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SB1217 • 2026

water supply development fund; cap

SB1217 - water supply development fund; cap

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Timothy "Tim" Dunn
Last action
2026-06-12
Official status
Senate Rules: None
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Water Supply Development Fund Cap

This bill sets a limit on how much money can be in the Water Supply Development Fund.

What This Bill Does

  • Limits the amount of money that can be kept in the Water Supply Development Fund.
  • Allows loans to water projects up to $3 million and grants up to $2 million.
  • Permits buying or refinancing debt for water supply development at market rates.
  • Provides insurance for local bonds used for water supply purposes.

Who It Names or Affects

  • Water providers in Arizona
  • Entities that receive loans or grants from the fund

Terms To Know

Revolving Fund
A fund where money is continuously recycled for similar purposes.
Eligible Entities
Organizations that can receive loans or grants from the fund.

Limits and Unknowns

  • The bill does not specify how much the cap on the fund will be.
  • It is unclear what happens if the fund's money becomes insufficient to cover bond payments.

Bill History

  1. 2026-06-12 Senate

    Senate Rules: None

  2. 2026-06-12 Senate

    Senate first read

Official Summary Text

SB1217 - water supply development fund; cap

Current Bill Text

Read the full stored bill text 
SB1217 - 572R - I Ver

REFERENCE TITLE:
water supply development fund;
cap

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1217

Introduced by

Senator
Dunn

AN
ACT

Amending section 49-1273, Arizona Revised
Statutes; RELATING to the water INFRASTRUCTURE finance AUTHORITY.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 49-1273, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-1273.

Water supply development revolving fund; purposes

A. Monies in the water supply development revolving
fund may be used for the following purposes:

1. Making loans to eligible entities in this state
under section 49-1274 for water supply development projects within this
state.� A single loan shall not exceed $3,000,000.

2. Making grants or providing technical assistance
to eligible entities for water supply development projects in this
state.
A single grant shall not exceed $2,000,000.

3. Purchasing or refinancing debt obligations of
water providers at or below market rate if the debt obligation was issued for a
water supply development purpose.

4. Providing financial assistance to water providers
with bonding authority to purchase insurance for local bond obligations
incurred by them for water supply development purposes.

5. Paying the costs to administer the fund.

6. Conducting water supply studies.

B. If the monies pledged to secure water supply
development bonds issued pursuant to section 49-1278 become insufficient
to pay the principal and interest on the water supply development bonds
guaranteed by the water supply development revolving fund, the authority shall
direct the state treasurer to liquidate securities in the fund as may be necessary
and shall apply those proceeds to make current all payments then due on the
bonds. The state treasurer shall immediately notify the attorney
general and auditor general of the insufficiency. The auditor
general shall audit the circumstances surrounding the depletion of the fund and
report the findings to the attorney general. The attorney general
shall conduct an investigation and report those findings to the governor and
the legislature.
END_STATUTE