Assigned to GOV FOR COMMITTEE ARIZONA STATE SENATE Fifty-Fifth Legislature, Second Regular Session REVISED FACT SHEET FOR S.B. 1055 election process; contractors and contracts Purpose Deems a contractor that enters into a contract to provide election-related equipment or services and that fails to perform its obligations under the terms of the contract liable for liquidated damages. Classifies failure to perform contractual obligations by a contractor providing election- related equipment or services as a class 2 misdemeanor. Background Machines or devices used at any election for federal, state or county offices may only be certified for use in Arizona and may only be used in Arizona if they have been tested, approved and comply with the Help America Vote Act of 2002. If approved, the electronic management system or vote tabulating device may be used at any or all elections for voting, recording and counting votes cast in an election. The Secretary of State (SOS) may revoke the certification of any voting system or device for use in any election in Arizona if certain conditions are met (A.R.S. § 16-442). In reaching a preliminary decision to decertify, the SOS may take seven factors into account, including if there was any material breach of contact with any Arizona jurisdiction (EPM Ch. 4 (I)(B)). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Deems a contractor that enters into a contract with Arizona or a county to provide election- related equipment or services and that fails to perform its obligations under the terms of the contract liable for liquidated damages in an amount equivalent to the amount paid under the terms of the contract. 2. Classifies, as a class 2 misdemeanor, failure to perform contractual obligations by a contractor regarding state or county election related equipment or services. 3. Becomes effective on the general effective date. Revisions • Adds a fiscal impact statement. Prepared by Senate Research January 24, 2022 MH/HW/slp