Assigned to FED AS PASSED BY COW ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session AMENDED FACT SHEET FOR S.B. 1278 technical correction; self-service storage; notice (NOW: 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 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. 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. FACT SHEET – Amended S.B. 1278 Page 2 4. 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. 5. 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 6. 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. 7. Requires the Commission to appoint a Director of the Commission to assist in fulfilling the outlined statutory purposes. 8. 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. 9. 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. 10. Specifies that a majority of the Commission constitutes a quorum to transact business. 11. 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. 12. Requires the Commission membership to consist of: a) three members who are appointed by the Governor; b) one member who is appointed by the President of the Senate; and c) one member who is appointed by the Speaker of the House of Representatives. Amendments Adopted by Committee • Adopted the strike-everything amendment. Amendments Adopted by Committee of the Whole 1. Removes the Department's right of first refusal. 2. Modifies the Commission membership. 3. Makes conforming changes. Senate Action FED 2/17/25 DPA/SE 4-2-1 Prepared by Senate Research March 6, 2025 AN/slp