ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	House: TI DPA/SE 6-5-0-1

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HB 2411: water supply; elimination; reduction; damages

NOW: grazing operations; energy projects; compensation

Sponsor: Representative Cook, LD 7

House Engrossed

Overview

Prohibits a business from contracting or subcontracting to build a project that reduces the size of a grazing lessee's operation unless the lessee is compensated for certain costs.

History

Someone can lease allotments of state trust lands or Bureau of Land Management (BLM) lands or obtain permits on national forest lands for grazing livestock. The terms and conditions of these leases vary, particularly when the lease is changed to accommodate additional activities that are planned for the same area. Specifically:

1) Although state trust lands may be leased for grazing livestock, the State of Arizona reserves the right to grant other forms of leases or permits for these lands or to remove natural products from these lands (A.A.C. R12-5-705).

2) When there is a decrease in public lands available for livestock grazing in an allotment, the BLM may cancel or modify the grazing leases or cancel the grazing preferences in whole or in part. Additionally, when public lands leased for livestock grazing are used for a purpose that precludes this activity, the BLM will give the permittee at least two years' notice before the grazing lease and grazing preferences are cancelled (43 C.F.R. § 4110.4-2).

3) The National Forest Service may modify a grazing permit's terms and conditions to conform to changes in development on the land or in response to other regulatory changes (36 C.F.R. § 222.4(a)(7)). The National Forest Service may also cancel permits where lands have been grazed under the permit for another public purpose. However, the permittee must be notified at least two years prior to the cancellation (36 C.F.R. § 222.4(a)(1)). Further, when a grazing permit is canceled in whole or in part, the United States may issue reasonable compensation determined by National Forest Service to the affected permittee based on the adjusted value of their interest in any authorized permanent improvements that were placed or constructed by them on the lands covered by the permit (36 C.F.R. § 222.6(a)).

Provisions

1. Prohibits a business from contracting or subcontracting with a resident or business in Arizona to construct a project that reduces the size of a grazing lessee's grazing operation unless the business compensates the grazing lessee at fair market value for:

a) loss of profits through the end of the lease term or five years after the grazing operation's size is reduced, whichever is less;

b) loss in value of the grazing operation;

c) cost to relocate the grazing operation; or

d) cost to mitigate losses due to the reduction of the grazing operation. (Sec. 1)

2. Requires a grazing lessee to provide credible evidence that certifies the amount of their expenses before being compensated. (Sec. 1)

3. Defines grazing lessee. (Sec. 1)

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                  HB 2411

Initials PAB/JB      Page 0 House Engrossed

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