ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

HB 2760: appropriation; rural transportation fund

Sponsor: Representative Nguyen, LD 1

Committee on Transportation & Infrastructure

Overview

Appropriates $15,000,000 from the state General Fund (GF) in FY 2027 to the State Match Advantage for Rural Transportation (SMART) fund.

History

Laws 2022, Chapter 322, established the SMART fund, consisting of monies appropriated by the Legislature and any nonfederal gifts, grants, donations or other amounts received from any public or private source for transportation projects. The Arizona Department of Transportation (ADOT) must administer the SMART fund and SMART fund monies are continuously appropriated.

On notice from ADOT, the State Treasurer must invest and divest monies in the SMART fund and monies earned from investment must be credited to the SMART fund.

SMART fund monies must be used only for:

1. reimbursing up to 50% of the costs associated with developing and submitting an application for a federal grant;

2. providing match or reimbursement of a match for a federal grant; and

3. funding or reimbursing design and other engineering services expenditures that meet federal standards for projects eligible for a federal grant.

ADOT must suballocate SMART fund monies as follows:

1. 20% percent to projects located in counties with a population of 100,000 persons or more;

2. 20% percent to projects located in counties with a population of less than 100,000 persons;

3. 20% percent to projects located in municipalities with a population of 10,000 persons or more;

4. 20% percent to projects located in municipalities with a population of less than 10,000 persons; and

5. 20% to ADOT (A.R.S. § 28-339).

Provisions

1. Appropriates $15,000,000 from the GF in FY 2027 to the SMART fund. (Sec. 1)

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5. Initials LM HB 2760

6. 2/12/2026 Page 0 Transportation & Infrastructure

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