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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
transportation; 2025-2026
Purpose
Makes statutory and session law changes relating to transportation necessary to implement the FY 2026 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1750 contains the budget reconciliation provisions for changes relating to transportation.
Provisions
Statewide Transportation Innovation Program (Program)
1. Establishes the Statewide Transportation Innovation Fund which is to be administered by the State Treasurer.
3. Specifies that the Statewide Transportation Innovation Fund consists of:
a) monies appropriated by the Legislature; and
b) any nonfederal gifts, grants, donations or other monies received from any public or private source for transportation projects.
4. Requires Statewide Transportation Innovation Fund monies to be used for:
a) grants to for profit and nonprofit entities to provide a Statewide Transportation Innovation Program in the State of Arizona; and
b) purchasing equipment, driver salary, insurance costs and payment of other costs directly.
5. Subjects the Statewide Transportation Innovation Fund to legislative appropriation.
6. Exempts Statewide Transportation Innovation Fund monies from lapsing.
7. Requires the Arizona Department of Transportation (ADOT) to administer the Program that consists of prescribed grant recipients and costs related to the implementation of an innovation transportation plan.
8. Requires a Program 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; and
c) allow for dropping off and picking up passengers using predetermined locations.
9. Requires a Program grant application to include:
a) an implementation plan;
b) the service area within which the grant applicant will operate;
c) the cost to the passengers;
d) the number of available vehicles; and
e) other information as determined by ADOT.
10. Requires ADOT to report all applications that are received for the Program to the Chairpersons of the Senate and House of Representatives Transportation Committees or their successor committees.
11. Requires ADOT to hold a public meeting to review Program grant applications and receive a legislative recommendation at the request of the Chairpersons of the Senate and House of Representatives Transportation Committees or their successor committees.
12. Stipulates that all information in the Program applications reviewed at the meeting must remain confidential.
Statewide Infrastructure Trust Fund
13. Establishes the Statewide Infrastructure Trust Fund which is to be administered by the State Treasurer.
15. Specifies that the Statewide Infrastructure Trust Fund consists of:
a) monies appropriated by the Legislature; and
b) any nonfederal gifts, grants, donations or other monies received from any public or private source for transportation projects.
17. Requires the State Treasurer and ADOT to submit an expenditure plan for review to the Joint Committee on Capital Review before any expenditure is made from the Statewide Infrastructure Trust Fund.
18. Subjects the Statewide Infrastructure Trust Fund to legislative appropriation.
19. Exempts Statewide Infrastructure Trust Fund monies from lapsing.
20. Defines a 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
21. Establishes the Advanced Air Mobility Fund which is to be administered by the State Treasurer.
22. Requires the State Treasurer to invest and divest monies in the Advanced Air Mobility Fund monies and credit monies earned in the Fund.
23. Specifies that the Advanced Air Mobility Fund consists of:
a) monies appropriated by the Legislature; and
b) any nonfederal gifts, grants, donations or other monies received from any public or private source for transportation projects.
24. Requires Advanced Air Mobility Fund monies to be used to 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 and construct vertiports.
25. Requires the State Treasurer and ADOT to submit an expenditure plan for review to the Joint Committee on Capital Review before any expenditure is made from the Advanced Air Mobility Fund.
26. Subjects the Advanced Air Mobility Fund to legislative appropriation.
27. Exempts Advanced Air Mobility Fund monies from lapsing.
Miscellaneous
28. Removes the Department of Child Safety from the list of agencies excluded from participation in the State Motor Vehicle Fleet.
29. Makes conforming changes.
30. Becomes effective on the general effective date.
Prepared by Senate Research
June 16, 2025
KJA/NRG/slp