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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
ENACTED
FACT SHEET FOR H.B. 2868/S.B. 1735
state buildings; management; 2022-2023
Purpose
Makes statutory and session law changes relating to the management of state buildings necessary to implement the FY 2023 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. 2868 contains the budget reconciliation provisions for changes relating to state buildings.
Provisions
1. Removes the requirement that the Joint Committee on Capital Review recommend any whole or partial rental fee exemption prior to authorization by the Director of the Arizona Department of Administration (ADOA) for a state agency that does not have the financial resources for a state-owned or state-leased space or does not occupy or vacates a state-owned or state-leased space.
2. Requires ADOA, prior to authorizing a rental fee exemption for a state agency that does not have the financial resources for a state-owned or state-leased space or does not occupy or vacates a state-owned or state-leased space, to report the proposed exemption to the Joint Legislative Budget Committee (JLBC) Staff.
3. Subjects state-leased buildings for which ADOA is responsible for the allocation of space, operation, alteration, renovation and security to the statutory rental rate requirements in the same manner as state-owned buildings in the fiscal year following the retirement of a lease or lease purchase debt service financing.
4. Requires ADOA, by September 1 of each year, to report to JLBC and the Governor's Office of Strategic Planning and Budgeting (OSPB) on the cost associated with charging rental rates to state agencies with retired leases or lease purchases for the next fiscal year.
5. Requires each state agency, within 30 days of the end of a calendar quarter, to submit a report to JLBC Staff and the OSPB on the status of all capital projects and capital expenditures for which monies were appropriated to the state agency.
6. Exempts the Arizona Department of Transportation from capital project and capital expenditure status reporting requirements for highway construction projects.
7. Repeals the prohibition on the Office of the Ombudsman-Citizens Aide being located within the state office building complex or adjacent or contiguous to any other state agency.
8. Requires the proceeds from the sale of state buildings located at 519 Beale Street in Kingman and 1919 West Jefferson Street in Phoenix to be deposited in the Capitol Mall Consolidation Fund.
9. 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 2023.
10. Makes technical changes.
11. Becomes effective on the general effective date.
House Action Senate Action
APPROP 6/21/22 DP 8-5-0-0 APPROP 6/22/22 DP 6-3-1
3rd Read 6/23/22 49-10-1-0 3rd Read 6/23/22 20-8-2
(H.B. 2868 was substituted for S.B. 1735 on 3rd Read)
Signed by the Governor 6/28/22
Chapter 319
Prepared by Senate Research
July 5, 2022
MH/HW/slp