Committee backs bill to create Arizona Department of Natural Resources despite objections about authority and property rights
Summary
Senate Bill 1278, a strike‑everything bill to establish a Department of Natural Resources that would manage non‑trust state lands, a commission, and a right of first refusal on some land sales, received a due‑pass recommendation amid objections over permit‑override language and constitutional concerns about the right of first refusal.
A strike‑everything amendment to Senate Bill 1278 that would create a Department of Natural Resources to acquire and manage non‑trust lands in Arizona and give the department a number of new powers cleared the Senate Federalism and Lands Committee on Wednesday.
Sponsor Senator Fincham opened discussion by describing the proposal as a small organizational structure intended to receive and manage lands the state might acquire from the federal government or by other lawful means. "This will establish the Department of Natural Resources to manage non trust land," the sponsor said, listing duties the department would have, including managing watersheds and forest thinning to reduce wildfire risk.
What the amendment would do: The strike‑everything amendment (six pages, dated Feb. 12) would establish a Department of Natural Resources and a five‑member Commission on Natural Resources; grant the department authority to hold or convey state lands and open lands for recreation, agriculture or resource extraction; provide the department a right of first refusal when the federal government contracts to acquire private real property; and give the director authority to "issue, deny, or modify any permit or permitting decision made by any agency of the State regarding the extraction of natural resources," language that several committee members and witnesses called broad and in need of clarification.
State Land Department concerns: Lynn Cordova, legislative policy administrator for the State Land Department, told the committee the bill would create a new category of ‘‘state land’’ distinct from state trust land and that Title 37 would need careful amendment to avoid overlap between the trust and the new entity. Cordova flagged the draft language that allows the new department to alter other agencies' permitting decisions and warned that the provision could remove existing agency authority.
Opposition and support: Sandy Barr, director of the Sierra Club Grand Canyon Chapter, testified in opposition, citing constitutional and private‑property concerns about a state right of first refusal and warning the measure could create additional bureaucracy and interagency conflict. Adam Hawkins, who described himself as a multi‑generation Arizona miner working with mining companies, testified in favor and said a DNR structure could streamline permitting and resource planning. Hawkins also raised concerns about thousands of abandoned mine sites on federal land and cited the complexity of federal environmental review (NEPA) as a reason states should be prepared to manage lands transferred from federal control.
Committee action and concerns: Committee members expressed several substantive concerns while debating the measure — chiefly (1) whether the right of first refusal would create constitutional issues and interfere with private contracting; (2) whether the new department could lawfully modify or deny permits issued by other state agencies such as the Department of Water Resources or the Department of Environmental Quality; and (3) whether creating the department would derail revenue generation that benefits public schools by competing with the State Land Department's auctions.
The committee adopted the strike‑everything Fincham amendment and then recommended SB 1278 as amended for a due pass. The roll‑call result was 4 ayes, 2 nays and 1 not voting. Sponsors and staff will need to address the permit‑modification language and the constitutional implications of the right of first refusal before the bill progresses.
