appropriation; irrigation grandfathered rights; retirement

HB 4108 allocates $50 million from Arizona’s general fund to compensate farmers and water users who permanently reduce or retire their existing irrigation water rights. The Department of Water Resources will use these funds to purchase "grandfathered" irrigation rights starting December 31, 2026, including agreements where rights holders permanently lower their annual water allotments. This directly affects holders of long-standing irrigation water rights by providing financial compensation for permanently reducing their water usage. The appropriation is exempt from standard budget lapse rules, ensuring the funds remain available for the 2026-2027 fiscal year.