ARIZONA STATE SENATE
Phoenix, Arizona
Purpose:
Requests voter approval
during the next general election of constitutional amendments to allow state
trust land to be exchanged for other lands and to allow state trust land to be
donated to school districts for new school sites.
Background:
The State Enabling Act was
passed in 1910 to prepare the Territory of Arizona for statehood. Under the Act, certain sections of each
township were assigned to be held by the state in a trust for the benefit of
schools and other public institutions. The Enabling Act also requires that
state trust lands are to be appraised at fair market value and cannot be
disposed of for less than that amount.
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.
In 1936, the Enabling Act
was amended to authorize the state to make land exchanges. However, the Constitution was not amended to
conform with this authority. In 1990,
the Arizona Supreme Court decided on the inconsistency between the Enabling Act
and the Constitution, ruling that the state had failed to amend the
Constitution to allow the exchange of state lands. Subsequently, the Department ceased the land exchange program.
In the past, the Legislature
has attempted to amend the Constitution to conform with the Enabling Act by
placing propositions on the general election ballot in 1990, 1992, 1994 and
2000. Each of these propositions was
progressively more restrictive with respect to the requirements for allowed
exchanges, but each failed in the general election.
S.C.R. 1004, if approved by
the voters, allows state trust land to be exchanged for other lands provided
that the exchange is in the best interest of the state land trust and preserves
open space, agricultural lands or military airport buffer zones in urbanized
areas. Similar provisions were contained in Proposition 100, which failed in
the 2000 general election. However, the purpose of Proposition 100 was to
exchange trust lands considered to be valuable for the conservation of open
space for other public lands.
The purpose of S.C.R. 1004 is to acquire lands for the purpose of
preserving open space, agricultural lands or military airport buffer zones in
urbanized areas in exchange for state trust land.
S.C.R. 1004 further allows
state trust land of which a public school is the beneficiary to be donated to a
school district for a new school site.
There was a similar provision in Proposition 100.
The fiscal impact to the state general fund
associated with this bill is unknown.
Provisions:
1. *Allows the state, after public notice, to exchange trust lands located in urban areas for other lands as the legislature may provide by law, subject to the following conditions:
(a)
The
exchange is in the best interest of the state land trust.
(b)
The
purpose of the exchange is to preserve open space, agricultural land or
military airport buffer zones in urbanized areas.
(c)
At
least two independent appraisals show that the true value of lands received in
the exchange equals or exceeds the true value of lands granted at the highest
and best use.
(d)
An
analysis of the proposed exchange shows:
1)
that
the projected income to the trust after the exchange equals or exceeds the
projected income before the exchange, and
2)
the
fiscal impact of the exchange on each county, city, town and school district in
which the exchanged lands are located.
2. Prohibits the exchange of trust lands unless:
(a)
Public
notice of the exchange is provided at least five weeks prior to the exchange,
including a legal and general description of the location of the lands, the
appraised value of the lands and the time and place of the public hearings.
(b)
Public
hearings are held at both the state capitol and at a location in the vicinity
of the lands being exchanged.
3. Stipulates that land exchanges are not considered sales of land.
4. Allows the Legislature to provide by law for the donation of state trust lands to a school district for use primarily as a site for K-12 instruction.
5. Requires the Legislature to provide for an administrative evaluation of the donation in a manner prescribed by law.
6. Requires that the reviewing agency consider all aspects of the proposed donation, including the economic impact to the permanent state school fund and to the state general fund, and hold at least one public hearing. Stipulates that the reviewing agency must receive and consider all written and oral comments.
7. Stipulates that the donation of state trust lands is discretionary and there is no presumption or expectation that any land must be donated to a school district. States that there is no right of action to compel the donation of any land to a school district.
8. Limits the use of state trust land donated to a school district to primarily K-12 instruction and requires that the title to the land include a covenant stipulating this restriction.
9. Reverts the state trust land donated to a school district to the state land trust if the school district conveys the title to the land or discontinues instruction at the site.
10. Requires the Secretary of State to submit this proposition to the voters at the next general election.
Prepared by Senate Staff
February 27, 2001
*Due to a drafting error in S.C.R. 1004 as introduced, the resolution allows state trust lands in urban areas to be exchanged for other lands. The intent of the resolution is actually the reverse of this – to allow public or private lands in urban areas to be exchanged for state trust lands located elsewhere. An amendment is necessary to correct this problem.