The State Land Department is continued until July 1, 2030, and the law changes how it handles exploration permits, mining leases, lease renewals, land sales and land-use planning, with new deadlines, website posting duties and limits on lease terms.
Official title: state land department; continuation; oversight
- September 12, 2026
- Retroactive to July 1, 2026: Continuation of the State Land Department and repeal of its earlier termination date
- July 1, 2030: State Land Department terminates unless continued again
- January 1, 2031: Repeal of the department's main governing laws
- After December 31, 2026: Joint legislative ad hoc committee on state land oversight is repealed
- By December 31, 2028: Biosolids study committee report due
- After June 30, 2029: Biosolids study committee is repealed
- Within 2 years after the effective date: Commissioner must complete five-year disposition plans, update the conceptual land use plan and adopt related policies
What changes
BeforeMineral exploration permits lasted 1 year and could be renewed year by year for up to 5 years total. Each application covered land within 1 section.
NowExploration permits are for a specific commodity type, such as minerals, sand and gravel, oil, gas or geothermal resources. They last 5 years and can be renewed once for another 5 years, for up to 10 years. An application may cover land in contiguous sections, up to 9 sections. Renewal applications are filed within 60 days before the first 5-year period ends.
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NowThe commissioner may renew an existing production lease (a lease to extract or sell a commodity type) without a public auction if the lessee follows the lease, the land is producing or will be within 2 years, and the term is allowed by law. Renewed leases must use a royalty rate tied to a market-based index, reviewed no more than once every 5 years.
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NowFor lessees, the department must approve or deny requests to place improvements consistent with the lease within 90 days. It must give notice at least 6 months before a lease expires, stating any rent or term changes, whether it intends to renew and why. Within 6 months after a lease or holdover ends, it must give a plan to reimburse the fair market value of previously approved improvements, based on an independent valuation.
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NowUnless the department and lessee agree otherwise, holdovers (staying on after a lease or permit ends) are limited to 90 days, and special land use permits are limited to temporary uses. The department must post on its website its standard lease and permit terms and its application-completeness criteria. It may not require terms not authorized by statute. An application may be withdrawn if the applicant does not respond to a deficiency notice within 3 months and then a 30-day final notice.
BeforeThe commissioner made five-year disposition plans and sent plans to an urban land planning oversight committee. The trust land management fund received up to 10% of trust land proceeds.
NowA five-year disposition plan is required for each county, and plans must be approved by written order and posted online. The commissioner must hire a third-party contractor to appraise and prepare land for auction, and must post the criteria for starting land sales on its own initiative. The fund now consists of certain department fees, and up to 10% of one fee category may go to performance incentives for staff.
Who it affects
- People and businesses that lease or hold permits on state land, including mining and exploration permit holders
- Owners of land where the state reserved mineral rights
- Buyers of state trust land
- State Land Department and state land commissioner
- Cities, towns, counties and the Arizona Geological Survey, which the department must consult on plans
- Legislative leaders and a new legislative oversight committee and biosolids study committee
What you need to do
Nothing, unless you hold an exploration permit issued before this law. You may keep it until its stated expiration date or surrender it early and seek a 5-year permit under the new rules.
What the law doesn't answer
- How large the royalty changes will be under the market-based index
- Where the money will come from to reimburse lessees for improvements
- What happens if the department misses the 90-day or 6-month deadlines
- How many members the legislative oversight committee will have
- The practical effect of removing language from the unclaimed property law that had excluded small business balances, gift cards and similar items from the definition of property
- Whether the commissioner will hire third-party contractors to prepare disposition plans, since the law only requires considering it
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.