STATE CAPITOL, PHOENIX – The House and Senate Joint Legislative Committee of Reference convened Tuesday to conduct an in-depth review of the Arizona State Land Department, which is scheduled to sunset at the end of 2026. Following extensive testimony from the State Auditor General, the State Land Commissioner, and stakeholders from across Arizona’s land use industries, members resoundingly rejected approval of the agency for another eight years and instead opted for only a four-year continuation, conditioned on significant and enforceable reforms.

For most agencies, eight years is the standard renewal period. However, based on substantial evidence submitted during the hearing, as well as a poor performance audit, members found deep, longstanding issues with the agency that warranted a significantly shorter renewal. The Committee determined that a continuation of only four years was appropriate and that any continuation must be conditioned upon the implementation of substantial internal administrative and policy reforms. A copy of the Joint Committee’s official recommendations is attached below.

Industry representatives whose members rely on state trust land to provide jobs, build homes, and generate revenue for Arizona’s trust beneficiaries, including K–12 education, testified that the Department’s persistent deficiencies have caused a significant backlog of pending applications, a lack of planning, and a seemingly subjective internal review process. Witnesses characterized the Department’s operations as an unaccountable “black box” that has operated without transparency for years.

“Land is the greatest scarcity my industry faces today,” said Spencer Camps of the Home Builders Association of Central Arizona. “The more units we can put into production and get over this land scarcity issue, the better off we’ll be.”

“I can’t overstate that this sunset review represents a significant opportunity and benefit for the state of Arizona,” said Steve Trussell of the Arizona Mining Association. “We are simply looking for clarity and certainty for the industry.”

Patrick Bray of the Arizona Farm & Ranch Group said, “The Land Department has made a political decision to take land out of production.”

The Committee identified as especially concerning the agency’s repeated failure to adopt and implement authorization timelines mandated under the Arizona Administrative Procedures Act and the Regulatory Bill of Rights. Members also emphasized the Department’s ongoing failure to develop legally required five-year land disposition plans, concluding that continued noncompliance with these statutory obligations undermines public trust and the highest and best use of state trust land for its beneficiaries.

“The Department has had issues for a long time,” said Representative Gail Griffin, Chair of the House Natural Resources, Energy & Water Committee and Co-Chair of the Joint Committee of Reference. “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.”

“I see an agency that needs significant reforms,” said Representative Chris Lopez, 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.”

Gail Griffin is a Republican member of the Arizona House of Representatives serving Legislative District 19, which includes areas of Greenlee, Graham, Cochise, and eastern Pima and Santa Cruz Counties. She also serves as Chairman of the House Natural Resources, Energy & Water Committee.