Assigned to NREW FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1238
state lands; appraisals; leases; rights-of-way
Purpose
Alters appraisal, approval and payment requirements for the sale and lease of state land.
Background
The Arizona State Land Department (ASLD): 1) administers the laws relating to lands
owned by, belonging to and under control of the State of Arizona; and 2) has charge and control
of all lands owned by the State of Arizona, except lands under the specific use and control of state
institutions (A.R.S. § 37-102). Statute requires the State Land Commissioner (Commissioner) to
classify and appraise state lands for sale, lease or grant of rights-of-way. The ASLD Board of
Appeals (Board) must approve any state land before the Commissioner leases the land for
commercial purposes (A.R.S. 37-132).
Statute requires 10 percent to 25 percent of the appraised land value stated in an auction
notice to be paid by cashier's check or another form of payment approved by the Commissioner
on announcement of the successful bidder. If the bid amount for the land exceeds the appraised
value, further payment must be made within 30 days so that the total amount paid equals the
percentage of the bid stated in the auction notice together with required fees. The percentage must
apply to the principal. The payment must also be allocated to the principal (A.R.S. § 37-241).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Increases, from 180 to 240, the days that may pass between Board approval of the lease,
exchange or sale of property and the auction of the property without requiring the reappraisal
or update of ASLD's original appraisal.
2. Allows the Commissioner to lease state land for commercial purposes without Board approval
if the lease lasts for 10 years or less.
3. Requires the mandatory payment of 10 percent to 25 percent of the appraised value of
auctioned state land to apply to the principal and associated rights-of-way, rather than only the
principal.
4. Requires, if the bid amount for auctioned land exceeds the appraised value, mandatory further
payment to be allocated to associated rights-of-way, in addition to the principal.
FACT SHEET
S.B. 1238
Page 2
5. Makes technical changes.
6. Becomes effective on the general effective date.
Prepared by Senate Research
January 31, 2022
RC/MAH/slp