appropriation; irrigation grandfathered rights; retirement

Plain English Breakdown

The effective date is listed as empty in the metadata; while the bill passed the legislature, it may require executive action to become law.

HB4108: Funding for Retiring Irrigation Water Rights

This bill provides $50 million from the state general fund in fiscal year 2026-2027 to pay holders of irrigation grandfathered rights who permanently retire or reduce their water use.

What This Bill Does

• Sets aside $50,000,000 for fiscal year 2026-2027 from the state general fund.
• Gives this money to the Department of Water Resources (ADWR).
• Pays holders of irrigation grandfathered rights when they permanently retire or reduce their water use.
• Requires ADWR to start buying these rights by December 31, 2026.
• Allows conservation agreements that lower annual water allotments as part of the retirement process.

Who It Names or Affects

• Holders of irrigation grandfathered rights
• The Department of Water Resources (ADWR)

Limits and Unknowns

• The bill does not specify how many water rights will be purchased with the funds.
• While exempt from lapsing rules, the text does not explicitly state if all $50 million must be spent by the end of fiscal year 2026-2027.

Official Summary Text

HB4108 - appropriation; irrigation grandfathered rights; retirement

Current Bill Text

HB4108 - 572R - I Ver

REFERENCE TITLE:
appropriation; irrigation
grandfathered rights; retirement

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 4108

Introduced by

Representative
Mathis

AN
ACT

appropriating monies to the DEPARTMENT of
water resources.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1.
Appropriation;
department of water resources; retirement of irrigation grandfathered rights;
fiscal year 2026-2027; exemption

A. The sum of $50,000,000
is appropriated from the state general fund in fiscal year 2026-2027 to the
department of water resources to compensate irrigation grandfathered rights
holders for the permanent retirement or reduction of the holder's water duty.

B. On or before December
31, 2026, the director of the department of water resources shall begin
purchasing and retiring irrigation grandfathered rights, including conservation
agreements that result in irrigation grandfathered rights holders permanently
reducing their annual allotments.

C. The appropriation made
in subsection A of this section is exempt from the provisions of section
35-190, Arizona Revised Statutes, relating to lapsing of appropriations.