ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
FEDERALISM COMMITTEE
DATE: February 13, 2025
SUBJECT: Strike everything amendment to S.B. 1278, relating to department of natural
resources
Purpose
Establishes the Department of Natural Resources (Department) to oversee the acquisition
and management of all state lands as outlined. Establishes the Commission on Natural Resources
(Commission), administered by the Department, to administer the laws of the state relating to
natural resources.
Background
The Arizona State Land Department (ASLD) oversees approximately 9.2 million acres of
state trust land, including the natural products derived from the land. The purpose of the ASLD is
to manage the trust land and maximize revenues for its 13 beneficiaries, the largest of which is
K-12 schools. State land is any land owned or held in trust, or otherwise, by the state (A.R.S. Title
37, Chapter 1, Article 1).
Arizona's Natural Resource Conservation District (NRCD) Program oversees funding and
technical assistance for conservation districts in Arizona. The state recognizes the special expertise
of each NRCD in the fields of land, soil, water and natural resources management. Statute outlines
the powers of an NRCD, including studying and implementing demonstration projects and
programming for farm and range practices, including soil character, erosion prevention, cultivation
methods, eradication of noxious growths, seeding and cropping, land leveling and improvement
and watershed improvement (A.R.S. Title 41, Chapter 58, Article 2).
There is no anticipated fiscal impact to the state General Fund (state GF) associated with
this legislation.
Provisions
Department of Natural Resources
1. Establishes the Department to oversee the acquisition and management of all state lands.
2. Allows the Department to hold or convey state lands and open state lands for recreation,
agriculture, resource extraction or for other purposes as determined by the Department.
3. Grants the Department the right of first refusal to purchase private real property that the Federal
Government is contracting to acquire through a sale, gift, grant or any other transfer of ownership
interest.
ANNA NGUYEN
LEGISLATIVE RESEARCH ANALYST
FEDERALISM COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO
S.B. 1278
Page 2
4. Requires any private real property owner that has real property under contract with the Federal
Government or receives a proposed contract to forward the contract to the Department.
5. Stipulates that, if the Department chooses not to exercise the right of first refusal, then the right
is permanently extinguished for the private real property.
6. Stipulates that, if the right of first refusal is extinguished, then the property owner is exempt
from the notification requirement to the Department.
7. Allows the Director of the Department to issue, deny or modify any permit or permitting
decision made by an agency of the state regarding the extraction of natural resources.
8. Defines state lands, for the purposes of the Department, as all lands that are owned by the state
that are not state trust lands and that are acquired after the general effective date, except for
lands acquired by a university under the Arizona Board of Regents and the Arizona Department
of Transportation.
9. Specifies that state lands, for the purposes of the ASLD, does not include lands that are not
held in trust and that are acquired after the general effective date.
Commission on Natural Resources
10. Establishes the Commission, administered by the Department, to administer the laws of the
state relating to natural resources and vests the control of the Department in the Commission.
11. Requires the Commission to appoint a Director of the Commission to assist in fulfilling the
outlined statutory purposes.
12. Requires the Commission's principal office to be at the Arizona State Capitol and allows
Commission meetings to be held at any time or place within Arizona.
13. Requires the Commission to meet at least once quarterly and allows meetings to be held at the
call of the Chairperson or by majority of the Commission.
14. Specifies that a majority of the Commission constitutes a quorum to transact business.
15. Requires the Commission to consist of five members who are appointed to five-year terms that
expire on the third Monday in January of the appropriate year.
16. Requires the Commission membership to consist of:
a) two members who are appointed by the Governor from a list of six names provided by the
President of the Senate;
b) two members who are appointed by the Governor from a list of six names provided by the
Speaker of the House of Representatives; and
c) one member who is appointed by the Governor. STRIKER MEMO
S.B. 1278
Page 3
17. Grants each member of the Commission compensation up to $30 per day while performing
official duties for the Commission or attending general or specific meetings of the
Commission.
18. Prohibits a Commission member who is employed as a public officer from receiving
compensation if it is prohibited by statute.
19. Allows the Governor, after a public hearing, to remove a member for inefficiency, neglect of
duty or misconduct in office.
20. Requires the Governor, upon removal of a member, to file with the Secretary of State, a
complete statement of all charges made against the member and the findings on the charges,
together with a complete record of the proceedings.
21. Requires Commission compensation and expenses to be paid from the state GF.
Miscellaneous
22. Defines terms.
23. Makes technical changes.
24. Becomes effective on the general effective date.