AZ HB2318

Amends section 28-339 of the Arizona Revised Statutes to modify the State Match Advantage for Rural Transportation Fund administered by the Department of Transportation.

Allows fund monies to reimburse up to 50% of federal grant application development costs, provide matching funds for federal grants, and reimburse design and engineering services for projects eligible for federal grants.

Requires applicants awarded design and engineering services funding to submit a federal grant application within two years or repay expended monies to the fund.

Allocates fund monies among five categories: 20% each to counties over 100,000 population, counties under 100,000 population, municipalities over 10,000 population, municipalities under 10,000 population, and 20% to the Department of Transportation.

Allows the board to redistribute unawarded monies between categories semi-annually and rescind awards if applicants receive equal or greater funding from another source for the same project, with repayment required within one year.