Assigned to NREW AS VETOED
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
VETOED
FACT SHEET FOR H.B. 2376
federal government; land acquisition; consent
Purpose
Requires, for consent to be given to any transfer of an ownership interest in privately owned
real property in Arizona to the Federal Government or a federal agency, the Governor to sign a
joint resolution adopted by an affirmative vote of a majority of the members of the Legislature.
Outlines reporting requirements for the sale of privately owned real property in Arizona to the
Federal Government or a federal agency and establishes a right of first refusal.
Background
The consent of Arizona may be given to the acquisition of any other privately owned real
property within Arizona by the United States only upon the Governor's signing of a joint resolution
adopted by the Legislature to that effect. The joint resolution must recite the legal description of the
land and the purposes to which the state consents that the property may be used (A.R.S. § 37-620.02)
The Federal Government may, by cession of particular states and the acceptance of
Congress, exercise powers over places purchased by the consent of the legislature of the state in
which the land is purchased for the erection of forts, magazines, arsenals, dock-yards and other
needful buildings (U.S. Const. art. 1 § 8, cl. 17).
If the state exercises the right of first refusal to purchase privately owned real property,
there may be a fiscal impact to the state General Fund.
Provisions
1. Prohibits the consent of the state from being given to the acquisition, sale, gift or grant or any
other transfer of an ownership interest in a privately owned real property within the state that
is not in the possession of any federal agency as of the general effective date by the United
States that would remove the real property from state, county and municipal property tax rolls,
unless given express and affirmative consent by the Legislature and the Governor.
2. Requires, for consent to be given, the Governor to sign a joint resolution adopted by an
affirmative vote of a majority of the members of the Legislature.
3. Specifies that the requirements for consent do not:
a) limit the rights of any Indian tribe with respect to the tribe's Indian lands, reservations and
lands acquired as a settlement of land claim; or
b) affect any congressionally approved land exchange.
FACT SHEET – Vetoed
H.B. 2376
Page 2
4. Requires an escrow agent, on the opening of escrow for the sale of private real property to the
Federal Government or a federal agency, to:
a) notify the Speaker of the House of Representatives (House) and the President of the Senate
that a contract for the sale of private real property to the Federal Government or a federal
agency has been placed in escrow; and
b) submit a request in writing to the Speaker of the House and the President of the Senate for
approval of the sale.
5. Requires the private real property owner, for a private sale of private real property to the
Federal Government or a federal agency that is not processed through escrow, to:
a) notify the Speaker of the House and the President of the Senate of the sale of real private
property to the Federal Government or a federal agency; and
b) submit a request in writing to the Speaker of the House and President of the Senate for
approval of the sale.
6. Requires the President of the Senate and Speaker of the House, on receipt of the request for
approval, to appoint a joint legislative committee to consider the request for approval.
7. Requires the Legislature, if the joint legislative committee approves the request, to prepare a
joint resolution for the Legislature to approve the sale.
8. Requires the state, if the joint legislative committee does not approve the request, to exercise
the right of first refusal to purchase the private real property.
9. Requires any state agency or any officer or employee of a state agency that is notified or learns
of a notice from the U.S. Department of the Interior regarding an effort to place private real
property located in Arizona in trust as part of an Indian tribe's settlement of a land claim to
immediately notify the Speaker of the House and the President of the Senate.
10. Requires the Legislature, on such notification from a state agency or officer or employee of a
state agency, to do any of the following, as applicable:
a) provide comment;
b) file an administrative appeal; or
c) file an action in the appropriate court.
11. Subjects a person who violates requirements regarding reporting to the Legislature to a civil
penalty between $500 and $1,000.
12. Declares that, notwithstanding any other law, except for land acquired through a
congressionally approved land exchange, the state has the right of first refusal to purchase
private real property that the Federal Government is contracting to acquire through a sale, gift
or grant or any other transfer of an ownership interest.
13. Requires a purchase of private real property through the right of first refusal to occur in a timely
manner.
14. Requires the purchase process to be concluded within the same time period in which the
original transaction would have concluded, if possible. FACT SHEET – Vetoed
H.B. 2376
Page 3
15. Specifies that requirements related to the purchase of property by the Federal Government or
a federal agency and the right of first refusal do not apply to:
a) a trustee's deed or mortgage that is insured or held by:
i. the U.S. Department of Housing and Urban Development;
ii. the U.S. Department of Veterans Affairs; or
iii. the Federal Housing Administration; or
b) any congressionally approved land exchange.
16. Contains a statement of legislative findings.
17. Defines escrow and escrow agent.
18. Makes technical and conforming changes.
19. Becomes effective on the general effective date.
Governor's Veto Message
The Governor indicates in her veto message that H.B. 2376 would set an unprecedented
standard of allowing the state to dictate the sale of private property, and could undermine
conservation efforts and the ability to preserve historic places and archaeological sites. The
Governor expresses her concern about exposing Arizona taxpayers to the legal defense of a bill
that stands on questionable constitutional ground.
House Action Senate Action
LARA 2/12/24 DP 5-4-0-0 NREW 3/21/24 DP 3-2-2
3
rd
Read 2/28/24 31-28-0-0-1 3
rd
Read 6/12/24 16-10-4
Vetoed by the Governor 6/21/24
Prepared by Senate Research
June 27, 2024
RA/SDR/slp