House of Representatives

HB 2408

water infrastructure finance authority

Sponsors: Rep. Huffman, Flake, Carruthers, et. al

 

dpa
S/E

Committee on Environment
dpa
S/E

Committee on Natural Resources

DPA

 

Caucus and COW

 

x

As Transmitted to the Governor

 

HB 2408 makes a variety of changes in the statutes relating to the Water Infrastructure Finance Authority of Arizona (WIFA) operations.   

History

The Wastewater Management Authority of Arizona (WMA) was established by the Arizona Legislature in 1989 as the Wastewater Management Authority of Arizona to administer the State Revolving Fund (SRF) (created by amendments to the federal Clean Water Act of 1987).  In 1997, after Congressional passage of the Safe Drinking Water Act Amendments, the Arizona Legislature created the Drinking Water Revolving Fund (DWRF).  It also reorganized WMA into the Water Infrastructure Finance Authority of Arizona (WIFA) to administer DWRF and the Clean Water Revolving Fund (CWRF), formerly the SRF.  WIFA also administers the Technical Assistance Program (TAP) a program that provides grants and loans for technical assistance to eligible wastewater and drinking water systems of populations under 10,001.  To be considered for WIFA financial assistance, a project must be on either the CWRF or DWRF Project Priority List (PPL) of the respective Intended Use Plan (IUP).

 

Provisions

·        A clarification of Financial Assistance Loan Repayment Agreements (FALRAs) for construction of water and wastewater infrastructure and Technical Assistance Loan Repayment Agreements (TALRAs) for development, planning and design of water and wastewater projects is made.  These apply to cities, towns, counties and certain special districts (county improvement districts, domestic water improvement districts and sanitary districts.  (ARS 9-571, 11-671, 48-909.01, 48-1019, 48-2011.01)

 

·        Technical assistance loans shall not to exceed $500,000 and are to be repaid within three years. Technical assistance does not create any liability for the authority or state regarding the design, construction or operation of any infrastructure project.  (ARS 49-1201, 49-1203)

 

·        Cities, towns, counties and the aforementioned special districts may borrow additional financial assistance in the amount approved by the voters less the amount they are already obligated to repay through an established FALRA.   (ARS 9-571, 11-671,48-909.01, 48-1019, 48-2011.01) ;  the prohibition against going back to the voters for two years for disapproved FALRAs is removed  (ARS 9-571, 11-671, 48-2011.01)

 

·        The loan repayment term is increased from twenty to thirty years for CWRF loans, to be consistent with DWRF loans. (ARS 49-1225)

 

·        WIFA's deadline to process an application is extended from sixty to ninety days. (ARS 49-1224,  49-1244)

 

·        Language is removed that was made technically obsolete by legislative action in 1998 and bond reorganization by WIFA in 1999. (ARS 49-1262)

 

·        If the WIFA board passes a resolution to secure a loan under the Drinking Water Revolving Fund or Clean Water Revolving Fund by a pledge of shared state tax revenues and urban revenue sharing to municipalities and counties,  WIFA and GADA must enter into an intercreditor agreement to define the allocation of those revenues in relation to individual borrowers. This applies to loans made after June 30, 2001.

 

·        The state treasurer would withhold any monies that would be intercepted until WIFA certifies the default is cured.

 

 

 

 

 

 

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45th Legislature                       

Second Regular Session            3          April 26, 2001

 

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