AZ HB2208

Creates a local transportation assistance fund funded by state lottery revenues, with a minimum of $9 million annually increasing to a maximum of $18 million per fiscal year from lottery deposits, plus up to an additional $23 million from lottery revenues.

Distributes local transportation assistance fund monies to incorporated cities and towns based on population, with cities over 300,000 population required to use funds for public transportation and smaller cities able to use funds for general transportation purposes.

Establishes a county assistance fund to distribute up to $7.65 million annually from lottery revenues to counties, allocated 93.47% to counties with populations under 500,000 and 6.53% to counties with populations over 500,000.

Requires cities and towns participating in regional transportation authorities to annually apply for local transportation assistance fund monies and use a portion for public transportation purposes.

Creates an Arizona state parks board heritage fund receiving $10 million annually from lottery revenues, with specified percentages allocated to trails (5%), parks and recreation (35%), natural areas (17%), historic preservation (17%), state park acquisition (17%), and environmental education (5%).