AZ SB1207

Increases maximum initial lease term for airport or air terminal purposes from 40 years to 50 years, with renewal options also increased from 40 years to 50 years.

Allows cities, towns, and counties with populations under 40,000 persons and counties of any size to extend existing leases for an additional 50-year period after public notice and hearing, with cumulative lease terms not to exceed the maximum allowed.

Requires second and subsequent lease extensions to be granted only by two-thirds vote of the governing body and shall receive bids complying with lease requirements, with reimbursement at least equal to appraised rental value.

Mandates public notice requirements including publication twice in local newspapers, posting at the leasehold site and five public places including the airport property and governing body website.

Does not apply to joint powers airport authorities formed under Arizona law.