SB 1615

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.