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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
state land auctions; electronic means
Purpose
Allows the Arizona State Land Department (ASLD) to accept bids offered through electronic means during a public auction.
Background
ASLD is the trustee of Arizona's trust land and administers the state trust land and its resources. Statute prescribes a process and requirements for the sale of state trust land at auction. A person adversely affected by a decision to terminate a sale based on information received by the State Land Commissioner (Commissioner) which indicates a change in the circumstances regarding the benefits of the trust, may appeal the decision to the ASLD Board of Appeals. The appeal must be taken by giving notice in writing to the Commissioner within 30 days from the date notice of the decision is mailed to the last known post office address of the appellant by the Commissioner (A.R.S. §§ 37-215, 37-236 and 37-238).
Notice of sales of state lands must be made by advertisement for at least 10 successive weeks in a newspaper of general circulation published regularly at the State Capitol and in a newspaper of like circulation regularly published nearest the location of the lands to be sold. The notice must include the time, place and terms of the sale and a full description of the land (A.R.S. § 37-237).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows ASLD to accept bids offered through electronic means during a public auction.
2. Stipulates that, if ASLD accepts bids offered through electronic means, ASLD is not liable for the failure of the person's electronic means or the failure of ASLD's electronic means caused by an act of God or nature, a superior or overpowering force or an event or effect that cannot be reasonably anticipated or controlled during or directly preceding the public auction that prevents a person from participating in the public auction.
3. Prohibits a person adversely affected by a decision to terminate a sale from appealing the decision to the ASLD Board of Appeals on the basis of an electronic means failure for which ASLD is not responsible.
4. Requires, if ASLD accepts bids on land through electronic means, ASLD to include in the public notice of sale a link or other instructions to access the electronic means through which a person can offer bids during the auction.
5. Allows ASLD to adopt rules to prescribe the procedure, method and means for the sale of state lands.
6. Requires ASLD to include, in the adopted rules:
a) the sale of state lands through electronic means;
b) a requirement that any location where state lands are auctioned must include internet access;
c) a method for persons to prove that the person has sufficient monies to bid for a parcel before a public auction; and
d) reasonable qualifications and procedures to ensure that a person is legally eligible to bid.
7. Requires ASLD to post a written report of the sale on its website.
8. Allows ASLD to conduct online auctions for the sale of state lands only after ASLD adopts outlined rules.
9. Makes technical and conforming changes.
10. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Specifies that ASLD is not liable for the failure of electronic means if the failure is either of the person's electronic means or ASLD's electronic means if the failure is caused by an act of God or nature, a superior or overpowering force or an event or effect that cannot be reasonably anticipated or controlled during or directly preceding the public auction.
2. Prohibits a person adversely affected by a decision to terminate a sale from appealing the decision to the ASLD Board of Appeals on the basis of an electronic means failure for which ASLD is not responsible.
3. Allows ASLD to adopt rules to prescribe the procedure, method and means for the sale of state lands.
4. Requires ASLD to include, in the adopted rules:
a) the sale of state lands through electronic means;
b) a requirement that any location where state lands are auctioned must include internet access;
c) a method for persons to prove that the person has sufficient monies to bid for a parcel before a public auction; and
d) reasonable qualifications and procedures to ensure that a person is legally eligible to bid.
5. Reinstates the requirement that ASLD fulfill prescribed attendance and procedural requirements to facilitate the bidding process.
6. Allows ASLD to conduct online auctions for the sale or lease of state lands or natural product only after ASLD adopts outlined rules.
Amendments Adopted by the House of Representatives
· Allows ASLD to conduct online auctions for the sale of state lands, rather than for the sale or lease of state lands or natural product, only after ASLD adopts outlined rules.
Senate Action House Action
NREW 2/15/24 DPA 5-1-1 LARA 3/12/24 DP 5-0-3-1
3rd Read 3/5/24 27-1-2 3rd
Read 5/15/24 31-26-3
Prepared by Senate Research
May 15, 2024
RA/SDR/slp