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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
federal government; land acquisition; consent
Purpose
Requires, for consent to be given for any acquisition of an ownership interest in privately owned real property in Arizona to the federal government, the Governor to sign a joint resolution adopted by an affirmative vote of a majority of the members of the Legislature. Requires the state to exercise the right of first refusal to purchase private real property that is not approved for sale or transfer to the federal government. Requires the State Land Department (SLD) to maintain a catalog of all existing or new covered federal designations in Arizona, rather than only national monuments in Arizona.
Background
Acquisition of Private Real Property
The consent of the state may be given to the acquisition of any other privately owned real property within Arizona by the United States only upon the Governor's signing of a joint resolution adopted by the Legislature. The joint resolution must recite the legal description of the land and the purposes to which the state consents that the property may be used (A.R.S. § 37-620.02).
The federal government may, by cession of particular states and the acceptance of Congress, exercise powers over places purchased by the consent of the Legislature of the state in which the land is purchased for the erection of forts, magazines, arsenals, dock-yards and other needful buildings (U.S. Const. art. 1 § 8, cl. 17).
National Monuments
The SLD must
maintain a catalog of each existing or newly created national monument in this
state. The SLD must request, from the federal government: 1) a detailed
accounting of each individual item; 2) the precise global positioning system
location of each item to be protected;
3) the square footage that each item occupies; 4) the total square footage of
the parcel of land comprising the national monument; and 5) a peer-reviewed
justification for the protection of the object by the federal government. The
SLD must determine whether the limits of a parcel comprising a national
monument are confined to the smallest area compatible with proper care and
management of the objects to be protected by the national monument. If the SLD
determines that the limits of the parcel are not confined to the smallest area
as outlined, then the SLD must notify the Attorney General (AG). On receipt of
the notice, the AG may commence an action to confine the limits of the parcel (A.R.S. § 37-620.03).
If the state exercises the right of first refusal to purchase privately owned real property, there may be a fiscal impact to the state General Fund.
Provisions
Acquisition of Private Real Property
1. Prohibits the consent of the state from being given to the acquisition, sale, gift or grant or any other transfer of an ownership interest in a privately owned real property within Arizona that is not in the possession of any federal agency as of the effective date by the United States that would remove the real property from state, county and municipal property tax rolls, unless given express and affirmative consent by the Legislature and the Governor.
2. Requires, for consent to be given, the Governor to sign a joint resolution adopted by an affirmative vote of a majority of the members of the Legislature.
3. Specifies that the requirements for consent do not:
a) limit the rights of any Indian tribe with respect to the tribe's Indian lands, reservations and lands acquired as a settlement of land claim;
b) apply to land exchanges that are approved by the U.S. Congress or a federal administrative agency; or
c) apply to property that the federal government acquires as part of the reclamation of abandoned mines.
4. Prohibits a county recorder from recording a deed that transfers real property to the federal government, expect for transfers approved by the Legislature and the Governor as outlined.
5. Requires an escrow agent, on the opening of escrow for the sale or transfer of title interest of private real property to the federal government or a federal agency, to:
a) notify the Speaker of the House of Representatives (House) and the President of the Senate that a contract for the sale or transfer of private real property to the federal government or a federal agency has been placed in escrow; and
b) submit a request in writing to the Speaker of the House and the President of the Senate for approval of the sale or transfer.
6. Requires the private real property owner, for a private sale or transfer of private real property to the federal government or a federal agency that is not processed through escrow, to:
a) notify the Speaker of the House and the President of the Senate of the sale or transfer of real private property to the federal government or a federal agency; and
b) submit a request in writing to the Speaker of the House and President of the Senate for approval of the sale or transfer.
7. Requires the Speaker of the House and President of the Senate, upon receipt of the request for approval, to appoint a joint legislative committee to consider the request.
8. Requires the Legislature, if the joint legislative committee approves the request, to prepare a joint resolution for the Legislature to approve the sale or transfer.
9. Requires the state, if the joint legislative committee does not approve the request, to exercise the right of first refusal to purchase the private real property.
10. Requires any state agency or any officer or employee of a state agency that learns of a notice from the U.S. Department of the Interior regarding an effort to place private real property located in Arizona in trust as part of an Indian tribe's settlement of a land claim to immediately notify the Speaker of the House and the President of the Senate so that the Legislature may:
a) provide comment.
b) file an administrative appeal; or
c) file an action in the appropriate court.
11. Subjects a person who violates requirements regarding reporting to the Legislature to a civil penalty between $500 and $1,000.
12. Specifies that requirements relating to the purchase of property by the federal government or a federal agency and the right of first refusal do not apply to:
a) a trustee's deed or mortgage that is insured or held by the U.S. Department of Housing and Urban Development, U.S. Department of Veterans Affairs or Federal Housing Administration;
b) land exchanges that are approved by the U.S. Congress or a federal administrative agency; or
c) property that the federal government acquires as part of the reclamation of abandoned mines.
Covered Federal Designation
13. Requires the SLD to maintain a catalog of all existing or new covered federal designations in Arizona, rather than only national monuments in Arizona.
14. Expands the information that the SLD must request from the federal government to include the item of natural, scenic, historical or cultural value or each resource, landscape, species, ecosystem, habitat or characteristic to be protected, rather than only the individual item.
15. Requires the SLD to notify the President of the Senate and the Speaker of the House, in addition to the AG, if a parcel comprising a covered federal designation is not confined to the smallest area.
16. Allows the President of the Senate and Speaker of the House, in addition to the AG, to commence action to confine the parcel limits.
Miscellaneous
17. Defines covered federal designation as:
a) an area of critical environmental concern;
b) a national forest;
c) a national park;
d) a national monument;
e) a national wildlife refuge;
f) a national conservation area;
g) a national recreation area;
h) a national scenic area;
i) a national scenic trail;
j) a national historical trial;
k) a national recreation trial;
l) a roadless area;
m) a wild and scenic river;
n) a wilderness area; or
o) a wilderness study area.
18. Designates this legislation as the Tax Base Protection Act.
19. Contains a statement of legislative findings.
20. Makes technical and conforming changes.
21. Becomes effective on the general effective date.
Amendment Adopted by Committee
1. Adds to the exemptions from the requirements relating to the purchase of property by the federal government and the right of first refusal.
2. Exempts a real property transfer approved by the Legislature and the Governor from the prohibition on a county recorder recording a deed that transfers real property to the federal government.
3. Requires the SLD to maintain a catalog of all existing or newly covered federal designations in Arizona, rather than national monuments.
4. Adds the President of the Senate and the Speaker of the House to the process for commencing an action to confine parcel limits.
5. Adds to the information that the SLD must request from the federal government regarding a covered federal designation.
6. Defines covered federal designation.
Senate Action
FED 2/9/26 DPA 4-3-0
Prepared by Senate Research
February 16, 2026
AN/TR/ci