Forty-ninth Legislature         Natural Resources, Infrastructure and Public Debt

First Regular Session                                                   S.B. 1077

 

PROPOSED AMENDMENT

SENATE AMENDMENTS TO S.B. 1077

(Reference to printed bill)

 


Strike everything after the enacting clause and insert:

"Section 1.  Section 37-101, Arizona Revised Statutes, is amended to read:

START_STATUTE37-101.  Definitions

In this title, unless the context otherwise requires:

1.  "Agricultural lands" means lands which are used or can be used principally for raising crops, fruits, grains and similar farm products.

2.  "Amortized value" means the value for improvements established pursuant to section 37‑281.02, subsection G.

3.  "Commercial lands" means lands which can be used principally for business, institutional, religious, charitable, governmental or recreational purposes, or any general purpose other than agricultural, grazing, mining, oil, homesite or rights‑of‑way.

4.  "Commissioner" means the state land commissioner.

5.  "Community identity package" means a design theme including such elements as architecture, landscape, lighting, street furniture, walls and signage.

6.  "Conservation" has the same meaning prescribed in article X, section 3, Constitution of Arizona.

6.  7.  "Department" means the state land department.

8.  "Development" has the same meaning prescribed in article X, section 3, Constitution of Arizona.

7.  9.  "Grazing lands" means lands which can be used only for the ranging of livestock.

8.  10.  "Holding lease" means a commercial lease issued solely to grant a limited use leasehold interest in state land in anticipation of future development.

9.  11.  "Homesite lands" means lands which are suitable for residential purposes.

10.  12.  "Improvements" means anything permanent in character which is the result of labor or capital expended by the lessee or his predecessors in interest on state land in its reclamation or development, and the appropriation of water thereon, and which has enhanced the value of the land.

11.  13.  "Infrastructure" means facilities or amenities, such as streets, utilities, landscaping and open space, which are constructed or located on state lands and which are intended to benefit more than the land on which they are immediately located by enhancing the development potential and value of the state lands impacted by the facility or amenities.

12.  14.  "Leapfrog development" means the development of lands in a manner requiring the extension of public facilities and services from their existing terminal point through intervening undeveloped areas that are scheduled for development at a later time, according to the plans of the local governing body having jurisdiction for the area and which is responsible for the provision of these facilities and services.

13.  15.  "Leased school or university land" means school or university land for which a lease has been issued by the state, or the territory of Arizona, under which the lessee retains rights.

14.  16.  "Master developer" means a person who assumes, as a condition of a land disposition, the responsibilities prescribed by the department for infrastructure or community identity package amenities, or both, or for implementing a development plan containing a master plan area.

15.  17.  "Participation contract" means a contract arising out of a sale together with other rights and obligations in trust lands whereby the department receives a share of the revenues generated by subsequent sales or leases.

16.  18.  "Section of land" means an area of land consisting of six hundred forty acres.

17.  19.  "State lands" means any land owned or held in trust, or otherwise, by the state, including leased school or university land.

18.  20.  "Sublease" means an agreement in which the lessee relinquishes control of the leased land to another party for the purposes authorized in the lease.

19.  21.  "Urban lands" means any state lands which are adjoining existing commercially or homesite developed lands and which are either:

(a)  Within the corporate boundaries of a city or town.

(b)  Adjacent to the corporate boundaries of a city or town.

(c)  Lands for which the designation as urban lands is requested pursuant to section 37‑331.01.

20.  22.  "Urban sprawl" means the development of lands in a manner requiring the extension of public facilities and services on the periphery of an existing urbanized area where such extension is not provided for in the existing plans of the local governing body having the responsibility for the provision of these facilities and services to the lands in question. END_STATUTE

Sec. 2.  Section 37-203, Arizona Revised Statutes, is amended to read:

START_STATUTE37-203.  Selection of lands; designation of land to institution or purpose; credit of receipts to specific funds

A.  Lands granted to the state shall be selected and filed upon by the selection board as expeditiously as the best interest of the state warrants. All lands selected and all lands specifically by description granted to the state shall be designated on the books, maps and plats of the state land department as lands of the institution, department or purpose to which the proceeds received therefrom will be credited.

B.  The selection board may reassign the designation of the lands granted among the beneficiary postsecondary schools, colleges and universities for the purposes of section 37-318.02 if the true value of the lands allocated to each affected beneficiary remains unchanged after the reassignment.

C.  Pursuant to article X, section 3, subsection D, paragraph 8, Constitution of Arizona, the selection board may identify and designate lands that are suitable for conveyance to an agency of the United States if the nature of the transaction or the location of the lands ensures that the lands will be protected against development. 

B.  D.  All money received from leases or grants of any land designated as belonging to any institution, department or purpose, and all monies received for forfeitures or penalties in connection therewith shall belong to the institution, department or purpose and shall be credited to a fund set up for such institution, department or purpose. END_STATUTE

Sec. 3.  Section 37-311, Arizona Revised Statutes, is amended to read:

START_STATUTE37-311.  Definitions

In this article, unless the context otherwise requires:

1.  "Conservation" means protection of the natural assets of state trust lands for the long‑term benefit of the land, the trust beneficiaries, lessees, the public and the unique resources that each area contains, such as open space, scenic beauty, protected plants, wildlife, archaeology and multiple use values.

2.  1.  "Existing lessee" means any of the following:

(a)  The lessee who is entitled to the use of state lands at the time the lands are considered for classification and are classified as trust  lands suitable for conservation purposes.

(b)  An existing A lessee who continues to lease the trust lands after classification as trust lands suitable for conservation purposes.

3.  2.  "Open space" means land that is generally free of land uses that would jeopardize the conservation and open space values of the land or development that would obstruct the scenic beauty of the land.

4.  3.  "Trust land" means any land that is owned or held in trust by this state.END_STATUTE

Sec. 4.  Section 37-312, Arizona Revised Statutes, is amended to read:

START_STATUTE37-312.  Nominating and classifying trust land as suitable for conservation purposes

A.  On the commissioner's initiative, on petition as provided by subsection C of this section or as provided by section 37‑332, the commissioner may nominate certain trust lands as being under consideration for classification as trust lands suitable for conservation purposes.  The commissioner shall not nominate or accept nominations for classification under this section after December 31, 2004.  The commissioner shall not nominate trust lands as being under consideration for classification as trust lands suitable for conservation purposes unless the trust lands are eligible for classification under this section and are located within:

1.  One mile of the corporate boundaries of an incorporated city or town having a population of less than ten thousand persons according to the most recent United States decennial census.

2.  Three miles of the corporate boundaries of an incorporated city or town having a population of ten thousand persons or more according to the most recent United States decennial census.

3.  Ten miles of the boundaries that are established in paragraph 1 or 2 of this subsection and that are located within counties with a population greater than five hundred thousand persons according to the most recent United States decennial census and are adjacent to lands that are eligible for conservation and share with them a specific physical characteristic such as a reach of a river, a mountain slope or an archaeological feature.

B.  In addition to the lands identified in subsection A, paragraphs 1 through 3 of this section, the following lands may be nominated for reclassification by the commissioner:

1.  Those lands within the Tortolita mountain park in Pinal county located within T10S, R12E and T10S, R13E.

2.  Those lands in the vicinity of the Superstition mountains in Pinal county located within T1N, R9E; T1N, R10E; T1S, R9E; and T1S, R10E.

3.  Those lands in the vicinity of the San Tan mountains in Pinal county located within T3S, R7E, section 10, the northwest quarter of the southeast quarter and the south half of the southeast quarter; section 15, the north half and southeast quarter.

4.  3.  The following lands located in Coconino county:

(a)  T19N, R5E, section 3.

(b)  T19N, R6E, sections 5 and 6.

(c)  T20N, R5E, sections 2, 8, 10, 12, 14, 18, 20, 22, 24, 26, 28, 30, 32, 34 and 36.

(d)  T20N, R6E, sections 4, 5, 6, 8, 10, 14, 17, 18, 20, 22, 26, 28, 30, 32 and 34.

(e)  T21N, R6E, sections 21, 22, 28, 31, 32 and 33.

C.  The commissioner shall receive a petition to nominate trust lands as being under consideration for classification as trust lands suitable for conservation purposes from:

1.  A state agency that leases the land or intends to lease or purchase the land.

2.  The board of supervisors of the county in which the land is located.

3.  The governing body of a city or town if the land is located within:

(a)  The corporate boundaries of the city or town.

(b)  One mile outside the corporate boundaries and the city or town has a population of less than ten thousand persons.

(c)  Three miles outside the corporate boundaries and the city or town has a population of ten thousand persons or more.

4.  Ten or more private individuals who:

(a)  Reside in the county in which the land is located.

(b)  Have the financial capability to lease or purchase the land.

5.  A nonprofit corporation or trust, the purpose or powers of which include conservation of natural, scenic, open space or other conservation values.

6.  The current lessee of the land.

7.  A business or corporation that is legally empowered to own or manage real property in this state and that intends to lease or purchase the land.

D.  A petitioner who requests the commissioner to reclassify the land pursuant to this article solely or partially on grounds that the land contains cultural resources worthy of conservation shall provide, on the commissioner's request, a report on the results of a cultural resources survey of the petitioned land for the commissioner's consideration before determining if the reclassification is in the best interest of the trust.

E.  Unless the commissioner nominates the trust lands under section 37‑332, a petitioner shall post a bond or other security sufficient to cover the costs of the planning, notice, advertisement and public hearing as required by this article and as determined by the commissioner.  The bond or security is forfeit to this state if the commissioner reclassifies the land pursuant to this article.

F.  The commissioner shall not nominate or classify trust land as suitable for conservation purposes if a development plan was approved for the land pursuant to article 5.1 of this chapter before July 26, 1996.  The commissioner may nominate and classify trust land as suitable for conservation purposes in an area within a development plan approved after July 26, 1996 if appropriate conservation purposes are incorporated within the development plan prepared for the commissioner's approval.  In nominating and classifying trust land as suitable for conservation purposes under this subsection, the commissioner shall follow the procedures for requesting local government zoning pursuant to section 37‑334, subsection E.

G.  Unless the commissioner nominates the trust lands under section 37‑332, after nominating the trust lands under subsection A or B of this section, the commissioner shall:

1.  Mail notice of intent to classify the lands as trust lands suitable for conservation purposes to the beneficiary or beneficiaries for whom the lands are held in trust, existing lessees, local planning authorities, the appropriate regional planning authorities and owners of private land that consists of forty or more acres and that is located within three hundred feet of the trust land.  The notice shall include the date, time and place of the public hearing to be held pursuant to subsection H of this section and a request for written comments on the proposed classification within thirty days after the date of notice.

2.  Within thirty days after giving the notice under paragraph 1 of this subsection:

(a)  Publish the notice stating a date, time and place of a public hearing for six publications in a newspaper of general circulation in the county in which the designated lands are located.

(b)  Mail the notice to any person who has requested notice of any classification under this article.

(c)  Mail the notice to the Arizona game and fish department, the Arizona department of agriculture, the Arizona state parks board, the Arizona department of transportation and any other affected state agency.

H.  Within sixty days after the last date of publication of notice under subsection G of this section, the commissioner or the commissioner's designee shall conduct a public hearing in a location in this state as close as conveniently possible to the trust land to receive and record oral and written testimony concerning the proposed classification.

I.  In determining whether reclassification is in the best interest of the trust, the commissioner shall:

1.  Consult with the governing body of each city or town in which the land proposed for reclassification is located or to which the land is contiguous, the county board of supervisors of each county in which the land is located if the land is not located within the boundaries of a city or town and the local planning and zoning authorities, including the affected regional planning authorities.

2.  Consider recommendations of the conservation advisory committee.

3.  Consider all evidence and testimony that are submitted at the hearing that was held pursuant to:

(a)  Subsection H of this section if the commissioner nominated the trust lands under this section.

(b)  Section 37‑332, subsections B, C and D if the commissioner nominated the trust lands under section 32‑332.

4.  Consider the physical and economic impacts that the reclassification would have on other lands owned or controlled by the current lessee and the physical and economic impacts on the local community.

5.  Consider the existence of any holding lease on the lands.

6.  Consider the existence of any planning permit issued by the commissioner for the lands pursuant to article 5.1 of this chapter.

7.  Consider the amount of progress on any development plans being completed for the lands pursuant to article 5.1 of this chapter.

8.  Evaluate the mineral potential of the land.

J.  The commissioner shall determine whether the reclassification is in the best interest of the trust and, in making the determination, shall state in writing the reasons why the classification is or is not in the best interests of the trust.

K.  If the commissioner reclassifies the trust land as suitable for conservation purposes, the commissioner shall adopt a plan to allow existing and conservation uses to be coordinated in a manner that will protect both existing uses and conservation and open space values.  If the reclassified trust land is unleased or the petitioner is the lessee pursuant to subsection C, paragraph 6 of this section, the commissioner may require a plan from the petitioners describing how the property is to be managed.  In adopting the plan, the commissioner shall consult with:

1.  The conservation advisory committee.

2.  The governing body of the city or town if the land is located in a city or town.

3.  The county board of supervisors if the land is not located in a city or town.

4.  Existing lessees of the trust land, local and regional planning authorities and owners of private land who provided written comments pursuant to subsection G, paragraph 1 of this section.

5.  Any other person or entity that the commissioner considers to be necessary.

L.  The classification of state land as suitable for conservation does not affect the designation or use of adjacent federal, state or private land.

M.  A person who is adversely affected by the commissioner's decision to reclassify land as suitable for conservation purposes may appeal the decision to the board of appeals pursuant to section 37‑215.

N.  On classifying trust lands suitable for conservation purposes, existing leases shall not be canceled or modified as a result of any actions taken pursuant to this article, and renewals of existing leases shall be pursuant to section 37‑291. END_STATUTE

Sec. 5.  Section 37-314, Arizona Revised Statutes, is amended to read:

START_STATUTE37-314.  Conveyance of title to trust lands suitable for conservation purposes

A.  The commissioner may sell or otherwise transfer title to trust lands suitable for conservation purposes as authorized by this article when it is in the best interest of the trust.

B.  A sale of trust land under this section shall be:

1.  At public auction.

2.  1.  Based on one independent appraisal and one independent review appraisal, both of which may be reviewed by the department, of the fair market value of the trust land that is being offered.  The appraisal shall not take into consideration the conditions or covenants which may be imposed under subsection C of this section in order to reduce the appraised value.

3.  2.  Consistent with the requirements provisions of the Constitution of Arizona, applicable provisions of this title and rules adopted by the commissioner.

C.  The terms of the sale may shall include:

1.  A written purchase agreement executed by all parties.

2.  Payment for the land on a cash or term basis as prescribed in the purchase agreement, but not later than December 31, 2039.  The legislature finds that development fees collected by a county, city or town pursuant to section 9-463.05 or 11-1102 ultimately lower the net revenues collected from the property by the seller.  The legislature finds that it is not in the best interests of the state trust to allow counties, cities and towns to pay for land under this article with money derived directly or indirectly from development fees or to assess development fees with respect to any property acquired pursuant to this article.

3.  The condition that the conveyance of title is be subject to a covenant that runs with the land, and that the land shall be used only for purposes that are consistent with the conservation of specifically named resources or public values and that the land be subject to reasonable public access.

D.  The commissioner shall include the applicable conditions under subsection C of this section in any public notices relating to the sale under this section.

E.  If the trust land is sold subject to a lease and the lease is canceled or modified due to a sale of land under this section and the purchaser and the existing lessee cannot agree on compensation, the commissioner shall determine the amount of reasonable compensation for damages sustained by the existing lessee after considering the following factors:

1.  The time remaining in the term of the lease at the time that the lease is canceled or modified.

2.  The actual use of the leased land.

3.  The rentals paid during the term of the lease.

4.  The actual amount of economic damage to the production unit caused by the cancellation or modification.  In determining the amount of economic damage to the production unit, the commissioner shall not limit the scope of review to only that portion of the lands involved in the reclassification but shall take into consideration the impact of the loss of these lands on the overall production unit, including situations in which other leased or private lands are necessary and have been leased by the existing lessee for operation as a production unit.

5.  Other factors that the commissioner or the existing lessee determine determines to be relevant.

F.  The purchaser shall make payments for reimbursement or compensation, or both, as established in this section to the existing lessee at the time of sale.  This section does not prevent the payment for reimbursement or compensation, or both, from being made in installments if the existing lessee and purchaser agree to installment payments.

G.  If trust lands that are conveyed pursuant to this section are subject to a current planning permit under article 5.1 of this chapter, the transferee shall reimburse the holder of the permit as provided by section 37‑338.

H.  At the time of application the applicant shall post a bond pursuant to section 37‑108.  The bond is forfeit to this state if no bidder bids at the auction for the sale of the land.

I.  If any of the lands classified pursuant to this article are not sold or conveyed, or payment is not completed in full by December 31, 2039, the commissioner shall reclassify the land as prescribed by law. END_STATUTE

Sec. 6.  Title 37, chapter 2, Arizona Revised Statutes, is amended by adding article 4.3, to read:

ARTICLE 4.3.  LANDS DESIGNATED FOR CONSERVATION

START_STATUTE37-318.  Lands permanently restricted against development

A.  Pursuant to article X, section 3, subsection D, paragraph 4, subdivision (c), Constitution of Arizona, the commissioner shall offer the following state trust lands for conveyance of title without advertisement, auction or consideration to an agency of this state, to a county, city or town in this state or to a nonprofit organization that is exempt from federal income tax pursuant to federal law.  The conveyance is subject to the conditions prescribed by the Constitution of Arizona.  The lands subject to this subsection are:

Burro Creek                                       5,061.6 acres

Castle Hot Springs                               20,166.8 acres

Catalina Galiuro Corridor                        35,639.0 acres

Cienega Creek                                    60,687.7 acres

Daisy Mountain                                    1,286.7 acres

Dragoon Mountain Wildlife Corridor               16,002.3 acres

Kartchner Caverns Corridor                        5,875.3 acres

Leslie Creek                                      4,565.1 acres

Little Colorado River                             3,092.3 acres

Lower San Pedro                                  17,335.7 acres

Malpai                                           21,267.7 acres

McDowell Sonoran Preserve                         2,371.9 acres

Middle Verde                                      1,182.7 acres

Picacho Mountains                                18,705.4 acres

Picacho Peak State Park                           3,969.3 acres

San Pedro Riparian NCA                            4,430.4 acres

Santa Cruz Wildlife corridor                      8,769.3 acres

Sierrita Mountains                               30,170.7 acres

Superstition Mountains                           16,448.8 acres

Upper Chino Valley Grasslands                    40,148.0 acres

Wickenburg                                        6,846.8 acres

B.  The commissioner shall determine the actual legal boundaries of the parcels of land listed in this section, including minor adjustments as necessary to correct technical, clerical or survey errors.

C.  The lands listed under this section are permanently restricted against development.  The commissioner shall continue to manage the lands listed under this section until conveyed in a manner that is consistent with conservation.

D.  The management and disposition of lands under this section is subject to the continuation or renewal of all leases, rights-of-way and uses of the lands that existed on July 1, 2009.  During the term of any pre‑existing leases, this state reserves the right to:

1.  Continue to administer the leases and renew them for an additional term of up to twenty-five years.

2.  Issue easements and rights-of-way on, over and across the land as provided by article X, section 3, subsection D, paragraph 9, Constitution of Arizona.

3.  Collect rent, royalty and other payments under the leases, permits, easements and rights-of-way for the benefit of the permanent fund corresponding to the grant under which the land was conveyed or confirmed by the Arizona-New Mexico Enabling Act (Act of June 20, 1910; 36 Stat. 557).

E.  If a preexisting lease is not renewed after conveyance and the TRANSFEREE and the lessee cannot agree on compensation, the commissioner shall determine the amount of reasonable compensation for damages sustained by the lessee after considering the following factors:

1.  The actual use of the leased land.

2.  The rentals paid during the term of the lease.

3.  The actual amount of economic damage to the production unit caused by the failure to renew.  In determining the amount of economic damage to the production unit, the commissioner shall not limit the scope of review to only the lands conveyed but shall take into consideration the impact of the loss of these lands on the lessee's overall production unit, including situations in which other leased or private lands are necessary and have been leased by the lessee for operation as a production unit.

4.  Other factors that the commissioner or the lessee determines to be relevant.

F.  Any disposition of lands under this section must require that the lands are:

1.  Permanently restricted, on conveyance, against development as prescribed by law, and shall include in the conveyance appropriate conditions, covenants and restrictions or provide for reversions to ensure the use of the land in a manner consistent with conservation.

2.  Subject to lease, rights-of-way and other uses that are consistent with conservation.

3.  Subject to the reservation to this state of minerals, gases and hydrocarbon substances located under the land surface.

4.  Subject to reasonable public access.

G.  The lands listed in this section are not eligible for disposition pursuant to article 4.2 of this chapter, notwithstanding any previous nomination, classification or other administrative action.  Any status of these lands under article 4.2 of this chapter terminates on the effective date of this section. END_STATUTE

START_STATUTE37-318.01.  Lands that are suitable for conservation; disposition with compensation

A.  Pursuant to article X, section 3, subsection D, paragraph 4, subdivision (d), Constitution of Arizona, the commissioner shall offer the following state trust lands for sale without advertisement or auction for consideration at their true value to an agency of this state, to a county, city or town in this state or to a nonprofit organization that is exempt from federal income tax pursuant to federal law.  The conveyance is subject to the conditions prescribed by the Constitution of Arizona.  The lands subject to this subsection are:

Agua Fria River                                     653.6 acres

Cave Creek Recreational Area                      1,008.7 acres

Cienega Creek                                    20,640.2 acres

Continental Mountain                                622.6 acres

Gold Canyon                                         708.1 acres

Grand Canyon Scenic Corridor                      2,537.6 acres

Homolovi Ruins State Park                         3,141.6 acres

Kartchner Caverns Corridor                        1,464.3 acres

Lake Pleasant Recreation Area                     4,502.6 acres

Lower San Pedro                                   9,667.5 acres

Lyman Lake State Park                               203.9 acres

McDowell Sonoran Preserve                        12,034.7 acres

McDowell Sonoran Preserve Pt. 2                   1,714.2 acres

Patagonia Lake State Park                         3,072.4 acres

Phoenix Sonoran Preserve                         10,213.2 acres

Springerville Grasslands                         12,849.9 acres

Spur Cross Ranch Conservation Area                2,000.0 acres

Superstition Mountains                              641.1 acres

Tortolita Fan                                    10,458.0 acres

Tortolita Mountain Park                           7,762.0 acres

Walnut Canyon National Monument                   1,286.0 acres

West Desert Preserve                              2,073.6 acres

White Tanks                                       2,217.5 acres

Wickenburg                                        4,059.9 acres

B.  The commissioner shall determine the actual legal boundaries of the parcels of land listed in this section, including minor adjustments as necessary to correct technical, clerical or survey errors.

C.  A transaction involving a sale of lands under this section:

1.  Must be established in a written purchase agreement.

2.  Must be paid in full over a payment term ending on or before December 31, 2039.  The legislature finds that development fees collected by a county, city or town pursuant to section 9-463.05 or 11-1102 ultimately lower the net revenues collected from the property by the seller.  The legislature finds that it is not in the best interests of the state trust to allow counties, cities and towns to pay for land under this article with money derived directly or indirectly from development fees or to assess development fees with respect to any property acquired pursuant to this article.

3.  Is subject to the continuation of any existing lease issued by the state land department until the issuance of a patent to the purchaser.

D.  If a preexisting lease is not renewed after sale and the TRANSFEREE and the lessee cannot agree on compensation, the commissioner shall determine the amount of reasonable compensation for damages sustained by the lessee after considering the following factors:

1.  The actual use of the leased land.

2.  The rentals paid during the term of the lease.

3.  The actual amount of economic damage to the production unit caused by the failure to renew.  In determining the amount of economic damage to the production unit, the commissioner shall not limit the scope of review to only the lands conveyed but shall take into consideration the impact of the loss of these lands on the lessee's overall production unit, including situations in which other leased or private lands are necessary and have been leased by the lessee for operation as a production unit.

4.  Other factors that the commissioner or the lessee determines to be relevant.

E.  Any sale of lands under this section must require that the lands are:

1.  Permanently restricted, on conveyance, against development as prescribed by law, and shall include in the sale documents appropriate conditions, covenants and restrictions or provide for reversions to ensure the use of the land in a manner consistent with conservation.

2.  Subject to lease, rights-of-way and other uses that are consistent with conservation.

3.  Subject to the reservation to this state of minerals, gases and hydrocarbon substances located under the land surface.

4.  Subject to reasonable public access.

F.  If any lands designated for disposition under this section are not sold, their status and designation under this section terminates and the unconveyed lands shall be reclassified as provided by law.

G.  The lands listed in this section are not eligible for disposition pursuant to article 4.2 of this chapter, notwithstanding any previous nomination, classification or other administrative action.  Any status of these lands under article 4.2 of this chapter terminates on the effective date of this section. END_STATUTE

START_STATUTE37-318.02.  Lands designated for the benefit of state universities

A.  Pursuant to section 37-203, subsection B, the trust lands located in Coconino county in the area commonly known as the Centennial forest are designated for the sole benefit of northern Arizona university for administration by the school of forestry.  The designation of the lands is subject to any existing leases and the following terms and restrictions:

1.  The lands are permanently restricted against development, except that buildings and related infrastructure to support northern Arizona university’s programs on the Centennial forest property may be constructed on up to ________ acres at locations to be identified by northern Arizona university, and existing buildings, improvements and structures may be maintained or replaced without regard to these restrictions.

2.  The lands may be leased or managed for grazing, timber management, recreation and other purposes if those uses are compatible with and further the educational and research purposes of the Centennial forest, as determined by the school of forestry of northern Arizona university.

3.  Any revenues from leases of the lands shall accrue to the school of forestry of northern Arizona university for the research and educational purposes of the Centennial forest.

4.  If a preexisting lease is not renewed and Northern Arizona university and the lessee cannot agree on compensation, the commissioner shall determine the amount of reasonable compensation for damages sustained by the lessee after considering the following factors:

(a)  The actual use of the leased land.

(b)  The rentals paid during the term of the lease.

(c)  The actual amount of economic damage to the production unit caused by the failure to renew.  In determining the amount of economic damage to the production unit, the commissioner shall not limit the scope of review to only the Centennial forest lands but shall take into consideration the impact of the loss of those lands on the lessee's overall production unit, including situations in which other leased or private lands are necessary and have been leased by the lessee for operation as a production unit.

(d)  Other factors that the commissioner or the lessee determines to be relevant.

B.  Pursuant to section 37-203, subsection B, the trust lands located In pima county in the area commonly known as the Santa Rita experimental range are designated for the sole benefit of the University of Arizona for administration by the college of agriculture and life sciences as a research and educational field station.  The designation of the lands is subject to any existing leases and the following terms and restrictions:

1.  The lands are permanently restricted against vertical development, except that buildings and related infrastructure to support the university of Arizona’s programs on the Santa Rita experimental range may be constructed on up to __________ acres at locations to be identified by the university of Arizona, and except that existing buildings, improvements and structures may be maintained or replaced without regard to these restrictions.

2.  The lands may be leased or managed for grazing, recreation and other purposes if those uses are compatible with and contribute to the educational and research purposes of the Santa Rita experimental range, as determined by the college of agriculture and life sciences.

3.  Any revenues from leases of the lands shall accrue to the college of agriculture and life sciences to support the research and educational purposes of the Santa Rita experimental range.

4.  If a preexisting lease is not renewed and the university of Arizona and the lessee cannot agree on compensation, the commissioner shall determine the amount of reasonable compensation for damages sustained by the lessee after considering the following factors:

(a)  The actual use of the leased land.

(b)  The rentals paid during the term of the lease.

(c)  The actual amount of economic damage to the production unit caused by the failure to renew.  In determining the amount of economic damage to the production unit, the commissioner shall not limit the scope of review to only the Santa Rita Range lands but shall take into consideration the impact of the loss of those lands on the lessee's overall production unit, including situations in which other leased or private lands are necessary and have been leased by the lessee for operation as a production unit.

(d)  Other factors that the commissioner or the lessee determines to be relevant.

C.  Pursuant to section 37-203, subsection B, the selection board shall designate lands for the sole benefit of Arizona state university if the true value of the lands does not exceed the value of either the Centennial forest lands or the Santa Rita range lands designated under subsection A or B of THIS section. END_STATUTE

START_STATUTE37-318.03.  Conveyance of in lieu lands

A.  The commissioner shall offer land identified by the selection board pursuant to section 37-203, subsection C to an agency of the United states for purchase at its true value determined by appraisal.  The consideration for the lands may consist of monetary payments or federal land of equal value in lieu of monetary consideration.

B.  Any conveyance of lands under this section must require that the lands are:

1.  Permanently restricted, on conveyance, against development as prescribed by law, and shall include in the sale documents appropriate conditions, covenants and restrictions or provide for reversions to ensure the use of the land in a manner consistent with conservation.

2.  Subject to the reservation to this state of minerals, gases and hydrocarbon substances located under the land surface.

3.  Subject to reasonable public access. END_STATUTE

Sec. 7.  Section 37-331, Arizona Revised Statutes, is amended to read:

START_STATUTE37-331.  Definitions

In this article, unless the context otherwise requires:

1.  "Conservation" has the same meaning prescribed in section 37‑311.

2.  1.  "Existing lessee" means any of the following:

(a)  The lessee who is entitled to the use of state lands at the time such lands are considered for classification and are classified as urban lands suitable for urban planning.

(b)  An existing lessee who continues to lease urban lands following classification as urban lands suitable for urban planning.

(c)  A person who leases urban lands following classification as urban lands suitable for urban planning.

3.  2.  "Local planning authorities" means any city, town or county in which urban lands suitable for urban planning are located.  When urban lands that are located in an unincorporated area of a county are designated as urban lands suitable for urban planning, a city or town whose corporate boundaries are three miles or less from these lands shall be considered to be a local planning authority, together with the governing body of the county in whose jurisdiction the lands are located.

4.  3.  "Planning contractor" means the person or persons who contract with the department to formulate a development or secondary plan for urban lands suitable for urban planning.

5.  4.  "State general plan" means a policy document that addresses appropriate uses for state lands, provides a general basis for a development plan and makes policy statements related to the use and management of state lands. END_STATUTE

Sec. 8.  Conditional enactment; notice

A.  Sections 1 through 7 of this act are not effective unless both of the following occur:

1.  Article X, section 3, Constitution of Arizona, is amended by vote of the people at the next general election to authorize the disposition of state trust land that is suitable for conservation purposes without advertisement or auction.

2.  On or before December 31, 2014, the Arizona-New Mexico Enabling Act (Act of June 20, 1910; 36 Stat. 557) is amended by Congress and signed into law to authorize the disposition of state trust lands as proposed by paragraph 1.  On or before December 31, 2014, the state land commissioner shall notify the director of the Arizona legislative council in writing whether or not this condition occurred and the date the enabling act was amended.

B.  The enactment of any provision of this act conditioned on the results of the election does not constitute a submission of any provision of this act to the voters under the power of the referendum."

Amend title to conform


 

 

JOHN NELSON

 

1077jn1.doc

06/18/2009

10:59 AM

C: dmt