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HB2934 • 2026

Harquahala; groundwater transportation fee

HB2934 - Harquahala; groundwater transportation fee

Taxes Water
Passed Legislature

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

Sponsor
Leo Biasiucci, Gail Griffin
Last action
2026-02-25
Official status
House committee of the whole
Effective date
Not listed

Plain English Breakdown

The official text does not specify an effective date for this bill.

HB2934: Groundwater Transportation Fee for Harquahala

This law requires people moving groundwater from the Harquahala area to certain managed areas in Arizona to pay an annual fee based on how much water they transport.

What This Bill Does

  • Requires a person transporting, directly or indirectly, groundwater from any portion of the Harquahala irrigation non-expansion area (INA) to an initial active management area (AMA) to pay a transportation fee to a specified county.
  • Sets specific fees per acre-foot of water that increase as more cumulative water is transported: $3.00 for 0–1,000,000 acre-feet; $5.00 for the next million; $7.50 for the third million; $10.00 for the fourth million; $15.00 for the fifth million; and $30.00 for amounts over 5,000,000 acre-feet.
  • Allows the director to adjust these dollar amounts each year based on changes in the GDP price deflator since 1993.
  • Permits credits against the fee if property tax revenues increase due to improvements or higher valuations of remote municipal land where water is withdrawn, excluding increases from normal market factors.
  • Provides a credit equal to the market value of any land donated to a county that agrees in writing to limit groundwater withdrawal from it.

Who It Names or Affects

  • People who directly or indirectly transport groundwater away from the Harquahala irrigation non-expansion area
  • Counties containing parts of the Harquahala INA that do not include any initial active management areas, which receive the fees

Terms To Know

Harquahala irrigation non-expansion area (INA)
A specific region in Maricopa and La Paz counties created in 1981 from which groundwater can be moved to other areas.
Initial active management area (AMA)
Designated regions where water use is strictly managed by the state, such as parts of Phoenix or Tucson.
Acre-foot
The unit used to measure groundwater volume for calculating fees; it represents one acre covered with one foot of water.

Limits and Unknowns

  • People do not have to pay this fee if they are moving stored water withdrawn under recovery well permits.
  • Credits for increased property taxes only apply to revenue gains from improvements or reclassification, not normal market price increases.
  • Unused credits may be carried forward and applied to fees in future years.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: This amendment changes which county collects a fee when groundwater from specific areas like Harquahala is moved away.

  • It requires people moving water from the Harquahala Irrigation Non-Expansion Area to pay fees to a nearby non-active management area county instead of other counties.
  • If that receiving county has created a special authority, it must give 25% of those collected fees to that authority.
  • The official text provided is cut off at the end and does not show all details about how tax credits are calculated.
  • Some parts of the amendment use brackets to remove old rules, but the full context of those removed rules is missing from this snippet.

Bill History

  1. 2026-02-25 House

    House committee of the whole

  2. 2026-02-17 House

    House minority caucus

  3. 2026-02-17 House

    House majority caucus

  4. 2026-02-05 House

    House second read

  5. 2026-02-04 House

    House Rules: C&P

  6. 2026-02-04 House

    House Natural Resources, Energy & Water: DPA

  7. 2026-02-04 House

    House first read

Official Summary Text

HB2934 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House
: NREW DPA 6-4-0-0

HB
2934
: Harquahala; groundwater transportation fee

Sponsor:
Representative Biasiucci, LD 30

Caucus
& COW

Overview

Requires
a person transporting groundwater from the Harquahala irrigation non-expansion
area (INA) to an initial active management area (AMA) to pay the groundwater
transportation fee to a specified county.

History

Unless specifically authorized, groundwater that is withdrawn
in a basin or sub-basin located outside an initial AMA may
not be transported to an initial AMA. Current
law identifies four groundwater basins and sub-basins from which
groundwater can be withdrawn and transported to an initial AMA. Those
basins are the: 1) McMullen Valley; 2) Butler Valley;
3) Harquahala INA; and 4) Big Chino sub-basin of the Verde River
groundwater basin. Transportation of groundwater from these basins is subject
to limitations as outlined in statute (
A.R.S. � 45-551
).

The Harquahala INA was created in 1981 and exists in Maricopa
and La Paz counties (
Arizona Department of Water
Resources
).

Provisions

1.

Requires a
person transporting, directly or indirectly, groundwater from any portion of
the Harquahala INA to an initial AMA to pay the groundwater transportation fee
to a county containing a portion of the Harquahala INA that does not contain
any portion of an initial AMA. (Sec. 1)

2.

Makes
technical changes. (Sec. 1)

Amendments

Committee on
Natural Resources, Energy and Water

1.

Requires a
person transporting, directly or indirectly, groundwater from any portion of
the McMullen groundwater basin to an initial AMA to pay the groundwater
transportation fee to a county containing a portion of the McMullen groundwater
basin that does not contain any portion of an initial AMA. (Sec. 1)

2.

Stipulates that if a county has
formed an authority, the county must make 25% of any transportation fees paid
to the county available to the authority. (Sec. 1)

3.

4.

5.

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FOOTER ---------

6.

Initials CW/RS��������������� HB
2934

7.

2/13/2026� Page 0 Caucus
& COW

8.

9.

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FOOTER ---------

Current Bill Text

Read the full stored bill text
HB2934 - 572R - I Ver

REFERENCE TITLE:
Harquahala; groundwater transportation fee

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2934

Introduced by

Representatives
Biasiucci: Griffin

AN
ACT

amending section 45-556, Arizona
Revised Statutes; relating to the withdrawal of groundwater.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 45-556, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-556.

Transportation fee; annual adjustment; credits; enforcement

A. Except as provided in subsection B of this
section, a person who directly or indirectly transports groundwater, withdrawn
in a groundwater basin or
sub-basin

subbasin

as provided by this article or in the Pinal active management area, away from
the county in which it was withdrawn to an initial active management area shall
pay annually to the county a groundwater transportation fee determined by the
director for each acre-foot of groundwater transported directly or
indirectly away from the county, less any amount of central Arizona project
water actually used on the property from which the groundwater is transported.

B. A person is not required to pay a transportation
fee under this section for stored water withdrawn pursuant to recovery well
permits issued by the director pursuant to this title.�
A person
who directly or indirectly transports groundwater AWAY from any portion of the
Harquahala irrigation non-expansion area to an initial active management
area PURSUANT TO section 45-554 shall pay the groundwater transportation
fee to a county that contains a portion of the Harquahala irrigation non-EXPANSION
area and that does not contain any PORTION of an initial active management
area.

C. Except as provided in subsection D of this
section the director shall set the fee as follows for the cumulative amount of
groundwater transported away from the county, less any amount of central
Arizona project water actually used on the property from which the groundwater
is transported:

���������
Net Groundwater Transported
������������
Fee Per
Acre-Foot

������� 0
- 1,000,000 acre-feet������������ $ 3.00

������� 1,000,001
- 2,000,000 acre-feet������������ $ 5.00

������� 2,000,001
- 3,000,000 acre-feet������������ $ 7.50

������� 3,000,001
- 4,000,000 acre-feet������������ $10.00

������� 4,000,001
- 5,000,000 acre-feet������������ $15.00

�������
Over 5,000,000 acre-feet������������ $30.00

D. The director shall annually adjust the dollar
amount of the fee according to the annual changes in the GDP price deflator, as
defined in section 41-563, using the 1993 calendar year as the base
year. The director shall immediately notify all concerned parties of
the fee adjustments under this subsection.

E. Credits are allowed against the fees imposed by
this section as described and in the amounts provided under this
subsection. If the amount of the credit exceeds the amount of the
fee imposed for any year, the unused portion of the credit may be carried
forward and applied to subsequent years' fees until the amount of the credit is
exhausted. The allowable credits are as follows:

1. The amount of any increase in property tax
revenues, including contributions in lieu of property taxes under title 9,
chapter 4, article 3, derived from remote municipal property, as defined in
section 42-15251, from which the groundwater is withdrawn. The
credit shall account for increased revenues due to improvements to the property
and increased revenues due to higher property tax valuations and assessment
ratios resulting from changes in use of the property. The credit
shall not account for increased revenues due to normal market or economic
factors. The amount of the credit for any year is the sum of the amounts
computed under subdivisions (a) and (b)
of this paragraph
as
follows:

(a) Delete from consideration under this subdivision
any property with respect to which an amount is computed under subdivision (b)
of this paragraph
.� Subtract the amount of property tax or in
lieu revenues that would have been derived from the remaining property during
the immediately preceding tax year if the use of and improvements to the
property had remained unchanged since the date the city or town acquired the
property from the amount of property tax or in lieu revenues actually derived
from that property during the immediately preceding tax year. If a
city or town conveys all or part of its interest in remote municipal property
to another political subdivision, the political subdivision succeeds to the
credit allowed under this section. The amount of credit computed
under this subdivision shall be computed each year, beginning in the year
groundwater is first transported
,
and, if not used
to offset the fee under this section, shall be cumulated from year to year.

(b) This subdivision applies with respect to any
portion of the remote municipal property that, before January 1, 1992, was
classified at that time as class four property for purposes of property
taxation under title 42 but was developed or improved at any time after
December 31, 1991 and is not currently classified as class two
property. Subtract the amount of property tax or in lieu revenues
that would have been derived from that developed or improved portion of the
remote municipal property during the immediately preceding tax year if the use
of and improvements to the property had remained unchanged since the date the
city or town acquired the property from the amount of property tax or in lieu
revenues actually derived from that portion of the property during the
immediately preceding tax year. If a city or town conveys all or
part of its interest in remote municipal property to another political
subdivision, the political subdivision succeeds to the credit allowed under
this section. The amount of credit computed under this subdivision shall be
computed each year, beginning in the year that the property is developed or
improved and reclassified for tax purposes
,
and, if
not used to offset the fee under this section, shall be cumulated from year to
year.

2. An amount equal to the market value of land
donated to the county if the county agrees in writing to prohibit or limit the
withdrawal of groundwater from the land. The amount of the credit
shall account for the reduced value of the land due to the groundwater
withdrawal limitations.

3. An amount agreed to by intergovernmental
agreement between the county in which the groundwater is withdrawn and the
city, town or other person transporting the groundwater.

F. The board of supervisors of a county to which
fees are due and payable under this section may request the county attorney to
commence and prosecute any action or proceeding to enforce the collection of
the fees.
END_STATUTE