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2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-294 - Recovery of lands unlawfully held

37-294.
Recovery of lands unlawfully held
A. Nothing in this article shall confer any rights upon occupants or lessees of lands who have not executed and received a lease under the provisions of this article.
B. The state land department shall examine into the rights of all persons in possession of state lands,  or improvements thereon,  or claiming compensation for improvements on the lands. If it is determined that any person is unlawfully in possession of such lands,  or is unlawfully claiming compensation for improvements,  the department shall bring an action to recover possession of the lands and improvements,  or otherwise establish the rights of the state.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-295 - Disposition of long-term commercial lease prepayments; prepayment fund

37-295.
Disposition of long-term commercial lease prepayments;  prepayment fund
A. If the department receives prepayments of rent paid from long-term commercial leases under any provision of this chapter,  the monies received shall be transmitted to the state treasurer for investment in a prepayment fund for the appropriate beneficiary. Any interest earned from the investments of monies in the prepayment fund shall be credited to the prepayment fund. For each lease that is prepaid,  the department shall give notice to the treasurer of the amount of rent annually due to the beneficiary according to a schedule maintained by the department. The treasurer shall remit to the department an amount from the prepayment fund that is equal to the amount stated in the notice. The department shall transfer the remittance to the credit of the fund of the appropriate beneficiary.
B. For leases entered into through December 31,  2000,  the discount rate for prepayments made pursuant to subsection A shall be no greater than the current prevailing long-term interest rate established by the state treasurer on the date the lease is approved by the board of appeals.
C. For leases entered into from and after December 31,  2000,  the discount rate for prepayments made pursuant to subsection A shall be no greater than the twenty-four month average yield for a fixed income security with a ten year maturity or average life which is eligible for purchase by the permanent fund managed by the state treasurer. The twenty-four month average calculation ends on the last day of the month before the month in which the board of appeals approves the lease.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-301 - Procedure for protesting auctions

37-301.
Procedure for protesting auctions
A. Any person who desires to protest any of the terms of a proposed auction for the sale of state land,  the lease of state land,  or the sale of natural products of state land shall file a written protest with the department within thirty days after the first day of publication of the terms of the proposed auction. All protests shall state specifically the term or terms of the auction to which objection is made and state specifically the reasons for each objection. An objection not specifically stated or timely made is deemed to be waived.
B. At his discretion,  the commissioner,  on ten days' notice,  may order a hearing on any protest. Whether or not a hearing is held,  the commissioner,  not less than seven days before the auction date,  shall enter a final order determining the validity of the protests. If the commissioner determines that a protest is correct,  the pending auction shall be cancelled. If the commissioner determines that the grounds of protest are incorrect,  the auction shall proceed at the time and place for which it was noticed.
C. Notwithstanding section 37-133,  the commissioner's order granting or denying a protest is subject to review only through a special action to the court of appeals or supreme court,  served on the department within twenty days after the commissioner's order is entered. Notwithstanding any law or rule applicable to other orders of the commissioner,  no motion for rehearing is required before seeking review of an order of the commissioner rejecting a protest to the terms of an auction. Any rehearing motion shall be filed within ten days of the entry of the commissioner's order. Unless otherwise ordered by the commissioner,  the filing of a motion for rehearing does not extend the time for seeking review of the commissioner's order granting or denying a protest. Unless the commissioner orders a rehearing within five days after the rehearing motion is filed,  the rehearing motion is deemed denied. If a special action review is not sought within twenty days after the commissioner enters his order granting or denying a protest,  or if the commissioner's order is sustained on special action review and the decision becomes final,  no further action contesting the legality of the terms of the auction may be brought.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-311 - Definitions

37-311.
Definitions
In this article,  unless the context otherwise requires:
1. " Conservation"  means protection of the natural assets of state trust lands for the long-term benefit of the land,  the trust beneficiaries,  lessees,  the public and the unique resources that each area contains,  such as open space,  scenic beauty,  protected plants,  wildlife,  archaeology and multiple use values.
2. " Existing lessee"  means any of the following:
(a) The lessee who is entitled to the use of state lands at the time the lands are considered for classification and are classified as trust lands suitable for conservation purposes.
(b) An existing lessee who continues to lease the trust lands after classification as trust lands suitable for conservation purposes.
3. " Open space"  means land that is generally free of land uses that would jeopardize the conservation and open space values of the land or development that would obstruct the scenic beauty of the land.
4. " Trust land"  means any land that is owned or held in trust by this state.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-312.01 - Access to and use and enjoyment of private lands

37-312.01.
Access to and use and enjoyment of private lands
Notwithstanding any other provision of this article,  the reclassification of trust lands as suitable for conservation purposes shall not restrict or unreasonably limit access to or use or enjoyment of private lands. Any lease or sale of land pursuant to this article shall include a condition requiring that permanent access to and use and enjoyment of private lands be allowed.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-315 - Withdrawing trust lands suitable for conservation purposes by department without lease or sale

37-315.
Withdrawing trust lands suitable for conservation purposes by department without lease or sale
A. Notwithstanding any other law,  when it is in the best interest of the trust,  the commissioner may withdraw trust land suitable for conservation purposes from lease or sale for development purposes to allow qualifying lessees or buyers to complete the plans and arrangements necessary to accomplish the purposes of the classification and plan of the lands.
B. The commissioner shall prescribe a termination date,  of at least three but not more than five years,  after which the lease or sale may proceed. Within one year before the expiration of the withdrawal period the commissioner,  after a public hearing,  may extend the withdrawal period for not more than one additional three year period if significant progress is evident in the effort toward acquiring the land.
C. The commissioner's decision under this section is subject to appeal pursuant to section 37-214.
D. During a withdrawal period under this section:
1. The commissioner may allow existing lessees of the land to continue their normal and customary use of the land. The commissioner may renew existing leases pursuant to section 37-291.
2. The commissioner may authorize a new use of the land that is consistent with the classification.
E. If the commissioner withdraws trust lands from lease or sale pursuant to this section,  or fails to lease or convey trust lands suitable for conservation purposes as provided by this article within three years after classification,  and the trust lands are subject to a current planning permit under article 5.1 of this chapter,  the commissioner shall reimburse the holder of the permit pursuant to section 37-338.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-317 - Subordination to constitution and enabling act

37-317.
Subordination to constitution and enabling act
This article shall not be construed to replace or supersede the responsibilities and obligations of the state land department and the state land commissioner under article X,  Constitution of Arizona,  and section 28 of the enabling act of June 20,  1910.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-321 - Permission required for person other than holder of certificate of purchase to make improvements; forfeiture for failure to obtain permission; report of improvements

37-321.
Permission required for person other than holder of certificate of purchase to make improvements;  forfeiture for failure to obtain permission;  report of improvements
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.
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.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-322 - Basis for appraisal of improvements; reimbursements; amortization; reimbursement for irrigation or district assessments and levies; limitation

37-322.
Basis for appraisal of improvements;  reimbursements;  amortization;  reimbursement for irrigation or district assessments and levies;  limitation
A. Improvements placed on state lands prior to June 25,  1952 shall be appraised in accordance with the law in effect at the time the improvements were made. Improvements placed upon state lands after June 25,  1952,  including water rights,  when the owner thereof is entitled under law to reimbursement for the improvements,  shall be appraised as follows:
1. Improvements,  except eradication of noxious growth on grazing lands,  and irrigation or other district assessments,  shall be appraised at the time the appraisal is made on the following basis:
(a) The condition of the improvements.
(b) The current value.
(c) Their suitability for uses ordinarily made on the lands on which they are located at the time the improvements were made.
2. Reimbursement for the cost of eradication of noxious growth on grazing lands,  shall be amortized at the rate of ten per cent per annum.
3. Reimbursement for irrigation or other district assessments and levies which have been legally assessed and levied against state lands,  and the interest of the holders of such lands,  whether under lease or permit,  shall be limited to that portion of the assessments and levies which have been properly and legally assessed and levied to defray such district or project construction charges.
B. Pumps especially designed for the well in which placed shall be reimbursable improvements and shall be appraised as other reimbursable improvements.
C. The cost of improvements for clearing and leveling land for agricultural purposes shall remain as a credit for the lessee in case of sale of the land. Any reimbursement for the cost of clearing and leveling land used for agricultural purposes remaining unamortized on the effective date of this section shall not be amortized,  but such unamortized balance shall remain as a credit for the lessee in case of sale of the land.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-322.01 - Reimbursement for nonremovable improvements by succeeding lessee of lands not subject to auction; failure to pay; penalty

37-322.01.
Reimbursement for nonremovable improvements by succeeding lessee of lands not subject to auction;  failure to pay;  penalty
A. A lessee of state lands that are not subject to lease by auction shall be reimbursed by a succeeding lessee for improvements placed on the lands which are not removable.
B. If the retiring lessee and the new lessee do not agree upon the value of the improvements,  or if there is no amortized value established for the improvements,  either party may file with the state land department an application for appraisal of the improvements. If a lease is granted pursuant to section 37-284,  a request for an appraisal shall be made more than ninety days before the expiration of the lease. Thereafter an appraisal of the improvements shall be made pursuant to section 37-322. For agricultural and grazing leases,  the appraiser shall consider the following in determining the value of the improvements:
1. The impact to surrounding state land.
2. Replacement cost minus physical and functional obsolescence as it relates to agriculture and grazing.
3. Any other factors that the commissioner determines to be relevant.
C. Upon making the appraisal,  the department shall give notice of the amount by certified mail to each person interested in the appraisal. The notice shall require that the new lessee pay to the department for the prior lessee the entire amount of the appraisal before issuance of the lease unless all parties agree to an extended payment schedule. If the improvements were placed on state lands subject to a commercial lease and if the commissioner determines that the value of the improvements is so great that it inhibits the commissioner's ability to lease the property at fair market value,  the commissioner may require reimbursement of the improvements pursuant to a payment schedule of not more than five years.
D. If the improvements are not paid for as agreed in an extended payment schedule,  the succeeding lessee shall not be permitted to sell,  assign or transfer his lease nor sell,  assign or remove any improvements whatever from the land until the entire amount of the appraised value of the improvements has been paid. Upon default the succeeding lessee shall be subject to the same penalties and liabilities as provided by section 37-288 for failure to pay rents,  including a cancellation of the lease.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-322.02 - Payment by purchaser or succeeding lessee for improvements on auctioned land

37-322.02.
Payment by purchaser or succeeding lessee for improvements on auctioned land
A. When state lands on which there are improvements for which the owner is entitled to be compensated are offered at an auction for sale or lease,  and the purchaser or succeeding lessee is not the owner of the improvements,  the purchaser or succeeding lessee shall pay the department at the time of the auction ten per cent of the appraised or remaining unamortized value of the improvements and the balance within thirty days thereafter. The department shall pay the owner of the improvements the payments collected.
B. If the department determines that the amount at which the improvements are appraised is so great that it hinders competitive bidding at an auction for the land,  the department may sell the improvements on installments payable ten per cent upon announcement of the successful bidder,  fifteen per cent thirty days thereafter and fifteen per cent annually thereafter for five years,  together with six per cent interest on the balance remaining unpaid,  which amount,  until paid,  shall be a lien upon the purchaser's or succeeding lessee's interest in the land.
C. The purchaser or succeeding lessee shall at all times keep the insurable improvements insured for the benefit of the owner of the improvements.
D. Payments shall be made at the time and in the manner prescribed for payments on the land or lease,  and any default in the payments for improvements shall be deemed a forfeiture in the payments for the land or the lease and of all payments made.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-322.03 - Improvements on state lands; taxation; disposition on termination of lease; statement of improvements

37-322.03.
Improvements on state lands;  taxation;  disposition on termination of lease;  statement of improvements
A. A lessee of state land shall maintain all improvements that are pertinent to the lease in serviceable condition for the term of the lease and shall not remove any improvement without written authorization from the department except as provided by subsection B. All improvements placed upon state land shall,  until they become the property of the state,  be subject to assessment for taxes in the name of the owner,  as other property.
B. Within sixty days before or ninety days following the expiration of a lease of state land,  the lessee may remove from the land the lessee's removable improvements,  if the removal will not injure the land. Wells,  embankments or dams designed for development,  storage or conservation of water shall not be taken away,  destroyed or injured,  but shall remain as appurtenant to the land and shall be removed,  destroyed or altered only by authority of the department.
C. The retiring lessee may,  with written authority from the department,  and within the time for removal,  sell the lessee's improvements to the succeeding lessee.
D. At the commissioner's request,  a lessee shall file with the department a sworn statement setting forth the character of the improvements and their actual cash value.
E. If an improvement remains on the land after ninety days after the lease termination,  the department may remove,  destroy or otherwise dispose of the improvement if the department reasonably determines that any of the following apply to the condition of the improvement:
1. The improvement must be repaired before it can be used for the purpose for which it was placed on the land,  and the cost of repairs would equal or exceed the value of the repaired improvement.
2. The improvement must be repaired before it can be used for the purpose for which it was placed on the land and the value of the improvement before repair is equal to or less than the cost of disposing of the improvement.
3. The existence of the improvement in its current condition is unsafe,  poses an unreasonable risk of injury to persons or property,  violates an applicable provision of law or is a nuisance.
4. The improvement is not authorized by the department and is not in the best interest of the trust.
F. Before disposing of an improvement pursuant to subsection E of this section,  the department shall send written notice to the former lessee,  by certified mail,  return receipt requested and addressed to the lessee s last address of record with the department,  that:
1. The department intends to remove,  destroy or otherwise dispose of the improvement at any time beginning thirty days after the lessee s receipt of the notice.
2. The department s determination pursuant to subsection E of this section is appealable pursuant to section 37-215.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-322.04 - Accounting for improvements which become property of state

37-322.04.
Accounting for improvements which become property of state
When improvements on state lands become the property of the state,  they shall be deemed to belong to the fund for the purpose of which the land was granted. Any monies subsequently received for the improvements shall be deposited in the fund in which the monies received from the sale or lease of the land are deposited. When any money has been paid from the general fund for the improvements such improvements shall not be deemed to belong to any special fund,  and if the land is subsequently sold or leased,  the purchaser or lessee shall reimburse the state for the improvements,  and the amount paid from the general fund for the improvements shall be returned to that fund. Any surplus remaining after reimbursing the fund shall belong to the fund for the purpose for which the lands were granted.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-323 - Permission required for construction on floodplains; criteria

37-323.
Permission required for construction on floodplains;  criteria
A. A lessee,  permittee or other person having a legal interest in state lands located in a floodplain as defined in section 48-3601 other than a holder of a certificate of purchase shall not construct or make improvements or any other development upon the lands without obtaining the written permission of the department.
B. The department may grant permission for any proposed construction,  improvement or development under this section after consideration of the following:
1. The value of the construction,  improvement or development to this state if this state were required to purchase it.
2. The effect the construction,  improvement or development would have on other landowners or land occupiers.
3. Whether the proposed construction,  improvement or development is in compliance with local floodplain regulations promulgated under title 48,  chapter 21,  article 1.
4. Whether the proposed construction,  improvement or development is consistent with local floodplain management goals.
5. The requirements for lands held in trust by this state.
6. Possible construction,  improvements or development as an alternative to that proposed.
7. Any other reasonable and relevant criteria determined by the department.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-331 - Definitions

37-331.
Definitions
In this article,  unless the context otherwise requires:
1. " Conservation"  has the same meaning prescribed in section 37-311.
2. " Existing lessee"  means any of the following:
(a) The lessee who is entitled to the use of state lands at the time such lands are considered for classification and are classified as urban lands suitable for urban planning.
(b) An existing lessee who continues to lease urban lands following classification as urban lands suitable for urban planning.
(c) A person who leases urban lands following classification as urban lands suitable for urban planning.
3. " Local planning authorities"  means any city,  town or county in which urban lands suitable for urban planning are located. When urban lands that are located in an unincorporated area of a county are designated as urban lands suitable for urban planning,  a city or town whose corporate boundaries are three miles or less from these lands shall be considered to be a local planning authority,  together with the governing body of the county in whose jurisdiction the lands are located.
4. " Planning contractor"  means the person or persons who contract with the department to formulate a development or secondary plan for urban lands suitable for urban planning.
5. " State general plan"  means a policy document that addresses appropriate uses for state lands,  provides a general basis for a development plan and makes policy statements related to the use and management of state lands.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-331.01 - Designation of state lands as urban lands on request

37-331.01.
Designation of state lands as urban lands on request
A. The governing body of a city,  town or county may request that the commissioner designate as urban lands state lands that are located within:
1. One mile of the corporate boundaries of an incorporated city or town having a population of less than two hundred fifty thousand people.
2. Three miles of the corporate boundaries of an incorporated city or town having a population of two hundred fifty thousand people or more.
B. The commissioner shall provide notice of a request made pursuant to subsection A of this section to all local governing bodies within three miles of the land in question.
C. The commissioner shall designate as urban lands those state lands requested pursuant to subsection A of this section unless the commissioner determines that the designation is an inappropriate categorization of the lands. When the commissioner makes a designation,  he shall provide notice of the designation of the lands as urban lands to all local governing bodies within three miles of the lands so designated. If the commissioner determines that the designation would be inappropriate,  he shall state in writing his reasons,  and shall provide a copy of this statement to the requesting local governing body. The local governing body may appeal this decision to the board of appeals as provided in section 37-215.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-331.02 - Urban land planning oversight committee

37-331.02.
Urban land planning oversight committee
A. The urban land planning oversight committee is established in the department consisting of the following members appointed by the governor pursuant to section 38-211:
1. One member with experience in drainage,  hydrologic or infrastructure engineering.
2. One member with experience in urban and community planning.
3. One member with experience in contracting for planning studies related to residential,  commercial or industrial real estate development.
4. One member with experience in open space or natural resource planning.
5. One public member.
B. The governor shall appoint the members to staggered terms of four years. A vacancy is created,  and the governor shall appoint a replacement member to fill the unexpired term,  if a member:
1. No longer resides in this state.
2. Is absent without excuse from three consecutive meetings of the committee.
3. Resigns or is unable to perform the duties as a committee member.
C. Each year the committee shall select a chairman from among the members. Members of the committee are eligible for compensation as provided by title 38,  chapter 4,  article 1. The committee shall meet on the call of the chairman.
D. The committee shall:
1. Recommend to the department procedures and strategies to efficiently create conceptual land use plans for urban state trust land and other state trust lands the commissioner considers to be appropriate,  as provided by section 37-331.03,  subsection A.
2. Provide advice on the types and extent of studies that are needed to create the plans.
3. Review and make recommendations for approval regarding the final conceptual land use plans and the final five year state trust land disposition plans for conformity with the adopted conceptual plans.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-331.03 - Conceptual urban state trust land use plans; five year state trust land disposition plans; definitions

37-331.03.
Conceptual urban state trust land use plans;  five year state trust land disposition plans;  definitions
A. The commissioner shall create conceptual land use plans for all urban state trust land in this state and other state trust lands the commissioner considers to be appropriate. The commissioner shall:
1. Prioritize the creation of conceptual plans to the extent possible to:
(a) Correlate with the rate of population growth in the urban areas in this state.
(b) Coincide with the production of municipal general plans under title 9,  chapter 4,  article 6 and county plans under title 11,  chapter 6,  article 1.
2. Revise and update each plan at least every ten years.
3. Consult with the city,  town or county in which the land is located and with any regional planning organization regarding integrating the conceptual plan into the general land use plan of the city,  town or county.
4. Submit each plan,  and revision of the plan,  to the urban land planning oversight committee for review.
B. On approval of the conceptual land use plan by the commissioner under this section,  the conceptual plan is considered to be a state general plan for purposes of this article.
C. The commissioner may create the conceptual land use plans under subsection A of this section by any of the following methods:
1. Using department staff or private consultants.
2. Entering into participation contracts pursuant to section 37-239.
3. Issuing planning permits for urban lands pursuant to section 37-338.
4. Entering into planning contracts for urban lands or other state trust lands the commissioner considers to be appropriate,  including compensation as provided by section 37-338,  subsection D.
D. The commissioner shall create five year disposition plans for all state trust land in this state,  based at a minimum on market demand,  anticipated transportation and infrastructure availability. The commissioner shall:
1. Review and update each plan each year as may be necessary.
2. Consult with the city,  town or county in which the land is located and with any regional planning organization.
3. Submit each plan and revision to the urban land planning oversight committee to ensure conformity with the conceptual plan under subsection A.
E. For the purposes of this section:
1. " Conceptual land use plan"  means a plan that is developed for urban state trust land and other state trust lands the commissioner considers to be appropriate and that identifies:
(a) Appropriate land uses,  including commercial,  industrial,  residential and open space uses.
(b) Transportation corridors and infrastructure requirements.
(c) All natural and artificial constraints and opportunities associated with the land.
2. " Five year disposition plan"  means a plan that identifies the land projected to be sold,  leased,  reclassified for conservation purposes,  master planned or zoned during the next five years.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-334.01 - Development plan for a master plan area

37-334.01.
Development plan for a master plan area
A. The commissioner may approve a development plan which includes a proposed master plan area if the proposed master plan area:
1. Is within the corporate boundaries of a city or town.
2. Has inadequate infrastructure to use state land for its highest and best use.
3. Has an area of at least one hundred sixty acres.
B. A development plan approved for a master plan area may propose:
1. Design guidelines and covenants,  conditions and restrictions.
2. Infrastructure planning,  implementation and funding.
3. Provisions for construction,  maintenance and enforcement of a community identity package.
4. Phasing,  timing and method of disposition and placement of infrastructure.
5. Conformance with municipal development ordinances,  in addition to the requirements of section 37-335,  subsections H and K.
6. Membership in a master property association that is governed by a board of directors with responsibility to implement and enforce compliance with the master plan area.
7. A marketing program description to promote the master plan area,  including provisions to fund the marketing program.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-335.01 - Compensation and reimbursement of lessee upon cancellation of lease

37-335.01.
Compensation and reimbursement of lessee upon cancellation of lease
A. If an existing lease is cancelled due to reclassification under section 37-335,  and if the existing lessee either did not utilize his preferred right to lease the reclassified land or was unsuccessful in obtaining the reclassified lease,  the lessee is entitled to receive reimbursement for non-removable improvements as provided in section 37-322.01,  and to receive reasonable compensation as provided in subsection B of this section for damages sustained by reason of the cancellation of the lease.
B. The commissioner shall determine the amount of reasonable compensation for damages sustained by the lessee after consideration of the following factors:
1. The time remaining in the term of the lease at the time that the lease is cancelled.
2. The actual use of the leased land.
3. The rentals paid during the term of the lease.
4. The actual amount of economic damage to the production unit caused by cancellation of the lease. In determining the amount of economic damage to the production unit,  the commissioner shall not limit the scope of his review to only that portion of the lands involved in the reclassification for the purposes of urban lands development,  but shall take into consideration the impact of the loss of these lands upon the overall production unit,  including situations where other leased or private lands are necessary and have been leased by the existing lessee for operation as a production unit.
5. Other factors that the commissioner or the existing lessee determine to be relevant.
C. The commissioner's determination of reasonable compensation for damages under this section may be appealed as provided in section 37-214.
D. Payments for reimbursement or compensation or both as established in this section shall be made by the purchaser or lessee of the reclassified land to the lessee who had been the existing lessee at the time of sale or upon the signing of the lease for the reclassified land. This section shall not prevent the payment for reimbursement or compensation or both from being made in installments if this process is agreed to by the lessee who had been the existing lessee and the purchaser or subsequent lessee.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-335.04 - Liens not liabilities of state

37-335.04.
Liens not liabilities of state
This chapter shall not be construed as creating a lien against the interest of this state in any urban lands,  nor an obligation against this state to pay charges or assessments imposed against urban land pursuant to an improvement plan. No action of any nature may be brought to forfeit,  terminate or foreclose this state's title or interest in urban lands for failure of any lessee or purchaser to pay any assessment.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-335.06 - Agreements to fund, install and reimburse costs of infrastructure on trust lands

37-335.06.
Agreements to fund,  install and reimburse costs of infrastructure on trust lands
A. The commissioner may enter into agreements with any public or private party to permit the construction,  operation and maintenance of infrastructure on urban lands,  including a community identity package for urban lands with a plan that is approved pursuant to this article. The agreement:
1. May provide for reimbursement by subsequent purchasers or lessees of actual infrastructure related land acquisition and construction costs plus a reasonable rate of interest as determined by the commissioner.
2. Shall contain such limitations as deemed necessary by the commissioner to protect the marketability of the affected trust land.
3. Shall identify the type,  quality and location of infrastructure,  the schedule for installation,  the method of computing the reimbursable costs and the methods for repayment.
4. Shall include requirements to maintain and repair the infrastructure and address the issue of liability for damage or accidents resulting from the design,  construction,  maintenance or repair of the infrastructure.
5. Shall state the procedure for amending the agreement.
6. Shall include rights and remedies for default under the agreement,  including the right to cure.
B. A party to an agreement under this section may not delegate his obligations under the agreement without written approval of the commissioner. The commissioner may require performance and payment bonds or other sufficient security as a condition for his approval.
C. An agreement entered into under this section does not give rise to any preferred rights or other rights generally acquired by a lessee of state lands unless specifically stated in the agreement. Notwithstanding section 37-322.01 or 37-322.02 or any other statute,  the right to reimbursement for infrastructure on urban lands is limited pursuant to subsection A,  paragraph 1 of this section. The general provisions for default under state land leases or certificates of purchase do not apply to agreements under subsection A of this section.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-336 - Rules; review and approval by legislature; duties of commissioner

37-336.
Rules;  review and approval by legislature;  duties of commissioner
A. The commissioner may adopt rules pursuant to title 41,  chapter 6 to carry out this article. All rules adopted by the commissioner are subject to review and approval by the legislature.
B. Following the adoption of a rule,  the commissioner shall immediately forward a certified copy to the speaker of the house of representatives and the president of the senate. The legislature may review and,  by concurrent resolution,  approve,  disapprove or modify any rule submitted by the commissioner for review and approval. Each rule adopted by the commissioner as provided by law is effective pending legislative review. If a concurrent resolution is not passed by the legislature with respect to the rule within one year following receipt of a certified copy,  the rule is deemed to have been approved by the legislature.
C. On disapproval by the legislature of a rule,  the commissioner shall immediately discontinue the use of any procedure,  action or proceeding authorized or required by the disapproved rule. On modification by the legislature of a rule,  the commissioner shall immediately suspend the use of any procedure,  action or proceeding authorized or required by the original rule until a modified rule has been adopted in accordance with title 41,  chapter 6. Following the adoption of the modified rule,  the commissioner shall conduct all subsequent proceedings in accordance with the modified version of the rule.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-341 - Preliminary investigation of projects for reclamation of state lands

37-341.
Preliminary investigation of projects for reclamation of state lands
The state land department may make preliminary investigation of projects for the reclamation of state lands by the storage of flood waters,  for the discovery and development of subterranean water for irrigation and domestic purposes,  or the diversion of running streams adapted for development in cooperation with the United States or by the state independently,  and report to the legislature the possibilities and physical requirements of the reclamation accompanied by recommendations for carrying the reclamation into effect.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-342 - Acquisition by land department of rights necessary or advisable for reclamation or irrigation of state lands

37-342.
Acquisition by land department of rights necessary or advisable for reclamation or irrigation of state lands
A. The state land department shall make and file locations,  appropriations,  and rights of way of waters,  reservoir sites and dam and power sites whenever the location and filing is deemed advisable for the irrigation of state lands. The land department shall,  for and on behalf of the state,  acquire title to the water or the appropriation of water,  reservoir,  dam,  power or other sites and rights of way,  as necessary or advisable for the reclamation and irrigation of state lands.
B. The filing and locations shall be in the name of the state and the procedure therefor shall conform to that provided for the acquisition of such rights by private citizens.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-343 - Investigation of adverse claims upon state lands; protection of equities of persons appropriating water prior to reservation of land for the state

37-343.
Investigation of adverse claims upon state lands;  protection of equities of persons appropriating water prior to reservation of land for the state
A. The state land department may investigate and determine adverse claims to lands the title to which is held by the state,  and in instances where title to other land is obtained in lieu of such land,  the department may relinquish the claim of the state thereto. The determination of the department shall be final until set aside by a court of competent jurisdiction.
B. The department may investigate any appropriation of water or reservoir site for irrigation or livestock purposes made and maintained prior to reservation,  for the benefit of the state,  of the land on which the water appropriation is located,  and protect the equities of the prior appropriator of water by the extension of a preference right to lease the land or by such other lawful means as the department may prescribe.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-371 - Definition of acquired entitlement land

37-371.
Definition of acquired entitlement land
In this article,  unless the context otherwise requires,  " acquired entitlement land"  means land which this state acquired from the United States after December 31,  1985 and at the time it was acquired it was entitlement land under title 31 United States Code chapter 69 and the acquisition by the state resulted in a reduction of payments to the county under title 31 United States Code chapter 69.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-372 - Payments to local governments with respect to acquired entitlement lands

37-372.
Payments to local governments with respect to acquired entitlement lands
A. Each fiscal year the commissioner shall pay to each county in which acquired entitlement land is located a payment from monies appropriated and available for such purpose in an amount determined under this section to be used by the county for any official purpose.
B. Subject to subsections C,  D and E,  the amount of the payment is equal to seventy-five cents for each acre of acquired entitlement land located in the county.
C. The amount of the annual payment shall be reduced by seventy-five cents for each acre of acquired entitlement land which has been patented by the state to private ownership.
D. If the legislature appropriates insufficient monies to make the full payment determined under this section for a fiscal year,  the commissioner shall proportionately reduce the payments to all counties under this section according to the amount appropriated.
E. Payments described in this section shall be made only in those years in which the federal government provides funds under title 31 United States Code chapter 69.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-411 - Rights of entrymen under federal laws to possession and enjoyment of land

37-411.
Rights of entrymen under federal laws to possession and enjoyment of land
All persons qualified to make entry under the public land laws of the United States,  who settle upon,  cultivate or improve a tract of land in the state for the purpose of acquiring title thereto as a homestead or desert land entry under the laws of the United States,  and who are conforming to all requirements of residence,  improvement or cultivation of such land required by such laws in perfecting title to the land if entered by the claimant under such laws,  shall be protected in the peaceable possession and quiet enjoyment of the land,  with all the crops,  timber and improvements thereon,  to the extent of the maximum number of acres allowed by such laws in compact form,  if unsurveyed according to the cardinal points,  and,  if surveyed by the United States,  then according to the lines of the survey so as to include the improvements.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-412 - Limitation on claims; marking boundaries of claim; notice; recording of notice

37-412.
Limitation on claims;  marking boundaries of claim;  notice;  recording of notice
A. A person shall not hold more than one claim of the classes referred to in section 37-411 at the same time.
B. The claimant shall distinctly mark the boundaries of his claim so that it can be readily traced,  and shall accurately describe it in a written notice under oath. The notice shall refer to the laws of the United States under which claimant intends to acquire title to the claim,  and shall disclose the time when the location was made,  and that it does not contain more than the maximum number of acres allowed by such laws.
C. The notice shall be recorded in the office of the county recorder wherein the lands are situated.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-441 - Taking by state of state lands and improvements; reimbursement of owners for improvements; lease by department or institution

37-441.
Taking by state of state lands and improvements;  reimbursement of owners for improvements;  lease by department or institution
The state may,  when necessary for its uses or for the uses of any state department or institution,  take over any state lands and the improvements thereon by reimbursing the owners for the improvements,  and the department or institution so using the lands shall lease them and pay such rental as the state land department requires.
2023 Arizona Revised Statutes › Title 37 - Public Lands › § 37-442 - Application by department or institution to take over state lands; approval by governor; compensation of lessee for improvements and damages resulting from termination

37-442.
Application by department or institution to take over state lands;  approval by governor;  compensation of lessee for improvements and damages resulting from termination
A. The governing board or officer of a state department or institution desiring to avail itself of the provisions of this article shall make application to the governor for taking the lands over,  and,  if the application is approved by the governor,  it shall be transmitted to the state land department which shall appraise the improvements on the lands.
B. The existence of a permit or lease for the land desired shall not bar the state from taking the land,  but the permittee or lessee shall be entitled,  in addition to the appraised value of the improvements on the lands,  to reasonable compensation for damages he may sustain by reason of the cancellation of the permit or lease prior to its termination. Such damages shall be determined as a part of the appraisal.
C. Upon surrender of the lands to the state,  the owner of the improvements shall be paid in the manner provided by law the appraised value thereof and the amount of the damages. The owner of the improvements shall prior to payment file his claim,  and certify that the possession of the lands and improvements has been surrendered to the state by all persons having lawful claims thereon.