REFERENCE TITLE: state land oversight board; establishment

 

 

 

 

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

 

 

 

HB 2943

 

Introduced by

Representatives Marshall: Heap

 

 

 

 

 

 

 

 

AN ACT

 

Amending title 37, chapter 2, Arizona Revised Statutes, by adding article 2.2; amending section 37-331.03, Arizona Revised Statutes; 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, Arizona Revised Statutes, is amended by adding article 2.2, to read:

ARTICLE 2.2. STATE LAND OVERSIGHT BOARD

START_STATUTE37-226. State land oversight board; membership

A. The state land oversight board is established consisting of five members. Beginning at the 2028 general election and every four years thereafter, the qualified electors of this state shall elect the board members of the state land oversight board.

B. A Board member shall serve a four-year term beginning on the first Monday in January subsequent to their election.  If a vacancy as prescribed in section 38-291 occurs during a board member's term, the governor shall appoint a new board member as prescribed in section 16-230.

C. board members are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.

D. The board may meet at any time or place expedient to the performance of the board's duties. The members of the board shall select a chairperson and vice chairperson from the membership of the board.

E. The chairperson shall:

1. Schedule the time, date and location of meetings of the oversight board.  The chairperson shall call at least one meeting each month.

2. Set the agenda for any oversight board meetings, which may be modified by a majority vote of the board members.

3. Distribute written decisions of the oversight board.

F. The vice chairperson shall fulfill all duties of the chairperson if a vacancy occurs for the position of chairperson.

G. A member of the board may not participate in any matter in which the member has a direct financial interest. For the purposes of this subsection, "direct financial interest" includes being a relative of, business partner of or holding stocks or bonds in, except through a mutual or exchange fund, an entity that has a matter pending before the board.

H. The department shall make meeting space available to the board at locations and times convenient to the board and shall provide all administrative and other staff support necessary to perform the powers and duties of the board. END_STATUTE

START_STATUTE37-227. Powers and duties

A. notwithstanding section 38-211, The state land oversight board may remove the commissioner from office subject to all of the following conditions:

1. The board provides the commissioner with a notice and an opportunity to be heard before a final vote on removal.

2. SUBSTANTIAL evidence exists that the Commissioner be removed for CAUSE.

3. the removal of the commissioner is in the best INTEREST of the state land trust.

b. on the removal of the commissioner pursuant to subsection a of this section, the governor shall appoint a new COMMISSIONER as prescribed in section 38-211.

c. THe board shall do all of the following:

1. Oversee the filing of alternative appeals and INVESTIGATE allegations of violations of the arizona small business bill of rights AND SUBSTANTIVE policy statements PURSUANT to section 37-228.

2. every ten years, Review and ensure the commissioner submits the conceptual land use plan required by section 37-331.03.

3. every five years, Review and ensure the commissioner submits the five-year disposition plan required by section 37-331.03.

4. Review all determinations of the commissioner of the highest and best use of state lands made pursuant to this title or section 27-251. The commissioner's determination of highest and best use of state lands is not valid unless affirmed by the state land oversight board.

5. Review all proposed rulemaking and substantive policy statements made by the department. a substantive policy statement or rulemaking package is not valid unless affirmed by the state land oversight board.

6. Ensure that the commissioner and the department comply with all applicable provisions of title 41, chapter 6, including all of the following:

(a) licensing time frames.

(b) Rulemaking requirements.

(c) the Governor's regulatory review council's review.

(d) The crafting and enforcement of substantive policy statements.

7. Review all proposed notices of VIOLATIONS and ENFORCEMENT actions of the department. a notice of VIOLATION and ENFORCEMENT action is not valid unless affirmed by the state land oversight board.

8. Review all MATTERS of the department involving the office of ADMINISTRATIVE hearings. notwithstanding section 41-1092.08, any DECISION of the office of ADMINISTRATIVE hearings relating to the department is not valid unless affirmed by the state land oversight board.

D. This section does not infringe on any right to further appeal as provided by law. END_STATUTE

START_STATUTE37-228. Alternative appeal process

A. In lieu of filing an administrative action or appeal of a decision made by the commissioner with the office of administrative hearings, a person may seek relief from the state land oversight board.

B. In lieu of filing a complaint or petition with the governor's regulatory review council alleging a violation of the arizona small business bill of rights or that a substantive policy statement exceeds the permissible scope, a person may seek relief from the state land oversight board.

C. For the purposes of this section, the state land oversight board may reward the same relief as the governor's regulatory review council or the office of administrative hearings.

D. a person who is challenging an administrative action, filing an appeal or alleging a violation of the laws of this state is not required to pursue on alternative appeal prescribed by this section to prove the person exhausted all applicable administrative remedies.

E. This section does not infringe on any right to further appeal as provided by law. END_STATUTE

Sec. 2. Section 37-331.03, Arizona Revised Statutes, is amended to read:

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

A. The commissioner shall create 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 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 plan at least every ten years.

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 each conceptual land use plan, and revision of the conceptual land use plan, to the urban land planning oversight committee and the state land oversight board for review.

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. The commissioner shall create five year five-year disposition plans for all state trust land in this state, based at a minimum on market demand and anticipated transportation and infrastructure availability. The commissioner shall:

1. Review and update each five-year disposition plan 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 each five-year disposition plan and revision to the urban land planning oversight committee and the state land oversight board to ensure conformity with the conceptual land use plan under subsection A of this section.

E. 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.

(c) All natural and artificial constraints and opportunities associated with the land.

2. "Five year 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