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HB2351 • 2026

state land; commissioner-initiated sales

HB2351 - state land; commissioner-initiated sales

Passed Legislature

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

Sponsor
Lupe Diaz
Last action
2026-03-09
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The official source material did not provide specific details about the sale process or auction requirements beyond what is mentioned in the bill summary and text.

State Land Sales by Commissioner

This bill requires the Arizona State Land Department (ASLD) to establish rules that set out how and when the department can sell state lands on its own initiative.

What This Bill Does

  • Requires ASLD to create rules for initiating sales of state land without waiting for an application from someone else.
  • Specifies that these rules must include a process and criteria for deciding whether to start a sale of state land.
  • Allows ASLD to sell timber separately from the land if it has value, before selling the land itself.

Who It Names or Affects

  • The Arizona State Land Department (ASLD) and its Commissioner
  • People who might want to buy state lands or timber from the state

Terms To Know

Arizona Revised Statutes
The official collection of laws for the state of Arizona.
State Land Department (ASLD)
A government agency responsible for managing and selling state-owned lands in Arizona.

Limits and Unknowns

  • Does not specify how much money will be raised or saved by these changes.
  • The bill does not provide details on the exact criteria that ASLD must use to decide when to sell land.
  • It is unclear what specific technical changes are made beyond those related to the sale process.

Bill History

  1. 2026-03-09 Senate

    Senate second read

  2. 2026-03-05 Senate

    Senate Rules: None

  3. 2026-03-05 Senate

    Senate Natural Resources: None

  4. 2026-03-05 Senate

    Senate first read

  5. 2026-02-23 Senate

    Transmitted to Senate

  6. 2026-02-23 House

    House third read passed

  7. 2026-02-17 House

    House minority caucus

  8. 2026-02-17 House

    House majority caucus

  9. 2026-02-16 House

    House consent calendar

  10. 2026-01-21 House

    House second read

  11. 2026-01-20 House

    House Rules: C&P

  12. 2026-01-20 House

    House Natural Resources, Energy & Water: DP

  13. 2026-01-20 House

    House Land, Agriculture & Rural Affairs: W/D

  14. 2026-01-20 House

    House first read

Official Summary Text

HB2351 - 572R - Senate Fact Sheet

Assigned to
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COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
H.B. 2351

state land; commissioner-initiated
sales

Purpose

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

Background

On receiving an
application, or on the Commissioner's own initiative, the ASLD, under the rules
of the ASLD, may cause state lands to be sold if the sale is not prohibited by
law. Land containing timber of value, which in the opinion of the Commissioner
should be sold separately from the land is not subject to sale until after the
timber is sold (
A.R.S.
� 37-233
).

The Arizona
State Land Department (ASLD) must order the sale of the lands to the highest
and best bidder at public auction held at the county seat of the county in
which the land or the major portion of the land is located and give notice of
the sale by advertisement. The ASLD may accept bids offered through electronic
means during a public auction. After an accepted bid, the ASLD is not liable
for: 1) the failure of a person's electronic means that prevents the person
from participating in the auction; or 2) the failure of the electronic means the
ASLD operates that is caused by an act of god or nature, a superior or
overpowering force or an event or effect that cannot be reasonably anticipated
or controlled during or directly preceding the public auction that prevents a
person from participating in the public auction. If the Commissioner receives
information that indicates there is a change in the circumstances regarding the
benefits to the trust before the acceptance of a final bid at the public
auction, the Commissioner may cancel the sale proceedings. A person adversely
affected by a decision to terminate a sale may appeal such decision to the ASLD
Board of Appeals, except for in the prescribed situations in which the ASLD is
not liable (‎
A.R.S.
� 37-236
).

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

Provisions

1.

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

2.

Makes technical changes.

3.

Becomes effective on the general effective date.

House Action

LARA ����������� 1/27/26
���� W/D

NREW ���������� 2/12/26
���� DP ����� 6-3-0-1

3
rd
Read��������� 2/23/26
���������������� 32-25-3

Prepared by Senate Research

March 13, 2026

SB/hk

Current Bill Text

Read the full stored bill text
HB2351 - 572R - H Ver

House Engrossed

state land;
commissioner-initiated sales

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2351

AN
ACT

Amending section 37-233, Arizona Revised
Statutes; relating to the sale of state lands.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. 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 own initiative.
END_STATUTE