The proposed bill, if enacted, would amend current statutes regarding state contracts by exempting the federal government and its agencies from the state's contract cancellation provisions. Under current law, any political subdivision in Arizona can cancel a contract without penalty within three years if a person involved in the contract is found to be an employee or agent of another party. The bill specifies that the term "any other party" does not include the federal government or any federal agency, thereby allowing federal entities to avoid the cancellation provisions that apply to other parties.

Additionally, the bill updates the language in several sections to clarify the rights and obligations of the state and its political subdivisions regarding contract cancellations. It maintains the existing rights to cancel contracts and recoup fees but modifies the definitions and terms used in the statute. For instance, it changes "cancelled" to "canceled" and clarifies that "political subdivisions" do not include certain entities formed under specific titles. Overall, the bill aims to streamline the language and clarify the applicability of contract cancellation provisions while providing an exemption for federal entities.

Statutes affected:
Introduced Version: 38-511
House Engrossed Version: 38-511