Ariz. Rev. Stat. § 41-1958 – Acquisition of lands and buildings; lease-purchase agreements; lease or sublease of lands or buildings

A. The director may acquire for and in the name of this state by lease, lease-purchase agreement or otherwise lands or buildings for the purpose of providing office space for the department at such places as the director finds necessary and suitable.
B. An agreement made for the lease, lease-purchase or purchase of the premises mentioned in subsection A of this section is subject to the approval of the attorney general and the director of the department of administration.
C. An agreement made for the purchase of the premises mentioned in subsection A of this section is subject to the review of the joint committee on capital review.
D. Any lease-purchase agreement relating to land or building acquisitions shall provide that:
1. 1. The obligation of this state to make any payment under the agreement is a current expense of the department and is not a general obligation indebtedness of this state or the department.
2. 2. If the legislature fails to appropriate monies or the department fails to allocate monies for any periodic payment or renewal term of the agreement, the agreement terminates at the end of the current term and this state and the department are relieved of any subsequent obligation under the agreement.
3. 3. The joint committee on capital review shall review the project before the lease-purchase agreement takes effect.
E. The director may lease or sublease at fair rental value any land or building that is acquired pursuant to subsection A of this section. The director may lease or sublease any building that is acquired pursuant to subsection A of this section on other terms or conditions if the lessee is a state entity or political subdivision of this state. All net lease income shall be credited to the department's occupancy appropriation.
F. A lease or sublease that is granted pursuant to subsection E of this section is exempt from the provisions of section 41-2752 and is not subject to chapter 23 of this title. The director may prioritize lease or sublease tenants based on the needs of the department and in the public interest with preference given to the following in the order provided:
1. 1. State entities.
2. 2. Political subdivisions.
3. 3. Community partners.
G. The department may pay or advance gross initial and routine lease and sublease related expenditures. The gross initial and routine expenditures that are paid or advanced shall be reimbursed to the department before the net lease income is credited to the department's occupancy appropriation pursuant to subsection E of this section.
H. Any agreement under this section shall comply with the constitution and other laws of this state.