HB2865 - 562R

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

Section 1. Section 28-2413, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2413. Environmental special plates

A. The department shall issue environmental special plates. The environmental special plates shall have the same basic color and design as the environmental license plates issued on or before December 31, 1992, except that the department may make minor alterations of environmental special plates to make the plates more reflective and readable during the daylight and nighttime hours.

B. Of the twenty-five dollar $25 fee required by section 28-2402 for original environmental special plates and for renewal of environmental special plates, eight dollars $8 is a special plate administration fee and seventeen dollars $17 is an environmental plate annual donation.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, all special plate administration fees in the state highway fund established by section 28-6991 and shall deposit the environmental plate annual donations in the environmental special plate fund established by section 37-1015 41-6013 for disbursement by the state land department for environmental education programs. END_STATUTE

Sec. 2. Repeal

Sections 37-1011 and 37-1012, Arizona Revised Statutes, are repealed.

Sec. 3. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3032.01, to read:

START_STATUTE41-3032.01. State natural resource conservation board; termination July 1, 2032

A. The state natural resource conservation board terminates on July 1, 2032.

B. Title 41, chapter 58 and this section are repealed on January 1, 2033. END_STATUTE

Sec. 4. Transfer and renumber

Title 37, chapter 6, Arizona Revised Statutes, is transferred and renumbered for placement in title 41, Arizona Revised Statutes, as a new chapter 58. Title 37, chapter 6, articles 1, 2, 3 and 4, Arizona Revised Statutes, are transferred and renumbered for placement in title 41, chapter 58, Arizona Revised Statutes, added by this act, as new articles 1, 2, 3 and 4, respectively. The following sections are transferred and renumbered for placement in title 41, chapter 58, article 1:

Former Sections New Sections

37-1001................................. 41-6001

37-1002................................. 41-6002

The following sections are transferred and renumbered for placement in title 41, chapter 58, article 2:

Former Sections New Sections

37-1013................................. 41-6011

37-1014................................. 41-6012

37-1015................................. 41-6013

The following sections are transferred and renumbered for placement in title 41, chapter 58, article 3:

Former Sections New Sections

37-1031................................. 41-6031

37-1032................................. 41-6032

37-1033................................. 41-6033

37-1034................................. 41-6034

37-1035................................. 41-6035

37-1036................................. 41-6036

37-1037................................. 41-6037

37-1038................................. 41-6038

37-1039................................. 41-6039

37-1040................................. 41-6040

The following sections are transferred and renumbered for placement in title 41, chapter 58, article 4:

Former Sections New Sections

37-1051................................. 41-6051

37-1052................................. 41-6052

37-1053................................. 41-6053

37-1054................................. 41-6054

37-1055................................. 41-6055

37-1056................................. 41-6056

37-1057................................. 41-6057

Sec. 5. Section 41-6002, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6002. Definitions

In this chapter, unless the context otherwise requires:

1. "Agency of the this state" includes the government of the this state and any subdivision, agency or instrumentality, corporate or otherwise, of the state this state's government.

2. "Agricultural lands" means irrigated farm lands or dry farm lands devoted to the purpose of agriculture.

3. "Commissioner" or "state natural resource conservation commissioner" means the state land commissioner.

4. "Department" means the state land department.

3. "Board" means the state natural resource conservation board.

4. "Cooperative agreement" means an agreement between a natural resource conservation district and a property owner within the boundaries of the district.

5. "District" means a natural resource conservation district organized in accordance with the provisions of this chapter.

6. "District cooperator" means any person who has entered into a cooperative agreement with a natural resource conservation district for the purpose of protecting, conserving and practicing wise use of the natural resources under his the district cooperator's control.

7. "Due notice" means notice published at least twice with an interval of at least six days between the two publication dates, in a newspaper of general circulation within the area affected, or if there is no newspaper of general circulation within the area affected, in a newspaper of general circulation in the county in which the area is located.

8. "Fund" means the natural resource conservation district fund.

8. 9. "Government" or "governmental" includes the government of the this state, the government of the United States, and any subdivision, agency or instrumentality, corporate or otherwise, of either of them.

9. 10. "Irrigation district":

(a) Means an irrigation district, drainage district, water conservation district, and agricultural improvement district. , and, in addition thereto,

(b) Includes any district, political subdivision, government agency, canal company, association, corporation or instrumentality of the this state, having territorial boundaries and created or organized for the purpose of furnishing irrigation water for lands in the this state.

10. 11. "Landowner" or "owner of land":

(a) Means any person, firm or corporation, including the this state, holding that holds title to any land lying within a district organized or proposed to be organized under the provisions of this chapter. , and

(b) Includes:

(i) A buyer on contract who is the occupant of land. For the purposes of this chapter,

(ii) A holder of a certificate of purchase or lease from the this state. shall be considered the "landowner" or "owner of land".

11. 12. "Nominating petition" means a petition to nominate candidates for the office of supervisor.

12. 13. "Petition" means a petition for the creation or for the dissolution of a district.

13. 14. "Qualified elector" means a person who is a district cooperator and a qualified elector of the state.

14. 15. "Range lands" means lands other than agricultural lands and that are devoted principally to the purpose of grazing livestock.

15. 16. "Supervisor" means a member of the governing body of a district, elected or appointed in accordance with the provisions of this chapter.

16. 17. "United States" or "agencies of the United States" includes the United States, the United States department of agriculture and any other agency or instrumentality, corporate or otherwise, of the United States. END_STATUTE

Sec. 6. Heading change

The article heading of Title 41, chapter 58, article 2, Arizona Revised Statutes, as transferred and renumbered, is changed from "DIVISION OF NATURAL RESOURCE CONSERVATION" TO NATURAL RESOURCE CONSERVATION".

Sec. 7. Section 41-6011, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6011. State natural resource conservation board; membership; powers and duties

A. The state natural resource conservation board is established consisting of the following members who are residents of this state, not more than two of whom are residents of the same county, and who are appointed by the governor:

1. At least six of the members must be appointed from natural resource conservation districts. The following categories of members may not be from the same geographic natural resource area as defined by a STATEWIDE organization that represents all natural resource conservation districts in this state:

(a) Elected supervisors for natural resource conservation districts.

(b) Appointed supervisors from soil and water conservation districts.

2. The remaining members must be members of the public.

B. The initial members of the board shall assign themselves by lot to terms of one, two and three years in office. All subsequent members serve three year terms. The chairperson of the board shall notify the governor's office of these terms.

C. If a member's term as a supervisor expires while serving on the board, that member may serve out the member's term as a board member.

D. Board members may appoint designees with full voting privileges.

E. Board members shall be reimbursed for expenses as prescribed by title 38, chapter 4, article 2 while attending board meetings.

F. The board may appoint an administrative officer, a secretary and such other assistants as may be required, assign their duties, define their powers and determine the amount of bond required of any assistant entrusted with monies or property. The compensation of all such assistants shall be determined pursuant to section 38-611.

G. The board shall adopt a seal, which shall be judicially noticed, and shall hold public hearings, keep records of all proceedings and annual records of district operations, adopt orders and rules and perform other acts as are necessary to carry out this chapter.

A. H. The state natural resource conservation commissioner board shall:

1. Offer appropriate assistance to the supervisors of districts in carrying out their powers and programs.

2. Keep the supervisors of each district informed of the activities and experiences of other districts and of relevant information from other states, and facilitate cooperation and interchange of advice, and experience and program opportunities between districts.

3. Coordinate the programs of the several districts insofar as possible by advice and consultation.

4. Require the supervisors of each district to file with the commissioner board annually any audits and the records of the operations of the district for the preceding year in the form and detail as the commissioner board prescribes.

5. Secure the cooperation and assistance of the United States, its agencies and agencies of this state, in the work of districts as local units of state government with special expertise concerning land, soil, water and natural resources management within the boundaries of the district, as the commissioner board deems for the best interest of the state.

6. Disseminate information throughout the state concerning the activities and program of districts.

7. Provide staff support to the Arizona water protection fund commission established by title 45, chapter 12 and provide administrative assistance to natural resource conservation districts for compliance with the duties for districts pursuant to title 45, chapter 12.

8. MEET at least quarterly to receive UPDATES from the board's administrative officer regarding any relevant issue or matter NECESSARY to carry out this chapter, provide GUIDANCE to the administrative officer and vote on any matters requiring a decision by the board.

9. Assist a district when the district is cooperating or coordinating with a federal agency.

10. Assist districts with developing long-term plans.

11. Adopt administrative rules that the board deems necessary and proper to carry out this chapter.

B. I. The commissioner board may remove a district supervisor from office if the commissioner board determines, after reasonable notice and an impartial hearing, that the supervisor is guilty of misfeasance, malfeasance or nonfeasance in office. For the purposes of this subsection, "nonfeasance" includes the failure to attend three consecutive meetings of district supervisors without reasonable excuse.

J. The board may contract or employ, pursuant to chapter 4, article 4 of this title, legal COUNSEL, INDEPENDENT from the attorney general, and other professional and administrative services. Legal counsel retained by the board may advise and represent the board in legal matters before other departments and agencies of this state and may represent the board in litigation concerning the affairs of the board. Contracts for legal and professional services are exempt from section 41-192 and chapter 23 of this title. END_STATUTE

Sec. 8. Section 41-6012, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6012. State financial assistance; application; criteria

A. The commissioner board shall include in the board's annual state land department budget request a sum of not more than forty thousand dollars $40,000 for each natural resource conservation district and sixty thousand dollars soil and water conservation district and $60,000 for each natural resource conservation district that operates an education center for distribution by the commissioner board to those natural resource conservation districts that have applied for, have met the criteria for and have been approved for receiving state financial assistance, as provided in this section.

B. Any district or education center desiring to receive state financial assistance for the next ensuing fiscal year shall apply to the commissioner board not later than June 20, on a form supplied by the division of natural resource conservation board. Each application shall include:

1. The number of acres of land lying within the district.

2. The extent of conservation programs or education center programs proposed to be undertaken during the fiscal year for which the financial assistance is being requested.

3. Any audits that are requested by the commissioner board.

C. On receipt of the application, the commissioner board shall determine whether or not such funds monies for the district or education center will be included in the board's budget request for the state land department and shall promptly notify the district of that determination. END_STATUTE

Sec. 9. Section 41-6013, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6013. Environmental special plate fund; distribution

A. An The environmental special plate fund is established and is administered by the commissioner board consisting of monies received pursuant to section 28-2413.

B. Subject to legislative appropriation, the department board shall distribute five thousand dollars $5,000 annually to each natural resource conservation district with an established education center for the purpose of developing and implementing an environmental education program that is conducted in a balanced manner, that is based on current scientific information and that includes a discussion of economic and social implications.

C. The fund established in this section is exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the commissioner board, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

D. The appropriated monies shall only be used for the designated purposes specified in statute. END_STATUTE

Sec. 10. Title 41, chapter 58, article 2, Arizona Revised Statutes, as transferred and renumbered, is amended by adding section 41-6014, to read:

START_STATUTE41-6014. Natural resource conservation district fund; exemption; annual report

A. The natural resource conservation district fund is established consisting of legislative appropriations, grants, federal monies and other contributions. The board shall administer the fund. Monies in the fund are continuously appropriated and exempt from the provisions of section 35-190 relating to the lapsing of appropriations.

B. On notice from the board, the state TREASURER shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be CREDITED to the fund.

C. The board shall do all of the following:

1. Establish criteria for the use of monies in the fund.

2. Establish and revise, as necessary, the grant application process.

3. Review and evaluate all SUBMITTED grant applications.

4. AWARD GRANTS TO NATURAL RESOURCE CONSERVATION DISTRICTS AND SOIL AND WATER CONSERVATION DISTRICTS TO CONDUCT PROJECTS THAT FURTHER THE PURPOSE OF THE DISTRICT. GRANTS AWARDED PURSUANT TO THIS SECTION ARE EXEMPT FROM CHAPTER 23 of this title.

D. An entity that RECEIVES monies pursuant to this section may not receive more than twenty percent of the monies AVAILABLE in the fund in any given fiscal year.

E. Monies in the fund may not be used to acquire property.

F. Up to ten percent of the monies in the fund may be used by the board for the administration of the fund.

G. On or before december 31, 2025 and each year THEREAFTER, the board shall submit a report describing the grants awarded from the fund during the previous fiscal year to the governor's office of strategic planning ang budgeting, the president of the senate, the speaker of the house of representatives, the chairperson of the senate natural resources, energy and water committee, or its SUCCESSOR committee, and the chairperson of the house natural resources, energy and water committee, or its SUCCESSOR committee, and shall provide a copy of this report to the secretary of state. END_STATUTE

Sec. 11. Section 41-6031, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6031. Petition for creation of district

Twenty-five or more owners of land, but not less than twenty per cent percent of the owners of land lying within the limits of a proposed district, or if there are fewer than twenty-five owners of land in the proposed district, not less than twenty-five per cent percent of all such owners, may petition the commissioner board requesting that a district be organized. The petition shall contain:

1. The proposed name of the district.

2. A declaration that there is need, in the interest of preservation of property, health, safety and public welfare, for a district in the territory described.

3. A description of the exterior boundaries of the territory proposed to be organized.

4. A request that the commissioner board:

(a) Determine that the district be created.

(b) Define the boundaries of the proposed district.

(c) Direct that a referendum be held within the territory so defined on the question of the creation of a district. END_STATUTE

Sec. 12. Section 41-6032, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6032. Hearing on petition; notice

A. Within ninety days after a petition has been accepted by the commissioner board, notice of a hearing shall be given by publication in at least two issues, at intervals of not less than six days, of a newspaper of general circulation within the area affected. , or If there is no such newspaper, the publication shall be in a newspaper of general circulation within the county or the district shall post the notice on the district's website. , of a hearing upon The hearing shall include:

1. The desirability and necessity, in the interest of preservation of property, health, safety and public welfare, of the creation of such district.

2. The appropriate boundaries to be assigned to the district.

3. The propriety of the petition and other proceedings taken.

4. All related questions.

B. All owners of land within the limits of the territory described in the petition and of lands within any territory considered for addition to the described territory, and all other interested parties, may attend and be heard at such hearing.

C. If it appears on the hearing that it is desirable to include within the proposed district territory outside the area described in the petition, the hearing shall be adjourned and notice of further hearing given, in the manner provided by this section, in the entire area considered for inclusion in the district. END_STATUTE

Sec. 13. Section 41-6033, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6033. Determination by the board

A. If, after final hearing upon on a petition, the commissioner board determines upon on the facts presented and other relevant information that a district within the territory considered is in the public interest, he the board shall record such determination and define the boundaries of the district. In defining the boundaries, he the board shall consider:

1. The topography of the area.

2. The character of soils.

3. The distribution of erosion.

4. Prevailing land use practices.

5. The desirability and necessity of including within the boundaries of the district the particular lands under consideration and the benefits to be received by such inclusion.

6. The relation of the proposed area to existing watersheds and agricultural regions, and to other districts already organized or proposed for organization.

7. Such other physical, geographical and economic factors as are relevant.

B. In defining the boundaries of the district, the commissioner board shall not include therein any area, land or property of any person or persons who do not desire to have such area, land, or property included in such district. Notwithstanding any provision of this chapter to the contrary, lands held under certificate of purchase or lease from the this state shall not be included in any district if the holder or holders of certificates of purchase or the leases therefor do not desire such lands included.

C. If the commissioner board determines that it is not in the public interest for a district to function in the territory considered, he the board shall record such determination and deny the petition.

D. After expiration of Eighteen months from after the date of entry of a determination by the commissioner board that operation of a proposed district is not administratively and economically feasible, and denial of a petition pursuant to that determination, petitions may again be filed and action taken in accordance with the provisions of this chapter. END_STATUTE

Sec. 14. Section 41-6034, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6034. Referendum; election of supervisors

A. Within a reasonable time after the commissioner board has recorded his its determination that it is in the public interest that a district be organized, and has defined the boundaries thereof, he the board shall hold a referendum within the proposed district upon on the question of the creation of the district, and an election to elect three supervisors. He the board shall adopt rules for the conduct of such referendum and election and prescribe a procedure for the determination of persons eligible to vote. The referendum and election of supervisors shall be conducted by separate ballots.

B. The ballot for the referendum shall:

1. Describe the boundaries of the proposed district as determined by the commissioner board.

2. Contain the propositions: "For the creation of a district" and "against the creation of a district", with a square after each proposition.

3. An instruction to mark an X in the square after the proposition for which the voter wishes to vote.

C. Only owners of land lying within the boundaries of the territory described shall be eligible to vote on the referendum, but any such owner who is not a qualified elector of the district, or any owner who is a qualified elector but is unable because of illness or absence from the district to appear at the polls, may appoint in writing, on a form prescribed by the commissioner board, a qualified elector of the district as his the owner's agent or proxy. The appointment of agent or proxy shall be presented to the board of election, and if it is found to be bona fide and in proper form, the holder thereof shall be allowed to vote in behalf of the owner executing the appointment on the question of creation of the district only. The appointment shall be filed with the ballots and other election returns.

D. Candidates for supervisor shall file nomination petitions with the commissioner board in the manner prescribed by the commissioner board. Any qualified elector of the proposed district may sign the petitions of not more than three candidates. The names of candidates shall appear on the election ballot in alphabetical order by surnames, with a square opposite each name, and an instruction to mark an X in the squares opposite the names of not more than three candidates for whom the voter wishes to vote.

E. No informality in the conduct of any referendum or election held under the provisions of this chapter, or in any matter relating thereto, shall invalidate the result thereof if notice has been given substantially as prescribed in section 37-1032 41-6032, and the referendum and election have been fairly conducted. All expenses of a referendum and election shall be paid by the commissioner board. END_STATUTE

Sec. 15. Section 41-6035, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6035. Proclamation of result of referendum and election; terms of supervisors

A. If not less than sixty-five per cent percent of the landowners voting at the referendum and the owners of not less than fifty per cent percent of the land, other than publicly owned, lying within the proposed district vote in favor of the creation thereof, the commissioner board shall declare the district organized. Otherwise he the board shall declare the proposal defeated.

B. The three candidates receiving the highest number of votes at the election for supervisors shall be declared elected. Their terms shall begin upon on the date of filing the oath of office with the secretary of state. The term of the candidate receiving the largest number of votes shall terminate on May 31 of the third even-numbered year, of the candidate receiving the next largest number of votes on May 31 of the second even-numbered year, and of the candidate receiving the next largest number of votes on May 31 of the first even-numbered year following the election. END_STATUTE

Sec. 16. Section 41-6036, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6036. Proceedings to organize district; certificate of organization

A. A district shall be organized and shall be a body corporate upon on taking the following steps:

1. The supervisors elected as provided in section 37-1035 41-6035 shall present to the secretary of state an application, signed and acknowledged by each supervisor, setting forth:

(a) That a petition for the creation of the district was approved by the commissioner board pursuant to the provisions of this chapter.

(b) The name and official residence of each supervisor, and a certified copy of their notification of election.

(d) The location of the proposed office of the supervisors of the district.

2. The application shall be accompanied by a certificate of the commissioner which board that shall set forth:

(a) The boundaries of the district as determined by him the board.

(b) That a petition was filed, notice was issued and a hearing was held as prescribed by law.

(c) That for a district to function in the proposed territory was determined by the commissioner board to be in the public interest.

(d) That notice was given and a referendum on the question of the creation of the district and an election of supervisors were held.

(e) That the results of the referendum showed not less than sixty-five per cent percent of the votes cast, representing not less than fifty per cent percent of the owners of land, to be in favor of the creation of the district.

(f) That the supervisors signing the application are the duly elected supervisors of the district.

3. The secretary of state shall examine the application and statement and, if he the secretary of state finds that the name proposed for the district is not identical with or so similar to that of any other district as to lead to confusion, he the secretary of state shall record them. If the name proposed is identical with or so similar to another district as to lead to confusion, he the secretary of state shall certify that fact to the commissioner board, who which shall submit another name. Upon On receipt of a new name, free from defects, the secretary of state shall record the application and statement.

B. The secretary of state shall issue to the supervisors a certificate, under the seal of the this state, certifying the organization of the district, and record the certificate with the application and statement. The district shall include the territory as determined by the commissioner board, but it shall not include any area within the boundaries of another district, nor and shall it not include any area, land or property of or lands held under certificate of purchase or lease from the state by any person or persons, which area, land, property or leaseholds lie within the geographical limits of such district but the owners or holders of certificates of purchase or lessees of which do not desire to come within the district.

C. In any action or proceeding involving the validity or enforcement of, or relating to, any contract, proceeding or action of the district, the district shall be deemed to have been established in accordance with the provisions of this chapter upon on proof of the issuance of the certificate of organization by the secretary of state. A copy of the certificate certified by the secretary of state shall be admissible in evidence in any action or proceeding, and shall be proof of the filing and contents thereof. In like manner, any district combined, and consolidated with an adjacent district or districts, and reorganized and renamed prior to the date of this section before June 20, 1968 shall be deemed to have been established upon on proof of certifications and official maps filed with the secretary of state by the division of natural resource conservation of the state land department board.

D. The commissioner board shall appoint two supervisors from a panel of candidates compiled by the elected supervisors and presented by the temporary chairman of the elected supervisors. Candidates for the office of appointed supervisors shall be qualified electors of the state. Appointed supervisors shall continue to serve until May 31 of the next even-numbered year or until their successors are otherwise appointed. END_STATUTE

Sec. 17. Section 41-6037, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6037. Addition of territory

A. Territory adjacent to an organized district may be included therein upon in the district on a petition signed by seventy-five per cent percent of the owners of land, other than publicly owned land, within the territory proposed for addition filed with the district supervisors, requesting the inclusion of their lands in the district.

B. The supervisors shall hold a public hearing upon on the advisability and feasibility of including the additional territory, notice of which shall be given by posting at least two weeks prior to before the date of the hearing in the office of the supervisors and such other public notice as the supervisors may deem proper. If, after such hearing, the supervisors recommend and the commissioner board, upon on a review of the findings of the supervisors, approves, the additional land shall become a part of the district. The commissioner board shall certify the action to the secretary of state, and the certificate shall be filed with the original certificate of organization of the district.

C. No area, land, property of or lands held by any person under lease or certificate of purchase from the state shall be included in any territory added to any district if the owner or owners of such area, lands, property, certificate of purchase or leaseholds do not desire them to be included in such district. END_STATUTE

Sec. 18. Section 41-6038, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6038. Dissolution of district

A. At any time after five years following the organization of a district, any twenty-five owners of land or not less than twenty per cent percent of the owners of land lying within the boundaries of the district may file a petition with the commissioner board praying that the operations of the district be terminated and its existence discontinued. The commissioner board shall conduct such public meetings and hearings upon on the petition as may be necessary to assist in the consideration thereof.

B. Within sixty days after filing of the petition, the commissioner board shall give notice of the holding of a referendum, and shall supervise the referendum and issue appropriate regulations governing the conduct thereof. The question shall be submitted by ballots upon on which the propositions, "For terminating the existence of the (name of district)" and "against terminating the existence of the (name of district), " shall be printed, with a square after each proposition and an instruction to mark an X in the square following the proposition for which the voter desires to vote. Only owners of lands lying within the boundaries of the district shall be eligible to vote on the referendum. No informality in the conduct of the referendum or in any matter relating thereto shall invalidate the referendum or the result thereof, if due notice thereof has been given substantially as provided in this chapter and the referendum has been fairly conducted.

C. If sixty-five per cent percent of the landowners voting thereon vote to terminate the existence of a district, the commissioner board shall advise the supervisors to conclude the affairs of the district. The supervisors shall dispose of all property belonging to the district at public auction and shall transmit the proceeds of the sale to the state treasurer for deposit, pursuant to sections 35-146 and 35-147.

D. after disposing of the PROPERTY and TRANSMITTING the proceeds of the sale pursuant to subsection C of this section, the supervisors shall thereupon file a verified application with the secretary of state for discontinuance of the district, together with the certificate of the commissioner board setting forth the determination of the commissioner board that the continued operation of the district is not administratively feasible. The application shall recite that the property of the district has been disposed of and the proceeds paid over as provided in this section, and shall include a full accounting of the properties and the proceeds of the sale. The secretary of state shall issue to the supervisors a certificate of dissolution, and shall record the certificate in his the secretary of state's office.

E. The commissioner board shall not entertain a petition for the discontinuance of any district, nor conduct a referendum thereon, nor make any determination pursuant thereto, more than once in five years. END_STATUTE

Sec. 19. Section 41-6039, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6039. Status following dissolution

Upon On the issuance of a certificate of dissolution as provided in section 37-1038 41-6038, the ordinances and regulations theretofore in force within the district shall be of no further effect. Any contract theretofore entered into to which the district or supervisors are parties shall remain in force for the period provided therein, and the commissioner board shall be substituted for the district or supervisors as a party thereto. The commissioner board shall be entitled to all benefits and subject to all liabilities under any such contract and shall have the same right and liability to perform, require performance, sue and be sued thereon, and to modify or terminate the contract by mutual consent or otherwise, as the supervisors of the district would have had. Dissolution shall not affect the lien of any judgment entered under the provisions of this chapter, nor the pendency of any action instituted thereunder, and the commissioner board shall succeed to all the rights and obligations of the district or supervisors as to such liens and actions. END_STATUTE

Sec. 20. Section 41-6040, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6040. Change in boundaries; combination or division of districts; change in name of districts

A. Petitions for a change in the boundaries of existing districts, or the combination of two or more existing districts may be filed with the commissioner state natural resource conservation board by a majority of supervisors of the board or boards of supervisors of the district or districts to be affected. In the case of a proposed combination of two or more existing districts, the petition shall state the proposed boundaries of the new combined district, the proposed name, and shall propose a method, which has been mutually agreed upon on by all boards of supervisors of affected districts, as to the future terms of office of existing district supervisors, and how such terms will be determined. The commissioner state natural resource conservation board may require such hearings as he the STATE NATURAL RESOURCE CONSERVATION board deems appropriate to enable him the state natural resource conservation BOARD to make a determination as to the desirability of the proposed changes. If the commissioner state natural resource conservation board makes a determination in favor of the changes, he the state natural resource conservation BOARD shall certify the fact of such change to the secretary of state and shall notify the board of supervisors of the district, or districts, setting out in such notice the new boundaries and the name of the district and confirmation of terms of the supervisors. The secretary of state shall make and issue a corrected certificate of organization upon on receipt of such certification from the commissioner state natural resource conservation board.

B. The board of supervisors of any one or more districts organized under the provisions of this section may submit to the commissioner state natural resource conservation board a petition signed by a majority of the members of the board of supervisors of each district affected requesting a division of a district, a combination of two or more districts, or a transfer of land from one district to another. The commissioner state natural resource conservation board shall make a determination as to the practicability and feasibility of the proposed change, giving due regard to the same considerations as provided in this section for changes in district boundaries by other methods. If the commissioner state natural resource conservation board determines that the proposed change of district boundaries is not administratively practicable and feasible, he the state natural resource conservation board shall record such determination and deny the petition. If the commissioner state natural resource conservation board determines that the proposed change is administratively practicable and feasible, he the state natural resource conservation board shall record such determination and proceed with the reorganization of the district or districts affected in the same manner as provided in this section for changes in district boundaries by other methods.

C. Petitions for a change in the name of a district may be submitted to the commissioner state natural resource conservation board by a majority of supervisors of the board of supervisors of a district. If the commissioner state natural resource conservation board approves the change of name, he the state natural resource conservation board shall certify the fact of such change of name to the secretary of state and shall notify the board of supervisors of the district of such change, setting out in such notice the new name of the district. The secretary of state shall make and issue a corrected certificate of organization upon on receipt of such certification from the commissioner state natural resource conservation board. END_STATUTE

Sec. 21. Section 41-6051, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6051. District supervisors; term of office; biennial election

A. The governing body of a district shall consist of five supervisors, three of whom are to be elected and two appointed by the commissioner board from a list of nominees selected by the elected SUPERVISORS. Except as to the first supervisors, whose election and terms are prescribed in section 37-1035 41-6035, the term of each elected supervisor shall be six years, beginning on June 1 following his the supervisor's election. As prescribed in section 37-1036 41-6036, the terms of the two supervisors appointed by the commissioner board shall be until May 31 of the next even-numbered year, or until their successors are otherwise appointed.

B. An election shall be held on the first Saturday in May of each even-numbered year, at which one supervisor of the district shall be elected. Any person desiring to be a candidate shall file with the commissioner board a nomination petition in such form as the commissioner board prescribes, at least ten days prior to before the election, containing the signatures of not less than twenty-five one-half of one percent of the qualified electors of the district or five qualified electors of the district, whichever is higher. No person shall be eligible to be a candidate for supervisor unless he the person is a qualified elector of the district. The names of candidates shall appear on the ballot in alphabetical order by surnames, with a square after each name and an instruction to mark an X in the square after the name of the voter's choice. The governing body of a district may provide a mail ballot to a qualified district elector for which the district governing body has a first class mailing address. Qualified electors of a district who wish to vote by mail ballot shall file a first class mailing address with the district governing body at least thirty days prior to before the date of the election. Qualified district electors who receive ballots in proper form from the district governing body may cast their votes by mail. Mail ballots, to be counted, shall be received at the place designated, and within the time prescribed by the district supervisors and clearly specified in the notice of election. Only qualified electors of the district shall have the right to vote. The district governing body shall provide at least one polling place in the district for qualified voters who wish to vote in person. If two or more candidates receive the same number of votes, the successful candidate shall be determined by lot. if only one person files a nominating petition for an election to fill a position on the district board for which the term of office is to expire, the board may cancel the election for that position and instead may appoint the person who filed the nominating petition to fill the position. If no person files a NOMINATING PETITION for an election to fill a district office, the board may cancel the election for the offices and the office shall be filled as otherwise provided by law. A person who is appointed pursuant to this subsection is fully vested with the powers and duties of the office as if elected to that office. END_STATUTE

Sec. 22. Section 41-6052, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6052. Organization of supervisors; vacancies

A. At the first meeting of the supervisors following an election, they shall organize by electing a chairman and a vice chairman and such other officers as are deemed necessary from among their number to serve for the ensuing two years.

B. If a vacancy occurs in the office of an elected supervisor otherwise than by expiration of term, the commissioner board may appoint a qualified elector of the district to serve until June 1 of the next even-numbered year, when a successor shall be elected for the remainder of the term.

C. District supervisors may employ a secretary and such other agents, employees and technical or professional experts as they may from time to time require, and may determine qualifications, compensation and duties applicable to any agent, employee or expert engaged. END_STATUTE

Sec. 23. Section 41-6053, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6053. Powers and duties of supervisors

A. The supervisors shall:

1. Provide for the keeping of a record of all proceedings, resolutions, regulations and orders issued or adopted.

2. Furnish to the commissioner board copies of such ordinances, rules, regulations, orders, contracts, forms or other documents adopted or employed, audits of the district or education center and such information concerning their activities as the commissioner board requests.

B. The supervisors may appoint additional advisory members to the district governing body and delegate to the chairman or any member, or to any agent or employee, such powers and duties as they deem proper.

C. District supervisors shall require and provide for the execution of a corporate surety bond in suitable penal sum for, and to cover, any person entrusted with the care or disposition of district funds monies or property.

D. The compensation of the district supervisors shall be determined by the supervisors meeting as the governing body of the district but shall not exceed the compensation prescribed by section 38-611, plus actual and necessary expenses of attending district meetings, and a per diem subsistence allowance and actual and necessary expenses while engaged in official business by order of the supervisors. END_STATUTE

Sec. 24. Section 41-6054, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6054. Powers of district

A. This state recognizes the special expertise of the districts in the fields of land, soil, water and natural resources management within the boundaries of the district. A district is empowered to:

1. Conduct surveys, investigations and research relating to the character of the soil, soil erosion prevention within a farm or ranch, methods of cultivation, farm and range practices, seeding, eradicating noxious growths and invasive vegetation and any other measures that will aid farm and range operations, disseminate information and educate landowners pertaining thereto, and carry on research programs with or without the cooperation of this state or its agencies or the United States or its agencies.

2. Create and administer a soil health program that promotes implementation of soil health practices, research projects, demonstration projects, educational projects or other activities appropriate to promote the continuing capacity for soil to function as a vital living biological system that sustains plants, animals and humans, increased soil organic matter, improved soil structure, water-holding and nutrient-holding capacity or nutrient cycling.

3. Conduct demonstration projects within the district on lands owned or controlled by the state or any of its agencies with the consent and cooperation of the agency having jurisdiction of the land, and on any other lands within the district on obtaining the consent of the landowner or the necessary rights or interests in the land, in order to demonstrate by example the means, methods and measures by which water, soil and soil resources may be conserved and soil erosion and soil washing may be prevented and controlled.

4. Cooperate, coordinate and enter into agreements with a landowner, an operator or any agency or subdivision of the state or federal government to carry on programs of watershed improvement, soil erosion prevention, methods of cultivation, cropping practices, land leveling and improvement on agricultural lands, and programs limited to methods of proper range land use, reseeding and eradicating noxious growth and invasive vegetation on grazing lands, all within the limits of an individual farm or ranch and subject to the conditions the supervisors deem necessary.

5. Acquire, by purchase, exchange, lease or otherwise, any property, real or personal, or rights or interest in any property, maintain, administer and improve any properties acquired, receive income from any property or right or interest in property and expend it in carrying out the purposes of this chapter, and sell, lease or otherwise dispose of any property or interest in property in furtherance of the purposes of this chapter.

6. Make available, on the terms it prescribes to landowners within the district, agricultural and engineering machinery and equipment, fertilizer, seed and other material or equipment as will assist the landowners to carry on operations on their lands for the purposes and programs authorized by this chapter.

7. Develop, publish and bring to the attention of landowners within the district comprehensive plans for conserving soil and water resources within the district that specify in such detail as may be feasible the acts, procedures, performances and avoidances necessary or desirable to effect the plans.

8. Apply for, receive and spend monies from the Arizona water protection fund pursuant to title 45, chapter 12 to be used in individual districts or in cooperation with other districts, persons, cities, towns, counties, special districts and Indian communities for projects consistent with title 45, chapter 12.

9. Employ agents, engineers, attorneys or other employees not readily available from existing state agencies.

10. Sue and be sued in the name of the district, have a seal, which shall be judicially noticed, have perpetual succession unless terminated as provided in this chapter, make and execute contracts and other instruments necessary or convenient to exercise its powers and make, amend and repeal rules not inconsistent with this chapter to effect its purposes and powers.

11. apply for grants and accept donations, gifts and contributions in monies, services, materials or otherwise, and use or expend them in carrying on its operations.

12. Organize and establish an education center to increase the knowledge of natural resources in this state through the following methods:

(a) Offering technical guidance and training to agricultural producers.

(b) Publishing scholarly materials.

(d) Conducting or sponsoring scientific studies that affect natural resources in this state.

(e) Increasing public awareness of water conservation statewide, including water conservation methods and best management practices.

(f) Increasing public awareness of soil health practices statewide.

13. Apply for, receive and spend monies from the water infrastructure finance authority of Arizona pursuant to title 49, chapter 8 to be used in INDIVIDUAL districts or in cooperation with other districts and cities, towns, counties, special districts, indian communities and other PERSONS for projects consistent with title 49, chapter 8.

B. A provision of law with respect to acquiring, operating or disposing of property by other public bodies is not applicable to a district organized under this chapter unless specifically stated therein.

C. After the formation of any district under this chapter, all participation thereunder shall be voluntary, notwithstanding any provision of this chapter to the contrary.

D. A district may send to the board and the Arizona water protection fund commission established by title 45, chapter 12 written recommendations for geographic areas to be emphasized, issues of concern and measures to implement title 45, chapter 12. A district that sends written recommendations to the commission shall request information from at least the following:

1. The director of the department of water resources and the state land commissioner board.

2. The federal and state fish, wildlife, recreation and natural resource agencies.

3. County and municipal entities.

4. The public.

E. The district shall develop procedures to ensure adequate participation in the public involvement process prescribed by subsection D of this section. END_STATUTE

Sec. 25. Section 41-6055, Arizona Revised Statutes, as transferred and renumbered, is amended to read:

START_STATUTE41-6055. Limitation of powers

A. Nothing in This chapter shall does not affect existing water rights or and does not in any manner contravene the provisions of this title 37.

B. No district or public body shall undertake or cooperate in the planning, construction, improvement or maintenance of any structure, dike or channel for the storage, spreading, diversion or conveyance of water resulting in the consumptive use of water, on any watershed or drainage area which that supplies or contributes water for the irrigation of lands within any irrigation district or for the irrigation of other lands having established rights in such water, without first submitting the plans therefor to the governing body of such irrigation district or districts. Such governing body shall within forty-five days after receipt of such plans either approve or reject them. The approval may be given for rangeland soil conservation practices by agreement on an annual or continuing basis between the governing bodies of the affected irrigation districts and the supervisors of such natural resource conservation districts. If the governing body fails to approve or reject the plans within forty-five days, it shall be deemed to have approved them. If the governing body rejects the plans, the district or public body proposing such plans may appeal to the commissioner board. The appeal shall be taken within forty-five days after such decision. The commissioner board shall review the decision, and may approve the plans only if after an investigation and hearing he the board finds that the work proposed to be done will not result in the consumptive use of water. An appeal from the decision of the commissioner board may be taken by either party pursuant to the provisions of section 37-215 title 41, chapter 6, article 10. The provisions of This subsection shall does not preclude the use of any other legal remedy otherwise available to any person or interested party.

C. The diversion, application or use of water by means of any improvement constructed, maintained or operated under the provisions of this chapter shall is not be construed to be an appropriation of or does not vest any right to the use of public water. END_STATUTE

Sec. 26. Section 43-1084, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1084. Credit for agricultural water conservation system

A. A credit is allowed against the taxes imposed by this title for expenses that the taxpayer incurred during the taxable year to purchase and install an agricultural water conservation system in this state. The amount of the credit is equal to seventy-five percent of the qualifying expenses.

B. To qualify for the credit under this section:

1. The agricultural water conservation system must be primarily designed to substantially conserve water on land that is used by the taxpayer or the taxpayer's tenant to:

(a) Produce crops, fruits or other agricultural products.

(b) Raise, harvest or grow trees.

2. The expense must be consistent with a conservation plan that the taxpayer has filed with the United States department of agriculture, natural resources conservation service, or a natural resource conservation district in this state established pursuant to title 37 41, chapter 6 58.

C. Co-owners of the land on which the water conservation system is installed, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.

D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five taxable years' income tax liability.

E. The credit allowed by this section is in lieu of any deduction for such expenses allowed by the internal revenue code and included under section 43-1042 in computing taxable income. END_STATUTE

Sec. 27. Section 45-2103, Arizona Revised Statutes, is amended to read:

START_STATUTE45-2103. Arizona water protection fund commission

A. The Arizona water protection fund commission is established and consists of two ex officio members, two advisory members and nine appointed members who are residents of this state, who have demonstrated an interest in natural resources and who are appointed as follows:

1. One person who represents a multi-county water conservation district established pursuant to title 48, chapter 22 and named by that district's governing board.

2. One person who represents a state association of natural resource conservation districts and who is appointed by the governor.

3. Four persons who represent natural resource conservation districts established pursuant to title 37 41, chapter 6 58, and who represent geographically diverse areas of this state, two of whom shall be appointed by the president of the senate and two of whom are appointed by the speaker of the house of representatives.

4. One member of the public who has at least a bachelor's degree in hydrology, who represents a city that is served by the central Arizona project and who is appointed by the governor.

5. One person who is knowledgeable in natural resource conservation issues or in water resource issues related to riparian ecosystems, who represents an agricultural improvement district established pursuant to title 48, chapter 17 and who is appointed by the governor.

6. One person who represents an Indian tribe and who is appointed by the chairman of the intertribal inter tribal council of Arizona.

7. As nonvoting ex officio members, the director of the department of water resources and the state land commissioner.

8. As nonvoting advisory members, one member of the house of representatives who is appointed by the speaker of the house of representatives and one member of the senate who is appointed by the president of the senate. Advisory members may not be considered for purposes of establishing a quorum.

B. Members of the commission appointed pursuant to subsection A, paragraphs 1 through 6 of this section shall be appointed for staggered terms of three years. A member may serve more than one term and may continue to serve beyond the expiration of the term until a successor is appointed and assumes office.

C. On request, members who are not ex officio members of the commission are eligible to receive compensation pursuant to section 38-611, not to exceed three thousand dollars $3,000 in any calendar year, and are eligible for reimbursement for expenses pursuant to title 38, chapter 4, article 2.

D. Members of the commission are immune from liability for any action necessary to carry out the purposes of this chapter. END_STATUTE

Sec. 28. Section 45-2106, Arizona Revised Statutes, is amended to read:

START_STATUTE45-2106. Public involvement

A. The commission is subject to the provisions of title 38, chapter 3, article 3.1 and title 39, chapter 1.

B. The commission shall develop and may amend the guidelines for applicants required by section 45-2105 after reviewing the recommendations submitted by the natural resource conservation districts developed pursuant to section 37-1054 41-6054, subsections D and E and the information gathered during the public involvement process.

C. The commission shall gather information from the following:

1. The director of the department of water resources, the state natural resource conservation board and the state land commissioner.

2. The federal and state fish, wildlife, recreation and natural resource agencies.

3. County and municipal entities.

4. The public.

D. The commission shall develop procedures to assure adequate public participation. At a minimum, public participation procedures shall prescribe public notice requirements, including the content and publication of the notice, provide an opportunity for public hearings and specify the procedures governing the hearings and require the public availability of relevant documents. Public hearings shall be held at places and times which that afford a reasonable opportunity to persons to participate.

E. The commission shall make available for viewing copies of the recommendations and supporting documents submitted pursuant to this section and may charge a reasonable fee for copying. END_STATUTE

Sec. 29. Section 49-1335, Arizona Revised Statutes, is amended to read:

START_STATUTE49-1335. Water conservation grant committee; membership; recommendations

A. The water conservation grant committee is established to advise the board and consists of the following members who are appointed by the board:

1. One member who represents a public water system that serves five hundred or more connections.

2. One member who represents a public water system that serves less than five hundred connections.

3. One member who represents a county with a population of five hundred thousand or more persons.

4. One member who represents a county with a population of less than five hundred thousand persons.

5. One member who represents an advocacy group with a primary focus on water conservation.

6. One member who represents a university in this state and who has significant knowledge in water conservation.

7. One member who represents a natural resource conservation district established pursuant to title 37 41, chapter 6 58.

8. The director of the department of water resources or the director's designee.

B. The water conservation grant committee shall review applications for grant requests from the water conservation grant fund and shall make recommendations to the board regarding those applications.

C. The water conservation grant committee shall meet at least once a month to review grant applications, except that the committee need not meet in any month in which no applications are pending before the committee. The board may require the committee to hold additional meetings to consider applications that are or may become time sensitive. The committee shall allow members of the public to provide comment on an application considered by the committee at a meeting.

D. The water conservation grant committee is considered a subcommittee of the board for the purposes of section 49-1206. END_STATUTE

Sec. 30. Transitioning duties; state land commissioner

The state land commissioner's oversight and responsibilities to the natural resource conservation districts expire on the effective date of this act. The state natural resource conservation board, on appointment by the governor, and the state land commissioner shall meet before the effective date of this act to initiate the transitioning of duties from the state land commissioner to the state natural resource conservation board. The state natural resource conservation board shall initiate the recruitment of staff, determine where the staff will be housed, decide on an annual budget and conduct any other business required to effectuate the transition of duties from the state land commissioner to the state natural resource conservation board.

Sec. 31. Purpose

Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the state natural resource conservation board to provide assistance to the supervisors of the natural resource conservation districts.

Sec. 32. Appropriations; state natural resource conservation board; natural resource conservation district fund; exemption

A. The sum of $150,000 and 2 FTE positions are appropriated from the state general fund in fiscal year 2024-2025 to the state natural resource conservation board established by section 41-6011, Arizona Revised Statutes, as transferred, renumbered and amended by this act.

B. The sum of $1,000,000 is appropriated from the state general fund in fiscal year 2025-2026 to the natural resource conservation district fund established by section 41-6014, Arizona Revised Statutes, as added by this act.

C. The appropriations made in subsections A and B of this section are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.