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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: NREW DPA 6-4-0-0 |
HB 2755: state land use; highest; best
Sponsor: Representative Griffin, LD 19
House Engrossed
Overview
Enables the ASLD Commissioner to renew existing mineral or mineral materials leases without public auction if certain conditions are met. Outlines additional terms for lease renewal and a special land use permit.
History
Established in 1915, the Arizona State Land Department (ASLD) currently manages approximately 9.2 million acres of State Trust lands which were granted to the state at statehood. These lands are held in trust and are managed for the sole purpose of generating revenue for the 13 state land beneficiaries. The ASLD is not a regulatory agency but is the trustee of the state's trust land and its natural resources (ASLD).
The ASLD administers laws related to lands owned by, belonging to and under control of the state, which includes both trust land and sovereign land. The ASLD also manages and controls the products and uses of state land including timber, stone, gravel, grazing and farming (A.R.S. § 37-102).
Provisions
1. Allows the ASLD Commissioner to renew existing mineral or mineral materials leases without public auction if they determine that:
a. the lessee is in substantial compliance with the terms of the lease;
b. renewal is in the best interest of the trust;
c. renewal is supported by written fiduciary findings; and
d. the renewal term is for a term that is authorized by state law. (Sec. 1)
2. Mandates that a renewed lease provide for a royalty rate adjusted using a market-based indexing mechanism adopted by ASLD. (Sec. 1)
3. Outlines what may be included in the indexing mechanism. (Sec. 1)
4. Requires the Commissioner to review indexed royalty rates at intervals not more than five years. (Sec. 1)
5. Requires ASLD to restrict the use of a holdover lease to not more than 90 days. (Sec. 1)
6. Requires ASLD to reimburse a holdover tenant whose lease is terminated for the fair market value of any improvements made to the land. (Sec. 1)
7. Requires ASLD, for a lease renewal and special land use permit to:
a. approve any specified improvements in the lessee or permittee's course of business;
b. reimburse the lessee or permittee for the improvements on conclusion of the lease or special land use permit with monies from the State Land Trust; and
c. provide ample notice to a lessee or permittee prior to termination of the lease or special land use permit. (Sec. 1)
8. Contains a legislative findings clause. (Sec. 3)
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12. Initials CW/RS HB 2755
13. 3/3/2026 Page 0 House Engrossed
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