appropriation; Colorado River litigation fund

Plain English Breakdown

The official text confirms the fiscal year is 2026-2027 (FY 2027), but does not specify an exact effective date beyond 'general effective date'.

HB2116: Funding for Colorado River Legal Cases

This bill sets aside $1 million from the state budget in fiscal year 2027 to pay for legal cases about Arizona's share of water from the Colorado River.

What This Bill Does

• Appropriates $1,000,000 from the state General Fund.
• Sends this money to the Colorado River Litigation Fund in fiscal year 2027.
• Allows funds to be used for starting or defending lawsuits about water rights.

Who It Names or Affects

• The Arizona Department of Water Resources, which manages the Fund.
• Entities involved in legal disputes over Colorado River water apportionment and entitlements.

Terms To Know

Appropriation

The official act by the legislature to set aside money for a specific purpose from the state budget.

Colorado River Litigation Fund

A special account created by law to hold money used only for legal cases regarding Arizona's water rights on the Colorado River.

Limits and Unknowns

• Funds in the Litigation Fund cannot be used to start lawsuits against entities that already hold an entitlement to Arizona's apportionment.
• The bill does not specify which specific legal cases will use this money, only that it must relate to Colorado River water rights.

Official Summary Text

HB2116 - 572R - Senate Fact Sheet

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ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
H.B. 2116

appropriation;
Colorado River litigation fund

Purpose

Appropriates
$1,000,000 from the state General Fund (state GF) in FY 2027 to the Colorado
River Litigation Fund (Fund).

Background

Colorado River water supplies are shared by seven western states, the federal
government, several American tribes and the Republic of Mexico. Arizona obtains
over 40 percent of its water supply from the Colorado River for municipalities
and industries, agriculture, Indian tribes and environmental purposes. Several
documents and agreements that govern the operation and management of the
Colorado River are set to expire in 2026, including the: 1) 2007 Interim
Guidelines; 2) 2019 Drought Contingency Plan; and 3) 1944 Water Treaty between
the United States and Mexico (
ADWR
and
USBR
).

The Arizona Department of Water Resources administers the Fund and must
use Fund monies to initiate, defend or participate in litigation related to: 1)
Arizona's apportionment of Colorado River water; 2) any other rights of Arizona
regarding Colorado River water under statutorily outlined acts, compacts or
decrees; 3) any other federal law that affects Arizona's apportionment of
Colorado River water or the right to divert water controlled by the United
States; or 4) exercising Arizona's entitlement to water. The Arizona State
Treasurer invests and divests monies in the Fund. Monies in the Fund may not be
used for the purpose of initiating litigation against any entity that holds an
entitlement to Arizona's apportionment of Colorado River water (
A.R.S.
� 45-119
)
.

H.B. 2116
appropriates $1,000,000 from the state GF in FY 2027 to the Fund.

Provisions

1.

Appropriates
$1,000,000 from the state GF in FY 2027 to the Fund.

2.

Becomes
effective on the general effective date.

House Action

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Prepared by Senate Research

February 26, 2026

SB/SF/ci

Current Bill Text

HB2116 - 572R - H Ver

House Engrossed

appropriation;
Colorado River litigation fund

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2116

AN
ACT

Appropriating monies to the Colorado
River litigation fund.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1.
Appropriation; Colorado River litigation fund

The sum of $1,000,000 is appropriated
from the state general fund in fiscal year 2026-2027 to the Colorado River
litigation fund established by section 45-119, Arizona Revised Statutes.