HB2125 - 571R - Senate Fact Sheet

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. Exempts, from the one-year statute of limitations for actions taken against public entities, a claim against a district by a municipal water provider regarding a contract for the district to provide water with a term of 20 years or more. Revives a time-barred cause of action and allows the action to be filed or refiled before December 31, 2026.

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).

Statute requires all actions against a public entity to be brought within one year after the cause of action accrues. A person who has a claim against a public entity must file a claim with the person authorized to accept service for the entity in accordance with the Arizona Rules of Civil Procedure within 180 days after the cause of action accrues. The claim must contain: 1) facts sufficient to permit the public entity to understand the basis on which liability is claimed; and 2) a specific amount for which the claim can be settled and the facts supporting that amount. Any claim that is not filed within 180 days after the cause of action accrues is barred and no action may be maintained after the 180-day period lapses (A.R.S. §§ 12-821 and 12-821.01).

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. Exempts, from the one-year statute of limitations for actions taken against public entities, a claim against an irrigation and water conservation district by a municipal water provider regarding a contract for the district to provide water with a term of 20 years or more.

3. Applies the prohibition and exemption to any cause of action that is commenced on or after the general effective date or was commenced before the general effective date.

4. Revives a cause of action that would be time barred based on a statute of limitations, claim presentation deadline or expiration of any other time limit and allows the action to be filed or refiled before December 31, 2026.

5. Makes technical and conforming changes.

6. Becomes effective on the general effective date.

Amendments Adopted by Committee

1. Exempts, from the one-year statute of limitations for actions taken against public entities, a claim against an irrigation and water conservation district by a municipal water provider regarding a contract for the district to provide water with a term of 20 years or more.

2. Applies the prohibition and exemption to any cause of action that is commenced on or after the general effective date or was commenced before the general effective date.

3. Revives specified time-barred causes of action and allows the action to be filed or refiled before December 31, 2026.

Senate Action

FIN 3/24/25 DPA/SE 4-3-0