ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: FR DPA 4-3-0-0

HB2092: federal government; land acquisition; consent

Sponsor: Representative Finchem, LD 11

Caucus & COW

Overview

Requires consent of the Governor and State Legislature before any Arizona lands transfer to a Federal agency if the transfer negatively affects state or local property tax rolls.

History

Primary property taxes fund the maintenance and operation budgets of state and local governments, such as school districts, counties, cities and community colleges. Secondary property taxes fund voter-approved general obligation bonds, budget overrides and special districts. Arizona’s property tax system classifies property according to its use and there are 9 classifications. If property comes off the tax rolls a county has ability/choice to increase their tax rate to compensate for the associated loss in property tax revenues, if they are not at their constitutional levy limit.

Land ownership in the State of Arizona is categorized as follows: 17.6% Private; 42.1% Federal; 27.6% Indian Reservation; 12.7% State Trust. (Arizona State Land Department)

Federally-owned land in each state varies but is concentrated in the Western United States: e.g., Alaska (61.3%); Nevada (79.6%); and the western states (46.4%) compared to Connecticut and Iowa (.3%); and other states (4.2%). (Congressional Research Service)

Statute reflects the constitutional authority for this state to consent to the acquisition of privately- owned real property in Arizona by the Federal government only through the joint resolution process. The joint resolution must state the legal description of the land and purposes for which it will be used. (A.R.S. 37-620.02)

A resolution is a declaration or expression of legislative opinion, will, intent or resolve in matters within the Legislature's purview. The joint resolution is processed through both houses of the Legislature and is signed by the Governor. It is used to provide for temporary measures having the effect of law (e.g. a contract or other official action). (Arizona Legislative Council Bill Drafting Manual)

Provisions

1. States that the express, affirmative consent of the Governor and Legislature is required for the sale, gift, grant or other transfer (transfer) of ownership of private property to a Federal agency if that transfer would remove the property from state, county and municipal property tax rolls. (Sec 1.)

2. Clarifies that any transfer requires the express, affirmative consent through the current joint resolution process. (Sec 1.)

3. Contains legislative findings. (Sec 2.)

Amendments

Committee on Federal Relations

1. For the sale of property to the federal government or its agencies, requires the escrow agent or landowner to:

a) Notify the Speaker of the House and the President of the Senate that a contract for the sale has been placed in escrow; and

b) Request written approval from both officials.

2. Assesses a minimum civil penalty of $500 to a maximum $1,000 for failing to properly notify the stated officials.

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6. Initials DC/GK Caucus & COW

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