Article 10, Arizona Constitution

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Article X of the Arizona Constitution is entitled State and School Lands. It has 12 sections.[1]

Section 1

Text of Section 1:

Acceptance and Holding of Lands by State in Trust

All lands expressly transferred and confirmed to the state by the provisions of the Enabling Act approved June 20, 1910, including all lands granted to the state and all lands heretofore granted to the Territory of Arizona, and all lands otherwise acquired by the state, shall be by the state accepted and held in trust to be disposed of in whole or in part, only in manner as in the said Enabling Act and in this Constitution provided, and for the several objects specified in the respective granting and confirmatory provisions. The natural products and money proceeds of any of said lands shall be subject to the same trusts as the lands producing the same.[1][2]

Section 2

Text of Section 2:

Unauthorized Disposition of Land or Proceeds as Breach of Trust

Disposition of any of said lands, or of any money or thing of value directly or indirectly derived therefrom, for any object other than that for which such particular lands (or the lands from which such money or thing of value shall have been derived) were granted or confirmed, or in any manner contrary to the provisions of the said Enabling Act, shall be deemed a breach of trust.[1][2]

Section 3

Text of Section 3:

Mortgage or Other Encumbrance; Sale or Lease at Public Auction

No mortgage or other encumbrance of the said lands, 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 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. Nothing herein, or elsewhere in article X contained, shall prevent:

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 state of not less than twelve and one-half per cent of production.[1][2]

Section 4

Text of Section 4:

Sale or Other Disposal; Appraisal; Minimum Price; Credit; Passing of Title

All lands, lease-holds, timber, and other products of land, before being offered, shall be appraised at their true value, and no sale or other disposal thereof shall be made for a consideration less than the value so ascertained, nor in any case less than the minimum price hereinafter fixed, nor upon credit unless accompanied by ample security, and the legal title shall not be deemed to have passed until the consideration shall have been paid.[1][2]

Section 5

Text of Section 5:

Minimum Price; Relinquishment of Lands to United States

No lands shall be sold for less than three dollars per acre, and no lands which are or shall be susceptible of irrigation under any projects now or hereafter completed or adopted by the United States under legislation for the reclamation of lands, or under any other project for the reclamation of lands, shall be sold at less than twenty-five dollars per acre; Provided, that the state, at the request of the secretary of the interior, shall from time to time relinquish such of its lands to the United States as at any time are needed for irrigation works in connection with any such government project, and other lands in lieu thereof shall be selected from lands of the character named and in the manner prescribed in section twenty-four of the said Enabling Act.[1][2]

Section 6

Text of Section 6:

Lands Reserved by United States for Development of Water Power

No lands reserved and excepted of the lands granted to this state by the United States, actually or prospectively valuable for the development of water powers or power for hydro-electric use or transmission, which shall be ascertained and designated by the secretary of the interior within five years after the proclamation of the president declaring the admission of the state, shall be subject to any disposition whatsoever by the state or by any officer of the state, and any conveyance or transfer of such lands made within said five years shall be null and void.[1][2]

Section 7

Text of Section 7:

Establishment of Permanent Funds; Segregation, Investment and Distribution of Monies

A. A separate permanent fund shall be established for each of the several objects for which the said grants are made and confirmed by the enabling act to the state,

and whenever any monies shall be in any manner derived from any of said lands, the same shall be deposited by the state treasurer in the permanent fund corresponding to the grant under which the particular land producing such monies was, by the enabling act, conveyed or confirmed.

B. No monies shall ever be taken from one permanent fund for deposit in any other, or for any object other than that for which the land producing the same was granted or confirmed.

C. All such monies shall be invested in safe interest-bearing securities and prudent equity securities consistent with the requirements of this section.

D. The legislature shall establish a board of investment to serve as trustees of the permanent funds. The board shall provide for the management of the assets of the funds consistent with the following conditions:

1. Not more than sixty per cent of a fund at cost may be invested in equities at any time.

2. Equities that are eligible for purchase are restricted to stocks listed on any national stock exchange or eligible for trading through the United States national association of securities dealers automated quotation system, or successor institutions, except as may be prohibited by general criteria or by a restriction on investment in a specific security adopted pursuant to this subsection.

3. Not more than five per cent of all of the funds combined at cost may be invested in equity securities issued by the same institution, agency or corporation, other than securities issued as direct obligations of and fully guaranteed by the United States government.

E. In making investments under this section the state treasurer and trustees shall exercise the judgment and care under the prevailing circumstances that an institutional investor of ordinary prudence, discretion and intelligence exercises in managing large investments entrusted to it, not in regard to speculation, but in regard to the permanent disposition of monies, considering the probable safety of capital as well as the probable total rate of return over extended periods of time.

F. The earnings, interest, dividends and realized capital gains and losses from investment of a permanent fund, shall be credited to that fund.

G. The board of investment shall determine the amount of the annual distributions required by this section and allocate distributions pursuant to law. Beginning July 1, 2000 and except as otherwise provided in this section, the amount of the annual distribution from a permanent fund established pursuant to this section is the amount determined by multiplying the following factors:

1. The average of the annual total rate of return for the immediately preceding five complete fiscal years less the average of the annual percentage change in the GDP price deflator, or a successor index, for the immediately preceding five complete fiscal years. For purposes of this paragraph:

(a) "Annual total rate of return" means the quotient obtained by dividing the amount credited to a fund pursuant to subsection F for a complete fiscal year, plus unrealized capital gains and losses, by the average monthly market value of the fund for that year.

(b) "GDP price deflator" means the gross domestic price deflator reported by the United States department of commerce, bureau of economic analysis, or its successor agency.

2. The average of the monthly market values of the fund for the immediately preceding five complete fiscal years.

H. Notwithstanding any other provision of this section, the annual distribution from the permanent funds for fiscal years 2012-2013 through 2020‑2021 shall be two and one-half per cent of the average monthly market values of the fund for the immediately preceding five calendar years.[1][2]

Amendments

Section 8

Text of Section 8:

Conformity of Contracts with Enabling Act

Every sale, lease, conveyance, or contract of or concerning any of the lands granted or confirmed, or the use thereof or the natural products thereof made to this state by the said Enabling Act, not made in substantial conformity with the provisions thereof, shall be null and void.[1][2]

Section 9

Text of Section 9:

Sale or Lease; Conditions; Limitations; Lease Prior to Adoption of Constitution

{{quote|All lands expressly transferred and confirmed to the state, by the provisions of the Enabling Act approved June 20, 1910, including all lands granted to the state, and all lands heretofore granted to the territory of Arizona, and all lands otherwise acquired by the state, may be sold or leased by the state in the manner, and on the conditions, and with the limitations, prescribed by the said Enabling Act and this Constitution, and as may be further prescribed by law; Provided, that the legislature shall provide for the separate appraisement of the lands and of the improvements on school and university lands which have been held under lease prior to the adoption of this Constitution, and for reimbursement to the actual bona fide residents or lessees of such lands upon which such improvements are situated, as prescribed by title 65, Civil Code of Arizona, 1901, and in such cases only as permit reimbursements to lessees in said title 65.

Section 10

Text of Section 10:

Laws for Sale or Lease of State Lands; Protection of Residents and Lessees.

The legislature shall provide by proper laws for the sale of all state lands or the lease of such lands, and shall further provide by said laws for the protection of the actual bona fide residents and lessees of said lands, whereby such residents and lessees of said lands shall be protected in their rights to their improvements (including water rights) in such manner that in case of lease to other parties the former lessee shall be paid by the succeeding lessee the value of such improvements and rights and actual bona fide residents and lessees shall have preference to a renewal of their leases at a reassessed rental to be fixed as provided by law.[1][2]

Section 11

Text of Section 11:

Maximum Acreage Allowed Single Purchaser

No individual, corporation or association shall be allowed to purchase more than one hundred sixty (160) acres of agricultural land or more than six hundred forty (640) acres of grazing land.[1][2]

Section 12

Text of Section 12:

Land exchanges; Purposes; Notice; Hearings; Submission to the Voters

A. The legislature shall provide a process by law for exchanging lands granted or confirmed by the enabling act for public lands in this state under the terms and conditions prescribed by this section.

B. The purpose of the exchange must be either:

1. To assist in preserving and protecting military facilities in this state from encroaching development.

2. To improve the management of state lands for the purpose of sale or lease or conversion to public use of state lands.

C. Before the public hearings are held pursuant to subsection D, paragraph 3 of this section:

1. At least two independent appraisals must be made available to the public showing that the true value of any lands the state receives in the exchange equals or exceeds the true value of the lands the state conveys.

2. At least two independent analyses of the proposed exchange must be made available to the public showing:

(a) The income to the trust before the exchange from all lands the state conveys and the projected income to the trust after the exchange from all lands the state receives.

(b) The fiscal impact of the exchange on each county, city, town and school district in which all the lands involved in the exchange are located.

(c) The physical, economic and natural resource impacts of the proposed exchange on the surrounding or directly adjacent local community and the impacts on local land uses and land use plans.

D. Land may not be exchanged unless:

1. The exchange is in the best interest of the state land trust.

2. Public notice of the proposed exchange includes full disclosure of all details of the transaction, the ownership of all parcels of the lands involved in the exchange, including independent and ancillary parties, a legal and general description of the location of all parcels of the lands and the appraised value of all parcels of the lands.

3. Public hearings are held at the state capital and in a location of general accessibility in the vicinity of the state lands being exchanged. Notice of the time and place of the hearings must be given beginning at least six weeks before each hearing in a manner prescribed by law. During this period, a process shall be provided for public comment on the proposed exchange.

4. The exchange is approved by the qualified electors of this state in the manner of a referendum pursuant to article IV, part 1, section 1 at the next regular general election. To be approved, the proposition must receive an affirmative vote of a majority of the qualified electors voting on the measure.

E. Land exchanges are not considered to be sales for the purposes of this article.[1][2]

Amendment

Ratified on November 6, 2012 via voter approval of Proposition 119.

See also

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External links

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Additional reading

References

  1. 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 Arizona State Legislature, "Arizona Constitution", accessed March 26, 2014
  2. 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributed to the original source.