HB2150 - Continuation; state land department

House Engrossed continuation; state land department State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026 HOUSE BILL 2150 AN ACT amending title 27, chapter 2, article 3, Arizona Revised Statutes, by adding section 27-240; amending sections 37-102, 37-132, 37-233 and 37-331.03, 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; 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 3, Arizona Revised Statutes, is amended by adding section 27-240, to read: START_STATUTE 27-240. Lease of state trust lands; minerals; renewals; indexed royalties A. Notwithstanding any other law, the state land commissioner may renew an existing mineral or mineral materials lease without public auction if the state land commissioner determines all of the following: 1. The lessee is in substantial COMPLIANCE with the terms of the lease. 2. renewal is in the BEST INTEREST of the state land trust. 3. Renewal is supported by a written finding by the state land Commissioner that the renewal is consistent with the state land Commissioner's fiduciary duties. 4. The renewal is for a term that is allowed by the laws of this state. b. a lease that the state land commissioner renews PURSUANT to this section shall provide for a royalty rate that is adjusted PURSUANT to a market-based indexing mechanism that the state land commissioner adopts in rule. 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. END_STATUTE Sec. 2. Section 37-102, Arizona Revised Statutes, is amended to read: START_STATUTE 37-102. State land department; powers and duties A. The state land department shall administer all laws relating to lands owned by, belonging to and under the control of this state. B. The department shall have charge and control of all lands owned by this state, and timber, stone, gravel and other products of such lands, except lands under the specific use and control of state institutions and the products of such lands. C. The department, in the name of this state, may commence, prosecute and defend all actions and proceedings to protect the interest of this state in lands within this state or the proceeds of lands within this state. Actions shall be commenced and prosecuted at the request of the department by the attorney general, a county attorney or a special counsel under the direction of the attorney general. D. The department shall be the official representative of this state in any communication between this state and the United States government in all matters respecting state lands or any interest of this state in or to the public lands within this state. E. The summons in any action against this state respecting any lands of this state or the products of such lands and all notices concerning such lands or products shall be served on the commissioner. Summonses, warrants or legal notices served on behalf of the department may be served by the commissioner or the commissioner's deputy , or by the sheriff or a constable of any county of this state. F. The department shall maintain as a public record in each of the department's offices a public docket and index of all matters before the department that may be subject to appeal to the board of appeals or to the courts and all sale, exchange and lease transactions subject to bidding by the public. The department shall list a matter on the public docket immediately after an application or other request for department action is received by the department. The department shall include in the public docket every formal action and decision affecting each matter in question. The department shall establish by rule a means by which any person may obtain a copy of the public docket at the current copying cost. G. The department shall reappraise or update the department's original appraisal of property to be leased, exchanged or sold if the board of appeals' approval of the lease or sale occurred more than two hundred forty days before the auction. H. To the extent possible, the state land department shall: 1. Prepare maps of the ancillary military facilities described in section 28-8461, paragraph 7, subdivisions (b) and (c). 2. Make a map of the ancillary military facility described in section 28-8461, paragraph 7, subdivision (a) available to the public in printed or electronic format and provide the map in printed or electronic format to the state real estate department. 3. On receipt of proper information from the military installation commander with responsibility for the military electronics range, prepare a map of the military electronics range as defined in section 9-500.28 and make that map available to the public in printed or electronic format and provide the map in printed or electronic format to the state real estate department. Within ninety days after receipt of notice of any change in the boundaries of the military electronics range from the military installation commander, the state land department shall revise its map and provide the map to the public and to the state real estate department. 4. On or before December 31, 2024 and on receipt of proper information from the applicable military installation's and range's and Arizona national guard site's commanders, prepare electronic legal descriptions and maps of the military installation and range and Arizona national guard site and their respective influence areas as defined in sections 9-500.50 and 11-818.01 and provide the legal descriptions and maps to the state real estate department and the public. The state land department shall make changes to the boundaries of the military installation and range and arizona national guard site and their respective influence areas and provide them to the state real estate department and the public within ninety days after receipt of those changes from the military installation's and range's and Arizona national guard site's commanders. 5. Restrict the use of a lease or permit holdover provision to not more than ninety days. If a lease is in holdover status and the holdover tenant submits a lease renewal application pursuant to section 37-291 that the department does not take action on within the ninety days after the lease expires, the lease is automatically renewed for three years and ninety days after the date of natural expiration. A lease that is renewed pursuant to this paragraph is deemed in the best interest of the state trust pursuant to section 37-291. If the department terminates a holdover tenant's lease, the department shall provide immediate reimbursement for the fair market value, as determined by an independent third-party vendor, of any reasonable and customary improvements that the holdover tenant made to the state land. 6. For a lease renewal and special land use permit: ( a ) Approve any improvements that are customary in the lessee's or permittee's course of business. If a tenant submits an application for permission to construct or make an improvement to state lands pursuant to section 37-321 and the department does not take action on the application within ninety days after receipt, the application is automatically approved. An improvement that is automatically approved pursuant to this subdivision is deemed in the best interest of the state pursuant to section 37-321. On conclusion of a lease renewal or special land use permit, the department shall reimburse the lessee or permittee for the lessee's or permittee's improvements on state lands with monies from the state land trust. ( b ) Not less than six months before the expiration of a lease renewal or special land use permit, provide notice of expiration. The notice must include all of the following: ( i ) Any PROPOSED rental increase or PROPOSED change to the terms and conditions of the lease renewal or special land use permit. ( ii ) The intent of the department to renew or terminate the lease or special land use permit. ( iii ) The justification for the commissioner's decision, as prescribed in section 37-133, to renew or terminate the lease or permit. If the department decides to not renew a lease or issue a special land use permit, the department shall include a statement that identifies the department's determination of the highest and the best use of the state lands, subject to the lease or special land use permit. If the state lands will not immediately generate revenue on the expiration of the lease or special land use permit, the notice shall include a statement identifying how long the department estimates that the state lands will generate monies for the state land trust and why the department believes foregoing the monies for the estimated time frame is in the best interest of the state land trust. 7. Restrict the use of special land use permits only to temporary land uses that do not have a dedicated land use lease or permit. I. The state land department shall provide each map and the legal description of the boundaries of each ancillary military facility described in section 28-8461, paragraph 7 in electronic format to the state real estate department. Each map prepared by the state land department pursuant to this section shall: 1. Describe the ancillary military facility, the territory in the vicinity of the ancillary military facility and the high noise and accident potential zone, accident potential zone one and accident potential zone two associated with the ancillary military facility. 2. Be submitted to the county in which the ancillary military facility is located. 3. Be made available to the public. J. The state land department shall prepare a military training route map. The map shall contain military training route numbers in this state that are used by various United States armed forces. The map shall be dated. K. When preparing the military training route map, the state land department shall use information contained in the most current department of defense publication that is entitled "area planning military training routes for North and South America". L. The military training route map shall be made available to the public. M. Within ninety days after the department is notified of a change of a military training route in this state, the department shall prepare a revised military training route map. The map shall be dated and contain a statement that the map supersedes all previously dated maps. The state land department shall send the revised map to the state real estate department electronically and shall also send an accompanying letter specifying the military training route changes. The state land department shall send the revised map and an accompanying letter specifying the military training route changes to the municipalities affected by the changes and to all counties. N. The department shall submit the military training route map prepared pursuant to this section to the counties in either an electronic or a printed format. The format shall be determined by the receiving county. O. The state land department shall provide the legal description of the boundaries of the military training routes as delineated in the military training route map to the state real estate department in electronic format. P. The state land department shall prepare a military restricted airspace map. The map shall contain military restricted airspace in this state that is used by various United States armed forces. The map shall be dated. Q. When preparing the military restricted airspace map, the state land department shall use information contained in the most current department of transportation publication that is entitled "aeronautical chart". R. The military restricted airspace map shall be made available in printed or electronic format to the public at the state land department and at the state real estate department. S. Within ninety days after the department is notified of a change of military restricted airspace in this state, the department shall prepare a revised military restricted airspace map. The map shall be dated and contain a statement that the map supersedes all previously dated maps. The state land department shall send the revised map to the state real estate department electronically and shall also send an accompanying letter specifying the military restricted airspace changes. The state land department shall send the revised map and an accompanying letter specifying the military restricted airspace changes to the municipalities affected by the changes and to all counties. T. The department shall submit the military restricted airspace map prepared pursuant to this section to the counties in either an electronic or a printed format. The format shall be determined by the receiving county. U. The state land department shall provide the legal description of the boundaries of the military restricted airspace as delineated in the military restricted airspace map to the state real estate department in electronic format. V. The department may accept title to and manage real estate, property rights and related infrastructure acquired pursuant to section 26-262, subsection K for preserving or enhancing military installations in this state. END_STATUTE Sec. 3. Section 37-132, Arizona Revised Statutes, is amended to read: START_STATUTE 37-132. Powers and duties A. The commissioner shall: 1. Exercise and perform all powers and duties vested in or imposed on the department and prescribe such rules as are necessary to discharge those duties. 2. Exercise the powers of surveyor-general except for the powers of the surveyor-general exercised by the state treasurer as a member of the selection board pursuant to section 37-202. 3. Make long-range plans for the future use of state lands in cooperation with other state agencies, local planning authorities and political subdivisions. 4. Promote the infill and orderly development of state lands in areas beneficial to the trust and prevent urban sprawl or leapfrog development on state lands. 5. Classify and appraise all state lands, together with the improvements on state lands, for the purpose of sale, lease or grant of rights-of-way. The commissioner may impose such conditions and covenants and make such reservations in the sale of state lands as the commissioner deems to be in the best interest of the state trust. The provisions of this paragraph are subject to hearing procedures pursuant to title 41, chapter 6, article 10 and, except as provided in section 41-1092.08, subsection H, are subject to judicial review pursuant to title 12, chapter 7, article 6. 6. Have authority to lease for grazing, agric [Text truncated for display. Full text available on LegiScan.]