REFERENCE TITLE: water withdrawal fee; state lands

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SCR 1039

Introduced by

Senator Sundareshan

A CONCURRENT RESOLUTION

enacting and ordering the submission to the people of a measure relating to water.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it resolved by the Senate of the State of Arizona, the House of Representatives concurring:

1. Under the power of the referendum, as vested in the Legislature, the following measure, relating to water, is enacted to become valid as a law if approved by the voters and on proclamation of the Governor:

an act

amending title 45, chapter 1, article 1, Arizona Revised Statutes, by adding section 45-120; amending section 45-2112, Arizona Revised Statutes; relating to water.

Be it enacted by the legislature of the state of Arizona:

Section 1. Title 45, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 45-120, to read:

START_STATUTE45-120. Water withdrawal fee; state land; rules; definition

A. The director shall:

1. Establish by rule and collect a water withdrawal fee for any groundwater that is withdrawn from state lands. Rules adopted pursuant to this section shall:

(a) determine the fair market value of water withdrawn on state land.

(b) define large-volume water use.

(c) include PUBLIC reporting, monitoring and other compliance requirements.

2. Base the water withdrawal fee on the fair market value of water withdrawn from state lands. To ensure equitable contribution to the water management of this state and conservation needs, the director may assess a tiered fee structure and a higher groundwater withdrawal fee on water that a large-volume water user withdraws.

3. Retain not more than ten percent of monies collected pursuant to this section to administer the water WITHDRAWAL fee.

4. Deposit, pursuant to sections 35-146 and 35-147, ninety PERCENT of monies collected pursuant to this section evenly among the Arizona water protection fund established by section 45-2111 and the water conservation grant fund established by section 49-1331.

5. Every five years, reassess the fair market value of water withdrawn on state land and update the water WITHDRAWAL fee.

B. For the purposes of this section, "state lands" means any land that is owned or held in trust, or otherwise, by this state, including leased school or university land. END_STATUTE

Sec. 2. Section 45-2112, Arizona Revised Statutes, is amended to read:

START_STATUTE45-2112. Funding sources

A. The fund shall consist of monies collected pursuant to section sections 45-120 and 48-3715.05.

B. In addition to the amounts prescribed in subsection A of this section the fund may accept any gifts, grants or donations. END_STATUTE

Sec. 3. Purpose

The purpose of this act is as follows:

1. To authorize the department of water resources to establish and administer a water withdrawal fee on all water that is withdrawn from land owned or held in trust, or otherwise, by this state, including leased school or university land.

2. Dedicate monies collected pursuant to this act to statewide water conservation.

2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article IV, part 1, section 1, Constitution of Arizona.