Chapter 0248 - 571R - S Ver of SB1750

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-472, Arizona Revised Statutes, is amended to read:

START_STATUTE28-472. Fleet operation services; records; rules; vehicle replacement rate; participating agencies; coordinator; public service announcements; annual report

A. The director shall operate the state motor vehicle fleet for the purpose of providing fleet operation services to agencies. The director shall make fleet operation services available to an agency on the request of the chosen representative for that agency.

B. The director is responsible for administering the state motor vehicle fleet, including:

1. Procuring motor vehicles for the state motor vehicle fleet.

2. Notwithstanding title 41, chapter 23, article 8, administering the surplus and sale of motor vehicles in the state motor vehicle fleet.

C. The director shall provide for detailed cost, operation, maintenance, mileage and custody records for each state-owned motor vehicle.

D. The director may adopt rules necessary to administer this article.

E. The department shall recover all costs for fleet operation services that are provided to an agency. Each agency shall pay from available monies the cost of fleet operation services received from the department at a rate determined by the director, including a separate vehicle replacement rate for motor vehicle replacements. The director shall deposit, pursuant to sections 35-146 and 35-147, monies received for fleet operation services in the state fleet operations fund established by section 28-475. The director shall deposit, pursuant to sections 35-146 and 35-147, monies received to pay the vehicle replacement rate in the state vehicle replacement fund established by section 28-476.

F. The following agencies are excluded from participation in the state motor vehicle fleet:

1. The department of public safety.

2. The department of economic security.

3. The state department of corrections.

4. Universities and community colleges.

5. The cotton research and protection council.

6. The Arizona commerce authority.

7. The department of child safety.

8. 7. The department of transportation.

G. The director shall appoint a state motor vehicle fleet coordinator.

H. An agency may not purchase, lease or rent a motor vehicle unless the agency is excluded from participation in the state motor vehicle fleet by subsection F of this section. The director may withhold registration for any motor vehicle that is purchased, leased or rented in violation of this subsection.

I. Notwithstanding subsection H of this section, an agency that administers a separate account pursuant to section 28-476, subsection C shall control the purchase, lease or rental of motor vehicles. Vehicles purchased, leased or rented under this subsection shall be used by the agency only for the agency's purposes.

J. An agency listed in subsection F of this section may elect to participate in the state motor vehicle fleet by executing an interagency service agreement between the agency and the department.

K. A governmental budget unit of this state that is not an agency may elect to participate in the state motor vehicle fleet by entering into an interagency service agreement with the department.

L. An agency, including an agency listed in subsection F of this section, may accept compensation for placing public service announcements on state-owned motor vehicles, and monies received shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. The agency director shall determine the appropriateness of the announcements, may exempt any motor vehicles that are not suitable for advertising and may contract with private parties to design and place the announcements.

M. On or before October 1 of each year, the department shall submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report that accounts for all monies deposited in the state fleet operations fund established by section 28-475 and the state vehicle replacement fund established by section 28-476, including any monies allocated to separate agency accounts. The report shall also include the number of motor vehicles that were replaced in the prior fiscal year, the number of motor vehicles at each agency, the replacement life cycle for each motor vehicle and the number of motor vehicles the department identifies as not requiring replacement. END_STATUTE

Sec. 2. Title 28, chapter 20, article 4, Arizona Revised Statutes, is amended by adding section 28-7011, to read:

START_STATUTE28-7011. Statewide infrastructure trust fund; definition

A. The statewide infrastructure trust fund is established. The state treasurer shall administer the fund. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 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. The fund consists of the following:

1. Monies appropriated by the legislature.

2. Any nonfederal gifts, grants, donations or other monies RECEIVED by the state treasurer from any public or private source for transportation projects.

B. the Monies in the fund shall be used to fund any phase of development or construction of transportation projects in the current fiscal year or next fiscal year.

C. Before any expenditure is made from the fund, the state treasurer and the department shall submit an expenditure plan for review to the joint committee on CAPITAL review.

d. For the purposes of this section, "transportation project" means any project that constructs a new federal or state highway or makes IMPROVEMENTS to any EXISTING federal or state highway.END_STATUTE

Sec. 3. Title 28, chapter 25, article 9, Arizona Revised Statutes, as added by Laws 2025, chapter 185, section 1, is amended by adding section 28-8604, to read:

START_STATUTE28-8604. Advanced air mobility fund

A. The advanced air mobility fund is established. The state treasurer shall administer the fund. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 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. The fund consists of the following:

1. Monies appropriated by the Legislature.

2. Any nonfederal gifts, grants, donations or other monies RECEIVED by the state treasurer from any public or private source for transportation projects.

B. The monies in the fund shall be used to:

1. Purchase advanced air mobility vehicles that are capable of carrying passengers or cargo for testing and demonstration purposes of the ability to use the advanced air mobility vehicles.

2. Construct vertiports.

C. Before any expenditure is made from the fund, the state treasurer and the department shall submit an expenditure plan for review to the joint committee on CAPITAL review. END_STATUTE

Sec. 4. Title 28, chapter 30, Arizona Revised Statutes, is amended by adding article 4, to read:

ARTICLE 4. TRANSPORTATION INNOVATION

START_STATUTE28-9571. Statewide transportation innovation fund

A. The statewide transportation innovation fund is established. The state treasurer shall administer the fund. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 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. The fund consists of the following:

1. Monies appropriated by the legislature.

2. Any nonfederal gifts, grants, donations or other monies RECEIVED by the state treasurer from any public or private source for transportation projects.

B. the monies in the fund shall be used for:

1. Grants to for-profit and nonprofit entities to provide a TRANSPORTATION innovation program in this state as prescribed by section 28-9572.

2. EQUIPMENT purchases, Driver salaries, insurance costs and payment of other costs directly related to the implementation of an innovation transportation plan. END_STATUTE

START_STATUTE28-9572. Statewide transportation innovation program; grantee requirements

A. the State treasurer shall administer The statewide transportation innovation program that consists of grant recipients AUTHORIZED pursuant to section 28-9571.

b. A grant applicant must:

1. be able to provide a mode of transportation that seats fifteen or fewer passengers.

2. Include manually driven or autonomous vehicles.

3. allow for dropping off and picking up passengers using predetermined locations.

4. Include in the grant application:

(a) an implementation plan.

(b) the service area within which the grant applicant will operate.

(d) the number of available vehicles.

(e) Other information as determined by the department.

c. The State treasurer shall report all applications that are RECEIVED for the TRANSPORTATION innovation program to the chairpersons of the senate and house of representatives transportation committees, or their successor committees.

d. At the request of the chairpersons of the senate and house of representatives transportation committees, or their successor committees, the State treasurer shall hold a public meeting to review grant applications and receive a legislative RECOMMENDATION. All information in the applications reviewed at the meeting shall remain confidential. END_STATUTE