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SB1758 • 2026

state lands; improvements; reimbursement; ineligibility

SB1758 - state lands; improvements; reimbursement; ineligibility

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Priya Sundareshan
Last action
2026-02-09
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

State Lands Improvements and Reimbursement Rules

This bill changes rules about making improvements on state lands, including who can make them and whether they are eligible for reimbursement.

What This Bill Does

  • Requires people wanting to improve state land to get permission from the department first unless their lease already allows it.
  • Makes sure that if someone makes improvements without permission, those improvements become property of the state when the lease ends.
  • Changes rules about reporting improvements on state lands by a certain deadline and how the department decides whether to allow them.
  • Limits eligibility for reimbursement or compensation from the department for improvements made on leased state lands.

Who It Names or Affects

  • People who have leases, permits, or other legal interests in state lands.
  • The Arizona Department of State Lands which manages these rules and decisions.

Terms To Know

Improvements
Changes made to land that increase its value, like building a fence or planting trees.
Reimbursement
Money given back to someone who has paid for something in advance.

Limits and Unknowns

  • The bill does not specify what happens if the deadline for reporting improvements is missed.
  • It's unclear how often the department will require information about improvements from lessees or permittees.

Bill History

  1. 2026-02-09 Senate

    Senate second read

  2. 2026-02-05 Senate

    Senate Rules: None

  3. 2026-02-05 Senate

    Senate Natural Resources: None

  4. 2026-02-05 Senate

    Senate first read

Official Summary Text

SB1758 - state lands; improvements; reimbursement; ineligibility

Current Bill Text

Read the full stored bill text 
SB1758 - 572R - I Ver

REFERENCE TITLE:
state lands; improvements; reimbursement; ineligibility

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1758

Introduced by

Senator
Sundareshan

AN
ACT

Amending section 37-321, Arizona
Revised Statutes; RELATING to state lands.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 37-321, Arizona Revised
Statutes, is amended to read:

START_STATUTE
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
another

person having a legal interest in state lands, other than a holder of a
certificate of purchase, desires to construct or make improvements
upon
on
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
this
state requires
as determined by the department. Unless permission is granted by the
department, the applicant
shall
is

not
be
entitled to reimbursement or compensation for
improvements placed
upon
on
the
state lands.�
except as provided in section 37-322.02,
subsection B, regarding the department's sale of IMPROVEMENTS, a lessee that
makes IMPROVEMENTS on leased state lands is not ELIGIBLE for reimbursement or
compensation from the department for those improvements placed on the leased
state lands.

Upon

on
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
this
state.

B. The owner of improvements placed
upon
on
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
this

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,
may
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,
shall
subject the improvements to forfeiture to
the
this
state.
END_STATUTE