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ARIZONA STATE SENATE
RESEARCH STAFF
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ADAM VANBUSKIRK LEGISLATIVE INTERN KERRI MOREY LEGISLATIVE
RESEARCH ANALYST NATURAL RESOURCES, AGRICULTURE & ENVIRONMENT
COMMITTEE Telephone: (602) 542-3171 Facsimile: (602) 542-7833 |
FINANCE COMMITTEE
DATE: March 12, 2002
SUBJECT: Strike Everything
Amendment to S.C.R. 1002
Purpose
Allows state trust land to be exchanged for land in high noise and accident potential zones surrounding military airports. This strike everything amendment is subject to voter approval at the next general election.
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) 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 state trust lands.
In 1936, the Enabling Act was amended to authorize the State to make land exchanges. However, the Arizona Constitution was not amended to conform with this authority. In 1990, the Arizona Supreme Court ruled 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.
In recent years, development has encroached on military airports in Arizona, raising the possibility of homeowner lawsuits against military airports. S.C.R. 1002 allows the State to exchange trust lands for lands in high noise and danger zones near military airports to preserve open space.
There is no known fiscal impact to the state general fund relating to the provisions of this strike everything amendment.
Provisions
Conditions for Exchange
1. Allows the Department to exchange state land for land in a high noise or accident zone if the following conditions are met:
a) The exchange is in the best interest of the trust.
b) The purpose of the exchange is to preserve open space surrounding the military airport.
c) At least two independent appraisals show that the true value of the land received in trade is at least as high as the value of the land exchanged by the State.
d) An analysis shows that the projected income to the trust after the exchange at least equals the trust’s income before the exchange.
e) An analysis shows the fiscal impact of the exchange on each municipality and school district in which the lands involved in the trade are located.
f) An analysis shows the physical, economic and natural resource impacts of the proposed exchange on the local community, and the impact on local land uses.
2. Stipulates that land must not be exchanged unless:
a) Public notice is provided at least six weeks before the proposed exchange, and a public hearing and comment process is provided for.
b) Public hearings are held at the State Capitol and in the vicinity of the state land being exchanged.
c) The land received by the State is dedicated to the same trust purposes as the land transferred from the State.
Miscellaneous
3. Defines military airport and high noise or accident potential zone.
4. Clarifies that land exchanges are not considered to be sales. Stipulates that the Department may only acquire land until all land in high noise and accident potential areas on January 1, 2001 has been exchanged for state land.
5. Requires the Legislature to provide for the official determination of lands eligible for exchange and the completion of all eligible exchanges.
6. Requires the Secretary of State to submit this proposition to the voters in the next general election.
AV/KM/ac