ARIZONA STATE SENATE
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ANASTASIA LOBO |
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LEGISLATIVE RESEARCH INTERN |
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MOLLY GRAVER |
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LEGISLATIVE RESEARCH ANALYST FINANCE COMMITTEE Telephone: (602) 926-3171 |
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
FINANCE COMMITTEE
DATE: March 20, 2025
SUBJECT: Strike everything amendment to H.B. 2125, relating to special districts; water
Purpose
Prohibits the board of directors of an irrigation and water conservation district from levying an assessment on, and from including as taxable land, acres that have not received water deliveries within the immediately preceding five years and are not capable of being served water as outlined.
Background
An irrigation
and water conservation district may be proposed by land title holders in a
designated area for the purpose of irrigating lands in the area. To accomplish
the purpose of the district, the board of directors possesses general powers,
including: 1) acquiring or purchasing water rights; 2) acquiring and holding
stock in irrigation ditch and reservoir companies;
3) constructing, acquiring or purchasing canals, ditches, reservoirs, reservoir
sites, water, water rights, rights-of-way or other property deemed necessary
for the use of the district; 4) acquiring the right to enlarge any ditch, canal
or reservoir already or partially constructed; 5) making appropriations of
water for irrigation and power purposes; 6) establishing tolls or charges for service
of irrigation, domestic water, electricity and other commodities; and 7)
controlling the finances of the district (A.R.S. §§ 48-2903
and 48-2978).
Statute requires
the board of directors of an irrigation and water conservation district to
estimate the amount of money required to meet the obligations of the district
for the next fiscal year, including maturing bonds and interest, maintenance,
operating and current expenses, together with any additional amounts necessary
to meet any deficiency in the payment of items of expense incurred during any
previous year and to provide funds for purchases of lands sold for delinquent
taxes. The estimate must be fully itemized and the total amount of estimated
expenses. The estimate must be entered in full on the records of the district
and a certified copy of the records must be transmitted to the board of
supervisors of each county in which any lands of the district are located,
together with a certified copy of the records showing the total number of acres
of taxable land of the district and a description of the taxable lands located
in each county (A.R.S.
§ 48-3112).
The board of directors may, at a regular or special meeting, levy an assessment for the purpose of paying or refunding district indebtedness, repairing, improving, extending, maintaining and operating existing irrigation works, installing new works or systems or meeting emergencies.
The levy is adopted through a resolution which must state: 1) the purposes for which the levy is made; 2) the aggregate amount of the levy of the assessment; 3) the amount of the levy of the assessment per acre, which must be equal upon each acre subject to district taxation; 4) the method, times and manner of payment and collection of the assessment; and 5) if the assessment is payable in installments, the associated amounts and due dates. The board of directors must also, through the resolution, prescribe the rate or amount of penalty and interest accumulated on the penalty for a failure to pay the assessment or any installment of the levy of the assessment by the payment due date (A.R.S. § 48-3151).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits the board of directors of an irrigation and water conservation district from levying an assessment on, and from including as taxable land, any acres that have not received water deliveries within the immediately preceding five years and are not capable of being served water by either:
a) the district's irrigation works or systems; or
b) water providers that have a contract to receive water deliveries from the district.
2. Makes technical and conforming changes.
3. Becomes effective on the general effective date.