Yes three condors did recently die of lead poisoning. Here's the press release about the three condor deaths:
Condor DeathsLocation data suggests the two adults were most likely exposed in Utah,
not Arizona and the female may have fed the lead contaminated meat to
her chick. Utah will be implementing a free non-lead ammo program this
fall also, so we hope these lead mortalities will be behind us.
As for the rumor about AZ and UT being sued, there is a current lawsuit
from the Center for Biological Diversity (probably mentioned on their
website) against the BLM and USFWS about a land management plan on the
Arizona Strip (Units 12B and 13A/B). It's mostly about off road travel,
but it does mention requiring non-lead ammo in the suit also. AZGF
(although not named in the suit) will be participating. Here's the
press release:
-------------------------
Arizona Game and Fish Commission votes to enter lawsuit in support of
Arizona Strip management plans
PHOENIX - The Arizona Game and Fish Commission voted unanimously today
to file an amicus curiae brief in support of the Bureau of Land
Management (BLM) in a lawsuit filed by the Center for Biological
Diversity (CBD) regarding land management on the Arizona Strip.
In general, the commission is supportive of the plans and impact
statement as adopted by the BLM and chose to take this action to protect
the state's wildlife management interests and to ensure continued access
to public lands for all outdoor enthusiasts.
An amicus curiae brief allows a party not directly named in the
litigation to provide the court with pertinent information and arguments
that may not be offered by the other parties.
The CBD lawsuit, filed on Jan. 27, 2009, questions the legality of the
Resource Management Plans and Final Environmental Impact Statement
adopted by the BLM for the Arizona Strip, an area of land that extends
from north of the Grand Canyon to the southern border of Utah.
The Arizona Game and Fish Department was actively involved throughout
the preparation of the BLM's management plans and provided input into
which roads should be retained and which ones removed to protect
wildlife and its habitat, allow administrative access to needed
developments and ensure reasonable public access to wildlife.
The CBD amended its original complaint on March 25 to challenge the
legality of using lead firearms ammunition on the Arizona Strip.
The commission wants to minimize any potential effects the litigation
may have on its successful, voluntary non-lead ammunition program that
benefits endangered California condors living in the experimental,
non-essential population area.
Hunters in Arizona have been participating in a voluntary program to use
non-lead ammunition or remove carcasses of animals shot with lead
ammunition to limit the amount of lead from spent ammunition left in
carcasses in the field since 2003. Each year every hunter obtaining a
big game permit in areas used by condors gets a mailing explaining the
voluntary program and asking them to participate.
There has been a free non-lead ammunition program on the Kaibab Plateau
and most of the area covered by this suit since 2005, and last year 90
percent of surveyed hunters took voluntary lead reduction efforts during
their hunt. This unprecedented effort has resulted in lower condor blood
lead levels, less treatment of birds and no lead-related mortalities in
the past two years.
The Arizona Strip provides important recreational opportunities,
including hunting, fishing, wildlife watching, hiking and other outdoor
pursuits.
--------------------
The NRA has also decided to participate in the lawsuit. There was a
press release about it sometime ago - it is probably mentioned on their
website.
Thank you for asking for the facts, and please let me know if you have
any other questions.
BLM/USFS land use plans have absolutely nothing to do with hunting regs. 
