The proposed bill would significantly update the Arizona Revised Statutes by establishing the Arizona hybrid procurement model as the exclusive framework for performance-based contracting within the Arizona Health Care Cost Containment System (AHCCCS) managed care programs, effective October 1, 2027. This change would prohibit AHCCCS from issuing requests for proposals, competitive sealed proposals or similar solicitations for managed care contractors and require all selection, evaluation, continuation, expansion, limitation, suspension, and termination of contractors to be conducted solely under the Arizona hybrid model. The bill introduces a new article, Article 3.1, which defines key terms and outlines a performance-based procurement framework that evaluates contractors based on objective, measurable operational performance over a defined multi-year period. Furthermore, the bill mandates that the Arizona hybrid model include performance-based selection and retention of contractors, a defined four-year performance evaluation phase, and objective evaluation standards. It also requires AHCCCS to develop a standardized performance rubric and adopt rules for performance bond requirements, ensuring transparency and accountability. The legislation emphasizes a structured procurement process with eligibility determination, operational readiness reviews, and performance evaluations, aiming to streamline operations and enhance care quality. Additionally, it includes provisions for market fairness, member choice, and compliance with federal regulations, while exempting AHCCCS from certain rulemaking requirements for timely implementation.