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HB 2573

Repeals provisions authorizing the establishment of charter schools in Boone County

2026 Regular Session Introduced by Gregg Bush and 1 co-sponsor

Expands non-irrigation uses to include hydroponic cultivation and wine grapes, allowing groundwater under irrigation grandfathered rights, with separate metering and limits.

Referred: Emerging Issues(H)
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Bill Summary · HB 2573

Summary — HB 2573 (57th Legislature, 1st Reg. Sess., 2025) — Arizona

Status: Introduced February 7, 2025; Referred to Rules Committee
Primary sponsor: Rep. Gail Griffin

Note: the legislative packet also contains unrelated text from an Illinois HB2573 (a minor technical edit to the State Finance Act). That Illinois material is not part of the Arizona measure summarized below.

Purpose / intent

Amend Arizona Revised Statutes §45-465.04 (Groundwater Code) to (1) clarify that certain uses of groundwater are treated as non‑irrigation uses even where an irrigation grandfathered right exists, and (2) expressly add plants grown hydroponically and wine grapes to the non‑irrigation uses allowed under that statute. The change also makes a technical cross‑reference adjustment.

Key provisions (what the bill changes)

  • Expands the definition of non‑irrigation uses under §45-465.04(A) to include:
    • Plants grown using hydroponics, and
    • Wine grapes, in addition to “plants in containers on or above the surface.”
  • Reaffirms that these uses are non‑irrigation uses in an active management area (and includes a “notwithstanding” cross‑reference to §45‑402, paragraph 18).
  • Allows holders of a certificate of an irrigation grandfathered right in an initial active management area to withdraw groundwater under that right to:
    • Water containerized plants on certificated acres,
    • Water plants grown hydroponically on or above the surface of certificated acres, and
    • Water wine grapes grown on the certificated acres, provided the plants are grown for sale, human consumption, or as feed (per §3‑1201 definitions).
  • Requires separate measurement (with a director‑approved device under §45‑604) of groundwater used for container/hydroponic/wine‑grape watering versus other irrigation uses on certificated acres.
  • Maintains a total use limit: water used for these non‑irrigation purposes plus any irrigation use on the certificated acres may not exceed the irrigation water duty for the farm (except as provided in §45‑563.02).
  • Prohibits the director from registering credits to a farm’s flexibility account (§45‑467) in any year the certificate holder uses groundwater for the allowed container/hydroponic/wine‑grape uses.
  • Allows an owner to request that the director split a certificate of irrigation grandfathered right into two certificates — one covering acres where water is used for the listed non‑irrigation purposes and one covering acres used for irrigation. The split cannot create a certificate with fewer than two certificated acres. Each resulting certificate’s acres are treated as a separate farm for purposes of flexibility‑account rules.

Who is affected

  • Holders of irrigation grandfathered rights in initial active management areas (farms with certificated acres).
  • Growers/operations using containerized cultivation, hydroponic systems on certificated acres, and wine grape growers operating on certificated acres.
  • Arizona Department of Water Resources (ADWR) — measurement, certificate administration, and flexibility account registration.
  • Potentially water‑management and conservation programs that track irrigation duty and flexibility credits.

Potential impacts / considerations

  • Provides explicit regulatory authority for certain non‑traditional cultivation methods (hydroponics, wine grapes) to be supplied by groundwater under existing grandfathered irrigation rights, potentially increasing economic options for certificate holders.
  • Imposes metering and aggregate‑use limits to keep total use within the farm’s irrigation water duty, and prevents flexibility‑account crediting in years these non‑irrigation uses are employed — which could reduce incentives to convert acreage for water‑saving credit purposes.
  • ADWR will need to approve measuring devices and administer separations of certificates where requested.
  • The bill is styled as a technical correction/clarification but has substantive effects by adding hydroponics and wine grapes to the non‑irrigation category.

Procedural note

The version provided includes both the originally introduced text and a House‑engrossed technical correction version that adds hydroponics and wine grapes. Current status (per the header): Referred to Rules Committee (introduced 2/7/2025).

Compiled from official sources — confirm details with the bill’s official record.

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