Arizona Allowed Uses of Revenue from Sale of State Trust Lands Amendment (2016)
| Arizona Allowed Uses of Revenue from Sale of State Trust Lands Amendment | |
|---|---|
 | |
| Election date November 8, 2016 | |
| Topic State and local government budgets, spending and finance | |
| Status Not on the ballot | |
| Type Constitutional amendment | Origin State legislature |
The Arizona Allowed Uses of Revenue from Sale of State Trust Lands Amendment did not qualify for the November 8, 2016 ballot in Arizona as a legislatively referred constitutional amendment. The measure would have used a portion of revenue from state trust lands toward managing those lands.[1]
| A "yes" vote would have supported requiring revenue from the sale or use of state trust land to go into a Trust Land Management Fund, which would be used for managing and improving other state land, and requiring that only up to 10 percent of revenue generated by state trust lands be used for administrative costs. |
| A "no" vote would have opposed an amendment with these provisions, keeping the requirement that state trust land revenue be deposited into various permanent state funds based on the grant or act that resulted in the revenue. |
Overview
The measure proposed amending the Arizona Constitution to require revenue from selling state trust lands to be earmarked for managing and improving the lands. Up to 10 percent of proceeds from state trust lands each year would have been used for the administration and disposition of lands to increase the value of the state trust.[1]
What is state trust land?
Back when a state first entered the union, Congress granted them specific areas of land meant to support essential public institutions, called state trust lands. Over the years, some state trust lands have turned over to private ownership, but many still exist in the western U.S., such as those found in Arizona. Most lands are held in trust for beneficiaries, such as public schools. State trust managers can use these lands to generate revenue to help the beneficiaries by selling or leasing the lands or harvesting the land's natural resources.[2]
Background
Arizona's Trust Land Management Fund (TLMF) was established in 2009 and, in 2016, consisted of up to 10 percent of revenue from state trust lands. This revenue came from the sale of natural resources, including mineral, timber and gravel. The State Land Commissioner determined how much was deposited into the TLMF each year.[3]
Text of measure
Constitutional changes
- See also: Article 10, Arizona Constitution
The proposed amendment would amend Article 10, Section 7 of the Arizona Constitution. The full text can be read below, with added text CAPITALIZED and deleted text struck-through:[1]
| Amendment to Section 7 of Article 10 of the Arizona Constitution | |||||
|---|---|---|---|---|---|
| 7. Establishment of permanent funds; segregation, investment and distribution of monies
Section 7. 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, INCLUDING ADMINISTRATION AND DISPOSITION OF THE LANDS, 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 TRUST LAND ADMINISTRATION FUND AS PROVIDED BY LAW OR 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, EXCEPT, TO INCREASE THE VALUE OF STATE TRUST LANDS, NOT MORE THAN TEN PERCENT OF THE ANNUAL PROCEEDS FROM THE LANDS AND THE NATURAL PRODUCTS AND MONEY PROCEEDS OF THE LANDS SHALL BE USED EXCLUSIVELY FOR ADMINISTRATION AND DISPOSITION OF THE LANDS AS PROVIDED BY LAW. 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 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 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 the 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 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.[4] | |||||
Full text
The full text of the measure can be found here.
| Total campaign contributions: | |
| Support: | $0.00 |
| Opposition: | $0.00 |
Path to the ballot
| Arizona Constitution |
|---|
|
| Preamble |
| Articles |
| 1 • 2 • 3 • 4 • 5 • 6 • 6.1 • 7 • 8 • 9 • 10 • 11 • 12 • 13 • 14 • 15 • 16 • 17 • 18 • 19 • 20 • 21 • 22 • |
Approval for the ballot
According to Article 21 of the Arizona Constitution, a legislatively referred constitutional amendment can go to the ballot if a majority of members in both the Senate and House approve it. After approval from the legislature, the proposed amendment goes on a statewide ballot for a popular vote of the people after which, if approved by a simple majority, it becomes part of the constitution.
The Senate passed the bill on March 7, 2015, by a 17-to-12 vote, with one senator not voting. On the same day, the House passed the bill by a 34-to-25 vote, with one representative not voting.[5]
Senate vote
March 7, 2015
| Arizona SCR 1018 Senate Vote | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
 Yes | 17 | 58.62% | ||
| No | 12 | 41.38% | ||
House vote
March 7, 2015
| Arizona SCR 1018 House Vote | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 34 | 57.63% | ||
| No | 25 | 42.37% | ||
Removal from the ballot
Later in the year, however, the legislature ordered the secretary of state to remove this measure from the ballot and return the resolution calling for this measure (SCR 1018) to the legislature. The measure was removed from the ballot through the approval of House Concurrent Resolution 2051.[6]
Related measures
This type of measure is called a "lockbox" measure, which is designed to give voters the opportunity to say that funds raised for or by a certain purpose must be spent in that general area as well. The overall concept of a "lockbox" is to prevent fees and other revenue that is generated through one use from ending up in the state's general operations budget, instead ensuring that those funds are spent in a way related to how they were generated.
The following statewide "lockbox" measures qualified for the November 2016 ballot:
- Alabama Rules Governing Allocation of State Park Funds, Amendment 2
- Arizona Allowed Uses of Revenue from Sale of State Trust Lands Amendment, Proposition 123
- Illinois Transportation Taxes and Fees Lockbox Amendment
- New Jersey Dedication of All Gas Tax Revenue to Transportation Amendment, Public Question 2
- California Proposition 52, Voter Approval to Divert Hospital Fee Revenue Dedicated to Medi-Cal (2016)
State profile
| Demographic data for Arizona | ||
|---|---|---|
| Arizona | U.S. | |
| Total population: | 6,817,565 | 316,515,021 |
| Land area (sq mi): | 113,594 | 3,531,905 |
| Race and ethnicity** | ||
| White: | 78.4% | 73.6% |
| Black/African American: | 4.2% | 12.6% |
| Asian: | 3% | 5.1% |
| Native American: | 4.4% | 0.8% |
| Pacific Islander: | 0.2% | 0.2% |
| Two or more: | 3.2% | 3% |
| Hispanic/Latino: | 30.3% | 17.1% |
| Education | ||
| High school graduation rate: | 86% | 86.7% |
| College graduation rate: | 27.5% | 29.8% |
| Income | ||
| Median household income: | $50,255 | $53,889 |
| Persons below poverty level: | 21.2% | 11.3% |
| Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Arizona. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here. | ||
Presidential voting pattern
- See also: Presidential voting trends in Arizona
Arizona voted Republican in six out of the seven presidential elections between 2000 and 2024.
More Arizona coverage on Ballotpedia
- Elections in Arizona
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Recent news
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See also
Footnotes
- ↑ 1.0 1.1 1.2 Arizona Legislature, "SENATE CONCURRENT RESOLUTION 1018," accessed November 3, 2015
- ↑ State Trust Lands, "About State Trust Lands," accessed November 3, 2015
- ↑ Arizona Legislature, "House Summary," accessed November 3, 2015
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ Arizona Legislature, "Bill Status Overview," accessed November 3, 2015
- ↑ Open States, "HCR 2051," accessed September 5, 2016
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