Sec 8-460. 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 gift, grant, lease, lease-purchase agreement or otherwise lands or buildings for the purpose of providing office space for the department at places the director finds necessary and suitable, but land or a building may not be acquired by purchase or lease-purchase without the prior approval of the joint committee on capital review and an appropriation of monies by the legislature for the acquisition.

B. Any lease-purchase agreement relating to land acquisition, capital projects, energy systems or energy management systems under this section shall provide that:

1. The obligation of this state to make any payment under the agreement is a current expense of the department, payable exclusively from appropriated monies, and is not a general obligation indebtedness of this state or the department.

2. If the legislature fails to appropriate monies or the department fails to allocate appropriated 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. The agreement must be reviewed and approved by the attorney general and the director of the department of administration before the agreement may take effect.

4. The agreement must be reviewed and approved by the joint committee on capital review before the agreement takes effect.

C. The department may covenant to use its best efforts to budget, obtain, allocate and maintain sufficient appropriated monies to make payments under a lease-purchase agreement, but the agreement shall acknowledge that appropriating state monies is a legislative act and is beyond the control of the department or any other party to the agreement.

D. A lease-purchase agreement under this section shall be submitted to the following entities:

1. The attorney general to review for compliance with the constitution and laws of this state. If in the attorney general's opinion the agreement complies with the constitution and laws, the attorney general shall append the attorney general's certification to the agreement, return it to the department and transmit a copy to the joint committee on capital review. On request by the director the attorney general may give other opinions relating to the agreement.

2. The director of the Arizona department of administration to review for compliance with the laws of this state. If in the director's opinion the agreement complies with the laws of this state, the director shall append the director's certification to the agreement, return it to the department and transmit a copy to the joint committee on capital review.

E. A lease-purchase agreement under this section shall be reviewed and approved by the joint committee on capital review before the agreement takes effect.

F. The director may lease or sublease to others at fair rental value any land or building that is acquired pursuant to this section. The director may lease or sublease any building that is acquired pursuant to this section on other terms or conditions if the lessee is a state entity or political subdivision of this state. All net lease income must be credited to the department's occupancy appropriation.

G. A lease or sublease to others that is granted pursuant to subsection F of this section is exempt from section 41-2752 and is not subject to title 41, chapter 23. 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. State entities.

2. Political subdivisions.

3. Community partners.

H. 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 must be reimbursed to the department before the net lease income is credited to the department's occupancy appropriation pursuant to subsection F of this section.