REFERENCE TITLE: state land use; highest; best

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2755

Introduced by

Representatives Griffin: Blackman

AN ACT

Amending title 37, chapter 2, article 3, Arizona Revised Statutes, by adding section 37-262; amending title 37, chapter 2, article 4, Arizona Revised Statutes, by adding section 37-296; RELATING to state lands.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Title 37, chapter 2, article 3, Arizona Revised Statutes, is amended by adding section 37-262, to read:

START_STATUTE37-262. Sale of state lands; highest and best use; presumption; minerals

A. Notwithstanding any other law, if there is a conflict in the proposed land use for a parcel of state lands between a mining use and another commercial use, the commissioner shall presume the highest and best use of the parcel is for mineral extraction or exploration.

B. If a person desires to purchase state lands and complies with section 37-232, the person may overcome the presumption prescribed in subsection A of this section and a public auction shall be:

1. Held within ninety days after the person complies with section 37-232.

2. open to all proposed land uses. END_STATUTE

Sec. 2. Title 37, chapter 2, article 4, Arizona Revised Statutes, is amended by adding section 37-296, to read:

START_STATUTE37-296. Lease of state lands; highest and best use; presumption; minerals

A. Notwithstanding any other law, if there is a conflict in the proposed land use for a parcel of state lands between a mining use and another commercial use, the commissioner shall presume the highest and best use of the parcel is for mineral extraction or exploration.

B. If a person desires to lease state lands and complies with section 37-281, the person may overcome the presumption prescribed in subsection A of this section and a public auction shall be:

1. Held within ninety days after the person complies with section 37-281.

2. open to all proposed land uses. END_STATUTE

Sec. 3. Legislative findings

The legislature finds that:

1. Minerals and common variety minerals exist where they are.

2. Minerals and common variety minerals are needed for all forms of commercial development on state trust lands, including affordable housing and semiconductor fabrication.

3. Development that occurs over state trust lands that contains minerals permanently locks away those minerals, preventing the minerals from being extracted and permanently foreclosing their revenues from accruing to the trust.

4. Mineral extraction is subject to reclamation plans that restore the land to its previous condition before extraction occurred and this makes the land usable for other commercial uses once mining is completed.

5. Pursuant to the Arizona Constitution and the Enabling Act, the extraction of minerals must occur before any other commercial land use.