ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	Senate: NREW DP 9-0-0-0 | 3^rd Read 28-0-2-0 House: NREW DP 11-0-0-0

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SB 1238: state lands; appraisals; leases; rights-of-way

Sponsor: Senator Kerr, LD 13

Caucus & COW

Overview

Amends state trust land statutes that require reappraisal before auction, mandates Board of Appeals' approval of commercial leases and specifies how initial payments on recently purchased lands are applied.  

History

Appraising State Trust Lands

Before being offered for sale or lease (for periods longer than 10 years) at a public auction, state trust lands must be appraised. These lands cannot be sold at less than the appraised value (Constitution of Arizona, Article X, §§ 3 and 4).

The State Land Commissioner classifies and appraises all state trust lands for sale, lease or granting rights-of-way and the Board of Appeals approves any sale or commercial leases of these lands (A.R.S. § 37-132). The State Land Department must reappraise or update its original appraisal if the Board of Appeals' approval of the lease or sale occurred more than 180 days before the auction (A.R.S. § 37-102).

Leasing State Trust Lands

State trust lands can be leased for a variety of purposes, but the approval process varies based on the type of lease. While leases for more than ten years require a public auction, those that are for less than ten years simply require a person to apply to the State Land Department. The State Land Commissioner has the authority to handle leases for non-commercial uses including grazing, agriculture, and homesites. However, any commercial lease (regardless of its length) must first be approved by the Board of Appeals (A.R.S. § 37-132).

Paying for State Trust Lands

When state trust lands are sold at auction, the buyer must pay 10% to 25% of the land's appraised value, which will be applied to the principal. If the winning bid exceeds the appraised value, the required additional payments will be allocated to the principle (A.R.S. § 37-241).

Provisions

1. Requires the State Land Department to reappraise or update its original appraisal of property that will be leased, exchanged or sold if the Board of Appeals' approval of the lease or sale occurred more than 240 days before the auction. (Sec. 1)

2. Exempts any commercial lease of state trust lands of less than 10 years from mandatory approval by the Board of Appeals. (Sec. 2)

3. Requires the initial payment to apply to the associated rights-of-way of purchased state trust land. (Sec. 3)

4. Makes technical changes. (Sec. 1 and 2)

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8.                   SB 1238

9. Initials PAB           Page 0 Caucus & COW

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