HB 2860 is a bill that amends Arizona law to allow the State Treasurer to allocate up to $200 million from certain tax revenues to municipalities or counties for water conservation infrastructure improvements that support economic development. The bill requires a written agreement between the municipality or county, a manufacturing facility, and the Arizona Department of Revenue. Payments are capped at the lesser of the total state tax revenues from the prime contracting classification or 80% of the infrastructure improvement costs. The bill mandates significant capital investment from the manufacturing facility and certification with the Arizona Commerce Authority, with an effective date of January 1, 2025.

The bill introduces new provisions for water conservation infrastructure and expands the definition of public infrastructure to include such facilities. It sets conditions for manufacturing facilities to receive state support and requires local governments to dedicate revenue for infrastructure improvements. The bill also specifies a maximum amount for public infrastructure improvements and adds new definitions and requirements for economic development and manufacturing facilities. The changes are set to take effect after December 31, 2024.

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