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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: NREW DPA 6-4-0-0 |
HB 2150: continuation; state land department
Sponsor: Representative Griffin, LD 19
House Engrossed
Overview
Continues the Arizona State Land Department (ASLD) for four years.
History
The ASLD manages state lands, which includes state trust lands and lands otherwise owned by Arizona. Management, sale and lease of state land are outlined in statute and the Arizona Constitution (A.R.S. §§ 37-101, 37-102, 37-281, 37-232, 37-240)(Constitution of Arizona, Article 10).
The House Natural Resources, Energy and Water Committee of Reference (COR) and the Senate Natural Resources COR held a joint public meeting on Tuesday, January 20, 2026 to review and consider ASLD's responses to the sunset factors. The COR recommended that the Legislature continue the Council for four years. The Council terminates on July 1, 2026, unless continued by the Legislature (A.R.S. § 41-3026.05).
Provisions
1. Allows the State Land Commissioner (Commissioner) to renew existing mineral or mineral materials leases without public auction if prescribed conditions are met. (Sec. 1)
2. Mandates that a renewed lease provide for a royalty rate adjusted using a market-based indexing mechanism adopted by ASLD rule. (Sec. 1)
3. Outlines what may be included in the indexing mechanism. (Sec. 1)
4. Requires ASLD restrict the use of a holdover lease or permit to not more than 90 days. (Sec. 2)
5. Stipulates that, if ASLD fails to act within 90 days of a lease expiring, and a holdover tenant submits a lease renewal application, the lease is automatically renewed for three years and 90 days after the date of natural expiration. (Sec. 2)
6. Classifies a lease renewed in a specified manner as in the best interest of the State Trust. (Sec. 2)
7. Requires ASLD reimburse a holdover tenant whose lease is terminated for the fair market value of any improvements made to the land. (Sec. 2)
8. Prescribes ASLD requirements pertaining to a lease renewal and special land use permit. (Sec. 2)
9. Restricts the use of special land use permits only to temporary land uses that do not have a dedicated land use lease or permit. (Sec. 2)
10. Directs ASLD to provide quarterly updates of specified information. (Sec. 3)
11. Outlines reporting requirements of ASLD quarterly updates. (Sec. 3)
12. Requires ASLD adopt rules establishing a procedure and criteria the Commissioner must use for determining whether to initiate the sale of state lands on the Commissioner's initiative. (Sec. 4)
13. Modifies the requirements of the Commissioner as it relates to conceptual land use plans. (Sec. 5)
14. Designates a conceptual land use plan, upon the commissioner's approval, as the controlling land use designation for state lands and as superseding any conflicting zoning. (Sec. 5)
15. Modifies the requirements of the Commissioner regarding a five year disposition plan. (Sec. 5)
16. Continues the ASLD until July 1, 2030. (Sec. 7)
17. Repeals the ASLD on July 1, 2030. (Sec. 7)
18. Requires ASLD implement all 51 of the recommendations contained in the Auditor General's July 2025 performance audit and sunset review of ASLD within two years after the effective date of this act. (Sec. 8)
19. Outlines duties of the Commissioner and Auditor General as they pertain to the implementation of specified Auditor General recommendations. (Sec. 8)
20. Outlines reporting duties of the Auditor General should ASLD fail to implement recommendations within the prescribed period of time. (Sec. 8)
21. Directs the Senate and House of Representatives relevant Committees of Reference, by July 1, 2028, to conduct a public hearing during which ASLD must provide an update regarding its strategic plan. (Sec. 10)
22. Requires the Auditor General, by April 1, 2028, notify specified parties of the requirement to hold a public hearing. (Sec. 10)
23. Requires the Commissioner, within two years of this act taking effect:
a. complete the five-year disposition plans for State Trust Lands;
b. update conceptual land use plan;
c. adopt specified written policies and procedures; and
d. provide a copy of listed plans, policies and procedures to the President of the Senate and the Speaker of the House of Representatives. (Sec. 11)
24. Makes technical changes. (Sec. 2, 4, 5)
25. Contains a legislative findings clause. (Sec. 12)
26. Contains a legislative purpose statement. (Sec. 13)
27. Makes part of the legislation pertaining to the continuation of ASLD retroactive to July 1, 2026. (Sec. 14)
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Initials CW HB 2150
3/4/2026 Page 0 House Engrossed
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