Arizona HB 2055: ballots; defects; notice and cure

Bill Text

HB2055 - 572R - H Ver 

 House Engrossed

 brackish groundwater 
 recovery program

 State of Arizona

 House of Representatives

 Fifty-seventh Legislature

 Second Regular Session

 2026

 HOUSE BILL 2055

AN 
ACT

amending section 49-1303, Arizona 
Revised Statutes; amending title 49, chapter 8, Arizona Revised Statutes, by 
adding article 6; 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 49-1303, Arizona Revised 
Statutes, is amended to read:

START_STATUTE49-1303. Long-term water augmentation fund; purposes; limit

A. Monies and other assets in the long-term water 
augmentation fund may be used for the following purposes:

1. Funding water supply development projects that 
import water from outside the boundaries of this state. At least 
seventy-five percent of the monies in the fiscal years 2022-2023, 2023-2024 
and 2024-2025 appropriations to the fund shall be reserved for one or 
more projects with this purpose, and those monies shall be accounted for 
separately. 

2. Purchasing imported water or rights to imported 
water.

3. Acquiring or constructing water-related 
facilities in this state to convey or deliver imported water within the this state.

4. Conducting investigations, including performing 
environmental or other reviews.

5. Contracting for water needs assessments.

6. Providing financial assistance to eligible 
entities for the purposes of financing or refinancing to finance or refinance water supply development projects 
within this state, including projects for conservation through reducing 
existing water use or more efficient uses of existing water supplies.

7. Guaranteeing debt obligations of eligible 
entities that are issued or incurred to finance or refinance water supply 
development projects within this state or providing credit enhancements in 
connection with these debt obligations.

8. Paying the costs to administer the fund.

9. Funding not more than ten full-time 
equivalent positions of the authority.

10. Developing one or 
more brackish groundwater recovery projects pursuant to article 6 of this 
chapter that create new sources of potable water within the boundaries of this 
state. 

B. In providing financial assistance from the long-term water augmentation fund, the authority shall comply 
with section 49-1304.

C. Monies in the long-term water 
augmentation fund may not be used to purchase conservation or other 
similar easements on real property. 

D. If the monies pledged to secure long-term 
water augmentation bonds issued pursuant to section 49-1309 become 
insufficient to pay the principal and interest on the long-term water 
augmentation bonds guaranteed by the long-term water 
augmentation fund, the authority shall direct the state treasurer to 
liquidate securities in the long-term water augmentation 
fund as may be necessary and shall apply those proceeds to 
make current all payments then due on the long-term water augmentation 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 long-term water 
augmentation 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.

E. The authority shall take necessary actions to 
obtain full repayment for monies or financial assistance provided from the long-term water augmentation fund by the recipients of the 
funding or financial assistance or the recipients of any water supply 
development project made available from monies from the long-term 
water augmentation fund through water subcontracts, loan repayments, 
rates, fees, charges or otherwise, as appropriate. This subsection 
does not apply to monies spent by the authority for investigations and studies 
or monies spent in connection with loan guarantees or credit enhancement. END_STATUTE

Sec. 2. Title 49, chapter 8, Arizona Revised 
Statutes, is amended by adding article 6, to read:

ARTICLE 
6. BRACKISH GROUNDWATER RECOVERY PROGRAM

START_STATUTE49-1341. Brackish groundwater recovery program fund

A. The brackish groundwater recovery 
program fund is established consisting of all of the following:

1. Monies appropriated by the 
legislature.

2. Monies received from the united 
states government for any allowable purpose of the brackish groundwater 
recovery program.

3. Monies received as loan 
repayments, interest, administrative fees and penalties.

4. Monies from any lawful activity of 
the authority, including public-private partnership agreements relating to 
water supply development projects.

5. Interest and other income received 
from investing monies in the brackish groundwater recovery program fund.

6. Gifts, grants and donations 
received from any public or private s