Bill > HCR2046

This joint resolution proposes an amendment to the Arizona Constitution to allow the state land trust to further the value of state lands, including through improvements to water resources, transportation, utilities, or other infrastructure, by permitting mortgages, pledges, or other encumbrances on these lands, provided these actions are consistent with the fiduciary obligation owed to the trust beneficiaries. The resolution clarifies that the sale or lease of state trust lands can be conducted through public auction or other legally authorized methods, emphasizing that the Commissioner of State Lands must act solely in the financial best interest of the trust beneficiaries, exercising the care of a prudent investor. While the highest and best use of the lands can be considered, it does not mandate selling to the highest monetary bidder, and the Commissioner is empowered to improve, develop, manage, or enhance the value of these lands before disposition to reasonably increase long-term financial returns for beneficiaries, potentially using available funds or financing mechanisms. The legislature is also authorized to establish programs or funds to implement these purposes, including the use of trust assets or earnings in accordance with fiduciary and prudent investor standards. This amendment would replace the current strict requirement for sales and leases to be conducted only through public auction with a more flexible approach that prioritizes the financial well-being of the trust beneficiaries.

Agriculture and Natural Resources

https://apps.azleg.gov/BillStatus/BillOverview/85113