HB 2755 Arizona House · 57th Legislature - Second Regular Session

state land use; highest; best

HB 2755 changes Arizona state land sale and lease rules by establishing that mineral extraction or exploration is presumed to be the highest and best use of state lands when competing with other commercial uses. If a buyer or lessee wants to override this presumption (e.g., for housing or other development), they must follow specific procedures to trigger a public auction within 90 days. The bill directly affects individuals or companies seeking to purchase or lease state lands, as it shifts the default to prioritize mining unless a competitive auction process is initiated. Key provisions require the state commissioner to assume mineral use is primary in conflicts and mandate transparent auctions for alternative proposals. This policy change applies to both land sales (Section 37-262) and leases (Section 37-296) under Arizona law.
Bill status vetoed 4 of 5 stages cleared
Introduction
Jan 2026
Committee Review
House Passage
Jun 2026
Senate Passage
Jun 2026
Vetoed
Jun 2026
Introduced Jan 20, 2026 Vetoed Jun 19, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

Introduced Version House Engrossed Version (03/03/2026) · 5 edits · Mar 3, 2026
MODERATE
The bill was reorganized to clarify its purpose and added new requirements for managing state lands. Key changes include establishing a new process for renewing mineral leases without public auctions if specific fiduciary conditions are met, mandating that royalties be adjusted using market-based indexing, and significantly expanding the state land department's duties to include creating and maintaining detailed maps of military facilities and restricted airspace.
Scope change
The bill's scope expanded from primarily addressing mineral lease renewals and land use presumptions to include comprehensive mapping and data management responsibilities for military installations and training routes.
REQUIREMENT

Added a new section allowing the commissioner to renew mineral leases without a public auction if the lessee is in compliance, the renewal benefits the state trust, and the term is authorized by law.

Mandated that all renewed mineral leases must include a royalty rate adjusted by a market-based indexing mechanism.

Required the state land department to create and maintain public maps of military facilities, training routes, and restricted airspace, including updating them within 90 days of boundary changes.

Added provisions requiring the department to reimburse lessees for reasonable improvements made on holdover leases or during lease renewals.

Replaced the previous requirement for a public auction to overcome land use presumptions with a streamlined process based on written fiduciary findings.

Floor votes · House Mar 3, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
18
Key actions
9
Committee
0
Amendments
5
Jun 19, 2026
Vetoed
Vetoed by Governor
executive
Jun 13, 2026
Lower · Passed
PASSED
lower
Jun 12, 2026
Upper · Passed
PASSED
upper
Jun 11, 2026
Upper · Passed
DPA
upper
Mar 24, 2026
Upper · Passed
DPA
upper
Mar 3, 2026
Lower · Passed
DPA
lower
Mar 3, 2026
Lower · Passed
PASSED
lower
Mar 2, 2026
Lower · Passed
PASSED
lower
Feb 25, 2026
Lower · Passed
DPA
lower
Feb 12, 2026
Lower · Passed
DPA
lower
1 primary · 1 co-sponsor

Sponsors