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HB2515 • 2026

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

Checked against official source text during the last sync.

Groundwater Withdrawal Fee on State Land Leases

This bill requires lessees of agricultural state land outside active management or irrigation non-expansion areas to pay an annual fee for using groundwater and report their usage.

What This Bill Does

  • Creates a new law that allows the department to set rules for collecting an annual fee from people who lease agricultural state land for using groundwater.
  • Requires lessees to submit reports each year about where they took water, how much they used, and what it was used for.
  • Specifies that fees collected must go into the fund of the appropriate beneficiary.

Who It Names or Affects

  • People who lease agricultural state land outside active management or irrigation non-expansion areas
  • The department responsible for collecting fees

Terms To Know

Active Management Area
A specific area where the state controls groundwater use to prevent overuse.
Irrigation Non-Expansion Area
An area where new irrigation projects are not allowed to expand.

Limits and Unknowns

  • The bill does not specify how much the fee will be or what happens if someone doesn't pay.
  • It is unclear who exactly benefits from the fund that collects these fees.

Bill History

  1. 2026-01-27 House

    House second read

  2. 2026-01-26 House

    House Rules: None

  3. 2026-01-26 House

    House Natural Resources, Energy & Water: None

  4. 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.