Arizona 2025 Regular Session

Arizona Senate Bill SB1612 Compare Versions

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1-Senate Engrossed document retention; proposals; donations State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SENATE BILL 1612 An Act amending sections 36-2988 and 41-2501, Arizona Revised Statutes; amending title 41, chapter 23, article 1, Arizona Revised Statutes, by adding section 41-2505; amending section 41-2550, Arizona Revised Statutes; amending title 41, chapter 24, article 1, Arizona Revised Statutes, by adding section 41-2707; relating to the department of administration. (TEXT OF BILL BEGINS ON NEXT PAGE)
1+REFERENCE TITLE: document retention; proposals; donations State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1612 Introduced by Senators Shope: Petersen An Act amending sections 36-2988 and 41-2501, Arizona Revised Statutes; amending title 41, chapter 23, article 1, Arizona Revised Statutes, by adding section 41-2505; amending section 41-2550, Arizona Revised Statutes; amending title 41, chapter 24, article 1, Arizona Revised Statutes, by adding section 41-2707; relating to the department of administration. (TEXT OF BILL BEGINS ON NEXT PAGE)
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11+REFERENCE TITLE: document retention; proposals; donations
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5970 amending sections 36-2988 and 41-2501, Arizona Revised Statutes; amending title 41, chapter 23, article 1, Arizona Revised Statutes, by adding section 41-2505; amending section 41-2550, Arizona Revised Statutes; amending title 41, chapter 24, article 1, Arizona Revised Statutes, by adding section 41-2707; relating to the department of administration.
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6778 Be it enacted by the Legislature of the State of Arizona: Section 1. Section 36-2988, Arizona Revised Statutes, is amended to read: START_STATUTE36-2988. Delivery of services; health plans; requirements A. To the extent possible, the administration shall use contractors that have a contract with the administration pursuant to article 1 of this chapter or qualifying plans to provide services to members who qualify for the program. B. The administration has full authority to amend existing contracts awarded pursuant to article 1 of this chapter. C. As determined by the director, reinsurance may be provided against expenses in excess of a specified amount on behalf of any member for covered emergency services, inpatient services or outpatient services in the same manner as reinsurance provided under article 1 of this chapter. Subject to the approval of the director, reinsurance may be obtained against expenses in excess of a specified amount on behalf of any member. D. Notwithstanding any other law, the administration may procure, provide or coordinate covered services by interagency agreement with authorized agencies of this state for distinct groups of members, including persons eligible for children's rehabilitative services through the department of economic security and members eligible for comprehensive medical and dental benefits through the department of child safety. E. After contracts are awarded pursuant to this section, the director may negotiate with any successful bidder for the expansion or contraction of services or service areas. F. Payments to contractors shall be made monthly and may be subject to contract provisions requiring the retention of a specified percentage of the payment by the director, a reserve fund or any other contract provisions by which adjustments to the payments are made based on utilization efficiency, including incentives for maintaining quality care and minimizing unnecessary inpatient services. Reserve monies withheld from contractors shall be distributed to providers who meet performance standards established by the director. Any reserve fund established pursuant to this subsection shall be established as a separate account within the Arizona health care cost containment system. G. The director may negotiate at any time with a hospital on behalf of a contractor for inpatient hospital services and outpatient hospital services provided pursuant to the requirements specified in section 36-2904. H. A contractor may require that subcontracting providers or noncontracting providers be paid for covered services, other than hospital services, according to the capped fee-for-service schedule adopted by the administration or at lower rates as may be negotiated by the contractor. I. A school district may perform outreach and information activities that relate to this article, with permission of the school principal and school district. The administration and contractors may collaborate with entities such as community based organizations, faith based organizations, schools and school districts for outreach and information activities related to this article. Outreach and information activities shall not include delivery of services, screening activities, eligibility determination or enrollment related to this article. Outreach and information activities include promotion of health care coverage, participation in school events and distribution of applications and materials to pupils and their families. Outreach and information activities performed by the administration, contractors or a school district shall not reduce or interfere with classroom instruction time. J. The administration is exempt from the procurement code pursuant to section 41-2501. END_STATUTE Sec. 2. Section 41-2501, Arizona Revised Statutes, is amended to read: START_STATUTE41-2501. Applicability A. This chapter applies only to procurements initiated after January 1, 1985 unless the parties agree to its application to procurements initiated before that date. B. This chapter applies to every expenditure of public monies, including federal assistance monies except as otherwise specified in section 41-2637, by this state, acting through a state governmental unit, under any contract, except that this chapter does not apply to either grants, or contracts between this state and its political subdivisions or other governments, except as provided in chapter 24 of this title and in article 10 of this chapter. This chapter also applies to the disposal of state materials. This chapter and rules adopted under this chapter do not prevent any state governmental unit or political subdivision from complying with the terms of any grant, gift, bequest or cooperative agreement. C. All political subdivisions and other local public agencies of this state may adopt all or any part of this chapter and the rules adopted pursuant to this chapter. D. Notwithstanding any other law, sections 41-2517 and 41-2546 apply to any agency as defined in section 41-1001, including the office of the governor. E. The Arizona board of regents and the legislative and judicial branches of state government are not subject to this chapter except as prescribed in subsections F and G of this section. F. The Arizona board of regents shall adopt rules prescribing procurement policies and procedures for itself and institutions under its jurisdiction. The rules must be substantially equivalent to the other policies and procedures prescribed in this chapter, including sections 41-2576 and 41-2577. G. The judicial branch shall adopt rules prescribing procurement policies and procedures for itself and institutions under its jurisdiction. The rules must be substantially equivalent to the policies and procedures prescribed in this chapter. H. The Arizona state lottery commission is exempt from this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets and related materials. The executive director of the Arizona state lottery commission shall adopt rules substantially equivalent to the policies and procedures in this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets or related materials. All other procurement shall be as prescribed by this chapter. I. The Arizona health care cost containment system administration is exempt from this chapter for provider contracts pursuant to section 36-2904, subsection A and contracts for goods and services, including program contractor contracts pursuant to title 36, chapter 29, articles 2 and 3 and contracts with regional behavioral health authorities pursuant to title 36, chapter 34. All other procurement, including contracts for the statewide administrator of the program pursuant to section 36-2903, subsection B, shall be as prescribed by this chapter. J. I. Arizona correctional industries is exempt from this chapter for purchases of raw materials, components and supplies that are used in the manufacture or production of goods or services for sale entered into pursuant to section 41-1622. All other procurement shall be as prescribed by this chapter. K. J. The state transportation board and the director of the department of transportation are exempt from this chapter other than sections 41-2517 and 41-2586 and are subject to title 28, chapter 20 and 2 Code of Federal Regulations section 200.317 for the procurement of the following: 1. All items of construction, reconstruction, rehabilitation, preservation or improvement undertaken on highway infrastructure. 2. Engineering services and any other work or activity to carry out engineering services related to highway infrastructure. 3. Right-of-way services related to land titles, appraisals, real property acquisitions, relocation services, property management and facility design. 4. Any other construction, reconstruction, rehabilitation, preservation or improvement work or activity that is required pursuant to title 28, chapter 20. L. k. The Arizona highways magazine is exempt from this chapter for contracts for the production, promotion, distribution and sale of the magazine and related products and for contracts for sole source creative works entered into pursuant to section 28-7314, subsection A, paragraph 5. All other procurement shall be as prescribed by this chapter. M. L. The secretary of state is exempt from this chapter for contracts entered into pursuant to section 41-1012 to publish and sell the administrative code. All other procurement shall be as prescribed by this chapter. N. M. This chapter does not apply to contracts for professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial proceeding in which this state is or may become a party or to contract for special investigative services for law enforcement purposes. O. N. The head of any state governmental unit, in relation to any contract exempted by this section from this chapter, has the same authority to adopt rules, procedures or policies as is delegated to the director pursuant to this chapter. P. O. Agreements negotiated by legal counsel representing this state in settlement of litigation or threatened litigation are exempt from this chapter. Q. P. This chapter is not applicable to contracts entered into by the department of economic security: 1. With a provider licensed or certified by an agency of this state to provide child day care services. 2. With area agencies on aging created pursuant to the older Americans act of 1965 (P.L. 89-73; 79 Stat. 218; 42 United States Code sections 3001 through 3058ff). 3. For services pursuant to title 36, chapter 29, article 2. 4. With an eligible entity as defined by Public Law 105-285, section 673(1)(A)(i), as amended, for designated community services block grant program monies and any other monies given to the eligible entity that accomplishes the purpose of Public Law 105-285, section 672. R. Q. The Arizona health care cost containment system may not require that persons with whom it contracts follow this chapter for the purposes of subcontracts entered into for the provision of the following: 1. Mental health services pursuant to section 36-189, subsection B. 2. Services for the seriously mentally ill pursuant to title 36, chapter 5, article 10. 3. Drug and alcohol services pursuant to section 36-141. S. R. The department of health services may not require that persons with whom it contracts follow this chapter for the purpose of subcontracts entered into for the provision of domestic violence services pursuant to title 36, chapter 30, article 1. T. S. The department of health services is exempt from this chapter for contracts for services of physicians at the Arizona state hospital and contracts to provide medically necessary physical health care to individuals under the care of the Arizona state hospital. U. T. Contracts for goods and services approved by the board of trustees of the public safety personnel retirement system are exempt from this chapter. V. U. The Arizona department of agriculture is exempt from this chapter with respect to contracts for private labor and equipment to effect cotton or cotton stubble plow-up pursuant to rules adopted under title 3, chapter 2, article 1. W. V. The Arizona state parks board is exempt from this chapter for purchases of guest supplies and items for resale such as food, linens, gift items, sundries, furniture, china, glassware and utensils for the facilities located in the Tonto natural bridge state park. X. W. The Arizona state parks board is exempt from this chapter for the purchase, production, promotion, distribution and sale of publications, souvenirs and sundry items obtained and produced for resale. Y. x. The Arizona state schools for the deaf and the blind are exempt from this chapter for the purchase of textbooks and when purchasing products through a cooperative that is organized and operates in accordance with state law if such products are not available on a statewide contract and are related to the operation of the schools or are products for which special discounts are offered for educational institutions. Z. y. Expenditures of monies in the morale, welfare and recreational fund established by section 26-153 are exempt from this chapter. AA. z. Notwithstanding section 41-2534, the director of the state department of corrections may contract with local medical providers in counties with a population of less than four hundred thousand persons for the following purposes: 1. To acquire hospital and professional medical services for inmates who are incarcerated in state department of corrections facilities that are located in those counties. 2. To ensure the availability of emergency medical services to inmates in all counties by contracting with the closest medical facility that offers emergency treatment and stabilization. BB. aa. The department of environmental quality is exempt from this chapter for contracting for procurements relating to the water quality assurance revolving fund program established pursuant to title 49, chapter 2, article 5. The department shall engage in a source selection process that is similar to the procedures prescribed by this chapter. The department may contract for remedial actions with a single selection process. The exclusive remedy for disputes or claims relating to contracting pursuant to this subsection is as prescribed by article 9 of this chapter and the rules adopted pursuant to that article. All other procurement by the department shall be as prescribed by this chapter. CC. bb. The motor vehicle division of the department of transportation is exempt from this chapter for third-party authorizations pursuant to title 28, chapter 13, only if all of the following conditions exist: 1. The division does not pay any public monies to an authorized third party. 2. Exclusivity is not granted to an authorized third party. 3. The director has complied with the requirements prescribed in title 28, chapter 13 in selecting an authorized third party. DD. cc. This section does not exempt third-party authorizations pursuant to title 28, chapter 13 from any other applicable law. EE. dd. The state forester is exempt from this chapter for purchases and contracts relating to wildland fire suppression and pre-positioning equipment resources and for other activities related to combating wildland fires and other unplanned risk activities, including fire, flood, earthquake, wind and hazardous material responses. All other procurement by the state forester shall be as prescribed by this chapter. FF. ee. The cotton research and protection council is exempt from this chapter for procurements. GG. ff. The Arizona commerce authority is exempt from this chapter, except article 10 for the purpose of cooperative purchases. The authority shall adopt policies, procedures and practices, in consultation with the department of administration, that are similar to and based on the policies and procedures prescribed by this chapter for the purpose of increased public confidence, fair and equitable treatment of all persons engaged in the process and fostering broad competition while accomplishing flexibility to achieve the authority's statutory requirements. The authority shall make its policies, procedures and practices available to the public. The authority may exempt specific expenditures from the policies, procedures and practices. HH. gg. The Arizona exposition and state fair board is exempt from this chapter for contracts for professional entertainment. II. hh. This chapter does not apply to purchases of water, gas or electric utilities. JJ. ii. This chapter does not apply to professional certifications, professional memberships and conference registrations. KK. jj. The department of gaming is exempt from this chapter for problem gambling treatment services contracts with licensed behavioral health professionals. LL. kk. This chapter does not apply to contracts for credit reporting services. MM. ll. This chapter does not apply to contracts entered into by the department of child safety: 1. With a provider of family foster care pursuant to section 8-503. 2. With an eligible entity as defined by Public Law 105-285, section 673(1)(A)(i), as amended, for designated community services block grant program monies and any other monies given to the eligible entity that accomplishes the purpose of Public Law 105-285, section 672. 3. For services pursuant to title 36, chapter 29, article 1 and as set forth in the approved medicaid state plan. NN. mm. This chapter does not apply to contracts entered into by the department of economic security with a financial institution to serve as a program manager and depository under section 46-903. END_STATUTE Sec. 3. Title 41, chapter 23, article 1, Arizona Revised Statutes, is amended by adding section 41-2505, to read: START_STATUTE41-2505. Request for proposals; governor; donations; disclosure Notwithstanding any other law, a company that responds to a request for proposals shall disclose anything of value that the company, its officers or directors or any of their family members have PROVIDED, DIRECTLY or indirectly, during the preceding five years to any of the following: 1. The governor. 2. any entity established, financed, maintained or controlled by the Governor or an agent of the Governor, including a campaign committee, a joint fundraising committee or an inaugural fund. 3. an entity that advocated for the election of the Governor or for the defeat of an electoral opponent of the Governor, including a political committee or other nonprofit organization that made any independent expenditures. END_STATUTE Sec. 4. Section 41-2550, Arizona Revised Statutes, is amended to read: START_STATUTE41-2550. Retention of procurement records; resolicitation of contracts A. All procurement records shall be retained and disposed of in accordance with records retention guidelines and schedules approved by the Arizona state library, archives and public records. B. State agencies and state employees may not destroy any notes taken during the evaluation of a company that responds to a request for proposals. If an agency or an employee destroys any notes pursuant to this subsection, All contracts that were related to the destroyed notes and that were agreed to FROM AND AFTER THE EFFECTIVE DATE OF THIS AMENDMENT TO THIS SECTION MAY be resolicited. END_STATUTE Sec. 5. Title 41, chapter 24, article 1, Arizona Revised Statutes, is amended by adding section 41-2707, to read: START_STATUTE41-2707. Grants; governor donations; disclosure Notwithstanding any other law, a company that applies for a grant shall disclose anything of value that the company, its officers or directors or any of their family members have PROVIDED, DIRECTLY or indirectly, during the preceding five years to any of the following: 1. The governor. 2. any entity established, financed, maintained or controlled by the Governor or an agent of the Governor, including a campaign committee, a joint fundraising committee or an inaugural fund. 3. an entity that advocated for the election of the Governor or for the defeat of an electoral opponent of the Governor, including a political committee or other nonprofit organization that made any independent expenditures. END_STATUTE
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6980 Be it enacted by the Legislature of the State of Arizona:
7081
7182 Section 1. Section 36-2988, Arizona Revised Statutes, is amended to read:
7283
7384 START_STATUTE36-2988. Delivery of services; health plans; requirements
7485
7586 A. To the extent possible, the administration shall use contractors that have a contract with the administration pursuant to article 1 of this chapter or qualifying plans to provide services to members who qualify for the program.
7687
7788 B. The administration has full authority to amend existing contracts awarded pursuant to article 1 of this chapter.
7889
7990 C. As determined by the director, reinsurance may be provided against expenses in excess of a specified amount on behalf of any member for covered emergency services, inpatient services or outpatient services in the same manner as reinsurance provided under article 1 of this chapter. Subject to the approval of the director, reinsurance may be obtained against expenses in excess of a specified amount on behalf of any member.
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8192 D. Notwithstanding any other law, the administration may procure, provide or coordinate covered services by interagency agreement with authorized agencies of this state for distinct groups of members, including persons eligible for children's rehabilitative services through the department of economic security and members eligible for comprehensive medical and dental benefits through the department of child safety.
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8394 E. After contracts are awarded pursuant to this section, the director may negotiate with any successful bidder for the expansion or contraction of services or service areas.
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8596 F. Payments to contractors shall be made monthly and may be subject to contract provisions requiring the retention of a specified percentage of the payment by the director, a reserve fund or any other contract provisions by which adjustments to the payments are made based on utilization efficiency, including incentives for maintaining quality care and minimizing unnecessary inpatient services. Reserve monies withheld from contractors shall be distributed to providers who meet performance standards established by the director. Any reserve fund established pursuant to this subsection shall be established as a separate account within the Arizona health care cost containment system.
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8798 G. The director may negotiate at any time with a hospital on behalf of a contractor for inpatient hospital services and outpatient hospital services provided pursuant to the requirements specified in section 36-2904.
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89100 H. A contractor may require that subcontracting providers or noncontracting providers be paid for covered services, other than hospital services, according to the capped fee-for-service schedule adopted by the administration or at lower rates as may be negotiated by the contractor.
90101
91102 I. A school district may perform outreach and information activities that relate to this article, with permission of the school principal and school district. The administration and contractors may collaborate with entities such as community based organizations, faith based organizations, schools and school districts for outreach and information activities related to this article. Outreach and information activities shall not include delivery of services, screening activities, eligibility determination or enrollment related to this article. Outreach and information activities include promotion of health care coverage, participation in school events and distribution of applications and materials to pupils and their families. Outreach and information activities performed by the administration, contractors or a school district shall not reduce or interfere with classroom instruction time.
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93104 J. The administration is exempt from the procurement code pursuant to section 41-2501. END_STATUTE
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95106 Sec. 2. Section 41-2501, Arizona Revised Statutes, is amended to read:
96107
97108 START_STATUTE41-2501. Applicability
98109
99110 A. This chapter applies only to procurements initiated after January 1, 1985 unless the parties agree to its application to procurements initiated before that date.
100111
101112 B. This chapter applies to every expenditure of public monies, including federal assistance monies except as otherwise specified in section 41-2637, by this state, acting through a state governmental unit, under any contract, except that this chapter does not apply to either grants, or contracts between this state and its political subdivisions or other governments, except as provided in chapter 24 of this title and in article 10 of this chapter. This chapter also applies to the disposal of state materials. This chapter and rules adopted under this chapter do not prevent any state governmental unit or political subdivision from complying with the terms of any grant, gift, bequest or cooperative agreement.
102113
103114 C. All political subdivisions and other local public agencies of this state may adopt all or any part of this chapter and the rules adopted pursuant to this chapter.
104115
105116 D. Notwithstanding any other law, sections 41-2517 and 41-2546 apply to any agency as defined in section 41-1001, including the office of the governor.
106117
107118 E. The Arizona board of regents and the legislative and judicial branches of state government are not subject to this chapter except as prescribed in subsections F and G of this section.
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109120 F. The Arizona board of regents shall adopt rules prescribing procurement policies and procedures for itself and institutions under its jurisdiction. The rules must be substantially equivalent to the other policies and procedures prescribed in this chapter, including sections 41-2576 and 41-2577.
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111122 G. The judicial branch shall adopt rules prescribing procurement policies and procedures for itself and institutions under its jurisdiction. The rules must be substantially equivalent to the policies and procedures prescribed in this chapter.
112123
113124 H. The Arizona state lottery commission is exempt from this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets and related materials. The executive director of the Arizona state lottery commission shall adopt rules substantially equivalent to the policies and procedures in this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets or related materials. All other procurement shall be as prescribed by this chapter.
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115126 I. The Arizona health care cost containment system administration is exempt from this chapter for provider contracts pursuant to section 36-2904, subsection A and contracts for goods and services, including program contractor contracts pursuant to title 36, chapter 29, articles 2 and 3 and contracts with regional behavioral health authorities pursuant to title 36, chapter 34. All other procurement, including contracts for the statewide administrator of the program pursuant to section 36-2903, subsection B, shall be as prescribed by this chapter.
116127
117128 J. I. Arizona correctional industries is exempt from this chapter for purchases of raw materials, components and supplies that are used in the manufacture or production of goods or services for sale entered into pursuant to section 41-1622. All other procurement shall be as prescribed by this chapter.
118129
119130 K. J. The state transportation board and the director of the department of transportation are exempt from this chapter other than sections 41-2517 and 41-2586 and are subject to title 28, chapter 20 and 2 Code of Federal Regulations section 200.317 for the procurement of the following:
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121132 1. All items of construction, reconstruction, rehabilitation, preservation or improvement undertaken on highway infrastructure.
122133
123134 2. Engineering services and any other work or activity to carry out engineering services related to highway infrastructure.
124135
125136 3. Right-of-way services related to land titles, appraisals, real property acquisitions, relocation services, property management and facility design.
126137
127138 4. Any other construction, reconstruction, rehabilitation, preservation or improvement work or activity that is required pursuant to title 28, chapter 20.
128139
129140 L. k. The Arizona highways magazine is exempt from this chapter for contracts for the production, promotion, distribution and sale of the magazine and related products and for contracts for sole source creative works entered into pursuant to section 28-7314, subsection A, paragraph 5. All other procurement shall be as prescribed by this chapter.
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131142 M. L. The secretary of state is exempt from this chapter for contracts entered into pursuant to section 41-1012 to publish and sell the administrative code. All other procurement shall be as prescribed by this chapter.
132143
133144 N. M. This chapter does not apply to contracts for professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial proceeding in which this state is or may become a party or to contract for special investigative services for law enforcement purposes.
134145
135146 O. N. The head of any state governmental unit, in relation to any contract exempted by this section from this chapter, has the same authority to adopt rules, procedures or policies as is delegated to the director pursuant to this chapter.
136147
137148 P. O. Agreements negotiated by legal counsel representing this state in settlement of litigation or threatened litigation are exempt from this chapter.
138149
139150 Q. P. This chapter is not applicable to contracts entered into by the department of economic security:
140151
141152 1. With a provider licensed or certified by an agency of this state to provide child day care services.
142153
143154 2. With area agencies on aging created pursuant to the older Americans act of 1965 (P.L. 89-73; 79 Stat. 218; 42 United States Code sections 3001 through 3058ff).
144155
145156 3. For services pursuant to title 36, chapter 29, article 2.
146157
147158 4. With an eligible entity as defined by Public Law 105-285, section 673(1)(A)(i), as amended, for designated community services block grant program monies and any other monies given to the eligible entity that accomplishes the purpose of Public Law 105-285, section 672.
148159
149160 R. Q. The Arizona health care cost containment system may not require that persons with whom it contracts follow this chapter for the purposes of subcontracts entered into for the provision of the following:
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151162 1. Mental health services pursuant to section 36-189, subsection B.
152163
153164 2. Services for the seriously mentally ill pursuant to title 36, chapter 5, article 10.
154165
155166 3. Drug and alcohol services pursuant to section 36-141.
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157168 S. R. The department of health services may not require that persons with whom it contracts follow this chapter for the purpose of subcontracts entered into for the provision of domestic violence services pursuant to title 36, chapter 30, article 1.
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159170 T. S. The department of health services is exempt from this chapter for contracts for services of physicians at the Arizona state hospital and contracts to provide medically necessary physical health care to individuals under the care of the Arizona state hospital.
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161172 U. T. Contracts for goods and services approved by the board of trustees of the public safety personnel retirement system are exempt from this chapter.
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163174 V. U. The Arizona department of agriculture is exempt from this chapter with respect to contracts for private labor and equipment to effect cotton or cotton stubble plow-up pursuant to rules adopted under title 3, chapter 2, article 1.
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165176 W. V. The Arizona state parks board is exempt from this chapter for purchases of guest supplies and items for resale such as food, linens, gift items, sundries, furniture, china, glassware and utensils for the facilities located in the Tonto natural bridge state park.
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167178 X. W. The Arizona state parks board is exempt from this chapter for the purchase, production, promotion, distribution and sale of publications, souvenirs and sundry items obtained and produced for resale.
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169180 Y. x. The Arizona state schools for the deaf and the blind are exempt from this chapter for the purchase of textbooks and when purchasing products through a cooperative that is organized and operates in accordance with state law if such products are not available on a statewide contract and are related to the operation of the schools or are products for which special discounts are offered for educational institutions.
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171182 Z. y. Expenditures of monies in the morale, welfare and recreational fund established by section 26-153 are exempt from this chapter.
172183
173184 AA. z. Notwithstanding section 41-2534, the director of the state department of corrections may contract with local medical providers in counties with a population of less than four hundred thousand persons for the following purposes:
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175186 1. To acquire hospital and professional medical services for inmates who are incarcerated in state department of corrections facilities that are located in those counties.
176187
177188 2. To ensure the availability of emergency medical services to inmates in all counties by contracting with the closest medical facility that offers emergency treatment and stabilization.
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179190 BB. aa. The department of environmental quality is exempt from this chapter for contracting for procurements relating to the water quality assurance revolving fund program established pursuant to title 49, chapter 2, article 5. The department shall engage in a source selection process that is similar to the procedures prescribed by this chapter. The department may contract for remedial actions with a single selection process. The exclusive remedy for disputes or claims relating to contracting pursuant to this subsection is as prescribed by article 9 of this chapter and the rules adopted pursuant to that article. All other procurement by the department shall be as prescribed by this chapter.
180191
181192 CC. bb. The motor vehicle division of the department of transportation is exempt from this chapter for third-party authorizations pursuant to title 28, chapter 13, only if all of the following conditions exist:
182193
183194 1. The division does not pay any public monies to an authorized third party.
184195
185196 2. Exclusivity is not granted to an authorized third party.
186197
187198 3. The director has complied with the requirements prescribed in title 28, chapter 13 in selecting an authorized third party.
188199
189200 DD. cc. This section does not exempt third-party authorizations pursuant to title 28, chapter 13 from any other applicable law.
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191202 EE. dd. The state forester is exempt from this chapter for purchases and contracts relating to wildland fire suppression and pre-positioning equipment resources and for other activities related to combating wildland fires and other unplanned risk activities, including fire, flood, earthquake, wind and hazardous material responses. All other procurement by the state forester shall be as prescribed by this chapter.
192203
193204 FF. ee. The cotton research and protection council is exempt from this chapter for procurements.
194205
195206 GG. ff. The Arizona commerce authority is exempt from this chapter, except article 10 for the purpose of cooperative purchases. The authority shall adopt policies, procedures and practices, in consultation with the department of administration, that are similar to and based on the policies and procedures prescribed by this chapter for the purpose of increased public confidence, fair and equitable treatment of all persons engaged in the process and fostering broad competition while accomplishing flexibility to achieve the authority's statutory requirements. The authority shall make its policies, procedures and practices available to the public. The authority may exempt specific expenditures from the policies, procedures and practices.
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197208 HH. gg. The Arizona exposition and state fair board is exempt from this chapter for contracts for professional entertainment.
198209
199210 II. hh. This chapter does not apply to purchases of water, gas or electric utilities.
200211
201212 JJ. ii. This chapter does not apply to professional certifications, professional memberships and conference registrations.
202213
203214 KK. jj. The department of gaming is exempt from this chapter for problem gambling treatment services contracts with licensed behavioral health professionals.
204215
205216 LL. kk. This chapter does not apply to contracts for credit reporting services.
206217
207218 MM. ll. This chapter does not apply to contracts entered into by the department of child safety:
208219
209220 1. With a provider of family foster care pursuant to section 8-503.
210221
211222 2. With an eligible entity as defined by Public Law 105-285, section 673(1)(A)(i), as amended, for designated community services block grant program monies and any other monies given to the eligible entity that accomplishes the purpose of Public Law 105-285, section 672.
212223
213224 3. For services pursuant to title 36, chapter 29, article 1 and as set forth in the approved medicaid state plan.
214225
215226 NN. mm. This chapter does not apply to contracts entered into by the department of economic security with a financial institution to serve as a program manager and depository under section 46-903. END_STATUTE
216227
217228 Sec. 3. Title 41, chapter 23, article 1, Arizona Revised Statutes, is amended by adding section 41-2505, to read:
218229
219230 START_STATUTE41-2505. Request for proposals; governor; donations; disclosure
220231
221232 Notwithstanding any other law, a company that responds to a request for proposals shall disclose anything of value that the company, its officers or directors or any of their family members have PROVIDED, DIRECTLY or indirectly, during the preceding five years to any of the following:
222233
223234 1. The governor.
224235
225236 2. any entity established, financed, maintained or controlled by the Governor or an agent of the Governor, including a campaign committee, a joint fundraising committee or an inaugural fund.
226237
227238 3. an entity that advocated for the election of the Governor or for the defeat of an electoral opponent of the Governor, including a political committee or other nonprofit organization that made any independent expenditures. END_STATUTE
228239
229240 Sec. 4. Section 41-2550, Arizona Revised Statutes, is amended to read:
230241
231242 START_STATUTE41-2550. Retention of procurement records; resolicitation of contracts
232243
233244 A. All procurement records shall be retained and disposed of in accordance with records retention guidelines and schedules approved by the Arizona state library, archives and public records.
234245
235246 B. State agencies and state employees may not destroy any notes taken during the evaluation of a company that responds to a request for proposals. If an agency or an employee destroys any notes pursuant to this subsection, All contracts that were related to the destroyed notes and that were agreed to FROM AND AFTER THE EFFECTIVE DATE OF THIS AMENDMENT TO THIS SECTION MAY be resolicited. END_STATUTE
236247
237248 Sec. 5. Title 41, chapter 24, article 1, Arizona Revised Statutes, is amended by adding section 41-2707, to read:
238249
239250 START_STATUTE41-2707. Grants; governor donations; disclosure
240251
241252 Notwithstanding any other law, a company that applies for a grant shall disclose anything of value that the company, its officers or directors or any of their family members have PROVIDED, DIRECTLY or indirectly, during the preceding five years to any of the following:
242253
243254 1. The governor.
244255
245256 2. any entity established, financed, maintained or controlled by the Governor or an agent of the Governor, including a campaign committee, a joint fundraising committee or an inaugural fund.
246257
247258 3. an entity that advocated for the election of the Governor or for the defeat of an electoral opponent of the Governor, including a political committee or other nonprofit organization that made any independent expenditures. END_STATUTE