Ariz. Rev. Stat. § 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. 1. Document all revenue sources, including fares and funding generated from section 42-6105.01.
2. 2. Determine a farebox recovery ratio calculated by the percentage of operating expenses paid for by fares as a measure of cost efficiency.
3. 3. Detail the farebox recovery ratio for the entire regional public transportation system and by jurisdiction.
4. 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. 1. In fiscal year 2026-2027 through fiscal year 2027-2028, ten percent.
2. 2. In fiscal year 2028-2029 through fiscal year 2030-2031, fifteen percent.
3. 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.