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 directs net proceeds to the general fund, but legislative findings suggest supporting universities; it is unclear if this support happens automatically or requires further action.

SB1615: State Property Review Board and Sale of Unused Buildings

This law creates a new board to audit state buildings, label those used less than sixty percent as surplus, and require their sale at public auction.

What This Bill Does

Creates the State Property Review Board with members appointed by the governor, senate president, and house speaker.
Requires an audit of all real property owned by state agencies starting on January 1, 2027.
Labels any building used less than sixty percent of its capacity as surplus property.
Mandates that surplus properties be sold at public auction within twelve months.

Who It Names or Affects

The Department of Administration and other state agencies holding real estate titles
Potential buyers at public auctions

Terms To Know

Surplus Property: A building or land owned by the state that is used less than sixty percent of its intended capacity.
Mandatory Disposal List: The official list where surplus properties are placed to be sold at auction within twelve months.

Limits and Unknowns

This law does not apply to land held in trust by the state land department.
No effective date is listed for when this law officially begins.

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.