A. A lease cost review board is established. Board membership consists of the director or the director’s designee and four members appointed by the director, as follows:

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Terms Used In Arizona Laws 41-792

  • Director: means the director of the department of administration. See Arizona Laws 41-701.01
  • Employee: means all officers and employees of this state, whether in covered service or uncovered service, unless otherwise prescribed. See Arizona Laws 41-741
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Joint committee: Committees including membership from both houses of teh legislature. Joint committees are usually established with narrow jurisdictions and normally lack authority to report legislation.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • State agency: means a department, board, office, authority, commission or other governmental budget unit of this state and includes an agency assigned to a department for administrative purposes. See Arizona Laws 41-741

1. Three directors of other state agencies.

2. A staff member of the joint legislative budget committee.

B. The term of office of appointed members is three years. A director of a state agency may appoint an employee of the agency to serve on the committee in the director’s stead.

C. Before July 1 of each even-numbered year, the lease cost review board shall:

1. Estimate an average square foot dollar cost for the following two fiscal years for leasing privately owned office space.

2. Recommend to the director a rental rate to be charged to state agencies for using space in buildings owned by or leased to this state.

D. Leases proposed to be entered into by a state agency for privately owned office space must be approved by the director, or in the case of the state universities, by the Arizona board of regents. Before August 1 of each even-numbered year, the director and the board shall each submit a report to the joint committee on capital review that lists all leases that were approved during the prior two fiscal years and that exceeded the average square foot dollar cost estimated for the prior fiscal year pursuant to subsection C.