Official Summary Text
SB1197 - 572R - Senate Fact Sheet
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ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
FACT SHEET FOR
S.B. 1197
subsequent AMAs; groundwater
portability
Purpose
Allows an owner
of an irrigation grandfathered right (IGFR), in a subsequent active management
area (AMA), to use, sell, transfer or lease the IGFR and the water duty that
was associated with those acres. Allows a person that receives a sold, leased
or transferred associated water duty to use the associated water duty anywhere
in the subsequent AMA for irrigation use and to further convey the associated
water duty.
Background
In an AMA, a
person who was legally withdrawing and using groundwater as of the date of the
designation of the AMA or who owns land legally entitled to be irrigated with
groundwater has the right to withdraw or receive and use groundwater as
determined by the Director of the Arizona Department of Water Resources (ADWR).
There are three categories of grandfathered rights as follows: 1)
non-irrigation grandfathered rights associated with retired irrigated land;
2) non-irrigation grandfathered rights not associated with retired irrigated
land; and 3) IGFRs. In an AMA, a person who owns land which was legally
irrigated in whole or in part with groundwater at any time during the five
years preceding the date of the notice of the initiation of designation
procedures or the call for the election for a subsequent AMA, which is capable
of being irrigated and which has not been retired from irrigation for a
non-irrigation use, has the right to use groundwater for the irrigation of such
land. The owner of an IGFR may convey the right only with the land to which the
right is appurtenant (A.R.S. ��
45-462
;
45-465
;
and
45-472
).
The Director of
ADWR may designate an area which is not included within an initial AMA as a
subsequent AMA if the Director of ADWR determines that: 1) active management
practices are necessary to preserve the existing supply of groundwater for
future needs; 2) land subsidence or fissuring is endangering property or
potential groundwater storage capacity; or 3) use of groundwater is resulting
in actual or threatened water quality degradation. A groundwater basin that is
not included within an initial AMA may be designated an AMA on petition by 10
percent of the registered voters residing within the boundaries of the proposed
AMA which triggers a subsequent election held pursuant to the general election
laws of Arizona (A.R.S. ��
45-412
and
45-415
).
There is no
anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1.
Allows an owner of an IGFR, in a subsequent AMA, to use, sell, transfer
or lease the IGFR and the water duty that was associated with those acres.
2.
Allows the owner of an IGFR to choose not to irrigate a set portion of
lands attached to the IGFR.
3.
Allows the owner to sell, transfer or lease the associated water duty of
the acres that are not irrigated to another irrigator in the subsequent AMA.
4.
Allows the original owner of the associated water duty to also retain
the associated water duty and use the full volume of the associated water duty
that is attached to the acres that the owner does not irrigate anywhere on the
farm unit.
5.
Allows a person that receives a sold, leased or transferred associated
water duty to use the associated water duty anywhere in the subsequent AMA for
irrigation use and further convey the associated water duty.
6.
Requires an owner of an IGFR that proposes to use, sell, transfer or
lease the IGFR and the associated water duty to notify the Director of ADWR, on
a form prescribed and furnished by the Director of ADWR.
7.
Requires the prescribed form to include the acres that are not subject
to irrigation.
8.
Requires the owner of an IGFR to note what acres are subject to
irrigation with the associated water duty, if the owner retains the associated
water duty for irrigation of the farm unit.
9.
Requires the prescribed form to note the type of conveyance and volume
of groundwater that the recipient of the conveyance may use, if the owner or
the holder conveys the associated water duty to another person.
10.
Requires
the prescribed form to note the terms and duration of the lease.
11.
Requires
all forms to note the intended acres where an owner or holder will irrigate
with the associated water duty, if the conveyance is for a lease.
12.
Requires
the Director of ADWR to adopt rules, including for the implementation of
flexibility accounts or similar accounting methods, to implement the outlined
requirements.
13.
Becomes
effective on the general effective date.
Prepared by Senate Research
January 22, 2026
SB/NRG/hk
Current Bill Text
Read the full stored bill text
SB1197 - 572R - I Ver
REFERENCE TITLE:
subsequent AMAs; groundwater portability
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SB 1197
Introduced by
Senator
Dunn
AN
ACT
amending title 45, chapter 2, article 5,
Arizona Revised Statutes, by adding section 45-484; RELATING to
irrigation grandfathered rights.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 45, chapter 2, article 5,
Arizona Revised Statutes, is amended by adding section 45-484, to read:
START_STATUTE
45-484.
Irrigation grandfathered rights; associated water duty;
subsequent active management areas; portability; rules
A. Notwithstanding any other law, in
a subsequent active management area, an owner of an irrigation grandfathered
right may use, sell, transfer or lease the irrigation grandfathered right and
the water duty that was ASSOCIATED with those acres as provided in this
section.
B. The owner of an irrigation
grandfathered right may choose not to irrigate a set portion of lands attached
to the irrigation grandfathered right. The owner may sell, transfer
or lease the associated water duty of the acres that are not irrigated to
another irrigator in the subsequent active management area. The
original owner of the associated water duty may also retain the associated
water duty and use the full volume of the associated water duty that is
attached to the acres that the owner does not irrigate anywhere on the farm
unit.
C. A person that receives a sold,
leased or transferred associated water duty may use the associated water duty
anywhere in the subsequent active management area for irrigation
use. The person may further convey the associated water duty.
D. An owner of an irrigation
grandfathered right that proposes to use, sell, transfer or lease the
irrigation grandfathered right and the ASSOCIATED water duty shall notify the
director, on a form prescribed and furnished by the director. The
form shall include the acres that are not subject to irrigation. If
the owner retains the associated water duty for irrigation of the farm unit,
the owner shall note what acres are subject to irrigation with the associated
water duty. If the owner or the holder conveys the associated water
duty to another person, the form shall note the type of conveyance and volume
of groundwater that the recipient of the conveyance may use. If the
conveyance is for a lease, the form shall note the terms and duration of the
lease. All forms shall note the intended acres where an owner or
holder will irrigate with the associated water duty.
E. The director shall adopt rules,
including for the implementation of flexibility accounts or similar accounting
methods, to implement this section.
END_STATUTE