Assigned to NREW FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR H.B. 2411
water supply; elimination; reduction; damages
(NOW: grazing operations; energy projects; compensation)
Purpose
Prohibits a business from contracting or subcontracting with a resident or a business in
Arizona to construct a project that reduces the size of a grazing lessee's grazing operation, unless
the business compensates the grazing lessee at fair market value for the outlined costs.
Background
The Bureau of Land Management (BLM) manages 115 million acres of livestock grazing
over 21,000 grazing allotments (BLM). Arizona has 841 BLM grazing allotments. Arizona grazing
leases may only exist for a period of 10 years but are renewable. The grazing lease may be
cancelled if the lessee does not use the land for the permitted purposes or fails to obtain prior
authorization from the BLM to suspend use of the land (A.A.C. R12-5-705). BLM grazing leases
and preferences may be cancelled in whole or part by an authorized BLM officer when: 1) the use
of the land has changed; 2) there is a change to the level of public lands; or 3) an agreement is
reached between the lessee and the BLM. Prior to cancellation, the BLM must provide a two-year
notification to the lessee except in cases of emergency (43 C.F.R. ยง 4110.4-2).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Prohibits a business from contracting or subcontracting with a resident or a business in Arizona
to construct a project that reduces the size of a grazing lessee's grazing operation, unless the
business compensates the grazing lessee at fair market value for the:
a) grazing lessee's loss of profits through the end of the lease term or for five years after the
size of the grazing lessee's grazing operation is reduced, whichever is less;
b) loss in value of the grazing lessee's grazing operation;
c) cost to relocate the grazing lessee's grazing operation; and
d) cost to mitigate losses due to the reduction of the grazing lessee's grazing operation.
2. Requires the grazing lessee, before a business compensates the lessee, to provide the business
with credible evidence that certifies the amount of the expenses.
3. Defines grazing lessee as a lessee of state lands or federal lands that are leased for grazing
purposes.
4. Becomes effective on the general effective date. FACT SHEET
H.B. 2411
Page 2
House Action
TI 2/17/23 DPA/SE 6-5-0-1
3
rd
Read 3/22/23 31-29-0
Prepared by Senate Research
March 28, 2023
RA/SF/slp