HB 2030
Initials EB/MG Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: NREW DPA 5-4-0-1
HB 2030: cities; towns; water service; audit
Sponsor: Representative Griffin, LD 19
House Engrossed
Overview
Requires certain municipalities to hire an independent auditor to conduct a rate audit and
cost-of-service study of the municipality's water and sewer service.
History
The five initial active management areas (AMA) are:
1) the Tucson AMA which includes the Upper Santa Cruz and Avra Valley sub-basins;
2) the Phoenix AMA which includes the East Salt River Valley, Fountain Hills, Carefree,
Lake Pleasant, Rainbow Valley and Hassayampa sub-basins;
3) the Prescott AMA which includes the Little Chino and Upper Agua Fria sub-basins;
4) the Pinal AMA which includes the Maricopa-Stanfield, Eloy, Aguirre Valley, Santa
Rosa Valley and Vekol Valley sub-basins; and
5) the Santa Cruz AMA which includes a portion of the Upper Santa Cruz Valley sub-
basin (A.R.S. § 45-411) (A.R.S. § 45-411.03).
Assured water supply means:
1) sufficient groundwater, surface water or effluent of adequate quality will be
continuously available to satisfy the water needs of the proposed use for at least 100
years;
2) the projected groundwater use is consistent with the management plan and
achievement of the management goal for the AMA; and
3) the financial capability has been demonstrated to construct the water facilities
necessary to make the supply of water available for the proposed use (A.R.S. § 45-
576).
The cities in Arizona with a population larger than 240,000 are Phoenix, Tucson, Mesa,
Chandler, Gilbert, Glendale and Scottsdale (2020 Census).
Provisions
1. Requires a municipality with more than 240,000 people, a designation of assured water
supply and is located in an initial AMA to hire an independent auditor to conduct a full
rate audit and cost-of-service study of the municipality's water and sewer service if the
municipality has:
a) entered into a contract or subcontract with the Central Arizona Project;
b) participated in an intentionally created surplus program;
c) received federal monies for voluntary conservation measures of the Colorado River; or
d) sold long-term storage credits to a third party using effluent generated within the
municipality's water service area. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2030
Initials EB/MG Page 2 House Engrossed
2. Stipulates that for the rate audit and cost-of-service study:
a) a municipality must provide all books and records requested by the auditor; and
b) the auditor's report is public record. (Sec. 1)
3. Requires the auditor to investigate fees, revenue, details and expenditures regarding:
a) hookup fees;
b) nonutility related expenses;
c) whether customers are being double charged;
d) effluent or long-term storage credit;
e) voluntary system conservation; and
f) utility rates. (Sec. 1)
4. Requires the municipality to submit a copy of the auditor's report to the Governor, the
President of the Senate and the Speaker of the House of Representatives on or before
January 1, 2025. (Sec. 1)
5. Requires the municipality to provide a copy of the rate audit and cost-of-service study to
the Secretary of State. (Sec. 1)
6. Repeals the municipal water systems audit on January 1, 2027. (Sec. 1)