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ArizonaHB 2098Fifty-seventh Legislature - Second Regular SessionHouseWALLET

county water augmentation authorities; bond

Sponsored By: Gail Griffin (Republican)

Signed by Governor

attorney general notificationauthority to issue bondsbondscounty water augmentation authoritiesprovisions of bondwastewater treatmentwaters - title 45

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Investors get tax-free water bond income

Arizona and local governments cannot tax water authority bonds issued under this law, transfers of those bonds, or income they produce. The tax savings depend on how much qualifying bond income an investor receives.

More ways to finance county water projects

County water authorities can build or acquire facilities to obtain, move, treat, store, or recharge water, and can acquire water rights. They can issue revenue bonds, lend bond money to operating units, and borrow from Arizona’s Water Infrastructure Finance Authority for drinking-water, wastewater, or nonpoint-source projects; help may include principal that is forgiven. Loan repayment can include approved financing costs and must come from revenues allowed by law. Boards can pledge authority money for bond payments, set up reserves, and use bond proceeds for bond costs; bond-related fees can go to the bond fund, while other fees can go to the general fund. The bonds are the authority’s responsibility alone and are payable from pledged revenues; Arizona and the county are not responsible. Bond resolutions still must state the amount and terms and why the bonds are needed, but no longer need to say other financing was impractical.

Water users pay shares of project costs

When an operating unit benefits from a bond-funded project, it must collect money from each end user who benefits. Each user pays a share based on their allocated share of the project’s benefits. Collections must cover reserves, operations, upkeep, depreciation, and bond payments. Water-use restrictions still apply.

Short deadlines for water bond challenges

Before issuing bonds, the water authority’s board must notify the Arizona Attorney General and describe the project. The Attorney General has 10 days to issue an opinion; an opinion finding the bonds do not comply with the law prevents their issuance. A person has 30 calendar days after the board is authorized to issue bonds to challenge certain project actions or the bond issue.

Sponsors & Cosponsors

Sponsor

  • Gail Griffin

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 108 • No: 4

Senate vote • 4/7/2026

Third Reading: Passed

Yes: 27 • No: 2

Senate vote • 3/10/2026

Natural Resources: DP

Yes: 8 • No: 0

House vote • 2/23/2026

Third Reading: Passed

Yes: 55 • No: 2

House vote • 2/2/2026

Rules: C&P

Yes: 8 • No: 0

House vote • 1/27/2026

Natural Resources, Energy & Water: DP

Yes: 10 • No: 0

Actions Timeline

  1. Signed by Governor

    4/13/2026Governor

  2. Third Reading: Passed

    4/7/2026Senate

  3. Rules: PFC

    3/16/2026Senate

  4. Natural Resources: DP

    3/10/2026Senate

  5. Senate Second Reading

    3/3/2026Senate

  6. Senate First Reading

    3/2/2026Senate

  7. Third Reading: Passed

    2/23/2026House

  8. Committee of the Whole: do pass

    2/19/2026House

  9. Rules: C&P

    2/2/2026House

  10. Natural Resources, Energy & Water: DP

    1/27/2026House

  11. House Second Reading

    1/13/2026House

  12. House First Reading

    1/12/2026House

Bill Text

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