SB1336 - 572R

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

Section 1. Section 37-102, Arizona Revised Statutes, is amended to read:

START_STATUTE37-102. State land department; powers and duties

A. The state land department shall administer all laws relating to lands owned by, belonging to and under the control of this state.

B. The department shall have charge and control of all lands owned by this state, and timber, stone, gravel and other products of such lands, except lands under the specific use and control of state institutions and the products of such lands.

C. The department, in the name of this state, may commence, prosecute and defend all actions and proceedings to protect the interest of this state in lands within this state or the proceeds of lands within this state. Actions shall be commenced and prosecuted at the request of the department by the attorney general, a county attorney or a special counsel under the direction of the attorney general.

D. The department shall be the official representative of this state in any communication between this state and the United States government in all matters respecting state lands or any interest of this state in or to the public lands within this state.

E. The summons in any action against this state respecting any lands of this state or the products of such lands and all notices concerning such lands or products shall be served on the commissioner. Summonses, warrants or legal notices served on behalf of the department may be served by the commissioner or the commissioner's deputy, or by the sheriff or a constable of any county of this state.

F. The department shall maintain as a public record in each of the department's offices a public docket and index of all matters before the department that may be subject to appeal to the board of appeals or to the courts and all sale, exchange and lease transactions subject to bidding by the public. The department shall list a matter on the public docket immediately after an application or other request for department action is received by the department. The department shall include in the public docket every formal action and decision affecting each matter in question. The department shall establish by rule a means by which any person may obtain a copy of the public docket at the current copying cost.

G. The department shall reappraise or update the department's original appraisal of property to be leased, exchanged or sold if the board of appeals' approval of the lease or sale occurred more than two hundred forty days before the auction.

H. To the extent possible, the state land department shall:

1. Prepare maps of the ancillary military facilities described in section 28-8461, paragraph 7, subdivisions (b) and (c).

2. Make a map of the ancillary military facility described in section 28-8461, paragraph 7, subdivision (a) available to the public in printed or electronic format and provide the map in printed or electronic format to the state real estate department.

3. On receipt of proper information from the military installation commander with responsibility for the military electronics range, prepare a map of the military electronics range as defined in section 9-500.28 and make that map available to the public in printed or electronic format and provide the map in printed or electronic format to the state real estate department. Within ninety days after receipt of notice of any change in the boundaries of the military electronics range from the military installation commander, the state land department shall revise its map and provide the map to the public and to the state real estate department.

4. On or before December 31, 2024 and on receipt of proper information from the applicable military installation's and range's and Arizona national guard site's commanders, prepare electronic legal descriptions and maps of the military installation and range and Arizona national guard site and their respective influence areas as defined in sections 9-500.50 and 11-818.01 and provide the legal descriptions and maps to the state real estate department and the public. The state land department shall make changes to the boundaries of the military installation and range and Arizona national guard site and their respective influence areas and provide them to the state real estate department and the public within ninety days after receipt of those changes from the military installation's and range's and Arizona national guard site's commanders.

5. Adopt rules to establish appropriate time frames for action on any application or other comparable request that an applicant or instrument holder submits to the department as prescribed in title 41, chapter 6, article 7.1. The department shall MAINTAIN a list on the department's website of all license applications and actions taken on the applications. If the department fails to act within any time frame established pursuant to this paragraph, the department is subject to the same penalties prescribed in section 41-1077.

6. Restrict the use of a lease or permit holdover provision to not more than ninety days. if the department does not take action on a lease renewal within ninety days, the lease automatically extends for three years and ninety days after the initial date of expiration. Notwithstanding any other law, A holdover tenant whose lease is terminated by the department shall receive immediate reimbursement for the fair market value, as determined by an independent third-party vendor, of any reasonable and customary improvements that the holdover tenant made to the state land.

7. For a lease renewal and special land use permit:

(a) approve any improvements that are customary in the lessee's or permittee's course of business. Notwithstanding any other law, On conclusion of the lease or special land use permit, the department shall reimburse the lessee or permittee for the improvements with monies from the state land trust.

(b) NOT LESS THAN SIX MONTHS before the EXPIRATION OF the LEASE renewal OR special land use PERMIT, pROVIDE NOTICE OF EXPIRATION. tHE NOTICE must INCLUDE all of THE FOLLOWING:

(i) ANY PROPOSED RENTAL INCREASE or CHANGE TO THE TERMS AND CONDITIONS OF THE LEASE renewal OR special land use PERMIT.

(ii) tHE INTENT OF THE department TO RENEW OR TERMINATE THE LEASE ON EXPIRATION AND AN EXPLANATION OF THE DEPARTMENT'S RENEWAL OR TERMINATION PROCESS.

(iii) THE JUSTIFICATION FOR THE commissioner's decision PURSUANT TO SECTION 37-133.

8. RESTRICT the use of special land use permits to ONLY temporaRY land uses that do not have a dedicaTED LAND use lease or perMit.

9. Collaborate with the state natural resource conservation board established by section 41-6011, or the applicable natural resource conservation district or soil and water conservation district as designated by the board, on the review of any proposed federal conservation-related permit on nonurban state lands.

10. For the lease of the state lands, not include terms in the lease that are more stringent than statute.

11. Protect and uphold the due process rights of a person that does business with the department consistent with the regulatory bill of rights prescribed in section 41-1001.01. In ADDITION to submitting a complaint to the office of ombudsman-citizens aide as prescribed in section 41-1001.01, subsection a, PARAGRAPH 19, a person may file a complaint with the attorney general alleging a violation of this paragraph. The attorney general shall investigate any complaints and issue a written order outlining any FINDINGS.

I. The state land department shall provide each map and the legal description of the boundaries of each ancillary military facility described in section 28-8461, paragraph 7 in electronic format to the state real estate department. Each map prepared by the state land department pursuant to this section shall:

1. Describe the ancillary military facility, the territory in the vicinity of the ancillary military facility and the high noise and accident potential zone, accident potential zone one and accident potential zone two associated with the ancillary military facility.

2. Be submitted to the county in which the ancillary military facility is located.

3. Be made available to the public.

J. The state land department shall prepare a military training route map. The map shall contain military training route numbers in this state that are used by various United States armed forces. The map shall be dated.

K. When preparing the military training route map, the state land department shall use information contained in the most current department of defense publication that is entitled "area planning military training routes for North and South America".

L. The military training route map shall be made available to the public.

M. Within ninety days after the department is notified of a change of a military training route in this state, the department shall prepare a revised military training route map. The map shall be dated and contain a statement that the map supersedes all previously dated maps. The state land department shall send the revised map to the state real estate department electronically and shall also send an accompanying letter specifying the military training route changes. The state land department shall send the revised map and an accompanying letter specifying the military training route changes to the municipalities affected by the changes and to all counties.

N. The department shall submit the military training route map prepared pursuant to this section to the counties in either an electronic or a printed format. The format shall be determined by the receiving county.

O. The state land department shall provide the legal description of the boundaries of the military training routes as delineated in the military training route map to the state real estate department in electronic format.

P. The state land department shall prepare a military restricted airspace map. The map shall contain military restricted airspace in this state that is used by various United States armed forces. The map shall be dated.

Q. When preparing the military restricted airspace map, the state land department shall use information contained in the most current department of transportation publication that is entitled "aeronautical chart".

R. The military restricted airspace map shall be made available in printed or electronic format to the public at the state land department and at the state real estate department.

S. Within ninety days after the department is notified of a change of military restricted airspace in this state, the department shall prepare a revised military restricted airspace map. The map shall be dated and contain a statement that the map supersedes all previously dated maps. The state land department shall send the revised map to the state real estate department electronically and shall also send an accompanying letter specifying the military restricted airspace changes. The state land department shall send the revised map and an accompanying letter specifying the military restricted airspace changes to the municipalities affected by the changes and to all counties.

T. The department shall submit the military restricted airspace map prepared pursuant to this section to the counties in either an electronic or a printed format. The format shall be determined by the receiving county.

U. The state land department shall provide the legal description of the boundaries of the military restricted airspace as delineated in the military restricted airspace map to the state real estate department in electronic format.

V. The department may accept title to and manage real estate, property rights and related infrastructure acquired pursuant to section 26-262, subsection K for preserving or enhancing military installations in this state. END_STATUTE

Sec. 2. Title 37, chapter 1, article 1, Arizona Revised Statutes, is amended by adding sections 37-111 and 37-112, to read:

START_STATUTE37-111. State land oversight board; membership; fingerprinting; conduct of office; definition

A. The state land oversight board is established to provide broad oversight of the state land department and to perform other duties as prescribed by law.

B. The board consists of the following members:

1. Four persons from a county with a population of four hundred thousand persons or more.

2. Four persons from a county with a population of less than four hundred thousand persons.

3. One person who specializes in finance or statewide land use needs.

4. The following as advisory members without the power to vote but who may attend executive sessions of the board:

(a) The president of the senate or the president's designee.

(b) The speaker of the house of representatives or the speaker's designee.

(d) The minority leader of the house of representatives or the minority leader's designee.

(e) The commissioner or the commissioner's designee.

(f) The director of the department of environmental quality or the director's designee.

(g) The director of the DEPARTMENT of water resources or the director's designee.

(h) The director of the department of administration or the director's designee.

(i) The chief executive officer of the Arizona commerce authority or the chief executive officer's designee.

C. The following apply to the members appointed pursuant to subsection B, paragraphs 1 and 2 of this section:

1. No three appointed members of the board may be residents of the same county, and at least one appointed member of the board shall be a resident of each county with a population of four hundred thousand persons or more.

2. Members must have a substantial knowledge of and experience with land management or finance, including public finance.

D. The following apply to all members appointed pursuant to subsection B, paragraphs 1, 2 and 3 of this section:

1. The governor shall appoint two of the members from a county with a population of four hundred thousand persons or more, shall appoint two of the members from a county with a population of less than four hundred thousand persons and shall appoint the member who specializes in finance or statewide land management from a joint list of at least five qualified applicants submitted by the president of the senate and the speaker of the house of representatives.

2. The president of the senate and the minority leader of the senate shall appoint one of the members from a county with a population of four hundred thousand persons or more and one of the members from a county with a population of less than four hundred thousand persons. The president of the senate and the minority leader of the senate shall alternate the terms in which these members are appointed.

3. The speaker of the house of representatives and the minority leader of the house of representatives shall appoint one of the members from a county with a population of four hundred thousand persons or more and one of the members from a county with a population of less than four hundred thousand persons. The speaker of the house of representatives and the minority leader of the house of representatives shall alternate the terms in which these members are appointed.

4. Appointed members serve five-year terms of office beginning and ending on the third Monday in January and are eligible for reappointment. A member may be removed only for cause by the person who then holds the same office as the person who appointed that member.

5. Members shall be residents of this state for at least two years.

6. The order in which the members are appointed pursuant to subsection B, paragraphs 1 and 2 of this section is:

(a) For the initial term and every third term thereafter, the president of the senate and the minority leader of the senate shall appoint first, the governor shall appoint second and the speaker of the house of representatives and the minority leader of the house of representatives shall appoint third.

(b) For the second term and every third term thereafter, the governor shall appoint first, the speaker of the house of representatives and the minority leader of the house of representatives shall appoint second and the president of the senate and the minority leader of the senate shall appoint third.

(c) For the third term and every third term thereafter, the speaker of the house of representatives and the minority leader of the house of representatives shall appoint first, the president of the senate and the minority leader of the senate shall appoint second and the governor shall appoint third.

E. Before a member is appointed to the board pursuant to subsection C or D of this section, the prospective member shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The governor shall submit the fingerprints to the department of public safety. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

F. The board shall elect a chairperson of the board from among the voting members. The chairperson may appoint subcommittees as necessary.

G. The board may request assistance from representatives of other state agencies. The department shall provide technical assistance to the board.

H. Board members serve without compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2. A board member who is otherwise employed as a public officer may not receive reimbursement pursuant to this subsection if it is otherwise prohibited by law.

I. A majority of the voting members constitutes a quorum for the purpose of an official meeting for conducting business. An affirmative vote of a majority of the voting members present at an official meeting is sufficient for the board to take any action.

J. The board shall keep and maintain a complete and accurate record of all board proceedings.

K. The board and any subcommittees are subject to title 38, chapter 3, article 3.1, relating to public meetings, except advisory nonvoting members of the board may attend executive sessions of the board.

L. The board, its subcommittees and the officers and any employees of the board are subject to title 38, chapter 3, article 8, relating to conflicts of interest. In addition to the conflict of interest provisions in title 38, chapter 3, article 8, and except for employees of this state or a political subdivision of this state, the following apply:

1. A person is not eligible for appointment to the board if the person or the person's relative meets any of the following criteria:

(a) Is employed by or participates in the management of a business entity or other organization that leases or buys state lands.

(b) Owns, controls or has, directly or indirectly, more than a ten percent interest in a business entity or other organization that buys or leases state lands.

(d) Has a personal financial interest in the conveyance of state lands. The person or the person's relative does not have a personal financial interest if the person or the person's relative is a member of a class of persons and it reasonably appears that a majority of the total membership of that class is to be affected by the action.

2. A person may not be a voting member of the board or act as the general counsel to the board or authority if the person is required to register as a lobbyist.

3. A person may not be a member of the board or an employee of the board if the person or the person's relative is an officer, employee or paid consultant for a water users' association or trade association.

M. An employee of a political subdivision of this state who serves on the board may not participate in the consideration of or a vote concerning any conveyance that will directly benefit the political subdivision.

N. The board shall adopt written policies, procedures and guidelines for standards of conduct, including a gift policy, for members of the board and for officers and employees of the board.

O. The board is a public body that is subject to title 38, chapter 3, article 3. The board shall operate on the state fiscal year.

P. All state agencies shall cooperate with the board and make available data pertaining to the functions of the board as requested by the board.

Q. For the purposes of this section, "trade association" means any cooperative, association or business organization, whether or not incorporated under federal or state law, that is designed to assist its members, industry or profession in advocating for or promoting their common interest.END_STATUTE

START_STATUTE37-112. State land oversight board; powers and duties; annual report

A. The state land oversight board may:

1. Hold public meetings to receive testimony and stakeholder input regarding the state land department's processes.

2. Confer with subject matter experts on any matters relating to managing, leasing, developing and disposing state lands.

B. The board shall:

1. Have broad discretion on overseeing the department's adoption of rules and policies.

2. Review rulemaking, internal timelines and procedural efficiencies that affect applicants, lessees and purchasers of state trust lands.

3. Collaborate with the department to identify opportunities for improved transparency, predictability and accountability relating to the state land department's processes.

4. Ensure the department complies with the laws of this state.

5. On request of the chairperson of the senate natural resources committee of reference and the house of representatives natural resources, energy and water committee of reference, or their successor committees of reference, provide testimony on the operations and oversight of the department.

6. On or before June 1, 2027 and each year thereafter, submit a report of the board's findings and recommendations to the chairpersons of the senate NATURAL resources committee of reference and the house of representatives natural resources, ENERGY and water committee of reference, or their successor committees of reference, the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state. END_STATUTE

Sec. 3. Section 37-331.03, Arizona Revised Statutes, is amended to read:

START_STATUTE37-331.03. Conceptual land use plans; 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 land use plans to the extent possible to:

(a) Correlate with the rate of population growth in the urban and rural 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 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 disposition plans for all state trust land in this state for each county, based at a minimum on market demand, anticipated transportation and infrastructure availability. The commissioner shall:

1. Review and update each five year disposition plan each year every three years or 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. Hire third-party contractors.

4. include residential DEVELOPMENT WITHIN the service area of a municipal provider as defined in section 45-561.

3. 5. Submit each five year disposition plan and revision to the urban land planning oversight committee 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.

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. 4. Section 41-1001, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1001. Definitions

In this chapter, unless the context otherwise requires:

1. "Agency" means any board, commission, department, including the state land department, officer or other administrative unit of this state, including the agency head and one or more members of the agency head or agency employees or other persons directly or indirectly purporting to act on behalf or under the authority of the agency head, whether created under the Constitution of Arizona or by enactment of the legislature. Agency does not include the legislature, the courts or the governor. Agency does not include a political subdivision of this state or any of the administrative units of a political subdivision, but does include any board, commission, department, officer or other administrative unit created or appointed by joint or concerted action of an agency and one or more political subdivisions of this state or any of their units. To the extent an administrative unit purports to exercise authority subject to this chapter, an administrative unit otherwise qualifying as an agency must be treated as a separate agency even if the administrative unit is located within or subordinate to another agency.

2. "Appealable agency action" has the same meaning prescribed in section 41-1092.

3. "Audit" means an audit, investigation or inspection pursuant to title 23, chapter 2 or 4.

4. "Code" means the Arizona administrative code, which is published pursuant to section 41-1011.

5. "Committee" means the administrative rules oversight committee.

6. "Contested case" means any proceeding, including rate making, except rate making pursuant to article XV, Constitution of Arizona, price fixing and licensing, in which the legal rights, duties or privileges of a party are required or permitted by law, other than this chapter, to be determined by an agency after an opportunity for an administrative hearing.

7. "Council" means the governor's regulatory review council.

8. "Delegation agreement" means an agreement between an agency and a political subdivision that authorizes the political subdivision to exercise functions, powers or duties conferred on the delegating agency by a provision of law. Delegation agreement does not include intergovernmental agreements entered into pursuant to title 11, chapter 7, article 3.

9. "Emergency rule" means a rule that is made pursuant to section 41-1026.

10. "Fee" means a charge prescribed by an agency for an inspection or for obtaining a license.

11. "Final rule" means any rule filed with the secretary of state and made pursuant to an exemption from this chapter in section 41-1005, made pursuant to section 41-1026, approved by the council pursuant to section 41-1052 or 41-1053 or approved by the attorney general pursuant to section 41-1044. For purposes of judicial review, final rule includes expedited rules pursuant to section 41-1027.

12. "General permit" means a regulatory permit, license or agency authorization that is for facilities, activities or practices in a class that are substantially similar in nature and that is issued or granted by an agency to a qualified applicant to conduct identified operations or activities if the applicant meets the applicable requirements of the general permit, that requires less information than an individual or traditional permit, license or authorization and that does not require a public hearing.

13. "License":

(a) Includes the whole or part of any agency permit, certificate, approval, registration, charter or similar form of permission required by law. , but

(b) Except for a license issued by the state land department, does not include a license required solely for revenue purposes.

14. "Licensing" includes the agency process respecting the grant, denial, renewal, revocation, suspension, annulment, withdrawal, change, reduction, modification or amendment of a license, including an existing permit, certificate, approval, registration, charter or similar form of permission, approval or authorization obtained from an agency by the holder of a license.

15. "Licensing decision" means any action by an agency to grant or deny any request for permission, approval or authorization issued in response to any request from an applicant for a license or to the holder of a license to exercise authority within the scope of the license.

16. "Party" means each person or agency named or admitted as a party or properly seeking and entitled as of right to be admitted as a party.

17. "Person" means an individual, partnership, corporation, association, governmental subdivision or unit of a governmental subdivision, a public or private organization of any character or another agency.

18. "Preamble" means:

(a) For any rulemaking subject to this chapter, a statement accompanying the rule that includes:

(i) Reference to the specific statutory authority for the rule.

(ii) The name and address of agency personnel with whom persons may communicate regarding the rule.

(iii) An explanation of the rule, including the agency's reasons for initiating the rulemaking.

(iv) A reference to any study relevant to the rule that the agency reviewed and either proposes to rely on in its evaluation of or justification for the rule or proposes not to rely on in its evaluation of or justification for the rule, where the public may obtain or review each study, all data underlying each study and any analysis of each study and other supporting material.

(v) The economic, small business and consumer impact summary, or in the case of a proposed rule, a preliminary summary and a solicitation of input on the accuracy of the summary.

(vi) A showing of good cause why the rule is necessary to promote a statewide interest if the rule will diminish a previous grant of authority of a political subdivision of this state.

(vii) Such other matters as are prescribed by statute and that are applicable to the specific agency or to any specific rule or class of rules.

(b) In addition to the information set forth in subdivision (a) of this paragraph, for a proposed rule, the preamble also shall include a list of all previous notices appearing in the register addressing the proposed rule, a statement of the time, place and nature of the proceedings for the making, amendment or repeal of the rule and where, when and how persons may request an oral proceeding on the proposed rule if the notice does not provide for one.

(c) In addition to the information set forth in subdivision (a) of this paragraph, for an expedited rule, the preamble also shall include a statement of the time, place and nature of the proceedings for the making, amendment or repeal of the rule and an explanation of why expedited proceedings are justified.

(d) For a final rule, except an emergency rule, the preamble also shall include, in addition to the information set forth in subdivision (a), the following information:

(i) A list of all previous notices appearing in the register addressing the final rule.

(ii) A description of the changes between the proposed rules, including supplemental notices and final rules.

(iii) A summary of the comments made regarding the rule and the agency response to them.

(iv) A summary of the council's action on the rule.

(v) A statement of the rule's effective date.

(e) In addition to the information set forth in subdivision (a) of this paragraph, for an emergency rule, the preamble also shall include an explanation of the situation justifying the rule being made as an emergency rule, the date of the attorney general's approval of the rule and a statement of the emergency rule's effective date.

19. "Provision of law" means the whole or a part of the federal or state constitution, or of any federal or state statute, rule of court, executive order or rule of an administrative agency.

20. "Register" means the Arizona administrative register, which is:

(a) This state's official publication of rulemaking notices that are filed with the office of secretary of state.

(b) Published pursuant to section 41-1011.

21. "Rule" means an agency statement of general applicability that implements, interprets or prescribes law or policy, or describes the procedure or practice requirements of an agency. Rule includes prescribing fees or the amendment or repeal of a prior rule but does not include intraagency memoranda that are not delegation agreements.

22. "Rulemaking" means the process to make a new rule or amend, repeal or renumber a rule.

23. "Small business" means a concern, including its affiliates, which is independently owned and operated, which is not dominant in its field and which employs fewer than one hundred full-time employees or which had gross annual receipts of less than four million dollars in its last fiscal year. For purposes of a specific rule, an agency may define small business to include more persons if it finds that such a definition is necessary to adapt the rule to the needs and problems of small businesses and organizations.

24. "Substantive policy statement" means a written expression which informs the general public of an agency's current approach to, or opinion of, the requirements of the federal or state constitution, federal or state statute, administrative rule or regulation, or final judgment of a court of competent jurisdiction, including, where appropriate, the agency's current practice, procedure or method of action based upon that approach or opinion. A substantive policy statement is advisory only. A substantive policy statement does not include internal procedural documents which only affect the internal procedures of the agency and does not impose additional requirements or penalties on regulated parties, confidential information or rules made in accordance with this chapter. END_STATUTE

Sec. 5. Section 41-1002, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1002. Applicability and relation to other law; preapplication authorization; definitions

A. This article and articles 2 through 5 of this chapter apply to all agencies and all proceedings not expressly exempted.

B. This chapter creates only procedural rights and imposes only procedural duties. They are in addition to those created and imposed by other statutes. To the extent that any other statute would diminish a right created or duty imposed by this chapter, the other statute is superseded by this chapter, unless the other statute expressly provides otherwise.

C. An agency may grant procedural rights to persons in addition to those conferred by this chapter so long as rights conferred on other persons by any provision of law are not substantially prejudiced.

D. Unless specifically authorized by statute, an agency shall avoid duplication of other laws that do not enhance regulatory clarity and shall avoid dual permitting to the extent practicable.

E. Unless specifically authorized by statute, an agency may not require preapplication authorization or require preapplication conferences as a requirement to filing an application that is otherwise allowed by statute. If preapplication procedures are required by statute, an agency shall consider the preapplication requirements or procedures as the beginning of the licensing time frame for the purposes of article 7.1 of this chapter. An agency may offer voluntary preapplication procedures without specific statutory authority if the agency communicates to an applicant that the preapplication procedures are not mandatory. If preapplication procedures are offered by an agency, the agency shall consider the costs and delays that may be imposed on an applicant and shall seek to minimize those impacts.

F. Unless authorized by federal or state law, an agency may not take any action that materially increases the regulatory burdens on a business unless there is a threat to the health, safety and welfare of the public that has not been addressed by legislation or industry regulation within the proposed regulated field.

G. Unless authorized by federal or state law, an agency may not apply a regulation to a qualified marketplace platform if the purpose of that regulation is to regulate a business that provides goods or services directly to the customer.

h. This chapter applies to the state land department.

H. i. For the purposes of this section:

1. "Qualified marketplace contractor" means any person or organization, including an individual, corporation, limited liability company, partnership, sole proprietor proprietorship or other entity, that enters into an agreement with a qualified marketplace platform to use the qualified marketplace platform's digital platform to provide goods or services to third-party individuals or entities seeking those services.

2. "Qualified marketplace platform" means an organization, including a corporation, limited liability company, partnership, sole proprietor proprietorship or any other entity, that operates a digital platform that facilitates the provision of goods or services by qualified marketplace contractors to third-party individuals or entities seeking those goods or services. END_STATUTE

Sec. 6. Repeal

Section 41-3026.05, Arizona Revised Statutes, is repealed.

Sec. 7. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3030.19, to read:

START_STATUTE41-3030.19. State land department; termination July 1, 2030

A. The state land department terminates on July 1, 2030.

b. Title 37, chapters 1 and 2 and this section are repealed on January 1, 2031. END_STATUTE

Sec. 8. Section 41-6011, Arizona Revised Statutes, is amended to read:

START_STATUTE41-6011. State natural resource conservation board; membership; powers and duties

A. The state natural resource conservation board is established consisting of the following members who are residents of this state:

1. Eight members who are from different geographic natural resource areas as defined by a statewide organization that represents all natural resource conservation districts in this state. Four members shall be appointed by the governor, two members shall be appointed by the president of the senate and two members shall be appointed by the speaker of the house of representatives. The members appointed pursuant to this paragraph shall meet the following criteria:

(a) At least six of the members must be elected supervisors for a natural resource conservation district.

(b) Not more than two members may be appointed supervisors from a soil and water conservation district.

(c) At least one member shall be a member of the executive board of a statewide organization that represents all natural resource conservation districts in this state.

2. Three members who are appointed by the governor from any of the following and who serve at the pleasure of the governor:

(a) The state land commissioner or state land commissioner's designee.

(b) The director of the Arizona department of agriculture or the director's designee.

(d) The director of the Arizona game and fish department or the director's designee.

B. The board shall elect a chairperson from among its members. The chairperson must be a member who represents a natural resource conservation district or soil and water conservation district.

C. The initial members of the board who are appointed pursuant to subsection A, paragraph 1 of this section shall assign themselves by lot to terms of one, two and three years in office. All subsequent members serve three-year terms. The chairperson of the board shall notify the governor's office of these terms.

D. If a member's term as a supervisor expires while serving on the board, that member may not serve out the member's term as a board member. A replacement shall be appointed from the same geographic natural resource area to fulfill the remainder of that member's term.

E. Board members shall be reimbursed for expenses as prescribed by title 38, chapter 4, article 2 while attending board meetings.

F. The board may appoint or contract for an administrative officer, a secretary and such other assistants as may be required, assign their duties, define their powers and determine the amount of bond required of any assistant entrusted with monies or property. The compensation of all such assistants shall be determined pursuant to section 38-611.

G. The board shall adopt a seal, which shall be judicially noticed, and shall hold public hearings, keep records of all proceedings and annual records of district operations, adopt orders and rules and perform other acts as are necessary to carry out this chapter.

H. The board shall:

1. Offer appropriate assistance to the supervisors of districts in carrying out their powers and programs.

2. Keep the supervisors of each district informed of the activities and experiences of other districts and of relevant information from other states, and facilitate cooperation and interchange of advice, experience and program opportunities between districts.

3. Coordinate the programs of the several districts insofar as possible by advice and consultation.

4. Require the supervisors of each district to file with the board annually any audits and the records of the operations of the district for the preceding year in the form and detail as the board prescribes.

5. Secure the cooperation and assistance of the United States, its agencies and agencies of this state, in the work of districts as local units of state government with special expertise concerning land, soil, water and natural resources management within the boundaries of the district, as the board deems for the best interest of the state.

6. Disseminate information throughout the state concerning the activities and program of districts.

7. Meet at least quarterly to receive updates from the board's administrative officer regarding any relevant issue or matter necessary to carry out this chapter, provide guidance to the administrative officer and vote on any matters requiring a decision by the board.

8. Assist a district when the district is cooperating or coordinating with a federal agency.

9. Assist districts with developing conservation action or district-wide plans.

10. Adopt administrative rules that the board deems necessary and proper to carry out this chapter.

11. Maintain AUTHORITY over conservation permitting on state trust lands. The BOARD may delegate this AUTHORITY to the applicable district as determined by the board.

12. Collaborate with the state land department for any conservation or environmental permitting located on state trust land. The board shall IMMEDIATELY forward any conservation or ENVIRONMENTAL permitting issued or RECEIVED by the board or the APPLICABLE DISTRICT to the state land DEPARTMENT.

I. The board may remove a district supervisor from office if the board determines, after reasonable notice and an impartial hearing, that the supervisor is guilty of misfeasance, malfeasance or nonfeasance in office. For the purposes of this subsection, "nonfeasance" includes the failure to attend three consecutive meetings of district supervisors without reasonable excuse.

J. The board, pursuant to chapter 4, article 4 of this title, may contract for or employ professional and administrative services. Contracts for professional services are exempt from chapter 23 of this title. END_STATUTE

Sec. 9. Rulemaking; delayed repeal

A. On or before July 1, 2028, the state land department shall adopt rules for licensing time frames pursuant to section 37-102, subsection H, paragraph 5, Arizona Revised Statutes, as added by this act.

B. On or before July 1, 2027, the state land department shall do both of the following:

1. Open a rulemaking docket to adopt licensing time frames pursuant to section 37-102, subsection H, paragraph 5, Arizona Revised Statutes, as added by this act.

2. Conduct a study to determine the appropriate licensing time frames for licenses issued by the department.

C. This section is repealed from and after December 31,2028.

Sec. 10. Purpose

Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the state land department to have charge of and control over all lands owned by this state, except lands under the specific use and control of state institutions, and the resources in and on those lands and to regulate the use of and access to those lands and resources as prescribed by the enabling act, the Constitution of Arizona and state law and to perform such other functions as prescribed by law.

Sec. 11. Legislative intent

While the legislature has granted discretionary authority to the state land commissioner, the legislature intends that the state land department's processes and procedures be transparent and consistent with the manner that the legislature has prescribed for the disposition of state trust lands.

Sec. 12. Legislative findings

The legislature finds that for years the state land department's lack of implementation of the statutory scheme has created a significant loss of revenue to the state trust land beneficiaries, has led to a lack of organization and streamlined processes and has perpetuated a poor morale within the department.

Sec. 13. Initial terms of members of state land oversight board

A. Notwithstanding section 37-111, Arizona Revised Statutes, as added by this act, the initial terms of members are:

1. For three members from a county with a population of four hundred thousand persons or more, three terms ending January 31, 2030.

2. For three members from a county with a population of less than four hundred thousand persons and one member who specializes in finance or statewide water needs, four terms ending January 31, 2032.

B. For the initial term, the president of the senate and the minority leader of the senate shall appoint first, the governor shall appoint second and the speaker of the house of representatives and the minority leader of the house of representatives shall appoint third.

C. The appropriate appointing authority shall make all subsequent appointments as prescribed by statute.

Sec. 14. Retroactivity

Section 41-3026.05, Arizona Revised Statutes, as repealed by this act, and section 41-3030.19, Arizona Revised Statutes, as added by this act, apply retroactively to from and after July 1, 2026.