REFERENCE TITLE: state-owned properties; review board

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1615

Introduced by

Senator Fernandez

AN ACT

amending title 41, chapter 4, article 7, Arizona Revised Statutes, by adding section 41-791.05; relating to state property.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Title 41, chapter 4, article 7, Arizona Revised Statutes, is amended by adding section 41-791.05, to read:

START_STATUTE41-791.05. State property review board; membership; duties

A. The state property review board is established consisting of:

1. Two members with EXPERIENCE in commercial real estate who are appointed by the governor.

2. One member who is appointed by the president of the senate.

3. One member who is appointed by the speaker of the house of REPRESENTATIVES.

4. The director of the department of administration or the DIRECTOR'S designee as a nonvoting advisory member.

B. Beginning January 1, 2027, the state property review BOARD shall conduct a Comprehensive utilization audit of all real property titled to the department of administration or any other state agency.  The audit shall exclude any land held in trust by the state land department.

C. Any property found to have a use rate of less than sixty percent of its intended capacity shall be designated as Surplus Property and placed on a Mandatory Disposal List.

D. Properties placed on the mandatory disposal list pursuant to subsection C of this section shall be sold at public auction to the highest bidder in a competitive bidding process within twelve months of being placed on the mandatory disposal list.

E. NOTWITHSTANDING any other law, Net proceeds from the sale of properties pursuant to this section shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

F. No other requirements shall interfere with or SUPERSEDE the requirement to sell property on the mandatory disposal list pursuant to this section. END_STATUTE

Sec. 2. Legislative findings

The legislature finds that:

1. The department of administration holds title to numerous parcels of real property and improvements that are distinct from the state land trust.

2. Changes in workforce dynamics have resulted in these state-owned administrative facilities being significantly underused.

3. Maintaining vacant or underused property incurs unnecessary liability and maintenance costs for taxpayers.

4. Converting these dormant assets into liquid capital to support the state university system represents a fiscally responsible alternative to tax increases.