The Arizona Revised Statutes have been updated to include the revised sections from the 57th Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 58th Legislature, 1st Regular Session, which convenes in January 2027.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
15-1307. Property proceeds fund; expenditure plan; review; requirements for disposition of school buildings and grounds
A. The property proceeds fund is established consisting of the proceeds from the sale or lease of school buildings and grounds. The schools shall administer the fund and, except as provided in subsection D of this section, shall deposit in the fund all monies that the schools receive for the sale or lease of school buildings and grounds on or after July 1, 2026. Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the schools, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.
B. In any fiscal year in which the legislature appropriates monies from the property proceeds fund to the schools, the schools shall prepare an expenditure plan for the monies and shall submit the plan to the joint legislative budget committee for review.
C. Before the schools may sell school buildings or grounds, the schools shall do all of the following:
1. Determine the appraised value of the school buildings or grounds by ordering independent appraisals from at least two different firms. The schools shall procure appraisal services pursuant to title 41, chapter 23 and shall award a contract for appraisal services to a firm only if the appraiser is well qualified and a designated member of a nationally recognized real estate appraisal association, institute or society. The schools may use any appraisal that is ordered pursuant to this paragraph as the appraised value of the school buildings or grounds.
2. Submit a proposal to sell school buildings or grounds to the joint committee on capital review for review.
3. Sell the school buildings or grounds pursuant to section 37-803.
D. The schools are not required to deposit monies in the property proceeds fund if the schools receive the monies for any of the following:
1. Fees, rentals and other charges for the use of school facilities for nonschool events as described in section 15-1323.
2. Proceeds from the lease of school buildings or grounds to a school.
3. Proceeds from the lease of school buildings or grounds for a period of less than one year. A lease of school buildings or grounds for less than one year that includes an automatic lease renewal resulting in a total lease duration that exceeds one year is considered a lease for more than one year for the purposes of this paragraph.