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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
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 administered by the State Treasurer.
2. Requires Statewide Transportation Innovation Fund monies to be used for:
a) grants to for-profit and nonprofit entities to provide a Program; and
b) equipment, driver salaries, insurance costs and payment of other costs directly related to the implementation of an innovation transportation plan.
3. Requires the State Treasurer to administer the Program which consists of grant recipients authorized by the requirements of the Statewide Transportation Innovation Fund.
4. 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.
5. 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 Arizona Department of Transportation (ADOT).
6. Requires the State Treasurer to report all applications that are received for the Program to the Chairpersons of the Senate and House of Representatives (House) Transportation Committees or their successor committees.
7. Requires, at the request of the Chairpersons of the Senate and House Transportation Committees or their successor committees, the State Treasurer to hold a public meeting to review Program grant applications and receive a legislative recommendation.
8. Stipulates that all information in the applications reviewed at the meeting must remain confidential.
9. 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 by the State Treasurer from any public or private source for transportation projects.
11. Subjects the Statewide Transportation Innovation Fund to legislative appropriation.
12. Exempts Statewide Transportation Innovation Fund monies from lapsing.
Statewide Infrastructure Trust Fund
13. Establishes the Statewide Infrastructure Trust Fund which is administered by the State Treasurer.
15. Instructs 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.
16. 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 by the State Treasurer from any public or private source for transportation projects.
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 any existing federal or state highway.
Advanced Air Mobility Fund
21. Establishes the Advanced Air Mobility Fund which is administered by the State Treasurer.
22. Requires Advanced Air Mobility Fund monies to be used to purchase advanced air mobility vehicles that can carry passengers or cargo for testing and demonstration purposes of the ability to use the advanced air mobility vehicles and construct vertiports.
23. Instructs 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.
24. 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 by the State Treasurer from any public or private source for transportation projects.
25. Requires the State Treasurer to invest and divest Advanced Air Mobility Fund monies and credit monies earned to the Fund.
26. Subjects the Advanced Air Mobility Fund to legislative appropriation.
27. Exempts Advanced Air Mobility Fund monies from lapsing.
Miscellaneous
28. Requires 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.
Amendments Adopted by Committee of the Whole
1. Requires the State Treasurer, rather than ADOT, to administer the Program and complete the related reporting and oversight requirements.
2. Specifies that the Statewide Transportation Innovation, Statewide Infrastructure Trust and Advanced Air Mobility Funds consist of monies received by the State Treasurer from any public or private source for transportation projects.
3. Makes technical changes.
Senate Action
APPROP 6/17/25 DP 8-2-0
Prepared by Senate Research
June 19, 2025
KJA/NRG/slp