SB 1560

Senate Engrossed
cap; water supply
  development fund
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 233
SENATE BILL 1560
AN
ACT
Amending section 49-1273, Arizona
Revised Statutes; RELATING to the water infrastructure finance AUTHORITY.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section [1.]1. Section
49-1273, Arizona Revised Statutes, is amended to read:
START_STATUTE49-1273. Water supply development revolving fund; purposes
A. Monies in the water supply development revolving
fund may be used for the following purposes:
1. Making loans to eligible entities in this state
under section 49-1274 for water supply development projects within this
state. A single loan shall not exceed $3,000,000
$20,000,000.
2. Making grants or providing technical assistance
to eligible entities for water supply development projects in this
state. A single grant shall not exceed $2,000,000.
3. Purchasing or refinancing debt obligations of
water providers at or below market rate if the debt obligation was issued for a
water supply development purpose.
4. Providing financial assistance to water providers
with bonding authority to purchase insurance for local bond obligations
incurred by them for water supply development purposes.
5. Paying the costs to administer the fund.
6. Conducting water supply studies.
B. If the monies pledged to secure water supply
development bonds issued pursuant to section 49-1278 become insufficient
to pay the principal and interest on the water supply development bonds
guaranteed by the water supply development revolving fund, the authority shall
direct the state treasurer to liquidate securities in the fund as may be necessary
and shall apply those proceeds to make current all payments then due on the
bonds. The state treasurer shall immediately notify the attorney
general and auditor general of the insufficiency. The auditor
general shall audit the circumstances surrounding the depletion of the fund and
report the findings to the attorney general. The attorney general
shall conduct an investigation and report those findings to the governor and
the legislature.END_STATUTE
APPROVED BY THE GOVERNOR JUNE 22, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 22, 2026.