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Proposition 110

PROPOSITION 110

OFFICIAL TITLE

SENATE CONCURRENT RESOLUTION 1047

A CONCURRENT RESOLUTION

PROPOSING AN AMENDMENT TO THE CONSTITUTION OF ARIZONA; AMENDING ARTICLE X, SECTION 3, CONSTITUTION OF ARIZONA; AMENDING ARTICLE X, CONSTITUTION OF ARIZONA, BY ADDING SECTION 12; RELATING TO STATE TRUST LANDS.

TEXT OF PROPOSED AMENDMENT

Be it resolved by the Senate of the State of Arizona, the House of Representatives 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:

3. Mortgage or other encumbrance; sale or lease at public auction

Section 3. A. 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.

B. EXCEPT AS PROVIDED IN SUBSECTION D, 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

C. NO sale or contract for the sale of any timber or other natural product of such lands SHALL be made, save at the place, in the manner, and after the notice by publication provided for sales and leases of the lands themselves.

D. Nothing herein IN THIS SECTION, or elsewhere in THIS 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.

4. THE DISPOSITION OF LANDS OR INTERESTS IN LANDS, OR THE RESTRICTION OF INTERESTS OR RIGHTS IN LANDS, HELD IN TRUST UNDER THIS ARTICLE, WITHOUT ADVERTISEMENT OR AUCTION, IN ORDER TO:

(a) AVOID INCOMPATIBLE USES OF THE LANDS THAT WOULD CAUSE ENCROACHMENT ON:

(i) MILITARY INSTALLATIONS AND ANCILLARY MILITARY FACILITIES, MILITARY RANGES AND MILITARY AIRSPACE.

(ii) MILITARY OPERATIONS, TRAINING OPERATIONS AND SYSTEMS OR ELECTRONIC TESTING OPERATIONS.

(b) ENABLE MILITARY COMBAT READINESS AND ALLOW FULL SPECTRUM TEST AND TRAINING OPERATIONS.

2. Article X, Constitution of Arizona, is proposed to be amended by adding section 12 as follows if approved by the voters and on proclamation of the Governor:

12. Land exchanges; purposes; notice; hearings; submission to the voters

SECTION 12. A. THE LEGISLATURE SHALL PROVIDE A PROCESS BY LAW FOR EXCHANGING LANDS GRANTED OR CONFIRMED BY THE ENABLING ACT FOR PUBLIC LANDS 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. FOR PROPER MANAGEMENT, PROTECTION 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.

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

ANALYSIS BY LEGISLATIVE COUNCIL

In 1910, the United States Congress passed the Arizona-New Mexico Enabling Act, allowing Arizona to become a state. The Enabling Act granted Arizona approximately 10.9 million acres of land, referred to as "state trust land". The state land trust is intended to produce revenue for various public institutions (schools, colleges, prisons, etc.). The state can lease or sell trust land, and the natural products (timber, minerals, etc.) of the land, only to the "highest and best bidder" at public auction.

In 1936, Congress amended the Enabling Act to give Arizona more flexibility in managing and disposing of trust land by allowing the state to exchange trust land for other public or private lands. Arizona did not amend its state Constitution to incorporate that authority for land exchanges. The Arizona Supreme Court has determined that without amending the Arizona Constitution the state cannot conduct land exchanges.

Proposition 110 would amend the Arizona Constitution to allow the state to dispose of (for example, sell or lease) state trust land or interests in trust land or to place restrictions on interests or rights in trust lands, without advertisement or auction, in order to avoid incompatible use of the trust land that would interfere with military installations, facilities, ranges, airspace or operations or to enable military combat readiness and allow full spectrum test and training operations.

Proposition 110 would also amend the Arizona Constitution to allow the state to exchange state trust land for other public land. The exchange must be in the best interest of the state land trust. The purpose of the exchange must be to either assist in preserving and protecting military facilities in this state from encroaching development or for the proper management, protection or public use of state lands. There must be two independent appraisals that show that the true value of the land the state receives in the exchange is equal to or greater than the true value of the trust land the state conveys. There must also be two independent analyses that detail the income to the state land trust before and the projected income to the trust after the exchange, the financial impact of the exchange on each county, city, town and school district in which the lands are located, the physical, economic and natural resource impacts of the exchange on the local community and the impacts on local land uses and land use plans. A detailed public notice of a proposed exchange must be given, public hearings must be held and an opportunity for public comment must be given. A proposed exchange is not effective unless it is approved by the voters at a statewide November general election.

Support State Trust Land Accountability and Transparency

Vote "Yes" on Proposition 110

Proposition 110 provides for accountable and transparent state trust land exchanges by requiring that each exchange be approved by the Arizona voters.

This proposed constitutional amendment, if passed by the voters, authorizes land exchanges between the State Land Department and the Federal Government. The land exchanges can be for two purposes: protection of military facilities and proper management, protection, and public use of state lands.

Any exchange will have to be referred to the ballot by the legislature and approved by the voters in order to be consummated. All exchanges must have two appraisals, an analysis, and be vetted at two public meetings. Full and up-front disclosure of the parcels involved is also required, so there will be no surprises on what lands are involved.

The voters have been skeptical of past land exchange measures that gave broad open-ended exchange authority to the State Land Department. This measure reigns in that authority and says there must be public involvement and review as well as public support via a vote prior to any exchange. This will help address checkerboard land ownership that hinders protection of wildlife habitat and will help protect state trust lands that are adjacent to some military facilities.

We encourage you to vote "yes" on this important measure.

Argument Supporting PROP 110

State Trust Lands

PROP 110 authorizes land exchanges and requires that each individual exchange is approved by voters.

PROP 110 includes several measures of accountability, including requiring land appraisals and assessment and public meetings and review prior to any exchanging of state trust lands, with the added measure of voter approval for each exchange. This level of transparency and accountability will ensure that the citizens of Arizona get a fair exchange.

This ballot measure will also address military facility concerns as well as conservation of wildlife habitat or other issues.

The Arizona Education Association requests that you vote YES on PROP 110.

The Nature Conservancy in Arizona supports Prop 110 providing the authority for the exchange of state trust lands to avoid encroachment on military installations.

For more than a decade, the Conservancy has worked to assist Fort Huachuca in Sierra Vista, Arizona, to protect valuable habitat and avoid land-use conflicts in the vicinity of this important military installation. This partnership has helped keep the Fort Huachuca open and the natural resources viable. During these difficult economic times, there need to be more tools for use across Arizona to keep the $400 million military industry viable.

Yes, state trust land exchange has been on the ballot before. Prop 110 is very different. Prop 110 provides for a fair and open process to evaluate what state trust lands are going to be put before the voters for exchange and prescribes a narrow provision of state trust lands subject to this authority. As well, it has broad support from economic groups, chambers of commerce and environmental organizations.

Passage of Prop 110 on November 2nd will provide an important tool to support our national security, maintain our military bases as important economic engines, and achieve important land and water conservation objectives by securing healthy buffers around our military bases. This is a winning situation for all Arizonans.

Please join us on voting Yes on Prop 110.

Support Open and Accountable State Trust Land Exchanges

Vote "Yes" on Proposition 110

Proposition 110 for the first time provides a way to exchange state trust land for federal lands that includes accountability and transparency. The exchange process will have an open and public process, which identifies all lands that will be exchanged up front; requires two land appraisals; includes an analysis of the impacts; and requires two public meetings. All of this must happen prior to any exchange moving forward. This helps limit backroom deals that have been a problem with some past exchanges.

Each land exchange must also go to the voters, so the voters have the final say and provide a screen for ensuring that an exchange is truly in the public's interests. This will also help to limit the number of exchange proposals.

Exchanges can only be for two purposes including providing for the proper management, protection and public use of state lands or for the protection of military facilities.

The Sierra Club has opposed most of the past land exchange measures, but we are supporting this proposal because it includes the kind of transparency and accountability that is necessary to ensure that land exchanges are in the best interest of the trust and the larger public.

We urge your support of Proposition 110.

Valley Partnership strongly supports a "Yes" vote on Proposition 110, the Arizona State Trust Land Exchange Measure.

Valley Partnership is an organization committed to advocating for responsible growth and economic development. The Partnership consists of over 400 companies and government agencies that work in the commercial real estate development industry. For more than 20 year history, Valley Partnership has been active on issues related to Arizona State Trust Land.

There are over 9 million acres of State Trust Land in every county in the State. Many of the most scenic and environmentally important places in Arizona are State Trust Land. In addition, a significant amount of that acreage is in a "checkerboard" pattern, creating very difficult issues related to land management and hindering the ability of the State Land Commissioner properly administer State Trust Lands.

Proposition 110 would amend the Arizona Constitution to allow for the exchange of Arizona State Trust Lands for other public lands with the intention of either preserving and protecting military facilities in Arizona or converting the exchanged land to public use. These two goals would benefit the citizens of Arizona greatly.

The presence of military bases in Arizona is a fundamental part of our State's economy and contributes to our national security. Proposition 110 would ensure we have the tools to maintain those bases long into our future.

Arizonans recognize and respect the natural beauty of our State. Proposition 110 would preserve and protect many portions of Arizona by converting those special places from restricted State Trust Land to public lands managed by another government agency. This would allow for the conservation and public access to many natural wonders in Arizona. Finally, the public notice and vote requirements assure full disclosure and approval before any State Trust Land is exchanged.

Vote Yes on Proposition 110.

The network of military facilities in Arizona comprises an integrated array of bases, testing and training facilities, ranges, and airspace that operate within a physical environment uniquely suited to their individual and combined mission objectives and critical to our Nation's defense posture. The network is also an essential part of our State's economy.

The importance of military facilities and operations located in Arizona to the U.S. military cannot be understated: Arizona is distinctively positioned to satisfy the majority of the needs of the Department of Defense for many years to come with our unique network of capabilities, training resources, research, development, test, and evaluation activities.

Arizona's military industry generates thousands of jobs, more than $9 billion dollars in economic activity, and hundreds of millions of dollars in State and local tax revenue. The stability of employment and tax revenues produced by the Arizona military industry are indispensable to the fiscal health of the State.

Arizona leads the nation in established standards to balance private property rights and compatible land use to protect and enhance the missions and long-term viability of military facilities and operating areas. Proposition 110 further demonstrates Arizona's commitment to that balance through a transparent exchange process that protects State Trust Land beneficiaries as well as military missions and installations.

Proposition 110 strengthens the partnership among agencies, organizations, and stakeholders at the local, State, and federal levels, with the common goal of preserving the unique and irreplaceable assets of Arizona's network of military facilities and ensuring their long-term sustainability as keystones in the nation's defense and a cornerstone of the State's economy.

Please join us in voting YES on Proposition 110.

Authority for exchanges of state trust land must be authorized by constitutional amendment. We believe exchanges of state trust land to assist or protect military facilities can serve both the mission of state trust lands and military bases.

THE SONORAN INSTITUTE SUPPORTS PROPOSITION 110

For nearly two decades the Sonoran Institute has worked collaboratively with communities, landowners, conservationists and other stakeholders throughout the Intermountain West. Simply stated, our mission is to promote environmental sustainability, economic prosperity and smart growth principles both in the natural and built environments.

Arizona's growth has created serious challenges for the management and ongoing vitality of the state's military bases and ranges. Development encroachment and the unrelenting fragmentation of open space and natural habitat have now brought urban problems to the doorstep of these installations. This poses a serious threat to unimpeded future operations and, ultimately our national security.

A key fact sometimes lost in the discussion of environmental sustainability is the parallel need for economic sustainability. Proposition 110 is a vital step in protecting Arizona's valuable investment in America's defense infrastructure by allowing necessary and prudent land exchanges that are needed to maintain the readiness of our military and promote smart growth in Arizona.

On behalf of Arizona's cities and towns, I submit this letter in strong support of Proposition 110, State Trust Lands.

Arizona's cities and towns recognize the vital role our major military installations play in the state and local economies. Collectively, these military installations create and support nearly 150,000 jobs in Arizona, both directly and indirectly, and generate more than $9 billion in revenue every year. Even more critical than the economic impact, our military installations provide unparalleled training, combat readiness and air superiority in protecting American freedom. Ensuring the mission viability of the state's military installations must remain a high priority for all Arizonans.

The long-term mission viability of a base is one of the most critical factors that the Department of Defense considers when deciding whether a base is preserved, receives new capacity or becomes slated for closure. Proposition 110 helps protect the viability of military bases in Arizona by authorizing the State Land Department to participate in land exchanges to prevent encroachment on a base's operations without harming private property rights. Proposition 110 also sets up a process to ensure transparency for all land exchanges, including requirements for legislative and voter approval, to guarantee protection of state trust land and private property rights.

Arizona's cities and towns request that all voters support Proposition 110.

Supporting The Airmen Who Protect Our Freedom

We are collectively urging you to support Proposition 110 on the November ballot. This proposition includes provisions to facilitate State trust land exchanges for the purpose of preservation of the military missions of the State of Arizona. Our constituency, consisting of the citizens and businesses of Arizona, is supportive of these measures to preserve the primary economic engine in our State.

The argument that this change is zero cost to Arizona is the short view and while true, doesn't tell the whole story. This change has a return on investment in perpetuity in the form of economic stability and growth that cannot be replaced or replicated. Establishing sustainability of our military installations is essential to the long-term financial stability of the State.

As the Presidents and Director of the State's military installation support activities, we stand ready to address any questions you may have with regard to the benefit of this change to the State or to specific benefit to individual installations.

Please join us in voting YES on Proposition 110.

YES ON PROPOSITION 110

Proposition 110 is Arizona's opportunity to communicate to the United States Department of Defense that we are serious about protecting and preserving our military bases and facilities. Please vote YES on Proposition 110.

Preserving our system of military bases in Arizona not only guarantees that many of America's greatest heroes reside in our own communities and become part of the fabric of our future, but also that the military industry continues to be viable here - and that means keeping thousands of jobs and an economic contribution in excess of $9 billion per year.

Proposition 110 allows the Arizona State Land Department to help in preserving military bases and facilities by providing land for those uses, while, at the same time, earning money for public schools and other institutions, which own those lands in Trust.

I participated in drafting Proposition 110, and am pleased to say its language fully and intentionally observes private property rights. It does not include any government mandated activity or expenditure.

Another significant benefit of Proposition 110 is that it will allow the State Land Department to engage in thorough and transparent public processes that could result in land exchanges between government agencies based on two independent appraisals. It is extremely important to note that EACH proposed land exchange would go to a statewide VOTE. These kinds of exchanges could lead to more thoughtful land use decisions in many Arizona communities.

Please vote "yes" on Proposition 110. It will lead to great things for Arizona.

Protect Arizona's Military Bases and Jobs

Few industries have as strong of a positive impact on Arizona's economy as defense and aerospace. And these industries depend on the continued operations of military installations throughout the state. Arizona's five major Army, Air Force, and Marine installations and four principal National Guard operations are responsible for 96,328 direct and indirect jobs . These facilities contribute $9.1 billion in economic output and $401 million in state and local tax revenue according to a 2008 report by the Arizona Department of Commerce.

Simply put, our state has lost almost 300,000 jobs since the beginning of the Great Recession. The economy is still fragile. Proposition 110 will help prevent incompatible land use that could put at risk the jobs associated with military bases. For these installations to remain vibrant, they must allow for the full spectrum of military testing and training operations on the ground and in the air. Proposition 110 will ensure they are able to complete their critical missions and remain an integral part of Arizona's economy for decades to come.

Dear Voter,

Arizona has always had strong ties with its military bases. They are extremely important to our state and to the communities they serve. Protecting our installations must be a high priority for Arizona.

As it stands, encroachment on military land and airspace may jeopardize the combat-readiness of our armed forces and the ability of our bases to train new recruits. The State is very limited by the current rules which prevent land exchanges critical to the long term security and longevity of our valued military bases.

Proposition 110 will help to stop encroachment on military bases by making it possible for the State to exchange trust land for other lands, with no fiscal impact on the state's budget.

Arizona has housed and trained many brave men and women serving in our armed forces, and our commitment to their success must be mirrored by our commitment to the success of our military installations, which are outstanding sources of national security, jobs, and economic development.

Please help protect our military land and help our troops stay combat ready. Join me in voting "Yes" on Proposition 110 on November 2nd.

Sincerely,

No arguments were submitted "against" Proposition 110.

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