A. On the commissioner's initiative, on petition as provided by subsection C of this section or as provided by section 37-332, the commissioner may nominate certain trust lands as being under consideration for classification as trust lands suitable for conservation purposes. The commissioner shall not nominate trust lands as being under consideration for classification as trust lands suitable for conservation purposes unless the trust lands are eligible for classification under this section and are located within:
1. One mile of the corporate boundaries of an incorporated city or town having a population of less than ten thousand persons.
2. Three miles of the corporate boundaries of an incorporated city or town having a population of ten thousand persons or more.
3. Ten miles of the boundaries that are established in paragraph 1 or 2 of this subsection and that are located within counties with a population greater than five hundred thousand persons and are adjacent to lands that are eligible for conservation and share with them a specific physical characteristic such as a reach of a river, a mountain slope or an archaeological feature.
B. In addition to the lands identified in subsection A, paragraphs 1 through 3 of this section, the following lands may be nominated for reclassification by the commissioner:
1. Those lands within the Tortolita mountain park in Pinal county located within T10S, R12E and T10S, R13E.
2. Those lands in the vicinity of the Superstition mountains in Pinal county located within T1N, R9E; T1N, R10E; T1S, R9E; and T1S, R10E.
3. Those lands in the vicinity of the San Tan mountains in Pinal county located within T3S, R7E, section 10, the northwest quarter of the southeast quarter and the south half of the southeast quarter; section 15, the north half and southeast quarter.
4. The following lands located in Coconino county:
(a) T19N, R5E, section 3.
(b) T19N, R6E, sections 5 and 6.
(c) T20N, R5E, sections 2, 8, 10, 12, 14, 18, 20, 22, 24, 26, 28, 30, 32, 34 and 36.
(d) T20N, R6E, sections 4, 5, 6, 8, 10, 14, 17, 18, 20, 22, 26, 28, 30, 32 and 34.
(e) T21N, R6E, sections 21, 22, 28, 31, 32 and 33.
C. The commissioner shall receive a petition to nominate trust lands as being under consideration for classification as trust lands suitable for conservation purposes from:
1. A state agency that leases the land or intends to lease or purchase the land.
2. The board of supervisors of the county in which the land is located.
3. The governing body of a city or town if the land is located within:
(a) The corporate boundaries of the city or town.
(b) One mile outside the corporate boundaries and the city or town has a population of less than ten thousand persons.
(c) Three miles outside the corporate boundaries and the city or town has a population of ten thousand persons or more.
4. Ten or more private individuals who:
(a) Reside in the county in which the land is located.
(b) Have the financial capability to lease or purchase the land.
5. A nonprofit corporation or trust, the purpose or powers of which include conservation of natural, scenic, open space or other conservation values.
6. The current lessee of the land.
7. A business or corporation that is legally empowered to own or manage real property in this state and that intends to lease or purchase the land.
D. A petitioner who requests the commissioner to reclassify the land pursuant to this article solely or partially on grounds that the land contains cultural resources worthy of conservation shall provide, on the commissioner's request, a report on the results of a cultural resources survey of the petitioned land for the commissioner's consideration before determining if the reclassification is in the best interest of the trust.
E. Unless the commissioner nominates the trust lands under section 37-332, a petitioner shall post a bond or other security sufficient to cover the costs of the planning, notice, advertisement and public hearing as required by this article and as determined by the commissioner. The bond or security is forfeit to this state if the commissioner reclassifies the land pursuant to this article.
F. The commissioner shall not nominate or classify trust land as suitable for conservation purposes if a development plan was approved for the land pursuant to article 5.1 of this chapter before July 26, 1996. The commissioner may nominate and classify trust land as suitable for conservation purposes in an area within a development plan approved after July 26, 1996 if appropriate conservation purposes are incorporated within the development plan prepared for the commissioner's approval. In nominating and classifying trust land as suitable for conservation purposes under this subsection, the commissioner shall follow the procedures for requesting local government zoning pursuant to section 37-334, subsection E.
G. Unless the commissioner nominates the trust lands under section 37-332, after nominating the trust lands under subsection A or B of this section, the commissioner shall:
1. Mail notice of intent to classify the lands as trust lands suitable for conservation purposes to the beneficiary or beneficiaries for whom the lands are held in trust, existing lessees, local planning authorities, the appropriate regional planning authorities and owners of private land that consists of forty or more acres and that is located within three hundred feet of the trust land. The notice shall include the date, time and place of the public hearing to be held pursuant to subsection H of this section and a request for written comments on the proposed classification within thirty days after the date of notice.
2. Within thirty days after giving the notice under paragraph 1 of this subsection:
(a) Publish the notice stating a date, time and place of a public hearing for six publications in a newspaper of general circulation in the county in which the designated lands are located.
(b) Mail the notice to any person who has requested notice of any classification under this article.
(c) Mail the notice to the Arizona game and fish department, the Arizona department of agriculture, the Arizona state parks board, the Arizona department of transportation and any other affected state agency.
H. Within sixty days after the last date of publication of notice under subsection G of this section, the commissioner or the commissioner's designee shall conduct a public hearing in a location in this state as close as conveniently possible to the trust land to receive and record oral and written testimony concerning the proposed classification.
I. In determining whether reclassification is in the best interest of the trust, the commissioner shall:
1. Consult with the governing body of each city or town in which the land proposed for reclassification is located or to which the land is contiguous, the county board of supervisors of each county in which the land is located if the land is not located within the boundaries of a city or town and the local planning and zoning authorities, including the affected regional planning authorities.
2. Consider all evidence and testimony that are submitted at the hearing that was held pursuant to:
(a) Subsection H of this section if the commissioner nominated the trust lands under this section.
(b) Section 37-332, subsections B, C and D if the commissioner nominated the trust lands under section 32-332.
3. Consider the physical and economic impacts that the reclassification would have on other lands owned or controlled by the current lessee and the physical and economic impacts on the local community.
4. Consider the existence of any holding lease on the lands.
5. Consider the existence of any planning permit issued by the commissioner for the lands pursuant to article 5.1 of this chapter.
6. Consider the amount of progress on any development plans being completed for the lands pursuant to article 5.1 of this chapter.
7. Evaluate the mineral potential of the land.
J. The commissioner shall determine whether the reclassification is in the best interest of the trust and, in making the determination, shall state in writing the reasons why the classification is or is not in the best interests of the trust.
K. If the commissioner reclassifies the trust land as suitable for conservation purposes, the commissioner shall adopt a plan to allow existing and conservation uses to be coordinated in a manner that will protect both existing uses and conservation and open space values. If the reclassified trust land is unleased or the petitioner is the lessee pursuant to subsection C, paragraph 6 of this section, the commissioner may require a plan from the petitioners describing how the property is to be managed. In adopting the plan, the commissioner shall consult with:
1. The governing body of the city or town if the land is located in a city or town.
2. The county board of supervisors if the land is not located in a city or town.
3. Existing lessees of the trust land, local and regional planning authorities and owners of private land who provided written comments pursuant to subsection G, paragraph 1 of this section.
4. Any other person or entity that the commissioner considers to be necessary.
L. The classification of state land as suitable for conservation does not affect the designation or use of adjacent federal, state or private land.
M. A person who is adversely affected by the commissioner's decision to reclassify land as suitable for conservation purposes may appeal the decision to the board of appeals pursuant to section 37-215.
N. On classifying trust lands suitable for conservation purposes, existing leases shall not be canceled or modified as a result of any actions taken pursuant to this article, and renewals of existing leases shall be pursuant to section 37-291.