HB 4108
appropriation; irrigation grandfathered rights; retirement
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- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill allocates $50 million from the state general fund to the Department of Water Resources. The funds will be used to compensate individuals and entities who hold ‘grandfathered’ irrigation water rights and choose to permanently retire or reduce their water usage. The Department of Water Resources is required to begin purchasing and retiring these rights by December 31, 2026, and this appropriation is not subject to standard lapse provisions.
Key provisions
- Allocates $50,000,000 to the Department of Water Resources.
- Provides compensation for retirement of irrigation grandfathered rights.
- Requires the Department of Water Resources to begin purchasing and retiring rights.
- Sets a deadline of December 31, 2026, for initiating retirement efforts.
- Exempts the appropriation from standard lapse provisions.
Who is affected
- Irrigation Grandfathered Rights Holders
- Department of Water Resources
- State of Arizona
Notable changes
- Establishes a dedicated funding source for irrigation rights retirement.
- Creates a specific timeline for the Department of Water Resources to begin the retirement process.
Fiscal impact
The bill appropriates $50,000,000 from the state general fund for irrigation rights retirement.
Sponsors
Official sponsors from legislative records.
Primary sponsor
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| REFERENCE TITLE: appropriation; irrigation grandfathered rights; retirement |
| State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026 |
| HB 4108 |
| Introduced by Representative Mathis |
AN ACT
appropriating monies to the DEPARTMENT of water resources.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Appropriation; department of water resources; retirement of irrigation grandfathered rights; fiscal year 2026-2027; exemption
A. The sum of $50,000,000 is appropriated from the state general fund in fiscal year 2026-2027 to the department of water resources to compensate irrigation grandfathered rights holders for the permanent retirement or reduction of the holder's water duty.
B. On or before December 31, 2026, the director of the department of water resources shall begin purchasing and retiring irrigation grandfathered rights, including conservation agreements that result in irrigation grandfathered rights holders permanently reducing their annual allotments.
C. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.