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SB1336 - 572R - H Ver
House Engrossed
Senate Bill
state land
department; continuation; oversight
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1336
AN
ACT
Amending title 27, chapter 2, article 1,
Arizona revised statutes, by adding section 27-201.01; repealing section
27-231, Arizona revised statutes; amending section 27-239, Arizona revised
statutes; amending title 27, chapter 2, article 3, Arizona revised statutes, by
adding section 27-240; amending section 27-251, Arizona revised statutes;
amending title 27, chapter 2, article 4, Arizona revised statutes, by adding
section 27-251.01; amending sections 27-252 and 27-253, Arizona revised
statutes; providing for transferring and renumbering; amending section 27-254,
Arizona revised statutes, as transferred and renumbered; amending sections
27-255 and 27-256, Arizona revised statutes; amending title 27, chapter 2,
article 4, Arizona revised statutes, by adding section 27-257; repealing section
27-271, Arizona revised statutes; amending sections 37-102, 37-231 and 37-233,
Arizona revised statutes; amending title 37, chapter 2, article 5, Arizona
revised statutes, by adding section 37-325; amending sections 37-331.03 and
37-527, 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 44-301, 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. Title 27, chapter 2, article 1,
Arizona Revised Statutes, is amended by adding section 27-201.01, to read:
START_STATUTE
27-201.01.
Definitions
In this chapter, unless the context otherwise
requires:
1. "Commissioner" means the
state land commissioner.
2. "Commodity
type":
(
a
) Includes
any of the following:
(
i
) Minerals.
(
ii
) Common variety mineral.
(
iii
) Oil as defined in section 27-501.
(
iv
) Gas as defined in section 27-501.
(
v
) Geothermal
resources as defined in section 27-651.
(
vi
) Any other
tangible natural product of the LAND, not including native plants, timber or
water, that may be explored and produced in the future.
(
b
) Except for
heat and other forms of energy associated with geothermal resources as defined
in section 27-651, does not include nontangible natural products of the
land, including wind, solar or electricity generated by nontangible natural
products of the land.
3. "common variety
mineral":
(
a
) Includes:
(
i
) a Deposit
of petrified wood, stone, pumice, pumicite, cinders, decomposed granite, sand,
gravel, boulders, common clay, fill dirt and waste rock.
(
ii
) a Deposit
that, although the deposits may have value for use in trade, manufacturing,
construction, landscape and decorative rock industries, does not possess a
distinct, special economic value for those uses beyond the normal uses of the
deposit.
(
iii
) a
Material that is used as road base material, riprap, ballast, borrow, fill,
facing stone, landscape or ornamental uses and other similar uses.
(
b
) Does not
include limestone that is suitable for use in producing cement, metallurgical
or chemical grade limestone or gypsum.
4. "Mineral" means a
metallic ore mineral or industrial mineral other than a common variety mineral.
5. "Production lease" means
a lease for the purposes of the extraction, sale or processing or any other
processes of a commodity type.
6. "State land" means any
land that is owned or held in trust, or otherwise, by this state, including
leased school or university land.
END_STATUTE
Sec. 2.
Repeal
Section 27-231, Arizona Revised
Statutes, is repealed.
Sec. 3. Section 27-239, Arizona Revised Statutes, is amended to read:
START_STATUTE
27-239.
Inspections, investigations and audits
A. The
state
land
commissioner or the commissioner's authorized representative may
enter, and the lessee shall maintain access to, the state land held under a
mineral
production
lease at reasonable
times to inspect the workings, improvements and other facilities used to
extract or sever minerals or common variety minerals
, as defined
in section 27-271,
from state lands.
B. The commissioner or the commissioner's authorized
representative may enter at reasonable times to:
1. Obtain factual data or access to records
pertinent to mineral production and required to be kept under the terms of the
lease.
2. Otherwise ascertain compliance with law and the
terms of the lease.
C. Inspections, investigations and audits under
subsection A
of this section
shall be on reasonable
notice to the lessee unless reasonable grounds exist to believe that notice
would frustrate the enforcement of law or the terms of the lease. The
commissioner may, and if required by law shall, apply for and obtain warrants
for entry and inspection.
D. The commissioner may require a lessee to appear
at reasonable times and on reasonable notice at the commissioner's office and
produce such records and information as are specified in the notice to
determine compliance with the terms of the lease.
E. The commissioner shall provide to the lessee a
written report of each inspection, investigation and audit under this section.
F. Tax records and trade secrets, as defined in
section 23-401, obtained under this section are confidential.
END_STATUTE
Sec. 4. Title
27, chapter 2, article 3, Arizona Revised Statutes, is amended by adding
section 27-240, to read:
START_STATUTE
27-240.
State trust lands; production leases; renewals; indexed royalties
A. Notwithstanding
any other law, the commissioner may renew an existing production lease without
public auction if the commissioner determines all of the following:
1. The lessee is in COMPLIANCE with
the terms of the production lease.
2. the production lease is in
production or a person will put the production lease in production WITHIN two
years after the date of production lease renewal.
3. The renewal is for a term that is
allowed by the laws of this state.
b. a
production lease that the commissioner renews PURSUANT to this section shall
provide for a royalty rate that is adjusted PURSUANT to a market-based
indexing mechanism that the commissioner adopts. The indexing
mechanism may include any of the following:
1. producer price indices.
2. regional or STATEWIDE construction
aggregate price INDICES.
3. Other objective INDICATORS that
are RECOGNIZED by the industry.
c. The commissioner shall review the
indexed royalty rate for each renewed production lease not more than once every
five years.
END_STATUTE
Sec. 5.
Heading change
The article heading of title 27,
chapter 2, article 4, Arizona Revised Statutes, is changed from "
mineral exploration permits and mineral leases"
to
"Exploration PERMITS".
Sec. 6. Section 27-251, Arizona Revised
Statutes, is amended to read:
START_STATUTE
27-251.
Application for exploration permit
A. Any natural person
who is
over
eighteen years of age and any other person qualified to transact business in
this state may apply to the
state land
commissioner for
a mineral
an
exploration permit on
the
state land
in
, including
state land reserved minerals that are subject to section 37-231,
subsection E. each Application for an exploration permit on state land in
one
or more of the rectangular subdivisions of twenty acres, more or less, or lots,
in any
one section
identified contiguous
sections
of the public land survey
may not exceed more
than nine sections
.
Such
The exploration permit
application shall be in writing and signed by the applicant, or an authorized
agent or attorney for the applicant, and shall contain the name and address of
the applicant, a description according to the public land survey of the state
land for which the applicant seeks a
mineral exploration
permit
,
and such other information as the
commissioner may prescribe by rule. The
application
applicant
shall
be filed
file the exploration permit application
with the state land
department and shall
be accompanied by payment to the department
of a filing fee
accompany the application with a filing
fee payable to the state land department
as prescribed pursuant to
section 37-107.
The commissioner shall stamp
each
application
meeting
that meets
the requirements of this section
shall
be stamped by the department
with the time and date
it
that the application
is filed
with the
state land
department.�
The
an
application
for
AN EXPLORATION permit for a specific commodity type
shall have priority
over any other application for a
mineral
exploration
permit involving the same state land
which
that
may be filed with the
state land
department subsequent to
such time and date, and
such
land
shall be
that is subject to the exploration permit application for a
specific type is
deemed withdrawn as long as the application is pending.
B. Not less than thirty days
nor
but not
more than forty-five days
from
after
the filing of the application with the
state land
department, provided there is no prior application
for
a mineral
an
exploration permit
for the same COMMODITY type
involving the same state land then
pending before the
state land
department, or if such
prior
exploration
application
is then pending but is subsequently
cancelled
canceled
, not more than thirty
days after it is
cancelled
canceled
, the
state land
department shall
mail to the applicant at the address shown on the application a written notice
designating the state land that is described in the
exploration
application and that, at the time the application was
filed with the
state land
department, was open to
application, the amount of rental required to be paid for the
mineral
exploration permit as herein provided, and whether a bond will be required
under the provisions of section 27-255 as a condition to
issuance
of such
issuing the exploration
permit. If,
within thirty days after
the
mailing
of such
the
notice, the applicant pays to the
state
land
department as rental for the permit the amount of
two
dollars
$2
per acre for each acre of state land
designated in the notice and files with the
state land
department
the bond, if any, required under section 27-255, and if the commissioner
finds that issuing the permit is in the best interest of the trust, the
commissioner shall issue to the applicant
a mineral
an
exploration permit for the state land designated in the
notice. The commissioner may deny the application for any of the
following reasons:
1. The application was not made in good faith.
2. The proposed exploration or possible future
mining activities would not be the highest and best use of the trust lands.
3. The value and income potential of surrounding
trust lands would be adversely affected and the benefit from proposed
exploration and future mining activity cannot reasonably be expected to be
greater than the diminished value to those surrounding trust lands.
4. The proposed operations would violate applicable
state or federal law.
5. The commissioner determines that the proposed
exploration activities or possible future mining activities will create a
liability to
the
this
state greater
than the income from the proposed operations.
C. During the period
such mineral
that an
exploration permit is in effect
,
no person except
only
the permittee
and the authorized agents and employees of the permittee shall be entitled to
explore for
minerals
the specific commodity
type
on the state land covered by the permit. If the
applicant fails to make the payment or furnish the bond within the period of
thirty days, the application shall be deemed cancelled and of no further
effect.
END_STATUTE
Sec. 7. Title
27, chapter 2, article 4, Arizona Revised Statutes, is amended by adding
section 27-251.01, to read:
START_STATUTE
27-251.01.
Definition of exploration
In this article,
unless the context otherwise requires, "exploration" means activity
conducted on state land, including activity on state reserved minerals, that is
covered by an exploration permit issued PURSUANT to this article to determine
the existence or nonexistence of a commodity type, including geological,
geochemical or geophysical surveys conducted by qualified experts and drilling,
sampling and excavating, together with the costs of assay and metallurgical
testing of samples from state land.
END_STATUTE
Sec. 8. Section 27-252, Arizona Revised
Statutes, is amended to read:
START_STATUTE
27-252.
Terms of exploration permit
A.
Every mineral
an
exploration permit shall be for a term of
one
year from
five years after
the date of issuance,
subject to
renewals
the eligibility for exploration permit renewal for one additional five-year
period
as provided in this article for an aggregate of not
to exceed five
more than ten
years
from such
after the
date
,
of issuance
and shall give to the
permittee the rights, subject
only
to
the terms and conditions, as follows:
1. During the period
the
an exploration
permit is in force
and effect, the permittee shall have the exclusive right to explore for
minerals
a specific commodity type
within
the state land covered by the permit and to apply for and obtain a
mineral
production
lease or leases to the
state
land.
2.
During the period the exploration
permit is in force and effect,
the permittee shall have those surface
rights necessary for exploration
for mineral
on the state
land covered by the permit
,
but may remove from the
state
land
only that amount of
mineral
commodity type
that is
required by the permittee for sampling, assay and metallurgical
testing purposes.
3. The permittee shall have the right of ingress to
and egress from the
state
land
covered by the permit across other state lands but only along routes first
approved by the commissioner.
4. The permittee shall be liable to and shall
compensate the owner
and
or any state
lessee
of the surface of the state land covered by the permit, or across which the
permittee exercises the right of ingress and egress, for any loss to such owner
and lessee from damage or destruction caused by the permittee or the
permittee's agents or employees to grasses, forage, crops or improvements
upon
on
such state land.
5. The permit shall terminate automatically as of
the end of
any annual
the initial five-year
period from and after the date of issuance
unless
and is subject to renewal for an exploration permit as provided by
this article.
�During
such annual
the initial five-year
period
, or any
renewal period,
the permittee
expended
must expend
in exploration for
valuable mineral deposits
the specific commodity
type
on the state land covered by the permit not less than the amount
per acre provided in this article or paid to the
state lAND
department a sum equal thereto, and
prior to
before
expiration of
such annual
the initial five-year
period shall have filed with the
state lAND
department
an application for renewal for the ensuing annual period, and
an
affidavit showing such expenditure, together with such other proof in support
thereof as the commissioner by rule may prescribe. The amount to be
so expended or paid to the
state lAND
department during
each of the first two
annual periods in which such
years that the
permit may be in effect
shall be
not less than ten dollars
MUST BE AT LEAST $10
for
each acre of state land covered by the permit at the commencement of
such annual
THE Five-year
period,
and the amount to be so expended or paid to the
state land
department during each of the last three
annual periods in which
such
years that THE
permit may be in
effect
shall be not less than twenty dollars
MUST BE AT LEAST $20
for each acre of state land covered by the
permit at the commencement of
such annual period
THE Five-year perIOD
.
Prior to
Before
termination of any
such annual
five-year permit
period, the permittee may, by
instrument in writing filed with the
state lAND
department, release from the permit the acreage covered thereby and contained
within one or more rectangular subdivisions of twenty acres, more or less, or
lots, according to the lines of the public land surveys.
6. When a permittee has an interest in one or more
contiguous properties
for which he or she
that
the person
holds
a mineral
an
exploration permit,
such
the
permittee may group such
permits and expend the sum required by this article under a common plan of
development on one or more of the properties for the benefit of all
if the total area of such contiguous property does not exceed three
miles on a side
.
7.
Upon
oN
termination of the
mineral
exploration permit, other than
by issuance of a
mineral
lease, the permittee shall submit
to the
state land
department the following information,
which shall not include any chemical analysis or other identification of
minerals
commodity
types
, concerning any drill holes or wells drilled on state land covered
by the permit:
(a) Total depth.
(b) Lithologies and depths of lithologic boundaries
encountered in the hole.
(c) Logs of surveys made of the hole
,
including gamma ray, resistivity, caliper and deviation surveys.
8. Drill hole information shall be confidential for
one year after termination of the permit, and such period of confidentiality
shall be extended for an additional year
upon
on
the request of the permittee.
9. Any expenditures in exploration for
valuable mineral deposits
a specific commodity
type
made in excess of the requirements of this article during any
annual period of the permit may be credited against expenditure requirements of
successive
annual periods
years
of
the permit.
10. In lieu of making expenditures in exploration,
the permittee may elect to make a money payment of the amounts required for
expenditures in exploration for
valuable mineral deposits
a specific commodity type
to the
state lAND
department.
B.
Upon
oN
any partial or total relinquishment
,
or
on
the cancellation or
expiration of the permit other than by issuance of a
mineral
production
lease, the permittee shall fill any holes,
ditches or other excavations, as may be required by the commissioner, and, as
far as reasonably possible, reclaim the surface to its former condition.
C. As used in this article,
"exploration" means activity conducted upon the state land covered by
an exploration permit to determine the existence or nonexistence of a valuable
mineral deposit, including but not limited to geological, geochemical or
geophysical surveys conducted by qualified experts, and drilling, sampling and
excavation, together with the costs of assay and metallurgical testing of
samples from such land.
END_STATUTE
Sec. 9. Section 27-253, Arizona Revised
Statutes, is amended to read:
START_STATUTE
27-253.
Renewal of exploration permit
The holder of an exploration permit
may,
prior to
within sixty days before the
expiration of the
annual
initial five-year
EXPLORATION permit
period
for which such permit was
issued, or prior to expiration of the annual period for which such permit was
renewed
, file with the
state lAND
department an
application for renewal of
such
the
exploration
permit for the ensuing
annual
five-year
period.
No such
An
application for renewal
shall
MAY NOT
be filed, nor shall the
exploration
permit be renewed, for more than
four successive annual periods
following
one additional five-year permit
period after
expiration of the
annual
initial five-year
period
for which such
that the
permit was issued.
No
rental shall be payable for the first annual period for which a permit may be
renewed.
The rental for each
of the three
subsequent
annual periods following the first annual period
permit period
for which a permit may be renewed shall be
one dollar
$1
for each acre of state land
for which the application for renewal is filed.
Upon
on
receipt by the
state
land
department of the application for renewal, and the affidavit of
expenditure of the required amount in exploration during the
current
annual
initial five-year
period or
a
IN LIEU of the
sum
equal
thereto
, together with such other proof in support of such expenditure
as the commissioner by regulation may prescribe, and payment to the
state land
department of the rental for the ensuing annual
period, all
prior to
before
the
expiration of the current
annual
initial five-year
period, the commissioner shall issue a
renewal of the
exploration
permit
for the ensuing
annual
five-year
period.
END_STATUTE
Sec. 10.
Transfer and renumber
Section
27-254, Arizona Revised Statutes, is transferred and renumbered for
placement in title 27, chapter 2, article 3, Arizona Revised Statutes, as a new
section 27-231.
Sec. 11. Section 27-255, Arizona Revised
Statutes, is amended to read:
START_STATUTE
27-255.
Bonds
A. The commissioner, in
his
the commissioner's
discretion,
may require the applicant for
a mineral
an
exploration permit,
prior to
issuance of
such
in conjunction with issuing the exploration
permit, to file with the commissioner a surety bond, in form and amount and
with surety approved by the commissioner, conditioned
upon
on
the prompt payment to the
owner and lessee of the surface of state land to be covered by the permit, or
across which the permittee exercises the right of ingress or egress, for any loss
to such owner or lessee from damage or destruction caused by the permittee or
his or its agents or employees to grasses, forage, crops and improvements
upon
on
such state lands.
B. The commissioner may also require the permittee
to furnish a bond, in a reasonable amount to be fixed by the commissioner,
conditioned that the permittee will guarantee restoration of the surface of the
state
land described in the
mineral
exploration permit to its former condition
upon
on
any
partial or total relinquishment of such
state
lands, or the cancellation or expiration of the permit
other than by issuance of a
mineral
lease.
C. On default, the commissioner may use the proceeds
of the bond for the purposes described in subsection A or B
of
this section
.
END_STATUTE
Sec. 12. Section 27-256, Arizona Revised
Statutes, is amended to read:
START_STATUTE
27-256.
Assignment of exploration permits
Any
mineral
exploration permit issued
hereunder
PURSUANT to this article
may be
assigned in whole or in part by the permittee
.
, but such
An
exploration permit
assignment
shall not become
is not
effective unless and until
the permittee
files
a copy
thereof is filed
of the
exploration permit assignment
with the
state land
department
and
is approved by
the commissioner
approves the assignment
.� The assignee shall succeed to all of
the rights and shall be subject to obligations of the permittee under the
mineral
exploration permit.
END_STATUTE
Sec. 13. Title 27, chapter 2, article 4, Arizona Revised Statutes, is amended by adding section
27-257, to read:
START_STATUTE
27-257.
Applicability
A mineral permit
or common variety right of entry permit that the state land department issued
before the effective date of this section may do either of the following at the
choice of the permittee:
1. Continue in effect until the
initial expiration date stated in the existing exploration permit.
2. Be surrendered at any time before
the initial expiration date stated in the exploration permit and REMAIn subject
to replacement with a five-year permit period as provided in this
article.
END_STATUTE
Sec. 14.
Repeal
Section 27-271, Arizona Revised
Statutes, is repealed.
Sec. 15. 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
primary oversight
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.�
if
the matter involves a federal land withdrawal or reservation or the federal
government's acquisition of nonfederally controlled land, the department shall
cooperate and seek the advice of the president of the senate and the speaker of
the house of representatives on the communication.
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.
i. the department shall:
1. unless mutually
agreed on by the department and the lessee, Restrict the use of a holdover
provision for a lease or permit to not more than ninety days.
2. unless mutually
agreed on by the department and the lessee, RESTRICT the use of special land
use permits to ONLY temporaRY land uses that do not have a dedicaTED LAND use
lease or perMit.� The DEPARTMENT shall issue a special land use permit only for
a set time frame enumerated in the special land use permit. The department may
not cancel a special land use permit unless the special land use permittee
violates the terms of the special land use permit.
3. Use publicly posted criteria that
are created by the department and posted on the department's website and
determine the administrative completeness of all applications that the
department receives pursuant to state law.� An application is subject to
withdrawal if the applicant does not respond to a written and electronic notice
of deficiency or request for additional information within three months after
the notice or request. after the three-month period, the
department shall issue a final notice that states the application is WITHDRAWN
if the applicant does not respond in thirty days.
4. Make available to the public on
the department's website all boilerplate lease, patent, addendum, application
and other instrument conditions and obligations that the department requires in
a lease, patent, addendum or other instrument for the use, POSSESSION,
occupancy, lease or conveyance of state lands. The department may not include
any term, condition or obligation in an instrument for the use, POSSESSION,
occupancy, lease or conveyance of state lands that is not authorized by statute,
that is more stringent than statute.
I.
j.
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.
k.
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.
l.
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.
m.
The
military training route map shall be made available to the public.
M.
n
. 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.
o.
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.
p.
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.
q.
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.
r.
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.
s.
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.
t.
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.
u.
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.
v.
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.
w.
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. 16. Section 37-231, Arizona Revised
Statutes, is amended to read:
START_STATUTE
37-231.
State lands subject to sale; rights reserved in lands sold; state
lands not subject to sale; development agreements
A. All state lands,
except as otherwise provided for in this title, including all improvements made
or placed on or connected with state lands, shall be subject to appraisal and
sale as provided in this title.
B. Any person over eighteen years of age is entitled
to purchase any of the state lands.
C. All sales, grants, deeds or patents to any state
lands sold between July 9, 1954 and March 18, 1968 shall be subject to and
shall contain a reservation to
the
this
state of an undivided one-sixteenth of all oil, gases and other
hydrocarbon substances, coal or stone, metals, minerals, fossils and fertilizer
of every name and description, together with all uranium, all thorium, or any
other material
which
that
is or may
be determined by the laws of
the
this
state or the United States or decisions of courts to be peculiarly essential to
the production of fissionable materials, whether or not of commercial value,
subject to the following:
1. For the purpose of promoting the sale of state
lands and the more active cooperation of the owner of the soil, and to
facilitate the development of its mineral resources, the state constitutes the
purchaser of the land its agent for the purposes specified in this section, and
in consideration hereof, relinquishes to and vests in the purchaser of the
state land an undivided fifteen-sixteenths of all oil, gas and the value
thereof
which
that
may be
upon
on
or within any state land purchased
after July 9, 1954 and before March 18, 1968.
2. The purchaser of the soil may sell or lease to
any person, firm or corporation the oil and gas and other minerals
which
that
may be on or in the land,
upon
on
terms and conditions the purchaser
and the owner deem best, subject to the provisions and reservations of this
section, but the lessee or purchaser shall pay to
the
this
state an undivided one-sixteenth of the mineral
produced or the value of the mineral produced at the well or mine as determined
by the
state land department.
3.
Upon
On
discovery
of oil and gas in paying quantities on land adjoining state lands purchased
under the authority of this section, the purchaser or the purchaser's lessee
shall drill and produce all wells necessary to protect the land so purchased
from drainage by wells on lands in which
the
this
state has no royalty interest, or has a lesser royalty
interest. If the purchaser or the purchaser's lessee fails to protect against
such drainage,
the
this
state,
acting through the
state land
department,
may,
three months after demand therefor in writing by the
state land
department to such purchaser and the purchaser's lessee,
may
enter
upon
on
such lands and drill all wells necessary to protect
the
this
state against such drainage.
4. The interest reserved by
the
this
state in any state lands sold may be committed to a
drilling unit or cooperative or unit plans of development and operation of oil
and gas pools with the United States, its agencies and its and their lessees
and permittees, and with private owners and persons holding oil and gas leases
on private lands or on state lands. The
state land
department
may
, insofar as the interest of
the
this
state may be affected thereby,
may
join
in and consent to any such plan on behalf of
the
this
state. Such agreements shall provide for the
equitable division on an agreed basis of the oil and gas produced from the
unit, but
no
such
an
agreement shall
not
relieve any operator from the obligation to develop
reasonably the lands and leases as a whole committed thereto. The
royalties to which
the
this
state is
entitled on production from land purchased under this section shall be computed
only on that part of the production allocated to such tract. When
the agreements made under this section provide for the return of gas to a
formation underlying the unit, they may provide that no royalties are required
to be paid on the gas so returned.
D. State lands known to contain oil, gases and other
hydrocarbon substances, geothermal resources, coal or stone, metals, minerals,
fossils and fertilizer of every name and description, in paying quantities, or
uranium, thorium or any other material which is or may be determined by the
laws of
the
this
state the United States or decisions of court to be peculiarly essential to the
production of fissionable materials, whether or not of commercial value, and
state lands adjoining lands
upon
on
which there are producing oil, gas or geothermal wells or
adjoining lands known to contain any of such substances in paying quantities,
or uranium, thorium or any other material peculiarly essential to the
production of fissionable materials, whether or not of commercial value, shall
not be sold. The prohibition against sale shall not operate to
prevent the sale of lands known to contain, in paying quantities, common
variety minerals as defined in section
27-271
27-201.01
or to prevent the sale of lands where
the
this
state
does not own such substances, minerals or metals in the lands sought to be
sold.
The provisions of
This subsection shall
not prohibit the sale of such lands located within the exterior boundaries of
an incorporated city or town, in which case the commissioner may offer the land
for sale, provided the land shall be used solely for a public purpose. Such
land shall revert to
the
this
state if it is used other than for a public purpose.
E. Notwithstanding
the provisions of
subsection C of this section, all state lands sold after March 18, 1968 shall
be sold with the reservation that all oil, gas, other hydrocarbon substances,
helium or other substances of a gaseous nature, geothermal resources, coal,
metals, minerals, fossils, fertilizer of every name and description, together
with all uranium, all thorium or any other material
which
that
is or may be determined by
the laws of the United States or of this state, or
by
decisions of court, to be peculiarly essential to the production of fissionable
materials, whether or not of commercial value, and the exclusive right thereto,
on, in, or under such land, shall be and remain and be reserved in and retained
by
the
this
state, regardless of any sale under this section and the issuance of any
certificate of purchase to any purchaser of state lands pursuant to this
section, provided, that the reservation shall not include common variety
minerals as defined in section
27-271
27-201.01
, subject to the following:
1. The
state land
department
shall adopt rules providing for the protection of the patentee or contract
purchaser of state lands, or their successors in interest, and
the
this
state
of
Arizona
, against damage to the lands, livestock, water, crops, or other
tangible improvements on lands held by such patentee or contract purchaser, and
suffered by reason of the use or occupation of such lands by lessees or
permittees engaged in mining and oil, gas and geothermal resource exploration
and development under leases or permits executed by the department. The
state land
department
may
, at any time,
may
require each of its lessees or
permittees to execute a bond in a reasonable principal amount conditioned
upon
on
payment for
all such damages.
2. The mineral rights reserved to
the
this
state in the lands sold
shall be closed to entry and location as a mineral claim or claims, but the
department may issue,
upon
on
application, mineral exploration permits embracing the
reserved mineral rights when such issuance is deemed in the best interest of
the
this
state, provided that the surface owner or owners shall have the first right of
refusal to acquire such mineral exploration permits.
END_STATUTE
Sec. 17. Section 37-233, Arizona Revised
Statutes, is amended to read:
START_STATUTE
37-233.
Sale of state lands; restriction on sale of timber land; expense
of sale; procedures and criteria for sale of state lands by the commissioner
A. On receiving an application, or on the
commissioner's initiative, the
state land
department,
under the rules of the department, may cause state lands to be sold if the sale
of them is not prohibited by law.
B. Land containing timber of a value which in the
opinion of the commissioner should be sold separately from the land shall not
be subject to sale until after the timber is sold.
C. When an application is filed with the department
for selection or sale of land under the laws of this state, and the department
determines that the benefit to be derived from the selection or sale is less
than the expense involved, the commissioner may accept from the applicant an
amount of money sufficient to pay the expense incidental to the selection or
sale. If the applicant fails to secure a lease after selection of
land, or fails to purchase land after bidding for it, the successful lessee or
purchaser shall reimburse the original applicant for all funds so advanced.
D. The department shall ESTABLISH A
PROCEDURE AND the CRITERIA THAT THE COMMISSIONER MUST USE FOR DETERMINING
WHETHER TO INITIATE THE SALE OF STATE LANDS BY THE COMMISSIONER'S OWN
INITIATIVE and shall post the procedure and criteria on the department's
website.
e. The commissioner shall hire a
third-party contractor to appraise and prepare state lands for public
auction. The department may use either department staff or a third-party
contractor to satisfy the notice requirements prescribed in section 37-237.
f. This section does not prohibit the
commissioner from selling state lands that have not been identified for sale in
the five year disposition plan adopted pursuant to section 37-331.03 or
restrict the use of state lands sold pursuant to this section to the uses
identified in the conceptual land use plan approved pursuant to section
37-331.03.
END_STATUTE
Sec.
18. Title
37, chapter 2, article 5, Arizona Revised Statutes, is amended by adding
section 37-325, to read:
START_STATUTE
37-325.
Improvements; lease renewals; holdover leases
THE DEPARTMENT SHALL
DO ALL OF THE FOLLOWING:
1.
WITHIN
NINETY DAYS, APPROVE OR DENY ANY APPLICATION TO PLACE AN IMPROVEMENT ON
leased
STATE LANDS THAT IS CONSISTENT WITH THE LEASE
.
2
.
WITHIN
SIX MONTHS AFTER THE CONCLUSION OF A LEASE
or lease
HOLDOVER, PROVIDE THE LESSEE A REIMBURSEMENT PLAN THAT INCLUDES BOTH OF THE
FOLLOWING:
(
a
)
A VALUATION OF THE
FAIR MARKET VALUE OF ALL
previously approved
IMPROVEMENTS THAT
THE LESSEE MADE TO THE STATE LANDS, AS DETERMINED BY AN INDEPENDENT THIRD-PARTY
VENDOR.
(
b
)
A REASONABLE TIMELINE
IN WHICH THE DEPARTMENT WILL REIMBURSE THE LESSEE FOR THE FAIR MARKET VALUE OF
ALL
previously approved
IMPROVEMENTS THAT
THE LESSEE MADE TO THE STATE LANDS.
3.
NOT
LESS THAN SIX MONTHS BEFORE THE EXPIRATION OF A LEASE
,
PROVIDE TO THE LESSEE A NOTICE. THE NOTICE MUST INCLUDE ALL OF THE FOLLOWING:
(
a
)
ANY PROPOSED RENTAL
INCREASE OR PROPOSED CHANGE TO THE TERMS AND CONDITIONS OF THE LEASE.
(
b
)
THE INTENT OF THE
DEPARTMENT TO RENEW OR TERMINATE THE LEASE.
(
c
)
THE JUSTIFICATION
lease
renewal, permit holdover provisions and a special land
use permit, the
department shall
CEASE USING SPECIAL LAND USE PERMITS FOR
AGRICULTURE LEASES LOCATED IN THE PATH OF DEVELOPMENT. IF THE DEPARTMENT
IDENTIFIES A TEN-YEAR AGRICULTURAL LEASE WITHIN THE PATH OF DEVELOPMENT, THE
DEPARTMENT SHALL PROVIDE THE LESSEE AT LEAST SIX MONTHS NOTICE IN ADVANCE OF
THEIR LEASE EXPIRATION THAT THEIR LEASE WILL BE CONSIDERED FOR RENEWAL, BUT FOR
A TERM LESS THAN TEN YEARS. UPON SUBMISSION OF A RENEWAL APPLICATION BY THE
LESSEE, THE DEPARTMENT WILL WORK WITH THE LESSEE ON A MUTUALLY AGREEABLE
LEASE
TERM.
3. WITHIN SIX MONTHS
AFTER THE CONCLUSION OF A LEASE RENEWAL, A PERMIT HOLDOVER PROVISION OR A
SPECIAL LAND USE PERMIT, PROVIDE THE LESSEE OR PERMITTEE A REIMBURSEMENT PLAN
THAT INCLUDES BOTH OF THE FOLLOWING:
(a) A VALUATION OF
THE FAIR MARKET VALUE OF ALL REASONABLE AND CUSTOMARY IMPROVEMENTS THAT THE
LESSEE OR PERMITTEE MADE TO THE STATE LANDS, AS DETERMINED BY AN INDEPENDENT
THIRD-PARTY VENDOR.
(b) A REASONABLE
TIMELINE IN WHICH THE DEPARTMENT WILL REIMBURSE THE LESSEE OR PERMITTEE FOR THE
FAIR MARKET VALUE OF ALL REASONABLE AND CUSTOMARY IMPROVEMENTS THAT THE LESSEE
OR PERMITTEE MADE TO THE STATE LANDS.
3. NOT LESS THAN SIX
MONTHS BEFORE THE EXPIRATION OF A LEASE RENEWAL OR SPECIAL LAND USE PERMIT,
PROVIDE TO THE LESSEE OR PERMITTEE A NOTICE OF EXPIRATION. THE NOTICE MUST
INCLUDE ALL OF THE FOLLOWING:
(a) ANY PROPOSED
RENTAL INCREASE OR PROPOSED CHANGE TO THE TERMS AND CONDITIONS OF THE LEASE
RENEWAL OR SPECIAL LAND USE PERMIT.
(b) THE INTENT OF THE
DEPARTMENT TO RENEW OR TERMINATE THE LEASE OR SPECIAL LAND USE PERMIT.
(c) THE JUSTIFICATION
FOR THE COMMISSIONER'S DECISION, AS PRESCRIBED IN SECTION 37-133,
TO RENEW OR TERMINATE THE LEASE.
END_STATUTE
Sec. 19. 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
department
shall create
and approve
conceptual
land use plans for all urban state trust land in this state
and
other state trust lands the commissioner considers to be appropriate
. The
commissioner shall:
1. Prioritize the creation of conceptual
land use
plans to the extent possible to:
(a) Correlate with the rate of population growth
in the urban
areas in this state.
(b) Coincide with the production of municipal
general plans under title 9, chapter 4, article 6 and county plans under title
11, chapter 6, article 1.
(
c
) Promote economic
growth in the rural areas of this state.
2. Revise and update each
conceptual
land use
plan at least every ten years.
The COMMISSIONER
shall issue a written order approving each conceptual land use plan and
conceptual land use plan revision.
3. Consult with the city
,
or
town
or
and
county in which the
STATE TRUST
land is located
and with any regional
planning organization regarding integrating the conceptual plan into the
general land use plan of the city, town or county
and the
arizona geological survey
.
4.
Submit
post
each
conceptual land use
plan
,
and revision of
the
a
conceptual land use
plan
, to the urban land
planning oversight committee for review
and the
Commissioner's written approval of each CONCEPTUAL land use plan and conceptual
land use plan revision on the department's website
.
B. On approval of the conceptual land use plan by
the commissioner under this section, the conceptual
lAND USE
plan
is
considered to be
a state general plan for
THE
purposes of this article
and remains effective until revised as prescribed by this section
.
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
and
private consultants.
2. Entering into participation contracts pursuant to
section 37-239.
3. Issuing planning permits for
urban
state
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
a
five year disposition
plans
plan
for all state trust land in
each county in
this state, based at a minimum on market demand,
POTENTIAL economic benefits to rural COMMUNITIES or
anticipated transportation and infrastructure availability. The
commissioner shall
do all of the following
:
1. Review and update each
five year
disposition
plan
each year
for each
county
as
may be
necessary.
2. Consult with the city
,
or
town
or
and
county in which the land is located
and with
any regional planning organization
.
3. post each five year disposition
plan, each five year disposition plan revision and each written order that
adopts or approves a five year disposition plan or five year disposition plan
revision on the department's website to ensure conformity with the conceptual
land use plan under subsection A of this section.
4. Ensure that each five year
disposition plan and five year disposition plan revision conforms with the
conceptual land use plan.
5. consider hiring third-party
contractors to prepare the five year disposition plan.
6. include residential DEVELOPMENT
WITHIN the service area of a municipal provider as defined in section 45-561.
3. Submit each plan and revision to
the urban land planning oversight committee to ensure conformity with the
conceptual plan under subsection A.
7. Issue a written order that
approves and adopts each five year disposition plan and five year disposition
plan revision. On approval of the five year disposition plan, the five year
disposition plan shall remain effective until revised as prescribed by this
section.
E. this section does not prohibit the
conveyance of state lands that are not identified in the five year disposition
plan or CONCEPTUAL land use plan.
E.
f.
For
the purposes of this section:
1. "Conceptual land use plan" means a plan
that is developed for urban state trust land and other state trust lands the
commissioner considers to be appropriate and that identifies:
(a) Appropriate land uses
and rights-of-way
,
including commercial, industrial,
mining, forestry,
agricultural, energy, grazing,
residential and
open space
recreational
uses
that generate revenue
.
(b) Transportation
and energy
corridors and infrastructure requirements.
(c) All natural and artificial constraints and
opportunities associated with the land.
(
d
) Known
and proven mineral resources, including minerals, common variety minerals and
commodity types as defined in section 27-201.01.
2. "Five year disposition plan" means a
plan that identifies the land projected to be sold, leased, reclassified for
conservation purposes, master planned or zoned during the next five years.
END_STATUTE
Sec. 20. Section 37-527, Arizona Revised Statutes, is amended to read:
START_STATUTE
37-527.
Trust land management fund
A. The trust land
management fund is established. The fund consists of
Fees
collected pursuant to section 37-107.�
Up to ten
percent of the annual proceeds of:
1. Each beneficiary's trust lands
granted to this state by the United States.
2. All sales of timber, mineral,
gravel or other natural products or property from each beneficiary's trust
lands granted to this state by the United States.
B. The commissioner shall determine
the percentage of trust land proceeds to be deposited in the fund each fiscal
year. The percentage shall be the same for all beneficiaries. The commissioner
shall notify the joint legislative budget committee and the governor's office
of strategic planning and budgeting of the determination on or before September
1 of the preceding fiscal year.
C.
b.
The
monies in the fund:
1. Are subject to legislative
appropriation. The department may retain an amount of monies from
the fund that is sufficient to pay the department's costs for contracting with
a qualified third-party reviewer as prescribed in section 37-132,
subsection A, paragraph 12.
2. Shall be used
exclusively
to
manage trust lands as prescribed by law
and to prepare state
lands for sale or lease as prescribed by law
.
3. May be used to award department-wide,
PERFORMANCE-based INCENTIVES as PRESCRIBED in section 38-618. For
the purposes of this paragraph, the commissioner may only use monies collected
pursuant to section 37-107, subsection B, paragraph 1 and the
commissioner may not DIVERT more than ten percent of the REVenues collected
PURSUANT to section 37-107, subsection B, Paragraph 1 in any one fiscal
year.
D. The commissioner shall administer the
fund. On notice from the commissioner, the state treasurer shall
invest and divest monies in the fund as provided by section 35-313, and
monies earned from investment shall be credited to the fund.
E. Monies in the fund are exempt from the provisions
of section 35-190 relating to lapsing of appropriations, but if the
balance in the fund at the end of any fiscal year exceeds two times the budget
of the department for the management of trust lands for the next fiscal year,
the excess amount shall be credited proportionately to the several permanent
funds based on the last fiscal year's deposits.
F. This section does not prevent the legislature
from appropriating state general fund monies for the purposes described in this
section.
END_STATUTE
Sec.
21.
Repeal
Section 41-3026.05, Arizona
Revised Statutes, is repealed.
Sec. 22. 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. 23. Section 44-301, Arizona Revised
Statutes, is amended to read:
START_STATUTE
44-301.
Definitions
In this chapter, unless the context otherwise requires:
1. "Airdrop":
(a) Means to issue a unit of a digital asset that is
distributed in a broad, equipped and nondiscretionary manner based on
conditions that are capable of being satisfied by a participant in a blockchain
system as incentive-based rewards, including any of the following:
(i) To users of a digital asset or any blockchain
system to which the digital asset relates.
(ii) For activities that are directly related to the
operation of the blockchain system, including mining, validating, staking and
any other activity that is directly tied to the operation of the blockchain
system.
(iii) To existing holders of another digital asset
in proportion to the total units of the other digital assets that are held by
each person.
(b) Does not include an exchange of more than a nominal
value of cash, property or other assets.
2. "Apparent owner" means a person whose
name appears on the records of a holder as the person entitled to property
held, issued or owing by the holder.
3. "Business association" means any
corporation, joint stock company, investment company, partnership, limited
partnership, registered limited liability partnership, unincorporated
association, joint venture, limited liability company, business trust, trust
company, land bank, safe deposit company, safekeeping depository, financial
organization, insurance company, mutual fund, utility or other business entity,
whether for profit or not for profit, that consists of one or more persons.
4. "De minimis property" means any account
balances of business associations of $50 or less that is payable to another
business association.
5. "Department" means the department of
revenue.
6. "Digital assets" means any of the
following that confers economic, proprietary or access rights or powers:
(a) Virtual currencies.
(b) Cryptocurrencies.
(c) Any other digital-only assets.
7. "Director"
means the director of the department of revenue.
8. "Domicile"
means the state of incorporation of a corporation and the state of the
principal place of business of a holder other than a corporation.
9. "Financial organization" means a
savings and loan association, building and loan association, savings bank,
industrial bank, bank, banking organization or credit union.
10. "Holder" means a person who is
obligated to hold for the account of or deliver or pay to the owner the
property that is subject to this chapter.
11. "Insurance company" means an
association, corporation or fraternal or mutual benefit society or
organization, whether for profit or not for profit, that is engaged in the
business of providing life endowments, annuities or insurance, including accident,
burial, casualty, credit life, contract performance, dental, disability,
fidelity, fire, health, hospitalization, illness, life, malpractice, marine,
mortgage, surety, wage protection and workers' compensation insurance.
12. "Mineral" means gas, oil, coal, sand,
gravel, road material, building stone, chemical raw material, gemstone,
fissionable and nonfissionable ores, colloid and other clay, steam and other
geothermal resource or any other substance defined as a mineral in sections
27-231
27-201.01
and 27-901.
13. "Mineral proceeds" means the amounts
payable for the extraction, production or sale of minerals or, if those amounts
are abandoned, all payments that become payable after the abandonment. Mineral
proceeds include amounts payable:
(a) For the acquisitions and retention of a mineral
lease, including bonuses, royalties, compensatory royalties, shut-in
royalties, minimum royalties and delay rentals.
(b) For the extraction, production or sale of
minerals, including net revenue interest, royalties, overriding royalties,
extraction payments and production payments.
(c) Under an agreement or option, including a joint
operating agreement, unit agreement, pooling agreement and farm out agreement.
14. "Money order" includes an express
money order and a personal money order on which the remitter is the purchaser.
Money order does not include a bank money order or any other instrument that is
sold by a financial organization if the seller has obtained the name and
address of the payee.
15. "Owner" means a person who has a legal
or equitable interest in property that is subject to this chapter or the
person's legal representative. Owner includes a depositor in the case of a
deposit, a beneficiary in the case of a trust other than a deposit in trust and
a creditor, claimant or payee in the case of other property.
16. "Person" means an individual, business
association, financial organization, estate, trust, government, governmental
subdivision, agency or instrumentality or any other legal or commercial entity.
17. "Property":
(a) Means any of the following:
(i) Tangible property pursuant to section 44-303.
(ii) A fixed and certain interest in intangible
property that is held, issued or owed in the course of a holder's business or
by a government, governmental subdivision, agency or instrumentality and all
income or increments from that property.
(iii) Digital assets.
(b) Does not include de minimis
property, property of a person who is maintaining a current business
relationship with the holder, monies collected pursuant to section 46-441
and property that is referred to or evidenced by gift certificates, electronic
gift cards, nonrefundable tickets, certificates evidencing property denominated
in value other than a currency, including prepaid phone cards, frequent flyer
miles, stored value cards and merchandise points.
(c)
(
b
)
Includes property that is
referred to as or evidenced by any of the following:
(i) Money or any check, draft, deposit, interest or
dividend.
(ii) Any credit balance, customer's overpayment,
security deposit, refund, credit memorandum, unpaid wage, unused ticket,
mineral proceeds or unidentified remittance.
(iii) Any stock or other evidence of ownership of an
interest in a business association or financial organization.
(iv) Any bond, debenture, note or other evidence of
indebtedness.
(v) Money deposited to redeem stocks, bonds, coupons
or other securities or to make distributions.
(vi) An amount due and payable under the terms of an
annuity or insurance policy, including policies that provide life, property,
casualty, workers' compensation, health or disability insurance.
(vii) An amount distributable from a trust or
custodial fund that is established under a plan to provide health, welfare,
pension, vacation, severance, retirement, death, stock purchase, profit
sharing, employee savings or supplemental unemployment insurance or similar
benefits.
18. "Record" means information that is
inscribed on a tangible medium or that is stored in any electronic or other
medium and that is retrievable in a perceivable form.
19. "Stake" means committing digital
assets to a blockchain network to participate in the blockchain network's
operations by validating transactions, proposing and attesting to blocks and
securing the network.
20. "State" means a state of the United
States, the District of Columbia, the Commonwealth of Puerto Rico or any
territory or insular possession that is subject to the jurisdiction of the
United States.
21. "Utility" has the same meaning
prescribed in section 40-491.
END_STATUTE
Sec. 24.
Joint legislative ad hoc committee on state land
oversight; membership; delayed repeal
A. The
joint legislative ad hoc committee on state land oversight is established.
B. The president of the
senate and the speaker of the house of representatives shall collaborate to
determine the appropriate number of members and to appoint members and
cochairpersons of the joint legislative ad hoc committee on state land oversight.
C. The senate and the house
of representatives shall provide meeting space and staff support as requested
by the cochairpersons of the joint legislative ad hoc committee on state land
oversight.
D. The state land
department and the state land commissioner shall do both of the following on
request of either of the cochairpersons of the joint legislative ad hoc
committee on state land oversight:
1. Provide any requested
information that is in possession of the state land department.
2. Appear and testify
during a meeting of the committee.
E. This section is repealed
from and after December 31, 2026.
Sec. 25.
Five year
disposition plans; conceptual land use plan; requirements; delayed repeal
A. Within two years after
the effective date of this section, the state land commissioner shall:
1. Complete the five year
disposition plans for state trust lands and update the conceptual land use plan
for state lands pursuant to section 37-331.03, Arizona Revised Statutes,
as amended by this act.
2. Adopt written policies
and procedures for updating:
(a) The five year
disposition plan every five years.
(b) The conceptual land use
plan every ten years.
3. Adopt written policies
and procedures on how the state land department will use the five year
disposition plans and the conceptual land use plan for determining whether
state trust lands are or will be sent to public auction.
4. Provide a copy of the
five year disposition plans and the conceptual land use plan and the policies
and procedures adopted pursuant to this section to the joint legislative ad hoc
committee on state land oversight.
Sec. 26.
Biosolids study
committee; membership; powers and duties; report; delayed repeal
A. The biosolids study
committee is established consisting of the following members:
1. The chairperson of the
senate natural resources committee, or the chairperson's designee, who serves
as the chairperson of the study committee in even-numbered years.
2. The chairperson of the
house of representatives natural resources energy and water committee, or the
chairperson's designee, who serves as the chairperson of the study committee in
odd-numbered years.
3. The director of the
department of environmental quality or the director's designee.
4. The director of the
Arizona department of agriculture or the director's designee.
5. The state land
commissioner or the commissioner's designee.
6. The chairperson of the
Yuma county board of supervisors or the chairperson's designee.
B. The study committee
shall review the use of biosolids for agricultural and other uses in this
state, including on state trust lands, and shall evaluate the policy of
accepting biosolids from other states.
C. The study committee may
hold hearings, conduct fact-finding tours, request data from any political
subdivision of this state and take testimony from witnesses who may assist the
study committee in fulfilling the study committee's responsibilities. All
hearings held by the study committee shall be open to the public.
D. The legislature, the
state land department, the department of environmental quality and the Arizona
department of agriculture shall provide meeting space, staff and support
services to the study committee.
E. Study committee members
are not eligible to receive compensation but are eligible for reimbursement of
expenses pursuant to title 38, chapter 4, article 2, Arizona Revised Statutes.
F. On or before December
31, 2028, the study committee shall submit a report of its findings and
recommendations for rule changes or legislative changes that the committee
determines necessary to 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.
G. This section is repealed
from and after June 30, 2029.
Sec. 27.
Legislative
findings
The legislature finds that:
1. According to the auditor
general's performance audit and sunset review of the state land department
completed on July 9, 2025, the state land department has failed to develop the
statutorily required five year disposition plans since 2016.
2. According to the auditor
general's performance audit and sunset review, all five members of the urban
land planning oversight committee have been vacant since at least 2018.
3. Pursuant to section 37-331.02,
Arizona Revised Statutes, and section 37-331.03, Arizona Revised
Statutes, as amended by this act, the urban land planning oversight committee
serves in an advisory role only and is not required for the commissioner to
fulfill the commissioner's obligations to create a five year disposition plan
pursuant to statute.
4. The fact that the
governor has not appointed any members to the urban land planning oversight
committee has not absolved the commissioner of the commissioner's obligations
to create a five year disposition plan as prescribed in section 37-331.03,
Arizona Revised Statutes, as amended by this act.
5. The creation of a five
year disposition plan is necessary for housing affordability and to ensure the
highest and best use of the land for the beneficiaries of the trust.
6. Minerals and common
variety minerals exist where they are.
7. Minerals and common
variety minerals are needed for all forms of commercial development on state
trust lands, including affordable housing and semiconductor fabrication.
8. Development that occurs
over state trust lands that contain minerals permanently locks away those
minerals, preventing the minerals from being extracted and permanently
foreclosing their revenues from accruing to the trust.
9. Mineral extraction is
subject to reclamation plans that restore the land to usable condition, and
this makes the land usable for other commercial uses when mining is completed.
10. While the legislature
has granted discretionary authority to the state land commissioner, the
legislature intends that the state land department's processes and procedures
are transparent and consistent with the manner that the legislature has
prescribed for the disposition and management of state trust lands.
11. This act is necessary
to ensure the best interest of the state land trust, the state land
beneficiaries and this state.
Sec. 28.
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
in compliance with and as prescribed by law.
Sec. 29.
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.