HB2376 is a bill that seeks to amend current Arizona law regarding the transfer of privately owned real property to the Federal Government or a federal agency. The bill requires that any such transfer that would remove the property from state, county, and municipal property tax rolls must receive express and affirmative consent from the Legislature and the Governor. This consent would be given through the signing of a joint resolution by the Governor, adopted by an affirmative vote of a majority of the Legislature's members. The bill outlines specific notification and approval processes for the sale of private real property to the federal entities and establishes a right of first refusal for the state to purchase such properties.

The bill also stipulates that these requirements do not limit the rights of Indian tribes concerning their lands or affect any congressionally approved land exchanges. Additionally, the bill imposes a civil penalty for non-compliance with the reporting requirements to the Legislature and exempts certain transactions, such as those involving trustee's deeds or mortgages held by specific federal departments, from its provisions. The bill includes legislative findings that justify the need for the state to protect its tax base and asserts various legal theories that support Arizona's claim to a primary interest in its private property tax base. The bill, referred to as the "Tax Base Protection Act," was vetoed by the Governor due to concerns about its constitutionality and potential negative impacts on conservation efforts and historic preservation.

Statutes affected:
Introduced Version: 37-620.02
House Engrossed Version: 37-620.02