Purpose

Prohibits counties and municipalities from entering into agreements with federal agencies that limit, restrict or conflict with the use or management of wildlife, lands or resources owned or controlled by the state. Requires consultation with the appropriate state agency in order to determine whether resources are impacted in this manner and allows the affected state agencies to sign off on federal agreements that are determined to be in the State’s best interest based on state law. Modifies and updates several procedures of the State Land Department relating to fees, land sales and notice requirements.

Background:

The State Land Department (Department) was established in 1915 to manage state trust land and resources to enhance value and optimize economic return for the trust land beneficiaries. To achieve this goal, the Department is authorized to lease, grant right of way on and sell trust lands. During fiscal year 2001-2002, the Department held 37 land auctions resulting in $54.9 million in sales, while leases and right of way grants produced an additional $24.9 million.

According to the Department, many of its business practices are out of date and in need of statutory modification to conform to the Department’s current protocol. The strike-everything amendment to H.B. 2030 modifies and updates several procedures of the State Land Department relating to fees, land sales and notice requirements.

Further, concern has recently been expressed regarding the authority of counties and municipalities to affect state-owned or managed resources, specifically the role of counties and municipalities when entering into agreements with federal agencies that limit, restrict or conflict with statutes pertaining to the use, management and value of wildlife, lands and resources owned or controlled by the State. Of particular concern is the question of whether these agreements between counties or municipalities and federal agencies exceed the statutory authority of counties and municipalities and disregard the state’s responsibilities for the use and management of state resources, such as state lands and wildlife.

The strike-everything amendment to H.B. 2030 prohibits counties and municipalities from entering into such agreements without first consulting with the appropriate state agency. If the agreement is in the best interest of the state, the state agency is then required to consent to the agreement.

The impact to the state general fund associated with this bill is unknown due to the unknown amount of consultation activity generated by the bill.

Provisions:

County and Municipal Agreements with the Federal Government

1. Prohibits counties and municipalities from entering into agreements with federal agencies that limit, restrict or conflict with any statute, rule or order pertaining to the use, management or value of wildlife, lands or resources owned or controlled by the state unless the State determines that the agreement is in the best interest of the state.

2. Requires counties and municipalities, in order to determine whether an agreement limits, restricts or conflicts with any statute pertaining to the use, management or value of wildlife, lands or resources owned or controlled by the state, to consult with the appropriate state agency as follows:

· The State Land Commissioner if lands or resources under the jurisdiction of the Department are affected.

· The Director of the Arizona Game and Fish Department if the management of wildlife is affected.

· The Director of the appropriate state agency if the agreement affects any other land in which the state holds a real property interest.

3. Stipulates that a county or municipality demonstrates consultation by a written response from the agency to a request for review and comment on a proposed final agreement. The agency response must be dated no later than 45 days after the review, but the county or municipality may extend the review period for good cause.

4. Allows a state agency, if it finds that a county or municipality exceeded its authority under a proposed final agreement, to notify the county or municipality of its finding in its official comments. If the county or municipality ignores the agency’s finding, the state agency may seek a declaratory judgement or other appropriate judicial relief.

5. Requires the affected state agency, if it determines that the proposed final agreement is in the best interest of the state, to agree in writing to the provisions of the agreement.

6. Prohibits counties and municipalities from enacting any ordinance, rule or order or enter into any agreement that limits, restricts or conflicts with the statutory responsibilities of the Arizona Game and Fish Department.

7. Authorizes the State Land Commissioner to review and comment on or join agreements between counties or municipalities and federal agencies that limit, restrict or conflict with the use, management or value of lands or other resources owned or controlled by the State and under the Department’s jurisdiction.

8. Stipulates that no such agreement between counties or municipalities and federal agencies is effective and enforceable unless the county or municipality consults with the State Land Commissioner and the Commissioner determines the agreement is in the best interest of the state.

9. Stipulates that the restriction on counties and municipalities and the consultation requirement do not diminish the authority of state agencies to enforce existing laws or the authority of counties and municipalities to administer and enforce laws for which authority is expressly granted under state law.

10. Contains a statement of legislative intent.

State Land Department Business Practices

11. Allows the Commissioner to accept as payment of fees credit and charge cards, debit cards and electronic transfers.

12. Allows the selection board, at the request of the Commissioner, to approve or reject the inclusion of state land within proposed corporate limits.

13. Allows an applicant, at the discretion of the Commissioner, to advance or incur costs for evaluating and processing an application for a sale, lease, right-of-way or other use permit.

14. Stipulates that, if the successful bidder at an auction is not the applicant, the successful bidder must reimburse the applicant for cost associated with evaluating and processing the application.

15. Allows the Commissioner, if an auction does not occur or a transaction is not completed as a result of a mistake or circumstances caused by the Department, to reimburse the applicant for all or part of the costs associated with evaluating and processing the application. Requires reimbursements to only cover costs that represent an enhancement of knowledge about the parcel.

16. Allows a representative of the Department to use discretion in announcing relevant information, rather than reading the published notice, at the time of the sale of lands.

17. Allows the Department to establish the terms under which the time for delinquent payment of principal or interest may be extended. Stipulates that the extension begins on the date of the notice of forfeiture.

18. Reduces the amount of information required in notices of expiring grazing leases on state land.

19. Allows the Department to include in a lease of state trust lands rights and interests previously reserved to the state such as rights to mineral resources on the land, legal claims under the mineral land laws and the right to enter upon the land for exploration and extraction of commodities.

20. Adjusts notice requirements for private property owners within 300 feet of state trust land subject to classification as suitable for conservation to include only those property owners whose land consists of at least 40 acres.

21. Requires the notice of reclassification as trust lands suitable for conservation to include a request for written comments within 30 days of the notice and requires the Commissioner to consider the comments in adopting a plan to coordinate existing and conservation uses for the land.

22. Resolves statutory conflicts regarding the deposit of the prepayment of appraisal fees to the State Land Department.

Miscellaneous

23. Makes technical and conforming changes.

24. Provides for a general effective date.

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