Assigned to NR AS PASSED BY ADD COW ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session AMENDED FACT SHEET FOR H.B. 2274 technical correction; assured water supply (NOW: water improvement district; Willcox basin) Purpose Allows the Cochise County Board of Supervisors (BOS), by July 2, 2026, to vote to place a question on the 2026 general election ballot for the residents of Cochise County that reside within the Willcox Groundwater Basin on whether to establish a domestic water improvement district. Background An improvement district may be established in any unincorporated area by the board of supervisors of the county in which the proposed district is located, for the purpose of constructing and operating a wastewater treatment facility and making other local improvements or acquisitions in the district for the benefit of the district that are permitted by statute. The county board of supervisors may issue bonds or make other contractual arrangements for improvements and levy taxes for the operation and maintenance of improvements within the district for the benefit of the district (A.R.S. § 48-902). When the public interest or convenience requires, the board of directors of an improvement district may order the acquisition, construction, reconstruction, maintenance or repair of waterworks, including drinking water treatment facilities, for the delivery of water for domestic purposes and of wells, ditches, canals, channels, conduits, pipelines and siphons, together with the necessary or usual appurtenances for carrying storm water or water from irrigation ditches, watercourses, streams or springs into, through or out of the district in, under, over or through any street, or any land of the district or any right-of-way granted or obtained for such a purpose, either within or without the district limits (A.R.S. § 48-909). A domestic water improvement district is a county improvement district that is formed for the purpose of constructing a domestic wastewater treatment facility or purchasing an existing domestic wastewater treatment facility within the district and, if necessary, making improvements to the system or a converted district (A.R.S. § 48-1011). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Requires the Cochise County BOS, by July 2, 2026, to place on an open meeting agenda the issue of whether to establish a water improvements program. FACT SHEET – Amended H.B. 2274 Page 2 2. Allows the Cochise County BOS, by July 2, 2026, to vote on the issue of whether to establish a water improvements program and, if established, what the program parameters should be. 3. Allows the Cochise County BOS, by July 2, 2026, to vote to place a question on the 2026 general election ballot for the residents of Cochise County that reside within the Willcox Groundwater Basin on whether to establish a domestic water improvement district. 4. Stipulates that the domestic water improvement district: a) may be established only in the portion of the Willcox Groundwater Basin that is located within Cochise County; b) may provide for the delivery of drinking water for domestic uses, including by constructing and operating a standpipe, and may provide for delivery of drinking water by water hauling to residents in the Willcox Groundwater Basin that are located within the boundaries of the domestic water improvement district; c) may provide for the construction of active or passive stormwater infrastructure in the Willcox Groundwater Basin for the purpose of increasing groundwater recharge in the basin; and d) would have the powers and duties provided by law for domestic water improvement districts. 5. Requires the Cochise County BOS to establish the proposed boundaries of the domestic water improvement district if the Cochise County BOS votes to place the question on the ballot. 6. Requires the Cochise County BOS to make the boundaries of the proposed domestic water improvement district publicly available before the election. 7. Stipulates that all qualified electors who reside within the boundaries of the proposed domestic water improvement district are eligible to vote on the question of whether to establish a domestic water improvement district. 8. Prescribes the question on the ballot of whether to establish a domestic water improvement district. 9. Determines that if a majority of qualified electors voting on the question vote to approve the formation of the domestic water improvement district, the domestic water improvement district is established. 10. Deems that the Cochise County BOS is the board of directors of the domestic water improvement district. 11. Determines that the outlined formation election is sufficient to establish the domestic water improvement district and a petition and related procedures to establish the domestic water improvement district are not required. 12. Becomes effective on the general effective date. FACT SHEET – Amended H.B. 2274 Page 3 Amendments Adopted by Additional Committee of the Whole 1. Requires the Cochise County BOS by July 2, 2026, to place on an open meeting agenda the issue of whether to establish a water improvements program. 2. Allows the Cochise County BOS, by July 2, 2026, to vote on the issue of whether to establish a water improvements program and, if established, what the program parameters should be. 3. Allows the Cochise County BOS, by July 2, 2026, rather than within 90 days after the general effective date, to vote to place a question on the 2026 general election ballot, rather than call a special election, on the question of whether to establish a domestic water improvement district. 4. Makes conforming changes. House Action Senate Action NREW 2/14/25 DPA/SE 6-3-0-1 NR 3/18/25 DP 4-3-1 3 rd Read 2/26/25 31-28-1 (W/O Emergency) Prepared by Senate Research April 17, 2025 SB/slp