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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: NREW DPA 6-4-0-0 | Third Read 30-23-7-0-0Senate: NR DPA 5-3-0-0 | Third Read 16-13-1-0-0Final Read: 31-22-7-0-0 |
HB
2755: state land use; highest; best
NOW: state lands; commercial leases; auction
Sponsor: Representative Griffin, LD 19
Vetoed by the Governor
Overview
Enables the State Land Commissioner (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. Requires ASLD, for a lease renewal of an underperforming commercial lease, to provide ample notice to a lessee prior to termination of the lease. (Sec. 1)
2. Requires the Commissioner to prioritize the sale of state lands that are subject to an underperforming commercial lease, if the lessee provides notice to the ASLD that the lessee if willing and prepared to purchase the parcel in fee simple consistent with this legislation. (Sec. 2)
3. Requires the Commissioner to prioritize the sale of state lands that are subject to an underperforming commercial lease, if the lessee provides notice to the ASLD that the lessee if willing and prepared to purchase the parcel in fee simple consistent with this legislation. (Sec. 2)
4. Allows a person who holds an underperforming commercial lease or who held an underperforming commercial lease that expired less than one year before the date of application to apply to purchase the underperforming commercial state lands. (Sec. 2)
5. Requires the Commissioner, within 18 months of receipt of an application pursuant to this legislation, to appraise, advertise and cause the underperforming commercial state lands to be sold at public auction. (Sec. 2)
6. Allows an eligible person who wishes to purchase the underperforming commercial state lands to either:
a. submit a single application for multiple eligible parcels that the applicant lease; or
b. submit a separate application for each eligible parcel that the applicant leases. (Sec. 2)
7. Requires each public auction held by the Commissioner pursuant to this legislation to be open to all eligible bidders from all commercial land uses. (Sec. 2)
8. Prohibits the Commissioner from taking any action during or before the public auction that increase the probability of a bidder from one eligible land use winning the auction instead of a bidder from another eligible land use. (Sec. 2)
9. Requires the Commissioner proceed with the auction if an applicant's underperforming lease expires or if an applicant applies to renew the underperforming commercial lease during the 18-month time frame and does not withdraw the application to purchase. (Sec. 2)
10. Prohibits a person from triggering a public auction on underperforming commercial state lands if the person does not hold or has not held an underperforming commercial lease of the state lands subject to application in the previous eighteen months before application. (Sec. 2)
11. Defines pertinent terms. (Sec. 2)
12. Contains a legislative findings clause. (Sec. 3)
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Initials CW/RS HB 2755
6/22/2026 Page 0 Vetoed by the Governor
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