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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
water
supply; elimination; reduction; damages
(NOW: grazing operations; energy projects; compensation)
Purpose
Prohibits a business from contracting or subcontracting with a resident or a 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 the outlined costs.
Background
The Bureau of Land Management (BLM) manages 115 million acres of livestock grazing over 21,000 grazing allotments (BLM). Arizona has 841 BLM grazing allotments. Arizona grazing leases may only exist for a period of 10 years but are renewable. The grazing lease may be cancelled if the lessee does not use the land for the permitted purposes or fails to obtain prior authorization from the BLM to suspend use of the land (A.A.C. R12-5-705). BLM grazing leases and preferences may be cancelled in whole or part by an authorized BLM officer when: 1) the use of the land has changed; 2) there is a change to the level of public lands; or 3) an agreement is reached between the lessee and the BLM. Prior to cancellation, the BLM must provide a two-year notification to the lessee except in cases of emergency (43 C.F.R. § 4110.4-2).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a business from contracting or subcontracting with a resident or a 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 the:
a) grazing lessee's loss of profits through the end of the lease term or for five years after the size of the grazing lessee's grazing operation is reduced, whichever is less;
b) loss in value of the grazing lessee's grazing operation;
c) cost to relocate the grazing lessee's grazing operation; and
d) cost to mitigate losses due to the reduction of the grazing lessee's grazing operation.
2. Requires the grazing lessee, before a business compensates the lessee, to provide the business with credible evidence that certifies the amount of the expenses.
3. Defines grazing lessee as a lessee of state lands or federal lands that are leased for grazing purposes.
4. Becomes effective on the general effective date.
House Action
TI 2/17/23 DPA/SE 6-5-0-1
3rd Read 3/22/23 31-29-0
Prepared by Senate Research
March 28, 2023
RA/SF/slp