The proposed bill HB2860 allows the Arizona State Treasurer to allocate up to $200 million from prime contracting transaction privilege tax (TPT) revenues to municipalities or counties for water conservation infrastructure improvements that support economic development. This expands the current law, which previously restricted TPT revenue distribution solely to public infrastructure improvements for manufacturing facilities. Under the new provisions, the Treasurer is mandated to make monthly payments for water conservation projects, with the total not exceeding either the TPT revenues from relevant contracts or 80% of the total project costs.

Additionally, the bill introduces new requirements for municipalities and manufacturing facilities, including a delay in payment commencement until July 1, 2024, and a minimum capital investment requirement. Facilities must file a sworn certification regarding their investment and enter into agreements detailing costs and funding sources for the water conservation improvements. The bill also allows a single agreement to cover both water conservation and public infrastructure improvements, streamlining compliance. Overall, HB2860 broadens funding for water conservation projects while establishing new compliance and reporting requirements, and clarifies the distribution of tax revenues and conditions for payments.

Statutes affected:
Introduced Version: 42-2003, 42-5010, 42-5029, 42-5032.02, 42-5032.03, 42-5075, 43-302, 4-101, 42-2002, 42-1101, 42-12006, 43-1083.03, 43-1164.04, 41-1512, 41-1517, 41-1519, 43-1082, 43-1165, 32-1164, 12-821.01, 36-2806, 5-401, 42-1124, 42-3401, 42-6002, 9-500.39, 11-269.17, 43-221, 42-2001, 42-1122, 46-291, 42-5031, 44-7101, 44-7111, 42-1103.02, 42-1125.01, 43-419, 42-5001, 42-5076, 42-5008.01, 42-5070, 42-5005, 42-5072, 42-5069, 35-146, 35-147, 42-1116, 42-5014, 42-5155, 42-5010.01, 42-5164, 42-5205, 42-1118, 42-1254, 42-5030, 42-5030.01, 42-5032, 42-5032.01, 49-282, 17-273, 42-5061, 15-2084, 15-1648, 15-1472, 42-5031.01, 15-971, 2001-2002, 2002-2003, 2003-2004, 2004-2005, 2005-2006, 15-154, 15-154.01, 15-241, 43-1072.01, 15-977, 41-2257, 41-2258, 42-5033, 42-5033.01, 42-6010, 9-626, 41-194.01, 15-1402, 15-1403, 15-1409, 42-3032.03, 28-6532