Chapter 0238 - 571R - H Ver of SB1740

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

Section 1. Title 3, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 3-109.04, to read:

START_STATUTE3-109.04. Agriculture and water innovation fund pilot program; fund; grants; requirements; annual report; definitions

A. The agriculture and water innovation fund pilot program is established to provide grants and collect data for water-focused innovation in agriculture. The department shall administer the pilot program.

B. The agriculture and water innovation fund is established consisting of legislative appropriations, grants from federal agencies and monies appropriated by any other lawful source. Monies in the fund are continuously appropriated and exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department shall administer the fund and may use not more than ten percent of the monies in the fund annually for the costs of administering the fund and the agriculture and water innovation fund pilot program.

C. The department may grant monies from the fund to qualified applicants to acquire or contract for implementing innovative technology that improves water use efficiency by improving soil health.

D. As a condition of the grant, the department shall require the qualified applicant to:

1. Certify the installation of the new innovative technology.

2. Report on the individual fields that receive the benefit of the grant monies to demonstrate increased water use efficiency on the affected fields.

E. On or before December 31 of each year, the department shall submit a written report to the president of the senate and the speaker of the house of representatives describing the activities of the department for the preceding fiscal year related to the agriculture and water innovation fund and shall provide a copy of the report to the secretary of state. The report shall include an accounting of expenditures from the fund and how the monies were used to improve water efficiency and soil health.

F. For the purposes of this section:

1. "Innovative technology" means products or services that improve water use efficiency by improving soil health in agriculture without requiring nonnative soil amendments or improvements to irrigation infrastructure.

2. "Qualified applicant" means either of the following:

(a) An agricultural landowner, beneficial owner of trust land or lessee of agricultural land that has actively farmed the land or committed the land to intentional water conservation in three of the five calendar years immediately preceding the date of the application.

(b) An irrigation district established pursuant to title 48, chapter 19 that applies for the benefit of members of the irrigation district. END_STATUTE

Sec. 2. Delayed repeal

Section 3-109.04, Arizona Revised Statutes, as added by this act, is repealed from and after December 31, 2028.

Sec. 3. Section 17-269, Arizona Revised Statutes, is amended to read:

START_STATUTE17-269. Game and fish publications revolving fund

A The game and fish publications revolving fund is established consisting of monies received from the sale of publications pursuant to section 17-231, subsection B, paragraph 9. The monies in the fund are appropriated to the department to produce and distribute department publications and information. Monies in the game and fish publications revolving fund that at any time are in excess of eighty thousand dollars $250,000 shall immediately revert to the game and fish fund. Monies in the game and fish publications revolving fund up to an amount of eighty thousand dollars $250,000 are exempt from the provisions of section 35-190 relating to lapsing of appropriations.END_STATUTE

Sec. 4. Section 26-107, Arizona Revised Statutes, is amended to read:

START_STATUTE26-107. Hazard mitigation revolving fund

The hazard mitigation revolving fund is established consisting of monies appropriated by the legislature and monies received from the federal government. Monies in the fund are continuously appropriated. The department of emergency and military affairs shall administer the fund. Monies in the fund may shall be used in fiscal years 2023-2024, 2024-2025, 2025-2026, 2026-2027 and 2027-2028 in accordance with the guidelines established pursuant to the safeguarding tomorrow through ongoing risk mitigation act (P.L. 116-284; 134 Stat. 4869).END_STATUTE

Sec. 5. Section 37-132, Arizona Revised Statutes, is amended to read:

START_STATUTE37-132. 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, agricultural, homesite or other purposes, except commercial, all land owned or held in trust by this state.

7. Have authority to lease for commercial purposes and sell all land owned or held in trust by this state, but any such lease for a term longer than ten years for commercial purposes or any such sale shall first be approved by the board of appeals.

8. Except as otherwise provided, determine all disputes, grievances or other questions pertaining to the administration of state lands.

9. Appoint deputies and other assistants and employees necessary to perform the duties of the department and assign their duties subject to title 41, chapter 4, article 4 and require of them such surety bonds as the commissioner deems proper. The compensation of the deputy, assistants or employees shall be as determined pursuant to section 38-611.

10. Make a written report to the governor annually, not later than September 1, disclosing in detail the activities of the department for the preceding fiscal year and publish it for distribution. The report shall include an evaluation of auctions of state land leases held during the preceding fiscal year considering the advantages and disadvantages to the state trust of the existence and exercise of preferred rights to lease reclassified state land.

11. Withdraw state land from surface or subsurface sales or lease applications if the commissioner deems it to be in the best interest of the trust. This closure of state lands to new applications for sale or lease does not affect the rights that existing lessees have under law for renewal of their leases and reimbursement for improvements.

B. The commissioner may:

1. Take evidence relating to, and may require of the various county officers information on, any matter that the commissioner has the power to investigate or determine.

2. Under such rules as the commissioner adopts, use private real estate brokers to assist in any sale or long-term lease of state land and pay, from fees collected under section 37-107, subsection B, paragraph 1, a commission to a broker that is licensed pursuant to title 32, chapter 20 and that provides the purchaser or lessee at auction. The purchaser or lessee at auction is not eligible to receive a commission pursuant to this subsection paragraph. A commission shall not be paid on a sale or a long-term lease if the purchaser or lessee is a political subdivision of this state.

3. Require a permittee, lessee or grantee to post a surety bond or any form of collateral deemed sufficient by the commissioner for performance or restoration purposes. The commissioner shall use the proceeds of a bond or collateral only for the purposes determined at the time the bond or collateral is posted. For agricultural lessees, the commissioner may require collateral as follows:

(a) As security for payment of the annual assessments levied by the irrigation district in which the state land is located if the lessee has a history of late payments or defaults. The amount of the collateral required may not exceed the annual assessment levied by the irrigation district.

(b) As security for payment of rent, if an extension of time for payment is requested or if the lessee has a history of late payments of rent. The collateral shall be submitted at the time any extension of time for payment is requested. The amount of the collateral required may not exceed the annual amount of rent for the land.

4. Withhold market and economic analyses, preliminary engineering, site and area studies and appraisals that are collected during the urban planning process from public viewing before they are submitted to local planning and zoning authorities.

5. Withhold from public inspection proprietary information received during lease negotiations. The proprietary information shall be released to public inspection unless the release may harm the competitive position of the applicant and the information could not have been obtained by other legitimate means.

6. Issue permits for short-term use of state land for specific purposes as prescribed by rule.

7. Contract with a third party to sell recreational permits. A third party under contract pursuant to this paragraph may assess a surcharge for its services as provided in the contract, in addition to the fees prescribed pursuant to section 37-107.

8. Close urban lands to specific uses as prescribed by rule if necessary for dust abatement, to reduce a risk from hazardous environmental conditions that pose a risk to human health or safety or for remediation purposes.

9. Notwithstanding subsection A, paragraph 4 of this section, authorize, in the best interest of the trust, the extension of public services and facilities either:

(a) That are necessary to implement plans of the local governing body, including plans adopted or amended pursuant to section 9-461.06 or 11-805.

(b) Across state lands that are either:

(i) Classified as suitable for conservation purposes pursuant to section 37-312.

(ii) Sold or leased at auction for conservation purposes.

10. Contract with a qualified THIRD-PARTY reviewer that is selected by the commissioner to review any application submitted to the department if the commissioner determines that the department will not be able to take action on the application within sixty working days after the application is submitted to the DEPARTMENT. A third-party reviewer that REVIEWS An application pursuant to this paragraph shall do both of the following:

(a) REVIEW THE APPLICATION AND TAKE ALL OTHER RELATED ACTIONS IN ACCORDANCE WITH ALL requirements that are ADOPTED BY THE department.

(b) Notify THE department and the applicant OF THE findings OF THE REVIEW.

C. The commissioner or any deputy or employee of the department may not have, own or acquire, directly or indirectly, any state lands or the products on any state lands, any interest in or to such lands or products, or improvements on leased state lands, or be interested in any state irrigation project affecting state lands. END_STATUTE

Sec. 6. Section 37-527, Arizona Revised Statutes, is amended to read:

START_STATUTE37-527. Trust land management fund

A. The trust land management fund is established. The fund consists of up to ten per cent percent of the annual proceeds of:

1. Each beneficiary's trust lands granted to this state by the United States.

2. All sales of timber, mineral, gravel or other natural products or property from each beneficiary's trust lands granted to this state by the United States.

B. The commissioner shall determine the percentage of trust land proceeds to be deposited in the fund each fiscal year. The percentage shall be the same for all beneficiaries. The commissioner shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the determination on or before September 1 of the preceding fiscal year.

C. The monies in the fund:

1. Are subject to legislative appropriation. The department may retain an amount of monies from the fund that is sufficient to pay the department's costs for contracting with a qualified third-party reviewer as prescribed in section 37-132, subsection A, paragraph 12.

2. Shall be used exclusively to manage trust lands as prescribed by law.

D. The commissioner shall administer the fund. On notice from the commissioner, 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.

E. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations, but if the balance in the fund at the end of any fiscal year exceeds two times the budget of the department for the management of trust lands for the next fiscal year, the excess amount shall be credited proportionately to the several permanent funds based on the last fiscal year's deposits.

F. This section does not prevent the legislature from appropriating state general fund monies for the purposes described in this section. END_STATUTE

Sec. 7. Section 37-1311, Arizona Revised Statutes, as added by Laws 2025, chapter 167, section 2, is amended to read:

START_STATUTE37-1311. Wildfire mitigation plan; hearing; rules; fees; definitions

A. The state forester shall review and approve a submitted wildfire mitigation plan if the state forester finds that the wildfire mitigation plan:

1. Complies with title 30, chapter 7, article 1 or title 40, chapter 8, article 1 and any other applicable rules.

2. Is reasonable considering the public power entity's or electric utility's size and resources.

3. Is in the public interest.

4. Meets the requirements of subsection H of this section.

5. Is designed to meet the specific conditions and risk of the public power entity's or electric utility's service area in which the public power entity or the electric utility operates.

B. The state forester shall provide public notice and an opportunity for public comment on a submitted wildfire mitigation plan. The state forester shall publish the notice on the Arizona department of forestry and fire management's website and in the Arizona administrative register.

C. Within fourteen days after receiving a submitted wildfire mitigation plan, the state forester shall:

1. Identify the counties and cities and towns that are located within the geographic region as described in the public power entity's or electric utility's wildfire mitigation plan.

2. Establish the time period and instructions for the affected counties and cities and towns to provide public comment.

3. Provide the information prescribed in paragraphs 1 and 2 of this subsection to the public power entity or electric utility.

D. Within ten days after receipt of the information prescribed in subsection C of this section, the public power entity or electric utility shall provide written notice to the identified counties and cities and towns of the opportunity to provide comment on the wildfire mitigation plan.

E. Within forty-five days after receipt of any wildfire mitigation plan, the state forester shall hold a public meeting to solicit comments on any proposed wildfire mitigation plan. The state forester shall provide for remote attendance at the public meeting using telephonic or video conferencing.

F. The state forester may request additional information or request modification to the submitted wildfire mitigation plan within one hundred twenty days after the initial receipt of the wildfire mitigation plan by providing written notice to the public power entity or electric utility. If the state forester does not request additional information or a modification to the wildfire mitigation plan, the wildfire mitigation plan is deemed administratively approved after the one hundred twenty-day review period.

G. Within ninety days after receipt of the notice prescribed in subsection F of this section, the public power entity or electric utility shall respond to the state forester's request for information and, if necessary, may revise the wildfire mitigation plan. The state forester shall have sixty days after receipt of the responses or a revised wildfire mitigation plan, whichever is later, to consider the approval or denial of the wildfire mitigation plan. If the state forester does not request further additional information or a modification to the wildfire mitigation plan, the wildfire mitigation plan is deemed administratively approved at the expiration of sixty days. The wildfire mitigation plan is deemed approved during the pendency of any judicial action pursuant to title 12, chapter 7, article 6 that seeks review of the state forester's approval or denial of the wildfire mitigation plan or any portion of the wildfire mitigation plan.

H. The wildfire mitigation plan shall do the following:

1. Identify Preventive actions, protective equipment and monitoring programs that the public power entity or electric utility will carry out, install, repair, replace or implement to minimize the risk of a wildfire.

2. Include:

(a) A description of areas within the geographic region where the public power entity's or electric utility's facilities may be subject to a heightened risk of wildfire.

(b) A description of the procedures, standards and time frames that the public power entity or electric utility will use to inspect and operate the public power entity's or electric utility's infrastructure to mitigate the risk of wildfires.

(c) A description of the key individuals or position titles of those persons who are responsible for implementing the wildfire mitigation plan.

(d) A description of the procedures for deenergizing power lines and disabling reclosers to mitigate potential wildfires or provide a public safety power shut off shutoff plan.

(e) A description of the procedures, standards and time frames that the public power entity or electric utility will use to carry out vegetation management.

(f) A summary of the procedures the public power entity or electric utility intends to use to restore the public power entity's or electric utility's electrical system in the event of a wildfire.

(g) A description of community outreach and public awareness efforts.

(h) A description of potential participation, if applicable, with state or local wildfire protection efforts.

(i) A description of how the public power entity or electric utility will monitor compliance with the wildfire mitigation plan.

I. A public power entity or electric utility may reference procedures and standards that are not specifically enumerated in the wildfire mitigation plan in lieu of the requirements prescribed in subsection H of this section. Referenced material shall be included as attachments to the wildfire mitigation plan submission.

J. During the pendency of any review and approval process by the state forester prescribed in this section, any wildfire mitigation plan previously approved by the state forester shall remain approved and in effect.

K. The state forester may adopt rules to implement this section.

L. Any action by the state forester pursuant to this section and any comments on the wildfire mitigation plan provided by any county, city, town or other governmental entity pursuant to this section are the exercise of an administrative function involving the determination of fundamental governmental policy as prescribed in SECTION 12-820.01.

M. The state forester may charge reasonable fees to public power entities and electric utilities for the review and approval of wildfire mitigation plans as prescribed in this section. In establishing the fees, the state forester may consider factors such as the time and materials necessary to review the wildfire mitigation plans with consideration given to the relative size, resources and service territory complexity of the public power entity or electric utility submitting a wildfire mitigation plan. The state forester shall deposit fees collected pursuant to this subsection in the Cooperative Forestry fund established by section 37-1306.

N. For the purposes of this SECTION:

1. "Electric utility" has the same meaning prescribed in sections 30-901 and 40-1301.

2. "Public power entity" has the same meaning prescribed in sections 30-901 and 40-1301.

3. "Public safety power shut off shutoff" means the intentional temporary shut off shutoff of power during certain weather or environmental conditions to reduce the risk of wildfire.

4. "Wildfire" has the same meaning prescribed in sections 30-901 and 40-1301.

5. "Wildfire mitigation plan" has the same meaning prescribed in section 30-901 or 40-1301. END_STATUTE

Sec. 8. Title 45, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 45-119, to read:

START_STATUTE45-119. Colorado River litigation fund

A. The Colorado River Litigation Fund is established consisting of legislative appropriations. The Department 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.

B. Monies in the fund shall be used by the department for the sole purpose of initiating, defending or participating in litigation related to this state's apportionment of Colorado River water or any other rights of this state regarding Colorado River water under the Colorado River Compact of 1922, Boulder Canyon Project Act of 1928, Colorado River Decree of 1964, Colorado River Basin Project Act of 1968 or any other federal law that affects this state's apportionment of Colorado River water or the right to divert water controlled by the United States or to exercise this state's entitlement to water.

C. On notice from the director, 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.

D. Notwithstanding subsection B of this section, monies in the fund may not be used by the department for the purpose of initiating litigation against any entity that holds an entitlement to this state's apportionment of Colorado River water. END_STATUTE

Sec. 9. Repeal

Laws 2023, chapter 138, section 2 is repealed.

Sec. 10. Laws 2023, chapter 138, section 3, as amended by Laws 2024, chapter 214, section 5, is amended to read:

START_STATUTESec. 3. Fire incident management fund; exemption; delayed repeal; transfer of monies

A. The fire incident management fund is established consisting of legislative appropriations. The department of administration shall administer the fund. Not more than $200,000 of monies appropriated to the fund may be used by the department of administration to administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations. The department of administration shall distribute monies from the fund to provide grants to municipal fire departments and fire districts for hardware and software that:

1. Enables the statewide deployment of a secure incident management platform to fire and law enforcement agencies.

2. Provides a standardized incident command and management platform based on federal emergency management agency standards that enable diverse incident management and support entities to work together and ensure the following:

(a) A clearly defined chain of command.

(b) The use of common terminology.

(d) The achievement of response objectives.

(e) The efficient use of resources.

3. Provides a collaboration and communications solution that does the following:

(a) Identifies the location, status and assignment of assigned resources.

(b) Allows status updates, tracking and management of an incident.

(d) Allows the sharing of collaborative maps, building floor plans and images between public safety agencies.

(e) Allows collaboration and information sharing between disparate agencies during a mass casualty incident.

(f) Defines a federal emergency management agency or national incident management systems-based organizational structure for the management of incidents.

(g) Provides the ability to print standard integrated computer solutions forms for tracking and cost reimbursement.

(h) Provides enhanced telemetry-based firefighter safety monitoring.

(i) Works in areas without internet access in a disconnected mode.

(j) Provides a seamless and connected platform for notification, response and rostering.

(k) Provides cross-platform functionality.

(l) Provides a smartphone-based application for notification, accountability and situational awareness.

B. Each municipal fire department or fire district in this state may submit a grant request to the department of administration for the costs of the secure incident management system that meets all of the criteria described in subsection A of this section.

C. The department of administration shall award grants on a first-come, first-served basis. Grants that are awarded shall fully fund the costs of the secure incident management system for each municipal fire department or fire district for three years.

D. From and after June 30, 2025 2027, this section is repealed and all unexpended and unencumbered monies in the fire incident management fund established by this section revert to the state general fund. END_STATUTE

Sec. 11. Laws 2025, chapter 56, section 1 is amended to read:

Section 1.  Appropriations; nuclear emergency management fund

Pursuant to sections 26-306.01 and 26-306.02, Arizona Revised Statutes, the sum of $2,617,991 $2,667,991 in fiscal year 2025-2026 and the sum of $2,711,339 $2,761,339 in fiscal year 2026-2027 are appropriated from the nuclear emergency management fund established by section 26-306.02, Arizona Revised Statutes, as follows:

1. For use by the division of emergency management of the department of emergency and military affairs as provided in section 26-306.02, Arizona Revised Statutes, the sum of $1,266,916 and 8 full time equivalent positions in fiscal year 2025-2026 and the sum of $1,311,566 and 8 full time equivalent positions in fiscal year 2026-2027.

2. For use by the Arizona department of agriculture for programs relating to off-site nuclear emergency response plans, the sum of $347,109 and 2.44 full-time equivalent positions in fiscal year 2025-2026 and the sum of $352,877 and 2.44 full-time equivalent positions in fiscal year 2026-2027.

3. For disbursement by the division of emergency management of the department of emergency and military affairs to departments and agencies of Maricopa county that are assigned responsibilities under the off-site nuclear emergency response plan, the sum of $953,966 in fiscal year 2025-2026 and the sum of $996,896 in fiscal year 2026-2027.

4. For disbursement by the division of emergency management of the department of emergency and military affairs to departments and agencies of the city of Buckeye that are assigned responsibilities under the off-site nuclear emergency response plan, the sum of $100,000 in fiscal year 2025-2026 and the sum of $100,000 in fiscal year 2026-2027.

Sec. 12. Laws 2025, chapter 56, section 2 is amended to read:

Sec. 2. Assessments

Pursuant to section 26-306.01, Arizona Revised Statutes, the sum of $2,617,991 $2,667,991 in fiscal year 2025-2026 and the sum of $2,711,339 $2,761,339 in fiscal year 2026-2027, plus any applicable interest, are assessed against each consortium of public service corporations and municipal corporations engaged in constructing or operating a commercial nuclear generating station in this state.

Sec. 13. Fire incident management grant program; department of administration; report

A. The fire incident management grant program is established. The department of administration shall:

1. Administer the grant program.

2. Award grants for the purposes of this section from monies appropriated to the department of administration in fiscal year 2025-2026 and from previously appropriated monies appropriated to the department of administration pursuant to section 14 of this act.

3. From and after June 30, 2025, use not more than $250,000 of monies appropriated to administer the program, including conducting audits of grant recipients.

4. Use any remaining monies to provide grants to municipal fire departments and fire districts for software that:

(a) Enables the statewide deployment of a secure incident management platform to fire and law enforcement agencies.

(b) Provides a standardized incident command and management platform based on federal emergency management agency standards that enables diverse incident management and support entities to work together and ensures the following:

(i) A clearly defined chain of command.

(ii) The use of common terminology.

(iii) The safety of first responders and other persons.

(iv) The achievement of response objectives.

(v) The efficient use of resources.

(i) Identifies the location, status and assignment of assigned resources.

(ii) Allows status updates, tracking and management of an incident.

(iii) Allows secure messaging and file sharing to all users involved in an incident.

(iv) Allows the sharing of collaborative maps, building floor plans and images between public safety agencies.

(v) Allows collaboration and information sharing between disparate agencies during a mass casualty incident.

(vi) Defines a federal emergency management agency or national incident management systems based organizational structure for the management of incidents.

(vii) Provides the ability to print standard integrated computer solutions forms for tracking and cost reimbursement.

(viii) Provides enhanced telemetry-based firefighter safety monitoring.

(ix) Works in areas without internet access in a disconnected mode.

(x) Provides a seamless and connected platform for notification, response and rostering.

(xi) Provides cross-platform functionality.

(xii) Provides a smartphone-based application for notification, accountability and situational awareness.

B. Each municipal fire department or fire district in this state may submit a grant request to the department of administration for the costs of the secure incident management software system that meets all of the criteria described in subsection A, paragraph 4 of this section.

C. The department of administration shall award grants on a first-come, first-served basis. Grants that are awarded:

1. Shall fully fund the costs of the secure incident management software system for each municipal fire department or fire district for three years.

2. Must contain a requirement that:

(a) Any portion of a grant award that is not fully encumbered by a municipal fire department or fire district within one year after the award is made shall be returned to the department of administration and may be used by the department of administration to award additional grants pursuant to this section.

(b) Any municipal fire department or fire district that is awarded a grant shall sign a contract with a state vendor within one year after receiving the award. If a grant recipient fails to sign a contract within one year after the award is made, the grant award shall be returned to the department of administration and may be used by the department of administration to award additional grants as prescribed by this section. A municipal fire department or fire district that fails to sign a contract within one year after the award is made may reapply for a new grant.

D. The department of administration may review proposed contracts between grant recipients and state vendors and perform audits to ensure that grant monies are used in accordance with this section.

E. On or before December 31, 2025, the department of administration shall submit a report on the grant program to the president of the senate, the speaker of the house of representatives and the governor and shall provide a copy of this report to the secretary of state. The report shall include:

1. The name of each applicant that applied for a grant.

2. The name of each entity that was awarded a grant and the amount awarded to each entity.

Sec. 14. Fire incident management grant program awards; encumbrance; return; additional awards

Any portion of a grant award that is made with monies appropriated for fire incident management grants pursuant to Laws 2022, chapter 313, section 5 or Laws 2023, chapter 133, section 6, as amended by Laws 2023, chapter 170, section 11, and that is not fully encumbered by a municipal fire department or fire district within twelve months after the initial award of the grant shall be returned to the department of administration and may be used by the department of administration to award additional grants for the fire incident management grant program.

Sec. 15. Underground storage tank revolving fund; use of monies

Notwithstanding any other law, in fiscal year 2025-2026, the department of environmental quality may use up to $6,531,000 from the underground storage tank revolving fund established by section 49-1015, Arizona Revised Statutes, in fiscal year 2025-2026 for:

1. Administrative costs of the department.

2. Remediating sewage discharge issues in Naco, Arizona and other border areas of this state.

Sec. 16. Arizona water banking fund; use of monies

In addition to the purposes provided in section 45-2425, Arizona Revised Statutes, monies appropriated to the Arizona navigable stream adjudication commission from the Arizona water banking fund established by section 45-2425, Arizona Revised Statutes, may be used in fiscal year 2025-2026 to pay legal fees.

Sec. 17. Arizona water protection fund; use of monies

Notwithstanding section 45-2114, Arizona Revised Statutes, in fiscal year 2025-2026, the Arizona water protection fund commission may grant to the department of water resources up to $336,000 of the unobligated balance in the Arizona water protection fund established by section 45-2111, Arizona Revised Statutes, to pay for administrative costs of the department in fiscal year 2025-2026.

Sec. 18. Water quality assurance revolving fund; use of monies

Notwithstanding section 49-282, Arizona Revised Statutes, the $18,000,000 transfer from the state general fund to the water quality assurance revolving fund established by section 49-282, Arizona Revised Statutes, for fiscal year 2025-2026 is suspended.

Sec. 19. Department of environmental quality; vehicle emissions testing fees; definition

A. Notwithstanding any other law, in fiscal year 2025-2026, the director of the department of environmental quality shall maintain fees for tests conducted in area A at the area A emission fee level as of June 30, 2025.

B. For the purposes of this subsection, "area A" has the same meaning prescribed in section 49-541, Arizona Revised Statutes.

Sec. 20. State land department; application processing timeline report

On or before February 1, 2026, the state land department shall provide a report to the president of the senate, the speaker of the house of representatives, the chairperson of the senate committee on natural resources and the chairperson of the house of representatives committee on natural resources, energy and water that includes the total number of applications that are currently pending at the state land department in the following phases:

1. The administrative completeness review phase of the overall application processing timeline, including the average number of days these applications have been pending in the administrative completeness review phase.

2. The substantive review phase of the overall application processing timeline, including the average number of days these applications have been pending in the substantive review phase.

Sec. 21. Retroactivity

Laws 2023, chapter 138, section 3, as amended by Laws 2024, chapter 214, section 5 and this act, and section 13 of this act apply retroactively to from and after June 29, 2025.