SB1758 • 2026

state lands; improvements; reimbursement; ineligibility

SB1758 - state lands; improvements; reimbursement; ineligibility

Housing

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

The bill amends existing statutes and retains specific dates (December 31, 1965) from prior law; it is unclear if these dates are still active in current practice or have been superseded by other regulations not included here.

Rules for Building on State Lands and Getting Paid

This law requires people with legal interests in state lands, other than certificate holders, to get permission before building improvements or lose the right to be paid back.

What This Bill Does

Requires lessees, permittees, or others with a legal interest in state lands (except certificate of purchase holders) to file an application for permission before making improvements unless their lease already allows it.
Gives the department authority to approve or reject improvement applications based on what is best for the state.
States that people who build without permission cannot receive reimbursement or compensation from the department, except as provided in section 37-322.02 regarding sales of improvements.
Declares that unapproved improvements become property of the state if a lease ends or is cancelled.
Requires owners of existing improvements to report their description, location, and cash value in writing by December 31, 1965, unless extended.

Who It Names or Affects

Lessees who rent state lands
Permittees who hold permits for state lands
Other persons with a legal interest in state lands but not holding a certificate of purchase

Terms To Know

Improvements: Buildings, structures, or other additions made to the land.
Reimbursement: Payment given back by the department for costs spent on improvements.
Forfeiture: The loss of ownership where unapproved items become property of the state.

Limits and Unknowns

The law does not specify how much money is available for reimbursement if an application is approved.
The text mentions a reporting deadline of December 31, 1965, which may be outdated or extended by the department.

Bill History

2026-02-09 Senate
Senate second read
2026-02-05 Senate
Senate Rules: None
2026-02-05 Senate
Senate Natural Resources: None
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