AZ HB2175

Establishes a new funding mechanism for state, county, city, and town transportation infrastructure projects through banks creating money instead of using taxation or bonding.

Requires governmental agencies to submit project documentation with verified bids to the state treasurer, who assigns project numbers and arranges funding through banks based on their capital and surplus proportions.

Directs banks to electronically create and transfer monies to the state treasurer, who then transfers funds to contractor accounts at the direction of the sponsoring governmental agency.

Exempts banks from reserve requirements for monies created under this chapter and classifies noncompliance or fraud as a felony with penalties up to $100 million in fines or 40 years imprisonment.

Requires the auditor general to maintain and publish monthly accounting of all monies created under the chapter, and mandates a pilot project be implemented within 90 days with the first full project being a light rail transit system.