ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: GOV DPA 5-3-0-0 | 3^rd Read 16-14-0-0

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SB 1115: land sales; foreign entities; prohibition

Sponsor: Senator Kern, LD 27

Committee on Land, Agriculture & Rural Affairs

Overview

Prohibits selling state lands to foreign entities and removes the prohibition on leasing and subleasing state lands to corporations or associations not qualified to transact business in Arizona.

History

Selling and Leasing State Trust 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, agricultural, commercial and homesite leases are limited to a 10-year term without prior advertisement (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). These 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 trust 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, beginning on this act's effective date, selling state trust lands to a foreign entity. (Sec. 1)

2. Defines foreign entity as a foreign government or a foreign government's state-controlled enterprise. (Sec. 1)

3. Excludes, from the definition of foreign entity, the United States government or its states, territories or possessions. (Sec. 1)

4. Removes the prohibition on leasing and subleasing state trust lands to corporations or associations not qualified to transact business in Arizona. (Sec. 2)

5. Makes technical and conforming changes. (Sec. 1 and 2)

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9.                   SB 1115

10. Initials PAB           Page 0 Land, Agriculture & Rural Affairs

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