Arizona 2023 2023 Regular Session

Arizona Senate Bill SB1432 Comm Sub / Analysis

Filed 03/31/2023

                      	SB 1432 
Initials PAB 	Page 1 	Caucus & COW 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
First Regular Session 
Senate: NREW DP 7-0-0-0 | 3rd Read 28-1-1-0 
House: NREW DP 10-0-0-0 
 
SB 1432: assured water; small residential developments.. 
Sponsor: Senator Wadsack, LD 17 
Caucus & COW 
Overview 
Requires a person seeking a building permit for six or more residences within an active 
management area in an unincorporated area of a county to demonstrate an assured water supply 
before presenting the permit application for county approval. 
History 
Subdivided lands function as the building blocks for residential development in Arizona. 
Subdivided lands are improved or unimproved lands that have been or will be divided into six or 
more lots, parcels or fractional interests for sale or lease. These lands also include stock 
cooperatives, lands that have been or will be divided as part of a common promotional plan and 
residential condominiums. However, subdivided lands do not include leasehold offerings of one 
year or less (A.R.S. § 32-2101). 
In Arizona's six active management areas (AMAs), someone who plans to sell or lease subdivided 
lands in an AMA must obtain a certificate of assured water supply from the Arizona Department 
of Water Resources (ADWR) or obtain a commitment for water service from a city, town or private 
water company with a designation of assured water supply. Otherwise, a municipality or county 
cannot approve the subdivision plat, and the State Real Estate Commissioner will not issue a 
public report authorizing the sale or lease of the subdivided lands. An assured water 
supply means: 
1) Sufficient groundwater, surface water or effluent of adequate quality that will be legally, 
physically and continuously available to meet proposed water needs for at least 100 years; 
2) Any projected groundwater use is consistent with the AMA's management plan and 
achieving its management goal; and 
3) The applicant has demonstrated the financial capability to build the infrastructure 
necessary to make water available for the proposed use (A.R.S. § 45-576). 
Provisions 
1. Requires a person who seeks a building permit for six or more residences within an AMA in 
an unincorporated area of a county, regardless of the residences' lease term, to obtain a 
certificate of assured water supply from ADWR before presenting the permit application for 
county approval. (Sec. 1) 
2. Exempts the applicant from the above requirement if the applicant obtains a written 
commitment of water service from a city, town or private water company designated as having 
an assured water supply. (Sec. 1) 
3. Makes technical and conforming changes. (Sec. 1) 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note