Arizona HCR 2046: state land trust; best interest.

Bill Text

HCR2046 - 572R - I Ver 

 REFERENCE TITLE: state land trust; best interest.

 State of Arizona

 House of Representatives

 Fifty-seventh Legislature

 Second Regular Session

 2026

 HCR 2046

 Introduced by 

 Representative 
 Way

A 
CONCURRENT RESOLUTION

Proposing an amendment to the 
constitution of Arizona; amending article X, Section 3, Constitution of 
Arizona; RELATING to state lands.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it resolved by the House of Representatives of the State of 
Arizona, the Senate concurring:

1. Article X, section 3, Constitution of Arizona, is 
proposed to be amended as follows if approved by the voters and on proclamation 
of the Governor:

CONST3. Mortgage or other encumbrance; sale or lease at public auction

Section 3. No to further the value of said lands, including 
through the improvement or development of water resources or transportation, 
utility or other infrastructure and the state land trust,� the legislature may 
by law allow the mortgage, PLEDGE or other 
encumbrance of the said lands or any interests therein, 
consistent with the fiduciary obligation owed to the trust beneficiaries, or any part thereof, shall be valid in favor of any person or for any 
purpose or under any circumstances whatsoever. Said lands shall not may be sold or leased, in whole 
or in part, except to the highest and best bidder at a public 
auction to be held at the county seat of the county wherein the lands to be 
affected, or the major portion thereof, shall lie, notice of which public 
auction shall first have been duly given by advertisement, which shall set 
forth the nature, time and place of the transaction to be had, with a full 
description of the lands to be offered, and be published once each week for not 
less than ten successive weeks in a newspaper of general circulation published 
regularly at the state capital, and in that newspaper of like circulation which 
shall then be regularly published nearest to the location of the lands so 
offered; nor shall any sale or contract for the sale of any timber or other 
natural product of such lands be made, save at the place, in the manner, and 
after the notice by publication provided for sales and leases of the lands 
themselves. In a manner consistent with the fiduciary 
duties through public auction or any other method authorized by law. For the 
sale, lease, encumbrance or other disposition of state trust lands, the 
commissioner shall act soley in the FINANCIAL best interest of the trust 
beneficiaries and shall exercise the care, skill, prudence and diligence of a 
prudent investor that is acting in a like capacity. The commissioner 
may consider the highest and best use of said lands in any bid or proposal for 
said lands, but no factor shall be determinative and no sale or lease is 
required to be sold to the highest monetary bidder. The commissioner 
may improve, develop, manage or enhance the value of the state trust lands 
through the improvement or development of water resources or transportation, 
utility or other infrastructure or other method as the legislature deems fit 
through law consistent with fiduciary and prudent investor standards, including 
the use of available monies or financing mechanisms, before the disposition of 
state lands that will REASONABLY increase the long-term FINANCIAL returns 
of the trust BENEFICIARIES. the legislature may by law establish 
programs or funds to implement the purposes of this section, including the use 
of trust assets, interests or earnings in a manner consistent with fiduciary 
and prudent investor standards. Nothing herein, or elsewhere 
in this article X contained, shall 
prevent any of the following:

1. The 
leasing of any of the lands referred to in this article in such manner as the 
legislature may prescribe, for grazing, agricultural, commercial and homesite 
purposes, for a term of ten years or less, without advertisement. 
; 

2. The 
leasing of any of said lands, in such manner as the legislature may prescribe, 
whether or not also leased for grazing and agricultural purposes, for mineral 
purposes, other than for the exploration, development, 
and production of oil, gas and other hydrocarbon substances, for a term of 
twenty years or less, without advertisement. , or,

3. The 
leasing of any of said lands, whether or not also leased for other purposes, 
for the exploration, development, and production of oil, gas and other 
hydrocarbon substances on, in or under said lands for an initial term of twenty 
(20) years or less and as long thereafter as oil, gas or 
other hydrocarbon substance may be procured therefrom in paying quantities, the 
leases to be made in any manner, with or without advertisement, bidding, or 
appraisement, and under such terms and provisions, as the legislature may 
prescribe, the terms and provisions to include a reservation of a royalty to the this state of not less than twelve and 
one-half per cent percent of 
production. CONST