AZ SB1243

Allows persons with grandfathered groundwater rights in the Tucson Active Management Area to sell, lease, or convey their right to pump groundwater or the groundwater itself to other persons within the same active management area for any use.

Requires sellers and lessors to notify the Department of Water Resources with transaction details including buyer/lessee name, transaction type, duration (if lease), anticipated withdrawal location, volume of groundwater, and price per acre-foot.

Establishes that buyers and lessees receive 65% of the total groundwater volume forgone by the seller or lessor, while 35% of the original grandfathered right cannot be pumped or further conveyed by the seller.

Mandates the Department of Water Resources establish and maintain a publicly accessible online water exchange displaying all transaction information on its website.

Sunsets the groundwater marketplace provisions on December 31, 2029, with validity of sales and leases executed before that date continuing afterward, subject to specified conditions and restrictions.