HB2426 - 572R

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

Section 1.1. Section 37-331.03, Arizona Revised Statutes, is amended to read:

START_STATUTE37-331.03. Conceptual urban state trust land use plans; five year state trust land disposition plans; definitions

A. The commissioner shall create and approve conceptual land use plans for all urban state trust land in this state and other state trust lands the commissioner considers to be appropriate. The commissioner shall:

1. Prioritize the creation of conceptual land use plans to the extent possible to:

(a) Correlate with the rate of population growth in the urban areas in this state.

(b) Coincide with the production of municipal general plans under title 9, chapter 4, article 6 and county plans under title 11, chapter 6, article 1.

2. Revise and update each conceptual land use plan at least every ten years. The COMMISSIONER shall issue a written order approving each conceptual land use plan and conceptual land use plan revision.

3. Consult with the city, town or county in which the land is located and with any regional planning organization regarding integrating the conceptual land use plan into the general land use plan of the city, town or county.

4. Submit Make each conceptual land use plan, and revision of the a conceptual land use plan, to the urban land planning oversight committee for review and the Commissioner's written approval of each CONCEPTUAL land use plan or conceptual land use plan revision AVAILABLE to the public on the department's website.

B. On approval of the conceptual land use plan by the commissioner under this section, the conceptual land use plan is considered to be a state general plan for the purposes of this article.

C. The commissioner may create the conceptual land use plans under subsection A of this section by any of the following methods:

1. Using department staff or private consultants.

2. Entering into participation contracts pursuant to section 37-239.

3. Issuing planning permits for urban lands pursuant to section 37-338.

4. Entering into planning contracts for urban lands or other state trust lands the commissioner considers to be appropriate, including compensation as provided by section 37-338, subsection D.

d. On the commissioner's approval of a conceptual land use plan, the conceptual land use plan, as applied to state lands that have not been annexed as of the effective date of this amendment to this section:

1. is the COntrolling land use designation for state lands.

2. Supersedes any conflicting county or municipal zoning.

D. E. The commissioner shall create a five year disposition plans plan for all state trust land in each county in this state, based at a minimum on market demand, anticipated transportation and infrastructure availability. The commissioner shall do all of the following:

1. Review and update each five year disposition plan for each county each year as may be necessary.

2. Consult with the city, town or county in which the land is located and with any regional planning organization.

3. Submit Make each five year disposition plan, and each five year disposition plan revision to the urban land planning oversight committee and each written order that adopts or approves a five year disposition plan or five year disposition plan revision AVAILABLE on the department's website to ensure conformity with the conceptual land use plan under subsection A of this section.

4. Ensure that each five year disposition plan and five year disposition revision conforms with the conceptual land use plan.

5. Issue a written order that approves and adopts each five year disposition plan and five year disposition revision.

E. f. For the purposes of this section:

1. "Conceptual land use plan" means a plan that is developed for urban state trust land and other state trust lands the commissioner considers to be appropriate and that identifies:

(a) Appropriate land uses, including commercial, industrial, residential and open space uses.

(b) Transportation corridors and infrastructure requirements.

2. "Five year disposition plan" means a plan that identifies the land projected to be sold, leased, reclassified for conservation purposes, master planned or zoned during the next five years. END_STATUTE

Sec. 2.2. Five year disposition plans; conceptual land use plan; requirements; delayed repeal

A. Within two years of the effective date of this act, the state land commissioner shall:

1. Complete the five year disposition plans for state trust lands and update the conceptual land use plan for state lands pursuant to section 37-331.03, subsection E, Arizona Revised Statutes, as amended by this act.

2. Adopt written policies and procedures for updating:

(a) The five year disposition plan every five years.

(b) The conceptual land use plan every ten years.

3. Adopt written policies and procedures on how the state land department will use the five year disposition plans and the conceptual land use plan for determining whether state trust lands are or will be sent to public auction.

4. Provide a copy of the five year disposition plans and the conceptual land use plan and the policies and procedures adopted pursuant to this section to the president of the senate and the speaker of the house of representatives.

B. This section is repealed from and after June 30, 2029.

Sec. 3.3. Legislative findings

The legislature finds that:

1. According to the auditor general's performance audit and sunset review of the state land department completed on July 9, 2025, the state land department has failed to develop the statutorily required five year disposition plans since 2016.

2. According to the auditor general's performance audit and sunset review, all five members of the urban land planning oversight committee have been vacant since at least 2018.

3. Pursuant to section 37-331.02, Arizona Revised Statutes, and section 37-331.03, Arizona Revised Statutes, as amended by this act, the urban land planning oversight committee serves in an advisory role only and is not required for the commissioner to fulfill the commissioner's obligations to create a five year disposition plan pursuant to statute.

4. The fact that the governor has not appointed any members to the urban land planning oversight committee has not absolved the commissioner of the commissioner's obligations to create a five year disposition plan as prescribed in section 37-331.03, Arizona Revised Statutes, as amended by this act.

5. The creation of a five year disposition plan is necessary for housing affordability and to ensure the highest and best use of the land for the beneficiaries of the trust.