Arizona House Speaker Steve Montenegro announced today that the Arizona House of Representatives, in partnership with the Home Builders Association of Central Arizona (HBACA) and the Arizona Senate, has filed a lawsuit against the Arizona Department of Water Resources (ADWR) over its adoption of an unlawful groundwater tax that threatens housing affordability across the state.
“This is government overreach at its worst,” said Speaker Montenegro. “The people of Arizona elected us to defend their interests, not allow unelected bureaucrats to impose illegal taxes that make the American Dream of homeownership even more out of reach. The 33.3% groundwater tax represents not only a blatant overreach of executive authority, but also a direct attack on hardworking Arizona families who will see the price of new homes increase by thousands. We cannot allow the executive branch to trample on the authority of the Legislature or push through extreme policies that drive up the cost of living.”
The lawsuit challenges ADWR’s “Alternative Path to Designation of Assured Water Supply” (ADAWS) regulations, which mandate that developers secure 33.3% more water than necessary to meet their own needs. The purpose of the mandate is to make future homebuyers subsidize the unreplenished groundwater pumping of other users. This mandate, which was imposed without legislative approval, exceeds the scope of existing law and cannot be enforced. The Legislature has repeatedly made clear that this 33.3% groundwater tax is illegal, including through a formal resolution adopted by the Joint Legislative Ad Hoc Study Committee on Water Security in December and a House Concurrent Resolution advanced by the House this session.
“This is a cut-and-dried case,” Speaker Montenegro continued. “The department has gone rogue, acting as if it is above the law and unaccountable to the people of Arizona. It ignored direct warnings from the Legislature, bypassed stakeholder input, and rushed through a rulemaking process that will drive up home prices for thousands of Arizonans. This is exactly why our House Republican Majority Plan focuses on reining in executive overreach, making housing affordable, and lowering taxes for Arizonans. Homebuyers should not be forced to foot the bill for illegal taxes or subsidies for other water users.”
The Legislature is taking this action to restore order and accountability to ADWR, defend the authority of the legislative branch, and prevent unnecessary costs from being passed on to Arizona homebuyers.
A copy of the lawsuit is available HERE (below the Press Release).
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1 thought on “Arizona House of Representatives Sues Rogue Water Agency for Illegal Rules that Increase Housing Costs”
The good guys are not the Central Arizona Home Builders Association. They also are a political group that attacks law to gain profits and eliminate opposition. They sued a terrific council candidate in Prescott Valley to keep him off the council. They seek advantages for profits and normally would care less about water. However, they do have the law on their side but “We the People” don’t. Our greater Prescott area is out of water. That is to say we are getting 25% less water from Mother Nature than 30 years ago. Yet, we have doubled in population so……… we need to stop development and conserve what is left.
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