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HB2150 • 2026

continuation; state land department

HB2150 - continuation; state land department

Energy Housing Land
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Gail Griffin
Last action
2026-03-10
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The bill text is incomplete, which may affect full understanding of certain sections.

Continuation of State Land Department

HB2150 extends the Arizona State Land Department's operations until July 1, 2030 and sets new rules for leasing state trust lands.

What This Bill Does

  • Extends the Arizona State Land Department (ASLD) until July 1, 2030.
  • Allows the ASLD Commissioner to renew leases without public auction if certain conditions are met.
  • Requires royalty rates for renewed mining or mineral materials leases to be adjusted based on market indices.
  • Restricts the use of lease holdover provisions and sets rules for automatic lease renewals.

Who It Names or Affects

  • The Arizona State Land Department
  • Lease holders of state trust lands

Terms To Know

fiduciary duties
Legal responsibilities to act in the best interest of another party, such as the state land trust.
holdover provision
A clause that allows a lease to continue temporarily after its expiration date.

Limits and Unknowns

  • The bill does not specify any fiscal impact on the state General Fund.
  • Some sections of the bill are incomplete or truncated, which may affect full understanding.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: Fifty-seventh Legislature Griffin Second Regular Session H.B.

  • Fifty-seventh Legislature Griffin Second Regular Session H.B.
  • 2150 GRIFFIN FLOOR AMENDMENT #1 HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
  • 2150 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Repeal 2 Section 41-3026.05, Arizona Revised Statutes, is repealed.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Natural Resources, Energy & Water Second Regular Session H.B.

  • Fifty-seventh Legislature Natural Resources, Energy & Water Second Regular Session H.B.
  • 2150 PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
  • 2150 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 <<Section 1.
  • Section 37-132, Arizona Revised Statutes, is amended 2 to read: 3 37-132.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Griffin Second Regular Session H.B.

  • Fifty-seventh Legislature Griffin Second Regular Session H.B.
  • 2150 GRIFFIN FLOOR AMENDMENT #2 HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
  • 2150 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 <<Section 1.
  • Section 37-233, Arizona Revised Statutes, is amended 2 to read: 3 37-233.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: CORBIN W.

  • CORBIN W.
  • 3/2/2026 (602) 926-3848 ARIZONA HOUSE OF REPRESENTATIVES FLOOR AMENDMENT EXPLANATION 57th Legislature, 2nd Regular Session Majority Research Staff HB 2150: continuation; state land department KOLODIN FLOOR AMENDMENT 1.
  • Removes the specification that an adjusted royalty rate, adopted by the State Land Commissioner for renewed mineral and mineral material leases, be adopted by rule.
  • 2.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Griffin Second Regular Session H.B.

  • Fifty-seventh Legislature Griffin Second Regular Session H.B.
  • 2150 GRIFFIN SUBSTITUTE FLOOR AMENDMENT HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
  • 2150 I move the following SUBSTITUTE amendment to the NATURAL RESOURCES, ENERGY & WATER Committee Amendment to HOUSE BILL 2150 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 <<Section 1.
  • Title 27, chapter 2, article 3, Arizona Revised 2 Statutes, is amended by adding section 27-240, to read: 3 27-240.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

  1. 2026-03-10 Senate

    Senate second read

  2. 2026-03-09 Senate

    Senate Rules: None

  3. 2026-03-09 Senate

    Senate Natural Resources: DP

  4. 2026-03-09 Senate

    Senate first read

  5. 2026-03-04 Senate

    Transmitted to Senate

  6. 2026-03-03 House

    House third read passed

  7. 2026-03-03 House

    House amended committee of the whole

  8. 2026-03-03 House

    House passed

  9. 2026-03-02 House

    House passed

  10. 2026-02-26 House

    House third read failed

  11. 2026-02-25 House

    House committee of the whole

  12. 2026-02-17 House

    House minority caucus

  13. 2026-02-17 House

    House majority caucus

  14. 2026-01-14 House

    House second read

  15. 2026-01-13 House

    House Rules: C&P

  16. 2026-01-13 House

    House Natural Resources, Energy & Water: DPA

  17. 2026-01-13 House

    House first read

Official Summary Text

HB2150 - 572R - Senate Fact Sheet

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COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
H.B. 2150

continuation;
state land department

Purpose

Continues, retroactive to July 1, 2026, the Arizona State Land Department
(ASLD) for four years until July 1, 2030, and prescribes requirements relating
to the leasing of state trust lands, duties of the ASLD and ASLD Commissioner
(Commissioner), the implementation of the Auditor General's July 2025 performance
audit and sunset review recommendations, public hearings, conceptual land use
plans and five-year disposition plans.

Background

The ASLD must administer all laws relating to lands owned by, belonging
to and under control of Arizona and have charge and control of all lands owned
by Arizona, and timber, stone, gravel and other products of such lands (
A.R.S.
� 37-102
). The ASLD Commissioner (Commissioner) must: 1) exercise and
perform all powers and duties vested in or imposed on the ASLD and prescribe
such rules as are necessary to discharge those duties; 2) make long-range plans
for the future use of state lands in cooperation with other state agencies, local
planning authorities and political subdivisions; 3) have the authority to lease
for commercial purposes and sell all land owned or held in trust by Arizona;
and 4) fulfill all other statutorily prescribed duties (
A.R.S.
� 37-132
). The ASLD is responsible for adopting rules to prescribe the
procedure, method and means for the sale of state lands. An ASLD representative
must attend at the time and place fixed for the sale and proceed by first
announcing information relevant to the sale sufficient to begin the bidding
process, then calling for bids and finally, selling the lands for the highest
and best bid (
A.R.S.
� 37-238
).

The Commissioner must create conceptual land use plans for all urban
state trust land in Arizona and other state trust lands the Commissioner
considers to be appropriate and; 1) prioritize the creation of conceptual plans
to the extent possible to correlate with the rate of population growth in urban
areas and coincide with the production of municipal and county general plans;

2) consult with the city, town or county in which the land is located; and 3)
submit each plan and revision of the plan to the Urban Land Planning Oversight
Committee for Review. The conceptual plan is considered to be a state general
plan on approval by the Commissioner.

The Commissioner is responsible for creating five-year disposition plans
for all state trust land in Arizona, based at a minimum on market demand and
anticipated transportation and infrastructure availability. The Commissioner
must: 1) review and update each plan each year as may be necessary; 2) consult
with the city, town or county in which the land is located and with any
regional planning organization; and 3) submit each plan and revision to the
Urban Land Planning Oversight Committee to ensure conformity with the outlined
conceptual land use plan (
A.R.S.
� 37-331.03
).

The Senate Natural Resources Committee of Reference (COR) held a public
meeting on Tuesday, January 20, 2026, to review the Auditor General's
Performance Audit and Sunset Review Report, consider the ASLD's responses to
the statutorily prescribed sunset factors and receive public testimony. The COR
recommended that the ASLD be continued for four years, until July 1, 2030, with
prescribed modifications and that the ASLD return to the Legislature with a report
on the additional recommendations within two years. The ASLD terminates on July
1, 2026, unless continued by the Legislature (
A.R.S.
� 41-3026.05
).

There is no anticipated fiscal impact to the state General Fund
associated with this legislation.

Provisions

ASLD

1.

Continues,
retroactive to July 1, 2026, the ASLD for four years until July 1, 2030.

2.

Allows
the ASLD Commissioner to renew an existing mineral or mineral materials lease
without public auction if the ASLD Commissioner determines:

a)

the lessee is in substantial compliance with the terms of the lease;

b)

the renewal is in the best interest of the state land trust;

c)

renewal is supported by a written finding by the ASLD Commissioner that
the renewal is consistent with the ASLD Commissioner's fiduciary duties; and

d)

the
renewal is for a term that is allowed by the laws of Arizona.

3.

Requires an existing mining or mineral materials lease that the ASLD
Commissioner renews to provide for a royalty rate that is adjusted pursuant to
a market-based indexing mechanism that the ASLD Commissioner adopts.

4.

Allows
the indexing mechanism to include:

a)

producer price indices;

b)

regional or statewide construction aggregate price; or

c)

other
objective indicators that are recognized by the industry.

5.

Requires
the ASLD, to the extent possible, to:

a)

�restrict the use of a lease or permit holdover provision to not more
than 90 days;

b)

for a lease renewal and special land use permit, approve any
improvements that are customary in the lessee's or permittee's course of
business or provide notice of expiration at least six months before the
expiration of a lease renewal or special land use permit; and

c)

restrict
the use of special land use permits only to temporary land uses that do not
have a dedicated land use lease or permit.

6.

Stipulates that, if a lease is in holdover status and the holdover
tenant submits a lease renewal application that the ASLD does not take action
on within the 90 days after the lease expires, the lease is automatically
renewed for 3 years and 90 days after the date of natural expiration.

7.

Deems that an outlined lease that is automatically renewed due to the
ASLD not taking action within 90 days, is in the best interest of the state
trust.

8.

Requires the ASLD, if it terminates a holdover tenant's lease, to
provide immediate reimbursement for the fair market value, as determined by a
third-party vendor, of any reasonable and customary improvements that the
holdover tenant made to the state land.

9.

Stipulates that, if a tenant submits an application for permission to
construct or make an improvement to state lands and the ASLD does not take
action on the application within 90 days after receipt, the application is
automatically approved.

10.

Deems
that an outlined improvement that is automatically approved due to the ASLD not
taking action within 90 days is in the best interest of the state.

11.

Requires
the ASLD, on conclusion of a lease renewal or special land use permit, to
reimburse the lessee or permittee for the lessee's or permittee's improvements
on state lands with monies from the state land trust.

12.

Requires the outlined notice
of expiration for the expiration of a lease renewal or special land use permit
to include:

a)

any proposed rental increase or proposed change to the terms and
conditions of the lease renewal or special land use permit;

b)

the intent of the ASLD to renew or terminate the lease or special land
use permit; and

c)

the
justification for the ASLD Commissioners decision to renew or terminate the
lease or permit.

13.

Requires
the ASLD, if the ASLD decides to not renew a lease or issue a special land use
permit to include a statement that identifies the ASLD's determination of the
highest and the best use of the state lands, subject to the lease or special
land use permit.

14.

Requires
the outlined notice, if the state lands will not immediately generate revenue
on the expiration of the lease or special land use permit, to include a
statement identifying how long the ASLD estimates that the state lands will
generate monies for the state land trust and why the ASLD believes foregoing
the monies for the estimated time frame is in the best interest of the state
lands trust.

15.

Requires
the ASLD Commissioner to provide a quarterly update of the activities of the
ASLD and the actions that the ASLD is taking to improve the internal and
administrative workings of the ASLD to the chairperson of the House of
Representatives Natural Resources, Energy and Water Committee of Reference
(COR), or its successor COR and the Senate Natural Resources COR, or its
successor COR.

16.

Requires
rules adopted relating to the sale of state lands by the ASLD Commissioner's
own initiative to establish a procedure and criteria that the ASLD Commissioner
must use for determining whether to initiate the sale of state lands.

17.

Requires
the ASLD Commissioner to issue a written order approving each conceptual land
use plan and conceptual land use plan revision for all urban state trust land
in Arizona and other state trust lands the ASLD Commissioner considers to be
appropriate.

18.

Requires
the ASLD Commissioner to post each conceptual land use plan, revision of
conceptual land use plan and the ASLD Commissioner's written approval of each
conceptual land use plan and plan revision on the ASLD's website.

19.

Removes
the requirement that the ASLD Commissioner submit each conceptual land use plan
and revision plan to the Urban Land Planning Oversight Committee for review.

20.

Specifies that on the ASLD
Commissioner's approval of a conceptual land use plan, the plan, as applied to
state lands that have not been annexed, as of the general effective date:

a)

is the controlling land use designation for state lands; and

b)

supersedes
any conflicting county or municipal zoning.

21.

Requires the Commissioner
to:

a)

create annual five-year disposition plans for all state trust land for
each county;

b)

post each five-year disposition plan, plan revision and each written
order that adopts or approves a five-year disposition plan or plan revision on
the ASLD's website;

c)

ensure that each five-year disposition plan and plan revision conforms
with the conceptual land use plan; and

d)

issue
a written order that approves and adopts each five-year disposition plan and
plan revision.

22.

Requires
the Senate Natural Resources COR and the House Natural Resources, Energy and
Water COR or their successor CORs, by July 1, 2028, to hold a public hearing
during which the ASLD provides an update regarding its strategic plan.

23.

Requires
the Auditor General, by April 1, 2028, to notify the ASLD and the chairpersons
of the Senate Natural Resources COR and the House Natural Resources, Energy and
Water COR, or their successor CORs, of the requirement to hold a public
hearing.

24.

Requires the Commissioner,
within two years after the general effective date, to:

a)

complete the five-year disposition plans for state trust lands and
update the conceptual land use plan for state trust lands;

b)

adopt written policies and procedures for updating the five-year
disposition plan every five years and the conceptual land use plan every ten
years;

c)

adopt written policies and procedures on how the ASLD will use the
five-year disposition plans and the conceptual land use plan for determining
whether state trust lands are or will be sent to public auction; and

d)

provide
a copy of the five-year disposition plans, the conceptual land use plan and the
outlined policies and procedures to the President of the Senate and the Speaker
of the House.

25.

Repeals
the requirements relating to the adoption of written policies and procedures on
five-year disposition plans and conceptual land use plans on July 1, 2029.

Auditor
General's Performance Audit and Sunset Review of the ASLD

26.

Requires
the Commissioner within two years after the general effective date, to
implement all 51 recommendations in the Auditor General's July 2025 Performance
Audit and Sunset Review of the ASLD.

27.

Requires
the Commissioner, until all of the Auditor General's recommendations are
implemented, to meet with the Auditor General quarterly and report on the
progress of the ASLD's implementation of the recommendations.

28.

Requires
the Auditor General to maintain a checklist of the recommendations and to
update the checklist after each meeting consistent with the completion of any
of the recommendations to the satisfaction of the Auditor General.

29.

Allows
the Auditor General to enter any premises, conduct any investigation or inspect
any documents in possession of the ASLD to ensure the ASLD implements the
recommendation to the Auditor Generals satisfaction.

30.

Requires
the Auditor General, each fiscal quarter, to provide an update on the current
status of the recommendation checklist to each member of the Joint Legislative
Audit Committee (JLAC) the Governor and the chairperson of the CORs that the
President of the Senate and Speaker of the House tasks with oversight of the
ASLD.

31.

Requires the Auditor
General, if the ASLD fails to implement the Auditor General's recommendations
within two years after the general effective date to:

a)

notify each member of JLAC, the Governor and the chairperson of the CORs
that the President of the Senate and Speaker of the House tasks with oversight
of the ASLD; and

b)

request
a special meeting of JLAC to evaluate potential remedies and future action.

32.

Repeals
the requirements relating to the implementation of the Auditor Generals
recommendations to the ASLD on January 1, 2029.

Miscellaneous

33.

Repeals
the outlined public hearing requirements relating to the ASLD's strategic plan
on January 1, 2029.

34.

Contains
a purpose statement and statements of legislative findings.

35.

Becomes
effective on the general effective date, with the retroactive provision as
noted.

House Action

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*
on reconsideration

Prepared by Senate Research

March 13, 2026

SB/hk

Current Bill Text

Read the full stored bill text
HB2150 - 572R - H Ver

House Engrossed

continuation; state
land department

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2150

AN
ACT

amending title 27, chapter 2, article 3, Arizona
Revised Statutes, by adding section 27-240; amending sections 37-102,
37-132, 37-233 and 37-331.03, Arizona Revised Statutes;
Repealing section 41-3026.05, Arizona Revised Statutes; Amending title
41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3030.19;
RELATING to the state land department.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Title 27, chapter 2, article 3,
Arizona Revised Statutes, is amended by adding section 27-240, to read:

START_STATUTE
27-240.

Lease of state trust lands; minerals; renewals; indexed royalties

A. Notwithstanding any other law, the
state land commissioner may renew an existing mineral or mineral materials
lease without public auction if the state land commissioner determines all of
the following:

1. The lessee is in substantial
COMPLIANCE with the terms of the lease.

2. renewal is in the BEST INTEREST of
the state land trust.

3. Renewal is supported by a written
finding by the state land Commissioner that the renewal is consistent with the
state land Commissioner's fiduciary duties.

4. The renewal is for a term that is
allowed by the laws of this state.

b. a lease that the state land
commissioner renews PURSUANT to this section shall provide for a royalty rate
that is adjusted PURSUANT to a market-based indexing mechanism that the
state land commissioner adopts. The indexing mechanism may include
any of the following:

1. producer price indices.

2. regional or STATEWIDE construction
aggregate price INDICES.

3. Other objective INDICATORS that
are RECOGNIZED by the industry.
END_STATUTE

Sec. 2. Section 37-102, Arizona Revised Statutes, is amended to read:

START_STATUTE
37-102.

State land department; powers and duties

A. The state land department shall administer all
laws relating to lands owned by, belonging to and under the control of this
state.

B. The department shall have charge and control of
all lands owned by this state, and timber, stone, gravel and other products of
such lands, except lands under the specific use and control of state
institutions and the products of such lands.

C. The department, in the name of this state, may
commence, prosecute and defend all actions and proceedings to protect the
interest of this state in lands within this state or the proceeds of lands
within this state. Actions shall be commenced and prosecuted at the
request of the department by the attorney general, a county attorney or a
special counsel under the direction of the attorney general.

D. The department shall be the official
representative of this state in any communication between this state and the
United States government in all matters respecting state lands or any interest
of this state in or to the public lands within this state.

E. The summons in any
action against this state respecting any lands of this state or the products of
such lands and all notices concerning such lands or products shall be served on
the commissioner. Summonses, warrants or legal notices served on behalf of the
department may be served by the commissioner or the commissioner's deputy
,
or by the sheriff or a constable of any county of this
state.

F. The department shall maintain as a public record
in each of the department's offices a public docket and index of all matters
before the department that may be subject to appeal to the board of appeals or
to the courts and all sale, exchange and lease transactions subject to bidding
by the public. The department shall list a matter on the public
docket immediately after an application or other request for department action
is received by the department. The department shall include in the
public docket every formal action and decision affecting each matter in
question. The department shall establish by rule a means by which
any person may obtain a copy of the public docket at the current copying cost.

G. The department shall reappraise or update the
department's original appraisal of property to be leased, exchanged or sold if
the board of appeals' approval of the lease or sale occurred more than two
hundred forty days before the auction.

H. To the extent possible, the state land department
shall:

1. Prepare maps of the ancillary military facilities
described in section 28-8461, paragraph 7, subdivisions (b) and (c).

2. Make a map of the ancillary military facility
described in section 28-8461, paragraph 7, subdivision (a) available to
the public in printed or electronic format and provide the map in printed or
electronic format to the state real estate department.

3. On receipt of proper information from the
military installation commander with responsibility for the military
electronics range, prepare a map of the military electronics range as defined
in section 9-500.28 and make that map available to the public in printed
or electronic format and provide the map in printed or electronic format to the
state real estate department. Within ninety days after receipt of
notice of any change in the boundaries of the military electronics range from
the military installation commander, the state land department shall revise its
map and provide the map to the public and to the state real estate department.

4. On or before December 31, 2024 and on receipt of
proper information from the applicable military installation's and range's and
Arizona national guard site's commanders, prepare electronic legal descriptions
and maps of the military installation and range and Arizona national guard site
and their respective influence areas as defined in sections 9-500.50 and
11-818.01 and provide the legal descriptions and maps to the state real
estate department and the public. The state land department shall
make changes to the boundaries of the military installation and range and
arizona
national guard site and their respective influence
areas and provide them to the state real estate department and the public
within ninety days after receipt of those changes from the military
installation's and range's and Arizona national guard site's commanders.

5. Restrict the use of a lease or
permit holdover provision to not more than ninety days. If a lease
is in holdover status and the holdover tenant submits a lease renewal
application pursuant to section 37-291 that the department does not take
action on within the ninety days after the lease expires, the lease is
automatically renewed for three years and ninety days after the date of natural
expiration. A lease that is renewed pursuant to this paragraph is
deemed in the best interest of the state trust pursuant to section 37-291. If
the department terminates a holdover tenant's lease, the department shall
provide immediate reimbursement for the fair market value, as determined by an
independent third-party vendor, of any reasonable and customary
improvements that the holdover tenant made to the state land.

6. For a lease renewal and special
land use permit:

(
a
) Approve any
improvements that are customary in the lessee's or permittee's course of
business. If a tenant submits an application for permission to
construct or make an improvement to state lands pursuant to section 37-321
and the department does not take action on the application within ninety days
after receipt, the application is automatically approved. An
improvement that is automatically approved pursuant to this subdivision is
deemed in the best interest of the state pursuant to section 37-321. On
conclusion of a lease renewal or special land use permit, the department shall
reimburse the lessee or permittee for the lessee's or permittee's improvements
on state lands with monies from the state land trust.

(
b
) Not less
than six months before the expiration of a lease renewal or special land use
permit, provide notice of expiration. The notice must include all of the
following:

(
i
) Any
PROPOSED rental increase or PROPOSED change to the terms and conditions of the
lease renewal or special land use permit.

(
ii
) The intent
of the department to renew or terminate the lease or special land use permit.

(
iii
) The
justification for the commissioner's decision, as prescribed in section 37-133,
to renew or terminate the lease or permit. If the department decides to not
renew a lease or issue a special land use permit, the department shall include
a statement that identifies the department's determination of the highest and
the best use of the state lands, subject to the lease or special land use
permit. If the state lands will not immediately generate revenue on
the expiration of the lease or special land use permit, the notice shall
include a statement identifying how long the department estimates that the
state lands will generate monies for the state land trust and why the
department believes foregoing the monies for the estimated time frame is in the
best interest of the state land trust.

7. Restrict the use of special land
use permits only to temporary land uses that do not have a dedicated land use
lease or permit.

I. The state land department shall provide each map
and the legal description of the boundaries of each ancillary military facility
described in section 28-8461, paragraph 7 in electronic format to the
state real estate department. Each map prepared by the state land
department pursuant to this section shall:

1. Describe the ancillary military facility, the
territory in the vicinity of the ancillary military facility and the high noise
and accident potential zone, accident potential zone one and accident potential
zone two associated with the ancillary military facility.

2. Be submitted to the county in which the ancillary
military facility is located.

3. Be made available to the public.

J. The state land department shall prepare a
military training route map. The map shall contain military training
route numbers in this state that are used by various United States armed
forces. The map shall be dated.

K. When preparing the military training route map,
the state land department shall use information contained in the most current
department of defense publication that is entitled "area planning military
training routes for North and South America".

L. The military training route map shall be made
available to the public.

M. Within ninety days after the department is
notified of a change of a military training route in this state, the department
shall prepare a revised military training route map. The map shall
be dated and contain a statement that the map supersedes all previously dated
maps. The state land department shall send the revised map to the
state real estate department electronically and shall also send an accompanying
letter specifying the military training route changes. The state
land department shall send the revised map and an accompanying letter
specifying the military training route changes to the municipalities affected
by the changes and to all counties.

N. The department shall submit the military training
route map prepared pursuant to this section to the counties in either an
electronic or a printed format. The format shall be determined by
the receiving county.

O. The state land department shall provide the legal
description of the boundaries of the military training routes as delineated in
the military training route map to the state real estate department in
electronic format.

P. The state land department shall prepare a
military restricted airspace map. The map shall contain military
restricted airspace in this state that is used by various United States armed
forces. The map shall be dated.

Q. When preparing the military restricted airspace
map, the state land department shall use information contained in the most
current department of transportation publication that is entitled
"aeronautical chart".

R. The military restricted airspace map shall be
made available in printed or electronic format to the public at the state land
department and at the state real estate department.

S. Within ninety days after the department is
notified of a change of military restricted airspace in this state, the
department shall prepare a revised military restricted airspace
map. The map shall be dated and contain a statement that the map
supersedes all previously dated maps. The state land department
shall send the revised map to the state real estate department electronically
and shall also send an accompanying letter specifying the military restricted
airspace changes. The state land department shall send the revised
map and an accompanying letter specifying the military restricted airspace
changes to the municipalities affected by the changes and to all counties.

T. The department shall submit the military
restricted airspace map prepared pursuant to this section to the counties in
either an electronic or a printed format. The format shall be
determined by the receiving county.

U. The state land department shall provide the legal
description of the boundaries of the military restricted airspace as delineated
in the military restricted airspace map to the state real estate department in
electronic format.

V. The department may accept title to and manage
real estate, property rights and related infrastructure acquired pursuant to
section 26-262, subsection K for preserving or enhancing military
installations in this state.
END_STATUTE

Sec. 3. Section 37-132, Arizona Revised
Statutes, is amended to read:

START_STATUTE
37-132.

Powers and duties

A. The commissioner shall:

1. Exercise and perform all powers and duties vested
in or imposed on the department and prescribe such rules as are necessary to
discharge those duties.

2. Exercise the powers of surveyor-general
except for the powers of the surveyor-general exercised by the state
treasurer as a member of the selection board pursuant to section 37-202.

3. Make long-range plans for the future use of
state lands in cooperation with other state agencies, local planning
authorities and political subdivisions.

4. Promote the infill and orderly development of
state lands in areas beneficial to the trust and prevent urban sprawl or
leapfrog development on state lands.

5. Classify and appraise all state lands, together
with the improvements on state lands, for the purpose of sale, lease or grant
of rights-of-way. The commissioner may impose such
conditions and covenants and make such reservations in the sale of state lands
as the commissioner deems to be in the best interest of the state
trust. The provisions of this paragraph are subject to hearing
procedures pursuant to title 41, chapter 6, article 10 and, except as provided
in section 41-1092.08, subsection H, are subject to judicial review
pursuant to title 12, chapter 7, article 6.

6. Have authority to lease for grazing,
agricultural, homesite or other purposes, except commercial, all land owned or
held in trust by this state.

7. Have authority to lease for commercial purposes
and sell all land owned or held in trust by this state, but any such lease for
a term longer than ten years for commercial purposes or any such sale shall
first be approved by the board of appeals.

8. Except as otherwise provided, determine all
disputes, grievances or other questions pertaining to the administration of
state lands.

9. Appoint deputies and other assistants and
employees necessary to perform the duties of the department and assign their
duties subject to title 41, chapter 4, article 4 and require of them such
surety bonds as the commissioner deems proper. The compensation of
the deputy, assistants or employees shall be as determined pursuant to section
38-611.

10. Make a written report to the governor annually,
not later than September 1, disclosing in detail the activities of the
department for the preceding fiscal year and publish it for
distribution. The report shall include an evaluation of auctions of
state land leases held during the preceding fiscal year considering the
advantages and disadvantages to the state trust of the existence and exercise
of preferred rights to lease reclassified state land.

11. Withdraw state land from surface or subsurface
sales or lease applications if the commissioner deems it to be in the best
interest of the trust. This closure of state lands to new
applications for sale or lease does not affect the rights that existing lessees
have under law for renewal of their leases and reimbursement for improvements.

12. Provide a quarterly update of the
activities of the department and the actions that the department is taking to
improve the internal and administrative workings of the department to the
chairperson of the house of representatives natural resources, energy and water
committee of reference, or its successor committee of reference, and the senate
natural resources committee of reference, or its successor committee of
reference.

B. The commissioner may:

1. Take evidence relating to, and may require of the
various county officers information on, any matter that the commissioner has
the power to investigate or determine.

2. Under such rules as the commissioner adopts, use
private real estate brokers to assist in any sale or long-term lease of
state land and pay, from fees collected under section 37-107, subsection
B, paragraph 1, a commission to a broker that is licensed pursuant to title 32,
chapter 20 and that provides the purchaser or lessee at auction. The
purchaser or lessee at auction is not eligible to receive a commission pursuant
to this paragraph. A commission shall not be paid on a sale or a
long-term lease if the purchaser or lessee is a political subdivision of
this state.

3. Require a permittee, lessee or grantee to post a
surety bond or any form of collateral deemed sufficient by the commissioner for
performance or restoration purposes. The commissioner shall use the
proceeds of a bond or collateral only for the purposes determined at the time
the bond or collateral is posted. For agricultural lessees, the
commissioner may require collateral as follows:

(a) As security for payment of the annual
assessments levied by the irrigation district in which the state land is
located if the lessee has a history of late payments or
defaults. The amount of the collateral required may not exceed the
annual assessment levied by the irrigation district.

(b) As security for payment of rent, if an extension
of time for payment is requested or if the lessee has a history of late
payments of rent. The collateral shall be submitted at the time any
extension of time for payment is requested. The amount of the
collateral required may not exceed the annual amount of rent for the land.

(c) A surety bond shall be required only if the
commissioner determines that other forms of collateral are insufficient.

4. Withhold market and economic analyses,
preliminary engineering, site and area studies and appraisals that are
collected during the urban planning process from public viewing before they are
submitted to local planning and zoning authorities.

5. Withhold from public inspection proprietary
information received during lease negotiations. The proprietary
information shall be released to public inspection unless the release may harm
the competitive position of the applicant and the information could not have
been obtained by other legitimate means.

6. Issue permits for short-term use of state
land for specific purposes as prescribed by rule.

7. Contract with a third party to sell recreational
permits. A third party under contract pursuant to this paragraph may assess a
surcharge for its services as provided in the contract, in addition to the fees
prescribed pursuant to section 37-107.

8. Close urban lands to specific uses as prescribed
by rule if necessary for dust abatement, to reduce a risk from hazardous
environmental conditions that pose a risk to human health or safety or for
remediation purposes.

9. Notwithstanding subsection A, paragraph 4 of this
section, authorize, in the best interest of the trust, the extension of public
services and facilities either:

(a) That are necessary to implement plans of the
local governing body, including plans adopted or amended pursuant to section 9-461.06
or 11-805.

(b) Across state lands that are either:

(i) Classified as suitable for conservation purposes
pursuant to section 37-312.

(ii) Sold or leased at auction for conservation
purposes.

10. Contract with a qualified third-party reviewer
that is selected by the commissioner to review any application submitted to the
department if the commissioner determines that the department will not be able
to take action on the application within sixty working days after the
application is submitted to the department. A third-party
reviewer that reviews an application pursuant to this paragraph shall do both
of the following:

(a) Review the application and take all other
related actions in accordance with all requirements that are adopted by the
department.

(b) Notify the department and the applicant of the
findings of the review.

C. The commissioner or any deputy or employee of the
department may not have, own or acquire, directly or indirectly, any state
lands or the products on any state lands, any interest in or to such lands or
products, or improvements on leased state lands, or be interested in any state
irrigation project affecting state lands.
END_STATUTE

Sec
.

4.
Section
37-233, Arizona Revised Statutes, is amended to read:

START_STATUTE
37-233
.

Sale of state lands; restriction on sale of timber land; expense
of sale
; rules

A. On receiving an application, or on
the commissioner's initiative, the
state
land
department, under the rules of the department, may
cause state lands to be sold if the sale of them is not prohibited by law.

B. Land containing timber of a value
which in the opinion of the commissioner should be sold separately from the
land shall not be subject to sale until after the timber is sold.

C. When an application is filed with the
department for selection or sale of land under the laws of this state, and the
department determines that the benefit to be derived from the selection or sale
is less than the expense involved, the commissioner may accept from the
applicant an amount of money sufficient to pay the expense incidental to the
selection or sale. If the applicant fails to secure a lease after
selection of land, or fails to purchase land after bidding for it, the successful
lessee or purchaser shall reimburse the original applicant for all funds so
advanced.

D.
RULES ADOPTED
PURSUANT TO SUBSECTION A OF THIS SECTION SHALL ESTABLISH A PROCEDURE AND
CRITERIA THAT THE COMMISSIONER MUST USE FOR DETERMINING WHETHER TO INITIATE THE
SALE OF STATE LANDS BY THE COMMISSIONER'S
RULES ADOPTED
PURSUANT TO SUBSECTION A OF THIS SECTION SHALL ESTABLISH A PROCEDURE AND
CRITERIA THAT THE COMMISSIONER MUST USE FOR DETERMINING WHETHER TO INITIATE THE
SALE OF STATE LANDS BY THE COMMISSIONER'S
OWN INITIATIVE.
END_STATUTE

Sec. 5. Section 37-331.03, Arizona Revised
Statutes, is amended to read:

START_STATUTE
37-331.03.

Conceptual land use plans;
five year disposition plans; definitions

A. The commissioner shall create
and
approve
conceptual land use plans for all urban state trust land in this
state and other state trust lands the commissioner considers to be
appropriate. The commissioner shall:

1. Prioritize the creation of conceptual
land use
plans to the extent possible to:

(a) Correlate with the rate of population growth in
the urban areas in this state.

(b) Coincide with the production of municipal
general plans under title 9, chapter 4, article 6 and county plans under title
11, chapter 6, article 1.

2. Revise and update each
conceptual
land use
plan at least every ten years.
The
COMMISSIONER shall issue a written order approving each conceptual land use
plan and conceptual land use plan revision.

3. Consult with the city, town or county in which
the land is located and with any regional planning organization regarding
integrating the conceptual
land use
plan into the general
land use plan of the city, town or county.

4.
Submit
post

each
conceptual land use
plan
,

and revision of
the

a conceptual land use
plan
, to the urban land
planning oversight committee for review
and the
Commissioner's written approval of each CONCEPTUAL land use plan and conceptual
land use plan revision on the department's website
.

B. On approval of the conceptual land use plan by
the commissioner under this section, the conceptual
land use

plan is
considered to be
a state general plan for
the
purposes of this article.

C. The commissioner may create the conceptual land
use plans under subsection A of this section by any of the following methods:

1. Using department staff or private consultants.

2. Entering into participation contracts pursuant to
section 37-239.

3. Issuing planning permits for urban lands pursuant
to section 37-338.

4. Entering into planning contracts for urban lands
or other state trust lands the commissioner considers to be appropriate,
including compensation as provided by section 37-338, subsection D.

d. On the commissioner's approval of
a conceptual land use plan, the conceptual land use plan, as applied to state
lands that have not been annexed as of the effective date of this amendment to
this section:

1. is the COntrolling land use
designation for state lands.

2. Supersedes any conflicting county
or municipal zoning.

D.

E.
The
commissioner shall create
a

five
year disposition
plans

plan
for all
state trust land in
each county in
this state, based at a
minimum on market demand, anticipated transportation and infrastructure
availability. The commissioner shall
do all of the
following
:

1. Review and update each
five year
disposition
plan
for each county
each year as
may be
necessary.

2. Consult with the city, town or county in which
the land is located and with any regional planning organization.

3.
Submit

post
each
five year disposition
plan
and
, each five year disposition plan
revision

to the urban land planning oversight committee

and each written order that adopts or approves a
five year disposition plan or five year disposition plan revision AVAILABLE on
the department's website
to ensure conformity with the conceptual
land use
plan under subsection A
of this section
.

4. Ensure that each five year
disposition plan and five year disposition plan revision conforms with the
conceptual land use plan.

5. Issue a written order that
approves and adopts each five year disposition plan and five year disposition
plan revision.

E.

f.
For
the purposes of this section:

1. "Conceptual land use plan" means a plan
that is developed for urban state trust land and other state trust lands the
commissioner considers to be appropriate and that identifies:

(a) Appropriate land uses, including commercial,
industrial, residential and open space uses.

(b) Transportation corridors and infrastructure
requirements.

(c) All natural and artificial constraints and
opportunities associated with the land.

2. "Five year disposition plan" means a
plan that identifies the land projected to be sold, leased, reclassified for
conservation purposes, master planned or zoned during the next five years.
END_STATUTE

Sec. 6.
Repeal

Section 41-3026.05, Arizona Revised Statutes, is
repealed.

Sec. 7. Title
41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding
section 41-3030.19, to read:

START_STATUTE
41-3030.19.

State land department; termination July 1, 2030

A. The
state land department terminates on July 1, 2030.

b. Title 37, chapters 1 and 2 and
this section are repealed on January 1, 2031.
END_STATUTE

Sec.
8.

State land department; auditor general report; recommendations;
implementation; checklist; notification; delayed repeal

A. Within two years after the
effective date of this section, the state land commissioner shall implement all
fifty-one recommendations in the auditor general's July 2025 performance audit
and sunset review of the state land department.

B. Until the state land
commissioner implements all of the auditor general's recommendations, the state
land commissioner shall meet with the auditor general quarterly and report on
the progress of the state land department's implementation of the
recommendations.

C. The auditor general
shall maintain a checklist of the recommendations and shall update the
checklist after each meeting consistent with the completion of any of the
recommendations to the satisfaction of the auditor general.

D. The auditor general may
enter any premises, conduct any investigation or inspect any documents in
possession of the state land department to ensure the state land department
implements the recommendations to the auditor general's satisfaction.

E. Each fiscal quarter, the
auditor general shall provide an update of the current status of the
recommendation checklist to the following:

1. Each member of the joint
legislative audit committee.

2. The governor.

3. The chairperson of the
committee of reference that the president of the senate tasks with oversight of
the state land department.

4. The chairperson of the
committee of reference that the speaker of the house of representatives tasks
with oversight of the state land department.

F. If the state land
department fails to implement the auditor general's recommendations within two
years after the effective date of this section, the auditor general shall:

1. Notify the following:

(
a
) Each
member of the joint legislative audit committee.

(
b
) The
governor.

(
c
) The
chairperson of the committee of reference that the president of the senate
tasks with oversight of the state land department.

(
d
) The
chairperson of the committee of reference that the speaker of the house of
representatives tasks with oversight of the state land department.

2. Request a special
meeting of the joint legislative audit committee to evaluate potential remedies
and future action.

G. This section is repealed
from and after December 31, 2028.

Sec.
9.

Legislative findings

The legislature finds that this act is
necessary to ensure the best interest of the state land trust, state land trust
beneficiaries and this state.

Sec. 10.
Public hearing;
notification; committees of reference; state land department's strategic plan;
delayed repeal

A. On or before April 1,
2028, the auditor general shall notify the state land department and the
chairpersons of the senate natural resources committee of reference and the
house of representatives natural resources, energy and water committee of
reference, or their successor committees of reference, of the requirement to
hold a public hearing as prescribed in subsection B of this section.

B. On or before July 1,
2028, the senate natural resources committee of reference and the house of
representatives natural resources, energy and water committee of reference, or
their successor committees of reference, shall hold a public hearing during
which the state land department shall provide an update regarding the state
land department's strategic plan.

C. This section is repealed
from and after December 31, 2028.

Sec. 11.
Five year
disposition plans; conceptual land use plan; requirements; delayed repeal

A. Within two years after
the effective date of this section, the state land commissioner shall:

1. Complete the five year
disposition plans for state trust lands and update the conceptual land use plan
for state lands pursuant to section 37-331.03, subsection E, Arizona
Revised Statutes, as amended by this act.

2. Adopt written policies
and procedures for updating:

(
a
) The
five year disposition plan every five years.

(
b
) The
conceptual land use plan every ten years.

3. Adopt written policies
and procedures on how the state land department will use the five year
disposition plans and the conceptual land use plan for determining whether
state trust lands are or will be sent to public auction.

4. Provide a copy of the
five year disposition plans and the conceptual land use plan and the policies
and procedures adopted pursuant to this section to the president of the senate
and the speaker of the house of representatives.

B. This section is repealed
from and after June 30, 2029.

Sec. 12.
Legislative findings

The
legislature finds that:

1. According
to the auditor general's performance audit and sunset review of the state land
department completed on July 9, 2025, the state land department has failed to
develop the statutorily required five year disposition plans since 2016.

2. According to the auditor
general's performance audit and sunset review, all five members of the urban
land planning oversight committee have been vacant since at least 2018.

3. Pursuant to section 37-331.02,
Arizona Revised Statutes, and section 37-331.03, Arizona Revised
Statutes, as amended by this act, the urban land planning oversight committee
serves in an advisory role only and is not required for the commissioner to
fulfill the commissioner's obligations to create a five year disposition plan
pursuant to statute.

4. The fact that the
governor has not appointed any members to the urban land planning oversight
committee has not absolved the commissioner of the commissioner's obligations
to create a five year disposition plan as prescribed in section 37-331.03,
Arizona Revised Statutes, as amended by this act.

5. The creation of a five
year disposition plan is necessary for housing affordability and to ensure the
highest and best use of the land for the beneficiaries of the trust.

Sec. 13.
Purpose

Pursuant
to section 41�2955, subsection B, Arizona Revised Statutes, the legislature
continues the state land department to have charge of and control over all
lands owned by this state, except lands under the specific use and control of
state institutions, and the resources in and on those lands and to regulate the
use of and access to those lands and resources as prescribed by the enabling
act, the Constitution of Arizona and state law and to perform such other
functions as prescribed by law.

Sec. 14.
Retroactivity

Sections
6 and
7 of this act apply
retroactively to from and after July 1, 2026.