37-609. Exchange of sovereign lands


A. For proper management of state land, the department may exchange the
surface or subsurface rights and interests in sovereign lands of this state that are
managed by the department for surface or subsurface rights and interests in federal
lands, state lands of another state or lands owned by other agencies or subdivisions of
this state.


B. The department may not exchange sovereign land of this state for other lands
under this section unless:


1. The commissioner determines that the exchange is in the best interest of the
state.


2. The commissioner determines by at least one independent appraisal that either of
the following conditions apply to the exchange:


(a) The fair market value of the sovereign land of this state that is included in
the proposed exchange is substantially equal to the fair market value of the other land
that is included in the proposed exchange.


(b) The fair market value of the sovereign land of this state that is included in
the proposed exchange is greater than the fair market value of the other land that is
included in the proposed exchange and this state will be compensated for the difference
in value with a cash payment to the department from the other party in the exchange.


C. At least sixty days before any exchange under this section, the department
shall:


1. Publish a notice of the proposed exchange in a newspaper of general circulation
in the county in which the majority of state land that is included in the exchange is
located. A notice under this paragraph shall include:


(a) The identity of the parties to the exchange.


(b) A description of all property included in the exchange.


(c) The terms and conditions of the exchange.


(d) The address to which written comments on the exchange may be mailed for the
commissioner's consideration. The comments must be mailed within thirty days after the
date of the notice.


2. Give written notice of the proposed exchange to:


(a) The county or counties in which the state land included in the exchange is
located.


(b) Any municipality in which the state land included in the exchange is located.


(c) Any person with an interest of record in the state land that is included in the
exchange.


D. Notice given by the department pursuant to subsection C, paragraph 2 shall be by
certified mail and include the information listed in subsection C, paragraph 1.


E. If the sovereign lands of this state that are included in the proposed exchange
are located in another state, the notification requirements under subsection C shall be
applied to the Arizona county that is nearest the lands.


F. In determining whether a proposed exchange is in the best interest of this
state, the commissioner shall consider written comments received by the department
pursuant to subsection C.


G. Land conveyed to this state pursuant to this section shall become sovereign land
of this state on acceptance of title and recording.


H. Monies paid to the department pursuant to subsection B, paragraph 2, subdivision
(b) shall be promptly transferred to the state treasurer for deposit in the appropriate
fund.