Arizona 2025 2025 Regular Session

Arizona House Bill HB2203 Comm Sub / Analysis

Filed 03/04/2025

                    Assigned to NR 	FOR COMMITTEE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Seventh Legislature, First Regular Session 
 
FACT SHEET FOR H.B. 2203 
 
historical water use; subsequent AMA 
Purpose 
Retroactive to August 30, 2022, modifies the time frames, from 5 years to 10 years, prior 
to a designation of a subsequent active management area (AMA) or an AMA, that are used to 
determine the amount of groundwater a person has the right to withdraw for irrigation and non-
irrigation groundwater rights. 
Background 
Irrigation Grandfathered Rights 
In an initial AMA, only acres of land that were legally irrigated at any time from January 
1, 1975, through January 1, 1980, that are capable of being irrigated, that have not been retired 
from irrigation for a non-irrigation use and for which the irrigation grandfathered right (IFGR) has 
not been conveyed for a non-irrigation use may be irrigated with any groundwater, effluent, 
diffused water on the surface or surface water. In a subsequent AMA, only acres of land that were 
legally irrigated 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, that are capable of being irrigated, that have 
not been retired from irrigation for a non-irrigation use and for which the IGFR has not been 
conveyed for a non-irrigation use may be irrigated with groundwater, effluent, diffused water on 
the surface or surface water (A.R.S. § 45-452). 
Type 1 Non-Irrigation Grandfathered Rights 
In a subsequent AMA, a person who owns land that was legally entitled to be irrigated with 
groundwater and retires such land from irrigation before the date of the designation of the AMA 
in anticipation of a non-irrigation use has the right to withdraw from or receive for such land the 
lesser of three acre-feet of groundwater per acre per year or the average annual amount of 
groundwater that was used per acre during the five years preceding the time the land was retired 
on showing that: 1) the land has been held under the same ownership since it was retired; and 2) a 
development plan for the proposed non-irrigation use existed at the time the land was retired 
(A.R.S. § 45-463). 
There is no anticipated fiscal impact to the state General Fund associated with this 
legislation. 
Provisions 
1. Allows an irrigation user to irrigate within the proposed AMA only acres of land that were 
legally irrigated at any time during the 10 years, rather than 5 years, preceding the date of the 
notice of the initiation of designation procedures or the call for the election.  FACT SHEET 
S.B. 2203 
Page 2 
 
 
2. Stipulates that in a subsequent AMA, only acres of land that were legally irrigated at any time 
during the 10 years, rather than 5 years, preceding the date of the notice of the initiation 
procedures or call for the election, that are capable of being irrigated, that have not been retired 
from irrigation for a non-irrigation use and for which the irrigation grandfathered right has not 
been conveyed for a non-irrigation use, may be irrigated with groundwater, effluent, diffused 
water on the surface or surface water. 
Non-Irrigation Grandfathered Rights 
3. Grants, in a subsequent AMA, a person who owns land that was legally entitled to be irrigated 
with groundwater and retires such land from irrigation before the date of the designation of the 
AMA in anticipation of non-irrigation use, the right to withdraw from or receive for such land 
the average annual amount of groundwater that was used per acre during the 10 years, rather 
than 5 years, preceding the time the land was retired on meeting outlined conditions. 
4. Grants a person who holds a certificate of exemption and who owns land in an AMA from 
which groundwater was being legally withdrawn and used for a non-irrigation purpose as of 
the date of the designation of the AMA, the right to annually withdraw the maximum amount 
of water legally withdrawn from such land in any one of the 10 years, rather than 5 years, 
preceding the date of the designation of the AMA, if the amount is greater than the amount of 
groundwater established in proceedings on the application for the certificate of exemption. 
5. Grants a person who does not hold a certificate of exemption and who owns land in an AMA 
from which groundwater was being legally withdrawn and used for a non-irrigation purpose 
as of the date of the designation of the AMA, the right to annually withdraw the maximum 
amount of water legally withdrawn from such land in any one of the 10 years, rather than 5 
years, preceding the date of the designation of the AMA. 
Miscellaneous 
6. Modifies the definition of service area of an irrigation district. 
7. Makes technical and conforming changes. 
8. Becomes effective on the general effective date, retroactive to August 30, 2022. 
House Action 
NREW 1/28/25 DP 5-4-0-1 
3
rd
 Read 2/12/25  32-27-1 
Prepared by Senate Research 
February 28, 2025 
SB/slp