ARIZONA STATE SENATE
Phoenix, Arizona
state land; leases and
improvements
Purpose
Requires the State Land
Department to appraise improvements in relation to the production unit of state
land.
Background
When a parcel of state trust
land is transferred to a new lessee, the new lessee must reimburse the previous
lessee for the value of any nonremovable improvements on the land. If the two lessees disagree on the value of
improvements, either lessee may request a binding appraisal from the State Land
Department (Department). The
Department currently appraises improvements based on their condition, current
value and suitability for the uses of the land containing them.
S.B.
1274 requires the Department to appraise the value of improvements in relation
to the production unit of land, in addition to the other criteria for
appraisal.
Provisions
1. Requires the Department, when appraising improvements, to consider the value of the improvement in relation to the production unit.
2. Clarifies that the Department, when deciding between competing lease applications, must consider who has the best equity to the lease, not only who has the best right to the lease.
3. Makes technical and clarifying changes.
4. Provides for a general effective date.
Prepared by Senate Staff
February 11, 2002