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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
water infrastructure finance; sunset repeal
Purpose
Repeals the termination date for the Water Infrastructure Finance Authority (WIFA).
Background
The Arizona Finance Authority (AFA) Board of Directors, established in the Office of Economic Opportunity (OEO), governs WIFA. The OEO is set to terminate on July 1, 2023, unless continued by the Legislature (A.R.S. § 41-3023.15).
Statute allows WIFA to: 1) issue negotiable water quality bonds and water supply development bonds; 2) guarantee the debt obligations of borrowers; 3) administer the Clean Water Revolving Fund, the Drinking Water Revolving Fund and the Water Supply Development Revolving fund; 4) apply for, accept and administer grants and other financial assistance from the U.S. government or other sources; 5) guarantee debt obligations of, and provide linked deposit guarantees through third party lenders to specified political subdivisions, drinking water facilities and water providers; 6) enter into capitalization agreements with the U.S. Environmental Protection Agency; 7) adopt rules governing the application for and awarding of financial assistance to wastewater treatment facilities, drinking water facilities and nonpoint source projects; 8) adopt rules governing the administration of specified funds and the issuance of water quality bonds; 9) provide grants, staff assistance or technical assistance in the form of loan repayment agreements and other professional assistance to political subdivisions, counties with fewer than 500,000 persons, Indian tribes, community water systems and water providers; 10) assess fees; 11) manage funds under the CERCLA Brownfields Cleanup Revolving Loan Fund Program, as requested; and 12) execute administrative actions necessary to perform its duties (A.R.S. § 49-1203).
The House Natural Resources, Energy and Water Committee of Reference and Senate Natural Resources, Energy and Water Committee of Reference (COR) held a public meeting on Wednesday, January 5, 2022, to review the performance audits prepared by the Office of the Auditor General, evaluate WIFA's responses to the sunset review factors and receive public testimony. The COR recommended that the Legislature continue WIFA for eight years, until July 1, 2030 (COR Minutes). WIFA is set to terminate on July 1, 2022, unless continued by the Legislature (A.R.S. § 41-3022.19).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Repeals the termination date for WIFA.
2. Becomes effective on the general effective date, retroactive to July 1, 2022.
House Action
NREW 1/25/22 DP 12-0-0-0
3rd Read 2/3/22 59-0-1
Prepared by Senate Research
February 28, 2022
RC/MH/slp