A. Except as otherwise provided in section 37-323, if a lessee, a permittee or other person having a legal interest in state lands, other than a holder of a certificate of purchase, desires to construct or make improvements upon the lands, he shall first file with the department an application for permission to construct or make the improvements unless improvement authorization is contained within the terms of the lease. The application shall be allowed or rejected as the best interest of the state requires as determined by the department. Unless permission is granted by the department, the applicant shall not be entitled to reimbursement or compensation for improvements placed upon the state lands. Upon expiration or cancellation of the lessee’s lease or permit, improvements placed on the land without approval shall be forfeited and become the property of the state.

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Terms Used In Arizona Laws 37-321

  • Department: means the state land department. See Arizona Laws 37-101
  • Improvements: means anything permanent in character which is the result of labor or capital expended by the lessee or his predecessors in interest on state land in its reclamation or development, and the appropriation of water thereon, and which has enhanced the value of the land. See Arizona Laws 37-101
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • State lands: means any land owned or held in trust, or otherwise, by the state, including leased school or university land. See Arizona Laws 37-101
  • Writing: includes printing. See Arizona Laws 1-215

B. The owner of improvements placed upon state lands by a lessee, a permittee or any other person having a legal interest in state lands shall prior to December 31, 1965, unless such time is extended by the department, report to the department in writing the description of the improvements, their location and the actual current cash value thereof. The improvements reported as provided by this subsection shall be allowed or rejected as the best interest of the state requires as determined by the department.

C. Improvements placed on state land granted to the territory of Arizona by the act of Congress approved January 27, 1894, or placed on land to which the state gains title by any determination, by a person who is not a lessee or permittee may be reported to the department after the person becomes a lessee or permittee. The improvements shall be allowed or rejected as the best interests of the state require, as determined by the department.

D. The department may, from time to time, but not more frequently than once a year, require from any lessee or permittee or the person having a legal interest in state lands information concerning the improvements. Failure to make the report shall, in the discretion of the department, subject the improvements to forfeiture to the state.