ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

House: LARA DPA 7-2-0-0

HB 2376: agricultural land; foreign ownership; prohibition

Sponsor: Representative Biasiucci, LD 30

Caucus & COW

Overview

Prohibits selling, leasing, or subleasing agricultural state land to a foreign entity.

History

Selling and Leasing Agricultural State Lands

The State Land Department manages state lands, which includes state trust lands and lands otherwise owned by this State (A.R.S. §§ 37-101 and 37-102). State trust lands can be leased upon application to the State Land Department, subject to certain terms and conditions. For example, an agricultural lease is limited to a 10-year term (A.R.S. § 37-281). State trust lands may be sold when someone applies to the State Land Department or when the State Land Commissioner decides to sell these lands (A.R.S. §§ 37-232 and 37-333). State trust lands are generally sold to the highest and best bidder at public auction, provided that these lands are sold for more than their appraised value (A.R.S. § 37-236 and Constitution of Arizona, Article 10, § 4). However, sales, leases or subleases of state lands cannot be made to corporations that are not qualified to transact business in Arizona (A.R.S. § 37-240).

Qualifications for Corporations to Transact Business in Arizona

The requirements for a corporation to transact business in Arizona depend on where it was formed. A corporation incorporated in Arizona may transact business upon filing its articles of incorporation and certificate of disclosure with the Arizona Corporation Commission (A.R.S. §§ 10-125, 10-203 and 10-301). Foreign corporations, which are those entities not incorporated in Arizona, cannot transact business in this state without the Arizona Corporation Commission's approval (A.R.S. §§ 10-140 and 10-1501).

Provisions

1.   Prohibits sales, leases or subleases of agricultural state land to a foreign entity. (Sec. 3 and 4)

2.   Defines foreign entity. (Sec. 1)

3.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteMakes technical and conforming changes. (Sec. 1, 2 and 3)

Amendments

Committee on Land, Agriculture & Rural Affairs

1.   Prohibits the sale of state lands (instead of just agricultural state lands) to a foreign entity.

2.   Deletes a provision prohibiting leases and subleases of agricultural state land to a foreign entity.

3.   Redefines foreign entity.

 

 

 

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                        HB 2376

Initials PAB     Page 0 Caucus & COW

 

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