ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

Senate: NR DPA 6-2-0-0 | Third Read 16-13-1-0-0

House: NREW DP 5-4-0-1

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


SB 1336: state land department; continuation; oversight

Sponsor: Senator Dunn, LD 25

Caucus & COW

Overview

Continues the Arizona State Land Department (ASLD) for four years and modifies ASLD powers and duties. Establishes the State Land Oversight Board (Board).

History

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). 

It is the declared policy of the Legislature to provide for the restoration and conservation of lands and soil resources of the state, the preservation of water rights and the control and prevention of soil erosion, and thereby to conserve natural resources, conserve wildlife, protect the tax base, protect public lands and protect and restore rivers and streams and associated riparian habitats, including fish and wildlife resources that are dependent on those habitats and to protect and promote the public health, safety and the general welfare of the people. Natural resource conservation districts are established for this purpose and are overseen by the State Natural Resource Conservation Board (SNRCB) (A.R.S. § 41-6001 et seq.).

Provisions

ASLD Continuation

1.   Continues ASLD until July 1, 2030. (Sec. 7)

2.   Repeals ASLD on January 1, 2031. (Sec. 7)

3.   Makes the legislation retroactive to July 1, 2026. (Sec. 14)

4.   Contains a legislative purpose statement. (Sec. 10)

ASLD Powers and Duties

5.   Requires ASLD to adopt rules to establish time frames for action on specified applications that an applicant submits to ASLD. (Sec. 1)

6.   Directs ASLD to maintain a list on the ASLD's website of all license applications and actions taken on applications. (Sec. 1)

7.   Prescribes penalties for ASLD if it fails to act within the specified time frames. (Sec. 1)

8.   Requires ASLD to restrict the use of a lease or permit holdover provision to 90 days maximum. (Sec. 1)

9.   Stipulates that if ASLD fails to act on a lease renewal within 90 days, the lease automatically extends for 3 years and 90 days after the initial date of expiration. (Sec. 1)

10.  Requires ASLD to reimburse any holdover tenant whose lease is terminated for the fair market value of any improvements made to the state land. (Sec. 1)

11.  Outlines ASLD requirements for a lease renewal and special land use permit. (Sec. 1)

12.  Requires ASLD to restrict the use of special land use permits to only temporary land uses that do not have a dedicated land use lease or permit. (Sec. 1)

13.  Directs ASLD to collaborate with the SNRCB or the applicable conservation district designated by SNRCB on the review of any proposed federal conservation-related permit on nonurban state lands. (Sec. 1)

14.  Restricts ASLD from including terms more stringent than statute for the lease of state lands. (Sec. 1)

15.  Directs ASLD to protect and uphold the due process rights of a person that does business with ASLD consistent with the regulatory bill of rights. (Sec. 1)

16.  Stipulates that, in addition to submitting a complaint to the Office of Ombudsman-Citizens Aide, a person may file a complaint with the Attorney General alleging a violation of this legislation. (Sec. 1)

17.  Requires the Attorney General to investigate any complaints and issue a written order outlining any findings. (Sec. 1)

18.  Directs ASLD to adopt rules for licensing time frames by July 1, 2028. (Sec. 9)

19.  Requires ASLD, by July 1, 2027:

a.   open a rulemaking docket to adopt licensing time frames; and

b.   conduct a study to determine the appropriate licensing time frames for issued licenses. (Sec. 9)

20.  Repeals ASLD licensing time frame requirements on January 1, 2029. (Sec. 9)

State Land Oversight Board

21.  Establishes the Board to provide broad oversight of ASLD and perform other duties as prescribed by law. (Sec. 2)

22.  Prescribes Board membership, term limits, order of member appointment, appointing parties and member qualifications. (Sec. 2)

23.  Requires prospective Board members to submit a full set of fingerprints to the Governor for the purpose of obtaining a state and federal criminal records check prior to appointment. (Sec. 2)

24.  Directs the Governor to submit fingerprint data to the Arizona Department of Public Safety (DPS). (Sec. 2)

25.  Allows DPS to exchange fingerprint data with the Federal Bureau of Investigation. (Sec. 2)

26.  Outlines Board requirements relative to:

a.   record keeping;

b.   public meetings;

c. conflicts of interest;

d.   quorum; and

e. compensation. (Sec. 2)

27.  Allows the Board to seek technical assistance from other state agencies.

28.  Requires ASLD provide technical assistance to the Board. (Sec. 2)

29.  Directs the Board to adopt rules for standards of conduct and gift policy. (Sec. 2)

30.  Specifies the Board is a public body and that it must operate on the state Fiscal Year. (Sec. 2)

31.  Requires all state agencies cooperate with the Board and make pertinent data available as requested by the Board. (Sec. 2)

32.  Defines trade association as 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. (Sec. 2)

33.  Prescribes Board powers and duties and reporting requirements. (Sec. 2)

34.  Requires the ASLD Commissioner create conceptual land use plans for all state trust land and use private consultants in the creation of such plans. (Sec. 3)

35.  Directs the ASLD Commissioner to create a five-year disposition plan for all state trust land for each county and update such plans every three years or less. (Sec. 3)

36.  Requires the ASLD Commissioner, when creating a five-year disposition plan, to:

a.   hire third party contractors; and

b.   include residential development within the service area of a municipal provider. (Sec. 3)

37.  Modifies the definition of license as it pertains to state land to include all licenses issued by ASLD. (Sec. 4)

38.  Stipulates specified statute pertaining to applicability and relation to other law, preapplication authorization and definitions apply to ASLD. (Sec. 5)

39.  Prescribes initial terms of Board members. (Sec. 13)

SNRCB Powers and Duties

40.  Requires SNRCB to:

a.   maintain authority over conservation permitting on state trust lands;

b.   collaborate with ASLD for any conservation or environmental permitting on state trust land; and

c. immediately forward any conservation or environmental permitting issued or received to ASLD. (Sec. 8)

41.  Specifies SNRCB may delegate conservation permitting authority to the applicable conservation district as determined. (Sec. 8)

42.  Contains a legislative intent clause. (Sec. 11)

43.  Contains a legislative findings clause. (Sec. 12)

44.  Makes technical and conforming changes. (Sec. 1, 3-6, 8)

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48.  Initials CW/RS                SB 1336

49.  3/25/2026  Page 0 Caucus & COW

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51.  ---------- DOCUMENT FOOTER ---------