SB 1381 would require the Arizona Department of Land to establish by rule and collect an annual groundwater withdrawal fee from lessees of state trust land used for agriculture when the land is outside an active management area or an irrigation non-expansion area. The bill applies to groundwater used for irrigation on those leased lands and is aimed at capturing value from groundwater pumping on state land leases.
The bill also requires affected lessees to file an annual report by March 31 each year identifying the well location, the amount of groundwater withdrawn during the prior calendar year, and the specific uses of that water. The legislation states that the fee should be deposited into the fund of the appropriate beneficiary, and it includes definitions tied to existing groundwater law for active management areas, irrigation non-expansion areas, and irrigation use. A separate legislative intent section says the fee should reflect the fair market value of the groundwater withdrawn.
Impact
SB 1381 would add a new section to Arizona Revised Statutes Title 37 governing state land leases and would create a new fee-and-reporting regime for agricultural lessees pumping groundwater outside regulated groundwater management areas. It would affect state trust land lessees, the Arizona State Land Department, and the beneficiary funds that receive lease-related revenues, while indirectly intersecting with Arizona groundwater policy under Title 45.
Sentiment
Based on the bill text and the absence of committee testimony or recorded votes, the available record suggests the bill was introduced as a policy proposal without documented public debate in the provided materials. The measure appears revenue-focused and trust-land oriented, with an intent to align groundwater charges with fair market value, which suggests support for maximizing returns to the state land trust. No opposing or supporting arguments are reflected in the supplied transcripts or vote history.
Contention
The main likely point of contention is the new annual fee on agricultural lessees using groundwater on state trust land outside active management areas and irrigation non-expansion areas. Supporters would likely view the fee as a way to ensure the state land trust receives fair market value for groundwater use, while critics may see it as an added cost on agricultural operations and a new reporting burden. Because no committee discussion or votes are provided, specific objections or negotiated compromises are not documented in the record supplied here.