AZ HB2842

Repeals and replaces Arizona Revised Statutes section 45-544 to establish a groundwater correlative rights system in basin-fill aquifer areas outside active management areas.

Allows groundwater to be transported freely within the same basin or subbasin without permits, with transfers deemed reasonable and beneficial use, and prohibits damage claims from other groundwater users for permitted transfers.

Requires the director to determine correlative rights within 90 days by calculating each tax parcel's proportional share of total groundwater available (to 1,200 feet depth) and annual natural recharge based on surface area and hydrological data.

Establishes personal groundwater accounts for each landowner with a lump-sum volume equal to their correlative rights and annual credits for natural recharge; account holders cannot exceed their account balance and may transfer credits within the same basin or subbasin.

Directs the director to conduct audits and hydrological updates every 10 years to reassess groundwater availability and recharge rates, and reassign account balances and annual credits accordingly.