Senate, House Republicans Probe Unlawful Rule from Unelected Bureaucrats that Promises to Raise Costs on Housing, Water for Arizonans

FOR IMMEDIATE RELEASE                                                                             

Wednesday December 18, 2024

Senate, House Republicans Probe Unlawful Rule from Unelected Bureaucrats that Promises to Raise Costs on Housing, Water for Arizonans

PHOENIX, ARIZONA— Unelected bureaucrats working under the Hobbs Administration are implementing a radical rule outside of their authority that promises to raise costs for Arizonans on housing and water.

Members of the Joint Legislative Ad Hoc Study Committee on Water Security heard from the Arizona Department of Water Resources and representatives of the Home Builders Association of Central Arizona today on the legality and dire consequences of the Department’s recently adopted “Alternative Path to Designation of Assured Water Supply” rule.

The rule, which was adopted by the Department on November 25, 2024, impose a 25% groundwater tax on municipal water service providers, like Buckeye and Queen Creek, as a condition for new growth, which is not authorized by existing law.

Arizona Supreme Court Justice Andy Gould testified that the 25% groundwater tax is unlawful and unconstitutional.

"The Department’s 25% groundwater tax will have vast economic and political consequences that will negatively impact the homebuilding industry, price of water, and cost of living," said Representative Gail Griffin, committee co-chair. "This will dramatically increase the cost of new housing for hard-working Arizonans who have already been hurt over the past several years by out-of-control rising prices."

"Instead of answering our requests for more information, the Department avoided our questions and referred us to their half-baked report," said Senator Sine Kerr, committee co-chair. "I am disappointed in the Department's lack of transparency and regard for the Legislature. What's even worse, Democrats from the House and Senate disgracefully refused to show up to this fact-finding hearing, showing their lack of care and concern for the major financial hit Arizonans are about to face as a result of this new rule."

The Committee adopted a resolution finding that the 25% groundwater tax adopted by the Department is illegal, inconsistent with legislative intent, and beyond the Department’s statutory authority.

A copy of the resolution can be found here.

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For more information, contact:

Kim Quintero

Director of Communications | Arizona State Senate Republican Caucus

kquintero@azleg.gov