SB1672 - 562R

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

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

START_STATUTE26-261. 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 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 colonel or captain.

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

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

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

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

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

4. 2. 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.

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

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

(f) 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 shall staff the commission.

D. The commission shall:

1. Meet at least annually.

2. Meet on a regular basis with the governor and, if applicable, 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 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 or reserve component or unit of the uniformed armed services of the United States or any reserve or national guard component or unit of this state or of the uniformed armed services of the United States.

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. 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. 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.

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

12. recommend projects in this state that require funding to the arizona finance authority and the Arizona industrial development authority that do all 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.

13. 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 shall 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 and include 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.

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

1. Preparing the report required by subsection d, paragraph 13 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_STATUTE26-262. 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 the acquisition of 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 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, 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 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 eighty percent of the monies in the fund for the following purposes, except that up to twenty percent of this amount may be awarded 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 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 monies pursuant to subsection G of this section, the department shall submit a report of the proposed awards 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 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 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 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. Section 26-263, Arizona Revised Statutes, is amended to read:

START_STATUTE26-263. Appropriations; purposes; exemption

A. The sum of $90,000 $200,000 and 1 2 FTE positions are appropriated from the state general fund in fiscal year 2011-2012 2024-2025 and each fiscal year thereafter to the department of emergency and military affairs.

B. The sum of $85,000 is appropriated from the state general fund in fiscal year 2011-2012 and each fiscal year thereafter to the attorney general's office for implementation of section 9-461.06, title 11, chapter 6, article 1 and section 28-8481.

C. Notwithstanding section 26-262, the sum of $100,000 is appropriated from the state general fund in fiscal year 2024-2025 and each fiscal thereafter to the military installation fund established by section 26-262 To preserve or enhance military missions and military installments in this state and to complete the report required by section 26-261, subsection d, paragraph 13.

C. D. The appropriations made in this section are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 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.