Assigned to NREW FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2377
federal lands; state management costs
Purpose
Requires the Office of the Auditor General (OAG) and Joint Legislative Budget Committee
(JLBC) to conduct and complete a cost and revenue study of the annual cost to manage all federal
land in Arizona that is not under the control of the U.S. Department of Defense (DOD), U.S.
Bureau of Indian Affairs (BIA) or the U.S. Bureau of Reclamation (USBR) and all current
revenues generated by federal land not under control of the DOD, the BIA or the USBR. Outlines
required procedures and reporting requirements.
Background
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).
Duties of the OAG include: 1) conducting financial and compliance audits of financial
transactions and accounts kept by or for all state agencies subject to the federal single audit
requirements, to be conducted in accordance with generally accepted governmental auditing
standards; 2) performing procedural reviews for all state agencies at times determined by the OAG;
and 3) performing special research requests, special audits and related assignments as designated
by the committee and conducting performance audits, special audits, special research requests and
investigations of any state agency (A.R.S. § 41-1279.03).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires the OAG and JLBC to conduct and complete a cost and revenue study of the annual
cost to manage all federal land in Arizona that is not under the control of the DOD, the BIA or
the USBR and all current revenues generated by federal land not under control of the DOD,
the BIA or the USBR.
2. Requires the OAG and JLBC to assume, for the purpose of the study, that control and
management of all federal land, except land under the control of the DOD, the BIA or the
USBR and all land not under control of the DOD, the BIA or the USBR are given to Arizona
at no cost to the state.
3. Requires the following agencies, on request by the OAG or JLBC to cooperate with and
provide all necessary information to the OAG and JLBC:
a) the Arizona Game and Fish Department; FACT SHEET
H.B. 2377
Page 2
b) the Arizona State Parks Board;
c) the Arizona Department of Administration;
d) the Arizona Department of Environmental Quality;
e) the Arizona Department of Water Resources;
f) the Arizona State Forester;
g) the Arizona State Land Department; and
h) any other state agency or political subdivision that the OAG and JLBC deem to have
relevant information regarding the cost and revenue study.
4. Requires the OAG and JLBC to submit the cost and revenue study to the Governor, the
President of the Senate and the Speaker of the House of Representatives and provide a copy of
the study to the Secretary of State within one year after the general effective date.
5. Allows the OAG and JLBC to:
a) coordinate with any federal agency, department or bureau that controls or manages federal
land that is subject to the cost and revenue study;
b) coordinate with any federal agency, department or bureau that controls, collects or receives
revenue from federal land that is subject to the cost and revenue study;
c) coordinate with any state agency or political subdivision of Arizona that would likely
inherit management or revenue collection duties of lands that are subject to the cost and
revenue study; and
d) use any relevant cost or revenue information included in a report or budgetary projection
prepared by a federal agency, department or bureau that is relevant to the evaluation of
federal land that is subject to the cost and revenue study.
6. Repeals the cost and revenue study on December 31, 2025.
7. Becomes effective on the general effective date.
House Action
LARA 2/12/24 DPA 5-4-0-0
3
rd
Read 2/28/24 31-28-0-0-1
Prepared by Senate Research
March 18, 2024
RA/SDR/slp