Back to Arizona

SB1336 • 2026

state land department; continuation; oversight

SB1336 - state land department; continuation; oversight

Housing Labor
Passed Legislature

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

Sponsor
Timothy "Tim" Dunn
Last action
2026-03-31
Official status
House minority caucus
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details about the cost of running the State Land Oversight Board or how ASLD will enforce new rules.

Arizona State Land Department Continuation and Oversight

This bill continues the Arizona State Land Department for four years, establishes an oversight board, and sets new rules for land use and leasing.

What This Bill Does

  • Extends the operation of the Arizona State Land Department (ASLD) until July 1, 2030.
  • Creates a State Land Oversight Board to monitor ASLD's activities.
  • Restricts lease or permit holdover provisions to not more than ninety days and sets rules for lease renewals and special land use permits.
  • Collaborates with the State Natural Resource Conservation Board on reviewing federal conservation-related permits on nonurban state lands.
  • Protects due process rights of individuals doing business with ASLD.

Who It Names or Affects

  • The Arizona State Land Department
  • People leasing or using state land
  • Local governments and planning authorities

Terms To Know

State Land Oversight Board
A new board created to oversee the activities of the Arizona State Land Department.
Conceptual land use plans
Plans made by ASLD for future uses of state lands in urban areas.

Limits and Unknowns

  • The bill does not specify how much it will cost to run the State Land Oversight Board.
  • It is unclear what specific changes will be made to existing laws about state land management.
  • There are no details on how ASLD will enforce new rules regarding lease extensions and special permits.

Amendments

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

Plain English: Amendment explanation prepared by Sawyer Bessler 3/3/2026 Bill Number: S.B.

  • Amendment explanation prepared by Sawyer Bessler 3/3/2026 Bill Number: S.B.
  • 1336 Dunn Floor Amendment Reference to: NATURAL RESOURCES Committee Amendment Amendment drafted by: Leg.
  • Council F LOOR AMENDMENT EXPLANATION 1.
  • Removes the Arizona State Land Department Temporary Oversight Committee and the related requirements, powers and duties.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Natural Resources Second Regular Session S.B.

  • Fifty-seventh Legislature Natural Resources Second Regular Session S.B.
  • 1336 PROPOSED SENATE AMENDMENTS TO S.B.
  • 1336 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Section 37-102, Arizona Revised Statutes, is amended to 2 read: 3 37-102.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Adopted 2

  • The official amendment file could not be read automatically during the last sync, so only the official amendment metadata is shown right now.

Bill History

  1. 2026-03-31 House

    House minority caucus

  2. 2026-03-31 House

    House majority caucus

  3. 2026-03-30 House

    House consent calendar

  4. 2026-03-17 House

    House second read

  5. 2026-03-16 House

    House Rules: C&P

  6. 2026-03-16 House

    House Natural Resources, Energy & Water: DP

  7. 2026-03-16 House

    House first read

  8. 2026-03-10 House

    Transmitted to House

  9. 2026-03-10 Senate

    Senate third read passed

  10. 2026-03-03 Senate

    Senate committee of the whole

  11. 2026-02-23 Senate

    Senate minority caucus

  12. 2026-02-23 Senate

    Senate majority caucus

  13. 2026-01-27 Senate

    Senate second read

  14. 2026-01-26 Senate

    Senate Rules: PFC

  15. 2026-01-26 Senate

    Senate Natural Resources: DPA

  16. 2026-01-26 Senate

    Senate first read

Official Summary Text

SB1336 - 572R - Senate Fact Sheet

Assigned to
NR����������������������������������������������������������������������������������������������������������������� AS
PASSED BY COW

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.B. 1336

state land
department; continuation; oversight

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 licensing
time frames, conceptual land use plans and five-year disposition plans.
Establishes the State Land Oversight Board (Oversight Board) and outlines
membership, powers and duties.

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.

Repeals the ASLD on January 1, 2031.

3.

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)

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

c)

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

d)

collaborate with the State Natural Resource Conservation Board (Board)
or the applicable Natural Resource Conservation District (NRCD), or soil and
water conservation district as designated by the Board, on the review of any proposed
federal conservation-related permit on nonurban state lands;

e)

not include terms in the leases for state lands that are more stringent
than statute; and

f)

protect
and uphold the due process rights of a person that does business with the ASLD
consistent with the regulatory bill of rights.

4.

Allows a person, in addition to submitting a complaint to the Office of
Ombudsman-Citizens Aide, to file a complaint with the Attorney General alleging
a violation of the outlined due process rights.

5.

Extends the lease automatically for three years if the ASLD does not
take action on a lease renewal within 90 days.

6.

Requires a holdover tenant whose lease is terminated by the ASLD to
receive 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.

7.

Requires the ASLD to reimburse the lessee or permittee for the outlined
improvements with monies from the State Land Trust.

8.

Requires the prescribed notice of expiration to include:

a)

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

b)

the
ASLDs intent to renew or terminate the lease on expiration and an explanation
of the ASLD's renewal or termination process; and

c)

the justification
for the Commissioner's decision.

9.

Requires the Commissioner to create conceptual land use plans for all
state trust land in Arizona, rather than only for all urban state trust lands
and other state trust lands the Commissioner considers to be appropriate.

10.

Requires
the Commissioner to prioritize the creation of conceptual land use plans to the
extent possible to correlate with the rate of population growth in rural areas
in Arizona.

11.

Removes
the use of the ASLD Staff from the statutorily prescribed methods in which the
Commissioner may create conceptual land use plans.

12.

Requires
the Commissioner to create five-year disposition plans for each county.

13.

Requires
the Commissioner, for the five-year disposition plans, to:

a)

review
and update each five-year disposition plan every three years, rather than every
year;

b)

hire
third-party contractors; and

c)

include
residential development within the service area of a municipal provider.

14.

Requires
the Board to:

a)

maintain
authority over conservation permitting on state trust lands; and

b)

collaborate
with the ASLD for any conservation or environmental permitting located on state
trust land.

15.

Allows
the Board to delegate the authority over conservation permitting on state trust
lands to the applicable NRCD as determined by the Board.

16.

Requires
the Board to immediately forward any conservation or environmental permitting
issued or received by the Board or the applicable district to the ASLD.

17.

Applies
the statutorily prescribed requirements relating to administrative procedures
to the ASLD.

18.

Requires
the ASLD to adopt rules, by July 1, 2028, to establish appropriate time frames
for action on any application or other comparable request that an applicant or
instrument holder submits to the ASLD as prescribed in the statutes relating to
licensing time frames.

19.

Requires
the ASLD, by July 1, 2027, to:

a)

open
a rulemaking docket to adopt licensing time frames; and

b)

conduct
a study to determine the appropriate licensing time frames for licenses issued
by the ASLD.

20.

Subjects
the ASLD, if the ASLD fails to act within any time frame prescribed by the
licensing time frames adopted by rulemaking, to the statutorily prescribed
penalties relating to an agency's failure to comply with overall time frames.

21.

Requires
the ASLD to maintain a list on its website of all license applications and
actions taken on the applications.

22.

Repeals
the prescribed licensing time frames rulemaking requirements on January 1,
2029.

Oversight Board

23.

Establishes the Oversight Board to provide oversight of the ASLD and to
perform other prescribed duties.

24.

Prescribes
the Oversight Board membership as follows:

a)

four persons from a county with a population of 400,000 persons or more;

b)

four persons from a county with a population of fewer than 400,000
persons;

c)

one person who specializes in finance or statewide land use needs; and

d)

the following advisory members without the power to vote but who may
attend executive sessions of the Oversight Board:

i.

the President of the Senate or a designee;

ii.

the Speaker of the House of Representatives (House) or a designee;

iii.

the Minority Leader of the Senate or a designee;

iv.

the Minority Leader of the House or a designee;

v.

the Commissioner or a designee;

vi.

the Director of the Arizona Department of Environmental Quality or a
designee;

vii.

the
Director of ADWR or a designee;

viii.

the Director of the Arizona Department of Administration or a designee;
and

ix.

the Chief Executive Officer of the Arizona Commerce Authority or a
designee.

25.

Specifies
that for the Oversight Board members from counties with specified population
sizes:

a)

no
three appointed members may be residents of the same county;

b)

at
least one appointed member must be a resident of each county with a population
of more than 400,000 persons; and

c)

the
members must have substantial knowledge and experience with land management or
finance, including public finance.

26.

Requires
the Governor to appoint the following Oversight Board members from a joint list
of at least five qualified applicants submitted by the President of the Senate
and the Speaker of the House:

a)

two
members from a county with a population of 400,000 persons or more;

b)

two
members from a county with a population of fewer than 400,000 persons; and

c)

the
member who specializes in finance or statewide land management.

27.

Requires
the President of the Senate and the Minority Leader of the Senate to appoint
the following Oversight Board members:

a)

one
member from a county with a population of 400,000 persons or more; and

b)

one
member from a county of fewer than 400,000 persons.

28.

Requires
the President of the Senate and Minority Leader of the Senate to alternate the
terms in which the outlined members are appointed.

29.

Requires
the Speaker of the House and the Minority Leader of the House to appoint the
following Oversight Board members:

a)

one
member from a county with a population of 400,000 persons or more; and

b)

one
member from a county of fewer than 400,000 persons.

30.

Requires
the Speaker of the House and Minority Leader of the House to alternate the
terms in which the outlined members are appointed.

31.

Specifies
that the Oversight Board members with voting powers serve five-year terms of
office beginning and ending on the third Monday in January and are eligible for
reappointment.

32.

Allows
an Oversight Board member to be removed only for cause by the person who then
holds the same office as the person who appointed that member.

33.

Requires
the Oversight Board members with voting powers to be residents of Arizona for
at least two years.

34.

Requires
the Oversight Board members with voting powers to be appointed:

a)

for
the initial term and every third term after:

i.

first, by the President of the Senate and Minority Leader of the Senate;

ii.

second, by the Governor; and

iii.

third, by the Speaker of the House and Minority Leader of the House;

b)

for
the second term and every third term after:

i.

first, by the Governor;

ii.

second, by the Speaker of the House and Minority Leader of the House;
and

iii.

third, by the President of the Senate and Minority Leader of the Senate;
and

c)

for
the third term and every third term after:

i.

first, by the Speaker of the House and Minority Leader of the House;

ii.

second; by the President of the Senate and Minority Leader of the
Senate; and

iii.

third; by the Governor.

35.

Requires
the appropriate appointing authority to make all subsequent appointments.

36.

Terminates:

a)

on
January 31, 2030, the initial terms of the three Oversight Board members from a
county with a population of 400,000 persons or more; and

b)

on
January 31, 2032, the initial terms of the three Oversight Board members from a
county with a population of fewer than 400,000 persons and one member who
specializes in finance or statewide water needs.

37.

Requires
the prospective Oversight Board member, before the member is appointed, to
submit a full set of fingerprints to the Governor for the purpose of obtaining
a state and federal criminal records check.

38.

Requires
the Governor to submit the fingerprints to the Arizona Department of Public
Safety (AZDPS).

39.

Allows
the AZDPS to exchange the outlined fingerprint data with the Federal Bureau of
Investigation.

40.

Requires
the Oversight Board to elect a chairperson of the Board from among the voting
members.

41.

Allows
the Oversight Board to:

a)

hold
public meetings to receive testimony and stakeholder input regarding the ASLDs
processes; and

b)

confer
with subject matter experts on any matters relating to managing, leasing,
developing and disposing state lands.

42.

Requires
the Oversight Board to:

a)

have
broad discretion on overseeing the ASLDs adoption of rules and policies;

b)

review
rulemaking, internal timelines and procedural efficiencies that affect
applicants, lessees and purchasers of state trust lands;

c)

collaborate
with the ASLD to identify opportunities for improved transparency,
predictability and accountability relating to the ASLD's processes;

d)

ensure
that the ASLD complies with the laws of Arizona;

e)

on
request of the chairperson of the Senate Natural Resources COR and the House
Natural Resources, Energy and Water COR or their successor CORs, provide
testimony on the operations and oversight of the ASLD; and

f)

by
June 1, 2027, and each year thereafter, submit a report of the Oversight
Board's findings and recommendations to the chairpersons of the Senate Natural
Resources COR and House Natural Resources, Energy and Water COR, or their
successor CORs, the Governor, the President of the Senate and the Speaker of
the House and provide a copy to the Arizona Secretary of State.

43.

Allows
the chairperson of the Oversight Board to appoint subcommittees as necessary.

44.

Allows
the Oversight Board to request assistance from representatives of other state
agencies.

45.

Requires
the ASLD to provide technical assistance to the Oversight Board.

46.

Specifies
that Oversight Board members serve without compensation but are eligible for
reimbursement of expenses.

47.

Prohibits
an Oversight Board member who is otherwise employed as a public officer from
receiving reimbursement if it is otherwise prohibited by law.

48.

Determines
that a majority of the Oversight Board voting members constitutes a quorum for
the purpose of an official meeting for conducting business.

49.

Determines
that an affirmative vote of a majority of the voting members present at an
official meeting is sufficient for the Oversight Board to take any action.

50.

Requires
the Oversight Board to keep and maintain a complete and accurate record of all
Board proceedings.

51.

Allows
the Oversight Board and any subcommittees, except advisory nonvoting members,
to attend executive sessions of the Oversight Board.

52.

Subjects
the Oversight Board, its subcommittees and the officers and any employees of
the Board to statutory requirements relating to conflicts of interest.

53.

Disqualifies
a person, except for employees of the State of Arizona or a political
subdivision of Arizona, from appointment to the Oversight Board if a person or
the person's relative:

a)

is
employed by or participates in the management of a business entity or other
organization that leases or buys state lands;

b)

owns,
controls or has, directly or indirectly, more than a 10 percent interest in a
business entity or other organization that buys or leases state lands;

c)

uses
or receives a substantial amount of tangible goods, services or monies from the
ASLD; or

d)

has
a personal financial interest in the conveyance of state lands.

54.

Stipulates
that the person or the person's relative does not have a personal financial
interest if the person or the person's relative is a member of a class of
persons and it reasonably appears that a majority of the total membership of
that class is to be affected by the action.

55.

Prohibits
a person, except for employees of the State of Arizona or a political
subdivision of Arizona, from being:

a)

a
voting member of the Oversight Board or act as the general counsel to the
Oversight Board or authority if the person is required to register as a
lobbyist; and

b)

an
Oversight Board member or an employee of the Oversight Board if the person or
person's relative is an officer, employee or paid consultant for a water users'
association or trade association.

56.

Prohibits
an employee of a political subdivision of Arizona who serves on the Oversight
Board from participating in the consideration of or a vote concerning any
conveyance that will directly benefit the political subdivision.

57.

Requires
the Oversight Board to adopt written policies, procedures and guidelines for
standards of conduct, including a gift policy, for Oversight Board members and
for officers and employees of the Oversight Board.

58.

Deems
that the Oversight Board is a public body that is subject to the statutory
requirements relating to records.

59.

Requires
the Oversight Board to operate on the state fiscal year.

60.

Requires
all state agencies to cooperate with the Oversight Board and make available
data pertaining to the functions of the Oversight Board as requested by the
Board.

Miscellaneous

61.

Modifies the definition of
license
to include a license issued by
the ASLD that is required solely for revenue purposes.

62.

Defines

trade association
as any cooperative, association or business
organization, whether or not incorporated under federal or state law, that is
designed to assist its members, industry or profession in advocating for or
promoting their common interest.

63.

Contains
a purpose statement, statement of legislative intent and a statement of
legislative findings.

64.

Makes
technical and conforming changes.

65.

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

Amendments Adopted by
Committee

1.

Requires the ASLD to maintain a list on its website of all license
applications and actions taken on the applications.

2.

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)

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

c)

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

d)

collaborate
with the Board or the applicable NRCD, or soil and water conservation district
as designated by the Board, on the review of any conservation-related permit on
nonurban state lands.

3.

Extends the lease automatically for three years if the ASLD does not
take action on a lease renewal within 90 days.

4.

Requires a holdover tenant whose lease is terminated by the ASLD to
receive 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.

5.

Requires the ASLD to reimburse the lessee or permittee for the outlined improvements
with monies from the State Land Trust.

6.

Requires the prescribed notice of expiration to include specified
information.

7.

Requires the ASLD to alert the Board, or the applicable NRCD or soil and
water conservation district as designated by the Board, of any environmental
permitting on state lands within the jurisdiction of a NRCD or soil and water
conservation district.

8.

Outlines requirements for the Commission relating to conceptual land use
plans.

9.

Removes the use of the ASLD staff from the statutorily prescribed
methods in which the Commissioner may create conceptual land use plans.

10.

Requires
the Commissioner to create five-year disposition plans for each county, as
prescribed.

11.

Requires the Board to:

a)

maintain authority over conservation permitting on state trust lands;
and

b)

collaborate
with the ASLD for any conservation or environmental permitting located on state
trust land.

12.

Allows
the Board to delegate the authority over conservation permitting on state trust
lands to the applicable NRCD as determined by the Board.

13.

Requires
the Board to immediately forward any conservation or environmental permitting
issued or received by the Board or the applicable district to the ASLD.

14.

Modifies
the Oversight Committee membership and membership requirements.

15.

Outlines
additional powers and duties of the Oversight Committee.

16.

Removes
the requirement that the Oversight Committee oversee the ASLD's adoption of certain
rules and policies.

17.

Requires
the Oversight Committee's prescribed report on its findings and recommendations
to be submitted annually by June 1, rather than by June 1, 2027.

18.

Prescribes Oversight Committee term requirements.

19.

Requires
the Oversight Committee members to elect a chairperson each year.

20.

Requires
the ASLD to adopt rules for licensing time frames by July 1, 2028.

21.

Requires the ASLD, by July 1, 2027, to:

a)

open
a rulemaking docket to adopt licensing time frames; and

b)

conduct
a study to determine the appropriate licensing time frames for licenses issued
by the ASLD.

22.

Repeals
the licensing time frame rulemaking requirements on January 1, 2029.

23.

Repeals
the Oversight Committee on January 1, 2031, rather than January 1, 2028.

24.

Adds
statements of legislative intent and legislative findings.

25.

Makes
technical and conforming changes.

Amendments Adopted by
Committee of the Whole

1.

Removes the Arizona State Land Department Temporary Oversight Committee
and the related requirements, powers and duties.

2.

Establishes the Oversight Board to provide oversight of the ASLD and to
perform other prescribed duties.

3.

Outlines the membership and the terms of office of the Oversight Board.

4.

Prescribes the Oversight Boards powers and duties.

5.

Requires the Oversight Board to keep and maintain a complete and
accurate record of all board proceedings and subjects the Oversight Board to
the statutory requirements relating to public meetings and conflicts of
interest.

6.

Prohibits an employee of a political subdivision of Arizona who serves
on the Oversight Board from participating in the consideration of or a vote
concerning any conveyance that will directly benefit the political subdivision.

7.

Requires the Oversight Board to adopt written policies, procedures and
guidelines for standards of conduct, including a gift policy, for Oversight
Board members and for officers and employees of the Oversight Board.

8.

Deems that the Oversight Board is a public body that is subject to the
statutory requirements relating to records.

9.

Requires all state agencies to cooperate with the Oversight Board and
make available data pertaining to the functions of the Oversight Board as
requested by the Oversight Board.

10.

Removes
the requirement that the Commissioner consult with the applicable natural
resources conservation district when creating conceptual land use plans.

11.

Specifies
that the prescribed requirement for the ASLD to immediately reimburse a
holdover tenant whose lease is terminated by the ASLD is notwithstanding any
other law.

12.

Specifies
that the prescribed requirement for the ASLD to, on the conclusion of a lease
or special land use permit, reimburse the lessee or permittee for outlined
improvements with monies from the state land trust is notwithstanding any other
law.

13.

Removes
the requirement that the ASLD alert the applicable NRCD or soil and water
conservation district of any environmental permitting on state lands within the
jurisdiction of an NRCD or soil and water conservation district.

14.

Specifies
that the requirement for the ASLD to collaborate with the Board or the
applicable NRCD or soil and water conservation district be on the review of any
proposed federal conservation-related permit on nonurban state lands, rather
than on the review of any conservation-related permit on nonurban state lands.

15.

Requires
the ASLD, to the extent possible, to:

a)

not
include terms in the leases for state lands that are more stringent than
statute; and

b)

protect
and uphold the due process rights of a person that does business with the ASLD
consistent with the regulatory bill of rights.

16.

Allows
a person, in addition to submitting a complaint to the Office of
Ombudsman-Citizens Aide, to file a complaint with the Attorney General alleging
a violation of the outlined due process rights.

Senate Action

NR���� 2/17/26���� DPA ��� 6-2-0

Prepared by Senate Research

March 4, 2026

SB/hk

Current Bill Text

Read the full stored bill text
SB1336 - 572R - S Ver

Senate Engrossed

state land
department; continuation; oversight

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1336

AN
ACT

Amending section 37-102, Arizona
Revised Statutes; amending title 37, chapter 1, article 1, Arizona Revised
Statutes, by adding sections 37-111 and 37-112; amending sections
37-331.03, 41-1001 and 41-1002, 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;
amending section 41-6011, Arizona Revised Statutes; 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. 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. Adopt rules to establish
appropriate time frames for action on any application or other comparable
request that an applicant or instrument holder submits to the department
as prescribed in title 41, chapter 6, article 7.1. The
department shall MAINTAIN a list on the department's website of all license
applications and actions taken on the applications. If the
department fails to act within any time frame established pursuant to this
paragraph, the department is subject to the same penalties prescribed in
section 41-1077.

6. Restrict the use of a lease or
permit holdover provision to not more than ninety days. if the
department does not take action on a lease renewal within ninety days, the
lease automatically extends for three years and ninety days after the initial
date of expiration. Notwithstanding any other law,
A
holdover tenant whose lease is terminated by the department shall receive
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.

7. 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.
Notwithstanding any other law,
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
) NOT
LESS THAN SIX MONTHS before the EXPIRATION OF the 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 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 ON EXPIRATION AND AN
EXPLANATION OF THE DEPARTMENT'S RENEWAL OR TERMINATION PROCESS.

(
iii
) THE
JUSTIFICATION FOR THE commissioner's decision PURSUANT TO SECTION 37-133.

8. RESTRICT the use of special land
use permits to ONLY temporaRY land uses that do not have a dedicaTED LAND use
lease or perMit.

9. Collaborate with the state natural
resource conservation board established by section 41-6011, or the
applicable natural resource conservation district or soil and water
conservation district as designated by the board, on the review of any proposed
federal
conservation-related permit on nonurban
state lands.

10. For the lease of the state lands,
not include terms in the lease that are more stringent than statute.

11. Protect and uphold the due
process rights of a person that does business with the department consistent
with the regulatory bill of rights prescribed in section 41-1001.01. In
ADDITION to submitting a complaint to the office of ombudsman-citizens
aide as prescribed in section 41-1001.01, subsection a, PARAGRAPH 19, a
person may file a complaint with the attorney general alleging a violation of
this paragraph.� The attorney general shall investigate any complaints and
issue a written order outlining any FINDINGS.

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. 2. Title 37, chapter 1, article 1, Arizona
Revised Statutes, is amended by adding sections 37-111 and 37-112, to
read:

START_STATUTE
37-111.

State land oversight board; membership; fingerprinting; conduct
of office; definition

A. The state land oversight board is
established to provide broad oversight of the state land department and to
perform other duties as prescribed by law.

B. The board consists of the
following members:

1. Four persons from a county with a
population of four hundred thousand persons or more.

2. Four persons from a county with a
population of less than four hundred thousand persons.

3. One person who specializes in
finance or statewide land use needs.

4. The following as advisory members
without the power to vote but who may attend executive sessions of the board:

(
a
) The
president of the senate or the president's designee.

(
b
) The speaker
of the house of representatives or the speaker's designee.

(
c
) The
minority leader of the senate or the minority leader's designee.

(
d
) The
minority leader of the house of representatives or the minority leader's
designee.

(
e
) The
commissioner or the commissioner's designee.

(
f
) The
director of the department of environmental quality or the director's designee.

(
g
) The
director of the DEPARTMENT of water resources or the director's designee.

(
h
) The
director of the department of administration or the director's designee.

(
i
) The chief
executive officer of the Arizona commerce authority or the chief executive
officer's designee.

C. The following apply to the members
appointed pursuant to subsection B, paragraphs 1 and 2 of this section:

1. No three appointed members of the
board may be residents of the same county, and at least one appointed member of
the board shall be a resident of each county with a population of four hundred
thousand persons or more.

2. Members must have a substantial
knowledge of and experience with land management or finance, including public
finance.

D. The following apply to all members
appointed pursuant to subsection B, paragraphs 1, 2 and 3 of this section:

1. The governor shall appoint two of
the members from a county with a population of four hundred thousand persons or
more, shall appoint two of the members from a county with a population of less
than four hundred thousand persons and shall appoint the member who specializes
in finance or statewide land management from a joint list of at least five
qualified applicants submitted by the president of the senate and the speaker
of the house of representatives.

2. The president of the senate and
the minority leader of the senate shall appoint one of the members from a
county with a population of four hundred thousand persons or more and one of
the members from a county with a population of less than four hundred thousand
persons. The president of the senate and the minority leader of the
senate shall alternate the terms in which these members are appointed.

3. The speaker of the house of
representatives and the minority leader of the house of representatives shall
appoint one of the members from a county with a population of four hundred
thousand persons or more and one of the members from a county with a population
of less than four hundred thousand persons. The speaker of the house
of representatives and the minority leader of the house of representatives
shall alternate the terms in which these members are appointed.

4. Appointed members serve five-year
terms of office beginning and ending on the third Monday in January and are
eligible for reappointment. A member may be removed only for cause
by the person who then holds the same office as the person who appointed that
member.

5. Members shall be residents of this
state for at least two years.

6. The order in which the members are
appointed pursuant to subsection B, paragraphs 1 and 2 of this section is:

(
a
) For the
initial term and every third term thereafter, the president of the senate and
the minority leader of the senate shall appoint first, the governor shall
appoint second and the speaker of the house of representatives and the minority
leader of the house of representatives shall appoint third.

(
b
) For the
second term and every third term thereafter, the governor shall appoint first,
the speaker of the house of representatives and the minority leader of the
house of representatives shall appoint second and the president of the senate and
the minority leader of the senate shall appoint third.

(
c
) For the
third term and every third term thereafter, the speaker of the house of
representatives and the minority leader of the house of representatives shall
appoint first, the president of the senate and the minority leader of the
senate shall appoint second and the governor shall appoint third.

E. Before a member is appointed to
the board pursuant to subsection C or D of this section, the prospective member
shall submit a full set of fingerprints to the governor for the purpose of
obtaining a state and federal criminal records check pursuant to section
41-1750 and Public Law 92-544. The governor shall submit the
fingerprints to the department of public safety. The department of
public safety may exchange this fingerprint data with the federal bureau of
investigation.

F. The board shall elect a
chairperson of the board from among the voting members. The
chairperson may appoint subcommittees as necessary.

G. The board may request assistance
from representatives of other state agencies. The department shall
provide technical assistance to the board.

H. Board members serve without
compensation but are eligible for reimbursement of expenses pursuant to title
38, chapter 4, article 2. A board member who is otherwise employed
as a public officer may not receive reimbursement pursuant to this subsection
if it is otherwise prohibited by law.

I. A majority of the voting members
constitutes a quorum for the purpose of an official meeting for conducting
business. An affirmative vote of a majority of the voting members
present at an official meeting is sufficient for the board to take any action.

J. The board shall keep and maintain
a complete and accurate record of all board proceedings.

K. The board and any subcommittees
are subject to title 38, chapter 3, article 3.1, relating to public meetings,
except advisory nonvoting members of the board may attend executive sessions of
the board.

L. The board, its subcommittees and
the officers and any employees of the board are subject to title 38, chapter 3,
article 8, relating to conflicts of interest. In addition to the
conflict of interest provisions in title 38, chapter 3, article 8, and except
for employees of this state or a political subdivision of this state, the
following apply:

1. A person is not eligible for
appointment to the board if the person or the person's relative meets any of
the following criteria:

(
a
) Is employed
by or participates in the management of a business entity or other organization
that leases or buys state lands.

(
b
) Owns,
controls or has, directly or indirectly, more than a ten percent interest in a
business entity or other organization that buys or leases state lands.

(
c
) Uses or
receives a substantial amount of tangible goods, services or monies from the
department.

(
d
) Has a
personal financial interest in the conveyance of state lands. The
person or the person's relative does not have a personal financial interest if
the person or the person's relative is a member of a class of persons and it reasonably
appears that a majority of the total membership of that class is to be affected
by the action.

2. A person may not be a voting
member of the board or act as the general counsel to the board or authority if
the person is required to register as a lobbyist.

3. A person may not be a member of
the board or an employee of the board if the person or the person's relative is
an officer, employee or paid consultant for a water users' association or trade
association.

M. An employee of a political
subdivision of this state who serves on the board may not participate in the
consideration of or a vote concerning any conveyance that will directly benefit
the political subdivision.

N. The board shall adopt written
policies, procedures and guidelines for standards of conduct, including a gift
policy, for members of the board and for officers and employees of the board.

O. The board is a public body that is
subject to title 38, chapter 3, article 3. The board shall operate
on the state fiscal year.

P. All state agencies shall cooperate
with the board and make available data pertaining to the functions of the board
as requested by the board.

Q. For the purposes of this section,
"trade association" means any cooperative, association or business
organization, whether or not incorporated under federal or state law, that is
designed to assist its members, industry or profession in advocating for or
promoting their common interest.
END_STATUTE

START_STATUTE
37-112.

State land oversight board; powers and duties; annual report

A. The state land oversight board
may:

1. Hold public meetings to receive testimony
and stakeholder input regarding the state land department's processes.

2. Confer with subject matter experts
on any matters relating to managing, leasing, developing and disposing state
lands.

B. The board shall:

1. Have broad discretion on
overseeing the department's adoption of rules and policies.

2. Review rulemaking, internal
timelines and procedural efficiencies that affect applicants, lessees and
purchasers of state trust lands.

3. Collaborate with the department to
identify opportunities for improved transparency, predictability and
accountability relating to the state land department's processes.

4. Ensure the department complies
with the laws of this state.

5. On request of the chairperson 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, provide testimony on the operations
and oversight of the department.

6. On or before June 1, 2027 and each
year thereafter, submit a report of the board's findings and recommendations to
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, the governor, the
president of the senate and the speaker of the house of representatives and
shall provide a copy of this report to the secretary of state.
END_STATUTE

Sec. 3. Section 37-331.03, Arizona Revised
Statutes, is amended to read:

START_STATUTE
37-331.03.

Conceptual land use plans;
five year state trust land disposition plans; definitions

A. The commissioner shall create 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
and rural
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 plan at least every ten
years.

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 each
conceptual land use
plan,
and revision of the
conceptual land use
plan, to the
urban land planning oversight committee for review.

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. The commissioner shall create five year
disposition plans for all state trust land in this state
for
each county
, based at a minimum on market demand, anticipated
transportation and infrastructure availability. The commissioner
shall:

1. Review and update each
five year
disposition
plan
each year

every three years or
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. Hire third-party
contractors.

4. include residential DEVELOPMENT
WITHIN the service area of a municipal provider as defined in section 45-561.

3.

5.
Submit
each
five year disposition
plan and revision to the urban
land planning oversight committee to ensure conformity with the conceptual
land use
plan under subsection A
of this section
.

E. 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

S
ec. 4. Section 41-1001, Arizona Revised Statutes, is amended to read:

START_STATUTE
41-1001.

Definitions

In this chapter, unless the context otherwise requires:

1. "Agency" means any board, commission,
department
, including the state land department
, officer
or other administrative unit of this state, including the agency head and one
or more members of the agency head or agency employees or other persons
directly or indirectly purporting to act on behalf or under the authority of
the agency head, whether created under the Constitution of Arizona or by
enactment of the legislature. Agency does not include the
legislature, the courts or the governor. Agency does not include a
political subdivision of this state or any of the administrative units of a
political subdivision, but does include any board, commission, department,
officer or other administrative unit created or appointed by joint or concerted
action of an agency and one or more political subdivisions of this state or any
of their units. To the extent an administrative unit purports to exercise
authority subject to this chapter, an administrative unit otherwise qualifying
as an agency must be treated as a separate agency even if the administrative
unit is located within or subordinate to another agency.

2. "Appealable agency action" has the same
meaning prescribed in section 41-1092.

3. "Audit" means an audit, investigation
or inspection pursuant to title 23, chapter 2 or 4.

4. "Code" means the Arizona administrative
code, which is published pursuant to section 41-1011.

5. "Committee" means the administrative
rules oversight committee.

6. "Contested case" means any proceeding,
including rate making, except rate making pursuant to article XV, Constitution
of Arizona, price fixing and licensing, in which the legal rights, duties or
privileges of a party are required or permitted by law, other than this
chapter, to be determined by an agency after an opportunity for an
administrative hearing.

7. "Council" means the governor's
regulatory review council.

8. "Delegation agreement" means an
agreement between an agency and a political subdivision that authorizes the
political subdivision to exercise functions, powers or duties conferred on the
delegating agency by a provision of law. Delegation agreement does
not include intergovernmental agreements entered into pursuant to title 11,
chapter 7, article 3.

9. "Emergency rule" means a rule that is
made pursuant to section 41-1026.

10. "Fee" means a charge prescribed by an
agency for an inspection or for obtaining a license.

11. "Final rule" means any rule filed with
the secretary of state and made pursuant to an exemption from this chapter in
section 41-1005, made pursuant to section 41-1026, approved by the
council pursuant to section 41-1052 or 41-1053 or approved by the
attorney general pursuant to section 41-1044. For purposes of
judicial review, final rule includes expedited rules pursuant to section 41-1027.

12. "General permit" means a regulatory
permit, license or agency authorization that is for facilities, activities or
practices in a class that are substantially similar in nature and that is
issued or granted by an agency to a qualified applicant to conduct identified
operations or activities if the applicant meets the applicable requirements of
the general permit, that requires less information than an individual or
traditional permit, license or authorization and that does not require a public
hearing.

13. "License"
:

(
a
)
Includes
the whole or part of any agency permit, certificate, approval, registration,
charter or similar form of permission required by law
.
, but

(
b
) Except for
a license issued by the state land department,
does not include a
license required solely for revenue purposes.

14. "Licensing" includes the agency
process respecting the grant, denial, renewal, revocation, suspension,
annulment, withdrawal, change, reduction, modification or amendment of a
license, including an existing permit, certificate, approval, registration,
charter or similar form of permission, approval or authorization obtained from
an agency by the holder of a license.

15. "Licensing decision" means any action
by an agency to grant or deny any request for permission, approval or
authorization issued in response to any request from an applicant for a license
or to the holder of a license to exercise authority within the scope of the
license.

16. "Party" means each person or agency
named or admitted as a party or properly seeking and entitled as of right to be
admitted as a party.

17. "Person" means an individual,
partnership, corporation, association, governmental subdivision or unit of a
governmental subdivision, a public or private organization of any character or
another agency.

18. "Preamble" means:

(a) For any rulemaking subject to this chapter, a
statement accompanying the rule that includes:

(i) Reference to the specific statutory authority
for the rule.

(ii) The name and address of agency personnel with
whom persons may communicate regarding the rule.

(iii) An explanation of the rule, including the
agency's reasons for initiating the rulemaking.

(iv) A reference to any study relevant to the rule
that the agency reviewed and either proposes to rely on in its evaluation of or
justification for the rule or proposes not to rely on in its evaluation of or
justification for the rule, where the public may obtain or review each study,
all data underlying each study and any analysis of each study and other
supporting material.

(v) The economic, small business and consumer impact
summary, or in the case of a proposed rule, a preliminary summary and a
solicitation of input on the accuracy of the summary.

(vi) A showing of good cause why the rule is
necessary to promote a statewide interest if the rule will diminish a previous
grant of authority of a political subdivision of this state.

(vii) Such other matters as are prescribed by
statute and that are applicable to the specific agency or to any specific rule
or class of rules.

(b) In addition to the information set forth in
subdivision (a) of this paragraph, for a proposed rule, the preamble also shall
include a list of all previous notices appearing in the register addressing the
proposed rule, a statement of the time, place and nature of the proceedings for
the making, amendment or repeal of the rule and where, when and how persons may
request an oral proceeding on the proposed rule if the notice does not provide
for one.

(c) In addition to the information set forth in
subdivision (a) of this paragraph, for an expedited rule, the preamble also
shall include a statement of the time, place and nature of the proceedings for
the making, amendment or repeal of the rule and an explanation of why expedited
proceedings are justified.

(d) For a final rule, except an emergency rule, the
preamble also shall include, in addition to the information set forth in
subdivision (a), the following information:

(i) A list of all previous notices appearing in the
register addressing the final rule.

(ii) A description of the changes between the
proposed rules, including supplemental notices and final rules.

(iii) A summary of the comments made regarding the
rule and the agency response to them.

(iv) A summary of the council's action on the rule.

(v) A statement of the rule's effective date.

(e) In addition to the information set forth in
subdivision (a) of this paragraph, for an emergency rule, the preamble also
shall include an explanation of the situation justifying the rule being made as
an emergency rule, the date of the attorney general's approval of the rule and
a statement of the emergency rule's effective date.

19. "Provision of law" means the whole or
a part of the federal or state constitution, or of any federal or state
statute, rule of court, executive order or rule of an administrative agency.

20. "Register" means the Arizona
administrative register, which is:

(a) This state's official publication of rulemaking
notices that are filed with the office of secretary of state.

(b) Published pursuant to section 41-1011.

21. "Rule" means an agency statement of
general applicability that implements, interprets or prescribes law or policy,
or describes the procedure or practice requirements of an agency. Rule
includes prescribing fees or the amendment or repeal of a prior rule but does
not include intraagency memoranda that are not delegation agreements.

22. "Rulemaking" means the process to make
a new rule or amend, repeal or renumber a rule.

23. "Small business" means a concern,
including its affiliates, which is independently owned and operated, which is
not dominant in its field and which employs fewer than one hundred full-time
employees or which had gross annual receipts of less than four million dollars
in its last fiscal year. For purposes of a specific rule, an agency may define
small business to include more persons if it finds that such a definition is
necessary to adapt the rule to the needs and problems of small businesses and
organizations.

24. "Substantive policy statement" means a
written expression which informs the general public of an agency's current
approach to, or opinion of, the requirements of the federal or state
constitution, federal or state statute, administrative rule or regulation, or
final judgment of a court of competent jurisdiction, including, where
appropriate, the agency's current practice, procedure or method of action based
upon that approach or opinion. A substantive policy statement is advisory
only. A substantive policy statement does not include internal
procedural documents which only affect the internal procedures of the agency
and does not impose additional requirements or penalties on regulated parties,
confidential information or rules made in accordance with this chapter.
END_STATUTE

Sec. 5. Section 41-1002, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1002.

Applicability
and relation to other law; preapplication authorization; definitions

A. This
article and articles 2 through 5 of this chapter apply to all agencies and all
proceedings not expressly exempted.

B. This
chapter creates only procedural rights and imposes only procedural
duties. They are in addition to those created and imposed by other
statutes. To the extent that any other statute would diminish a
right created or duty imposed by this chapter, the other statute is superseded
by this chapter, unless the other statute expressly provides otherwise.

C. An
agency may grant procedural rights to persons in addition to those conferred by
this chapter so long as rights conferred on other persons by any provision of
law are not substantially prejudiced.

D. Unless
specifically authorized by statute, an agency shall avoid duplication of other
laws that do not enhance regulatory clarity and shall avoid dual permitting to
the extent practicable.

E. Unless
specifically authorized by statute, an agency may not require preapplication
authorization or require preapplication conferences as a requirement to filing
an application that is otherwise allowed by statute. If preapplication procedures
are required by statute, an agency shall consider the preapplication
requirements or procedures as the beginning of the licensing time frame for the
purposes of article 7.1 of this chapter. An agency may offer
voluntary preapplication procedures without specific statutory authority if the
agency communicates to an applicant that the preapplication procedures are not
mandatory. If preapplication procedures are offered by an agency,
the agency shall consider the costs and delays that may be imposed on an
applicant and shall seek to minimize those impacts.

F. Unless
authorized by federal or state law, an agency may not take any action that
materially increases the regulatory burdens on a business unless there is a
threat to the health, safety and welfare of the public that has not been
addressed by legislation or industry regulation within the proposed regulated
field.

G. Unless
authorized by federal or state law, an agency may not apply a regulation to a
qualified marketplace platform if the purpose of that regulation is to regulate
a business that provides goods or services directly to the customer.

h. This chapter applies
to the state land department.

H.

i.
For
the purposes of this section:

1. "Qualified
marketplace contractor" means any person or organization, including an
individual, corporation, limited liability company, partnership, sole
proprietor
proprietorship
or other entity,
that enters into an agreement with a qualified marketplace platform to use the
qualified marketplace platform's digital platform to provide goods or services
to third-party individuals or entities seeking those services.

2. "Qualified
marketplace platform" means an organization, including a corporation,
limited liability company, partnership, sole
proprietor
proprietorship
or
any
other entity, that
operates a digital platform that facilitates the provision of goods or services
by qualified marketplace contractors to third-party individuals or entities
seeking those goods or services.

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. Section 41-6011, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-6011.

State natural resource conservation board; membership; powers and
duties

A. The state natural resource conservation board is
established consisting of the following members who are residents of this
state:

1. Eight members who are from different geographic
natural resource areas as defined by a statewide organization that represents
all natural resource conservation districts in this state. Four
members shall be appointed by the governor, two members shall be appointed by
the president of the senate and two members shall be appointed by the speaker
of the house of representatives. The members appointed pursuant to
this paragraph shall meet the following criteria:

(a) At least six of the members must be elected
supervisors for a natural resource conservation district.

(b) Not more than two members may be appointed
supervisors from a soil and water conservation district.

(c) At least

one
member shall be a member of the executive board of a statewide organization
that represents all natural resource conservation districts in this state.

2. Three members who are appointed by the governor
from any of the following and who serve at the pleasure of the governor:

(a) The state land commissioner or state land
commissioner's designee.

(b) The director of the Arizona department of
agriculture or the director's designee.

(c) The state forester or the state forester's
designee.

(d) The director of the Arizona game and fish
department or the director's designee.

B. The board shall elect a chairperson from among
its members. The chairperson must be a member who represents a natural resource
conservation district or soil and water conservation district.

C. The initial members of the board who are
appointed pursuant to subsection A, paragraph 1 of this section shall assign
themselves by lot to terms of one, two and three years in office. All
subsequent members serve three-year terms. The chairperson of the board
shall notify the governor's office of these terms.

D. If a member's term as a supervisor expires while
serving on the board, that member may not serve out the member's term as a
board member. A replacement shall be appointed from the same geographic
natural

resource area to fulfill
the remainder of that member's term.

E. Board members shall be reimbursed for expenses as
prescribed by title 38, chapter 4, article 2 while attending board meetings.

F. The board may appoint or contract for

an administrative officer, a secretary and such
other assistants as may be required, assign their duties, define their powers
and determine the amount of bond required of any assistant entrusted with
monies or property. The compensation of all such assistants shall be
determined pursuant to section 38-611.

G. The
board shall adopt a seal, which shall be judicially noticed, and shall hold
public hearings, keep records of all proceedings and annual records of district
operations, adopt orders and rules and perform other acts as are necessary to
carry out this chapter.

H. The board shall:

1. Offer appropriate assistance to the supervisors
of districts in carrying out their powers and programs.

2. Keep the supervisors of each district informed of
the activities and experiences of other districts and of relevant information
from other states, and facilitate cooperation and interchange of advice,
experience and program opportunities between districts.

3. Coordinate the programs of the several districts
insofar as possible by advice and consultation.

4. Require the supervisors of each district to file
with the board annually any audits and the records of the operations of the
district for the preceding year in the form and detail as the board prescribes.

5. Secure the cooperation and assistance of the
United States, its agencies and agencies of this state, in the work of
districts as local units of state government with special expertise concerning
land, soil, water and natural resources management within the boundaries of the
district, as the board deems for the best interest of the state.

6. Disseminate information throughout the state
concerning the activities and program of districts.

7. Meet at least quarterly to receive updates from
the board's administrative officer regarding any relevant issue or matter
necessary to carry out this chapter, provide guidance to the administrative
officer and vote on any matters requiring a decision by the board.

8. Assist a district when the district is
cooperating or coordinating with a federal agency.

9. Assist districts with developing conservation
action or district-wide plans.

10. Adopt administrative rules that the board deems
necessary and proper to carry out this chapter.

11. Maintain AUTHORITY over
conservation permitting on state trust lands. The BOARD may delegate this
AUTHORITY to the applicable district as determined by the board.

12. Collaborate with the state land
department for any conservation or environmental permitting located on state
trust land. The board shall IMMEDIATELY forward any conservation or
ENVIRONMENTAL permitting issued or RECEIVED by the board or the APPLICABLE
DISTRICT to the state land DEPARTMENT.

I. The board may remove a district supervisor from
office if the board determines, after reasonable notice and an impartial
hearing, that the supervisor is guilty of misfeasance, malfeasance or
nonfeasance in office. For the purposes of this subsection,
"nonfeasance" includes the failure to attend three consecutive
meetings of district supervisors without reasonable excuse.

J. The board, pursuant to chapter 4, article 4 of
this title, may contract for or employ professional and administrative
services. Contracts for professional services are exempt from chapter 23 of
this title.
END_STATUTE

Sec. 9.
Rulemaking; delayed repeal

A. On
or before July 1, 2028, the state land department shall adopt rules for
licensing time frames pursuant to section 37-102, subsection H, paragraph
5, Arizona Revised Statutes, as added by this act.

B. On or before July 1,
2027, the state land department shall do both of the following:

1. Open a rulemaking docket
to adopt licensing time frames pursuant to section 37-102, subsection H,
paragraph 5, Arizona Revised Statutes, as added by this act.

2. Conduct a study to
determine the appropriate licensing time frames for licenses issued by the
department.

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

Sec. 10.
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. 11.
Legislative intent

While the legislature has granted
discretionary authority to the state land commissioner, the legislature intends
that the state land department's processes and procedures be transparent and
consistent with the manner that the legislature has prescribed for the
disposition of state trust lands.

Sec. 12.
Legislative
findings

The legislature finds that for years
the state land department's lack of implementation of the statutory scheme has
created a significant loss of revenue to the state trust land beneficiaries,
has led to a lack of organization and streamlined processes and has perpetuated
a poor morale within the department.

Sec. 13.
Initial terms of
members of state land oversight board

A. Notwithstanding section
37-111, Arizona Revised Statutes, as added by this act, the initial terms
of members are:

1. For three members from a
county with a population of four hundred thousand persons or more, three terms
ending January 31, 2030.

2. For three members from a
county with a population of less than four hundred thousand persons and one
member who specializes in finance or statewide water needs, four terms ending
January 31, 2032.

B. For the initial term,
the president of the senate and the minority leader of the senate shall appoint
first, the governor shall appoint second and the speaker of the house of
representatives and the minority leader of the house of representatives shall
appoint third.

C. The appropriate
appointing authority shall make all subsequent appointments as prescribed by
statute.

Sec. 14.
Retroactivity

Section 41-3026.05, Arizona
Revised Statutes, as repealed by this act, and section 41-3030.19,
Arizona Revised Statutes, as added by this act, apply retroactively to from and
after July 1, 2026.