2010 Arizona Revised Statutes
Title 41 - State Government
41-791.02 Powers and duties relating to acquiring property; lease purchase agreements; eminent domain

41-791.02. Powers and duties relating to acquiring property; lease purchase agreements; eminent domain

A. The director may acquire, in the name of this state, by gift, grant, purchase, lease purchase, condemnation or any other lawful manner, real property, buildings, energy systems or energy management systems which are necessary, useful or convenient for the use of this state, but no land or building may be acquired by purchase or condemnation without prior approval of the joint committee on capital review and an appropriation of monies by the legislature for such 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 such 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 shall be reviewed and approved by the attorney general before the agreement may take effect.

4. The agreement shall 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 of any other party to the agreement.

D. A lease purchase agreement under this section shall be submitted to the attorney general to review for compliance with the constitution and laws of this state. If in his opinion the agreement so complies, he shall append his 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.

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 any property owned by this state at fair rental value, or on other terms and conditions if the lessee is a political subdivision of this state. If the property was purchased through the capital outlay stabilization fund as set forth in section 41-792.01, subsection A, the net income received from any such lease shall be credited to the capital outlay stabilization fund. All other lease net incomes shall be credited to the state general fund.

G. The director, with the consent of the governor, may lease property which is acquired under this article for public purposes and convey in the name of this state easements for roadways, walkways and utility purposes on any of the real property acquired under this article.

H. If the power of eminent domain is exercised, it shall be exercised as provided in sections 12-1111 through 12-1128.

I. The amount paid for any property purchased by the department, except such property as may be acquired by condemnation and property acquired in any manner within the governmental mall comprised of the area described in section 41-1362, shall not exceed the appraised value as fixed by an appraiser to be appointed by the director who shall be a well qualified appraiser and a designated member of a nationally recognized real estate appraisal association, institute or society. If the department orders only one appraisal of the property, the property owner may request, and the department shall provide, a second appraisal. Each appraisal ordered by the department for a property shall be conducted by a different firm. If more than one appraisal is conducted, the director may use either appraisal in determining the appraised value affixed by the appraiser. A contract for appraisal services shall be awarded in accordance with chapter 23 of this title. Before the property within the governmental mall is acquired as provided in this subsection, the joint committee on capital review shall review and approve the purchase of the property.

J. The director may dispose of real property acquired by the department or any right, title or other interest in such property if the director determines that it is no longer needed or used for state purposes. The director, after the establishment, laying out or substantial completion of an improvement to such real property, may convey the real property or any interest in the real property which the director determines is not necessary, useful or convenient for the use of such improvement by this state. The conveyance shall be made to the highest and most responsible bidder at a public sale held for that purpose.

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