This bill proposes several updates to the current statutes regarding irrigation and water conservation districts in Arizona. It introduces new provisions that clarify the distribution of water, specifically allowing for the inclusion of municipalities within the district boundaries that have contractual entitlements to water. The bill mandates that an annual report be published by the district, detailing the month-to-month accounting of water available for distribution, including any deliveries made to entities outside the district. Additionally, it establishes that starting in tax year 2025, municipal customers are entitled to refunds for any water tax paid during years when water was available but not delivered.

Furthermore, the bill modifies the existing language concerning the distribution of insufficient water supplies. It emphasizes that the board must consider both lands and municipal customers when distributing available water and introduces the concept that a water supply is not deemed insufficient if the district has accumulated credits stored behind a dam. The bill also prohibits the retention or accumulation of additional credits unless the district has met its obligations to supply water to all lands and municipalities within its boundaries.

Statutes affected:
Introduced Version: 48-2990, 48-2991