HB 2439 — property conveyance; foreign entities; prohibition
Last action — PASSED
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✓Introduced
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✓In Committee
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3Passed House
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4Passed Senate
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5To Executive
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6Enacted
This bill died with 56th Legislature - Second Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
175 added · 32 removedPlain-language change summary
The updated version of House Bill 2439 replaces the prohibition on conveying land to "foreign entities" with a more specific ban on conveying land to "federally banned corporations." This change narrows the focus to companies specifically banned by U.S. federal agencies rather than all foreign entities, which might include a broader range of companies. This distinction is important because it allows state legislators to target specific security concerns related to entities deemed a risk by the federal government, potentially enhancing the protection of state resources from questionable foreign influences.
Fifty-sixthHouse LegislatureEngrossed Land,property Agricultureconveyance; & Rural Affairs Second Regular Session H.B.
2439foreign PROPOSEDentities; HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
2439prohibition (ReferenceState toof printedArizona bill)House Pageof 1,Representatives linesFifty-sixth 6Legislature andSecond 7,Regular strikeSession "FOREIGNHOUSE ENTITY"BILL insert2439 "FEDERALLYAN BANNEDACT CORPORATION"AMENDING LineTITLE 8,33, afterCHAPTER the4, firstARTICLE "A"4, strikeARIZONA remainderREVISED ofSTATUTES, line Line 9, strike "FOREIGN GOVERNMENT" insert "COMPANY BANNED BY ANYADDING OFSECTION THE33-459; FOLLOWING:
AMENDING SECTIONS 37-231 AND 37-240, ARIZONA REVISED STATUTES;
RELATING TO LAND SALES.
(TEXT OF BILL BEGINS ON NEXT PAGE) - i - H.B.
2439 Be it enacted by the Legislature of the State of Arizona:
Section 1.
Title 33, chapter 4, article 4, Arizona Revised Statutes, is amended by adding section 33-459, to read:
33-459.
Conveyance to federally banned corporation;
prohibition;
definition A.
BEGINNING FROM AND AFTER THE EFFECTIVE DATE OF THIS SECTION, LAND IN THIS STATE MAY NOT BE CONVEYED TO A FEDERALLY BANNED CORPORATION.
B.
FOR THE PURPOSES OF THIS SECTION, "FEDERALLY BANNED CORPORATION":
1.
MEANS A COMPANY BANNED BY ANY OF THE FOLLOWING:
INCLUDES ANY AGENT OR ANY OTHER ENTITY UNDER SIGNIFICANT CONTROL OF A FEDERALLY BANNED CORPORATION"CORPORATION. Renumber to conform Page 4, lines 5 and 6, strike "FOREIGN ENTITY" insert "FEDERALLY BANNED CORPORATION" Line 7, after the first "A" strike remainder of line Line 8, strike "FOREIGN GOVERNMENT" insert "COMPANY BANNED BY ANY OF THE FOLLOWING:
3.
DOES NOT INCLUDE THE UNITED STATES GOVERNMENT OR ITS STATES, TERRITORIES OR POSSESSIONS.
Sec.
2.
Section 37-231, Arizona Revised Statutes, is amended to read:
37-231.
State lands subject to sale;
rights reserved in lands sold;
state lands not subject to sale;
development agreements A.
All state lands, except as otherwise provided for in this title, including all improvements made or placed on or connected with state lands, shall be subject to appraisal and sale as provided in this title.
B.
Any person over eighteen years of age is entitled to purchase any of the state lands EXCEPT AS PROVIDED IN SECTION 37-240.
C.
All sales, grants, deeds or patents to any state lands sold between July 9, 1954 and March 18, 1968 shall be subject to and shall contain a reservation to the THIS state of an undivided one-sixteenth of all oil, gases and other hydrocarbon substances, coal or stone, metals, minerals, fossils and fertilizer of every name and description, together with all uranium, all thorium, or any other material which THAT is or may be determined by the laws of the THIS state or the United States or decisions of courts to be peculiarly essential to the production of fissionable materials, whether or not of commercial value, subject to the following:
1.
For the purpose of promoting the sale of state lands and the more active cooperation of the owner of the soil, and to facilitate the development of its mineral resources, the state constitutes the purchaser of the land its agent for the purposes specified in this section, and in consideration hereof, relinquishes to and vests in the purchaser of the state land an undivided fifteen-sixteenths of all oil, gas and the value - 1 - H.B.
2439 thereof which may be upon ON or within any state land purchased after July 9, 1954 and before March 18, 1968.
2.
The purchaser of the soil may sell or lease to any person, firm or corporation the oil and gas and other minerals which THAT may be on or in the land, upon ON terms and conditions the purchaser and the owner deem best, subject to the provisions and reservations of this section, but the lessee or purchaser shall pay to the THIS state an undivided one-sixteenth of the mineral produced or the value of the mineral produced at the well or mine as determined by the state land department.
3.
Show all 81 changed lines (41 more)
Upon ON discovery of oil and gas in paying quantities on land adjoining state lands purchased under the authority of this section, the purchaser or the purchaser's lessee shall drill and produce all wells necessary to protect the land so purchased from drainage by wells on lands in which the THIS state has no royalty interest, or has a lesser royalty interest.
If the purchaser or the purchaser's lessee fails to protect against such drainage, the THIS state, acting through the state land department, may, three months after demand therefor in writing by the state land department to such purchaser and the purchaser's lessee, MAY enter upon ON such lands and drill all wells necessary to protect the THIS state against such drainage.
4.
The interest reserved by the THIS state in any state lands sold may be committed to a drilling unit or cooperative or unit plans of development and operation of oil and gas pools with the United States, its agencies and its and their lessees and permittees, and with private owners and persons holding oil and gas leases on private lands or on state lands.
The state land department may, insofar as the interest of the THIS state may be affected thereby, MAY join in and consent to any such plan on behalf of the THIS state.
Such agreements shall provide for the equitable division on an agreed basis of the oil and gas produced from the unit, but no such agreement shall NOT relieve any operator from the obligation to develop reasonably the lands and leases as a whole committed thereto.
The royalties to which the THIS state is entitled on production from land purchased under this section shall be computed only on that part of the production allocated to such tract.
When the agreements made under this section provide for the return of gas to a formation underlying the unit, they may provide that no royalties are required to be paid on the gas so returned.
D.
State lands known to contain oil, gases and other hydrocarbon substances, geothermal resources, coal or stone, metals, minerals, fossils and fertilizer of every name and description, in paying quantities, or uranium, thorium or any other material which THAT is or may be determined by the laws of the THIS state OR the United States or BY decisions of court to be peculiarly essential to the production of fissionable materials, whether or not of commercial value, and state lands adjoining lands upon ON which there are producing oil, gas or geothermal wells or - 2 - H.B.
2439 adjoining lands known to contain any of such substances in paying quantities, or uranium, thorium or any other material peculiarly essential to the production of fissionable materials, whether or not of commercial value, shall not be sold.
The prohibition against sale shall not operate to prevent the sale of lands known to contain, in paying quantities, common variety minerals as defined in section 27-271 or to prevent the sale of lands where the THIS state does not own such substances, minerals or metals in the lands sought to be sold.
The provisions of This subsection shall DOES not prohibit the sale of such lands located within the exterior boundaries of an incorporated city or town, in which case the commissioner may offer the land for sale, provided the land shall be used solely for a public purpose.
Such land shall revert to the THIS state if it is used other than for a public purpose.
E.
Notwithstanding the provisions of subsection C of this section, all state lands sold after March 18, 1968 shall be sold with the reservation that all oil, gas, other hydrocarbon substances, helium or other substances of a gaseous nature, geothermal resources, coal, metals, minerals, fossils, fertilizer of every name and description, together with all uranium, all thorium or any other material which THAT is or may be determined by the laws of the United States or of this state, or BY decisions of court, to be peculiarly essential to the production of fissionable materials, whether or not of commercial value, and the exclusive right thereto, on, in, or under such land, shall be and remain and be reserved in and retained by the THIS state, regardless of any sale under this section and the issuance of any certificate of purchase to any purchaser of state lands pursuant to this section, provided, that the reservation shall not include common variety minerals as defined in section 27-271, subject to the following:
1.
The state land department shall adopt rules providing for the protection of the patentee or contract purchaser of state lands, or their successors in interest, and the THIS state of Arizona, against damage to the lands, livestock, water, crops, or other tangible improvements on lands held by such patentee or contract purchaser, and suffered by reason of the use or occupation of such lands by lessees or permittees engaged in mining and oil, gas and geothermal resource exploration and development under leases or permits executed by the department.
The state land department may, at any time, MAY require each of its lessees or permittees to execute a bond in a reasonable principal amount conditioned upon ON payment for all such damages.
2.
The mineral rights reserved to the THIS state in the lands sold shall be closed to entry and location as a mineral claim or claims, but the department may issue, upon ON application, mineral exploration permits embracing the reserved mineral rights when such issuance is deemed in the best interest of the THIS state, provided that the surface owner or owners - 3 - H.B.
2439 shall have the first right of refusal to acquire such mineral exploration permits.
Sec.
3.
Section 37-240, Arizona Revised Statutes, is amended to read:
37-240.
Limits on sales of state lands;
definition A.
No A person may NOT purchase more than six hundred forty acres of grazing land, or more than one hundred sixty acres of agricultural land.
B.
No Sales, leases or subleases of state lands shall MAY NOT be made to corporations or associations not qualified to transact business in the THIS state.
C.
BEGINNING FROM AND AFTER THE EFFECTIVE DATE OF THIS AMENDMENT TO THIS SECTION, SALES OF STATE LANDS MAY NOT BE MADE TO A FEDERALLY BANNED CORPORATION.
D.
FOR THE PURPOSES OF THIS SECTION, "FEDERALLY BANNED CORPORATION":
1.
MEANS A COMPANY BANNED BY ANY OF THE FOLLOWING:
INCLUDES ANY AGENT OR ANY OTHER ENTITY UNDER SIGNIFICANT CONTROL OF A FEDERALLY BANNED CORPORATION"CORPORATION. House Amendments to H.B.
24393. Renumber to conform Amend title to conform LUPE DIAZ 2439DIAZ.docx 02/09/2024 10:49 AM H:
EB/lsDOES -2-NOT INCLUDE THE UNITED STATES GOVERNMENT OR ITS STATES, TERRITORIES OR POSSESSIONS.
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Show all 81 changed rows (41 more)
View plain text versions (3)
- Engrossed House Engrossed Version Current pdf
- HOUSE - Land, Agriculture & Rural Affairs View text pdf
- Introduced Introduced Version pdf
Action History
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PASSED
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PASSED
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FAILED
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DPA
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DPA
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House Second Reading
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House First Reading.
Sponsors
- Steve Montenegro · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 92 not signed on · 40 voted No
Sponsors (1)
- Steve Montenegro Republican
Co-sponsors (0)
None.
Not signed on (92)
92 members have not signed on to this bill.
Show all 92 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
Roll call published as PDF — view source.
Roll call published as PDF — view source.
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democrat | 1 | 18 | 0 | 1 |
| Republican | 13 | 9 | 0 | 1 |
| Unaffiliated | 2 | 14 | 0 | 1 |
| Total | 16 | 41 | 0 | 3 |
| % of votes cast | 27% | 68% | 0% | 5% |
How each member voted (60)
Roll call published as PDF — view source.
Subjects
Frequently asked questions
- Who sponsors HB 2439?
- HB 2439 is sponsored by Steve Montenegro (Republican).
- What is the current status of HB 2439?
- This bill died with 56th Legislature - Second Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track HB 2439?
- Track HB 2439 free on One Click Politics — get push/email alerts when it moves.
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