Hello all,

The Legislature continues to wrestle with the continuation of ADOT. As what periodically occurs with all state agencies, ADOT underwent a "sunset" review this year and legislation is now required to continue the Department after June 30 of this year (just over three months from now!).

We have two competing versions of that continuation. HB2037 passed the House by a 41-18 margin providing an eight-year extension which is consistent with the current authorized duration of the Department. The bill is also "clean" as far as not tacking on any prohibitions or requirements to ADOT programming and planning.

The Senate version, SB1184, started out as a four-year continuation with numerous prohibitions and restrictions on ADOT. The bill was amended by the full Senate and passed that chamber with a 17-11 vote last week. Under the amended version, the length of the continuation is dependent on the level of implementation reached by ADOT in complying with the recommendations contained in the Auditor General's report released in August as part of ADOT's "sunset" review. Under the bill, the Auditor General will be required to conduct and release a follow up report by February, 2025, and the level of implementation as determined by that report will dictate the length of ADOT's continuation, ranging from 5 to 8 years.

The amended version removed some of the earlier prohibitions including ADOT's involvement in the planning and development of passenger light rail between Phoenix and Tucson and reducing lane miles on state highways.

The amended bill does: prohibit ADOT from spending resources on electric vehicle charging stations for public use; participating in equity programs based on race, ethnicity, or sex; and developing greenhouse gas or carbon reduction plans unless necessary to accept federal monies and not unless the measures developed thru such planning have express legislative authority.

Legislative leadership and the Governor will likely need to intervene to reconcile the differences between the two versions. RTAC continues to support a longer-term, "clean" continuation of ADOT.

Arizona has failed to increase or modernize the revenue streams that help pay for our transportation infrastructure for over thirty years. As a result, we have become increasingly dependent on federal dollars which now dominate the funding of the state's highway construction program. The restrictions included in the Senate bill seem to be directed at opposition to federal transportation laws and programs. The reality is if you are going to depend on federal money you need to comply with the federal requirements that come along with it.

In other transportation news:

SB1054, which extends for another five years the use of alternative project delivery methods such as Construction-Manager-At-Risk and Design-Build, passed the Senate 27-0 and also passed the House Transportation & Infrastructure Committee by a 10-0 vote last week. The bill is very near a final vote by the House which would send it to the Governor.

HB2866 which would assess an annual $135 fee for alternative fuel vehicles (excluding hybrids), failed in the House by a 35-24 vote. As the bill would have raised state revenues, it required a two-thirds majority vote by both chambers which equates to 40 votes in the House.

HB2318, the RTAC-led bill to reform the Arizona SMART Fund passed the House 57-1 and also passed the Senate Transportation, Technology and Missing Children Committee by a 4-2 vote last week. The bill is very near a final vote by the Senate which would send it to the Governor.

HB2412, the RTAC priority project legislation passed out of the House Transportation and Infrastructure Committee with a convincing 9-1 vote very early in the session and is ready to be considered by the House Appropriations Committee. As with other "money" bills (those seeking state funding), the state's budget outlook will greatly influence their outcomes. Unfortunately, a deficit is anticipated for at least the next two years, not a good scenario for pursuing funding. However, pushing for legislation like HB2412 remains important even in lean years so that the massive level of transportation under-investment and its impacts remain highly visible and a part of the agenda at the Capitol.

An updated transportation bill matrix is attached:

2024 RTAC Transportation Bill Matrix March 18