ARIZONA STATE SENATE
REVISED
Purpose:
Stipulates that, upon request by the applicant for the purchase of state trust land, an appraisal report prepared for the proposed sale of state trust land exceeding $250,000 in value shall be reviewed according to Standard Three of the Uniform Standards of Professional Appraisal Practice (USPAP).
Background:
The State Land Department (Department), established in 1915, has authority over all state trust lands. The mission of the Department is to manage the trust lands and maximize the revenues for the beneficiaries. As the head of the Department, the State Land Commissioner is charged with, among other duties, classifying and appraising state lands for the purpose of sale, lease or grant of right-of-way.
H.B. 2523 stipulates that, if requested by the applicant for the purchase of state trust land, an appraisal report for the proposed sale of state trust land exceeding $250,000 in value shall be reviewed according to Standard Three of the USPAP. The USPAP are promulgated by the Appraisal Foundation, a non-profit organization established by the appraisal profession, and are the generally accepted standards used to appraise real estate, personal property and businesses. Standard Three of the USPAP sets out guidelines for an appraiser to follow when reviewing another’s appraisal.
There is an undetermined impact to the state general fund associated with this bill.
Provisions:
1. Stipulates that, upon request by the applicant for the purchase of state trust land an appraisal report prepared for the proposed sale of state trust land exceeding $250,000 in value shall be reviewed according to Standard Three of the Uniform Standards of Professional Appraisal Practice.
2. Requires that the appraisal review be performed by a certified appraiser selected from a list provided by the Department of Administration.
3. Allows the applicant to select the appraiser. If the applicant chooses not to select the appraiser, the Department may select the appraiser.
4. Requires the applicant requesting the appraisal review to pay the Department for the cost of the review.
5. Makes technical changes.
6. Provides for a general effective date.
Amendments
Adopted by the NRAE Committee
1. Eliminates the appropriation of $150,000 from the state general fund to the Department for appraisal costs.
2. Eliminates the requirement that the appropriation be used to hire a full-time employee to meet the appraisal requirements.
3. Requires that the appraisal review be performed by a certified appraiser selected by the Department from a list provided by the Department of Administration.
4. Requires the applicant requesting the appraisal review to pay the Department for the cost of the review.
Amendments
Adopted by Committee of the Whole
1. Allows the applicant to select the appraiser. If the applicant chooses not to select the appraiser, the Department may select the appraiser.
House Action Senate Action
PIRA 2/12/01 W/D NRAE 4/5/01 DPA 8-0
CM 2/27/01 DPA 9-1-0-0 APPROP 4/17/01 W/D
NRA 3/7/01 DPA/SE 5-4-0-1 3rd Read 4/27/01 29-0-1
3rd Read 3/21/01 40-16-4
Prepared by Senate Staff
April 30, 2001