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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2098: county water augmentation authorities; bond
Sponsor: Representative Griffin, LD 19
Committee on Natural Resources, Energy & Water
Overview
Modifies the bonding authority and financial assistance options of a county water augmentation authority.
History
Current law allows a county water augmentation authority (Authority) to be established in any active management area (AMA) in which the following conditions exist:
1) more than 50 percent of the area of the AMA lies within a single county;
2) the population of the county is less than 150,000; and
3) a political subdivision of the state within the AMA receives Colorado River water pursuant to contracts with the Central Arizona Project and U.S. Secretary of Interior (A.R.S. § 45-1902).
If formed, an Authority is administered by a board of directors that works with state agencies, special districts, authorities and political subdivisions of the state and the United States to augment the water supplies of the county in which the authority is established (A.R.S. § 45-1941)
Provisions
1. Specifies where the secretary-treasurer of the Authority is required to deposit the monies received by the Authority. (Sec. 2)
2. Prescribes required actions of the secretary-treasurer of the Authority relating to payment of principal and interest due on bonds and the investment of monies in the bond fund. (Sec. 3)
3. Repeals the existing statute giving authority for an Authority to issue bonds. (Sec. 4)
4. Allows an Authority, acting through the board of directors of an Authority (Board), to issue revenue bonds in a principal amount that the Authority determines is necessary to provide sufficient monies to acquire or construct projects, including in conjunction with any other optional or alternative plans provided. (Sec. 5)
5. Removes certain content from being required to be included with an Authority's resolution for a bond issue or issues. (Sec. 6)
6. Modifies public hearing notification requirements of an Authority. (Sec. 7)
7. Allows the Board to secure any bonds to:
a. provide that issued bonds may be secured by a first lien on all or part of the monies paid into the appropriate account or subaccount administered by the authority;
b. pledge or assign to or in trust for the benefit of the holder any part or appropriate account or subaccount of the monies in the funds as is necessary to pay the principal and interest of the bonds as they come due;
c. set aside, regulate and dispose of any reserves and sinking funds;
d. provide that sufficient amounts of the proceeds from the sale of the bonds may be used to fund any reserves or sinking funds established by the resolution;
e. prescribe the procedure by which the terms of any contact with bondholders may be amended or abrogated, the amount of bonds that the holders must consent to and the manner in which that consent may be given;
f. provide for payment from the proceeds of the sale of the bonds of all legal and financial expenses incurred by the Board in issuing, selling, delivering and paying the bonds; and
g. do any other matters that may affect the security and protection of the bonds. (Sec. 8)
8. Requires the bond to be signed by the chairperson or vice chairperson of the Board and the secretary-treasurer of the Authority. (Sec. 8)
9. Outlines liability for and the validity of a bond. (Sec. 8)
10. Allows the Board to use available monies to purchase bonds that may be canceled at a price not exceeding:
a. the redemption price than applicable plus accrued interest to the next interest payment date, if the bonds are then redeemable; or
b. the redemption price applicable on the first date after purchase on which the bonds become subject to redemption plus accrued interest to that date, if the bonds are not then redeemable. (Sec. 8)
11. Outlines bond execution requirements, limitation on personal liability, limits on the Board's ability to contest a bond's validity and lien attachment. (Sec. 8)
12. Exempts bonds, bond transfers and bond income from state and local taxation. (Sec. 8)
13. Repeals statute requiring bonds issued by the Authority to be certified by the Attorney General. (Sec. 9)
14. Requires the Board notify the Attorney General of the Authority's intention to issue bonds and outlines requirements of the notification. (Sec. 10)
15. Allows an Authority to construct, acquire or improve a wastewater treatment facility, drinking water facility or nonpoint source project with monies borrowed from or financial assistance provided by the Water Infrastructure Finance Authority (WIFA). (Sec. 11)
16. Allows the Authority to enter into a loan repayment agreement with WIFA. (Sec. 11)
17. Prescribes requirements and eligible actions for an Authority to enter into a loan repayment agreement. (Sec. 11)
18. Allows an Authority to employ or contract for the services of attorneys, accountants, financial consultants and other experts as deemed necessary to perform services to with respect to the loan repayment agreement. (Sec. 11)
19. Specifies that entering into loan agreements with WIFA is supplemental and alternative to any other law which an Authority may borrow money. (Sec. 11)
20. Defines drinking water facility and wastewater treatment facility. (Sec. 11)
21. Expands the definition of project. (Sec. 1)
22. Makes technical and conforming changes. (Sec. 1, 2, 3, 6, 7, 8)
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26. Initials CW HB 2098
27. 1/22/2026 Page 0 Natural Resources, Energy & Water
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