Bill
HB 2826
Arizona HB 2826 clarifies pro rata water distribution to district lands and municipalities with entitlements, and adds refunds and transparency duties for water taxation.
Note: The materials provided appear to combine two separate bills both numbered HB 2826: (A) an Arizona bill that amends irrigation and water‑conservation district statutes; and (B) an Illinois Property Tax Code bill that changes multi‑township assessor thresholds. Each is summarized below.
Introduced: February 13, 2025
Sponsors: Rep. Julie Willoughby (primary); Rep. Jeff Weninger (cosponsor)
Status: Rule 19(a) / Re‑referred to Rules Committee (4/11/2025)
Purpose / intent
- Clarify how district water is apportioned, explicitly include municipalities that hold contractual delivery entitlements, increase reporting transparency, and restrict when a district may retain or bank water credits.
Key provisions
- Pro rata apportionment: All district water available for distribution is apportioned pro rata to lands in the district and to any municipality within district boundaries that has a contractual entitlement to water.
- Lien and withholding authority: Board may make water charges a lien on the land served and may withhold service for unpaid water tax under its rules.
- Annual report: Districts must prepare and publish an annual report showing, by source, a month‑to‑month accounting of water available and of apportionment/delivery for the prior 12 months. The report must identify deliveries to any entity outside the district.
- Municipal refunds: Beginning in tax year 2025, a municipal customer is entitled to a refund of any water tax assessed and paid for any year in which water was available for distribution but was not delivered.
- Distribution when supply is insufficient: Municipal contractual entitlements are treated the same as lands entitled to water. A water supply is not "insufficient" if the district has accumulated credits for water stored behind a dam.
- Limits on banking credits: A district may not retain or accumulate credits in a year until it has fulfilled obligations to supply all lands susceptible of irrigation within its boundaries and all municipal contractual entitlements.
Who is affected
- Irrigation and water conservation districts, landowners within those districts, municipal customers that have contract entitlements, and district taxpayers (water tax payers). Potential operational and fiscal impacts on district water management, billing, and refunds.
Timing / procedure
- Changes modify existing A.R.S. sections and are pending committee and Rules action.
Introduced: February 6, 2025
Sponsor: Rep. Sharon Chung
Status / Action notes: Referred to Rules Committee; various committee/calendar steps listed
Purpose / intent
- Raise the population threshold for which townships are required to use multi‑township assessors, effective after publication of 2030 decennial census data.
Key provisions
- "Maximum population amount" (used to define a "qualified township") is 1,000 inhabitants prior to publication of 2030 census data and becomes 3,000 inhabitants on and after publication of 2030 census data.
- Townships with population at or below that maximum are “qualified” and must not elect separate assessors for each township but instead must elect multi‑township assessors per existing multi‑township assessment formation procedures (Sections 2‑5 and 2‑10).
- For townships that become subject to the rule as a result of the 2030 census, the multi‑township rule applies beginning with the first general election on or after publication of the 2030 census population data.
- Retains existing mapping/mandatory establishment procedures for multi‑township assessment districts (including required notices, county board role in disputes, asset distributions when townships move between districts, and decennial updates).
Who is affected
- Township governments, voters in small townships, county supervisors of assessments, multi‑township assessment districts, and local assessment administration. Raising the threshold could increase the number of townships consolidated under multi‑township assessors, affecting local control and assessor elections/assignments.
Timing / procedure
- The statutory change to the “maximum population amount” takes effect relative to the publication of 2030 federal decennial census data; other procedural provisions reference routine decennial/10‑year mapping cycles. The bill’s effective date language indicates the Act takes effect upon becoming law, but the threshold change is triggered by the 2030 census publication.
Related / companion bills
- SB 2044 (companion)
- HB 3661 (companion)
Potential fiscal/administrative impacts (high level)
- Arizona: districts may face refunds to municipal customers and limits on water banking could alter reservoir/storage operations and revenue management. Increased reporting imposes administrative duties.
- Illinois: expanding the population threshold for multi‑township assessors may change staffing, election procedures, and distribution of assessment duties and assets among townships and multi‑township districts. Legislative fiscal notes would be needed for precise cost estimates.
Compiled from official sources — confirm details with the bill’s official record.
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