The bill SB1243 amends the Arizona Revised Statutes to establish a water marketplace for the sale, lease, or conveyance of grandfathered groundwater rights within the Phoenix, Tucson, or Pinal active management areas (AMAs). It requires individuals engaging in such transactions to notify the Arizona Department of Water Resources (ADWR) with specific details, and mandates that buyers or lessees receive 65% of the groundwater volume forgone by the seller or lessor. The bill also requires ADWR to host an online water exchange for public access to transaction information and clarifies the duration of physical availability of groundwater for the purpose of obtaining a certificate of assured water supply.

Key changes introduced by the bill include the allocation of 65% of the groundwater volume to the buyer or lessee, with the remaining 35% to remain unpumped, and the exemption of the conveyed groundwater from replenishment obligations. The bill sets a repeal date for the new article 13 on December 31, 2029, and ensures the validity of transactions made before this date. It also assigns the ADWR director the responsibility to monitor aquifer health and report on the impact of groundwater transactions.

Statutes affected:
Introduced Version: 45-558, 3-201
Senate Engrossed Version: 45-558, 3-201
House Engrossed Version: 45-558, 3-201