article or the aviation fuel tax imposed pursuant to section 28-8344 if both of the following apply:

1. The position holder with respect to the motor vehicle, use or aviation fuel is a person other than the terminal operator.

2. The terminal operator does not meet the conditions prescribed in subsection B of this section.

B. The terminal operator is not liable for the motor vehicle fuel or use fuel tax imposed pursuant to this article or the aviation fuel tax imposed pursuant to section 28-8344 if at the time of removal both of the following apply:

1. The terminal operator has an unexpired notification certificate from the position holder as required by the United States internal revenue service.

2. The terminal operator has no reason to believe that any information in the certificate is false.

§ 28-5645 Dyed diesel use; violation; classification

A. A person shall not operate or maintain a motor vehicle on any highway in this state with use fuel contained in the fuel supply tank for the motor vehicle that contains dye as provided under section 28-5610, subsection A, paragraph 8.

B. This section does not apply to:

1. Persons operating motor vehicles that have received use fuel into their fuel tanks outside of this state in a jurisdiction that permits introduction of dyed diesel fuel of that color and type into the fuel tank of highway vehicles.

2. Uses of dyed diesel fuel on the highway that are lawful under the United States internal revenue code and regulations issued under the United States internal revenue code and as set forth in section 28-5716 unless otherwise prohibited by this article.

3. A person operating a motor vehicle pursuant to section 28-5649.

C. Any person who knowingly violates or knowingly aids and abets another person in violating this section with the intent to evade taxes imposed pursuant to this article is guilty of a class 1 misdemeanor.

§ 28-5646 Dyed diesel notice

A. A notice stating "dyed diesel fuel, nontaxable use only, penalty for taxable use" shall be:

1. Provided by a terminal operator to any person who receives dyed diesel fuel at a terminal rack of that terminal operator.

2. Provided by a seller of dyed diesel fuel to its buyer if the diesel fuel is located outside the bulk transfer terminal system and is not sold from a retail pump posted in accordance with paragraph 3.

3. Posted by a seller on any retail pump where it sells dyed diesel fuel for use by its buyer.

B. The form of notice required under subsection A, paragraphs 1 and 2 shall be provided by the time of the removal or sale and shall appear on shipping papers, bills of lading and invoices accompanying the sale or removal of the dyed diesel fuel.

§ 28-5647 Dyed diesel; prohibited acts; joint and several liability

A. Except as provided in section 28-5649, a person shall not sell or hold for sale dyed diesel fuel for any use that the person knows or has reason to know is not a nontaxable use of the fuel.

B. A person shall not use or hold for use any dyed diesel fuel for a use other than a nontaxable use if the person knew or had reason to know that the fuel was so dyed.

C. A person shall not wilfully, with intent to evade tax, alter or attempt to alter the strength or composition of any dye or marker in any dyed diesel fuel.

D. A business entity and each officer, employee or agent of the entity who wilfully participates in any act in violation of this section are jointly and severally liable with the entity as follows:

1. For a penalty of one thousand dollars for each occurrence or ten dollars per gallon of dyed diesel involved, whichever is more.

2. For multiple offenses, the amount prescribed in paragraph 1 shall be multiplied by the number of occurrences.

§ 28-5648 Inspection of fuel and shipping papers

A. The department, or its appointees, including federal government employees or persons operating under contract with this state, on presenting appropriate credentials may conduct inspections and remove samples of fuel to determine coloration of diesel fuel, or to identify shipping paper violations at any place where taxable fuel is or may be produced, stored or loaded into transport vehicles. Inspections shall be performed in a reasonable manner consistent with the circumstances, but in no event is prior notice required. Inspectors may physically inspect, examine or otherwise search any tank, reservoir or other container that can or might be used for the production, storage or transportation of fuel. Inspection may be made of any equipment used for, or in connection with, the production, storage or transportation of fuel. Inspectors may demand that shipping papers, documents and records required to be kept by a person transporting fuel be produced for immediate inspection. The places that may be inspected pursuant to this section include:

1. A terminal.

2. A fuel storage facility that is not a terminal.

3. A retail fuel facility.

4. Highway rest stops.

5. A designated inspection site. For the purposes of this paragraph, "designated inspection site" means any state highway or waterway inspection station, weigh station, agricultural inspection station, mobile station or other location designated by the department that is either fixed or mobile.

B. Inspectors may reasonably detain any person or equipment transporting fuel in or through this state for the purpose of determining whether the person is operating in compliance with this article. Inspectors may detain a person or equipment only for such time as is necessary to determine whether the person is in compliance.

§ 28-5649 Dyed diesel fuel; permissible highway use

A. A person may sell dyed diesel fuel for use in a federally exempt motor vehicle prescribed in subsection B of this section on the highways in this state if the purchaser of the dyed diesel fuel provides a written statement to the seller of the dyed diesel fuel and to the department that dyed diesel fuel may only be used on highways in this state as provided in subsection B of this section. The statement may include other information the department requires.

B. Dyed diesel fuel may only be used on highways in this state in the following federally exempt motor vehicles:

1. A school bus if it is engaged in the transportation of students and school employees and is exempt from the federal excise tax on diesel fuel.

2. A qualified local bus if it is available to the general public, operates along a scheduled, regular route, has a seating capacity of at least twenty adults excluding the driver, is under contract with or receives more than a nominal subsidy from any state or local government to furnish that transportation and is exempt from the federal excise tax on diesel fuel.

3. A fire truck, fire engine or other fire apparatus if it is engaged in the transportation of firefighters outside of area A and area B as defined in section 49-541 and area C as defined in section 3-3401 is exempt from the federal excise tax on diesel fuel.

Article 2 Interstate User Fuel Tax Reponsibilities

§ 28-5702 Use fuel tax payment if not precollected

If the use fuel tax imposed pursuant to article 1 of this chapter is not precollected, the tax is due and payable by the fuel user.

§ 28-5703 Cooperative agreements; definitions

A. To comply with the intermodal surface transportation efficiency act of 1991, the director may enter into a cooperative agreement with other jurisdictions for the administration of motor fuel taxes imposed by article 1 of this chapter or section 28-8344. An agreement is not effective until signed by the director and filed with the department.

B. The agreement shall include:

1. The base jurisdiction concept. This concept allows a licensee to report and pay motor fuel use taxes to a base jurisdiction for distribution to other member jurisdictions in which the licensee traveled and incurred motor fuel use tax liability.

2. Retention of each jurisdiction's sovereign authority to determine tax rates and exemptions and exercise other substantive tax authority.

3. A uniform definition of the vehicles to which the agreement applies.

C. The agreement may provide for:

1. Determining the base jurisdiction for users.

2. Users records requirements.

3. Audit procedures.

4. Exchange of information.

5. Persons eligible for tax licensing.

6. Defining qualified motor vehicles.

7. Determining if bonding is required.

8. Specifying reporting requirements and periods, including defining uniform penalty and interest rates for late reporting.

9. Determining methods for collecting and forwarding motor fuel taxes and penalties to another jurisdiction.

10. Other provisions to facilitate the administration of the agreement.

11. Each jurisdiction to audit the records of persons based in the jurisdiction to determine if the motor fuel taxes due each jurisdiction are properly reported and paid.

D. Each jurisdiction shall forward the findings of the audits performed on persons based in the jurisdiction to each jurisdiction in which the person has taxable use of motor fuels. As required by the agreement, the director may forward to officers of another member jurisdiction any information in the director's possession relative to the manufacture, receipt, sale, use, transportation or shipment of motor fuels by any person. The director may disclose to officers of another member jurisdiction the location of offices, motor vehicles and other real and personal property of users of motor fuels.

E. Member jurisdictions may enforce this chapter against persons who are not based in this state and who have taxable use of motor fuel in this state.

F. An agreement entered into under this section does not preclude the director or the director's appointed representatives from auditing the records of a person covered by this article and article 1 of this chapter.

G. The legal remedies for a person served with an order or assessment under this section are as prescribed in article 5 of this chapter.

H. For the purposes of this section:

1. "Jurisdiction" means a state of the United States, the District of Columbia or a province or territory of the Dominion of Canada.

2. "Motor fuels" includes motor vehicle fuel, aviation fuel and use fuel.

3. "Qualified motor vehicle" means a use class motor vehicle.

§ 28-5705 Vehicle registration

Before registering a road tractor, truck tractor, truck having more than two axles or passenger carrying vehicle and before issuing a license pursuant to chapter 7 of this title, the registering or licensing official shall determine from the applicant whether or not a motor vehicle sought to be registered or in connection with which the license is sought is propelled by a fuel the use of which is subject to the use fuel tax imposed by article 1 of this chapter.

§ 28-5707 Violation; classification

A. Unless another classification is prescribed in this article, a person is guilty of a class 2 misdemeanor who:

1. Refuses to make a report required by this article.

2. Knowingly makes a false statement in a report or in connection with a claim for refund filed under this article.

3. Knowingly collects, attempts to collect or causes to be repaid to the person or to another person a refund of any amount paid to the state under this article without being entitled to the refund.

4. Uses fuel on a highway in violation of this article.

5. Otherwise violates this article.

B. Each day or part of a day during which a person uses fuel on a highway in violation of this article is a separate offense.

§ 28-5720 Tax payment

A. An intrastate user of use fuel on which the tax imposed by article 1 of this chapter has not been paid shall submit a remittance payable for the amount of the tax that is imposed by article 1 of this chapter, that is due and that is computed by multiplying the number of gallons of use fuel used in use class motor vehicles that are operated by the user by the rate per gallon as set forth in section 28-5606.

B. An interstate user of use fuel on which the tax imposed by article 1 of this chapter has not been paid shall submit with each report required under section 28-5732 a remittance payable for the amount of the tax that is imposed by article 1 of this chapter, that is due and that is computed by multiplying the number of gallons of use fuel used in use class motor vehicles that are operated by the user by the rate per gallon as set forth in section 28-5606. The taxable gallonage shall be computed on the basis of miles traveled in this state as compared to total miles traveled in and outside this state, and the director shall prescribe the actual method of computation. If operations in more than one state are involved, the user may compute the taxable gallonage in the prescribed manner based on one or more operating divisions involved in travel in this state, in lieu of reporting and computing the taxable gallonage on overall operations. The vehicles to be accounted for on every report shall be determined by the vehicles for which evidence of a valid license is required pursuant to section 28-5742. From the amount of tax due, the tax on use fuel purchased on which the tax has been previously paid shall be deducted, if the tax paid purchases are supported by copies of the sales invoices. If the computation shows additional tax is due, it shall be remitted with the report required under section 28-5732.

C. If a remittance to cover payment of taxes due as shown by any report required by this article to be made is sent through the United States mail properly addressed, it is deemed received by the director, for purposes of avoiding penalty and interest only, on the date shown by the postmark stamped on the envelope containing the report. If a mailing date is affixed to the envelope by a machine owned or under the control of the person submitting the report and the United States post office has corrected or changed the date stamped on the envelope by causing the official United States post office postmark to also be imprinted on the envelope, the date shown by the official United States post office postmark shall be the accepted date, if different from the original postmark.

§ 28-5721 Additional assessment

A. If the director is not satisfied with a report filed or the amount of use fuel tax paid by a licensee, the director may make an additional assessment of use fuel taxes due from the licensee based on any information available to the director.

B. The director shall give written notice to the licensee of the additional assessment served personally or by mail addressed to the licensee at the licensee's address of record in the office of the director.

§ 28-5722 Additional assessment; time limit

A. Except in the case of a fraudulent report or failure to make a report, a notice of additional use fuel tax proposed to be assessed shall be served on the licensee within four years after the alleged erroneous report was filed.

B. If a licensee fails or refuses to provide records or access to records demanded for auditing purposes, the time limit prescribed in this section is tolled until the records demanded are provided. Successive failures to adequately respond to a demand for records relate back to the first demand.

§ 28-5724 Failure to file report; assessment; license revocation or suspension

A. If a person fails, neglects or refuses to make a report required by this article, the director shall make an estimate for the month for which the licensee failed to make the report based on any information available to the director.

B. The director shall give the person written notice of the assessment served personally or by mail addressed to the person at the person's address of record in the office of the director.

C. If a person fails, neglects or refuses to make a report required by this article with full payment of the tax due, the director may revoke or suspend the person's license.

§ 28-5725 Interstate user credits or refunds

A. An interstate user shall file a written application for a credit or refund within three years after the date the original tax report was required to be filed. An interstate user shall not file an application for a credit or refund more than once in a calendar quarter, and an application for a refund shall not be for less than fifty dollars for a calendar quarter or shall be for at least ten dollars in a three year period. The application for credit or refund shall state the specific grounds on which the request for refund or credit is based and shall contain any additional information that the director requires.

B. The director shall:

1. Pay a refund from current use fuel tax receipts.

2. Deduct a refund from the monthly use fuel tax receipts before the deposit pursuant to section 28-5730.

C. If the director does not issue a refund within sixty days after a complete application for refund is filed as prescribed in this article, the director shall pay interest at the rate of eleven per cent per year from the date the complete application for refund is filed until the date on which the refund is made.

D. If the director denies a refund, the director shall notify the claimant that the refund is denied. The director's denial is final unless the applicant makes a written request for a hearing as prescribed in section 28-5924.

§ 28-5727 Erroneous assessment; cancellation in records

If an amount has been illegally or erroneously assessed against a licensee, the director shall cancel that amount on the director's records if a written claim for the amount is made within three years after the illegal or erroneous assessment is made.

§ 28-5728 Use fuel tax credit

A. A person who files a report under this article is entitled to a credit against the use fuel tax imposed under article 1 of this chapter, in addition to any other credit provided by this article, if the person has done all of the following:

1. Paid the use fuel tax imposed by article 1 of this chapter on use fuel purchased in this state.

2. Consumed the use fuel outside this state.

3. Paid a tax with respect to the use fuel in one or more other states or jurisdictions.

B. The amount of the use fuel tax credit provided by subsection A of this section for each gallon of use fuel that is purchased in this state and that is consumed outside this state is two cents.

C. To qualify for the credit under this section, the person shall submit any evidence required by the department. The director may authorize the person to submit the evidence required under this section with the report required by section 28-5732.

§ 28-5730 Use fuel tax; distribution

A. The director shall deposit, pursuant to sections 35-146 and 35-147, the use fuel taxes in the Arizona highway user revenue fund.

B. The director shall deposit, pursuant to sections 35-146 and 35-147, all fees imposed by this article and received by the director in the Arizona highway user revenue fund.

§ 28-5731 Record requirements

A. A licensee under this article shall make records as prescribed and in the manner required by the director as reasonably necessary to substantiate reports required by this article. A licensee shall retain those records at least until the later of the following:

1. Three years after a report is required to be filed pursuant to section 28-5732.

2. Three years after a report is filed.

B. The records shall include receipts pursuant to section 28-5617 for each sale or transfer of use fuel for use in a use class motor vehicle. In addition to the information required by section 28-5617, a licensee shall identify the motor vehicle by license plate number or unit number on the receipt or transaction listing.

C. The director may examine the books, papers, records and equipment of any person using, dealing in, transporting or storing fuel to determine whether the use fuel taxes due under article 1 of this chapter are properly reported and paid.

D. A person from whom the director has requested records may:

1. Make the records available at the office designated by the director.

2. If the place of business where records may be audited is located in this state, request the director to audit the records at the person's place of business.

E. If the person does not make records available at the office designated by the director and the place of business where records may be audited is located outside this state, the director may require the person to pay the department in advance for the cost of reimbursing employee subsistence and travel expenses.

§ 28-5732 Report requirements

A. The reporting period for a person who is an interstate user is a calendar quarter. On or before the last day of the month after the close of the reporting period an interstate user shall file with the director a report stating the amount of use fuel used during the reporting period and other information the director requires. The report shall be in a form prescribed by the director and shall not be under oath but shall contain or be accompanied by a written declaration that it is made under penalties of perjury. An interstate user shall file a report with the director for each reporting period even though no use fuel is used during, or tax is due for, the reporting period.

B. In lieu of a surety bond, the director may allow the prepayment of taxes based on the preceding reporting period's liability accrued by the interstate user.

C. Failure to receive the authorized report forms does not relieve a person from the obligation of submitting a report to the director, but the person may make a written report to the director setting forth all information required on the prescribed form. On or before the due date, the person shall file such a report, and the remittance payable to the department for the amount of tax, penalty, interest or other fees due, and the director shall accept the report in lieu of a report in the prescribed form.

§ 28-5734 Interstate user license requirement

A. Except as provided in section 28-5739, it is unlawful for a person to act as an interstate user without being licensed as an interstate user. Unless otherwise specified, a person who violates this subsection is subject to the penalties prescribed in section 28-5921.

B. A person who is an interstate user shall obtain a use fuel license in the name of the motor vehicle registrant, except that:

1. At the rental company's option, a rental company receiving approval for consolidated tax filing from the director may be the licensee in lieu of the vehicle registrant.

2. If the registrant leases the motor vehicle to a lessee who is licensed as an interstate user and there is a written agreement so providing, the registrant may permit the lessee to include the vehicle under the lessee's license for purposes of this article. A written lease agreement shall specify which party to the lease agreement is responsible for obtaining the interstate user license.

§ 28-5735 License application; fee

A. An applicant for a license required by this article shall file with the director or authorized third party both:

1. An application that:

(a) Is in the form and submitted in the manner that the director prescribes.

(b) States the name and address of the applicant and other information as required by this article or by the director.

(c) Is not under oath but contains or is accompanied by a written declaration that it is made under penalties of perjury.

2. A ten dollar filing fee.

B. If a licensee acts in a capacity other than that for which a license has been issued, the licensee shall both:

1. Apply for an additional license in accordance with this section.

2. Submit with each application a filing fee in accordance with this section.

§ 28-5736 Bond requirement

A. The director may require an interstate user or applicant to post a surety or cash bond if one or more of the following apply:

1. The interstate user fails to file tax reports timely or to remit taxes timely.

2. The director determines that the interests of this state or member jurisdictions are in jeopardy.

3. The applicant is not based in a jurisdiction that is a member of the international fuel tax agreement.

4. The applicant does not have a good standing status from another member jurisdiction as a result of a previous license.

5. The applicant does not have history as a motor carrier in this state or any other member jurisdiction.

B. If required, the surety or cash bond:

1. Shall indicate that the interstate user is the principal obligor and the state is the obligee.

2. Shall be conditioned on the interstate user faithfully complying with this article and the prompt filing of true reports and payment by the interstate user of all use fuel taxes and fees due or accrued under this article, together with all penalties and interest on the taxes and fees.

3. Shall be in an amount that is prescribed by the director and that does not exceed one hundred thousand dollars.

§ 28-5737 Discharge of surety

A. On written request to the director, a surety on a bond furnished by a licensee pursuant to this article shall be discharged from any liability to the state accruing on the bond after the last day of the month that includes the sixtieth day after the date of filing the request but not from liability already accrued or accruing before the last day of the month that includes the end of the sixty day period. On receipt of such a request, the director shall promptly notify the licensee who furnished the bond in question.

B. Unless the licensee files a new bond satisfactory to the director on or before the last day of the month that includes the end of the sixty day period, the director shall immediately revoke the licensee's license.

§ 28-5738 License denial

The director or authorized third party may deny a license if the application:

1. Is filed by a person whose license at any time before application has been revoked for cause by the director.

2. Contains a misrepresentation, misstatement or omission of material information required by the application.

3. Is filed by some person as a subterfuge for the real person in interest whose license or registration at any time before application has been revoked for cause by the director.

4. Is filed by a person who is delinquent in the payment of any fee, tax, penalty or other amount due the department or for its account as determined by the director after granting the applicant a hearing of which the applicant is given ten days' notice in writing and in which the applicant has the right to appear in person or by counsel and present testimony.

5. Is filed by a person who has been licensed previously by any member jurisdiction of the international fuel tax agreement and that license is under revocation.

§ 28-5739 Single trip and other limited use fuel tax permits

A. If a use class motor vehicle is propelled by use fuel and is operated in this state in the course of interstate traffic, the department may issue, in lieu of an interstate user 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 use fuel tax permit is $65 for more than fifty miles traveled on the highways in this state and $16 for fifty miles or less traveled on the highways in this state.

C. The single trip use fuel tax permit is valid for ninety-six hours.

D. The department:

1. Shall issue a single trip use fuel tax permit in duplicate.

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, ninety or one hundred eighty day use fuel tax permit for a use class motor vehicle if the vehicle is in this state for a limited time. The fees for these permits are as follows:

(a) For a thirty day permit, $130.

(b) For a ninety day permit, $390.

(c) For a one hundred eighty day permit, $780.

E. The director may authorize third parties to issue use fuel tax permits pursuant to this section in accordance with rules adopted by the director.

F. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected pursuant to this section at ports of entry on the border between this state and Mexico as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

G. The fees imposed pursuant to this section do not apply to a use class motor vehicle that is used in the production of:

1. Motion pictures, including films to be shown in theaters and on television.

2. Industrial, training and educational films.

3. Commercials for television.

4. Video discs.

5. Videotapes.

§ 28-5740 License issuance; duration

A. The director or authorized third party shall issue a license to an applicant if:

1. The application is in proper form and has been accepted for filing.

2. Any other conditions and requirements of this article have been met.

B. A license is valid until cancelled, surrendered or revoked pursuant to this article.

§ 28-5742 Evidence of valid license

A. A licensee who is an interstate user shall carry evidence of a valid license at all times in the cab of the vehicles operated by the licensee.

B. The operator of a motor vehicle shall display evidence of a valid license to the director, the director's authorized agents or any other law enforcement officer in this state on demand or at any port of entry or exit as required.

C. If evidence of a properly issued license is not displayed, whether through loss or theft or for any other reason, the operator of the vehicle may be required to purchase a special single trip use fuel tax permit pursuant to section 28-5739.

D. An interstate user licensee is liable for any use fuel tax that accrues to each motor vehicle operated by the licensee.

E. If evidence of a valid license is lost, stolen or destroyed, an interstate user licensee's liability for use of that evidence of a valid license is relieved twenty-four hours after the director receives written notification from the licensee that the evidence of a valid license has been lost, stolen or destroyed.

§ 28-5743 Discontinuance of business

A. If a person ceases to be a licensee by reason of discontinuance, sale or transfer of the person's business at any location:

1. The person shall:

(a) Notify the director in writing at the time the discontinuance, sale or transfer takes effect.

(b) Give the director the date of discontinuance.

(c) If there is a sale or transfer of the business, give the director the name and address of the purchaser or transferee.

2. All taxes, penalties and interest not yet due and payable under this article, notwithstanding this article, are due and payable concurrently with the discontinuance, sale or transfer.

3. The licensee shall:

(a) Make a report.

(b) Pay all taxes, fees, penalties and interest.

(c) Surrender to the director the license certificate issued to the licensee and all duplicates of a valid license.

B. Unless the notice prescribed in subsection A has been given to the director, the seller and the seller's surety are liable for the tax, fees, penalties and interest accruing against the transferee, but only to the extent of the value of the property transferred.

§ 28-5745 License revocation; hearing

A. The director may revoke the license of a person who refuses or neglects to comply with any provision of this article or any rule adopted pursuant to this article.

B. Before revoking the license, the director shall send notice by certified mail to the licensee at the licensee's address of record ordering the licensee to appear in the office of the director on a date at least ten days after mailing the notice and to show cause why the licensee's license should not be revoked.

Article 3 Vehicle License Tax

§ 28-5801 Vehicle license tax rate; definitions

A. At the time of application for and before registration each year of a vehicle, the registering officer shall collect the vehicle license tax imposed by article IX, section 11, Constitution of Arizona. On the taxpayer's vehicle license tax bill, the registering officer shall provide the taxpayer with information showing the amount of the vehicle license tax that each category of recipient will receive and the amount that is owed by the taxpayer.

B. Except as provided in subsections C, D and E of this section:

1. During the first twelve months of the life of a vehicle as determined by its initial registration, the vehicle license tax is based on each $100 in value, the value of the vehicle is sixty percent of the manufacturer's base retail price of the vehicle and the vehicle license tax rate for each of the recipients is as follows:

(a) The rate for the Arizona highway user revenue fund is $1.26.

(b) The rate for the county general fund is $.69.

(c) The rate for counties for any purposes related to transportation, as determined by the board of supervisors, is $.16.

(d) The rate for incorporated cities and towns is $.69.

2. During each succeeding twelve-month period, the vehicle license tax is based on each $100 in value, the value of the vehicle is 16.25 percent less than the value for the preceding twelve-month period and the vehicle license tax rate for each of the recipients is as follows:

(a) The rate for the Arizona highway user revenue fund is $1.30.

(b) The rate for the county general fund is $.71.

(c) The rate for counties for the same use as highway user revenue fund monies is $.17.

(d) The rate for incorporated cities and towns is $.71.

3. The minimum amount of the vehicle license tax computed under this section is $10 per year for each vehicle that is subject to the tax. If the product of all of the rates prescribed in paragraph 1 or 2 of this subsection is less than $10, the vehicle license tax is $10. The vehicle license tax collected pursuant to this paragraph shall be distributed to the recipients prescribed in this subsection based on the percentage of each recipient's rate to the sum of all of the rates.

C. The vehicle license tax is as follows for noncommercial trailers that are not travel trailers and that are ten thousand pounds or less declared gross weight:

1. On initial registration, a onetime vehicle license tax of $105.

2. On renewal of registration, a onetime vehicle license tax of $70.

D. The vehicle license tax is as follows for a trailer or semitrailer that is not a travel trailer and that exceeds ten thousand pounds declared gross weight:

1. On initial registration, a onetime vehicle license tax of $555.

2. On renewal of registration or if previously registered in another state, a onetime vehicle license tax of:

(a) If the trailer's or semitrailer's model year is less than six years old, $355.

(b) If the trailer's or semitrailer's model year is at least six years old, $100.

E. The vehicle license tax for an all-terrain vehicle or off-highway vehicle as defined in section 28-1171 is $3 if the all-terrain vehicle or off-highway vehicle meets both of the following criteria:

1. Is designed by the manufacturer primarily for travel over unimproved terrain.

2. Has an unladen weight of two thousand five hundred pounds or less.

F. The vehicle license tax collected pursuant to subsection C, D or E of this section shall be distributed to the recipients prescribed in subsection B of this section based on the percentage of each recipient's rate to the sum of all of the rates.

G. For the purposes of this section:

1. "Declared gross weight" has the same meaning prescribed in section 28-5431.

2. "Travel trailer" has the same meaning prescribed in section 28-2003.

§ 28-5802 Vehicle license tax exemption; veterans

A. Notwithstanding sections 28-2003 and 28-5801, the registering officer shall not collect a vehicle license tax or registration fee from:

1. A veteran residing in this state for a vehicle or any replacement of the vehicle acquired by financial aid from the United States department of veterans affairs pursuant to Public Laws 79-663, 85-56, 85-857, 90-77, 91-666 and 93-538; 38 United States Code sections 1901 through 1988.

2. A veteran for a personally owned vehicle or a veteran and another party owning a vehicle if the veteran is certified by the United States department of veterans affairs as having a one hundred percent disability and drawing compensation on that basis. The exemption provided by this paragraph applies to a surviving spouse of the veteran with a disability until the surviving spouse's remarriage or death.

B. On initial registration of a vehicle a veteran claiming an exemption under subsection A of this section shall present satisfactory proof of the United States department of veterans affairs financial aid or government compensation and certificate on determination of one hundred percent disability, as applicable. The veteran may claim and be granted an exemption and the surviving spouse may renew the registration pursuant to the terms of the exemption provided to the veteran for only one vehicle or any replacement of the vehicle owned by the veteran or the surviving spouse until the surviving spouse's remarriage or death.

C. Notwithstanding sections 28-2003 and 28-5801, the registering officer shall not collect a vehicle license tax and registration fee from a veteran for a personally owned vehicle or a veteran and another party owning a vehicle. The exemption allowed by this subsection applies only to one vehicle and only if all of the following apply:

1. The veteran is a bona fide purple heart medal recipient.

2. The veteran was honorably discharged from the United States military.

3. On initial registration of the vehicle, the veteran submits satisfactory proof to the department that the person is a veteran and a bona fide purple heart medal recipient and was honorably discharged as required by paragraph 2 of this subsection.

§ 28-5803 Vehicle license tax exemption; individuals with disabilities

A. Notwithstanding section 28-5801, the registering officer shall not collect a vehicle license tax for a vehicle owned by a resident who is a recipient of public monies as an individual with a disability under title 16 of the social security act.

B. A resident claiming the exemption under this section shall present satisfactory proof of the assistance described in subsection A of this section.

C. A resident with a disability may claim only one vehicle for exemption under this section.

§ 28-5803.01 Vehicle license tax and registration fee exemption; spouse or dependents of first responder or military member; applicability; definitions

A. Notwithstanding sections 28-2003 and 28-5801, beginning January 1, 2016, the registering officer may not collect a vehicle license tax or registration fee for a vehicle owned by a surviving spouse or a surviving dependent of a deceased first responder who was killed in the line of duty or who died from injuries suffered in the line of duty on or after April 5, 1933.

B. Notwithstanding sections 28-2003 and 28-5801, beginning January 1, 2017, the registering officer may not collect a vehicle license tax or registration fee for a vehicle owned by a resident of this state who is a surviving spouse or a surviving dependent of a deceased member of the United States military who was killed in the line of duty or who died from injuries suffered in the line of duty.

C. The exemption for a surviving spouse that is provided by this section applies until the surviving spouse's remarriage or death. The exemption for the surviving dependent applies until the person is no longer considered a dependent.

D. A surviving spouse or surviving dependent may claim only one vehicle for exemption under subsection A of this section or one vehicle for exemption under subsection B of this section.

E. For the purposes of this section:

1. "Dependent" means an unmarried child of a first responder or United States military member who meets one of the following qualifications:

(a) Is under eighteen years of age.

(b) Is at least eighteen years of age and under twenty-three years of age only during any period that the child is a full-time student.

(c) Is under a disability that began before the child attained twenty-three years of age and remains a dependent of the surviving spouse or a guardian.

2. "First responder" has the same meaning prescribed in section 36-661 and includes a person who is a volunteer first responder and who is operating in an official capacity on behalf of a government entity that is involved in an emergency or law enforcement response.

§ 28-5804 Privately owned motor vehicle used as school bus; classification; vehicle license tax

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 privately owned motor vehicles that are exclusively operated as school buses.

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 vehicle 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. If a school bus is temporarily operated for purposes other than those prescribed by section 28-101, the registering officer shall:

1. Assess and collect monthly a vehicle license tax equal to one-tenth of the annual vehicle license tax provided in section 28-5801 for each calendar month that the motor vehicle is so operated in this state.

2. Not apportion the vehicle license tax for any fraction of a calendar month.

§ 28-5805 Motor vehicle powered by alternative fuel; 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 that are powered by alternative fuel and for which the department issues an alternative fuel vehicle special plate or sticker pursuant to section 28-2416.

B. Notwithstanding section 28-5801, the registering officer shall collect at the time of application for and before registration of the motor vehicle that is classified under this section an annual license tax of $4 for each $100 in value. The motor vehicle value is determined as follows:

1. For a motor vehicle that is registered in this state before January 1, 2022, the value of the motor vehicle is one percent of the manufacturer's base retail price of the motor vehicle. After the first twelve months of the life of the motor vehicle as determined by its initial registration, the value of the motor vehicle is fifteen percent less for each twelve-month period than the value for the preceding twelve-month period.

2. For a motor vehicle that is initially registered in this state during a period beginning January 1, 2022 and ending December 31, 2022, during the first twelve months of the life of the motor vehicle as determined by its initial registration, the value of the motor vehicle is twenty percent of the manufacturer's base retail price of the motor vehicle. During each succeeding twelve-month period, the value of the motor vehicle is fifteen percent less than the value for the preceding twelve-month period.

C. The registering officer shall collect the vehicle license tax on a motor vehicle that is powered by alternative fuel and that is initially registered from and after December 31, 2022 in accordance with section 28-5801. The minimum amount of the vehicle license tax collected pursuant to this subsection must be in accordance with section 28-5801 and shall be distributed pursuant to section 28-5808, subsection B.

D. Except as provided in subsection C of this section, the minimum amount of the license tax computed under this section is $5 per year for each motor vehicle subject to the tax.

E. Except as specifically provided in this section, the vehicle license tax on a motor vehicle classified under this section is governed by this article.

F. For the purposes of this section:

1. "Alternative fuel" has the same meaning prescribed in section 1-215.

2. "Motor vehicle" means a vehicle that meets the safety standards of the national highway traffic safety administration and includes:

(a) Neighborhood electric vehicles that meet the standards prescribed in 49 Code of Federal Regulations section 571.500, except that, if a vehicle is designed to be operated at speeds of twenty miles per hour or less, the vehicle is not required to have a seventeen digit vehicle identification number.

(b) Neighborhood electric shuttles.

§ 28-5806 Privately owned motor vehicle used for ambulance or fire fighting services; classification; vehicle license tax; definition

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 privately owned motor vehicles that are used solely for the purpose of providing ambulance or fire fighting services.

B. Notwithstanding section 28-5801, at the time of application for and before registration of the motor vehicle classified pursuant to subsection A of this section the registering officer shall collect an annual license tax at the rate 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 vehicles classified pursuant to subsection A of this section is governed by this article.

E. If a vehicle is temporarily operated for purposes other than providing ambulance or fire fighting services, the registering officer shall:

1. Assess and collect monthly a vehicle license tax equal to one-tenth of the annual vehicle license tax provided for by section 28-5801 for each calendar month that the motor vehicle is so operated in this state.

2. Not apportion the vehicle license tax for any fraction of a calendar month.

F. For purposes of this section, "ambulance" means a vehicle for which a certificate of registration has been issued pursuant to title 36, chapter 21.1.

§ 28-5807 Registration period; proration; retroactive collection

A. The director shall initially register a vehicle with a registration expiration of twelve months from the last day of the month in which the vehicle was initially purchased.

B. The director may register or reregister a vehicle for less than twelve months and prorate the annual vehicle license tax if the director determines proration tends to fulfill the purpose of the monthly registration system.

C. The director shall not collect a vehicle license tax retroactively for any period that the vehicle was not registered if the current owner of the vehicle was not the owner of the vehicle during any part of the period in which the vehicle was not registered.

§ 28-5808 Vehicle license tax distribution

A. Except as provided in subsection D of this section, the director shall distribute monies collected by the director pursuant to section 28-5801, except monies deposited in the state general fund, on the first and fifteenth calendar day of each month as follows:

1. On the first calendar day, the director shall deposit, pursuant to sections 35-146 and 35-147, all of the Arizona highway user revenue fund monies received from the first through the fifteenth calendar day of the preceding month in the Arizona highway user revenue fund, except that on the first calendar day the director shall deposit, pursuant to sections 35-146 and 35-147, in the parity compensation fund established by section 41-1720, 1.51 per cent of the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund from the first through the fifteenth calendar day of the preceding month.

2. On the fifteenth calendar day, the director shall deposit, pursuant to sections 35-146 and 35-147, all of the Arizona highway user revenue fund monies received from the sixteenth through the last day of the preceding month in the Arizona highway user revenue fund, except that on the fifteenth calendar day, the director shall deposit, pursuant to sections 35-146 and 35-147, in the parity compensation fund established by section 41-1720, 1.51 per cent of the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund from the sixteenth through the last day of the preceding month. On the fifteenth calendar day, the director shall distribute or deposit all other monies received during the entire preceding month as follows:

(a) The county general fund monies to the county general fund.

(b) The county transportation monies to the state treasurer to be apportioned among the counties for any purposes related to transportation, as determined by the board of supervisors, 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.

(c) The incorporated cities and towns monies to the incorporated cities and towns of the county in proportion to the population of each.

3. The deposit of the monies in the parity compensation fund pursuant to paragraphs 1 and 2 of this subsection shall not impact the distribution of vehicle license tax revenues to the state general fund and to cities, towns and counties pursuant to this section.

B. The director shall distribute monies collected by the director pursuant to sections 28-5804, 28-5805, 28-5806 and 28-5810, except monies deposited in the state general fund, on the first and fifteenth calendar day of each month as follows:

1. On the first calendar day, the director shall deposit, pursuant to sections 35-146 and 35-147, 37.61 per cent of all monies received from the first through the fifteenth calendar day of the preceding month in the highway user revenue fund.

2. On the fifteenth calendar day, the director shall deposit, pursuant to sections 35-146 and 35-147, 37.61 per cent of all monies received from the sixteenth through the last day of the preceding month in the highway user revenue fund and distribute or deposit the following amounts as a percentage of all monies received pursuant to sections 28-5804, 28-5805, 28-5806 and 28-5810 during the entire preceding month as follows:

(a) 20.45 per cent to the county general fund.

(b) 4.91 per cent to the state treasurer to be apportioned among the counties for any purposes related to transportation, as determined by the board of supervisors, 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.

(c) 20.45 per cent to the incorporated cities and towns of the county in proportion to the population of each.

(d) 1.64 per cent, pursuant to sections 35-146 and 35-147, in the state highway fund established by section 28-6991.

(e) 4.09 per cent in the state highway fund established by section 28-6991.

(f) 10.85 per cent, pursuant to sections 35-146 and 35-147, in the state general fund to aid school financial assistance.

C. For purposes of this section the population of a county, city or town shall be determined as provided by section 28-6532 or 42-5033.01. If an incorporated city or town has had no federal enumeration of population, 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.

D. On the fifteenth calendar day of each month, the director shall transfer to the state general fund from the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund pursuant to section 28-6538, subsection A, paragraph 1 the following amounts:

1. An amount equal to ninety per cent of the fees collected pursuant to section 28-4802, subsection A in the preceding month.

2. An amount equal to sixty per cent of the fees collected pursuant to section 28-4802, subsection B in the preceding month.

E. On the fifteenth calendar day of each month, the director shall transfer to the state general fund from the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund pursuant to section 28-6538, subsection A, paragraph 1 the difference between the actual amount of the vehicle license tax revenue collected as a result of registration of vehicles pursuant to section 28-2159 in the preceding month for a five-year registration period and the amount that would have been collected if those same vehicles had been registered for a two-year vehicle registration period.

§ 28-5809 Record examination

At any time the department of administration may examine the books and records of a county assessor or county treasurer pertaining to the collection and distribution of monies collected pursuant to section 28-5801.

§ 28-5810 Rental vehicle surcharge; reimbursement; definition

A. A person engaged in the business of renting motor vehicles without drivers shall collect, at the time the rental vehicle is rented, a five percent surcharge on each rental contract that is for a period of one hundred eighty days or less. A motor vehicle that is owned by a governmental entity is exempt from the surcharge prescribed by this subsection.

B. The surcharge:

1. Shall be computed on the total amount stated in the rental contract, less any taxes and fees imposed by title 42, chapter 5, article 1 and title 48, chapter 26, article 2.

2. Is not subject to the taxes imposed by title 42, chapter 5, article 1 and title 48, chapter 26, article 2.

3. Shall be noted on the rental contract and collected pursuant to the contract.

4. Shall be retained by the vehicle owner or person engaged in the business of renting rental vehicles.

5. Shall be used only for reimbursement of the amount of vehicle license tax imposed on the rental vehicle pursuant to section 28-5801, whether rented in this state or in another state or jurisdiction, and paid by the rental vehicle owner or person engaged in the business of renting rental vehicles at the time of vehicle registration.

C. On February 15 of each year, a person who is engaged in the business of renting rental vehicles and who collects a surcharge pursuant to this section shall file a report with the director stating:

1. The total amount of vehicle license tax paid the previous year.

2. The total amount of vehicle rental revenues for the previous year.

3. The amount by which the surcharge exceeds the amount of vehicle license tax.

D. Surcharges collected in excess of the amount of vehicle license tax paid shall be remitted, deposited and distributed pursuant to section 28-5808.

E. The report to the director required by this section shall be a sworn statement subject to penalty of perjury for misrepresenting the amount of vehicle license tax paid or the amount of surcharge collected.

F. The director shall adopt rules prescribing auditing procedures, records maintenance and other requirements necessary to administer this section.

G. To assist with administering this article, each year at the request of the director of the department of transportation, the department of revenue shall provide a report to the director of the department of transportation that includes, to the extent available, the following:

1. The names of all of the persons who are engaged in the business of renting rental vehicles and who hold a transaction privilege tax license pursuant to section 42-5071.

2. The address of the business.

3. The effective date of the license.

H. For the purposes of this section, "rental vehicle" means both of the following:

1. A passenger vehicle that is designed to transport fifteen or fewer passengers and that is rented without a driver.

2. A truck, trailer or semitrailer that has a gross vehicle weight of less than twenty-six thousand one pounds, that is rented without a driver and that is used in the transportation of personal property.

§ 28-5811 Vehicle license tax and registration fee exemption; United States armed forces members; refunds

A. Notwithstanding sections 28-2003 and 28-5801, an Arizona resident who is a member of the United States armed forces, including a member of a national guard or reserve unit, and who is deployed or has valid orders and is within thirty days of deployment in support of a worldwide contingency operation of the United States armed forces may register or renew the registration of a motor vehicle for one year without payment of registration fees and the vehicle license tax if the applicant presents evidence satisfactory to the department that the applicant meets the requirements of this section. The exemption from payment of registration fees and the vehicle license tax pursuant to this subsection may be taken only as follows:

1. A total of one time by the member, the member's spouse or the member's legally designated representative pursuant to subsection B of this section.

2. From the time of deployment until one year after the member is discharged from the military.

B. This section applies to:

1. Not more than two motor vehicles owned or leased by the member of the United States armed forces.

2. The surviving spouse or legally designated representative of a member of the United States armed forces who met the requirements prescribed in subsection A of this section and who died or who is listed as missing in action while serving on active military duty as provided in subsection A of this section.

C. Notwithstanding subsection A of this section, a person who would otherwise qualify for an exemption under subsection A of this section and whose registration fees and vehicle license tax for a motor vehicle were paid during the time the member of the United States armed forces was on active military duty as provided in subsection A of this section may apply for a refund of the registration fees and vehicle license taxes paid for the motor vehicle.

§ 28-5812 Incorrect distributions; adjustments

A. If the director determines that any of the amounts distributed pursuant to this article during the preceding twenty-four months are incorrect, the director shall adjust future monthly distributions to correct any overages or shortages as provided in this section. The director shall distribute vehicle license tax revenues in accordance with the adjusted distributions determined pursuant to this section.

B. An adjustment to the amount distributed shall not be initiated pursuant to this section more than twenty-four months after the original distribution.

C. The director shall adjust the distributions as follows:

1. In the case of overages, the director shall reduce the subsequent monthly distribution by the amount of the overage if the remaining distribution is at least seventy-five per cent of the amount that would otherwise have been distributed to the recipient. If the entire amount of the required adjustment cannot be made in a single month, the director shall repeat the procedure in subsequent months until the overage is corrected.

2. In the case of shortages, the director shall increase the subsequent monthly distribution by the amount of the shortage, if the total amount of all of the increases in a 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 the increases, the director shall proportionally reduce the increases.

Article 4 Motor Carrier Fee

§ 28-5851 Definitions

In this article, unless the context otherwise requires:

1. "Declared gross weight" has the same meaning prescribed in section 28-5431. If a declaration has not been made, declared gross weight means gross weight.

2. "Gross weight" has the same meaning prescribed in section 28-5431.

3. "Motor carrier" means a person who operates or causes to be operated a motor vehicle on a public highway.

4. "Motor vehicle" means a self-propelled motor driven vehicle that has a declared gross vehicle weight of more than twelve thousand pounds and that is subject to vehicle registration before lawful operation on the public highways in this state, excluding a motor vehicle that is exempt from gross weight fees pursuant to section 28-5432.

5. "Public highway" means any way or place in this state that is constructed or maintained with public monies and that is open to use by the public as a matter of right for the purpose of vehicular travel, including a highway under construction.

§ 28-5852 Motor carrier fee imposed

Except as otherwise provided in this article, there is imposed against each motor vehicle a motor carrier fee for the use of the public highways for highway and street purposes as provided in article IX, section 14, Constitution of Arizona.

§ 28-5853 Motor carrier fee exemptions

A. The fee imposed by section 28-5852 does not apply to either:

1. A school bus.

2. A motor vehicle that is used in the production of:

(a) Motion pictures, including films to be shown in theaters and on television.

(b) Industrial, training and educational films.

(c) Commercials for television.

(d) Video discs.

(e) Videotapes.

B. The department shall establish administrative procedures for determining which motor vehicles are eligible for the exemptions provided in this section.

§ 28-5854 Motor vehicle; motor carrier fee rate

A. The director shall determine the annual motor carrier fee owed for each motor vehicle registered in this state pursuant to the following table:

Vehicle weight Fee

12,001 - 14,000 $ 64.00

14,001 - 16,000 73.00

16,001 - 18,000 82.00

18,001 - 20,000 91.00

20,001 - 22,000 101.00

22,001 - 24,000 110.00

24,001 - 26,000 119.00

26,001 - 28,000 128.00

28,001 - 30,000 137.00

30,001 - 32,000 146.00

32,001 - 36,000 155.00

36,001 - 40,000 173.00

40,001 - 45,000 336.00

45,001 - 50,000 374.00

50,001 - 55,000 412.00

55,001 - 60,000 450.00

60,001 - 65,000 627.00

65,001 - 70,000 693.00

70,001 - 75,000 750.00

75,001 - 80,000 800.00

B. The motor carrier fee imposed by this section shall be added to the gross weight fee imposed by section 28-5433 and is payable at the time the motor vehicle is registered. The director shall consolidate the motor carrier fee imposed by this section with the gross weight fee imposed by section 28-5433 for the purpose of reducing administrative activities of motor carriers and the department. The director shall prepare appropriate forms to perform the consolidation.

§ 28-5855 Motor vehicle; reduced motor carrier fee; load restrictions; civil traffic violation

A. The director shall compute a reduced motor carrier fee that is seven-tenths of the full rate for a motor vehicle if:

1. The motor carrier has prequalified for the reduced motor carrier fee with the department before registration of each motor vehicle by applying for the reduced fee status.

2. Forty-five per cent or more of the mileage during the registration year is traveled without a load or with any of the following:

(a) Equipment that makes a motor vehicle ready for the road.

(b) Restraining equipment that makes the load safe.

(c) Equipment normally carried with the motor vehicle and used for the loading or unloading of the motor vehicle.

(d) Empty containers, empty returnable containers and empty boxes that are being returned to the point of shipment.

(e) Goods or commodities that are being returned to the point of shipment as a result of spoilage, damage, misfills, consignee rejection or consignee return.

B. A motor carrier who pays a reduced motor carrier fee pursuant to this section for a motor vehicle shall not operate that motor vehicle in violation of subsection A, paragraph 2. A violation of this subsection is a civil traffic violation.

§ 28-5856 Motor vehicle; reduced motor carrier fee; less than full load capacity; civil traffic violation

A. The director shall compute a reduced motor carrier fee that is seven-tenths of the full rate for a motor vehicle that weighs more than twenty-six thousand pounds if all of the following apply:

1. The motor carrier has done both of the following:

(a) Applied to the department for reduced fee status.

(b) Given the information required by the director to determine the eligibility of the fleet to be classified under this section.

2. The vehicle begins and ends a qualifying trip at the same point without having added to its load any items other than those listed in section 28-5855, subsection A, paragraph 2.

3. At the midway point in a qualifying trip, the load is less than forty-five per cent of the full load capacity of the vehicle. For purposes of this paragraph, "full load capacity" means the registered gross weight of the vehicle minus the weight of the vehicle without a load.

B. A motor carrier who pays a reduced motor carrier fee pursuant to this section for a motor vehicle shall not operate that motor vehicle in violation of subsection A, paragraph 2 or 3 of this section. A violation of this subsection is a civil traffic violation.

§ 28-5857 Motor vehicle; reduced motor carrier fee; agricultural products; civil traffic violation; definition

A. The director shall compute a reduced motor carrier fee that is seven-tenths of the full rate for a motor vehicle that is used only for transporting agricultural products if the motor carrier has done both of the following:

1. Applied to the department for reduced fee status.

2. Given the information required by the director to determine the eligibility of the vehicle to be classified under this section.

B. A motor carrier who pays a reduced motor carrier fee under this section may not apply for a reduced motor carrier fee provided for under section 28-5855 or 28-5867.

C. A motor carrier who pays a reduced motor carrier fee pursuant to this section for a motor vehicle shall not use that motor vehicle for transporting anything other than agricultural products. A violation of this subsection is a civil traffic violation.

D. For the purposes of this section, "agricultural products" means either:

1. Crops, livestock, machinery or supplies used or produced in farming operations.

2. Products, crops or livestock in their unmanufactured or unprocessed states.

§ 28-5858 Gross vehicle weight change

A. A motor carrier declaring an increased or decreased gross vehicle weight for a motor vehicle operated by the motor carrier pursuant to section 28-5435 establishes a new gross vehicle weight for motor carrier fee purposes.

B. The effective date of the new weight for motor carrier fee purposes is the first day of the next month immediately after the effective date of the registration change.

C. A reduced gross vehicle weight is not allowed for motor carrier fee purposes unless the motor carrier makes available to the director a copy of the new motor vehicle registration showing the new reduced weight.

§ 28-5859 Refunds

A. If the director determines that a motor carrier fee, penalty or interest has been overpaid, the director shall:

1. State that fact in the director's records.

2. Either credit the excess on any amount then due from the motor carrier or make a refund to the motor carrier or the motor carrier's successors, administrators, executors or assignees.

B. The director shall not allow a credit or refund after three years from the date of overpayment unless the motor carrier files with the director a written claim for credit or refund within the three years.

C. The motor carrier shall state the specified grounds on which a claim is based.

D. The director may pay the refund from any motor carrier fee receipts in the possession of the director before disposition of the receipts.

§ 28-5861 Motor carrier fee compliance requirement

Except as provided in section 28-5862, a person registering in this state or accorded proportional registration or registration reciprocity with this state for a motor vehicle shall comply with this article.

§ 28-5862 Trip permit

A nonresident motor carrier or nonresident person who operates a motor vehicle in this state may purchase a motor carrier fee trip permit for each trip in this state instead of paying the annual motor carrier fee prescribed by this article.

§ 28-5863 Single trip motor carrier fee trip permit; fee; expiration

A. There is imposed against each motor vehicle for a single trip motor carrier fee trip permit a motor carrier fee of either:

1. $12 for fifty miles or less to be traveled on the highways of this state.

2. $48 for more than fifty miles to be traveled on the highways of this state.

B. A single trip motor carrier fee 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 after 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 fee trip permits pursuant to this section in accordance with rules adopted by the director.

D. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected pursuant to this section at ports of entry on the border between this state and Mexico as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

§ 28-5864 Special thirty day motor carrier fee permit

A. The department may issue a special thirty day motor carrier fee permit for a 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 fee for a special thirty day permit is $96.

C. The director may authorize third parties to issue special thirty day motor carrier fee trip permits pursuant to this section in accordance with rules adopted by the director.

D. The director shall deposit, pursuant to sections 35-146 and 35-147, fees collected pursuant to this section at ports of entry on the border between this state and Mexico as follows:

1. Fifty-five percent in the state highway fund established by section 28-6991.

2. Forty-five percent in the Arizona highway patrol fund established by section 41-1752.

§ 28-5865 Appeals

A motor carrier who is aggrieved by an assessment, decision or order of the director pursuant to this article may request a hearing pursuant to section 28-5924.

§ 28-5867 Motor vehicle; reduced motor carrier fee; limited mileage; transporters; civil traffic violation

A. Notwithstanding section 28-5854, subsection A, the annual motor carrier fee for a motor vehicle that weighs more than twenty-six thousand pounds and that:

1. Is driven less than two thousand miles each year is eighty dollars.

2. Is driven two thousand or more miles but less than four thousand miles each year is one hundred sixty dollars.

3. Has a valid transporter license plate issued pursuant to chapter 10, article 9 of this title is eighty dollars.

B. In order to qualify for the reduced motor carrier fees prescribed in subsection A of this section, a motor carrier shall:

1. Apply to the department for reduced fee status.

2. Submit the information required by the director to determine the eligibility of the motor vehicle to be classified under this section.

C. A motor carrier that pays a reduced motor carrier fee under this section may not apply for a reduced motor carrier fee provided under section 28-5856 or 28-5857.

D. A motor vehicle that is subject to a reduced motor carrier fee pursuant to subsection A, paragraph 1 of this section shall not be driven two thousand or more miles each year.

E. A motor vehicle that is subject to a reduced motor carrier fee pursuant to subsection A, paragraph 2 of this section shall not be driven four thousand or more miles each year.

F. A violation of subsection D or E of this section is a civil traffic violation.

Article 5 Tax Administration

§ 28-5921 Violations; classification; civil penalty

A. A person is guilty of a class 4 felony if the person does any of the following:

1. Corruptly or by force or threats of force or injury either:

(a) Attempts to intimidate, impede or injure an employee of the department acting in an official capacity.

(b) Obstructs, impedes or attempts to obstruct or impede the administration of this chapter.

2. Attempts by means of bribery, misrepresentation, intimidation or force or threats of force to obstruct, delay or prevent the communication of information or testimony relating to a violation of this chapter to an employee or officer of the department.

3. Knowingly injures another person or another person's property on account of the person giving, personally or by another person, any information or testimony relating to a violation of this chapter to an employee or officer of the department.

4. With the intent to evade motor fuel taxes, collects or attempts to collect motor fuel taxes under this chapter and fails to remit the taxes to the department.

B. A person is guilty of a class 5 felony if the person does any of the following:

1. Knowingly fails to pay any tax administered pursuant to this article due or believed to be due by the taxpayer with intent to evade the tax.

2. Knowingly prepares, presents or aids, procures or advises in preparing or presenting any return, affidavit, claim or other document that is fraudulent or is false as to any material matter, whether or not the falsity or fraud is with the knowledge or consent of the taxpayer authorized or required to present the return, affidavit, claim or other document.

3. Simulates or falsely or fraudulently executes or signs any license or other required document, or causes the license or other document to be falsely or fraudulently executed or advises or aids in such execution, with the intent to conceal or cover up a material fact relating to a tax administered pursuant to this article.

4. Knowingly fails to file a return or supply information, or falsifies or conceals a material fact, document or record, makes a false, fictitious or fraudulent statement or representation or makes or uses a false writing or document knowing it to contain a false, fictitious or fraudulent statement or entry, with intent that the department rely on the false, fictitious or fraudulent statement or entry in determining tax liability under this chapter.

5. Knowingly transports or possesses motor fuel with the intent to evade payment of motor fuel taxes.

C. Unless another classification is specifically prescribed in this chapter, a person is guilty of a class 1 misdemeanor who either:

1. Knowingly refuses or fails to make a statement, report or return required by this chapter.

2. Knowingly makes a false statement in a report to the director or in connection with an application for refund of a tax.

3. Knowingly collects or causes to be repaid to the person or to another person, either directly or indirectly, a refund of the tax without being entitled to the refund.

4. Engages in business in this state as a supplier without being the holder of a license to engage in the business.

5. Sells motor fuel the person purchased from another person other than a duly licensed supplier on which the motor fuel tax has not been paid.

D. Each day or part of a day during which a person engages in business as a supplier without being the holder of a license is a separate offense within the meaning of this section.

E. In addition to any other penalties prescribed by law, if part of a deficiency is due to fraud with the intent to evade a tax, fifty per cent of the total amount of the tax shall be assessed, collected and paid as if it were a deficiency.

F. If a taxpayer files what purports to be a return of any tax administered pursuant to this article that is frivolous or that is filed with the intent to impede the administration of this chapter, the taxpayer shall pay a civil penalty of five hundred dollars.

§ 28-5922 Enforcement powers

A. In the enforcement of this chapter, the director may:

1. Hold hearings.

2. Take testimony.

3. Issue subpoenas and compel attendance of witnesses for the purpose of taking testimony.

4. Conduct investigations the director deems necessary.

5. Prescribe the forms on which reports are made to the director and other forms and information the director deems necessary.

B. If a witness fails to appear at the time and place designated in the subpoena by the director, fails to answer questions relating to the subject matter of the inquiry before the director or fails to produce a document directed by the director to be produced, by an affidavit setting forth the facts, the director may apply to the superior court in the county where the hearing is held, and the court shall proceed as though the failure or refusal had occurred in an action pending before it.

§ 28-5923 Collection

A. In an action for the collection of motor fuel taxes or interest or penalties imposed in connection with the taxes, an assessment by the director of the amount of the tax due or interest or penalties due this state is prima facie evidence of the claim of the state, and the burden of proof is on the person to show that the assessment was incorrect and contrary to law.

B. The attorney general shall prosecute an action to collect any delinquent tax or penalty.

§ 28-5924 Hearing; rehearing

A. A person aggrieved by an assessment, decision or order of the director under this chapter may make a written request for a hearing in the office of the director within thirty days after service of the notice to show cause why the assessment, decision or order is in error or to present any other facts or testimony that is relevant. A written request for a hearing shall include the reasons why the assessment, decision or order of the director is in error. Only the reasons set forth in the request for hearing may be raised at the hearing. The hearing may be continued from time to time.

B. If the person does not request a hearing within thirty days, the assessment, decision or order is final.

C. After consideration of the evidence presented at the hearing, the director shall serve notice in writing to the person of the director's finding and order. Within ten days after service of the notice of the finding and order of the hearing, the person may request in writing a rehearing on the matter. The director may grant a request for a rehearing based on rules adopted by the director relating to conditions for rehearings.

D. If the person does not request a rehearing or if the director denies the request for a rehearing, the assessment, decision or order is final ten days after the notice is served.

§ 28-5925 Payment; distribution

A. The supplier, as shown in the records of the terminal operator, who removes the taxable gallons shall precollect and remit on behalf of consumers and users to the department the taxes that are imposed by sections 28-5606 and 28-8344 and that are measured by the invoiced gallons of motor fuel removed by a licensed supplier from a terminal or refinery in this state other than a bulk transfer.

B. The supplier and each reseller shall list the amount of tax as a separate line item on all invoices or billings or as a separate billing.

C. The motor fuel tax that is accrued in any calendar month shall be paid on or before the twenty-seventh day of the next succeeding calendar month to the director.

D. A supplier shall remit any late taxes remitted to the supplier by an eligible purchaser and shall notify the department in a timely manner of any late remittances if that supplier has previously given notice to the department of an uncollectible tax amount pursuant to section 28-5639, subsection B.

E. On payment, the director shall promptly:

1. Deposit motor fuel tax monies as prescribed in sections 28-5926 and 28-5927.

2. Deposit, pursuant to sections 35-146 and 35-147, all remaining motor fuel tax monies in the Arizona highway user revenue fund or the state aviation fund as determined from the reports filed pursuant to section 28-5618.

F. The director shall deduct all exemptions and refunds before depositing the monies.

§ 28-5926 Transfer; state lake improvement fund; administrative expenses

A. Except as provided in subsection B of this section, on a monthly basis, the director shall deposit, pursuant to sections 35-146 and 35-147, one and six-tenths of one per cent of motor vehicle fuel tax monies collected pursuant to section 28-5606 in the state lake improvement fund established by section 5-382.

B. The director shall retain one per cent of the monies specified in subsection A of this section to defray administrative expenses.

§ 28-5927 Transfer; off-highway vehicle recreation fund

Fifty-five one hundredths of one per cent of the total taxes on motor vehicle fuel shall be transferred from the monies collected pursuant to section 28-5606 to the off-highway vehicle recreation fund established by section 28-1176 on a monthly basis.

§ 28-5928 Legal remedies

A. An injunction, a writ of mandamus or any other legal or equitable process shall not issue in an action or proceeding in any court against this state or against any officer of this state to prevent or enjoin the collection of any tax, fee, penalty or interest required by this chapter to be collected.

B. A person against whom an assessment under this chapter has become final pursuant to section 28-5924 may bring an action against the director in the Arizona tax court for recovery of the amount paid if the person:

1. Pays the amount stating it is paid under protest.

2. Verifies and states the grounds for objection to the legality of the payment.

3. Pays the amount within ninety days after the assessment becomes final.

C. The person shall institute the action provided in subsection B of this section within thirty days after payment under protest. Failure to bring an action within thirty days constitutes a waiver of all demands against this state on account of the protested payment. A court shall not consider a ground for illegality other than that stated in the protest filed at the time of payment.

D. If judgment is rendered for the plaintiff, the director shall both:

1. Credit the amount of the judgment on any tax, fee, penalty, interest or other amount due from the plaintiff under this chapter.

2. Refund the balance to the plaintiff.

E. A court shall not render judgment in favor of the plaintiff in an action brought against the director to recover any amount paid under this chapter if an action is brought by or in the name of an assignee of the person who paid the amount.

F. A person aggrieved by a decision or order of the director issued pursuant to section 28-5924, except for an assessment for taxes, fees, penalties or interest, may seek judicial review of the decision or order in the Arizona tax court pursuant to title 12, chapter 7, article 6.

§ 28-5929 Cumulative remedies

The remedies of this chapter are cumulative. An action taken by the director shall not be construed to be an election on the part of the state or its officers to pursue any remedy to the exclusion of any other remedy provided in this chapter.

§ 28-5930 Electronic report filing; rules; payment availability

A. The director may require by rule that persons who are required to file reports pursuant to this chapter file those reports by electronic means.

B. The rules shall include at least the following:

1. Data elements.

2. The format for the data elements.

3. The method and medium of transmission.

4. Provisions for waiver.

C. All monies that accompany electronic reports shall be immediately available to this state on the date of transfer as provided in section 28-374.

§ 28-5931 Definitions

In this article, unless the context otherwise requires:

1. "Confidential information":

(a) Includes:

(i) Reports and other statements filed with the director concerning the taxes, fees, penalties and interest imposed by this chapter.

(ii) Applications for a license required under this chapter.

(iii) Information discovered pursuant to this chapter concerning a person's business affairs, operation, taxes, fees and receipts by the director whether or not by compulsory process.

(iv) Information relating to taxes obtained from the department of revenue.

(v) Information supplied at the special request of the director by a taxpayer that the taxpayer requests to be held in confidence.

(b) Does not include information that is otherwise a public record.

2. "Levy" includes the power of distraint and seizure by any means.

3. "Tax" means any tax, fee, penalty or interest imposed by this title.

4. "Tax administration" includes the levy and assessment, collection, investigation, litigation, statistical gathering, enforcement, policymaking and management functions of the director in connection with this chapter.

5. "Taxpayer" means a person liable for a tax.

§ 28-5932 Jeopardy assessment; definition

A. If a taxpayer has not been licensed or has failed to make a tax report as required by this chapter and the director believes that the collection of a tax, fee assessment or deficiency under this chapter will be jeopardized by delay, whether or not the time otherwise prescribed for making a return and paying the tax has expired and notwithstanding any other provision of this chapter:

1. The director shall immediately assess the tax, with interest, additional amounts and additions to the tax as provided by law.

2. The tax, additions to the tax and interest are then immediately due and payable.

3. The director shall immediately issue a notice and demand for their payment.

B. The belief of the director is for all purposes presumptive evidence that the assessment or collection was in jeopardy. A certificate of mailing notice is presumptive evidence that notice was issued.

C. The taxpayer may stay collection and prevent the assessment from becoming final by filing both of the following within ten days after the date of the assessment:

1. A protest to the assessment.

2. A bond or any other security in amounts that the director deems necessary but not exceeding the amount of the assessment.

D. On filing a protest and posting bond as required, the assessment shall be reviewed as provided for other assessments made under this article. If the taxpayer fails to protest or post the required bond, the assessment is final.

E. For the purposes of this section, "reports" includes forms prescribed by the director and supporting schedules, attachments, lists and other documents.

§ 28-5933 Contingent fee collection contracts

A. In the administration and enforcement of this chapter, the department may enter into contingent fee contracts to collect delinquent taxes, penalties and interest due under this chapter, consistent with the requirements of sections 28-5935 through 28-5938.

B. The department shall not contract for the collection of delinquent taxes that exceed one thousand dollars for an individual, corporation or partnership.

§ 28-5934 Abatement of uncollectible taxes, penalties and fees

A. With the approval of the attorney general, the department may abate all or part of and purge from its records any uncollectible tax, penalty or administrative fee imposed by this chapter if the director determines that administrative costs for collection exceed the amount owed to the department.

B. The department shall abate the full amount of any penalty that is assessed in conjunction with a tax or fee imposed under this chapter and that is directly attributable to erroneous written advice furnished to a person by an employee of the department acting in the employee's official capacity if the person reasonably relied on the written advice, unless the penalty results from the failure of the person to provide adequate or accurate information.

C. The director may abate all or part of any penalty assessed in conjunction with a tax or fee imposed under this chapter if the director believes that the failure of the person to comply with the applicable law was due to reasonable cause and not wilful neglect. For purposes of this subsection, "reasonable cause" includes a reasonable basis for the person to believe that the tax or fee did not apply to the person.

§ 28-5935 Confidential information; disclosure prohibited

A. A person, including a former employee or agent of the department or a person who previously had an administrative duty for the department, who has received confidential information while an employee or agent of the department, while performing an administrative duty for the department or pursuant to an exception under section 28-5936, subsection A, paragraph 2 shall not disclose the information except as provided in this article.

B. Confidential information shall not be disclosed if either:

1. The director determines that disclosure would seriously impair a civil or criminal tax investigation.

2. The disclosure would be contrary to the United States internal revenue code section 6103(d), 6103(p)(8), 7213 or 7217.

§ 28-5936 Confidential information; disclosure allowed

A. A person may disclose confidential information as follows:

1. Confidential information relating to:

(a) A taxpayer may be disclosed to the taxpayer, the taxpayer's successor in interest or a designee of the taxpayer who is authorized in writing by the taxpayer.

(b) A corporate taxpayer may be disclosed to a principal officer of the corporation.

(c) A partnership may be disclosed to a partner of the partnership, excluding disclosure of confidential information of a particular partner unless otherwise authorized.

(d) An estate may be disclosed to the personal representative of the estate and to an heir, next of kin or beneficiary under the will of the decedent if the director finds that the heir, next of kin or beneficiary has a material interest that will be affected by the confidential information.

(e) A trust may be disclosed to the trustee or trustees, jointly or separately, and to the grantor or any beneficiary of the trust if the director finds that the grantor or beneficiary has a material interest that will be affected by the confidential information.

(f) A taxpayer may be disclosed if the taxpayer has waived any rights to confidentiality either in writing or on the record in any administrative or judicial proceeding.

2. Confidential information may be disclosed to:

(a) An employee of the department whose official duties involve tax administration.

(b) The office of the attorney general or the office of a county attorney authorized in writing by the attorney general solely for its use in preparation for, or an investigation that may result in, a proceeding involving tax administration before the director, department or other agency or board of this state or before a grand jury or a state or federal court.

(c) Other state tax officials of this state whose official duties require the disclosure for proper tax administration purposes if the information is sought in connection with any investigation or other proceeding conducted by the tax official, except that a disclosure is limited to information of a taxpayer who is being investigated or who is a party to a proceeding conducted by the tax official.

(d) The United States internal revenue service or state tax officials of other states pursuant to statute and a written agreement between the director and the internal revenue service or other state, if the internal revenue service or the other state grants substantially similar privileges to the director for the type of information being sought.

(e) The auditor general if in connection with an audit of the department subject to the restrictions in section 28-5935, subsection B.

(f) Any person to the extent necessary for effective tax administration in connection with the processing, storage, transmission and reproduction of the information and the programming, maintenance, repair, testing and procurement of equipment for purposes of tax administration.

3. Confidential information may be disclosed in a state or federal judicial or administrative proceeding pertaining to tax administration if:

(a) The taxpayer is a party to the proceeding.

(b) The treatment of an item reflected in the information is directly related to the resolution of an issue in the proceeding.

(c) The information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding.

4. Identity information may be disclosed for purposes of notifying persons entitled to tax refunds if the director is unable to locate the persons after reasonable effort.

5. If necessary to effect collection of a delinquent tax, penalties or interest, the outstanding obligation and information obtained in the collection investigation may be disclosed.

6. The director may disclose statistical information gathered from confidential information if the disclosure does not include confidential information attributable to any one taxpayer.

7. Confidential information may be disclosed to law enforcement agencies for law enforcement purposes.

B. Except as provided in section 28-5935, subsection B, a court may order the director to disclose confidential information pertaining to a party to an action. The court shall make an order only on a showing of good cause and that the party seeking the information has made demand on the taxpayer for the information.

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 section 28-5620. This subsection does not mean that the information or evidence is privileged if it is 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 article 1 of this chapter.

D. The department of transportation shall provide information to the weights and measures services division of the Arizona department of agriculture to determine compliance with title 3, chapter 19, article 7. A gasoline dispensing site shall provide the department of transportation with information the director of the department of transportation requests and in the form that the director of the department of transportation determines is necessary for the purposes of this subsection.

E. This article does not prevent the director from disclosing to a person any aggregate statistical information gathered from confidential information regarding the distribution of gasoline sales by a distributor in each of the several counties of this state. The director shall provide this gasoline sales distribution information to a person pursuant to section 39-121.

§ 28-5937 Fee

If the director is required or permitted to disclose confidential information, the director may charge the person or agency requesting the information a fee for the reasonable cost of disclosure.

§ 28-5938 Violation; classification

A. A disclosure of confidential information in violation of section 28-5935, 28-5936 or 28-5937 is a class 1 misdemeanor.

B. A knowing disclosure of confidential information is a class 6 felony.

§ 28-5939 Lien

A. If a tax, fee, interest or penalty that the director or registering officer is required to collect is not paid by a taxpayer when due, the unpaid amount is a lien from the date the amount became due on all property and rights to property, whether real or personal, belonging to the taxpayer or acquired by the taxpayer after the amount became due.

B. The director may accept voluntary liens on real or personal property pledged by a person as security for a tax that the director is required to collect and that is not paid by a taxpayer when due. A voluntary lien shall be perfected and treated in the same manner as any other lien under this article.

§ 28-5940 Perfection of lien

A. The director may perfect the lien imposed by section 28-5939 against the taxpayer's real property located in any county by recording a notice of lien in the form prescribed by subsection D of this section in the office of the county recorder.

B. The director may perfect the lien imposed by section 28-5939 against the taxpayer's personal property or rights to personal property located in this state by recording a notice of lien in the form prescribed by subsection D of this section in the office of the secretary of state.

C. From the time of perfecting the lien imposed by section 28-5939 in the manner provided by this section, the lien, with accruing interest, is superior to all other liens and encumbrances perfected thereafter.

D. A notice of lien recorded under this section shall specify the nature of the tax, amount of tax, interest and penalty due, taxable periods for which the amounts are due and the name and last known address of the taxpayer liable for the amounts.

§ 28-5941 Release of lien

A. At any time, the director may release all or any portion of the property subject to the lien from the lien or subordinate the lien to other liens if the director determines that the taxes are sufficiently secured by a lien on other property of the taxpayer or that the release or subordination of the lien will not endanger or jeopardize the collection of the taxes. A certificate by the director to the effect that any property has been released from the lien or that the lien has been subordinated to other liens is conclusive evidence that the property has been released or that the lien has been subordinated as provided in the certificate.

B. If any lien imposed by section 28-5939 has been satisfied and a notice of the lien had been recorded pursuant to section 28-5940, the director shall issue a release of the lien to the person against whom the lien was claimed. The director shall record the lien release in any county where the original lien was recorded and in the office of the secretary of state, if applicable.

§ 28-5942 Priority of tax claim

A. The amount required to be collected by the director with interest and penalties shall be satisfied first in any of the following cases:

1. If the person is insolvent.

2. If the person makes a voluntary assignment of the person's assets.

3. If the estate of the person in the hands of executors, administrators or heirs is insufficient to pay all debts due from the deceased.

4. If the estate and effects of an absconding, concealed or absent person required to pay any amount under this title are levied on by process of law.

B. This section does not give this state a preference over any recorded lien that was recorded before the time the director recorded a notice of lien pursuant to section 28-5940.

§ 28-5943 Transfer of vehicle subject to lien

A. If ownership of a motor vehicle that is subject to the lien provided by section 28-5939 is transferred by operation of law or otherwise, a certificate of registration or certificate of title with respect to that vehicle shall not be issued to the transferee or any other person until the director certifies that the lien has been removed.

B. A license under chapter 7 of this title with respect to a motor vehicle that becomes subject to the lien provided for by section 28-5939 shall not be issued or transferred until the director certifies that the lien has been removed.

§ 28-5944 Levy and distraint

If a person liable to pay any tax neglects or refuses to pay the tax, the director may collect the tax and other amounts sufficient to cover the expenses of the levy by levy on all property and rights to property belonging to the person, except property that is exempt under section 28-5949, or on which there is a lien as provided in this article for the payment of the tax.

§ 28-5945 Levy; salary; wages

A. Levy may be made on the accrued salary or wages of any officer, employee or elected official of this state or its political subdivisions or any agency or instrumentality of this state or its political subdivisions by serving a notice of levy on the department of administration in the case of state wages or salaries and on the chief disbursing officer of political subdivisions in the case of wages or salaries paid by political subdivisions.

B. Concerning a levy on salary or wages payable to or received by a taxpayer:

1. The effect is continuous from the date the levy is first made until the liability out of which the levy arose is satisfied or becomes unenforceable.

2. The director shall promptly:

(a) Release the levy when the liability out of which the levy arose is satisfied or becomes unenforceable.

(b) Notify the person on whom the levy was made that the levy has been released.

§ 28-5946 Levy; property; seizure

A. Except as otherwise provided in section 28-5945, subsection B, a levy extends only to property possessed and obligations existing at the time of the levy.

B. In any case in which the director may levy on property or rights to property, the director may seize and sell the property or rights to property, whether real or personal, tangible or intangible.

C. If any property or right to property on which a levy has been made under section 28-5945, subsection A is not sufficient to satisfy the claim of the director for which the levy is made, the director may proceed as often as is necessary to levy in like manner on any other property liable to levy of the person against whom the claim exists, until the amount due, together with all expenses, is fully paid.

§ 28-5947 Property surrender; definition

A. Except as otherwise provided in subsection B of this section, on demand of the director, a person in possession of or obligated with respect to property or rights to property subject to levy on which a levy has been made shall surrender the property or rights to property or discharge the obligation to the director, except the part of the property or rights to property as is, at the time of the demand, subject to an attachment or execution under any judicial process.

B. A levy on an organization with respect to a life insurance or endowment contract issued by the organization, without necessity for the surrender of the contract document, is a demand by the director for payment of the amount described in this subsection and the exercise of the right of the person against whom the tax is assessed to the advance of the amount. The organization shall pay the amount within ninety days after service of the notice of levy. The notice shall include a certification by the director that a copy of the notice has been mailed to the person against whom the tax is assessed at the person's last known address. The levy is deemed to be satisfied if the organization pays to the director the amount that the person against whom the tax is assessed could have had advanced to the person by the organization on the date prescribed in this subsection for the satisfaction of the levy plus the amount of any advance, including contractual interest, made to the person on or after the date the organization had actual notice or knowledge of the existence of the lien with respect to which the levy is made, other than an advance, including contractual interest, made automatically to maintain the contract in force under an agreement entered into before the organization has the notice or knowledge. The satisfaction of a levy under this subsection is without prejudice to any civil action for the enforcement of a lien imposed by this article with respect to the contract.

C. On demand of the director, a person who fails or refuses to surrender any property or rights to property that are subject to levy is personally liable and the person's estate is liable to this state in an amount that is equal to the value of the property or rights to property that are not surrendered, but not exceeding the amount of taxes for the collection of which the levy has been made, with costs and interest on the amount at an annual rate of twelve per cent from the date of the levy or, in the case of a levy described in section 28-5945, subsection B, from the date the person would otherwise have been obligated to pay the amount to the taxpayer. Any amount, other than costs, recovered under this subsection shall be credited against the tax liability for the collection of which the levy was made.

D. A person in possession of or obligated with respect to property or rights to property subject to levy on which a levy has been made who, on demand by the director, surrenders the property or rights to property or discharges the obligation to the director or who pays a liability under subsection C of this section is discharged from any obligation or liability to the delinquent taxpayer with respect to the property or rights to property arising from the surrender or payment. In the case of a levy that is satisfied pursuant to subsection B of this section, the organization is also discharged from any obligation or liability to a beneficiary arising from such surrender or payment.

E. As used in this section, "person" includes an officer or employee of a corporation, an officer, employee or elected official of this state or its political subdivisions, any agency or instrumentality of this state or its political subdivisions, or a member or employee of a partnership who as such officer, employee, elected official or member is under a duty to surrender the property or rights to property, or to discharge the obligation.

§ 28-5948 Production of books

If a levy has been made or is about to be made on any property or any right to property, a person with custody or control of books or records containing evidence or statements relating to the property or right to property subject to levy shall exhibit the books or records to the director on demand of the director.

§ 28-5949 Levy; exempt property

A. Notwithstanding any other law, property or rights to property are not exempt from the levy provided in this article unless the property is specifically exempt pursuant to subsection B of this section.

B. The following property is exempt from levy:

1. Wearing apparel and school books that are necessary for the taxpayer or members of the taxpayer's family.

2. Fuel, provisions, furniture, personal effects, arms for personal use, livestock and poultry of the taxpayer that are not in excess of a fair market value of five thousand dollars.

3. Books and tools that are necessary for the trade, business or profession of the taxpayer and that are not in excess of a fair market value of two thousand five hundred dollars.

4. Mail that is addressed to any person and that has not been delivered to the addressee.

5. If the taxpayer is required by judgment of a court of competent jurisdiction that was entered before the date of the levy to contribute to the support of the taxpayer's minor children, salary, wages or other income of the taxpayer that is necessary to comply with the judgment.

6. An amount during any period that is payable to or received by an individual as wages or salary for personal services or as income derived from other sources to the extent that the total of the amount payable to or received by the taxpayer during the period does not exceed the applicable exempt amount determined as follows:

(a) In the case of an individual who is paid or receives all of the individual's wages, salary and other income on a weekly basis, the amount of the compensation received by the individual during any week that is exempt from levy are the amounts required by law to be withheld by the payor, one hundred fifty dollars plus twenty-five dollars for each individual who is specified in a written statement that is submitted to the person on whom notice of levy is served and that is verified in the manner that the director prescribes by rule and:

(i) Over one-half of whose support for the payroll period was received from the taxpayer.

(ii) Who is the spouse of the taxpayer or who bears a relationship to the taxpayer specified in section 43-1001, paragraph 3.

(iii) Who is not a minor child of the taxpayer with respect to whom amounts are exempt from levy under paragraph 5 for the payroll period.

(b) In the case of any individual who is not described in subdivision (a), the amount of the wages, salary and other income that is payable to or received by the individual during any applicable pay period or other fiscal period as determined by rules prescribed by the director and that is exempt from levy under this paragraph is an amount that is determined by rules and that as nearly as possible will result in the same total exemption from levy for the individual over a period of time as the individual would have under subdivision (a) if the individual were paid or received the wages, salary and other income on a regular weekly basis during that period of time.

7. A homestead exempt from attachment, execution and forced sale to the extent exempt pursuant to title 33, chapter 8.

§ 28-5950 Appraisal

A. The officer seizing property described in section 28-5949 shall appraise and set aside to the owner the amount of the property declared to be exempt.

B. If the taxpayer objects at the time of the seizure to the valuation fixed by the officer making the seizure, the director shall have three disinterested individuals make the valuation.

§ 28-5951 Seized property; notice and sale

A. Except as otherwise provided in this section, the notice of sale and the sale of property seized by the director under this article shall be conducted in the manner and the time provided in title 12, chapter 9, article 7, relating to the sale of property under execution.

B. Real property may be redeemed in the manner provided by title 12, chapter 8, article 11.

C. The director shall notify the taxpayer of the date, time and location of the sale of the taxpayer's property or right to property with a description of the property or right to property to be sold. The notice shall be given in person, left at the dwelling or usual place of business of the taxpayer or sent by first class mail to the taxpayer's last known address, not less than ten days before the day of the sale. If the property or right to property is perishable, the director shall give notice of the sale to the taxpayer in the manner and within the time limits as are reasonable considering the character and condition of the property.

§ 28-5952 Levy release; property return

A. The director may release the levy on all or part of the property or rights to property levied on if the director determines the release will facilitate the collection of the liability. The release does not prevent a subsequent levy.

B. If the director determines that property has been wrongfully levied on, the director may return:

1. The specific property levied on.

2. An amount of money equal to the amount of money levied on.

3. An amount of money equal to the amount of money received by this state from a sale of the property.

C. Property may be returned at any time. An amount equal to the amount of money levied on or received from the sale may be returned at any time before the expiration of nine months from the date of the levy.

Article 6 Underground Storage Tank Tax

§ 28-6001 Underground storage tank tax; payments

A. A person who is responsible for collecting 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.

B. A person who is responsible for collecting the use fuel tax imposed by section 28-5606 on diesel, including dyed diesel as defined in section 28-5601, shall register with the department of transportation on a form prescribed by the department of transportation 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 any liquid that is commonly or commercially known, offered for sale or used as a fuel in diesel engines.

§ 28-6002 Collection agent

For the purposes of section 28-6001, the director of the department of transportation 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.

§ 28-6003 Payment procedure; return form

A. A person shall:

1. Make the payments to the director of the department of transportation 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.

§ 28-6004 Payment deduction

A person who is required to make the periodic payments required by section 28-6001 may deduct from the required periodic payments an amount equal to the product obtained by multiplying the tax rate specified in section 49-1031, subsection A by the number of gallons of fuel that the person certifies have been delivered to a tank that is not subject to the underground storage tank tax imposed by title 49, chapter 6, article 2 and from which no further bulk distribution of the fuel will be made.

§ 28-6005 Refund; credit

If a person required to make payments under this article is the assignee of a refund claim assigned pursuant to section 49-1031, the refund shall be given by means of a credit taken on the return required to be filed under this article.

§ 28-6006 Administration same as for motor vehicle fuel tax

A. Section 28-5607, subsection B, sections 28-5602, 28-5603, 28-5619, 28-5620, 28-5621 and 28-5622 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 motor fuel taxes.

B. Penalties, late filing fees and interest collected by the department of transportation shall be remitted to the director of the department of environmental quality in the same manner as the tax collected pursuant to this article.

§ 28-6007 Underground storage tank tax clearing account

A. A special underground storage tank tax clearing account is established consisting of monies received by the director under this article.

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

§ 28-6008 Distribution; administration costs

A. By the twentieth day of each month, the director of the department of transportation 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 shall withhold an amount equal to the costs incurred by the department of transportation 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 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.

Chapter 17 Transportation Excise Tax Distribution

Article 1 Transportation Excise Tax Distribution in Highly Populated Counties

§ 28-6301 Definitions

In this article, unless the context otherwise requires:

1. "Air quality measures" means paving unpaved roads and procuring street sweepers to help meet the requirements of the clean air act as defined in section 49-401.01.

2. "Bond-related expenses" means:

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

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

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

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

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

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

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

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

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

8. "Intersection improvements" means projects that are designed to decrease vehicle congestion, lower travel times or improve safety.

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

10. "Nonmotorized mobility infrastructure" means the improvement of safety, accessibility or connectivity through sidewalks, crosswalks, curb ramps, elements that are required by the Americans with disabilities act of 1990 (42 United States Code sections 12101 through 12213) or other components adjacent to streets or roadways for vulnerable road users as defined in 23 United States Code section 148(a)(15).

11. "Performance-based" means regional planning agency processes and practices that are consistent with federal law, including:

(a) Requirements prescribed in 23 United States Code section 134 and 49 United States Code section 5303.

(b) System performance factors set forth in section 28-505, as applicable.

12. "Plan" has the same meaning prescribed in section 28-6351.

13. "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.

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

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

16. "Regional transportation infrastructure" means transportation projects that are selected through a performance-based process for nonmotorized mobility infrastructure, emerging technologies and air quality measures.

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

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

§ 28-6302 Transportation excise tax distribution; counties with three million or more persons; regional area road fund

A. In a county with a population of three million or more persons, the officer collecting transportation excise tax monies pursuant to section 42-6105 or 42-6105.01 that are designated for deposit in the regional area road fund shall immediately transfer the monies to the state treasurer. The state treasurer shall deposit the monies in a fund designated for the county as the regional area road fund. The state treasurer shall hold monies in the regional area road fund as a trustee for the county.

B. Except as provided in this article, the county in which the transportation excise taxes are levied has the beneficial interest in the regional area road fund. This state has no beneficial interest in the regional area road fund except as an obligee for reimbursement of state monies that are advanced as salaries or expenses by this state or the department and that are to be repaid by the regional area road fund.

C. Monies and investments within the regional area road fund may be used and spent only as provided in this chapter. An appropriation of any nature shall not be required before the expenditure of monies from the regional area road fund. Monies in the bond proceeds account or construction account of a regional area road fund may be obligated for payment in future years for the purpose of right-of-way acquisition subject to the limitations prescribed in sections 28-7001 and 28-7002, section 42-6105, subsection D, paragraphs 1 and 2 and section 42-6105.01, subsection D, paragraphs 1 and 2. The state treasurer shall make payments from the regional area road fund by check, and a warrant or voucher is not necessary. Subject to the powers granted to the board in chapter 21, article 2 of this title, the director shall administer monies deposited in the regional area road fund.

§ 28-6303 Regional area road fund; separate accounts

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

B. The state treasurer shall:

1. Account separately for each account.

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

3. Before any bonds are issued, deposit transportation excise tax revenues transferred to the state treasurer in the construction account. These revenues shall be expended as provided in this article.

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

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

C. The state treasurer may:

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

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

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

1. Freeways and other routes in the state highway system.

2. Major arterial streets, intersection improvements and regional transportation infrastructure identified in the plan, including capital expense and implementation studies.

E. The department shall separately account for the uses of transportation excise tax revenues deposited in the bond account and the construction account in order to identify how the transportation excise tax revenues are used pursuant to section 42-6105.01, subsection D, paragraphs 1 and 2 for:

1. Freeways and other routes in the state highway system.

2. Major arterial streets, intersection improvements and regional transportation infrastructure identified in the plan, including capital expense and implementation studies.

§ 28-6304 Bond account; expenditures

A. The state treasurer shall:

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

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

B. Monies in the bond account may be used:

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

2. For funding reserves for the payment of the bonds.

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

C. Monies in the bond proceeds account may be obligated or spent as directed by the board, according to the plan, for the:

1. Payment of all bond-related expenses.

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

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

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

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

6. Payment of principal and interest on the bonds.

§ 28-6305 Construction account; expenditures; construction contracts

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

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

1. In each fiscal year, divide and equally distribute $5,000,000 to:

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

(b) The regional planning agency in that county for planning and administering the plan approved pursuant to section 28-6308. The state treasurer shall distribute monies under this subdivision through the department on or before June 30 of each year.

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

C. The monies distributed under subsection B of this section shall only be spent for planning and administering the plan approved pursuant to section 28-6308 and the costs incurred by the auditor general relating to performance audits under section 28-6313. Before the beginning of each fiscal year, the respective governing bodies of the members of the regional planning agency and the board of directors of the regional public transportation authority shall explicitly identify and approve in budgets the monies to be spent under subsection B of this section for the purposes allowed under this subsection. These expenditures are subject to the annual audit of the governing bodies' financial transactions.

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

§ 28-6306 Account expenditures; elections

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

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

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

2. For costs specifically incurred with respect to a ballot issue relating to a county transportation excise tax in a county with a population of three million or more persons.

§ 28-6308 Regional planning agency transportation policy committee

A. The regional planning agency in the county shall establish a transportation policy committee consisting of the following members:

1. Eighteen members of the regional planning agency, including one member of the state transportation board who represents the county, one member of the county board of supervisors and one member who represents Indian communities in the county.

2. Six members who represent regionwide business interests, one of whom must represent transit interests, one of whom must represent freight interests and one of whom must represent construction interests. The president of the senate and the speaker of the house of representatives shall each appoint three members to the committee pursuant to this paragraph. Members who are appointed pursuant to this paragraph serve six-year terms. The chairperson of the regional planning agency may submit names to the president of the senate and the speaker of the house of representatives for consideration for appointment to the transportation policy committee.

3. Beginning fiscal year 2024-2025, two members who represent unincorporated areas of a county that has a population of three million or more persons. The president of the senate and the speaker of the house of representatives shall each appoint one member pursuant to this paragraph. Members who are appointed pursuant to this paragraph serve six-year terms.

4. Beginning fiscal year 2024-2025, one member who represents a taxpayer organization and who is appointed jointly by the president of the senate and the speaker of the house of representatives. The member who is appointed pursuant to this paragraph serves a six-year term.

5. Beginning fiscal year 2024-2025, one member who represents residential housing development and who is appointed jointly by the president of the senate and the speaker of the house of representatives. The member who is appointed pursuant to this paragraph serves a six-year term.

6. Beginning fiscal year 2024-2025, one member who represents resiliency interests and who is appointed by the governor. The member who is appointed pursuant to this paragraph serves a six-year term.

B. Through the regional planning agency, the transportation policy committee by a majority vote of the members shall do all of the following:

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

2. Recommend approval, disapproval or modification of the plan.

3. Recommend approval, disapproval or modification of the budget processes identified by section 28-6352, subsection C.

4. Recommend approval, disapproval or modification of funding awarded through the regional transportation infrastructure process.

§ 28-6313 Performance audits of proposed transportation projects and systems

A. Beginning in 2010 and every fifth year thereafter, the auditor general shall conduct a performance audit, as defined in section 41-1278, of the plan and projects scheduled for funding during the next five years.

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

1. Service levels.

2. Capital costs.

3. Operation and maintenance costs.

4. Transit ridership.

5. Farebox revenues.

C. The audit shall:

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

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

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

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

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

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

G. The auditor general shall distribute copies of the audit to:

1. The regional planning agency.

2. The transportation policy committee.

3. The regional public transportation authority in the county.

4. The county board of supervisors.

5. The state transportation board.

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

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

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

I. The cost incurred by the auditor general in contracting with independent auditors for conducting performance audits under subsection A of this section shall be paid from revenues of the county transportation excise tax under sections 42-6105 and 42-6105.01. When due, the payments have priority over any other distribution authorized by section 42-6105 or 42-6105.01. The auditor general shall deposit the payments in the audit services revolving fund established by section 41-1279.06.

Article 2 County Transportation Excise Tax Plan

§ 28-6351 Definitions

In this article, unless the context otherwise requires:

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

2. "Plan" means the comprehensive, performance-based, multimodal and coordinated regional strategic transportation infrastructure investment plan approved for the county pursuant to section 28-6308, as amended or otherwise modified.

§ 28-6352 County transportation excise tax; budget process; annual report

A. The regional planning agency in the county shall develop and adopt a plan. The plan shall be multimodal and shall be developed in cooperation with state and local public transportation authorities and operators and in coordination with the department. The regional planning agency shall consider truck parking availability when considering the construction, expansion or modification of freeways or other routes in the state highway system. On or before December 31, 2045, the regional planning agency shall allocate at least $90,000,000 for the implementation of commercial motor vehicle parking that is consistent with a regionally adopted truck parking plan, including funding for construction, land acquisition, lease, maintenance or operations or entry into a public-private partnership agreement.

B. The plan shall allocate revenue collected under section 42-6105.01 as follows:

1. In the regional area road fund established by section 28-6302 for freeways and other routes in the state highway system, including capital expense and maintenance.

2. In the regional area road fund established by section 28-6302 for major arterial streets, intersection improvements and regional transportation infrastructure, including capital expense and implementation studies.

3. In the public transportation fund established by section 48-5103 for both:

(a) Capital costs, maintenance and operation of public transportation mode classifications.

(b) Capital rehabilitation costs associated with the light rail system.

C. Beginning fiscal year 2023-2024, the regional planning agency shall adopt a budget process that ensures:

1. The estimated cost of the freeways and other routes in the region's state highway system does not exceed the total amount of revenues estimated to be available over the term of the transportation excise tax as prescribed by section 42-6105, subsection C and section 42-6105.01, subsection C.

2. The estimated cost of the public transportation system does not exceed the total amount of revenues estimated to be available over the term of the transportation excise tax as prescribed by section 42-6105, subsection C and section 42-6105.01, subsection C.

3. The estimated cost of major arterial streets, intersection improvements and regional transportation infrastructure does not exceed the total amount of revenues estimated to be available over the term of the transportation excise tax as prescribed by section 42-6105, subsection C and section 42-6105.01, subsection C.

D. The regional planning agency shall coordinate with implementing partners on the budget process prescribed in subsection C of this section, including the department for freeways and other routes in the state highway system and the regional public transportation authority in the county for the public transportation system.

E. The regional planning agency shall determine the use of the revenues collected under sections 42-6105 and 42-6105.01 for capital projects through the transportation improvement program.

F. Any bonds issued against proceeds collected pursuant to sections 42-6105 and 42-6105.01 require consultation with the regional planning agency.

G. The regional planning agency shall annually report on the status of the projects funded pursuant to section 42-6105 or 42-6105.01 and shall post the report on its website.

H. Requests for changes to transportation projects funded in the plan that would materially increase costs shall be submitted to the regional planning agency for approval and submitted by the regional planning agency to the transportation policy committee and the board for consideration and approval.

I. If a local authority requests an enhancement to a transportation project funded in the plan, the local authority shall pay all costs associated with the enhancement.

J. The plan shall reflect the allocation of revenues collected under section 42-6105, subsection D through December 31, 2025.

K. The budget process prescribed in subsection C of this section does not apply to the annual operating budget of the regional public transportation authority in the county.

L. If monies are appropriated by the legislature for a project that is identified in the plan, the use of the monies for construction requires both of the following:

1. The project must be advanced as appropriate to reflect the estimated construction start date.

2. The monies must be used in the same modal classification specified in subsection B of this section.

M. If a municipality pays for public transportation service in an adjacent municipality or unincorporated area of a county, the cost of the service shall be eligible for reimbursement from monies collected under section 42-6105 or 42-6105.01. For the purposes of this subsection:

1. "Municipality" means a city or town.

2. "Public transportation service" includes circulator service.

§ 28-6353 Public transportation farebox recovery audit; ratio; exemption

A. In a county with a population of three million or more persons, beginning fiscal year 2026-2027, the regional public transportation authority, in coordination with the regional planning agency, shall conduct a farebox recovery audit of operating costs and revenues for the previous fiscal year for all public transportation as defined in section 28-6301. The audit shall:

1. Document all revenue sources, including fares and funding generated from section 42-6105.01.

2. Determine a farebox recovery ratio calculated by the percentage of operating expenses paid for by fares as a measure of cost efficiency.

3. Detail the farebox recovery ratio for the entire regional public transportation system and by jurisdiction.

4. Be presented to the regional public transportation authority board and transportation policy committee.

B. The annual farebox recovery ratio shall achieve the following percentages:

1. In fiscal year 2026-2027 through fiscal year 2027-2028, ten percent.

2. In fiscal year 2028-2029 through fiscal year 2030-2031, fifteen percent.

3. In fiscal year 2031-2032 and each subsequent fiscal year, twenty percent.

C. If the systemwide farebox recovery ratio fails to meet the percentages prescribed by subsection B of this section, the regional public transportation authority must demonstrate through the farebox recovery audit that monies from sources other than section 42-6105.01 make up the difference between the farebox recovery ratio and the percentages prescribed by subsection B of this section.

D. If the regional public transportation authority cannot satisfy the requirements prescribed by subsection C of this section, the excess costs shall be allocated between affected jurisdictions according to the proportion of service in that jurisdiction that falls below the percentage requirement prescribed by subsection B of this section. The affected jurisdictions shall pay monies from sources other than section 42-6105.01 to the public transportation fund established by section 48-5103 within two fiscal years following completion of the audit. The payments shall be documented as part of future audits.

E. Vanpool services, ride choice and transportation service that are required by the Americans with disabilities act of 1990 (42 United States Code sections 12101 through 12213) are exempt from this section.

Article 3 Transportation Excise Tax Distribution in Less Populated Counties

§ 28-6391 Transportation excise tax distribution in counties with five hundred thousand persons or less; county regional area road fund

A. In a county with a population of five hundred thousand persons or less, the officer collecting transportation excise tax monies pursuant to section 42-6107 shall immediately transfer the monies to the state treasurer. The state treasurer shall deposit the monies in a fund designated for the county as the county's regional area road fund. The state treasurer shall hold monies in the county's regional area road fund as a trustee for the county and the cities and towns in the county.

B. The county and the cities and towns in the county that receive the transportation excise tax monies have the beneficial interests in the fund.

§ 28-6392 County regional area road fund; distribution; repayment of misused monies; investment

A. Each month the state treasurer shall distribute the monies in the county's regional area road fund to the individual county and to the individual cities and towns in the county in the manner that is determined by the board of supervisors before the election and that is described in the publicity pamphlet for the election.

B. The jurisdiction receiving the revenues may use the revenues only for street and highway purposes or for transportation projects included in the regional transportation plan of the county as prepared by the county regional planning agency. If the auditor general reports to the state treasurer after conducting a performance audit pursuant to section 41-1279.03, subsection A, paragraph 6 that a jurisdiction has not used revenues as provided in this subsection:

1. The state treasurer shall require the jurisdiction to directly repay the fund the full amount of the misused monies beginning immediately as a lump sum or in consecutive annual payments of at least ten percent of the full amount each fiscal year.

2. If the jurisdiction fails to timely and fully repay the fund as required by paragraph 1 of 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. The state treasurer shall invest and divest monies in the county's regional area road fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

Chapter 18 Distribution of Highway User Revenues

Article 1 General Provisions

§ 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 28-2470.39 and 28-2514.

(b) The donations prescribed in sections 28-2404, 28-2407, 28-2412 through 28-2415, 28-2417 through 28-2470.39, 28-2473, 28-2474, 28-2475 and 28-2476.

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.

Article 2 Specific Distributions

§ 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; economic strength project fund

No later than June 15 of each fiscal year, the department shall allocate and transfer one million dollars from revenues of the Arizona highway user revenue fund to the economic strength project fund established by section 28-7282.

§ 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.

Chapter 19 County Highways

Article 1 County Highway Construction, Maintenance and Abandonment

§ 28-6701 Establishing, altering or abandoning local highway

A. The board of supervisors may establish, alter or abandon a highway in the county and other legal subdivisions and acquire real property for these purposes by purchase, donation, dedication, condemnation or other lawful means.

B. A highway in the county or any other legal subdivision may be established or altered by the county engineer's recommendation or by presentation of a petition that is signed by ten or more resident taxpayers of the county to the board of supervisors or to the board of supervisors by the governing body of a legal subdivision, that requests that a highway be established or altered and that gives the highway's beginning, end, general course and direction. The board of supervisors may either reject the recommendation or petition or act on the recommendation or petition as prescribed by this article.

C. The board of supervisors may abandon or vacate these highways by resolution as provided in chapter 20, article 8 of this title, except that, notwithstanding section 28-7211, at least sixty days before the resolution is effective pursuant to section 28-7213, the board of supervisors shall give written notice by certified mail to the owners of the land abutting the highway or portion of the highway to be abandoned or vacated. The board of supervisors shall not resolve to abandon or vacate a highway unless a majority of the owners of the land abutting the highway or portion of the highway approve of the action to abandon or vacate the highway.

D. The county engineer's recommendation process to establish or alter a highway as described in subsection B of this section does not apply to the abandonment of a road that was granted under Revised Statute 2477 (43 United States Code section 932) that was enacted by the United States Congress in 1866.

§ 28-6702 Proposed highway survey; notice of hearing

A. On filing the petition prescribed in section 28-6701, the board of supervisors shall:

1. Direct the county engineer to make a survey of the proposed highway and to file with the board a report of the proposed highway and a map as surveyed that shows the legal subdivision of the lands traversed by the survey. If a survey and maps have already been made for any purpose, these data and maps may be used instead of conducting a survey pursuant to this section.

2. Set a date for a public hearing.

3. Give notice to the public of the hearing by advertising once a week for two consecutive weeks in a newspaper of general circulation in the county. The notice shall state the purpose and the date of the hearing and shall direct all persons desiring to object to the action requested in the recommendation or petition to file with the board of supervisors a statement in writing setting forth their objection or opposition, and to show cause why the recommendation or petition should not be granted.

B. On receipt of a recommendation by the county engineer pursuant to section 28-6701, the board of supervisors shall comply with subsection A, paragraphs 2 and 3 of this section.

§ 28-6703 Hearing

A. At the hearing provided for in section 28-6702, the board of supervisors:

1. Shall consider the feasibility, advantages and necessity of the highway sought to be established.

2. If the board determines the proposed highway is a public necessity, may approve the establishment of the highway by resolution and may accept any right-of-way or property donated to this state or the county.

B. An affected landowner or party may execute a written waiver or release of all compensation or any part of the compensation or may grant any easement or other conveyance of property for the purpose of establishing a highway.

§ 28-6704 Condemnation; federal-county highway; exception

A. The county attorney of the county in which a highway is to be established shall file in superior court in the county in which the land is located a condemnation action pursuant to section 12-1116 in the name of the county if all of the following conditions exist:

1. The board of supervisors enters into an agreement with the United States acting through its duly authorized officers or agents and pursuant to an act of Congress for acquiring a right-of-way for a highway in the county.

2. The United States has constructed part of the highway described in the agreement.

3. The board of supervisors has been unable to acquire a right-of-way pursuant to sections 28-6701 and 28-6702 that is necessary for completion of the highway.

4. An agent of the United States that is in charge of the work to be done by the United States under the agreement makes a demand to the county attorney.

5. The board of supervisors by resolution directs the county attorney to file the action.

B. The county treasurer shall make the deposit required by the court as provided by section 12-1116 and on final judgment by the court assessing the value of the lands sought to be condemned and the damages, if any, to pay the amount due. If the monies deposited or paid by the treasurer have not been appropriated or set aside for that purpose by the board of supervisors, the board of supervisors shall provide for the amount in its next budget and shall levy a tax for that purpose.

C. This section does not apply to a highway designated as a national highway, state highway or state route.

§ 28-6705 Public road and street maintenance

A. The board of supervisors may spend public monies for maintenance of public roads and streets other than legally designated state and county highways located without the limits of an incorporated city or town. Before spending public monies under this section, the roads or streets shall be either:

1. Laid out, opened and constructed in accordance with standard engineering road specifications adopted by the board of supervisors without cost to the county.

2. Completed pursuant to a plat that is approved pursuant to sections 11-802 and 11-822.

B. The board of supervisors may spend public monies for maintenance of public roads and streets that were laid out, constructed and opened before June 13, 1990 even if the roads and streets were not constructed in accordance with subsection A of this section.

C. Maintenance of a public road or street does not include purchasing or laying cement. To reduce long-term maintenance costs for maintenance authorized by this section, the board of supervisors may spend monies to add rock products, gravel and processed materials to the base of the roads and streets. Petroleum based or nonpetroleum based products may be used in the maintenance and repair of unpaved roads, alleys and shoulders identified pursuant to section 9-500.04 or 49-474.01 or unpaved roads, alleys and shoulders in any county where the control officer as defined in section 49-471 certifies to the board of supervisors that emissions from such roads, alleys or shoulders may endanger compliance with the national ambient air quality standard as defined in section 49-401.01.

§ 28-6706 Primitive roads

A. The board of supervisors or the governing body of a city or town may designate a public road within its jurisdiction as a primitive road as prescribed in this section.

B. Neither a county, city or town nor its employees are liable for damages or injuries resulting from the use of a primitive road designated under this section except for intentional injuries or gross negligence caused by an employee acting within the scope of the employee's employment.

C. The board of supervisors or the governing body of a city or town shall not designate a road as a primitive road unless it was opened before June 13, 1990 and was not constructed in accordance with county standards.

D. The county, city or town shall place signs on every road designated as a primitive road in locations adequate to warn the public. These signs shall state "Primitive road, caution, use at your own risk. This surface is not regularly maintained."

E. A board of supervisors or the governing body of a city or town shall not designate a state or county highway as a primitive road.

§ 28-6707 Highway improvement within city or town limit

A. The part of a highway located in an incorporated city or town may be constructed, improved or maintained through cooperation under this article in the same manner as if it were located outside an incorporated city or town.

B. As part of the cooperation, the board of supervisors may enter into an agreement with the governing body of a city or town for the lease of:

1. County equipment used to construct, improve or maintain highways located in the boundaries of the city or town.

2. City or town equipment used to construct, improve or maintain highways located in the boundaries of the county.

§ 28-6708 Jurisdiction of streets; unincorporated town

The streets of an unincorporated town are considered public highways and are under the control of the board of supervisors of the county in which the town is located. The board may designate which streets in the unincorporated towns are considered public highways and may give appropriate names to them.

§ 28-6709 Street and alley abandonment

The board of supervisors may vacate and abandon streets, alleys and avenues located outside the boundaries of incorporated cities and towns shown on recorded plats as dedicated to the public or to which the public or county may have received title by deed, in the same manner and under the same procedure for abandoning county highways.

§ 28-6710 Cattle guard construction

A. If deemed necessary, the board of supervisors may install and construct cattle guards on county roads or may authorize private persons who own or who are in possession of real estate located adjacent to county roads to install and construct cattle guards on county roads.

B. The board of supervisors shall prescribe the specifications and type of material for use in the installation and construction of cattle guards. The specifications and type of material shall be reasonably uniform throughout the county. On the installation and construction of a cattle guard on a county road, the county shall maintain and repair the cattle guard.

C. The county is not required to maintain a cattle guard that was installed before June 12, 1937 on a county road and that does not substantially comply with the type of material and specifications prescribed by the board of supervisors unless the board of supervisors otherwise orders and a copy of the order is entered in the minutes of the board of supervisors.

§ 28-6711 Railroad construction along improved highway prohibited; exception

A. A railroad or street railway shall not be constructed along or on any portion of a highway improved under this article, except a crossing authorized by the board of supervisors. The board of supervisors shall not grant a franchise for the construction of a railroad or street railway along or on an improved portion of the highway, except for a crossing.

B. If such a highway or portion of a highway, after having been improved, is included in the boundaries of an incorporated city or town, the municipal authorities may grant the franchise within the boundaries of the city or town on the express condition that the grantee shall pay to the county for the benefit of the county general fund an amount equal to the cost of the improvement of that portion of the improved highway that will be occupied by the track of the railroad or street railway.

§ 28-6712 Tax levies for county roads

A. For road purposes the board of supervisors may levy a real and personal property tax of not more than twenty-five cents per one hundred dollars of property in the county as valued for tax purposes. The board of supervisors shall levy and collect the tax at the same time and in the same manner as other primary property taxes are levied and collected.

B. The monies shall be paid into the county treasury for the benefit of the highways in the county and shall be spent by the board with other monies received for purposes of improvement of county roads.

C. Notwithstanding any other law, in counties with an assessed valuation of two hundred million dollars or more, an amount of not more than twenty-five cents per one hundred dollars assessed valuation may be budgeted, levied, collected and spent for road purposes independently of and in addition to any other amounts lawfully available for road purposes. This levy is in lieu of the levy permitted under subsection A.

§ 28-6713 Bids for construction, reconstruction, equipment or supplies; procedure; bond; exceptions

A. Except as provided in subsection G of this section, in a county with a population of two hundred fifty thousand persons or more as determined by the most recent United States decennial census or the most recent special census as provided in section 28-6532, bids for all items of construction or reconstruction involving an expenditure equal to or greater than the amount determined pursuant to subsection B of this section, all purchases or other acquisition of equipment involving an expenditure of more than five thousand dollars and all purchases of supplies and materials involving an expenditure of two thousand five hundred dollars or more shall be called for by advertising in a newspaper of general circulation in the county for two consecutive publications if it is a weekly newspaper, or for two publications of at least six but not more than ten days apart if it is a daily newspaper. The advertisement shall state specifically the character of the work to be done and the kind and quality of materials or supplies to be furnished.

B. Bids shall be called pursuant to subsection A of this section for all items of construction or reconstruction involving an expenditure of:

1. In fiscal year 1985-1986, thirty-five thousand dollars.

2. In fiscal year 1986-1987 and each fiscal year thereafter, the amount provided in paragraph 1 of this subsection adjusted by the annual percentage change in the GDP price deflator as defined in section 41-563.

C. If the board of supervisors receives a satisfactory bid, it shall contract with the lowest responsible bidder after the contractor or supplier gives any bond required by title 34, chapter 2, article 2, except that in counties with a population of more than one million persons according to the most recent United States decennial census, in determining the lowest responsible bidder under this section, the board may consider, for no more than five projects, the time of completion proposed by the bidder, the value over time of completed services and facilities and the value over time of interrupted services, if the board determines that this procedure will serve the public interest by providing a substantial fiscal benefit or that the use of the traditional awarding of contracts is not practicable for meeting desired construction standards or delivery schedules and if the formula for considering the time of completion is specifically stated in the bidding information. The board may reject any or all bids and readvertise.

D. The board of supervisors, a member of the board of supervisors or any other official or agent of a county affected by this section shall not segregate or divide into separate units a contiguous or continuous portion of highway construction or reconstruction or divide into separate portions an item of equipment or generally recognized unit of supplies or material to avoid the restrictions imposed by subsection A of this section.

E. The board of supervisors, a member of the board of supervisors or any other official or agent of a county affected by this section shall make every effort to combine the following:

1. Separate portions of highway construction or reconstruction projects.

2. Items of equipment, supplies and materials.

F. After a contract has been awarded, the board of supervisors' authorized representative may authorize change orders to the contract if necessary pursuant to guidelines set by the board of supervisors. This authority does not permit the board of supervisors' authorized representative to act independently to award new contracts.

G. A building, structure, addition or alteration may be constructed without complying with the bidding requirements of this section if the construction, including construction of buildings or structures on public or private property, is required as a condition of development of private property and is authorized by section 9-463.01 or 11-822. For the purposes of this subsection, building does not include any police, fire, school, library or other public building.

H. Subsections A, B and C of this section do not apply to procurement of construction-manager-at-risk, design-build and job-order-contracting construction services pursuant to title 34, chapter 6.

Article 2 Bonds and County Highway Commission

§ 28-6741 Bonds; authorization

The bonds of a county that are authorized and issued for construction or improvement of public highways may be issued by complying with this article. The board of supervisors may, and on the petition of fifteen per cent of the qualified electors of the county, the board of supervisors shall, order an election by the real property taxpayers who are qualified electors of the county to determine whether the indebtedness shall be authorized.

§ 28-6742 County highway commission

A. If the contemplated bond issue is two million dollars or more, the board of supervisors shall appoint a county highway commission consisting of three members. If the contemplated bond issue is less than two million dollars, the board of supervisors shall be ex officio county highway commissioners and shall have all of the powers and duties of the county highway commission.

B. The commissioners:

1. Shall be residents and freeholders in the county of their appointment for the previous three years.

2. Shall be appointed for a term of two years.

3. Are subject to removal by the board for cause.

C. If the proposition to issue the bonds fails, when the improvements are completed or when the monies arising from the sale of the bonds voted at the election have been spent, the term of office of the commissioners ends.

D. The salary of each commissioner is ten dollars for each day actually and necessarily engaged in the duties of the office. In addition to regular compensation, each supervisor shall receive three dollars for each day actually and necessarily engaged as a commissioner.

E. Each commissioner shall give a bond to the county that is for an amount the board of supervisors requires and that is approved by the board. If the board of supervisors acts as the county highway commission, each member shall give an additional bond to the county of five thousand dollars that is conditioned and approved as official bonds of the board of supervisors.

§ 28-6743 County highway commission powers and duties

A. The county highway commission shall:

1. Investigate situations with respect to highways that in the board's judgment the greatest public necessity and convenience require highways to be constructed or improved.

2. Prepare a map of the highways that shows the location of, condition of, connections of and other information about the highways.

3. Determine which of the public highways should be improved with monies derived from the sale of the bonds to be authorized and sold.

4. Determine the kind of improvements that should be made.

5. Procure an estimate of the cost of the improvement.

B. The county highway commission may employ an engineer. At least twenty days before the day appointed for the election, the county highway commission shall report to the board of supervisors. At least two weeks before the election the board of supervisors shall publish the report six times in a daily newspaper or twice in a weekly newspaper in the county.

C. The call for the election shall be limited to the construction and improvement of the public highways that are included in the report and maps prepared by the county highway commission.

§ 28-6744 Semiannual report; publication

A. At least once every six months, the commission shall make and file with the board a detailed statement showing:

1. The amount of monies in the highway improvement fund at the time of its last statement.

2. The amount of monies received since its last statement and the purpose for which the monies were deposited.

3. The amount of monies spent since its last statement and the purpose for which the monies were spent.

4. The balance remaining.

5. The contracts entered into or completed since its last statement and the condition of the work under each contract.

B. The board of supervisors shall publish the statement. The cost of publication shall be paid from the highway improvement fund.

§ 28-6745 Commission expenses

The county treasurer shall pay from the general fund of the county the traveling and other incidental expenses of county highway commission members that are actually and necessarily incurred and all other expenses incurred either by the board of supervisors or by the county highway commission under this article until there are sufficient monies in the highway improvement fund derived from the sale of bonds with which to pay the expenses. The county treasurer shall reimburse the general fund of the county from the highway improvement fund. After there are sufficient monies to pay for the expenses, all expenses shall be paid from the highway improvement fund.

§ 28-6746 Road bond election precincts; election

A. In conducting the election called under section 28-6743, the board of supervisors may form road bond election precincts by consolidating not more than six general election precincts into one road bond election precinct. The board of supervisors shall appoint one inspector, two judges and one clerk for each road bond election precinct.

B. The election shall be conducted as other county bond elections, but notice of the election and the ballots prepared for the election shall state whether the proceeds of the bonds proposed to be sold are to be used in the improvement of the roads of the county generally or only on those roads that are specifically described in the notice of election and on the ballots prepared for use at the election.

§ 28-6747 Sale of bonds; highway improvement fund; disposition of proceeds; use of surplus monies

A. The board of supervisors shall:

1. Sell bonds issued under this article in the same manner as other county bonds.

2. Deposit the proceeds in the highway improvement fund to be paid out by the county treasurer only on order of the county highway commission and to be used only for the purpose for which they were authorized at the election.

B. Any surplus remaining in the fund after completion of the improvement for which the bonds were voted shall be transferred to the general road fund of the county and the board of supervisors may spend the surplus either for repair of county roads or for construction of state highways or roads connecting with state highways.

C. If the county highway commission determines that a surplus of more than one hundred thousand dollars remains in the fund after completion of all work under the contract, it may report that fact in writing to the board. The board of supervisors shall direct the county highway commission to spend the surplus on designated state highways or roads connecting with state highways without waiting for completion of the work on the improvement of the highways for which the bonds were voted. The county highway commission shall direct the expenditure of this surplus.

§ 28-6748 Work contracts

A. The county highway commission shall supervise and direct the work for which the bonds are issued under this article.

B. As soon as the proceeds of the bond sale are deposited in the treasury, the county highway commission shall:

1. Prepare plans, specifications and profiles for the work.

2. Advertise for bids for the work or any part of the work by publishing a notice calling for bids on the work.

C. A contract for doing any part of the work shall be let after advertisement to the lowest and best responsible bidder who will give any bond required by title 34, chapter 2, article 2, except that the county highway commission may:

1. Contract for any part of the work that does not cost more than one thousand dollars without calling for bids.

2. Reject any and all bids received and readvertise.

§ 28-6749 Cooperative contracts with federal government

A. The county highway commission may enter into cooperative contracts and agreements for construction of roads with the United States or any of its departments or agencies pursuant to an act of Congress.

B. The provisions of law relating to methods of spending monies derived from the sale of the bonds do not apply to these cooperative contracts. On order of the county highway commission, the county treasurer shall deposit any monies in the county treasury that are subject to the disposition or control of the county highway commission required under a cooperative contract in a United States depository designated by the officer of the United States authorized by law to enter into the contract to the credit of and to be spent by this officer under the terms of the contract.

Article 3 County Bridges

§ 28-6771 County bridge construction

The board of supervisors may construct and maintain bridges across streams whether wholly or partly within or outside the corporate limits of an incorporated city or town.

§ 28-6772 Bridge joint use; railroad; petition; contract limitations

A. On filing a petition signed by a majority of the taxpayers of the county, the board of supervisors may contract for the county with a railroad company for the construction and maintenance of bridges across streams to be used jointly by the railroad company and the public. The board of supervisors shall not contract to pay or be liable to pay more than one-third of the cost of construction and maintenance of a bridge.

B. The petition shall state the total cost of the bridge and the amount to be paid by the county. The board of supervisors shall give notice by publishing the time of the hearing on the petition.

Article 4 Toll Roads, Ferries and Bridges

§ 28-6801 Definition of toll road

For the purposes of this article, "toll road" includes trails for the passage of saddle and pack animals and foot passengers, as well as roads designed for the passage of vehicles, if the trails have been built in mountainous or precipitous places or in other places where the building of roads for the passage of vehicles would be impracticable.

§ 28-6802 Toll road construction; notice; application; hearing

A. A person who desires to construct a toll road, bridge or ferry within one or more counties shall publish a notice in a newspaper that is published in each county, once each week for six successive weeks. The notice shall state:

1. The type and character of the road.

2. The terminals.

3. The general route and each city, town or village through which construction is proposed.

4. The time when the application required by this section shall be made, which shall not be more than ten days after the last publication of the notice.

B. On the day specified in the notice, written application shall be made to the respective boards of supervisors of the counties for authority to take the necessary land and construct the road described in the notice. The application shall be in triplicate, and each copy shall be accompanied by:

1. An engineer's plat of the route of the proposed road showing the proposed centerline and right-of-way lines and giving engineer's stations and ties to legal subdivision lines of the regions traversed.

2. Proposed construction plans and details.

3. Estimates of cost.

C. When the application is filed with the clerk of the board of supervisors, the clerk shall:

1. Immediately set the application for a hearing before the board of supervisors at least fifteen but not more than thirty days after the application is filed.

2. Forward a copy of the application, accompanying papers, instruments and documents and notice of the date of the hearing by certified mail to the highway commission.

3. Publish notice of the hearing one time at least ten days before the day of the hearing in the same newspaper in which notice of the application was published.

D. At the hearing, all persons interested may appear and be heard. The board of supervisors may take testimony and adjourn the hearing.

§ 28-6803 Application approval or rejection; effective date; franchise term and reversion

A. If it appears to the board of supervisors that the public interest will be promoted by the application provided in section 28-6802, it may grant the application in whole or in part or as revised.

B. The board of supervisors shall not grant an application if any of the following applies:

1. The highway commission files with the board of supervisors a written statement that the proposed toll road will interfere with an existing or proposed state highway or state route.

2. The proposed toll road will interfere with an existing or contemplated county highway.

3. The proposed toll road will be converted from a publicly funded or maintained street or highway. This paragraph does not apply if the applicant is an airport as defined in section 28-8461.

C. An order granting an application is not effective until a copy of the order and an engineer's plat of the road approved in writing by the board of supervisors is filed with the county recorder within thirty days after the date the order is made.

D. A franchise for a toll road shall not be granted for a term of more than ten years, subject to the right of extension for one additional period of not more than ten years.

E. On expiration or forfeiture of a toll road franchise:

1. The ownership and all rights and privileges appurtenant to the ownership vest in the county or counties in which it is located.

2. The board of supervisors may declare it a free highway or collect tolls.

§ 28-6804 Toll road; interference prohibited

A toll road shall not interfere with a highway in general use by the traveling public. If a toll road is established or if the prior right to maintain it has been acquired, another toll road shall not be constructed or maintained within one mile of either side of the road.

§ 28-6805 Toll road; condemnation; construction; guideposts

A. Lands necessary for the construction of a toll road or appurtenances to a toll road may be acquired by condemnation.

B. A toll road shall be laid out at least fifty feet wide. If the road is a plank road, the track shall be constructed eighteen feet wide of timber, plank or other hard material. If the toll road is a turnpike, the track shall be bedded with stone, gravel or other hard material found on the line of the track to the width of eighteen feet and faced with broken stone or gravel. A common wagon road shall be graded at least twelve feet in width and constructed with necessary turnouts to permit vehicles to pass conveniently. The roads shall:

1. Be ditched on the sides if practicable.

2. Have proper and necessary drainage.

3. Be constructed so that vehicles may pass on and off the track at intersections of roads.

C. Any tollgate, tollhouse or other building shall not be erected within one hundred sixty-five feet of the front of any dwelling house, barn or outhouse without the written consent of the owner. A toll road shall not be constructed:

1. Within the limits of an incorporated city or town.

2. Through an orchard at least four years old so as to injure the fruit trees.

3. Through a garden that has been cultivated at least four years.

4. Through a dwelling house or yard or enclosure necessary to a dwelling house without written consent of the owner.

D. There shall be a guidepost at every intersection of the toll road and a public road. The guidepost shall indicate the name and direction of the place to which the public road leads. The owner shall keep the guidepost in good condition at all times, and if the owner fails to do so:

1. The owner's franchise may be forfeited on information in the nature of quo warranto.

2. The owner is liable for damages sustained by parties passing over the road.

§ 28-6806 Toll road construction and completion

A. Construction of the toll road shall begin within thirty days after the date of the order approving the application and shall continue with all reasonable dispatch until completed.

B. When the road is completed, the owner of the franchise shall file with the county recorder a certificate that the road is completed and conforms to the requirements of law.

§ 28-6807 Toll rates; violation; classification

A. When the certificate of completion is filed, tollgates may be erected and tolls may be collected.

B. The board of supervisors shall fix and regulate the rates of tolls for franchises granted under this article within the limits of its county, giving due regard to the cost of construction, magnitude of the structure and expenses incidental to the toll road and maintenance. The rates may be changed after notice to the owners and the public given by posting notice on the property and after a hearing. The rates of tolls shall be printed or painted in a plain and legible manner on a bulletin board posted at each tollgate on the road.

C. A person who knowingly demands or collects a higher rate of toll than fixed by the board is guilty of a class 2 misdemeanor.

D. If a person traveling on a toll road attempts to run by or go around a tollgate established on a toll road with the intention of avoiding the payment of the toll, the person is guilty of a petty offense.

§ 28-6808 State tax

The owner shall:

1. Keep an accurate account of the gross receipts and expenditures of the road.

2. Make a quarterly report of the gross receipts and expenditures under oath to the department of administration accompanied by two per cent of the gross proceeds from the road that are deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

Chapter 20 State Highways and Routes

Article 1 General Provisions

§ 28-6901 Definitions

In this chapter, unless the context otherwise requires:

1. "Budget" means the annual highway program prepared by the department.

2. "Division" means the highway division of the department of transportation.

3. "State engineer" means the assistant director for the division.

Article 2 Highway Division

§ 28-6921 State engineer; qualifications; compensation

A. The director shall appoint a state engineer to administer the division.

B. The state engineer shall be both:

1. A civil engineer registered to practice in this state.

2. Familiar with the theory of and experienced in the practice of highway construction, maintenance, design or engineering.

C. The state engineer:

1. Shall have either:

(a) A thorough knowledge of modern business methods.

(b) At least ten years of experience in a business or profession of which at least four years was in a responsible administrative capacity. All or part of the experience may have been with the United States government, a state or a political subdivision of a state.

2. Shall devote full time to the duties of the office.

3. Shall not engage directly or indirectly in an occupation that conflicts with the state engineer's duties.

4. Is the executive and administrative officer of the division.

5. Has charge of the administration of all highway affairs as authorized by the director.

6. Is eligible to receive compensation pursuant to section 38-611.

§ 28-6922 Director; powers and duties

A. The director of the department of transportation or the director's authorized and bonded agent shall administer all highway and maintenance work and has the following powers and duties:

1. Direct the preparation of all plans and specifications for work on state highways or state routes.

2. Advertise for competitive bids for work on state highways or state routes and, on authorization of the transportation board, award and enter into contracts for the work.

3. Direct the supervision of all construction work on state highways and state routes and is in charge of maintenance and upkeep of these highways and routes.

4. Approve payment for work done by the state on or in connection with state highways or state routes, except that the director of the department of administration shall not allow a claim for work without the approval of the director of the department of transportation or the director's authorized and bonded agent.

5. Negotiate and award contracts to private consulting engineers or consulting engineering firms if deemed in the public interest by the director and the transportation board for the performance of engineering work that is required to formulate and complete highway construction contracts.

B. The director shall:

1. Direct the organization of the division.

2. Appoint, suspend, discharge and fix the duties of employees.

3. Make monthly reports to the transportation board of all expenditures of the division, of the work accomplished and other applicable information.

4. On request of the transportation board, assign clerks or other employees to the board.

5. Prescribe procedures for the use of division personnel, facilities, equipment, supplies and other resources in assisting search or rescue operations.

6. Exercise other powers necessary to carry out the work of the division and perform other duties prescribed by law for the division.

§ 28-6923 Bid requirements; procedure; bond

A. All items of construction or reconstruction of department facilities involving an expenditure of $189,000 or more shall be called for by advertising in a newspaper of general circulation published in this state for either:

1. Two consecutive publications if it is a weekly newspaper.

2. Two publications at least six but not more than ten days apart if it is a daily newspaper.

B. In fiscal year 2008-2009 and each fiscal year thereafter, the amount provided in subsection A of this section shall be adjusted by the annual percentage change in the GDP price deflator as defined in section 41-563.

C. The advertisement shall state specifically the character of the work to be done and where a person may obtain copies of the plans, specifications and complete information as to the proposed work.

D. The bidding information provided shall state specifically the character of the work to be performed and the kind, quantity and quality of materials or supplies to be furnished. The plans and specifications:

1. Shall be sufficiently complete, definite and explicit to allow informed, free, open and competitive bidding on a common basis.

2. May require performance on the basis of either means and methods specifications or end result specifications.

3. If end result specifications are used, shall provide an objective or standard to be achieved with the successful bidder expected to exercise the bidder's skill and ingenuity in achieving that objective or standard of performance by selecting the means and manner of performance and by assuming a corresponding responsibility for that selection.

E. If contractor insurance is required for construction or reconstruction pursuant to this section, the insurance shall be placed with an insurer authorized to transact insurance in this state pursuant to title 20, chapter 2, article 1 or a surplus lines insurer approved and identified by the director of the department of insurance and financial institutions pursuant to title 20, chapter 2, article 5.

F. A bid shall be accompanied by a certified check, cashier's check or surety bond for ten percent of the amount of the bid included in the proposal as a guarantee that the contractor will enter into a contract to perform the proposal pursuant to the plans and specifications.

G. The certified check, cashier's check or surety bond shall be returned to the contractors whose proposals are not accepted and to the successful contractor on the execution of a satisfactory bond and contract as provided in this article.

H. The surety bond provided pursuant to subsection F of this section shall be executed and furnished as required by title 34, chapter 2, and the conditions and provisions of the surety bid bond regarding the surety's obligations shall follow the form required under section 34-201, subsection A, paragraph 3.

I. If a bid that is satisfactory to the board is received, it shall let a contract to the lowest responsible bidder, on the contractor giving performance and payment bonds that follow the form and include the provisions required by title 34, chapter 2, article 2.

J. If the bids received for construction or reconstruction are not satisfactory to the board, a second call shall be made. If they are again rejected by the board, it may authorize the state engineer to construct or reconstruct the item as it deems most advantageous.

K. In determining the lowest responsible bidder under this section, the department and the board may consider the time of completion proposed by the bidder if the department and the board determine that this procedure will serve the public interest by providing a substantial fiscal benefit or that the use of the traditional awarding of contracts is not practicable for meeting desired construction standards or delivery schedules and if the formula for considering the time of completion is specifically stated in the bidding information.

L. This section does not prohibit a change to a construction contract that either:

1. Does not alter the scope of the work under a contract and the cost of the change does not exceed ten percent of the contract amount or $50,000, whichever is greater.

2. Does alter the scope of the work if the cost of the change does not exceed ten percent of the contract amount or $50,000, whichever is greater, and the changed work is within twenty percent of the total project length.

M. If a project is funded completely with private monies, the private entity is not required to comply with subsections A through L of this section if the private entity complies with all of the following:

1. Before advertising for bids, submits to the department a bond that is issued by a surety insurer authorized to do business in this state and that is in an amount equal to one hundred twenty-five percent of the anticipated construction cost of the project, including construction management and contractor costs.

2. Solicits sealed bids from at least four contractors who are prequalified by the department to perform a contract of the anticipated dollar amount of the construction.

3. Awards the contract to the best bidder taking into account price and other criteria as provided in the bid documents.

4. Obtains bonds from the selected contractor that provide the same coverage as performance and payment bonds issued under title 34, chapter 2, article 2.

5. Uses department construction standards.

6. Pays all costs of department reviews of the contract and inspections of the project.

N. For the purposes of this section, a project is funded completely with private monies if all of the following apply:

1. The contractor is paid entirely with monies from private entities.

2. The private entities hire a competent construction manager and contractor who do not have an affiliation with each other.

3. The private entities either pay all costs of design or reimburse the department for all costs of design.

§ 28-6924 Progress payments; changed or additional work; attorney fees; definitions

A. The following apply to the department's highway construction projects awarded pursuant to section 28-6923, 28-7365 or 28-7366:

1. Progress payments may be made by the department to the contractor on the basis of a duly certified and approved estimate of the work performed during a preceding period of time. The progress payments shall be paid on or before fourteen days after the estimate of the work is certified and approved. The estimate of the work shall be deemed received by the department on submission to the person designated by the department for the submission, review or approval of the estimate of the work. An estimate of the work submitted under this section shall be deemed approved and certified seven days after the date of submission unless before that time the department prepares and issues a specific written finding detailing those items in the estimate of the work that are not approved and certified under the contract. The department may withhold an amount from the progress payment that is sufficient to pay the expenses the department reasonably expects to incur in correcting the deficiency set forth in the written finding. On completion and acceptance of separate divisions of the contract on which the price is stated separately in the contract, payment may be made in full including retained percentages, less deductions, unless a substitute security has been provided.

2. The contractor shall pay to the contractor's subcontractors or material suppliers and each subcontractor shall pay to the subcontractor's subcontractors or material suppliers, within seven days after receipt of each progress payment, unless otherwise agreed in writing by the parties, the respective amounts allowed the contractor or subcontractor on account of the work performed by the contractor's or subcontractor's subcontractors or material suppliers, to the extent of each subcontractor's or material supplier's interest in the amount. These payments to subcontractors or material suppliers shall be based on payments received pursuant to this section. Any diversion by the contractor or subcontractor of payment received for work performed on a contract or failure to reasonably account for the application or use of the payments constitutes grounds for disciplinary action by the registrar of contractors. A subcontractor or material supplier shall notify the registrar of contractors and the department in writing of any payment less than the amount of percentage approved for the class or item of work as set forth in this section.

3. A subcontractor may notify the department in writing requesting that the subcontractor be notified by the department in writing within five days after payment of each progress payment that is made to the contractor. The subcontractor's request under this paragraph remains in effect for the duration of the subcontractor's work on the project.

4. If any payment to a contractor is delayed after the date due, interest shall be paid at the rate of one percent per month or a fraction of the month on the unpaid balance.

5. If any periodic or final payment to a subcontractor or material supplier is delayed by more than seven days after receipt of the periodic or final payment by the contractor or subcontractor, the contractor or subcontractor shall pay the subcontractor or material supplier interest, beginning on the eighth day, at the rate of one percent per month or a fraction of a month on the unpaid balance.

B. A contract for construction shall not materially alter the rights of any contractor, subcontractor or material supplier to receive prompt and timely payment as provided under this section.

C. This section does not prevent a contractor or subcontractor, at the time of application and certification to the department or contractor, from withholding the application and certification to the department or contractor for payment to the subcontractor or material supplier for unsatisfactory job progress, defective construction work or materials not remedied, disputed work or materials, third-party claims filed or reasonable evidence that a claim will be filed, failure of a subcontractor to make timely payments for labor, equipment and materials, damage to the contractor or another subcontractor, reasonable evidence that the subcontract cannot be completed for the unpaid balance of the subcontract amount or a reasonable amount for retention that does not exceed the annual percentage retained by the department.

D. This section does not create a duty of the department to a subcontractor or material supplier other than the duty to notify pursuant to subsection A, paragraph 3 of this section and does not create a cause of action in favor of a subcontractor or material supplier against this state, the department or any state employee or agent.

E. If the department directs the contractor in writing to perform changed or additional work in accordance with the terms of the construction contract and the contractor submits to the department a reasonable cost estimate of the changed or additional work as may be required under the construction contract, pending a final determination of the total amount to be paid for the changed or additional work, the contractor may request payment for changed or additional work that the contractor completed during the preceding calendar month in monthly pay estimates based on the costs the contractor incurred to perform that work. The person designated in the construction contract to certify and approve the monthly payment estimate shall make an interim determination for purposes of approval for payment of those costs and certify for payment the amount that person determines to be reasonably justified. Either party may disagree with the interim determination and may assert a claim in accordance with the terms of the construction contract.

F. If the department directs the contractor in writing to perform changed or additional work in accordance with the construction contract and the contractor submits to the department a reasonable cost estimate of the changed or additional work as may be required under the construction contract and if the contractor directs the subcontractor to perform the changed or additional work in accordance with the terms of the agreement between the contractor and subcontractor and the subcontractor submits to the contractor a reasonable cost estimate of the changed or additional work as may be required under the construction contract, pending a final determination of the total amount to be paid for the changed or additional work, the subcontractor may request payment from the contractor for the changed or additional work that the subcontractor completed during the preceding calendar month in monthly pay estimates based on the costs the subcontractor incurred to perform that work. Either party may disagree with the interim determination and may assert a claim in accordance with the terms of the agreement between the contractor and subcontractor.

G. In any action or arbitration brought pursuant to this section, the successful party shall be awarded reasonable attorney fees and costs.

H. For the purposes of this section:

1. "Construction contract" means a written agreement relating to constructing, altering or repairing all work on state highways.

2. "Contractor":

(a) Means any person, firm, partnership, corporation, association or other organization, or a combination of any of them, that has a direct contract with the department to perform work under a construction contract.

(b) Does not include an agricultural improvement district formed pursuant to title 48, chapter 17, an electric cooperative formed pursuant to title 10, chapter 19, article 2 or 4 or a domestic water improvement district or a domestic wastewater improvement district formed pursuant to title 48, chapter 6, article 4.

3. "Costs" means the aggregate costs of all labor, materials, equipment and services.

4. "Subcontractor":

(a) Means any person, firm, partnership, corporation, association or other organization, or a combination of any of them, that has a direct contract with a contractor or another subcontractor to perform a portion of the work under a construction contract.

(b) Does not include an agricultural improvement district formed pursuant to title 48, chapter 17, an electric cooperative formed pursuant to title 10, chapter 19, article 2 or 4 or a domestic water improvement district or a domestic wastewater improvement district formed pursuant to title 48, chapter 6, article 4.

5. "Work" means the labor, materials, equipment and services to be provided by a contractor or subcontractor under a construction contract.

§ 28-6925 Contract counsel fund; appropriation; exemptions; disbursements; reimbursement

A. The sum of thirty thousand dollars is appropriated from the state highway fund to the department for deposit in a special fund designated as the contract counsel fund. The department of transportation shall spend monies in the fund to reimburse the attorney general for department of law services.

B. The appropriation made by this section is limited to the hiring of attorneys for condemnation cases pertaining to the purchase and acquisition of rights-of-way on federal aid projects.

C. The department of administration shall transfer and replenish the sum appropriated under this section from monies in the state highway fund appropriated for construction of state highways to the contract counsel fund. On receipt of itemized verified statements accompanied by proper receipts and vouchers showing in detail the expenditures from the contract counsel fund, the department of administration shall issue a warrant to fully replenish the contract counsel fund from monies appropriated for construction of state highways, except that the total of the warrants shall not exceed thirty thousand dollars at any time.

D. The appropriation under this section is exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 28-6926 Construction contracts; void provisions

A provision, covenant, clause or understanding in, collateral to or affecting a construction contract that makes the contract subject to the laws of another state or that requires any litigation, arbitration or other dispute resolution proceeding arising from the contract to be conducted in another state is against this state's public policy and is void and unenforceable.

Article 3 Five Year Transportation Facilities Construction Program

§ 28-6951 Five year transportation facilities construction program; departmental committee

A. The director shall develop a five year transportation facilities construction program according to the policies established by the board.

B. To aid in the development of the five year transportation facilities construction program, the director shall appoint a departmental committee that is responsible to the director. The departmental committee is subject to title 38, chapter 3, article 3.1.

C. The departmental committee shall:

1. Recommend priorities on transportation facilities construction projects to be constructed by this state that may include any relevant criteria for the development of priority recommendations for the construction and development of transportation facilities to be constructed by this state.

2. Update and prepare annually a long-range statewide transportation facilities construction program covering the following five fiscal years for submission to the board as follows:

(a) The first year of the five year program shall consist of the highest priority transportation facilities construction projects that with reasonable certainty can be advertised for public bidding.

(b) The committee shall group proposed projects for the four remaining years of the five year program by the year it is estimated construction will begin and in order of their priorities.

(c) The committee shall provide the estimated cost of the program for each year that is approximately equal to the revenues estimated to be available for transportation facilities construction purposes during that year.

3. Review priority changes in or introduction of new projects to a proposed or an adopted five year program that the board has requested and make recommendations in a written report to the board on the requested priority changes or introduction of new projects based on a study of the criteria and policy that establish the priorities of projects.

4. Review the adopted five year transportation facilities construction program from time to time during the fiscal year and make recommendations in a written report to the board for priority changes in or introduction of new projects to the program based on a study of the criteria and policy that establish the priorities of projects.

5. Review and make recommendations to the board for applications submitted pursuant to section 28-339.

6. Fully document its recommendations in the written reports required by this section.

§ 28-6952 Five year transportation facilities construction program; publication; hearing

A. On or before April 1 of each year, the board shall review the updated five year transportation facilities construction program prepared by the director.

B. On or before May 1 of each year, the board shall publish a notice in a newspaper of general circulation in each county in which construction projects are planned under the statewide five year transportation facilities construction program for the following five fiscal years. The notice shall specify the date of the public hearing at which the board will consider the projects planned under the five year transportation facilities construction program. The public hearing shall allow the public to review the five year transportation facilities construction program and make any comments to the board related to the projects planned.

C. After the public hearing, the board may make priority changes in or introduce new projects to the proposed five year transportation facilities construction program pursuant to section 28-6955.

§ 28-6953 Updated program; annual report

A. Except as provided in subsection C of this section, on or before June 30 of each year, the board shall:

1. Adopt an updated five year transportation facilities construction program for the following five fiscal years.

2. File a written report with the director and the governor outlining the updated program and explaining any priority changes made pursuant to section 28-6955.

3. File a copy of the program with the director of the department of administration and the state treasurer.

B. On or before the first Monday in August of each year, the board shall prepare and make available to the public an annual report that summarizes the updated five year statewide transportation facilities construction program. The report shall contain:

1. The name of each proposed transportation facilities construction project.

2. The anticipated year each project will be advertised for bidding.

3. The location, description and total estimated cost of each project.

4. An explanation of the project's priority.

5. Other data the board deems necessary.

C. Notwithstanding sections 28-304 and 28-6955, the five year transportation facilities construction program in effect on June 30, 2000, and the regional freeway program scheduled for completion by 2007 and in effect on June 30, 2000, shall not be delayed or postponed and shall remain in effect without change in priority or programming until the projects planned or programmed in the five year transportation facilities construction program and regional freeway program scheduled for completion by 2007 are substantially complete.

§ 28-6954 Program requirements

A. The five year transportation facilities construction program shall:

1. Set forth estimated expenditures by project for engineering, rights-of-way and construction.

2. Include detailed information by project as to location, description and the reasons for the project's assigned priority.

3. List projects by priority and group them in the fiscal year during which it is estimated construction can begin.

4. For the first year of the program, consist of projects that can with reasonable certainty be advertised for public bidding.

5. Include a plan for the use of monies expected to be deposited in a county's regional area road fund as provided in chapter 17, article 1 of this title that is all of the following:

(a) Consistent with the plan as defined in section 28-6351.

(b) Consistent with the project budget process specified in section 28-6352, subsection C, paragraph 1.

(c) Annually updated.

6. Include a plan for the use of monies that are expected to accrue in a county's regional transportation fund as provided in section 48-5310, that are dedicated for street and highway purposes and that are in the state highway system.

B. The department shall develop and use detailed criteria designed to meet the transportation system performance measures adopted by the board pursuant to section 28-304 in identifying projects for the five year transportation facilities construction program. The project selection process shall also conform to state and regional growth policies.

§ 28-6955 Five year program changes

A. The board may change a proposed or an adopted five year transportation facilities construction program.

B. If the board desires to change the priority of a project or to introduce a new project into a proposed or an adopted five year program that would result in changed priorities, the board shall require the director to study the requested change and make a recommendation to the board based on the criteria and policy provided in section 28-6951. If the board changes the priority of projects of a proposed or an adopted five year program, the board shall:

1. Make the change only in an open meeting.

2. Specifically document and explain in a written report the reasons and justifications for changes and for any deviations from the recommendations of the director.

3. Include the written report with the updated five year program to be filed with the director and the governor the next fiscal year.

4. Immediately incorporate any priority changes approved by the board into the five year program.

C. Any changes in an adopted five year transportation facilities construction program other than changes affecting the priorities are not required to be reported in writing.

Article 4 State Highway Fund and Budget

§ 28-6991 State highway fund; sources

The state highway fund is established 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 or cities 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 or city stating the purposes for which the monies are surrendered by the county or city, 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.

10. Monies distributed pursuant to section 28-5808, subsection B, paragraph 2, subdivision (d).

11. Monies deposited pursuant to sections 28-1143, 28-2353 and 28-3003.

12. Except as provided in section 28-5101, the following monies:

(a) Monies deposited pursuant to section 28-2206 and section 28-5808, subsection B, paragraph 2, subdivision (e).

(b) $1 of each registration fee and $1 of each title fee collected pursuant to section 28-2003.

(c) $2 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 special plate administration fees collected pursuant to sections 28-2404, 28-2407, 28-2412 through 28-2416, 28-2416.01, 28-2417 through 28-2470.39 and 28-2514.

(f) Monies collected pursuant to sections 28-372, 28-2155 and 28-2156 if the director is the registering officer.

13. Monies deposited pursuant to chapter 5, article 5 of this title.

14. Donations received pursuant to section 28-2269.

15. Dealer and registration monies collected pursuant to section 28-4304.

16. Abandoned vehicle administration monies deposited pursuant to section 28-4804.

17. Monies deposited pursuant to section 28-710, subsection D, paragraph 2.

18. Monies deposited pursuant to section 28-2065.

19. Monies deposited pursuant to section 28-7311.

20. Monies deposited pursuant to section 28-7059.

21. Monies deposited pursuant to section 28-1105.

22. Monies deposited pursuant to section 28-2448, subsection D.

23. Monies deposited pursuant to section 28-3415.

24. Monies deposited pursuant to section 28-3002, subsection A, paragraph 14.

25. Monies deposited pursuant to section 28-7316.

26. Monies deposited pursuant to section 28-4302.

27. Monies deposited pursuant to section 28-3416.

28. Monies deposited pursuant to section 28-4504.

29. Monies deposited pursuant to section 28-2098.

30. Monies deposited pursuant to sections 28-2321, 28-2324, 28-2325, 28-5474, 28-5739, 28-5863 and 28-5864.

§ 28-6992 Director of department of administration; comptroller of fund

A. The director of the department of administration is the comptroller of all expenditures from the state highway fund.

B. The duties of the director of the department of administration under this section are supervisory. The director of the department of administration shall not approve a claim or demand for a purpose that is not authorized.

C. On request, the director of the department of transportation shall submit to the director of the department of administration the facts and circumstances connected with a claim or demand.

§ 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, including repayment of obligations entered into pursuant to this title, payment of interest on obligations entered into pursuant to this title, repayment of loans and other financial assistance, including repayment of advances and interest on advances made to the department pursuant to section 28-7677, and payment of all other obligations and expenses of the board and department pursuant to chapter 21 of this title.

8. To pay lawful bills and charges incurred by the state engineer.

9. To acquire, construct or improve entry roads to state parks or roads within state parks.

10. To acquire, construct or improve entry roads to state prisons.

11. To pay the cost of relocating a utility facility pursuant to section 28-7156.

12. For the purposes provided in subsections C, D and E of this section and sections 28-1143, 28-2353 and 28-3003.

13. To pay the cost of issuing an Arizona centennial special plate pursuant to section 28-2448.

14. To pay for all of the following:

(a) The enforcement by the department of public safety and the department of transportation of vehicle safety requirements within twenty-five miles of the border between this state and Mexico.

(b) Costs related to procuring electronic equipment, automated systems or improvements to existing electronic equipment or automated systems for relieving vehicle congestion at ports of entry on the border between this state and Mexico.

(c) Constructing, maintaining and upgrading transportation facilities, including roads, streets and highways, approved by the board within twenty-five miles of the border between this state and Mexico.

(d) As approved by the board, constructing and maintaining transportation facilities in the CANAMEX high priority corridor as defined in section 332 of the national highway system designation act of 1995 (P.L. 104-59; 109 Stat. 568).

(e) Activities of the department that include collecting transportation and trade data in the United States and Mexico for the purposes of constructing transportation facilities, improving public safety, improving truck processing time and relieving congestion at ports of entry on the border between this state and Mexico. The department may enter into an agreement with the Arizona-Mexico commission and provide funding to the commission for the purposes of this subdivision.

(f) A commitment or investment necessary for the department or another agency of this state to obtain federal monies that are designated for expenditure pursuant to this section.

B. For each fiscal year, the department of transportation shall allocate and transfer 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 $10,000,000.

C. Subject to legislative appropriation, the department may use the monies in the state highway fund as prescribed in section 28-6991, paragraph 12 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, 28-2407, 28-2412 through 28-2470.39 and 28-2514.

D. 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.

E. Monies deposited in the state highway fund pursuant to section 28-2269 shall be used only as prescribed by that section.

F. Monies deposited in the state highway fund pursuant to section 28-710, subsection D, paragraph 2 shall only be used for state highway work zone traffic control devices.

G. The department may exchange monies distributed to the state highway fund pursuant to section 28-6538, subsection A, paragraph 1 for local government surface transportation program federal monies suballocated to councils of government and metropolitan planning organizations if the local government scheduled to receive the federal monies concurs. An exchange of state highway fund monies pursuant to this subsection shall be in an amount that is at least equal to ninety percent of the federal obligation authority that exists in the project for which the exchange is proposed.

H. The department shall use monies deposited in the state highway fund pursuant to section 28-1105, subsection A, paragraph 2, subdivision (a) only for a transportation facility that is located within twenty drivable miles of the international port of entry and shall spend the monies proportionally based on the amount of total monies collected pursuant to section 28-1105, subsection A, paragraph 2, subdivision (a). For the purposes of this subsection, "transportation facility" means a highway or a state route or a county, city or town road that is used by a commercial vehicle or a commercial vehicle combination for which an axle fee is paid pursuant to section 28-5474.

§ 28-6994 Highway damage recovery account

A. The highway damage recovery account is established as a separate account in the state highway fund established by section 28-6991. The department shall deposit, pursuant to sections 35-146 and 35-147, all monies received for damage caused to state highways, portions of highways forming state routes, fixtures and other state property in the right-of-way into the account. Subject to legislative appropriation, the department shall use monies in the account for maintenance of state highways, portions of highways and state routes.

B. On notice from the department, the state treasurer shall invest and divest monies in the highway damage recovery account as provided by section 35-313, and monies earned from investment shall be credited to the account.

§ 28-6995 Preferences

A. In spending monies from the state highway fund, the department shall give preference to the requirements of the budget in the following order:

1. Constructing highways in cooperation with the United States.

2. Taking over and constructing other state highways.

B. Reconstruction or replacement of existing highways that are damaged or destroyed by acts of God or other sudden or unexpected causes shall be given preference accorded for maintenance expenditures pursuant to the order named in subsection A.

§ 28-6996 State highway fund; investment

On notice from the director the state treasurer shall invest and divest monies in the state highway 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.

§ 28-6997 Fiscal year; budget

A. The fiscal year of the department begins on July 1 of each year and ends the following June 30.

B. The department shall operate strictly under a budget provided and authorized by the legislature.

§ 28-6998 Public monies; expenditure

A. The department is subject to the provisions of title 35, chapter 1 relating to public finances and to all other acts of the legislature applicable to the expenditure of public monies.

B. The department shall conform to the state budget system and shall not make expenditures unless both:

1. The department is authorized to make the expenditure by the legislature.

2. The money is appropriated for the expenditure.

§ 28-6999 Expenditure; appropriation limitation; violation; classification; civil action

A. Except for repayment of loan repayment agreements and interest on loan repayment agreements pursuant to section 28-7676, advances and interest on advances made to the department pursuant to section 28-7677, principal of and interest on board funding obligations delivered pursuant to section 28-7678 and bonds and obligations issued pursuant to chapter 21 of this title, the board and the director shall not make or authorize an expenditure for any purpose during a fiscal year in excess of the amount appropriated by the legislature for that purpose.

B. A member of the board or an employee or agent of the department who knowingly approves for expenditure or who knowingly causes to be expended any amount in violation of this section is both:

1. Guilty of a class 2 misdemeanor.

2. Liable for the amount on the person's official bond to be recovered in a civil action in the name of this state brought by either:

(a) The attorney general.

(b) On the failure or refusal of the attorney general to act, any citizen of this state for the benefit of this state.

§ 28-7000 Contracts; exceptions

A. Notwithstanding section 28-6999, the department may enter into:

1. Construction contracts the performance of which may extend beyond the close of the fiscal year.

2. Contracts or agreements for the purpose of right-of-way acquisitions that may obligate state monies for payment up to ten years before the estimated completion date of construction.

3. Contracts or agreements for the purpose of compensating a utility for damages to the utility's facilities if the damages result from an increase in the cost of maintenance, repair or replacement of the facilities due to changes in the configuration or location of the utility's facilities that are required to accommodate a transportation facility. This paragraph applies to any contract or agreement in effect on August 9, 2001. For the purposes of this paragraph, "utility" includes the owner of the utility facilities and any person other than the owner who is responsible for the cost of maintenance, repair or replacement of the facilities.

B. Notwithstanding subsection A, paragraph 2 of this section, the department may purchase rights-of-way for projects identified in the long-range statewide transportation plan pursuant to sections 28-307 and 28-506.

§ 28-7001 Right-of-way purchase; financing

A. If the department elects to enter into a contract or agreement for the purchase of right-of-way and in addition to other methods of acquisition prescribed by law, at the discretion of the property owner, the department may enter into a contract or agreement for the purchase of right-of-way utilizing one or more of the following financing methods:

1. Cash to mortgage purchase agreement.

2. Seller financing.

3. Assumption of existing financing.

4. Lease-purchase agreement.

5. Any other term purchase agreement.

B. A contract or agreement authorized by section 28-7000 or this section shall not contain a financing method that would result in the creation of a debt pursuant to article IX, section 5, Constitution of Arizona.

C. The department may negotiate regarding the terms of purchase and enter into a contract with the property owner regarding the financing and terms of purchase. The contract between the department and the property owner regarding financing and the terms of purchase is binding in the event of condemnation.

§ 28-7002 Right-of-way acquisitions; applicability; limitation

A. Sections 28-7000 and 28-7001 relating to right-of-way acquisitions apply only to advance acquisition of rights-of-way and do not apply to any other means of right-of-way acquisition.

B. The department shall not initiate financing as prescribed in sections 28-7000 and 28-7001 after a condemnation action is filed.

§ 28-7003 Construction program account transfers

The director of the department of transportation may certify to the director of the department of administration the transfer of amounts from one construction program account to another construction program account only as follows:

1. Construction program items involving urban projects constructed with federal urban monies and state highway monies may be transferred to other urban projects.

2. If a construction program item or account in the first year of its adopted long-range construction program does not contain sufficient monies for awarding or completing a contract, additional monies may be transferred to it from other construction program items from either:

(a) A construction program item or account in which there are excess monies after the completion of the work and there is a complete discharge and satisfaction of all liabilities incurred on that account.

(b) A construction program item or account with a priority not falling within the first year of its adopted long-range construction program.

§ 28-7004 Payroll preparation

The department of administration shall prepare or delegate the duty of preparing the payroll of officers and employees of the department of transportation.

§ 28-7005 Revolving account; small expenses

A. The director of the department of administration may issue a warrant in an amount of not more than five hundred thousand dollars on claims properly certified by the department of transportation to establish a revolving account to facilitate only the payment of small expenditures, payrolls and expense accounts in connection with the operation of the department of transportation. Claims authorized by this subsection shall be paid from any monies appropriated to the department of transportation.

B. If the director of the department of administration has issued a warrant pursuant to this section, the director of the department of administration shall not issue another like warrant until an itemized verified statement and proper receipts and vouchers showing in detail the expenditure and distribution of the amount previously advanced for the revolving account under this section and the account to which each item of the statement shall be charged is filed with the director of the department of administration. On receipt of the statement, the director of the department of administration shall charge each item to the proper account and may issue a further warrant, on claims, to replenish the revolving account, but the total shall not exceed five hundred thousand dollars at any time.

§ 28-7006 Department fleet operations fund; definitions

A. The department fleet operations fund is established that consists of:

1. Monies appropriated by the legislature to the department for the purchase, maintenance, service or repair of equipment and consumable material, including monies appropriated to pay salaries, wages and benefits of department employees engaged in maintaining, servicing or repairing equipment or supervising these activities.

2. Monies received by the department from the sale of equipment and consumable material at public auction or by other disposal methods provided by law.

3. Monies credited and transferred to the fund pursuant to subsection C of this section for using consumable material and using or servicing equipment.

4. Monies received from insurance recoveries for equipment and consumable material losses.

5. Monies received from donations.

6. Monies received from the United States as reimbursement to provide aid for the use of equipment and consumable materials in constructing, maintaining and repairing transportation improvements.

7. Earnings on any monies in the department fleet operations fund that are invested pursuant to section 28-6996.

B. The director shall establish and from time to time modify or adjust the equipment rental schedule and the other fee schedule to reflect all current costs of owning, maintaining, operating and servicing equipment, including the costs of labor and supervision and consumable materials used in the equipment.

C. Department equipment shall not be used for any purpose and the department shall not incur an expense in maintaining, servicing or repairing equipment unless within thirty days after the end of any month in which equipment is used or the expenses are incurred both:

1. The appropriate project, program, section, division, activity or budget unit is charged for the use pursuant to the equipment rental schedule or other fee schedule.

2. The department fleet operations fund is credited and the monies are transferred to that fund.

D. Monies in the department fleet operations fund are subject to legislative appropriation and shall be spent only to:

1. Purchase equipment and consumable materials.

2. Rent equipment.

3. Pay salaries, wages and employee related costs and benefits and operating expenses for employees engaged in repairing, maintaining or servicing equipment or administering these activities.

4. Pay salaries, wages, employee related costs and benefits and the operating expenses of the department motor pool.

E. Monies in the department fleet operations fund are subject to legislative appropriation and shall be spent in conformity with the laws governing state financial operations, except that balances remaining at the end of the fiscal year do not revert to the state general fund or the state highway fund.

F. For the purposes of this section:

1. "Consumable material" means motor vehicle fuel, lubricants, tires, batteries, replacement or repair parts, automotive accessories and any other necessary article of supply or material consumed in operating, improving, repairing or maintaining equipment.

2. "Equipment" means any automobile, truck, tractor, trailer, motor driven vehicle, aircraft or other piece of equipment used by the department in enforcing traffic laws and in administering, maintaining, constructing or repairing the state transportation system and any necessary shop tool or device used in improving, repairing or maintaining equipment.

3. "Equipment rental schedule" means the list of rental rates for each piece of rental equipment owned or rented by the department and used as the basis of reimbursing the department fleet operations fund for using any equipment owned by the department.

4. "Other fee schedule" means the list of all costs and expenses that is used as the basis of reimbursing the department fleet operations fund for an expenditure for labor or consumable material that is not reflected in the equipment rental schedule but which cost or expense is nevertheless incurred by the department in maintaining, servicing or repairing equipment.

§ 28-7007 State highway fund; claims; payment

Monies in the state highway fund shall be paid only on an itemized and verified claim by the director of the department of transportation or any other bonded agent authorized by the director of the department of transportation. A claim shall be presented to and filed with the director of the department of administration disclosing the authority for the claim. If the director of the department of administration approves the claim, the director of the department of administration shall charge it to the proper account and pay the claim in accordance with the provisions of section 35-185 and shall charge the claim to the proper account.

§ 28-7008 State highway fund reimbursement; nonhighway costs

A. To limit the expenditures of monies in the state highway fund established by section 28-6991, pursuant to article IX, section 14, Constitution of Arizona, to highway purposes, the department of transportation shall:

1. Maintain a strict account of all costs incurred by each function of the department. The department of transportation shall determine and allocate the costs between highway and nonhighway functions, including the costs of wages, salaries, materials, supplies and equipment or facility use.

2. Concurrently with or immediately after the determination of all of the costs prescribed in paragraph 1, certify to the department of administration the full amount of all of the costs relating to nonhighway functions.

B. On receiving the certification by the department of transportation pursuant to subsection A of this section, the department of administration shall authorize and transfer the full amount of the nonhighway costs from any monies appropriated to the department of transportation from nonhighway user revenues to the state highway fund.

§ 28-7009 Statewide transportation acceleration needs account; establishment; definition

A. The statewide transportation acceleration needs account is established as a separate account in the state highway fund. The account consists of all of the following, except that the source of monies in the fund shall not be a consent agreement or any type of negotiated settlement by any state or local agency or any donation made in place of a consent agreement or any type of settlement:

1. Monies appropriated by the legislature.

2. Monies designated for deposit in the account by the transportation board, a state agency or a political subdivision.

3. Monies received from the United States government for the purpose of accelerating transportation projects.

4. Monies received from political subdivisions, Indian tribes or this state or its agencies for the purpose of accelerating transportation projects.

5. Interest and other income received from investing monies in the account.

6. Gifts, grants, donations or other amounts received from any public or private source for deposit in the account for the purpose of accelerating transportation projects.

B. On notice from the transportation board, the state treasurer shall invest and divest monies in the statewide transportation acceleration needs account as provided by section 35-313, and monies earned from investment shall be credited to the account.

C. The transportation board may establish any subaccount in the statewide transportation acceleration needs account that the board determines is necessary or appropriate to carry out the purposes of this section.

D. If a governmental entity or a private person deposits monies in the statewide transportation acceleration needs account for acceleration of a specific project and the appropriate regional planning agency or council of governments, in cooperation with the transportation board, approves the project, the board shall designate the monies deposited by the governmental entity or private person solely for the project for which the monies are deposited.

E. Notwithstanding section 28-6993, and any other agreements entered into by the department of transportation for the distribution and expenditure of monies from the state highway fund, the transportation board shall not approve any expenditures from the statewide transportation acceleration needs account unless the expenditure is made in accordance with this section and is for the construction or reconstruction of freeways, state highways, bridges and interchanges that are contained in the regional transportation plan of a county or the department's long-range statewide transportation plan pursuant to section 28-506. For the purposes of this subsection, a regional transportation plan is a twenty-year comprehensive, performance-based, multimodal and coordinated regional transportation plan that is approved for the county as provided by law and as amended or otherwise modified.

F. Monies in the statewide transportation acceleration needs account shall be used only to pay for the following costs of a transportation project approved pursuant to this section:

1. Except as provided in section 28-7010:

(a) Materials and labor.

(b) Acquisition of rights-of-way for highway needs.

(c) Design and other engineering services that are within the scope of engineering practice as provided in title 32, chapter 1.

(d) Other directly related costs approved by the transportation board.

2. Beginning in fiscal year 2006-2007, interest costs resulting from bonds, loans, notes or other obligations issued or incurred or advances made by or on behalf of a city, town or county.

G. Monies in the statewide transportation acceleration needs account that are appropriated by the legislature and any interest earnings shall be allocated as follows:

1. For a county with a population of at least one million two hundred thousand persons for the area included in the regional planning agency's transportation improvement plan, sixty percent.

2. For a county with a population of more than five hundred thousand persons but less than one million two hundred thousand persons for the area included in the regional planning agency's transportation improvement plan, sixteen percent.

3. For all other counties, twenty-four percent.

H. The regional planning agency in a county designated as a transportation management area shall establish a process for the review and approval of transportation projects eligible to receive monies from the statewide transportation acceleration needs account. As part of its request to the transportation board for monies, the regional planning agency shall ensure and submit evidence satisfactory to the board that any project costs not eligible for monies from the statewide transportation acceleration needs account are available and dedicated to the project. In all other counties, the department, in cooperation with the metropolitan planning organization or the council of governments that has the authority to approve transportation projects for the county, shall develop requests for expenditure of monies from the statewide transportation acceleration needs account. As part of the request to the transportation board for monies, the metropolitan planning organization or the council of governments for the department shall submit evidence satisfactory to the board that any project costs not eligible for monies from the statewide transportation acceleration needs account are available and dedicated to the project.

I. On receipt of a request for monies from the statewide transportation acceleration needs account, the transportation board shall place the request on the agenda for the next regular business meeting of the board. The board shall review the request and, in cooperation with the regional planning agency, the metropolitan planning organization or the council of governments, approve the request or further modify the request before approval.

J. The transportation board shall not approve the release of any monies from the statewide transportation acceleration needs account for a transportation project unless the board verifies that all costs related to construction of the project are covered.

K. A city, town or county may use monies that are in the statewide transportation acceleration needs account or any subaccount of the statewide transportation acceleration needs account, including monies that were previously approved by the board for a project and that were not specifically designated for interest costs for that project, for interest costs only if all of the following occur:

1. The regional planning agency in a county designated as a transportation management area recommends that the monies be spent for interest costs.

2. The board approves the regional planning agency's recommendation described in paragraph 1 of this subsection.

3. The city, town or county complies with this section.

L. Monies in the statewide transportation acceleration needs account shall be used to supplement, not supplant, funding that would otherwise be made available for projects.

M. A regional planning agency that receives monies from the statewide transportation acceleration needs account shall report on or before December 15 of each year to the senate and house of representatives transportation committees on approved projects and amounts expended for those projects.

N. For the purposes of this section, "project" means the construction or reconstruction of a specific portion of a freeway or state highway or a bridge or interchange or a portion of a bridge or interchange that is constructed at a single location.

§ 28-7010 Transportation acceleration interest reimbursement account

A. The transportation acceleration interest reimbursement account is established as a separate subaccount of the statewide transportation acceleration needs account established by section 28-7009. The subaccount may include:

1. Legislative appropriations.

2. Monies designated for deposit in the account by the transportation board, a state agency or a political subdivision of this state.

3. Monies received from the United States government for the purpose of reimbursing interest costs on transportation projects.

4. Monies received from an Indian tribe, this state, a state agency or a political subdivision of this state for the purpose of reimbursing interest costs on transportation projects.

5. Interest and other income received from investing monies in the account.

6. Gifts, grants, donations or other amounts received from any public source for deposit in the account for the purpose of reimbursing interest costs on transportation projects.

B. On notice from the transportation board, the state treasurer shall invest and divest monies, as provided by section 35-313, in the transportation acceleration interest reimbursement account and monies earned from investment shall be credited to the account.

C. The transportation board may establish any subaccount in the transportation acceleration interest reimbursement account that the board determines is necessary or appropriate to carry out the purposes of this section.

D. When a governmental entity deposits monies in the transportation acceleration interest reimbursement account for a specific project and the transportation board approves the project, the board shall designate the monies deposited by the governmental entity solely for the project for which the monies are deposited.

E. The board may approve the reimbursement of interest costs for the acceleration of a transportation project from the transportation acceleration interest reimbursement account and as prescribed in this section.

F. The regional planning agency in a county that is designated as a transportation management area shall establish a process for the review and approval of reimbursement of interest costs from the statewide transportation acceleration needs account. If the eligibility of the interest costs reimbursement is approved, the project may be considered by the state transportation board with other eligible acceleration projects for statewide transportation acceleration needs account funding. In all other counties, the department, in cooperation with the metropolitan planning organization or the council of governments that has the authority to approve transportation projects for the county, shall establish a process for the review and approval of reimbursement of interest costs from the statewide transportation acceleration needs account. If the eligibility of the interest costs reimbursement is approved, the project may be considered by the state transportation board with other eligible acceleration projects for statewide transportation acceleration needs account funding.

G. The board shall review and approve the request as prescribed in section 28-7009, subsections I and J.

H. To be eligible for reimbursement of interest costs pursuant to this section, the interest costs must result from bonds, loans or advances issued to, by or on behalf of a city or county that enters into an agreement with at least one other city or county, the department and the regional planning agency after January 1, 2007 for the acceleration of a transportation project that is contained in the regional transportation plan of a county or the department's long-range statewide transportation plan pursuant to section 28-506.

§ 28-7011 Statewide infrastructure trust fund; definition

A. The statewide infrastructure trust fund is established. The state treasurer shall administer the fund. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 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. The fund consists of the following:

1. Monies appropriated by the legislature.

2. Any nonfederal gifts, grants, donations or other monies received by the state treasurer from any public or private source for transportation projects.

B. The monies in the fund shall be used to fund any phase of development or construction of transportation projects in the current fiscal year or next fiscal year.

C. Before any expenditure is made from the fund, the state treasurer and the department shall submit an expenditure plan for review to the joint committee on capital review.

D. For the purposes of this section, "transportation project" means any project that constructs a new federal or state highway or makes improvements to any existing federal or state highway.

Article 5 State Highways and Routes

§ 28-7041 State highways and routes defined

A. The state highways, to be known as state routes, consist of the highways declared before August 12, 1927 to be state highways, under authority of law, that the board, after receipt of a recommendation from the director, may add to, abandon or change. If the board proceeds contrary to the recommendations of the director, it shall file a written report with the governor stating the reasons for the action.

B. The state highways consist of the parts of the state routes designated and accepted as state highways by the board. A highway that has not been designated as a state route shall not become a state highway and any portion of a state route shall not become a state highway until it has been specifically designated and accepted by the board as a state highway and ordered to be constructed and improved.

C. All highways, roads or streets that have been constructed, laid out, opened, established or maintained for ten years or more by the state or an agency or political subdivision of the state before January 1, 1960 and that have been used continuously by the public as thoroughfares for free travel and passage for ten years or more are declared public highways, regardless of an error, defect or omission in the proceeding or failure to act to establish those highways, roads or streets or in recording the proceedings.

§ 28-7042 Width of public highways; exception

A. Highways that were constructed, laid out, opened or established before August 12, 1927 as public highways by the territory or state or by a board of supervisors or political subdivision of this state and that have been used continuously by the public as thoroughfares for free travel and passage for two years or more, regardless of an error, defect or omission in the proceeding to establish the highways or in recording the proceedings, and highways established pursuant to law are declared public highways sixty-six feet wide, unless the width of the highways is otherwise specified.

B. Except as specifically provided for in this title, this section does not apply to a portion of a public highway within the limits of an incorporated city or town that has a population of more than two thousand five hundred persons according to the most recent United States decennial census or the most recent special census as provided in section 28-6532.

§ 28-7043 Designation of state route as state highway

A. At least two weeks before the designation and acceptance by the transportation board of a state route or portion of a state route as a state highway, the transportation board shall give notice to the board of supervisors of the county in which the proposed highway is located of the intention of the transportation board to consider the designation.

B. The board of supervisors may:

1. Appear before the transportation board and be heard on the proposal.

2. Petition the transportation board to take over and designate a state route as a state highway.

C. Until designated and accepted as state highways, all state routes are county highways and shall be constructed, improved and maintained as county highways, except as otherwise provided in this title.

D. A part of a state route shall not be taken over or designated as a state highway until monies for its improvement are provided in the budget of the department. If part of a state route is designated and accepted by the transportation board as a state highway, the department shall maintain the highway.

§ 28-7044 Signs

The director shall:

1. Prescribe standard board and road signs or other devices and provide a uniform system of marking and signaling on state routes and state highways that correlate with and as far as possible conform to the system approved by the American association of state highway officials.

2. Regulate the use of advertising signboards and road signs on state roads or state highways.

§ 28-7045 Director; state highway and route use; rules

The director shall exercise complete and exclusive operational control and jurisdiction over the use of state highways and routes and adopt rules regarding the use as the director deems necessary to prevent the abuse and unauthorized use of these highways and routes.

§ 28-7046 Opening, altering or vacating highway; review of order

A. If the director or the board desires to establish, open, relocate, alter, vacate or abandon a state highway or a portion of a state highway, the director shall make and deliver a written report to the board describing the highway or portion of the highway to be affected. If the board decides that the public convenience will be served, it shall enter a resolution on its minutes approving the proposed action and authorizing the director to proceed and to acquire any property for the action by condemnation or otherwise.

B. The superior court may review by certiorari the action of the board establishing, opening, relocating, altering, vacating or abandoning state highways.

§ 28-7047 Mountain preserve; limitation; definition

A. This state or a political subdivision of this state shall not construct, lay out, open or establish a street, road or highway through a designated mountain preserve unless the construction of the street, road or highway is approved by a majority of the electors of a charter city voting on the matter.

B. This section does not apply to a state route that is proposed to be constructed within a designated mountain preserve and that is in the state highway system on August 15, 1990.

C. For the purposes of this section, "designated mountain preserve" means individual parcels of real property that are within a charter city, that have been designated as a whole as a mountain preserve and that have been accumulated or designated through any of the following methods:

1. Real property that is owned by a charter city and that is located within a generally recognized mountain preserve area.

2. Real property purchased by a charter city in whole or in part for the purpose of including the real property within a mountain preserve with the proceeds of general obligation bonds issued by the charter city.

3. Real property designated by ordinance to be a part of a mountain preserve by the city council of a charter city.

§ 28-7048 Lease of areas above and below highways; exceptions

A. The director may lease to any public agency, as defined in section 11-951, or to a private person or entity the use of areas above or below state highways, subject to reservations, restrictions and conditions the director deems necessary to assure adequate protection of the safety and integrity of highway facilities and to secure the safety of motorists. Before entering into the lease, the director shall:

1. Determine that the proposed use by a lessee is not in conflict with the zoning regulations of the local government concerned.

2. Make the lease pursuant to procedures prescribed by the board.

3. Make a lease with a private person or entity only after competitive bidding.

B. The transportation board may reject any or all bids or call for additional bids if in the opinion of the board the bids submitted are not in the best interest of this state. The board shall not accept a bid that does not yield at least a fair rental value for the property to the state highway fund.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, the revenues derived from the leases in the state highway fund.

D. The authority granted to the director by this section does not include the right to lease public rights-of-way to public service corporations, and this section does not affect any rights of public service corporations to use public rights-of-way or to obtain permits or easements associated with public uses of public rights-of-way.

E. This section does not apply to the use of highway rights-of-way for telecommunication facility installation pursuant to article 14 of this chapter.

§ 28-7049 Classification of streets that connect highways and routes

A. If the streets of an incorporated city or town form necessary or convenient links for the connection of sections of state highways or state routes, or for carrying the state highways or state routes through the city or town, the director and the governing body of the city or town, in the case of state highways, or the board of supervisors and the governing body of the city or town, in the case of state routes, may agree that the streets are deemed state highways or county highways, respectively.

B. The agreement shall provide for maintenance of the streets classified pursuant to this section.

§ 28-7050 Federal aid secondary highways; definition

A. On petition of the board of supervisors of a county and if the board decides that the public convenience is served and the designation will not interfere with the completion and upkeep of the present county highway system, the board may request that the federal highway administration place a road on the county federal aid secondary system.

B. Federal aid secondary county highways shall be constructed, improved, repaired and maintained by the county with the department acting as an agent for the counties for the receipt of federal aid monies.

C. The department shall pay costs of construction, improvement, repair and maintenance of federal aid secondary state highways.

D. Matching monies for county federal aid secondary projects are the responsibility of the county, and matching monies for state federal aid secondary projects are the responsibility of the department.

E. Any rural road in this state may be designated a federal aid secondary road by approval of the board with the concurrence of the federal highway administration.

F. For the purposes of this section, "secondary roads" means roads having secondary order of significance to primary roads that connect centers of population.

§ 28-7051 Roadside parks; historical markers

A. The department may construct, maintain and operate roadside parks on highway property for the use and benefit of the public.

B. The department may construct and erect signs and plaques marking points of historical importance on highway property. The signs and plaques shall not be erected unless they have been certified as reasonably authentic and historically correct by the director of the Arizona state library, archives and public records.

§ 28-7052 Action concerning lands taken or damaged in construction of highway or airport; statute of limitations

An action brought to recover possession of or to clear title to real property claimed by this state or by a political subdivision of this state as a public highway or airport or an action brought to recover compensation or damage for property taken or damaged in or for the construction of a public highway or airport shall be commenced within two years after the cause of action has accrued and not afterward.

§ 28-7053 Misuse of public highway or airport; violation; classification; injunction; definition

A. A person who commits or causes to be committed any of the following acts is guilty of a petty offense:

1. Places or maintains an encroachment or obstruction on, makes any use of or otherwise occupies a public highway or airport of this state or any of its political subdivisions for any purpose other than for authorized public travel, communication, transportation or transmission, except as otherwise provided in this section.

2. Places or maintains an encroachment or obstruction on, uses, occupies, damages or otherwise interferes with a public highway, airport or public bridge, causeway, viaduct, trestle or dam, unless either:

(a) Authorized by the director, if it is a state highway or structure or airport facility.

(b) Authorized by the governing body of the political subdivision in which the act is committed, if it is not a state highway or structure or airport facility.

3. Knowingly molests or destroys any part, projection, structure, appurtenance or accessory of a public highway or airport or destroys or otherwise interferes with a drainage ditch constructed for the protection of a public highway or airport or a dike, ditch, levee or jetty or an embankment appurtenant to a drainage ditch constructed for the protection of a public highway or airport.

4. Knowingly destroys or interferes with a ford, dip, culvert or crossing of a creek, gulch, river or stream by digging away the banks or by damming, deepening or widening a creek, gulch, river or stream to divert waters on the public highway or airport or to cause injury or damage to the public highway or airport by flooding or otherwise.

5. Knowingly places or maintains a vehicle, aircraft or structure parked or placed wholly or partly within a public highway, runway or taxiway specifically for the purpose of selling the vehicle, aircraft or structure or of selling or specifically advertising the sale of, at any location, an article, service or thing.

6. Knowingly stores, services, repairs or otherwise works on a vehicle wholly or partly within a highway other than on a vehicle that is temporarily disabled.

7. Knowingly removes, damages or destroys a tree or shrub standing on a highway right-of-way.

8. Knowingly obstructs or injures a public highway, runway or taxiway by causing or permitting flow or seepage of water under the person's control to escape onto the highway, runway or taxiway.

B. Each day of violation of any provision of subsection A of this section is a separate violation on failure to remove or to diligently prosecute the removal of an encroachment after notice under section 28-7054. Each encroachment shall be treated as a separate violation.

C. In addition to the penalties prescribed by this section, an act in violation of this section is a public nuisance and may be abated by an injunction. A person who commits the act is subject to an action for damages by this state brought by the attorney general or the county attorney of the county in which the act is committed on direction of the attorney general.

D. This section does not apply to:

1. Department personnel or agents performing normal construction and maintenance functions.

2. A person who has prior authorization in writing from the director to perform any of the acts referred to in this section.

E. For the purposes of this section, "encroachment" includes a structure or object of any kind or character that is placed in, under or over a portion of the public highway or airport.

§ 28-7054 Highway or airport encroachments; additional remedies

A. If an encroachment is a fixed advertising device or a movable object, notice for the removal of the encroachment may be given to the occupant or owner of the reversionary interest of the land or person causing or owning the encroachment by personal service or by registered or certified mail at the person's place of residence if known, and if unknown, notice may be posted on the encroachment.

B. If it is a highway encroachment, the notice shall specify the width of the highway and the place and extent of the encroachment and shall require the removal of the encroachment within thirty days thereafter if the encroachment is a fixed advertising device and within fifteen days after notice is given or posted if the encroachment is a movable object.

C. If it is an airport encroachment, the notice shall specify the location of the runway or taxiway and the place and extent of the encroachment and shall require the removal of the encroachment within thirty days thereafter if the encroachment is a movable object.

D. If notice is given under this section and if the removal is not commenced within the required period or after being commenced is not diligently prosecuted, the department or the governing body of the appropriate political subdivision if it is not a state highway or airport facility may remove the encroachment without commencing any action. The person responsible for the encroachment shall pay the cost of removal, and an action may be filed in the superior court in the county where the encroachment is made or exists and where the removal is manifested to collect reimbursement of the necessary cost of removal to the subdivision of this state that has custody and control of the highway or airport facility by law.

E. The procedure provided by this section is not exclusive and does not prohibit the use of either:

1. Any other remedy provided by law to protect a highway or airport facility.

2. The authority of officers of the department of public safety to cause the immediate removal of obstructions, encroachments, vehicles or aircraft.

§ 28-7055 Leaving gate open on fenced land; classification

A. A person traveling on a road or highway that is open for use and used by the public, that passes into or over any part of an enclosed field or pasture of another person and that has a gate or bars across the road or highway at the point of entrance to or exit from the enclosed field or pasture shall securely close the gate or bars after opening them.

B. A person who violates this section is guilty of a petty offense.

§ 28-7056 Dumping trash on highways or airports; classification

A. A person who dumps, deposits, places, throws or leaves refuse, rubbish, debris, filthy or odoriferous objects, substances or other trash on a state or county highway, road, public thoroughfare, public airport, the right-of-way to a state or county highway, road, public thoroughfare or public airport or within twenty yards of a state or county highway, road, public thoroughfare or public airport is guilty of a class 3 misdemeanor.

B. If a class 3 misdemeanor is committed as provided in subsection A from a motor vehicle or aircraft, the driver of the vehicle or pilot of the aircraft is presumed to be the offender.

C. The director, the board of supervisors of each county and the governing body of each city or town shall cause signs to be erected at suitable intervals on highways, airports and public thoroughfares in their respective areas of authority, including public parks, informing the public that it is unlawful to commit the acts prohibited by subsection A.

D. The highway patrol, the sheriff's office of each county and the peace officers of each city or town shall enforce this section.

§ 28-7057 Publication of law relating to dumping trash on highways

The director shall cause to be printed and distributed with each license plate and each original or renewal of a driver license material relating to section 28-7056 as the director deems advisable.

§ 28-7058 Privatization of rest areas; state certified rest area program; definitions

A. The department may:

1. Privatize any rest area constructed on or adjacent to state highways in this state on or after September 26, 2008. Any agreement between the department and a person for privatization under this section shall include a provision that:

(a) Prohibits the person from charging any fees for the use of a lavatory.

(b) Requires the person to provide an adequate outdoor picnic area to be available to the public at no charge.

2. Establish a state certified rest area program that meets the requirements established by the federal highway administration pursuant to Public Law 109-59, section 1310.

3. Contract with a third party or other government entity to certify and recertify rest areas for the state certified rest area program.

B. For the purposes of this section:

1. "Population" means the population determined in the most recent United States decennial census or in the most recent special census as provided in section 28-6532.

2. "State certified rest area" means a privately owned facility that is both of the following:

(a) Certified by this state or a third party to meet the requirements established by the federal highway administration pursuant to Public Law 109-59, section 1310 and at a minimum offers all of the following:

(i) Fuel and food to the public.

(ii) Twenty-four hour access to restrooms.

(iii) Parking for automobiles and heavy trucks.

(b) Located outside of the public right-of-way and outside of an urbanized area with a population of one hundred thousand or more persons.

3. "Urbanized area" means an urbanized area as defined in the decennial census by the United States bureau of the census.

§ 28-7059 Rest area sponsorship sign program; revenue sharing agreement

A. The department may establish a rest area sponsorship sign program. Notwithstanding sections 28-648, 28-7048 and 28-7053, the department may contract with a third party to install, maintain and replace rest area sponsorship signs at rest areas located in the public right-of-way of the interstate or state highway system. The third party shall agree in the contract to lease sponsor recognition space and to furnish, install, maintain and replace signs for the benefit of business or organizational sponsors.

B. Costs incurred under the program shall be paid under agreements negotiated between the third party and the business or organizational sponsors.

C. The department may enter into a revenue sharing agreement with the third party. The department shall deposit, pursuant to sections 35-146 and 35-147, all monies received from the revenue sharing agreement in a subaccount of the state highway fund for the purpose of rest area maintenance, operations and repairs.

Article 6 Land Purchase, Sale and Condemnation

§ 28-7091 Definition of market value

For the purposes of this article, "market value" means the most probable price estimated in terms of cash in United States dollars or comparable market financial arrangements that the property would bring if exposed for sale in the open market, with reasonable time allowed in which to find a purchaser, buying with knowledge of all of the uses and purposes to which it was adapted and for which it was capable.

§ 28-7092 Land acquisition; transportation purposes

A. In the name of this state, the director may acquire, either in fee or a lesser estate or interest, real property that the director considers necessary for transportation purposes by purchase, donation, dedication, exchange, condemnation or other lawful means with monies from the state highway fund or any other monies appropriated to the department.

B. Property acquired for transportation purposes includes land or any interest in the land necessary for:

1. Rights-of-way, campsites, roadside rest areas, water or material needed in the construction, improvement or maintenance of state highways, airports, runways, taxiways or other property under the jurisdiction, possession or control of the department.

2. Spoil banks, rock quarries, gravel pits, sand or earth borrow pits.

3. Rights-of-way to the place where material required in the construction, improvement or maintenance of state highways, airports, runways or taxiways may be located.

4. Offices, shops, maintenance camps, storage yards, inspection or weighing stations or radio transmitter or repeater stations.

5. Rights-of-way for access to any location prescribed in this subsection.

6. Relocation of existing utility or irrigation facilities and rights-of-way that are required to be relocated to facilitate a transportation purpose.

7. Legal access to property acquired by the director through adjacent property.

8. Environmental mitigation or banking credits, if necessary to satisfy the requirements of federal or state environmental laws or regulations or requirements to obtain a permit, grant or right to use property from a federal or state agency. For the purposes of this paragraph:

(a) "Banking credits" means payment in lieu of costs of acquisition, preservation or maintenance of habitat or other environmentally protected locations.

(b) "Environmental mitigation" means replacement of habitat or other environmentally protected locations that are taken for or affected by a transportation facility.

9. Private legal access to property when the access has been severed as a result of a taking for transportation purposes.

C. If part of a parcel of land is to be taken for transportation purposes and the remainder is to be left in such shape or condition as to be of little value to its owner or to give rise to claims or litigation concerning severance or other damage, the director may acquire the whole parcel by any means provided in subsection A of this section, and the remainder may be sold, exchanged for other property needed for transportation purposes or used for rights-of-way for relocated utility or irrigation facilities.

§ 28-7093 Eminent domain

A. This state may exercise the right of eminent domain for transportation purposes, and the court in which the action is pending shall give the action precedence over other civil actions.

B. If property that is devoted to or held for some public use other than existing street, highway or airport uses for which the power of eminent domain might be exercised is to be taken for such transportation purposes and if the person or agency in charge of the public use consents, the director may purchase or exercise the right of eminent domain to acquire real property or an interest in the property to be exchanged with the person or agency for the real property that is to be taken for transportation purposes.

C. This article does not limit the authorization to the department to acquire, other than by exchange, property for these purposes or to acquire directly by condemnation, purchase or otherwise, without such exchange, property held for some other public use by any lawful means provided in section 28-7092.

§ 28-7094 Property acquisition; future needs; highway properties fund; rental revenue

A. The authority provided by this article to acquire real property for transportation purposes includes authority to acquire for future needs if the board has an adopted and approved state route plan or airport site location showing a reasonable need for the property.

B. The director may:

1. Except as provided in paragraphs 3 and 4 of this subsection, lease at fair rental value or for fair consideration to allow the use of any land, improvement or portion of land or improvement that is held for transportation purposes and that is not presently needed for these purposes on terms and conditions determined by the director.

2. Maintain and care for the property described in paragraph 1 of this subsection to secure rent from the property on terms consistent with this article.

3. If used for a public purpose, allow local agencies to use and maintain any land, improvement or portion of land or improvement that is held for transportation purposes and that is not presently needed for these purposes at fair rental value and on other terms and conditions determined by the director. The director may reduce the fair rental value by the costs of the maintenance of the land or improvement.

4. If used for a public purpose, lease to nonprofit organizations, state agencies or local agencies any historic property that is held for transportation purposes and that is not presently needed for these purposes at fair rental value and on other terms and conditions determined by the director. The director may reduce the fair rental value by the costs of the maintenance of the land or improvement.

C. The highway properties fund is established. The director shall deposit, pursuant to sections 35-146 and 35-147, rents received from property acquired in the state highway fund established by section 28-6991, except that twenty-four percent of all rents received shall be deposited in the highway properties fund. Net income received from rentals under this section shall be credited to the budgetary item from which the property was acquired.

D. If the director determines that any rental revenue collected under this section represents overpayment or payment in duplicate, the director may authorize the refund of the overpayment or payment in duplicate from the highway properties fund and the state highway fund established by section 28-6991.

E. Not later than November 1 next following the close of any fiscal year, the department of administration shall pay the rents deposited in the highway properties fund to the county treasurer in the county in which the real property is situated. The director of the department of transportation shall certify to the department of administration the amount of the rentals attributable to each county and shall notify each county of the rental and location of each piece of rental property for which rents are deposited in the fund.

F. The county treasurer shall distribute any payment received by the county treasurer pursuant to this section to the county, to each revenue district for which the county assesses and collects real property taxes or assessments and to every other taxing agency within the county in which the property is situated. The amount distributable to the county and each such revenue district or other taxing agency shall be proportionate to the ratio that the amount of the taxes and assessments of each on similar real property similarly situated within that part of the county embracing the smallest in area of the revenue districts or other taxing agencies other than the county, levied for the fiscal year next preceding, bears to the combined amount of the taxes and assessments of all such districts and agencies, including the county, on such property levied for that year. The county treasurer shall determine and certify the amounts distributable to the board of supervisors, and the board shall order the distribution.

G. Any monies distributed pursuant to this section to any county, revenue district or other taxing agency shall be deposited to the credit of the same fund as any taxes or assessments on any taxable similar real property similarly situated. If a county receives a payment pursuant to this section of $25 or less for any parcel of leased property, all of the payment shall be distributed to the county for deposit in the county general fund.

H. The respective jurisdictions may spend the monies received by them under this section for any proper public purpose not prohibited by the state constitution.

§ 28-7095 Conveyance of property not needed for transportation purposes

A. The director may dispose of real property or any right, title or interest in the real property if the director determines that it is not needed or used for transportation purposes. After the establishment, laying out, substantial completion of a transportation improvement or abolishment of a transportation improvement by formal action of the transportation board, the director may convey the real property or any interest in the real property that was acquired pursuant to this article and that the director determines is not necessary for state transportation purposes.

B. Except as provided in section 28-7099, the director may convey the real property described in subsection A of this section to an agency of the federal government, this state or a county, city or town of this state without a public sale if the director considers the conveyance to be in the public interest and if the real property is to be used for such a specific public purpose. If the property is not used for a highway purpose, the agency shall pay the department for the conveyance based on an appraisal within twelve months of the date of conveyance establishing the fair market value of the property to be conveyed. If the property conveyed to an agency is to be used for a specific highway purpose, the agency shall reimburse the department for its expenditures for the property. If the property is not used for a highway purpose, the property shall revert to the department. If the director determines any property conveyed under this section is needed by the department for a transportation purpose, the department may acquire the property from the agency at a cost equal to the amount paid by the agency, or the fair market value at the time of the repurchase by the department, whichever is less.

C. The director may grant an easement to a state or local agency for property to be used for a specific highway purpose, on terms and conditions acceptable to the director, for no payment to the department. The agency shall bear all liability that may be attributed to the department for incidents that occur during the period of the easement and the agency shall bear all costs of maintaining the property. If the property is not used for a highway purpose, the department may terminate the easement as to any portion of the property that is not used for a highway purpose. The easement terminates if the director determines that the property is needed by the department for a highway purpose.

D. The director may convey other marketable property to the highest responsible bidder at a public auction or by direct sale after at least thirty days' notice in a newspaper of general circulation in the county in which the property is located. If the director elects to convey property by a direct sale, and receives more than one offer before the termination of the thirty day notice period, the director shall sell the property at public auction. At least one fee appraisal or one in-house appraisal is required for property that is offered to the public. The director shall disclose the amount of the low appraisal before a public auction. If at a public auction the amount of the highest responsible bid does not equal or exceed the amount of the low appraisal, the director shall advise the bidders that the amount of the low appraisal has not been met and shall continue the bidding until the amount of the highest responsible bid equals or exceeds the amount of the low appraisal. If the highest responsible bid does not equal or exceed the amount of the low appraisal, the director shall reject all bids. If the director is unable to sell real property pursuant to this subsection for an amount that equals or exceeds the low appraisal, the director may convey the real property by direct sale after at least thirty days' notice in a newspaper of general circulation in the county in which the real property is located at an amount that is at least equal to eighty per cent of the low appraisal, except that, if the director receives more than one offer before the termination of the thirty day notice period in an amount that is at least equal to eighty per cent of the low appraisal, the director shall sell the real property at public auction.

E. A sale pursuant to subsection B or D of this section may be made for cash or on terms of at least twenty per cent down with the balance payable in annual, biannual, quarterly or monthly installments for ten years, and the unpaid balance bears interest at a rate determined by the director.

F. The director may dispose of property by quitclaim deed to adjacent property owners or the underlying fee owner if the property has no market value or a net value of ten thousand dollars or less without a public auction or thirty day notice period. The director may notify adjacent property owners or the underlying fee owner that the estimated market value of the property may be reduced by up to twenty per cent, that the director may accept an offer between eighty per cent and one hundred per cent of the estimated market value and that, if the adjacent property owner or underlying fee owner is interested in acquiring the property, the adjacent property owner or underlying fee owner must submit a written offer to the director within sixty days after the date of the notice. If the director does not receive an offer within sixty days after the date of the notice, the director may dispose of the property at the best price the director can obtain for the property pursuant to procedures established by the director. For the purposes of this subsection, "net value" means the estimated market value of the property reduced by the cost to sell the property and the cost of continued maintenance of the property.

G. The director may:

1. Execute all deeds or conveyances necessary to convey any real property or interest in the real property to be conveyed under this section and shall sell any real property or interest in real property for the highest responsible bid, the direct sale price or the appraised market value of the property, as applicable.

2. Assess a fee for the costs of preparing and executing any conveyance under this section.

3. Either:

(a) Insert in the deed or conveyance conditions, covenants, exceptions and reservations as the director deems to be in the public interest.

(b) Convey in fee simple absolute.

H. The director shall notify the county assessor and county treasurer of any property disposed of or quitclaimed pursuant to this section within thirty days after the close of escrow. Proper notice includes the legal description of property being conveyed, the name and address of the new property owner and legal description of the conveyed property and the name and address of a person or persons who are identified as the correct recipients of the property tax bill.

I. It is conclusively presumed in favor of any purchaser for value and without notice of any real property or interest in the real property conveyed pursuant to this section that the department acted within its lawful authority in acquiring the property and that the director acted within the director's lawful authority in executing a deed, conveyance or lease authorized by this article.

J. The director may contract with a licensed real estate broker to assist in any disposition of property under this section or pay a commission to a licensed real estate broker whose client completes a purchase of property under this section. The director shall determine the rate of commission paid to the broker. The director may pay the licensed real estate broker from proceeds received under this section unless the broker is the purchaser or lessee or the purchaser is another governmental agency.

§ 28-7096 Appraisal reports; market analyses

A. The director shall justify each acquisition or disposal under this article of real property with an estimated value of more than fifty thousand dollars by at least one appraisal report that is of sufficient scope to document and justify the economic basis for the acquisition or disposal.

B. The director may acquire or dispose of real property valued at fifty thousand dollars or less after the value has been estimated and justified by a market analysis based on comparable sales.

§ 28-7097 Before condition; market value change

In acquiring property for transportation purposes pursuant to this article, when determining the market value of the property to be taken and the market value of the remainder, if any, in the before condition, a decrease or increase in the market value of the real property before the date of valuation caused by the public project for which the property is to be acquired or by the likelihood that the property would be acquired for the project shall be disregarded.

§ 28-7098 Appraisal; condemnation; initial offer

A. Before filing a condemnation action to acquire property for transportation purposes pursuant to this article, the department shall obtain one or more appraisals that estimate the amount of just compensation for the proposed taking and damaging of the property.

B. At least twenty days before filing an action for condemnation of property for transportation purposes pursuant to this article, the department shall deliver to the property owner of record and the sole lessee of record, if applicable, according to the records of the county recorder in the county in which the property is located:

1. A written offer to purchase the property or interest in the property and to pay just compensation for the property or interest in the property and for any compensable damages to any remaining property. The offer must constitute the department's estimate of just compensation.

2. One or more appraisals that support the amount of the proposed compensation.

C. If no lease is recorded or if more than one lease is recorded for the property with the county recorder of the county in which the property is located, at least twenty days before filing an action for condemnation of property or any interest in property, the department shall provide notice of the offer and appraisal to the party having a plain and obvious commercial ownership or operational interest in substantial improvements on the property by posting the notice in plain sight at the property that may be subject to condemnation. If a lessee that is not noted in the record of the county recorder and has a commercial ownership or operational interest in substantial improvements on the property requests a copy of the offer and appraisal the plaintiff shall promptly comply with the request upon presentation of documentation by the lessee of its interest in the property.

D. The department's initial offer of just compensation to the aggregate of those persons with an interest in the property shall not be less than the lowest of the appraisals prepared by or for the department.

E. At any time after the department has filed a condemnation action and on request, it shall promptly provide to any person in interest a copy of the appraisal of the property on which the department's most recent offer is based.

F. The superior court may waive the requirements of subsection A or B if the court determines that the plaintiff will suffer immediate and irreparable harm that outweighs the property owner's or lessee's interest.

§ 28-7099 Property repurchase; right of first refusal

A. If property is acquired for transportation purposes by agreement of the parties before the filing of a condemnation action or by stipulation before judgment in the condemnation action, the deed transferring the property shall provide the original owner or the original owner's heirs with a right of first refusal to acquire the property if the director determines that the property is not needed or used for transportation purposes at a purchase price equal to the current market value of the property.

B. The right of first refusal expires on the earlier of eight years after the date of recording the deed to the property from the original owner or sixty days after the director's determination that the property is not needed or used for transportation purposes. If a deed transferring the property was executed before the effective date of this amendment to this section and provides for the right of repurchase, the right of repurchase expires on the earlier of eight years after the date of recording the deed to the property from the original owner or ninety days after the director's determination that the property is not needed or used for transportation purposes. An original owner or an original owner's heir who has a right to repurchase may elect to use either the right to repurchase or the right of first refusal.

C. If the director determines that the property is not needed or used for transportation purposes, if the deed transferring the property contains a right of first refusal provision and if the right of first refusal has not expired, the director shall offer the property to the original owner or the original owner's heirs at a price determined pursuant to this section. If the original owner or the original owner's heirs accept the offer within sixty days after the director determines that the property is no longer needed or used for transportation purposes, the director shall issue a quitclaim deed to the property on payment of the price. A quitclaim deed issued under this section or any deed or other document evidencing abandonment or sale by the director creates a presumption of compliance with the requirements of this section relating to the right of first refusal of the original owner or the original owner's heirs and is conclusive evidence of meeting the requirements of this section in favor of purchasers and encumbrancers for value and without actual notice. Knowledge of the grantor shall not be imputed to the grantee.

§ 28-7100 Dismissal of condemnation action

Before payment of the compensation and damages awarded the defendants by the court or jury, the director may abandon the proceedings and cause the condemnation action to be dismissed without prejudice, except that the director shall not initiate any eminent domain proceeding with respect to the same property for the same or a related project for at least two years after the date of the verdict or judgment.

§ 28-7101 Condemnation; interest

Interest on a judgment in a condemnation proceeding instituted by the department, including interest that is payable pursuant to section 12-1123, subsection B, shall be calculated for each month or portion of a month that interest is owed and shall be either:

1. The prime rate charged by banks on short-term business loans as determined for publication in the bulletin of the board of governors of the federal reserve system, as of the first day of that month.

2. In the absence of a determination by the board of governors of the federal reserve system, calculated in the same manner based on comparable data as determined by the United States department of commerce, bureau of economic analysis, for publication in "survey of current business".

3. If the prime rate cannot be determined from publication as provided in paragraph 2, determined by a federal agency that is annually designated by the board and that makes and publishes data sufficient to determine the prime rate of interest.

§ 28-7102 Inverse condemnation; resolution of necessity; alternatives; limitations; action; extension

A. If the board adopts a highway corridor and selects a highway alignment for the adopted corridor, within eighteen months of selection of the alignment, the board shall adopt a resolution of necessity declaring that acquisition of one or more parcels of real property is necessary for transportation purposes. If the department has not presented a written offer to the property owner within six months of the adoption of the resolution of necessity, the property owner may file an action in superior court for inverse condemnation to do either of the following:

1. Require the department to take the property and pay compensation for the property.

2. Recover damages from the department for any interference with the possession and use of the property resulting from adoption of the resolution of necessity.

B. The property owner must commence an action under subsection A of this section not later than eighteen months after the date the board adopts the resolution of necessity.

C. The department may commence a condemnation proceeding or the board may rescind the resolution of necessity as a matter of right at any time before the property owner commences an action under this section. If the department commences a condemnation proceeding or if the board rescinds the resolution of necessity before the property owner commences an action under this section, the property owner may not bring an action under this section.

D. After a property owner has commenced an action under this section, the board may rescind the resolution of necessity and the department may abandon the taking of the property only under the same circumstances and subject to the same conditions and consequences as abandonment of a condemnation proceeding.

E. Commencement of an action by a property owner under this section does not affect any authority the department may have to commence or abandon an action pursuant to other sections in this article or title 12, chapter 8, articles 2 and 3 or to take possession of any property.

F. In lieu of an action commenced by a property owner pursuant to subsection A of this section or if the limitations period provided in subsection B has expired, the property owner may file an action in superior court to compel the board, within the time the court deems appropriate, to rescind the resolution of necessity or to compel the department to commence a condemnation proceeding to acquire the property.

G. The time limitations prescribed in this section may be extended by the board if both of the following occur:

1. The department applies to the board for an extension and provides a written explanation of and a justification for the need for an extension.

2. An extension is determined necessary by the board due to an unforeseeable and unpreventable circumstance or event that renders compliance with the prescribed time periods impossible or that causes an extreme hardship in completing the transportation project.

§ 28-7103 Effect of article

The sections in this article do not limit the provisions of any other section, each of which is a distinct and separate authorization.

Article 7 Relocation Assistance

§ 28-7141 Definitions

In this article, unless the context otherwise requires:

1. "Business" means a lawful activity, except a farm operation, that is conducted primarily by or for any of the following:

(a) The purchase, sale, lease and rental of personal and real property and the manufacture, processing or marketing of products, commodities or other personal property.

(b) The sale of services to the public.

(c) By a nonprofit corporation.

(d) Solely for the purposes of section 28-7143, for assisting in the purchase, sale, resale, manufacture, processing or marketing of products, commodities, personal property or services by the erection and maintenance of an outdoor advertising display or displays, whether or not the display or displays are located on the premises on which any of the above activities are conducted.

2. "Comparable replacement dwelling" means a dwelling that is all of the following:

(a) Decent, safe and sanitary.

(b) Adequate in size to accommodate the occupants.

(c) Within the financial means of the displaced person.

(d) Functionally equivalent.

(e) In an area that is not subject to unreasonably adverse environmental conditions.

(f) In a location that is generally not less desirable than the location of the displaced person's dwelling with respect to public utilities, facilities, services and the displaced person's place of employment.

3. "Displaced person":

(a) Means a person who moves from real property or moves the person's personal property from real property either:

(i) As a direct result of a written notice of intent to acquire or the acquisition of the real property in whole or in part for a program or project undertaken by a displacing agency.

(ii) On which the person is a residential or business tenant or conducts a small business, a farm operation or a business as a direct result of rehabilitation, demolition or any other displacing activity as the department may prescribe under a program or project undertaken by a displacing agency in a case in which the displacing agency determines that the displacement is permanent.

(b) Solely for the purposes of sections 28-7142 and 28-7143, means a person who moves from real property or moves the person's personal property from real property either:

(i) As a direct result of a written notice of intent to acquire or the acquisition of other real property, in whole or in part, on which the person conducts a business or farm operation, for a program or project undertaken by a displacing agency.

(ii) As a direct result of rehabilitation, demolition or any other displacing activity as the department may prescribe of other real property on which the person conducts a business or a farm operation, under a program or project undertaken by a displacing agency if the displacing agency determines that the displacement is permanent.

(c) Does not include either:

(i) A person who has been determined either to be unlawfully occupying the displacement dwelling or to have occupied the dwelling for the purpose of obtaining assistance under this article.

(ii) In a case in which the displacing agency acquires property for a program or project, a person, other than a person who was an occupant of the property at the time it was acquired, who occupies the property on a rental basis for a short term or a period subject to termination when the property is needed for the program or project.

4. "Displacing agency" means the department in carrying out a program or project with federal or state financial assistance that causes a person to be a displaced person.

5. "Family" means two or more persons who are living together in the same dwelling unit and who are related to each other by blood, marriage, adoption or legal guardianship.

6. "Farm operation" means an activity conducted primarily for the production of one or more agricultural products or commodities, including timber for sale and home use, and customarily producing the products or commodities in sufficient quantity to be capable of contributing materially to the operator's support.

7. "Individual" means a person who is not a member of a family.

8. "Initiation of negotiations" means the date the department first makes personal contact with the owner or the owner's personal representative of the property sought to be acquired if the price to be paid for the property is discussed.

9. "Mortgage" means the classes of liens as are commonly given to secure advances on or the unpaid purchase price of real property under the laws of the state in which the real property is located and the credit instruments, if any, secured thereby.

10. "Person" means an individual, family, partnership, corporation or association.

§ 28-7142 Relocation assistance advisory services

A. Programs or projects undertaken by a displacing agency shall be planned in a manner that both:

1. Recognizes, at an early stage in the planning of the programs or projects and before the commencement of any actions that will cause displacements, the problems associated with the displacement of individuals, families, businesses and farm operations.

2. Provides for the resolution of the problems in order to minimize adverse impacts on displaced persons and to expedite program or project advancement and completion.

B. The displacing agency shall ensure that the relocation assistance advisory services described in subsection C are made available to all persons displaced by the agency. If the displacing agency determines that a person occupying property that is immediately adjacent to the property where the displacing activity occurs is caused substantial economic injury as a result of the activity, the agency may make advisory services available to the person.

C. Each relocation assistance advisory program required by subsection B shall include the measures, facilities or services that may be necessary or appropriate in order to:

1. Determine and make timely recommendations on the needs and preferences, if any, of displaced persons for relocation assistance.

2. Provide current and continuing information on the availability, sales prices and rental charges of comparable replacement dwellings for displaced homeowners and tenants and suitable locations for businesses and farm operations.

3. Assist a person who is displaced from a business or farm operation in obtaining and becoming established in a suitable replacement location.

4. Supply:

(a) Information concerning federal, state and local programs that may be of assistance to displaced persons.

(b) Technical assistance to those persons in applying for assistance under the programs.

5. Provide other advisory services to displaced persons in order to minimize hardships to those persons in adjusting to relocation.

D. The displacing agency shall coordinate relocation activities performed by the agency with other federal, state or local governmental actions in the community that could affect the efficient and effective delivery of relocation assistance and related services.

E. If a displacing agency acquires property for a program or project, a person who occupies the property on a rental basis for a short term or a period subject to termination when the property is needed for the program or project is eligible for advisory services to the extent determined by the displacing agency.

F. The department may establish local relocation assistance offices to carry out subsection A.

G. The department may contract with federal, other state, county or local agencies to provide relocation assistance services if the agency is required by law to provide the services and if the services are compatible with those services provided by the department.

§ 28-7143 Moving and related expenses; payment; substitute payments

A. As a part of the cost of construction and on proper application to the department, the department shall pay to a displaced person, business or farm operation:

1. Actual reasonable expenses in moving the displaced person and the displaced person's family, business, farm operation or other personal property.

2. Actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not more than the reasonable expenses that would have been required to relocate the property as determined by the department.

3. Actual reasonable expenses in searching for a replacement business or farm.

4. Actual reasonable expenses necessary to reestablish a displaced farm, nonprofit organization or small business at its new site pursuant to criteria established by the department, but not more than $50,000.

B. A displaced person who is eligible for payments under subsection A of this section, who is displaced from a dwelling and who elects to accept the payments authorized by this subsection in lieu of the payments authorized by subsection A of this section may receive an expense and dislocation allowance determined according to a schedule established by the director.

C. A displaced person who is eligible for payments under subsection A of this section, who is displaced from the person's place of business or farm operation and who is eligible under criteria established by the department may elect to accept, instead of the payment authorized by subsection A of this section, a fixed payment in an amount that is determined according to criteria established by the department and that is at least $1,000 but not more than $40,000. A person whose sole business at the displacement dwelling is the rental of the property to others does not qualify for a payment under this subsection.

§ 28-7144 Replacement dwelling; additional payment

A. In addition to other payments authorized by this article, the displacing agency shall pay not more than thirty-one thousand dollars to a displaced person who is displaced from a dwelling actually owned and occupied by the displaced person for at least ninety days before the initiation of negotiations for the acquisition of the property. This additional payment shall include the following elements:

1. The amount, if any, that when added to the acquisition cost of the dwelling acquired by the displacing agency equals the reasonable cost of a comparable replacement dwelling.

2. The amount, if any, that will compensate the displaced person for any increased interest costs and other debt service costs that the person is required to pay for financing the acquisition of any comparable replacement dwelling, only if the dwelling acquired by the displacing agency was encumbered by a bona fide mortgage that was a valid lien on the dwelling for at least ninety days immediately before the initiation of negotiations for the acquisition of the dwelling.

3. Reasonable expenses incurred by the displaced person for evidence of title, recording fees and other closing costs incidental to the purchase of the replacement dwelling except prepaid expenses.

B. The displacing agency shall make the additional payment authorized by this section only to a displaced person who purchases and occupies a decent, safe and sanitary replacement dwelling within one year after the date on which the person receives final payment from the displacing agency for the acquired dwelling or the date on which the obligation of the displacing agency under section 28-7152 is met, whichever is later, except that the displacing agency may extend this period for good cause. If the period is extended, the payment under this section is based on the costs of relocating the person to a comparable replacement dwelling within one year of that date.

§ 28-7145 Expenses incidental to transfer of property

In addition to the payments authorized by sections 28-7143 and 28-7144 and as a part of the cost of construction, the department shall reimburse the owner, after the date of payment of the purchase price or the date of deposit in court of monies to satisfy the award or compensation in a condemnation proceeding to acquire real property, whichever is earlier, to the extent it deems fair and reasonable for expenses the owner necessarily incurred for:

1. Recording fees, transfer taxes and similar expenses incidental to conveying the real property.

2. Penalty costs for prepayment of any preexisting recorded mortgage that is entered into in good faith and that encumbers the real property.

3. The pro rata portion of real property taxes that are paid and that are allocable to a period after the date of vesting of title in the state or the effective date of the possession of the real property by the state, whichever is earlier.

§ 28-7146 Replacement housing for tenants

A. In addition to amounts otherwise authorized by this article, a displacing agency shall pay to or for a person who is displaced from a dwelling and who is not eligible to receive a payment under section 28-7144 if the dwelling was actually and lawfully occupied by the displaced person for at least ninety days immediately before either:

1. The initiation of negotiations for acquisition of the dwelling.

2. In a case in which displacement is not a direct result of acquisition, another event as the department prescribes.

B. Payment under subsection A of this section consists of the amount necessary to enable the person to lease or rent for a period of not more than forty-two months a comparable replacement dwelling but not more than seven thousand two hundred dollars. At the discretion of the displacing agency, a payment under this subsection may be made in periodic installments. Computation of a payment under this subsection to a low income displaced person for a comparable replacement dwelling shall take into account the person's income.

C. A person who is eligible for a payment under subsection A of this section:

1. May elect to apply the payment to a down payment on and other incidental expenses relating to the purchase of a decent, safe and sanitary replacement dwelling.

2. At the discretion of the displacing agency, may be eligible under this subsection for the maximum payment allowed under subsection B of this section, except that the payment to a displaced homeowner who has owned and occupied the displacement dwelling for at least ninety days immediately before the initiation of negotiations for the acquisition of the dwelling shall not exceed the payment the person otherwise would have received under section 28-7144, subsection A if the person had owned and occupied the displacement dwelling ninety days immediately before the initiation of the negotiations.

§ 28-7147 Application review by director

A displaced person who is aggrieved by a determination as to eligibility for a payment authorized by this article or the amount of a payment may have the person's application reviewed by the director. The director's decision is final.

§ 28-7148 Rules

A. The director shall adopt rules as the director determines is necessary to ensure that:

1. The payments and assistance authorized by this article are administered in a manner that is fair and reasonable and as uniform as practicable.

2. A displaced person who makes proper application for a payment authorized by this article is paid promptly after a move, or in hardship cases, paid in advance.

3. An aggrieved person may have the person's application reviewed.

B. The director shall adopt any other rules that are consistent with this article as the director deems necessary or appropriate to carry out this article.

§ 28-7149 Payments not income

A payment received by a displaced person under this article:

1. Is not income for the purposes of title 43 relating to the taxation of income.

2. Is not considered as income or resources to a recipient of public assistance.

3. Shall not be deducted from the amount of aid to which the recipient would otherwise be entitled under a federal, state, county or city welfare program.

§ 28-7150 Effect on eminent domain proceedings

In a condemnation proceeding brought under the power of eminent domain this article does not create an element of value or damages not in existence on July 1, 1974.

§ 28-7151 Negotiation and purchase of property for future transportation facilities

The department may negotiate and purchase at a price mutually acceptable to the property owner and the department property that is expected to be needed for future transportation facilities. This section applies only to qualified advance acquisitions of properties that are located within projects for which, at the time of the purchase, construction is not scheduled in the five year transportation facilities construction program provided for in article 3 of this chapter.

§ 28-7152 Assurance of dwellings

A. If a program or project undertaken by a displacing agency cannot proceed on a timely basis because comparable replacement dwellings are not available and the head of the displacing agency determines that the dwellings cannot otherwise be made available, the head of the displacing agency shall take any action that is necessary or appropriate to provide the dwellings by the use of monies authorized for the project. The displacing agency may exceed the maximum amounts that may be paid under sections 28-7144 and 28-7146 on a case by case basis for good cause as determined pursuant to department rules.

B. A person shall not be required to move from a dwelling on account of a program or project undertaken by a displacing agency unless the displacing agency is satisfied that comparable replacement housing is available to the person.

C. The displacing agency shall ensure that a person is not required to move from a dwelling unless the person has had a reasonable opportunity to relocate to a comparable replacement dwelling, except in any of the following cases:

1. A major disaster as defined in section 102(2) of the federal disaster relief act of 1974.

2. A national emergency declared by the president of the United States.

3. Any other emergency that requires the person to move immediately from the dwelling because continued occupancy of the dwelling by the person is a substantial danger to the health or safety of the person.

§ 28-7153 Condemnation; litigation expenses

A. The court having jurisdiction of a proceeding instituted by the department to acquire real property by condemnation shall award the owner of any right to, title to or interest in the real property an amount that will reimburse the owner for the owner's reasonable costs, disbursements and expenses, including reasonable attorney, appraisal and engineering fees, actually incurred because of the condemnation proceedings, if any of the following occurs:

1. The final judgment is that the department cannot acquire the real property by condemnation.

2. The proceeding is abandoned or dismissed on a motion by the department as authorized by section 28-7100.

B. The court rendering a judgment for the plaintiff in a proceeding brought under section 28-7052 awarding compensation for the taking of property by the department in effecting a settlement of that proceeding shall determine and award to the plaintiff, as a part of the judgment or settlement, an amount that in the opinion of the court or the department will reimburse the plaintiff for the plaintiff's reasonable costs, disbursements and expenses, including reasonable attorney, appraisal and engineering fees, actually incurred because of the proceeding.

§ 28-7154 Buildings, structures and improvements

A. Notwithstanding any other law, if this state acquires an interest in real property, it shall acquire at least an equal interest in all buildings, structures or other improvements located on the acquired real property that it requires to be removed from the real property or that it determines will be adversely affected by the use to which the real property will be put.

B. For the purpose of determining the just compensation to be paid for any building, structure or other improvement required to be acquired by subsection A:

1. The building, structure or other improvement shall be deemed to be a part of the real property to be acquired notwithstanding the right or obligation of a tenant, as against the owner of any other interest in the real property, to remove the building, structure or improvement at the expiration of the tenant's term.

2. The fair market value that the building, structure or improvement contributes to the fair market value of the real property to be acquired or the fair market value of the building, structure or improvement, for removal from the real property, whichever is more, shall be paid to the tenant.

C. Payment under this section shall not result in duplication of any payments otherwise authorized by law. A payment shall not be made under this section unless the owner of the land involved disclaims all interest in the improvements of the tenant. In consideration for this payment, the tenant shall assign, transfer and release to this state all of the tenant's right, title and interest in and to the improvements.

D. This section does not deprive the tenant of any rights to reject payment under this section and to obtain payment for the property interests in accordance with applicable law, other than this section.

§ 28-7155 Acquired property; maintenance

Notwithstanding any other law, a displacing agency shall maintain real property that is acquired by the displacing agency in carrying out a program or project and that is not scheduled for immediate rehabilitation or demolition in a manner consistent with protecting and maintaining surrounding property values.

§ 28-7156 Utility relocation; cost reimbursement

A. The director may authorize the reimbursement to a city, town or county for the cost of labor, equipment, materials, preliminary engineering and right-of-way purchase required to adjust or relocate a utility facility if all of the following apply:

1. An existing city, town or county public highway or street is established as a state highway.

2. At the time the highway or street is established as a state highway, a utility facility belonging to a city, town or county exists within the right-of-way of the highway or street.

3. It becomes necessary to adjust or relocate the utility facility due to modification or improvement of the state highway.

B. The director shall determine the payment for labor, equipment and materials. The cost of relocation shall not exceed the value of the substitute utility facility. The director shall base the determination of the value of a substitute utility facility on the costs for replacement of a like facility. Costs of relocation shall exclude any betterments or increases in the size or capacity beyond those of the existing utility facility.

C. This section does not apply to a city, town or county utility facility that is owned by the city, town or county and that exists within the highway or street right-of-way by virtue of any permit, franchise or other revocable authority granted by the department, unless the authority was previously granted as part of an adjustment or relocation pursuant to this section.

D. Once established pursuant to a relocation prescribed by this section, a city's, town's or county's rights remain with the applicable city, town or county for which the relocation occurred.

Article 8 Disposition of Public Roadways

§ 28-7201 Definitions

In this article, unless the context otherwise requires:

1. "Governing body" means the city or town council or other authority of a city or town, the board of supervisors of a county or the transportation board.

2. "Owner" or "owners of record" includes a person, firm, partnership, association or corporation.

3. "Owners association" means a nonprofit corporation authorized to do business in this state.

4. "Roadway" includes all or part of a platted or designated public street, highway, alley, lane, parkway, avenue, road, sidewalk or other public way, whether or not it has been used as such.

§ 28-7202 Disposition of unnecessary public roadways

If a governing body determines that a public roadway owned by the city, town, county or state or a portion of the roadway is not necessary for public use as a roadway, the governing body may dispose of or use the roadway as provided in this article.

§ 28-7203 Roadway exchange

A roadway or portion of a roadway may be exchanged with an abutting owner for all or part of a new public roadway, and title vests in the grantee when the exchange is made.

§ 28-7204 Roadway sale; definition

A. The governing body may authorize the director to sell and convey the land within the roadway or portion of the roadway by quitclaim deed.

B. On conveyance, the roadway or portion of the roadway is deemed vacated, title to the roadway or portion of the roadway vests in the grantee and, if the grantee is an abutting owner, title vests subject to the same encumbrances, liens, limitations, restrictions and estates as exist on the grantee's abutting land.

C. At least sixty days before the date of the sale, a notice of sale describing the roadway or portion of the roadway to be sold shall:

1. Be posted at intervals of no more than one mile and in at least three places on or along the side of the roadway.

2. Make specific reference to this section.

3. State that a person may submit purchase offers and that abutting owners have preference rights pursuant to this article.

4. Be delivered or mailed to abutting owners of record if their addresses are known or can be readily discovered.

D. Abutting owners of record in whom title to a portion of the roadway would vest under section 28-7205 may deliver, at the sale or at any time before the sale, to the clerk or secretary of the governing body or the director, in the case of this state, a written offer to purchase the portion or a part of the portion for the consideration paid for the land by the city, town, county or state, whichever first acquired the land within the roadway for public use. If an offer is submitted in a timely manner, it shall be preferred over all other offers.

E. In the absence of an offer prescribed in subsection D of this section, the governing body or the director, in the case of this state, may sell the roadway or portion of the roadway for an amount of consideration it deems advisable.

F. A quitclaim deed issued under this section creates a presumption of compliance with the requirements of this article relating to the sale of the roadway or portion of the roadway, including recording, mailing and posting the notice of the sale and conducting the sale. The deed is conclusive evidence of meeting these requirements in favor of purchasers and encumbrancers for value and without actual notice. Knowledge of the grantor shall not be imputed to the grantee.

G. For the purposes of this section, "abutting owner" means the original owner of the vacated roadway or the original owner's heirs who have previously had a portion of the property acquired for roadway purposes and thereafter are left with an abutting remainder of property over which they still retain direct ownership.

§ 28-7205 City, town or county road vacated

If the roadway is a city, town or county roadway, the governing body may resolve that the roadway or portion of the roadway be vacated. On the making of the resolution, title to the roadway or portion of the roadway vests, subject to the same encumbrances, liens, limitations, restrictions and estates as exist on the land to which it accrues, as follows:

1. If a roadway that is the exterior boundary of a subdivision or other tract of land is vacated, title to the roadway vests in the owners of the land abutting the vacated roadway to the same extent that the land included within the roadway, at the time the roadway was acquired for public use, was a part of the subdivided land or was a part of the adjacent land.

2. If less than the entire width of the roadway is vacated, title to the vacated portion vests in the owners of the land abutting the vacated portion.

3. If a roadway bounded by straight lines is vacated, title to the vacated roadway vests in the owners of the abutting land and each abutting owner takes to the center of the roadway, except as provided in paragraphs 1 and 2. If the boundary lines of abutting lands do not intersect the roadway at a right angle, the land included within the roadway vests as provided in paragraph 4.

4. In all instances not specifically provided for, title to the vacated roadway vests in the owners of the abutting land, and each abutting owner takes that portion of the vacated roadway to which the abutting owner's land or any part of the abutting owner's land is nearest in proximity.

5. On vacation of a roadway no portion accrues to an abutting roadway.

§ 28-7206 Planned development roadway vacated

Notwithstanding section 28-7205, if the roadway is a city, town or county roadway in a planned development, the governing body may resolve that the roadway or portion of the roadway be vacated and that title to the vacated roadway or portion of the roadway vests in the owners association if the following conditions are met:

1. The owners association includes the owners of the land abutting the roadway or portion of the roadway to be vacated.

2. The owners association has rights and remedies under covenants, conditions or restrictions of title to maintain the vacated roadway and to assess all members of the association for the maintenance of the roadway.

3. Two-thirds of the members of the owners association and a majority of the owners of commercial property abutting the roadway or portion of the roadway to be vacated approve the vesting of title to the roadway or portion of the roadway in the association.

§ 28-7207 State roadway abandoned

If a roadway is a state roadway, the governing body may resolve that this state's interest in the roadway or portion of the roadway be abandoned. On abandonment:

1. This state's interest in the part of the roadway that is located outside the boundaries of incorporated cities or towns vests in the county where the roadway is located.

2. This state's interest in the part of the roadway that is located within the boundaries of an incorporated city or town vests in that city or town.

3. The director shall promptly notify the city, town or county affected by the abandonment, and that county, city or town may maintain the roadway as other county, city or town roadways are maintained or dispose of it as provided in this article.

§ 28-7208 Consideration required

Notwithstanding any other law, except as provided in section 28-7215, vesting of title pursuant to sections 28-7205, 28-7206 and 28-7207 is subject to the giving of consideration from the owner of the abutting property to the governing body in an amount deemed by the governing body to be commensurate with the value of the abandoned roadway. The governing body shall give due consideration to its degree of fragmentation and marketability and any other public benefit received by the governing body in return for the abandoned roadway in determining the amount of consideration.

§ 28-7209 Vacated or abandoned highway; affected jurisdiction; procedure

A. If the board vacates or abandons a portion of a state route or state highway pursuant to section 28-304, the board shall:

1. Vacate or abandon the portion of the route or highway in cooperation with an affected jurisdiction and in full recognition of the financial and administrative impacts of the changes on the affected jurisdiction.

2. Provide four years' advance notice to the affected jurisdiction, except as provided in paragraph 3 and except that, by mutual agreement, the board and the affected jurisdiction may waive this requirement for notification.

3. Provide at least one hundred twenty days' advance notice to the affected jurisdiction for the abandonment of new street improvements such as cul-de-sacs and reconnections of existing streets resulting from highway projects.

B. Before a paved highway is vacated or abandoned, the pavement before the vacating or abandonment shall be in such a condition that additional surface treatment and major maintenance of the highway are not required for at least five years, unless the board and the affected jurisdiction agree to waive the requirement of this subsection.

§ 28-7210 Reservation of easements

Rights-of-way or easements for the following continue as they existed before the disposal or abandonment of the rights-of-way or easements:

1. Existing sewer, gas, water or similar pipelines and appurtenances.

2. Canals, laterals or ditches and appurtenances.

3. Electric, telephone and similar lines and appurtenances.

§ 28-7211 Notice; hearing; appraisal

The governing body or the board, in the case of this state, may give notice of pending disposition of roadways, hold hearings, obtain appraisals and take other similar action in connection with the disposition if it deems the action necessary or advisable.

§ 28-7212 Disposition; joint action

A. The part of a county roadway that is the boundary line between two counties shall not be disposed of except by joint action of the boards of supervisors of both counties.

B. The part of a state or county roadway that is a boundary line of an incorporated city or town or that is a state or county highway within an incorporated city or town shall not be disposed of except by joint action of the governing bodies of the city or town and the county or this state. Notwithstanding this subsection but subject to the obligations of the contract, a county board of supervisors or this state may abandon a county or state highway within an incorporated city or town by resolution.

§ 28-7213 Resolution; effective date

A governing body's resolution that disposes of a roadway or a portion of a roadway or that applies the roadway to another public use shall:

1. Describe the roadway and its disposition or use.

2. Take effect when it is recorded in the office of the county recorder of the county in which the roadway is located.

§ 28-7214 Extinguishment of easements

If this state or a city, town or county does not own title to a roadway but holds right-of-way easements, the easements may be extinguished by the governing body's resolution.

§ 28-7215 Public road access; vacating public roadway without compensation

A. A roadway shall not be vacated if any land adjoining the roadway is left without a public or private legal access connecting the land with an established public roadway, unless there is expressly reserved in the conveying instrument the roadway rights of ingress and egress for public or emergency vehicles, all property owners, property owner guests and invitees and persons lawfully conducting business on the land.

B. If a governing body determines that a public roadway has no public use or no market value, the governing body may vacate the public roadway without compensation to the governing body if the person taking the public roadway agrees to assume the costs of maintaining the public roadway and the liability for the public roadway.

Article 9 Bridges

§ 28-7251 Construction of bridge or dam; violation; classification

A. It is unlawful to construct or begin the construction of a bridge, dam, dike or causeway over or in any navigable river or other navigable water within the jurisdiction of this state unless the attorney general has recommended and the governor has authorized the construction.

B. A person or corporation that violates this section is guilty of a class 1 misdemeanor.

§ 28-7252 Failure to construct or repair bridge or crossing; classification

A person who is required by law to construct, maintain or repair bridges or crossings over a ditch or irrigating canal and who knowingly fails or refuses to construct, maintain or repair these bridges or crossings is guilty of a class 2 misdemeanor.

Article 10 Economic Strength Projects

§ 28-7281 Economic strength projects

The following highway projects are economic strength projects pursuant to this article:

1. A project that will retain a significant number of jobs in this state or within a local authority.

2. A project that will significantly increase the number of jobs in this state or within a local authority.

3. A project that will lead to significant capital investment in this state or within a local authority.

4. A project that will make a significant contribution to the economy of this state or within a local authority.

§ 28-7282 Economic strength project fund

A. An economic strength project fund is established consisting of the monies allocated for projects listed by the Arizona commerce authority pursuant to section 41-1505, subsection E.

B. Monies in the economic strength project fund shall be used to fund projects that are recommended by the Arizona commerce authority and that are approved by the transportation board.

C. Monies remaining in the economic strength project fund at the end of a fiscal year do not revert to the state general fund.

D. On notice from the board, the state treasurer shall invest and divest monies in the economic strength project fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

§ 28-7283 Construction and maintenance of economic strength projects

A. The department shall construct and maintain economic strength projects that are part of the state highway system.

B. A local authority shall construct and maintain an economic strength project that is not part of the state highway system if the local authority has jurisdiction over the project.

§ 28-7284 Agreements

The director may enter into agreements on behalf of this state with a local authority in regard to the financing, construction or maintenance of an economic strength project recommended by the Arizona commerce authority and approved by the board.

§ 28-7285 Rules

The board may prescribe rules for the administration of this article.

§ 28-7286 Board authority; construction standards; priority list date

A. The board has final authority to approve an economic strength project recommended by the Arizona commerce authority. The board shall fund an approved economic strength project from the economic strength project fund.

B. Before approving an economic strength project, the board shall ensure that the project is compatible with other transportation facilities and conforms to applicable construction and engineering standards of the department of transportation or the appropriate local authority.

C. With the advice of the Arizona commerce authority, the board may set an official date each year on which the economic strength priority list is due to the board. The Arizona commerce authority may provide an updated priority list to the board at any time.

Article 11 Advertising

§ 28-7311 Urban and rural logo sign programs; rules; definitions

A. The department may establish an urban and a rural logo sign program. Notwithstanding sections 28-648, 28-7048 and 28-7053, as part of the program the department may contract with a third party to install and maintain specific services information signs, known as logo signs, on any class of state highway or interstate highway system in this state. If the department contracts with a third party, the third party shall agree in the contract to:

1. Furnish, install, maintain and replace signs for the benefit of business advertisers who provide gas, food, lodging, twenty-four hour pharmacy service, attraction and camping facilities for the general public.

2. Lease advertising space on the signs to operators of the facilities prescribed in paragraph 1 of this subsection.

B. Notwithstanding sections 28-648, 28-7048 and 28-7053, as part of the rural logo sign program the department may contract with a third party to install and maintain specific services information signs, known as logo signs, on any class of state highway or interstate highway system, located outside of an urbanized area with a population of one hundred thousand or more persons of this state. If the department contracts with a third party, the third party shall agree in the contract to:

1. Furnish, install, maintain and replace signs for the benefit of business advertisers that provide gas, food, lodging, twenty-four hour pharmacy service, attraction and camping facilities for the general public.

2. Lease advertising space on the signs to operators of the facilities prescribed in paragraph 1 of this subsection.

C. The department shall adopt rules to implement and operate the logo sign programs. Costs incurred under the programs established by this section shall be paid under agreements negotiated between the department or third party and the business advertisers.

D. The department may enter into a revenue sharing agreement with the third party. The department shall deposit, pursuant to sections 35-146 and 35-147, revenues generated, less program operating costs, in the state highway fund established by section 28-6991.

E. For the purposes of this section:

1. "Population" means the population determined in the most recent United States decennial census or in the most recent special census as provided in section 28-6532.

2. "Urbanized area" means an urbanized area as defined in the decennial census by the United States bureau of the census.

§ 28-7312 Tourism encouragement; Arizona highways magazine

A. The director may spend monies from the state highway fund in the amount prescribed by law to encourage tourist travel to and through this state by giving publicity to points and places of historic interest, climatic and recreational advantages, the possibilities of successful pursuits and industrial enterprises and other information that in the opinion of the director tends to attract visitors to this state.

B. The publicity shall be given through the medium of the magazine "Arizona Highways" and the publication of maps, pamphlets and other descriptive material designed to carry out the purposes of this article.

C. The director shall determine the price for:

1. Annual subscriptions, single copies and the discount allowed dealers of "Arizona Highways".

2. Other material published and offered for sale by the magazine.

D. The director may distribute the magazine free of charge to libraries, schools, chambers of commerce, hotels, tourist agencies, visitors, prospective visitors, other persons, agencies and business, industry or convention organizations in quantities the director deems beneficial in carrying out the purposes of this article. The number of free copies of the magazine each month shall not exceed ten per cent of the total number of paid subscriptions.

E. The director may license the name of the magazine "Arizona highways" to a private entity for commercial purposes.

§ 28-7313 Publication section; publisher

A. The department shall maintain a section for the publication of the magazine, maps, pamphlets and other descriptive material provided by section 28-7312.

B. The director shall appoint a publisher as head of the section.

C. Compensation for the publisher is as established pursuant to section 38-611.

§ 28-7314 Publisher powers and duties; award of contract

A. The publisher may:

1. Subject to approval of the director, direct the organization of the section of publications and employ or enter into contracts for distribution and wholesale sale of the magazine.

2. Make quarterly reports to the director of expenditures by the section and the work accomplished under the publisher's direction and include other matters as the director deems proper or requires.

3. Make expenditures to advertise and promote the sale and distribution of the publications authorized by this article.

4. Approve claims for expenditures in connection with the publication of the magazine and for expenditures in connection with the publication.

5. Subject to the approval of the director, contract for the publication, production, sale and distribution of sole source creative products. For the purposes of this paragraph, "sole source creative products" means items that in the professional judgment of the publisher are available from a single source, such as material protected by copyright, specific photographs and original artwork, for the magazine or maps, pamphlets and other descriptive material.

6. Accept donations to the Arizona highways magazine to promote tourism in this state as prescribed in section 28-7312.

B. The director may award a contract to the bidder that has the facilities and equipment to perform all phases of production in a workmanlike and timely manner with the quality and workmanship desired in the publication. A contract period for printing and publishing shall not exceed five years.

C. The publisher may refund all canceled purchases and subscriptions on claims signed by the publisher.

§ 28-7315 Arizona highways magazine fund

A. An Arizona highways magazine fund is established.

B. The fund consists of monies:

1. Appropriated by the legislature from the state highway fund of not more than $500,000 annually.

2. Received from the sales of subscriptions, single copies, maps, pamphlets and other descriptive material.

3. Deposited pursuant to section 28-2429.

4. Donated to the Arizona highways magazine to promote tourism in this state as prescribed in section 28-7312.

C. The monies appropriated to the fund shall be spent in conformity with the laws governing state financial operations, except that:

1. Balances remaining at the end of the fiscal year do not revert to the general or state highway fund.

2. Expenditures are exempt from section 35-173.

D. The state treasurer shall invest and divest monies in the Arizona highways magazine fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

§ 28-7316 Assets and facilities advertising and sponsorship program; definitions

A. In addition to the urban and rural logo sign programs established pursuant to section 28-7311, the department may establish a program to lease or sell advertising on nonhighway assets of the department and to allow monetary sponsorship of facilities and other assets of the department. The advertising and sponsorship program established pursuant to this section shall be limited to motor vehicle and motorist-related goods and services. The department may adopt rules to implement and administer this section. The department may:

1. Operate, modify or terminate any advertising and sponsorship program.

2. Generate revenue from any advertising and sponsorship program.

3. Contract with a third party to perform any or all aspects of the advertising and sponsorship program authorized pursuant to this section.

B. The department or a third party may negotiate and execute leases for variable terms, set lease rates, establish lease terms and prescribe forms for leases.

C. If the department contracts with a third party, the third party shall agree in the contract to:

1. The contractor's duties, including:

(a) Furnishing, installing, maintaining and replacing the advertising and sponsorship space or media on the authorized assets and facilities of the department.

(b) Promoting and negotiating the leasing of advertising and sponsorship space or media on the authorized assets and facilities of the department.

2. Compensation.

D. Costs incurred under the program established pursuant to this section shall be paid under agreements negotiated between the department or the third party and the advertisers or sponsors.

E. The department may enter into a revenue sharing agreement with the third party. The department shall deposit, pursuant to sections 35-146 and 35-147, revenues generated from the advertising and sponsorship program, minus program operating costs, in the state highway fund established by section 28-6991.

F. For the purposes of this section:

1. "Advertising" means signage or electronic media on department assets that display or promote commercial brands, products or services through a logo, message or slogan or other information.

2. "Assets" means buildings, transportation infrastructure, vehicles, signage, equipment, internet or other electronic media or other facilities or items of value that are owned, maintained or managed by the department.

3. "Facility" means a building, room, center or space or another location in or on an asset that is owned, leased or controlled by the department and that the department deems suitable for sponsorship.

4. "Sponsorship" means the act of sponsoring an element of the department's operation of an asset through highway-related services, products or monetary contributions.

Article 12 Cooperative National Highway Aid Agreements

§ 28-7341 Agreements between department and federal agencies

The director may enter into cooperative agreements with the secretary or any authorized officer of the departments constituting the defense establishment of the United States, the federal highway administrator or any other authorized officer or agency of the United States for construction, acquisition, maintenance or improvement of roads and other projects.

§ 28-7342 Cooperative agreement provisions

A cooperative agreement entered into under this article:

1. Shall provide that all monies advanced by this state in pursuance of the project shall be promptly reimbursed by the United States agency entering into the agreement to the extent of the agency's participation in the cost of the project.

2. If the agreed participation of the United States agency is one hundred per cent of the cost or under other conditions as the director determines, may contain a provision that all of the agency's participation cost shall be deposited, pursuant to sections 35-146 and 35-147, in advance in a special trust account.

3. If feasible, shall enumerate as closely as possible all items of costs and expenditures for which the United States agency is obligated to reimburse the department.

§ 28-7343 Authority of director relating to monies

A. If the director determines it necessary for the expeditious completion of a cooperative agreement undertaken pursuant to this article, the director may pay from the state highway fund or from any account within the state highway fund all costs of construction, including the acquisition of lands or property necessary to the project, engineering costs, operational expense, equipment rentals and other costs that have prior approval of the United States department or agency with which the cooperative agreement is made.

B. The department may cause to be set up proper budget items within or outside the state highway fund or special accounts within the fund and may make and certify transfers of monies among or between these accounts and the special trust account referred to in section 28-7342 or any other trust account established by the United States or by the department for carrying out cooperative agreements as provided by this article.

§ 28-7344 Reimbursement by federal agency

The United States agency with which a cooperative agreement is entered into shall promptly reimburse the state highway fund or an account within the fund for all expenditures made by the department under the agreement chargeable to the agency at reasonably regular intervals as the work progresses.

Article 13 Alternative Contracting Procedures

§ 28-7361 Definitions

In this article, unless the context otherwise requires:

1. "Architect services" means those professional architect services that are within the scope of architectural practice as provided in title 32, chapter 1.

2. "Construction-manager-at-risk" means a project delivery method in which:

(a) There is a contract for construction services that is separate from the contract for design services, except that instead of a single contract for construction services, the department may elect separate contracts for preconstruction services during the design phase, for construction during the construction phase and for any other construction services.

(b) Design services are performed under a separate design services contract, except that as to bridges and other transportation facilities the department may perform with its own employees or force account preliminary design and either:

(i) In the case of bridges only, all design services up to final design.

(ii) In the case of other transportation facilities, up to twenty per cent of the design work.

(c) The contract for construction services may be entered into at the same time as the design services are commenced or at a later time.

(d) Design and construction of the project may be either:

(i) Sequential with the entire design complete before construction commences.

(ii) Concurrent with the design produced in two or more phases and construction of some phases commencing before the entire design is complete.

(e) Finance services, maintenance services, operations services, preconstruction services and other related services may be included.

3. "Construction services" means either of the following for construction-manager-at-risk and job-order-contracting project delivery methods:

(a) Construction, excluding services, through the construction-manager-at-risk or job-order-contracting project delivery methods.

(b) A combination of construction and, as elected by the department, one or more related services, such as finance services, maintenance services, operations services, design services and preconstruction services, as those services are authorized in the definition of construction-manager-at-risk or job-order-contracting.

4. "Contract" means all types of department agreements, regardless of what they are called, for procurements pursuant to this article.

5. "Contractor" means any person who has a contract with the department.

6. "Design-build" means the process of entering into and managing a contract between the department and another party in which the other party agrees to both design and build a highway, a structure, a facility or other items specified in the contract.

7. "Design-builder" means any individual, partnership, joint venture, corporation or other legal entity that is appropriately licensed in this state and that furnishes the necessary design services, in addition to construction of the work, whether by itself or through subcontracts, including subcontracts for architectural and engineering services.

8. "Design services" means architect services, engineer services or landscape architect services.

9. "Emergency" means an immediate threat to public health, welfare or safety caused by flood, earthquake, hurricane, tornado, explosion, fire or other catastrophe such that compliance with normal bidding procedures for repair or reconstruction of transportation facilities would be impracticable or contrary to the public interest.

10. "Engineer services" means those professional engineer services that are within the scope of engineering practice as provided in title 32, chapter 1.

11. "Finance services" means financing for a construction services project.

12. "Job-order-contracting" means a project delivery method in which:

(a) The contract is for indefinite quantities of construction and, at the election of the department, may or may not include a guaranteed minimum amount of work.

(b) The construction to be performed is specified in job orders issued during the contract.

(c) Finance services, maintenance services, operations services, preconstruction services, design services and other related services may be included.

13. "Landscape architect services" means those professional landscape architect services that are within the scope of landscape architectural practice as provided in title 32, chapter 1.

14. "Maintenance services" means routine maintenance, repair and replacement of existing facilities, structures, buildings or real property.

15. "Operations services" means routine operation of existing facilities, structures, buildings or real property.

16. "Person" means any corporation, business, individual, union, committee, club, other organization or group of individuals.

17. "Preconstruction services" means services and other activities during the design phase.

18. "Specific single project" means a project that is constructed at a single location, at a common location or for a common purpose.

19. "Subcontractor" means a person who contracts to perform work or render service to a contractor or to another subcontractor as a part of a contract with the department.

§ 28-7362 Emergency construction

A. Notwithstanding any other law, if the director determines that an emergency exists, the director may award a contract for the reconstruction of transportation facilities necessary to preserve the health, welfare or safety of persons or property.

B. The director shall award a contract pursuant to this section with such competition as is practicable under the circumstances.

C. An award under this section shall be limited to the reconstruction necessary to satisfy the emergency need.

D. The director shall include the following in the contract file and in the director's office:

1. A written report describing the basis for the determination that an emergency existed.

2. The process by which the contractor was selected.

E. As soon as practicable, the director shall make a written report to the governor and to the board describing any awards made pursuant to this section. The report shall include:

1. The written report of the basis for the director's determination that an emergency existed.

2. A description of the reconstruction work needed, the process of selection of the contractor and the progress of the work under the emergency award.

F. At the conclusion of the work, the director shall make a final report to the board and the governor describing the project and the performance of the work.

§ 28-7363 Design-build method of project delivery

A. Notwithstanding any other law, the department may use the design-build method of project delivery on a project if the department makes a determination in writing that it is appropriate and in the best interests of the department to use the design-build method of project delivery for that project, except that:

1. The department shall not enter into a contract to operate any structure, facility or other item pursuant to this article.

2. Each design-build project shall be a specific single project.

3. The department shall not commence any design-build project after December 31, 2030. For the purposes of this paragraph, a project is commenced on the date the department solicits the contract for the project. If the department solicits a design-build contract on or before December 31, 2030, the contract may be executed and services and construction under the contract may be rendered in whole or in part after December 31, 2030.

B. The estimated cost of the project shall not include the cost to procure any right-of-way or other cost of condemnation. The cost to procure any right-of-way or other cost of condemnation remains at all times the responsibility of the department. The department shall obtain all necessary rights-of-way.

C. The department is responsible for preparing and acquiring all environmental documents, including the scope of any remediation and required clearances.

D. If construction of a design-build project involves railroad facilities, the railroad shall approve the use of the design-build delivery method before the department awards the design-build contract.

E. To ensure fair, uniform, clear and effective procedures that will deliver a quality project on time and within budget, the director, in conjunction with the appropriate and affected professionals and contractors, may adopt procedures for procuring a project using the design-build method of project delivery.

F. The provisions of sections 28-6923 and 28-6924 relating to bid, performance and payment bonds and to change orders, progress payments, contract retentions, definitions and authority to award contracts apply to department design-build projects for transportation facilities pursuant to this article.

§ 28-7364 Design-build criteria

The department shall use the following criteria as the minimum basis for determining when to use the design-build method of project delivery:

1. The extent to which it can adequately define the project requirements.

2. The time constraints for delivery of the project.

3. The capability and experience of potential teams with the design-build method of project delivery.

4. The suitability of the project for use of the design-build method of project delivery in the areas of time, schedule, costs and quality.

5. The capability of the department to manage the project, including the employment of experienced personnel or outside consultants.

6. The capability of the department to oversee the project with persons who are familiar with the design-build method of project delivery.

7. Other criteria the department deems relevant.

§ 28-7365 Design-build; two-phase solicitation

A. If the department determines that the design-build method of project delivery is appropriate, the department shall establish a two-phase procedure for awarding the design-build contract. The department shall limit each solicitation for a design-build contract to a specific single project.

B. During phase one, and before solicitation, the director shall appoint a selection team of at least three persons. At least one-half of the selection team shall be architects or engineers who are registered pursuant to section 32-121. The selection team members may be either department employees or outside consultants. The selection team shall also include at least one person who is a senior management employee of a licensed contractor who is not involved in the project. Any architect or engineer who is serving on the selection team and who is not a department employee shall not be otherwise involved in the project. The department shall prepare documents for a request for qualifications.

C. The request for qualifications shall include all of the following:

1. The minimum qualifications of the design-builder.

2. A scope of work statement and schedule.

3. Documents defining the project requirements.

4. The form of contract to be awarded.

5. The selection criteria for compiling a short list and the number of firms to be included on the short list. At least three but not more than five firms shall be included on the short list.

6. A description of the phase two requirements and subsequent management needed to bring the project to completion.

7. The maximum time allowable for design and construction.

8. The department's estimated cost of design and construction.

D. The selection team shall evaluate the design-build qualifications of responding firms and shall compile a short list of firms in accordance with technical and qualifications-based criteria. The number of firms on the short list shall be the number of firms specified in the request for qualifications, except that, if a smaller number of firms responds to the solicitation or if one or more of the firms on the short list drop out so that only two firms remain on the short list, the selection team may proceed with the selection process with the remaining firms if at least two firms remain or the department may readvertise as the department deems necessary.

E. During phase two, the department shall issue a request for proposals to the design-builders on the short list. The request shall include:

1. The scope of work, including programmatic, performance and technical requirements, conceptual design, specifications and functional and operational elements for the delivery of the completed project, which shall all be prepared by an architect or engineer, as appropriate, who is registered pursuant to section 32-121.

2. A description of the qualifications required of the design-builder and the selection criteria, including the weight or relative order, or both, of each criterion.

3. Copies of the contract documents that the successful proposer will be expected to sign.

4. The maximum time allowable for design and construction.

5. The department's estimated cost of design and construction.

6. The requirement that a proposal be segmented into two parts, a technical proposal and a price proposal. Each proposal shall be in a separately sealed, clearly identified package and shall include the date and time of the submittal deadline. The technical proposal shall include a schedule, schematic design plans and specifications, technical reports, calculations, permit requirements, applicable development fees and other data requested in the request for proposals. The price proposal shall contain all design, construction, engineering, inspection and construction costs of the proposed project.

7. The date, time and location of the public opening of the sealed price proposals.

8. Other information relevant to the project.

F. If stated in the request for proposals, in order to inform each firm whether the firm's concept is responsive to the request for proposals, the department may enter into a separate confidential discussion with each firm on the short list to discuss alternative technical concepts that the firm may propose.

G. The department shall proceed as follows:

1. The selection team shall review the technical proposals and score the technical proposals using the selection criteria in the request for proposals. The technical review team shall then submit a technical proposal score for each design-builder to the department. The technical review team shall reject any proposal it deems to be nonresponsive.

2. The department shall announce the technical proposal score for each design-builder, shall publicly open the sealed price proposals and shall divide each design-builder's price by the score that the selection team has given to it to obtain an adjusted score. The design-builder selected shall be that responsive and responsible design-builder whose adjusted score is the lowest.

3. If a time factor is included with the selection criteria in the request for proposals package, the department may also adjust the bids using a value of the time factor established by the department. The value of the time factor shall be a value per day. The adjustment shall be based on the total time value. The total time value is the design-builder's proposed number of days to complete the project multiplied by the factor. The time adjusted price is the total time value plus the bid amount. This adjustment shall be used for selection purposes only and shall not affect the department's liquidated damages schedule or incentive and disincentive program. An adjusted score shall then be obtained by dividing each design-builder's time adjusted price by the score given by the technical review team. The department shall select the responsive and responsible design-builder whose adjusted score is the lowest.

4. Unless all proposals are rejected, the board shall award the contract to the responsive and responsible design-builder with the lowest adjusted score. The board reserves the right to reject all proposals.

5. The department shall award a stipulated fee equal to four-tenths of one percent of the department's estimated cost of design and construction to each short list responsible proposer that provides a responsive, but unsuccessful proposal. If the department does not award a contract, all responsive proposers shall receive the stipulated fee. If the department cancels the contract before reviewing the technical proposals, the department shall award each design-builder on the selected short list a stipulated fee equal to four-tenths of one percent of the department's estimated cost of design and construction. The department shall pay the stipulated fee to each proposer within ninety days after the award of the contract or the decision not to award a contract. In consideration for paying the stipulated fee, the department may use any ideas or information contained in the proposals in connection with any contract awarded for the project, or in connection with a subsequent procurement, without any obligation to pay any additional compensation to the unsuccessful proposers. Notwithstanding the other provisions of this paragraph, an unsuccessful short list proposer may elect to waive the stipulated fee. If an unsuccessful short list proposer elects to waive the stipulated fee, the department may not use ideas and information contained in the proposer's proposal, except that this restriction does not prevent the department from using any idea or information if the idea or information is also included in a proposal of a short list proposer that accepts the stipulated fee.

§ 28-7366 Construction-manager-at-risk construction services and job-order-contracting construction services

A. The department may procure the following services pursuant to this section:

1. Construction-manager-at-risk construction services.

2. Job-order-contracting construction services.

B. The department shall provide notice of each procurement of construction services prescribed in this section and shall award contracts on the basis of demonstrated competence and qualifications for the type of construction services pursuant to the procedures prescribed in this section.

C. In the procurement of construction services pursuant to this section:

1. The department shall issue a request for qualifications for each contract and publish notice of the request for qualifications in the same manner as provided in section 28-6923. The request for qualifications shall:

(a) Include the number of persons or firms to be included on the final list. At least three but not more than five persons or firms shall be on the final list.

(b) State the criteria to be used by the selection team to select the person or firm to perform the construction services. The request for qualifications shall also state in a manner determined by the department the relative weight of the selection criteria.

(c) If the department will hold interviews as part of the selection process, state that interviews shall be held and the number of persons or firms to be interviewed, which shall be at least the number of persons or firms to be included in the final list but not more than the number of persons or firms to be included in the final list plus two.

2. For each request for qualifications, the department shall initiate a selection team pursuant to section 28-7365, subsection B. A person who is a member of a selection team shall not be a contractor under the contract or provide construction, construction services, materials or services under the contract. The selection team shall:

(a) Evaluate the statements of qualifications and performance data that are submitted in response to the department's request for qualifications.

(b) If determined by the department and included by the department in the request for qualifications, conduct interviews with the number of persons or firms to be interviewed as stated in the request for qualifications regarding the contract and the relative methods of approach for furnishing the required construction services.

(c) After any interviews or if interviews are not held, in order of preference, based on the criteria and the weighting of criteria established and published by the department and included in the request for qualifications, select a final list for the contract of persons or firms the selection team deems to be the most qualified to provide the construction services and, in the case of a contract that will be negotiated under subsection E of this section, rank the persons or firms on the final list in order of preference. The selection team shall base the selection of the final list and the order of preference on demonstrated competence and qualifications only. The number of persons or firms on the final list shall be the number of persons or firms specified in the request for qualifications, except that:

(i) If a smaller number of responsive and responsible persons or firms respond to the solicitation, the department may have the selection team proceed with the selection process, including interviews and the final list, with the remaining persons or firms if at least two persons or firms remain or the department may readvertise pursuant to this subsection as the department deems necessary or appropriate.

(ii) If only one responsive and responsible person or firm responds to a solicitation for a contract to be negotiated pursuant to subsection E of this section, the department may proceed with only one person or firm in the selection process and may award the contract to a single person or firm if the department determines in writing that the fee negotiated pursuant to subsection E of this section is fair and reasonable and that either other prospective persons or firms had reasonable opportunity to respond or there is not adequate time for a resolicitation.

(iii) If a person or firm on the final list withdraws or is removed from the selection process and the selection team determines that it is in the best interest of the department, the selection team may replace that person or firm with the person or firm that submitted qualifications and that is selected by the selection team as the next most qualified.

(d) Base the selection of the final list and order of preference on the final list on demonstrated competence and qualifications only.

3. The department and the selection team shall not request or consider fees, price, man-hours or any other cost information at any point in the selection process under this subsection or subsection D of this section, including the selection of the persons or firms to be interviewed, the selection of the persons or firms to be on the final list, in determining the order of preference of persons or firms on the final list or for any other purpose in the selection process.

4. For construction-manager-at-risk construction services, the contract under a request for qualifications solicitation is limited to a specific single project.

D. The department shall award a contract for construction services to one of the persons or firms on the final list prepared pursuant to subsection C of this section as provided in subsection E or F of this section, except that, if fewer than the number of persons or firms on the final list respond to the request for proposals pursuant to subsection F of this section but at least two persons or firms on the final list submit responsive proposals, or if one or more of the persons or firms on the final list drop out of the selection process pursuant to subsection E or F of this section:

1. If there are three or more remaining persons or firms, the department shall proceed with the selection process.

2. If there are only two remaining persons or firms, as the department deems necessary and appropriate, the department may proceed with the selection process with the two persons or firms or may terminate the selection process and may readvertise pursuant to subsection C of this section.

3. If there is only one remaining person or firm, the department may award the contract to a single person or firm pursuant to subsection E of this section if the department determines in writing that the fee negotiated pursuant to subsection E of this section is fair and reasonable and that either other prospective persons or firms had reasonable opportunity to respond or there is not adequate time for a resolicitation.

E. For the single contract included in the request for qualifications, the department shall enter into negotiations for the contract with the highest qualified person or firm on the final list for the construction services. The negotiations shall include consideration of compensation and other contract terms that the department determines to be fair and reasonable to the department. In making this decision, the department shall take into account the estimated value, the scope, the complexity and the nature of the construction services to be rendered. If the department is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list at compensation and on other contract terms the department determines to be fair and reasonable, the department shall formally terminate negotiations with that person or firm. The department may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list. If a contract for construction services is entered into pursuant to this subsection:

1. If the contract is for construction-manager-at-risk construction services and includes preconstruction services by the contractor, the department shall enter into a written contract with the contractor for preconstruction services under which the department shall pay the contractor a fee for preconstruction services in an amount agreed by the department and the contractor, and the department shall not request or obtain a fixed price or a guaranteed maximum price for the construction from the contractor or enter into a construction contract with the contractor until after the department has entered into the written contract for preconstruction services and a preconstruction services fee.

2. Construction shall not commence until the department and contractor agree in writing on either a fixed price that the department will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced. The construction to be commenced may be the entire project or may be one or more phased parts of the project.

F. As an alternative to subsection E of this section, the department may award job-order-contracting construction services as follows:

1. The department shall use the selection team that is appointed for the request for qualifications pursuant to subsection C of this section.

2. The department shall issue a request for proposals to the persons or firms on the final list that is developed pursuant to subsection C of this section.

3. For job-order-contracting construction services, the request for proposals shall include:

(a) The department's project schedule and project final design and construction budget or life cycle budget for a procurement that includes maintenance services or operations services.

(b) A statement that the contract will be awarded to the offeror whose proposal receives the highest number of points under a scoring method.

(c) A description of the scoring method, including a list of the factors in the scoring method and the number of points allocated to each factor.

(d) A requirement that each offeror separately submit a technical proposal and a price proposal and that the offeror's entire proposal be responsive to the requirements in the request for proposals.

(e) A statement that in applying the scoring method the selection team will separately evaluate the technical proposal and the price proposal and will evaluate and score the technical proposal before opening the price proposal.

(f) If the department conducts discussions pursuant to paragraph 5 of this subsection, a statement that discussions will be held and a requirement that each offeror submit a preliminary technical proposal before the discussions are held.

4. If the department determines to conduct discussions pursuant to paragraph 5 of this subsection, each offeror shall submit a preliminary technical proposal to the department before those discussions are held.

5. If determined by the department and included by the department in the request for proposals, the selection team shall conduct discussions with all offerors that submit preliminary technical proposals. Discussions shall be for the purpose of clarification to ensure full understanding of, and responsiveness to, the solicitation requirements. The department shall accord fair treatment to offerors with respect to any opportunity for discussion and for clarification by the owner. Revision of preliminary technical proposals shall be allowed after submission of preliminary technical proposals and before award for the purpose of obtaining the best and final proposals. In conducting any discussions, information derived from proposals submitted by competing offerors shall not be disclosed to other competing offerors.

6. After any discussions pursuant to paragraph 5 of this subsection are completed or if discussions are not held, each offeror shall separately submit the offeror's final technical proposal and the offeror's price proposal.

7. Before opening any price proposal, the selection team shall open the final technical proposals, evaluate the final technical proposals and score the final technical proposals using the scoring method in the request for proposals. No other factors or criteria may be used in the evaluation and scoring.

8. After the evaluation and scoring of all final technical proposals are completed, the selection team shall open the price proposals, evaluate the price proposals, score the price proposals and complete the scoring of the entire proposals using the scoring method in the request for proposals. No other factors or criteria may be used in the evaluation and scoring.

9. The department shall award the contract to the responsive and responsible offeror whose proposal receives the highest score under the method of scoring in the request for proposals. No other factors or criteria may be used in the evaluation.

10. The contract file shall contain the basis on which the award is made.

G. Until an award and execution of a contract by the department, only the name of each person or firm on the final list developed pursuant to subsection C of this section may be made available to the public. All other information received by the department in response to the request for qualifications or contained in the proposals is confidential in order to avoid disclosure of the contents that may be prejudicial to competing offerors during the selection process. The department shall open the proposals to public inspection after the contract is awarded and the department has executed the contract. To the extent that the offeror designates and the department concurs, trade secrets and other proprietary data contained in a proposal remain confidential.

H. The department may cancel a request for qualifications or a request for proposals or reject in whole or in part any or all proposals as specified in the solicitation if it is in the best interest of the department. The department shall make the reasons for cancellation or rejection part of the contract file.

I. Notwithstanding any other law:

1. The contractor for job-order-contracting construction services is not required to be registered to perform design services pursuant to title 32, chapter 1 if the person or firm actually performing the design services on behalf of the contractor is appropriately registered.

2. The contractor for construction-manager-at-risk construction services or job-order-contracting construction services shall be licensed to perform construction pursuant to title 32, chapter 10.

3. For each project under a construction-manager-at-risk construction services contract, the licensed contractor performing the contract shall perform, with the contractor's own organization, construction work that amounts to at least forty percent of the total contract price for construction. For the purposes of this paragraph, the total contract price for construction does not include the cost of preconstruction services, design services or any other related services or the cost to procure any right-of-way or other cost of condemnation.

4. Each procurement and each request for qualifications pursuant to this section is limited to a single contract for construction-manager-at-risk construction services or job-order-contracting construction services. This restriction does not affect or impair the department's ability to procure multiple contracts for job-order-contracting construction services in a single procurement using a single request for qualifications pursuant to section 28-7367.

5. The department shall not procure any construction services using the construction-manager-at-risk construction services or job-order-contracting construction services method of project delivery after December 31, 2030. For the purposes of this paragraph, the department procures construction services when the department solicits the contract for construction services. If the department solicits a contract for construction services on or before December 31, 2030, the contract may be executed and construction services under the contract may be rendered in whole or in part after December 31, 2030.

J. For job-order-contracting construction services only:

1. The maximum dollar amount of an individual job order shall be $1,000,000 or such higher or lower amount prescribed by the department. Requirements shall not be artificially divided or fragmented in order to constitute a job order that satisfies this requirement.

2. If the contractor subcontracts or intends to subcontract any of the work under a job order and if the job-order-construction services contract includes descriptions of standard individual tasks, standard unit prices for standard individual tasks and pricing of job orders based on the number of units of standard individual tasks in the job order:

(a) The contractor has a duty to deliver promptly to each subcontractor invited to bid a coefficient to the contractor to do all or part of the work under one or more job orders:

(i) A copy of the descriptions of all standard individual tasks on which the subcontractor is invited to bid.

(ii) A copy of the standard unit prices for the individual tasks on which the subcontractor is invited to bid.

(b) If not previously delivered to the subcontractor, the contractor has a duty to deliver promptly the following to each subcontractor invited to or that has agreed to do any of the work included in any job order:

(i) A copy of the description of each standard individual task that is included in the job order and that the subcontractor is invited to perform.

(ii) The number of units of each standard individual task that is included in the job order and that the subcontractor is invited to perform.

(iii) The standard unit price for each standard individual task that is included in the job order and that the subcontractor is invited to perform.

K. Notwithstanding anything to the contrary in this title, the department shall not enter into a contract as contractor to provide construction-manager-at-risk construction services or job-order-contracting construction services.

L. Each contract for construction-manager-at-risk construction services or job-order-contracting construction services shall contain a description of each separate location at which the construction will be performed and a requirement that the contractor include in each of the contractor subcontracts the same location description. The contractor shall include in each subcontract a description of each separate location at which the construction will be performed.

M. Except as otherwise provided in this section, sections 28-6923 and 28-6924, relating to bid, performance and payment bonds, change orders, progress payments, contract retention, definitions and authority to award contracts, apply to department construction-manager-at-risk and job-order-contracting contracts for transportation facilities pursuant to this article.

§ 28-7367 Multiple contracts for the same job-order-contracting construction services to be awarded to separate persons or firms in a single procurement; contract requirements

A. The department may procure in a single procurement multiple contracts for the same job-order-contracting construction services to be awarded to separate persons or firms pursuant to this section.

B. The department shall provide notice of each procurement of multiple contracts for the same job-order-contracting construction services to be awarded to separate persons or firms prescribed in this section and shall award contracts on the basis of demonstrated competence and qualifications for the type of job-order-contracting construction services pursuant to the procedures prescribed in this section.

C. In the procurement of multiple contracts for the same job-order-contracting construction services to be awarded to separate persons or firms pursuant to this section:

1. The department shall issue a request for qualifications for each procurement and publish notice of the request for qualifications in the same manner as provided in section 28-6923. The request for qualifications shall:

(a) State that multiple contracts for the same job-order-contracting construction services may or will be awarded, the number of contracts that may or will be awarded, the services to be performed under each of the multiple contracts and that each of the multiple contracts will be awarded to a separate person or firm.

(b) Include the number of persons or firms to be included on the final list. The number on the final list shall be the number of contracts that may or will be awarded plus a number that is determined by the department and that is not more than five.

(c) State the criteria to be used by the selection team to select the persons or firms to perform the job-order-contracting construction services. The request for qualifications shall also state in a manner determined by the department the relative weight of the selection criteria.

(d) If the department will hold interviews as part of the selection process, state that interviews shall be held with a number of persons or firms equal to the number of contracts that may or will be awarded plus a number that is determined by the department and that is not more than five.

2. For each request for qualifications, the department shall initiate a selection team pursuant to section 28-7365, subsection B. A person who is a member of a selection team shall not be a contractor under the contract or provide construction, construction services, materials or services under the contract. The selection team shall:

(a) Evaluate the statements of qualifications and performance data that are submitted in response to the department's request for qualifications.

(b) If determined by the department and included by the department in the request for qualifications, conduct interviews with the number of persons or firms to be interviewed as stated in the request for qualifications regarding the contract and the relative methods of approach for furnishing the required construction services.

(c) After any interviews or if interviews are not held, in order of preference, based on the criteria and the weighting of criteria established and published by the department and included in the request for qualifications, select the final list of persons or firms the selection team deems to be the most qualified to provide the construction services and, in the case of a contract that will be negotiated under subsection E of this section, rank the persons or firms on the final list in order of preference. The selection team shall base the selection of the final list and the order of preference only on demonstrated competence and qualifications. The number of persons or firms on the final list shall be the number of persons or firms specified in the request for qualifications, except that:

(i) If a smaller number of responsive and responsible persons or firms respond to the solicitation, the department may have the selection team proceed with the selection process, including interviews and the final list, with the remaining persons or firms if at least two persons or firms remain or the department may readvertise pursuant to this subsection as the department deems necessary or appropriate.

(ii) If only one responsive and responsible person or firm responds to a solicitation for a contract to be negotiated pursuant to subsection E of this section, the department may proceed with only one person or firm in the selection process and may award the contract to a single person or firm if the department determines in writing that the fee negotiated pursuant to subsection E of this section is fair and reasonable and that either other prospective persons or firms had reasonable opportunity to respond or there is not adequate time for a resolicitation.

(iii) If a person or firm on the final list withdraws or is removed from the selection process and the selection team determines that it is in the best interest of the department, the selection team may replace that person or firm with the person or firm that submitted qualifications and that is selected by the selection team as the next most qualified.

(d) Base the selection of the final list and order of preference on the final list only on demonstrated competence and qualifications.

3. The department and the selection team shall not request or consider fees, price, man-hours or any other cost information at any point in the selection process under this subsection or subsection D of this section, including the selection of the persons or firms to be interviewed, the selection of the persons or firms to be on the final list, in determining the order of preference of persons or firms on the final list or for any other purpose in the selection process.

D. The department shall award the multiple contracts for job-order-contracting construction services to the separate persons or firms on the final list prepared pursuant to subsection C of this section as provided in subsection E or F of this section, except that, if fewer than the number of persons or firms on the final list respond to the request for proposals pursuant to subsection F of this section but at least two persons or firms on the final list submit responsive proposals, or if one or more of the persons or firms on the final list drop out of the selection process pursuant to subsection E or F of this section:

1. If there are three or more remaining persons or firms, the department shall proceed with the selection process.

2. If there are only two remaining persons or firms, as the department deems necessary and appropriate, the department may proceed with the selection process with the two persons or firms or may terminate the selection process and may readvertise pursuant to subsection C of this section.

3. If there is only one remaining person or firm, the department may award one of the multiple contracts to the single person or firm pursuant to subsection E of this section if the department determines in writing that the fee negotiated pursuant to subsection E of this section is fair and reasonable and that either other prospective persons or firms had a reasonable opportunity to respond or there is not adequate time for a resolicitation.

E. For multiple contracts for the same job-order-contracting construction services included in the request for qualifications, the department shall enter into negotiations with the number of the highest qualified persons or firms on the final list equal to the number of contracts that may or will be awarded. The negotiations shall include consideration of compensation and other contract terms that the department determines to be fair and reasonable to the department. In making this decision, the department shall take into account the estimated value, the scope, the complexity and the nature of the construction services to be rendered. If the department is not able to negotiate a satisfactory contract with a person or firm with whom the department has commenced negotiations at compensation and on other contract terms the department determines to be fair and reasonable, the department shall formally terminate negotiations with that person or firm. The department may undertake negotiations with the next most qualified person or firm on the final list with whom the department is not then negotiating and with whom the department has not previously negotiated in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list. As to each contract for job-order-contracting construction services entered into pursuant to this subsection, construction shall not commence until the department and the contractor agree in writing on either a fixed price that the department will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced.

F. As an alternative to subsection E of this section, the department may award multiple contracts for the same job-order-contracting construction services as follows:

1. The department shall use the selection team that is appointed for the request for qualifications pursuant to subsection C of this section.

2. The department shall issue a request for proposals to the persons or firms on the final list that is developed pursuant to subsection C of this section.

3. The request for proposals shall include:

(a) The department's project schedule and project final design and construction budget or life cycle budget for a procurement that includes maintenance services or operations services.

(b) A statement that the contract will be awarded to the offerors whose proposals receive the highest number of points under a scoring method.

(c) A description of the scoring method, including a list of the factors in the scoring method and the number of points allocated to each factor.

(d) A requirement that each offeror separately submit a technical proposal and a price proposal and that the offeror's entire proposal be responsive to the requirements in the request for proposals.

(e) A statement that in applying the scoring method the selection team will separately evaluate the technical proposal and the price proposal and will evaluate and score the technical proposal before opening the price proposal.

(f) If the department conducts discussions pursuant to paragraph 5 of this subsection, a statement that discussions will be held and a requirement that each offeror submit a preliminary technical proposal before the discussions are held.

4. If the department determines to conduct discussions pursuant to paragraph 5 of this subsection, each offeror shall submit a preliminary technical proposal to the department before those discussions are held.

5. If determined by the department and included by the department in the request for proposals, the selection team shall conduct discussions with all offerors that submit preliminary technical proposals. Discussions shall be for the purpose of clarification to ensure full understanding of, and responsiveness to, the solicitation requirements. The department shall accord fair treatment to offerors with respect to any opportunity for discussion and for clarification by the owner. Revision of preliminary technical proposals shall be allowed after submission of preliminary technical proposals and before the award for the purpose of obtaining the best and final proposals. In conducting any discussions, information derived from proposals submitted by competing offerors shall not be disclosed to other competing offerors.

6. After any discussions pursuant to paragraph 5 of this subsection are completed or if discussions are not held, each offeror shall separately submit the offeror's final technical proposal and the offeror's price proposal.

7. Before opening any price proposal, the selection team shall open the final technical proposals, evaluate the final technical proposals and score the final technical proposals using the scoring method in the request for proposals. No other factors or criteria may be used in the evaluation and scoring.

8. After the evaluation and scoring of all final technical proposals are completed, the selection team shall open the price proposals, evaluate the price proposals, score the price proposals and complete the scoring of the entire proposals using the scoring method in the request for proposals. No other factors or criteria may be used in the evaluation and scoring.

9. The department shall award the multiple contracts for job-order-contracting construction services to the responsive and responsible offerors whose proposals receive the highest scores under the method of scoring in the request for proposals. No other factors or criteria may be used in the evaluation.

10. The contract file shall contain the basis on which the award is made.

G. Until an award and execution of all of the multiple contracts by the department, only the name of each person or firm on the final list developed pursuant to subsection C of this section may be made available to the public. All other information received by the department in response to the request for qualifications or contained in the proposals is confidential in order to avoid disclosure of the contents that may be prejudicial to competing offerors during the selection process. The department shall open the proposals to public inspection after the contract is awarded and the department has executed all of the multiple contracts. To the extent that the offeror designates and the department concurs, trade secrets and other proprietary data contained in a proposal remain confidential.

H. The department may cancel a request for qualifications or a request for proposals or reject in whole or in part any or all proposals as specified in the solicitation if it is in the best interest of the department. The department shall make the reasons for cancellation or rejection part of the contract file.

I. Notwithstanding any other law:

1. The contractor for job-order-contracting construction services is not required to be registered to perform design services pursuant to title 32, chapter 1 if the person or firm actually performing the design services on behalf of the contractor is appropriately registered.

2. The contractor for job-order-contracting construction services shall be licensed to perform construction pursuant to title 32, chapter 10.

3. The department shall not procure any construction services using the job-order-contracting construction services method of project delivery under this section after December 31, 2030. For the purposes of this paragraph, the department procures construction services if the department solicits the contract for construction services. If the department solicits a contract for construction services on or before December 31, 2030, the contract may be executed and construction services under the contract may be rendered in whole or in part after December 31, 2030.

J. For job-order-contracting construction services only:

1. The maximum dollar amount of an individual job order shall be one million dollars or the higher or lower amount prescribed by the department. Requirements shall not be artificially divided or fragmented in order to constitute a job order that satisfies this requirement.

2. If the contractor subcontracts or intends to subcontract any of the work under a job order and if the job-order-contracting construction services contract includes descriptions of standard individual tasks, standard unit prices for standard individual tasks and pricing of job orders based on the number of units of standard individual tasks in the job order:

(a) The contractor has a duty to deliver promptly to each subcontractor invited to bid a coefficient to the contractor to do all or part of the work under one or more job orders:

(i) A copy of the descriptions of all standard individual tasks on which the subcontractor is invited to bid.

(ii) A copy of the standard unit prices for the individual tasks on which the subcontractor is invited to bid.

(b) If not previously delivered to the subcontractor, the contractor has a duty to deliver promptly the following to each subcontractor invited to or that has agreed to do any of the work included in any job order:

(i) A copy of the description of each standard individual task that is included in the job order and that the subcontractor is invited to perform.

(ii) The number of units of each standard individual task that is included in the job order and that the subcontractor is invited to perform.

(iii) The standard unit price for each standard individual task that is included in the job order and that the subcontractor is invited to perform.

K. Each contract for job-order-contracting construction services shall contain a description of each separate location at which the construction will be performed and a requirement that the contractor include in each of the contractor subcontracts the same location description. The contractor shall include in each subcontract a description of each separate location at which the construction will be performed.

L. Except as otherwise provided in this section, sections 28-6923 and 28-6924, relating to bid, performance and payment bonds, change orders, progress payments, contract retention, definitions and authority to award contracts, apply to department job-order-contracting contracts for transportation facilities pursuant to this section.

§ 28-7368 Multiterm contracts for job-order-contracting construction services

A. A contract for construction services using the job-order-contracting method may be entered into for a period of up to five years, as deemed to be in the best interest of the department, if the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and monies are available for the first fiscal year at the time of contracting. Payment and performance obligations for succeeding fiscal years are subject to the availability and appropriation of monies.

B. Before the use of a multiterm contract, the department shall determine in writing that:

1. Estimated requirements cover the period of the contract and are reasonable and continuing.

2. The contract serves the best interests of the department by encouraging effective competition or otherwise promoting economies in the department's procurement.

C. If monies are not appropriated or otherwise made available to support the continuation of performance in a subsequent fiscal year, the contract shall be canceled and the contractor may only be reimbursed for the reasonable value of any nonrecurring costs that are incurred but not amortized in the price of the construction services delivered under the contract or that are otherwise not recoverable. The cost of cancellation may be paid from any appropriations available for these purposes. Contractors are not entitled to compensation for a decision to not renew or extend a contract.

§ 28-7369 Insurance requirements in procurements

If contractor insurance is required for services procured pursuant to this article, the insurance shall be placed with an insurer authorized to transact insurance in this state pursuant to title 20, chapter 2, article 1 or a surplus lines insurer approved and identified by the director of the department of insurance and financial institutions pursuant to title 20, chapter 2, article 5.

Article 14 Telecommunication Facility Installation

§ 28-7381 Definitions

In this article, unless the context otherwise requires:

1. "Broadband service":

(a) Means providing access and transport to the internet, computer processing, information storage or protocol conversion in either the upstream or downstream direction, as established by the federal communications commission.

(b) Does not include information content or service applications provided over the access service or any intrastate service that was subject to a tariff as of January 1, 2012.

2. "Longitudinal access" means access to or use of any part of a right-of-way of a highway that extends generally parallel to the right-of-way for a total of thirty or more linear meters.

3. "Provider":

(a) Means an entity that provides for the sale or resale of wholesale or retail broadband services in this state and that is recognized as an eligible telecommunications carrier by the Arizona corporation commission or that meets federal communications commission and industry carrier class service guidelines or is a political subdivision that has statutory authority to provide communications services.

(b) Includes a video service provider as defined by section 11-1901.

4. "Telecommunication facility" means any cable, line, fiber, wire, conduit, innerduct, access manhole, handhole, tower, hut, pedestal, pole, box, transmitting equipment, receiving equipment or power equipment or any other equipment, system or device that is used to transmit, receive, produce or distribute by wireless, wireline, electronic or optical signal for communication purposes.

§ 28-7382 Telecommunication facility installation; highway construction projects; expanded use; action for just compensation; excavation; notice

A. The director, or a provider with permission from the department, may install telecommunication facilities pursuant to this article.

B. The director may lease a telecommunication facility to providers pursuant to this article and coordinate with providers regarding planning or relocating of a telecommunication facility and any related provider telecommunication facilities within the right-of-way at the provider's expense. The director may limit provider access to any telecommunication facilities within the right-of-way for initial installation and infrequent access for maintenance purposes and may take other actions necessary to maintain highway safety.

C. The director, or a provider with permission from the department, may install a telecommunication facility without regard to the timing of a related existing road construction project.

D. For the purposes of installing and operating a telecommunication facility, if the department, directly or through a provider, expands the use of an existing easement or other property right that is owned, held or used by the department for transportation purposes and the expanded use reduces the fair market value of the property over which the easement or other property right runs, the property owner is entitled to just compensation from the department or provider.

E. The property owner must commence an action in the superior court for just compensation based on diminution in value not later than eighteen months after the date the department provides notice to the property owner of the expanded use.

F. Notice under subsection E of this section is provided if sent by first class mail to the last known address of the property owner.

G. In an action for just compensation based on a claim of expanded use for installation of a telecommunication facility, all of the following apply:

1. The court or jury shall ascertain and assess the diminution in value of the property based on the difference between the fair market value of the entire parcel immediately before the expanded use and the fair market value of the entire parcel immediately after the expanded use.

2. Evidence of revenues or profits derived from or the rental value of an assembled communications corridor are not admissible in determining fair market value.

3. On payment of just compensation, the expanded use is deemed fully vested in the department and the expanded use shall run with the land.

H. A class action may not be maintained against the department or provider in any action for just compensation based on a claim of expanded use for the installation of a telecommunication facility.

I. Actions for just compensation as described in this section include trespass, inverse condemnation and other similar causes of action.

J. This section does not prohibit the department or a provider from reaching an agreement with a property owner to waive a claim for just compensation related to expanded use for the installation of a telecommunication facility or from acquiring the right to use the property by other lawful means.

K. If excavation is required to install fiber optic cable or other underground telecommunication facilities within an existing easement or other property right that is owned, held or used by the department for transportation purposes, a provider with permission from the department to install privately owned telecommunication facilities shall provide written notice to the property owner of the expanded use for installation of the telecommunication facility before excavation. The provider shall send the notice by first class mail to the last known address of the property owner. A notice sent to the property owner entitled to notice under this subsection must include all of the following:

1. The name and mailing address of the provider.

2. The mailing address, telephone number and email address of a representative of the provider.

3. A summary statement describing the activities to be conducted during the excavation.

4. The approximate dates when the excavation will start and end.

L. The notice prescribed in subsection K of this section is not required before the provider may use an easement or other property right that includes an authorization for excavation for the purposes of installing a telecommunication facility. Failure to provide the notice prescribed in subsection K of this section:

1. Prohibits the provider from proceeding with an excavation until the notice is provided.

2. Does not invalidate or prevent the department from expanding the use of the easement or property right as otherwise described in this section.

M. Compensation provided by this section shall be paid from the smart highway corridor trust fund established by section 28-7387.

§ 28-7383 Management of state-owned telecommunication facilities

The department may enter into an agreement with a public or private entity for the purpose of using, managing or operating state-owned telecommunication facilities and coordinating activities in this state relating to planning, mapping and procuring broadband service.

§ 28-7384 Longitudinal telecommunication access in the highway system; agreements; restrictions; rulemaking

A. Except as provided in subsection E of this section, the department may allow a provider longitudinal access to the right-of-way of a highway for the installation, operation and maintenance of a telecommunication facility.

B. The department shall enter into an agreement with a provider and issue a permit before granting the provider any longitudinal access under this section.

C. Except as specifically provided by the agreement, a property interest in a right-of-way may not be granted under this section.

D. An agreement entered into by the department under this section shall:

1. Specify the terms and conditions for renegotiating the agreement.

2. Specify maintenance responsibilities for each telecommunication facility.

3. Be nonexclusive.

4. Be limited to a maximum term of thirty years.

E. The department may not grant any longitudinal access under this section that results in a significant compromise of the safe, efficient and convenient use of the highway for the traveling public.

F. The director shall adopt rules that:

1. Govern the installation, operation and maintenance of a telecommunication facility granted longitudinal access under this section.

2. Specify the procedures for establishing an agreement for longitudinal access for a provider.

3. Provide for the relocation or removal of a telecommunication facility for any of the following:

(a) Needed changes to a highway.

(b) Expiration of an agreement.

(c) Breach of an agreement.

§ 28-7385 Longitudinal telecommunication access to highway system right-of-way; compensation

A. The department shall require compensation from a provider for longitudinal access to the right-of-way of a state highway. The compensation shall be all of the following:

1. Fair and reasonable.

2. Competitively neutral.

3. Nondiscriminatory.

4. Open to public inspection.

5. Established to promote access by multiple providers.

6. Established for zones of this state.

7. Established to encourage the deployment of digital infrastructure within this state.

8. A lump sum payment or annual installment, at the option of the provider.

9. Set pursuant to subsection I of this section.

B. The compensation may be cash, in-kind compensation or a combination of cash and in-kind compensation.

C. In-kind compensation requires the agreement of both the provider and the department.

D. The department shall determine the present value of any in-kind compensation based on the incremental cost to the provider.

E. The value of in-kind compensation or a combination of cash and in-kind compensation shall be equal to or greater than the amount of cash compensation that would be charged if the compensation is cash only.

F. The department shall provide for the proportionate sharing of costs among the department and providers for joint trenching or trench sharing based on the amount of conduit innerduct space that is authorized in the agreement for the trench.

G. If two or more providers are required to share a single trench, each provider in the trench shall share the cost and benefits of the trench pursuant to subsection F of this section on a fair, reasonable, competitively neutral and nondiscriminatory basis.

H. The department, by rule, shall establish a schedule of rates of compensation for any longitudinal access granted under this section.

I. The department may not pay any cost of relocation of a private telecommunication facility granted longitudinal access to the right-of-way of a highway on the interstate system under this section.

J. The department shall deposit, pursuant to sections 35-146 and 35-147, monies collected pursuant to this section in the smart highway corridor trust fund established by section 28-7387.

K. Any telecommunications capacity acquired as in-kind compensation shall be used exclusively for the further development of telecommunications that serve state agencies and enhance connectivity for higher and public education and may not be sold or leased in competition with telecommunication or internet service providers.

L. A person may not use compensation paid to the department pursuant to this section as evidence of the market or other value of the access for any other purpose, including condemnation proceedings, other litigation, the application of rates of taxation or the establishment of franchise fees relating to longitudinal access rights.

§ 28-7386 Use and access to state-owned conduit; compensation

A. The department may offer a provider use of and access to its spare conduit and related facilities if the department does all of the following:

1. Determines the spare conduit and related facilities are not needed for highway purposes.

2. Receives fair compensation for the use of and access to the spare conduit and related facilities.

3. Offers such use and access in a competitively neutral and nondiscriminatory manner as to all similarly situated providers.

B. The department shall establish rates of compensation for the use of and access to its spare conduit to ensure that the department receives fair compensation for the value of its underground installations of conduit and related facilities. The compensation must be fair and reasonable and charged in a competitively neutral and nondiscriminatory manner to all similarly situated providers.

C. Any compensation pursuant to this section must be set forth in an agreement entered into between the department and the provider.

D. The department shall determine the annual compensation to be paid by each provider for the use of its conduit and related facilities based on the present value of the estimated, reasonable cost to the department of trenching to place conduit, fiber and other related facilities.

E. The department may accept in-kind compensation for the use of and access to its spare conduit and related facilities in accordance with the valuation procedures prescribed in section 28-7385.

F. The department shall deposit, pursuant to sections 35-146 and 35-147, monies collected pursuant to this section in the smart highway corridor trust fund established by section 28-7387.

G. This section does not require the department to receive compensation from any budget unit of this state for use of and access to conduit and related facilities.

§ 28-7387 Smart highway corridor trust fund; purpose

A. The smart highway corridor trust fund is established consisting of the following:

1. Legislative appropriations.

2. Monies received from the sales or leases of rights-of-way, telecommunication facilities and telecommunication services pursuant to sections 28-7385 and 28-7386.

3. Monies received from providers to reimburse costs for compensation claims pursuant to section 28-7382.

B. Monies in the smart highway corridor trust fund shall be used for the following:

1. The maintenance, operation and expansion of telecommunication facilities and telecommunication services within rights-of-way that are managed by the department.

2. The payment of compensation pursuant to section 28-7382.

C. The department shall administer the fund. Monies in the fund are continuously appropriated. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

D. 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.

Chapter 21 State Highway Financing and Bonding

Article 1 State Highway Fund Bonds

§ 28-7501 Definitions

In this article, unless the context otherwise requires:

1. "Any highway purpose" includes any one or more of the following purposes:

(a) Payment of highway obligations.

(b) The cost of and cost allocated to construction, reconstruction, maintenance and repair of public highways and bridges, county, city and town roads and streets.

(c) The acquisition of real property for future highway needs.

(d) The cost of constructing landscape buffers, noise barriers, pedestrian bypasses, multi-use paths and other environmental impact mitigation measures to mitigate the adverse impact of freeways on local neighborhoods.

2. "Bond related expenses" means:

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

(b) Fees, expenses and costs of registrars.

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

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

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

4. "Bonds" means bonds of the board issued pursuant to this article.

§ 28-7502 Bond authority

A. Subject to this article, the board may:

1. Issue its negotiable bonds in a principal amount that in the opinion of the board is necessary to provide sufficient monies for any highway purpose, to establish reserves to secure the bonds and to provide for the payment of all other expenditures of the board incidental to and necessary and convenient to carry out these purposes.

2. Issue refunding bonds if the board deems refunding expedient.

3. Refund any bonds issued by the board or by its predecessor in interest, the Arizona state highway commission, if these bonds are secured from the same source of revenues as the bonds authorized in this article, by the issuance of new bonds, whether or not the bonds to be refunded have matured.

4. Issue bonds partly to refund bonds then outstanding and partly for any highway purpose consistent with this article or as the legislature may authorize.

5. Provide for the registration as to the principal or both principal and interest of the bonds.

B. Regardless of whether or not the bonds are of such form or character as to be negotiable instruments under the terms of the negotiable instruments law, the bonds are fully negotiable within the meaning of and for all purposes of the negotiable instruments law.

§ 28-7503 Bond requirements

The bonds shall:

1. Be authorized by resolution of the board.

2. Bear such date or dates and mature at such time or times, not exceeding thirty years from their respective dates, as the resolution or resolutions may provide.

3. Bear interest at such rate or rates, including rates that may vary from time to time pursuant to parameters set by the board in the authorizing resolution.

4. Be in the denominations, be in the form, either coupon or registered, be executed in the manner, be payable in the medium of payment at such place and be subject to the terms of redemption, at the option of either the board or the owner of the bond, as the resolution or resolutions provide.

5. Be sold at public or private sale above, at or below par and on the terms the board determines, except that bonds to fund or refund other bonds may be exchanged with the holders of bonds being funded or refunded on terms the board determines.

§ 28-7504 Bond payment; security

A. In connection with the issuance of the bonds authorized by this article or to secure the payment of the bonds and interest on the bonds, the board by resolution may:

1. Provide that bonds issued under this article may be secured by a first lien, subject to section 28-7509, on all or any part of the monies paid into the state highway fund from the sources specifically collected as prescribed in article IX, section 14, Constitution of Arizona, and the monies distributed pursuant to section 28-5808.

2. Pledge and assign to or in trust with a trustee appointed by the board for the benefit of the holder or the holders of the bonds any part of the state highway fund revenues collected as prescribed in article IX, section 14, Constitution of Arizona, and the monies distributed pursuant to section 28-5808, as will be necessary to pay the principal of and interest on the bonds as the principal and interest become due.

3. Set aside, regulate and dispose of reserves and sinking funds.

4. Provide that sufficient amounts of the proceeds from the sale of the bonds may be used to fully or partly fund all reserves or sinking funds set up by the bond resolution.

5. Prescribe the procedure, if any, by which the terms of a contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given.

6. Provide for payment from the proceeds of the sale of the bonds of all fees, charges and bond related expenses or obligations incurred by the board in the issuance, sale, delivery and payment of the bonds.

7. Do any other matters, of like or different character, that may in any way affect the security and protection of the bonds.

B. A pledge made pursuant to this article is valid and binding from the time when the pledge is made.

C. The monies pledged pursuant to this article and deposited in the state highway fund are immediately subject to the lien of the pledge without any future physical delivery or further act, and any lien of any pledge is valid or binding against all parties having claims of any kind in tort, contract or otherwise against the board regardless of whether the parties have notice of the lien or pledge. When placed in the records of the board, the official resolution or trust indenture or any instrument by which this pledge is created is notice to all concerned of the creation of the pledge, and these instruments are not required to be recorded in any other place.

§ 28-7505 Liability; bond validity

A. The members of the board or a person executing the bonds is not personally liable for the payment of the bonds.

B. The bonds are valid and binding obligations of the department notwithstanding the fact that before the delivery of the bonds any of the officers whose signatures appear on the bonds cease to be officers of the department.

C. From and after the sale and delivery of the bonds, the bonds are incontestable by the board or department.

§ 28-7506 Bond purchase; cancellation

The board may purchase bonds out of any monies available for the purchase, and these bonds shall then be canceled, at a price of not more than either of the following:

1. If the bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date on the bonds.

2. If the bonds are not then redeemable, the redemption price applicable on the first date after the purchase on which the bonds become subject to redemption plus accrued interest to that date.

§ 28-7507 Notice; bond issuance

A. The board shall publish a notice of its intention to issue bonds under this article for at least five consecutive days in a newspaper published in this state. The last day of publication shall be at least ten days before the issuance of the bonds.

B. The notice shall state the amount of the bonds to be sold and the intended date of issuance.

C. A copy of the notice shall be hand delivered or sent by certified mail with return receipt to the director of the department of administration on or before the last day of publication.

§ 28-7508 Financial interest prohibited; violation; classification

A. A member of the board or employee of the department shall not have a direct or indirect financial interest in any real property for future highway needs that is purchased from monies made available by the issuance of bonds.

B. A person who violates this section is guilty of a class 2 misdemeanor.

§ 28-7509 Highway bond proceeds fund; investment

A. The highway bond proceeds fund is established. After deducting the necessary fees, charges and expenses incurred in the issuance and sale of the bonds and any amounts necessary to provide for the payment of refunded bonds, the department shall promptly deposit, pursuant to sections 35-146 and 35-147, the proceeds received from the sale and delivery of the bonds for all purposes in the highway bond proceeds fund. The state treasurer shall maintain the fund separate and apart from all other funds, except that the treasurer shall first apply those amounts of the bond proceeds provided in the resolution issuing the bonds to all reserve and sinking funds created in the bond resolution. The department may spend monies in the highway bond proceeds fund for any lawful purpose not inconsistent with the resolution or resolutions authorizing the bonds.

B. The board may order the investment of monies in the highway bond proceeds fund by the state treasurer in any of the following:

1. 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 any investments authorized by any other agencies of the United States government that are now authorized for use to secure public deposits.

2. State, county or municipal bonds issued in this state on which the payments of interest have not been deferred.

C. The order directing the state treasurer to invest the monies shall set forth the specified time when the proceeds from the sale of the bonds shall be used for the purposes directed in the bond resolution, and the state treasurer shall invest the proceeds from the sale of the bonds in the securities prescribed in subsection B of this section in such a way as to mature at the specified date.

D. The board shall use the monies or securities in the highway bond proceeds fund solely for the purposes provided in the bond resolution, except that, if the revenues pledged to secure the bonds ever are insufficient to pay the annual principal and interest on the bonds, the board shall order:

1. The liquidation of the securities remaining in the fund.

2. The state treasurer to apply all such monies in the fund as necessary to make current all payments then due on the bonds.

§ 28-7510 Parity bonds

A. The board may issue parity bonds only when all of the payments due on the principal and interest on the outstanding bonds are current.

B. The board may not issue parity bonds unless the monies subject to pledge for payment of the bonds for the preceding twelve months exceed by three times the highest annual principal and interest payments on all of the outstanding bonds and the bonds to be issued for the highest one year period during the life of both the outstanding bonds and the bonds to be issued.

C. Notwithstanding subsection B of this section, the board may issue parity bonds to refund or refinance any outstanding bonds if the board meets the requirements of subsection B of this section or if the board certifies that the principal and interest payments for each fiscal year on all outstanding bonds and the bonds to be issued immediately after the date of issuance of the refunding parity bonds do not exceed one hundred five per cent of the principal and interest payments for each fiscal year on all outstanding bonds immediately before the issuance of the refunding parity bonds.

D. The bonds sought to be issued shall mature and the principal and interest are payable at the same time as bonds then outstanding that have the same priority of lien.

E. All bonds issued under this article are deemed to contain the restrictions against issuance of parity bonds contained in this section, whether or not the resolution issuing the bonds or the bonds themselves contain covenants to this effect.

F. For the purposes of this section, amounts subject to pledge shall be presumptively determined by a certificate of the chairman of the board.

G. The pledge of revenues prescribed in section 28-7504, subsection A, paragraphs 1 and 2 is not subject to sections 28-6952 through 28-6955, 28-6992, 28-6993 and 28-6995 through 28-7006. The payment of the necessary fees, charges and expenses incurred in the issuance of the bonds and the principal of and interest on the bonds are not subject to section 28-7007 but shall be made in the manner prescribed in the resolution issuing the bonds.

§ 28-7511 Bonds; freeway mitigation; matching amount

A. A city or town may issue general obligation bonds for the purpose of planning, undertaking and carrying out projects for the elimination of present slum and blighted areas and the prevention of the development of those conditions in the future by mitigating the effects of existing and proposed freeway conditions on cities, towns and neighborhoods. The projects may include acquiring land for recreation, water, sewage and drainage facilities, streets, sidewalks, ways and other public places and other projects to develop or redevelop affected areas.

B. The board may use bond monies obtained pursuant to section 28-7510 to match on a one to one basis the city or town general obligation bond monies obtained pursuant to this section to provide funding for expenses related to mitigation measures on property located within the department's right-of-way. If a city or town obtains bond monies pursuant to this section for the purpose of mitigating the effects of proposed freeway conditions on cities, towns and neighborhoods, this state shall not construct the freeway unless the board agrees to the mitigation measures proposed by the city or town.

§ 28-7512 Agreement of state

A. This state pledges to and agrees with the holders of the bonds that this state will not limit or alter the rights vested in the board to collect the fees, excises and taxes as may be necessary to produce sufficient revenue to meet the expense of the state highway system and to fulfill the terms of any agreements made with the holders of the bonds or in any way impair the rights and remedies of the bondholders, until all bonds issued under this article, interest on the bonds, interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders are fully met and discharged.

B. The board as agent for this state may include this pledge and undertaking by this state in its resolutions and indentures securing its bonds.

§ 28-7513 Taxation exemption

The board is regarded as performing a governmental function in carrying out the purposes of this article and is not required to pay taxes or assessments on any of the property acquired or constructed for these purposes or on the activities of the board in maintaining and caring for the real property or in the revenues derived from the real property. The bonds, their transfer and the income from the bonds are at all times free from taxation in this state.

§ 28-7514 Attorney general bond certification

A. The board may submit to the attorney general any bonds to be issued under this article after all proceedings for the authorization of the bonds have been taken. On the submission of the proceedings to the attorney general, the attorney general shall investigate and determine the validity of the bonds and the regularity of all proceedings in connection with the issuance.

B. If the proceedings conform to this article and if it is determined that the bonds when delivered and paid for will constitute binding and legal obligations of the board enforceable according to the terms of the bonds, the attorney general shall certify in substance on the back of each of the bonds that it is issued in accordance with the constitution and laws of this state.

§ 28-7515 Bond obligations of the board

A. Bonds issued pursuant to this article:

1. Are obligations of the board issuing the bonds.

2. Are payable only pursuant to the terms of the bonds.

3. Are not obligations that are general, special or otherwise of this state.

4. Are not a legal debt of this state.

5. Are not enforceable against this state.

B. Payment of the bonds issued pursuant to this article is not enforceable out of any monies of the department other than the income and revenue pledged and assigned to or in trust for the benefit of the holder or holders of the bonds.

§ 28-7516 Bonds; legal investments

Bonds issued under this article are made securities:

1. In which all of the following may properly and legally invest monies including capital in their control or belonging to them:

(a) Public officers and bodies of this state.

(b) Political subdivisions of this state.

(c) Insurance companies and associations and other persons carrying on an insurance business.

(d) Banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and other persons carrying on a banking business.

(e) Administrators, guardians, executors, trustees and other fiduciaries.

(f) Other persons authorized to invest in bonds or other obligations of this state.

2. That may be deposited with and may be received by all public officers and bodies of this state and all political subdivisions of this state for any purpose for which the deposit of bonds or other obligations of this state is authorized.

§ 28-7517 Exclusive law

A. The powers provided by this article are in addition to the powers conferred by any other general or special law. Without reference to any other provision of this title or to any other general or special law, this article is authority for the completion of the purposes prescribed in this article, for entering into acquisition and construction contracts in connection with those purposes and for the authorization, issuance and sale of the bonds pursuant to this article without regard to the procedure required by any other law.

B. Except as otherwise provided in this article, the provisions of this title that relate to the matters contained in this article are superseded because this article is the exclusive law on these matters.

Article 2 Regional Area Road Fund Bonds

§ 28-7561 Bonds payable from transportation excise taxes

A. The board is designated as the body having sole and exclusive power to authorize and issue bonds or incur long-term obligations payable in whole or in part from monies in a regional area road fund established by chapter 17, article 1 of this title. The board may act for and on behalf of a county that has a regional area road fund established by chapter 17, article 1 of this title to:

1. Issue negotiable bonds payable solely from monies paid into the bond account of the respective regional area road fund in a principal amount that in the opinion of the board is necessary to provide sufficient monies for any lawful purpose for which the respective regional area road fund monies may be spent, to establish reserves to secure the bonds and to provide for the payment of all other expenditures of the board that are incidental, necessary and convenient to carry out these purposes.

2. Issue refunding bonds if the board deems refunding expedient, including refunding any bonds and other obligations issued pursuant to chapter 21 of this title if the proceeds of the bonds and other obligations to be refunded are used for the purposes provided in section 28-6304, subsection C, paragraph 4 or 5, as applicable, whether the bonds and other obligations to be refunded have or have not matured. Proceeds of the refunding bonds may be used to pay principal, interest or redemption premiums on the refunded bonds and other obligations.

3. Refund any bonds issued by the board and payable from regional area road fund income as authorized in this article by the issuance of refunding bonds, whether the bonds to be refunded have or have not matured. Proceeds of refunding bonds may be used to pay principal, interest or redemption premiums on refunded bonds.

4. Issue bonds partly to refund bonds and other obligations described in paragraphs 2 and 3 of this subsection outstanding and partly for any other purpose consistent with this article.

B. Regardless of whether or not the bonds are of such form or character as to be negotiable instruments under the terms of the uniform commercial code, the bonds are fully negotiable within the meaning and for all purposes of the uniform commercial code.

§ 28-7562 Bond requirements

A. The bonds authorized by this article shall:

1. Be authorized by resolution of the board.

2. Bear such date or dates and mature at such time or times, not exceeding the earlier of twenty years from their respective dates or the date the transportation excise taxes securing the bonds cease, as the resolution or resolutions may provide.

3. Bear interest at such rate or rates, including rates that may vary from time to time pursuant to parameters set by the board in the authorizing resolution.

4. Be in the denomination, be in the form, either coupon or registered, be executed in the manner and be payable as to principal, interest or premium in the medium of payment at the office of the state treasurer of this state or at such other place or places as the board provides either by automatic deposit, wire transfer or mail, as the resolution or resolutions may provide.

5. Be subject to the terms of redemption, at the option of either the board or the owner of the bond, as the resolution or resolutions may provide.

B. The bonds may be sold at either public or private sale, above, at or below par and on terms the board determines. Bonds to fund or refund other bonds may be exchanged with the holders of bonds being funded or refunded on terms the board determines.

§ 28-7563 Bond payment; security

In connection with the issuance of the bonds authorized by this article or to secure the payment of the bonds and interest on the bonds, the board by resolution may:

1. Provide that bonds issued under this article may be paid with and secured by a pledge on all or any part of the monies paid into the bond account of the respective regional area road fund, and if monies in the bond account are ever insufficient, from any other unobligated monies in the construction account or the bond proceeds account. The board may:

(a) Set the priority of lien or claim of any series or issue of bonds against any other series or issues.

(b) Not abrogate or change the priority unless the affected series or issue is to be fully paid or fully provided for by the issuance of refunding bonds or the holders of the bonds affected agree in writing to the change.

2. Pledge and assign to or in trust, with a trustee appointed by the board, for the benefit of the holder or the holders of the bonds all or any part of the monies paid into the bond account of the respective regional area road fund as will be necessary to pay the principal of, interest on and premium, if any, on the bonds as the bonds become due.

3. Set aside, regulate and dispose of reserves and sinking funds.

4. Provide that sufficient amounts of the proceeds from the sale of the bonds may be used to fully or partly fund all reserves or sinking funds set up by the bond resolution.

5. Prescribe the procedure, if any, by which the terms of a contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given.

6. Provide for payment from the proceeds of the sale of the bonds of all legal and financial expenses incurred by the board in the issuance, sale, delivery and payment of the bonds.

7. Do any other matters, of like or different character, that in any way may affect the security and protection of the bonds.

§ 28-7564 Pledges; liens

A. A pledge made pursuant to this article is valid and binding from the time when the pledge is made. The monies pledged pursuant to this article when placed in the bond account, bond proceeds account or construction account of the respective regional area road fund are immediately subject to the lien of the pledge without any future physical delivery or further act.

B. A lien of any pledge is valid or binding against all parties having claims of any kind in tort, contract or otherwise against the board, regardless of whether the parties have notice. When placed in the records of the board, the official resolution or trust indenture or any instrument by which this pledge is created is notice to all concerned of the creation of the pledge, and these instruments are not required to be recorded in any other place. A filing or recording of the resolution of the board creating or extending the lien or pledge in order for the pledge or lien to become fully effective is not required in any office other than in the office of the board.

§ 28-7565 Liability; bond validity

A. The members of the board or a person executing the bonds authorized by this article are not personally liable for the payment of the bonds.

B. The bonds are valid and binding obligations of the board notwithstanding the fact that before the delivery of the bonds any of the officers whose signatures appear on the bonds cease to be officers of the board.

C. From and after the sale and delivery of the bonds, the bonds are incontestable by the board or the county.

§ 28-7566 Bond purchase

The board may purchase bonds authorized by this article out of any monies available, and these bonds may then be canceled, at a price of not more than either of the following:

1. If the bonds are then redeemable, the price then applicable plus accrued interest to the next interest payment date on the bonds.

2. If the bonds are not then redeemable, the redemption price applicable on the first date after the purchase on which the bonds become subject to redemption plus accrued interest to that date.

§ 28-7567 Notice; bond issuance

A. The board shall publish a notice of its intention to issue bonds under this article for at least five consecutive days in a newspaper published in this state. The last day of publication shall be at least ten days before the issuance of the bonds.

B. The notice shall state the amount of the bonds to be sold and the intended date of issuance.

§ 28-7568 Bond proceeds; distribution; expenditures

A. After deducting the necessary costs and expenses of the issuance and sale of the bonds and any amounts necessary to provide for the payment of refunded bonds, the department shall promptly deposit, pursuant to sections 35-146 and 35-147, the proceeds received from the sale and delivery of bonds issued pursuant to this article in the bond proceeds account within the regional area road fund pursuant to chapter 17, article 1 of this title. The department shall first apply those amounts of the bond proceeds provided in the resolution issuing the bonds to all reserve and sinking funds created in the bond resolution.

B. The board shall use the bond proceeds solely for the purposes provided in the bond resolution, except that, if the revenues pledged to secure the bonds ever become insufficient to pay the annual principal and interest on the bonds, the board shall order:

1. The liquidation of any permitted investments remaining in the bond proceeds account.

2. The state treasurer to apply all of the receipts as necessary to make current all payments then due on the bonds.

§ 28-7569 Agreement of state and county

A. This state pledges to and agrees with the holders of the bonds issued under this article that this state will not limit or alter the transportation excise taxes in a way that adversely affects the rights of the holders of the bonds, limit or alter the authority of the respective county levying a transportation excise tax in a way that prevents the imposition of sufficient transportation excise taxes to fulfill the terms of any agreements made with the holders of the bonds or in any way impair the rights and remedies of the bondholders, until all bonds issued under this article, interest on the bonds, interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders are fully met and discharged.

B. The board as agent for this state may include this pledge and undertaking by this state in its resolutions and indentures securing its bonds.

C. A county shall not take any action to lower or terminate any transportation excise tax.

§ 28-7570 Taxation exemption

The board is regarded as performing a governmental function in carrying out the purposes of this article and is not required to pay taxes or assessments on any of the property acquired or constructed or on the activities of the board in maintaining and caring for the real property or in the monies derived from the real property. The bonds issued under this article, their transfer and the income from the bonds are at all times free from taxation in this state.

§ 28-7571 Attorney general bond certification

A. The board may submit to the attorney general any bonds to be issued under this article after all proceedings for the authorization of the bonds have been taken. On the submission of the proceedings to the attorney general, the attorney general shall investigate and determine the validity of the bonds and the regularity of all proceedings in connection with the issuance.

B. If the proceedings conform to this article and if it is determined that the bonds when delivered and paid for will constitute binding and legal obligations of the board enforceable according to the terms of the bonds, the attorney general shall certify in substance on the back of each of the bonds that it is issued in accordance with the constitution and laws of this state.

§ 28-7572 Bond obligations of the board

Bonds issued pursuant to this article:

1. Are obligations of the board issuing the bonds.

2. Are payable only pursuant to the terms of the bonds.

3. Are not obligations general, special or otherwise of this state.

4. Are not a legal debt of this state or of the respective county imposing the transportation excise tax.

5. Are not enforceable against this state or that county out of any monies other than the income and revenue pledged and assigned to or in trust for the benefit of the holder or holders of the bonds.

§ 28-7573 Bonds; legal investments

Bonds issued under this article are made securities:

1. In which all of the following may properly and legally invest monies including capital in their control or belonging to them:

(a) Public officers and bodies of this state.

(b) Political subdivisions of this state.

(c) Insurance companies and associations and other persons carrying on an insurance business.

(d) Banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and other persons carrying on a banking business.

(e) Administrators, guardians, executors, trustees and other fiduciaries.

(f) Other persons authorized to invest in bonds or other obligations of this state.

2. That may be deposited with and may be received by all public officers and bodies of this state and all political subdivisions of this state for any purpose for which the deposit of bonds or other obligations of this state is authorized.

Article 3 Grant Anticipation Notes

§ 28-7611 Definitions

In this article, unless the context otherwise requires:

1. "Grant agreement" means a written agreement between the director and the United States of America or any of its departments or agencies by which the director will receive a grant to construct a project or to reimburse the director for monies spent with respect to the project.

2. "Grant anticipation notes" means notes authorized by this article.

3. "Grant revenues" means any revenues the director will receive under a grant agreement, proceeds of grant anticipation notes and income and gain from the investment of these revenues and proceeds.

§ 28-7612 Grant anticipation notes

After the director has entered into one or more grant agreements, the board may issue and sell grant anticipation notes. The principal, premium, if any, and interest on the notes shall be paid solely from any of the following:

1. The grant revenues.

2. If provided by the board at the time of authorizing the issuance of the grant anticipation notes, other monies lawfully available for application to that purpose, including the proceeds from the sale of other obligations of the director.

§ 28-7613 Refund

The board may issue grant anticipation notes to refund grant anticipation notes previously issued and other obligations, the proceeds of which were or are to be applied to the financing of the project to which the grant agreement relates.

§ 28-7614 Limitations

The amount of grant anticipation notes secured by grant revenues issued by the director shall not exceed the aggregate of all uncollected grant revenues to be received by the board.

§ 28-7615 Application of grant revenues; grant anticipation notes fund; payment of notes

A. On the issuance of any grant anticipation notes, the grant revenues to be received by the director pursuant to the applicable grant agreement shall be collected and, as provided by the board at the time of authorizing the issuance of the grant anticipation notes, used for any of the following:

1. Paid into a special fund to be known as the grant anticipation notes fund.

2. Held for application to the payment of the costs of the project to which the grant agreement relates.

3. Applied to reimburse the director for monies previously spent with respect to the project.

B. As long as any grant anticipation notes are outstanding, monies paid into the grant anticipation notes fund pursuant to subsection A shall only be used to pay principal and interest on the grant anticipation notes.

C. Notwithstanding any other law, this article authorizes the payment when due or redemption in advance of maturity, if the notes so provide, of all principal and interest and redemption premiums on the notes from the monies in the grant anticipation notes fund.

§ 28-7616 Use of proceeds

The proceeds from the sale of the notes shall be used by the director for payment of any of the following:

1. Costs and expenses incurred in the construction or acquisition of the project for which the grant or grants are being made.

2. Legal and financial costs and expenses incurred in issuing and administering the notes.

3. Costs for which the director will be entitled to receive reimbursement pursuant to the grant agreement.

4. If authorized by the board, payment of interest to accrue on the notes during their life.

5. Payment of the principal, premium or interest on other obligations, all or a portion of the proceeds of which were or are to be applied to the financing of the project to which the grant agreement relates.

§ 28-7617 Nature of grant anticipation notes; limited obligation

A. Grant anticipation notes issued under this article are not general obligations of the department, any public officer or employee of the department or this state.

B. The notes are limited obligations payable solely from grant revenues received by the director and, if provided by the board at the time of authorizing the issuance of the grant anticipation notes, other monies lawfully available for application to that purpose and pledged to the payment of the principal, premium, if any, and interest on the notes.

C. A holder of a grant anticipation note may not compel the payment of grant revenues to the director.

§ 28-7618 Attorney general note certification

A. The board may submit to the attorney general any notes to be issued under this article after all proceedings for the authorization of the notes have been taken. On the submission of the proceedings to the attorney general, the attorney general shall investigate and determine the validity of the notes and the regularity of all proceedings in connection with the issuance.

B. If the proceedings comply with this article and the attorney general determines that the notes when delivered and paid for will constitute binding and legal obligations of the board that are enforceable according to the terms of the notes, the attorney general shall certify in substance on the back of each of the notes that each note is issued in accordance with the constitution and laws of this state.

Article 4 Bonds Secured by Bridge Construction or Highway Improvement Revenues

§ 28-7651 Definitions

In this article, unless the context otherwise requires:

1. "Bond" means a bond secured solely by bridge construction revenues or a bond secured solely by highway improvement revenues as authorized and issued pursuant to this article.

2. "Bridge construction revenues" means monies received pursuant to section 42-5032, subsection A and deposited in the bridge construction interest fund or redemption fund under section 28-7656, subsection A.

3. "Highway improvement revenues" means monies received pursuant to section 42-5032, subsection B and deposited in the highway improvement interest fund or redemption fund under section 28-7656, subsection B.

§ 28-7652 Agreement for construction of bridge or highway improvements

A. The department and a county with a population of more than two million persons may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 for the construction of a bridge to provide direct access to commercial, residential and recreational facilities.

The agreement shall:

1. Contain the commitment of this state and the county to transfer bridge construction revenues to the county treasurer for deposit in the bridge construction interest fund or redemption fund under section 28-7656, subsection A for the purpose of financing the construction, design, acquisition and attendant acquisition costs of the bridge.

2. Contain the commitment of the county to pay other monies for the purpose of financing the bridge.

3. Include this state's pledge of sufficient bridge construction revenues to fulfill this state's obligation for funding the bridge.

4. State the responsibilities of each party with regard to planning, designing, constructing, owning and maintaining the bridge.

5. Provide that payment for the costs of the bridge shall be made from contributions from the parties to the agreement and other contributors before the use of bond proceeds.

B. The department and the county may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 for the design, reconstruction and improvement of a county highway approaching and traversing a bridge constructed pursuant to subsection A of this section. The agreement shall:

1. Contain the commitment of this state and the county to transfer highway improvement revenues to the county treasurer for deposit in the highway improvement interest fund or redemption fund pursuant to section 28-7656, subsection B for the purpose of financing the design, reconstruction and improvement costs of the highway.

2. Contain the commitment of the county to pay other monies for the purpose of financing the highway improvements.

3. Include this state's pledge of sufficient highway improvement revenues to fulfill this state's obligation for funding the highway improvements.

4. State the responsibilities of each party with regard to planning, designing, reconstructing, owning and maintaining the highway.

5. Provide that payment for the costs of the highway improvements shall be made from contributions from the parties to the agreement and other contributors before the use of bond proceeds.

6. Contain the representation by the county that it has the legally binding assurance of the owner of a sports entertainment facility as defined in section 42-5032, subsection E and that the owner will reimburse the county for all expenses the county may incur under section 28-401, subsection D, paragraph 4 and section 42-5032, subsection B.

§ 28-7653 Bonds secured by bridge construction revenues; bonds secured by highway improvement revenues

A. If a majority of the members of the county board of supervisors authorizes the issuance of bonds secured by bridge construction revenues by resolution dated before July 1, 1998, the county may issue the bonds so authorized in the manner provided in this article. The bonds secured by bridge construction revenues may be authorized in an aggregate principal amount of not more than five million dollars.

B. If a majority of the members of the county board of supervisors authorizes the issuance of bonds secured by highway improvement revenues by resolution dated before December 31, 2004, the county may issue the bonds so authorized in the manner provided in this article. Bonds secured by highway improvement revenues may be authorized in an aggregate principal amount of not more than five million dollars.

C. All proceeds, revenues, accounting and payments with respect to bonds secured by bridge construction revenues pursuant to this article shall be conducted and maintained separately from those with respect to bonds secured by highway improvement revenues pursuant to this article.

D. Bonds issued pursuant to this article shall not be considered to be a debt of the county or the state within any constitutional or statutory debt limit.

E. When bonds issued pursuant to this article are sold, a schedule shall be filed with the county treasurer showing the amounts of principal and interest to be paid at each principal and interest payment date.

F. The county shall pledge all or any part of the bridge construction revenues to be received and the county's rights in the bridge construction intergovernmental agreement to the payment of an amount of the bonds secured by bridge construction revenues. The county shall pledge all or any part of the highway improvement revenues to be received and the county's rights in the highway improvement intergovernmental agreement to the payment of an amount of the bonds secured by highway improvement revenues. The pledges constitute an irrevocable assignment to the officer charged with paying the applicable bonds that is binding on the county. No notice of the assignment need be filed or recorded and no public notice of any nature is required to make the pledge effective against any person claiming an interest in the bridge construction revenues or highway improvement revenues, as applicable, except a holder of the bonds. On receipt of any payment of bridge construction revenues or highway improvement revenues, the county treasurer shall cause a sufficient portion of the amount received to be deposited in the bridge construction redemption fund and interest fund, or the highway improvement redemption fund or interest fund, established under section 28-7656 pertaining to the applicable bonds.

G. No bridge construction bondholder may claim a preference as to source of payment over any other bridge construction bondholder of the same series. No highway improvement bondholder may claim a preference as to source of payment over any other highway improvement bondholder of the same series.

§ 28-7654 Issuance of bonds

A. The county board of supervisors is authorized to issue bonds secured by a pledge of bridge construction revenues.

B. The county board of supervisors is authorized to issue bonds secured by a pledge of highway improvement revenues.

C. Any bonds issued pursuant to this article may be issued in one or more series, bear the dates, be payable in the medium of payment and at the places, bear the rates of interest, including variable rates, carry the registration privileges and prior redemption provisions, be executed in the manner, contain the other terms, covenants and conditions and be in the form the board of supervisors prescribes. The bonds shall be sold at, above or below par in the manner as the board of supervisors determines.

§ 28-7655 Characteristics of bonds

The bonds issued under this article:

1. Are fully negotiable within the meaning and for all purposes provided by title 47.

2. Are payable only according to their terms from bridge construction revenues or highway improvement revenues, as applicable, and are not general, special or other obligations of the issuing county or this state. The bonds do not constitute a legal debt of this state and are not enforceable against this state. Payment of the bonds shall not be made from any monies other than those allowed to be pledged.

§ 28-7656 Interest fund; redemption fund

A. The treasurer of the county issuing bonds secured by bridge construction revenues shall establish an interest fund and a redemption fund for paying the bonds. The treasurer shall deposit into the funds bridge construction revenues in amounts sufficient to pay the interest and principal of the bonds as they mature. The funds shall be used solely to pay principal and interest on the bonds.

B. The treasurer of the county issuing bonds secured by highway improvement revenues shall establish an interest fund and a redemption fund for paying the bonds. The treasurer shall deposit into the funds highway improvement revenues in amounts sufficient to pay the interest and principal of the bonds as they mature. The funds shall be used solely to pay the principal and interest on the bonds.

C. The funds under subsections A and B shall be established and maintained separately and used exclusively for the respective purposes for which they are established.

§ 28-7657 Pledge of revenues to secure debt instruments

A. Notwithstanding any other provision of this article, a county that receives bridge construction revenues may pledge, by separate covenant included in the resolution authorizing the issuance of bridge construction revenue bonds under this article or obligations it may incur, future receipts of the revenues to the payment of the bridge construction revenue bonds or to the costs of the bridge. The pledge may be included in the resolution authorizing the issuance of the bonds. The resolution authorizing the issuance of the bonds may also authorize assigning bridge construction revenues to a trustee or paying agent to secure the bonds.

B. Notwithstanding any other provision of this article, a county that receives highway improvement revenues may pledge, by separate covenant included in the resolution authorizing the issuance of highway improvement revenue bonds under this article or obligations it may incur, future receipts of the revenues to the payment of the highway improvement revenue bonds or to the costs of the highway improvements. The pledge may be included in the resolution authorizing the issuance of the bonds. The resolution authorizing the issuance of the bonds may also authorize assigning highway improvement revenues to a trustee or paying agent to secure the bonds.

§ 28-7658 Agreement of state

A. This state pledges to and agrees with the holders of the bonds secured by bridge construction revenues and highway improvement revenues that it will not limit, alter or impair the rights vested in a county under this article to receive bridge construction revenues or highway improvement revenues, as applicable, and as necessary to produce sufficient revenue to fulfill the terms of any intergovernmental agreements made with the county, or in any way impair the rights and remedies of the bondholders to receive the necessary revenues, until all the applicable bonds issued under this article are fully met and discharged.

B. The county may include this pledge and undertaking in its resolutions and indentures securing the bonds under this article.

§ 28-7659 Supplemental law

This article is supplemental and alternative to any other provision of law that also enables a county to issue any form or type of bonds.

Article 5 Highway Expansion and Extension Loan Program

§ 28-7671 Definitions

In this article, unless the context otherwise requires:

1. "Eligible highway project" means a highway project that is both:

(a) On the federal aid system, national highway system or state route or state highway system.

(b) Included in either:

(i) The department's state highway construction plan.

(ii) The transportation improvement plan of a regional association of governments.

2. "Eligible transit capital project" means land, buildings or motor vehicles or a combination of land, buildings and motor vehicles that is included in the transportation improvement plan of a regional association of governments and that is part of the federal transit administration's rural public transportation program for entities that are eligible pursuant to section 28-7676 and that have populations of less than fifty thousand persons.

3. "Eligible transportation project" means a transportation project that is eligible pursuant to section 28-7676.

4. "Federal SIB act" means section 350 of the national highway system designation act of 1995 (P.L. 104-59; 109 Stat. 618), any regulations adopted pursuant to that section and any other provisions of federal law providing for state infrastructure banks, infrastructure credit programs and other grant programs for highway purposes and any regulations adopted pursuant to those laws.

5. "Fund" means the highway expansion and extension loan program fund established by section 28-7674.

6. "Indian tribe" means any Indian tribe, band, group or community that is recognized by the United States secretary of the interior and that exercises governmental authority within the limits of any Indian reservation under the jurisdiction of the United States government, notwithstanding the issuance of any patent and including rights-of-way running through the reservation.

7. "Loan repayment agreement" means one or more loan agreements, instruments or other agreements providing for repayment of a loan or other financial assistance and entered into by this state or its agencies, including the department, or a political subdivision or Indian tribe.

8. "Political subdivision" means a county, city, town or special taxing district authorized by law to construct or assist in the construction of an eligible highway project or a county, city, town or special taxing district established pursuant to section 48-5102 to construct or assist in the construction of a transportation project.

9. "SIB cooperative agreement" means a cooperative agreement or agreements entered into by the Arizona department of transportation with the United States department of transportation pursuant to this article and the federal SIB act.

10. "Transportation project" means all or a portion of a project that is included in the state's transportation improvement program or a plan, as defined in section 28-6351, including the project planning, environmental work, design, right-of-way acquisition or construction for the transportation project and associated rolling stock and operating systems but not including an eligible highway project.

§ 28-7673 Powers and duties of the board and department

A. The transportation board may:

1. Make loans or provide other financial assistance to political subdivisions, Indian tribes or this state or its agencies, including the department, from monies in the fund for eligible projects.

2. Enter into a loan repayment agreement with an entity if in the board's judgment the loan repayment agreement is in furtherance of funding eligible projects pursuant to this article.

3. Apply for, accept and administer grants and other financial assistance from the United States government and from other public and private sources that are made for deposit in the fund.

B. The Arizona department of transportation may enter into SIB cooperative agreements or capitalization grant agreements with the United States department of transportation.

C. The board or the department shall deposit, pursuant to sections 35-146 and 35-147, any monies received pursuant to subsection A, paragraphs 2 and 3 and subsection B in the fund.

D. The board and the department may each enter into contracts, execute any agreements or instruments and do any other act necessary or appropriate to carry out the purposes of this article, including exercising any power granted to them pursuant to this title in conjunction with, to facilitate or to otherwise assist the financing or operation of the fund or an eligible project.

E. If a SIB cooperative agreement and the federal SIB act apply, the board and the department shall each comply with the requirements of the SIB cooperative agreement and the federal SIB act in carrying out their powers and duties pursuant to this article.

F. In providing financial assistance pursuant to this article, the board shall not make a gift, grant or donation of monies in the fund, and any financial assistance provided shall be repaid to the fund.

G. This article does not increase the board's bonding authority.

§ 28-7674 Highway expansion and extension loan program fund

A. The highway expansion and extension loan program fund is established. The fund constitutes a state infrastructure bank under the federal SIB act. The state treasurer shall receive in trust, hold and disburse monies in the fund solely for the purposes authorized by this article. The department shall administer the fund as a continuing appropriation in accordance with this article and the federal SIB act. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The fund consists of:

1. Monies appropriated by the legislature.

2. Monies derived from board funding obligations delivered pursuant to section 28-7678. These monies shall be separately accounted for and invested.

3. Monies designated for deposit in the fund by the transportation board, a state agency or a political subdivision.

4. Monies received from the United States government under SIB cooperative agreements, including capitalization grants.

5. Monies received from political subdivisions, Indian tribes or this state or its agencies pursuant to agreements entered into pursuant to this article.

6. Interest and other income received from investing monies in the fund.

7. Gifts, grants, donations or other amounts received from any public or private source for deposit in the fund.

C. The board may use monies in the fund for the following purposes in connection with providing financial assistance under this article:

1. Making eligible project loans or providing other financial assistance to political subdivisions, Indian tribes and this state or its agencies under section 28-7676.

2. Subsidizing interest rates.

3. Providing other forms and methods of financial assistance that are approved by the board and, to the extent required by the federal SIB act, by the United States secretary of transportation and that relate to the eligible project with respect to which the assistance is being provided.

4. Paying the costs to administer the fund, except that no more than the percentage of the aggregate of federal capitalization grants pursuant to the federal SIB act may be used to pay these costs. Monies from other sources may be used without limit to pay these costs.

D. Except for monies received pursuant to subsection B, paragraph 4 of this section, up to ten million dollars of the monies in the fund may be used for eligible transit capital projects in municipalities with a population of less than fifty thousand persons.

E. On notice from the board, 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. The board shall use the monies and other assets in the fund solely for the purposes authorized by this article.

G. The board may establish any accounts or subaccounts in the fund as it determines are necessary or appropriate to carry out the purposes of this article.

H. All proceeds of capitalization grants received from the United States pursuant to the federal SIB act and title 23, United States Code, shall be deposited in the fund and shall be used only to make loans or provide other financial assistance to political subdivisions, Indian tribes and this state or its agencies to design, construct, acquire right-of-way for, restore or rebuild eligible projects, for the purposes prescribed in subsection C of this section or for any other purposes permitted by the federal SIB act and title 23, United States Code.

§ 28-7675 Fund; annual financial audit and report

A. The transportation board shall annually cause a financial audit to be made of the fund. The financial audit shall be conducted by a certified public accountant within six months after the end of each fiscal year. The board shall immediately file a certified copy of the audit with the auditor general.

B. The board shall pay any fees and costs of the financial audit under this section from the fund.

C. The transportation board is exempt from subsection A of this section if all of the following apply:

1. Unexpended monies do not remain in the fund except interest and investment earnings deposited pursuant to section 28-7674, subsection B, paragraph 6.

2. There are no outstanding eligible project loans in the fund.

3. All approved or pending eligible project loans or other financial assistance applications are disbursed, and the board does not expect additional financial assistance applications.

4. There are no outstanding board funding obligations due to the state treasurer.

§ 28-7676 Eligible project loans and other financial assistance

A. A political subdivision or this state or its agencies, including the department, may apply to the transportation board for any loan or other financial assistance from the fund to support an eligible project.

B. An Indian tribe may apply to the board for any loan or other financial assistance from the fund to support an eligible project that the board determines provides substantial public benefits.

C. Through December 31, 2004, of the total amount of monies and other assets in the fund, the board shall provide loans and other financial assistance for use as follows:

1. Fifty per cent in counties with a population of one million two hundred thousand or more persons according to the most recent United States decennial census.

2. Twenty-five per cent in counties with a population of five hundred thousand or more but less than one million two hundred thousand persons according to the most recent United States decennial census.

3. Twenty-five per cent in counties with a population of less than five hundred thousand persons according to the most recent United States decennial census.

D. The percentages prescribed in subsection C of this section apply over the prescribed time period and are not yearly allocations but do not apply to loans made by the board before August 6, 1999.

E. In compliance with any applicable federal requirements, the board shall:

1. Approve, disapprove or modify a simplified application form and guidelines.

2. Prescribe a simplified procedure to apply for and approve financial assistance.

3. Consider at least the following in selecting which eligible projects shall receive financial assistance:

(a) Economic benefits.

(b) Mobility.

(c) Air quality.

(d) Safety.

(e) How quickly the applicant proposes to repay the loan.

(f) The ability of the applicant to repay a loan according to the terms and conditions established by this section.

(g) The availability of assistance for projects located in smaller cities and towns and rural areas.

4. Give a preference of up to twenty per cent to eligible projects that include local, federal or private financial participation in accelerating the project. This preference shall be commensurate with the level of local, federal or private financial participation. The greater the percentage of local, federal or private financial participation is to the total cost of the project, the greater the preference that shall be given to the project.

F. The board may take any of the actions prescribed in subsection E of this section by resolution.

G. The board may impose conditions the board deems necessary to ensure that financial assistance under this article is used according to law and to comply with the applicable requirements of the federal SIB act and SIB cooperative agreements.

H. A loan under this section shall:

1. Bear interest at or below the market interest rate or rates, as determined by the board, to make the project that is the subject of the loan feasible. The interest rate for any loan shall be uniform with interest rates for comparable loans.

2. If the source of the loan is monies designated pursuant to a SIB cooperative agreement, be repaid not longer than ten years after the date the highway project is open to traffic.

3. If the source of the loan is monies other than those monies designated pursuant to a SIB cooperative agreement, be repaid not longer than five years after the date the highway project is open to traffic.

4. Be conditioned on the identification of a revenue source for repaying the loan.

5. Not be made for the nonfederal share of any project that has received a grant under title 23, United States Code.

6. If made to an Indian tribe, be conditioned on the establishment of a dedicated source under the control of a tribally chartered corporation or another tribal entity that is subject to suit by the attorney general to enforce the loan repayment agreement or be secured by assets that, in the event of default of the loan repayment agreement, are subject to execution by the attorney general without the waiver of any claim of sovereign immunity by the tribe.

I. The approval of a loan is conditioned on a written commitment by the political subdivision, the Indian tribe or this state or its agencies to complete all applicable reviews and approvals and to secure all required permits in a timely manner.

J. On the request of the board, the attorney general shall take whatever actions are necessary to enforce a loan repayment agreement and achieve repayment of loans provided by the board pursuant to this article.

K. The state treasurer, to the extent not otherwise expressly prohibited by law, may withhold from a defaulting city, town or county the next succeeding distribution of monies pursuant to chapter 18, article 2 of this title and section 42-6107 otherwise distributable to it, to the extent necessary to meet the certified amount of the deficiency, and shall deposit in the appropriate subaccount in the fund the amount so withheld, except that the state treasurer shall not withhold from the distribution any amount that is necessary, as certified in writing by the defaulting city, town or county to the state treasurer and the director, to make any required deposits then due for payment of principal and interest on bonds issued by a city or town pursuant to title 48, chapter 4, article 5 or by a county pursuant to title 11, chapter 2, article 12. Amounts so certified shall be distributed to the city, town or county. The withholding and deposit in the appropriate subaccount in the fund by the state treasurer shall continue until the director certifies to the state treasurer that the default has been cured.

L. The recipient of any loan retains sole responsibility to ensure that any related eligible project is in compliance with any applicable federal, state or local environmental or other laws, rules or regulations. The board does not assume any responsibility for compliance by the awarding of financial assistance or other actions under this article. The awarding of financial assistance or any other actions by the board under this article do not constitute actions that subject the board to compliance with state or local environmental or other laws.

M. This article does not authorize a political subdivision to issue any bonds or incur any debt except in compliance with applicable law.

N. In order to repay any loan or other financial assistance from the fund, this state or its agencies, including the department, and a political subdivision may enter into a loan repayment agreement with the board.

O. A loan repayment agreement may be payable by a political subdivision, this state or its agencies or an Indian tribe from any revenues otherwise authorized by law to be used or pledged for street and highway purposes and may be secured by any other revenues authorized by law to be pledged to repay long-term obligations. Notwithstanding chapters 17 and 18 of this title, a loan repayment agreement may be payable from monies in a regional area road fund construction account and from revenues distributed pursuant to section 28-6538, subsection B.

P. Payments made pursuant to a loan repayment agreement are not subject to section 42-17106.

Q. This section is exempt from title 41, chapter 6.

§ 28-7677 Acceleration of right-of-way acquisition, design or construction of eligible highway and transportation projects

A. If the department enters into an agreement with a political subdivision or Indian tribe for accelerated right-of-way acquisition, design or construction of an eligible highway project, the agreement may provide for the advancing to the department by the political subdivision or Indian tribe of monies needed for the right-of-way acquisition, design or construction and for the repayment by the department of the advanced monies, with interest, if any, at the agreed on rate, to the political subdivision or Indian tribe. The political subdivision or Indian tribe may make an advance from any available monies, and any advance constitutes an eligible investment for sinking funds or other funds of the political subdivision or Indian tribe.

B. The department shall repay the political subdivision or Indian tribe for an advance, together with interest, if any, on the advance at the agreed on rate, from monies available to the department for the eligible project pursuant to a mutually agreed on repayment schedule. The period for repayment shall not be more than five years from the date of the advance. Notwithstanding chapters 17 and 18 of this title, an advance, together with interest on the advance, may be repaid by the department from monies in a regional area road fund construction account and from revenues distributed pursuant to section 28-6538, subsection B.

C. If the department enters into an agreement with a political subdivision, regional planning agency, metropolitan planning organization or council of governments or designated grant recipient to accelerate a transportation project, the agreement may provide that the political subdivision may advance to the department monies needed for the transportation project. The agreement may also provide for the department's repayment of the advanced monies to the political subdivision with interest at a specified rate. The political subdivision may make an advance from any available monies. Any advance constitutes an eligible investment for sinking funds or other funds of the political subdivision.

D. The department's repayment as described in subsection C of this section shall be made from monies available to the department for the transportation project pursuant to the mutually agreed on repayment schedule. An advance, together with interest on the advance, may be repaid by the department from any lawfully available monies.

Article 6 Highway Project Advancement Notes

§ 28-7681 Definitions

In this article, unless the context otherwise requires:

1. "Excise taxes" means all unrestricted excise, transaction, franchise, privilege and business taxes, state shared sales and income taxes, fees for licenses and permits and state revenue sharing that are validly imposed by a political subdivision or contributed, allocated or paid to the political subdivision and not earmarked by the contributor or the political subdivision for a contrary or inconsistent purpose.

2. "Highway project" means a highway project that is on the federal aid system, national highway system or state route or state highway system and that is included in the department's state highway construction plan or the transportation improvement plan of a regional association of governments, except that a highway project does not include any local street improvements.

3. "Highway project advance agreement" means a written agreement entered into in accordance with section 28-7677 and either section 9-500.17 or 11-269.03 between the department and a political subdivision under which the department receives an advance payment from a political subdivision to accelerate right-of-way acquisition for, or design or construction of, a highway project and under which the department repays the advance with interest, if any, at an agreed on rate.

4. "Highway project advance revenues" means any revenues a political subdivision receives under a highway project advance agreement, or as proceeds of highway project advancement notes, together with any earnings from the investment of the revenues.

5. "Highway project advancement notes" means notes authorized by this article.

6. "Political subdivision" means a county, city or town.

§ 28-7682 Highway project advancement notes; pledge of excise taxes

A. After entering into a highway project advance agreement that has been previously approved by the governing body of the political subdivision and by the transportation board, a political subdivision may issue and sell highway project advancement notes either competitively or by negotiation.

B. The principal, premium, if any, and interest on the highway project advancement notes shall be paid solely from either of the following:

1. Highway project advance revenues.

2. If provided by the political subdivision at the time of authorizing the issuance of the highway project advancement notes, other monies lawfully available for application to that purpose, including proceeds from the sale of other obligations of the political subdivision or excise taxes of the political subdivision.

C. A political subdivision may pledge its excise taxes to the repayment of principal, premium, if any, and interest on highway project advancement notes.

§ 28-7683 Limitations

A. The aggregate outstanding principal amount of highway project advancement notes issued by a political subdivision and secured by highway project advance revenues shall not be more than the aggregate of all uncollected highway project advance revenues to be received by the political subdivision under highway project advance agreements unless the political subdivision has pledged other monies lawfully available for application to that purpose to cover any amount in excess of the uncollected highway project advance revenues.

B. Highway project advancement notes shall have terms of fifteen years or less.

C. A political subdivision shall not have outstanding at any one time more than three hundred million dollars aggregate principal amount of highway project advancement notes.

§ 28-7684 Application of revenues; highway project advancement notes fund; payment of notes

A. After issuance of highway project advancement notes, revenues the political subdivision receives under the applicable highway project advance agreement shall be collected and, as provided by the political subdivision at the time of authorizing the issuance of the highway project advancement notes, shall be either:

1. Paid into a special fund to be known as the highway project advancement notes fund.

2. Applied to reimburse the political subdivision for monies previously advanced to the department under the highway project advance agreement to which the highway project advancement notes relate.

B. If any highway project advancement notes are outstanding, the political subdivision shall only use the monies paid into the highway project advancement notes fund for those highway project advancement notes to pay principal, interest and premium, if any, on those highway project advancement notes.

C. Notwithstanding any other law, if the highway project advancement notes provide for such payment, this article authorizes the payment from the monies in the highway project advancement notes fund, when due or on redemption in advance of maturity, of all principal, interest and redemption premiums on the notes.

§ 28-7685 Use of proceeds

A political subdivision shall use the proceeds from the sale of highway project advancement notes for payment of any of the following:

1. Advances to the department under the highway project advance agreement to which the highway project advancement notes relate.

2. Legal and financial costs and expenses incurred in issuing and administering the notes.

3. Reimbursement of the political subdivision for monies previously advanced to the department under the highway project advance agreement to which the highway project advancement notes relate.

4. If authorized by the political subdivision, payment of interest that accrues on the notes before maturity.

5. Payment of the principal, premium or interest on other obligations of the political subdivision to the extent that proceeds of those obligations were or are applied to the financing of the highway project to which the highway project advance agreement relates.

§ 28-7686 Refunding

A political subdivision may issue highway project advancement notes to refund highway project advancement notes previously issued and other obligations if the proceeds of the previously issued highway project advancement notes and other obligations were or are applied to the financing of the advance to which the highway project advance agreement relates.

§ 28-7687 Nature of highway project advancement notes; limited obligation

A. Highway project advancement notes issued pursuant to this article are not general obligations of a political subdivision, any public officer or employee of a political subdivision or this state.

B. Highway project advancement notes are limited obligations of the issuer of the notes and are payable solely from highway project advance revenues received by the political subdivision and, if provided by the political subdivision at the time of authorizing the issuance of those highway project advancement notes, other monies lawfully available for application to that purpose and pledged to the payment of the principal, premium, if any, and interest on the notes.

C. A holder of a highway project advancement note may not compel the payment of highway project advance revenues to the political subdivision.

Article 7 Transportation Project Advancement Notes

§ 28-7691 Definitions

In this article, unless the context otherwise requires:

1. "Excise taxes" means all unrestricted excise, transaction, franchise, privilege and business taxes, state shared transaction privilege and income taxes, fees for licenses and permits and state revenue sharing that are levied and paid by a political subdivision or contributed, levied or paid to the political subdivision and not earmarked by the contributor or the political subdivision for a contrary or inconsistent purpose.

2. "Political subdivision" means a county, city, town or special taxing district established pursuant to section 48-5102 to construct or assist in the construction of a transportation project.

3. "Transportation project" means all or a portion of a project that is included in the state's transportation improvement program or a plan, as defined in section 28-6351, including the project planning, environmental work, design, right-of-way acquisition or construction for the transportation project and associated rolling stock and operating systems.

4. "Transportation project advance agreement" means a written agreement, entered into in accordance with section 28-7677 and section 9-500.17, 11-269.03 or 48-5122, between one or more political subdivisions and the department, a regional planning agency, metropolitan planning organization or council of governments or a designated grant recipient under which the political subdivision advances monies to the department, the regional planning agency, metropolitan planning organization or council of governments or the designated grant recipient to accelerate a transportation project and under which the recipient of the advanced monies repays the advance.

5. "Transportation project advance revenues" means any revenues a political subdivision receives under a transportation project advance agreement, or as proceeds of transportation project advancement notes, together with any earnings from the investment of the revenues.

6. "Transportation project advancement notes" means notes authorized by this article.

§ 28-7692 Transportation project advancement notes; pledge of excise taxes

A. A regional planning agency, metropolitan planning organization or council of governments or a designated grant recipient may enter into a transportation project advance agreement with each other, a political subdivision, the department or a regional public transportation authority established pursuant to section 48-5102. A political subdivision may enter into a transportation project advance agreement pursuant to section 9-500.17, 11-269.03 or 48-5122. The department may enter into a transportation project advance agreement pursuant to section 28-7677. After entering into a transportation project advance agreement, a political subdivision may issue and sell transportation project advancement notes either competitively or by negotiation.

B. The principal, premium, if any, and interest on the transportation project advancement notes shall be paid solely from either of the following:

1. Transportation project advance revenues.

2. If provided by the political subdivision at the time of authorizing the issuance of the transportation project advancement notes, other monies lawfully available for application to that purpose, including proceeds from the sale of other obligations of the political subdivision or excise taxes of the political subdivision.

C. A political subdivision may pledge the revenues and monies described in subsection B of this section, including its excise taxes, to the repayment of principal, premium, if any, and interest on transportation project advancement notes.

§ 28-7693 Limitations

The aggregate outstanding principal amount of transportation project advancement notes issued by a political subdivision and secured by transportation project advance revenues shall not be more than the aggregate of all uncollected transportation project advance revenues to be received by the political subdivision under transportation project advance agreements unless the political subdivision has pledged other monies lawfully available for application to that purpose to cover any amount in excess of the uncollected transportation project advance revenues.

§ 28-7694 Application of revenues; transportation project advancement notes; payment of notes

After issuance of transportation project advancement notes, the revenues the political subdivision receives under the applicable transportation project advance agreement shall be used as set forth in the agreement, including the payment when due or on redemption in advance of maturity, of all principal, interest and redemption premiums on the notes.

§ 28-7695 Use of proceeds

A political subdivision shall use the proceeds from the sale of transportation project advancement notes for payment of any of the following:

1. Advances for a transportation project included in the state's transportation improvement program or a plan, as defined in section 28-6351, under the transportation project advance agreement that relates to the transportation project advancement notes.

2. Legal and financial costs and expenses incurred in issuing and administering the notes.

3. Reimbursement to the political subdivision for monies previously advanced to the department, a regional planning agency, metropolitan planning organization or council of governments, a regional public transportation authority or a designated grant recipient under the transportation project advance agreement that relates to the transportation project advancement notes.

4. If authorized by the political subdivision, payment of interest that accrues on the notes before maturity.

5. Payment of the principal, premium or interest on other obligations of the political subdivision to the extent that proceeds of those obligations are applied to the financing of the transportation project that relates to the transportation project advance agreement.

§ 28-7696 Refunding

A political subdivision may issue transportation project advancement notes to refund transportation project advancement notes previously issued and other obligations if the proceeds of the previously issued transportation project advancement notes and other obligations are applied to the financing of the advance that relates to the transportation project advance agreement.

§ 28-7697 Nature of transportation project advancement notes; limited obligation

A. Transportation project advancement notes issued pursuant to this article are not general obligations of a political subdivision, any public officer or employee of a political subdivision or this state.

B. Transportation project advancement notes are limited obligations of the issuer of the notes and are payable solely from transportation project advance revenues received by the political subdivision and, if provided by the political subdivision at the time of authorizing the issuance of those transportation project advancement notes, other monies lawfully available for application to that purpose and pledged to the payment of the principal, premium, if any, and interest on the notes.

C. A holder of a transportation project advancement note may not compel the payment of transportation project advance revenues to the political subdivision.

Chapter 22 Public-Private Partnerships in Transportation

Article 1 General Provisions

§ 28-7701 Definitions

In this chapter, unless the context otherwise requires:

1. "Concession" means any lease, ground lease, franchise, easement, permit or other binding agreement transferring rights for the use or control, in whole or in part, of an eligible facility by the department or other unit of government to a private partner in accordance with this chapter.

2. "Eligible facility" means any facility, whether real or personal property, developed or operated after September 30, 2009 in accordance with this chapter, including any existing, enhanced, upgraded or new facility that is any of the following:

(a) Used or useful for the safe transport of people, information or goods via one or more modes of transport, whether involving highways, bridges, tunnels, conduits, railways, monorails, transit, bus systems, guided rapid transit, fixed guideways, ferries, boats, vessels, airports, intermodal or multimodal systems or any other mode of transport.

(b) Used by or useful to the department, including vehicle registration and driver licensing facilities, operating systems and information systems.

(c) Related or ancillary to, or used or useful to provide, operate, maintain or generate revenue for, a facility under subdivision (a) or (b), including administrative buildings and other buildings, structures, parking, rest areas, maintenance yards, rail yards, ports of entry or storage facilities, vehicles, rolling stock, energy systems or other related equipment, items or property.

3. "Private partner" means a person, entity or organization that is not the federal government, this state, a political subdivision of this state or a unit of government.

4. "Unit of government" means any agency, office or department of this state, city, county, district, commission, authority, entity, port or other public corporation organized and existing under statutory law or under a voter approved charter or initiative, and any intergovernmental entity.

§ 28-7702 Rules and guidelines

The department shall adopt such rules or guidelines as it determines necessary to carry out this chapter.

§ 28-7703 Project delivery methods

The department shall provide for the development or operation of eligible facilities using a variety of project delivery methods and forms of agreement. The methods may include a wide range of possibilities, including:

1. Predevelopment agreements leading to other implementing agreements.

2. A design-build agreement.

3. A design-build-maintain agreement.

4. A design-build-finance-operate agreement.

5. A design-build-operate-maintain agreement.

6. A design-build-finance-operate-maintain agreement.

7. A concession providing for the private partner to design, build, operate, maintain, manage or lease an eligible facility.

8. Any other project delivery method or agreement or combination of methods or agreements that the department determines will serve the public interest.

§ 28-7704 Procurements

A. The department:

1. May procure services under this chapter using any of the following:

(a) Requests for project proposals in which the department describes a class of transportation facilities or a geographic area in which private entities are invited to submit proposals to develop transportation facilities.

(b) Solicitations using requests for qualifications, short-listing of qualified proposers, requests for proposals, negotiations, best and final offers or other procurement procedures.

(c) Procurements seeking from the private sector development and finance plans most suitable for the project.

(d) Best value selection procurements based on price or financial proposals, or both, or other factors.

(e) Other procedures that the department determines may further the implementation of this chapter.

2. Shall procure services under this chapter using unsolicited proposals if the department determines that there is sufficient merit to pursue any unsolicited proposal and a reasonable opportunity for other entities to submit competing proposals for consideration and a possible contract award as appropriate.

B. For any procurement in which the department issues a request for qualifications, request for proposals or similar solicitation document, the request shall generally set forth the factors that will be evaluated and the manner in which responses will be evaluated. If contractor insurance is required for services procured pursuant to this section the insurance shall be placed with an insurer authorized to transact insurance in this state pursuant to title 20, chapter 2, article 1 or a surplus lines insurer approved and identified by the director of the department of insurance and financial institutions pursuant to title 20, chapter 2, article 5.

C. In evaluating proposals, the department may accord such relative weight to factors such as cost, financial commitment, innovative financing, technical, scientific, technological or socioeconomic merit and other factors as the department deems appropriate to obtain the best value for this state.

D. The department may pay a stipend to a proposer based on the department's estimate, in its sole discretion, of the value of the work product received, but only if the department has determined that the proposal submitted was responsive to the department's request for proposals and met all requirements established by the department for the project. In exchange for the stipend, the department may require the recipient to grant to the department the right to use any work product contained in the recipient's proposal, including technologies, techniques, methods, processes and information contained in the recipient's project design.

E. The department may charge and retain an administrative fee for the evaluation of an unsolicited project proposal.

F. The department may procure services, award agreements and administer revenues as authorized in this section notwithstanding any requirements of any other state or local statute, regulation or law relating to public bidding or other procurement procedures or other provisions otherwise applicable to public works, services or utilities.

G. The department may retain financial, legal and other consultants and experts inside or outside the public sector to assist in the evaluation, negotiation and development of eligible facilities under this chapter with a minimum of five years' experience working in that capacity with public-private partnerships.

H. The department may spend monies that are reasonably necessary for the development of procurements, evaluation of concepts or proposals, negotiation of agreements and implementation of agreements for development or operation of eligible facilities under this chapter.

I. Before the department begins the process for procuring services as prescribed in subsection A of this section, the department shall hold at least one public hearing to receive comments on user charges, tolls, fares or similar charges.

§ 28-7704.01 Evaluation criteria

Before entering into a public-private partnership or other agreement for any eligible facility under this chapter, the department shall consider the following factors:

1. The ability of the eligible facility to improve safety, reduce congestion, increase capacity and promote economic growth.

2. The proposed cost and financial plan for the eligible facility.

3. The general reputation, qualifications, industry experience and financial capacity of the private partner.

4. The proposed design, operation and feasibility of the eligible facility.

5. Comments from users, local citizens and affected jurisdictions.

6. Benefits to the public.

7. The safety record of the private partner.

8. Other criteria that the department deems appropriate.

§ 28-7705 Public-private partnership agreements

A. In any public-private partnership or other agreement for any eligible facility under this chapter, the department may include provisions that:

1. Authorize the department or the private partner to establish and collect user charges, tolls, fares, rents, advertising and sponsorship charges, service charges or similar charges, including provisions that:

(a) Specify technology to be used in the facility.

(b) Establish circumstances under which the department may receive all or a share of revenues from such charges.

(c) Govern enforcement of tolls, including provisions for use of cameras or other mechanisms to ensure that users have paid tolls that are due and provisions that allow the private partner access to relevant databases for enforcement purposes. Misuse of the data contained in the databases, including negligence in securing the data properly, shall result in a civil penalty of $10,000 for each violation. Civil penalties collected pursuant to this subdivision shall be deposited in the state general fund.

(d) Authorize the department to continue or cease collection of user charges, tolls, fares or similar charges after the end of the term of the agreement.

2. Allow for payments to be made by this state to the private partner, including availability payments or performance based payments.

3. Allow the department to accept payments of monies and share revenues with the private partner.

4. Address how the partners will share management of the risks of the project.

5. Specify how the partners will share the costs of development of the project.

6. Allocate financial responsibility for cost overruns.

7. Establish the damages to be assessed for nonperformance.

8. Establish performance criteria or incentives, or both.

9. Address the acquisition of rights-of-way and other property interests that may be required, including provisions that address the exercise of eminent domain as provided in section 28-7709. This state shall not relinquish its power of eminent domain authority to the private partner.

10. Establish recordkeeping, accounting and auditing standards to be used for the project.

11. For a project that reverts to public ownership, address responsibility for reconstruction or renovations that are required in order for a facility to meet all applicable government standards on reversion of the facility to this state.

12. Provide for patrolling and law enforcement on public facilities.

13. Identify any department specifications that must be satisfied, including provisions allowing the private partner to request and receive authorization to deviate from the specifications on making a showing satisfactory to the department.

14. Require a private partner to provide performance and payment bonds, parent company guarantees, letters of credit or other acceptable forms of security or a combination of any of these, the penal sum or amount of which may be less than one hundred percent of the value of the contract involved based on the department's determination, made on a facility-by-facility basis, of what is required to adequately protect this state.

15. Authorize the private partner in any concession agreement to establish and collect user charges, tolls, fares, rents, advertising and sponsorship charges, service charges or similar charges to cover its costs and provide for a reasonable rate of return on the private partner's investment, including provisions such as the following:

(a) The charges may be collected directly by the private partner or by a third party engaged for that purpose.

(b) A formula for the adjustment of user charges, tolls, fares, rents, advertising and sponsorship charges, service charges or similar charges during the term of the agreement.

(c) For an agreement that does not include a formula described in subdivision (b) of this paragraph, provisions regulating the private partner's return on investment.

(d) A maximum multiplier that may be applied to the difference between passenger and commercial vehicle user charges, tolls, fares or similar charges.

(e) A variety of traffic management strategies, including:

(i) General purpose toll lanes.

(ii) High occupancy vehicle lanes where single or low occupancy vehicles may use higher occupancy vehicle lanes by paying a toll.

(iii) Lanes or facilities in which the tolls may vary during the course of the day or week or according to levels of congestion anticipated or experienced.

(iv) Combinations of, or variations on, items (i), (ii) and (iii) of this subdivision, or other strategies the department determines are appropriate on a facility-by-facility basis.

(v) Mechanisms for notice to drivers of an upcoming facility and options to pay user charges, tolls, fares or similar charges at the facility location.

16. Specify remedies available and dispute resolution procedures, including the right of the private partner to institute legal proceedings to obtain an enforceable judgment or award against the department in the event of a default by the department and procedures for use of dispute review boards, mediation, facilitated negotiation, arbitration and other alternative dispute resolution procedures.

17. Allow the department to acquire real property that is needed for and related to eligible facilities, including acquisition by exchange for other real property that is owned by the department. An acquisition pursuant to this paragraph is exempt from chapter 20, articles 6 and 8 of this title.

B. Notwithstanding any other law, the department may enter into agreements, whether a concession agreement or other form of agreement, with any private partner that includes provisions described in subsection A of this section. Agreements may be for a term not to exceed fifty years but may be extended for additional terms.

C. The department may approve any request from another unit of government to develop an eligible facility in a manner similar to that used by the department under this chapter.

D. Notwithstanding any other law, agreements under this chapter that are properly developed, operated or held by a private partner under a concession agreement pursuant to this chapter are exempt from all state and local ad valorem and property taxes that otherwise might be applicable.

E. The agreement shall contain a provision by which the private partner expressly agrees that it is prohibited from seeking injunctive or other equitable relief to delay, prevent or otherwise hinder the department or any jurisdiction from developing, constructing or maintaining any facility that was planned and that would or might impact the revenue that the private partner would or might derive from the facility developed under the agreement, except that the agreement may provide for reasonable compensation to the private partner for the adverse effect on toll revenues or other user fee revenues resulting from development, construction and maintenance of an unplanned revenue impacting facility.

F. The agreement shall contain a provision that prohibits photo traffic enforcement of chapter 3, article 6 of this title on toll lanes.

G. Any foreign private entity that enters into an agreement with the department pursuant to this section must provide satisfactory evidence to the board that the foreign entity is in compliance with the requirements of title 10, chapter 38.

H. The agreement shall contain a provision that all public-private partnerships are subject to chapter 20, article 3 of this title.

I. The department shall award a stipulated fee equal to four-tenths of one percent of the department's estimated cost of design and construction to each short list responsible proposer that provides a responsive but unsuccessful proposal. If the department does not award a contract, all responsive proposers shall receive the stipulated fee. If the department cancels the contract before reviewing the technical proposals, the department shall award each design-builder on the short list a stipulated fee equal to four-tenths of one percent of the department's estimated cost of design and construction. The department shall pay the stipulated fee to each proposer within ninety days after the award of the contract or the decision not to award a contract. In consideration for paying the stipulated fee, the department may use any ideas or information contained in the proposals in connection with any contract awarded for the project, or in connection with a subsequent procurement, without any obligation to pay any additional compensation to the unsuccessful proposers. Notwithstanding the other provisions of this subsection, an unsuccessful short list proposer may elect to waive the stipulated fee. If an unsuccessful short list proposer elects to waive the stipulated fee, the department may not use ideas and information contained in the proposer's proposal, except that this restriction does not prevent the department from using any idea or information if the idea or information is also included in a proposal of a short list proposer that accepts the stipulated fee.

J. The department may not enter into an agreement that allows the conversion of an existing publicly funded or maintained street or highway to a toll road, including a conversion for the purpose of implementing a variety of traffic management strategies listed in subsection A, paragraph 15, subdivision (e) of this section.

§ 28-7706 Funding and financing

A. Any lawful source of funding may be used for the development or operation of an eligible facility under this chapter, including:

1. The proceeds of grant anticipation revenue bonds authorized by 23 United States Code section 122 or any other applicable federal or state law.

2. Grants, loans, loan guarantees, lines of credit, revolving lines of credit or other arrangements available under the transportation infrastructure finance and innovation act of 1998 (P.L. 105-178; 112 Stat. 241; 23 United States Code sections 601 through 610) or any other federal or state law.

3. Federal, state or local revenues.

4. User charges, tolls, fares, charges, lease proceeds, rents, availability payments, gross or net receipts from sales, proceeds from the sale of development rights, franchise charges, permit charges, rents, advertising and sponsorship charges, service charges or any other lawful form of consideration.

5. Private activity bonds as described by 26 United States Code section 141 and other forms of private capital.

6. Other forms of public and private capital that are available.

B. As security for the payment of financing described in this section, the revenues from the project may be pledged, but no pledge of revenues constitutes in any manner or to any extent a general obligation of this state. Any financing may be structured on a senior, parity or subordinate basis to any other financing.

C. The department may issue toll revenue bonds or notes to provide monies for any project under this chapter.

D. The department may accept from the United States or any of its agencies monies that are available to this state or to any other unit of government for carrying out the purposes of this chapter, whether the monies are made available by grant, loan or other financing arrangement. The department may enter into agreements and other arrangements with the United States or any of its agencies as may be necessary, proper and convenient for carrying out this chapter.

E. The department may accept from any source any grant, donation, gift or other form of conveyance of land, money, other real or personal property or other valuable thing made to this state, the department or a local government for carrying out this chapter.

F. Any eligible facility may be funded in whole or in part by contribution of any monies or property made by any private entity or public sector partner that is a party to any agreement entered into under this chapter.

G. Notwithstanding any other law, federal, state and local monies may be combined with any private sector monies for any project purposes.

H. Revenue bonds issued pursuant to this section are not general obligations of this state and are not secured by or payable from any monies or assets of this state other than the monies and revenues specifically pledged to the repayment of the revenue bonds.

§ 28-7707 Confidentiality and public disclosure

A. A proposer shall identify those portions of a proposal or other submission that the proposer considers to be trade secrets or confidential commercial, financial or proprietary information. In order for confidential and proprietary information and trade secrets to be exempt from disclosure, the private entity must do all of the following:

1. Invoke exclusion on submission of the information or other materials for which protection is sought.

2. Identify the data or other materials for which protection is sought with conspicuous labeling.

3. State the reasons why protection is necessary.

4. Fully comply with any applicable state law with respect to information that the proposer contends should be exempt from disclosure.

B. Each request for proposals issued pursuant to this chapter shall require each proposer to include with its proposal an executive summary covering the major elements of its proposal that do not address the proposer's price, financing plan or other confidential or proprietary information or trade secrets that the proposer intends to be exempt from disclosure. The executive summary shall be subject to release and disclosure to the public at any time. Notwithstanding any other law, in order to maximize competition under this chapter, no part of a proposal other than the executive summary shall be subject to release or disclosure by the department before an award of the public-private partnership contract and the conclusion of any protest or other challenge to the award, absent an administrative or judicial order requiring release or disclosure. After the award of the contract and the conclusion of any protest or other challenge to the award, title 39 applies to any release of any part of the proposal.

§ 28-7708 Government agreements

Either separately or in combination with any other public sector partner, this state may enter into working agreements, coordination agreements or similar implementation agreements.

§ 28-7709 Eminent domain

This state may exercise the power of eminent domain to acquire property, rights-of-way or other rights in property for projects that are necessary to develop, operate or hold an eligible facility under this chapter, regardless of whether the property will be owned in fee simple by this state or whether the property will be leased to the private partner to use, lease or operate for its business purposes in connection with the public-private partnership project.

§ 28-7710 Federal laws and severability

A. If no federal monies are used on an eligible facility, the laws of this state, including this chapter, govern. Notwithstanding any other provision of this chapter, if federal monies are used on an eligible facility and applicable federal laws conflict with this chapter or require provisions or procedures inconsistent with this chapter, the applicable federal laws govern.

B. If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected.

§ 28-7711 Attorney general public-private partnership agreement certification

A. The department may submit to the attorney general any agreement entered into under this article. On the submission of the agreement to the attorney general, the attorney general shall investigate and determine the validity of the agreement.

B. If the agreement complies with this article and the attorney general determines that the agreement will constitute a binding and legal obligation of the department that is enforceable according to the terms of the agreement, the attorney general shall certify in substance that the agreement has been entered into in accordance with the constitution and laws of this state.

Article 2 Toll Collection and Enforcement

§ 28-7751 Definitions

In this article, unless the context otherwise requires:

1. "Administrative charge" means the amount that may be assessed for the costs of processing a notice of payment due or notice of toll evasion, including the costs to collect unpaid tolls and to pursue an administrative hearing to enforce a toll evasion.

2. "Deliver" means to send, transmit or transfer information or documents, including by United States mail, electronic mail, hand delivery or fax.

3. "Electronic transaction and payment technology" means a system for recording and paying a toll electronically, including using a transponder, a reader system, automatic vehicle license plate recognition technology, a global positioning system or any other electronic means.

4. "Lessee":

(a) Means any person who rents, leases or contracts for the use of one or more motor vehicles and who has exclusive use of the motor vehicle for any period of time.

(b) Includes the vendee or lessee under a written agreement for the conditional sale or lease of a motor vehicle with the right to purchase in favor of the vendee or lessee on performance of the conditions stated in the agreement.

5. "Lessor":

(a) Means any person who is engaged in the business of renting or leasing motor vehicles to any lessee under a written rental agreement, lease or other agreement that provides that the lessee has exclusive use of the motor vehicle for any period of time.

(b) Includes both of the following:

(i) The vendor or lessor under a written agreement for conditional sale or lease of a motor vehicle with the right to purchase in favor of the vendee or lessee on performance of the conditions stated in the agreement.

(ii) A commercial leasing or rental entity.

6. "Notice of payment due" means the written notice to pay the required tolls and administrative charges for vehicular use of a toll facility.

7. "Notice of toll evasion" means the second written notice of failure to pay a required payment as described in section 28-7759 that is delivered after notice of payment due is delivered.

8. "Penalties" means penalties imposed pursuant to section 28-7753.

9. "Public-private agreement" means an agreement entered into pursuant to article 1 of this chapter.

10. "Repeat toll evader" means a registered owner or any other person to whom, in a three-month period, more than four notices of toll evasion for toll nonpayments occurring on more than four separate dates have been issued pursuant to section 28-7759.

11. "Toll" means the price, fare, charge or cost established for the use of a toll facility.

12. "Toll evasion" means the failure to pay in full a notice of payment due within the required time.

13. "Toll facility" means either of the following:

(a) Any new highway, roadway, lane, bridge, tunnel or other facility for surface transport of people or goods that is subject to payment of a toll for its use, for which an alternative route exists that accommodates the same type of motor vehicles, except for rail or other fixed guideway transit.

(b) An existing high occupancy vehicle lane that is converted to a lane that accommodates high occupancy vehicles and vehicles that are subject to a toll as long as no general purpose lanes are tolled on the same facility.

14. "Toll nonpayment" means the failure to pay in full an applicable toll for the use of a toll facility.

15. "Toll operator" means the department in its capacity of imposing and collecting tolls for the use of a toll facility, any public or quasi-public agency appointed by the department to impose or collect tolls for the use of a toll facility that is owned by the department, any private partner authorized to impose and collect tolls by a public-private agreement or any contractor or vendor retained by the department, public agency or private partner to carry out toll collection and enforcement and related customer service functions.

16. "Video toll transaction" means a toll operator's use of on-facility automatic vehicle license plate recognition technology to record toll transactions and process notices of payment due in accordance with policies adopted by the toll operator.

§ 28-7752 Toll evasion

Toll evasion is a civil violation.

§ 28-7753 Tolls, administrative charges and penalties; notification

A. A toll operator may collect tolls, administrative charges and penalties.

B. Subject to subsection C of this section, if a toll operator issues a notice of toll evasion because the notice of payment due is not paid on time, the toll operator may impose in the notice of toll evasion an additional administrative charge and a penalty.

C. The department may direct, control, regulate or limit the amount and method of imposing administrative charges and penalties by any public agency or private partner authorized to impose and collect tolls under a public-private agreement or by the public agency's or private partner's contractor or vendor.

D. Each toll operator shall use alternative technologies, including an electronically accessible format and the worldwide web, to notify the public of any tolls, administrative charges and penalties that are established.

E. A toll operator shall offer free passage on a toll facility to the following:

1. Any authorized emergency vehicle responding to an emergency.

2. Any motor vehicle if ordered by the director pursuant to section 28-364.

§ 28-7754 Electronic toll payment devices; video toll transactions

A. If a transponder or other electronic toll payment device is used to pay tolls or other charges due, the device shall be located in or on the motor vehicle in a manner prescribed by the toll operator and consistent with applicable law.

B. A toll operator is not required to offer video toll transactions as a method for paying tolls.

§ 28-7755 Responsibility for tolls and other charges

A. The operator of a motor vehicle on a toll facility is liable for paying the applicable tolls, administrative charges and penalties imposed pursuant to this article.

B. Except as provided in sections 28-7756 and 28-7757, the registered owner of the motor vehicle, even if the registered owner of the motor vehicle is not the operator of the motor vehicle, is jointly and severally liable with the operator of the motor vehicle for the tolls, administrative charges and penalties imposed pursuant to this article if the motor vehicle was used or operated with the express or implied permission of the registered owner at the time the toll transaction occurred.

C. The transferee of title to a motor vehicle as described in section 28-7756 is jointly and severally liable with the operator of the motor vehicle for the tolls, administrative charges and penalties imposed pursuant to this article if the motor vehicle was used or operated with the express or implied permission of the transferee at the time the toll transaction occurred.

D. Except as provided in section 28-7756, the lessee of a motor vehicle, even if the lessee is not the operator of the motor vehicle, is jointly and severally liable with the operator of the motor vehicle for the tolls, administrative charges and penalties imposed pursuant to this article if the motor vehicle was used or operated with the express or implied permission of the lessee at the time the toll transaction occurred.

E. This section does not preclude a person who pays a toll, administrative charge or penalty from pursuing a civil claim to recover the amount of the toll, administrative charge or penalty, attorney fees and court costs from the operator of the motor vehicle at the time of the toll transaction.

§ 28-7756 Defenses of registered owners and lessees

A. The registered owner or lessee of a motor vehicle is not liable for toll nonpayment, toll evasion or related tolls, administrative charges and penalties if either:

1. All of the following conditions are satisfied:

(a) The motor vehicle involved in the toll nonpayment was stolen before the toll transaction occurred and had not been recovered before the toll transaction occurred.

(b) The theft was reported to the appropriate law enforcement authority.

(c) Before the due date in the notice of payment due, the registered owner or lessee delivers to the toll operator a certified copy of the police report showing that the motor vehicle had been reported to the appropriate law enforcement authority as stolen and remained stolen at the time the toll transaction occurred.

2. All of the following conditions are satisfied:

(a) The registered owner's or lessee's license plate was stolen and appeared on the motor vehicle involved in the toll nonpayment.

(b) The theft was reported to the appropriate law enforcement authority.

(c) Before the due date in the notice of payment due, the registered owner or lessee delivers to the toll operator a certified copy of the police report showing that the license plate had been reported to the appropriate law enforcement authority as stolen and remained stolen at the time the toll transaction occurred.

B. The registered owner of a motor vehicle is not liable for toll nonpayment, toll evasion or related tolls, administrative charges and penalties if all of the following conditions are satisfied:

1. The registered owner of the motor vehicle involved in the toll nonpayment transferred ownership of the motor vehicle to another person before the toll transaction occurred.

2. The registered owner was not the operator of the motor vehicle when the toll transaction occurred.

3. Before the due date in the notice of payment due, the registered owner delivers to the toll operator a legible copy of the assignment of title or interest and warranty that is in the form prescribed by the department pursuant to section 28-2055, that is signed by the registered owner, that identifies the motor vehicle and the name and address of the transferee and that evidences the date of transfer.

C. Within fourteen calendar days after receiving information from the registered owner or lessee regarding the motor vehicle or license plates as prescribed in this section, the toll operator shall notify the registered owner or lessee in writing of the sufficiency of the information and whether the registered owner or lessee is released from liability.

§ 28-7757 Defenses of lessors

A. The lessor of a motor vehicle is jointly and severally liable with the lessee for the toll nonpayment, toll evasion and related tolls, administrative charges and penalties unless both of the following conditions are satisfied:

1. The motor vehicle involved in the toll nonpayment is registered in the name of the lessee of the motor vehicle at the time toll nonpayment occurs.

2. Within fourteen calendar days after the issue date on the notice of toll nonpayment, the lessor delivers to the toll operator an affidavit that is certified and signed by an authorized officer of the lessor that states that the motor vehicle was the subject of a written rental agreement, lease or other contract document at the time of the toll nonpayment and that contains the name and address of the lessee.

B. Within fourteen calendar days after receiving information from the lessor as prescribed in subsection A of this section, the toll operator shall notify the lessor in writing of the sufficiency of the information and whether the lessor is released from liability.

C. A copy of the motor vehicle rental agreement, lease or other contract document or affidavit identifying the lessee of the motor vehicle at the time of the toll transaction is prima facie evidence that the person named in the rental agreement, lease, other contract document or affidavit was operating the motor vehicle at all relevant times relating to the toll transaction.

D. A lessor shall cooperate with the toll operator in the enforcement of an order, decision or judgment rendered against the lessee by providing the toll operator, on the toll operator's request, any additional information concerning the lessee contained in the lessor's record.

§ 28-7758 Notice of payment due

A. If a motor vehicle is found by electronic transaction and payment technology or by visual observation to be involved in a toll nonpayment, the toll operator may deliver to the registered owner of the motor vehicle a notice of payment due.

B. A notice of payment due must be delivered within forty-five calendar days after the toll nonpayment occurs, except that, if information concerning the identity and address is not available to the toll operator within forty-five calendar days after the toll transaction occurred, the toll operator has an additional forty-five calendar days to obtain the information and deliver the notice of payment due.

C. If a toll operator receives information that identifies a person who is not the registered owner of the motor vehicle and who may be responsible for paying a toll pursuant to this article, the toll operator may deliver to that person a notice of payment due within forty-five calendar days after the toll operator receives the information that identifies the person and the person's address, except that, if information concerning the identity and address of the person proves to be inaccurate, the toll operator has an additional forty-five calendar days to obtain the information and deliver the notice of payment due.

D. The notice of payment due shall include all of the following:

1. The date and approximate time of the transaction on or use of the toll facility resulting in the toll nonpayment and the approximate location where the transaction or use occurred.

2. The vehicle license plate number.

3. If known, the make of the motor vehicle.

4. If possible, a representative photograph or image of the license plate on the motor vehicle that incurred the toll transaction.

5. The amount of the toll and any administrative charges and penalties, each stated separately.

6. The deadline by which payment must be made to avoid incurring additional charges and other consequences provided by law. This deadline shall not be less than fourteen calendar days after the date that the notice of payment due is delivered.

7. A statement that if the notice of payment due is not paid by the deadline the nonpayment is a civil violation subject to additional charges and actions against the notice recipient as provided in this article and any other applicable law.

8. The address of the person to whom payments may be sent.

9. A statement describing the acceptable methods for making payment, including by mail.

10. A statement referring the recipient to this article for further information on the law applicable to enforcement of tolls and the recipient's rights and obligations.

E. The notice of payment due also shall contain, or be accompanied by, all of the following:

1. A form of affidavit of defense from liability.

2. A brief explanation of what constitutes defense from liability pursuant to sections 28-7756 and 28-7757.

3. Information as to the effect of executing the affidavit of defense from liability.

4. Instructions for returning the affidavit of defense from liability and supporting documentation to the toll operator.

F. This article does not prohibit any recipient of a notice of payment due from providing to the toll operator proof of an error in the notice of payment due.

§ 28-7759 Notice of toll evasion

A. Within thirty days after a toll evasion occurs, the toll operator may deliver to each person liable for the toll a notice of toll evasion.

B. The notice of toll evasion shall include all of the following:

1. The date and approximate time of the transaction on or use of the toll facility resulting in the toll evasion and the approximate location where the transaction or use occurred.

2. The vehicle license plate number.

3. If known, the make of the motor vehicle.

4. If possible, a representative photograph or image of the license plate on the motor vehicle that incurred the toll transaction.

5. The amount of the toll and any administrative charges and penalties, each stated separately.

6. A statement that notice of payment due was sent and the person failed to remit payment as required.

7. The deadline by which payment must be made to avoid incurring additional charges and other consequences provided by law. This deadline shall not be less than twenty calendar days after the date that the notice of toll evasion is delivered.

8. A statement that if the notice of toll evasion is not paid by the deadline the nonpayment is a civil violation subject to additional charges and actions against the notice recipient as provided in this article and any other applicable law.

9. The address of the person to whom payments may be sent.

10. A statement describing the acceptable methods for making payment, including by mail.

11. A clear and concise explanation of the administrative procedures under this article for contesting the notice of toll evasion and appealing an adverse decision.

12. A statement referring the recipient to this article for further information on the law applicable to enforcement of tolls and the recipient's rights and obligations.

§ 28-7760 Administrative hearings; rehearing; appeal; collection

A. A toll operator that seeks to enforce collection of tolls, administrative charges and penalties, or a person who is subject to a notice of toll evasion that is delivered or deemed to be delivered pursuant to section 28-7759 and who seeks to contest the alleged toll evasion and collection of associated tolls, administrative charges and penalties, may file a petition for an administrative hearing with the department pursuant to title 41, chapter 6, article 6 and administrative hearing rules adopted by the department.

B. A toll operator or a person who is subject to a notice of toll evasion that is delivered or deemed to be delivered pursuant to section 28-7759 must file a petition for an administrative hearing within one year after the deadline prescribed in the notice of toll evasion.

C. If a toll operator files a petition for an administrative hearing, a person who is subject to a notice of toll evasion that is delivered or deemed to be delivered to that person pursuant to section 28-7759 may contest the alleged toll evasion and associated tolls, administrative charges and penalties exclusively at this hearing.

D. The scope of the department's administrative hearing is limited to the contest of tolls, administrative charges and penalties identified in the notice of toll evasion.

E. A toll operator or any person who is subject to a notice of toll evasion may retain legal counsel to represent the toll operator or person who is subject to the notice of toll evasion in the administrative hearing.

F. Any party to an administrative hearing pursuant to this section may request a continuance of the administrative hearing pursuant to rules adopted by the department.

G. If the evidence presented by the toll operator includes all of the following, the evidence constitutes prima facie evidence of the toll evasion and the amounts stated in the notice of toll evasion:

1. The notice of payment due.

2. The notice of toll evasion.

3. Information received from the department or any other state agency or jurisdiction that identifies the registered owner of the motor vehicle.

4. A certificate sworn to or affirmed by a person employed, engaged or authorized by the toll operator or a copy of the certificate that states to the person's personal knowledge that all of the following apply:

(a) The notice of payment due and the notice of toll evasion are authentic.

(b) The amount due is accurate.

(c) The notice of payment due and notice of toll evasion were delivered as required by this article.

5. If the person identified in the notice of toll evasion is a lessee, a copy of the rental agreement, lease, contract document or affidavit that identifies the lessee of the motor vehicle at the time of the alleged toll nonpayment.

6. If the person identified in the notice of toll evasion is a transferee of title to the motor vehicle, a copy of the assignment of title or interest and warranty to the transferee that evidences a date of transfer before the date of the alleged toll nonpayment.

H. The person authorized to issue a notice of payment due or notice of toll evasion is not required to participate in the administrative hearing and is not subject to subpoena, except that the hearing officer may permit a deposition to be taken and introduced into the record of the evidentiary hearing. If the deposed person does not appear, the sworn statements contained in the deposition are admissible in evidence at the administrative hearing.

I. If a toll operator petitions for an administrative hearing and the person to whom the notice of toll evasion is delivered or deemed delivered pursuant to section 28-7759 fails to appear at the time of hearing to contest the alleged toll evasion:

1. The hearing officer shall make a record of the evidence constituting a prima facie case of toll evasion and shall enter a written decision or order based on the evidence presented by the toll operator.

2. A request for rehearing by a nonappearing party shall not be considered unless the nonappearing party first deposits the full amount awarded in the previous written decision or order with the department or its designee, except that the hearing officer may waive the deposit for good cause shown for failure to appear at the hearing.

J. Unless the hearing officer grants a rehearing on written motion of the nonappearing party or unless any aggrieved party appeals the decision or order entered as provided in this subsection, the decision or order is final and may be enforced by execution and levy in the same manner as a judgment of the superior court. The nonprevailing party may appeal the decision or order to the superior court pursuant to title 12, chapter 7, article 6. After a decision or order becomes final, each person determined in the final decision or order to be liable for the toll evasion is considered to be indebted to the toll operator or the toll operator's designee for the tolls, administrative charges and penalties as well as any assessed filing fees and postaward collection and execution costs provided by operation of law until those amounts are fully paid or compromised in a mutually agreed settlement.

K. Promptly after a hearing officer enters a decision or order finding a person liable for a toll evasion, the hearing officer shall deliver in person or to the last known address of the person and the person's attorney of record in the proceeding, if any, written notice informing the person of the person's right to appeal to the superior court pursuant to title 12, chapter 7, article 6, that execution may be levied against the person's assets, that liens may be placed against the person's property, that the person's wages may be garnished and that other steps may be taken to satisfy the award once it becomes final. Subject to any stay or injunction, the toll operator may proceed to execute on the award following delivery of this notice.

L. On entry of a decision or order finding a person liable for a toll evasion, a hearing officer shall direct the person to remit payment of the applicable tolls, administrative charges and penalties to the appropriate toll operator or the toll operator's designee. The payment is due within twenty calendar days after entry of the decision or order.

M. Execution may be levied and other steps may be taken for the collection of a final decision or order, or of a judgment on appeal, as authorized for the collection of an unpaid civil judgment of the superior court entered against a defendant in an action on a debt.

§ 28-7761 Reporting to department; impact on driving record and insurance

A. The toll operator shall report to the department satisfaction of the liability within five calendar days after the toll operator receives payment on a form supplied by the department.

B. Liability for a toll evasion or associated tolls, administrative charges and penalties is not a moving violation pursuant to this title, and an insurer shall not consider the liability 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 liability.

§ 28-7762 Vehicle registration penalties

A. The director shall refuse to register a motor vehicle, trailer or semitrailer owned by or registered to a person who is subject to a final decision, order or judgment of liability for a toll evasion.

B. The department shall renew the registration and license plate of a motor vehicle, trailer or semitrailer refused pursuant to subsection A of this section only if the department is notified by each toll operator to whom payment is owing under a final decision, order or judgment that the full liability and any postaward collection and execution costs have been paid or the person submits evidence satisfactory to the director that the full liability and any postaward collection and execution costs have been paid.

§ 28-7763 Driver license suspension

The department shall suspend the license of a driver on a showing by department records or other sufficient evidence that the licensee is subject to a final decision, order or judgment of liability for toll evasion for the longer of the following:

1. Thirty days.

2. Until the department is notified by each toll operator to whom payment is owing under a final decision, order or judgment that the full liability and any postaward collection and execution costs have been paid or the person submits evidence satisfactory to the director that the full liability and any postaward collection and execution costs have been paid.

§ 28-7764 Motor vehicle immobilization, tow and impoundment; hearing; release of motor vehicle

A. On petition by a toll operator, a hearing officer may order that a motor vehicle be immobilized, towed or impounded for the purpose of facilitating enforcement of any toll evasion if the hearing officer finds that the person is a repeat toll evader and has unsatisfied liability involving the motor vehicle. The hearing officer's order may be enforced by any peace officer with jurisdiction in the location in which the motor vehicle is found.

B. The registered owner of a motor vehicle that is immobilized, towed or impounded for unsatisfied liability under this section, the spouse of the registered owner and each person identified on the department's record with an interest in the motor vehicle shall be provided an opportunity for an immobilization or poststorage hearing pursuant to section 28-3514 solely for the purpose of challenging the validity of the immobilization, tow or impoundment. This hearing shall not readjudicate the merits of any previously adjudicated notice of toll evasion.

C. An immobilized or impounded motor vehicle shall be released immediately if all of the following have been paid:

1. The full amount of the tolls, administrative charges and penalties.

2. Assessed filing fees and postaward collection and execution costs.

3. Costs incurred for immobilization, towing and storage.

4. Administrative charges established pursuant to section 28-3513.

Chapter 23 Highway Beautification

Article 1 Advertising Regulation

§ 28-7901 Definitions

In this article, unless the context otherwise requires:

1. "Business area" means an area that is outside municipal limits, that embraces all of the land on the same side of the highway on which one or more commercial or industrial activities are conducted, including all land within one thousand feet measured in any direction from the nearest edge of the actual land used or occupied for such activity, its parking, storage and service areas, its driveways and its established front, rear and side yards, that constitutes an integral part of such activity and that is zoned, under authority of law, primarily to permit industrial or commercial activity. If one or more commercial or industrial activities are located within one thousand feet of a freeway interchange, the business area shall extend three thousand feet measured in each direction parallel to the freeway from the center line of the crossroad but shall not extend beyond the limits of the established commercial or industrial zone.

2. "Comprehensive development" means an activity if all of the following apply:

(a) The activity is comprised primarily of individual commercial or industrial activities.

(b) The activity is located on land that is only on one side of the highway.

(c) The lots or parcels within the development are contiguous except for roadways or driveways, whether public or private, that provide access to the development.

(d) The relevant county, city or town has approved the boundaries of the activity as a unified development with a common identity and an interrelated plan for public and private improvements, either as originally planned or as amended.

(e) The activity has common areas such as parking, amenities and landscaping.

(f) The activity has a scheme of common ownership that actively provides for the management and maintenance of common areas within the development.

(g) The premises includes all land used or to be used or occupied for the activity. Uses of land that serve no reasonable or integrated purpose related to the activity, other than an attempt to qualify the land for signing purposes, are not part of the comprehensive development. For the purposes of this subdivision, "premises" includes:

(i) Buildings.

(ii) Parking.

(iii) Storage and service areas.

(iv) Streets.

(v) Driveways.

(vi) Land used and reasonably necessary for landscaped front, rear and side yards.

3. "Electronic outdoor advertising" means signs, displays and devices with sign faces that are comprised of matrices of light or light-emitting devices that are static or capable of changing messages electronically by remote or automatic means.

4. "Freeway" means a divided arterial highway on the interstate or primary system with full control of access and with grade separations at intersections.

5. "Information center" means a site that is established and maintained at a safety rest area to inform the public of places of interest in this state and that provides other information the board considers desirable.

6. "Interstate system" means the portion of the national system of interstate and defense highways located in this state that are officially designated by the board and approved by the United States secretary of transportation pursuant to 23 United States Code.

7. "Main traveled way":

(a) Means the portion of a roadway for the movement of vehicles, excluding shoulders, on which through traffic is carried.

(b) In the case of a divided highway, means the traveled way of each of the separated roadways for traffic in opposite directions.

(c) Does not include facilities such as frontage roads or parking areas.

8. "Outdoor advertising" means any outdoor sign, display, light, device, figure, painting, drawing, message, plaque, poster, billboard or other thing that is designed, intended or used to advertise or inform and the message of which is visible from any place on the main traveled way of the interstate, secondary or primary systems.

9. "Primary system" means that portion of connected main highways located in this state that are officially designated by the board and approved by the United States secretary of transportation pursuant to 23 United States Code.

10. "Safety rest area" means a site established and maintained by or under public supervision or control for the convenience of the traveling public within or adjacent to the right-of-way of the interstate or primary systems.

11. "Scheme of common ownership" means an ownership scheme in which the owners have recorded irrevocable rights to use common areas.

12. "Secondary system" means that portion of connected highways located in this state that are officially designated by the board and approved by the United States secretary of transportation pursuant to 23 United States Code.

13. "Tourist related advertising display" means any outdoor advertising that advertises a specific public or private facility, accommodation, goods or service, at a particular location or site, including an overnight lodging, campsite, food service, recreational facility, tourist attraction, educational or historical site or feature and automotive service facility or garage.

14. "Unzoned commercial or industrial area" means an area that is not zoned under authority of law and in which land use is characteristic of that generally permitted only in areas that are actually zoned commercial or industrial under authority of state law, that embraces all land on the same side of the highway on which one or more commercial or industrial activities are conducted, including all land within one thousand feet measured in any direction from the nearest edge of the actual land used or occupied by this activity, its parking, storage and service areas, its driveways and its established front, rear and side yards, and that constitutes an integral part of this activity. As used in this paragraph, commercial or industrial activities do not include:

(a) Outdoor advertising structures.

(b) Agricultural, forestry, grazing, farming and related activities.

(c) Transient or temporary activities, including wayside fresh produce stands.

(d) Activities not visible from the main traveled way.

(e) Activities conducted in a building principally used as a residence.

(f) Railroad tracks and minor sidings and aboveground or underground utility lines.

§ 28-7902 Outdoor advertising authorized

A. The following outdoor advertising may be placed or maintained along an interstate, secondary or primary system within six hundred sixty feet of the edge of the right-of-way:

1. Directional or other official signs or notices that are required or authorized by law, including signs pertaining to natural wonders and scenic and historic attractions.

2. Signs, displays and devices that are located on the premises of the activity that they advertise. This paragraph applies to any sign that is located on the premises of a comprehensive development that the sign advertises if the placement of the sign does not cause a reduction of federal aid highway monies pursuant to 23 United States Code section 131. For the purposes of this paragraph, "activity" means the active use or collective uses of the premises.

3. Signs, displays and devices advertising the sale or lease of the property on which they are located.

4. Signs, displays and devices lawfully placed after April 1, 1970 in business areas.

5. Signs, displays and devices lawfully placed after either:

(a) July 1, 1974 in zoned or unzoned commercial or industrial areas inside municipal limits.

(b) April 1, 1972 in unzoned commercial or industrial areas outside municipal limits.

6. Signs, displays and devices that are lawfully existing on April 1, 1970 and that are located in business areas and in zoned commercial or industrial areas outside municipal limits.

7. Signs, displays and devices lawfully existing on either:

(a) July 1, 1974 that are located in zoned or unzoned commercial or industrial areas inside municipal limits.

(b) April 1, 1972 in unzoned commercial or industrial areas outside municipal limits.

8. Nonconforming tourist related advertising displays that are lawfully erected and in existence on May 5, 1976, that are located in defined hardship areas, that provide specific directional information to the traveling public and that are approved by the United States secretary of transportation pursuant to 23 United States Code section 131(o).

9. A sign located in a charter city adjacent to an interstate highway with a changing message for identification of businesses that are located on separate contiguous parcels and that are part of a single development approved by a city council as part of a development agreement entered into before April 22, 1990. The changing message may not contain words or phrases that continuously travel or scroll in a manner that presents a message longer than may be displayed on the sign at one instant in time. The director may adopt rules governing the interval within which a message may be displayed or changed. This paragraph does not alter, change or affect any other statute, rule, regulation, policy or interpretation concerning the use of signs with changing messages or the ownership of property on which the signs are located.

B. Outdoor advertising authorized under subsection A, paragraphs 1, 4 and 5 shall conform with standards contained and shall bear permits required in rules adopted by the director under this article, except that the authorized outdoor advertising along highways in the secondary system that are not state highways need only bear permits required by the responsible county or municipal authority.

C. Outdoor advertising authorized under subsection A, paragraphs 6 and 7 need not conform to standards contained but shall bear permits required in rules adopted by the director under this article, except that the authorized outdoor advertising along highways in the secondary system that are not state highways need only bear permits required by the responsible county or municipal authority.

D. If preservation would be consistent with this article, signs may be preserved or maintained if they were lawfully in existence on October 22, 1965 and if the director determines, subject to the approval of the United States secretary of transportation as provided for by 23 United States Code section 131(c), that they are landmark signs, including signs on farm structures or natural surfaces, of historic or artistic significance.

E. Outdoor advertising that conforms to standards and bears a permit pursuant to subsection B or C of this section may include electronic outdoor advertising only if the electronic outdoor advertising meets the following requirements:

1. The electronic outdoor advertising does not contain any form of animation and remains static for at least eight seconds with a transition time of no greater than two seconds.

2. Except as provided in subsection H or I of this section, the electronic outdoor advertising is located within the area with the following coordinates:

Beginning at state route 95 at mile marker two hundred fifty in Bullhead City, to all points within this state that are within a radius of forty miles from that location, except excluding state route 95 south of interstate 40 and any area east of state route 93 from mile marker forty-two to the Hoover dam, and also including latitude 33.9 north, longitude 114.5 west, hence due east to latitude 33.9 north, longitude 112.25 west, hence following the circumference of a circle with a radius of seventy-five miles from the coordinates of the discovery channel telescope to latitude 33.66 north, longitude 111.23 west, hence due south to latitude 33.46 north, longitude 111.23 west, hence following the circumference of a circle with a radius of seventy-five miles from the coordinates of the Mount Lemmon observatory to latitude 33.02 north, longitude 111.91 west, hence following the circumference of a circle with a radius of seventy-five miles from the coordinates of Kitt Peak observatory to latitude 32.6 north, longitude 112.65 west, hence due west to latitude 32.6 north, longitude 114.802 west, and hence north along the Colorado river to the point of beginning.

3. Except as provided in paragraph 4 of this subsection, from sunset until 11:00 P.M., the dimmer for electronic outdoor advertising signs, displays and devices shall not be set to exceed three hundred forty-two NITS in full white mode for signs that are smaller than six hundred seventy-two square feet in area and three hundred NITS in full white mode for signs that are equal to or larger than six hundred seventy-two square feet in area.

4. For coordinates beginning at state route 95 at mile marker two hundred fifty in Bullhead City, to all points within this state that are within a radius of forty miles from that location from sunset until 11:00 P.M., the dimmer for electronic outdoor advertising signs, displays and devices shall not be set to exceed two hundred NITS in full white mode for all signs.

5. From 11:00 P.M. until sunrise, illumination shall be extinguished and electronic outdoor advertising signs, displays and devices shall be equipped with an automatic device to ensure compliance with this paragraph, except for amber alerts and other governmental emergencies. The automatic device shall have the ability to dim the display through a photoelectric sensor that detects ambient light levels and adjusts the display intensity automatically to ensure the maximum NIT levels are enforced.

6. The electronic outdoor advertising shall comply with the size and spacing limitations prescribed in section 28-7905, and for coordinates beginning at state route 95 at mile marker two hundred fifty in Bullhead City, to all points within this state that are within a radius of forty miles from that location, the number of electronic outdoor advertising signs, displays and devices shall not exceed thirty-five.

F. The director shall prepare a pictorial representation of the coordinates described in subsection E, paragraph 2 of this section. The director shall post the pictorial representation on the department's website.

G. The owner of any outdoor advertising that is within the area described in subsection E, paragraph 2 of this section, that bears a permit pursuant to subsection B or C of this section and that is converted to electronic outdoor advertising shall notify the department of the face-type status change. The notice shall include a certification that the sign remains in compliance with this section. The department shall maintain the face-type status change documents in its records. After May 9, 2012, the conversion of outdoor advertising to electronic outdoor advertising is only allowed in the area described in subsection E, paragraph 2 of this section.

H. Electronic outdoor advertising is deemed to have legal nonconforming status for the purposes of state law, including for the purposes of any permits and approvals issued by the department, if both of the following apply:

1. The electronic outdoor advertising is both operational and bears a permit pursuant to subsection B or C of this section before May 9, 2012.

2. The electronic outdoor advertising is not located within the area described in subsection E, paragraph 2 of this section.

I. Electronic outdoor advertising in existence and operational as of May 9, 2012 is deemed to have legal conforming status for the purposes of state law, including for the purposes of any permits and approvals issued by the department if both of the following apply:

1. The electronic outdoor advertising bears a permit pursuant to subsection B or C of this section.

2. The electronic outdoor advertising is located within the area described in subsection E, paragraph 2 of this section.

J. The electronic outdoor advertising that is described in subsection H or I of this section is subject to the requirements prescribed by subsection E, paragraphs 1, 3, 4 and 5.

K. A city, town or county shall not issue a permit for conversion of an existing outdoor advertising use to an electronic outdoor advertising use after May 9, 2012 if the existing outdoor advertising is not located in the area described in subsection E, paragraph 2 of this section.

L. This section does not prevent a city, town or county from enforcing or enacting an ordinance regulating outdoor advertising that is authorized by subsection E of this section, including the lighting of the outdoor advertising. The city, town or county may enact an ordinance that is more restrictive than this section but not less restrictive than this section.

§ 28-7903 Outdoor advertising prohibited

A. Outdoor advertising shall not be placed or maintained adjacent to the interstate, secondary or primary systems at the following locations or positions, under any of the following conditions or if the outdoor advertising is of the following nature:

1. If it is within view of, directed at and intended to be read from the main traveled way of the interstate, primary or secondary systems, except outdoor advertising authorized under section 28-7902.

2. If it is visible from the main traveled way and simulates or imitates a directional, warning, danger or information sign permitted under this article, if it is likely to be mistaken for any such permitted sign or if it is intended or likely to be construed as giving warning to traffic, such as by the use of the words "stop" or "slow down".

3. If it is within any stream or drainage channel or below the flood water level of any stream or drainage channel where the outdoor advertising might be deluged by floodwaters and swept under any highway structure crossing the stream or drainage channel or against the supports of the highway structure.

4. If it is visible from the main traveled way and displays a red, flashing, blinking, intermittent or moving light, except as provided in section 28-7902, subsection E, or lights likely to be mistaken for a warning or danger signal, except that part necessary to give public service information such as time, date, weather, temperature or similar information.

5. If an illumination on the outdoor advertising is of such brilliance and in such a position as to blind or dazzle the vision of travelers on the main traveled way.

6. If it exists under a permit as required by this article and is not maintained in safe condition.

7. If it is obviously abandoned.

8. If it is placed in a manner that either:

(a) Obstructs or otherwise physically interferes with an official traffic sign, signal or device.

(b) Obstructs or physically interferes with the vision of drivers in approaching, merging or intersecting traffic.

9. If it is placed on trees or painted or drawn on rocks or other natural features, except signs permitted by section 28-7902, subsection A, paragraph 2.

B. At interchanges on freeways or interstate highways outside municipal limits, an outdoor advertising sign, display or device shall not be erected in the area between the crossroad and a point five hundred feet beyond the beginning or ending of pavement widening at the exit from or entrance to the main traveled way.

§ 28-7904 Directional and other official signs

Directional and other official signs authorized by section 28-7902, subsection A, paragraph 1 shall comply with rules that are adopted by the director, that are relative to the lighting, size, number, spacing and other requirements as appropriate to implement this article and that are not inconsistent with national standards as may be adopted by the United States secretary of transportation pursuant to 23 United States Code section 131(c).

§ 28-7905 Outdoor advertising standards

A. After April 1, 1970, outdoor advertising placed in business areas, and after April 1, 1972, outdoor advertising placed in unzoned commercial or industrial areas outside municipal limits, shall comply with this article and the following standards:

1. The size of outdoor advertising shall not exceed one thousand two hundred square feet in area with a maximum vertical facing dimension of twenty-five feet and a maximum horizontal facing dimension of sixty feet, including border and trim and excluding base or apron supports and other structural members. These size limitations apply to each facing of outdoor advertising. The area shall be measured by the smallest square, rectangle, triangle, circle or combination of the smallest square, rectangle, triangle or circle that will encompass the entire advertisement. Two advertising displays not exceeding three hundred fifty square feet each may be placed in a facing. Back to back or V-type signs may be placed, with the maximum area allowed for each facing.

2. Spacing of outdoor advertising shall not be:

(a) Within five hundred feet of other outdoor advertising on the same side of a freeway.

(b) Within five hundred feet of the beginning or ending of pavement widening at the exit from or entrance to the main traveled way at a scenic overlook or safety roadside rest area on any portion of a freeway.

(c) Within three hundred feet of other outdoor advertising on the same side of any portion of the primary system that is not a freeway.

3. Minimum spacing distances from other outdoor advertising do not apply to outdoor advertising that is separated by any building or other obstruction in such a manner that only one display located within the minimum distances set forth in this subsection is visible from the highway at any one time. Spacing distances shall be measured along the nearest edge of the pavement to a point directly opposite the outdoor advertising.

4. Outdoor advertising authorized under section 28-7902, subsection A, paragraphs 2 and 3 shall not be counted and measured from in determining compliance with the spacing requirements of this subsection.

B. After July 1, 1974, outdoor advertising placed in zoned or unzoned commercial or industrial areas inside municipal limits shall comply with the following standards:

1. The size of outdoor advertising shall not exceed the limits provided in subsection A, paragraph 1 of this section.

2. Spacing of outdoor advertising shall not be:

(a) Within five hundred feet of other outdoor advertising on the same side of a freeway.

(b) Within one hundred feet of other outdoor advertising on the same side of any portion of the primary system that is not a freeway.

3. It shall meet the standards prescribed in subsection A, paragraphs 3 and 4 of this section.

§ 28-7906 Outdoor advertising and property right acquisition; compensation; removal; hearing

A. The director shall acquire by gift, agreement, purchase, exchange, eminent domain or other lawful means all right, title, leasehold and interest in any outdoor advertising together with the right of the owner of the real property on which the outdoor advertising is located to erect and maintain the outdoor advertising on the real property, if the outdoor advertising is prohibited by this article. Damages resulting from any taking of property in eminent domain shall be determined in the manner provided by law.

B. If compensation is required by federal law and if federal participation in the compensation is required by federal law, nonconforming outdoor advertising is not required to be removed until federal monies for the federal share of compensation as required by federal law are made available to the department.

C. If outdoor advertising is placed after July 1, 1974 contrary to this article or the rules adopted by the director or if a permit is not obtained as prescribed in this article, the outdoor advertising is unlawful.

D. The director shall give notice by certified mail of the director's intention to remove advertising deemed unlawful to both the owner or the occupant of the land on which the outdoor advertising is located and the owner of the outdoor advertising, if the latter is known, or if unknown, by posting notice in a conspicuous place on the outdoor advertising. Within seven days after the notice is mailed or posted, the owner of the land or the outdoor advertising may make a written request to the director for a hearing to show cause why the outdoor advertising should not be removed.

E. The director shall designate a hearing officer, who is an administrative employee of the department, to conduct and preside at the hearing. If a hearing is requested, the department shall hold the hearing within thirty days after the hearing is requested and the department shall give the party requesting the hearing at least five days' notice of the time of the hearing. The department shall conduct the hearing at department administrative offices. A full and complete record and transcript of the hearing shall be taken.

F. Within ten days after the hearing, the hearing officer shall make a written determination of findings of fact, conclusions and decision and shall mail a copy by certified mail to the owner or the party who requested the hearing.

G. If the decision is adverse to the party, within ten days after the decision is rendered the party may petition the superior court in the county in which the outdoor advertising is located to determine whether the decision of the hearing officer was lawful and reasonable. If the decision of the court upholds that of the director, the owner of the land or the outdoor advertising or both shall pay all costs from the time of the administrative hearing, including court costs.

H. If a hearing before the director is not requested, if an appeal is not taken from the director's decision of the hearing or if the director's decision is affirmed on appeal, the director shall immediately remove the offending outdoor advertising. The owner of the outdoor advertising, the owner or occupant of the land or the owner of the outdoor advertising and the owner or occupant of the land are liable for the costs of this removal. The director has no liability for the removal.

§ 28-7907 Agreement with secretary of transportation

A. The director shall enter into the agreement with the United States secretary of transportation provided for by 23 United States Code section 131(d) providing the standards governing the size, lighting and spacing of outdoor advertising authorized under section 28-7902, subsection A, paragraphs 4 and 5 and defining an unzoned commercial or industrial area.

B. If the standards and definitions contained in the agreement do not agree substantially with this article, the agreement is not effective until this article is amended to conform with the terms of the agreement.

§ 28-7908 Rules

A. The director shall adopt and enforce rules governing the placing, maintenance and removal of outdoor advertising. The rules shall be consistent with:

1. The public policy of this state to protect the safety and welfare of the traveling public.

2. This article.

3. The terms of the agreement with the United States secretary of transportation pursuant to section 28-7907.

4. The national standards, criteria and regulations promulgated by the United States secretary of transportation pursuant to 23 United States Code section 131.

B. The director shall define by rule unzoned commercial or industrial areas, defined hardship areas and defined areas along the interstate and primary systems. The definitions shall:

1. Be consistent with the definitions of these areas provided in this article and in the agreement with the United States secretary of transportation pursuant to section 28-7907.

2. Take into consideration the negative economic impact and economic hardship of these areas.

§ 28-7909 Permits; fees; disposition

A. The director shall issue permits to place or maintain, or both, outdoor advertising authorized under section 28-7902, subsection A, paragraphs 1, 4, 5, 6, 7 and 8 and to establish and collect fees for the issuance of the permits. The fees shall not exceed the actual costs to the department.

B. The department shall deposit, pursuant to sections 35-146 and 35-147, the fees collected under this article in the state highway fund.

§ 28-7910 Governmental agency resolution; defined hardship area

A. On receipt of any resolution or other clear direction from any state agency, county, city, town or other governmental agency and of an analysis of negative economic impacts provided by the entity pursuant to the criteria and method of economic analysis determined by the director that removal of tourist related advertising devices would cause an economic hardship on a defined area, the director shall forward the resolution and economic analysis, if the director approves, with its endorsement and approval to the United States secretary of transportation for inclusion as a defined hardship area qualifying for exemption pursuant to 23 United States Code section 131(o).

B. A resolution submitted to the director in addition shall:

1. Find that the tourist related advertising devices provide directional information about goods and services in the interest of the traveling public.

2. Request the retention of the directional advertising devices described in this section.

§ 28-7911 Nongovernmental resolution; defined hardship area

A. On receipt of a resolution from any group of tourist related businesses, chambers of commerce or other such nongovernmental entities, and of an analysis of negative economic impacts provided by the entity pursuant to the criteria and method of economic analysis determined by the director that removal of tourist related advertising devices would cause an economic hardship on a defined area, the director shall forward the resolution and economic analysis, if the director approves, with its endorsement and approval to the United States secretary of transportation for inclusion as a defined hardship area qualifying for exemption pursuant to 23 United States Code section 131(o).

B. A resolution submitted to the director in addition shall:

1. Find that the tourist related advertising devices provide directional information about goods and services in the interest of the traveling public.

2. Request the retention of the directional advertising devices as described in this section.

§ 28-7912 City, town or county control of advertising displays

A. An incorporated city or town or a county may control outdoor advertising along interstate, secondary and primary highways on request to the director and certification by the director to the United States secretary of transportation that the city, town or county:

1. Has enacted comprehensive zoning ordinances.

2. By ordinance, regulates the size, lighting and spacing of outdoor advertising in zoned commercial and industrial areas along interstate, secondary and primary highways.

B. Cities, towns or counties shall not assume control of outdoor advertising under this section if the ordinance is less restrictive than this article.

§ 28-7913 Advertising displays; safety rest areas; information centers

To provide information in the specific interest of the traveling public, the director may authorize advertising displays at safety rest areas and at information centers.

§ 28-7914 Construction of article

This article is cumulative and supplemental to other provisions of law and does not affect or enlarge any authority of counties, cities or towns pursuant to any other provisions of law that may exist to enact ordinances regulating the size, lighting and spacing of outdoor advertising.

§ 28-7915 Violation; classification

A person who violates this article or a rule of the director adopted under this article is guilty of a class 2 misdemeanor.

Article 2 Junkyards

§ 28-7941 Definitions

In this article, unless the context otherwise requires:

1. "Automobile graveyard" means an establishment or place of business maintained, used or operated for storing, keeping, buying or selling wrecked, abandoned, scrapped, ruined or dismantled motor vehicles or motor vehicle parts.

2. "Interstate system" means the portion of the national system of interstate and defense highways located in this state that are officially designated by the board and approved by the United States secretary of transportation pursuant to 23 United States Code.

3. "Junk" means:

(a) Old or scrap copper, brass, rope, rags, batteries, paper, trash, rubber debris or waste.

(b) Junked, dismantled or wrecked automobiles or parts of junked, dismantled or wrecked automobiles.

(c) Iron, steel and other old or scrap ferrous or nonferrous material.

4. "Junkyard" means an establishment or place of business maintained, used or operated for storing, keeping, buying or selling junk or for maintaining or operating an automobile graveyard, including garbage dumps and sanitary landfills.

5. "Main traveled way":

(a) Means the portion of a roadway for the movement of vehicles, excluding shoulders, on which through traffic is carried.

(b) In the case of a divided highway, means the traveled way of each of the separated roadways for traffic in opposite directions.

(c) Does not include facilities such as frontage roads or parking areas.

6. "Primary system" means that portion of connected main highways located in this state that are officially designated by the board and approved by the United States secretary of transportation pursuant to 23 United States Code.

7. "Unzoned industrial area" means an area that is not zoned under authority of state law and in which the land use is characteristic of that generally permitted only in areas that are actually zoned industrial under authority of state law and that embraces all land on the same side of the highway on which one or more industrial activities are conducted, including all land within one thousand feet measured in each direction parallel to the highway from the nearest edge of the industrial building or activity on the land. As used in this paragraph, industrial activity does not include:

(a) Agricultural, forestry, grazing, farming, ranching and related activities.

(b) Transient or temporary activities, including wayside fresh produce stands.

(c) Activities not visible from the main traveled way.

(d) Activities conducted in a building principally used as a residence.

(e) Railroad tracks, minor sidings and passenger depots and aboveground or underground utility lines.

(f) Junkyards.

(g) Outdoor advertising structures.

(h) Activities in operation fewer than three months a year.

(i) Activities more than three hundred feet from the edge of a right-of-way.

§ 28-7942 Junkyards; screening; relocation; rules

A. If it is considered feasible by the director, the director may screen a junkyard that is in existence on July 1, 1974, that is located within one thousand feet of the nearest edge of the right-of-way of the interstate or primary systems and that is visible from the main traveled way of the interstate or primary systems. The screening shall be at locations on the right-of-way so that the junkyard is not visible from the main traveled way of the interstate or primary systems.

B. If the director determines that the topography of the land adjoining the interstate or primary systems does not permit adequate screening of the junkyards or that the screening would not be economically feasible, the director may require the relocation, removal or disposal of the junkyard and its junk by agreement, purchase, exchange or eminent domain or may acquire the junkyard and its junk by gift or other lawful means. If the director determines that it is in the best interest of this state, the director may acquire in the name of this state the land or an interest in the land that is necessary to accomplish the purposes of this article.

C. The owner of a junkyard that is located within one thousand feet of the nearest edge of the right-of-way of the interstate or primary system and that is visible from the main traveled way of the system whose property is taken in eminent domain is entitled to the payment of damages and to applicable relocation assistance payments, except that the owner is not entitled to the payments if the junkyard was established after May 11, 1971 unless the junkyard did not constitute a public nuisance pursuant to this article when it was established and was not otherwise unlawfully established in violation of municipal or county ordinances.

D. The director shall adopt and enforce rules governing the location, planting, construction and maintenance, including the materials used, in screening junkyards as required under this article.

E. This section does not apply to a junkyard that is operated in an area adjacent to an interstate or primary system, that is within one thousand feet of the nearest edge of the right-of-way and that is within an area zoned for industrial use or within an unzoned industrial area.

§ 28-7943 Junkyards; screening license

A. After July 1, 1974, a person shall not establish a new junkyard or expand a junkyard lawfully existing on July 1, 1974, any portion of which is within one thousand feet of the nearest edge of the right-of-way of the interstate or primary systems, without obtaining a screening license from the director.

B. The director shall establish and collect a fee for the issuance of the license. The department shall deposit, pursuant to sections 35-146 and 35-147, the fees collected for the licenses in the state highway fund.

C. The director shall not issue a screening license under this section for the establishment of a new junkyard or for the expansion of an existing junkyard within one thousand feet of the nearest edge of the right-of-way of the interstate or primary systems unless it conforms to at least one of the following requirements:

1. Is screened by natural objects, plantings, opaque fences or other appropriate means to the extent that it is not visible from the main traveled way of the interstate or primary systems or is otherwise removed from sight.

2. Is located within an area zoned for industrial use under the authority of law.

3. Is located within an unzoned industrial area as determined from actual land uses and defined by rules adopted by the director.

§ 28-7944 Junkyards; nuisance; injunction

The establishment, operation or maintenance of a junkyard contrary to this article is a public nuisance, and the governing body responsible for the street or highway on which the junkyard is located or the director, in the case of this state, may apply to the superior court in the county in which the junkyard is located for an injunction to abate the nuisance.

§ 28-7945 Construction of article

This article does not affect the provisions of any lawful ordinance or regulation that is more restrictive than this article.

§ 28-7946 Violation; classification

A person who violates this article or a rule of the director adopted under this article is guilty of a class 2 misdemeanor.

Chapter 24 Local Transportation Assistance

Article 2 Public Transportation Assistance

§ 28-8131 State assistance; regional public transportation activities

A. Pursuant to section 28-332, the department may cooperate with cities, towns, counties and other governmental authorities, including regional planning agencies, to plan and coordinate regional public transportation services in and adjoining a vehicle emissions control area as defined in section 49-541. This planning and coordination may be for the purpose of extending public transportation services across jurisdictional boundaries or into poorly served or unserved portions of urbanized areas and their suburban communities.

B. The department may cooperate with cities, towns, counties and other governmental authorities, including regional planning agencies, to plan, coordinate and encourage car pooling and van pooling activities in and adjoining a vehicle emissions control area as defined in section 49-541.

§ 28-8132 Funding; improving transit services

A. The department may make grants to governmental authorities provided in section 28-8131 for the purposes provided in this article and may cooperate with local authorities in improving existing transit services and in integrating these services to:

1. Better meet public transportation needs.

2. Promote a balanced regional transportation system.

3. Improve local or regional air quality.

4. Provide assistance in the planning, design and implementation of intermodal transportation projects, pedestrian related projects and bicycle related projects.

B. Planning, coordination and actual operation of these services may be funded with general state revenues appropriated by the legislature for these purposes.

§ 28-8133 Demonstration or pilot projects

A. The department may conduct demonstration or pilot projects to evaluate the effectiveness of new, extended, improved or integrated public transportation services, bicycle activities, pedestrian activities, intermodal transportation activities, and car pooling or van pooling activities in meeting regional transportation needs or in improving air quality.

B. These projects may be funded with general state revenues appropriated by the legislature for this purpose.

§ 28-8134 Department participation; limitation

In a county in which a regional public transportation authority has been established pursuant to title 48, chapter 29, the department may participate in the regional transit planning, coordination and demonstration activities prescribed by this article only in consultation with the authority.

Chapter 25 Aviation

Article 1 General Provisions

§ 28-8201 Definitions

In this article and articles 2 through 5 of this chapter, unless the context otherwise requires:

1. "Aeronaut" includes any aviator, pilot, balloonist and other person participating in the operation of aircraft while in flight.

2. "Aircraft" includes a balloon, airplane, amphibian and craft used for navigation through the air.

3. "Passenger" includes a person who rides in aircraft but has no part in its operation.

4. "Seizure of aircraft" means the physical disabling or securing of an aircraft by locks, chains or other mechanical devices.

§ 28-8202 State aviation fund

A. The state aviation fund is established consisting of the following:

1. Aviation fuel taxes or motor vehicle fuel taxes deposited by the department.

2. Monies deposited by the department as a result of the sale of an abandoned aircraft as defined in section 28-8243 or seized aircraft.

3. The amount of flight property tax that the department of revenue has deposited pursuant to section 42-14255.

4. Registration fees, license taxes and penalties collected pursuant to article 4 of this chapter.

5. Monies received by the department from the operation of airports under this article and articles 2 through 5 of this chapter.

6. The amount of jet fuel excise tax and jet fuel use tax that the department of revenue has deposited pursuant to section 42-5353.

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

C. The department shall administer monies that are appropriated by the legislature from the state aviation fund.

D. The board shall distribute monies appropriated to the department from the state aviation fund for planning, design, development, acquisition of interests in land, construction and improvement of publicly owned and operated airport facilities in counties, incorporated cities and towns and Indian reservations. The board shall distribute these monies according to the needs for these facilities as determined by the board. No more than ten percent of the average annual revenue that the fund received for the past three years may be awarded to any one airport in grants in any fiscal year. For the purposes of this subsection, "publicly owned and operated airport facility" means an airport and appurtenant facilities in which one or more agencies, departments or instrumentalities of this state, a city, town or county of this state or an Indian tribe or tribal government holds an interest in the land on which the airport is located that is clear of any reversionary interest, lien, easement, lease or other encumbrance that might preclude or interfere with the possession, use or control of the land for public airport purposes for a minimum period of twenty years.

§ 28-8204 State owned airports; fees

The director may establish fees for use of state owned airports and appurtenant facilities, including the following:

1. Landing and takeoff for commercial aircraft.

2. Aircraft tiedown.

3. Vehicle parking.

4. Equipment use.

5. Aircraft servicing.

6. Facility use.

7. Damages to equipment or facilities.

8. Janitorial or custodial services.

9. Terminal and land space rental.

10. Commission on sales at the airport.

11. Ground transportation use of the airport facility in serving passengers who are arriving or departing.

12. Use of advertising space.

13. Fuel flowage, storage, transportation and handling.

§ 28-8205 Construction of new airports; definitions

A. A new airport shall not be constructed within the boundaries of an urbanized area or within twenty-four statute miles of the exterior boundary of an urbanized area without approval of the board.

B. The board shall approve construction of a new airport only if both:

1. The construction of the new airport is consistent with the state, regional and local aviation system plans.

2. The state, regional and local aviation plans consider relevant criteria, including airspace and air safety, land use compatibility and priority of funding.

C. This section does not apply to a heliport or to an addition to an existing airport.

D. For the purposes of this section:

1. "Airport" means an area of land or water that is designed, set aside and utilized or to be utilized for the landing and taking off of aircraft.

2. "Heliport" means an area of land, water or structure that is used or intended to be used for the landing and takeoff of rotorcraft. For the purposes of this paragraph, "rotorcraft" means a heavier than air aircraft that depends principally for its support in flight on the lift generated by one or more rotors.

3. "Urbanized area" means an urbanized area as defined in the most recent decennial census by the United States bureau of the census.

§ 28-8206 Sovereignty

This state has sovereignty in space above land and water of this state, unless sovereignty is granted to and assumed by the United States pursuant to a lawful grant from this state.

§ 28-8207 Ownership

Ownership of space above land and water of this state is vested in the several owners of the surface beneath, subject to the right of flight described in section 28-8277.

§ 28-8208 Crimes, torts and other wrongs; governing law

A. Any crime, tort or other wrong that is committed by or against an aeronaut or passenger while in flight over this state is governed by the law of this state.

B. The law of this state determines whether damage by or to an aircraft while in flight over this state is a tort, a crime or any other wrong by or against the owner of the aircraft.

§ 28-8209 Legal relationships while in flight

Any contractual or other legal relationship entered into by aeronauts or passengers while in flight over this state have the same effect as if entered into on the land or water beneath the aeronauts or passengers.

§ 28-8210 Civil air patrol; federal monies

Notwithstanding any other law, the civil air patrol may receive monies directly or indirectly from the United States department of homeland security.

Article 2 Aeronautics Division

§ 28-8241 Aeronautics division; assistant director

A. An assistant director for aeronautics who has an aeronautical background shall administer the aeronautics division of the department.

B. The compensation of the assistant director shall be determined pursuant to section 38-611.

§ 28-8242 Powers and duties

A. The department:

1. Shall cooperate with all state, local and federal organizations to encourage and advance the safe and orderly development of aviation in this state.

2. May:

(a) Assemble and distribute to the public information relating to aviation, landing fields, navigational aids and other matters pertaining to aviation.

(b) Accept, in the name of this state, federal monies made available for the advancement of aviation.

(c) Represent this state on issues of routing structures and rate schedules concerning commercial airline traffic.

(d) Accept and receive federal and other public or private monies for the acquisition, construction, enlargement, improvement, maintenance, equipment or operation of airports and other air navigation facilities and sites for air navigation facilities or for any other purpose authorized by this section. The department shall deposit, pursuant to sections 35-146 and 35-147, these monies in the state aviation fund.

(e) Facilitate the development of a regional airport.

(f) Loan monies from the state aviation fund to an airport authority that enters into an agreement with the United States for an airport development project if the airport authority designates in its agreement with the United States that payment of federal participating monies shall be made to the department acting as the agent of the airport authority and enters into an agreement with the department appointing the department as agent of the airport authority to receive all federal participating monies. The department shall deposit, pursuant to sections 35-146 and 35-147, all monies received pursuant to this subdivision in the state aviation fund. For the purposes of this subdivision, "airport authority" means the governing body of a public airport operating pursuant to sections 28-8423 and 28-8424 or a joint powers airport authority.

B. Notwithstanding section 38-623, the director may authorize personnel of the department to use rental aircraft in the performance of their duties at the prevailing hourly rate. The rental fee is a charge against monies appropriated for in-state and out-of-state travel.

C. The director shall:

1. Contract for the operation of state owned airports.

2. In conjunction with local authorities, plan, build and develop airports, airport terminals and other related navigational facilities.

3. Operate and maintain the Grand Canyon national park airport located in the Kaibab national forest, Coconino county.

4. Provide on the department's website information on resources for operating a model aircraft, including safety guidelines established by a nationwide aeronautics community-based organization.

5. Provide on the department's website pictures that show examples of critical facilities, as defined in section 13-3729, to provide unmanned aircraft operators with information on what is considered a critical facility. A picture or any written description on the website may not identify the owner or operator of the critical facility or the location of the critical facility.

§ 28-8243 Abandoned aircraft; definition

A. A person shall not abandon an aircraft on property of another.

B. A peace officer who has reasonable grounds to believe that an aircraft has been abandoned may seize the aircraft and cause its removal from property of another. A peace officer who causes the removal of an aircraft pursuant to this subsection shall immediately notify the director in writing of the removal.

C. The abandonment of an aircraft in the manner provided in this section is a presumption that the last registered owner of record is responsible for the abandonment, unless the aircraft is the subject of a theft report filed with a local law enforcement agency.

D. On receipt of a report as required by this section, the director shall search the records of the department. On receipt of information disclosing the name and address of the owner and lienholder, if any, the director, at least fifteen days before the date of taking this action, shall give to the owner and lienholder, if any, notice of the director's intention to sell the aircraft. The director shall give notice by certified mail, return receipt requested, to be delivered to the addressee only.

E. If the records of the department fail to disclose the name and address of the owner and lienholder, if any, or if the notice is returned marked unclaimed or addressee unknown, the director shall publish notice of the director's intention to sell the aircraft once in a newspaper of general circulation in the county in which the aircraft was seized. The notice shall include a complete description of the aircraft, including the identification number and the place and date the aircraft was found.

F. If the aircraft is unclaimed at the expiration of fifteen days from mailing the certified notice or on the expiration of fifteen days from the publication, the director may sell the aircraft at public auction to the highest bidder. The director shall issue a bill of sale to the purchaser at the sale on compliance with this section.

G. The director shall retain any surplus arising from the sale, after deducting the costs of the sale of the aircraft, for the lienholder or owner for a period of thirty days. If the surplus is not claimed on the expiration of that time it shall be deposited, pursuant to sections 35-146 and 35-147, in the state aviation fund.

H. For the purposes of this section, "abandoned aircraft" means an aircraft that has been left on property without the consent of the owner or operator of the property for more than sixty days.

§ 28-8244 Hearing; appeal

A. A person who is aggrieved by a decision made within the department pursuant to this article or article 1, 3, 4 or 5 of this chapter may request a hearing before the director. The person shall submit a written request for the hearing to the department within thirty days after the decision of the department.

B. Except as otherwise provided in this section, the director shall hold the hearing in accordance with title 41, chapter 6, article 6.

C. A party to the hearing before the director may appeal pursuant to title 12, chapter 7, article 6.

Article 3 Aircraft Operation

§ 28-8271 Federal license; violation

A. A person who operates aircraft in this state for which a license is required by the United States or a federal agency shall have the class of license that is required.

B. It is unlawful for a person to operate aircraft in this state in any manner without a license required by this section.

C. The licensee shall:

1. Keep the license in the licensee's personal possession when operating aircraft in this state.

2. Present the license for inspection on the request of a passenger, a peace officer of this state or an official, manager or person in charge of an airport in this state where the licensee will land.

§ 28-8272 Federal regulation; licensing and registration; violation

A. Aircraft operating in this state shall conform to design, construction and airworthiness standards prescribed by the United States or the appropriate federal agency for the navigation of aircraft subject to its jurisdiction.

B. It is unlawful for a person to navigate an aircraft in this state unless it is licensed and registered by the appropriate agency of the United States in the manner prescribed by regulations of the United States or the appropriate federal agency.

§ 28-8273 Damage responsibility

A. A pilot is responsible for damage to a person or property that is caused by aircraft directed by the pilot or under the pilot's control and that results from the negligence of the pilot, either in controlling the aircraft or while giving instructions to another person.

B. If the pilot is the agent or employee of another, both the pilot and the pilot's principal or employer are responsible for the damage.

§ 28-8274 Aircraft collisions; liability

The law applicable to torts on land determines the liability of the owner of one aircraft to the owner of another aircraft or to aeronauts or passengers on either aircraft for damage caused by a collision on land or in the air.

§ 28-8275 Insurance coverage disclosure; civil penalty

A. A person who rents an aircraft to another person shall both:

1. Deliver to the renter a written notice stating the nature and extent of insurance coverage provided, if any, for the renter against either:

(a) Loss of or damage to the hull of the aircraft.

(b) Liability arising out of the ownership, maintenance or use of the aircraft.

2. Retain copies of the notice for two years from the last date the renter has rented an aircraft from the person.

B. The notice provided in subsection A constitutes a material part of the rental agreement. The renter shall give written acknowledgment of receipt of this notice.

C. Delivery of the notice covers all future rentals of the same aircraft to the same person, unless the insurance coverage provided in the original notice has been reduced or eliminated.

D. Failure to deliver the notice pursuant to subsection A shall result in a civil penalty of not more than one thousand dollars.

§ 28-8276 Violations; classification

A. Unless another classification is provided, a person who violates this article is guilty of a class 3 misdemeanor.

B. An act or omission that is unlawful pursuant to this article does not include an act or omission that violates the laws or regulations of the United States.

C. It is not necessary to allege or prove as part of the case for this state that the defendant is not subject to prosecution under the laws of the United States for the alleged violation. The fact that the defendant is amenable to prosecution under the laws of the United States is a matter of defense, unless it affirmatively appears from the evidence of this state.

§ 28-8277 Low altitude flying prohibited

Flight of aircraft over lands and waters of this state is lawful, unless either:

1. It is at a low altitude that interferes with the existing use to which land, water or space over the land or water is put by the owner.

2. It is conducted in a manner that is imminently dangerous to persons or property lawfully on the land or water beneath the flight.

§ 28-8278 Landing prohibition; liability

A. Landing of aircraft on lands or waters of another without consent of the owner of the lands or waters is unlawful, unless it is a forced landing.

B. The owner or lessee of the aircraft or the aeronaut is liable for damages caused by a forced landing as provided in section 28-8273.

§ 28-8279 Trick or acrobatic flying; low level flying; dropping objects; classification

An aeronaut or passenger who does any of the following while in flight over a densely inhabited area or over a public gathering in this state is guilty of a class 1 misdemeanor:

1. Engages in trick or acrobatic flying or in any acrobatic feat.

2. Except while landing or taking off, flies at a low level that endangers persons on the surface beneath the flight.

3. Drops an object, except loose water, loose sand ballast or loose sheets of paper.

§ 28-8280 Careless or reckless aircraft operation; violation; classification; definitions

A. A person who operates an aircraft in the air, on the ground or on the water in a careless or reckless manner that endangers the life or property of another is guilty of a class 1 misdemeanor. In determining whether the operation was careless or reckless, the court shall consider the standards for safe operation of aircraft prescribed by federal statutes or regulations governing aeronautics.

B. For the purposes of this section:

1. "Aircraft" includes a model aircraft and civil unmanned aircraft.

2. "Civil unmanned aircraft" has the same meaning prescribed in section 13-3729.

3. "Model aircraft" has the same meaning prescribed in section 13-3729.

§ 28-8281 Killing birds or animals; classification

A. Except as provided in subsection B, an aeronaut or passenger who intentionally kills birds or animals while in flight is guilty of a class 1 misdemeanor.

B. If authorized by the Arizona game and fish commission, the following persons may take coyotes by shooting from aircraft for wildlife and livestock management purposes:

1. An employee of the Arizona game and fish department.

2. An authorized employee of the United States government agency.

§ 28-8282 Prohibited operation; under the influence; incapacitation

A. A person shall not operate or be in actual physical control of an aircraft if the person is either:

1. Under the influence of intoxicating liquor, narcotic or other drugs or marijuana.

2. By reason of mental or physical disability, incapable of operating an aircraft under the circumstances.

B. In a criminal prosecution for a violation of subsection A relating to operating an aircraft while under the influence of intoxicating liquor, it is presumed that the defendant was under the influence of intoxicating liquor if there was at the time 0.04 per cent or more by weight of alcohol in the defendant's blood, urine, breath or other bodily substance. This subsection does not limit the introduction of any other competent evidence bearing on the question of whether or not the defendant was under the influence of intoxicating liquor.

C. A person shall not operate or be in actual physical control of an aircraft either:

1. While there is 0.04 per cent or more by weight of alcohol in the person's blood.

2. Within eight hours after consuming intoxicating liquor, narcotic or habit forming drugs or marijuana.

D. An owner of an aircraft or a person in charge or control of an aircraft shall not knowingly permit the aircraft to be operated by a person in violation of subsection A or C.

E. Per cent by weight of alcohol in the blood is based on grams of alcohol per hundred cubic centimeters of blood.

§ 28-8283 Implied consent; immunity

A. A person who operates or is in actual physical control of an aircraft in the air or on the ground or water gives consent to a test or tests of the person's blood, breath or urine to determine the alcoholic content of the person's blood if arrested for operating or being in actual physical control of an aircraft while under the influence of intoxicating liquor. The test shall be given in the same manner as prescribed in sections 28-1321, 28-1323, 28-1324, 28-1325 and 28-1388.

B. If a person under arrest refuses to submit to a test designated by the law enforcement agency, the test shall not be given. The refusal to submit to the test is admissible in evidence in a prosecution for a violation of section 28-8282, subsection A or C. The law enforcement agency shall report the person's refusal to submit to the test to the federal aviation administration for appropriate administrative action.

C. A person qualified to withdraw blood or take a urine specimen under this section or any hospital, laboratory or clinic employing or utilizing the services of the person is not civilly liable as a result of these activities, if a law enforcement officer requests the withdrawal of blood or the taking of urine specimens, unless the person is guilty of gross negligence while performing the activities.

§ 28-8284 Violation; classification

A. A person who is convicted of a violation of section 28-8282 is guilty of a class 1 misdemeanor and shall be sentenced to serve not less than twenty-four consecutive hours in jail.

B. The court shall order the person to pay a fine of not less than two hundred fifty dollars and may order the person to perform not less than eight or more than twenty-four hours of community restitution.

C. A court shall not grant probation to or suspend any part or all of the imposition or execution of a sentence required by this section, except on the condition that the person serve not less than twenty-four consecutive hours in jail and pay a fine of not less than two hundred fifty dollars.

D. The court:

1. Shall not excuse an offender from spending twenty-four consecutive hours in jail.

2. May require the offender to attend traffic safety or alcohol abuse classes at the offender's expense.

3. If in the court's opinion the offender has the problem of habitual abuse of alcohol or drugs, shall require the offender to obtain treatment under its supervision.

4. Shall order the offender to pay an additional assessment of five hundred dollars to be deposited by the state treasurer in the prison construction and operations fund established by section 41-1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

5. Shall order the offender to pay an additional assessment of five hundred dollars to be deposited by the state treasurer in the public safety equipment fund established by section 41-1723. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

E. Notwithstanding subsection A of this section, the judge may sentence a person pursuant to section 28-8286 instead of pursuant to subsection A of this section, if all of the following conditions are met:

1. The person is convicted of a violation of section 28-8282.

2. The prosecutor alleges the provisions of this subsection.

3. The court finds that alternative sentencing will serve the best interests of this state and that the person:

(a) Has not been convicted of one or more violations of section 28-8282 within sixty months of the date of commission of the acts out of which the charges arose. The dates of commission of the offense are the determining factor in applying this paragraph.

(b) Was not flying with 0.08 per cent or more by weight of alcohol in the person's blood.

(c) Did not cause serious physical injury as defined in section 13-105 to another person during the same event or course of conduct that resulted in the conviction for which the person is to be sentenced.

§ 28-8285 Alcohol abuse screening session

The court shall order a person convicted of a violation of section 28-8282 to complete an alcohol abuse screening session. The convicted person shall pay the reasonable costs of the screening session.

§ 28-8286 Alternative sentencing

If pursuant to section 28-8284, subsection E a court orders a person convicted of a violation of section 28-8282 to be sentenced pursuant to this section, the court:

1. Shall order the person to pay a fine of not less than two hundred fifty dollars.

2. May order the person to perform not less than eight or more than twenty-four hours of community restitution.

3. May require the person to attend traffic safety or alcohol abuse classes at the person's expense.

4. If in the court's opinion the person has the problem of habitual abuse of alcohol or drugs, shall require the person to obtain treatment under its supervision.

5. Shall not suspend any part or all of the imposition or execution of any sentence required by this section.

6. Shall order the person to pay an additional assessment of five hundred dollars to be deposited by the state treasurer in the prison construction and operations fund established by section 41-1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

7. Shall order the person to pay an additional assessment of five hundred dollars to be deposited by the state treasurer in the public safety equipment fund established by section 41-1723. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

§ 28-8287 Second offense

A. If a person is convicted of a second violation of section 28-8282 or is convicted of a violation of section 28-8282 and has previously been convicted of an act in another state that if committed in this state would be a violation of section 28-8282 within a period of sixty months:

1. The person is guilty of a class 1 misdemeanor.

2. The person shall be sentenced to serve not less than sixty days in jail.

3. The court shall order the person to pay a fine of not less than five hundred dollars.

4. The court shall not grant probation to or suspend any part or all of the imposition or execution of any sentence required by this subsection, except on the condition that the person serve not less than sixty days in jail and pay a fine of not less than five hundred dollars.

5. If in the court's opinion the offender has the problem of habitual abuse of alcohol or drugs, the court shall require the person to obtain treatment under its supervision.

6. The person shall pay an additional assessment of one thousand two hundred fifty dollars to be deposited by the state treasurer in the prison construction and operations fund established by section 41-1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

7. The person shall pay an additional assessment of one thousand two hundred fifty dollars to be deposited by the state treasurer in the public safety equipment fund established by section 41-1723. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

B. The dates of the commission of the offense are the determining factor in applying this section.

C. A second violation for which a conviction occurs as provided in this section shall not include a conviction for an offense arising out of the same series of acts.

§ 28-8288 Third or subsequent offense

A. If a person is convicted of a third or subsequent violation of section 28-8282 or is convicted of a violation of section 28-8282 and has previously been convicted of any combination of convictions of section 28-8282 or acts committed in another state that if committed in this state would be a violation of section 28-8282 within a period of sixty months:

1. The person is guilty of a class 5 felony.

2. The person is not eligible for probation, pardon, suspension of sentence or release on any basis except as specifically authorized by section 31-233, subsection A or B until the person has served not less than six months in prison.

3. The court shall not suspend the imposition of a prison sentence.

4. If in the court's opinion the person has the problem of habitual abuse of alcohol or drugs, the court shall require the person to obtain treatment under its supervision.

5. In addition to any other penalty prescribed by law, the person shall pay an additional assessment of one thousand five hundred dollars to be deposited by the state treasurer in the prison construction and operations fund established by section 41-1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

6. In addition to any other penalty prescribed by law, the person shall pay an additional assessment of one thousand five hundred dollars to be deposited by the state treasurer in the public safety equipment fund established by section 41-1723. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

B. The dates of the commission of the offense are the determining factor in applying this section.

C. A third or subsequent violation for which a conviction occurs as provided in this section shall not include a conviction for an offense arising out of the same series of acts.

§ 28-8289 Political subdivision; immunity

A political subdivision processing or utilizing the services of a person ordered to perform community restitution pursuant to this article is not civilly liable to the person ordered to perform community restitution as a result of these activities unless the political subdivision or its agent or employee is guilty of gross negligence.

§ 28-8290 Employment permitted

A. On pronouncement of a jail sentence under section 28-8284, 28-8287 or 28-8288, the court may provide in the sentence that the defendant may be permitted, if the defendant is employed and can continue employment, to both:

1. Continue employment for not more than twelve hours per day or more than six days per week.

2. Spend the remaining day, days or parts of days in jail until the sentence is served.

B. The defendant sentenced under this section shall be allowed out of jail only long enough to complete the defendant's actual hours of employment.

§ 28-8291 Prior convictions allowed

A. The court:

1. Shall allow the allegation of a prior conviction or any other pending charge of a violation of section 28-8282 that is filed twenty or more days before the date the case is actually tried.

2. May allow the allegation of a prior conviction or any other pending charge of a violation of section 28-8282 that is filed any time before the date the case is actually tried.

B. When the allegation is filed, the state shall make available to the defendant a copy of any information obtained concerning the prior conviction or other pending charge.

C. The sequence of court dispositions of pending cases is immaterial if the offenses were committed within sixty months.

§ 28-8292 Waiver of fine, surcharge or assessment

Notwithstanding any other law, the court shall not waive a fine or assessment imposed pursuant to this article or a surcharge imposed pursuant to section 12-116.01 or 12-116.02 for a conviction of an offense listed in this article.

Article 4 Aircraft Registration and Taxation

§ 28-8321 Definition of resident

For the purpose of registration of an aircraft, "resident" has the same meaning prescribed in section 28-2001.

§ 28-8322 Registration; exceptions; definition

A. Aircraft based in this state shall be registered with the department.

B. A person or governmental entity shall register an aircraft by applying to the department on a form provided by the department within sixty days after the aircraft is brought into this state. A person who registers an aircraft shall renew the registration annually as prescribed by section 28-8322.01.

C. The department shall not issue a registration certificate for an aircraft to a person who is subject to the use tax paid pursuant to title 42, chapter 5, article 4 unless the applicable tax has been paid as shown by a receipt from the collecting officer.

D. Subsections A and B of this section do not apply to aircraft that is any of the following:

1. Operated by an airline company and regularly scheduled for the primary purpose of carrying persons or property for hire in interstate, intrastate or international transportation.

2. Owned by a nonresident who bases the aircraft in this state for a period of not more than ninety consecutive days or ninety days in any one calendar year, if the aircraft is not engaged in intrastate commercial activity.

3. A balloon.

E. Aircraft, except aircraft included in subsection D, paragraph 1 or 3 of this section, entering the state to engage in intrastate commercial operations shall be registered before commencing these operations.

F. For the purposes of this section, "balloon" means either:

1. An aircraft that is a flexible, nonporous bag inflated with a gas that is lighter than air.

2. A hot air balloon.

§ 28-8322.01 Staggered aircraft registration; rules

A. The director shall establish a system of staggered registration on a monthly basis to distribute the work of registering aircraft as uniformly as practicable throughout the twelve months of the calendar year.

B. All aircraft registrations under this article expire pursuant to schedules established by the director. The director may set the number of renewal periods within a month.

C. If adoption of the staggered system results in the expiration of any registration more than one year after its issuance, the department shall charge a prorated license tax that is one-twelfth of the full annual amount for each full month of the registration cycle and shall charge a full registration fee.

D. In order to initiate a system of registering or reregistering aircraft during any month of the calendar year, the director may register or reregister an aircraft for more or less than a twelve-month period, but for not more than an eighteen-month period, and may prorate the license tax by one-twelfth of the full annual amount for each full month of the registration cycle and shall charge a full registration fee.

E. The director or a registering officer may allow a person who owns two or more aircraft to register or reregister the aircraft for less than one year so that the aircraft's registrations expire on the same date.

F. The director shall adopt rules necessary to implement this section.

§ 28-8322.02 Fleet registration requirements

A. In lieu of the staggered aircraft registration requirements under section 28-8322.01, a person may register a fleet of two or more aircraft on an annual basis so that the registrations for all aircraft in the fleet expire in the same month.

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

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

2. A list of all aircraft to be included in the fleet.

C. To establish a new fleet registration and a uniform month of expiration, all of the following apply:

1. The department shall maintain the valuation for aircraft determined pursuant to section 28-8335 at the current valuation if it is necessary to calculate a prorated license tax.

2. The license tax for that year on the aircraft shall be prorated by one-twelfth of the full annual amount for each full month of the registration cycle.

3. The aircraft owner shall pay the full registration fee. The registration may not be prorated.

§ 28-8323 Government and dealer aircraft registration; fees

A. This state, any political subdivision of this state or the civil air patrol shall register aircraft it owns and operates exclusively in the public service, but a registration fee or license tax shall not be assessed on this aircraft. If this state, any political subdivision of this state or the civil air patrol does not register the aircraft as provided in section 28-8322, this state, the political subdivision or the civil air patrol shall pay the department a penalty fee of twenty-five dollars for the first month and five dollars for each succeeding month until it makes application for registration on the form provided by the department.

B. An aircraft dealer licensed by the department pursuant to section 28-8383 shall register aircraft the dealer owns and holds for the purposes of sale. If the dealer fails to register the aircraft with the department as an aircraft being held for purposes of sale on a form provided by the department within ten days after the aircraft is purchased by the dealer, the department shall assess the registration fee prescribed in section 28-8325 and the license tax prescribed in section 28-8335 on the aircraft.

§ 28-8324 Registration; license tax

A. Aircraft on which a license tax is due under section 28-8335 shall not be registered until the license tax is paid.

B. If an aircraft that was not previously subject to registration in this state becomes subject to registration, the aircraft shall be registered pursuant to section 28-8322.01.

§ 28-8325 Registration fee; certificate

On payment of a registration fee of $5, the license tax and the penalty, if any, the department shall issue a registration certificate that must be kept with the aircraft at all times.

§ 28-8326 Aircraft dealers; registration application; penalty

A. At the time of the sale, aircraft dealers shall have the aircraft buyer prepare and sign an application for aircraft registration. The dealer shall immediately forward the application to the department.

B. A dealer who fails to forward the completed application to the department within twenty calendar days shall pay a penalty of twenty-five dollars.

§ 28-8327 Exemption claim

A. On request of the department, a person who claims that an aircraft is exempt from payment of the license tax or registration fee imposed by this article shall make available for inspection the aircraft logbook and furnish the name of any pilot who has flown the aircraft during the period for which the exemption is claimed.

B. The assessment of registration fees, license taxes and penalties by the department is presumed correct if the person wilfully fails to comply with this section.

§ 28-8328 Failure to register; assessment procedure

If an aircraft is not registered within the time periods prescribed in this article, the director shall assess registration fees, license taxes and penalties due as follows:

1. The director shall give written notice of the assessment to the owner of the aircraft by either mailing the notice in a postage prepaid sealed envelope addressed to the owner of the aircraft at the owner's address as it appears in the records of the department or by delivery in person. Notice is deemed to be complete at the time of mailing or at the time of personal delivery.

2. The assessment is final thirty days after notice is deemed to be complete, unless, before that time, the department receives a written objection to the assessment and a request for a hearing from the owner. If the department receives a request for a hearing, the hearing shall be conducted as provided in section 28-8244.

§ 28-8329 Late registration; penalty; abatement

A. If an aircraft required to be registered under this article is not registered within sixty days after its entry into this state and renewed annually pursuant to section 28-8322.01, a penalty of $25 for the first month and $5 for each succeeding month of delinquency shall be added to the registration fee and collected unless an exemption for the aircraft is established pursuant to this article.

B. Registration of the aircraft for the year immediately preceding the year for which the application for registration is made is prima facie evidence that the aircraft has been based in this state during the year for which the application for registration is made.

C. The director may abate all or a part of any penalty assessed for failure to register an aircraft within the time periods prescribed in this article if the director believes that reasonable cause exists for the failure to register the aircraft as provided by this article. For the purposes of this subsection, "reasonable cause" means a reasonable basis for the person responsible for registration of the aircraft to believe that the aircraft was exempt from registration requirements.

§ 28-8330 Lien

A. The license tax, registration fee and penalty constitute a lien on the aircraft on which they are due from the due date.

B. The lien has priority over any other lien or encumbrance on the aircraft, except for a lien of other state taxes that has priority by law.

C. The lien continues until the license taxes, registration fees, penalties and lien recording fees are paid.

D. The department shall issue a release of the lien on receipt of full payment of the registration fees, license taxes, penalties and lien recording fees secured by the lien. The release shall be a document in a form as specified in section 11-480.

E. If requested by the department, the sheriff of the county in which the aircraft is found or any other peace officer shall collect the license tax, registration fee, penalty and lien recording fee by seizure of the aircraft from the person in possession of the aircraft, if any, and by sale as provided in section 28-8331.

§ 28-8331 Seized aircraft sale

A. If an aircraft has been seized under this article and held for a period of sixty days and license taxes, registration fees, penalties, lien recording fees and costs and expenses of seizure are not paid in full, the sheriff of the county in which the aircraft is found shall sell the aircraft when requested by the department.

B. The sale of an aircraft under this section shall be at public auction after notice of the sale is sent by the department by certified mail at least five but not more than twenty days before the sale directed to the last known address of the owner of the aircraft, if the owner is known. If the owner is unknown, the department shall give notice by publication in a newspaper of general circulation in the county in which the aircraft was seized. If notice is published in a weekly newspaper, the publication shall be made once each week for two consecutive weeks, or if published in a daily newspaper, six consecutive times, the last publication to be at least five but not more than ten days before the date of the sale.

C. Within five days after receipt of the proceeds of the sale, the sheriff shall transmit the entire proceeds to the department. After payment by the department of the license taxes, registration fees, penalties, lien recording fees and costs and expenses of the seizure and sale, the department shall pay the remaining proceeds of the sale to the owner from whom the aircraft was seized, if the owner is known. If the owner is unknown, the department shall deposit, pursuant to sections 35-146 and 35-147, the remaining proceeds in the state aviation fund.

D. The department may issue a certificate of release of lien on payment of the license taxes, registration fees, penalties, lien recording fees and costs and expenses of seizure and sale.

§ 28-8332 Registration; transfer or assignment

A. If a person who registered an aircraft under this article transfers or assigns title to or interest in the aircraft, the registration of the aircraft expires.

B. Within sixty days after the transfer or assignment, the person to whom the transfer or assignment is made shall register the aircraft in that person's name with the department and pay the regular registration fee, unless the aircraft is exempt from registration pursuant to section 28-8322.

C. If an aircraft is not registered within sixty days after the transfer or assignment as required by this section, the department shall collect an annual penalty of twenty-five dollars for the first month and five dollars for each succeeding month of delinquency in addition to the registration fee.

§ 28-8334 Aircraft loss or destruction

If an aircraft registered under this article is lost or destroyed, the registration of the aircraft expires. The person to whom the aircraft is registered, or, if that person dies, that person's legal representative, shall inform the department in writing of the loss or destruction of the aircraft within thirty days after it occurs.

§ 28-8335 License tax; tax rate

A. An annual license tax is imposed on all aircraft based in this state and required to be registered pursuant to this article, unless an exemption for the aircraft is established pursuant to this article. The license tax is payable to the department on initial registration and annually pursuant to section 28-8322.01.

B. Except as provided in sections 28-8336, 28-8337, 28-8338, 28-8339, 28-8340 and 28-8341, the department shall determine and assess the license tax prescribed by subsection A of this section on the basis of one-half percent of the average fair market value of the particular make, model and year of aircraft. The average fair market value:

1. May not have an annual percentage change that is more than the annual percentage change in the average consumer price index as published by the United States department of labor, bureau of labor statistics.

2. In fiscal year 2021-2022, shall be benchmarked to what the average fair market value of the aircraft was in 2019.

C. The tax assessed under this section shall be at least $20 for a full year of registration.

§ 28-8336 Nonresident; license tax rate

The license tax for a nonresident whose aircraft is based in this state for more than ninety days but less than two hundred ten days in a calendar year is equal to one-tenth of one per cent of the average fair market value of the particular make, model and year of aircraft if the aircraft is not engaged in any intrastate commercial activity.

§ 28-8337 Stored or repaired aircraft; license tax rate

A. The annual license tax for aircraft that is in storage or that is being repaired is $20 for each aircraft, except for an aircraft taxed under section 28-8341.

B. To qualify for the tax under this section, the aircraft owner shall annually file a sworn affidavit on a form provided by the department with the department not later than the last day of the registration cycle or within sixty days after the aircraft is placed in storage or under repair on entry into this state.

C. The owner of an aircraft that is subject to the tax under this section shall notify the department within ten days after the date the aircraft is returned to use and shall pay the appropriate license tax, if any, prorated on the basis of one-twelfth for each month remaining in the registration cycle beginning with the first month the aircraft is restored to use.

§ 28-8338 Salvage aircraft; license tax rate; definition

A. The annual license tax for a salvage aircraft that is in storage or that is being restored is $5 for each aircraft, and the tax shall not be prorated.

B. To qualify for the tax under this section, the salvage aircraft owner shall annually file a sworn affidavit on a form provided by the department with the department not later than the last day of the registration cycle or within sixty days after the aircraft is placed in storage or under restoration on entry into this state.

C. The salvage aircraft owner who is subject to the tax under this section shall notify the department within ten days after the date the aircraft is returned to use and shall pay the appropriate license tax, if any, prorated on the basis of one-twelfth for each month remaining in the registration cycle beginning with the first month the aircraft is returned to use.

D. For the purposes of this section, "salvage aircraft" means an aircraft that is being restored and that is not meant to be flown.

§ 28-8339 Special aircraft; license tax rate; definitions

A. The annual license tax for an antique aircraft, classic aircraft, warbird aircraft, glider aircraft, experimental aircraft or homebuilt aircraft is $20 for each aircraft.

B. To qualify for the tax under this section, the aircraft owner shall annually apply on a form provided by the department to the department not later than the last day of the registration cycle or within sixty days after entry into this state.

C. For the purposes of this section:

1. "Antique aircraft" means an aircraft that has a year of original manufacture and federal certification that is fifty years old or older.

2. "Classic aircraft" means an aircraft that has a year of original manufacture and federal certification that is at least forty years old but not more than forty-nine years old.

3. "Experimental aircraft" means an aircraft that is designated as experimental on its federal aviation administration airworthiness certificate.

4. "Glider aircraft" means a light, engineless aircraft that is designed to glide after being towed aloft or launched from a catapult.

5. "Homebuilt aircraft" means an aircraft that is constructed primarily by an individual for the individual's personal use, excluding an aircraft that is constructed primarily by a for profit aircraft manufacturing business.

6. "Warbird aircraft" means an aircraft that is built before January 1, 1948 expressly for the purpose of military service.

§ 28-8340 Manufacturer's aircraft; definition

A. The annual license tax for a manufacturer's aircraft is $20 for each aircraft.

B. To qualify for the tax under this section, the manufacturer's aircraft owner shall annually file a sworn affidavit on a form provided by the department with the department not later than the last day of the registration cycle or within sixty days after entry into this state.

C. For the purposes of this section, "manufacturer's aircraft" means an aircraft that is both:

1. Manufactured under a production certificate issued by the federal aviation administration under federal air regulations part 21.

2. Owned by the manufacturer for purposes of completing manufacture or sale.

§ 28-8341 Maintenance aircraft; license tax rate; definition

A. The annual license tax for a maintenance aircraft owned by a nonresident is $20 for each aircraft, unless an exemption is established pursuant to this article. The tax shall not be prorated.

B. To qualify for the tax under this section, the nonresident owner or representative of the owner shall annually file a sworn affidavit on a form provided by the department with the department not later than the last day of the registration cycle or within ninety days after the maintenance aircraft enters this state.

C. For the purposes of this section, "maintenance aircraft" means an aircraft that is not based in this state but that is present in this state solely for the purpose of maintenance, repair or servicing at a federal certified maintenance facility.

§ 28-8342 Fair market value determination

For the registration cycle, the department shall annually determine the fair market value required by sections 28-8335 and 28-8336 as established by the dealer price guides or other recognized reliable source of information.

§ 28-8343 Aircraft total loss; violation; classification

A. If a company that insures an aircraft determines the aircraft is a total loss, the insurer shall provide to the department an affidavit stating that a total loss occurred.

B. If the aircraft is a total loss, is transferred to another person, business or organization and is not insured, the person, business or organization shall provide an affidavit to the department stating the aircraft to be a total loss.

C. On receipt of the affidavit, the director shall:

1. Determine the amount of registration fee and license tax under this article.

2. Reduce the amount of the registration fee and license tax by one-twelfth for each full month of the registration period that has not yet expired.

3. Allow a tax credit to the owner for the appropriate amount of taxes previously paid on verified written application by the owner of the aircraft at the time the total loss occurred. The owner may use the tax credit on the next or several succeeding aircraft registration fees or license taxes that may be owed by the owner.

D. A person who violates this section is guilty of a class 2 misdemeanor.

§ 28-8344 Aviation fuel tax; rate; definition

A. In addition to all other taxes provided by law, each supplier shall pay to this state a tax of five cents for each gallon of aviation fuel as provided in chapter 16, article 1 of this title.

B. For the purposes of this section, "supplier" has the same meaning prescribed in section 28-5601.

§ 28-8345 Registration fees; penalties; taxes; distribution

A. Monies received from the registration fees collected pursuant to this article shall be transmitted to the state treasurer, pursuant to sections 35-146 and 35-147, for distribution as follows:

1. 50 percent in the state general fund.

2. 35 percent in the state aviation fund established by section 28-8202 for use in the construction, development and improvement of airports.

3. 9.5 percent to counties in the proportion that the population of each county bears to the total population of this state.

4. 5.5 percent to incorporated cities and towns in the proportion that the population of each city or town bears to the total population of this state. Monies distributed pursuant to this paragraph may be used by the city or town for any purpose permitted by law.

B. Monies received from civil penalties collected pursuant to this article shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

C. Not later than the fifteenth day of each month, the department shall transmit monies received from the taxes imposed under this article to the state treasurer who shall deposit the monies pursuant to subsection A of this section.

§ 28-8346 Filing by mail; date of filing

A. On receipt of any notice, affidavit, application, registration or other document that must be filed with the department pursuant to this article after the date on which the document is required to be filed and received, the department shall treat the document as if it had been received on the required date if both:

1. It is transmitted through the United States mail.

2. The envelope in which the document is enclosed has a post office cancellation mark dated on or before the required date.

B. If the sender disputes the dates contained on the mark or if a mark does not appear or is not legible, the mailing date may be established by competent evidence introduced by the sender.

§ 28-8347 Civil penalties

The director may impose a civil penalty against a person required to register an aircraft under this article as follows:

1. In an amount of not more than five hundred dollars against a person who wilfully makes or gives under oath or affirmation a false statement regarding aircraft owned by, leased by or under the control of the person.

2. By assessment of twice the value of the license tax imposed on the aircraft for that year against a person who wilfully conceals, removes, transfers or misrepresents the ownership of the aircraft by the owner or agent of the owner with the purpose of evading taxation.

3. In an amount of not more than two hundred dollars against a person who either:

(a) Gives the registrar or deputy registrar a false name.

(b) Fails or refuses to give the person's name or a list of aircraft owned by, leased by or under the control of the person.

(c) Refuses to swear or affirm to the list.

4. If a statement is required to be made for imposing an assessment or tax, in an amount of not more than two hundred dollars against a person who wilfully makes an oral or written false statement that is not made under oath.

Article 5 Aircraft Dealers

§ 28-8381 Definition of aircraft dealer

In this article, unless the context otherwise requires, "aircraft dealer" means a person who is either:

1. Engaged in the business of buying, selling or exchanging aircraft.

2. Offering to assist another person with the purchase, sale or exchange of an aircraft for compensation.

§ 28-8382 License requirement; application; renewal; license tax; liability

A. A person shall not act as an aircraft dealer without first obtaining a license from the director that authorizes the person to engage in the business of an aircraft dealer.

B. A person shall apply for a license on forms prescribed or authorized by the director. The person shall submit with the application any required documents and the bond or cash deposit prescribed by section 28-8384. On approval of the application the director shall issue the license.

C. A license issued to an aircraft dealer is valid for one year and only for the person in whose name it is issued. The aircraft dealer:

1. Shall display the license conspicuously in the principal place of business of the aircraft dealer.

2. Shall annually renew the license.

3. May not assign the license.

D. If an aircraft dealer changes the dealer's place of business, the dealer shall notify the director in writing within ten days after the change.

E. In addition to any other penalties provided by statute, a person who acts as an aircraft dealer without first obtaining a license is liable for both:

1. The license tax imposed by section 28-8335 on aircraft owned by the person or held by the person on consignment for sale or exchange.

2. Any transaction privilege tax or similar excise tax on the sale of any aircraft sold, exchanged or brokered by the person that is not reported and paid as required by law.

§ 28-8383 Aircraft dealer duties

A. An aircraft dealer shall both:

1. Obtain a tax privilege license from this state.

2. Notify the department within ten days after the purchase or sale of an aircraft or after accepting an aircraft on consignment and file this notification whether or not the aircraft dealer takes title to the aircraft. If the notification is not filed in a timely manner, the aircraft is subject to the license tax imposed by section 28-8335.

B. An aircraft purchased by a dealer for resale or exchange may be flown only for the purpose of demonstrating it to a prospective buyer. Any other use of the aircraft subjects the aircraft to the license tax prescribed by section 28-8335. The aircraft dealer shall notify the department and register the aircraft within fifteen days after any other use of the aircraft occurs.

§ 28-8384 Bond or cash deposit

A. The aircraft dealer shall file with the department a continuous corporate surety bond for the benefit of this state or a cash deposit as prescribed in section 35-155 in the sum of ten thousand dollars that is conditioned on the faithful performance of all sales contracts or agreements and that guarantees payment of all outstanding taxes and fees.

B. The surety of this bond may cancel the bond on giving notice in writing to the department and the aircraft dealer sixty days before the cancellation date. After cancellation the surety is relieved of liability for any breach of conditions occurring after the cancellation date.

C. If a surety has any cause to cancel the bond of an aircraft dealer and gives notice of the cancellation, the department shall immediately notify the aircraft dealer by certified mail addressed to the last known address of the aircraft dealer that the aircraft dealer shall discontinue sales until such time as a new bond or cash deposit meeting the qualifications of this section is filed with the department.

D. This section does not apply to aircraft dealers engaged primarily in the sale of new or used lighter-than-air aircraft. For the purposes of this subsection, "lighter-than-air aircraft" means an aircraft that can rise and remain suspended by using contained gas whose molecular weight is less than the molecular weight of the air displaced by the gas.

§ 28-8385 Records

A. An aircraft dealer shall make and retain for three years records that the director may prescribe as being reasonably necessary to substantiate the reports required by this article.

B. The records may include copies of inventories, receipts or consignment contracts.

C. The director may inspect and copy these reports during normal business hours.

§ 28-8386 Violation; classification

A person is guilty of a class 6 felony if the person either:

1. Acts as an aircraft dealer without obtaining an aircraft dealer's license.

2. Knowingly fails to give the notification prescribed by section 28-8383, subsection A, paragraph 2.

Article 6 Airports in General

§ 28-8411 Authority of cities, towns and counties; limitation

A. The governing body of a city or town or the board of supervisors of a county may:

1. Acquire, establish, construct, own, control, lease, equip, improve, maintain, operate and regulate airports for the use of aircraft within or outside the limits of the city, town or county.

2. For the purpose described in paragraph 1 of this subsection, use property that is suitable and that is or may hereafter be owned or controlled by the city, town or county.

B. This section does not:

1. Authorize the governing body of a city or town or the board of supervisors of a county to restrict or limit the length or width of an airstrip or runway used for the landing and takeoff of aircraft, and any such restriction or limitation is void.

2. Affect the zoning authority of a county, city or town pursuant to other provisions of law.

§ 28-8412 Airports; public purpose

Lands that are acquired, owned, controlled or occupied by the department, in the operation and maintenance of the Grand Canyon national park airport, or a city, town or county for the purposes prescribed in section 28-8411 are for a public purpose and for a public necessity.

§ 28-8413 Acceptance by state, cities, towns or counties of federal or other aid

A. This state or a county, city or town may:

1. Accept and receive federal and other monies, either public or private, for the acquisition, construction, enlargement, improvement, maintenance, equipment or operation of airports, other air navigation facilities and sites for airports and other navigational facilities.

2. Comply with laws and regulations of the United States for the expenditure of federal monies on airports and air navigation facilities.

B. The governing body of a city or town or the board of supervisors of a county may:

1. Designate the department as its agent to:

(a) Accept and receive federal monies in its behalf for airport and other air navigation facility purposes.

(b) Contract for acquisition, construction, enlargement, improvement, maintenance, equipment or operation of the airports or other air navigation facilities.

2. Enter into an agreement with the authority prescribing the terms and conditions of the agency prescribed in paragraph 1 of this subsection in accordance with federal laws and regulations and applicable laws of this state.

C. Monies paid by the United States shall be paid to the city, town or county under the terms and conditions that are imposed by the United States in making the grant.

D. Contracts for acquisition, construction, enlargement, improvement, maintenance, equipment or operation of airports or other air navigation facilities that are made by the state, county, city or town itself or that are made through the department:

1. Shall be made pursuant to the laws governing the making of like contracts.

2. If the acquisition, construction, improvement, enlargement, maintenance, equipment or operation is financed wholly or partly with federal monies, may be let in the manner prescribed by the federal authorities acting under the laws and regulations of the United States, notwithstanding any state law.

§ 28-8414 City and town airport disposal

By resolution, the governing body of a city or town:

1. May sell, lease and dispose of an airport acquired under this article.

2. If an airport acquired under this article is sold, leased or disposed of to the county in which the airport is located, to this state or to the United States or any of its agencies, may sell, lease or dispose of the airport for a nominal consideration without advertising and without following the procedures prescribed by sections 9-402 and 9-403.

§ 28-8415 Real property interests; airport purposes

A. The department, in the operation and maintenance of the Grand Canyon national park airport, or a city, town or county may accept and hold real property or any interest in the property by gift, trust or purchase or any other manner for the purpose of establishing, constructing, operating or maintaining airports or for uses incidental to these purposes, subject to terms and agreements of the governing body.

B. Real property or any interest in the property held by the department in the operation and maintenance of the Grand Canyon national park airport shall be held in the name of this state.

§ 28-8416 Private property acquisition; airport purposes

A. A city, town or county that acquires private property for an airport shall acquire the property by purchase, if the city, town or county can agree with the owner on the terms of purchase.

B. If unable to agree, the city, town or county may acquire the property by condemnation in the manner provided by law authorizing cities, towns and counties to acquire real property for public purposes other than street purposes, or if there is no such law, the city, town or county may acquire the property in the manner provided by general law for condemnation of private property.

§ 28-8417 Payment for real property; bonds

The purchase price for real property acquired for an airport may be paid from either:

1. Monies available for the purchase.

2. Wholly or partially from proceeds of the sale of bonds of the city, town or county as the governing body determines, subject to the adoption of a proposal for and the approval of the sale of bonds at an election and in the manner provided for the authorization and issuance of bonds for public purposes generally.

§ 28-8418 Airport construction and operation; charge

A. The governing body of a city or town or the board of supervisors of a county that has established an airport and that has acquired, leased or set apart real property for an airport may either:

1. Construct, improve, equip, maintain and operate it.

2. Vest jurisdiction for the construction, improvement, equipment, maintenance and operation of the airport in a suitable officer, board or body of the city, town or county.

B. Expenses of construction, improvement, equipment, maintenance and operation are a city, town or county charge.

C. A city, town or county to which this article applies may annually appropriate and cause to be raised by taxation monies sufficient to carry out this article.

§ 28-8419 Airport rules, fees and charges; limitation

A. The department, in the operation and maintenance of the Grand Canyon national park airport, and the governing body of a city or town or the board of supervisors of a county may adopt rules and establish fees or charges for use of airport facilities.

B. The governing body of a city or town or the board of supervisors of a county may authorize an officer, board or body of the city, town or county to adopt rules and establish fees and charges, subject to approval by the governing body before the fees and charges are effective.

C. This section does not:

1. Authorize the governing body of a city or town or the board of supervisors of a county to restrict or limit the length or width of an airstrip or runway used for the landing and takeoff of aircraft, and any such restriction or limitation is void.

2. Affect the zoning authority of counties, cities or towns pursuant to other provisions of law.

§ 28-8420 Agreements; joint airport operations

The department, in the operation and maintenance of the Grand Canyon national park airport, or a city, town or county may enter into agreements on terms the director or the governing body deems advisable with agencies of the United States or with a person, firm or corporation engaged in the air transportation industry for the establishment, construction, operation or maintenance of airports and incidental uses either by the department, by the city, town or county or by the other contracting party.

§ 28-8421 Joint exercise of powers

The powers, rights and authority granted by this article to a city, town or county may be exercised by either:

1. Two or more cities, towns or counties.

2. A joint powers airport authority formed pursuant to article 8 of this chapter, if in connection with the closing of a military facility.

3. This state and a city, town or county acting jointly, either within or outside the territorial limits of the city, town or county.

4. Either within or outside this state, by this state or by this state and a city, town or county of this state, acting jointly with another state or with another state and a city, town or county in such state if the laws of the other state permit the joint action.

§ 28-8422 Adjoining state monies for airports

A. This state or a county, city or town may spend monies received from an adjoining state for the purpose of enlarging, improving, maintaining, operating or equipping an existing airport in this state.

B. The department may enter into an agreement with an adjoining state for the acceptance, receipt and expenditure by the state, county, city or town of monies received from the adjoining state and for the joint exercise of power in the enlargement, improvement, maintenance, operation or equipment of an airport.

C. Monies received from an adjoining state shall be paid to the state, county, city or town under terms and conditions imposed by the laws of the adjoining state and of this state and by an agreement authorized by this section. An agreement made with an adjoining state under this section shall be submitted to the attorney general who shall determine whether the agreement is in proper form and is within the powers and authority of the laws of this state.

D. An agreement under this section does not relieve the state, county, city or town of any obligation or responsibility imposed on it by law.

E. The governing body of a city or town or board of supervisors of a county may designate the department as its agent to accept and receive monies pursuant to this section in its behalf and to enter into an agreement with an adjoining state on its behalf pursuant to this section.

§ 28-8423 Airport land lease; nonprofit corporation

A. If the department, in the operation and maintenance of the Grand Canyon national park airport, or if a city, town or county has leased or leases land owned by it to a nonprofit corporation for airport or air terminal purposes pursuant to a lease agreement that provides that title to all buildings, structures and additions made or added to the leased premises by the nonprofit corporation vests in the state, city, town or county in the manner and subject to the restrictions contained in the agreement, the agreement as it exists or as it may be amended, renewed or extended is binding and effective pursuant to its terms.

B. An amendment, renewal or extension to the agreement is binding and effective if the agreement complies with section 28-8425, subsection A, paragraph 1 whether or not:

1. It resulted or results in a renewal or extension of the original term in excess of twenty-five years.

2. Any bidding, notice or other requirements of section 28-8425 have or have not been met.

C. If a lease between the department and a nonprofit corporation for the operation and maintenance of the Grand Canyon national park airport is terminated, the department may spend any airport revenues, including both those unexpended and unencumbered revenues returned by the lessee and those revenues received after the termination of the lease for the operation of the airport, until the airport is leased to another nonprofit corporation or for the remainder of the then current budget cycle, whichever occurs first.

§ 28-8424 Nonprofit corporation lessees; status; authority; exemptions

A. A nonprofit corporation that is a lessee as provided in section 28-8423:

1. Is a validly organized and existing body politic and corporate exercising its powers for the benefit of the people, for the improvement of the people's health and welfare and for the increase of the people's traffic and prosperity.

2. Is engaged in a public purpose essential to transportation and communication.

3. Performs an essential governmental function as an agency or instrumentality of the city, town, county or state.

4. Is exempt from property taxation by this state or an agency of this state.

5. Possesses and may exercise police powers and other governmental powers on the terms, conditions, limitations, restrictions and agreements provided in the lease agreements.

6. May issue bonds, incur obligations and pledge its revenues as security for the payment of bonds and obligations for airport and air terminal purposes to the extent provided by the lease agreement as it exists or as it may be amended, without regard to any statutory limitation of indebtedness of corporations having authorized capital stock.

B. The following do not apply to a nonprofit corporation that leases the Grand Canyon national park airport as provided in section 28-8423:

1. Chapter 20, article 2 of this title.

2. Title 33, chapter 7, article 6.

3. Title 41, chapter 4, article 5 and 6.

4. Title 41, chapter 6.

5. Title 41, chapter 23.

§ 28-8425 Lease authority; airport or air terminal purposes

A. The department, in the operation and maintenance of the Grand Canyon national park airport, or a city, town or county may lease land owned by it or under its control to a person, partnership, association or corporation for airport or air terminal purposes pursuant to a lease agreement that:

1. Provides that title to all buildings, structures and improvements added to the leased premises by the lessee vests in the department, city, town or county in the manner and subject to the restrictions contained in the lease.

2. As it exists or as it may be amended, is declared to be binding and effective pursuant to its terms.

3. Is for a term of not more than fifty years and may contain an option to renew the lease for an additional period of not more than fifty years.

4. Is let to the highest and best bidder.

B. During the lease period, the department or a city or town with a population of less than forty thousand persons as determined by the most recent United States decennial census or the most recent special census as described in section 28-6532 or a county may extend the existing lease for airport or airport terminal purposes with a person, partnership, association, corporation or political subdivision for an additional period of not more than fifty years after notice and a public hearing. The lease and any extensions may not cumulatively exceed the maximum term allowed under subsection A of this section. The department or a city, town or county shall:

1. Publish a notice of intent to consider an extension of the lease twice in a daily or weekly newspaper of general circulation in the county. The notice shall contain the name of the lessee, a description of the leased property, the current expiration date of the lease, the amount of time the lease is proposed to be extended and the date, time and place of the public hearing on the extension request.

2. Publish the first notice not more than thirty days before the date set for the public hearing.

3. Post a copy of the notice of the intent to extend the lease on the leasehold site and at five public places in the county, including on the airport or airport terminal property and on the governing body's website.

4. Hold a public hearing on the extension request.

5. Grant the extension of an existing lease only if the department or a city, town or county determines that the extension request is in the best interest of the state, city, town or county and on a majority vote of the governing body acting on the request for an extension.

6. Grant a second and any subsequent extension request pursuant to this subsection only on the affirmative vote of at least two-thirds of the governing body that is acting on the request for an extension. The reimbursement to the city, town or county for the lease extension executed under this subsection shall not be less than the appraised rental value of the real property, except that the city, town or county may consider any capital improvements by the lessee in determining the final reimbursement rate of the lease.

C. A notice of intent to lease land under this section shall be advertised twice in a daily or weekly newspaper of general circulation in the county. The first notice shall be published at least thirty days but not more than sixty days before the date set for the submission of bids. The department or a city, town or county may also publish the notice in any other newspaper that the department or city, town or county determines appropriate.

D. This section does not limit the application of section 28-8423.

E. This section does not apply to a joint powers airport authority formed pursuant to article 8 of this chapter.

§ 28-8426 Airport police; powers; qualifications

A. The governing body of a public airport operating pursuant to sections 28-8423 and 28-8424 may appoint one or more persons to be designated by the airport as airport police officers to aid and supplement the law enforcement agencies of this state in the protection of persons and property. While engaged in the conduct of this employment, an airport police officer possesses and shall exercise law enforcement powers of peace officers in this state.

B. A person appointed as an airport police officer under this section shall have the minimum qualifications established by the Arizona peace officer standards and training board for peace officers and police officers pursuant to section 41-1822. The airport shall file with the Arizona peace officer standards and training board the name of each airport police officer on the date of the police officer's appointment.

C. If the appointee meets the minimum qualifications established by the Arizona peace officer standards and training board, the Arizona peace officer standards and training board shall issue the appointee a certificate of authority to act as a peace officer. The director of the department of public safety may revoke a certificate for good cause shown.

§ 28-8427 Police aides

A. Whether or not airport police officers have been appointed pursuant to section 28-8426, the governing body may appoint unarmed airport police aides who are employed by the governing body.

B. The police aides:

1. Are authorized to enforce ordinances regulating the standing or parking of vehicles.

2. May commence an action or proceeding before a court having jurisdiction for any violation of the ordinances described in paragraph 1.

§ 28-8428 Liability; airport police and aides

A. The governing body of each airport appointing an airport police officer or airport police aide is liable for any and all acts of the airport police officer or airport police aide that are within the scope of the officer's or aide's employment.

B. This state or any political subdivision is not liable for any act or failure to act by an airport police officer or airport police aide, unless this state or a political subdivision is the governing body of the airport.

Article 7 Airport Zoning and Regulation

§ 28-8461 Definitions

In this article, unless the context otherwise requires:

1. "Accident potential zone one" means an area three thousand feet wide by five thousand feet long that starts at the end of each clear zone and that is centered and measured on the extended runway centerline, terminating eight thousand feet from the end of each runway and, for an ancillary military facility described in paragraph 7 of this section, includes an area delineated as accident potential zone one in the map described in paragraph 7 of this section.

2. "Accident potential zone two" means an area three thousand feet wide by seven thousand feet long that starts at the end of each accident potential zone one and that is centered and measured on the extended runway centerline, terminating fifteen thousand feet from the end of each runway, except that, for Luke air force base, accident potential zone two extends thirty thousand feet southwest from the end of each runway and, for an ancillary military facility described in paragraph 7 of this section, includes an area delineated as accident potential zone two in the map described in paragraph 7 of this section.

3. "Airport" means an area of land or water that is designed and set aside for the landing and taking off of aircraft and that is utilized or to be utilized in the interest of the public for those purposes.

4. "Airport hazard" means a structure, tree or use of land that obstructs the air space required for flight of aircraft in taking off or landing at an airport or that is otherwise hazardous to aircraft taking off or landing.

5. "Airport hazard area" means an area of land or water on which an airport hazard might be established if not prevented as provided in this article.

6. "Airstrip" means a strip of ground that is artificially or naturally surfaced and that is designed and used at an airport or landing field for the landing and takeoff of aircraft.

7. "Ancillary military facility" means:

(a) For political subdivisions described in paragraph 9, subdivision (a) of this section, the military auxiliary airfield that is identified on the map that is designated as Luke air force base auxiliary airfield #1, that is dated March 1, 2004 and that is on file in printed format at the state land department on the effective date of this amendment to this section pursuant to section 37-102.

(b) For Luke air force base in Maricopa county, the military auxiliary field that is located in the town of Gila Bend, that is used to train specific military aircraft maneuvers or to perform a specific military airport function, that may or may not have a paved runway from which aircraft may or may not land, that is recognized by the military airport and political subdivisions in Maricopa county or the report of a cooperative land use planning effort among affected political subdivisions and the military airport in Maricopa county and that is identified on a map that is prepared by the state land department and kept on file with the state land department and the state real estate department pursuant to section 37-102.

(c) For Yuma marine corps air station in Yuma county, the military auxiliary field that is recognized by the military airport and political subdivisions in Yuma County or the report of a cooperative land use planning effort among affected political subdivisions and the military airport in Yuma county and that is identified on a map that is prepared by the state land department and kept on file with the state land department and the state real estate department pursuant to section 37-102.

8. "Clear zone" means an area three thousand feet long measured along the extended runway centerline beginning at the end of all main military runways and three thousand feet wide centered on and measured at right angles to the extended runway centerline and, for an ancillary military facility described in paragraph 7 of this section, includes an area delineated as a clear zone in the map described in paragraph 7 of this section.

9. "High noise or accident potential zone" means any property located in the following zones:

(a) For Luke air force base in Maricopa county, within the 1988 noise contours developed and recognized by the regional planning agency in that county that includes the arrival and departure corridor that is the accident potential zone one and accident potential zone two plus the land area described as follows: starting two hundred feet from the south end of the westernmost runway at a width of one thousand five hundred feet west and two thousand five hundred feet east, measured perpendicular to the centerline of the runway, and extending southwesterly parallel to the runway for a distance of thirty thousand feet.

(b) For Davis-Monthan air force base in Pima county, the area southeast of the runway within the noise contours, accident potential zone one and accident potential zone two as established by the most recent air installation compatible use zone report issued by the United States department of defense or the zones established in the compatible land use plan in the joint land use study completed in February 2004.

(c) For Yuma marine corps air station and Laguna army airfield in Yuma county and Libby army airfield in Cochise county, within the noise contours established by the most recent air installation compatible use zone report recognized by the military airport and political subdivisions in that county or the report of a cooperative land use planning effort among affected political subdivisions and the military airport recognized by the military airport and political subdivisions in that county, including the arrival and departure corridor that is the accident potential zone one and accident potential zone two plus the land area described as follows: starting two hundred feet from the end points of the main runways and at a width of three thousand feet and symmetrical about a centerline between the runways extending outward to a point thirty thousand feet from the point of beginning. The outer width is seventeen thousand five hundred feet.

(d) For the ancillary military facility described in paragraph 7, subdivision (a) of this section, the land area inside the F-16 noise contour lines and the arrival and departure corridors designated as the accident potential zone one and the accident potential zone two on the map described in paragraph 7, subdivision (a) of this section.

(e) For the ancillary military facilities described in paragraph 7, subdivisions (b) and (c) of this section, the land areas designated as the high noise or accident potential zones and the arrival and departure corridors designated as the accident potential zone one and the accident potential zone two on the map of each ancillary military facility described in paragraph 7, subdivisions (b) and (c) of this section.

10. "Military airport" means an airport that is operated by an armed force of the United States and that is primarily used for military fixed wing aircraft operations, excluding a runway or airstrip that is not immediately adjacent to facilities primarily used for operational control, maintenance and permanent parking of aircraft.

11. "Military training route" means a low level military route that allows department of defense aircraft to conduct flights that may be as low as one hundred feet above the ground at speeds in excess of two hundred fifty knots indicated air speed as delineated in the military training route map pursuant to section 37-102.

12. "Occupied building" means any building where people live, work or are otherwise received.

13. "Person" means an individual, firm, partnership, corporation, company, association, joint stock association or body politic, including any trustee, receiver, assignee or other representative of a trustee, receiver or assignee.

14. "Political subdivision" means a city, town or county and includes a school district.

15. "Runway" means an artificially surfaced strip of ground that is designed and used at an airport for the landing and takeoff of aircraft.

16. "School" means any public institution established for the purposes of offering instruction to pupils in programs for preschool children with disabilities, kindergarten programs or any combination of grades one through twelve.

17. "School district" means a political subdivision of this state with geographic boundaries organized for the purpose of the administration, support and maintenance of the public schools or an accommodation school.

18. "School district development plan" means any proposal to build or expand a school but does not include repairing, maintaining or remodeling an existing school.

19. "Structure" means an object that is constructed or installed by a human including a building, tower, smokestack or overhead transmission line.

20. "Territory in the vicinity" means any property located in the following zones:

(a) For Luke air force base in Maricopa county, the zone is ten miles to the north, south and west and four miles to the east parallel from the center of the main runway of a military airport.

(b) For Davis-Monthan air force base in Pima county, the zone is five miles to the northwest along a line extending from the end of the northwest runway, one and one-half miles to the southwest, six and one-half miles to the northeast and perpendicular to the runway centerline and ten miles to the southeast along a line extending from the end of the southeast runway of a military airport.

(c) For Yuma marine corps air station and Laguna army airfield in Yuma county and Libby army airfield in Cochise county, the zone is five miles to the north, south and west and ten miles to the east of the center of the main runway of a military airport.

(d) For an ancillary military facility described in paragraph 7, subdivision (a) of this section, the land area designated as the territory in the vicinity on the map described in paragraph 7, subdivision (a) of this section.

(e) For the ancillary military facilities described in paragraph 7, subdivisions (b) and (c) of this section, the land areas designated as the territory in the vicinity on the map of each ancillary military facility described in paragraph 7, subdivisions (b) and (c) of this section.

21. "Tree" means an object of natural growth.

§ 28-8462 Airport hazard; public nuisance; prevention and elimination

A. It is declared that:

1. The creation or establishment of an airport hazard is a public nuisance and a public injury to the community served by an airport.

2. It is necessary in the interest of the public health, public safety and general welfare that the creation or establishment of an airport hazard be prevented.

3. Prevention of an airport hazard should be accomplished to the extent legally possible by exercise of the police power without compensation.

B. The prevention of the creation or establishment of an airport hazard and the elimination, removal, alteration, mitigation or marking and lighting of an existing airport hazard are public purposes for which a political subdivision may raise and spend public monies and acquire land or interests in land.

§ 28-8463 Acquisition of facilities or nonconforming property; exception

A. If it is desired to remove, lower or otherwise terminate a nonconforming structure or use, if the approach protection necessary cannot be accomplished by airport zoning regulations under this article because of constitutional limitations or if it appears advisable that the necessary approach protection be provided by acquisition of property rights rather than by airport zoning regulations, the political subdivision within which the property or nonconforming use is located or the political subdivision owning the airport or served by it may acquire by purchase, grant or condemnation in the manner provided by law under which political subdivisions are authorized to acquire real property for public purposes the air right, navigation easement or other estate or interest in the property or nonconforming structure or use in question as necessary to fulfill the purposes of this article.

B. Land owned or held for use for and in connection with the transportation of United States mail and transportation of property in interstate commerce and all structures on the land are not subject to this article.

§ 28-8464 Political subdivisions; airport zoning regulations

To prevent an airport hazard, a political subdivision that has an airport hazard area within its territorial limits may adopt, administer and enforce airport zoning regulations for the airport hazard area, under the police power, in the manner and on the conditions prescribed in this section. The airport zoning regulations may:

1. Divide the area into zones.

2. Specify land uses permitted within the zones.

3. Regulate and restrict the height to which a structure may be erected or tree allowed to grow.

§ 28-8465 Joint airport zoning board

A. If an airport is owned or controlled by a political subdivision and an airport hazard area is located outside its territorial limits, the political subdivision that owns or controls the airport and the political subdivision within which the airport hazard area is located may establish a joint airport zoning board by ordinance or resolution that has the same power to adopt, administer and enforce airport zoning regulations applicable to the airport hazard area as that vested by section 28-8464 in the political subdivision within which the area is located.

B. The joint board consists of two representatives appointed by each political subdivision participating in its establishment and a chairman selected by a majority of the members who are appointed.

§ 28-8466 Zoning regulations; relationships

A. If a political subdivision has adopted or adopts a comprehensive zoning ordinance regulating the height of buildings, an airport zoning regulation applicable to the same area or portion of the same area may be:

1. Incorporated in and made a part of the comprehensive zoning regulation.

2. Administered and enforced in connection with the comprehensive zoning regulation.

B. If there is a conflict between an airport zoning regulation adopted under this article and another regulation applicable to the same area, the more stringent limitation or requirement governs and prevails, whether either:

1. The conflict is with respect to the height of structures or trees, use of land or any other matter.

2. The other regulation was adopted by the political subdivision that adopted the airport zoning regulations or by some other political subdivision.

§ 28-8467 Airport zoning regulations; procedure; airport zoning commission

A. In adopting, amending and repealing an airport zoning regulation under this article, the political subdivision or joint airport zoning board shall follow the procedure prescribed by law for the adoption, amendment and repeal of comprehensive zoning regulations.

B. Before the initial zoning of an airport hazard area under this article, the political subdivision or joint airport zoning board shall appoint an airport zoning commission. If a city planning commission or comprehensive zoning commission exists, that commission may be appointed as the airport zoning commission.

C. The airport zoning commission shall:

1. Recommend the boundaries of zones to be established and the regulations to be adopted for the zones.

2. Make a preliminary report and hold public hearings on the preliminary report before submitting a final report.

D. The political subdivision or the joint airport zoning board shall not hold a public hearing or take other action until it has received the final report of the airport zoning commission.

§ 28-8468 Airport zoning regulations; criteria; limitations

A. Airport zoning regulations adopted under this article shall be reasonable and shall not impose a requirement or restriction that is not reasonably necessary to effectuate the purposes of this article.

B. In determining what regulations it may adopt, a political subdivision and joint airport zoning board shall include the following in its consideration:

1. The character of the flying operations expected to be conducted at the airport.

2. The nature of the terrain within the airport hazard area.

3. The character of the neighborhood.

4. The uses to which the property to be zoned will be put and is adaptable.

C. An airport zoning regulation adopted under this article shall not:

1. Require the removal, lowering or other change or alteration of a structure or tree that does not conform to the regulation when it is adopted or amended.

2. Otherwise interfere with the continuance of a nonconforming use, except as provided by section 28-8472.

§ 28-8469 Airport zoning regulations; administrative agency; duties

A. Airport zoning regulations adopted under this article shall provide for the administration and enforcement of the regulations by either:

1. An administrative agency that may be an agency established by the regulations.

2. Any official, board or other existing agency of the political subdivision adopting the regulations.

3. One of the political subdivisions that participated in the establishment of the joint airport zoning board adopting the regulations, if satisfactory to that political subdivision.

B. The administrative agency shall not be or include a member of the board of adjustment.

C. The duties of an administrative agency designated pursuant to this article:

1. Include hearing and deciding applications for permits under section 28-8470.

2. Do not include exercise of a power delegated in this article to the board of adjustment.

§ 28-8470 Permit

A. An airport zoning regulation adopted under this article may require that a permit be obtained before a new structure or use may be constructed, established, substantially changed, altered or repaired.

B. The airport zoning regulation provided in subsection A shall also provide that before a nonconforming structure or tree may be replaced, substantially altered, repaired, rebuilt, allowed to grow higher or replanted, a permit shall be obtained from the administrative agency authorized to administer and enforce the regulation authorizing the replacement, change or repair.

C. A permit shall not be granted that will allow the establishment or creation of an airport hazard or permit a nonconforming structure or tree or nonconforming use to be made or become higher or a greater hazard to air navigation than it was when the applicable regulation was adopted or than it is when an application for a permit is made.

D. Except as provided in this section, all applications for permits shall be granted.

§ 28-8471 Variance

A. A person who wants to erect or increase the height of a structure, permit the growth of a tree or otherwise use the person's property in violation of an airport zoning regulation adopted under this article may apply to the board of adjustment for a variance from the airport zoning regulation in question.

B. A variance shall be allowed if a literal application or enforcement of the regulations would result in practical difficulty or unnecessary hardship and the relief granted would not be contrary to the public interest, would do substantial justice and would be in accordance with the spirit of the regulation and this article.

C. A variance may be allowed subject to any reasonable conditions the board of adjustment deems necessary to fulfill the purposes of this article.

§ 28-8472 Permit; variance; condition; hazard indicators

In granting a permit or variance under section 28-8470 or 28-8471, the administrative agency or board of adjustment, if it deems the action advisable to fulfill the purposes of this article and reasonable in the circumstances, may place a condition on the permit or variance that requires the owner of the structure or tree in question to permit the political subdivision, at its own expense, to install, operate and maintain markers and lights on the structure or tree as necessary to indicate the presence of an airport hazard.

§ 28-8473 Airport zoning regulations; board of adjustment; powers; composition; proceedings

A. Airport zoning regulations adopted under this article shall provide for a board of adjustment that exercises the following powers:

1. Hear and decide appeals from an order, requirement, decision or determination made by the administrative agency in the enforcement of the airport zoning regulations as provided in section 28-8474.

2. Hear and decide special exceptions to the terms of the airport zoning regulations on which the board may be required to pass under the regulations.

3. Hear and decide specific variances under section 28-8471.

B. If a zoning board of appeals or adjustment exists, it may be appointed as the board of adjustment. If not, the board of adjustment consists of five members who are appointed for a term of three years by the authority adopting the regulations and who may be removed by the appointing authority for cause, on written charges and after a public hearing.

C. The concurring vote of a majority of the members of the board of adjustment is sufficient to:

1. Reverse an order, requirement, decision or determination of the administrative agency.

2. Decide in favor of the applicant on any matter on which it is required to act under the airport zoning regulations.

3. Make variations in the regulations.

D. The board shall:

1. Adopt regulations in accordance with provisions of the ordinance or resolution by which it is established.

2. Hold meetings at the call of the chairman and at other times as the board determines.

3. Have the chairman, or in the chairman's absence, the acting chairman, administer oaths and compel the attendance of witnesses.

4. Hold only public hearings.

5. Keep minutes of its proceedings showing the vote of each member on each question, or if a member is absent or fails to vote, indicating that fact.

6. Keep records of its examinations and other official actions as public records and file them in the office of the board.

§ 28-8474 Board of adjustment; appeals

A. A person who is aggrieved or a taxpayer who is affected by a decision of an administrative agency made in the administration of airport zoning regulations adopted under this article, or a governing body of a political subdivision or a joint airport zoning board that is of the opinion that a decision of the administrative agency is an improper application of airport zoning regulations, may appeal to the board of adjustment authorized to hear and decide appeals from the decisions of the administrative agency.

B. An appeal taken under this section shall be taken within a reasonable time as provided by the rules of the board and by filing a notice of appeal specifying the grounds of the appeal with the agency from which the appeal is taken and with the board. The agency from which the appeal is taken shall immediately transmit to the board all papers constituting the record on which the action appealed from was taken.

C. An appeal stays all proceedings unless the agency from which the appeal is taken certifies to the board, after the notice of appeal has been filed with it, that by reason of the facts stated in the certificate a stay would cause imminent peril to life or property. Proceedings shall not be stayed except by order of the board on notice to the agency from which the appeal is taken and for cause shown.

D. The board shall:

1. Fix a reasonable time for hearing appeals.

2. Give public notice and notice to the parties in interest.

3. Render a decision within a reasonable time.

E. On the hearing, a party may appear in person or by an agent or attorney.

F. In conformity with this article, the board may:

1. Reverse or affirm, wholly or partially, or modify the order, requirement, decision or determination that is appealed.

2. Make an appropriate order, requirement, decision or determination and for that purpose the board has all of the powers of the administrative agency from which the appeal is taken.

§ 28-8475 Appeals; superior court

A. A person who is aggrieved or a taxpayer who is affected by a decision of a board of adjustment, or a governing body of a political subdivision or a joint airport zoning board that is of the opinion that a decision of a board of adjustment is invalid, may file a verified petition in the superior court setting forth that the decision is invalid, wholly or partially, and specifying the grounds. The petition shall be filed within thirty days after the decision is filed in the office of the board.

B. On presentation of the petition, the court may allow a writ of certiorari directed to the board of adjustment to review the decision of the board. The allowance of the writ does not stay proceedings on the decision appealed from, but on application and on notice to the board and on good cause shown, the court may grant injunctive relief.

C. The board of adjustment is not required to return the original record acted on. It is sufficient for the board of adjustment to return certified or sworn copies of the record or parts of the record as may be called for by the writ. The return shall concisely set forth other facts that are material to show the grounds of the decision appealed from and shall be verified.

D. The court has exclusive jurisdiction to:

1. Affirm, modify or set aside the decision reviewed, wholly or partially.

2. If necessary, order further proceedings by the board of adjustment.

E. The court shall accept findings of fact by the board as conclusive if they are supported by substantial evidence. The court shall not consider an objection to a decision of the board unless the objection has been urged before the board, or if it was not urged, unless there are reasonable grounds for failure to do so.

F. The court shall not allow costs against the board of adjustment unless it appears to the court that the board of adjustment acted with gross negligence, in bad faith or with malice in making the decision that is appealed.

G. In a case in which the court holds that airport zoning regulations adopted under this article, although generally reasonable, interfere with the use or enjoyment of a particular structure or parcel of land to such an extent or are so onerous in their application to the structure or parcel of land as to constitute a taking of property in violation of the constitution of this state or the United States, the holding does not affect application of the regulations to other structures and parcels of land.

§ 28-8476 Violation; classification

A violation of this article or of a regulation, order or ruling made pursuant to this article is a class 3 misdemeanor. Each day a violation continues is a separate offense.

§ 28-8477 Remedies

A. The political subdivision or agency adopting airport zoning regulations under this article may institute in a court of competent jurisdiction an action to restrain, correct or abate a violation of this article, an airport zoning regulation adopted under this article or an order or ruling made in connection with the administration or enforcement of this article or the regulations.

B. The court shall award relief in an action brought under this section by injunction or otherwise as is proper to fully effectuate the purposes of this article and the regulations, orders and rulings made pursuant to this article.

§ 28-8478 Resolutions; ordinances; vehicle operations in airports

A. If an airport that is operated by a nonprofit corporation, as authorized by this article, is located outside the corporate limits of a city or town, the board of supervisors of the county in which the airport is located may adopt and enforce resolutions governing the parking and speed of motor vehicles, other than aircraft, at the airport. A resolution authorized by this subsection:

1. May restrict the operation of the motor vehicles to the portion of the airport designated by the nonprofit corporation for operation of the motor vehicles.

2. May restrict or prohibit the operation and parking of the motor vehicles on any part of the airport that is not designated by the nonprofit corporation for operation and parking.

3. Shall provide that the violation of the resolution is either a misdemeanor or a civil offense punishable as provided in the resolution.

B. If the airport is owned by a municipal corporation and leased to a nonprofit corporation, the legislative body of the municipal corporation shall concur in the enactment of the resolution authorized by subsection A by enacting an ordinance that provides that all violations of the resolution shall be enforced either:

1. Under the authority of the municipal corporation and prosecuted by the municipal corporation under procedures prescribed by the municipal corporation for prosecuting violations of similar ordinances.

2. By the authority of the county and prosecuted by the county in justice court.

C. If an airport that is operated by a nonprofit corporation, as authorized by this article, is located on land owned by a county, the governing body of the airport may adopt resolutions and enforce ordinances governing the parking and speed of motor vehicles, other than aircraft, at the airport. A resolution authorized by this subsection:

1. May restrict the operation of motor vehicles to the portion of the airport designated by the nonprofit corporation for operation of motor vehicles.

2. May restrict or prohibit the operation and parking of the motor vehicles on any part of the airport that is not designated by the nonprofit corporation for operation and parking.

3. Shall provide that the violation of the resolution is either a misdemeanor or a civil offense punishable as provided in the resolution.

D. The county board of supervisors shall concur in the adoption of the resolution authorized by subsection C by enacting the resolution as an ordinance. The county shall enforce all violations of the ordinance authorized by subsection C and prosecute the violations in justice court.

§ 28-8479 Regulation; limitation

A. This article does not authorize the governing body of a city or town or the board of supervisors of a county to restrict or limit the length or width of an airstrip or runway used for the landing and takeoff of aircraft. Any such restriction or limitation is void.

B. This section does not affect the zoning authority of counties, cities or towns pursuant to other provisions of law.

§ 28-8480 Military airport continuation; land acquisition

In addition to authority granted pursuant to other provisions of law, a political subdivision may acquire, by exchange, purchase, lease, donation, devise or condemnation, land or interests in land for the continued operation of a military airport or ancillary military facility.

§ 28-8481 Planning and zoning; military airport and ancillary military facility's operation compatibility; compliance review; penalty; definitions

A. A political subdivision that has territory in the vicinity of a military airport or ancillary military facility that includes property in a high noise or accident potential zone shall adopt comprehensive and general plans and school district development plans, if applicable, for property in the high noise or accident potential zone to assure development compatible with the high noise and accident potential generated by military airport and ancillary military facility operations that have or may have an adverse effect on public health and safety. Each political subdivision, excluding school districts, shall adopt and enforce zoning regulations for property in the high noise or accident potential zone to assure development compatible with the high noise and accident potential generated by military airport and ancillary military facility operations that have or may have an adverse effect on public health and safety.

B. A political subdivision that has territory in the vicinity of a military airport or ancillary military facility shall incorporate sound attenuation standards pursuant to section 28-8482 into any building code in existence on or adopted after July 1, 2001 or after July 1 of the year in which the land becomes territory in the vicinity of a military airport or ancillary military facility. This section does not affect or require the modification of any building permit issued before July 1, 2001 or before July 1 of the year in which the land becomes territory in the vicinity of a military airport or ancillary military facility.

C. A political subdivision that has territory in the vicinity of a military airport or ancillary military facility that includes property in a high noise or accident potential zone shall adopt, administer and enforce the zoning regulations or school district development plans authorized by subsection A of this section in the same manner as the comprehensive zoning ordinance or school district development plans of the political subdivision as provided by law, except that a variance shall not be granted without a specific finding that the purpose of military airport or ancillary military facility compatibility is preserved.

D. This section does not affect the existing authority of a political subdivision to plan and zone on the basis of noise or accident potential in the vicinity of an airport owned or controlled by the political subdivision or to adopt restrictions or limitations in addition to those required by this section applicable to territory in the vicinity of a military airport or ancillary military facility.

E. This section does not restrict, limit or modify, or authorize or require any political subdivision to restrict, limit or modify, the right of a landowner to undertake and complete development and use of any property under the terms and conditions of a development plan or school district development plan approved on or before December 31, 2000, or on or before December 31 of the year in which the development's property becomes territory in the vicinity of a military airport or ancillary military facility or pursuant to a written determination of compatibility issued by the military airport or ancillary military facility on or before December 31, 2004, by the political subdivision in whose territory or area of jurisdiction the property is located, except that the development must comply with the sound attenuation standards and specifications incorporated into any building code adopted pursuant to section 28-8482 by the political subdivision in whose territory or area of jurisdiction the development is located.

F. This section does not restrict, limit or modify, or authorize or require any political subdivision to restrict, limit or modify, the right of a landowner to undertake and complete development and use of any property located in a high noise or accident potential zone that is appurtenant to an ancillary military facility under the terms and conditions of a development plan or school district development plan approved on or before December 31, 2004 by the political subdivision in whose territory or area of jurisdiction the property is located or pursuant to a written determination of compatibility issued by the military airport or ancillary military facility on or before December 31, 2004, except that the development shall comply with the sound attenuation standards and specifications incorporated into any building code adopted pursuant to section 28-8482 by the political subdivision in whose territory or area of jurisdiction the development is located.

G. On or after July 1, 2001 or on or after December 31 of the year in which the property becomes territory in a high noise or accident potential zone, a political subdivision that has property in a high noise or accident potential zone shall notify the owner or owners of property in the high noise and accident potential zone of any additions or changes under this section to the general plan, comprehensive plan, zoning regulations or school district development plan of the political subdivision applicable to property in the high noise or accident potential zone. The political subdivision shall provide a notice of such additions or changes by publication as provided in section 9-462.04, subsection A or section 11-814, subsection D, including a statement that the property is located in a high noise or accident potential zone, at least thirty days before final approval of the addition to or change in the general plan, permitted land uses, zoning regulation or school district development plan and within thirty days following the final approval of such an addition to or change in the general plan, permitted land uses, zoning regulation or school district development plan.

H. Any property owner described in subsection G of this section shall notify potential purchasers of the property and any potential lessees or renters that the property is located in a high noise and accident potential zone and is subject to the requirements of this section.

I. If a political subdivision includes property in the high noise or accident potential zone of a military airport or ancillary military facility, the political subdivision shall send notice to the attorney general of any approval, adoption or readoption of, or major amendment to, the general or comprehensive plan that impacts property in the high noise or accident potential zone of a military airport or ancillary military facility within three business days after the approval, adoption or readoption. If the attorney general determines the approval, adoption or readoption of the general or comprehensive plan or the major amendment to the general or comprehensive plan is not in compliance with subsection J of this section, the attorney general shall notify the political subdivision by certified mail, return receipt requested, of the determination of noncompliance. Within thirty days after the receipt of a determination of noncompliance by the attorney general as prescribed by this section, the governing body of the political subdivision shall reconsider any approval, adoption or readoption of, or major amendment to, the general or comprehensive plan that impacts property in the high noise or accident potential zone of a military airport or ancillary military facility. If the governing body reaffirms a prior action subject to an attorney general's determination of noncompliance pursuant to this section, the attorney general may institute a civil action pursuant to subsection L of this section. If a political subdivision timely sends notice pursuant to this subsection and the attorney general fails to timely notify the political subdivision of a determination of noncompliance, the general or comprehensive plan or major amendment to the general or comprehensive plan shall be deemed to comply with subsection J of this section.

J. The attorney general shall determine compliance with this section in accordance with the following requirements applicable to zoning and development in a high noise or accident potential zone and to zoning and development in accident potential zone one and accident potential zone two. Compliance with respect to territory located in the arrival and departure corridor but outside the accident potential zone one, two and noise contour lines as described in section 28-8461, paragraph 9, subdivision (c) shall be determined in accordance with the requirements applicable to territory located in the 65-69 day-night sound level as listed below. Compliance with respect to the property described in section 28-8461, paragraph 9, subdivision (b) shall be determined in accordance with the compatible land use plan in the joint land use study completed in February 2004. If the political subdivision and the military airport mutually agree that an individual use is compatible and consistent with the high noise or accident potential of the military airport or ancillary military facility, as applicable, the use shall be deemed to comply with this subsection. Alternatively, for an individual use or a plan for development submitted to a military airport or ancillary military facility before December 31, 2004, this subsection does not preclude the military airport from determining that the individual use or plan for development is compatible and consistent with the high noise or accident potential zone of the military airport or ancillary military facility.

Day-night sound level in decibels

high noise or accident

potential zone (18)

Zoning and development in high

noise or accident potential

zone 65-69 70-74 75-79 80-84 85 or APZ APZ

over one two

Residential

Residential uses other than No(13) No(13) No(13) No(13) No No No

the residential uses

listed below

Single family residential Yes(9) Yes(10) Yes(11) No(13) No(13) No No(13)

that is the subject of

zoning approved on or

before December 31, 2000,

or on or before December 31

of the year in which the

property becomes territory

in the vicinity of a

military airport,

that permits one dwelling

unit per acre or less

Single family residential that Yes(9) Yes(10) Yes(11) Yes(12) No(13) No No(13)

that is the primary residence

for persons engaging in

agricultural use and

ancillary residential

buildings incident to the

primary agricultural use

Transportation, communications

and utilities

Railroad and rapid rail transit Yes Yes(5) Yes(6) Yes(7) No No Yes(15)

Highway and street right-of-way Yes Yes Yes Yes Yes Yes Yes

Motor vehicle parking Yes Yes Yes Yes Yes Yes(15) Yes(15)

Communications Yes Yes(2) Yes(3) No No Yes(15) Yes(16)

(noise sensitive)

Utilities Yes Yes Yes No No Yes(15) Yes(16)

Other transportation, Yes Yes(5) Yes(6) Yes(7) Yes(8) Yes(15) Yes(16)

communications and utilities

Commercial/retail trade

Wholesale trade Yes Yes(5) Yes(6) Yes(7) No No Yes

Building materials-retail Yes Yes(5) Yes(6) Yes(7) No No Yes

General merchandise-retail Yes Yes(1) Yes(2) No No No No

Food-retail Yes Yes(1) Yes(2) No No No No

Automotive and marine Yes Yes(5) Yes(6) No No No No/Yes(17)

Apparel and accessories-retail Yes Yes(1) Yes(2) No No No No

Eating and drinking places Yes Yes(1) Yes(2) No No No No

Furniture and home Yes Yes(1) Yes(2) No No No No/Yes(17)

furnishings-retail

Other retail trade Yes Yes(1) Yes(2) No No No No

Personal and business services

Finance, insurance and real estate Yes Yes(1) Yes(2) No No No Yes

Personal services Yes Yes(1) Yes(2) No No No Yes

Business services Yes Yes(1) Yes(2) No No No Yes

Repair services Yes Yes(5) Yes(6) Yes(7) No No Yes

Contract construction services Yes Yes(5) Yes(6) No No No Yes

Indoor recreation services Yes Yes(5) Yes(6) No No No Yes

Other services Yes Yes(5) Yes(6) No No No Yes

Industrial/manufacturing

Food and kindred products Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Textile mill products Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Apparel Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Lumber and wood products Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Furniture and fixtures Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Paper and allied products Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Printing and publishing Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Chemicals and allied products Yes Yes(5) Yes(6) Yes(7) No No No

Petroleum refining and Yes Yes(5) Yes(6) Yes(7) No No No

related industries

Rubber and miscellaneous plastic Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Stone, clay and glass products Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Primary metal industries Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Fabricated metal products Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Professional, scientific and Yes Yes(1) Yes(2) No No No No

ccontrolling instruments

Miscellaneous manufacturing Yes Yes(5) Yes(6) Yes(7) No No Yes(16)

Public and quasi-public

services

Government services Yes(1) Yes(2) Yes(2) No No No Yes(16)

Cultural activities, Yes(1) Yes(2) No No No No No

including churches

Medical and other health

services Yes(1) Yes(2) No No No No No

Cemeteries Yes(5) Yes(6) Yes(7) No No No Yes

Nonprofit organizations Yes(1) Yes(2) No No No No Yes

Correctional facilities Yes(1) Yes(2) Yes(3) Yes(4) No No Yes

Other public and quasi-public Yes(1) Yes(2) No No No No Yes(16)

services

Outdoor recreation

Playgrounds and neighborhood

parks Yes Yes No No No Yes(15) Yes

Community and regional Yes Yes No No No Yes(15) Yes

Nature exhibits Yes No No No No No No

Spectator sports, including

arenas Yes(14) Yes(14) No No No No No

Golf courses and riding stables Yes Yes(5) Yes(6) No No Yes(15) Yes

Water based recreational areas Yes Yes(5) Yes(6) No No No No

Resort and group camps Yes(1) Yes(2) No No No No No

Auditoriums and concert halls Yes(6) Yes(7) No No No No No

Outdoor amphitheaters and Yes(14) Yes(14) Yes(14) No No No No

music shells

Other outdoor recreation Yes Yes(14) Yes(14) No No No No

Resource production,

extraction and open space

Agriculture (except livestock) Yes(9) Yes(10) Yes(11) Yes(12) Yes(13)Yes(13) Yes(13)

Livestock farming and animal Yes(9) Yes(10) Yes(11) Yes(12) Yes(13)Yes(13) Yes(13)

breeding

Forestry activities Yes(9) Yes(10) Yes(13) Yes(13) Yes(13)No Yes

Fishing activities and Yes Yes No No No No No

related services

Mining activities Yes Yes Yes Yes Yes No Yes(16)

Permanent open space Yes Yes Yes Yes Yes Yes Yes

Water areas (not incidental to Yes Yes No No No No No

farming)

(1) Measures to achieve an outdoor to indoor noise reduction level of twenty-five decibels pursuant to an ordinance adopted under section 28-8482 must be incorporated into the design and construction of all buildings and the political subdivision must make an express finding, as part of approval, that use of noise reduction level criteria will not alleviate outdoor noise.

(2) Measures to achieve an outdoor to indoor noise reduction level of thirty decibels pursuant to an ordinance adopted under section 28-8482 must be incorporated into the design and construction of all buildings and the political subdivision must make an express finding, as part of approval, that use of noise reduction level criteria will not alleviate outdoor noise.

(3) Measures to achieve an outdoor to indoor noise reduction level of thirty-five decibels pursuant to an ordinance adopted under section 28-8482 must be incorporated into the design and construction of all buildings and the political subdivision must make an express finding, as part of the approval, that use of noise reduction level criteria will not alleviate outdoor noise.

(4) Measures to achieve an outdoor to indoor noise reduction level of forty decibels pursuant to an ordinance adopted under section 28-8482 must be incorporated into the design and construction of all buildings and the political subdivision must make an express finding, as part of the approval, that use of noise reduction level criteria will not alleviate outdoor noise.

(5) Measures to achieve an outdoor to indoor noise reduction level of twenty-five decibels must be incorporated into the design and construction of portions of buildings where the public is received, office areas, noise sensitive areas or where normal noise level is low.

(6) Measures to achieve an outdoor to indoor noise reduction level of thirty decibels must be incorporated into the design and construction of portions of buildings where the public is received, office areas, noise sensitive areas or where normal noise level is low.

(7) Measures to achieve an outdoor to indoor noise reduction level of thirty-five decibels must be incorporated into the design and construction of portions of buildings where the public is received, office areas, noise sensitive areas or where normal noise level is low.

(8) Measures to achieve an outdoor to indoor noise reduction level of forty decibels must be incorporated into the design and construction of portions of buildings where the public is received, office areas, noise sensitive areas or where normal noise level is low.

(9) Measures to achieve an outdoor to indoor noise reduction level of twenty-five decibels must be incorporated into the design and construction of new residential buildings or expansions of existing residential buildings.

(10) Measures to achieve an outdoor to indoor noise reduction level of thirty decibels must be incorporated into the design and construction of new residential buildings or expansions of existing residential buildings.

(11) Measures to achieve an outdoor to indoor noise reduction level of thirty-five decibels must be incorporated into the design and construction of new residential buildings or expansions of existing residential buildings.

(12) Measures to achieve an outdoor to indoor noise reduction level of forty decibels must be incorporated into the design and construction of new residential buildings or expansions of existing residential buildings.

(13) No new residential buildings or expansions of existing residential buildings are permitted.

(14) Compatible if special sound reinforcement systems are installed.

(15) No aboveground buildings or structures.

(16) No new buildings or improvements or expansion of nonagriculture buildings or improvements for uses that result in the release of any substance into the air that would impair visibility or otherwise interfere with operating aircraft, such as any of the following:

(a) Steam, dust and smoke.

(b) Direct or indirect reflective light emissions.

(c) Electrical emissions that would interfere with aircraft and air force communications or navigational aid systems or aircraft navigational equipment.

(d) The attraction of birds or waterfowl such as operation of sanitary landfills or maintenance of feeding stations.

(e) Explosives facilities or similar activities.

(17) If located in the extended portion of accident potential zone two in territory of a political subdivision described in section 28-8461, paragraph 9, subdivision (a).

(18) Uses not listed are presumed to not be compatible. If the political subdivision and the military airport mutually agree that an individual use is compatible and consistent with the high noise or accident potential of the military airport or ancillary military facility, the use shall be presumed to be compatible.

K. Pursuant to subsection I of this section, the attorney general shall notify a political subdivision by certified mail, return receipt requested, if the attorney general has probable cause to believe that the political subdivision has not complied with the requirements set forth in subsection J of this section. Nothing in this section shall authorize or permit a finding of probable cause of noncompliance with respect to property that is the subject of a development plan.

L. The following apply to enforcement actions brought under this section:

1. The attorney general may institute a civil action in the name of this state in the superior court in the county of the alleged violation against a political subdivision that is required to notify the attorney general pursuant to subsection I of this section to restrain, enjoin, correct or abate a violation of this section, to collect a civil penalty ordered pursuant to this section and to collect attorney fees and costs ordered pursuant to this section if the attorney general has probable cause to believe that an action to reaffirm an approval, adoption or readoption of, or major amendment to, the general or comprehensive plan made by a political subdivision is not in compliance with subsection J of this section.

2. If the attorney general institutes a civil action pursuant to subsection I of this section, the civil action shall be filed within thirty days after the action to reaffirm an approval, adoption or readoption of, or major amendment to, the general plan or comprehensive plan.

3. The court shall award reasonable attorney fees and other costs in favor of the prevailing party for any civil enforcement action brought under this section. If the attorney general prevails, monies awarded pursuant to this paragraph shall be retained by the attorney general and are continuously appropriated.

4. The court may assess civil penalties in favor of this state to be deposited in the state general fund. The political subdivision may be liable for a civil penalty of up to five hundred dollars for each day for the first ten days and up to five thousand dollars for each subsequent day up to a maximum of fifty thousand dollars.

M. A political subdivision that has territory in the vicinity of a military airport or ancillary military facility that includes property in a high noise or accident potential zone shall submit any proposed comprehensive or general plan amendments that are applicable to property within the high noise or accident potential zone to the attorney general at least fifteen days before the first public hearing required pursuant to section 9-461.06 or 11-805.

N. A political subdivision shall not permit or approve a division of land zoned for residential use that is in a high noise or accident potential zone of an ancillary military facility if the division would result in a lot, parcel or fractional interest being four acres or less unless the land division is part of a development plan or a development agreement approved before July 30, 2004 or is determined by the military airport or ancillary military facility to be compatible with its operations before December 31, 2004. A political subdivision may grant a waiver from this subsection.

O. For purposes of determining the fair market value of property located in a high noise or accident potential zone, or the development rights appurtenant to the property, for acquisition by an agency or instrumentality of the United States, this state or a political subdivision of this state, property located in a high noise or accident potential zone that is not the subject of a development plan under subsection E or F of this section shall be deemed to have zoning allowing at least one residential dwelling per acre.

P. For the purposes of this section:

1. "Development plan":

(a) Means a plan that is submitted to and approved by the governing body of the political subdivision pursuant to a zoning ordinance or regulation adopted pursuant to title 9, chapter 4, article 6.1 or title 11, chapter 6 and that describes with reasonable certainty the density and intensity of use for a specific parcel or parcels of property.

(b) Includes a planned community development plan, a planned area development plan, a planned unit development plan, a development plan that is the subject of a development agreement adopted pursuant to section 9-500.05 or 11-1101, a site plan, a subdivision plat or any other land use approval designation that is the subject of a zoning ordinance adopted pursuant to title 9, chapter 4, article 6.1 or title 11, chapter 6.

(c) Means a conceptual plan for development that generally depicts densities on a particular property that a military airport, as described in section 28-8461, paragraph 9, subdivision (a), deems is compatible with the operation of the ancillary military facility.

2. "Major amendment" means a substantial alteration of a political subdivision's land use mixture or balance as established in the political subdivision's existing general or comprehensive plan land use element.

§ 28-8482 Incorporation of sound attenuation standards in building codes

A. A political subdivision that includes territory in the vicinity of a military airport or ancillary military facility shall incorporate the sound attenuation standards and specifications prescribed in this section into any building code in existence on or adopted after December 31, 2001 or adopted on or after the date the land becomes territory in the vicinity of a military airport or ancillary military facility. These standards and specifications apply to new development and alterations for first occupancy that are the subject of building permits issued after December 31, 2001 or after December 31 of the year in which the land becomes territory in the vicinity of a military airport or ancillary military facility and that are located on property within the territory in the vicinity of a military airport or ancillary military facility and do not apply to new development and alterations that are located on property within corporate limits of a municipality but outside territory in the vicinity of a military airport or ancillary military facility.

B. Not later than December 31, 2001 or not later than December 31 of the year in which the land becomes territory in the vicinity of a military airport or ancillary military facility, a political subdivision that has territory in the vicinity of a military airport or ancillary military facility shall adopt an ordinance that requires a noise level reduction to be incorporated in the design and construction of any residential building or portions of buildings where the public is received, office areas and where normal noise level is low for first occupancy, including libraries, schools and churches, pursuant to building permits issued after December 31, 2001 in order to achieve a maximum interior noise level of forty-five decibels in areas within the noise contours described in section 28-8461, paragraph 9, subdivision (a), (b), (c) or (d), as applicable. In order to comply with this section, an ordinance shall require that all residential buildings in territory in the vicinity of a military airport or ancillary military facility but outside the noise contours as described in this section shall be constructed with a minimum of R18 exterior wall assembly, a minimum of R30 roof and ceiling assembly, dual-glazed windows and solid wood, foam-filled fiberglass or metal doors to the exterior or, if the specified building standards are not met, the political subdivision may approve, as an alternative, a certification by an architect or engineer registered pursuant to title 32, chapter 1 to achieve a maximum interior noise level of forty-five decibels at the time of final construction. A sound attenuation ordinance adopted by a political subdivision pursuant to this subsection shall not require a maximum interior noise level that is less than the maximum interior noise level required by this subsection.

C. The sound attenuation requirements of this section do not apply to ancillary buildings used in agricultural land use.

D. If the gross floor area of a structure or project is expanded by less than fifty per cent, the requirements of this section apply only to the area of expansion. If the gross floor area of a structure or project is expanded by fifty per cent or more, the requirements of this section apply to the entire structure, except for single family, mobile home, manufactured housing unit or duplex dwellings or any multifamily property used for residential purposes.

E. For the purposes of this section, political subdivision does not include a school district.

§ 28-8483 Registry of military airport flight operations; public inspection

The state real estate department and political subdivisions that have territory in the vicinity of a military airport shall request from each military airport in this state a registry of information including maps of military flight operations and a list of contact persons at each military airport who are knowledgeable about the impacts of military flight operations at the military airport. Each registry shall contain the information provided by the military airport, including any map prepared pursuant to section 28-8484, subsection B. The state real estate department and political subdivisions shall maintain the registry of information provided by the military airport and make the registry available to the public on request.

§ 28-8484 Military airport disclosure; residential property

A. Any public report issued after December 31, 2001 pursuant to section 32-2183 or 32-2195.03 applicable to property that is located within territory in the vicinity of a military airport shall include the following statements:

1. That the property is located within territory in the vicinity of a military airport.

2. If the state real estate department has been provided the registry of information described in section 28-8483, that the state real estate department maintains a registry of information, including the maps of military flight operations provided by the military airport, pursuant to section 28-8483 and, if provided to the department, the map prepared by the military airport pursuant to subsection B of this section.

3. If the state real estate department has been provided the registry of information described in section 28-8483, that the information is available to the public on request.

B. Each military airport may provide the state real estate department and each political subdivision with territory in the vicinity of the military airport with a map that is in electronic form and that is eight and one-half inches by eleven inches in size showing the exterior boundaries of each territory in the vicinity of a military airport and the exterior boundaries of each high noise or accident potential zone. The state real estate department shall work closely with each military airport and political subdivisions with territory in the vicinity of a military airport as necessary to create a map that is visually useful in determining whether property is located in or outside of a territory in the vicinity of a military airport or in or outside of a high noise or accident potential zone. If there are changes to the map, the military airport shall notify the state real estate department and political subdivisions of the changes and shall provide a new map in electronic form. If a new map is provided, the department and the political subdivisions shall include the map in the registry of information maintained pursuant to section 28-8483. The map shall be included in public reports issued pursuant to section 32-2183 or 32-2195.03, and the map shall be available to the public on request.

C. For any lot reservation or conditional sale that occurs before the issuance of a public report, the disclosure statements listed in subsection A of this section shall be included within the reservation document or conditional sales contract.

D. This section does not require the amendment or reissuance of any public report issued on or before December 31, 2001 or the amendment or reissuance of any reservation document or conditional sales contract accepted on or before December 31, 2001.

E. From and after December 31, 2006, a seller of residential real estate shall provide a written disclosure to the purchaser if the property is located in territory in the vicinity of a military airport or ancillary military facility as delineated on a map prepared by the state land department pursuant to section 37-102 prior to the transfer of title. This subsection does not require additional disclosure by a seller of residential real estate that has already provided the disclosure in a public report pursuant to section 32-2183 or 32-2195.05.

§ 28-8485 Airport influence areas; notice

A. After notice and hearing, this state or the governing body of a political subdivision that has established or operates an airport may designate as an airport influence area all property that is in the vicinity of the airport, that is currently exposed to aircraft noise and overflight and that either has a day-night average sound level of sixty-five decibels or higher or is within such geographical distance from an existing runway that exposes the area to aircraft noise and overflights as determined by the airport owner or operator.

B. If this state or the governing body of a political subdivision establishes an airport influence area, this state or the governing body shall prepare and file a record of the airport influence area in the office of the county recorder in each county that contains property in the airport influence area. The record shall be sufficient to notify owners or potential purchasers of property in the airport influence area that property in the area is currently subject to aircraft noise and aircraft overflights.

§ 28-8486 Public airport disclosure; definitions

A. The state real estate department shall have and make available to the public on request a map showing the exterior boundaries of each territory in the vicinity of a public airport. The map shall clearly set forth the boundaries on a street map. The state real estate department shall work closely with each public airport and affected local government as necessary to create a map that is visually useful in determining whether property is located in or outside of a territory in the vicinity of a public airport.

B. Each public airport shall record the map prepared pursuant to subsection A in the office of the county recorder in each county that contains property in a territory in the vicinity of the public airport. The recorded map shall be sufficient to notify owners and potential purchasers of property that the property is located in or outside of a territory in the vicinity of a public airport.

C. For the purposes of this section:

1. "Public airport" means an airport that is owned by a political subdivision of this state or that is otherwise open to the public.

2. "Territory in the vicinity of a public airport" means property that is within the traffic pattern airspace as defined by the federal aviation administration and includes property that experiences a day-night average sound level as follows:

(a) In counties with a population of more than five hundred thousand persons, sixty decibels or higher at airports where such an average sound level has been identified in either the airport master plan for the twenty year planning period or in a noise study prepared in accordance with airport noise compatibility planning, 14 Code of Federal Regulations part 150.

(b) In counties with a population of five hundred thousand persons or less, sixty-five decibels or higher at airports where such an average sound level has been identified in the airport master plan for the twenty year planning period.

Article 8 Joint Powers Airport Authority

§ 28-8521 Joint powers airport authority; agreement; board of directors

A. In connection with the closing of a military facility after 1990, two or more cities, towns, Indian tribes or counties may enter into an agreement to establish a joint powers airport authority. A board of directors shall operate and govern the airport authority. The board of directors is composed of persons appointed by the governing body of the cities, towns, Indian tribes or counties that are members of the airport authority.

B. The agreement pursuant to this section shall specify the following:

1. The property to be owned and operated by the airport authority.

2. The appointment of members to the board of directors by each member of the airport authority.

3. The voting method of the board of directors, including whether the board members will have weighted or equal voting.

4. The method for adoption of the airport authority's annual operating budget by the members of the airport authority and the proportion of the airport authority's annual operating budget to be provided by each member, including any adjustment to the proportion if a member withdraws from the airport authority or another city, town, Indian tribe or county subsequently joins the airport authority.

5. Termination of the airport authority and the disposal of property and indebtedness on the termination of the airport authority.

6. Procedures for withdrawals from and admissions to membership in the airport authority.

7. Amendments or modifications to the agreement.

8. The airport authority's fiscal year.

9. Other terms as the members of the airport authority deem necessary, appropriate or convenient.

C. The chairperson of the board of directors of the airport authority shall annually present a report of the activities of the airport authority to the house of representatives ways and means committee and the senate finance committee or their successor committees.

§ 28-8522 Joint powers airport authority classification

On its formation, the joint powers airport authority is all of the following:

1. A special purpose district for purposes of article IX, section 19, Constitution of Arizona.

2. A tax levying public improvement district for the purposes of article XIII, section 7, Constitution of Arizona.

3. A municipal corporation for all purposes, including the purposes of title 35, chapter 3, articles 3.2, 3.3, 4, 5 and 7.

§ 28-8523 Annual operating budget

A. Before June 1 or at an earlier time as may be specified in the agreement described in section 28-8521, the joint powers airport authority's board of directors shall recommend to the members of the airport authority an annual operating budget for the airport authority for the next fiscal year. Before the determination by the airport authority board of directors as to the amount of the budget allocation for each member that may require a levy of taxes, the airport authority board of directors shall take into account all revenues and fees of the airport and other monies legally available to fund the operations of the airport and airport authority.

B. The governing bodies of the airport authority's members, including any new members who are admitted pursuant to section 28-8526, shall approve and adopt, in the manner specified in the agreement described in section 28-8521, an operating budget for the airport authority before August 1 or at an earlier time as may be specified in the agreement described in section 28-8521.

§ 28-8524 Allocation of monies; sources; public hearing; reuse, development and capital improvement plans

A. Each member of the joint powers airport authority and any new member shall make a pro rata allocation of monies, as specified in the agreement described in section 28-8521, to the airport authority's operating budget from one or any combination of the following sources:

1. If the member is a city or town:

(a) An ad valorem tax levied by the governing body of the member within its jurisdiction.

(b) A transaction privilege tax levied by the governing body of the member within its jurisdiction.

2. If the member is a city, town or county:

(a) General monies of the member.

(b) Other monies legally available to the member.

B. The tax prescribed by subsection A of this section shall be designated as an airport authority tax. Any property tax levied pursuant to subsection A of this section shall be a secondary tax.

C. The governing body of each airport authority member shall hold a public hearing on both:

1. The question of whether to approve and adopt the annual operating budget of the airport authority.

2. The method of funding the member's annual budget allocation.

D. Notice of a public hearing held pursuant to this section shall be given in a newspaper of general circulation within the member's jurisdiction at least once a week for two weeks before the hearing.

E. On receipt of the recommendation of the airport authority board as to the budget allocation, each member shall consider the amount of monies legally available to it to fund its budget allocation before its determination of the amount of taxes it shall levy to meet its budget allocation.

F. The airport authority shall adopt and periodically amend a reuse and development plan and a capital improvements plan. Expenditures for or by the airport authority shall be both:

1. Consistent with the plans prescribed in this subsection.

2. Limited to those items that directly relate to or benefit the operation and development of the airport and the airport authority.

G. Any member of the airport authority that fails or refuses to approve and adopt the operating budget for the airport authority shall withdraw from membership in the airport authority as provided in section 28-8525. The remaining members and any new members of the airport authority are responsible for the total operating budget as adopted and shall make their allocation as prescribed in subsection A of this section.

§ 28-8525 Joint powers airport authority; withdrawal

A. If written notice to the members of the joint powers airport authority is given at least thirty days before an operating budget must be adopted, any member of the airport authority may withdraw from membership in the airport authority both:

1. For any reason specified in the agreement described in section 28-8521.

2. On final payment of its pro rata budget allocation for the airport authority's current fiscal year and its pro rata share of any outstanding obligations of the airport authority to which the withdrawing member has obligated itself.

B. Withdrawal from membership is effective on the date specified in the agreement described in section 28-8521, if any, but not later than the thirtieth day before an operating budget must be adopted.

C. Any obligations of the withdrawing member remain outstanding until fully paid and satisfied.

§ 28-8526 Joint powers airport authority; admission

A. On written request to the current members of the joint powers airport authority and on the approval, in the manner specified in the agreement described in section 28-8521, of the current members of the joint powers airport authority before the adoption of the airport authority's operating budget for the next fiscal year but not before the operating budget is recommended by the board of directors, a city, town, Indian tribe or county may be admitted to the airport authority.

B. Membership is effective on the receipt of the required approval.

§ 28-8527 Joint powers airport authority; powers

Acting through its board of directors, the joint powers airport authority may:

1. Own and operate property and facilities related to aviation, air navigation and aerospace.

2. Own property and facilities that are not related to aviation, air navigation and aerospace.

3. Enter into contracts, leases and development agreements, including intergovernmental agreements under title 11, chapter 7, article 3, to carry out the purposes of this article.

4. Acquire by any lawful means, including if authorized by the members of the airport authority the exercise of eminent domain in the names of its members, and maintain, encumber, lease and dispose of real and personal property and interests in property.

5. Prescribe rentals, user fees and other charges and enter into agreements with developers, contractors, tenants and others for use of facilities, products or services of the airport authority and use the revenues derived by the airport authority to carry out the purposes of this article.

6. Borrow money and issue revenue bonds and incur other financial obligations for any of the purposes of this article and pledge any part of the revenues or monies of the airport authority to secure the revenue bonds or other financial obligations.

7. Operate facilities and construct improvements.

8. Adopt rules as necessary to administer and operate the airport authority and any property under its jurisdiction.

9. Administer trusts declared or established for the airport authority, receive and hold in trust or otherwise property located in or outside of this state and, if not otherwise provided, dispose of the property for the benefit of the airport authority.

10. Engage employees and consultants.

11. Prepare and recommend annual operating budgets.

12. Sue and be sued.

13. Exercise incidental powers if necessary to the exercise of the powers prescribed in this article and articles 6 and 7 of this chapter.

§ 28-8529 Financing authority

The joint powers airport authority may finance the acquisition, construction, improvement or furnishing of any real or personal property or interests in property or services from any source, including without limitation the proceeds from the issuance of revenue bonds in the manner described in this article or from the proceeds of other financial obligations incurred for the purposes of this article.

§ 28-8530 Revenue bonds; fees and charges

A. The board of directors of the joint powers airport authority may pass a resolution to issue and sell airport authority revenue bonds.

B. If the revenue bonds are to be sold in a public offering, bonds may not be issued by the airport authority unless the bonds receive one of the four highest investment grade ratings by a nationally recognized bond rating agency.

C. The board of directors of the airport authority may pledge to the payment of its revenue bonds any revenues of the airport authority or revenues to be collected by the members of the airport authority in trust for the airport authority and returned to the airport authority.

D. The airport authority shall prescribe fees and charges and shall revise them as necessary to generate revenue sufficient to pay when due the principal and interest of all revenue bonds for the payment of which revenue has been pledged. The annual operating budget recommended by the airport authority shall identify the establishment or revision of any rates, fees and charges.

E. If in the resolution of the board of directors of the airport authority the revenues to be pledged are limited to certain types of revenues, only those types of revenues may be pledged and only those revenues must be maintained.

F. A holder of the revenue bonds issued under this section shall not compel either:

1. Any exercise of the taxing power of the airport authority, if any.

2. The members of the airport authority to pay the bonds or the interest on the bonds.

G. Revenue bonds issued under this section are not a debt of the airport authority or the members of the airport authority, and the payment of the revenue bonds is not enforceable out of any monies other than the revenue pledged to the payment of the bonds.

§ 28-8531 Refunding bonds

The joint powers airport authority may issue and sell refunding bonds to refund any airport authority revenue bonds.

§ 28-8532 Bond terms

A. With respect to bonds issued pursuant to this article, the board of directors of the joint powers airport authority shall:

1. Prescribe the denominations of the bonds, the size of each issue and the form of the bonds.

2. Establish the maturities, interest payment dates and interest rates, whether fixed or variable, not exceeding the maximum rate stated in the resolution of the board of directors of the airport authority.

B. The bonds may contain terms, conditions, covenants and agreements as the board of directors of the airport authority deems proper.

C. The bonds may be sold by competitive bid or negotiated sale for public or private offering at, below or above par. If the bonds are sold below par, the aggregate amount of discount and interest to be paid on the bonds shall not exceed the amount of interest that would have been payable on those bonds pursuant to the maturity schedule prescribed by the board of directors of the airport authority at the maximum rate provided in the bond resolution.

D. The proceeds of sales shall be deposited with the treasurer or with a trustee or agent designated by the board of directors of the airport authority to the credit of the airport authority to be withdrawn for the purposes provided by this article. Pending that use, the proceeds may be invested as determined by the airport authority.

§ 28-8533 Bond validity

A. A bond that is issued pursuant to this article and that bears the signature of officers in office on the date the bond is signed is a valid and binding obligation, notwithstanding that before delivery of the bond, any of the persons whose signatures appear on the bond have ceased to be officers of the joint powers airport authority.

B. A member of the board of directors of the airport authority or officer or employee of the airport authority is not personally liable on the bonds.

§ 28-8534 Bonds; legal investments

Bonds and refunding bonds issued pursuant to this article are:

1. Securities in which all of the following may properly and legally invest:

(a) Public officers and bodies of this state and of political subdivisions of this state.

(b) Companies, associations and other persons carrying on an insurance business.

(c) Financial institutions, investment companies and other persons carrying on a banking business.

(d) Fiduciaries.

(e) Other persons who are authorized to invest in government obligations.

2. Securities that may be deposited with public officers or bodies of this state and political subdivisions of this state for purposes that require the deposit of government bonds or obligations.

§ 28-8535 Federal income tax considerations

The joint powers airport authority may make any covenant, order any rebate, file any tax return, report any information and order the limitation on the yield of any investment made with the proceeds from the sale of its bonds or with taxes, revenues or other income pledged, held in trust or otherwise used to pay principal, interest and premium, if any, on its bonds in consideration for retaining the exclusion from gross income for federal income tax purposes of the interest income on any bond.

§ 28-8536 Bond proceeds; application

The joint powers airport authority may apply the proceeds from the sale of its bonds to further any of its lawful purposes, including to pay:

1. Costs and estimated costs of the issuance of the bonds.

2. Costs of feasibility studies.

3. Engineering, inspection, fiscal and legal expenses.

4. Costs of interest estimated to accrue on money borrowed or that will be borrowed as the board of directors may determine.

5. Reserve funds, including those for debt service and working capital.

6. Costs and fees related to credit enhancement.

7. Costs of the services of agents, consultants or experts retained or employed in planning, preparing, supervising, financing and completing the undertaking.

Article 9 Advanced Air Mobility Infrastructure

§ 28-8601 Definitions

In this article, unless the context otherwise requires:

1. "Advanced air mobility" means an air transportation system that primarily uses an electric aircraft, including eCTOL, eVTOL and powered lift aircraft, to carry passengers or cargo in an urban or a regional area.

2. "eCTOL" means an electric conventional takeoff and landing aircraft.

3. "eVTOL" means an electric vertical takeoff and landing aircraft.

4. "Powered lift aircraft" means a heavier-than-air aircraft that is capable of vertical takeoff, vertical landing and low-speed flight and that primarily uses engine-driven lift devices or engine thrust for lifting the aircraft during a takeoff and at least one nonrotating airfoil for lifting the aircraft during horizontal flight.

5. "Vertiport" means an area of land or water or a structure that is primarily used for the takeoff or landing of a powered lift aircraft, including associated buildings or facilities.

§ 28-8602 Vertiport and electric aviation planning

A. Beginning September 1, 2026, the department shall:

1. Through consultation with political subdivisions of this state that own or control a public airport, commercial air carriers, the federal aviation administration and any other relevant stakeholders, develop a statewide plan or update the statewide aviation plan to include public vertiports and electric aircraft charging stations and the infrastructure needs of advanced air mobility.

2. Designate a person who has expertise in advanced air mobility within the department as a resource for local and regional jurisdictions that are developing or implementing advanced air mobility, including an electric powered lift aircraft and electric aircraft. The person shall establish working relationships with political subdivisions of this state that own or control a public airport, commercial air carriers, the federal aviation administration, the United States department of transportation and any other relevant stakeholders.

B. A political subdivision of this state, in compliance with applicable federal laws, including those laws that apply to the federal aviation administration's and the United States department of transportation's safety standards, may establish the location of public and private vertiports, electric aircraft charging stations and the infrastructure needs of advanced air mobility.

§ 28-8603 Applicability

This article applies only to advanced air mobility aircraft, including an eCTOL, eVTOL and a powered lift aircraft, that have both of the following:

1. A gross takeoff weight of three hundred pounds or more.

2. The capability of carrying passengers as defined in section 28-8201 or cargo.

§ 28-8604 Advanced air mobility fund

A. The advanced air mobility fund is established. The state treasurer shall administer the fund. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 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. The fund consists of the following:

1. Monies appropriated by the legislature.

2. Any nonfederal gifts, grants, donations or other monies received by the state treasurer from any public or private source for transportation projects.

B. The monies in the fund shall be used to:

1. Purchase advanced air mobility vehicles that are capable of carrying passengers or cargo for testing and demonstration purposes of the ability to use the advanced air mobility vehicles.

2. Construct vertiports.

C. Before any expenditure is made from the fund, the state treasurer and the department shall submit an expenditure plan for review to the joint committee on capital review.

Chapter 26 Intergovernmental Public Transportation Authorities

Article 1 Formation and Dissolution

§ 28-9101 Definitions

In this chapter, unless the context otherwise requires:

1. "Authority" means an intergovernmental public transportation authority established pursuant to this chapter.

2. "Board" means the board of directors of an intergovernmental public transportation authority.

3. "Intergovernmental agreement" means an agreement or contract that meets the requirements of title 11, chapter 7, article 3.

4. "Municipality" means an incorporated city or town.

5. "Operating area" means an area established pursuant to this chapter within which the authority provides transportation services.

6. "Public transportation" means local transportation of passengers by means of a public conveyance.

§ 28-9102 Formation

A. An intergovernmental public transportation authority may be organized as provided by this section in any county with a population of four hundred thousand persons or less.

B. The governing body of one or more incorporated cities or towns may petition the county board of supervisors to establish an authority consisting of the area within the incorporated boundary of the municipality or municipalities.

C. If the organizing municipalities are not contiguous, the unincorporated areas between the organizing municipalities must also be included in the authority with the approval of the county board of supervisors. The board of supervisors shall establish the boundaries of the unincorporated area to be included in the authority.

D. Incorporated cities and towns in different counties, each of which meet the population limit prescribed by subsection A of this section, may petition their respective county boards of supervisors to establish a joint authority consisting of the combined areas within their respective municipal boundaries and including any intervening unincorporated areas in the counties.

E. The board of supervisors shall hold at least one hearing on the petition in one of the petitioning municipalities to determine public support for the authority and whether establishing the authority would be in the public interest. In the case of petitioning municipalities in different counties, the board of supervisors of each county shall hold separate hearings and each board shall make its determination separately.

F. If the board of supervisors determines that establishing the authority would serve the public convenience, necessity, safety or welfare, the board of supervisors shall establish the authority by a resolution that includes a description of the boundaries of the authority. In the case of an authority in different counties, the county boards of supervisors shall establish the authority by an intergovernmental agreement.

G. If an authority is established under this chapter, any university that is under the jurisdiction of the Arizona board of regents and that is located in a municipality in the authority, any community college district that is located in a municipality in the authority, or any Indian nation that has a boundary within a county in which an authority is established, may become a member of the authority by intergovernmental agreement.

§ 28-9103 Corporate existence; rights and immunities; official name

A. An authority is a corporate body and political subdivision of this state that may act in its official corporate name and has all of the rights and immunities of municipal corporations that are granted by the constitution and statutes of this state, including immunity of its property from taxation.

B. The initial board of directors of the authority shall adopt the official name of the authority that shall contain the words "intergovernmental public transportation authority".

§ 28-9104 Dissolution

A. A majority of the board of directors of an authority may propose that the authority be dissolved, but only if all contractual obligations and debts of the authority are satisfied and if another governmental entity or entities accept dedication of all authority property and obligations.

B. After a hearing, the board shall adopt by resolution a plan of termination to be executed within a stated period of time after it is adopted.

C. The growth of a county population to more than four hundred thousand persons does not cause the dissolution of an authority by operation of law.

Article 2 Powers and Duties

§ 28-9121 Organization; board of directors

A. The executive director of the regional council of governments shall function as organizing director of the authority until replaced by a permanent general manager by the initial board of directors.

B. A board of directors shall govern the authority, and the governing bodies of the participating governmental entities shall appoint the board of directors. The board of directors shall consist of at least five and not more than nine members apportioned as follows:

1. The county board of supervisors shall appoint one member if any part of the authority is located in an unincorporated area of the county. If the authority is located in more than one county, each county board of supervisors shall appoint one member of the board of directors.

2. If a university is a member of the authority pursuant to section 28-9102, subsection G, the president of the university shall appoint one member of the board of directors.

3. If a community college district is a member of the authority pursuant to section 28-9102, subsection G, the president or chancellor of the community college district shall appoint one member of the board of directors.

4. If an Indian nation is a member of the authority pursuant to section 28-9102, subsection G, the highest elected official of the Indian nation shall appoint one member of the board of directors.

5. The remaining membership shall be apportioned among the participating municipalities according to their respective populations.

C. Members of the board serve for five year terms ending on January 1 of the appropriate year, except that:

1. The members of the initial board serve for terms of two, three, four and five years, determined by lot. Succeeding members serve full five year terms in staggered rotation.

2. The appointing governmental entity may remove any of its appointive members for cause.

D. The board shall elect a chairperson and other officers from among its members and shall prescribe by rule their functions and terms and conditions of appointment.

§ 28-9122 Administrative powers and duties

A. The board shall:

1. Determine its organizational and procedural structure, adopt, amend and repeal bylaws and rules consistent with the requirements of this chapter and prescribe a system of accounts.

2. Employ a general manager and other employees as may be necessary and prescribe the duties, terms and conditions of employment. The general manager serves at the pleasure of the board. All employees shall be selected on the exclusive basis of merit according to their qualifications.

3. Manage, set policy and conduct the business and affairs of the authority.

4. Enter into contracts, including intergovernmental agreements.

5. Provide for payment of all debts and appropriate claims against the authority from the appropriate funds.

6. Issue an annual report on or before December 1 containing a full account of its transactions, activities and finances for the preceding fiscal year and other facts and recommendations. The board shall transmit copies of the report to each member municipality, university and county, to the secretary of state, to the Arizona state library, archives and public records and, on request, to any member of the public.

B. The board may:

1. Delegate any powers and duties under this section to the general manager.

2. Sue and be sued.

3. Adopt a seal for the authority to be used to attest to documents.

4. Retain outside professional services, including legal counsel.

5. Acquire suitable offices, furnishings and necessary equipment, supplies and other personal property.

6. Perform all other acts necessary to carry out the purposes of this chapter.

C. The board may not exercise the power of eminent domain.

D. Immediately on organization, the board shall initiate proceedings to determine the application of federal voting laws to the authority and shall take any necessary action to comply with the applicable federal laws.

§ 28-9123 Survey of public transportation needs

A. The board shall conduct a periodic survey of public transportation needs in the authority and determine an appropriate public transportation system to meet those needs and the means to finance the system. The board shall consider whether to operate the system directly or to contract with outside parties for the operation of all or part of the system.

B. Each year the board shall produce a five year public transportation program that is consistent with the regional transportation plan approved by the regional council of governments. The five year program shall:

1. Contain public transportation projects financed with monies from federal, state and local funding.

2. Contain a description of each project, including a schedule of expenditures and a source of funding for each project.

3. Identify the entity that is responsible for implementing each project or phase of the public transportation program.

4. Define and identify regional public transportation corridors.

5. Define the public transportation problems, goals and needs for each corridor and policies and priorities for meeting those goals and needs.

6. Determine a mix of public transportation modes appropriate for development in light of the public transportation goals and needs for each corridor.

7. Locate routes and access points to the public transportation systems.

8. Determine the ridership capacity and use of public transportation systems.

C. The five year public transportation program shall include, in addition to the appropriate items prescribed in subsection B of this section, the following items presented on an individual fiscal year basis:

1. The capital and operating costs of the public transportation system.

2. The revenue needed by source, according to section 28-9142, to fund the public transportation system.

§ 28-9124 Operation and maintenance of public transportation system

A. The board and each member governmental entity shall enter into an intergovernmental agreement to provide that the authority has sole authority for designing, operating and maintaining the public transportation system in the authority. The board shall coordinate and implement the establishment and development of the public transportation system within the authority and among the participating governmental entities.

B. The board may establish and operate a regional bus system and community funded transportation services including dial-a-ride programs and special needs transportation services.

C. The board may contract with public or private entities to operate the regional bus system.

D. The board shall adopt rules that are proper and necessary to regulate the use, operation and maintenance of its public transportation systems, property, facilities and services.

Article 3 Financing

§ 28-9141 Authority treasurer

The authority shall appoint an authority treasurer or may enter into an intergovernmental agreement with the county treasurer to provide financial services for the authority.

§ 28-9142 Public transportation authority fund

A. The authority treasurer shall maintain a public transportation authority fund consisting of all monies received by the authority including:

1. Monies appropriated or paid to the authority from municipalities, member universities and the county.

2. Monies received by the authority from the federal government or this state.

3. Grants, gifts and other donations from any source.

4. Revenues collected by the authority as fares and other proceeds from operating the public transportation system.

5. Monies received from the county transportation excise tax as provided in section 42-6106.

B. Monies in the fund may be used for any lawful purpose of the authority.

C. The authority treasurer may invest any unexpended monies in the fund as provided in title 35, chapter 2, including in the local government investment pool, if authorized by the state treasurer. Interest and other income from investments shall be credited to the fund.

D. The authority treasurer shall invest the monies to mature at the times when the fund assets will be required for the purposes of this article. If the liquid assets in the fund become insufficient to meet the authority's obligations, the board of directors shall:

1. Direct the authority treasurer to liquidate sufficient securities to meet all of the current obligations.

2. Immediately notify the auditor general of the insufficiency. The auditor general shall investigate and audit the circumstances surrounding the depletion of the fund and report the findings to the board.

E. The board shall cause an annual audit to be conducted of the fund by an independent certified public accountant within one hundred twenty days after the end of the fiscal year. The board shall immediately file a certified copy of the audit with the auditor general. The auditor general may make further audits and examinations as necessary, but if the auditor general takes no official action within thirty days after the audit is filed, the audit is considered to be sufficient. The board shall pay all fees and costs of the certified public accountant and auditor general under this subsection from the fund.

§ 28-9143 Annual budget

A. No later than June 30 of each year the board of directors shall hold a public hearing to adopt and submit to the county board of supervisors and the governing body of each participating municipality and university a budget for the following fiscal year that includes:

1. Receipts during the past fiscal year.

2. Expenditures during the past fiscal year.

3. Estimates of amounts necessary for expenses during the following fiscal year including amounts proposed for:

(a) Costs of maintaining, operating and managing the public transportation system.

(b) Promotional and marketing expenses of the authority for the following year.

4. Anticipated revenue to the authority in the following fiscal year.

5. A complete asset and liability statement.

6. A statement of profit or loss from operations.

7. Cash on hand as of the date the budget is adopted and the anticipated balance at the end of the current fiscal year.

8. An itemized statement of commitments, reserves and anticipated obligations for the following fiscal year.

B. The board may amend the budget on a finding of good cause.

Chapter 27 Light Rail Transit System Safety

Article 1 General Provisions

§ 28-9201 Minimum safety standards; violation

A. As prescribed by 49 United States Code section 5329 or 5330 and 49 Code of Federal Regulations part 674, the department shall establish, implement and enforce minimum safety standards for light rail transit systems and street car systems in a county with a population of more than five hundred thousand persons.

B. The safety oversight responsibilities of the department under this section include the authority to:

1. Review, approve, oversee and enforce the implementation by the rail fixed guideway public transportation agency of this state's required public agency safety plan relating to engineering, construction and revenue services.

2. Enforce relevant federal and state laws on rail fixed guideway public transportation safety.

C. If the department discovers a violation of the safety standards prescribed pursuant to subsection A of this section, the department shall report the violation in writing to the federal transit administration.

§ 28-9202 Public records; confidentiality

The department's information relating to the safety oversight of light rail transit systems and street car systems in a county with a population of more than five hundred thousand persons is a public record pursuant to title 39, chapter 1, except that, if the director, in consultation with the federal transit administration, determines the release of certain information would threaten the safety and security of the public, the director may keep the information confidential.

§ 28-9203 Risk management; payment of costs

The organization that operates a light rail transit system shall:

1. Pay for any risk management costs the department incurs resulting from the department's safety oversight of light rail transit systems pursuant to this chapter.

2. Pay for judgments against this state resulting from the department's safety oversight of light rail transit systems pursuant to this chapter.

§ 28-9204 Public monies; prohibition

Notwithstanding any other law, public monies may not be used to extend light rail service in Phoenix to:

1. The area with a boundary of seventeenth avenue on the east, Adams street on the north, eighteenth avenue on the west and Jefferson street on the south.

2. Any property that is within fifty linear yards of the area described in paragraph 1 of this section.

Chapter 30 For-Hire Transportation

Article 1 General Provisions

§ 28-9501 Definitions

In this chapter, unless the context otherwise requires:

1. "Taxi meter" means a device that automatically calculates at a predetermined rate the charge for the hire of a vehicle and that indicates the charge.

2. "Vehicle for hire" means a taxi, livery vehicle or limousine.

3. "Vehicle for hire company" means a company that offers local transportation through use of a taxi, livery vehicle or limousine or a combination of taxis, livery vehicles or limousines.

§ 28-9502 Powers and duties

A. The department shall adopt any rules necessary to carry out this chapter and adopt reasonable rules for the enforcement of this chapter. These rules have the force and effect of law and shall be adopted pursuant to title 41, chapter 6.

B. The department may:

1. Investigate complaints made to the department concerning violations of this chapter and, on its own initiative, conduct investigations it deems appropriate in order to develop information relating to prevailing procedures for taxi meter rate determination and possible violations of this chapter and to promote accuracy in the determination and representation of quantity in taxi meter rates.

2. Inspect and test taxi meters by a random systematic method determined by the director or in response to a complaint by the public to determine whether the taxi meters meet the requirements prescribed by the department by rule.

3. Apply to any court of competent jurisdiction for a temporary or permanent injunction restraining any person from violating this chapter.

4. Subject to title 41, chapter 4, article 4, employ such personnel as needed to assist in administering this chapter.

C. During the course of an investigation or an enforcement action by the department, information regarding the complainant is confidential and is exempt from title 39, chapter 1 unless the complainant authorizes the information to be public.

§ 28-9503 Vehicle for hire company permits; fees; violation; classification

A. A vehicle for hire company may not operate in this state unless the vehicle for hire company is issued a permit by the department. The vehicle for hire company may apply to the department on forms prescribed by the department. The permit is valid for three years. The department shall charge and collect an application fee of twenty-four dollars per vehicle that is used as a taxi by the vehicle for hire company at the time of application, not to exceed a total of one thousand dollars per applicant.

B. The department shall issue a permit to an applicant that meets the requirements of this article.

C. A vehicle for hire company shall maintain an agent for service of process in this state.

D. If a fare is based on time or mileage or both time and mileage, a taxi shall have a taxi meter, except that if the service offered by the taxi is a prearranged ground transportation service as prescribed in section 28-141 for a predetermined fare, the taxi is not required to use the taxi meter.

E. The department shall revoke a permit if the vehicle for hire company fails to maintain the requirements for either of the following:

1. Motor vehicle licensing as prescribed by the department.

2. Motor vehicle insurance as prescribed by section 28-4033.

F. A vehicle for hire shall have a copy of the permit issued to the vehicle for hire company under this chapter inside the vehicle at all times.

G. A taxi that is issued a permit by the department and that offers local transportation for a fare determined on the basis of the distance traveled or prearranged ground transportation service as prescribed in section 28-141 for a predetermined fare is not required to have an additional permit as a livery vehicle.

H. A person or the person's agent who knowingly files with the department any notice, statement or other document required under this section that is false or that contains any material misstatement of fact is guilty of a class 2 misdemeanor.

§ 28-9504 Fees to general fund

The director shall deposit, pursuant to sections 35-146 and 35-147, all fees collected pursuant to this chapter in the state general fund.

§ 28-9505 Meters; duplicate receipts

A. Every taxi that has a charge or fare based on time or mileage or both time and mileage shall have a taxi meter.

B. The taxi meter shall be visible to the passengers of a taxi.

C. If a taxi has the capability of producing a duplicate receipt, the driver shall print the duplicate receipt and provide the duplicate receipt to the passenger paying the fare.

D. A taxi meter is not required to be used if the taxi is offering prearranged ground transportation service as defined in section 28-141 for a predetermined fare.

§ 28-9506 Taxi and livery vehicle signage

A. A taxi or livery vehicle shall display all of the following information either on an interior sign that is readily visible and that is either in a print or an electronic format or on a digital network or software application:

1. The permittee's business name and address.

2. An accurate representation of all fares and the fare computation method.

3. The driver's name.

B. At a minimum, a taxi is required to display readily visible exterior trade dress as defined in section 28-9551 that contains the word "taxi" or "cab".

§ 28-9507 Vehicles for hire; criminal background checks; vehicle safety records; zero-tolerance policy; drug and alcohol use by driver; passenger complaints

A. A vehicle for hire company that is issued a permit by the department shall have available for inspection at all times by the department written evidence of a criminal background check conducted for any driver operating a vehicle for hire for the vehicle for hire company, whether as an employee or lessee. The criminal background check shall be completed before the driver is engaged as an employee or lessee. If the driver was convicted of an offense that would require the driver to register pursuant to section 13-3821, the driver may not be engaged as an employee or a lessee of a vehicle for hire company.

B. A vehicle for hire company that is issued a permit by the department shall require that all of the company's vehicles for hire that are used to provide passenger transportation meet state vehicle safety and emissions standards for private vehicles and shall require the vehicles for hire to have, at a minimum, an annual brake and tire inspection that is performed by a qualified party. The vehicle for hire company shall maintain vehicle safety and emissions inspection records for at least two years and make the records available to the department on request.

C. A vehicle for hire company shall implement a zero-tolerance policy on the use of drugs and alcohol while a vehicle for hire driver is providing passenger transportation or is available to provide passenger transportation. The vehicle for hire company shall provide notice of this policy on its website or in the vehicle for hire, including procedures to file a complaint about a driver with whom a passenger was matched and who the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the passenger transportation.

D. On receipt of a passenger complaint alleging a violation of the zero-tolerance policy, the vehicle for hire company shall do both of the following:

1. Immediately suspend the vehicle for hire driver's access to the company's vehicle for hire.

2. Conduct an investigation into the filed complaint. The suspension shall last the duration of the investigation.

E. If the vehicle for hire company's investigation confirms that the driver has violated the policy required by subsection C of this section, the vehicle for hire company shall permanently prohibit the driver's access to the company's vehicles for hire. The vehicle for hire company shall maintain enforcement records for at least two years after the date a passenger complaint is received by the company and make the records available to the department on request.

Article 2 Regulation

§ 28-9521 Unlawful use of vehicle for hire; violation; classification

A. When any vehicle for hire specified in this chapter is in commercial use and a valid permit has not been procured by the vehicle for hire company, the department, after giving notice of the permit requirements to the vehicle for hire company, shall prohibit the further commercial use of the vehicle until the proper permit has been issued.

B. The owner of any business who has not applied for and has not been issued a permit by the department for the right to do business involving the use of a vehicle for hire and who is found offering vehicle for hire services to a consumer is guilty of a class 2 misdemeanor.

C. If a vehicle for hire is used contrary to any provision of this chapter or any rule adopted pursuant to this chapter, the department, in addition to any other penalty imposed by this chapter, shall suspend, revoke or refuse to renew the permit of the vehicle for hire company.

§ 28-9522 Revocation or suspension of permits; procedure; judicial review

A. Except as otherwise provided by this section, any proceeding to revoke or suspend a permit issued pursuant to this chapter shall be conducted in accordance with title 41, chapter 6, article 10.

B. The director may initiate proceedings for revocation or suspension of a permit issued pursuant to this chapter on the director's own motion or on a verified complaint for noncompliance with or a violation of this chapter or of any rule adopted pursuant to this chapter.

C. If, after having been served with the notice of hearing as provided for in title 41, chapter 6, article 10, the permittee fails to appear at the hearing and defend, the department shall proceed to hear evidence against the permittee and shall enter an order as justified by the evidence. The order is final unless the permittee petitions for a review as provided in title 41, chapter 6, article 10.

D. At all hearings, the attorney general, an assistant attorney general or a special assistant designated by the attorney general shall appear and represent the department.

E. Except as provided in section 41-1092.08, subsection H, any final administrative decision made pursuant to this chapter is subject to judicial review pursuant to title 12, chapter 7, article 6.

§ 28-9523 Violations; classification; jurisdiction

A. A person is guilty of a class 1 misdemeanor who:

1. Knowingly hinders, interferes with or obstructs in any way the director or any of the director's agents or inspectors in entering the premises where a taxi meter may be kept for inspecting or testing or in the performance of the official duties of the director or the director's agents or inspectors.

2. Impersonates in any way the director or any of the director's agents or inspectors by the use of the director's seal or a counterfeit of the director's seal or in any other manner.

3. Uses, or has in possession for the purpose of using for a commercial purpose, offers or exposes for sale or hire, or has in possession for the purpose of selling or hiring an incorrect taxi meter used or calculated to falsify the accuracy of the taxi meter.

B. A person is guilty of a class 2 misdemeanor who:

1. Uses a taxi meter that is so positioned that its indications cannot be accurately read and the metering operation cannot be observed from some position that may reasonably be assumed by a customer.

2. Violates this chapter or rules adopted under this chapter. A continuing violation may be deemed to be a separate violation each day during which the violation is committed for the purpose of imposing a fine.

C. The provisions of this section are in addition to and not in limitation of any other provision of law.

D. The attorney general and the county attorney have concurrent jurisdiction to prosecute violations of this chapter.

§ 28-9524 Taxi meter; presumptive evidence of use

When a taxi meter is in or about any place in which or from which a vehicle for hire transaction is commonly carried on, there is a rebuttable presumption that the taxi meter is regularly used for the business purpose of the place.

§ 28-9525 Civil penalties

A. A person who violates this chapter, any rule of the department or any permit requirement is subject to a civil penalty imposed by the director. A person who violates this chapter, any rule of the department or any permit requirement may request a hearing to review a civil penalty imposed under this section. The department shall conduct the hearing in accordance with title 41, chapter 6, article 10. The civil penalty may not exceed one thousand five hundred dollars for each infraction at each business location.

B. The attorney general shall bring actions to recover civil penalties pursuant to this section in the superior court in the county in which the violation occurred or in a county where the agency has its office. All monies derived from civil penalties shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

§ 28-9526 Delinquent civil penalties and fees

In addition to any other penalty, if a civil penalty or any fee due pursuant to this chapter has not been paid within thirty days after the due date, the civil penalty or fee is delinquent and the department may refuse to issue a permit or may revoke a permit pursuant to this chapter until the civil penalty or fee is paid in full.

§ 28-9527 Transaction privilege tax prohibited

A vehicle for hire owner, company or driver that has a permit issued pursuant to article 1 of this chapter is exempt from transaction privilege tax pursuant to sections 42-5062 and 42-6004 on income derived from transporting persons for hire.

Article 3 Transportation Network Companies

§ 28-9551 Definitions

In this article, unless the context otherwise requires:

1. "Digital network or software application" means any online-enabled application, software, website or system that is offered or used by a transportation network company and that enables a potential passenger to arrange a ride with a transportation network company driver.

2. "Trade dress" means a removable and distinct logo, insignia or emblem attached to or visible from the exterior of either of the following:

(a) A transportation network company vehicle during the performance of transportation network services.

(b) A taxi while providing vehicle for hire services.

3. "Transportation network company" means an entity that has been issued a permit pursuant to this article, that operates in this state, that uses a digital network or software application to connect passengers to transportation network services provided by transportation network company drivers and that may but is not deemed to own, operate or control a personal motor vehicle of a transportation network company driver. Transportation network company does not include the following:

(a) This state or a county, city, town or political subdivision of this state and any related entity, a nonprofit agency or any other public body that coordinates, operates, promotes or sponsors public transportation or carpool or vanpool services.

(b) A program that is in place to meet federal air quality standards pursuant to section 49-404.

(c) Any individual, company or activity that meets the requirements of a rental car agent or rental company as defined in section 20-331 if all of the following apply:

(i) Transportation is provided to another person or is arranged by the rental company but provided by another person.

(ii) The route is predetermined.

(iii) Any money exchanged between the provider of the transportation and the recipient does not exceed the cost of providing the transportation.

4. "Transportation network company driver" means an individual who receives connections to potential passengers and related services from a transportation network company in exchange for payment of a fee to the transportation network company and who operates a motor vehicle that is both of the following:

(a) Owned, leased or otherwise authorized for use by the individual.

(b) Used to provide transportation network services.

5. "Transportation network company vehicle" means a motor vehicle that meets all of the following:

(a) Has a seating capacity not exceeding eight passengers, including the driver.

(b) Is authorized by a transportation network company.

(c) Is used by a transportation network company driver to provide transportation network services.

6. "Transportation network services" means the transportation of a passenger between points chosen by the passenger and arranged with a transportation network company driver through the use of a transportation network company's digital network or software application beginning when a transportation network company driver accepts a request for transportation network services received through the transportation network company's digital network or software application, continuing while the transportation network company driver provides transportation network services in a transportation network company vehicle and ending when the passenger exits the transportation network company vehicle or when the trip is canceled.

§ 28-9552 Transportation network companies; permit; fee; agent; trade dress

A. A person may not act as a transportation network company driver in this state unless the transportation network company has been issued a permit by the department. The transportation network company may apply to the department on forms prescribed by the department. The department shall charge and collect an application fee as determined by the director.

B. The department shall issue a permit to an applicant that meets the requirements of this article.

C. A transportation network company shall maintain an agent for service of process in this state.

D. A transportation network company vehicle shall display trade dress while being used to provide transportation network services. The trade dress shall identify the transportation network company vehicle with a particular transportation network company. The transportation network company shall file an illustration of the trade dress with the department.

E. A transportation network company shall be regulated pursuant to this article and not as a vehicle for hire.

§ 28-9553 Transportation network services; fares; driver identification; electronic receipt

A. On behalf of a transportation network company driver, a transportation network company may charge a fare for transportation network services provided to passengers. If a fare is charged through a digital network or software application, the transportation network company shall disclose to passengers the fare calculation method on its website or within the digital network or software application.

B. The transportation network company shall provide passengers with the applicable rates being charged through a digital network or software application and the option to receive an estimated fare before the passenger enters the transportation network company vehicle.

C. Before the passenger enters the transportation network company vehicle through the transportation network company's digital network or software application, the digital network or software application shall display a picture of the transportation network company driver and the license plate number of the motor vehicle used for providing the transportation network service.

D. Within a reasonable period of time following the completion of a trip arranged through a digital network or software application, the transportation network company shall transmit to the passenger an electronic receipt that lists all of the following:

1. The origin and destination of the trip.

2. The total time and distance of the trip.

3. An itemization of the total fare paid, if any.

§ 28-9554 Zero-tolerance policy; drug and alcohol use by driver; passenger complaints

A. A transportation network company shall implement a zero-tolerance policy on the use of drugs and alcohol while a transportation network company driver is providing transportation network services or is logged in to the digital network or software application but is not providing transportation network services. The transportation network company shall provide notice of this policy on its website, including procedures to file a complaint about a transportation network company driver with whom a passenger was matched and who the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the trip.

B. On receipt of a passenger complaint alleging a violation of the zero-tolerance policy, the transportation network company shall do both of the following:

1. Immediately suspend the transportation network company driver's access to the transportation network company's digital network or software application.

2. Conduct an investigation into the filed complaint. The suspension shall last the duration of the investigation.

C. If the transportation network company's investigation confirms that the transportation network company driver has violated this section, the transportation network company shall permanently deactivate the driver's access to the transportation network company's digital network or software application. The transportation network company shall maintain enforcement records for at least two years after the date a passenger complaint is received by the transportation network company and make the records available to the department on request.

§ 28-9555 Transportation network company duties; driver requirements

A. Before a person may accept trip requests through a digital network or software application, the transportation network company shall do all of the following:

1. Require the person to submit an application to the transportation network company that includes the person's name, address, age, driver license number, driving history, motor vehicle registration information and motor vehicle insurance information and any other information requested by the transportation network company.

2. Conduct, or have a third party conduct, a local and national criminal background check for each applicant that includes a search of a multijurisdiction criminal records locator or similar, validated commercial nationwide database and a national sex offender registry database.

3. Obtain and review a driving history report for the applicant.

4. Require that a transportation network company vehicle used by a transportation network company driver or owned by an on-demand autonomous vehicle network as defined in section 28-9701 meets state vehicle safety and emissions standards for private vehicles and have at a minimum an annual brake and tire inspection that is performed by a qualified third party, except that if the vehicle is ten years or less from the year of manufacture, the transportation network company driver may submit an attestation that the transportation network company vehicle meets the state vehicle safety and emissions standards for private vehicles instead of having the minimum annual brake and tire inspection.

B. A transportation network company may not allow a person to act as a transportation network company driver who:

1. Has had more than three moving violations or one major violation pursuant to this title in the preceding three years. For the purposes of this paragraph, "major violation" includes attempting to evade the police, reckless driving or driving on a suspended or revoked license.

2. Has been convicted within the preceding seven years of a serious offense as defined in section 13-706 or a violation of section 28-1381, 28-1382 or 28-1383 or title 13, chapter 14, 19, 22, 23, 34 or 35.1.

3. Is listed in a national sex offender registry database.

4. Does not possess a valid driver license.

5. Does not possess proof of registration for the motor vehicle that will be used as a transportation network company vehicle.

6. Does not possess proof of financial responsibility for the motor vehicle that will be used as a transportation network company vehicle.

7. Is not at least nineteen years of age.

C. A transportation network company or its agent shall maintain records of the criminal background check conducted on behalf of each transportation network company driver and make the records available to the department on request.

§ 28-9556 Transportation network services; civil penalty; street hails prohibited; records

A. A transportation network company driver shall accept rides booked and paid for exclusively through a transportation network company's digital network or software application. The department may impose a civil penalty of not more than one thousand five hundred dollars per violation against any transportation network company driver who is found to be soliciting or accepting street hails.

B. A transportation network company shall maintain individual trip records for at least one year after the date each trip was provided and transportation network company driver records until the one-year anniversary of the date of the driver's activation on the transportation network company's digital network or software application has ended and shall make the records available to the department on request.

§ 28-9557 Transportation network companies; drivers; transaction privilege tax prohibited

A transportation network company that has a permit issued pursuant to this article and a transportation network company driver may not be required to pay transaction privilege tax or any similar tax imposed by any taxing authority in this state on transactions in which a transportation network company driver is providing transportation network services.

§ 28-9558 Transportation network company disclosures; insurance proceeds

A. A transportation network company shall disclose to its transportation network company drivers, in writing or in an electronic format, the following information before the drivers may accept a request for transportation network services on the transportation network company's digital network or software application:

1. The insurance coverage and limits of liability that the transportation network company provides while the transportation network company driver uses a transportation network company vehicle in connection with the transportation network company's digital network or software application.

2. That the transportation network company driver's own insurance policy might not provide coverage while the transportation network company driver uses a transportation network company vehicle in connection with the transportation network company's digital network or software application, depending on its terms.

3. That the transportation network company driver's use of a vehicle that has a lien against it to provide transportation network services for the transportation network company might violate the terms of the transportation network company driver's contract with the driver's lienholder.

B. The disclosures required by subsection A of this section shall be placed in the prospective transportation network company vehicle owner's written terms of service.

C. If a transportation network company's insurer makes a payment for a claim covered under comprehensive coverage or collision coverage, the transportation network company shall cause its insurer to issue the payment directly to the business repairing the vehicle or jointly to the owner of the vehicle and the primary lienholder on the covered vehicle.

Article 4 Transportation Innovation

§ 28-9571 Statewide transportation innovation fund

A. The statewide transportation innovation fund is established. The state treasurer shall administer the fund. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 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. The fund consists of the following:

1. Monies appropriated by the legislature.

2. Any nonfederal gifts, grants, donations or other monies received by the state treasurer from any public or private source for transportation projects.

B. The monies in the fund shall be used for:

1. Grants to for-profit and nonprofit entities to provide a transportation innovation program in this state as prescribed by section 28-9572.

2. Equipment purchases, driver salaries, insurance costs and payment of other costs directly related to the implementation of an innovation transportation plan.

§ 28-9572 Statewide transportation innovation program; grantee requirements

A. The state treasurer shall administer the statewide transportation innovation program that consists of grant recipients authorized pursuant to section 28-9571.

B. A grant applicant must:

1. Be able to provide a mode of transportation that seats fifteen or fewer passengers.

2. Include manually driven or autonomous vehicles.

3. Allow for dropping off and picking up passengers using predetermined locations.

4. Include in the grant application:

(a) An implementation plan.

(b) The service area within which the grant applicant will operate.

(c) The cost to the passengers.

(d) The number of available vehicles.

(e) Other information as determined by the department.

C. The state treasurer shall report all applications that are received for the transportation innovation program to the chairpersons of the senate and house of representatives transportation committees, or their successor committees.

D. At the request of the chairpersons of the senate and house of representatives transportation committees, or their successor committees, the state treasurer shall hold a public meeting to review grant applications and receive a legislative recommendation. All information in the applications reviewed at the meeting shall remain confidential.

Chapter 31 Peer-to-Peer Car Sharing

Article 1 General Provisions

§ 28-9601 Definitions

In this chapter, unless the context otherwise requires:

1. "Car sharing delivery period" means the period of time during which a shared vehicle is being delivered to the location of the car sharing start time as documented by the governing car sharing program agreement.

2. "Car sharing period" means the period of time that begins with the car sharing delivery period or the car sharing start time if there is no car sharing delivery period and ends at the car sharing termination time.

3. "Car sharing program agreement":

(a) Means the terms and conditions that apply to a shared vehicle owner and a shared vehicle driver and that govern the use of a shared vehicle through a peer-to-peer car sharing program.

(b) Does not include a rental agreement as defined in section 20-331.

4. "Car sharing start time" means the time when a shared vehicle becomes subject to the control of the shared vehicle driver at or after the time that the reservation of the shared vehicle is scheduled to begin as documented in the records of a peer–to–peer car sharing program.

5. "Car sharing termination time" means the earliest of the following:

(a) The agreed period of time established for the use of a shared vehicle in the governing car sharing program agreement expires and the shared vehicle is delivered to a location that is specified in the governing car sharing program agreement.

(b) When the shared vehicle is returned to a location as alternatively agreed on by the shared vehicle owner and shared vehicle driver as communicated through a peer-to-peer car sharing program.

(c) The shared vehicle owner or the shared vehicle owner's designee takes possession and control of the shared vehicle.

6. "Individual-owned shared vehicle" means one of the following:

(a) If the shared vehicle is purchased in this state, a shared vehicle for which the owner certifies that the transaction privilege tax was paid on the purchase of the shared vehicle.

(b) If the shared vehicle is not purchased in this state, a shared vehicle for which the owner certifies that the applicable sales or use tax was paid in the jurisdiction in which the shared vehicle was purchased if that jurisdiction levies a sales or use tax on the purchase of motor vehicles.

(c) If the shared vehicle is not purchased in this state, a shared vehicle for which the owner certifies that the applicable use tax was paid to this state and the appropriate local jurisdiction.

7. "Peer-to-peer car sharing":

(a) Means the authorized use of a shared vehicle by an individual other than the shared vehicle owner through a peer-to-peer car sharing program.

(b) Does not include:

(i) A rental vehicle as defined in section 20-331.

(ii) The business of renting vehicles to renters under a rental agreement as defined in section 20-331.

(iii) The business of renting motor vehicles without drivers that is subject to a surcharge pursuant to section 28-5810.

(iv) A motor vehicle lease or rental that is subject to a surcharge pursuant to section 5-839 or 48-4234.

8. "Peer-to-peer car sharing program":

(a) Means a business platform that connects vehicle owners with drivers to enable the sharing of vehicles for financial consideration.

(b) Does not include:

(i) A rental company as defined in section 20-331.

(ii) A person or entity that is engaged in the business of renting motor vehicles without drivers and that collects a surcharge pursuant to section 28-5810.

9. "Shared vehicle":

(a) Means a vehicle that is available for sharing through a peer-to-peer car sharing program.

(b) Does not include a rental vehicle or vehicle as defined in section 20-331.

10. "Shared vehicle driver" means an individual who has been authorized to drive the shared vehicle by the shared vehicle owner under a car sharing program agreement.

11. "Shared vehicle owner" means the registered owner, or a person or entity designated by the registered owner, of a vehicle that is made available for sharing to shared vehicle drivers through a peer-to-peer car sharing program.

12. "Shared vehicle transaction":

(a) Means the authorized use of a shared vehicle by an individual other than the shared vehicle's owner through a peer-to-peer car sharing program.

(b) Does not include:

(i) A rental agreement as defined in section 20-331.

(ii) The business of renting motor vehicles without drivers that is subject to a surcharge pursuant to section 28-5810.

(iii) The business of leasing or renting for less than one year motor vehicles for hire without a driver as described in section 5-839, subsection C if the shared vehicle is an individual-owned shared vehicle.

(iv) A motor vehicle lease or rental that is subject to a surcharge pursuant to section 48-4234.

§ 28-9602 Insurance requirements

A. Except as otherwise provided in subsections B and C of this section, a peer-to-peer car sharing program shall assume the liability of a shared vehicle owner for bodily injury or property damage that occurs to a third party during the car sharing period in an amount that is stated in the car sharing program agreement and that is not less than the minimum amount of coverage required by section 28-4009.

B. A peer-to-peer car sharing program is not liable for bodily injury or property damage to a third party in an amount that is more than the minimum amount of coverage required by section 28-4009 if either of the following occurs:

1. The shared vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the peer-to-peer car sharing program before the car sharing period in which the loss occurs and the bodily injury or property damage is to a third party.

2. The shared vehicle owner acts in concert with the shared vehicle driver who fails to return the shared vehicle pursuant to the car sharing program agreement.

C. Notwithstanding the car sharing termination time, the assumption of liability under subsection A of this section applies to bodily injury and property damage to third parties as required by section 28-4009.

D. A peer-to-peer car sharing program shall ensure that during each car sharing period the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy or other applicable insurance policy that provides insurance coverage in an amount not less than the minimum amount of coverage required by section 28-4009 and that either:

1. Recognizes that the vehicle insured under the policy is made available and used through a peer-to-peer car sharing program.

2. Does not exclude the use of a shared vehicle by a shared vehicle driver.

E. The insurance required by this section may be satisfied by motor vehicle liability insurance that is maintained by any of the following or a combination of all of the following:

1. A shared vehicle owner.

2. A shared vehicle driver.

3. A peer-to-peer car sharing program.

F. The insurance required pursuant to subsections D and E of this section is primary during each car sharing period.

G. The peer-to-peer car sharing program shall assume primary liability for a claim if all of the following occur:

1. The peer-to-peer car sharing program provides the insurance required by this section in whole or in part.

2. A dispute exists as to who was in control of the shared vehicle at the time of the loss.

3. The peer-to-peer car sharing program for any reason fails to provide the information required by section 28-9605.

H. If insurance is maintained by a shared vehicle owner or a shared vehicle driver pursuant to subsection E of this section and that insurance has lapsed or does not provide the required coverage:

1. Insurance that is maintained by a peer-to-peer car sharing program shall provide the coverage required by subsection D of this section beginning with the first dollar of a claim.

2. The peer-to-peer car sharing program has a duty to defend a claim except a claim to which subsection B of this section applies.

I. The shared vehicle's insurer shall indemnify the peer-to-peer car sharing program to the extent of its obligation, if any, under the applicable insurance policy if it is determined that the shared vehicle owner was in control of the shared vehicle at the time of the loss.

J. Coverage under a motor vehicle liability insurance policy that is maintained by a peer-to-peer car sharing program is not dependent on a motor vehicle liability insurer first denying a claim under any other motor vehicle insurance policy.

K. A peer-to-peer car sharing program may not:

1. Offer or sell insurance except in conjunction with and incidental to car sharing program agreements.

2. Advertise, represent or otherwise portray itself or any of its employees or agents as licensed insurers or insurance producers, unless the peer-to-peer car sharing program is a licensed insurer or insurance producer.

3. Pay a person any compensation, fee or commission that is dependent on the placement of insurance under a peer-to-peer car sharing program's license issued pursuant to title 20.

4. Make a car sharing program agreement contingent on the shared vehicle driver purchasing insurance through the peer-to-peer car sharing program.

L. Notwithstanding any other law, this chapter does not prohibit a peer-to-peer car sharing program from recovering its insurance costs incurred in satisfying its obligations pursuant to this section from a shared vehicle owner or shared vehicle driver.

M. Subsection K of this section does not prohibit production payments or incentive payments to an employee if the payments are not dependent on the sale of insurance.

N. This chapter does not limit either of the following:

1. The liability of the peer-to-peer car sharing program for any act or omission of the peer-to-peer car sharing program that results in injury to any person as a result of the use of a shared vehicle through a peer-to-peer car sharing program.

2. The ability of the peer-to-peer car sharing program to, by contract, seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the car sharing program agreement.

§ 28-9603 Notice to owner of vehicle with lien

After a vehicle owner registers as a shared vehicle owner on a peer-to-peer car sharing program and before the shared vehicle owner makes a shared vehicle available for car sharing on the peer-to-peer car sharing program, if there is a lien on the shared vehicle, the peer-to-peer car sharing program shall notify the shared vehicle owner of both of the following:

1. Using the shared vehicle through a peer-to-peer car sharing program might violate the terms of the shared vehicle owner's contract with the lienholder.

2. The contract with the lienholder might impose specific requirements for physical damage coverage.

§ 28-9604 Authorized insurer exclusions

A. An authorized insurer that writes motor vehicle liability insurance in this state may exclude any and all coverage and the duty to defend or indemnify any claim against a shared vehicle owner's personal motor vehicle liability insurance policy, including:

1. Bodily injury coverage.

2. Property damage coverage.

3. Uninsured motorist coverage.

4. Underinsured motorist coverage.

5. Medical payments coverage.

6. Comprehensive coverage.

7. Collision coverage.

B. This chapter does not invalidate or limit an exclusion contained in a motor vehicle liability insurance policy, including an insurance policy in use or approved for use that excludes coverage for vehicles made available for rent, sharing or hire or for any business use.

§ 28-9605 Shared vehicle records; retention

A peer-to-peer car sharing program shall collect and verify records relating to the use of a shared vehicle, including times used, fees paid by the shared vehicle driver and monies received by the shared vehicle owner, and shall provide that information on request to the shared vehicle owner, the shared vehicle owner's insurer or the shared vehicle driver's insurer to facilitate a claim coverage investigation. The peer-to-peer car sharing program shall retain these records for at least six years.

§ 28-9606 Vicarious liability exemption

A peer-to-peer car sharing program and a shared vehicle owner are exempt from vicarious liability consistent with 49 United States Code section 30106 and under any state or local law that imposes liability solely based on vehicle ownership.

§ 28-9607 Insurance claims; shared vehicles; indemnification

A motor vehicle insurer that defends or indemnifies a claim involving a shared vehicle that is excluded under the terms of the motor vehicle policy may seek contribution or indemnification from the motor vehicle insurer of the peer-to-peer car sharing program if the claim is both:

1. Made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing period.

2. Excluded under the terms of the motor vehicle policy.

§ 28-9608 Insurable interests

A. Notwithstanding any other law, a peer-to-peer car sharing program has an insurable interest in a shared vehicle during the car sharing period.

B. This section does not require a peer-to-peer car sharing program to maintain the insurance coverage required by section 28-9602.

C. A peer-to-peer car sharing program may purchase and maintain as the named insured one or more motor vehicle insurance policies that provide coverage for any of the following:

1. Liabilities assumed by the peer-to-peer car sharing program under a car sharing program agreement.

2. Any liability of the shared vehicle owner.

3. Damage or loss to the shared vehicle or for any liability of the shared vehicle driver.

§ 28-9609 Car sharing program agreement disclosures

Each car sharing program agreement made in this state shall disclose the following to the shared vehicle owner and the shared vehicle driver:

1. That the peer-to-peer car sharing program has a right to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the car sharing program agreement.

2. That a motor vehicle liability insurance policy issued to the shared vehicle owner for the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification for any claim asserted by the peer-to-peer car sharing program.

3. That the peer-to-peer car sharing program's insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during each car sharing period and that, for any use of the shared vehicle by the shared vehicle driver after the car sharing termination time, the shared vehicle driver and the shared vehicle owner might not have insurance coverage.

4. The daily rate, fees and insurance, if applicable, or protection package costs that are charged to the shared vehicle owner or the shared vehicle driver.

5. That the shared vehicle owner's motor vehicle liability insurance might not provide coverage for a shared vehicle.

6. An emergency telephone number for roadside assistance and other customer service inquiries.

7. Whether there are conditions that require a person to maintain a personal motor vehicle liability insurance policy with certain minimum applicable coverage limits on a primary basis in order for the person to become a shared vehicle driver.

8. That the shared vehicle owner's or the shared vehicle driver's motor vehicle liability insurance might already provide the coverage required by this chapter.

§ 28-9610 Car sharing program agreement; licensed driver; data retention

A. A peer-to-peer car sharing program may enter into a car sharing program agreement only if the driver who will operate the shared vehicle:

1. Holds a driver license issued by the department that authorizes the driver to operate the class of the shared vehicle.

2. Is a nonresident who both:

(a) Has a driver license issued by the state or country of the driver's residence that authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle.

(b) Is at least the same age as the age required of a resident to drive vehicles of the class of the shared vehicle.

3. Otherwise is specifically authorized by the department to drive vehicles of the class of the shared vehicle.

B. A peer-to-peer car sharing program shall keep a record of:

1. The name and address of each shared vehicle driver.

2. The driver license number of the shared vehicle driver.

3. The date and place of issuance of the shared vehicle driver's driver license.

§ 28-9611 Responsibility for equipment

A peer-to-peer car sharing program has sole responsibility for any equipment, including a global positioning system or other special equipment, that is put in or on a shared vehicle to monitor or facilitate the shared vehicle transaction and shall agree to indemnify and hold harmless the shared vehicle owner for any damage to or theft of the equipment during the car sharing period if the shared vehicle owner does not cause the damage or theft. The peer-to-peer car sharing program may seek indemnity from the shared vehicle driver for any loss or damage to the equipment that occurs during the car sharing period.

§ 28-9612 Safety recalls

A. After a vehicle owner becomes a shared vehicle owner on a peer-to-peer car sharing program and before the shared vehicle owner makes a shared vehicle available for peer-to-peer car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing program shall:

1. Verify that the shared vehicle does not have any safety recalls on the shared vehicle for which the repairs are not made.

2. Notify the shared vehicle owner of the requirements prescribed by subsections B, C and D of this section.

B. If a vehicle owner has received an actual notice of a safety recall on the owner's vehicle, the vehicle owner may not make the vehicle available as a shared vehicle until the safety recall repair is made.

C. If a shared vehicle owner receives a notice of a safety recall on the shared vehicle while the shared vehicle is made available on the peer-to-peer car sharing program, the shared vehicle owner shall remove the shared vehicle from availability on the peer-to-peer car sharing program as soon as practicable. The shared vehicle owner may not make the shared vehicle available on the peer-to-peer car sharing program until the safety recall repair is made.

D. If a shared vehicle owner receives a notice of a safety recall while the shared vehicle is in the possession of a shared vehicle driver, as soon as practicable, the shared vehicle owner shall notify the peer-to-peer car sharing program about the safety recall so that the shared vehicle owner may make the safety recall repair.

§ 28-9613 Peer-to-peer car sharing program; individual-owned shared vehicle

If the shared vehicle is an individual-owned shared vehicle, a peer-to-peer car sharing program is not either of the following:

1. In the business of leasing or renting for less than one year motor vehicles for hire without a driver as described in section 5-839, subsection C.

2. Subject to the surcharge collected pursuant to section 48-4234.

§ 28-9614 Public airports; shared vehicle transaction regulations

This chapter does not prohibit or restrict a public airport from implementing rules or licensing requirements or from assessing fees or charges that apply to shared vehicle transactions that either:

1. Are conducted at the public airport.

2. Use an off-airport shuttle service provider that contracts with the public airport in order to access the shared vehicle off of the public airport premises.

§ 28-9615 Motor vehicle manufacturers; licensed motor vehicle dealers; rights, obligations and limitations not expanded or restricted

This chapter does not expand or restrict in any manner the respective rights, obligations and limitations of motor vehicle manufacturers and licensed motor vehicle dealers as set forth in chapter 10, article 5 of this title.

§ 28-9616 Shared vehicle transactions; transaction privilege tax; exceptions; prohibition

A. A shared vehicle transaction is subject to the transaction privilege tax imposed pursuant to title 42, chapters 5 and 6.

B. A shared vehicle transaction is not subject to the rental vehicle surcharge established by section 28-5810.

C. A shared vehicle transaction is not subject to the surcharges established by sections 5-839 and 48-4234 if the shared vehicle owner certifies to the department of revenue, on a form prescribed by the department, that the shared vehicle is an individual-owned shared vehicle. The shared vehicle owner's certification is required only once for the duration of the time that the shared vehicle owner owns the shared vehicle. The department of revenue shall verify that the vehicle is an individual-owned shared vehicle by determining whether transaction privilege or use tax was paid for the acquisition of the vehicle.

D. A peer-to-peer car sharing program that accepts payment for a shared vehicle transaction in this state is subject to title 42, chapter 5 shall pay the taxes levied under title 42, chapters 5 and 6.

E. A peer-to-peer car sharing program may rely in good faith on the shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the department of revenue pursuant to subsection C of this section. If the peer-to-peer car sharing program relies in good faith on the shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the department of revenue, the peer-to-peer car sharing program is not liable for any tax, penalty, fee or other sanction imposed on the shared vehicle owner.

F.  Except as provided in section 28-9614 and this section, a county, city, town or political subdivision of this state may not impose any additional taxes, fees or charges on the gross proceeds or gross income of a shared vehicle transaction that is not imposed on every other transaction involving motor vehicles for hire without a driver by that jurisdiction.

Chapter 32 Autonomous Vehicles

Article 1 General Provisions

§ 28-9701 Definitions

In this chapter, unless the context otherwise requires:

1. "On-demand autonomous vehicle network" means a passenger transportation network that uses a digital network or software application to connect passengers to fully autonomous vehicles for transportation, exclusively or in addition to other vehicles, including transportation for hire and transportation for compensation.

2. "Request to intervene" means a notification by an automated driving system to a human driver that the human driver should promptly begin or resume performance of part or all of the dynamic driving task.

§ 28-9702 Operation of autonomous vehicles

A. Except as otherwise provided in this chapter, the operation of autonomous vehicles with or without a human driver is subject to all applicable federal and state laws.

B. A person may operate an autonomous vehicle with the automated driving system engaged on public roads in this state with a licensed human driver who is able to resume part or all of the dynamic driving task or respond to a request to intervene, if any.

C. A fully autonomous vehicle may operate on public roads without a human driver only if a person submits both:

1. A law enforcement interaction plan to the department of transportation and the department of public safety that is consistent with and addresses all of the elements in the law enforcement protocol that was issued by the department of public safety on May 14, 2018, before beginning the operation or if the operation has already begun, within sixty days after September 29, 2021.

2. A written statement to the department of transportation acknowledging all of the following:

(a) When required by federal law, the fully autonomous vehicle is equipped with an automated driving system that is in compliance with all applicable federal laws and federal motor vehicle safety standards and bears the required certification labels including reference to any exemption granted by the national highway traffic safety administration under applicable federal law.

(b) If a failure of the automated driving system occurs that renders that system unable to perform the entire dynamic driving task relevant to its intended operational design domain, the fully autonomous vehicle will achieve a minimal risk condition.

(c) The fully autonomous vehicle is capable of complying with all applicable traffic and motor vehicle safety laws of this state and the person who submits the written statement for the fully autonomous vehicle may be issued a traffic citation or other applicable penalty if the vehicle fails to comply with traffic or motor vehicle laws.

(d) The fully autonomous vehicle meets all applicable certificate of title, registration, licensing and insurance requirements of this title.

D. If a person fails to submit a law enforcement interaction plan or statement prescribed by subsection C of this section, the department may immediately issue a cease and desist letter prohibiting the operation of a fully autonomous vehicle on public roads of this state until the person submits the law enforcement interaction plan and statement.

E. When engaged, the automated driving system is considered the driver or operator of the autonomous vehicle for the purpose of assessing compliance with applicable traffic or motor vehicle laws and is both:

1. Deemed to satisfy electronically all physical acts required by a driver or operator of the vehicle.

2. Exempt from the requirements of chapter 8 of this title.

F. Notwithstanding any other law, a licensed human driver is not required to operate a fully autonomous vehicle that is operated in compliance with this chapter.

G. This chapter does not prohibit or restrict a licensed human driver from driving a fully autonomous vehicle equipped with controls that allow for the human driver to control all or part of the dynamic driving task.

§ 28-9703 Department of public safety; law enforcement protocols; law enforcement interaction plan

The department of public safety, in coordination with other relevant law enforcement agencies, shall maintain a law enforcement protocol for fully autonomous vehicles. The protocol shall include guidelines for persons who operate fully autonomous vehicles to provide information to law enforcement agencies and other first responders on how to interact with fully autonomous vehicles in emergency and traffic enforcement situations, including how to provide contact information for insurance and citation purposes and any other information needed to ensure the safe operation of fully autonomous vehicles in this state. The department of public safety may issue a revised law enforcement protocol after providing advance notice to and an opportunity for comment from persons that have submitted statements pursuant to section 28-9702, subsection C, paragraph 2.

§ 28-9704 On-demand autonomous vehicle networks

An on-demand autonomous vehicle network may operate pursuant to chapter 30, article 3 of this title except that any provision of chapter 30, article 3 of this title that by its nature reasonably applies only to a human driver does not apply to a fully autonomous vehicle operating with the automated driving system engaged while logged on to an on-demand autonomous vehicle network.

§ 28-9705 Commercial motor vehicles

A fully autonomous vehicle that is also a commercial motor vehicle as defined in section 28-5201 may operate pursuant to state laws governing the operation of commercial motor vehicles, except that any provision that by its nature reasonably applies only to a human driver does not apply to a fully autonomous commercial motor vehicle operating with the automated driving system engaged.

§ 28-9706 Autonomous vehicles; fees prohibited; exceptions; enforcement

A. A county, city or town may not impose any tax, fee, for-hire vehicle requirement or other requirement on automated driving systems or autonomous vehicles or on a person who operates an autonomous vehicle, including a person who operates an autonomous vehicle for purposes of providing passenger transportation, freight transportation, goods delivery services or an on-demand autonomous vehicle network.

B. Subsection A of this section does not prohibit either:

1. An airport operator that operates a public airport pursuant to section 28-8421, 28-8423 or 28-8424 or a public body operating a public airport from charging reasonable fees consistent with any fees charged to companies that provide similar services at that airport for their use of the airport's facilities.

2. An airport from designating locations for staging, pickup or other similar operations at the airport.

C. The department of transportation and the department of public safety are the only state agencies that may implement or enforce this chapter, except that neither agency may prescribe procedures or rules that are unreasonable or unduly burdensome.

§ 28-9707 Traffic or motor vehicle laws; autonomous vehicles

Except as otherwise provided by this chapter, a traffic or motor vehicle law of this state may not prohibit the operation of an autonomous vehicle or require a human driver to operate a fully autonomous vehicle with the automated driving system engaged, if the fully autonomous vehicle is operated in compliance with this chapter.

§ 28-9708 Enforcement

A. Except as provided in section 28-9702 and subsection G of this section, this section provides the exclusive means by which the department may:

1. Suspend, revoke or cancel the registration of an autonomous vehicle for reasons related to safety.

2. Otherwise restrict the operation of an autonomous vehicle for reasons related to safety.

B. If the department has information, data or other evidence indicating that an autonomous vehicle is likely not in safe mechanical condition and likely to endanger persons on the highway, the department may issue a request for relevant information to the owner and the person who submitted the statement required by section 28-9702 for the autonomous vehicle.

C. The owner or the person who submitted the statement required by 28-9702 shall respond to a request for information submitted under subsection B of this section within a reasonable time specified by the department. The response may be in the form of documents, a meeting with the department, a demonstration or any other reasonable form or combination of forms.

D. After considering and evaluating all responses provided pursuant to subsections B and C of this section, if the department determines based on data, information or other evidence that an autonomous vehicle is not in safe mechanical condition and endangers persons on the highway, the department may send the vehicle owner and the person who submitted the statement required by section 28-9702 for the autonomous vehicle a notice of intent to suspend the registration or impose restrictions on the operation of the autonomous vehicle. The notice shall include:

1. A description of the department's reasons and evidence supporting the determination.

2. A statement that a certification of correction or adjustment shall be submitted within a specified time and that the certification shall include an explanation of how the issues identified by the department in the notice have been addressed, such as identifying adjustments made to the automated driving system or operational measures implemented.

E. If the owner or person who submitted the statement required by section 28-9702 for the autonomous vehicle that is the subject of a notice of intent to suspend or restrict operation fails to submit the certification required by subsection D of this section within the time specified or the department finds that the certification is not true and accurate, the department shall notify the person and owner that the registration for that autonomous vehicle has been suspended or restricted as specified in the notice. If the person or owner later submits the required certification, the department shall remove the suspension or restriction on receipt of the certification.

F. A person who disputes the department's finding may request a hearing within ten days after the date of the notice of intent to suspend or restrict operation issued under subsection D of this section. A hearing requested under this subsection shall be held not more than sixty days after the submission of a request for a hearing. A decision to uphold the determination of the department is subject to judicial review pursuant to title 12, chapter 7, article 6.

G. This section does not apply to a vehicle that is subject to chapter 14 of this title and does not affect the applicability or enforcement of chapter 14 of this title or federal laws applicable to commercial motor vehicles as defined in 28-5201.