The proposed bill HB2201 introduces significant changes to Arizona's water management laws, particularly focusing on groundwater rights and conservation. It establishes a "physical availability exemption credit" for landowners in Active Management Areas (AMAs) who relinquish their irrigation rights, allowing them to withdraw groundwater without proving physical availability under certain conditions. The bill also sets forth criteria for transporting groundwater from the Harquahala Irrigation Non-Expansion Area (INA) and prohibits the use of potable water on nonfunctional turf in new developments within AMAs from January 1, 2026. Additionally, it outlines the process for cities and towns to be designated as having an assured water supply and modifies the responsibilities of municipal providers regarding groundwater delivery and replenishment obligations.

The bill also amends land division regulations, introducing new disclosure requirements for building permit applicants and clarifying that certain familial and contractual relationships do not constitute unlawful land division. It adjusts civil penalties for violations related to subdivided lands and repeals a section of the statutes amended by a 2023 law. Furthermore, the bill requires the Department of Water Resources to amend rules for incorporating extinguishment credits and groundwater allowance with member lands in a designation of assured water supply by January 1, 2025. As an emergency measure, the bill would become effective immediately upon the Governor's signature.

Statutes affected:
Introduced Version: 45-554
House Engrossed Version: 45-554
Senate Engrossed Version: 45-554