SB1381 • 2026

state lands; leases; groundwater use.

SB1381 - 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: Priya Sundareshan, Lela Alston, Flavio Bravo, Eva Diaz, Denise “Mitzi” Epstein, Brian Fernandez, Rosanna Gabaldón, Sally Ann Gonzales, Theresa Hatathlie, Lauren Kuby, Catherine Miranda, Analise Ortiz, Kiana Sears
Last action: 2026-01-27
Official status: Senate second read
Effective date: Not listed

Plain English Breakdown

The bill summary and digest provide limited details on specific actions, leaving some aspects like fee calculation methods unspecified.

State Lands; Groundwater Use Fees

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

What This Bill Does

The department must establish by rule and collect an annual groundwater withdrawal fee from lessees of agricultural state land located outside active management areas or irrigation non-expansion areas.
These lessees are required to submit an annual report on or before March 31st, detailing the location of their wells, the quantity of water withdrawn during the previous calendar year, and how the water was used.

Who It Names or Affects

People who lease agricultural lands from the state outside active management areas or irrigation non-expansion zones.

Terms To Know

Active Management Area: A specific area where groundwater use is closely regulated to protect water resources.
Irrigation Non-Expansion Area: An area where new irrigation projects are restricted to conserve water.

Limits and Unknowns

The bill does not specify the exact amount of the fee or how it will be calculated.
It is unclear what happens if lessees do not comply with reporting requirements.

Bill History

2026-01-27 Senate
Senate second read
2026-01-26 Senate
Senate Rules: None
2026-01-26 Senate
Senate Natural Resources: None
2026-01-26 Senate
Senate first read

Official Summary Text

SB1381 - state lands; leases; groundwater use.

Current Bill Text

Read the full stored bill text

SB1381 - 572R - I Ver

REFERENCE TITLE:
state lands; leases; groundwater use.

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1381

Introduced by

Senators
Sundareshan: Alston, Bravo, Diaz, Epstein, Fernandez, Gabald�n, Gonzales,
Hatathlie, Kuby, Miranda, Ortiz, Sears

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:

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.