ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
state land; leases and
improvements
Purpose
Requires the successful
bidder on a conflicting lease application for state land to pay one year of
rent before the lease is issued, and requires all lessees to maintain
improvements on leased state land.
The State Land Department
(Department), established in 1915, has authority over all state trust lands.
The mission of the Department is to manage the trust lands and maximize revenue
for the beneficiaries. State land is
classified according to the suitability of the land for specific purposes,
including grazing, mining and commercial development.
In 1997, the Department
refused to consider a grazing lease application because the applicants did not
intend to graze livestock on the land.
Instead, the applicants sought a restorative use of the land, which is
allowed under the Department’s grazing classification. The applicants appealed the Department’s
action and the Arizona Supreme Court found for the plaintiffs on November 21,
2001 (Forest Guardians and Jonathan D.
Tate v. J. Dennis Wells and the Arizona State Land Department). The Arizona Supreme Court concluded that the
Department may not reject lease applications for grazing land simply because
restoration or preservation of the land is proposed by the applicant.
S.B. 1274 requires the
successful bidder on a conflicting lease application for state land to pay one
year of rent before the lease is issued by the Department. The bill also requires lessees to maintain
improvements on leased land.
There is no known fiscal
impact to the state general fund relating to the provisions of this bill.
Provisions
1. Requires, for leases with conflicting bids, that the successful bidder pay one year of rent to the Department before the lease is issued.
2. Requires the successful bidder to reimburse the previous lessee for improvements before the lease is issued by the Department, unless all parties agree to an extended payment schedule.
3. Allows the Department to offer a lease to the next best bidder if one full year of rent or the value of improvements is not paid by the successful bidder within 30 days of the Department’s request.
4. Clarifies that the Department must approve the bidder with the best equity to the lease when deciding between competing bids.
5. Requires a lessee of state lands to maintain all improvements pertinent to the lease, and prohibits a lessee of state lands from removing any improvements without written permission from the Department.
6. Stipulates that, for leases with conflicting bids, the lessee must pay the amount of annual rent that the lessee bid unless a reappraisal or rental adjustment requires a higher amount.
7. Makes technical and clarifying changes.
8. Provides for a general effective date.
1.
Requires
the successful bidder on a state land lease to pay for one year of rent and the
value of improvements before the lease is issued.
2.
Requires
lessees to maintain improvements pertinent to the lease.
3.
Makes
technical and clarifying changes.
NRAE 3/14/02 DPA 6-1-1-0
Prepared by Senate Staff
March 18, 2002