HB2572 - 562R

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

Section 1. Section 37-213, Arizona Revised Statutes, is amended to read:

START_STATUTE37-213. Board of appeals

A. There is established a The board of appeals is established consisting of five seven members. members appointed by the governor shall be appointed pursuant to section 38-211. No not more than three four members shall be appointed from the same political party. Members shall be appointed as follows:

1. One member from each of three five districts into which the state is divided as follows:

(a) First district: maricopa, Pima, Santa Cruz, Cochise, Graham and Greenlee pinal and gila counties.

(b) Second district: Maricopa, Yuma, La Paz, Pinal and Gila counties county.

(d) fourth DISTRICT: YAVAPAI and coconino counties.

(e) fifth DISTRICT: Graham, GREENLEE, Cochise, Santa CRUZ, Navajo and Apache counties.

2. The president of the senate and the speaker of the house of representatives shall jointly appoint the MEMBERS from DISTRICTs two, three, four and five. the governor shall appoint the member from DISTRICT one. The remaining two members of the board of appeals shall be appointed at large by the governor.

B. To be eligible for appointment as a member of the board, a person shall be experienced in the sale, lease, classification and or appraisal of one or more of the following:

1. All types of real estate.

2. Subsurface estates.

3. Grazing leases.

4. Agricultural leases.

5. Commercial leases.

6. Water and water rights.

7. Rights-of-way and easements.

8. Natural products of the land.

C. The board members shall represent the following groups or interests, and a member may not serve as the representative for more than one interest or group:

1. The natural resources industry, including timber, mining, oil or natural gas.

2. The agriculture industry, including farming or ranching.

3. The commercial development industry, including housing, the commercial office development industry or the transportation industry.

4. The energy industry, including electric energy generation or transmission.

5. The land or wildlife conservation industry, including members of a water, soil or wildlife conservation organization or a group that promotes hunting and angling.

C. D. The term of office of each member is six four years, ending on the third Monday in January of the sixth fourth year after his the member's appointment. Appointments to fill vacancies resulting other than from expiration of term shall be are for the unexpired portion of the term only.

D. E. Each member of the board is eligible to receive compensation as determined pursuant to section 38-611.

F. Members of the board may not participate in any matter in which the member has a direct financial interest. For the purposes of this subsection, "direct financial interest" includes being an employee of, or holding stocks or bonds in, except through a mutual or exchange funds, an entity that has a proposed sale, lease or reimbursable improvement pending before the board.

E. G. The board may adopt administrative rules necessary to perform its duties prescribed by law. END_STATUTE

Sec. 2. Title 37, chapter 2, Arizona Revised Statutes, is amended by adding article 2.2, to read:

ARTICLE 2.2. STATE LAND OVERSIGHT BOARD

START_STATUTE37-225. State land oversight board; membership; appeals

A. The state land oversight board is established. The members of the board shall be the same members of the board of appeals established by section 37-213. The state land department shall maintain all records of the oversight board.

B. Oversight board meeting shall be open to the public. The oversight board may meet at any time or place expedient to the performance of its duties. The members of the oversight board shall select a chairperson and vice chairperson from the membership of the oversight board.

C. The chairperson shall:

1. Schedule the time, date and location of meetings of the oversight board.

2. Set the agenda for any oversight board meetings.

3. Issue written decisions of the oversight board pursuant to sections 37-226 and 37-227.

D. The vice chairperson shall fulfill all duties of the chairperson if a vacancy occurs for the position of chairperson.

E. A member of the oversight board may not participate in any matter in which the member has a direct financial interest. For the purposes of this subsection, "direct financial interest" includes being an employee of, or holding stocks or bonds in, except through a mutual or exchange funds, an entity that has a proposed sale, lease or reimbursable improvement pending before the oversight board.

F. Any person, including the commissioner, the attorney general or any person who is adversely affected by a final decision of the oversight board, may:

1. Have a hearing pursuant to title 41, chapter 6, article 10.

2. Seek judicial relief pursuant to title 12, chapter 7, article 6.

G. Any decision that has exhausted its appeal or in which an appeal is not pursued with the allotted time frame shall be declared a final decision. END_STATUTE

START_STATUTE37-226. State land oversight board; power and duties; approval of sales and leases; rules

A. The state land oversight board shall review and make a determination to approve the sale or lease of state land or natural product that involves any of the following:

1. The sale or lease of state land that involves more than one thousand acres or is valued at greater than $500,000.

2. The sale or lease of natural product that includes more than one million acre-feet of water or includes more than $10,000,000 of net present value.

B. A sale or lease that requires a determination of the oversight board may not be executed until approved by the majority of the oversight board present at an official meeting and either:

1. The vote of the member of the oversight board whose district as prescribed in section 37-213 includes the county where the sale or lease is to take place.

2. The affirmative vote of a majority of members representing the districts as prescribed in section 37-213 and the two members at large.

C. If the commissioner conducts an auction that meets the criteria prescribed in subsection a of this section, the commissioner shall forward all auction material and all bids received to the oversight board within five days after the close of the auction. The oversight board shall make a determination within one hundred twenty days after receiving the auction material from the commissioner.

D. During the review of a sale or lease, the oversight board may consider compliance with section 28 of the enabling act and article x, sections 1 and 8, Constitution of Arizona.

E. On approval of the oversight board, the commissioner shall execute and issue the proposed sale or lease.

F. If the proposed transaction is not approved pursuant to this section, the chairperson shall notify the commissioner as to the reason for denial and provide a written explanation of the denial. The oversight board may deny a transaction based only on noncompliance with subsection D of this section. On receipt of the denial, the commissioner shall notify the applicant and shall propose or recommend an alternative sale or lease for the oversight board's review and approval if the department received multiple bids for the transaction. If the department received only one bid that was denied by the oversight board, the department shall hold a new auction pursuant to this chapter.

G. If a new auction is held, the previous applicant may place a new bid. If the previous applicant is again the only applicant, the oversight board shall approve the transaction.

H. The oversight board may adopt rules to implement and perform its duties pursuant to this article. END_STATUTE

START_STATUTE37-227. State land oversight board; approval of improvements

A. The state land oversight board shall review and make a determination to approve an improvement subject to reimbursement greater than $1,000,000 or any series of improvements for one applicant that exceeds $5,000,000.

B. An improvement that requires a determination of the oversight board may not be executed until approved by the majority of the oversight board present at an official meeting and either:

1. The vote of the member of the board whose district as prescribed by section 37-213 includes the county where the sale or lease is to take place.

2. The affirmative vote of a majority of members representing the districts as prescribed in section 37-213 and the two members at large.

C. If the commissioner receives an application that meets the criteria prescribed in subsection A of this section, the commissioner shall forward all material received to the oversight board within five days. The oversight board shall make a determination within one hundred twenty days after receiving the material from the commissioner.

D. During the review of the determination of approval of improvements, the oversight board may consider compliance with section 28 of the enabling act and article x, sections 1 and 8, constitution of arizona.

E. If the proposed improvement is not approved pursuant to this section, the chairperson shall notify the commissioner as to the reason for denial and provide a written explanation of the denial. The board may deny a transaction based only on noncompliance with subsection D of this section. On receipt of the denial, the commissioner shall notify the applicant and prohibit the applicant from making the requested improvement. END_STATUTE

START_STATUTE37-228. State land oversight board; public meetings; public communication

A. All meetings of the state land oversight board are public meetings.

B. The chairperson shall allow members of the public to provide comments at a duly noticed public meeting.

C. The chairperson shall limit the amount of time any member of the public may provide comments to the oversight board. The chairperson shall enforce the limit equally for all members of the public.

D. Comments provided pursuant to this section shall be narrowly tailored to items noticed on the agenda and must pertain to the considerations the oversight board may consider pursuant to this article. Any person who provides comment must state the following in the person's public testimony:

1. The person's name and county in which the person resides.

2. The person's opinion if the oversight board should approve or deny the transaction.

3. Any interest the person has in the transaction.

4. The person's opinion if the transaction should be approved or denied and the impact of the determination to the trust beneficiaries.

5. If the person's opinion is denial, the person's preferred alternative that has an equal or greater benefit to the trust beneficiaries.

E. The commissioner and any person with a direct financial interest in a matter that requires a determination of the oversight board may not make any oral or written comment to a board member regarding the transaction that requires approval outside of a public meeting of the oversight board until a final determination is made. A board member may not solicit comments from a prohibited person. A person that makes a prohibited communication shall explain at a public meeting why the matter should be dismissed, denied or adversely affected as a sanction for the communication. For the purposes of this subsection, "direct financial interest" includes being an employee of, or holding stocks or bonds in, except through a mutual or exchange funds, an entity that has a proposed sale, lease or reimbursable improvement pending before the oversight board.

F. If an oversight board member receives communication from a prohibited person, the oversight board member shall advise the person that those communications will not be considered and shall issue a public statement at a public meeting containing the following information:

1. The name of the person who made the comments and any organization the person represents in the transaction.

2. The substance of the comments made to the board member.

G. In addition to the time the chairperson allots to a person for public comment, the chairperson shall allow a person affected by a communication made in a prohibited manner pursuant to subsection e of this section, a chance to rebut any of the facts or contentions made in the prohibited communication. END_STATUTE

Sec. 3. Retention of members

Notwithstanding section 37-213, Arizona Revised Statutes, as amended by this act, all persons serving as members of board of appeals on the effective date of this act may continue to serve until the expiration of their normal terms. All subsequent appointments shall be prescribed by statute.