Assigned to NREW FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR H.B. 2535
private property; wells; regulation; prohibition
Purpose
Prohibits a well, and any buildings or structures supplied by that well, located in an
unincorporated area from being subject to municipal regulation, if a municipality annexes the area
containing the well.
Background
A city or town may extend or increase the corporate limits of the city or town by annexing
contiguous territory. To be considered contiguous and proper for annexation, a territory must:
1) adjoin the exterior boundary of the annexing city or town for at least 300 feet; 2) be at least 200
feet wide at all points; and 3) have a distance between the location where the annexed territory
adjoins the annexing city or town and the farthest point of the annexed territory that is no more
than twice the maximum width of the annexed territory. A city or town may not annex territory if
it would result in an unincorporated territory that is completely surrounded by the annexing city
or town or a combination of other cities or towns (A.R.S. § 9-471).
Once an unincorporated area is annexed, a municipality may impose regulations on the
annexed territory including fire codes or ordinances, building requirements and requirements for
the installation and maintenance of public water facilities and service (A.R.S. §§ 9-276; 9-463.01;
and 9-808).
An exempt well is a well that has a pump with a maximum capacity of not more than 35
gallons per minute and that is used to withdraw groundwater (A.R.S. § 45-402). A landowner may
not drill an exempt well if any part of the land is within 100 feet of the operating water distribution
system of a municipal provider within an Active Management Area, unless: 1) the municipal
provider does not provide written verification to the landowner within 30 days after receipt of a
written request for water service; 2) the total capital cost and fees for connecting the municipal
distribution system exceed the costs for drilling and fully equipping an exempt well; 3) the
municipal provider failed to provide within 30 days, or denied, a request for the easement across
other land to connect to the municipal distribution system; or 4) the landowner provides written
verification from the municipal provider that the landowner must not receive or request water
service from the municipal provider while the exempt well is operational (A.R.S. § 45-454).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
Private Well Regulation
1. Exempts, notwithstanding any other law, a well drilled with the consent of the well owner on
private property in an unincorporated area from municipal regulation if the unincorporated area
where the well is located is annexed by a city or town after the well has been drilled. FACT SHEET
H.B. 2535
Page 2
2. Prohibits a city or town from directly or indirectly:
a) making the issuance or approval of a permit contingent on a well owner connecting the
well owner's well to a municipal water system; or
b) denying or failing to take timely action on a request for or approval of a permit on the basis
that the well owner's well is not currently connected or must be connected in the future to
a municipal water system if the unincorporated area where the well is located is annexed
by the city or town after the well has been drilled.
Building or Structure Regulation
3. Prohibits, notwithstanding any other law, with the consent of the building or structure owner,
a building or structure that requires water from a well drilled on private property in an
unincorporated area from being required to connect to a municipal water system.
4. Prohibits a city or town from directly or indirectly:
a) making the issuance or approval of a permit related to the building or structure contingent
on the owner of the building or structure connecting the building or structure to a municipal
water system; or
b) denying or failing to take timely action on a request for or approval of a permit on the basis
that the building or structure is not currently connected or must be connected in the future
to a municipal water system if the unincorporated area where the well is located is annexed
by a city or town after the well has been drilled.
Miscellaneous
5. Becomes effective on the general effective date.
House Action
NREW 1/26/23 DP 6-4-0-0
3
rd
Read 2/21/23 31-29-0
Prepared by Senate Research
March 14, 2023
RA/slp