SB1746 makes two main changes to Arizona law. First, it amends the state property management statute governing the capital outlay stabilization fund and rental charges for state agencies occupying state-owned or state-leased buildings. The bill updates how rental rates are set, keeps the Department of Administration responsible for collecting and transferring those payments, and requires monthly pro rata adjustments when occupancy changes. It also preserves the existing exemption process for certain agencies and reporting requirements to the Joint Legislative Budget Committee.
Second, the bill sets specific rental rates for fiscal year 2025-2026: $17.87 per square foot for office space and $6.43 per square foot for storage space. It also amends a prior 2025 law to transfer several parcels of state sovereign land in Mohave County to the City of Bullhead City, with the land required to be used perpetually for park and public recreation purposes and prohibited from being sold, exchanged, or bartered. The land commissioner must deliver the deed or patent within 30 days after the act takes effect.
Impact
The bill affects Arizona Revised Statutes section 41-792.01, which governs the capital outlay stabilization fund, agency rental payments, tenant-improvement labor charges, and related transfers between agency accounts and state funds. It also impacts the 2025 land-transfer law for Bullhead City by finalizing the conveyance of specified Colorado River-adjacent sovereign land and imposing permanent public-use restrictions. Affected parties include state departments and agencies that occupy state-owned or leased space, the Department of Administration, the Joint Legislative Budget Committee, and the City of Bullhead City.
Sentiment
The bill appears to have had generally favorable support but not unanimous backing. It passed the Senate Appropriations Committee 9-1 and the House Rules Committee unanimously, and it cleared both chambers on third reading, though with notable opposition in the Senate (17-13) and some opposition in the House (40-16). The emergency declaration and expedited handling suggest the measure was treated as time-sensitive, likely because it set fiscal-year rental rates and completed a land transfer tied to current-year administration.
Contention
The main points of contention likely centered on the state property rental-rate provisions and the fiscal impact on agency budgets, since the bill requires agencies to pay updated rent into state funds and adjusts those amounts based on occupancy. The land transfer to Bullhead City may also have drawn attention because it moves state sovereign land out of state control, even though the bill limits its use to park and public recreation purposes. The split floor votes indicate some legislators were concerned about either the budgetary effects, the land conveyance, or both, while committee votes suggest the measure still had broad institutional support.