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HB2758 - 572R - H Ver
House Engrossed
McMullen Valley;
eligible entities; groundwater
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2758
AN
ACT
AMENDING SECTIONS 11-254.09 AND 33-422, ARIZONA
REVISED STATUTES; REPEALING SECTION 45-552, ARIZONA REVISED STATUTES; AMENDING
TITLE 45, CHAPTER 2, ARTICLE 8.1, ARIZONA REVISED STATUTES, BY ADDING A NEW
SECTION 45-552; AMENDING SECTIONS 45-556, 45-2281, 48-901, 48-902 AND 48-909,
ARIZONA REVISED STATUTES; RELATING TO THE TRANSPORTATION OF GROUNDWATER.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 11-254.09, Arizona Revised
Statutes, is amended to read:
START_STATUTE
11-254.09.
Water improvements program; grants; requirements; annual report
A. The board of supervisors may establish a program
to allow persons to make gifts, grants or donations for the purpose of
providing financial assistance to qualified owners of residential real property
for making improvements to an existing drinking water well or providing for
water hauling for water delivery or
a water delivery system for
the residence.
B. The board shall designate an entity to operate
the program, to establish criteria for grants and to award grants as prescribed
by this section.� The entity may be a county agency, department or division or
may be a private, nonprofit corporation as determined by the board of
supervisors.
C. The program shall do all of the following:
1. Limit grant recipients to persons who are
low-income or fixed-income owners of residential property.
2. Develop application criteria and criteria for
awarding grants.
3. Restrict a grant recipient's use of grant monies
to deepening an existing drinking water well for the recipient's residence
, to acquiring or installing one or more storage tanks for receiving
and storing water delivered through water hauling
or to plumbing or
replumbing the recipient's residence for a water delivery system.
D.
Except as provided in section 45-556,
subsection G,
the board of supervisors may not use general county monies
for grants under the program.
E. The entity that
operates the program shall make and submit to the county board of supervisors,
the president of the senate and the speaker of the house of representatives on
or before July 1 of each year a report containing a description of program
operations of the preceding year, including the amount of gifts, grants or
donations received and the grants awarded.
END_STATUTE
Sec.
2.
Section
33-422, Arizona Revised Statutes, is amended to read:
START_STATUTE
33-422.
Land divisions; recording; disclosure affidavit
A. A
seller of five or fewer parcels of land, other than subdivided land, in an
unincorporated area of a county and any subsequent seller of
such a
any
parcel
that is the subject of an affidavit recorded as
prescribed by this section
shall
complete and furnish a written affidavit of disclosure to the buyer at least
seven days before the transfer of the property and the buyer shall acknowledge
receipt of the affidavit.
B. The
affidavit must be written in twelve-point type.
C. A
release or waiver of a seller's liability arising out of any omission or
misrepresentation contained in an affidavit of disclosure is not valid or
binding on the buyer.
D. The
buyer has the right to rescind the sales transaction for a period of five days
after the affidavit of disclosure is furnished to the buyer.
E. The
seller
or,
on the request, direction or instruction of the seller, the escrow agent for
the transaction who is licensed PURSUANT to title 6, chapter 7
shall record the executed affidavit of disclosure at the
same time that the deed is recorded. The county recorder is not required to
verify the accuracy of any statement in the affidavit of
disclosure. A subsequently recorded affidavit supersedes any
previous affidavit
,
and the subsequent seller or, on the request, direction or instruction of the
subsequent seller, the escrow agent for the subsequent transaction who is
licensed pursuant to title 6, chapter 7 shall record the subsequently executed
affidavit prescribed by this section. A licensed escrow agent who
records an affidavit pursuant to this subsection is not liable for any
inaccurate information in the affidavit, including any omissions of material
facts
.
F. The
affidavit of disclosure shall contain all of the following disclosures, be
completed by the seller, meet the requirements of section 11-480 and
follow substantially the following form:
When
recorded mail to:
__________________________
__________________________
__________________________
__________________________
Affidavit of Disclosure
Pursuant to A.R.S. � 33-422
I,
______________________________________________ (seller(s)) being duly sworn,
hereby make this affidavit of disclosure relating to the real property situated
in the unincorporated area of:
_______________________,
County, State of Arizona, located at:
______________________________________________________________
and
legally described as:
(Legal description attached hereto as exhibit
"A")
(property).
1. There� ◻ is� ◻ is
not . . . . legal access to the property, as defined in A.R.S. � 11-831 . . . .
◻ unknown
Explain:
____________________________________________________
______________________________________________________________
______________________________________________________________
2. There� ◻ is� ◻ is
not . . . . physical access to the property. ◻ unknown
Explain:
____________________________________________________
______________________________________________________________
______________________________________________________________
3. There ◻ is� ◻ is
not . . . . a statement from a licensed surveyor or engineer available stating
whether the property has physical access that is traversable by a two-wheel
drive passenger motor vehicle.
4. The legal and physical access to the
property ◻ is� ◻ is not . . . . the same....◻ unknown�
◻ not applicable.
Explain:
____________________________________________________
______________________________________________________________
______________________________________________________________
If access to
the parcel is not traversable by emergency vehicles, the county and emergency
service providers may not be held liable for any damages resulting from the
inability to traverse the access to provide needed services.
5. The road(s) is/are� ◻ publicly
maintained� ◻ privately maintained�� ◻ not
maintained� ◻ not applicable. If applicable, there� ◻
is� ◻ is not . . . . a recorded road maintenance agreement.
If the roads
are not publicly maintained, it is the responsibility of the property owner(s)
to maintain the roads and roads that are not improved to county standards and
accepted for maintenance are not the county's responsibility.
6. A
portion or all of the property� ◻ is� ◻ is
not . . . . located in a FEMA designated regulatory floodplain. If the property
is in a floodplain, it may be subject to floodplain regulation.
7. The
property� ◻ is� ◻ is not subject
to� ◻ fissures or� ◻ expansive
soils.� ◻ unknown
Explain:
_____________________________________________________
______________________________________________________________
______________________________________________________________
8. The following services are currently
provided to the property: ◻ water� ◻ sewer�
◻ electric� ◻ natural gas� ◻ single
party telephone� ◻ cable television services.
9. The
property ◻ is� ◻ is not . . . .
served by a water supply that requires the transportation of water to the
property. If the property is served by a water supply that requires the
transportation of water to the property, the seller shall disclose the name and
contact information of the water hauler or water hauling company that is
currently providing the transportation services to the property and the name
and location of the water supply from which the water is currently being
transported.
Water hauler
name: ______________������ Phone:__________
Water
supply: __________________����� Location:_________
10. The property is served by� ◻ a
private water company� ◻ a municipal water provider� ◻ a
private well� ◻ a shared well ◻ no
well. If served by a shared well, the shared well� ◻ is ◻ is
not . . . . a public water system, as defined by the safe drinking water act
(42 United States Code � 300f).�
IF SERVED BY A PRIVATE WELL, the
private well
☐
IS
☐
IS NOT REGISTERED
WITH THE DEPARTMENT OF WATER RESOURCES.
☐
UNKNOWN. THE WELL
☐
DOES
☐
DOES
NOT HAVE A PUMP COMPLETION REPORT ON FILE WITH THE DEPARTMENT OF WATER
RESOURCES.
☐
UNKNOWN.� WELL
REGISTRATION NUMBER: _______
Notice to
buyer: If the property is served by a well, a private water company or a
municipal water provider the Arizona department of water resources may not have
made a water supply determination.
WELLS REQUIRE MAINTENANCE.� IT IS
THE BUYER'S RESPONSIBILITY TO INSPECT A PRIVATE WELL.� DUE TO GEOLOGIC
CONDITIONS, WATER DELIVERY SYSTEMS OR WATER HAULING MAY BE REQUIRED. TRANSPORTING
WATER BY WATER HAULING IS ACCEPTABLE
.
�
For more
information about water supply, contact the water provider.
11. The
property or the water used on the property ◻ is� ◻ is
not the subject of a statement of claimant for the use of water in a general
adjudication of water rights. ◻ unknown.
This is a
lawsuit to determine the use of and relative priority of water
rights. A map of adjudicated areas is available at the website of
the department of water resources.
12. The
property ◻ is ◻ is not located in a basin or subbasin
from which groundwater may be transported away pursuant to title 45, chapter 2,
article 8.1, a.r.s. If the property is located in such a basin or
subbasin, the seller shall disclose the basin or subbasin that the property is
located in:
◻ BUTLER
VALLEY GROUNDWATER BASIN.
◻ MCMULLEN
VALLEY GROUNDWATER BASIN.
◻ HARQUAHALA
IRRIGATION NON-EXPANSION AREA.
◻ BIG
CHINO GROUNDWATER SUBBASIN.
NOTICE TO BUYER:
PURSUANT TO TITLE 45, CHAPTER 2, ARTICLE 8.1, a.r.s., AN ELIGIBLE ENTITY
LOCATED OUTSIDE OF A BASIN OR SUBBASIN LISTED ABOVE MAY LAWFULLY WITHDRAW AND
TRANSPORT GROUNDWATER AWAY FROM SUCH a BASIN OR SUBBASIN TO THE LOCATIONS AND
FOR THE PURPOSES allowed BY THAT ARTICLE. THE WITHDRAWAL AND
TRANSPORTATION OF GROUNDWATER PURSUANT TO that ARTICLE MAY RESULT IN DAMAGE TO
RESIDENTS OF SURROUNDING LANDS AND OTHER WATER USERS, WHICH THE ELIGIBLE ENTITY
MAY BE REQUIRED TO MITIGATE
.
�
12.
13.
The property
◻ does have� ◻ does not have . . .
. an on-site wastewater treatment facility (i.e., standard septic or
alternative system to treat and dispose of wastewater). ◻ unknown.
If applicable: a) The property ◻ will ◻ will
not . . . . require installation of an on-site wastewater
treatment facility; b) The on-site wastewater treatment
facility ◻ has ◻ has not been inspected.
14.
THE
DATE THE ON-SITE WASTEWATER TREATMENT FACILITY WAS LAST INSPECTED:
���(DATE)
��
.
□
UNKNOWN.
15.
IF THE ON-SITE
WASTEWATER TREATMENT FACILITY IS A STANDARD SEPTIC SYSTEM, THE DATE THE SEPTIC
TANK WAS LAST PUMPED:
(DATE)
.
□
UNKNOWN.
NOTICE TO BUYER: SEPTIC SYSTEMS
ARE LAWFUL.� CESSPOOLS ARE UNLAWFUL. A PERSON MAY NOT USE A CESSPOOL
FOR SEWAGE disposal
.
13.
16.
The property
◻ has been� ◻ has not been . . . .
subject to a percolation test. ◻ unknown.
14.
17.
The property
◻ does have� ◻ does not have one or
more solar energy devices that are ◻ leased� ◻ owned.
If the solar energy devices are leased, the seller shall disclose the
name and contact information of the leasing company.
Leasing
company name: _______________ Phone: _______________
15.
18.
The
property� ◻ does have� ◻ does not
have one or more battery energy storage devices that are ◻ leased�
◻ owned.
If the
battery energy storage devices are leased, the seller shall disclose the name
and contact information of the leasing company.
Leasing
company name: _________________� Phone: ____________
16.
19.
The
property� ◻ does� ◻ does not . . .
. meet the minimum applicable county zoning requirements of the applicable
zoning designation.
17.
20.
The sale of
the property ◻ does ◻ does not . .
. meet the requirements of A.R.S. � 11-831 and � 32-2181 regarding
land divisions. If those requirements are not met, the property
owner may not be able to obtain a building permit. It is unlawful
pursuant to
A.R.S.
� 11-831,
subsection F and
A.R.S.
� 32-2181, subsection D for a person or group
of persons to attempt to avoid the subdivision laws of this state by acting in
concert to divide a parcel of land into six or more lots or
parcels. The county where the land division occurred or the state
real estate department may investigate and enforce the prohibition against
acting in concert to unlawfully divide a parcel of land into six or more lots
or parcels. The seller or property owner shall disclose each of the
deficiencies to the buyer.
Explain:
____________________________________________________
______________________________________________________________
______________________________________________________________
18.
21.
The
property� ◻ is� ◻ is not located in
the clear zone of a military airport or ancillary military facility, as defined
in A.R.S. � 28-8461. (Maps are available at the state real estate
department's website.)
19.
22.
The
property� ◻ is� ◻ is not located in
the high noise or accident potential zone of a military airport or ancillary
military facility, as defined in A.R.S. � 28-8461. (Maps are available at
the state real estate department's website.)
20.
23.
Notice: If
the property is located within the territory in the vicinity of a military
airport or ancillary military facility, the property is required to comply with
sound attenuation standards as prescribed by A.R.S. � 28-8482. (Maps are
available at the state real estate department's website.)
21.
24.
The property
◻ is ◻ is not located under
military restricted airspace. ◻ unknown. (Maps are
available at the state real estate department's website.)
22.
25.
The property
◻ is ◻ is not located in a military electronics range as
defined in A.R.S. � 9-500.28 and � 11-818. ◻ unknown.
(Maps are available at the state real estate department's website.)
23.
26.
The property
◻ is ◻ is not located within the influence area of a
military installation or range or Arizona national guard site as defined in
sections
A.R.S.
�
9-500.50 and
�
11-818.01
.
(Maps are available at the state real estate department website.)
24.
27.
Use of the
property� ◻ is� ◻ is not limited in
any way relating to an encumbrance of title due to a lis pendens, a court order
or a state real estate department order or a pending legal
action. If the use of the property is limited due to an encumbrance
of title, the seller or property owner shall disclose the limitations to the
buyer.
Explain:
_____________________________________________________
______________________________________________________________
______________________________________________________________
28
. If the
property was sold pursuant to a trustee's sale, execution sale or mortgage
foreclosure or by a personal representative of an estate, those sellers are
exempt from providing an affidavit.� The buyer should investigate these unknown
items.
This
affidavit of disclosure supersedes any previously recorded affidavit of
disclosure.
I certify
under penalty of perjury that the information contained in this affidavit is
true, complete and correct according to my best belief and knowledge.
Dated
this
(date)
day of
(year)
by:
Seller's
name (print): ______________ Signature: _____________
Seller's
name (print): ______________ Signature: _____________
State
of Arizona�� )
������������������
)�� ss.
County
of _________)
Subscribed
and sworn before me this
_ (date) __
day of
(year)
,
by ________________________________________.
__________________________
Notary public
My commission expires:
(date)
Buyer(s)
hereby acknowledges receipt of a copy of this affidavit of disclosure this
(date)
day of
(year)
Buyer's name (print): _______________ Signature:
_____________
Buyer's name (print): _______________ Signature:
_____________
G. If the seller is
a trustee of a subdivision trust as defined in section 6-801, the beneficiary
of the subdivision trust shall provide the disclosure affidavit required by
this section.
G.
H.
For the
purposes of this section, seller and subsequent seller do not include
any of the
following:
1.
A trustee of
a deed of trust who is selling property by a trustee's sale pursuant to chapter
6.1 of this title
.
or
2.
Any officer who is selling property by execution sale pursuant to title
12, chapter 9 and chapter 6 of this title.�
If the seller
is a trustee of a subdivision trust as defined in section 6-801, the
disclosure affidavit required by this section shall be provided by the
beneficiary of the subdivision trust.
3. A PERSONAL representative acting
on behalf of an estate that is selling the property.
END_STATUTE
Sec. 3.
Repeal
Section 45-552, Arizona Revised
Statutes, is repealed.
Sec. 4. Title
45, chapter 2, article 8.1, Arizona Revised Statutes, is amended by adding a
new section 45-552, to read:
START_STATUTE
45-552.
Transportation of groundwater withdrawn in McMullen Valley basin
to an active management area; annual report; definition
A. An entity described in subsection
B of this section that owns historically irrigated acres in the McMullen Valley
groundwater basin may withdraw groundwater from the land for transportation to
a location and for the purposes prescribed in subsection D of this section:
1. If the groundwater is withdrawn:
(
a
) From a
depth to one thousand two hundred feet at the site or sites of the proposed
withdrawals.
(
b
) At a rate
that, when added to the existing rate of withdrawals in the area, does not
cause the groundwater table at the site or sites of the withdrawals to decline
more than an average of ten feet per year during the one hundred year evaluation
period.
2. In an amount either:
(
a
) Per acre of
the historically irrigated acres, not to exceed:
(
i
) Six acre-feet
in any year.
(
ii
) Thirty
acre-feet for any period of ten consecutive years computed in continuing
progressive series beginning in the year transportation of groundwater from the
land begins.
(
b
) Established
by the director, but only if the director determines that withdrawals in an
amount greater than that allowed by subdivision (
a
) of
this paragraph will not unreasonably increase damage to residents of
surrounding land and other water users in the McMullen Valley groundwater
basin, or that one or more of the entities withdrawing the groundwater will
mitigate the damage to the residents and other water users.
3. By a public service corporation,
if all costs associated with withdrawing, transporting and delivering
groundwater away from the McMullen Valley groundwater basin are collected from
the customers of the public service corporation's water district where the
transported groundwater is used.
4. If before the withdrawal of
groundwater from the McMullen Valley groundwater basin, the eligible entity has
demonstrated compliance with the criteria in this subsection using a
hydrological study.� The director shall prescribe the contents of the study
that is submitted with the application.
5. If before the withdrawal of
groundwater from the McMullen Valley groundwater basin, the eligible entity
installs water measuring devices, or other similarly reliable and accessible
methods as approved by the department, to determine the volume of groundwater
that is withdrawn from wells related to the transportation activity and that is
transported out of the McMullen Valley groundwater basin by pipelines, canals
or conduits.
6. If within thirty days after the
withdrawal of groundwater from the McMullen Valley groundwater basin for
transportation, the eligible entity submits a monthly report to the department
containing all of the following information:
(
a
) The volume
of groundwater the entity withdrew from the McMullen Valley groundwater basin
in the preceding month.
(
b
) The volume
of groundwater the entity transported out of the McMullen Valley groundwater
basin in the preceding month.
(
c
) The end use
or destination of groundwater the entity transported out of the McMullen Valley
groundwater basin in the preceding month.
B. The following entities are
eligible to transport groundwater away from the McMullen Valley groundwater
basin pursuant to subsection A of this section:
1. This state.
2. A political subdivision of this
state.
3. A public service corporation that
is regulated by the corporation commission and that holds a certificate of
convenience and necessity for water service.
C. Rules adopted pursuant to section
45-554 shall apply to this section, including for the reporting of
groundwater transported from the McMullen Valley groundwater basin.
D. The following locations and
purposes are eligible to receive groundwater transported away from the McMullen
Valley groundwater basin pursuant to subsection A of this section:
1. An initial active management area
for use by an eligible entity or the Arizona water banking authority pursuant
to section 45-2491.
2. La Paz county by an eligible
entity in a total cumulative volume not to exceed ten percent of the total
annual volume of groundwater the department determines is available for
transport out of the McMullen Valley groundwater basin. An eligible entity in
La Paz county may do either of the following:
(
a
) Transport
groundwater from historically irrigated acres in the McMullen Valley
groundwater basin owned by the eligible entity to a location in La Paz county
for the eligible entity's own use.
(
b
) Sell or
lease groundwater from historically irrigated acres owned by the eligible
entity that are located in La Paz county to a designated provider in the
Phoenix, Tucson or Pinal active management area for the designated provider's
own use
, if the total cumulative volume of
groundwater
sold or leased pursuant to this subdivision does not exceed ninety percent of
the total cumulative volume of groundwater available to la paz
groundwater
solod or leased pursuant to this subdivision does not exceed ninety percent of
the total cumulative volume of groundwater available to la paz
county
pursuant to this paragraph.
E. Any local use of groundwater by an
eligible entity that sells or leases groundwater pursuant to subsection D,
paragraph 2 of this section shall count toward the eligible entity's maximum
per acre withdrawal limit prescribed in subsection A, paragraph 2, subdivision
(
a
) of this section.
F. On or before July 1 of each year,
the department shall submit a report to the governor, the president of the
senate and the speaker of the house of representatives, and shall provide a
copy of this report to the secretary of state, of the total amount of
groundwater all eligible entities withdrew from the McMullen Valley groundwater
basin in the preceding year.
G. This section does
not prohibit a person from storing and recovering water that is not groundwater
and that is stored pursuant to chapter 3.1 of this title. Water that is not groundwater
and that is stored pursuant to chapter 3.1 of this title does not count toward
the withdrawal limits prescribed in subsection a, paragraph 2 of this section.
H. For the purposes of
this section, "historically irrigated acres" means land overlaying an
aquifer that was irrigated with groundwater from that aquifer before january 1,
1988.
END_STATUTE
Sec.
5.
Section
45-556, Arizona Revised Statutes, is amended to read:
START_STATUTE
45-556.
Groundwater t
ransportation fee; annual adjustment; credits;
enforcement
A. Except as provided in subsection B of
this section, a person who directly or indirectly transports groundwater,
withdrawn in a groundwater basin or
sub-basin
subbasin
as
provided by this article or in the Pinal active management area, away from the
county in which it was withdrawn to an initial active management area shall pay
annually to the county a groundwater transportation fee determined by the
director for each acre-foot of groundwater transported directly or
indirectly away from the county,
less
minus
any amount of central Arizona project water
actually used on the property from which the groundwater is transported.
The fees
collected pursuant to this subsection are
considered general county monies and shall
collected pursuant
to this subsection are considered general county monies and shall
be
deposited in the county general fund.
B. A person is not required to pay a
transportation fee under this section for stored water withdrawn pursuant to
recovery well permits issued by the director pursuant to this title.
C. Except as provided in subsection D of
this section
,
the director shall
set the fee as follows for the cumulative amount of groundwater transported
away from the county,
less
minus
any amount of central Arizona project water
actually used on the property from which the groundwater is transported:
Net Groundwater Transported
Fee Per Acre-Foot
������� 0
- 1,000,000 acre-feet������������ $ 3.00
������� 1,000,001 -
2,000,000 acre-feet������������ $ 5.00
������� 2,000,001 -
3,000,000 acre-feet������������ $ 7.50
������� 3,000,001 -
4,000,000 acre-feet������������ $10.00
������� 4,000,001 -
5,000,000 acre-feet������������ $15.00
�������
Over 5,000,000 acre-feet������������ $30.00
D. The director shall
:
1. within
sixty days after the effective date of THIS amendment TO THIS section, Post on
the department's website the table of fees established pursuant to subsection C
of this section and annually update the table with the annual change in the GDP
price deflator and fee adjustments determined pursuant to paragraph 2 of this
subsection.
2.
Annually adjust the
dollar amount of the fee according to the annual changes in the GDP price
deflator, as defined in section 41-563, using the 1993 calendar year as
the base year. The director shall immediately notify all concerned
parties of the fee adjustments under this
subsection
PARAGRAPH
.
E. Credits are allowed against the fees
imposed by this section as described and in the amounts provided under this
subsection. If the amount of the credit exceeds the amount of the
fee imposed for any year, the unused portion of the credit may be carried
forward and applied to subsequent years' fees until the amount of the credit is
exhausted. The allowable credits are as follows:
1. The amount of any increase in
property tax revenues, including contributions in lieu of property taxes under
title 9, chapter 4, article 3, derived from remote municipal property, as
defined in section 42-15251, from which the groundwater is
withdrawn. The credit shall account for increased revenues due to
improvements to the property and increased revenues due to higher property tax
valuations and assessment ratios resulting from changes in use of the
property. The credit shall not account for increased revenues due to
normal market or economic factors.
�
The amount of the
credit for any year is the sum of the amounts computed under subdivisions (a)
and (b)
of this paragraph
as
follows:
(a) Delete from consideration under this
subdivision any property with respect to which an amount is computed under
subdivision (b)
of this paragraph
. Subtract
the amount of property tax or in lieu revenues that would have been derived
from the remaining property during the immediately preceding tax year if the
use of and improvements to the property had remained unchanged since the date the
city or town acquired the property from the amount of property tax or in lieu
revenues actually derived from that property during the immediately preceding
tax year. If a city or town conveys all or part of its interest in
remote municipal property to another political subdivision, the political
subdivision succeeds to the credit allowed under this section. The
amount of credit computed under this subdivision shall be computed each year
,
beginning in the year groundwater is first
transported
,
and, if not used to offset the fee
under this section, shall be cumulated from year to year.
(b) This subdivision applies with
respect to any portion of the remote municipal property that, before January 1,
1992, was classified at that time as class four property for purposes of
property taxation under title 42 but was developed or improved at any time
after December 31, 1991 and is not currently classified as class two
property. Subtract the amount of property tax or in lieu revenues
that would have been derived from that developed or improved portion of the
remote municipal property during the immediately preceding tax year if the use
of and improvements to the property had remained unchanged since the date the
city or town acquired the property from the amount of property tax or in lieu
revenues actually derived from that portion of the property during the
immediately preceding tax year. If a city or town conveys all or
part of its interest in remote municipal property to another political
subdivision, the political subdivision succeeds to the credit allowed under
this section.
�
The amount of credit
computed under this subdivision shall be computed each year
,
beginning in the year that the property is
developed or improved and reclassified for tax purposes
,
and, if not used to offset the fee under this
section, shall be cumulated from year to year.
2. An amount equal to the market value
of land donated to the county if the county agrees in writing to prohibit or
limit the withdrawal of groundwater from the land. The amount of the
credit shall account for the reduced value of the land due to the groundwater
withdrawal limitations.
3. An amount agreed to by
intergovernmental agreement between the county in which the groundwater is
withdrawn and the city, town or other person transporting the groundwater.
F. The board of supervisors of a county
to which fees are due and payable under this section may request the county
attorney to commence and prosecute any action or proceeding to enforce the
collection of the fees.
G. Notwithstanding
subsection A of this section, a county that establishes a water improvements
program pursuant to section 11-254.09 may designate an amount or
percentage of the total groundwater transportation fees received to be used
under the water improvements program only for qualified owners of residential
property who reside within the groundwater basin or subbasin from which the
groundwater was withdrawn and transported away.� The county shall separately
account for monies received from the fees imposed pursuant to subsection a of
this section, and any monies in excess of the amount
[G. Notwithstanding
subsection A of this section, a county that establishes a water improvements
program pursuant to section 11-254.09 may designate an amount or
percentage of the total groundwater transportation fees received to be used
under the water improvements program only for qualified owners of residential
property who reside within the groundwater basin or subbasin from which the
groundwater was withdrawn and transported away.� The county shall separately
account for monies received from the fees imposed pursuant to subsection a of
this section, and any monies in excess of the amount
or percentage
designated by the county shall be deposited in the county general fund.
END_STATUTE
Sec.
6.
Section
45-2281, Arizona Revised Statutes, is amended to read:
START_STATUTE
45-2281.
Establishment of funds; allocation of authority revenues; member
dues; applicability
A. On the authority's formation, a grant
fund, a water acquisition fund and an operating fund are
established. The authority's revenues shall be deposited in and
disbursed from the funds as provided by this section. Revenues
deposited in the grant fund may be used to make grants to authority members for
water acquisition, water conservation and water reuse. Revenues
deposited in the water acquisition fund may be used to acquire water pursuant
to section 45-2245. Revenues deposited in the operating fund
shall be used as provided in subsection E of this section.
B. Except as provided in subsection D of
this section and for an authority that is formed in a county that contains a
portion of the Harquahala irrigation non-expansion area and that does not
contain any portion of an active management area, all revenues of the authority
shall be deposited in the grant fund except the following:
1. Dues paid by authority members which
shall be deposited in the operating fund.
2. Ten percent of all amounts paid by
municipal subcontractors under subcontracts entered into as provided in section
45-2244, subsection B which may be deposited in the operating fund or the
water acquisition fund as determined by the board.
3. Fifty percent of all amounts paid by
subcontractors of the authority pursuant to subcontracts entered into as
provided in section 45-2244, subsection E or F.
4. That portion of the monies earned by
the authority under subcontracts entered into pursuant to section 45-2245,
subsection H that is equal to the cost to the authority of obtaining the water
transferred under those subcontracts and, after payment of $7,500,000 as
adjusted pursuant to subsection C of this section, all of the monies earned
from those subcontracts.
C. Except as provided in subsection B of
this section, all of the authority's revenues shall be deposited in the grant
fund until the full amount of the initial grant and any additional amounts
required in a grant agreement between the authority and the member that
receives the grant have been disbursed from the grant fund as provided in this
subsection. The initial grant from the grant fund shall be made to the
authority member that transferred, or caused to be transferred, to the
authority the right to the delivery of eighteen thousand five hundred acre-feet
per year of Colorado River water in connection with the authority's
formation. The amount of the grant to that member shall equal
$7,500,000 plus any additional monies that the authority and the member agree
to in a grant agreement between the authority and the member, which amount
shall be adjusted annually from the date of the authority's formation either
for inflation or as may otherwise be provided in the subcontracts of the
authority or in the grant agreement, until the amount of the initial grant
required by this subsection and any additional amounts required by the grant
agreement are paid in full. The initial grant may be disbursed in a
lump sum or in partial payments in accordance with the request of the authority
member that is entitled to receive the grant and as revenues become available
to the authority and are deposited in the grant fund.� The authority member
that is entitled to receive the grant may request that disbursements be made whenever
revenues have been deposited in the grant fund. Notwithstanding
section 45-2282, the authority shall promptly disburse those revenues
that are deposited in the fund on receipt of a request from that member.
D. After the disbursement of the full
amount of the initial grant and any additional amounts required in a grant
agreement of the authority from the grant fund as provided in subsection C of
this section, the authority's revenues, except dues paid by authority members,
may be deposited in the grant fund, water acquisition fund or operating fund as
determined by the board.
E. The authority shall establish a
schedule of dues that is sufficient, when aggregated with other monies
available for the payment of administrative expenses, to pay the estimated
administrative expenses of the authority. Dues shall be assessed and
allocated equitably among authority members as determined by the
board. All dues received by the authority shall be deposited in the
operating fund. Expenditures may be made from the operating fund to
pay:
1. The authority's administrative
expenses.
2. The costs of the authority's
formation including an equitable portion of the costs of the municipal
corporation that transferred rights to the delivery of Colorado River water as
provided in section 45-2202.
3. The costs associated with holding any
entitlement to water acquired by the authority.
4. Subject to subsection C of this
section, the costs incurred by the authority in the operation of any project
undertaken by the authority pursuant to this chapter.
5. Amounts payable to the United States
annually for the right to hold and use the eighteen thousand five hundred
acre-feet per year of Colorado River water acquired by the authority pursuant
to section 45-2202, subsection C which amounts may include any tax, fee
or excise imposed on the sale or transfer of the water.
F. Any authority member that is in
arrears in the payment of its dues for more than sixty days shall lose the
right of its appointed director to vote on all authority matters until all of
the dues that are in arrears are fully paid. An authority member
whose dues are in arrears does not lose membership in the authority because of
the arrearage.
G.
Except as
provided in section 45-556, subsection G,
a
ll transportation
fees paid to the authority pursuant to section 45-556 may be deposited in the
grant fund, water acquisition fund or operating fund established
by
pursuant to
this section as determined by the board.
H. For an authority that is formed in a
county with a population of less than ninety thousand persons, all revenues of
the authority shall be deposited in the grant fund, water acquisition fund or
operating fund established
by
pursuant to
this section as
determined by the board.
END_STATUTE
Sec. 7. Section 48-901, Arizona Revised
Statutes, is amended to read:
START_STATUTE
48-901.
Definitions
In this article, unless the context otherwise requires:
1. "Assessment" or "assessment
roll" means a special assessment made under this article.
2. "Block" means a parcel of ground,
regular or irregular, bounded by streets or by streets and district boundary
lines.
3. "Chairman of the board" means the
person designated to preside over meetings of the board of directors.
4. "Clerk"
or "district
clerk"
means the clerk of the board of supervisors, who shall be
the clerk under this article and in whose office shall be filed all papers
directed or required to be filed with the clerk.
5. "Commercial farming" means the
intensive cultivation of arable land by the raising of agricultural or
horticultural products as a principal source of the owner's livelihood.
6. "Commercial stock raising" means the
breeding, raising and care of domestic animals as a principal source of the
owner's livelihood.
7. "Contractor" includes personal
representatives or assignee of the contractor.
8. "Delinquency" means delinquency in the
payment of an assessment.
9. "Engineer" or "district
engineer" means a person designated or employed by the board of directors
of a district to perform any or all of the engineering work authorized to be
done by the district under this article.
10. "Improvement bond" means a bond issued
under this article.
11. "Lighting plants" includes electric
light plants, electric power plants, gas plants, distribution systems, poles,
parts, pipes, conduits, wires, tanks, reservoirs, generators for gas or
electricity, transmission lines, towers, lamps, transformers of every
character, machinery, apparatus, equipment and all appliances and structures
necessary or incidental to the construction, installation or operation of a
complete electric light, power and gas plant and distribution system placed on
the streets improved, though extended beyond.
12. "Lot"
:
(
a
)
Includes any portion, piece, parcel or subdivision
of land
.
, but
(
b
) Does
not
include
property owned or controlled by any person as a railroad
right of
way
right-of-way
.
13. "Owner" means the person in whom legal
title appears by recorded deed, or the person in possession under claim or
title, or the person exercising acts of ownership for
himself
the person
or as the personal representative of the
owner, including the boards of trustees of school districts and the boards of
education of high school districts owning property within the proposed
improvement district.
14. "Sewers" includes wastewater treatment
facilities, tunnels, excavations, ditches, drains, conduits, channels, outlets,
outfalls, cesspools, manholes, catch basins, flush tanks, septic tanks,
connecting sewers of every character, machinery, apparatus, equipment and all
appliances and structures necessary or incidental to the construction,
installation or operation of a complete sewer system for either sanitary or
drainage purposes.
15. "Street" includes avenues, alleys,
highways, lanes, crossings, intersections, courts, places and grounds opened or
dedicated to public use and public ways.
16. "Street superintendent" or
"superintendent" means a county employee designated by the board of
supervisors to perform the duties of street superintendent for all the
districts organized under this article in any county.
17. "Time of delinquency"
means the time when assessments become delinquent.
18.
17.
"Treasurer" or "district
treasurer" means the treasurer of the county in which a district is
situated, who shall be the treasurer of the district.
19.
18.
"Unincorporated area" means any
portion of a county not within the limits of an incorporated city or town, so
situated that any of the improvements provided for in this article might
reasonably or properly be made or constructed for the benefit of the
inhabitants of the area under existing special assessment statutes if the area
were situated within an incorporated city or town.
20.
19.
"Wastewater systems" means sewers and
other wastewater treatment facilities.
21.
20.
"Waterworks"
:
(
a
)
Means works for the storage or development of
water for domestic uses
.
, including
(
b
) Includes
drinking water treatment facilities,
wells, pumping machinery, power plants,
standpipes,
pipelines
and all equipment necessary for those purposes.
22.
21.
"Work" or "improvement"
includes any of the improvements mentioned and authorized to be made in this
article, the construction, reconstruction and repair of all or any portion of
any such improvement, and labor, services, expenses and material necessary or
incidental thereto.
END_STATUTE
Sec. 8. Section 48-902, Arizona Revised
Statutes, is amended to read:
START_STATUTE
48-902.
Authorization for improvement district; areas and lands excluded
A. An improvement district may be established in any
unincorporated area, whether or not contiguous, by the board of supervisors of
the county in which the proposed district is located, for the purpose of
constructing and operating a wastewater treatment facility
or a
domestic water delivery system that is located in a subsequent active
management area established pursuant to title 45, chapter 2, article 2 or that
is located in a basin or subbasin from which groundwater may be transported
pursuant to title 45, chapter 2, article 8.1, for the purpose of delivering
water through water hauling
and making other local improvements or
acquisitions in the district or for the benefit of the district that are
permitted
allowed
by this article, and may
contract for or in any other manner provide transportation services within the
district through special assessments in such districts, or the issuing of bonds
or making other contractual arrangements for improvements, and levying taxes
for the operation and maintenance of improvements and streets within the
district or for the benefit of the district.
B. With written consent of the state land
commissioner
,
an improvement district may include state
lands or state trust lands within its boundaries, but those lands shall not be
included for purposes of forming or objecting to the formation or expansion of
a district.
C. Notwithstanding subsection A of this section, an
improvement district established for the purposes described in section 48-909,
subsection A, paragraph 1, 6, 7 or 10 may include areas in an incorporated city
or town with the consent of the city's or town's governing body.
D. At the time of the establishment of an
improvement district,
none of
the following shall
not
be included in the improvement district:
1. Territory lying within an incorporated city or
town except as provided in subsection C of this section.
2. Lands owned or held by any common carrier for use
in connection with interstate or intrastate commerce.
3. Unpatented mining claims.
E. Unless the improvement district is formed for the
purposes described in section 48-909, subsection A, paragraph 7, at the
time of establishment of an improvement district,
none of
the following shall
not
be included in the improvement
district if the owner objects to such inclusion as provided in subsection F of
this section:
1. Lands owned or held for mining or metallurgical
purposes.
2. Any tract of land of twenty or more acres in area
actually used for commercial farming or commercial stock raising, or any
subdivided lands of which lots or blocks have not been offered generally for
sale since the lands were subdivided.
F. The owner of any property included in the
classifications listed in subsection E of this section may have the property
excluded from the proposed improvement district if the owner files a verified
statement with the board of supervisors
prior to
before
the adoption of the resolution ordering the formation of
the district, stating that the person executing the statement is one of the
owners of the respective lot or parcel, the respective classification, that the
lot or parcel is within such classification on the date of the statement, the
legal description of the lot or parcel and that the signer requests that the
lot or parcel be excluded from the improvement district. Any
property owner may contest the statement at the hearing on formation of the
improvement district.� The board of supervisors shall rule on all such
objections.
G. A domestic water improvement district may be
formed or expanded in noncontiguous areas. If the proposed
boundaries of a noncontiguous district are located within six miles of an
incorporated city or town, the district shall obtain the consent of the
governing body of the city or town
prior to
before
the formation or expansion of the district.
END_STATUTE
Sec. 9. Section 48-909, Arizona Revised
Statutes, is amended to read:
START_STATUTE
48-909.
Purposes for which public improvements may be undertaken; powers
incidental to public improvements
A. When the public interest or convenience requires,
the board of directors of an improvement district may
order
:
1.
order
the whole or any
portion, either in length or width, of one or more of the streets of the
district graded or regraded, paved or repaved, landscaped or otherwise
maintained, improved or reimproved.
2.
order
the acquisition,
construction, reconstruction or repair of any street, tunnel, subway, viaduct
or conduit in, on, under or over which the district may have an easement or
right-of-way therefor.
3.
order
the construction or
reconstruction of sidewalks, crosswalks, curbs, gutters, culverts, bridges,
tunnels, siphons, manholes, steps, parkings and parkways.
4.
order
the placement,
replacement or repair of pipes, hydrants and appliances for fire protection.
5.
order
the acquisition,
construction, reconstruction, maintenance or repair of wastewater treatment
facilities, sewers, ditches, drains, conduits, pipelines and channels for
sanitary and drainage purposes, with outlets, cesspools, manholes, catch
basins, flush tanks, septic tanks, connecting sewers, ditches, drains,
conduits, channels and other appurtenances in, under, over or through any
street or any land of the district or any right-of-way granted or
obtained for such a purpose, either within or without the district limits.
6.
order
the acquisition,
construction, reconstruction, maintenance or repair of waterworks, including
wells, standpipes and
drinking water treatment facilities, for
the delivery of water for domestic purposes,
including for the
delivery of water in a subsequent active management area established pursuant
to title 45, chapter 2, article 2 or in a basin or subbasin from which
groundwater may be transported pursuant to title 45, chapter 2, article 8.1
through water hauling,
and of wells, ditches, canals, channels,
conduits, pipelines and siphons, together with the necessary or usual
appurtenances for carrying
storm water
stormwater
or water from irrigation ditches, watercourses, streams or springs into,
through or out of the district in, under, over or through any street, or any
land of the district or any right-of-way granted or obtained for such a
purpose, either within or without the district limits. This section
does not prohibit the board of directors of an improvement district from
purchasing an existing domestic water delivery system within the district or
outside the district or constructing an initial or improving an existing
domestic water delivery system inside or outside the district.
7.
order
the construction,
reconstruction or repair of breakwater levees or walls, riverbank protection or
replacement of riverbanks and supporting land. A district
established for this purpose shall cooperate and coordinate its plans and
activities with the county flood control district established in the county and
any incorporated city or town in which the district is established.
8.
order
the acquisition,
construction, reconstruction or repair of lighting plants and poles, wire
conduits, lamps, standards and other appliances for the purpose of lighting and
beautifying streets or other public lands.
9.
order
the construction,
reconstruction or repair of any work incidental to or connected with any
improvement.
10.
order
the acquisition, in
the name of the district, by gift, purchase or otherwise and the maintenance,
repair, improvement or disposal of any real or personal property necessary or
convenient for district operation for a community center, park or recreational
area.
11. Pursuant to section 48-902,
the
board of directors of an improvement district may
contract for or in any
other manner provide transportation services within the district.
B. In addition to the powers specifically granted by
or reasonably inferred from this article, an improvement district through its
board of directors may:
1.
Except as prescribed by subsection
f of this section,
acquire by gift, purchase, condemnation or otherwise
in the name of the district and own, control, manage and dispose of any real or
personal property or interest in the property necessary or convenient for the
construction, operation and maintenance of any of the improvements provided for
by this article.
2. Join with any other improvement district, any
city, town, governmental agency or Indian tribe, or any agency or
instrumentality of an Indian tribe, or any person in the construction,
operation or maintenance of any of the improvements hereby authorized.
3. Join with any other improvement district or any
city, town, county or Indian tribe, or any agency or instrumentality of an
Indian tribe, in improving streets running on or along the boundary of the
district and levy assessments and issue bonds for the district's part of the
cost of those improvements.
4. Sell, lease or otherwise dispose of any property
of the district or interest in the property when the property is no longer
required for the purposes of the district or the use of which may be permitted
without interfering with the use thereof by the district.
5. Sell or otherwise dispose of any property or
material acquired in the construction or operation of any improvements as a
by-product or otherwise, and acquire rights-of-way for the disposal
by condemnation or otherwise.
6. Accept from this state or the federal government,
or any agency, department or instrumentality of either, grants for or in aid of
the construction of any of the improvements provided for by this chapter.
7. Notwithstanding any other law, sell improvement
bonds to the federal government, or any agency, department or instrumentality
of the federal government, for the construction of any of the improvements
provided by this chapter.
8. Enter into contracts with this state or the
federal government, or any agency, department or instrumentality of either or
both, for the construction or supervision of construction by
the
this
state
of Arizona
or the federal
government, or any agency, department or instrumentality of either or both, but
reserving to the district the right to assess against the property benefited by
the improvement, and located within the district, that portion of the cost of the
improvement that does not qualify for aid under a state or federal grant.
9. Operate, maintain and repair the streets within
the district and any improvements made pursuant to this chapter.
10. Do all things incidental to the exercise of the
powers granted by this article.
C. A county improvement district formed for the
purpose of purchasing an existing or constructing a new domestic water delivery
system within the district or outside the district shall have the same
authority and responsibility as an incorporated city or town pursuant to title
45 and chapters 22 and 28 of this title.
D. An improvement district that proposes to provide
domestic water service within the certificated area of a public service
corporation serving domestic water shall provide just compensation to the
public service corporation pursuant to section 9-516 for the facilities
or certificated area taken. The right to compensation for a public
service corporation from an improvement district shall not apply if no
facilities of the public service corporation are actually acquired by the
improvement district and either of the following conditions exist:
1. At the time the law providing for compensation
became effective the certificated area for which compensation is sought is an
area that was within the boundaries of an improvement district.
2. A certificate is issued to a public service
corporation for any area that is within an improvement district at the time the
certificate is issued.
E. If the county board of supervisors determines
that the public interest or convenience so requires, an improvement district
that is formed for the purposes of providing domestic water service pursuant to
article 4 of this chapter may also provide domestic wastewater service.
F. An improvement district that is
formed in a subsequent active management area established pursuant to title 45,
chapter 2, article 2 or in a basin or subbasin from which groundwater may be
transported pursuant to title 45, chapter 2, article 8.1 for the purpose of
delivering water through water hauling may exercise the power of eminent domain
only for the limited purpose of acquiring or otherwise securing a site in the
subsequent active management area or basin or subbasin from which groundwater
may be transported for the CONSTRUCTION of and legal access to a single well
and a standpipe to produce water and make water available at the site for
delivery through water hauling.
END_STATUTE