AZ SB1386

Establishes the Rural Arizona and Tribal Infrastructure Authority with an 11-member board appointed by the governor to administer infrastructure funding for rural communities and Indian tribes in counties with populations under 300,000 persons.

Creates the Rural Arizona and Tribal Infrastructure Revolving Fund to provide loans, grants, technical assistance, and credit enhancements for qualified infrastructure projects including water systems, wastewater treatment, roads, communications, health facilities, and economic development infrastructure.

Authorizes the authority to issue infrastructure capital improvement bonds to generate revenue and provide financial assistance to rural Arizona and tribal communities, with loan repayment periods up to 30 years at prevailing market rates.

Directs 15 percent of transaction privilege tax revenues collected on Indian reservations to the revolving fund, with an additional 10-35 percent distributed to rural Indian tribes for infrastructure and community development based on tribal revenue contributions.

Terminates the authority board on July 1, 2026, and repeals the authorizing chapter on January 1, 2027.