The proposed bill would amend current statutes regarding the cancellation of contracts by the state and its political subdivisions. Under the new law, the state, its political subdivisions, or any department or agency may cancel any contract made by them within three years of its execution 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 provision clarifies the conditions under which contracts can be canceled and emphasizes the importance of avoiding conflicts of interest.

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 include entities formed under specific titles in the Arizona Revised Statutes. The bill also updates the terminology used in the current law, such as changing "cancelled" to "canceled," ensuring consistency in language throughout the statute.

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