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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
Federal Government; land acquisition; consent
Purpose
Requires, for consent to be given to any transfer or an ownership interest in privately owned real property in Arizona to the Federal Government or a federal agency, the Governor to sign a joint resolution adopted by an affirmative vote of a majority of the members of the Legislature. Outlines reporting requirements for the sale of privately owned real property in Arizona to the Federal Government or a federal agency and establishes a right of first refusal.
Background
The consent of Arizona may be given to the acquisition of any other privately owned real property within Arizona by the United States only upon the Governor's signing of a joint resolution adopted by the Legislature to that effect. The joint resolution must recite the legal description of the land and the purposes to which the state consents that the property may be used (A.R.S. § 37-620.02)
The Federal Government may, by cession of particular states and the acceptance of Congress, exercise powers over places purchased by the consent of the legislature of the state in which the land is purchased for the erection of forts, magazines, arsenals, dock-yards and other needful buildings (U.S. Const. art. 1 § 8, cl. 17).
If the state exercises the right of first refusal to purchase privately owned real property, there may be a fiscal impact to the state General Fund.
Provisions
1. Prohibits the consent of the state from being given to the acquisition, sale, gift or grant or any other transfer of an ownership interest in a privately owned real property within the state that is not in the possession of any federal agency as of the general effective date by the United States that would remove the real property from state, county and municipal property tax rolls, unless given express and affirmative consent by the Legislature and the Governor.
2. Requires, for consent to be given, the Governor to sign a joint resolution adopted by an affirmative vote of a majority of the members of the Legislature.
3. Specifies that the requirements for consent do not:
a) limit the rights of any Indian tribe with respect to the tribe's Indian lands, reservations and lands acquired as a settlement of land claim; or
b) affect any congressionally approved land exchange.
4. Requires an escrow agent, on the opening of escrow for the sale of private real property to the Federal Government or a federal agency, to:
a) notify the Speaker of the House of Representatives (House) and the President of the Senate that a contract for the sale of private real property to the Federal Government or a federal agency has been placed in escrow; and
b) submit a request in writing to the Speaker of the House and the President of the Senate for approval of the sale.
5. Requires the private real property owner, for a private sale of private real property to the Federal Government or a federal agency that is not processed through escrow, to:
a) notify the Speaker of the House and the President of the Senate of the sale of real private property to the Federal Government or a federal agency; and
b) submit a request in writing to the Speaker of the House and President of the Senate for approval of the sale.
6. Requires the President of the Senate and Speaker of the House, on receipt of the request for approval, to appoint a joint legislative committee to consider the request for approval.
7. Requires the Legislature, if the joint legislative committee approves the request, to prepare a joint resolution for the Legislature to approve the sale.
8. Requires the state, if the joint legislative committee does not approve the request, to exercise the right of first refusal to purchase the private real property.
9. Requires any state agency or any officer or employee of a state agency that is notified or learns of a notice from the U.S. Department of the Interior regarding an effort to place private real property located in Arizona in trust as part of an Indian tribe's settlement of a land claim to immediately notify the Speaker of the House and the President of the Senate.
10. Requires the Legislature, on such notification from a state agency or officer or employee of a state agency, to do any of the following, as applicable:
a) provide comment;
b) file an administrative appeal; or
c) file an action in the appropriate court.
11. Subjects a person who violates requirements regarding reporting to the Legislature to a civil penalty between $500 and $1,000.
12. Declares that, notwithstanding any other law, except for land acquired through a congressionally approved land exchange, the state has the right of first refusal to purchase private real property that the Federal Government is contracting to acquire through a sale, gift or grant or any other transfer of an ownership interest.
13. Requires a purchase of private real property through the right of first refusal to occur in a timely manner.
14. Requires the purchase process to be concluded within the same time period in which the original transaction would have concluded, if possible.
15. Specifies that requirements related to the purchase of property by the Federal Government or a federal agency and the right of first refusal do not apply to:
a) a trustee's deed or mortgage that is insured or held by:
i. the U.S. Department of Housing and Urban Development;
ii. the U.S. Department of Veterans Affairs; or
iii. the Federal Housing Administration; or
b) any congressionally approved land exchange.
16. Contains a statement of legislative findings.
17. Defines escrow and escrow agent.
18. Makes technical and conforming changes.
19. Becomes effective on the general effective date.
House Action
LARA 2/12/24 DP 5-4-0-0
3rd Read 2/28/24 31-28-0-0-1
Prepared by Senate Research
March 19, 2024
RA/SDR/slp