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SB1618 • 2026

military affairs commission

SB1618 - military affairs commission

Budget Elections
Passed Legislature

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

Sponsor
David Gowan
Last action
2026-03-09
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The official source material does not specify exact amounts or detailed implementation plans for the Commission Fund.

Changes to Military Affairs Commission

This bill changes the membership, duties, and funding criteria for the Military Affairs Commission in Arizona.

What This Bill Does

  • Replaces voting members of the commission with new appointees who have specific backgrounds related to military affairs.
  • Adds two non-voting advisory members from organizations that represent national defense and aerospace industries.
  • Requires the commission to meet at least twice a year instead of annually.
  • Expands the responsibilities of the commission to include studying issues for military families and recommending actions to retain or attract defense-related businesses.

Who It Names or Affects

  • The Governor who appoints members to the Military Affairs Commission.
  • Military installation commanders in Arizona.
  • Local elected officials near military installations.
  • People and organizations involved with national defense and aerospace industries.

Terms To Know

Military Affairs Commission
A group that advises the governor on issues related to military installations and defense-related businesses in Arizona.
Commission Fund
Money used by the Military Affairs Commission for projects that support military installations and missions.

Limits and Unknowns

  • The bill does not specify how much money will be available in the Commission Fund.
  • It is unclear what specific actions the commission must take to retain or attract defense-related businesses.
  • There are no details on how the new criteria for awarding funds from the Commission Fund will be implemented.

Amendments

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

Plain English: Fifty-seventh Legislature Military Affairs and Border Security Second Regular Session S.B.

  • Fifty-seventh Legislature Military Affairs and Border Security Second Regular Session S.B.
  • 1618 COMMITTEE ON MILITARY AFFAIRS AND BORDER SECURITY SENATE AMENDMENTS TO S.B.
  • 1618 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Section 26-261, Arizona Revised Statutes, is amended to 2 read: 3 26-261.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Military Affairs and Border Security Second Regular Session S.B.

  • Fifty-seventh Legislature Military Affairs and Border Security Second Regular Session S.B.
  • 1618 PROPOSED SENATE AMENDMENTS TO S.B.
  • 1618 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Section 26-261, Arizona Revised Statutes, is amended to 2 read: 3 26-261.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

  1. 2026-03-09 House

    House second read

  2. 2026-03-05 House

    House Rules: None

  3. 2026-03-05 House

    House Appropriations: DP

  4. 2026-03-05 House

    House Federalism, Military Affairs & Elections: W/D

  5. 2026-03-05 House

    House first read

  6. 2026-02-27 House

    Transmitted to House

  7. 2026-02-26 Senate

    Senate third read passed

  8. 2026-02-26 Senate

    Senate committee of the whole

  9. 2026-02-25 Senate

    Senate minority caucus

  10. 2026-02-23 Senate

    Senate majority caucus

  11. 2026-02-09 Senate

    Senate second read

  12. 2026-02-05 Senate

    Senate Rules: PFC

  13. 2026-02-05 Senate

    Senate Military Affairs and Border Security: DPA

  14. 2026-02-05 Senate

    Senate first read

Official Summary Text

SB1618 - 572R - Senate Fact Sheet

Assigned to
MABS��������������������������������������������������������������������������������������������� AS
PASSED BY COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.B. 1618

military affairs commission

Purpose

Restructures the Military Affairs Commission's (Commission) membership, modifies
and prescribes additional Commission duties and establishes the Military
Affairs Commission Fund (Commission Fund).

Background

����������� The Commission consists of: 1) the Adjutant
General or the General's designee as a nonvoting advisory member; 2) the State
Land Commissioner or the Commissioner's designee as a nonvoting advisory
member; 3) one Governor-appointed member of a military installation commander
as a nonvoting advisory member; 4) one Governor-appointed member from a federal
agency involved in land use issues as a nonvoting advisory member; 5) 12 Governor-appointed
members who reside in a community in which a military installation is located,
6 of which must have expertise in military affairs and 6 of which must be local
elected officials; 6) four

Governor-appointed members who represent private property interests in the
territory in the vicinity of a military base or facility or in a community in
which a military installation is located; and 7) two members who represent
private property interests in the territory in the vicinity or in a community
in which a military installation is located, one appointed by the President of
the Senate and one appointed by the Speaker of the House of Representatives
(House) (
A.R.S.
� 26-261
).

����������� The
Military Installation Fund (Fund) monies are awarded for the: 1) acquisition of
private property, real estate and related infrastructure that are vital to the
preservation or enhancement of a military installation; 2) structural
renovations or construction of building modifications or improvements that mitigate
or attenuate impacts in high noise or accident potential zones; and 3)
management of acquired property that is necessary to preserve and enhance
military missions and installations. The Department of Emergency and Military
Affairs (DEMA) must forward each application for Fund monies to the Commission.
The Commission must review each application and recommend to DEMA applicants
that should be awarded Fund monies and the dollar amount that should be awarded.
DEMA must award 80 percent of Fund monies for outlined military installation
preservation and enhancement activities and up to 20 percent of Fund monies to
cities, towns and counties to acquire private land for the preservation and
enhancement of military missions and installations (
A.R.S. � 26-262
).

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

Provisions

1.

Replaces
the voting members of the Commission with the following members who are
appointed by the Governor:

a)

four
members who are currently serving in or, within five years preceding the
effective date of this legislation, retired from the U.S. Armed Forces or the National
Guard, who are experienced in working with the U.S. Department of Defense
planning, programming, budgeting and execution processes, or successor
processes, and who are at least:

i.

if a commissioned officer, a Lieutenant in the U.S. Navy or Captain in
another branch of the U.S. Armed Forces;

ii.

if a
warrant officer, a Chief Warrant Officer Two;

iii.

if an enlisted
noncommissioned officer, a Master Sergeant, First Sergeant, Senior Chief Petty
Officer or Senior Master Sergeant; and

iv.

Senior Executive
Service;

b)

seven
members who represent each community military support organization recognized
by a military installation in Arizona or the National Guard;

c)

two
members who have congressional experience and expertise on military and defense
policy;

d)

two
members who are from organizations that represent members of the national
defense and academic research and development industries; and

e)

two
members who are from organizations that represent members within the national
defense and aerospace industries.

2.

Adds the President of the Senate, or the President's designee, and the
Speaker of the House, or the Speaker's designee, as members of the Commission.

3.

Modifies
the six, rather than four, nonvoting advisory members of the Commission who are
not counted for the purpose of determining a quorum, by:

a)

replacing
a Governor-appointed representative of a military installation commander with the
chairperson or cochairperson of the Arizona Commanders Summit successor
organization that regularly convenes all military installation commanders in
Arizona;

b)

adding
the Chief Executive Officer of the Arizona Commerce Authority or the Officer's
designee;

c)

adding
the Chairperson of the Arizona Board of Regents or the Chairperson's designee;
and

d)�� adding
two members who are from a state or federal agency required for Commission
matters and who are appointed by the Cochairpersons of the Commission.

4.

Requires the Office of Defense Innovation to jointly staff the
Commission with DEMA.

5.

Requires the Commission to:

a)

meet
at least twice, rather than annually, each year;

b)

meet
on a regular basis with the Governor, President of the Senate and Speaker of
the House of Representatives to provide recommendations on military issues and industries
related to national defense and report on the progress of the Commission;

c)

study
issues relating to military families;

d)

proactively
recommend executive, legislative and federal actions necessary to retain
existing and attract new defense-related businesses; and

e)

develop
criteria, including accountability requirements, for awarding monies from the Commission
Fund.

6.

Requires the Commission to proactively recommend executive, legislative
and federal actions necessary to sustain military operations and enhance
Arizona's preparedness to attract, rather than respond to potential, new
missions and prevent military facilities from closure or downsizing.

7.

Broadens the Commission's requirement to advise the Governor and
Legislature on matters affecting the operational viability of Arizona military
facilities to include:

a)

areas
under the jurisdiction of any, rather than an active unit of, the Uniformed
Armed Services of the United States; and

b)

any National
Guard component of Arizona, rather than any reserve or National Guard component
of the Uniformed Armed Services of the United States, as well as any matters
affecting the retention of existing and attraction of new defense-related
businesses.

8.

Requires the Commission to recommend to the Arizona Finance Authority
and the Arizona Industrial Development Authority projects in Arizona that
require funding and that do any of the following:

a)

enhance
the military value of area military installations and defense facilities;

b)

provide
assistance to communities that are negatively impacted by base realignments or
closure or by loss of a mission for an economic development project;

c)

provide
assistance to communities that are positively impacted by base realignments or
closure for an infrastructure project; or

d)

supplement
the community economic redevelopment value of a closed military installation or
defense facility.

9.

Stipulates that the following duties of the Commission with respect to
the Fund are subject to legislative appropriation:

a)

review
applications for monies to be awarded;

b)

annually
recommend to DEMA a priority listing of monies with available resources; and

c)

recommend
to DEMA how the monies should be awarded.

10.

Requires the Commission to
submit a report by September 1 of each even-numbered year to the Governor, the
President of the Senate and the Speaker of the House of Representatives about
military installations and defense-related business in Arizona that must
include:

a)

an
economic impact statement describing in detail the effect of the military and
defense industry on the economy of Arizona;

b)

a
statewide assessment of federal and National Guard military installations and
current missions;

c)

a
statewide strategy to attract new military missions and defense-related
business, including specific actions that add military value to existing
military installations;

d)

a
list of state and federal activities that have a significant impact on active
military installations and current missions; and

e)

a
statement identifying all of the following:

i.

the state and federal programs and services that assist communities
impacted by military base closures or realignments and the efforts to
coordinate those programs;

ii.

the
efforts to coordinate state agency programs and services that assist
communities in retaining active military installations and current missions;
and

iii.

an
evaluation of initiatives to retain existing and attract new defense-related
businesses.

9.

Requires
state agencies to cooperate with and assist the Commission with:

a)

preparing
the Commission's report, including providing information about regulations,
policies, programs and services that may impact communities dependent on
military installations, defense-related businesses and the viability of
existing military missions in Arizona; and

b)

supporting
an installation commander who requests assistance in preparing an evaluation of
that installation based on criteria for the installation by the U.S. Department
of Defense for mission retention or assignment or the base realignment and
closure process.

10.

Requires
DEMA, in conjunction with the Commission, to adopt by rule, procedures acquiring
property and for receiving and evaluating applications and awarding of monies.

11.

Requires
DEMA to prepare and forward each acquisition proposal to the Commission.

12.

Requires
the Commission to review each acquisition proposal and recommend outlined
information to DEMA including each acquisition, in the name of Arizona, by
gift, grant, purchase or any other lawful manner, of real property, property
rights and related buildings and infrastructure that is vital to the
preservation or enhancement of a military installation in a high noise or
accident potential zone or in an area that is vital to the operation and
support of a military installation in accordance with awarding Fund monies to
acquire private land.

13.

Requires
DEMA to consider the Commission's recommendations and decide how the monies in
the Fund will be disbursed among the acquisition proposals and Fund applicants.

16.

Establishes
the Commission Fund consisting of legislative appropriations, gifts, donations,
contributions, grants and monies made available to the Fund from any lawful
source to support the activities of the Commission.

17.

Requires
DEMA to administer the

Commission Fund.

18.

Specifies
that, on notice from the Adjutant General of Arizona, the State Treasurer must
invest and divest monies in the Commission Fund and monies earned from
investment must be credited to the Commission Fund.

19.

Specifies
that the Commission Fund monies are continuously appropriated and are exempt
from lapsing.

20.

Allows all
persons serving as members of the Commission on the general effective date to
continue to serve until the expiration of their normal terms.

21.

Stipulates
that all subsequent appointments to the Commission must be made as prescribed.

22.

Makes
technical and conforming changes.

23.

Becomes
effective on the general effective date.

Amendments Adopted by
Committee

1.

Modifies the Commission membership by:

a)

extending
the eligibility for the four Commission members who may be retired from the
military or National Guard within five, rather than three, years preceding the
effective date of this legislation which includes a commissioned officer who is
a Lieutenant in the U.S. Navy or a Captain in another branch of the U.S. Armed
Forces;

b)

increases,
from five to seven, the number of members representing recognized community
military support organizations; and

c)

increasing
the number of nonvoting advisory members of the Commission to include two
members who are from a state or federal agency required for Commission matters
and are appointed by the Cochairpersons of the Commission.

2.

Removes the following nonvoting advisory members who are not counted for
the purpose of determining a quorum:

a)

a
representative from a federal agency involved in land use issues who is
appointed by the Governor;

b)

the
State Land Commissioner or a designee of the Commissioner; and

c)

the
Director of the Arizona Department of Transportation or the Director's
designee.

3.

Requires the Commission to:

a)

meet
twice, instead of once, each year;

b)

advise
the Governor and Legislature on any matters affecting the retention
of existing and the attraction of new defense-related businesses; and

c)

proactively
recommend executive, legislative and federal actions necessary to retain
existing and attract new defense-related businesses.

4.

Makes conforming changes.

Senate Action

MABS������� 2/16/26����� DPA���� 6-1-0

Prepared by Senate Research

February 23, 2026

KJA/KM/ci

Current Bill Text

Read the full stored bill text
SB1618 - 572R - S Ver

CORRECTED

Senate Engrossed

military affairs
commission

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1618

AN
ACT

Amending sections 26-261 and 26-262,
Arizona Revised Statutes; Amending Title 26, chapter 1, article 7, Arizona
Revised Statutes, by adding section 26-264; relating to the military affairs
commission.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 26-261, Arizona Revised
Statutes, is amended to read:

START_STATUTE
26-261.

Military affairs commission; confidential discussions and
information; definition

A. The military affairs commission is established.�
The commission membership consists of:

1.
Sixteen
The
following
members who are appointed by the governor
and
who include the following
:

(a) Twelve members who reside in a
community in which a military installation is located. Of this
group, six members shall have expertise in military affairs and six members
shall be local elected officials.

(b) Four members who represent private
property interests in the territory in the vicinity as defined in section 28-8461
or in a community in which a military installation is located.

2. One member who represents private
property interests in the territory in the vicinity as defined in section 28-8461
or in a community in which a military installation is located and who is
appointed by the president of the senate.

3. One member who represents private
property interests in the territory in the vicinity as defined in section 28-8461
or in a community in which a military installation is located and who is
appointed by the speaker of the house of representatives.

(
a
) four
members who are currently serving in or, within
five
years preceding the effective date of this amendment to this section, retired
from the united states armed forces or the national guard, who are EXPERIENCED
IN WORKING WITH THE UNITED STATES DEPARTMENT OF DEFENSE PLANNING, PROGRAMMING,
BUDGETING AND EXECUTION PROCESSES, OR SUCCESSOR PROCESSES, and who are at least
the following ranks:

(
i
) If a
COMMISSIONED officer, A LIEUTENANT
in the united states
navy or captain
in another branch of the armed forces of
the united states.

(
ii
) If a
warrant officer, A Chief warrant officer two.

(
iii
) If an
enlisted noncommissioned officer, A Master sergeant, first sergeant, senior
chief petty officer or senior master sergeant.

(
iv
) Senior
executive service.

(
b
)
seven members who represent each community military support
organization RECOGNIZED by a military installation in this state or the
national guard.

(
c
) Two members
who have congressional experience and expertise on military and defense policy.

(
d
) Two members
who are from organizations that represent members of the national defense and
academic research and development industries.

(
e
) Two members
who are from organizations that represent members within the national DEFENSE
and aerospace industries.

2. The PRESIDENT of the senate or the
president's designee.

3. The speaker of the house of
representatives or the speaker's designee.

4.
Four

six

nonvoting advisory members who are
not counted for the purpose of determining a quorum
,

consisting of:

(a) The
adjutant general or a designee of the adjutant general.

(b) A representative of a military
installation commander who is appointed by the governor.

(
b
) the
chairperson or cochairperson of the arizona commanders summit successor
organization that regularly convenes all military installation commanders in
this state.

(c) A representative from a federal
agency involved in land use issues who is appointed by the governor.

(
c
) Two members
who are from a state or federal agency required for commission matters and who
are appointed by the cochairpersons of the military affairs commission.

(d) The state land commissioner or a designee
of the commissioner.

(
d
) The chief
executive officer of the arizona commerce authority or the chief executive
officer's designee.

(
e
) The
chairperson of the arizona board of regents or the chairperson's designee.

B. The military affairs commission shall have
geographic diversity in its membership. The governor shall designate
two of the governor's appointees as cochairpersons of the
commission.
unless otherwise PROVIDED,
members
or designees of the commission shall not send alternates to represent them at
commission meetings. The voting members shall serve six-year
terms.

C. The department of emergency and military affairs
and the office of defense innovation
shall
jointly

staff the commission.

D. The commission shall:

1. Meet at least
annually

twice each year
.

2. Meet on a regular basis with the governor, the
president of the senate and the speaker of the house of representatives, either
individually or collectively, to provide recommendations on military issues
and industries related to national defense
and report on the
progress of the military affairs commission.

3. Annually meet with the appropriate legislative
committees that have jurisdiction over military installations.

4. Advise the governor and the legislature on
matters affecting the operational viability of Arizona military facilities,
including military installations, military training routes, military restricted
airspace, military ranges or areas under the jurisdiction of
an
active unit of the

any
uniformed armed services of
the United States or any
reserve or
national guard
component
of the uniformed armed services of the United States
of this state
, as well as any matters affecting
the retention of existing and attraction of new defense-related businesses
.

5. Develop criteria, including
accountability requirements, for awarding monies from the military installation
fund established by section 26-262.

6. Review applications for monies to
be awarded from the military installation fund.

7. Annually recommend to the
department of emergency and military affairs a priority listing of monies with
available resources.

8. Recommend to the department of
emergency and military affairs how the monies in the military installation fund
should be awarded.

9.

5.
Proactively
assist with coordination among the United States military operating in Arizona,
the congressional delegation, the governor, the state legislature and state and
local leaders.

10.

6.

proactively
recommend executive,
legislative and federal actions necessary to sustain military operations and
enhance
the
this
state's
preparedness to

respond to potential

attract
new missions and prevent military facilities from closure or
downsizing.

7. Proactively recommend executive,
legislative and federal actions necessary to RETAIN EXISTING AND ATTRACT NEW
DEFENSE-RELATED BUSINESSES.

11.

8.
Study
issues relating to veterans, active duty, national guard and reserve members of
the United States armed forces
, military families
and
other military quality of life issues.

9. recommend to the arizona finance
authority and the Arizona industrial development authority projects in this
state that require funding and that do
any of the
following:

(
a
) enhance the
military value of area military installations and defense facilities.

(
b
) Provide
assistance to communities that are negatively impacted by base REALIGNMENTs or
closure or by loss of a mission for an economic development project.

(
c
) Provide
assistance to communities that are positively impacted by BASE REALIGNMENTs or
CLOSURE for an infrastructure project.

(
d
) Supplement
the community economic redevelopment value of a closed military installation or
defense facility.

10. submit a report on or before
September 1 of each even-numbered year to the governor, the president of
the senate and the speaker of the house of representatives about military
installations and defense-related businesses in this
state. The report must include all of the following:

(
a
) an economic
impact statement describing in detail the effect of the military and defense
industry on the economy of this state.

(
b
) a statewide
assessment of federal and national guard military installations and current
missions.

(
c
) a statewide
strategy to attract new military missions and defense-related business,
including specific actions that add military value to existing military
installations.

(
d
) A list of
state and federal activities that have a significant impact on active military
installations and current missions.

(
e
) A statement
identifying all of the following:

(
i
) The state
and federal programs and services that assist communities impacted by military
base closures or realignments and the efforts to coordinate those programs.

(
ii
) the
efforts to coordinate state agency programs and services that assist
communities in retaining active military installations and current missions.

(
iii
) An
evaluation of initiatives to retain existing and attract new defense-related
businesses.

11. Develop criteria, including
accountability requirements, for awarding monies from the military installation
fund established by section 26-262.

12. Subject to legislative
appropriation, do all of the following with respect to the military
installation fund established by section 26-262:

(
a
) Review
applications for monies to be awarded.

(
b
) Annually
recommend to the department of emergency and military affairs a priority
listing of monies with available resources.

(
c
) Recommend
to the department of emergency and military affairs how monies should be
awarded.

E. State agencies shall cooperate
with and assist the commission with the following:

1. Preparing the report required by
subsection d, paragraph
10 of this section, including
providing information about regulations, policies, programs and services that
may impact communities dependent on military installations, defense-related
businesses and the viability of existing military missions in this state.

2. Supporting an installation
commander who requests assistance in preparing an evaluation of that
installation based on criteria for the installation by the united states
department of defense for mission retention or assignment or the base realignment
and closure process.

E.

F.
Discussions
that are related to the federal government's process to determine the closure,
realignment, relocation, expansion or forced structure reduction of military
installations and to proprietary alternatives to this state's military base
closure or realignment strategies are not subject to title 38, chapter 3,
article 3.1.

F.

G.
Information that is developed or obtained by the
commission
and
that pertains to proprietary strategies of
the commission or that is related to the relocation of military units is
confidential and is not subject to title 39, chapter 1, including documents
related to the federal government's process to determine the closure,
realignment, relocation, expansion or forced structure reduction of military
installations until the federal government has issued a final, unappealable
decision in that process or, in the event of litigation, a court of competent
jurisdiction has entered a final, unappealable order regarding the closure,
realignment, relocation, expansion or forced structure reduction of the
military installations. If the commission enters into a
confidentiality agreement with a third party, the commission may disclose
information that is deemed confidential pursuant to this subsection to that
third party.

G.

H.
For
the purposes of this section, "military installation" means a
military airport or ancillary military facility as defined in section 28-8461
or any real property that services, supports or is used by the military.
END_STATUTE

Sec. 2. Section 26-262, Arizona Revised
Statutes, is amended to read:

START_STATUTE
26-262.

Military installation fund; rules; application review; award and
use of monies; reporting requirements; definitions

A. The military installation fund is established
consisting of revenues made available to the fund from any lawful source.� The
adjutant general shall administer the fund.� On notice from the adjutant
general, 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. The fund is exempt from the provisions of
section 35-190 relating to lapsing of appropriations.

B. Monies in the fund are continuously appropriated
for the purposes of this section.

C. The department, in conjunction with the military
affairs commission established by section 26-261, shall adopt by rule
procedures for
acquiring property and for
receiving and
evaluating applications and awarding the monies as provided by subsection G of
this section. If
acquisition proposals and
applications
for monies exceed the amount available in the fund, the department may request
applicants to reduce the amount of
monies requested in
the
applications or deny or award reduced amounts.

D. The department shall
prepare each
ACQUISITION proposal and
receive each application for fund monies and
shall forward each
acquisition proposal and
application
to the military affairs commission.� The military affairs commission shall
review each
acquisition proposal and
application and
recommend to the department
both
all

of the following:

1. Each applicant that should be awarded monies from
the fund.

2. The dollar amount that each applicant pursuant to
paragraph 1 of this subsection should be awarded from the fund.

3. Each acquisition, in the name of
this state, by gift, grant, purchase or any other lawful manner, of real
property, property rights and related buildings and infrastructure that is
vital to the preservation or enhancement of a military installation in a high
noise or accident potential zone as defined in section 28-8461 or in an area
that is vital to the operation and support of a military installation in
accordance with subsection G, paragraph 1 of this section.

E. The department shall consider the military
affairs commission's recommendations and shall decide how the monies in the
fund
shall
will
be
awarded
disbursed
among the
acquisition proposals and
fund
applicants.� The department, after reviewing the recommendations by
the military affairs commission, shall make the monies in the fund available
for the purpose of military installation preservation and enhancement
projects.� Except as provided in subsection F of this section, after the
department makes
an award

A
decision
the department shall
award
disburse

the monies.

F. If the department does not comply with the
military affairs commission's recommendation for the
awards
disbursements
, within five days after the department's
decision the department shall report in writing to the military affairs
commission, the president of the senate, the speaker of the house of
representatives and the governor. The report shall include the
award

disbursement

decision of the department and the recommendation of the military affairs
commission. The department shall not distribute monies from the fund
to the applicants for at least sixty days after the report is received.

G. The department shall:

1. Award
up to
eighty percent
of the monies in the fund for the following purposes, except that up to twenty
percent of this amount may be
awarded

disbursed
to cities, towns and counties for the purpose of
acquiring private land
for the purposes
as

prescribed in paragraph 2 of this subsection:

(a) Acquisition of private property for the purpose
of preserving a military installation.

(b) Acquisition of real estate and rights to real
estate and otherwise preserving real estate from development or mitigating
impacts on development in high noise or accident potential zones as defined in
section 28-8461
and
or
in
areas as required to support a military installation.

(c) Acquisition of real estate, property rights and
related infrastructure that are vital to
the preservation
preserving
or
enhancement of
enhancing
a military installation.

(d) Structural renovations or construction of
building modifications or improvements that mitigate or attenuate impacts in
high noise or accident potential zones.

(e) Removal of structures or improvements that are
necessary
for acquisition of
to acquire

private property for the purpose of preserving a military installation.

(f) Management of acquired property that is
necessary to preserve and enhance military missions and military installations.

2. Except as provided by subsection M of this
section,
award

disburse

twenty percent of the monies in the fund to cities, towns and counties for:

(a) Military installation preservation and
enhancement projects or analytical reports or studies that are requested by
federal or state agencies or military facilities in this state.

(b) Investment in or construction of capital
improvements or infrastructure for the purpose of preserving a military
installation.

(c) Structural renovations or construction of
building modifications or improvements that mitigate or attenuate impacts in
high noise or accident potential zones.

(d) Removal of structures or improvements that are
necessary
for acquisition of
to acquire

private property for the purpose of preserving a military installation.

(e) Management of acquired property that is
necessary to preserve and enhance military missions and military installations.

H. Before
awarding

disbursing
monies pursuant to subsection G of this section, the
department shall submit a report of the proposed
awards

disbursements
to the joint committee on capital review for
review. The legislature shall review the distribution formula
prescribed in subsection G of this section at least once every four years.

I. Monies in the fund may be
awarded

disbursed
for debt service on bonds issued by a political
subdivision for the purpose of acquisition of private property for the purpose
of preserving a military airport or ancillary military facility as defined in
section 28-8461 if the land acquisition occurs after December 31, 2004.

J. The department shall annually report the
awards

disbursements

made pursuant to this section. The report shall be in writing and
shall be sent to the president of the senate, the speaker of the house of
representatives and the governor. The department shall send a copy
of this report to the secretary of state.

K. The department may:

1.
notwithstanding section 37-803,
transfer
any real estate, property rights and related infrastructure that are acquired
pursuant to this section to any other governmental agency for the purposes of
preserving or enhancing military installations in this state.

2. Sell
or otherwise dispose of any real estate, property rights and related
infrastructure
that are
acquired pursuant to this
section. The conveyance shall be made to the highest and most
responsible bidder at a public sale held for that purpose.

3. After establishing,
laying out or substantially completing an improvement to real property, convey
the real property or any interest in the real property that the department
determines is not necessary, useful or convenient for the use of the
improvement by the department. The conveyance shall be made to the
highest and most responsible bidder at a public sale held for that purpose.

4. Lease or sublease at fair rental value any real
estate or related infrastructure that is acquired pursuant to this
section. A lease or sublease that is granted pursuant to this
paragraph is exempt from section 41-2752.

L. Before
any conveyance, lease or sublease pursuant to subsection K, paragraph 2, 3 or 4
of this section, the department shall ensure that the use or development of any
real estate, property rights and related infrastructure, real property or
improvements to real property complies with section 28-8481.

M. If monies remain after the
award
DISBURSEMENT
of monies pursuant to subsection G, paragraph 2
of this section, the department may use the remaining monies and any monies
received pursuant to subsection K, paragraphs 2, 3 and 4 of this section for
either of the following:

1. The purposes prescribed in subsection G,
paragraph 1 of this section.

2. Projects or studies necessary to preserve or
enhance military missions and military installments in this state.

N.
notwithstanding section 37-803,
any
agency of this state may accept title to and manage real estate, property
rights and related infrastructure that are acquired pursuant to this section.

O. For the purposes of this section:

1. "Department" means the department of
emergency and military affairs.

2. "Military installation" has the same
meaning prescribed in section 26-261.
END_STATUTE

Sec. 3. Title 26, chapter 1, article 7, Arizona
Revised Statutes, is amended by adding section 26-264, to read:

START_STATUTE
26-264.

Military affairs commission fund

The military affairs commission fund is
established consisting of legislative appropriations, gifts, donations,
contributions, grants and monies made available to the fund from any lawful
source to support the activities of the military affairs commission. The
department of emergency and military affairs shall administer the fund.� monies
in the fund are continuously appropriated and are exempt from the provisions of
section 35-190 relating to lapsing of appropriations.� On notice from the adjutant
general, 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.�
END_STATUTE

Sec. 4.
Retention of members

Notwithstanding
section 26-261, Arizona Revised Statutes, as amended by this act, all persons
serving as members of the military affairs commission on the effective date of
this act may continue to serve until the expiration of their normal terms.� All
subsequent appointments shall be made as prescribed by statute.