HB 2384 Arizona House · 57th Legislature - Second Regular Session

school districts; lease agreements; requirements

HB 2384 modifies Arizona school district leasing rules by clarifying when voter approval is required for property leases. It states that school districts may lease property for up to 10 years without voter approval, but leases longer than 10 years must be approved by voters. The bill also lists specific exceptions where voter approval is not needed, such as for low-value properties ($50,000 or less), renewable energy contracts, or transactions using state school facilities funds. This directly affects school districts when leasing buildings, land, or other property for school operations. The changes aim to streamline leasing processes while maintaining accountability for longer-term agreements.

Issues: ✓ Energy

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Governor

Introduced Jan 21, 2026 Last action Mar 23, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version (02/25/2026) · 6 edits · Feb 25, 2026

MODERATE

This bill updates Arizona school district laws to modernize lease terms, clarify how proceeds from property sales are used, and expand reporting requirements for real estate holdings. It allows districts to lease properties for up to 99 years with voter approval (previously capped at 20 years) and clarifies that proceeds from sales can be used for maintenance if the district has low debt. The bill also adds new tax exemptions for certain nonprofit organizations and requires annual reporting on all district-owned or leased real estate.

Scope change

The bill expands the scope of allowable lease terms for school properties and clarifies the application of tax exemptions to specific nonprofit entities and affordable housing projects.

REQUIREMENT

Extended the maximum lease term for school properties from 20 years to 99 years if approved by voters, while keeping the 10-year limit for non-voted leases.

Mandated annual reporting to state officials on all real estate holdings owned or leased by school districts, including details on lease terms and revenue.

FISCAL

Clarified that proceeds from selling school property can be used for maintenance and operations if the school district's bonded debt is below specific thresholds (7% for common/high schools, 14% for unified schools).

ELIGIBILITY

Added tax exemptions for specific types of nonprofit organizations, including charter schools, trap and skeet shooting clubs, and residential treatment facilities.

Modified tax exemption rules for affordable housing to explicitly exclude properties leased from school districts.

DEFINITION

Defined 'real estate holding' for reporting purposes to include properties leased by the district as a lessor or used for nonacademic purposes.

Floor votes · House Feb 25, 2026

How they voted

31–23

Passed · 6 other

Total votes 60

Feb 25, 2026

D Democratic27

23 Nay 4

85% Nay

R Republican33

31 Yea 2

93% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 23, 2026

Upper · Passed

DPA

upper

Feb 25, 2026

Lower · Passed

PASSED

lower

Feb 24, 2026

Lower · Passed

DPA

lower

Feb 3, 2026

Lower · Passed

lower

1 primary · 1 co-sponsor