auditor general; state lands; audit

Plain English Breakdown

The official summary states the audit occurs if adequate funds are appropriated, but does not confirm current funding levels or a specific deadline for completion.

Special Audit of Arizona State Land Department

This bill directs the Auditor General to perform a special review of how the state manages and sells certain lands, including vacant plots with low slopes and solar projects.

What This Bill Does

• Requires the Auditor General to conduct a special audit of the Arizona State Land Department (ASLD).
• Orders an analysis of empty state trust land with slopes less than 15 percent that received no applications or were denied interest letters, including reasons for denial.
• Mandates a review of land sales started by commissioners in counties where only one bid was received, including checks on the appraised value and reasons for low competition.
• Requires an examination of solar leases and sales at public auction that had only one bidder to understand why competition was low and evaluate appraised values.
• Directs an evaluation of rules requiring companies to restore solar project lands to their original condition after use.

Who It Names or Affects

• The Arizona Auditor General, who must perform the audit if funding is available.
• The Arizona State Land Department (ASLD), which is being audited.
• Companies or individuals interested in buying state land or leasing it for solar projects.

Terms To Know

Auditor General

The state official responsible for checking government spending and operations to ensure they follow the law.

State Trust Lands

Land owned by the state that is managed to generate money for public schools, universities, or other specific groups.

Reclamation Requirements

Rules that require a company to fix and restore land back to its original condition after finishing a project like solar energy production.

Limits and Unknowns

• The audit only happens if the Auditor General determines there is enough money in the budget to pay for it.
• The law specifies a slope limit of less than 15 percent and a population count over 400,000, so land outside these limits may not be included.

Official Summary Text

HB2425 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House
: NREW DP 6-4-0-0

HB
2425
: auditor general; state lands; audit

Sponsor:
Representative Griffin, LD 19

House
Engrossed

Overview

Directs
the Auditor General to conduct a special audit of the Arizona State Land
Department (ASLD) and outlines items for the special audit to examine.

History

The
A
SLD administers laws related to lands owned by,
belonging to and under control of the state, which includes both trust land and
sovereign land. The ASLD also manages and controls the products and uses of
state land including timber, stone, gravel, grazing and farming (
A.R.S. � 37-102
).

The Auditor General must perform special audits designated
pursuant to law if they determine there are adequate monies appropriated to
complete such an audit. Based on information provided by the Auditor General,
Joint Legislative Budget Committee staff must notify all members of the
Legislature as soon as practicable of the cost to conduct a special audit for
any legislative measure that requires one be performed (
A.R.S. � 41-1279.03
).

Provisions

1.

Directs the
Auditor General to conduct a special audit of the ASLD. (Sec. 1)

2.

Requires the
special audit to examine all the following:

a.

vacancy on
State Trust lands with a slope of less than 15%, including:

i.

an analysis
of whether any parties have submitted applications or letters of interest for
the land parcels;

ii.

reasons
provided by the ASLD for denial of any application or letter of interest;

b.

any
Commissioner-initiated land sale in counties with a population over 400,000
that received only one bid, including:

i.

reasons why
one bid was received on the land sale;

ii.

an
evaluation of the appraised value of the land sold;

c.

any solar
leases and sales on State Trust lands that went to public auction and received
only one bid, including:

i.

reasons why
one bid was received on the land lease or sale;

ii.

an
evaluation of the appraised value of the land leased or sold; and

d.

an
evaluation of the reclamation requirements the SLD requires of any solar lease
or sale to restore the lands to previous conditions at the end of the solar
project's useful life. (Sec. 1)

e.

f.

g.

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FOOTER ---------

h.

Initials
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i.

2/23/2026������� Page
0 House Engrossed

j.

k.

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Current Bill Text

HB2425 - 572R - H Ver

House Engrossed

auditor general;
state lands; audit

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2425

AN
ACT

requiring the auditor general to conduct
a special audit of the state land department.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1.
Auditor
general; special audit; state land department

A. The auditor general
shall conduct a special audit pursuant to section 41-1279.03, Arizona
Revised Statutes, of the state land department.

B. The special audit must
examine all of the following:

1. Vacancy on state trust
lands with a slope of less than fifteen percent.� The audit must include an
analysis of whether any parties have submitted applications or letters of
interest for the state trust land parcels and reasons provided by the state
land department for denial of any application or letter of interest.

2. Any commissioner-initiated
land sales in counties with a population of more than four hundred thousand
persons that received only one bid.� The audit must include reasons why one bid
was received on the land sale, including an evaluation of the appraised value
of the land that was sold.

3. Any solar leases and
sales on state trust lands that went to public auction and received only one
bid.� The audit must include reasons why one bid was received on the land lease
or sale, including an evaluation of the appraised value of the land that was
leased or sold.

4. An evaluation of the
reclamation requirements the state land department requires of any solar lease
or sale to restore the lands to previous conditions at the end of the solar
projects useful life.