Public Policy Agenda Number 2.

CONTACT: Marie Pearthree Bridget Schwartz-Manock (623) 869-2111 (623) 869-2150 mpearthree@cap-az.com bschwartzmanock@cap-az.com MEETING DATE: February 6, 2014 AGENDA ITEM: Report on 2014 State Legislative Session and Possible

Consideration of a Recommendation that the Board take Action on State Legislation that Could Affect CAP, Including but not Limited to: HB 2326, HB 2386 and SCM 1001.

RECOMMENDATION: See attached document and proposed staff recommendations.

FINANCIAL IMPLICATIONS: None

LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE: CAWCD Board of Directors 2010 Strategic Plan:

• Leadership & Public Trust: Relationships - Customers, Relationships - Other Stakeholders

• Water Supply: Reliability of the CAP Water Supply PREVIOUS BOARD ACTION/ACTIVITY: September 5, 2013 Public Policy Committee previewed and discussed the draft

proposed 2014 State Legislative Agenda October 3, 2013 Board adopted 2014 State Legislative Agenda

ISSUE SUMMARY/DESCRIPTION: This report describes CAP's state legislative agenda and provides an update on those issues. In addition, this update reports on and requests guidance on bills being considered by the State Legislature.

See attached documents and issue descriptions.

SUGGESTED MOTION: I move that the Public Policy Committee recommend that the Board adopt a position on the following pending state legislation of interest to CAP: (staff recommendations in parentheses) HB 2326 Water Banking Authority; Storage Credits (AMEND and MONITOR) HB 2386 Special Districts; Elections; Financing; Limits (AMEND and MONITOR) SCM 1001 Yuma Desalting Plant (SUPPORT)

January 28, 2014

The 51st State Legislature's Second Regular Session began on Monday, January 13, 2014. January 28 is the 16th day of the session. 848 bills have been introduced as of today.

The following State Legislative Issues Update outlines the status of the Board-approved 2014 Legislative Agenda as well as other relevant state legislative bills and issues.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Arizona Department of Water Resources (ADWR) Funding

Monitor the Legislature's budgeting processes and agency rulemaking to ensure the Arizona Department of Water Resources' current level of funding is maintained.

Status as of January 28, 2014:

The Governor's budget contains a $14.6-million General Fund appropriation to the Arizona Department of Water Resources for FY 2015, which is approximately a $2.3-million increase over FY 2014. As part of the increase, the Governor proposes to add 11 full-time positions at the department. The Executive recommends three full-time positions to be dedicated to Colorado River issues, two of which will work with stakeholders, including CAP by reference, to identify and implement methods to preserve groundwater. The third position will work to develop strategies to augment Colorado River use and to develop new water supplies. The remaining eight positions would be dedicated for statewide planning, adjudication assistance, and compliance and enforcement. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Multi-Species Conservation Program (MSCP) Funding

Support the Arizona Game and Fish Department's efforts to collect and maintain revenues sufficient to continue its annual contribution toward the costs of the MSCP.

Public Policy Agenda Number 2. Attachment 1.

Status as of January 28, 2014:

The line item appropriation for the Arizona Game and Fish Department's (AGFD) Watercraft Licensing Fund in the Governor's proposed FY 2015 budget is unchanged from FY 2014 at $4.6 million. Department officials have indicated they do not envision any problems with AGFD making the MSCP payment in FY 2015. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Arizona Water Protection Fund

Monitor the status of the Arizona Water Protection Fund and efforts to maintain sufficient levels of State funding. Status as of January 28, 2014: The Governor's budget does not allocate General Fund monies to the Water Protection Fund in FY 2015.

Stephanie Smallhouse has replaced Rodney Held as the Executive Director of the Water Protection Fund. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Hualapai Water Rights Settlement

Monitor legislation necessary and appropriate to implement the Hualapai settlement. Status as of January 28, 2014:

Nothing to report at this time. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Central Arizona Groundwater Replenishment District (CAGRD)

Actively participate and engage on any proposed legislation to the Central Arizona Groundwater Replenishment District to ensure CAGRD operations are not negatively impacted.

Status as of January 28, 2014:

Nothing to report at this time. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Arizona Water Resources

Actively participate and engage on any new efforts to address in-state and interstate water resources. Status as of January 28, 2014: Nothing to report at this time. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

OTHER LEGISLATION OF INTEREST

H.B. 2326 (Water Banking Authority; Storage Credits), sponsored by Rep. T.J. Shope, grants the Arizona Water Bank (AWBA) the authority to purchase long-term storage credits.

CAP staff met with ADWR and AWBA staff to better understand the need for this legislation and to request some technical amendments clarifying funding and coordination issues.

HB 2326 was assigned to the House Agriculture and Water Committee and awaits a hearing.

Recommended Position: AMEND and MONITOR _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

H.B. 2073 (Central Arizona Project Board; Membership), sponsored by Rep. Albert Hale, proposes to add a non-voting tribal member to the CAP Board of Directors.

H.B. 2073 was assigned to the House Agriculture and Water Committee and awaits a hearing.

On January 23, Board President Pickard and General Manager Modeer sent a letter to the leadership of the Inter Tribal Council of Arizona requesting a meeting to understand the need for this proposed shift to collective Tribal representation.

Recommended Position: HOLD, Pending discussion _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

S.C.M. 1001 (Yuma Desalting Plant), sponsored by Sen. Gail Griffin, urges the U.S. Department of the Interior to operate the Yuma Desalting Plant.

S.C.M. 1001was passed, 5-0, by the Senate Government and Environment Committee on January 27 with a minor amendment.

Recommended Position: SUPPORT _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

H.B. 2386 (Special Districts; Elections; Financing; Limits), sponsored Rep. Justin Olson, requires that the voters approve the assessment of secondary property taxes by special taxing districts, including the CAWCD. The bill currently contains an exemption for the Salt River Project. An amendment is needed to also exempt CAP.

HB 2386 was assigned to the House Government Committee and awaits a hearing.

Recommended Position: AMEND and MONITOR _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

If you have any questions or would like more information regarding any of the issues contained in this report, please contact

CAP Business Planning and Governmental Programs, 623-869-2150.

- i -

REFERENCE TITLE: water banking authority; storage credits State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014

HB 2326

Introduced by Representatives Shope: Orr

AN ACT AMENDING SECTIONS 45-2423, 45-2457 AND 45-2491, ARIZONA REVISED STATUTES; RELATING TO THE ARIZONA WATER BANKING AUTHORITY.

(TEXT OF BILL BEGINS ON NEXT PAGE)

HB 2326

- 1 -

Be it enacted by the Legislature of the State of Arizona: 1 Section 1. Section 45-2423, Arizona Revised Statutes, is amended to 2

read: 3 45-2423. Powers and duties of authority 4 A. The authority, acting through its commission, shall: 5 1. Administer the Arizona water banking fund in accordance with this 6

chapter. 7 2. Coordinate its staffing needs with the director and CAWCD. 8 3. Coordinate the storage of water and distribution and extinguishment 9

of long-term storage credits with the director in accordance with this 10 chapter and the water management objectives set forth in chapter 2 of this 11 title. 12

4. Coordinate with CAWCD for the purchase, delivery and storage of 13 Colorado river water delivered through the central Arizona project in 14 accordance with this chapter. 15

5. Coordinate and confer with state agencies, municipal corporations, 16 special districts, authorities, other political subdivisions, private 17 entities, Indian communities and the United States on matters within their 18 jurisdiction relating to the policy and purposes of this chapter. 19

6. Determine, on an annual basis, the quantity of Colorado river 20 water, surface water other than Colorado river water and effluent to be 21 stored by the authority and where that storage will occur. 22

7. Account for, hold and distribute or extinguish long-term storage 23 credits in accordance with this chapter. 24

8. Comply with all aspects of chapter 3.1 of this title. 25 9. Perform the authority's replenishment responsibilities under 26

chapter 15, article 3 of this title with monies appropriated from the state 27 general fund by the legislature for that purpose and to the extent that 28 monies appropriated by the legislature for that purpose are not available, 29 with monies collected in the Pinal active management area pursuant to section 30 45-611, subsection C, paragraph 3. 31

10. Carry out the obligations of this state under section 105 of Public 32 Law 108-451 as agent for this state, including the direct delivery of water 33 to Indian communities in this state and the leasing of non-Indian 34 agricultural priority and Indian priority central Arizona project water as 35 prescribed by article 5 of this chapter. 36

11. Adopt an official seal for the authentication of its records, 37 decisions and resolutions. 38

12. Keep the minutes of its meetings and all records, reports and other 39 information relating to its work and programs in permanent form, 40 systematically indexed and filed. 41

B. The authority, acting through its commission, may: 42 1. Apply for and hold water storage permits. 43 2. Accrue, PURCHASE, exchange, assign, lend and hold long-term storage 44

credits in accordance with this chapter. LONG-TERM STORAGE CREDITS ACCRUED 45

HB 2326

- 2 -

OR PURCHASED BY THE AUTHORITY MUST BE DISTRIBUTED OR EXTINGUISHED IN 1 ACCORDANCE WITH THE RULES OF OPERATION PRESCRIBED IN SECTION 45-2457 FOR THE 2 MONIES USED BY THE AUTHORITY TO ACCRUE OR PURCHASE THE CREDITS. 3

3. Exchange Colorado river water for any type of water in accordance 4 with chapter 4 of this title. 5

4. Enter into water banking services agreements. 6 5. Charge fees for water banking services. 7 6. Apply for and hold any water quality permit required for water 8

storage by the department of environmental quality under title 49, chapter 2, 9 article 3 or by federal law. 10

7. Make and execute all contracts, including intergovernmental 11 agreements pursuant to title 11, chapter 7, article 3, that shall be signed 12 by the chairperson, or in the chairperson's absence the vice-chairperson, and 13 attested by the secretary, necessary to: 14

(a) Obtain for storage Colorado river water delivered through the 15 central Arizona project. Agreements by which the authority obtains Colorado 16 river water are exempt from the requirements of title 41, chapter 23. 17

(b) Obtain effluent or surface water other than Colorado river water 18 for storage but only after TO THE EXTENT THAT MONIES AND STORAGE CAPACITY ARE 19 AVAILABLE TO the authority has stored IN EXCESS OF THE AMOUNTS REQUIRED TO 20 PURCHASE AND STORE all available excess Central Arizona project water or when 21 central Arizona project water is otherwise unavailable or undeliverable. 22

(c) Affiliate water storage permits held by the authority with storage 23 facility permits. 24

(d) Store water for purposes of this chapter at permitted storage 25 facilities. 26

(e) Distribute long-term storage credits earned by the authority to 27 make water available to municipal and industrial users of Colorado river 28 water in this state that are inside or outside of the CAWCD service area, in 29 accordance with the provisions of this chapter. 30

(f) Store Colorado river water in Arizona on behalf of appropriately 31 authorized agencies in California and Nevada. 32

(g) Cause a decrease in Arizona diversions from the Colorado river, 33 ensuring that Arizona will use less than its full entitlement to Colorado 34 river water in years in which California and Nevada agencies are 35 contractually authorized to call on the water stored on their behalf by the 36 authority. 37

(h) Distribute long-term storage credits earned by the authority on 38 behalf of agencies in California and Nevada to Colorado river water users in 39 Arizona to use in place of Colorado river water that would have otherwise 40 been used by those Arizona users. 41

(i) Replenish water pursuant to chapter 15, article 3 of this title, 42 including entering into an intergovernmental agreement with the Gila river 43 Indian community pursuant to section 45-2624. 44

HB 2326

- 3 -

(j) Distribute long-term storage credits earned by the authority to 1 make water available to Indian communities in this state for Indian firming 2 measures pursuant to article 5 of this chapter. 3

8. Sue and be sued. 4 9. Perform all other acts necessary for the authority to carry out its 5

purposes, powers and duties in accordance with this chapter. 6 10. Submit a request for a general fund appropriation to the 7

legislature each year. A request shall be accompanied by a budget detailing 8 how the appropriation would be used and justifying the need for the 9 appropriation. 10

11. Form temporary committees as deemed necessary by the authority to 11 provide the authority with advice on issues identified by the 12 authority. Advisory committees may consist of members of the public selected 13 by the authority, members of the authority and authority staff. 14

12. Purchase long-term storage credits accrued by an Indian community 15 pursuant to section 45-841.01, provided such long-term storage credits are 16 distributed or extinguished in accordance with the rules of operation 17 specified in section 45-2457 for the funds used by the authority to purchase 18 the credits. 19

Sec. 2. Section 45-2457, Arizona Revised Statutes, is amended to read: 20 45-2457. Accounting; rules of operation 21 A. The authority shall develop an accounting system for the long-term 22

storage credits accrued OR PURCHASED by the authority. The accounting system 23 shall be designed to allow the authority to determine which funding source of 24 the banking fund paid for each long-term storage credit accrued OR PURCHASED 25 by the authority. 26

B. The authority shall operate in accordance with all of the following 27 rules of operation: 28

1. The authority shall reserve a reasonable number of long-term 29 storage credits accrued OR PURCHASED with general fund appropriations, other 30 than general fund appropriations for replenishment under chapter 15, article 31 3 of this title, for the benefit of municipal and industrial users of 32 Colorado river water in this state that are outside of the service area of 33 CAWCD. 34

2. The authority may distribute long-term storage credits accrued OR 35 PURCHASED with general fund appropriations, other than general fund 36 appropriations for replenishment under chapter 15, article 3 of this title, 37 for both of the following: 38

(a) To make water available to a municipal and industrial user of 39 Colorado river water in this state that is outside of the service area of 40 CAWCD, if both of the following apply: 41

(i) The municipal and industrial user would otherwise suffer a water 42 shortage. The authority may distribute long-term credits to the extent 43 reasonably necessary to offset the water shortage. 44

HB 2326

- 4 -

(ii) The authority collects reimbursement for the cost to the 1 authority of replacing the long-term storage credits distributed. The 2 authority may replace the long-term storage credits in any year it deems 3 appropriate but shall use good faith efforts to replace the long-term storage 4 credits at a reasonable cost to the person who is responsible for reimbursing 5 the authority for the credits distributed. 6

(b) To make water available to CAWCD to the extent necessary for CAWCD 7 to meet the demands of its municipal and industrial subcontractors, if all of 8 the following apply: 9

(i) CAWCD's normal diversions from the Colorado river have been or 10 will be disrupted by shortages on the river or by disruptions in the 11 operation of the central Arizona project. 12

(ii) The authority does not distribute for this purpose the long-term 13 storage credits reserved in accordance with paragraph 1 OF THIS SUBSECTION. 14

(iii) The authority collects reimbursement from CAWCD for the cost to 15 the authority of replacing the long-term storage credits distributed. The 16 authority may replace the long-term storage credits in any year it deems 17 appropriate but shall use good faith efforts to replace the long-term storage 18 credits at a reasonable cost to CAWCD. 19

3. The authority may distribute or extinguish long-term storage 20 credits accrued OR PURCHASED with general fund appropriations, other than 21 general fund appropriations for replenishment under chapter 15, article 3 of 22 this title, to implement the settlement of water right claims by Indian 23 communities in this state. 24

4. On request from the director, the authority may extinguish 25 long-term storage credits accrued OR PURCHASED with general fund 26 appropriations, other than general fund appropriations for replenishment 27 under chapter 15, article 3 of this title, to fulfill the water management 28 objectives set forth in chapter 2 of this title. 29

5. The authority may exchange long-term storage credits accrued OR 30 PURCHASED with general fund appropriations for long-term storage credits held 31 by other persons if the long-term storage credits received by the authority 32 were stored in a location that better enables the authority to fulfill the 33 purposes and policies of this chapter than were the long-term storage credits 34 exchanged by the authority. For the purposes of this paragraph, the 35 authority may make exchanges of long-term storage credits stored in one 36 active management area for long-term storage credits stored in a different 37 active management area or of long-term storage credits stored in one 38 groundwater basin for long-term storage credits stored in a different 39 groundwater basin. 40

6. The authority shall distribute or extinguish long-term storage 41 credits accrued OR PURCHASED with monies collected in accordance with section 42 45-611, subsection C, paragraph 3 only for the benefit of the active 43 management area in which the monies were collected. The authority may 44 distribute or extinguish these long-term storage credits to the extent 45

HB 2326

- 5 -

necessary to meet the demands of CAWCD's municipal and industrial 1 subcontractors during times in which CAWCD's diversions from the Colorado 2 river have been or will be disrupted by shortages on the Colorado river or by 3 disruptions in operation of the central Arizona project, to implement the 4 settlement of water right claims by Indian communities in this state or, on 5 request from the director, to meet the other water management objectives set 6 forth in chapter 2 of this title. The authority may use the monies collected 7 in the Pinal active management area under section 45-611, subsection C, 8 paragraph 3 to acquire long-term storage credits for replenishment purposes 9 under chapter 15, article 3 of this title. 10

7. The authority shall distribute long-term storage credits accrued OR 11 PURCHASED with monies deposited in the fund in accordance with section 12 48-3715.03, subsection B only for the benefit of the county in which the 13 monies were collected. The authority shall distribute these long-term 14 storage credits to CAWCD to the extent necessary to meet the demands of 15 CAWCD's municipal and industrial subcontractors during times in which CAWCD's 16 diversions from the Colorado river have been or will be disrupted by 17 shortages on the Colorado river or by disruptions in operation of the central 18 Arizona project. 19

8. For each county within the CAWCD service area, on a determination 20 by the authority that the number of long-term storage credits accrued OR 21 PURCHASED with monies deposited in the fund in accordance with section 22 48-3715.03, subsection B exceeds the needs specified in paragraph 7 OF THIS 23 SUBSECTION for that county, the authority shall distribute those excess 24 long-term storage credits to municipal water providers within that county 25 that are at the time of distribution experiencing surface water supply 26 shortages not associated with the central Arizona project. The authority 27 shall distribute to each such municipal water provider the lesser of the 28 following number of long-term storage credits: 29

(a) The total number of credits determined to be available by the 30 authority under this paragraph multiplied by the percentage produced by 31 dividing a numerator equaling the amount of revenues paid pursuant to section 32 48-3715.02, subsections B and C by taxpayers that are within both the 33 boundaries of the municipal provider that is experiencing the shortage and 34 the boundaries of the surface water supply system that is experiencing the 35 shortage by a denominator equaling the total revenues paid pursuant to 36 section 48-3715.02, subsections B and C by all taxpayers that are located 37 within both the boundaries of a municipal water provider and the boundaries 38 of a surface water supply system in the county. In making these 39 computations, the authority shall use the amounts of revenue paid by 40 taxpayers during the most recent tax year for which this information is 41 available. 42

(b) Twenty per cent of the total surface water shortage that the 43 municipal and industrial water provider is experiencing. 44

HB 2326

- 6 -

9. The authority shall distribute or replace long-term storage credits 1 accrued with monies collected pursuant to water banking services agreements 2 in accordance with the terms of those agreements. 3

10. The authority shall acquire sufficient water supplies to perform 4 its replenishment responsibilities under chapter 15, article 3 of this title. 5 The authority shall acquire those water supplies with monies appropriated 6 from the state general fund by the legislature for replenishment under 7 chapter 15, article 3 of this title and to the extent that monies 8 appropriated by the legislature for that purpose are not available, with 9 monies collected in the Pinal active management area under section 45-611, 10 subsection C, paragraph 3. The authority shall use the water supplies 11 acquired pursuant to this paragraph for any replenishment activity authorized 12 by section 45-2623 and for implementation of the southside replenishment bank 13 established by section 45-2624, including delivering water directly to the 14 Gila river Indian community for those purposes. 15

C. Any other long-term storage credits accrued OR PURCHASED by the 16 authority may be distributed or extinguished by the authority in accordance 17 with the policy and purposes of this chapter. 18

D. Except as provided by subsection B, paragraph 7 of this section and 19 except as provided by agreements entered into by the authority, the decision 20 to distribute or extinguish any long-term storage credit accrued OR PURCHASED 21 by the authority is at the complete discretion of the authority. 22

Sec. 3. Section 45-2491, Arizona Revised Statutes, is amended to read: 23 45-2491. State commitments to firm Indian settlement water 24 A. The authority shall act as agent for this state in meeting this 25

state’s obligation to deliver water in times of shortage pursuant to Public 26 Law 108-451, fulfilling the requirements of sections 105, 207(c)(I)(ii) and 27 302(b)(8), and the Indian firming measures established pursuant to this 28 article. In carrying out this obligation the authority may: 29

1. Store water at permitted recharge facilities for the purpose of 30 Indian firming. 31

2. PURCHASE LONG-TERM STORAGE CREDITS FOR THE PURPOSE OF INDIAN 32 FIRMING. 33

2. 3. Enter into contracts or agreements with the United States and 34 Indian communities for storage, recovery or direct delivery of water for 35 Indian firming. 36

3. 4. Enter into leasing agreements with one or more Indian 37 communities in partnership with other entities for non-Indian agricultural 38 priority or Indian priority central Arizona project water. 39

4. 5. Enter into contracts for the use of water sources including 40 Colorado river water, surface water other than Colorado river water and 41 effluent. 42

5. 6. Enter into contracts with eligible entities for the use of 43 imported groundwater from allowable groundwater basins pursuant to sections 44 45-552, 45-553 and 45-554 for the purposes of Indian firming. 45

HB 2326

- 7 -

6. 7. Enter into agreements with a multi-county water conservation 1 district established pursuant to title 48, chapter 22 for delivery of water 2 to Indian communities. 3

7. 8. Subject to periodic review of progress toward meeting this 4 state’s Indian firming obligation, allow for the use of existing long-term 5 storage credits developed from withdrawal fees collected pursuant to section 6 45-611, subsection C, paragraph 3. 7

8. 9. Transfer long-term storage credits to a multi-county water 8 conservation district established pursuant to title 48, chapter 22 for 9 recovery and subsequent delivery to Indian communities in times of shortage. 10

9. 10. Enter into agreements for the recovery of long-term storage 11 credits for purposes of Indian firming. 12

B. Indian firming measures established pursuant to this article shall 13 include funding from the following sources: 14

1. Legislative appropriations provided for Indian firming on an annual 15 basis to carry out Indian firming measures. 16

2. To the extent necessary to carry out Indian firming measures after 17 expenditure of legislative appropriations, the authority may use withdrawal 18 fees collected from the Phoenix, Pinal and Tucson active management area 19 water management accounts. 20

- i -

REFERENCE TITLE: special districts; elections; financing; limits State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014

HB 2386

Introduced by Representative Olson

AN ACT AMENDING SECTIONS 16-204, 16-225 AND 35-451, ARIZONA REVISED STATUTES; REPEALING SECTION 35-505, ARIZONA REVISED STATUTES; AMENDING SECTION 41-1279.07, ARIZONA REVISED STATUTES; RELATING TO SPECIAL TAXING DISTRICTS.

(TEXT OF BILL BEGINS ON NEXT PAGE)

HB 2386

- 1 -

Be it enacted by the Legislature of the State of Arizona: 1 Section 1. Section 16-204, Arizona Revised Statutes, is amended to 2

read: 3 16-204. Declaration of statewide concern; consolidated election 4

dates; definition 5 A. The legislature finds and determines that for the purposes of 6

increasing voter participation and for decreasing the costs to the taxpayers 7 it is a matter of statewide concern that all elections in this state be 8 conducted on a limited number of days and, therefore, the legislature finds 9 and declares that the holding of all elections on certain specific 10 consolidated days is a matter of statewide concern. This section preempts 11 all local laws, ordinances and charter provisions to the contrary. 12

B. For elections held before 2014 and notwithstanding any other law or 13 any charter or ordinance of any county, city or town to the contrary, an 14 election held for or on behalf of a county, city or town, a school district, 15 a community college district or special districts organized pursuant to title 16 48, chapters 5, 6, 8, 10, 13 through 16 and 33 may only be held on the 17 following dates: 18

1. Except for regular elections for candidates in a city or town with 19 a population of one hundred seventy-five thousand or more persons, all 20 elections, including recall elections and special elections to fill 21 vacancies, shall be held on: 22

(a) The second Tuesday in March. 23 (b) The third Tuesday in May. 24 (c) The tenth Tuesday before the first Tuesday after the first Monday 25

in November. 26 (d) The first Tuesday after the first Monday in November. 27

Notwithstanding any other law, an election must be held on this date for the 28 approval of an obligation or other authorization requiring or authorizing the 29 assessment of secondary property taxes by a county, city, town, school 30 district, community college district or special taxing district, except as 31 provided by title 48. 32

2. For regular elections that are only for candidates in a city or 33 town with a population of one hundred seventy-five thousand or more persons 34 and not including recall elections and special elections to fill vacancies in 35 those cities or towns, elections shall be held on: 36

(a) The tenth Tuesday before the first Tuesday after the first Monday 37 in November. 38

(b) The first Tuesday after the first Monday in November. 39 C. For elections held before 2014, for any city or town, including a 40

charter city, that holds its regularly scheduled candidate elections in 41 even-numbered years pursuant to subsection B, paragraph 2 OF THIS SECTION, 42 the term of office for a member of the city council or for the office of 43 mayor begins on or after the second Tuesday in January in the year following 44 the election. 45

HB 2386

- 2 -

D. Subsections B and C of this section do not apply to an election 1 regarding a county or city charter committee or county or city charter 2 proposal that is conducted pursuant to article XIII, section 2 or 3 or 3 article XII, section 5, Constitution of Arizona. 4

E. Beginning with elections held in 2014 and later and notwithstanding 5 any other law or any charter or ordinance to the contrary, a candidate 6 election held for or on behalf of any political subdivision of this state 7 other than a special election to fill a vacancy or a recall election may only 8 be held on the following dates and only in even-numbered years: 9

1. The tenth Tuesday before the first Tuesday after the first Monday 10 in November. If the political subdivision holds a primary or first election 11 and a general or runoff election is either required or optional for that 12 political subdivision, the first election shall be held on this date, without 13 regard to whether the political subdivision designates the election a primary 14 election, a first election, a preliminary election or any other descriptive 15 term. 16

2. The first Tuesday after the first Monday in November. If the 17 political subdivision holds a general election or a runoff election, the 18 second election held shall be held on this date. If the political 19 subdivision holds only a single election and no preliminary or primary or 20 other election is ever held for the purpose of reducing the number of 21 candidates, or receiving a partisan nomination or designation or for any 22 other purpose for that political subdivision, the single election shall be 23 held on this date. 24

F. Beginning with elections held in 2014 and later that are not 25 candidate elections, an election held for or on behalf of any political 26 subdivision of this state, and including a special election to fill a vacancy 27 or a recall election, may only be held on the following dates: 28

1. The second Tuesday in March. 29 2. The third Tuesday in May. 30 3. The tenth Tuesday before the first Tuesday after the first Monday 31

in November. 32 4. The first Tuesday after the first Monday in November. 33

Notwithstanding any other law, an election must be held on this date for the 34 approval of an obligation or other authorization requiring or authorizing the 35 assessment of secondary property taxes by a county, city, town, school 36 district, community college district or special taxing district, except as 37 provided by ESTABLISHED PURSUANT TO title 48 OTHER THAN AN AGRICULTURAL 38 IMPROVEMENT DISTRICT AND INCLUDING ANY ELECTION REGARDING THE FORMATION OF A 39 SPECIAL TAXING DISTRICT. 40

G. Notwithstanding any other law, for an election administered by a 41 county recorder or other officer in charge of elections on behalf of a city, 42 town or school district and that is an all mail ballot election for that 43 city, town or school district, the county recorder or other officer in charge 44 of elections may use a unified ballot format that combines all of the issues 45

HB 2386

- 3 -

applicable to the voters in the city, town or school district requesting the 1 all mail ballot election. 2

H. For the purposes of this section, "political subdivision" means any 3 governmental entity operating under the authority of this state and governed 4 by an elected body, including a city, town, county, school district, OR 5 community college district or any other district organized under state law 6 but not, including a special taxing district ESTABLISHED PURSUANT TO TITLE 48 7 OTHER THAN AN AGRICULTURAL IMPROVEMENT DISTRICT. 8

Sec. 2. Section 16-225, Arizona Revised Statutes, is amended to read: 9 16-225. Special district election dates 10 A. Special districts as described in title 48, chapters 5, 6, 8, 10 11

and 13 through 16 shall not hold any election except on a date prescribed by 12 section 16-204. 13

B. The board of supervisors of the county in which the special 14 district or greater portion of the assessed valuation of the property in the 15 district is located shall call the election for the formation of special 16 districts in accordance with subsection A of this section. 17

C. The governing body of a special district shall call all other 18 elections for the district in accordance with subsection A of this section 19 and shall notify the board of supervisors and the officer in charge of 20 elections of the county in which the special district or greater portion of 21 the assessed valuation of the property in the district is located of the 22 purpose of the election. 23

D. On notification of the officer in charge of elections and approval 24 of the county board of supervisors, the governing body of a special district 25 may authorize any special district election that is not held on a date 26 prescribed by section 16-204 to be conducted by mail pursuant to chapter 4, 27 article 8.1 of this title. 28

Sec. 3. Section 35-451, Arizona Revised Statutes, is amended to read: 29 35-451. Local debt limit; exclusion of tax-exempt property; 30

increase in limitation; authority to issue bonds 31 A. The total assessed valuation of taxable property used as a base 32

figure in determining the limitation on the amount of bonds that may be 33 issued under article IX, section 8, Constitution of Arizona, shall not 34 include the determination of valuation of tax exempt property. 35

B. The aggregate indebtedness of a county, city, town or similar 36 municipal corporation may be increased above six per cent of the value of the 37 taxable property in such political subdivision only as provided in this 38 article. The value of such taxable property shall be ascertained as provided 39 by article IX, section 8, Constitution of Arizona. 40

C. A multi-county water conservation district may become indebted and 41 issue bonds in the manner provided in this article. 42

D. Bonds may be issued under the provisions of this article for any 43 lawful or necessary purpose. 44

E. NOTWITHSTANDING ANY OTHER STATUTE: 45

HB 2386

- 4 -

1. PUBLIC BONDS MAY NOT BE ISSUED BY ANY ENTITY THAT IS NOT GOVERNED 1 BY AN ELECTED GOVERNING BODY. FOR THE PURPOSES OF THIS PARAGRAPH, ANY 2 GOVERNING BODY THAT INCLUDES ONE OR MORE MEMBERS WHO ARE APPOINTED TO FILL A 3 VACANCY IN AN ELECTED POSITION ON THAT GOVERNING BODY AS OTHERWISE PROVIDED 4 BY LAW IS AN ELECTED GOVERNING BODY. 5

2. PUBLIC BONDS THAT ARE ISSUED BY ANY SPECIAL TAXING DISTRICT 6 ESTABLISHED FROM AND AFTER JUNE 30, 2014 PURSUANT TO TITLE 48 MUST BE 7 INCLUDED IN THE CALCULATION OF THE AGGREGATE INDEBTEDNESS OF A COUNTY, CITY, 8 TOWN OR SIMILAR MUNICIPAL CORPORATION THAT INCLUDES ANY PORTION OF THE 9 SPECIAL TAXING DISTRICT. 10

Sec. 4. Repeal 11 Section 35-505, Arizona Revised Statutes, is repealed. 12 Sec. 5. Section 41-1279.07, Arizona Revised Statutes, is amended to 13

read: 14 41-1279.07. Uniform expenditure reporting system; reports by 15

counties, community college districts, cities and 16 towns; certification and attestation; assistance 17 by auditor general; violation; classification 18

A. The auditor general shall prescribe a uniform expenditure reporting 19 system for all political subdivisions subject to the constitutional 20 expenditure limitations prescribed by article IX, sections 20 and 21, 21 Constitution of Arizona. The system shall include: 22

1. For counties: 23 (a) An annual expenditure limitation report that includes at least the 24

following information: 25 (i) The expenditure limitation established for the reporting fiscal 26

year by the economic estimates commission. 27 (ii) Total expenditures, by fund, for the reporting fiscal year. 28

EXPENDITURES MADE BY ANY SPECIAL TAXING DISTRICT THAT IS ESTABLISHED FROM AND 29 AFTER JUNE 30, 2014 PURSUANT TO TITLE 48 AND THAT IS LOCATED IN THE COUNTY 30 MUST BE INCLUDED IN THIS TOTAL. 31

(iii) Total exclusions from local revenues, as defined by article IX, 32 section 20, Constitution of Arizona, by fund, for the reporting fiscal year. 33 FOR ANY SPECIAL TAXING DISTRICT THAT IS ESTABLISHED FROM AND AFTER JUNE 30, 34 2014 PURSUANT TO TITLE 48 AND THAT IS LOCATED IN THE COUNTY, ONLY THOSE 35 REVENUES THAT ARE EXPLICITLY EXCLUDED FROM REVENUES IN ARTICLE IX, SECTION 36 20, CONSTITUTION OF ARIZONA, MAY BE LISTED IN THIS TOTAL. 37

(iv) Total amounts, by fund, of expenditures subject to the 38 expenditure limitation for the reporting fiscal year. EXPENDITURES MADE BY 39 ANY SPECIAL TAXING DISTRICT THAT IS ESTABLISHED FROM AND AFTER JUNE 30, 2014 40 PURSUANT TO TITLE 48 AND THAT IS LOCATED IN THE COUNTY MUST BE INCLUDED IN 41 THIS TOTAL. 42

(b) Annual financial statements prepared in accordance with generally 43 accepted accounting principles. 44

HB 2386

- 5 -

(c) A reconciliation of the total expenditures reported within the 1 financial statements to the total expenditures stated within the expenditure 2 limitation report. 3

2. For community college districts: 4 (a) An annual budgeted expenditure limitation report that includes at 5

least the following information: 6 (i) The expenditure limitation established for the reporting fiscal 7

year by the economic estimates commission. 8 (ii) Total budgeted expenditures, by fund, for the reporting fiscal 9

year. 10 (iii) Total exclusions from local revenues, as defined by article IX, 11

section 21, Constitution of Arizona, by fund, for the reporting fiscal year. 12 (iv) Total amounts, by fund, of budgeted expenditures subject to the 13

expenditure limitation for the reporting fiscal year. 14 (b) Annual financial statements prepared in accordance with generally 15

accepted accounting principles. 16 (c) A reconciliation of the total expenditures reported within the 17

financial statements to the total expenditures reported within the 18 expenditure limitation report. 19

3. For cities and towns: 20 (a) An annual expenditure limitation report that includes at least the 21

following information: 22 (i) The expenditure limitation established for the reporting fiscal 23

year by the economic estimates commission and, if applicable, the voter 24 approved alternative expenditure limitation. 25

(ii) Total expenditures, by fund, for the reporting fiscal year. 26 EXPENDITURES MADE BY ANY SPECIAL TAXING DISTRICT THAT IS ESTABLISHED FROM AND 27 AFTER JUNE 30, 2014 PURSUANT TO TITLE 48 AND THAT IS LOCATED IN THE CITY OR 28 TOWN MUST BE INCLUDED IN THIS TOTAL. 29

(iii) Total exclusions from local revenues, as defined by article IX, 30 section 20, Constitution of Arizona, by fund, for the reporting fiscal year 31 or, if applicable, the total exclusions from the voter approved alternative 32 expenditure limitation. FOR ANY SPECIAL TAXING DISTRICT THAT IS ESTABLISHED 33 FROM AND AFTER JUNE 30, 2014 PURSUANT TO TITLE 48 AND THAT IS LOCATED IN THE 34 CITY OR TOWN, ONLY THOSE REVENUES THAT ARE EXPLICITLY EXCLUDED FROM REVENUES 35 IN ARTICLE IX, SECTION 20, CONSTITUTION OF ARIZONA, MAY BE LISTED IN THIS 36 TOTAL. 37

(iv) Total amounts, by fund, of expenditures subject to the 38 expenditure limitation for the reporting fiscal year. EXPENDITURES MADE BY 39 ANY SPECIAL TAXING DISTRICT THAT IS ESTABLISHED FROM AND AFTER JUNE 30, 2014 40 PURSUANT TO TITLE 48 AND THAT IS LOCATED IN THE CITY OR TOWN MUST BE INCLUDED 41 IN THIS TOTAL. 42

(b) Financial statements prepared in accordance with generally 43 accepted accounting principles. 44

HB 2386

- 6 -

(c) A reconciliation of the total expenditures reported within the 1 financial statements to the total expenditures reported within the 2 expenditure limitation report. 3

B. The auditor general shall provide detailed instructions for 4 completion and submission of the reports described in subsection A of this 5 section. The auditor general shall prescribe definitions for terms utilized 6 in and the form of the reports described in subsection A of this section. The 7 reports described in subsection A of this section are required of counties 8 and community college districts beginning with fiscal year 1981-1982. The 9 reports described in subsection A of this section are required of cities and 10 towns beginning with the fiscal year the political subdivision is subject to 11 the expenditure limitation. The annual reporting requirements also apply to 12 political subdivisions subject to an alternative expenditure limitation 13 enacted pursuant to article IX, section 20, subsection (9), Constitution of 14 Arizona. 15

C. The reports described in subsection A of this section must be filed 16 with the auditor general within four months after the close of each fiscal 17 year. Upon written request, the auditor general may grant up to a one 18 hundred twenty day extension, if extenuating circumstances exist that prevent 19 submission of the reports within the required four month period. 20

D. The auditor general or a certified public accountant or public 21 accountant performing the annual audit required pursuant to sections 22 41-1279.21 and 9-481 shall attest to the expenditure limitation reports and 23 financial statements for counties, community college districts and cities. 24 The certified public accountant or public accountant performing the annual or 25 biennial audit required pursuant to section 9-481 shall attest to the 26 expenditure limitation reports and financial statements for towns. 27

E. Each political subdivision shall provide to the auditor general by 28 July 31 each year the name of the chief fiscal officer designated by the 29 governing board of the political subdivision to submit the current fiscal 30 year's expenditure limitation report. The political subdivision shall notify 31 the auditor general of any changes of individuals designated to file the 32 required reports. The designated chief fiscal officer shall certify to the 33 accuracy of the annual expenditure limitation report. 34

F. The auditor general shall prescribe forms for the uniform reporting 35 system and may provide assistance to individuals, certified public 36 accountants or public accountants responsible for attesting to the 37 expenditure limitation reports and financial statements. 38

G. A chief fiscal officer, designated pursuant to subsection E of this 39 section, who subsequent to July 1, 1983 refuses to file the reports required 40 by this section within the prescribed time periods or who intentionally files 41 erroneous reports is guilty of a class 1 misdemeanor. A city or town 42 exceeding the expenditure limitation prescribed or authorized pursuant to 43 article IX, section 20, Constitution of Arizona, for any fiscal year, without 44 authorization pursuant to such section, shall have the amount specified in 45

HB 2386

- 7 -

subsection H of this section of its allocations of the state income tax, 1 distributed pursuant to section 43-206, withheld and redistributed to other 2 cities and towns in the same manner as determined pursuant to that section, 3 except that the population of the city or town exceeding the expenditure 4 limitation shall not be included in the computation, and the city or town 5 exceeding the expenditure limitation shall not be entitled to share in the 6 redistribution. A community college district exceeding the expenditure 7 limitation prescribed pursuant to article IX, section 21, Constitution of 8 Arizona, for any fiscal year, without authorization pursuant to such section 9 or section 15-1471, shall have the amount specified in subsection H of this 10 section of its allocations of state aid, distributed pursuant to section 11 15-1466, withheld. 12

H. The auditor general shall hold a hearing to determine if any 13 political subdivision has exceeded the expenditure limitations prescribed 14 pursuant to article IX, sections 20 and 21, Constitution of Arizona. If a 15 county has exceeded the expenditure limitations prescribed pursuant to 16 article IX, section 20, Constitution of Arizona, without authorization 17 pursuant to that section, the auditor general shall notify the board of 18 supervisors of the county to reduce the allowable levy of primary property 19 taxes of the county pursuant to section 42-17051, subsection C. If any 20 political subdivision other than a county has exceeded the expenditure 21 limitations prescribed pursuant to article IX, sections 20 and 21, 22 Constitution of Arizona, without authorization, the auditor general shall 23 notify the state treasurer to withhold a portion of the political 24 subdivision's allocations of the revenues described in subsection G of this 25 section for the fiscal year subsequent to the auditor general's hearing as 26 follows: 27

1. If the excess expenditures are less than five per cent of the 28 limitation, an amount equal to the excess expenditures. 29

2. If the excess expenditures are equal to or greater than five per 30 cent but less than ten per cent of the limitation, or are less than five per 31 cent of the limitation but it is at least the second consecutive instance of 32 excess expenditures, an amount equal to triple the excess expenditures. 33

3. If the excess expenditures are equal to or greater than ten per 34 cent of the limitation, an amount equal to five times the excess expenditures 35 or one-third of the allocation of the revenues described in subsection G of 36 this section, whichever is less. 37

I. A county, city or town is not deemed to have exceeded the 38 expenditure limitation if the county, city or town makes expenditures for 39 capital improvements from utility revenues pursuant to title 9, chapter 5, 40 article 3 or from excise taxes levied by the county, city or town for a 41 specific purpose and the county, city or town repays the expenditure from the 42 proceeds of bonds or other lawful long-term obligations before the hearing 43 required by subsection H of this section. 44

- i -

REFERENCE TITLE: Yuma desalting plant State of Arizona Senate Fifty-first Legislature Second Regular Session 2014

SCM 1001

Introduced by Senator Griffin; Representatives Gowan, Stevens: Senators Burges,

Farnsworth D, Murphy, Ward; Representatives Barton, Borrelli, Kwasman, Livingston, Mitchell, Montenegro, Seel, Thorpe, Townsend

A CONCURRENT MEMORIAL URGING THE SECRETARY OF THE UNITED STATES DEPARTMENT OF THE INTERIOR TO IMMEDIATELY TAKE ALL NECESSARY MEASURES TO OPERATE THE YUMA DESALTING PLANT.

(TEXT OF BILL BEGINS ON NEXT PAGE)

SCM 1001

- 1 -

To the Secretary of the United States Department of the Interior: 1 Your memorialist respectfully represents: 2 Whereas, under a treaty agreement entered into in 1973, the United 3

States is required to ensure that water delivered to Mexico as part of 4 Mexico's allocation of Colorado River water meets certain water quality 5 standards; and 6

Whereas, in accordance with this agreement, the United States Congress 7 enacted the Colorado River Basin Salinity Control Act of 1974, which directed 8 and authorized the Secretary of the Interior to construct, operate and 9 maintain a desalting plant to treat drainage water from the Wellton-Mohawk 10 Irrigation and Drainage District and deliver the treated water to Mexico; and 11

Whereas, construction of the Yuma Desalting Plant was completed in 12 1992; and 13

Whereas, the Yuma Desalting Plant is capable of treating 100,000 14 acre-feet of water annually; and 15

Whereas, except for limited, initial operations in 1993, a 16 demonstration run completed in 2007 and a nine-month pilot run completed in 17 2011, the federal government has failed to operate the Yuma Desalting Plant 18 for most of its 30 years of existence; and 19

Whereas, the Department of the Interior is using 100,000 acre-feet of 20 water from Lake Mead to fulfill its water quality obligations to Mexico, 21 rather than conserving an equivalent amount of water through the operation of 22 the Yuma Desalting Plant; and 23

Whereas, the Colorado River system is in its 14th consecutive year of 24 drought; and 25

Whereas, as a result of these drought conditions, the Department of the 26 Interior is projecting that a shortage on the Colorado River is increasingly 27 likely, with the probability that the shortage will exceed 50% in 2017; and 28

Whereas, the Colorado River Basin Water Supply and Demand Study 29 released by the Bureau of Reclamation in December 2012 concluded that there 30 will be a future imbalance between the supply and demand for Colorado River 31 water and cited measures such as water conservation, reuse and augmentation 32 to stave off future shortages on the Colorado River; and 33

Whereas, the Central Arizona Project is a junior priority rights holder 34 to Colorado River water and would bear the largest reduction of Colorado 35 River water in times of shortage; and 36

Whereas, by abdicating its obligation to operate the Yuma Desalting 37 Plant, the federal government has caused the loss of more than 1,300,000 38 acre-feet from Lake Mead, placing the State of Arizona at increased risk of 39 water shortage; and 40

Whereas, if the federal government were to operate the Yuma Desalting 41 Plant, it would conserve 100,000 acre-feet per year, equivalent to the water 42 needed to supply more than 250,000 Arizona residents with water annually. 43

SCM 1001

- 2 -

Wherefore your memorialist, the Senate of the State of Arizona, the House of 1 Representatives concurring, prays: 2 1. That the Secretary of the United States Department of the Interior 3

immediately take all necessary measures to operate the Yuma Desalting Plant. 4 2. That the Secretary of State of the State of Arizona transmit copies 5

of this Memorial to the President of the United States, the President of the 6 United States Senate, the Speaker of the United States House of 7 Representatives and each Member of Congress from the State of Arizona. 8

1

Public Policy Agenda Number 2. Attachment 2.

2

The Arizona Department of Water Resources administers and enforces Arizona's groundwater code and surface water rights laws. The CAP partners with ADWR on many levels and desires to see the Department remain viable through adequate funding.

CAP Position: Monitor the Legislature's budgeting processes and agency rulemaking to ensure the Arizona Department of Water Resources' current level of funding is maintained.

Update:The Governor's budget contains a $14.6-million General Fund appropriation to the Arizona Department of Water Resources for FY 2015, which is approximately a $2.3-million increase over FY 2014. As part of the increase, the Governor proposes to add 11 full-time positions at the department. The Executive recommends three full-time positions to be dedicated to Colorado River issues, two of which will work with stakeholders, includingCAP by reference, to identify and implement methods to preserve groundwater. The third position will work to develop strategies to augment Colorado River use and to develop new water supplies. The remaining eight positions would be dedicated for statewide planning, adjudication assistance, and compliance and enforcement.

3

State law provides for the collection of boater registration fees to support the Arizona Game and Fish Department's (AGFD) annual contribution to the costs of the Lower Colorado River Multi-Species Conservation Plan (MSCP).

CAP Position: Support the Arizona Game and Fish Department's efforts to collect and maintain revenues sufficient to continue its annual contribution toward the costs of the MSCP.

Update:The line item appropriation for the Arizona Game and Fish Department's (AGFD) Watercraft Licensing Fund in the Governor's proposed FY 2015 budget is unchanged from FY 2014 at $4.6 million. Department officials have indicated they do not envision any problems with AGFD making the MSCP payment in FY 2015.

4

The Arizona Legislature established the Arizona Water Protection Fund in 1994 to provide monies for implementation of projects that will maintain, enhance and restore rivers, streams and associated riparian resources through a yearly competitive public grant process. In recent years, State funding of the Fund has diminished.

CAP Position: Monitor the status of the Arizona Water Protection Fund and efforts to maintain sufficient levels of State funding.

Update:Prior to 2011, the requirement of an annual $5 million state General Fund appropriation, minus the CAWCD property tax equivalency funds, to the Arizona Water Protection Fund existed in state statute. Although a statutory appropriation existed prior to 2011, the Water Protection Fund line item in the state budget had been zeroed out since FY 2000. CAP is represented on the Water Protection Fund Commission.

The Governor's budget does not allocate General Fund monies to the Water Protection Fund in FY 2015.

Stephanie Smallhouse has replaced Rodney Held as the Executive Director of the Water Protection Fund.

5

H.B. 2326 (water banking authority; storage credits), sponsored by Rep. T.J. Shope, grants the Arizona Water Bank (AWBA) the authority to purchase long-term storage credits.

CAP staff met with ADWR and AWBA staff to better understand the need for this legislation and to request some technical amendments clarifying funding and coordination issues.

HB 2326 was assigned to the House Agriculture and Water Committee and awaits a hearing.

Recommended Position: AMEND and MONITOR

6

H.B. 2073 (central Arizona project board; membership), sponsored by Rep. Albert Hale, proposes to add a non-voting tribal member to the CAP Board of Directors.

H.B. 2073 was assigned to the House Agriculture and Water Committee and awaits a hearing.

On January 23, Board President Pickard and General Manager Modeer sent a letter to the leadership of the Inter Tribal Council of Arizona requesting a meeting to understand the need for this proposed shift to collective Tribal representation.

Recommended Position: HOLD, Pending discussion

7

S.C.M. 1001 (Yuma desalting plant), sponsored by Sen. Gail Griffin, urges the U.S. Department of the Interior to operate the Yuma Desalting Plant.

S.C.M. 1001 was passed, 5-0, by the Senate Government and Environment Committee on January 27 with a minor amendment.

Recommended Position: SUPPORT

8

H.B. 2386 (special districts; elections; financing; limits), sponsored Rep. Justin Olson, requires that the voters approve the assessment of secondary property taxes by special taxing districts, including the CAWCD. The bill currently contains an exemption for the Salt River Project. An amendment is needed to also exempt CAP.

HB 2386 was assigned to the House Government Committee and awaits a hearing.

Recommended Position: AMEND and MONITOR

9

10