Blog
Arizona Public Safety Fee
- By: Shannon Davison
- On: 05/30/2019 15:34:31
- In: Legislative Bulletins
TRALA is pleased to report that the state of Arizona has repealed its Public Safety Fee, which TRALA had actively opposed. In the state's recent budget agreement, the legislature included a two-year phase-out of the $32 Public Safety registration fee which was burdensome for fleets based in or operating in Arizona. TRALA and its allies have been working to repeal this fee since it was formally proposed last winter.
On April 25, 2018, the Arizona legislature passed House Bill 2166 which authorized the Motor Vehicle Division (MVD) to collect a fee of an unspecified amount to support the Arizona Department of Public Safety Highway Patrol. On November 29, 2018, the Arizona Department of Transportation (ADOT) announced that any vehicle registered in the state of Arizona would be subject to a $32 registration fee. This fee, which was known as the Public Safety Fee, provided direct funding for Arizona's public safety officers as a way to free up gas tax revenue for the states infrastructure.
Unfortunately, when the ADOT released their proposal for the Public Safety Fee they failed to take into account the International Registration Plan (IRP), and did not apportion this fee. By not apportioning the fee, Arizona was punishing local fleets and losing out on revenue from non-Arizona trucks operating across the state. Once the proposed regulation was introduced, TRALA, along with several of its partners in the Arizona, contacted Governor Doug Ducey's office, as well as people within ADOT, and encouraged them to apportion and possibly cap the fee. In December 2018, ADOT announced that it had amended its proposal for the Public Safety Fee and that it would apportion the fee through the IRP. TRALA understood that the $32 Public Safety Fee, even apportioned, would still be financially burdensome for its members so TRALA continued to push for the fee's repeal.
In January 2019, Arizona State Senator Michelle Ugenti-Rita (R) introduced Senate Bill 1001 which repealed the $32 Public Safety Fee and required the funding of the public safety trust fund to come from the appropriations process. Senate Bill 1001 swiftly passed out of the Senate and was sent to the House where the process slowed. TRALA remained engaged on the legislation, however all indications were that the House would not pass the bill, and that the Governor remained opposed to the full repeal of the Public Safety Fee. During negotiations for the Fiscal Year 2020 Budget, Senator Ugenti-Rita indicated that she would not support the final budget unless the Public Safety Fee was repealed. In negotiations with the governor and House and Senate leaders it was agreed upon that the budget would include a two year phase-out of the Public Safety Fee. The final $11.8 million budget passed out of the legislature on May 28, 2019 and it is expected to be signed by the Governor soon. TRALA is pleased that the legislature ultimately decided to repeal this fee, and it will continue to monitor how the final repeal process is implemented.
If you have any questions or concerns about Arizona's Public Safety Fee please contact Andrew Stasiowski at astasiowski@trala.org or Elizabeth Hyers at ehyers@trala.org or by calling (703)299-9120.