By Matthew Holloway |
The Arizona House and Senate Joint Legislative Committee of Reference (JLCOR) declined to grant the Arizona State Land Department a full, unconditional continuation following its sunset review. Citing systemic compliance failures, Republican legislative leaders are advancing legislation to restructure the agency.
According to a statement from House Republican leadership, the committee voted against a standard continuation during the sunset review hearing, raising concerns over deficiencies in oversight, transparency, and adherence to statutory requirements.
The Arizona State Land Department manages more than 9 million acres of state trust land, with proceeds constitutionally required to benefit public schools and other designated beneficiaries.
Lawmakers cited findings from a sunset review and Auditor General reports indicating the department has failed to comply with statutory requirements governing land disposition planning and long-term development strategy. Committee members said those deficiencies warranted legislative action before the agency could receive a full continuation.
According to House GOP leadership, the proposed reforms would require the State Land Department to:
- Develop and follow five-year land disposition plans as required by statute
- Increase transparency and public engagement related to land sales and leases
- Strengthen requirements for competitive bidding and limit single-bid transactions
- Improve coordination with municipalities and reporting on undeveloped trust land
Alongside the sunset review, lawmakers, led by Rep. Gail Griffin (R-LD19), Chair of the House Natural Resources, Energy & Water Committee and Co-Chair of the JLCOR, introduced several bills to reform the Arizona State Land Department.
HB 2426 would require the department to produce a statutorily mandated five-year disposition plan for trust lands within two years, addressing longstanding planning deficiencies. HB 2427 would compel the commissioner to implement all 51 recommendations from the Auditor General’s July 2025 performance audit, with regular reporting and oversight until completion. Meanwhile, HB 2150 clarifies the department’s continuation under sunset law by setting its termination date and laying groundwork for legislative reconsideration of its structure and authority.
“The Department has had issues for a long time,” Rep. Griffin said. “But they’ve gotten worse under the current administration. Licensing timeframes, five-year disposition plans, and written policies and procedures are essential to upholding the best interests of the trust. These were the top issues. The Commissioner acknowledged these issues during her confirmation hearing and committed to fixing them, but they haven’t been fixed. The captain isn’t steering the ship.”
Supporters of the reform effort said the changes are intended to ensure the department fulfills its constitutional obligation to maximize long-term value for trust beneficiaries, including Arizona’s public education system.
“I see an agency that needs significant reforms,” said Rep. Chris Lopez (R-LD16), Vice Chair of the House Natural Resources, Energy & Water Committee. “I think the lack of licensing timeframes is violating applicants’ due process rights. I think the Department’s decision to hold applications permanently in abeyance, so it can avoid appeals, is unlawful, serving functionally as a denial without a written decision. And I think the criteria the Department utilizes to determine which applications move forward are entirely subjective. At a time when transparency is key, I’m surprised the agency hasn’t already been sued.”
Under Arizona’s sunset review process, state agencies may be continued, modified, or allowed to expire based on legislative findings. The committee’s rejection of a full continuation means the State Land Department’s future structure and authority will now be considered as part of the broader legislative process.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
