state lands; leases; groundwater use.

SB 1248 requires farmers and ranchers leasing Arizona state agricultural land outside designated water management areas to pay an annual fee for groundwater use and report well details, water volume, and usage by March 31 each year. The fees collected fund the appropriate beneficiary, with the legislature stating the fee should reflect groundwater’s fair market value. This applies specifically to state land users not within active management or irrigation non-expansion zones, as defined by existing law. The bill establishes reporting and fee mechanisms without changing groundwater rights or usage limits.