HB2755 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 37-102, Arizona Revised Statutes, is amended to read:

START_STATUTE37-102. State land department; powers and duties

A. The state land department shall administer all laws relating to lands owned by, belonging to and under the control of this state.

B. The department shall have charge and control of all lands owned by this state, and timber, stone, gravel and other products of such lands, except lands under the specific use and control of state institutions and the products of such lands.

C. The department, in the name of this state, may commence, prosecute and defend all actions and proceedings to protect the interest of this state in lands within this state or the proceeds of lands within this state. Actions shall be commenced and prosecuted at the request of the department by the attorney general, a county attorney or a special counsel under the direction of the attorney general.

D. The department shall be the official representative of this state in any communication between this state and the United States government in all matters respecting state lands or any interest of this state in or to the public lands within this state.

E. The summons in any action against this state respecting any lands of this state or the products of such lands and all notices concerning such lands or products shall be served on the commissioner. Summonses, warrants or legal notices served on behalf of the department may be served by the commissioner or the commissioner's deputy, or by the sheriff or a constable of any county of this state.

F. The department shall maintain as a public record in each of the department's offices a public docket and index of all matters before the department that may be subject to appeal to the board of appeals or to the courts and all sale, exchange and lease transactions subject to bidding by the public. The department shall list a matter on the public docket immediately after an application or other request for department action is received by the department. The department shall include in the public docket every formal action and decision affecting each matter in question. The department shall establish by rule a means by which any person may obtain a copy of the public docket at the current copying cost.

G. The department shall reappraise or update the department's original appraisal of property to be leased, exchanged or sold if the board of appeals' approval of the lease or sale occurred more than two hundred forty days before the auction.

H. To the extent possible, the state land department shall:

1. Prepare maps of the ancillary military facilities described in section 28-8461, paragraph 7, subdivisions (b) and (c).

2. Make a map of the ancillary military facility described in section 28-8461, paragraph 7, subdivision (a) available to the public in printed or electronic format and provide the map in printed or electronic format to the state real estate department.

3. On receipt of proper information from the military installation commander with responsibility for the military electronics range, prepare a map of the military electronics range as defined in section 9-500.28 and make that map available to the public in printed or electronic format and provide the map in printed or electronic format to the state real estate department. Within ninety days after receipt of notice of any change in the boundaries of the military electronics range from the military installation commander, the state land department shall revise its map and provide the map to the public and to the state real estate department.

4. On or before December 31, 2024 and on receipt of proper information from the applicable military installation's and range's and Arizona national guard site's commanders, prepare electronic legal descriptions and maps of the military installation and range and Arizona national guard site and their respective influence areas as defined in sections 9-500.50 and 11-818.01 and provide the legal descriptions and maps to the state real estate department and the public. The state land department shall make changes to the boundaries of the military installation and range and national guard site and their respective influence areas and provide them to the state real estate department and the public within ninety days after receipt of those changes from the military installation's and range's and Arizona national guard site's commanders.

5. Provide ample notice to a lessee of an underperforming commercial lease before the termination of the underperforming commercial lease.

I. The state land department shall provide each map and the legal description of the boundaries of each ancillary military facility described in section 28-8461, paragraph 7 in electronic format to the state real estate department. Each map prepared by the state land department pursuant to this section shall:

1. Describe the ancillary military facility, the territory in the vicinity of the ancillary military facility and the high noise and accident potential zone, accident potential zone one and accident potential zone two associated with the ancillary military facility.

2. Be submitted to the county in which the ancillary military facility is located.

3. Be made available to the public.

J. The state land department shall prepare a military training route map. The map shall contain military training route numbers in this state that are used by various United States armed forces. The map shall be dated.

K. When preparing the military training route map, the state land department shall use information contained in the most current department of defense publication that is entitled "area planning military training routes for North and South America".

L. The military training route map shall be made available to the public.

M. Within ninety days after the department is notified of a change of a military training route in this state, the department shall prepare a revised military training route map. The map shall be dated and contain a statement that the map supersedes all previously dated maps. The state land department shall send the revised map to the state real estate department electronically and shall also send an accompanying letter specifying the military training route changes. The state land department shall send the revised map and an accompanying letter specifying the military training route changes to the municipalities affected by the changes and to all counties.

N. The department shall submit the military training route map prepared pursuant to this section to the counties in either an electronic or a printed format. The format shall be determined by the receiving county.

O. The state land department shall provide the legal description of the boundaries of the military training routes as delineated in the military training route map to the state real estate department in electronic format.

P. The state land department shall prepare a military restricted airspace map. The map shall contain military restricted airspace in this state that is used by various United States armed forces. The map shall be dated.

Q. When preparing the military restricted airspace map, the state land department shall use information contained in the most current department of transportation publication that is entitled "aeronautical chart".

R. The military restricted airspace map shall be made available in printed or electronic format to the public at the state land department and at the state real estate department.

S. Within ninety days after the department is notified of a change of military restricted airspace in this state, the department shall prepare a revised military restricted airspace map. The map shall be dated and contain a statement that the map supersedes all previously dated maps. The state land department shall send the revised map to the state real estate department electronically and shall also send an accompanying letter specifying the military restricted airspace changes. The state land department shall send the revised map and an accompanying letter specifying the military restricted airspace changes to the municipalities affected by the changes and to all counties.

T. The department shall submit the military restricted airspace map prepared pursuant to this section to the counties in either an electronic or a printed format. The format shall be determined by the receiving county.

U. The state land department shall provide the legal description of the boundaries of the military restricted airspace as delineated in the military restricted airspace map to the state real estate department in electronic format.

V. The department may accept title to and manage real estate, property rights and related infrastructure acquired pursuant to section 26-262, subsection K for preserving or enhancing military installations in this state. END_STATUTE

Sec. 2. Title 37, chapter 2, article 4, Arizona Revised Statutes, is amended by adding section 37-281.05, to read:

START_STATUTE37-281.05. Lease of state lands for commercial purposes; underperforming commercial leases; option to purchase; auction; definitions

A. Notwithstanding any other law, the commissioner shall prioritize the sale of state lands that are subject to an underperforming commercial lease if the lessee provides notice to the department that the lessee is willing and prepared to purchase the parcel in fee simple consistent with this section.

B. 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 may apply to purchase the underperforming commercial state lands. Within eighteen months after receiving an application submitted pursuant to this subsection, the commissioner shall appraise, advertise and cause the underperforming commercial state lands to be sold at public auction to the highest and best bidder.

C. A person who meets the requirements of this section and wishes to purchase the underperforming commercial state lands may do either of the following:

1. Submit a single application for multiple eligible parcels that the applicant leases.

2. Submit a separate application for each eligible parcel that the applicant leases.

D. Each public auction that the commissioner holds pursuant to this section shall be open to all eligible bidders from all commercial land uses. The commissioner may not take any action during the public auction or before the public auction that increases the probability of a bidder from one eligible land use winning the public auction instead of a bidder from another eligible land use.

E. If an applicant's underperforming commercial lease expires or if an applicant applies to renew the underperforming commercial lease during the eighteen-month time frame established pursuant to this section and the applicant does not withdraw the application to purchase, the commissioner shall proceed with the auction.

F. A person may not trigger a public auction pursuant to this section 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.

g. For the purposes of this section:

1. "Underperforming commercial lease" means a valid lease or a valid holdover lease of underperforming commercial state lands.

2. "Underperforming commercial state lands" means a parcel of state lands that is leased for commercial purposes and that meets at least one of the following conditions:

(a) The size of the parcel prevents its independent development.

(b) The parcel is landlocked.

(d) The annual base rent on the parcel is below an acceptable percentage of the appraised fair market value of the parcel as determined by the commissioner.

(e) The rate of appreciation in land value on the parcel is faster than the rate of increase in annual base rent on the parcel.

(f) The appraised fair market value of the approved reimbursable improvements on the parcel exceeds the appraised fair market value of the parcel such that the value of the improvements will reduce the sale value to the trust by a percentage deemed unacceptable to the commissioner.END_STATUTE

Sec. 3. Legislative findings

The legislature, as the trustee of the Arizona state land trust, finds that:

1. Over an extended period the state land department has created a significant number of underperforming commercial leases of state lands.

2. Underperforming commercial leases burden the state land department with excessive costs and management responsibilities and generate insufficient returns to the state land trust.

3. Continually renewing underperforming commercial leases merely perpetuates the management costs and burdens and is not in the best interest of this state or in the best interest of the state land trust.

4. The highest and best use of state trust lands that are subject to underperforming commercial leases is to allow the state trust lands to be sold at public auction to the highest and best bidder.

5. This act is necessary to ensure the best interest of the state land trust, state land trust beneficiaries and this state.