AZ SB1197

Modifies the definition of "service area of an irrigation district" in section 45-402 to clarify that additional areas containing operating canal systems owned or operated by the irrigation district cannot be added to the service area after December 31, 2027.

Expands the authority granted to irrigation and water conservation districts under section 48-3207 to design, construct, acquire, rehabilitate or improve water or wastewater infrastructure projects using loans from the Water Infrastructure Finance Authority of Arizona (WIFA).

Allows districts to use loan repayment agreements with WIFA to finance nonpoint source projects and related property and appurtenances in addition to drinking water facilities.

Permits districts to include financing and loan administration fees, administrative expenses, and the district's proportionate share of revolving fund costs in assessment amounts pledged to repay WIFA loans.

Makes various technical corrections to statutory language throughout both sections, including grammatical edits and clarifications of definitions and procedures.