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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
appropriation; Colorado River litigation fund
Purpose
Appropriates $1,000,000 from the state General Fund (state GF) in FY 2027 to the Colorado River Litigation Fund (Fund).
Background
Colorado River water supplies are shared by seven western states, the federal government, several American tribes and the Republic of Mexico. Arizona obtains over 40 percent of its water supply from the Colorado River for municipalities and industries, agriculture, Indian tribes and environmental purposes. Several documents and agreements that govern the operation and management of the Colorado River are set to expire in 2026, including the: 1) 2007 Interim Guidelines; 2) 2019 Drought Contingency Plan; and 3) 1944 Water Treaty between the United States and Mexico (ADWR and USBR).
The Arizona Department of Water Resources administers the Fund and must use Fund monies to initiate, defend or participate in litigation related to: 1) Arizona's apportionment of Colorado River water; 2) any other rights of Arizona regarding Colorado River water under statutorily outlined acts, compacts or decrees; 3) any other federal law that affects Arizona's apportionment of Colorado River water or the right to divert water controlled by the United States; or 4) exercising Arizona's entitlement to water. The Arizona State Treasurer invests and divests monies in the Fund. Monies in the Fund may not be used for the purpose of initiating litigation against any entity that holds an entitlement to Arizona's apportionment of Colorado River water (A.R.S. § 45-119).
H.B. 2116 appropriates $1,000,000 from the state GF in FY 2027 to the Fund.
Provisions
1. Appropriates $1,000,000 from the state GF in FY 2027 to the Fund.
2. Becomes effective on the general effective date.
House Action
NREW 1/13/26 DP 9-1-0-0
APPROP 1/21/26 DP 17-1-0-0
3rd Read 2/2/26 56-0-4
Prepared by Senate Research
February 26, 2026
SB/SF/ci