The bill HB2030 requires cities or towns in Arizona with a population over 240,000, an assured water supply designation, and located within an Active Management Area (AMA) to conduct a comprehensive rate audit and cost-of-service study of their water and sewer services by an independent auditor. This requirement applies if the city or town has engaged with the Central Arizona Project, participated in an intentionally created surplus program, received federal funds for Colorado River conservation, or sold long-term storage credits using effluent from their water service area.

The audit must examine various aspects of the water and sewer service, including hookup fees, revenue from such fees, capital and operating expenditures, non-utility related expenses, double charging of services, revenue from the sale of effluent or storage credits, and whether these revenues offset utility rates for consumers. The auditor's report will be a public record, and the city or town must submit a copy of the report to the Governor, the President of the Senate, the Speaker of the House of Representatives, and the Secretary of State by January 1, 2025. The requirement to conduct the audit will be repealed after December 31, 2026.