Official Summary Text
HB2755 - 572R - Senate Fact Sheet
Assigned to
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PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
H.B. 2755
state land use;
highest; best
Purpose
Allows the Arizona State Land Commissioner (Commissioner) to renew an
existing mineral or mineral materials lease without public auction if the
Commissioner makes outlined determinations and prohibits the Arizona State Land
Department (ASLD) from restricting the use of a holdover lease to more than 90 days.
Extends the term for an exploration permit from one year to five years after
the date of issuance and specifies that the exploration permit is eligible for
a renewal for one additional five-year period.
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 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
).
All state lands are subject to lease for a term of not more than 10 years
for agricultural, commercial and homesite purposes, without advertising. The
leases must be granted according to the Arizona Constitution, state law and ASLD
rules. Leases may not be granted without an application and all applications
for leases must be: 1) made upon forms prepared and furnished by the ASLD; 2)
signed and sworn to by the applicant or their authorized agent or attorney; and
3) filed with the ASLD (
A.R.S.
� 37-281
).
Any natural person over 18 years of age and any other person qualified to
transact business in Arizona may apply to the Commissioner for an exploration
permit on the state land in one or more of the rectangular subdivisions of 20
acres, more or less, or lots, in any one section of the public land survey (
A.R.S.
� 27-251
). Every exploration permit must be for a term of one year from the
date of issuance subject to renewals for an aggregate of up to five years from
such date, and must give the permittee statutorily outlined rights subject to
the terms and conditions of the exploration permit (
A.R.S.
� 27-252
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
Leasing of
State Lands for Mineral or Mineral Materials
1.
Allows
the Commissioner to renew an existing mineral or mineral materials lease
without public auction if the Commissioner determines that:
a)
the lessee is in substantial compliance with the terms of the lease;
b)
renewal is in the best interest of the trust;
c)
renewal is supported by written fiduciary findings; and
d)
the
renewal term is for a term that is authorized by state law.
2.
Requires a renewed mineral or mineral materials lease to provide for a
royalty rate that is adjusted using a market-based indexing mechanism adopted
by the ASLD.
3.
Allows the indexing mechanism to include producer price indices,
regional or statewide construction aggregate price indices or other objective,
industry-recognized market indicators.
4.
Requires the Commissioner to review indexed royalty rates at intervals
of not more than five years.
5.
Prohibits the ASLD from requiring the holder of a valid mineral lease or
common variety mineral lease of state lands that are located within the
boundaries of a municipality to obtain a special land use permit, conditional
use permit, development agreement, variance or other express authorization from
the municipality as a condition of lease renewal.
6.
Prohibits a municipality from requiring a person to obtain a special
land use permit, conditional use permit, development agreement, variance or
other express authorization for the use of state lands for mining, whether for
common variety minerals or mineral claims, if the state lands were subject to a
valid mineral lease, common variety mineral lease or holdover lease when the
municipality annexed the state lands.
Exploration
Permits
7.
Extends the term for an exploration permit from one year to five years
after the date of issuance.
8.
Specifies that the exploration permit is eligible for a renewal for one
additional five-year period for an aggregate of 10 years after the date of
issuance.
9.
Clarifies that, during the period the exploration permit is in force and
effect, the permittee has the surface rights necessary for exploration on state
land covered by the permit but may remove from the state land only that amount
of mineral or common variety mineral that is required by the permittee for
sampling, assay and metallurgical testing purposes.
10.
Clarifies
that the application for an exploration permit applies to state land that is reserved
for statutorily outlined minerals.
11.
Prohibits
each exploration permit application on state land in one or more of the
rectangular subdivisions of 20 acres, more or less, or lots, in any identified
contiguous sections of the public land survey from exceeding more than nine
sections of the public land survey.
12.
Prohibits a
common variety mineral exploration application from having priority over a
mineral exploration application and from resulting in withdrawal of a mineral
exploration application while the mineral exploration application is pending.
13.
Removes
the condition that the total area of contiguous property may not exceed three
miles on a side for a permittee that has an interest in one or more contiguous
properties that the permittee holds an exploration permit, to group such
permits and expend the required sum under a common plan of development on one
or more of the properties for the benefit of all.
14.
Allows
the holder of an exploration permit, within 60 days before the expiration of
the initial five-year exploration permit period, to file with the ASLD an
application for renewal of the exploration permit for the ensuing five-year
period.
15.
Prohibits
an application for renewal from being filed or renewed for more than one
additional five-year permit period after expiration of the initial five-year
period that the permit was issued.
16.
Increases
the rental for each subsequent permit period for which a permit may be renewed
from $1 to $2 for each acre of state land for which the application for renewal
is filed.
17.
Allows
the Commissioner, in the Commissioner's discretion, to require an applicant for
an exploration permit to file with the Commissioner a surety bond, as outlined,
in conjunction with the issuance of the exploration permit, rather than prior
to the issuance of the exploration permit.
18.
Allows an exploration permit
or common variety right of entry permit that the ASLD issued before the general
effective date to, at the choice of the permittee:
a)
continue
in effect until the initial expiration stated in the existing exploration
permit; or
b)
be
surrendered at any time before the initial expiration date stated in the
exploration permit and remain subject to a replacement with a five-year permit
period.
Miscellaneous
19.
Requires
the ASLD, to the extent possible, to restrict the use of a holdover lease to
not more than 90 days.
20.
Requires
a holdover tenant whose lease is terminated by the ASLD to receive immediate
reimbursement for the fair market value of any reasonable and customary
improvements that the holdover tenant made to the state land.
21.
Requires the ASLD, for a
lease renewal and special land use permit and to the extent possible, to:
a)
approve any improvements that are reasonable and customary in the
lessee's or permittee's course of business; and
b)
provide
ample notice to a lessee or permittee before the termination of the lease or
special land use permit.
22.
Requires
the ASLD, on conclusion of the lease or special land use permit, to reimburse
the lessee or permittee for the improvements with monies from the state land
trust.
23.
Contains
a statement of legislative findings.
24.
Defines
Commissioner
,
common variety mineral
,
mineral
and
state
land.
25.
Makes
technical and conforming changes.
26.
Becomes
effective on the general effective date.
Amendments Adopted by Committee
1.
Extends the term for an exploration permit from one year to five years
after the date of issuance and specifies that the exploration permit is
eligible for a renewal for one additional five-year period for an aggregate of
10 years after the date of issuance.
2.
Increases the rental for each subsequent permit period for which a
permit may be renewed from $1 to $2 for each acre of state land for which the
application for renewal is filed.
3.
Clarifies that, during the period the exploration permit is in force and
effect, the permittee has the surface rights necessary for exploration on state
land covered by the permit but may remove from the state land only that amount
of mineral or common variety mineral that is required by the permittee for
sampling, assay and metallurgical testing purposes.
4.
Prohibits a municipality from requiring a person to obtain a special
land use permit, conditional use permit, development agreement, variance or
other express authorization for the use of state lands for mining, whether for
common variety minerals or mineral claims, if the state lands were subject to a
valid mineral lease, common variety mineral lease or holdover lease when the
municipality annexed the state lands.
5.
Allows an exploration permit or common variety right of entry permit
that the ASLD issued before the general effective date to, at the choice of the
permittee:
a)
continue
in effect until the initial expiration stated in the existing exploration
permit; or
b)
be surrendered at any time before the initial expiration date stated in
the exploration permit and remain subject to a replacement with a five-year
permit period.
6.
Modifies requirements relating to exploration permits, mineral leases
and common variety mineral leases.
7.
Prohibits the ASLD from requiring the holder of a valid mineral lease or
common variety mineral lease of state lands that are located within the
boundaries of a municipality to obtain a special land use permit, conditional
use permit, development agreement, variance or other express authorization from
the municipality as a condition of lease renewal.
8.
Prohibits a municipality from requiring a person to obtain a special
land use permit, conditional use permit, development agreement, variance or
other express authorization for the use of state lands for mining, whether for
common variety minerals or mineral claims, if the state lands were subject to a
valid mineral lease, common variety mineral lease or holdover lease when the
municipality annexed the state lands.
9.
Defines
terms.
10.
Makes technical and
conforming changes.
House Action
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Senate
Action
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*
on reconsideration
Prepared by Senate Research
March 30, 2026
SB/hk
Current Bill Text
Read the full stored bill text
HB2755 - 572R - H Ver
House Engrossed
state land use;
highest; best
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2755
AN
ACT
Amending title 27, chapter 2, article 3, Arizona
Revised Statutes, by adding section 27-240; amending section 37-102,
Arizona Revised Statutes; RELATING to state lands.
(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 lands; minerals; renewal; auction exemption;
indexed royalties
A. Notwithstanding any other law, THE
COMMISSIONER MAY RENEW AN EXISTING mineral OR MINERAL MATERIALS LEASE WITHOUT
PUBLIC AUCTION If THE COMMISSIONER DETERMINES THAT:
1. THE LESSEE IS IN SUBSTANTIAL
COMPLIANCE WITH THE TERMS OF THE LEASE.
2. RENEWAL IS IN THE BEST INTEREST OF
THE TRUST.
3. RENEWAL IS SUPPORTED BY WRITTEN
FIDUCIARY FINDINGS.
4. THE RENEWAL TERM IS FOR a term
that is authorized by state law.
B. A LEASE RENEWED PURSUANT TO THIS
SECTION SHALL PROVIDE FOR A ROYALTY RATE THAT IS ADJUSTED USING A MARKET-BASED
INDEXING MECHANISM ADOPTED BY the department.
C. THE INDEXING MECHANISM MAY INCLUDE
PRODUCER PRICE INDICES, REGIONAL OR STATEWIDE CONSTRUCTION AGGREGATE PRICE
INDICES OR OTHER OBJECTIVE, INDUSTRY-RECOGNIZED MARKET INDICATORS.
D. THE COMMISSIONER SHALL REVIEW
INDEXED ROYALTY RATES AT INTERVALS of not more than FIVE YEARS.
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 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 holdover
lease to not more than ninety days. A holdover tenant whose lease is
terminated by the department shall receive immediate reimbursement for the fair
market value 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 reasonable and customary in the lessee's or permittee's
course of business.� On conclusion of the lease or special land use permit, the
department shall reimburse the lessee or permittee for the improvements with
monies from the state land trust.
(
b
) Provide
ample notice to a lessee or permittee before the termination of the lease or
special land use 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.
Legislative
findings
The legislature finds that:
1. Minerals and common
variety minerals exist where they are.
2. Minerals and common
variety minerals are needed for all forms of commercial development on state
trust lands, including affordable housing and semiconductor fabrication.
3. Development that occurs
over state trust lands that contains minerals permanently locks away those
minerals, preventing the minerals from being extracted and permanently
foreclosing their revenues from accruing to the trust.
4. Mineral extraction is
subject to reclamation plans that restore the land to its previous condition
before extraction occurred and this makes the land usable for other commercial
uses once mining is completed.
5. Pursuant to the Arizona
Constitution and the Enabling Act, the extraction of minerals must occur before
any other commercial land use.