ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: APPROP DP 8-2-0-0 | 3rd Read DPA: 17-13-0-0

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


SB 1750: transportation; 2025-2026

Sponsor: Senator Kavanagh (with permission of committee on Rules), LD 3

Caucus & COW

Overview

Contains provisions relating to transportation needed to implement the FY 2026 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.

Provisions

Statewide Infrastructure Trust Fund (Sec. 2)

1.   Establishes the Statewide Infrastructure Trust Fund (Trust Fund).

2.   Tasks the State Treasurer with administering the Trust Fund.

3.   Subjects Trust Fund monies to legislative appropriation and exempts the monies from lapsing.

4.   Requires the State Treasurer to invest and divest Trust Fund monies and requires monies earned from investment to be credited to the Trust Fund.

5.   States that Trust Fund monies consist of monies appropriated by the legislature and any nonfederal gifts, grants, donations or other monies received by the State Treasurer from any public or private source for transportation projects.

6.   Mandates that Trust Fund monies must be used to fund any phase of development or construction of transportation projects in the current fiscal year or next fiscal year.

7.   Directs the State Treasurer and the Arizona Department of Transportation (ADOT) to submit an expenditure plan for review to the Joint Committee on Capital Review (JCCR) before any expenditure is made from the Trust Fund.

8.   Defines transportation project as any project that constructs a new federal or state highway or makes improvements to existing federal or state highway.

Advanced Air Mobility Fund (Sec. 3)

9.   Establishes the Advanced Air Mobility Fund (Air Fund).

10.  Tasks the State Treasurer with administering the Air Fund.

11.  Subjects Air Fund monies to legislative appropriation and exempts the monies from lapsing.

12.  Requires the State Treasurer to invest and divest Air Fund monies and requires monies earned from investment to be credited to the Air Fund.

13.  Stipulates that Air Fund monies consist of monies appropriated by the legislature and any nonfederal gifts, grants, donations or other monies received by the State Treasurer from any public or private source for transportation projects.

14.  Asserts that Air Fund monies must be used to construct vertiports and purchase advanced air mobility (AAM) vehicles capable of carrying passengers or cargo for testing and demonstration purposes of the ability to use AAM vehicles.

15.  Directs the State Treasurer and ADOT to submit an expenditure plan for review to JCCR before any expenditure is made from the Air Fund.

Statewide Transportation Innovation Fund and Program (Sec. 4)

16.  Establishes the Statewide Transportation Innovation Fund (Innovation Fund).

17.  Tasks the State Treasurer with administering the Innovation Fund.

18.  Subjects Innovation Fund monies to legislative appropriation and exempts the monies from lapsing.

19.  Requires the State Treasurer to invest and divest Innovation Fund monies and requires monies earned from investment to be credited to the Innovation Fund.

20.  States that Innovation Fund monies consist of monies appropriated by the legislature and any nonfederal gifts, grants, donations or other monies received by the State Treasurer from any public or private source for transportation projects.

21.  Mandates that Innovation Fund monies must be used for grants to for-profit and nonprofit entities to provide a transportation innovation program in this state as prescribed and for purchasing equipment, driver salary, insurance costs and payment of other costs directly related to the implementation of an innovation transportation plan.

22.  Requires the State Treasurer to administer the Statewide Transportation Innovation Program (Innovation Program) that consists of grant recipients authorized as prescribed.

23.  Directs a grant applicant to:

a)   be able to provide a mode of transportation that seats 15 or fewer passengers;

b)   include manually driven or autonomous vehicles;

c) allow for dropping off and picking up passengers using predetermined locations;

d)   include in the grant application:

i. an implementation plan;

ii.   the service area within which the grant applicant will operate;

iii.  the cost to the passenger;

iv. the number of available vehicles; and

v.   other information as determined by ADOT.

24.  Tasks the State Treasurer with reporting all applications received for the Innovation Program to the chairpersons of the Senate and House of Representatives Transportation committees or their successor committees.

25.  Requires the State Treasurer to hold a public meeting to review grant applications and receive a legislative recommendation at the request of the chairpersons of the Senate and House of Representations transportation committees or their successor committees.

26.  Stipulates that all information in the applications reviewed at the meeting must remain confidential.

Miscellaneous

27.  Removes the Arizona Department of Child Safety from the list of agencies excluded from participation in the state motor vehicle fleet. (Sec. 1)

28.  Makes conforming changes. (Sec. 1)

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32.                    SB 1750

33.  Initials LM           Page 0 Caucus & COW

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