HCR 2046

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
2. The Secretary of State
shall submit this proposition to the voters at the next general election as provided
by article XXI, Constitution of Arizona.