Arizona 57th Legislature - First Regular Session Status: Passed Senate 1 R cosponsors

SB 1134 — ADWR; application; review; time frames

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    Introduced
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    Passed Senate
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    Passed House
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    To Executive
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    Enacted

This bill died with 57th Legislature - First Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

232 added · 329 removed

Plain-language change summary

The recent changes to Senate Bill 1134 specify that the time frames for reviewing applications will be set at thirty days for administrative completeness and ninety days for substantive review. This adjustment means that administrative reviews will happen more quickly, allowing for faster processing of applications. This matters because it can streamline operations and improve efficiency for the Department of Water Resources, ultimately making it easier for applicants to move through the review process.

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House Engrossed Senate Bill ADWR;
Senate Engrossed ADWR;
time frames (now:
time frames State of Arizona Senate Fifty-seventh Legislature First Regular Session SENATE BILL 1134 AN ACT AMENDING SECTIONS 41-1074 AND 45-576, ARIZONA REVISED STATUTES;
county water augmentation authorities;
RELATING TO THE DEPARTMENT OF WATER RESOURCES.
bond) State of Arizona Senate Fifty-seventh Legislature First Regular Session SENATE BILL 1134 AN ACT AMENDING SECTIONS 45-1901, 45-1973 AND 45-1976, ARIZONA REVISED STATUTES;
REPEALING SECTION 45-1991, ARIZONA REVISED STATUTES;
AMENDING TITLE 45, CHAPTER 11, ARTICLE 5, ARIZONA REVISED STATUTES, BY ADDING A NEW SECTION 45-1991;
AMENDING SECTIONS 45-1993, 45-1994 AND 45-1996, ARIZONA REVISED STATUTES;
REPEALING SECTION 45-1997, ARIZONA REVISED STATUTES;
AMENDING TITLE 45, CHAPTER 11, ARTICLE 5, ARIZONA REVISED STATUTES, BY ADDING A NEW SECTION 45-1997;
AMENDING TITLE 45, CHAPTER 11, ARTICLE 5, ARIZONA REVISED STATUTES, BY ADDING SECTION 45-2000;
RELATING TO THE COUNTY WATER AUGMENTATION AUTHORITY.
Section 45-1901, Arizona Revised Statutes, is amended to read:
Section 41-1074, Arizona Revised Statutes, is amended to read:
45-1901.
41-1074.
Definitions In this chapter, unless the context otherwise requires:
Compliance with administrative completeness review time frame A.
1.
An agency shall issue a written notice of administrative completeness or deficiencies to an applicant for a license within the administrative completeness review time frame.
"Active management area" means an active management area established under chapter 2 of this title.
2.
"Authority" means a county water augmentation authority established under this chapter.
3.
"Board" means the board of directors of the authority.
4.
"County" means the county containing over fifty per cent PERCENT of the area of the authority.
5.
"Operating unit" means a county, city, town, water company or political subdivision, this state, the United States, an Indian tribe or any other public or private entity with which an authority has a contractual relationship for the acquisition, delivery, exchange, treatment, storage or recharge of water.
6.
"Project" means a ANY OF THE FOLLOWING:
(a) ANY facility necessary or convenient to obtain, divert, withdraw, transport, exchange, deliver, treat, CONSERVE, STORE or recharge water, including rights-of-way, CANALS, PIPELINES, PUMPING STATIONS, STORAGE PROJECTS, RECOVERY WELLS, DELIVERY AND RETENTION FACILITIES, WATER AND WASTEWATER TREATMENT PLANTS, real and personal property, interests in property and improvements to property that are necessary or appropriate to maintain and operate the facilities.
(b) THE ACQUISITION OF WATER AND RIGHTS TO WATER.
(c) A LOAN OF BOND PROCEEDS FROM AN AUTHORITY TO AN OPERATING UNIT TO ACQUIRE OR CONSTRUCT ANY FACILITY PRESCRIBED IN SUBDIVISION (a) OF THIS PARAGRAPH.
7.
"Water company" means either a private water company as defined in section 45-402 or an irrigation district that primarily serves municipal water.
Sec.
2.
Section 45-1973, Arizona Revised Statutes, is amended to read:
45-1973.
Water supply fees The authority may assess fees, including extraction fees, development impact fees, connection fees, user fees, replenishment fees and administrative fees, against any operating unit or other person with which the authority has a contractual responsibility to provide any service.
The amount of the fee and the method of payment shall be determined pursuant to the agreement between the authority and the operating unit or person, based on the cost of the service the authority provides, including the cost of developing an equivalent water supply for an operating unit that has exchanged with the authority a water right or right to receive water for a water supply contract with the authority.
Any fee assessed under this - 1 - S.B.
1134 section is not a rate or charge of the operating unit and is not subject to regulation by the Arizona corporation commission.
The secretary-treasurer of the authority shall deposit all monies received under this section in EITHER OF THE FOLLOWING:
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1.
The general fund of the authority.
2.
IF THE MONIES ARE COLLECTED PURSUANT TO THE CONTRACTING AND BONDING POWERS OF THE AUTHORITY, THE BOND FUND OF THE AUTHORITY.
Sec.
3.
Section 45-1976, Arizona Revised Statutes, is amended to read:
45-1976.
Payment of interest;
investment of bond fund monies The secretary-treasurer of the authority shall:
1.
Pay matured PRINCIPAL AND interest coupons from DUE ON bonds of the authority from the bond fund.
2.
Invest monies in the bond fund, under THE direction of the board, in bonds of the United States or this state that shall be kept in the bond fund and that may be used to redeem bonds of the authority, on the request of the holders, either by exchanging them for bonds of the authority or by converting them into cash AS PROVIDED IN TITLE 35, CHAPTER 2.
Sec.
4.
Repeal Section 45-1991, Arizona Revised Statutes, is repealed.
Sec.
5.
Title 45, chapter 11, article 5, Arizona Revised Statutes, is amended by adding a new section 45-1991, to read:
45-1991.
Authority to issue bonds THE AUTHORITY, ACTING THROUGH THE BOARD, MAY ISSUE REVENUE BONDS IN A PRINCIPAL AMOUNT THAT THE AUTHORITY DETERMINES IS NECESSARY TO PROVIDE SUFFICIENT MONIES TO ACQUIRE OR CONSTRUCT PROJECTS PURSUANT TO THIS CHAPTER.
THE AUTHORITY MAY ISSUE REVENUE BONDS IN CONJUNCTION WITH ANY OTHER OPTIONAL OR ALTERNATIVE PLANS PROVIDED IN THIS CHAPTER.
Sec.
6.
Section 45-1993, Arizona Revised Statutes, is amended to read:
45-1993.
Scope of resolution A.
Resolutions for a bond issue or issues shall state the amount of the proposed issue or issues, the proposed interest rate and types and terms of bonds, that all other methods of necessary financing by the authority have been found impractical, inadvisable or inadequate and that the issuance of the bonds is necessary and advisable as proposed.
The authority chairman CHAIRPERSON and secretary-treasurer shall sign the resolutions.
If an agency determines that an application for a license is not administratively complete, the agency shall include a comprehensive list of the specific deficiencies in the written notice provided pursuant to subsection A of this section.
In support of the resolution the authority shall enter into its record pertinent engineering, economic and financial data, appropriate maps, drawings, plans, outlines, calculations, summaries and related agreements and any other essential information constituting a record appropriate to the resolution.
If the agency issues a written notice of deficiencies within the administrative completeness time frame, the administrative completeness review time frame and the overall time frame are suspended from the date the notice is issued until the date that the agency receives the missing information from the applicant.
The resolution may approve a bond issue to finance an entire plan or system or any single or joint project, section or other facility of a related system or plan proposed for ultimate integration and completion.
If an agency does not issue a written notice of administrative completeness or deficiencies within the administrative completeness review time frame, the application is deemed administratively complete.
- 2 - S.B.
If an agency issues a timely written notice of deficiencies, an application is not complete until the agency receives all requested information.
1134 Sec.
7.
Section 45-1994, Arizona Revised Statutes, is amended to read:
45-1994.
Hearing;
findings A.
The chairman CHAIRPERSON of the board, at the earliest practical date, THE EXECUTIVE DIRECTOR OF THE BOARD OR THE CHAIR-PERSON'S OR DIRECTOR'S DESIGNEE shall fix a time and place for a hearing at least twenty but not more than thirty days after BEFORE adopting the resolution.
The authority shall publish PROVIDE notice of the time and place fixed for the hearing twice AT LEAST TWENTY DAYS IN ADVANCE OF THE HEARING in a newspaper of general circulation in the county in which the authority is established.
B.
All pertinent records and documents shall be filed WITH THE BOARD at least ten days before the date set for the hearing.
Prehearings respecting any particular document, feature or incidental matter or any separable part or portion of any resolution may be held by the board on ten days' previous written notice if the board deems that holding a prehearing is conducive to expediting a final hearing PURSUANT TO SUBSECTION A OF THIS SECTION, and a decision as to the issues presented may thereupon be rendered.
C.
At the time and place fixed for the hearing, the board shall examine and determine the matters and questions involved.
Hearings may be recessed, adjourned or continued as the board orders.
Any person who holds an original agreement or proposal made with the authority relating to or concerning the handling, sale, control or disposition of a proposed issue of bonds or who has previously made an offer or bid in good faith to purchase the bonds pursuant to a published invitation for bids by the authority, and any operating unit holding contracts with the authority at least ten days before the date fixed for the hearing, may qualify to be heard.
Except for an application submitted to the department of water resources pursuant to title 45, A determination by an agency that an application is not administratively complete is an appealable agency action, which if timely initiated, entitles the applicant to an adjudication on the merits of the administrative completeness of the application.
E.
D.
AT THE CONCLUSION OF THE HEARING, if the board finds that all precedent requirements and conditions have been fulfilled, it THE BOARD shall approve the bond issue in whole or in part or shall otherwise disapprove the bond issue as a whole or as to such features or proposals as do not meet the essential requirements.
When the board has made and entered its findings, it THE BOARD shall enter a decision accordingly.
F.
E.
The decision of the board based on findings of fact that are supported by a preponderance of the evidence and that are not arbitrary or unreasonable is final and conclusive.
8.
Section 45-1996, Arizona Revised Statutes, is amended to read:
45-1996.
Provisions of bonds;
sale A.
The bonds shall provide that:
1.
The bond is purchased and taken after a complete disclosure and with a full knowledge of all of the surrounding relevant facts and - 3 - S.B.
1134 circumstances and not on the representation, faith or credit of the authority, this state or any of its political subdivisions.
The holder in order to obtain payment may not compel this state or any of its political subdivisions to exercise its appropriation or taxing power.
Section 45-576, Arizona Revised Statutes, is amended to read:
3.
45-576.
The bond does not constitute a debt of this state, any political subdivision of this state or any operating unit and is payable only from revenues of the authority.
Certificate of assured water supply;
B.
designated cities, towns and private water companies;
The gross or net revenue derived from any project or any part of a project may be pledged to secure the payment of any series of bonds.
exemptions;
A.
definitions A.
TO SECURE ANY BONDS PURSUANT TO THIS ARTICLE, THE BOARD, BY RESOLUTION, MAY:
Except as provided in subsections G and J of this section, a person who proposes to offer subdivided lands, as defined in section 32-2101, for sale or lease in an active management area shall apply for and obtain a certificate of assured water supply from the director before presenting the plat for approval to the city, town or county in which the land is located, where such is required, and before filing with the state real estate commissioner a notice of intention to offer such lands for sale or lease, pursuant to section 32-2181, unless the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an assured water supply pursuant to this section.
1.
- 1 - S.B.
PROVIDE THAT BONDS ISSUED PURSUANT TO THIS CHAPTER MAY BE SECURED BY A FIRST LIEN ON ALL OR PART OF THE MONIES PAID INTO THE APPROPRIATE ACCOUNT OR SUBACCOUNT ADMINISTERED BY THE AUTHORITY.
1134 B.
2.
Except as provided in subsections G and J of this section, a city, town or county may approve a subdivision plat only if the subdivider has obtained a certificate of assured water supply from the director or the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an assured water supply pursuant to this section.
PLEDGE OR ASSIGN TO OR IN TRUST FOR THE BENEFIT OF THE HOLDER ANY PART OR APPROPRIATE ACCOUNT OR SUBACCOUNT OF THE MONIES IN THE FUNDS AS IS NECESSARY TO PAY THE PRINCIPAL AND INTEREST OF THE BONDS AS THEY COME DUE.
The city, town or county shall note on the face of the approved plat that a certificate of assured water supply has been submitted with the plat or that the subdivider has obtained a written commitment of water service for the proposed subdivision from a city, town or private water company designated as having an assured water supply pursuant to this section.
3.
SET ASIDE, REGULATE AND DISPOSE OF ANY RESERVES AND SINKING FUNDS.
4.
PROVIDE THAT SUFFICIENT AMOUNTS OF THE PROCEEDS FROM THE SALE OF THE BONDS MAY BE USED TO FULLY OR PARTLY FUND ANY RESERVES OR SINKING FUNDS ESTABLISHED BY THE RESOLUTION.
5.
PRESCRIBE THE PROCEDURE, IF ANY, BY WHICH THE TERMS OF ANY CONTRACT WITH BONDHOLDERS MAY BE AMENDED OR ABROGATED, THE AMOUNT OF BONDS THAT THE HOLDERS MUST CONSENT TO AND THE MANNER IN WHICH THAT CONSENT MAY BE GIVEN.
6.
PROVIDE FOR PAYMENT FROM THE PROCEEDS OF THE SALE OF THE BONDS OF ALL LEGAL AND FINANCIAL EXPENSES INCURRED BY THE BOARD IN ISSUING, SELLING, DELIVERING AND PAYING THE BONDS.
7.
DO ANY OTHER MATTERS THAT MAY AFFECT THE SECURITY AND PROTECTION OF THE BONDS.
B.
THE BONDS SHALL BE SIGNED BY THE CHAIRPERSON OR VICE CHAIRPERSON AND THE SECRETARY-TREASURER OF THE AUTHORITY.
BOARD MEMBERS OR ANY PERSON EXECUTING THE BONDS ARE NOT PERSONALLY LIABLE FOR THE PAYMENT OF THE BONDS.
THE BONDS ARE VALID AND BINDING OBLIGATIONS UNLESS BEFORE THE DELIVERY OF THE BONDS ANY OF THE PERSONS WHOSE SIGNATURES APPEAR ON THE BONDS CEASES TO BE A MEMBER OF THE BOARD.
FROM AND AFTER THE SALE AND DELIVERY OF THE BONDS, THE BOARD MAY NOT CONTEST THE VALIDITY OF A BOND.
The authority may provide for reimbursement to the holder OF ANY BONDS of all expenses of litigation and attorney fees incurred in collecting the bonds in the event of default and may provide for and fix the powers and duties of a trustee if necessary to enforce collection.
Except as provided in subsections G and J of this section, the state real estate commissioner may issue a public report authorizing the sale or lease of subdivided lands only on compliance with either of the following:
Bond resolutions, agreements and bonds may be in such form and may contain - 4 - S.B.
1134 such other conditions and terms as the authority deems appropriate or necessary to make the bonds fully salable and marketable.
D.
THE BOARD MAY USE AVAILABLE MONIES TO PURCHASE BONDS THAT MAY BE CANCELED AT A PRICE NOT EXCEEDING EITHER OF THE FOLLOWING:
IF THE BONDS ARE THEN REDEEMABLE, THE REDEMPTION PRICE THEN APPLICABLE PLUS ACCRUED INTEREST TO THE NEXT INTEREST PAYMENT DATE.
The subdivider, owner or agent has paid any activation fee required under section 48-3772, subsection A, paragraph 7 and any replenishment reserve fee required under section 48-3774.01, subsection A, paragraph 2 and has obtained a certificate of assured water supply from the director.
IF THE BONDS ARE NOT THEN REDEEMABLE, THE REDEMPTION PRICE APPLICABLE ON THE FIRST DATE AFTER PURCHASE ON WHICH THE BONDS BECOME SUBJECT TO REDEMPTION PLUS ACCRUED INTEREST TO THAT DATE.
The subdivider has obtained a written commitment of water service for the lands from a city, town or private water company designated as having an assured water supply pursuant to this section and the subdivider, owner or agent has paid any activation fee required under section 48-3772, subsection A, paragraph 7.
The director shall designate private water companies in active management areas that have an assured water supply.
If a city or town acquires a private water company that has contracted for central Arizona project water, the city or town shall assume the private water company's contract for central Arizona project water.
The authority may provide that any holder of bonds, or a trustee designated by the authority at the time of issuing the bonds, on proper showing may secure an order of the superior court requiring the authority, subject to the contracts with operating units then in effect, to fix and collect rates and charges that will produce adequate revenues to permit setting up adequate yearly reserves with which to meet future payments according to the terms of the bond.
The director shall designate cities and towns in active management areas where an assured water supply exists.
If a city or town has entered into a contract for central Arizona project water, the city or town is deemed to continue to have an assured water supply until December 31, 1997.
Commencing on January 1, 1998, the determination that the city or town has an assured water supply is subject to review by the director and the director may determine that a city or town does not have an assured water supply.
ANY PLEDGE MADE PURSUANT TO THIS ARTICLE IS VALID AND BINDING FROM THE TIME THE PLEDGE IS MADE.
The director shall notify the mayors of all cities and towns in active management areas and the chairmen of the boards of supervisors of counties in which active management areas are located of the cities, towns and private water companies designated as having an assured water supply and any modification of that designation within thirty days of AFTER the designation or modification.
THE MONIES PLEDGED AND RECEIVED TO BE PLACED IN THE APPROPRIATE FUND ARE IMMEDIATELY SUBJECT TO THE LIEN OF THE PLEDGE WITHOUT ANY FUTURE PHYSICAL DELIVERY OR FURTHER ACT, AND ANY SUCH LIEN OF ANY PLEDGE IS VALID OR BINDING AGAINST ALL PARTIES HAVING CLAIMS OF ANY KIND AGAINST THE BOARD REGARDLESS OF WHETHER THE PARTIES HAVE NOTICE OF THE LIEN.
If the service area of the city, town or private water company has qualified as a member service area pursuant to - 2 - S.B.
THE RESOLUTION OR TRUST INDENTURE OR ANY INSTRUMENT BY WHICH A PLEDGE IS CREATED AND PLACED IN THE BOARD'S RECORDS SHALL SERVE AS NOTICE TO ALL CONCERNED OF THE CREATION OF THE PLEDGE.
1134 title 48, chapter 22, article 4, the director shall also notify the conservation district of the designation or modification and shall report the projected average annual replenishment obligation for the member service area based on the projected and committed average annual demand for water within the service area during the effective term of the designation or modification subject to any limitation in an agreement between the conservation district and the city, town or private water company.
THE BOARD IS NOT REQUIRED TO RECORD THESE INSTRUMENTS OF CREATION IN ANY OTHER PLACE.
For each city, town or private water company that qualified as a member service area under title 48, chapter 22 and THAT was designated as having an assured water supply before January 1, 2004, the director shall report to the conservation district on or before January 1, 2005 the projected average annual replenishment obligation based on the projected and committed average annual demand for water within the service area during the effective term of the designation subject to any limitation in an agreement between the conservation district and the city, town or private water company.
Persons proposing to offer subdivided lands served by those designated cities, towns and private water companies for sale or lease are exempt from applying for and obtaining a certificate of assured water supply.
BONDS ISSUED PURSUANT TO THIS ARTICLE, THE TRANSFER OF SUCH BONDS AND THE INCOME SUCH BONDS PRODUCE ARE EXEMPT FROM TAXATION BY THIS STATE OR ANY POLITICAL SUBDIVISION OF THIS STATE.
This section does not apply in the case of the sale of lands for developments that are subject to a mineral extraction and METALLURGICAL processing permit or an industrial use permit pursuant to sections 45-514 and 45-515.
BONDS ISSUED PURSUANT TO THIS ARTICLE ARE OBLIGATIONS OF THE AUTHORITY AND ARE PAYABLE ONLY ACCORDING TO THEIR TERMS AND ARE NOT OBLIGATIONS GENERAL, SPECIAL OR OTHERWISE OF THIS STATE, THE COUNTY IN WHICH THE AUTHORITY IS ESTABLISHED OR, OTHER THAN THE AUTHORITY, A POLITICAL SUBDIVISION OF THIS STATE.
The director shall adopt rules to carry out the purposes of this section.
PAYMENT OF THE BONDS IS NOT ENFORCEABLE OUT OF ANY MONIES OF THIS STATE OTHER THAN THE INCOME AND REVENUE PLEDGED AND ASSIGNED TO OR IN TRUST FOR THE BENEFIT OF THE HOLDER OR HOLDERS OF THE BONDS.
On or before January 1, 2008, The rules shall provide for a reduction in water demand for an application for a designation of assured water supply or a certificate of assured water supply if a gray water reuse system will be installed that meets the requirements of the rules adopted by the department of environmental quality for gray water systems and if the application is for a certificate of assured water supply, the land for which the certificate is sought must qualify as a member land in a conservation district pursuant to title 48, chapter 22, article 4.
E.
For the purposes of this subsection, "gray water" has the same meaning prescribed in section 49-201.
All bonds issued by the authority and agreements of the authority with respect to bonds are subject to this chapter, and no bond or agreement may contain any provision in conflict with this chapter.
If the director designates a municipal provider as having an assured water supply under this section and the designation lapses or otherwise terminates while the municipal provider's service area is a member service area of a conservation district, the municipal provider or its successor shall continue to comply with the consistency with management goal requirements in the rules adopted by the director under subsection H of this section as if the designation was still in effect with respect to the municipal provider's designation uses.
An amendment of this chapter does not diminish or impair the remedy and rights of the bondholder.
When determining compliance by the municipal provider or its successor with the consistency with management goal requirements in the rules, the director shall consider only water delivered by the municipal provider or its - 3 - S.B.
F.
1134 successor to the municipal provider's designation uses.
The bonds shall be signed by the chairman or vice-chairman and the secretary-treasurer of the authority in office at the date of signing and are valid obligations of the authority although before delivery or sale - 5 - S.B.
A person is the successor of a municipal provider if the person commences water service to uses that were previously designation uses of the municipal provider.
1134 the persons whose signatures appear on the bonds may have ceased to be officers of the authority.
Any groundwater delivered by the municipal provider or its successor to the municipal provider's designation uses in excess of the amount allowed under the consistency with management goal requirements in the rules shall be considered excess groundwater for purposes of title 48, chapter 22.
G.
For the purposes of this subsection, "designation uses" means all water uses served by a municipal provider on the date the municipal provider's designation of assured water supply lapses or otherwise terminates and all recorded lots within the municipal provider's service area that were not being served by the municipal provider on that date but that received final plat approval from a city, town or county on or before that date.
Designation uses do not include industrial uses served by an irrigation district under section 45-497.
The validity of the bonds is not dependent on or affected by the legality of any proceeding relating to the acquisition, construction, improvement or extension of a project for which the bonds are issued.
Subsections A, B and C of this section do not apply to a person who proposes to offer subdivided land for sale or lease in an active management area if all the following apply:
The bonds shall recite that they are regularly issued pursuant to this chapter and that recital is prima facie evidence of their legality and validity.
1.
H.
The director issued a certificate of assured water supply for the land to a previous owner of the land and the certificate was classified as a type A certificate under rules adopted by the director pursuant to subsection H of this section.
2.
The director has not revoked the certificate of assured water supply described in paragraph 1 of this subsection, and proceedings to revoke the certificate are not pending before the department or a court.
The department shall post on its website a list of all certificates of assured water supply that have been revoked or for which proceedings are pending before the department or a court.
3.
The plat submitted to the department in the application for the certificate of assured water supply described in paragraph 1 of this subsection has not changed.
4.
Water service is currently available to each lot within the subdivided land and the water provider listed on the certificate of assured water supply described in paragraph 1 of this subsection has not changed.
5.
The subdivided land qualifies as a member land under title 48, chapter 22 and the subdivider has paid any activation fee required under section 48-3772, subsection A, paragraph 7 and any replenishment reserve fee required under section 48-3774.01, subsection A, paragraph 2.
6.
The plat is submitted for approval to a city, town or county that is listed on the department's website as a qualified platting authority.
Bonds so issued may be sold when the money is needed for the purposes for which they are issued.
Subsection J of this section does not affect the assignment of a certificate of assured water supply as prescribed by section 45-579.
Pending the preparation or execution of definite bonds, interim receipts or certificates or temporary bonds may be delivered to the purchaser or purchasers of bonds.
- 4 - S.B.
L.
1134 L.
EACH OPERATING UNIT THAT OWNS, OPERATES OR OTHERWISE BENEFITS FROM PROJECTS THAT ARE FINANCED BY BONDS ISSUED PURSUANT TO THIS CHAPTER SHALL COLLECT FROM EACH END USER THAT BENEFITS FROM THE PROJECTS THAT PROPORTION OF THE REVENUE REQUIRED UNDER SECTION 45-1992, THAT IS EQUAL TO THE PROPORTION OF THE BENEFITS OF THE PROJECTS ALLOCATED TO EACH END USER TO ENSURE ALL NECESSARY FISCAL RESERVES, OPERATION COSTS, MAINTENANCE AND DEPRECIATION CHARGES AND PAYMENT AMOUNTS DUE TO THE AUTHORITY IN CONNECTION WITH THE AUTHORITY'S PAYMENT OF PRINCIPLE AND INTEREST OF THE BONDS.
On or before December 31, 2023, the director shall study and submit to the governor, president of the senate and speaker of the house of representatives a report on whether and how a person that seeks a building permit for six or more residences within an active management area, without regard to any proposed lease term for those residences, should apply for and obtain a certificate of assured water supply from the director before presenting the permit application for approval to the county in which the land is located, unless the applicant has obtained a written commitment of water service for the residences from a city, town or private water company designated as having an assured water supply pursuant to this section.
THIS SECTION DOES NOT AFFECT THE CORPORATION COMMISSION’S AUTHORITY TO PRESCRIBE JUST AND REASONABLE CLASSIFICATIONS TO BE USED AND JUST AND REASONABLE RATES AND CHARGES TO BE MADE AND COLLECTED BY PUBLIC SERVICE CORPORATIONS.
M.
NOTWITHSTANDING THIS SUBSECTION, ANY PROJECT ALLOCATION BY AN OPERATING UNIT IS SUBJECT TO RESTRICTIONS ON PLACE OF USE UNDER THIS TITLE.
THE DIRECTOR SHALL MAKE DETERMINATIONS FOR AN APPLICATION FOR A NEW OR MODIFIED CERTIFICATE, DESIGNATION OR ANALYSIS OF ASSURED WATER SUPPLY WITHIN THE FOLLOWING LICENSING TIME FRAMES:
Sec.
9.
Repeal Section 45-1997, Arizona Revised Statutes, is repealed.
Sec.
10.
Title 45, chapter 11, article 5, Arizona Revised Statutes, is amended by adding a new section 45-1997, to read:
45-1997.
Attorney general notification THE BOARD SHALL NOTIFY THE ATTORNEY GENERAL OF THE AUTHORITY'S INTENTION TO ISSUE BONDS.
THE NOTIFICATION SHALL ADEQUATELY DESCRIBE THE PROJECT.
THE ATTORNEY GENERAL SHALL INFORM THE BOARD WITHIN TEN DAYS AFTER RECEIVING THE NOTICE WHETHER THE ATTORNEY GENERAL BELIEVES THE PROPOSED PROJECT DOES NOT COMPLY WITH THIS CHAPTER.
IF THE ATTORNEY GENERAL DOES NOT ISSUE AN OPINION WITHIN TEN DAYS AFTER RECEIVING THE NOTICE, THE BOARD MAY ISSUE THE BONDS.
IF WITHIN TEN DAYS AFTER RECEIVING THE NOTICE THE ATTORNEY GENERAL ISSUES AN OPINION THAT THE BOND DOES NOT COMPLY WITH THIS CHAPTER, THE BOARD MAY NOT ISSUE THE BONDS.
A PERSON MAY NOT BRING AN ACTION CHALLENGING THE LEGALITY OF ANY CONTRACT, AGREEMENT, LEASE, MORTGAGE, OBLIGATION OR PROCEEDING OR THE ISSUANCE OF BONDS PURSUANT TO THIS CHAPTER FROM AND AFTER THIRTY CALENDAR DAYS AFTER THE BOARD IS AUTHORIZED TO ISSUE BONDS.
- 6 - S.B.
1134 Sec.
11.
Title 45, chapter 11, article 5, Arizona Revised Statutes, is amended by adding section 45-2000, to read:
45-2000.
Wastewater treatment;
loan repayment;
definitions A.
NOTWITHSTANDING ANY OTHER LAW, THE AUTHORITY MAY CONSTRUCT, ACQUIRE OR IMPROVE A WASTEWATER TREATMENT FACILITY, DRINKING WATER FACILITY OR NONPOINT SOURCE PROJECT WITH MONIES BORROWED FROM OR FINANCIAL ASSISTANCE, INCLUDING FORGIVABLE PRINCIPAL, PROVIDED BY THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA PURSUANT TO TITLE 49, CHAPTER 8.
B.
THE AUTHORITY MAY ENTER INTO A LOAN REPAYMENT AGREEMENT WITH THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA.
A LOAN REPAYMENT AGREEMENT IS PAYABLE FROM ANY REVENUES OTHERWISE AUTHORIZED BY LAW TO BE USED TO PAY LONG-TERM OBLIGATIONS.
C.
THE BOARD SHALL OBTAIN APPROVAL FOR THE LOAN REPAYMENT AGREEMENT IN THE SAME MANNER PROVIDED BY LAW FOR APPROVING AND ISSUING OTHER BONDS OR LONG-TERM OBLIGATIONS PAYABLE FROM REVENUES THAT ARE TO BE USED TO PAY THE LOAN.
D.
A LOAN REPAYMENT AGREEMENT ENTERED INTO PURSUANT TO THIS SECTION SHALL CONTAIN THE COVENANTS AND CONDITIONS PERTAINING TO THE CONSTRUCTION, ACQUISITION OR IMPROVEMENT OF A WASTEWATER TREATMENT FACILITY, DRINKING WATER FACILITY OR NONPOINT SOURCE PROJECT AND REPAYMENT OF THE LOAN AS THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA DEEMS PROPER.
E.
LOAN AGREEMENTS MAY PROVIDE FOR THE PAYMENT OF INTEREST ON THE UNPAID PRINCIPAL BALANCE OF THAT AGREEMENT AT THE RATES ESTABLISHED IN THE AGREEMENT.
THE AGREEMENT MAY PROVIDE FOR PAYMENT OF THE AUTHORITY’S PROPORTIONATE SHARE OF THE EXPENSE OF ADMINISTERING THE CLEAN WATER AND DRINKING WATER REVOLVING FUNDS ESTABLISHED BY SECTIONS 49-1221 AND 49-1241 AND MAY PROVIDE THAT THE AUTHORITY PAY FINANCING AND LOAN ADMINISTRATION FEES APPROVED BY THE WATER INFRASTRUCTURE FINANCE AUTHORITY.
THESE COSTS MAY BE INCLUDED IN THE ASSESSMENT AMOUNTS PLEDGED TO REPAY THE LOAN.
AN AUTHORITY IS BOUND BY AND SHALL FULLY PERFORM THE LOAN REPAYMENT AGREEMENTS, AND THE AGREEMENTS ARE INCONTESTABLE AFTER THE LOAN IS FUNDED BY THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA.
THE BOARD SHALL AGREE TO PAY ANY COSTS INCURRED BY THE WATER INFRASTRUCTURE FINANCE AUTHORITY IN ISSUING BONDS OR OTHERWISE BORROWING TO FUND A LOAN.
F.
A LOAN REPAYMENT AGREEMENT UNDER THIS SECTION DOES NOT CREATE A DEBT OF THE AUTHORITY.
THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA MAY NOT REQUIRE THE AUTHORITY TO MAKE PAYMENT ON A LOAN AGREEMENT FROM ANY SOURCE OTHER THAN THOSE SOURCES PERMITTED IN SUBSECTION B OF THIS SECTION.
G.
AN AUTHORITY MAY EMPLOY OR CONTRACT FOR THE SERVICES OF ATTORNEYS, ACCOUNTANTS, FINANCIAL CONSULTANTS AND OTHER EXPERTS IN THEIR FIELDS AS DEEMED NECESSARY TO PERFORM SERVICES WITH RESPECT TO THE LOAN REPAYMENT AGREEMENT.
- 7 - S.B.
1134 H.
THIS SECTION IS SUPPLEMENTAL AND ALTERNATIVE TO ANY OTHER LAW UNDER WHICH AN AUTHORITY MAY BORROW MONEY OR ISSUE BONDS.
THIS SECTION SHALL BE CONSTRUED AS THE EXCLUSIVE AUTHORIZATION TO ENTER INTO LOAN AGREEMENTS WITH THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA.
I.
FOR THE PURPOSES OF THIS SECTION:
"DRINKING WATER FACILITY" HAS THE SAME MEANING PRESCRIBED IN SECTION 49-1201.
FOR THE ADMINISTRATIVE COMPLETENESS REVIEW TIME FRAME, THIRTY DAYS OR LESS.
"WASTEWATER TREATMENT FACILITY" HAS THE SAME MEANING PRESCRIBED IN SECTION 49-1201.
FOR THE SUBSTANTIVE REVIEW TIME FRAME, NINETY DAYS OR LESS.
- 8 -
3.
FOR THE OVERALL TIME FRAME, ONE HUNDRED TWENTY DAYS OR LESS.
M.
N.
For the purposes of this section:
, 1.
"ADMINISTRATIVE COMPLETENESS REVIEW TIME FRAME" HAS THE SAME MEANING PRESCRIBED IN SECTION 41-1072.
2.
"Assured water supply" means all of the following:
1.
(a) Sufficient groundwater, surface water or effluent of adequate quality will be continuously available to satisfy the water needs of the proposed use for at least one hundred years.
Beginning January 1 of the calendar year following the year in which a groundwater replenishment district is required to submit its preliminary plan pursuant to section 45-576.02, subsection A, paragraph 1, with respect to an applicant that is a member of the district, "sufficient groundwater" for the purposes of this paragraph means that the proposed groundwater withdrawals that the applicant will cause over a period of one hundred years will be of adequate quality and will not exceed, in combination with other withdrawals from land in the replenishment district, a depth to water of one thousand feet or the depth of the bottom of the aquifer, whichever is less.
In determining depth to water for the purposes of this paragraph, the director shall consider the combination of:
(a) (i) The existing rate of decline.
(b) (ii) The proposed withdrawals.
(c) (iii) The expected water requirements of all recorded lots that are not yet served water and that are located in the service area of a municipal provider.
2.
(b) The projected groundwater use is consistent with the management plan and achievement of the management goal for the active management area.
- 5 - S.B.
1134 3.
(c) The financial capability has been demonstrated to construct the water facilities necessary to make the supply of water available for the proposed use, including a delivery system and any storage facilities or treatment works.
The director may accept evidence of the construction assurances required by section 9-463.01, 11-823 11-822 or 32-2181 to satisfy this requirement.
3.
"OVERALL TIME FRAME" HAS THE SAME MEANING PRESCRIBED IN SECTION 41-1072.
4.
"SUBSTANTIVE REVIEW TIME FRAME" HAS THE SAME MEANING PRESCRIBED IN SECTION 41-1072.
- 6 -
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How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill modifies numerous sections of the Arizona Revised Statutes related to county water augmentation authorities, including defining terms, authorizing bond issuance, and adjusting procedural requirements.

  • Section 45-1901

    over fifty per cent PERCENT → over fifty percent

    Standardizes the usage of 'percent' in the definition.

  • Section 45-1901

    ANY facility necessary or convenient to obtain, divert, withdraw, transport, exchange, deliver, treat, CONSERVE, STORE or recharge → any facility necessary or convenient to obtain, divert, withdraw, transport, exchange, deliver, treat, conserve, store or recharge

    Corrects capitalization for consistency in terminology.

  • Section 45-1973

    EITHER OF THE FOLLOWING: → either of the following:

    Corrects capitalization for consistency in terminology.

  • Section 45-1991

    THE AUTHORITY, ACTING THROUGH THE BOARD, MAY ISSUE REVENUE BONDS IN A PRINCIPAL AMOUNT THAT THE AUTHORITY DETERMINES IS NECESSARY TO PROVIDE SUFFICIENT MONIES TO ACQUIRE OR CONSTRUCT PROJECTS PURSUANT TO THIS CHAPTER.

    Grants the authority the power to issue revenue bonds for project financing.

  • Section 45-1994

    the executive director of the board or the chair-person's or director's designee shall fix a time and place → the chairman CHAIRPERSON shall fix a time and place

    Clarifies roles in the scheduling of hearings for bond issues.

  • Section 45-1976

    PRINCIPAL AND interest coupons from DUE ON bonds → principal and interest due on bonds

    Standardizes capitalization in financial language.

  • Section 45-1996

    TO SECURE ANY BONDS PURSUANT TO THIS ARTICLE, THE BOARD, BY RESOLUTION, MAY: → to secure any bonds pursuant to this article, the board, by resolution, may:

    Adjusts capitalization for consistency.

  • Section 45-1996

    the bonds shall provide that: → The bonds shall provide that:

    Capitalizes the first word for standard sentence structure.

  • Section 45-1991

    THE AUTHORITY MAY ISSUE REVENUE BONDS IN CONJUNCTION WITH ANY OTHER OPTIONAL OR ALTERNATIVE PLANS PROVIDED IN THIS CHAPTER.

    Expands the authority's capabilities in bond issuance.

  • Section 45-1994

    before adopting the resolution → after fixing a date for the hearing

    Clarifies the timing of actions related to resolutions.

  • Section 45-1976

    THE secretary-treasurer of the authority shall: → The secretary-treasurer of the authority shall:

    Standardizes the opening sentence structure.

Action History

  1. Transmit to Senate

  2. PASSED

  3. DPA

  4. DPA/SE

  5. House Second Reading

  6. House First Reading.

  7. Transmit to House

  8. PASSED

  9. DPA

  10. DP

  11. Senate Second Reading

  12. Senate First Reading

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 92 not signed on · 22 voted No

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (92)

92 members have not signed on to this bill.

Show all 92 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed

Passed 46 Yea · 10 Nay · 4 Other
Party YeaNayPresentNot Voting
Democrat 22203
Republican 24801
Total 461004
% of votes cast 77%17%0%7%
How each member voted (60)
Member Party Vote
Aaron Márquez Democrat Yea
Alma Hernandez Democrat Yea
Anna Abeytia Democrat Yea
Betty J Villegas Democrat Yea
Brian Garcia Democrat Yea
Cesar Aguilar Democrat Not Voting
Christopher Mathis Democrat Yea
Consuelo Hernandez Democrat Yea
Elda Luna-Nájera Democrat Yea
Janeen Connolly Democrat Yea
Junelle Cavero Democrat Yea
Kevin Volk Democrat Yea
Lorena Austin Democrat Yea
Lupe Contreras Democrat Yea
Lydia Hernandez Democrat Not Voting
Mae Peshlakai Democrat Nay
Mariana Sandoval Democrat Yea
Myron Tsosie Democrat Yea
Nancy Gutierrez Democrat Yea
Oscar De Los Santos Democrat Yea
Patty Contreras Democrat Yea
Quantá Crews Democrat Yea
Sarah Liguori Democrat Yea
Seth Blattman Democrat Not Voting
Stacey Travers Democrat Nay
Stephanie Simacek Democrat Yea
Stephanie Stahl Hamilton Democrat Yea
Alexander Kolodin Republican Nay
Beverly Pingerelli Republican Yea
Chris Lopez Republican Yea
David Livingston Republican Yea
David Marshall, Sr. Republican Yea
Gail Griffin Republican Yea
James Taylor Republican Yea
Jeff Weninger Republican Yea
John Gillette Republican Yea
Joseph Chaplik Republican Not Voting
Julie Willoughby Republican Yea
Justin Olson Republican Nay
Justin Wilmeth Republican Yea
Khyl Powell Republican Nay
Laurin Hendrix Republican Yea
Leo Biasiucci Republican Yea
Lisa Fink Republican Nay
Lupe Diaz Republican Yea
Matt Gress Republican Yea
Michael Carbone Republican Yea
Michael Way Republican Nay
Michele Peña Republican Yea
Neal Carter Republican Yea
Nick Kupper Republican Yea
Pamela Carter Republican Nay
Quang H Nguyen Republican Yea
Rachel Keshel Republican Nay
Ralph Heap Republican Nay
Selina Bliss Republican Yea
Steve Montenegro Republican Yea
Teresa Martinez Republican Yea
Tony Rivero Republican Yea
Walt Blackman Republican Yea

Official roll call →

Passed

Passed 17 Yea · 12 Nay · 1 Other
Party YeaNayPresentNot Voting
Democrat 01201
Republican 17000
Total 171201
% of votes cast 57%40%0%3%
How each member voted (30)
Member Party Vote
Analise Ortiz Democrat Nay
Brian Fernandez Democrat Nay
Catherine Miranda Democrat Nay
Denise “Mitzi” Epstein Democrat Nay
Eva Burch Democrat Nay
Eva Diaz Democrat Nay
Flavio Bravo Democrat Nay
Lauren Kuby Democrat Nay
Lela Alston Democrat Nay
Priya Sundareshan Democrat Nay
Rosanna Gabaldón Democrat Nay
Sally Ann Gonzales Democrat Nay
Theresa Hatathlie Democrat Not Voting
Carine Werner Republican Yea
David C. Farnsworth Republican Yea
David Gowan Republican Yea
Frank Carroll Republican Yea
Hildy Angius Republican Yea
J.D. Mesnard Republican Yea
Jake Hoffman Republican Yea
Janae Shamp Republican Yea
John Kavanagh Republican Yea
Kevin Payne Republican Yea
Mark Finchem Republican Yea
Shawnna Bolick Republican Yea
Thomas "T.J." Shope Republican Yea
Timothy "Tim" Dunn Republican Yea
Venden "Vince" Leach Republican Yea
Warren Petersen Republican Yea
Wendy Rogers Republican Yea

Official roll call →

Subjects

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Frequently asked questions

Who sponsors SB 1134?
SB 1134 is sponsored by Thomas "T.J." Shope (Republican).
What is the current status of SB 1134?
This bill died with 57th Legislature - First Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 1134?
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