land department; audit; recommendations; checklist

Plain English Breakdown

The exact start date of the two-year implementation period is unclear because the official text states 'within two years after the effective date,' but no specific effective date was provided in the source material.

HB2427: State Land Department Audit Implementation

This law requires the Arizona State Land Commissioner to implement all recommendations from a July 2025 audit within two years and report progress quarterly.

What This Bill Does

• Requires the State Land Commissioner to implement all 51 recommendations from the Auditor General's July 2025 performance audit and sunset review of the Arizona State Land Department (ASLD) within two years after the law takes effect.
• Mandates that the Commissioner meets with the Auditor General every three months until all recommendations are finished.
• Directs the Auditor General to keep a checklist of completed items and update it after each meeting based on whether the Auditor General is satisfied with the progress.
• Allows the Auditor General to enter State Land Department buildings, investigate issues, or inspect documents to check if recommendations are being implemented satisfactorily.
• Requires the Auditor General to send status updates on the checklist every fiscal quarter to state leaders.

Who It Names or Affects

• The Arizona State Land Commissioner and the Arizona State Land Department
• The Office of the Auditor General
• Members of the Joint Legislative Audit Committee, the Governor, and specific legislative committee chairs

Terms To Know

State Trust Lands

Approximately 9.2 million acres managed by the state to generate revenue for beneficiaries.

Sunset Review

A process where an agency's power and duties are examined to see if they should continue or change.

Performance Audit

An official check of how well a government department is doing its job.

Limits and Unknowns

• The law does not specify what happens if the Commissioner fails to implement recommendations other than notifying leaders and requesting a special meeting.
• This legislation automatically ends on December 31, 2028, regardless of whether all tasks are finished.

Official Summary Text

HB2427 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House
: NREW DPA 6-4-0-0

HB
2427
: land department; audit; recommendations; checklist

Sponsor:
Representative Griffin, LD 19

House
Engrossed

Overview

Requires
the State Land Commissioner to implement all recommendations in the July 2025
performance audit and sunset review of the Arizona State Land Department (ASLD).

History

The ASLD
is charged with managing approximately 9.2 million acres of State Trust lands, granted
to the state at statehood. These lands are held in trust and are managed for
the sole purpose of generating revenue for the 13 state land beneficiaries. Current
law designates the State Land Commissioner (Commissioner) as the executive
officer of the ASLD (A.R.S. ��
37-102
,
37-131
)(
ASLD
).

The Joint Legislative Audit Committee (JLAC) oversees all
audit functions of the Legislature and state agencies including sunset,
performance, special and financial audits. JLAC is also required to appoint,
and direct, an Auditor General who is responsible for performing all the
aforementioned audits (A.R.S. ��
41-1279
,
41-1279.03
).

Each state agency, department, program, board and advisory
council is subject to a sunset review of the power and duties exercised by the
entity. JLAC selects which agencies are subject to sunset review by the Auditor
General or by legislative committees of reference (A.R.S. ��
41- 2951
,
41-2953
).

On July 9th, 2025, the Auditor General published a
performance audit and sunset review of the ASLD (
Report 25-103
).

Provisions

1.

Requires the
Commissioner, within two years, implement all 51 recommendations that are in
the Auditor General's July 2025 performance audit and sunset review of the ASLD.
(Sec. 1)

2.

Mandates the
Commissioner meet with the Auditor General quarterly and report on the progress
of the implementation of the recommendations, until all recommendations are
implemented. (Sec. 1)

3.

Outlines
required and eligible actions of the Auditor General as it relates to ensuring
the ASLD's implementation of the recommendations and compliance with this act.
(Sec. 1)

4.

Repeals this
legislation on January 1, 2029. (Sec. 1)

5.

Contains a
legislative findings clause. (Sec. 2)

6.

7.

8.

---------- DOCUMENT
FOOTER ---------

9.

Initials CW��������������������� HB
2427

10.

2/27/2026� Page 0 House
Engrossed

11.

12.

---------- DOCUMENT
FOOTER ---------

Current Bill Text

HB2427 - 572R - H Ver

House Engrossed

land department;
audit; recommendations; checklist

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2427

AN
ACT

REQUIRINg the state land department to
implement recommendations by the auditor general.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section
1.
1.
State land department; auditor general report; recommendations;
implementation; checklist; notification; delayed repeal

A. Within two years after
the effective date of this section, the state land commissioner shall implement
all fifty-one recommendations in the auditor general's July 2025 performance
audit and sunset review of the state land department.

B. Until the state land
commissioner implements all of the auditor general's recommendations, the state
land commissioner shall meet with the auditor general
quarterly and report on the progress of the state land
department's implementation of the recommendations.

C. The auditor general
shall maintain a checklist of the recommendations and shall update the
checklist after each meeting consistent with the completion of any of the
recommendations to the satisfaction of the auditor general.

D. The auditor general may
enter any premises, conduct any investigation or inspect any documents in
possession of the state land department to ensure the state land department
implements the recommendations to the auditor general's satisfaction.

E. Each fiscal quarter, the
auditor general shall provide an update of the current status of the
recommendation checklist to the following:

1. Each member of the joint
legislative audit committee.

2. The governor.

3. The chairperson of the
committee of reference that the president of the senate tasks with oversight of
the state land department.

4. The chairperson of the
committee of reference that the speaker of the house of representatives tasks
with oversight of the state land department.

F. If the state land
department fails to implement the auditor general's recommendations within two
years after the effective date of this section, the auditor general shall:

1. Notify the following:

(
a
) Each
member of the joint legislative audit committee.

(
b
) The
governor.

(
c
) The
chairperson of the committee of reference that the president of the senate
tasks with oversight of the state land department.

(
d
) The
chairperson of the committee of reference that the speaker of the house of
representatives tasks with oversight of the state land department.

2. Request a special
meeting of the joint legislative audit committee to evaluate potential remedies
and future action.

G. This section is repealed
from and after December 31, 2028.

Sec.
2.
2.
Legislative findings

The
legislature finds that this act is necessary to ensure the best interest of the
state land trust, state land trust beneficiaries and this state.