Senate Engrossed unbuilt certificates; assured water supply State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SENATE BILL 1521 AN ACT amending title 45, chapter 2, article 9, Arizona Revised Statutes, by adding section 45-576.11; RELATING to groundwater management. (TEXT OF BILL BEGINS ON NEXT PAGE)
Senate Engrossed unbuilt certificates; assured water supply
State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
SENATE BILL 1521
Senate Engrossed
unbuilt certificates; assured water supply
State of Arizona
Senate
Fifty-seventh Legislature
First Regular Session
2025
SENATE BILL 1521
AN ACT
amending title 45, chapter 2, article 9, Arizona Revised Statutes, by adding section 45-576.11; RELATING to groundwater management.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Title 45, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 45-576.11, to read: START_STATUTE45-576.11. Certificates of assured water supply; transfer; sale; aggregation; definitions A. NOTWITHSTANDING any other law, a person may sell, AGGREGATE or TRANSFER an unbuilt certificate of assured water supply separate from the ORIGINAL lot or parcels where the CERTIFICATE was granted subject to the following CONDITIONS: 1. the transaction is to ANOTHER lot or parcel in the same subbasin in the same active management area. Any wells committed to an unbuilt CERTIFICATE of assured water supply are located in the same subbasin in the same active management area as the lot or parcel that will receive the unbuilt CERTIFICATE or a portion of the unbuilt certificate pursuant to the transaction. 2. THe person that receives the unbuilt certificate uses the groundwater allocated to the unbuilt CERTIFICATE of assured water supply for the same PROPOSED use. 3. If The transaction is to another lot or parcel LOCATED within the same overall master planned community or common promotional plan, the transaction will RESULT in the CONSTRUCTION or GROUNDBREAKING on the PROPOSED lot or SUBDIVISION where the unbuilt CERTIFICATE of assured water supply will be APPLIED within ten years after the date of the TRANSACTION. 4. If The transaction is to another lot or parcel LOCATED outside the overall master planned community or common promotional plan, the transaction will RESULT in the CONSTRUCTION or GROUNDBREAKING on the PROPOSED lot or SUBDIVISION where the unbuilt CERTIFICATE of assured water supply will be APPLIED within five years after the date of the TRANSACTION. B. Notwithstanding subsection A of this section, iF the unbuilt CERTIFICATE of assured water supply is to be served by a MUNICIPAL provider, a person may sell, transfer or AGGREGATE the unbuilt CERTIFICATE or a portion of the unbuilt certificate to any lot or parcel WITHIN THE same MUNICIPAL service area WITHOUT REGARD to where the MUNICIPAL provider would have ACQUIREd water to serve the unbuilt SUBDIVISION that received the ORIGINAL CERTIFICATE of ASSURED water supply. C. a person that conducts a TRANSACTION shall notify the director on a form prescribed by the director that includes the following INFORMATION: 1. The volume of water in acre-feet of an unbuilt CERTIFICATE of assured water supply that is subject to the transaction. 2. The location of the parcel or PROPOSED SUBDIVISION that is part of the TRANSACTION. 3. Whether the TRANSACTION is for parcels or proposed SUBDIVISIONS that are located in the same service area of a MUNICIPAL provider. D. For the purposes of this section: 1. "Common promotional plan" has the same meaning prescribed in section 32-2101. 2. "master planned community" has the same meaning prescribed in section 32-2101. 3. "transaction" means the sale, transfer or AGGREGATION of an UNBUILT CERTIFICATE of assured water supply. END_STATUTE
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 45, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 45-576.11, to read:
START_STATUTE45-576.11. Certificates of assured water supply; transfer; sale; aggregation; definitions
A. NOTWITHSTANDING any other law, a person may sell, AGGREGATE or TRANSFER an unbuilt certificate of assured water supply separate from the ORIGINAL lot or parcels where the CERTIFICATE was granted subject to the following CONDITIONS:
1. the transaction is to ANOTHER lot or parcel in the same subbasin in the same active management area. Any wells committed to an unbuilt CERTIFICATE of assured water supply are located in the same subbasin in the same active management area as the lot or parcel that will receive the unbuilt CERTIFICATE or a portion of the unbuilt certificate pursuant to the transaction.
2. THe person that receives the unbuilt certificate uses the groundwater allocated to the unbuilt CERTIFICATE of assured water supply for the same PROPOSED use.
3. If The transaction is to another lot or parcel LOCATED within the same overall master planned community or common promotional plan, the transaction will RESULT in the CONSTRUCTION or GROUNDBREAKING on the PROPOSED lot or SUBDIVISION where the unbuilt CERTIFICATE of assured water supply will be APPLIED within ten years after the date of the TRANSACTION.
4. If The transaction is to another lot or parcel LOCATED outside the overall master planned community or common promotional plan, the transaction will RESULT in the CONSTRUCTION or GROUNDBREAKING on the PROPOSED lot or SUBDIVISION where the unbuilt CERTIFICATE of assured water supply will be APPLIED within five years after the date of the TRANSACTION.
B. Notwithstanding subsection A of this section, iF the unbuilt CERTIFICATE of assured water supply is to be served by a MUNICIPAL provider, a person may sell, transfer or AGGREGATE the unbuilt CERTIFICATE or a portion of the unbuilt certificate to any lot or parcel WITHIN THE same MUNICIPAL service area WITHOUT REGARD to where the MUNICIPAL provider would have ACQUIREd water to serve the unbuilt SUBDIVISION that received the ORIGINAL CERTIFICATE of ASSURED water supply.
C. a person that conducts a TRANSACTION shall notify the director on a form prescribed by the director that includes the following INFORMATION:
1. The volume of water in acre-feet of an unbuilt CERTIFICATE of assured water supply that is subject to the transaction.
2. The location of the parcel or PROPOSED SUBDIVISION that is part of the TRANSACTION.
3. Whether the TRANSACTION is for parcels or proposed SUBDIVISIONS that are located in the same service area of a MUNICIPAL provider.
D. For the purposes of this section:
1. "Common promotional plan" has the same meaning prescribed in section 32-2101.
2. "master planned community" has the same meaning prescribed in section 32-2101.
3. "transaction" means the sale, transfer or AGGREGATION of an UNBUILT CERTIFICATE of assured water supply. END_STATUTE