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 would retain the ability to cancel contracts without penalty if any individual involved in the contract's initiation or negotiation is also an employee or consultant of another party to the contract. This language clarifies the conditions under which the state can exercise its cancellation rights, ensuring that conflicts of interest are addressed.

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 its agencies, and it clarifies that "political subdivisions" do not encompass entities formed under specific titles in the Arizona Revised Statutes. These updates aim to enhance transparency and accountability in state contracting processes while maintaining the existing framework of the law.

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