The proposed bill would amend current statutes regarding the cancellation of contracts by the state and its political subdivisions. Under the new provisions, the state, its political subdivisions, or any department or agency may cancel any contract made by them if any individual significantly involved in the contract's initiation or negotiation is also an employee or consultant of another party to the contract. This change clarifies the conditions under which contracts can be canceled without penalty, ensuring that conflicts of interest are addressed more explicitly.

Additionally, the bill introduces new definitions and clarifications regarding the parties involved in contracts. It specifies that "any other party" does not include the federal government or any federal agency, and it clarifies that "political subdivisions" do not encompass entities formed under specific titles in the Arizona Revised Statutes. The bill also updates the terminology from "cancelled" to "canceled" in reference to leases of state trust land, ensuring consistency in language throughout the statute. Overall, these updates aim to enhance transparency and accountability in state contracting processes.

Statutes affected:
Introduced Version: 3-447
Senate Engrossed Version: 3-447
House Engrossed Version: 38-511