AZ HB2674

Allows landowners to permanently retire flood-damaged irrigated acres and substitute the same number of acres elsewhere in their contiguous farm unit, provided the flood damage makes irrigation restoration economically infeasible.

Permits landowners to retire irrigated acres that are impeded by limiting conditions (such as irregular shape or poor soil quality) and substitute the same number of acres if the substitution substantially reduces the impediment and facilitates efficient irrigation practices.

Substitute acres must be within the same farm unit and, if the retired acres are in an irrigation district, the substitute acres must also be in that same district.

Substitution does not affect existing water rights except for the place of use; water diverted after substitution cannot exceed the vested water rights that existed at the time of substitution.

Defines "farm unit" as one or more contiguous or nearby farms served by the same water source through a common distribution system, and "floodwaters" as temporary overflow on normally dry lands.