The bill SB1432 amends Arizona law to address water supply issues for small residential developments. It introduces a requirement for cities or towns that provide water service to enter into an intergovernmental agreement (IGA) with a standpipe district to supply water for up to three years to residences outside their water service area that lack sufficient water access. This service is limited to areas with no more than 750 residences that are adjacent to the city or town and have previously received water service from them. The city or town must be reimbursed for the costs of providing the water, and the provision of water at the standpipe must not reduce the water available to other contracted service areas without consent.

Additionally, the bill mandates the Director of the Arizona Department of Water Resources (ADWR) to study and report on whether individuals seeking building permits for six or more residences within an Active Management Area (AMA) should obtain a certificate of assured water supply before permit approval. This report is due by December 31, 2023. The bill also outlines the governance of the standpipe district by a five-person board and stipulates that the standpipe district can only provide water to its members. The bill includes an emergency clause and will become effective upon the Governor's signature.

Statutes affected:
Introduced Version: 45-576
Senate Engrossed Version: 45-576
House Engrossed Version: 9-500.40, 45-576, 9-516
Chaptered Version: 9-500.40, 45-576, 9-516