ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

HB 2030: cities; towns; water service; audit

Sponsor: Representative Griffin, LD 19

Committee on Natural Resources, Energy & Water

Overview

Requires certain municipalities to hire an independent auditor to conduct a rate audit and cost-of-service study of it's water and sewer service.

History

The five initial active management areas (AMA) are:

1) the Tucson AMA which includes the Upper Santa Cruz and Avra Valley sub-basins;

2) the Phoenix AMA which includes the East Salt River Valley, Fountain Hills, Carefree, Lake Pleasant, Rainbow Valley and Hassayampa sub-basins;

3) the Prescott AMA which includes the Little Chino and Upper Agua Fria sub-basins;

4) the Pinal AMA which includes the Maricopa-Stanfield, Eloy, Aguirre Valley, Santa Rosa Valley and Vekol Valley sub-basins; and

5) the Santa Cruz AMA which includes a portion of the Upper Santa Cruz Valley sub-basin (A.R.S. § 45-411) (A.R.S. § 45-411.03).

Assured water supply means:

1) sufficient groundwater, surface water or effluent of adequate quality will be continuously available to satisfy the water needs of the proposed use for at least 100 years;

2) the projected groundwater use is consistent with the management plan and achievement of the management goal for the AMA; and

3) the financial capability has been demonstrated to construct the water facilities necessary to make the supply of water available for the proposed use (A.R.S. § 45-576).

The cities in Arizona with a population larger than 240,000 are Phoenix, Tucson, Mesa, Chandler, Gilbert, Glendale and Scottsdale (2020 Census).

Provisions

1. Requires a municipality with more than 240,000 people, a designation of assured water supply and is located in an initial AMA to hire an independent auditor to conduct a full rate audit and cost-of-service study of the municipality's water and sewer service if the municipality has:

a) entered into a contract or subcontract with the Central Arizona Project;

b) participated in an intentionally created surplus program;

c) received federal monies for voluntary conservation measures of the Colorado River; or

d) sold long-term storage credits to a third party using effluent generated within the municipality's water service area. (Sec. 1)

2. Stipulates that for the rate audit and cost-of-service study:

a) a municipality must provide all books and records requested by the auditor; and

b) the auditor's report is public record. (Sec. 1)

3. Requires the auditor to investigate fees, revenue and expenditures regarding:

a) hookup fees;

b) nonutility related expenses;

c) whether customers are being double charged;

d) effluent or long-term storage credit; and

e) voluntary system conservation. (Sec. 1)

4. Requires the municipality to submit a copy of the auditor's report to the Governor, the President of the Senate and the Speaker of the House of Representatives on or before January 1, 2025. (Sec. 1)

5. Requires the municipality to provide a copy of the rate audit and cost-of-service study to the Secretary of State. (Sec. 1)

6. Repeals the municipal water systems audit on January 1, 2027. (Sec. 1)

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10. HB 2030

11. Initials EB/MG Page 0 Natural Resources, Energy & Water

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