AZ HB2123

Adds a new exemption (subsection E) prohibiting the state or political subdivisions from requiring water measuring devices for wells in groundwater basins or subbasins that are subject to general adjudication of water rights with unadjudicated water rights, located outside initial active management areas, and outside areas where groundwater can be transported.

Specifies that the new exemption does not impede valid contracts, settlement agreements, or court authority and remedies in general stream adjudication proceedings.

Maintains existing exemptions from water measuring device requirements for small groundwater withdrawals (10 acre-feet or fewer per year) and certain irrigation uses on small parcels.

Clarifies terminology by replacing "non-exempt" with "nonexempt" throughout the statute for consistency.

Renumbers existing subsections and rules accordingly due to addition of new subsections E and F.