Sunset review of the Arizona State Land Department

              ARIZONA STATE SENATE
RESEARCH STAFF
MEGAN GNAGY
TO: JOINT LEGISLATIVE AUDIT COMMITTEE LEGISLATIVE RESEARCH ANALYST
NATURAL RESOURCES &
DATE: November 28,2007
SUBJECT: Sunset Review of the Arizona State Land Department
RURAL AFFAIRSCOMMITTEE
Telephone: ( 602) 926- 3 171
Facsimile: ( 602) 926- 3833
Attached is the final report of the sunset review of the Arizona State Land Department, which
was conducted by the Senate Natural Resources and Rural Affairs and House of Representatives
Counties, Municipalities and Military Affairs Committee of Reference on November 8, 2007.
This report has been distributed to the following individuals and agencies:
Governor of the State of Arizona
The Honorable Janet Napolitano
President of the Senate
Senator Tim Bee
Senate Members
Senator Chuck Gray, Cochair
Senator Amanda Aguirre
Senator Marsha Arzberger
Senator Robert Blendu
Senator Karen Johnson
Arizona State Land Department
Arizona State Library, Archives & Public Records
Auditor General
Senate Majority Staff
Senate Research Staff
Senate Democratic Staff
Senate Resource Center
Speaker of the House of Representatives
Representative James Weiers
House Members
Representative John Nelson, Cochair
Representative Manuel Alvarez
Representative Lucy Mason
Representative Marian McClure
Representative Tom Prezelski
House Majority Staff
House Research Staff
House Democratic Staff
Chief Clerk
MGIj as
Attachment
COMMITTEE OF REFERENCE REPORT
ARIZONA STATE LAND DEPARTMENT
Background
Pursuant to section 4 1- 2953, Arizona Revised Statutes, the Joint Legislative Audit
Committee ( JLAC) assigned the sunset review of the Arizona State Land Department to the
Senate Natural Resources and Rural Affairs and House of Representatives Counties,
Municipalities and Military Affairs Committee of Reference. The Office of the Auditor General
( OAG) completed the performance audit.
Prior to Arizona becoming a state in 1912, the Enabling Act granted certain sections of every
township to be held in trust for the common schools. There are a total of 14 beneficiaries to the
trust, with the public schools being the major beneficiary. The state trust was originally granted
10.9 million acres.
The State Land Department ( Department) was created in 1915 and given management
authority over all state trust lands and the natural products derived from the land. The mission of
the Department is to manage the trust lands and maximize revenues for the beneficiaries. These
revenues are maintained in either the Permanent Fund, if the revenue is derived from the sale of
land or resources, or distributed directly to the beneficiaries, if the revenue is derived from
leases, rentals or interest from financed sales.
The Department has disposed of or exchanged approximately 1.7 million acres of state trust
land, leaving 9.2 million acres that continue to be managed by the Department for agricultural,
commercial and grazing purposes. The majority of state trust lands are leased for grazing
purposes, but the largest revenue producer for the trust has been urban land leases and sales.
The Arizona State Treasurer is responsible for managing and investing the monies in the
Permanent Fund. Earnings are distributed from those investments to the beneficiaries based on a
constitutional formula. In FY 2006- 2007, $ 194.8 million was deposited into the Permanent Fund
and $ 122 million was distributed directly to the beneficiaries, including $ 67 million that was
deposited into the Classroom Site Fund. The total balance in the Permanent Fund at the end of
FY 2006- 2007, as reported by the State Treasurer, was more than $ 2.26 billion.
Committee of Reference Sunset Review Procedures
The Committee of Reference held a public hearing on November 8, 2007, to review the
performance audit prepared by the OAG, the Department's response to the sunset factors as
required by A. R. S. 8 41- 2954, subsection F ( See Attachment 2) and to receive public testimony
( See Attachment 5). Testimony was received from Dale Chapman, Performance Audit Manager,
Auditor General's Office; Mark Winkleman, Arizona State Land Commissioner, State Land
Department; and Debra Davenport, Arizona Auditor General.
State Land Department Audit ( Office of the Auditor General, September 2007, Report No. 07-
08)
Finding I : The Department uses a comprehensive selling and leasing process, but should further
enhance the process.
Recommendations:
1. The Department should establish time frames or ranges for its selling and leasing process.
2. The Department should provide site studies on its website as soon as the studies have
been completed.
3. The Department should take steps to improve appraisals by working with the Department
of Administration and the Department of Transportation to obtain a new or supplemental
statewide appraisal contact and improve communication with the appraiser community.
Finding 2: Department should further improve state trust land management.
Recommendations:
1. The Department has improved lease language, but additional improvements could be
made in some leases, including requiring comprehensive insurance or environmental
protection provisions in the Department's special land use permits and mineral
exploration permits.
2. Critical leases should receive timely inspections including well inspections and
agricultural lease, grazing lease and mineral lease inspections.
3. The Department should focus inspections on high- risk leases and cross- train inspection
staff.
4. The Department should document all field inspections.
Committee of Reference Recommendation
The Committee of Reference recommended that the Arizona State Land Department be
continued for ten years.
Attachments
1. Letter from Senator Chuck Gray to the Arizona State Land Department requesting
information
2. Sunset factors pursuant to A. R. S. 5 41- 2954, subsection F
3. Office of the Auditor General Report Highlights
4. Meeting Notice
5. Minutes of the Committee of Reference meeting
6. Letters from interested parties
. .
SENATORCHUCKGRAY
t700 ' JEST WASHINGTON, SUITE $
PHOENIX. ARIZONA 85007- 2844
CAPITOL PHONE: ( 602) 926- 5288
CAPITOL FAX ( 602) 417- 3167
TOLL FREE: 1- 800- 352- 8404
cgray@ azleg. gov
DISTRICT 19 - MESA
COMMITTEES:
TRANSPORTATION. VICE- CHAiRMAhl
JUDICIARY
NATURAL RESOURCES & RURAL
AFFAIRS
LEGISLATIVE COUNCIL
August 24,2007
State Land Department
Mark Winkleman, Land Commissioner
1616 W. Adams St
Phoenix, Arizona 85007
Dear Commissioner Winkleman,
The sunset review process prescribed in Title 4 1, Chapter 27, Arizona Revised Statutes, provides
a system for the Legislature to evaluate the need to continue the existence of state agencies.
During the sunset review process, an agency is reviewed by a legislative committee of reference.
On completion of the sunset review, the committee of reference recommends to continue, revise,
consolidate, or terminate the agency.
The Joint Legislative Audit Committee ( JLAC) has assigned the sunset review of the Arizona
State Land Department to the committee of reference comprised of members of the Senate
Natural Resources and Rural Affairs Committee and the House of Representatives Counties,
Municipalities and Military Affairs Committee. JLAC has directed the Auditor General to
conduct a performance audit of the Arizona State Land Department.
Pursuant to A. R. S. $ 41- 2954, the cornittee of reference is required to consider certain factors in
deciding whether to recommend continuance, modification or termination of an agency. In
addition to the 12 sunset factors which are addressed in the Auditor General performance audit,
please provide your agency's response to the required factors as listed below:
1. An identification of the problem or the needs that the agency is intended to address.
2. A statement, to the extent practicable, in quantitative and qualitative terms, of the
objectives of such agency and its anticipated accomplishments.
3. An identification of any other agencies having similar, conflicting or duplicate
objectives, and an explanation of the manner in which the agency avoids duplication or
conflict with other such agencies.
4. An assessment of the consequences of eliminating the agency or of consolidating it
with another agency.
In addition to responding to the factors in A. R. S. $ 41- 2954, please provide the committee of
reference with copies of your most recent annual report. Your response should be received by
September 20, 2007 so we may proceed with the sunset review and schedule the required public
hearing. Please submit the requested information to;
Megan Gnagy
Arizona State Senate
1700 West Washington
Phoenix, Arizona 85007.
Thank you for your cooperation. If you have any questions, please feel fiee to contact me at
( 602) 926- 5288 or Ms. Gnagy at ( 602) 926- 3 171.
Sincerely, fi& A, Chuck Gray I
State Senator
Chairman, Senate Natural Resources and Rural Affairs Committee of Reference
Arizona State Land Department
Sunset Factors
1. An identification of the problem or the needs that the agency is intended to
address.
The Arizona State Land Department has three main programs, Trust Management,
Forestry Division, and the Arizona Center for Geographic Information, Coordination and
Services.
What objectives or purposes are established in the agency statutes?
Trust Management
The primary objective or purpose of the Arizona State Land Department is " to administer
all laws relating to lands owned by, belonging to and under the control of the state."
A. R. S. 5 37- 1 02 states:
A. The state land department shall administer all laws relating to lands owned by,
belonging to and under the control of the state.
B. The department shall have charge and control of all lands owned by the state, and
timber, stone, gravel and other products of such lands, except lands under the specific use
and control of state institutions and the products of such lands.
C. The department, in the name of the state, may commence, prosecute and defend all
actions and proceedings to protect the interest of the state in lands within the state or the
proceeds thereof. Actions shall be commenced and prosecuted at the request of the
department by the attorney general, a county attorney or a special counsel under the
direction of the attorney general.
D. The department shall be the official representative of the state in any communication
between the state and the United States government in all matters respecting state lands
or any interest of the state in or to the public lands within the state.
E. The summons in any action against the state respecting any lands of the state or the
products of such lands and all notices concerning such lands or products shall be served
upon the commissioner. Summonses, warrants or legal notices served on behalf of the
department may be sewed by the commissioner or the commissioner's deputy, or by the
sheriff or a constable of any county of the state.
F. The department shall maintain as a public record in each of its offices a public docket
and index of all matters before the department which may be subject to appeal to the
board of appeals or to the courts and all sale, exchange and lease transactions subject to
bidding by the public. The department shall list a matter on the public docket
immediately after an application or other request for department action is received by the
department. The department shall include in the public docket every formal action and
decision affecting each matter in question. The department shall establish by rule a means
by which any person may obtain a copy of the public docket at the current copying cost.
G. The department shall reappraise or update its original appraisal of property to be
leased, exchanged or sold if the board of appeals' approval of the lease or sale occurred
more than one hundred eighty days before the auction.
H. The state land department shall:
1. Prepare maps of the ancillary military facilities described in section 28- 846 1,
paragraph 7, subdivisions ( b) and ( c).
2. Make a map of the ancillary military facility described in section 28- 8461, paragraph
7, subdivision ( a) available to the public in printed or electronic format and provide the
map in printed or electronic format to the state real estate department.
I. The state land department shall provide each map and the legal description of the
boundaries of each ancillary military facility described in section 28- 8461, paragraph 7 in
electronic format to the state real estate department. Each map prepared by the state land
department pursuant to this section shall:
1. Describe the ancillary military facility, the territory in the vicinity of the ancillary
military facility and the high noise and accident potential zone, accident potential zone
one and accident potential zone two associated with the ancillary military facility.
2. Be submitted to the county in which the ancillary military facility is located.
3. Be made available in printed or electronic format to the public at the state land
department and at the state real estate department.
J. The state land department shall prepare a military training route map. The map shall
contain military training route numbers in this state that are used by various United States
armed forces. The map shall be dated.
K. When preparing the military training route map, the state land department shall use
information contained in the most current department of defense publication that is
entitled area planning military training routes for North and South America.
L. The military training route map shall be made available in printed or electronic format
to the public at the state land department and at the state real estate department.
M. Within ninety days after the department is notified of a change of a military training
route in this state, the department shall prepare a revised military training route map. The
map shall be dated and contain a statement that the map supersedes all previously dated
maps. The state land department shall send the revised map to the state real estate
department electronically and shall also send an accompanying letter specifying the
military training route changes. The state land department shall send the revised map and
an accompanying letter specifying the military training route changes to the
municipalities affected by the changes and to all counties.
N. The department shall submit the military training route map prepared pursuant to this
section to the counties in either an electronic or a printed format. The format shall be
determined by the receiving county.
0. The state land department shall provide the legal description of the boundaries of the
military training routes as delineated in the military training route map to the state real
estate department in electronic format.
P. Within ninety days after the effective date of this amendment to this section, the state
land department shall prepare a military restricted airspace map. The map shall contain
military restricted airspace in this state that is used by various United States armed forces.
The map shall be dated.
Q. When preparing the military restricted airspace map, the state land department shall
use information contained in the most current department of transportation publication
that is entitled aeronautical chart.
R. The military restricted airspace map shall be made available in printed or electronic
format to the public at the state land department and at the state real estate department.
S. Within ninety days after the department is notified of a change of military restricted
airspace in this state, the department shall prepare a revised military restricted airspace
map. The map shall be dated and contain a statement that the map supersedes all
previously dated maps. The state land department shall send the revised map to the state
real estate department electronically and shall also send an accompanying letter
specifying the military restricted airspace changes. The state land department shall send
the revised map and an accompanying letter specifling the military restricted airspace
changes to the municipalities affected by the changes and to all counties.
T. The department shall submit the military restricted airspace map prepared pursuant to
this section to the counties in either an electronic or a printed format. The format shall be
determined by the receiving county.
U. The state land department shall provide the legal description of the boundaries of the
military restricted airspace as delineated in the military restricted airspace map to the
state real estate department in electronic format.
Forestry Division
The State Forester has the authority to prevent and suppress wildland fires on state and
unincorporated private land, which encompasses approximately 30% of the state.
A. R. S. 5 37- 622 states that the State Forester shall:
A. The state forester is designated as the agent of the state of Arizona and shall
administer the provisions of this chapter. In addition, the state forester shall:
1. Perform all management and administrative fimctions assigned or delegated to this
state by the United States relating to forestry and financial assistance and grants relating
to forestry.
2. Identify sources of information relating to forest management, including wildfire
suppression and recovery and administrative and judicial appeals and litigation with
respect to timber sales and forest thinning projects in this state and develop procedures
for compiling and transferring that information to the state forester.
3. Take necessary action to maximize state fire assistance grants, including establishing
timelines for using grant monies and reallocating lapsed grant monies to other projects.
4. Conduct education and outreach in forest communities explaining the wildfire threat to
private property caused by lack of timber harvesting and thinning.
5. Monitor forestry projects and wildfire activities.
6. Intervene on behalf of this state and its citizens in administrative and judicial appeals
and litigation that challenge governmental efforts supported by the state forester if the
state forester determines that intervention is in the best interests of this state.
A. R. S. fj 37- 623 states:
A. The state forester shall have authority to prevent and suppress any wildfires on state
and private lands located outside incorporated municipalities and, if subject to
cooperative agreements, on other lands located in this state or in other states, Mexico or
Canada. If there is no cooperative agreement, the state forester may furnish wildfire
suppression services on any lands in this state if the state forester determines that
suppression services are in the best interests of this state and are immediately necessary
to protect state lands.
A. R. S. 5 37- 623.01. states:
B. The state forester shall establish an equipment program in order to supply the forestry
administrative districts. Equipment shall be supplied through both the federal excess
property program and purchases of new equipment when warranted.
Arizona Center for Geographic Information, Coordination and Services
ACGIS has the statutory responsibility to provide GIs development, analysis, and
coordination in Arizona.
A. R. S. 5 37- 173 states:
1. Establish a clearinghouse of information and a central repository for map and imagery
products and digital cartographic data.
2. Provide a geographic information system for the state land department and other public
agencies in this state. The system shall be capable of input, processing, display,
compositing, analysis, synthesis and manipulation of data from maps, aerial photos,
orthophotos, remote sensing devices and other spatial data sources. The division shall
provide training and consultation in the use of the system, related technical assistance and
limited production services to system users.
3. Provide current land resource information and monitor changes over time by remote
sensing techniques.
4. Prepare standards and specifications for developing and producing cartographic and
aerial photographic products and geographic information systems.
5. Produce maps and inventories at standard scales for various areas to include
combinations of data elements.
6. Provide maps, aerial photographs and other remote sensing data to help analyze the
following natural resources:
( a) Producing mines, improvements to such mines and mills and smelters operated in
conjunction with such mines.
( b) Producing oil, gas and geothermal resources.
( c) Rights- of- way on state trust lands.
( d) Urban trust lands.
( e) Forestry management lands and standing timber.
( f) Rangeland resources.
( g) Cropland resources.
( h) Water ditches constructed for mining, manufacturing or irrigation purposes on state
trust lands.
( i) Other data relating to land and water resources in this state such as subsidence
locations, irrigation districts and groundwater active management areas.
7. Function as the Arizona affiliate office for the national cartographic information
center, with support from the United States geological survey and the Arizona state
library, archives and public records, to access archived maps and imagery data sources to
assist the mapping, inventorying and data handling segments of the division and outside
users.
8. Establish a liaison relationship with the Arizona geological survey, the United States
geological survey, regional federal mapping organizations and other state and local
government organizations in order to coordinate activities in this state relating to
collecting, compiling, producing and processing cartographic materials, satellite imagery
and land resource information.
9. Identify local digital cartographic data to include in the national digital cartographic
data base.
10. Coordinate the development of a public land survey system monument data base.
What was legislative intent in establishing the agency?
A temporary Land Department was established by the First Legislature on May 20, 1912.
Its first task was to assess, evaluate, and make recommendations about the land granted
by Congress to the State for the Common Schools and other institution. A permanent
State Land Department was established in 19 15 ". . . in order that the multitudinous detail
attached to the State's varied land interests may have constant attention and to prevent
irretrievable loss."
How have the objectives of the agency changed since it was established?
Trust Management
Since the State Land Department's inception, its missions have been to manage the Land
Trust and to maximize its revenues for the beneficiaries. The largest change has been
how that is done. Until recently, resources were primarily directed to more rural activities
such as grazing, agriculture, and mineral exploration and sales. As the Phoenix and
Tucson urban areas have expanded to include or border State Trust land, the focus has
changed to commercial leases and land sales in those urban areas.
Forestry Division
The objective of the Forestry Division has changed since it was established. The Land
Commissioner became the State Forester on July 1, 1966 through Laws 1966 Chapter 20.
At that time, its function was to protect State and privately- owned commercial timber
lands from fire in addition to managing the Trust's timber sales program.
Changes to A. R. S. § 37- 621 along with Executive Orders 2004- 21 and 2007- 18,
established State Land Department Forestry Division and the State Forester position. The
State Forester responsibilities were taken away from the State Land Commissioner and a
Governor- appointed State Forester position was established. The State Forester no longer
reports to the Land Commissioner, but reports directly to the Governor. This change was
made due to the changed objectives of the Forestry Division. Instead of protecting the
commercial interests of timber land, its primary objective is to protect life and property.
This change was caused by the growing forest- urban interface within the State of
Arizona. Whereas most fires used to pose little or no threat to life or property, now
wildland fires are frequently close to homes or other structures that require protection.
Additionally, the State Forester is now able to respond to " all risk" non- fire activities,
which further broadens the objective of the Division. For example; the Forestry Division
has responded to several floods in Arizona in recent years, supported the recovery of the
Space Shuttle Columbia in Texas, assisted New York City following the 911 1 attacks, and
provided emergency assistance to Hurricane Katrina survivors.
Part of the reason for the change in the Forestry Division's mission is due to the change
in the timber markets; timber sales are not as prevalent as they once were due to the high
cost of harvesting compared to the low profits generated. Instead, the Division currently
pays for and assists with thinning projects on state and private lands through a variety of
grants or projects. This has further disconnected the relationship between State Trust land
management and the Forestry Division.
Arizona Center for Geographic Information, Coordination and Services
The ACGICSYso bjective is for all public agencies to effectively use the Geographic
Information Systems ( GIs) technology in the performance of their mandated duties and
to foster the cooperative development, maintenance and use of geographic information
resources among public agencies in Arizona. The objective has remained unchanged, but
current tasks have changed.
The use of GIs technology in Arizona has increased dramatically in recent years, due in
part to the success of this program. Public agencies have become more aware of the
benefits and uses of GIs technology and have invested in it. Therefore, while the
ACGICS used to focus on education about the benefits of the technology, it now can
focus on providing a forum and data warehouse for public agencies to share information
and data with public agencies. This program is primarily concerned with the development
and efficient use of the state's geo- spatial data infrastructure. Additionally, ACGICS has
secured federal funds to develop more uses for the technology, such as fire mapping.
2. A statement, to the extent practicable, in quantitative and qualitative terms of the
objectives of such agency and its anticipated accomplishments.
Trust Management
The agency has protected the value of the Trust and continues to generate large amounts
of revenue for the beneficiaries of the Trust. In FY 2007, the Land Department had
receipts of $ 332 million. This represents an increase of about 358% from FY 1997. In
addition to the Land Department revenue, the Treasurer distributed $ 35.6 million to the
beneficiaries in FY 2007. The Treasurer is responsible for investing the proceeds from
the sale of Trust assets, which are deposited into permanent funds. The book value of the
permanent funds was $ 1.9 billion at the end of FY 2007. This is a 136% increase from
FY 1997. In addition to the permanent fund receipts already deposited, the Department
has outstanding permanent receivables of almost $ 1 billion.
The Department has forecasted receipts of $ 443 million and $ 540 million in FY 2008 and
FY 2009 respectively.
Forestry Division
The Forestry Division has helped protect lives and property from thousands of wildland
fires. While the large fires make the evening news, over 95% of the fires suppressed by
the Division don't make any newscast because they were controlled at 100 acres or less.
The Division has trained over a thousand firefighters in local fire departments every year
for the last several years and has assisted nearly 200 local fire departments with supplies
and equipment. Seventy one rural communities have completed Community Wildfire
Protection Plans with the Division since 2000 and more than 7,000 homes have been
protected by Division sponsored fuels treatment projects.
Arizona Center for Geographic Information, Coordination and Services
The ACGICS provides access through the internet to over 50 GIs datasets. Over 1,400
sets per year are downloaded by users and around 50,000 users utilize the data through
Internet Map Services. It also trains about 180 government employees in GIs technology
each year. Overall, the use of GIs technology in Arizona has increased dramatically,
which is the objective of the ACGICS.
Who benefits from agency operations?
Trust Management
The beneficiaries of the Trust benefit the most from agency operations. The beneficiaries
include K- 12 education, the Universities, the Department of Corrections, the Department
of Juvenile Corrections, the Pioneers Home, the State Hospital, and the Arizona School
for the Deaf and Blind. In FY 2007, $ 1 58 million was distributed directly to the
beneficiaries and $ 195 million was deposited into the permanent funds, which will
generate future earnings. All citizens benefit from the operations of these agencies.
Furthermore, the economy benefits from the land being developed. The tax base is
expanded, jobs are created, and the city grows in a structured, planned manner.
Forestry Division
The entire state benefits from the agency's fire suppression activities. The Division is
responsible for fire suppression activities on all state lands and nearly 12 million acres of
unincorporated private lands in the state, which accounts for about 30% of the land in
~ r i z o nain d supports over 250 local fire departments when needed. Those that live on
these lands benefit the most from these activities, as do those who live in the rural- urban
interface, and are most threatened by wildland fires. Other citizens benefit when fires do
enter urban areas or other non- fire emergencies arise and overwhelm their local fire
departments capacity to respond effectively.
Additionally, local fire departments are able to purchase equipment and supplies from the
federal government through the Land Department and communities and landowners
receive forestry grants through the Land Department for thinning, forest health and other
projects. And the Forestry Division operates a Federal Excess Property Program to
acquire, refurbish and distribute firefighting engines and other equipment to local fire
departments.
Arizona Center for Geographic Information, Coordination and Services
Many public agencies use GIs technology. Their use of the technology was facilitated, in
part, by the ACGICS. For many years, ACGICSYse ducational activities facilitated the
initiation of many GIs system s throughout the state. ACGICS still provides information
exchange forums for public agencies as well as educational opportunities, but its greatest
benefit for agencies is the development and distribution of GIs data. Therefore, those
public entities along with those who benefit from those agencies benefit from the
ACGICS ' s activities.
3. An identification of any other agencies having similar, conflicting or duplicate
objectives, and an explanation of the manner in which the agency avoids duplication
of conflict with other such agencies.
Trust Management
No other agency manages State Trust land or sovereign state land. Part of managing the
Trust may place the Department in conflict with other state agencies. For example, the
Department has to consider the impact on the Trust of any use of the land by the
Department of Transportation, State Parks, or Game and Fish. In all cases, the
Department works with the agencies to find a solution that meets their needs and protects
the interest of the Trust.
The Department also works hard to protect the water rights associated with Trust land. In
some instances, this puts us in conflict with the Department of Water Resources. This
conflict is the same as for any other landowner in the state.
Forestry Division
No other agency is responsible for wildland fire suppression on state and unincorporated
private land. Local agencies are responsible for fire suppression within incorporated
areas.
The Department coordinates the suppression of wildland fires using Department staff,
inmate crews, local fire departments, federal agencies, and private entities.
The Department of Emergency and Military Affairs ( DEMA) can also be involved with
larger fires and other all- risk activities. The State Forester works closely with DEMA to
coordinate an appropriate response to emergencies. DEMA utilizes the State Forester's
dispatch center along with the numerous contracts and agreements the State Forester has
with local vendors to provide emergency supplies and equipment.
Arizona Center for Geographic Information, Coordination and Services
No other agency coordinates the use of GIs technology within the state.
4. An assessment of the consequences of eliminating the agency or of consolidating it
with another agency.
Is the agency needed to protect public health, safety and welfare?
Trust Management
The State Hospital, the Department of Corrections, the Department of Juvenile
Corrections, and the Pioneers Home are all beneficiaries of the Trust. The elimination of
the agency would impact the funding of these agencies that do impact the health, safety,
and welfare of the public. The extent of the impact depends on the agency and how much
of their funding comes from Trust revenues. For example, the Pioneers Home was fully
funded in FY 2006 with Trust revenues and would be greatly impacted by the elimination
of the agency, while Trust revenue is a relatively small portion of the Department of
Corrections' budget.
Forestry Division
The Division is responsible for fire suppression activities on all state lands and nearly 12
million acres of unincorporated private lands in the state, which accounts for about 30%
of the land in Arizona, and supports over 250 local fire departments when needed. This
protects the lives and property of those directly impacted as well as the air and water
quality and quality of life for those who live in Arizona's major metropolitan
communities and utilize those lands for recreation purposes.
Arizona Center for Geographic Information, Coordination and Services
The ACGICS facilitates the inclusion and sharing of geographic information used by
public entities. Most of the geographic information is used by agencies responsible for
the public's health, safety and welfare. Some of the information facilitated by the
ACGICS is state wide current aerial photography, elevation and slope data, city and other
administrative boundaries, public land ownership, demographic information, and many
other base GIs data sets. More and more public safety agencies are utilizing geographic
information systems to protect the health, safety and welfare of the public.
What would be the specific effects of eliminating the agency or any of its
functions?
Trust Management
Eliminating the Arizona State Land Department would cause 9.3 million acres of State
Trust land to not be managed. The current lessees and certificate of purchase holders
would not have a place to make payments. Additionally, no new leases or sales of State
Trust land would take place, which would essentially freeze the revenue for the
beneficiaries at its current level. Billions of dollars worth of land in the Phoenix and
Tucson metropolitan areas would remain undeveloped causing costly leap- frog
development, fewer jobs created, and less economic development, which in turn affects
the tax base to local governments and the state. The same impact would be felt around
most other towns and cities across the state that are surrounded by State Trust land.
Forestry Division
Wildland fires on state and unincorporated private land would not fall under another
agency's jurisdiction and local fire departments or other agencies that needed emergency
support for fire and non- fire emergencies would have to look elsewhere for help. Forest
health issues would not be addressed on those lands, local governments would not receive
forest health and fire hazard mitigation grants, and local fire departments would not be
able to purchase equipment fiom the federal government at discounted prices or acquire
excess federal property.
Arizona Center for Geographic Information. Coordination and Services
Geographic information may not be coordinated and shared between public agencies.
Public entities would have more difficulties in obtaining and utilizing geographic
information that is essential to smart and efficient planning as well as providing the
needed information to make other decisions. The overall costs for acquiring and utilizing
GIs data by Arizona's public agencies would increase.
Arizona State
Land Department
Department uses comprehensive selling and
leasing process, but should further enhance it
The sale of state trust lands is the
Department's key strategy for generating
revenues for trust beneficiaries such as
public schools, colleges, and universities.
The Department reports that it manages
an estimated 9.2 million acres of state
trust land- more than any other Western
state. Arizona is also the only state that
actively employs an ongoing strategy of
selling or leasing its state trust lands
through auctions to generate revenues
for the trust.
In the past 4 fiscal years, these auctions
have generated approximately $ 1.6 billion
in gross sales.
These auctions also generated nearly $ 2
billion in lease revenue that the
Department expects to collect over the
terms of the leases.
Complex sales~ leasep rocess- The
Department uses a comprehensive
process to help ensure that the sale or
lease of state trust land complies with
state laws and maximizes revenues.
There are five major steps in this
process:
Conceptual Planning+ Fie- Year
, Disposition Plan+ Site
Studies+ Appraisal + Auction
area is then divided into smaller parcels
for additional planning and sale or lease.
Once the conceptual plan is in place, the
Department identifies the parcels planned
for sale or lease in the next 5 years and
includes them on a Five- Year Disposition
Plan ( Plan).
Parcels placed on the Plan then receive
site studies. The Department typically
obtains an environmental assessment,
soil studies, and an American Land Title
Association survey. In addition, the
Department determines whether there are
cultural resources on the parcel. The
Department obtains various site studies
and information for a parcel to properly
value, and in some cases increase, the
value of a parcel. According to
developers, the site studies are needed
as they remove some of the risk and
uncertainty regarding parcels.
After the studies are completed, the
parcels must be appraised. Once the
appraisal is completed, the Department
submits the parcel to the Board of
Appeals for review and approval for sale
or lease.
Land Auctions
Gross Sales
F. o,, A . L*- - - / I L 4' 11!---\ ~ I S Cy~ eIa r HUCIIO~ S l ~ rIViI IIIIU~ ISJ
The first step in this process is 2004 24 $ 310.6
conceptual land use planning. 2005 17 254.5 1 conceptual plans are typical& created for 2006 21 544.3 I large areas of state trust land, such as 2007 - 20 $ 453.7
the 34,742 acres of state trust land in and
around the City of Peoria. The planned Total 82 $ 1,563.1
Prior to holding an auction, the Department must completed 7.5 months before a request was made
advertise the sale or lease in a newspaper of to post it on the Department's Web site.
general circulation nearest the location of the land Additionally, for one parcel, the request to post
to be sold and at the State Capitol for 10 most of the site studies on the Web site was
consecutive weeks. The Department also contacts submitted approximately 10 weeks prior to the
potential buyers such as builders, land developers, auction, which, according to developers, is not
and land brokers. enough time to adequately review the studies and
Take steps to improve appraisals- Most of the
parcels included in the Plan are appraised by
appraisers who have contracts with the State.
However, of the 35 appraisers on the state- wide
contract, the Department reported that only 14
have the qualifications the Department requires to
appraise state trust land. In addition, because of
the unique quality of some parcels, the Department
reported that some of these 14 may not have the
necessary expertise. For example, only 10 can
perform complex right- of- way appraisals.
Source: Photo of state trust land sold as part of the
Desert Ridge development courtesy of the The Department has had to use appraisers who do
Arizona State Land Department. not have a contract with the State to obtain some
appraisals. It has also had to use some appraisers
DEesptaabrtlmisehtin mt, e it ftryapmiceaslly O tr arkaensg easb- o- Autc 2c0 yredainrsg toto s ethlle a despite problems with their previous work. This has
parcel, but the time varies by parcel. Five parcels resulted in situations where the Department spent
that auditors reviewed took between 18 months additional time and resources to remedy problems
and 3 years to sell. with some appraisals, including one appraisal that
did not comply with appraisal standards.
fBraemcaeuss oer thraen Dgeesp afortrm ites nste hllainsg n aont de sletaabsliinsgh ed time Working with the Department of Administration,
process, it does not know how long each step of which is responsible for state- wide procurement,
the process should take. and the Department of Transportation, which
manages the State's appraisal contract, to obtain a
Provide site studies earlier- As explained above, new or supplemental state- wide appraisal contract
the Department obtains various studies on the and improve communication with the appraiser
parcels. However, it does not make these studies community could help address the Department's
available on its Web site when the studies have lack of qualified appraisers. Auditors contacted
been completed. For three parcel files that auditors nine appraisers who had registered to provide
reviewed, most of the site studies were completed appraisal services for the State but had never
about 4 to 8 weeks before department staff submitted a formal proposal needed to get on the
submitted a request to post the studies on the state- wide contract. Six of the nine said they were
Department's Web site. One site study was interested in providing services, but misunderstood
the State's contracting process.
T.. h Ee sDtaebplaisrhtm timenet sfrhaomuelds : or ranges for each step in the state trust land salellease process. . WProorvki dwei tpha trhcee lD setupdayrt minfeonrmts aotfi oAnd omnin itiss tWrateiobn s aiten da sT rsaonosnp oarsta itti oisn atova inilacrbelea. s e the number of appraisers
on the state- wide contract.
Department should further improve state trust
land management
Most state trust lands are leased for various uses,
including livestock grazing, agricultural use, and
mineral extraction.
Managing these leases is critical to ( 1) protecting
the State from liability, and ( 2) ensuring the land is
properly cared for and, where necessary, properly
reclaimed.
Department has improved lease languag- The
State paid more than $ 14.7 million from January
1989 to March 2007 for environmental claims on
state trust land. These claims included pesticide
contamination and petroleum spills left by lessees
on state trust land. Because some of the
Department's lessees had insufficient resources to
cover the clean- up costs or did not have
comprehensive insurance or bonding provisions in
their leases, it could not recover these clean- up
costs.
The Department
worked with the
State's Risk
Management
Office to improve
its lease language.
However, a March
2007 review by
Risk Management identified some additional
improvements that could be made in some leases.
Further, few of the Department's special land use
permits ( SLUPs) and mineral exploration permits
have comprehensive insurance or environmental
protection provisions. The Department reports
using grazing SLUPs rather than longer- term leases
near some urban areas to increase flexibility over
land use. As of May 2007, the Department reportec
that it had more than 560 SLUPS, including more
than 200 active commercial, 150 grazing, and 40
agricultural SLUPs. It also reported nearly 370
mineral exploration permits as of April 2007.
Critical leases should receive timely inspections-
Field inspections involve a thorough review of the
condition of the state trust land that is under lease.
These inspections identify potential health and
safety issues caused by the lessees, such as
Source: Photo courtesy of the Arizona State Land Department.
improper storage of equipment or chemicals, or
help to ensure proper reclamation of the land from
mining and sand and gravel operations.
Well inspections- The Department has inspected
hundreds of wells since fiscal year 2005, but more
than 200 high- risk wells remained to be inspected
as of January 2007. These wells present a higher
risk because of their age, depth, and/ or proximity to
known environmental sites.
Agricultural leases- The Department also inspects
expiring agricultural leases. Part of the purpose of
such inspections is to inventory state trust lands
that are leased for agricultural purposes and to
eventually establish lease rates that reflect the
market value of these lands. These inspections
provide valuable information about the condition of
the land. For example, an October 2006 inspection
of one lease revealed more than 100 drums posing
an environmental hazard to the land. The
Department has required the lessee to remove the
drums.
Source: Photo courtesy of the Arizona State Land Department.
Grazing Iease~ Botthh e Department adequately restore the land, department
and Risk Management noted that grazing staff reported that they have been
leases pose the least environmental risk. releasing the bonds without ensuring the
Inspections of grazing land permit the land has been adequately restored and
Department to make recommendations free of debris.
regarding range improvements,
preservation of cultural and Risk- based inspections and cross-archaeological
resources, and the effect training of staff- According to the
of rights of way on a lessee. Department, it lacks sufficient staff to
conduct inspections. The Department
Mineral leases- Despite conducting can help address this by focusing
other lease inspections, the Department inspections on high- risk leases. Risk
reported that it has not conducted Management and the Department stated
inspections on 382 canceled or expired that grazing leases have few risks, while
hard rock and sand and gravel leases. mineral and agricultural leases have
Most of these leases were canceled or higher risks.
expired several years ago. However,
inspections are needed to see if the land The Department should also cross- train
has been properly reclaimed and to inspection staff. For example, range
ensure no safety or environmental risks managers could be further trained to
assess the adequacy of mineral lease
reclamations.
In addition, the Department reported that
it has not been inspecting permits issued Documenting inspections- Although
for mineral exploration. As of April 2007, department staff reported that they
the Department reported that it had perform field inspections, not all
nearly 370 active permits. Although many inspections are documented. For
of these permits have reclamation bonds, example, staff reported failing to
which allow the Department to access document a total of 50 agricultural field
bond money if the permittee does not visits in 2006.
The Department should: . Continue to work with Risk Management to improve leases. . Revise SLUPs and mineral exploration permits to include environmental and
.. CiEnsrsotuasrbsal- nitsrchae ian p srriotsavkfi- fs. b ioansse. d inspection approach.
' REVISED # 3 REVISED # 3 REVISED # 3
Interim agendas can be obtained via the Internet at http: llwww. azleg. state. az. usllnterimCommittees. asp
ARIZONA STATE LEGISLATURE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND HOUSE COUNTIES,
MUNICIPALITIES AND MILITARY AFFAIRS COMMITTEE OF REFERENCE
Date: Thursday, November 8,2007
Time: 2: 00 P. M. or Upon Adj. of Senate NRRAlHouse WA COR
Place: SHR I
AGENDA
1. Call to Order
2. Opening Remarks
3. Arizona State Land Department Performance Audit
Presentation by Auditor General
Response by State Land Department
Public Testimony
Discussion
Recommendations by the Committee of Reference
4. Adjourn
Members:
Senator Chuck Gray, Co- Chair
Senator Amanda Aguirre
Senator Marsha Arzberger
Senator Robert Blendu
Senator Karen Johnson
Representative John Nelson, Co- Chair
Representative Manuel Alvarez
Representative Lucy Mason
Representative Marian McClure
Representative Tom Prezelski
Persons with a disability may request a reasonable accommodation such as a sign language interpreter, by contacting the
Senate Secretary's Office: ( 602) 926- 4231 ( voice). Requests should be made as early as possible to allow time to arrange the accommodation.
Page 1 of 1
ARIZONA STATE LEGISLATURE
Forty- eighth Legislature - First Regular Session
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE COUNTIES, MUNICIPALITIES AND MILITARY AFFAIRS
COMMITTEE OF REFERENCE
Minutes of Interim Meeting
Thursday, November 8,2007
Senate Hearing Room 1 - 2: 00 P. M. or Upon Adj. of Senate NRRAIHouse WA COR
Chairman Gray called the meeting to order at 2: 26 p. m. and attendance was noted by the
secretary.
Members Present
Senator Chuck Gray, Co- Chair
Senator Marsha Arzberger
Senator Karen Johnson
Representative John Nelson, Co- Chair
Representative Marian McClure
Representative Tom , Prezelski
Members Absent
Senator Amanda Aguirre
Senator Robert Blendu
Representative Manuel Alvarez
Representative Lucy Mason
OPENING REMARKS
Chairman Gray announced that the meeting will begin even though a quorum is not yet present.
He stated that no votes will be taken until a quorum is reached.
ARIZONA STATE LAND DEPARTMENT PERFORMANCE AUDIT
Megan Gnagy, Senate NRRA Analvst, informed the committee of the authority and mission of
the State Land Department.
Presentation by Auditor General
Dale Chapman, Performance Audit Manager, Auditor General's Office, presented the results of
his performance audit of the Arizona State Land Department ( Attachment 1):
1. the Department should enhance its selling and leasing process
2. the Department should improve state trust land management
Senator Arzberger asked if posting site studies on the website sooner was intended to market
land that is planned to be sold; Mr. Chapman replied in the affirmative.
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE COUNTIES, MUNICIPALITIES AND MILITARY AFFAIRS
COMMITTEE OF REFERENCE
November 8,2007
Senator Arzberger asked him to explain high- risk wells; Mr. Chapman replied that 650 of the
3,000 wells are deemed high- risk for reasons of age over 50 years, depth, or proximity to
environmental sites.
Senator Arzberger asked if the wells were not considered a capital improvement and therefore
owned by the lessee; Mr. Chapman explained that they are considered an improvement on the
land and at the end of the lease would be owned by the State.
Senator Arzberger asked why it is important to inspect wells in use and under lease; Mr.
Chapman replied that the Department identified these as in need of inspection.
Senator Arzberger stated that it is her opinion that it is the farmer's obligation to fix the well and
she is unclear why the State is spending its time inspecting these wells.
Chairman Gray asked for an example of " high risk"; Mr. Chapman explained that a well that is
improperly capped would be high risk.
Senator Johnson asked about the gaps in the inspections; Mr. Chapman replied that in the case
of mineral inspections, there are not enough staff members to do those.
Response by State Land Department
Mark Winkleman. Arizona State Land Commissioner, explained that the auditors did a very
thorough job over many months, and that his department has begun to address their
recommendations.
Representative Prezelski asked what has been done to improve comprehensive planning; Mr.
Winkleman explained that the fourteen agencies on the growth cabinet meet regularly and the
relationship between Arizona Department of Transportation ( ADOT] and the Land Department
is perhaps the best it's ever been.
Representative Prezelski asked about the apparent eagerness of the Department to sell State Trust
Land and inquired if leasing would ensure revenue flow; Mr. Winkleman replied that
homeowners want to own their land, so a general rule is to lease commercial land but to sell
residential land.
Representative McClure asked if they have started to implemeht the Auditor General's
recommendations; Mr. Winkleman replied that some recommendations will be difficult to
implement due to resource constraints. He did indicate that the'DepartmentYs shortage of
appraisers will be addressed immediately.
Representative McClure suggested that site studies be posted on their kebsite immediately; Mr.
Winkleman replied that they do now have a webmaster which will help.
Cochairman Nelson asked about the time frame required to sell or lease; Mr. Winkleman
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE COUNTIES, MUNICIPALIT~ ES AND MILITARY AFFAIRS
COMMITTEE OF REFERENCE
2 November 8,2007
explained that this is not an easy process and his department tries to maximize the value, as a
realtor would. He explained that they create a plan for taking property to auction and the many
surveys and appraisals can take months, even years, prior to 2 % months of advertising.
Chairman Gray asked about conflicting renewal of a grazing lease and if the expense outweighs
the value of the land; Mr. Winkleman explained that when a lease expires, someone else can
come in to try to get the laqd and the result is conflicting applications; he added that this process
is mandated statutorily.
Cochairman Nelson asked: if the department has ever granted environmental leases with terms
based on environmental responsibility or shepherding the land; Mr. Winkleman replied that
there is one instance in Tucson with a mitigation lease that does not allow development to
counteract a proximate problem. Discussion ensued about doing that with grazing leases and
renewing without bidding.
Chairman Gray asked if, with regard to the term limits of legislators, the typical sunset extension
of ten years might be too long, and asked Mr. Winkleman to comment on that; Mr. Winkleman
replied that it takes most of the eight years of a legislator to educate them, but that with the
constitutional requirements, his department will be in existence for awhile.
Debra Davenport. Auditor General, commented that her department has some difficulty keeping
up with the sunset audits done every ten years, so a reduced interval would pose a hardship that
would require an increased budget for her.
Chairman Gray asked the effect if the audit was not mandated for each sunset interval less than
ten years; Ms. Davenport replied that it still would be tough to accomplish.
Mr. Winkleman pointed out that their audit took over a year and that his is not a large agency;
he added that he prefers the ten year sunset.
Discussion ensued among the members about the sunset interval. Cochairman Nelson stated that
it would be best to stay with ten years and that any agency can be pulled in at any time for
review. Representative McClure and Senator Arzberger each stated that they concur.
Senator Johnson stated that she prefers shorter sunset intervals to ensure Legislative oversight.
Chairman Gray echoed Senator Johnson, stating that the State Land Department is a trust which
entails more oversight and in his opinion a five year sunset would be prudent.
Recommendations by the Committee of Reference
Cochairman Nelson moved that the Senate Natural Resources and Rural Affairs
and House Counties, Municipalities and Military Affairs Committee of Reference
recommend the continuation of the Arizona State Land Department for ten years.
The motion carried by a voice vote.
Chairman Gray directed staff to draft Legislation to implement the recommendation.
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE COUNTIES, MUNICIPALITIES AND MILITARY AFFAIRS
COMMITTEE OF REFERENCE
3 November 8,2007
Without objection, the meeting adjourned at 3: 28 p. m.
( Original minutes, attachments and audio on file in the Office of the Chief Clerk; video archives
available at http:// www. azleg. gov/)
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE COUNTIES, MUNICIPALITIES AND MILITARY AFFAIRS
COMMITTEE OF REFERENCE
4 I November 8,2007
. . Nme
Janet Najwlitano Gav Ohon
Governor Superintendent
' 11.. , ' . . . .
October 3 1,2007
Megan Gnagy, Legislative Research Analyst
Natural Resources and Rural Affairs Committee
Arizona State Senate
1700 W. Washington
Phoenix, AZ 85007
Dear Ms. Gnagy,
In response to your request regarding the Arizona State Land Department, 1 can share with you the
Arizona Pioneers' Home's experience.
The Arizona State Land Department oversees three land trusts that benefit the Arizona Pioneers' Home
[ Hospital of Disabled Miners ( 100% beneficiary), Miners Hospital ( 100% bel~ eficiary), and State
Charitable, Penal and Reformatory Institutiorrs ( 50% beneficiary)]. In this, the interest on revenue
generated from said trusts represents 81 % of the appropriations for the ongoing operations of t. he Arizona
Pioneers' Home for Fiscal Year's 2008 and 2009. Historically, said trusts have represented the majority
percentage of appropriations for operations.
In 2006, I approached the Arizona State Land Department to inquire of land Trusts that the Arizona
Pioneers' Home benefits from, and the impact that Propositions 105 and 106 may have. In response, I
received the information in both a quick and thorough fashion. Additionally, in response to both
prelirniilary and follow- up questions for said information, Mark WmMeman made time to meet with me
so that all of our questions were answered completely.
In conclusion, I feel that the Arizona Pioneers' Home's experience and interaction with the Arizona State
Land Department has been professionid, responsive and thorough. I fully support the Arizona State Land
Department in its cwrent operational capacity, and its futuristic vision of trust lands and necessary
reforms,
If you have any further questions, please feel free to contact me directly.
Superintendent
4125 E. Gold Dust Avenue
Phoenix, Arizona. 85028
Telephone: 602- 494- 7512
Facsimile: 602- 482- 3713
November 30,2007
Senator Chuck Gray
Representative John Nelson
Co- Chairs, Senate Natural Resources And Rural Affairs And House Counties,
Municipalities And Military Affairs Committee of Reference
Re: Arizona State Land Department Performance Audit
Gentlemen:
Thank you for the opportunity to present to you some thoughts on the occasion of
your committee's review of the State Land Department's performance audit. I am not
experienced in your procedure, so I hope that these thoughts will not be contrary to any
procedure which I should have followed to get them in front of you.
I commend the legislature for its process of periodically reviewing governmental
agencies' performance, and determining on a regular basis those agencies' continued
relevance and effectiveness. It is a valuable process, at least as seen by citizens who do
not interact with those agencies on a regular basis.
In the matter before you, it is clear that Arizona has been given a vast quantity of
land by the Federal Government, in trust, primarily for educational uses. Congress
understood the concept of " trust" and did not use that term accidentally. The State of
Arizona itself became the trustee of the lands for the beneficiaries. In accepting that
relationship, I believe that the State undertook the same fiduciary duty as is undertaken
by a private trustee, perhaps of a charitable trust. By election, that duty is cast upon you.
I have the honor of serving on the board of a charitable trust, and have done so for
a number of years. I have learned that it is my responsibility to use reasonable efforts to
maximize the assets of the trust by taking actions which would, consistent with prudent
safety measures, assure a continued value for the anticipated beneficiaries of the trust. In
other words, the trust assets must be invested prudently.
In some investments it is possible to utilize a passive management style. For
example, one could invest in various stock or bond index funds, and by judicious asset
allocation, perhaps satisfy both the safety and income tests. However, in the case of real
estate, passive management is the recipe for disappointment.
Page 2
As a result, it appears to me that the State must have an active manager of its
Trust lands. It cannot fulfill its fiduciary duty just letting the lands sit. Accordingly, the
State Land Department, in some form, must exist and cannot sunset.
In my work as a trustee, I have developed a number of working principles that I
believe apply here:
If you want to improve performance on a Trust's fund in an area where
active management is best, hire the best managers you can find;
Provide the selected managers with the tools they must have to do their
job; although those tools cost money, they produce superior returns which overshadow
the costs of the tools;
Find a way to incentivize the manager to produce- wherever possible,
reward increases to the trust's bottom line; and
Take a long- term horizon in the investment, not reacting too much to
short- period ups or downs, because the objective itself is very long term survival.
Use of these principles leads me to suggest that it is critical to, as soon as
reasonably possible, review the means of financing this Trust's management. The recent
Arizona Town Hall recommended, by a heavy majority, that a form of enterprise fund be
adopted whereby the State Land Department is funded by the trust, just as any other trust
manager is funded by the trust helshe manages.
While I am a lawyer who does real estate transactional work, I do not personally
deal with the department, and have only anecdotal knowledge of its operations.
However, I have heard often enough the stories of well- fimded developers having the
means to exhaustively research a particular parcel, where the department doesn't have the
funds to hire the experts needed to properly review it. In other words, this manager does
not have the needed tools.
I believe that the State owes its future generations a fiduciary duty of properly
managing and preserving the trust asset, and strongly urge that you take enlightened
action to do so.
Thank you for allowing me to present my thoughts to you.
Michael V. Mulchay