AZ SB1109

Establishes local transportation assistance fund (LTAF) receiving $18-23 million annually from state lottery revenues to distribute to cities, towns, and counties for transportation purposes.

Creates county assistance fund receiving up to $7.65 million annually from lottery revenues, distributed equally among counties with populations of 500,000 or fewer and separately among larger counties.

Establishes Arizona state parks board heritage fund receiving $10 million annually from lottery revenues for allocation to trails (5%), parks and recreation (35%), natural areas (21%), historic preservation (17%), state park acquisition (17%), and environmental education (5%).

Redirects lottery fund distributions to offset state general fund payments to local transportation and county assistance rather than depositing directly to game and fish commission heritage fund.

Modifies street and highway local revenue requirements to exclude distributions from the new local transportation assistance fund when calculating municipal and county compliance obligations.