appropriation; Colorado River litigation fund

Plain English Breakdown

The official source material does not provide specific details on how the fund will be used beyond legal actions related to Colorado River water rights.

Colorado River Litigation Fund Funding

HB2116 allocates $1 million from the state's general fund to a special account for legal costs related to Colorado River water rights.

What This Bill Does

• Allocates $1,000,000 from the state General Fund to the Colorado River Litigation Fund in fiscal year 2026-2027.

Who It Names or Affects

• The state of Arizona
• Arizona Department of Water Resources

Terms To Know

Colorado River Litigation Fund

A special fund used by the state to cover legal costs related to disputes about Colorado River water.

Arizona Revised Statutes (A.R.S.)

The official collection of laws passed by the Arizona legislature.

Limits and Unknowns

• Does not specify how the fund will be used beyond legal actions related to Colorado River water rights.
• Does not detail what happens if the $1 million is insufficient for all necessary litigation costs.

Official Summary Text

HB2116 - 572R - Senate Fact Sheet

Assigned to
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COMMITTEE

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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APPROP�������� 1/21/26����� DP������ 17-1-0-0

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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.