Conservancy district road funding.

Provides that if a conservancy district assumes responsibility in its district plan for the road construction and maintenance of the public highways, bridges, and streets in the conservancy district (eligible conservancy district), distributions from the motor vehicle highway account to a county, city, or town that shares territory with the eligible conservancy district are proportionately reduced and the amount of the reduction is instead distributed to the eligible conservancy district. Provides that if a county, city, or town shares territory with an eligible conservancy district, distributions from the local road and street account are proportionately reduced and the amount of the reduction is instead distributed to the eligible conservancy district. Provides that an eligible conservancy district may apply for a loan from the distressed road fund. Provides that an eligible conservancy district may apply for a matching grant from the local road and bridge matching grant fund. Eliminates the primary highway system special account.