state lands; leases; groundwater use

HB2515 - state lands; leases; groundwater use

Water

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Stephanie Stahl Hamilton, Brian Garcia, Nancy Gutierrez, Mariana Sandoval, Stephanie Simacek, Stacey Travers, Betty J Villegas, Rosanna Gabaldón, Analise Ortiz
Last action: 2026-01-27
Official status: House second read
Effective date: Not listed

Plain English Breakdown

The bill defines terms by referencing section 45-402 but does not provide the full definitions within this document.

HB2515: Groundwater Fees and Reporting for State Land Leases

This bill requires lessees of state agricultural land located outside specific water zones to pay an annual fee and report their groundwater use.

What This Bill Does

Requires the department to set rules and collect an annual groundwater withdrawal fee from lessees using irrigation on certain state lands.
Mandates that these lessees submit a yearly report by March 31 listing well locations, water amounts withdrawn, and specific uses of the water.
Directs that all fees collected under this law be deposited into the fund for the appropriate beneficiary.
States legislative intent that the fee should reflect the fair market value of the groundwater taken.

Who It Names or Affects

Lessees who hold state land leases designated as agricultural land located outside an active management area or irrigation non-expansion area.
The department responsible for managing state lands and collecting fees.

Terms To Know

Active Management Area: A term defined in section 45-402 of Arizona law used to identify specific zones where groundwater rules apply.
Irrigation Non-Expansion Area: A term defined in section 45-402 of Arizona law identifying areas with limits on new irrigation uses.

Limits and Unknowns

The bill does not specify the exact dollar amount or calculation method for the annual fee, only that it should reflect fair market value.
The text does not list penalties if a lessee fails to pay the fee or submit the required report.

Bill History

2026-01-27 House
House second read
2026-01-26 House
House Rules: None
2026-01-26 House
House Natural Resources, Energy & Water: None
2026-01-26 House
House first read

Official Summary Text

HB2515 - state lands; leases; groundwater use

Current Bill Text

Read the full stored bill text

HB2515 - 572R - I Ver

REFERENCE TITLE:
state lands; leases; groundwater use

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2515

Introduced by

Representatives
Stahl Hamilton: Garcia, Gutierrez, Sandoval, Simacek, Travers, Villegas;�
Senators Gabald�n, Ortiz

AN
ACT

amending title 37, chapter 2, article 4,
Arizona Revised Statutes, by adding section 37-292; relating to state
lands leases.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section
1.
Title
37, chapter 2, article 4, Arizona Revised Statutes, is amended by adding
section 37-292, to read:

START_STATUTE
37-292.

Groundwater
withdrawal fee; agricultural land; annual report; fee deposits; definitions

A. The
department shall establish by rule and collect an annual groundwater withdrawal
fee from each lessee of state land that is agricultural land and that is
located outside of an active management area or an irrigation non-expansion
area for the irrigation use of groundwater.

B. On or
before March 31 of each year, a lessee of state land that is agricultural land
and that is located outside of an active management area or an irrigation non-expansion
area shall report the following information to the department regarding the
irrigation use of groundwater on that lessee's state land:

1. The
location of the well.

2. The
quantity of groundwater withdrawn from the well during the previous calendar
year.

3. The
specific uses to which the groundwater was applied during the previous calendar
year.

C. Fees
collected pursuant to this section shall be deposited in the fund of the
appropriate beneficiary.

D. For
the purposes of this section:

1. "Active
management area" has the same meaning prescribed in section 45-402.

2. "Irrigation
non-expansion area" has the same meaning prescribed in section 45-402.

3. "Irrigation
use" has the same meaning prescribed in section 45-402, paragraph
23, subdivision (
a
).
END_STATUTE

Sec.
2.

Legislative intent

The
legislature intends that it is in the best interest of the state land trust for
the annual groundwater withdrawal fee adopted pursuant to section 37-292,
Arizona Revised Statutes, as added by this act, to reflect the fair market
value of the groundwater withdrawn.