Ariz. Admin. Code § R17-1-708 - Program Administration; Pricing and Lease Procedures; Priority; Renewal

A. For administration of the Department's advertising and sponsorship program, the Department or its contractor may use:

1. Rate schedules that are established and periodically adjusted by the Department; or

2. Competitive pricing established by one or more offers from potential or current advertisers or sponsors.

B. The Department or its contractor may use competitive pricing or rate schedules to determine the ranking order of potential or current advertisers or sponsors who may be awarded advertising and sponsorship opportunities at specific locations authorized by the Department for such activities.

C. In determining competitive pricing and rate schedules, the Department may consider the amount of space available for advertising and sponsorship activities, and one or more of the following additional factors:

1. The average annual daily traffic at, or adjacent to, the location of the Department's available asset or facility;

2. The population mix and relative distribution between all other advertisers or sponsors that meet all of the Department's advertising and sponsorship program requirements;

3. The ranking order determined by the Department or its contractor based on existing rate schedules or competitive pricing proposed or offered by potential or current advertisers or sponsors for each Department authorized location; or

4. The competitive market conditions, as well as economic, regulatory, logistical, and other related factors as determined by the Department or its contractor.

D. If any of the factors provided under subsection (C) are used in determining competitive pricing or rate schedules, the Department or its contractor shall make the information relevant to these factors available to advertisers and sponsors on the Department's or its contractor's website.

E. If a clear ranking order of preference for awarding a specific location cannot be determined using the factors provided under subsection (C), the Department or its contractor shall prioritize the remaining requests for advertising or sponsorship opportunities based on the following additional factors, in order:

1. The advertiser or sponsor having the closest business location to the Department facility or asset location requested;

2. The advertiser or sponsor providing the most business days and hours of service to the public; and

3. The advertiser or sponsor first requesting authorization to place advertising or sponsorship content on the Department authorized facility or asset at that location.

F. If a potential advertiser or sponsor requests placement of advertising or sponsorship content on a specific Department facility or asset where there are no available placements, a competitive bidding process may be used to determine which potential advertiser will participate, assuming the Department determines in its sole discretion that the location may be made available for advertising or sponsorship.

G. The Department or its contractor may choose not to renew an existing advertising or sponsorship agreement, or an advertising or sponsorship agreement expiring within the next 60 calendar days, if another eligible advertiser or sponsor with a higher priority ranking requests placement of advertising or sponsorship content at that same location.

H. The Department or its contractor may collect all applicable taxes due from an advertiser or sponsor under the advertising or sponsorship agreement.

I. An advertiser or sponsor may request reimbursement of any pre-paid lease payments if, for a reason solely caused by the Department or its contractor, the Department or its contractor does not install the advertiser's or sponsor's content or copy within 90 calendar days after receiving the pre-paid lease payments.

J. The Department or its contractor shall refund any pre-paid lease payments to an advertiser or sponsor within 30 calendar days after the advertiser or sponsor requests reimbursement under subsection (I).

K. The Department may require an advertiser or sponsor who requests reimbursement of pre-paid lease payments to provide additional information if required by the State of Arizona for processing a refund.

Notes

Ariz. Admin. Code § R17-1-708

Adopted by final rulemaking at 24 A.A.R. 657, effective 5/7/2018.