AZ SB1248

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Requires lessees to report by March 31 each year: the well location, quantity of groundwater withdrawn in the previous calendar year, and specific uses of the groundwater.

Directs the Department of State Lands to establish the fee amount 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 Arizona Revised Statutes section 45-402.

States legislative intent that the groundwater withdrawal fee should reflect the fair market value of groundwater withdrawn.