SB 1521: unbuilt certificates; assured water supply - Arizona

Senate Engrossed Version → Chaptered Version · 3 edits

MINOR

The bill was converted from a Senate Engrossed Version to a Chaptered Version, meaning it has been officially enacted into law. The substantive content was completely replaced: the original text regarding groundwater management and unbuilt water supply certificates was removed, and new text was added that imposes a $100 penalty on the Town of Wellton for exceeding expenditure limitations in fiscal year 2022-2023.

Scope change

The bill's scope changed entirely from regulating groundwater certificate transfers to addressing a specific financial penalty for one municipality.

SCOPE

All provisions related to selling, transferring, or aggregating unbuilt certificates of assured water supply were removed from the enacted law.

ENFORCEMENT

A new penalty of $100 was established for the Town of Wellton for exceeding expenditure limitations in fiscal year 2022-2023.

TIMELINE

The act applies retroactively to June 30, 2022, and was approved by the Governor on May 12, 2025.

House Engrossed Version → Senate Engrossed Version · 6 edits · May 6, 2025

MODERATE

The bill was converted from a House version to a Senate version, changing its focus from a one-time penalty for the Town of Wellton's budget overruns to a permanent statewide law allowing the transfer and sale of unbuilt water certificates. This fundamentally shifts the bill from a specific municipal penalty to a broader groundwater management tool that enables water rights to be moved between properties under certain conditions.

Scope change

The bill's scope expanded from a specific penalty for the Town of Wellton to a statewide amendment of Arizona Revised Statutes governing groundwater management and water certificate transfers.

SCOPE

Removed specific penalty provisions for the Town of Wellton for fiscal year 2022-2023, which previously set a $100 penalty for exceeding expenditure limits.

ELIGIBILITY

Added new authority allowing persons to sell, aggregate, or transfer unbuilt water certificates to other lots or parcels within the same subbasin and active management area.

REQUIREMENT

Established construction or groundbreaking deadlines for receiving properties: ten years if within the same master planned community, or five years if outside such communities.

Requires persons conducting water certificate transactions to notify the state director with specific information about the water volume, location, and municipal service area details.

DEFINITION

Added statutory definitions for 'common promotional plan', 'master planned community', and 'transaction' to clarify the new transfer rules.

EXEMPTIONS

Created an exemption allowing transfers to lots within the same municipal service area when served by a municipal provider, regardless of where the original water was acquired.

Introduced Version → House Engrossed Version · 4 edits · May 6, 2025

MODERATE

The bill was completely rewritten from a groundwater management statute to a penalty provision for the Town of Wellton. The original version created rules for selling unbuilt water certificates, while the new version imposes a $100 penalty for the town's 2022-2023 budget excess and applies retroactively to June 30, 2022.

Scope change

The bill's scope changed entirely from regulating groundwater certificate transfers to addressing a specific town's budget penalty.

SCOPE

All provisions regarding the sale, transfer, and aggregation of unbuilt water certificates were removed.

FISCAL

Added a $100 penalty for the Town of Wellton for exceeding expenditure limitations in fiscal year 2022-2023.

TIMELINE

Added retroactive application of the penalty to June 30, 2022.

REQUIREMENT

Removed all requirements for notifying the director about water certificate transactions and definitions for terms like 'common promotional plan' and 'master planned community'.

unbuilt certificates; assured water supply

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