management; state properties; 2026-2027

Plain English Breakdown

The bill passed both chambers but was vetoed by the Governor; therefore, it did not become law despite passing the Legislature.

SB1843: State Building Rental Rates for Fiscal Year 2027

This bill proposed setting specific rental prices that state agencies must pay to use office and storage space in government buildings during the 2026-2027 budget year, but it was vetoed by the Governor.

What This Bill Does

• Sets the rental rate for office space in state-owned buildings at $17.87 per square foot for fiscal year 2027.
• Sets the rental rate for storage space in state-owned buildings at $6.43 per square foot for fiscal year 2027.

Who It Names or Affects

• State agencies that occupy office or storage space in state-owned buildings.

Terms To Know

Capital Outlay Stabilization Fund

The fund associated with the rental rates for state-owned buildings mentioned in this bill.

Fiscal Year (FY)

The 12-month period used by the government for budgeting, specifically fiscal year 2026-2027 in this context.

Limits and Unknowns

• This bill was vetoed by the Governor on May 5, 2026.
• The text does not list specific agencies or buildings that must pay these rates beyond general state-owned properties.

Official Summary Text

SB1843 - 572R - Senate Fact Sheet

Assigned to
ATT������������������������������������������������������������������������������������������������������������������������������ AS
VETOED

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

VETOED

FACT SHEET FOR
h.B. 4150/S.b. 1843

management;
state properties; 2026-2027.

Purpose

Makes session law changes relating to the management of state properties
necessary to implement the FY 2027 state budget.

Background

The Arizona Constitution prohibits substantive law from being included in
the general appropriations, capital outlay appropriations and supplemental
appropriations bills. However, it is often necessary to make statutory and
session law changes to effectuate the budget. Thus, separate bills called
budget reconciliation bills (BRBs) are introduced to enact these provisions.
Because BRBs contain substantive law changes, the Arizona Constitution provides
that they become effective on the general effective date, unless an emergency
clause is enacted.

H.B. 4150 contains the budget reconciliation provisions for changes
relating to state properties.

Provisions

1.

Continues
to set the Capital Outlay Stabilization Fund square-footage rental rates for

state-owned buildings at $17.87 for office space and $6.43 for storage space in
FY 2027.

2.

Becomes
effective on the general effective date.

Governor's
Veto Message

The Governor indicates in her
veto message

that H.B. 4150, and this version of the FY 2027 state
budget as a whole, would cause Arizona to default on its debt obligations,
endanger vulnerable children, cut public safety funding and provide tax breaks
for billionaires, data centers and special interests. The Governor outlines her
specific concerns, including cuts to funding for specified agencies and
programs, and invites the Legislature to return to the negotiating table.

House Action
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Senate
Action

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3
rd

Read��������� 4/29/26����������������� 33-20-7�������������� 3
rd

Read��������� 5/4/26��������������������������� 16-12-2

���������
(H.B.
4150 was substituted for S.B.1843 on 3
rd
Read)

Vetoed by
the Governor 5/5/26

Prepared by Senate Research

May 7, 2026

AN/KP/ci

Current Bill Text

SB1843 - 572R - S Ver

Senate Engrossed

management; state
properties; 2026-2027

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1843

AN
ACT

establishing rental rates for state-owned
buildings; relating to the management of state properties.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1.
Rental rates;
state-owned buildings; fiscal year 2026-2027

Notwithstanding
section 41-792.01, subsection D, Arizona Revised Statutes, the capital
outlay stabilization fund rental rates for state-owned buildings in
fiscal year 2026-2027 are $17.87 per square foot for office space and
$6.43 per square foot
for storage space.