Arizona 2023 2023 Regular Session

Arizona House Bill HB2535 Comm Sub / Analysis

Filed 04/28/2023

                      	HB 2535 
Initials PAB 	Page 1 	House Engrossed 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
First Regular Session 
House: NREW DP 6-4-0-0 
 
HB 2535: private property; wells; regulation; prohibition 
Sponsor: Representative Smith, LD 29 
House Engrossed 
Overview 
Prohibits a well in an unincorporated area and any buildings or structures supplied by that well 
from being subject to municipal regulation if a municipality annexes the area containing the well. 
History 
Annexation Process 
To annex adjoining lands, a municipality must file a blank petition with the appropriate county 
recorder that contains a description and map of the proposed annexation. After this petition is 
filed, a municipal governing body will hold a public hearing to discuss the proposed annexation. 
Within a year, a completed petition signed by both of the following groups who would be subject 
to the annexation must be filed with the county recorder: 
1) Owners of at least 50% of the value of real and personal property; and 
2) At least 50% of those owning real and personal property.  
The annexation becomes final 30 days after the municipal governing body adopts an ordinance 
annexing the land (A.R.S. § 9-471). Once annexed, the lands become subject to the municipality's 
ordinances, which may include building requirements, fire codes, or requirements for a subdivider 
to install certain water facilities when a public water main is accessible (A.R.S. §§ 9-276, 9-463.01 
and 9-808). 
Additionally, an exempt well (one with a pumping capacity of less than 35 gallons per minute for 
a non-irrigation use) may not be drilled in an active management area if it is within 100 feet of the 
water distribution system for a municipal water provider with a designation of assured water 
supply. However, a landowner may apply for an exemption to this requirement if one of the 
following criteria apply: 
1) The applicant requested water service from the municipal provider and received no reply; 
2) The cost of connecting to the distribution system exceeds the cost of drilling an exempt 
well; 
3) The applicant received no reply from a landowner if the applicant needed to obtain an 
easement across other land to connect to the distribution system; or 
4) None of the above criteria apply and the municipal provider confirms that the landowner 
will not receive water service while the well is operational (A.R.S. §§ 45-402 and 45-454).  
Provisions 
1. States that a well drilled with the consent of the well owner on private property in an 
unincorporated area, notwithstanding any other law, is not subject to municipal regulation if 
the unincorporated area is annexed after the well has been drilled. (Sec. 1) 
2. Exempts an owner of a well drilled on private property in an unincorporated area from 
connecting to a municipal water system. (Sec. 1) 
3. Prohibits a city or town from directly or indirectly:    	HB 2535 
Initials PAB 	Page 2 	House Engrossed 
a) Conditioning the issuance or approval of a permit on the well owner connecting the well 
to a municipal water system; or 
b) Denying or failing to take timely action on a permit because the well s not currently 
connected or must be connected in the future to a municipal water system if the 
unincorporated area containing the well was annexed after the well was drilled.  (Sec. 1) 
4. States that with the owner's consent, a building or structure that requires water from a well 
drilled on private property in an unincorporated area is not required to connect to a municipal 
water system. (Sec. 1)  
5. Prohibits a city or town from directly or indirectly: 
a) Conditioning the issuance or approval of a permit on the owner of the building or structure 
connecting to a municipal water system; or 
b) Denying or failing to take timely action on a permit because the building or structure is not 
currently connected or must be connected in the future to a municipal water system if the 
unincorporated area containing the well was annexed after the well was drilled. (Sec. 1)