Assigned to FED FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1068
federal government; land acquisition; consent
Purpose
Requires, for consent to be given to any acquisition, sale, gift or grant or transfer of an
ownership interest in privately owned real property in Arizona to the Federal Government, the
Governor to sign a joint resolution adopted by an affirmative vote of a majority of the members of
the Legislature. Prescribes reporting requirements for the sale or transfer of privately owned real
property in Arizona to the Federal Government and establishes a right of first refusal.
Background
The consent of the state 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. 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 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.
4. Requires an escrow agent, upon the opening of escrow for the sale or transfer of title interest
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 or transfer 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 or transfer. FACT SHEET
S.B. 1068
Page 2
5. Requires the private real property owner, for a private sale or transfer 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 or transfer 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 or transfer.
6. Requires the Speaker of the House and President of the Senate, upon receipt of the request for
approval, to appoint a joint legislative committee to consider the request.
7. Requires the Legislature, if the joint legislative committee approves the request, to prepare a
joint resolution for the Legislature to approve the sale or transfer.
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 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. Allows the Legislature, upon notification from a state agency or officer or employee of a state
agency, to, 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 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 and if possible, the purchase to conclude within the same time period in which the
original transaction would have concluded.
14. Specifies that requirements relating to the purchase of property by the Federal Government or
a federal agency and the right of first refusal do not apply to a trustee's deed or mortgage that
is insured or held by the:
a) U.S. Department of Housing and Urban Development;
b) U.S. Department of Veterans Affairs; or
c) Federal Housing Administration.
15. Contains a statement of legislative findings.
16. Defines escrow and escrow agent. FACT SHEET
S.B. 1068
Page 3
17. Designates this legislation as the Tax Base Protection Act.
18. Makes technical and conforming changes.
19. Becomes effective on the general effective date.
Prepared by Senate Research
January 23, 2025
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