Official Summary Text
SB1560 - 572R - Senate Fact Sheet
Assigned to
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PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
s.b. 1560
cap; water supply
development fund
Purpose
Increases the cap
from $3,000,000 to $20,000,000 for a single loan for loans that are made from
monies in the Water Supply Development Revolving Fund (Fund) to eligible
entities for water supply development projects within Arizona.
Background
The Water
Infrastructure Finance Authority (WIFA) is a state agency authorized to provide
funding and financial assistance for water conservation, reuse and augmentation
projects for the purposes of meeting Arizona's current and long-term water
needs (A.R.S. ��
49-1203.01
and
49-1205
).
WIFA is responsible for administering the Fund which consists of: 1) monies
received from the issuance and sale of water supply development bonds; 2)
monies appropriated to the Fund; 3) monies received for water supply
development purposes from the U.S. government;
4) monies received as loan repayments, interest and penalties; 5) interest and
other income received from investing monies in the Fund; 6) gifts, grants and
donations received for water supply development purposes from any public or
private source; and 7) any other monies received by the Water Infrastructure
Finance Authority in connection with the purpose of the Fund (
A.R.S.
� 49-1271
).
Monies in the
Fund may be used for: 1) making loans of up to $3,000,000 to eligible entities
in Arizona for water supply development projects within Arizona; 2) making
grants of up to $2,000,000 or providing technical assistance to eligible
entities for water supply development projects in Arizona; 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 projects; 5) paying the costs to administer the Fund; and 6)
conducting water supply studies (
A.R.S.
� 49-1273
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
1.
Increases the cap from $3,000,000 to $20,000,000 for a single loan for
loans that are made from monies in the Fund to eligible entities for water
supply development projects within Arizona.
2.
Becomes effective on the general effective date.
Amendments Adopted by
Committee of the Whole
�
Caps a single loan from monies in the Fund to eligible entities
for water supply development projects within Arizona at $20,000,000.
Senate Action
NR ������ 2/10/26 ���� DP ����� 8-0-0
Prepared by Senate Research
February 26, 2026
SB/hk
Current Bill Text
Read the full stored bill text
SB1560 - 572R - S Ver
Senate Engrossed
cap; water supply
development fund
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1560
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.
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
$20,000,000
.
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