Arizona House Sues Water Agency For Rules That Increase Housing Costs

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This week, Speaker of the House Steve Montenegro announced 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 what the Department’s adoption of a tax that threatens housing affordability across the state.

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 government overreach at its worst,” said 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.”

“This is a cut-and-dried case,” 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.”

Montenegro says 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.”

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3 Comments

  1. Well, finally found out that the bureaucrats are running the state courtesy of the idiot governor and AG. Time to fire a lot of them and make sure the others know that they are working for the taxpayer, not themselves. You know the governor will not say a word….nor will the AG…..

  2. When are they going to remove the responsible bureaucrats that attempt to usurp legislative powers? And if, indeed, they have been warned, they need to be prosecuted for their unlawful acts.

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