management; state buildings; 2025-2026

SB 1746 requires Arizona state departments and agencies using government-owned or leased buildings to pay annual rental fees based on their budgeted amounts or actual occupancy. These payments are transferred to the Capital Outlay Stabilization Fund (for state-owned buildings) or the Lease-Purchase Building Operating Fund (for leased buildings), with adjustments made monthly for occupancy changes. The bill exempts state universities, community colleges, and the Department of Transportation from these requirements when they are not under the Department of Administration’s jurisdiction. Agencies may request exemptions for financial hardship or cash flow reasons, but the Department of Administration must report all exemptions to the legislative budget committee annually. The law applies to all state agencies for fiscal year 2025-2026.