AZ SB1106

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

Requires agricultural land lessees to report annually by March 31 the well location, quantity of groundwater withdrawn in the previous calendar year, and specific uses of the groundwater.

Directs the Department of Land to establish the fee by rule and deposit collected fees into the appropriate beneficiary fund.

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

States legislative intent that the groundwater withdrawal fee should reflect the fair market value of withdrawn groundwater.