A. The automobile theft authority is established in the department of insurance and financial institutions consisting of the following members:

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1. Two police chiefs who are appointed by an Arizona association of chiefs of police, one of whom represents a city or town with a population of one hundred thousand or more persons and one of whom represents a city or town with a population of less than one hundred thousand persons, or their designees.

2. Two sheriffs who are appointed by an Arizona sheriffs association, one of whom represents a county with a population of five hundred thousand or more persons and one of whom represents a county with a population of less than five hundred thousand persons, or their designees.

3. Two county attorneys who are appointed by the governor, one of whom represents a county with a population of two million or more persons and one of whom represents a county with a population of less than two million persons, or their designees.

4. Two employees of insurers who are licensed to write motor vehicle liability insurance in this state and who are appointed by the governor.

5. Two members of the general public who are appointed by the governor.

6. The assistant director for the motor vehicle division in the department of transportation or the assistant director’s designee.

7. The director of the department of public safety or the director’s designee.

B. Members serve staggered four-year terms beginning and ending on the third Monday in January. At the first meeting each year, the members shall select a chairman from among the members. The authority shall meet at the call of the chairman or seven members.

C. The authority may:

1. Subject to chapter 4, article 4 of this title, hire staff members as necessary.

2. Provide work facilities and equipment as necessary.

3. Determine the scope of the problem of motor vehicle theft, including particular areas of the state where the problem is greatest.

4. Analyze the various methods of combating the problem of motor vehicle theft.

5. Develop and implement a plan of operation.

6. Develop and implement a financial plan.

7. Solicit and accept gifts and grants.

8. Report by December 31 of each year to the governor, the president of the senate, the speaker of the house of representatives and the secretary of state on its activities during the preceding fiscal year.

D. If the chairman of the authority knows that a potential ground for the removal of a member of the authority exists under this subsection, the chairman shall notify the governor. The governor shall remove the member if the governor finds that any of the following applies:

1. The member was not qualified to serve at the time the member was appointed.

2. The member does not maintain the member’s qualifications to serve.

3. The member cannot discharge the member’s duties for a substantial part of the term due to illness or other disability.

4. The member is absent from more than one-half of the regularly scheduled meetings during a calendar year unless the member’s absence is excused by a majority vote of the authority.

E. The automobile theft authority fund is established consisting of monies deposited pursuant to section 28-2098 and any public or private monies that the authority may receive. The automobile theft authority shall make grants awarded from the fund. Subject to legislative appropriation, monies in the fund shall be used only to pay the administrative expenses of the authority to make grant awards and to carry out the purposes of this section. Monies in the fund are exempt from the provisions of sections 35-143.01 and 35-190 relating to lapsing of appropriations. On notice from the authority, 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. All monies appropriated to the department for the automobile theft authority shall be used by the department exclusively for the operation of the automobile theft authority. Monies appropriated from the fund that are included in the general appropriations act shall be included within the following separate line items:

1. Automobile theft authority operating lump sum appropriation.

2. Arizona vehicle theft task force.

3. Local grants.

F. The authority may accept nonmonetary contributions, including the services of individuals, office and secretarial assistance, mailings, printing, office equipment, facilities and supplies, that are necessary to carry out its functions. The nonmonetary contributions shall not be included in the costs of administration limitation prescribed by subsection H of this section.

G. The automobile theft authority shall allocate monies in the fund to public agencies for the purpose of establishing, maintaining and supporting programs that are designed to prevent motor vehicle theft, including:

1. Financial support to law enforcement and prosecution agencies for programs that are designed to increase the effectiveness of motor vehicle theft prosecution.

2. Financial support for programs that are designed to educate and assist the public in the prevention of motor vehicle theft.

H. Pursuant to section 20-466, subsection A, the director of the department of insurance and financial institutions shall appoint an individual to operate the automobile theft authority in conjunction with operating the fraud unit established by section 20-466. Subject to generally applicable department standards and procedures, the department of insurance and financial institutions shall provide all administrative support for the authority. The costs of administration shall not exceed ten percent of the monies in the fund in any one year so that the greatest possible portion of the monies available to the authority is expended on combating motor vehicle theft.

I. Monies expended from the automobile theft authority fund shall be used to supplement, not supplant, other monies that are available for motor vehicle theft prevention.

J. Each insurer issuing motor vehicle liability insurance policies in this state shall pay a semiannual fee of $.50 per vehicle insured under a motor vehicle liability insurance policy issued by the insurer. The fee shall be fully earned and nonrefundable at the time the insurer collects the premium for the motor vehicle liability insurance policy. Each insurer shall transmit the fee on or before January 31 and on or before July 31 of each year to the automobile theft authority for deposit in the automobile theft authority fund. The payment due on or before January 31 shall cover vehicles insured under policies that are issued during the period from July 1 through December 31 of the previous year. The payment due on or before July 31 shall cover vehicles insured under policies that are issued during the period from January 1 through June 30 of the same year.

K. The authority shall cause an audit to be made of the automobile theft authority fund. The audit shall be conducted by a certified public accountant every two years. The authority shall file a certified copy of the audit with the auditor general immediately. The auditor general may make further audits and examinations as the auditor general deems necessary and may take appropriate action relating to the audit pursuant to chapter 7, article 10.1 of this title.

L. Authority members are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to Title 38, Chapter 4, Article 2.

M. This section does not apply to vehicles or vehicle combinations with a declared gross weight of more than twenty-six thousand pounds. Motor vehicle liability insurance policies issued in this state for vehicles or vehicle combinations with a declared gross weight of more than twenty-six thousand pounds are exempt from subsection J of this section.