AZ HB2328

Prohibits municipal corporations in Arizona counties with populations between 1 million and 4 million from charging higher water rates to residents living outside municipal boundaries than those charged to residents inside the boundaries

Applies to municipalities that provide water service to areas beyond their corporate limits in mid-sized metropolitan counties (primarily targeting Maricopa County area)

Maintains existing provisions allowing water rate structures between municipalities based on cost of service studies or mutual agreements

Preserves grandfather clause for pre-July 1986 surcharges on water provided to other municipalities, capped at 30% above rates charged to the providing municipality's own residents

Amends Section 9-511 of Arizona Revised Statutes governing municipal utilities and their authority to provide services outside corporate limits