SB1615 • 2026

state-owned properties; review board

SB1615 - state-owned properties; review board

Passed Legislature

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

Sponsor: Brian Fernandez
Last action: 2026-02-04
Official status: Senate second read
Effective date: Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details about the process of selling surplus property or how proceeds are used beyond depositing them in the state general fund.

State-Owned Properties Review Board

This bill establishes a State Property Review Board to conduct audits of underused state-owned properties and mandates their sale if they are less than 60% utilized.

What This Bill Does

Establishes the State Property Review Board with members appointed by the governor, president of the senate, speaker of the house, and department of administration director or their designee as a nonvoting member.
Requires the board to conduct an audit of all real property owned by state agencies starting January 1, 2027, excluding land held in trust by the state land department.
Designates any property used less than 60% of its intended capacity as surplus and places it on a mandatory disposal list.
Requires surplus properties to be sold at public auction within twelve months after being placed on the mandatory disposal list.

Who It Names or Affects

The governor, president of the senate, speaker of the house, and department of administration director or their designees will appoint board members.
State agencies that own real property will have to participate in the audit process.

Terms To Know

Surplus Property: Property that is underused by less than 60% of its intended capacity and must be sold.
Mandatory Disposal List: A list where surplus properties are placed before being auctioned off.

Limits and Unknowns

The bill does not specify what happens to the proceeds from property sales beyond depositing them in the state general fund.
It is unclear how existing laws will be reconciled with this new requirement for selling surplus properties.

Bill History

2026-02-04 Senate
Senate second read
2026-02-03 Senate
Senate Rules: None
2026-02-03 Senate
Senate Government: None
2026-02-03 Senate
Senate first read

Official Summary Text

SB1615 - state-owned properties; review board

Current Bill Text

Read the full stored bill text

SB1615 - 572R - I Ver

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_STATUTE
41-791.05.

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.