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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
REVISED
AMENDED
light rail expansion; participation; prohibition
Purpose
Requires the Auditor General to conduct a comprehensive feasibility review of light rail expansion in Maricopa County.
Background
The Arizona Department of Transportation (ADOT) is tasked with providing an integrated balanced state transportation system and has exclusive control and jurisdiction over all: 1) state highways; 2) state roads; 3) state-owned airports; and 4) state-owned transportation systems or modes. ADOT is responsible for the design and construction of transportation facilities in accordance with a priority plan and to maintain and operate all state-owned highways, airports and public transportation systems (A.R.S. §§ 28-331 and 28-332).
Public monies may not be used to extend light rail service in Phoenix to the area outside of the boundary of 17th Avenue on the east, Adams Street on the north, 18th Avenue on the west and Jefferson Street on the south (A.R.S. § 28-9204).
Laws 2003, Chapter 217 established the Regional Planning Agency Transportation Policy Committee (TPC) which is tasked with the approval of a 20-year comprehensive, performance-based, multimodal and coordinated Regional Transportation Plan (Plan) for Maricopa County. In 2024, voters in Maricopa County voted to continue the one-half cent transportation tax for 20 years and to distribute and deposit the annual net revenues from the transportation tax for uses specified by the Plan as follows: 1) 40.5 percent to the Regional Area Road Fund (RARF) for freeways and other routes in the state highway system; 2) 37 percent to the Public Transportation Fund for public transportation; and 3) 22.5 percent to the RARF for major arterial streets, intersection improvements and regional transportation infrastructure, including capital expense and implementation studies (Laws 2023, Ch. 203; Prop 479 Maricopa County).
The Joint Legislative Budget Committee fiscal note estimates that S.B. 1332 will result in a one-time cost to the Auditor General of between $900,000 and $1,500,000 to conduct the feasibility study (JLBC fiscal note).
Provisions
1. Requires the Auditor General, by December 31, 2027, and in coordination with an independent transportation research entity, to:
a) conduct a comprehensive feasibility review of light rail expansion in Maricopa County;
b) submit a report on the findings of the review to the President of the Senate, Speaker of the House of Representatives and Governor; and
c) provide a copy of the report to the Secretary of State, Mayor of Phoenix and each Phoenix city councilmember.
2. Prohibits the feasibility review from presuming the superiority of any mode of transit.
3. Requires the feasibility review to include:
a)
capital and operating cost comparisons between a light rail and
autonomous or
semi-autonomous transit vehicles, including bus rapid transit, passenger vans
and shuttle systems;
b) a comparison of the environmental impact per dollar invested for acquiring, constructing and operating a light rail;
c) an analysis of the long-term economic benefits and costs between light rail and autonomous or semi-autonomous transit vehicles, including bus rapid transit, passenger vans and shuttle systems;
d) flexibility, scalability and adaptability to population shifts;
e) policy recommendations regarding future state involvement in light rail construction;
f)
long-term maintenance and replacement costs;
g) an analysis of whether continuation, modification or discontinuation of state participation in light rail expansion is warranted;
h) the short-term economic effects of construction on small and locally owned businesses located within or adjacent to proposed transit corridors; and
i) an evaluation of the extent to which construction activity may impair visibility, access, parking availability, pedestrian traffic and vehicular traffic to affected businesses and that estimates the potential for lost revenue, workforce reductions, relocation or business closure during the construction period.
4. Repeals the light rail feasibility review requirements on July 1, 2028.
5. Defines light rail construction as the planning, permitting or physical construction of new fixed-guideway rail transit lines or extensions.
6. Defines state participation as:
a) appropriating state monies;
b) issuing state bonds or guarantees;
c) approving, certifying or matching monies by ADOT; and
d) approving state permits or other authorizations.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Removes the prohibition on the state from providing state participation for any light rail construction project.
2. Makes technical changes.
Amendments Adopted by Committee of the Whole
1. Requires the Auditor General, rather than ADOT, to conduct the comprehensive feasibility review of light rail expansion in Maricopa County.
2. Modifies the information that must be included in the light rail comprehensive feasibility review by adding:
a) the short-term economic effects of light rail construction on small and locally owned businesses;
b) an evaluation of the extent to which construction may impact affected businesses, including visibility impairment, access and parking availability; and
c) an analysis of the long-term economic benefits and costs between light rail and autonomous or semi-autonomous transit vehicles.
3. Removes ridership trends and post-pandemic usage patterns from the information that must be included in the feasibility review.
4. Makes conforming changes.
Revisions
1. Corrects the provisions to accurately reflect the amendments adopted by Committee of the Whole by:
a) requiring the Auditor General, rather than ADOT, to conduct the comprehensive feasibility review;
b) removing the prohibition on expending public monies relating to new light rail expansion; and
c) removing the appropriation of $300,000 and the exemption from lapsing.
2. Updates the fiscal impact statement.
Senate Action
ATT 2/17/26 DPA 7-3-0
Prepared by Senate Research
April 7, 2026
LMM/KS/ci