The proposed bill would update current statutes by establishing the Agriculture and Water Innovation Fund, which would be continuously appropriated and exempt from lapsing, allowing the Arizona Department of Agriculture (AZDA) to administer grants for improving water use efficiency through innovative agricultural technologies. It would introduce definitions for key terms such as "farm unit" and "innovative technology," and set specific conditions for grant eligibility, including limits on grant amounts and requirements for implementing technology that enhances soil health. The bill also mandates annual reporting by the AZDA on the fund's activities and expenditures to ensure transparency.

In addition, the bill would extend the moratorium on groundwater withdrawal fees in the Pinal Active Management Area (AMA) and modify existing fees related to agricultural practices. It would repeal the Pilot Program and the Agriculture and Water Innovation Fund by January 1, 2029, indicating a temporary framework for these initiatives. The bill also includes amendments to the fee structure for water banking and specifies that grant recipients cannot receive state tax credits for technology purchased with grant funds, thereby enhancing accountability in the use of public resources.

Statutes affected:
Introduced Version: 3-109.04, 45-611, 45-615.01, 35-190, 45-411.01, 48-4831
House Engrossed Version: 3-109.04, 37-132, 45-611, 45-615.01, 35-190, 37-202, 41-1092.08, 38-611, 37-107, 9-461.06, 11-805, 37-312, 45-411.01, 48-4831