AZ HB2358

Establishes an annual groundwater withdrawal fee for lessees of state agricultural land located outside active management areas or irrigation non-expansion areas.

Requires lessees to report annually by March 31 the well location, quantity of groundwater withdrawn in the previous calendar year, and specific uses of that groundwater.

Directs collected fees to be deposited in the fund of the appropriate beneficiary.

Defines "active management area," "irrigation non-expansion area," and "irrigation use" by reference to existing Arizona water law statutes.

Expresses legislative intent that the groundwater withdrawal fee should reflect the fair market value of water withdrawn.