HB2733 - 492R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 15, chapter 2, article 2, Arizona Revised Statutes, is amended by adding sections 15-249 and 15‑249.01, to read:

START_STATUTE15-249. Department of education; contracts for evaluation of data collection, compilation and reporting and for updating of student accountability information system; reports; review; reversion

A. The superintendent of public instruction shall enter into contracts with public or private entities to carry out the purposes of this section.

B. On or before august 1, 2010, the department of education shall issue a request for proposal to evaluate the existing system of data collection, compilation and reporting conducted by the department. The department shall award a contract pursuant to this subsection no later than October 1, 2010. The request for proposal shall require the evaluation to include:

1. A detailed description of hardware, software and networking infrastructure associated with the student accountability information system prescribed in chapter 9, article 8 of this title and the data warehouse.

2. A description of data elements including the number and frequency of data interfaces between external entities.

3. The current system's capability to incorporate the new data elements required by the American recovery and reinvestment act by September 30, 2011.

4. Recommendations for a scope of work for the development of a replacement or upgrade of the current system.

C. On or before March 31, 2011, the department of education shall issue, in addition to the request for proposal prescribed in subsection B, a request for proposal to replace or update the student accountability information system prescribed in chapter 9, article 8 of this title and to bring that system into compliance with the American recovery and reinvestment act. The department shall award a contract pursuant to this subsection no later than August 1, 2011.

D. The contract shall require the contractor to:

1. Successfully attain performance goals prescribed by the superintendent of public instruction relating to improvement of the data collection, compilation and reporting duties prescribed in this title.

2. Develop and maintain a system that is accessible through commonly used internet web browsers to carry out the data collection, compilation and reporting duties prescribed in this title.

3. Demonstrate that it has the qualifications, operations and management experience and experienced personnel necessary to carry out the terms of the contract and the ability to comply with applicable standards.

4. Provide a history of successfully operating and managing data collection, compilation and reporting tasks.

5. Provide a history of successfully delivering services related to data collection, compilation, service delivery and reporting tasks.

E. The contract shall allow the superintendent of public instruction to renew the contracts for two subsequent periods of not more than three years each and shall prescribe the circumstances under which the superintendent of public instruction may terminate the contracts. The contracts shall allow the state to cancel any contract at any time after the first year of operation, without penalty to this state, on ninety days' written notice and shall require the contractor to be in compliance at all times with state and federal law.

F. The contract may provide for annual contract price or cost adjustments, except that any adjustments may be made only once each year effective on the anniversary of the contract's effective date. Any adjustment made pursuant to the terms of the contract must be applied to the total payments made to the contractor for the previous contract year and shall not exceed the percentage of change in the average consumer price index as published by the united states department of labor, bureau of labor statistics between that figure for the latest calendar year and the next previous calendar year. Any price or cost adjustments that are different than those authorized in this subsection may be made only if the legislature specifically authorizes the adjustments and appropriates monies for that purpose, if required.

G. The superintendent of public instruction shall not award a contract pursuant to this section unless:

1. It receives an acceptable proposal pursuant to any request for proposals. For the purposes of this paragraph, "acceptable proposal" means a proposal that substantially meets all of the requirements or conditions prescribed in this section and in the request for proposals.

2. The proposal offers a level and quality of services that equal or exceed those that would be provided by this state.

3. The contractor provides audited financial statements for the previous five years, or for each year the contractor has been in operation if fewer than five years, and provides other financial information as requested.

H. The sovereign immunity of this state does not apply to the contractor. The contractor or any agent of the contractor may not plead the defense of sovereign immunity in any action arising out of the performance of the contract.

I. The contract terms are subject to review by the joint legislative budget committee before placement of any advertisement that solicits a response to a request for proposals. Any proposed modification or amendment to the contract is subject to prior review by the joint legislative budget committee.

J. During its first year of operation under a contract pursuant to this section, the contracting entity shall submit monthly reports to the department as prescribed by the department. Thereafter, the contracting entity shall submit quarterly reports to the department as prescribed by the department.

K. At the end of the second year of the contract, an independent evaluator selected by the superintendent of public instruction shall conduct and complete a performance review to determine if the contracting entity has met the goals specified in the contract. The independent evaluator shall submit a report of its findings to the governor, the president of the senate, the speaker of the house of representatives on or before May 1, and shall provide a copy of its report to the secretary of state.

L. All appropriated monies that remain unexpended and unencumbered on the expiration date of any contract entered into pursuant to this section revert to the state general fund. END_STATUTE

START_STATUTE15-249.01. Data governance commission; membership; terms; duties

A. The data governance commission is established in the department of education consisting of:

1. The chief technology managers, or the managers' designees, of each of the universities under the jurisdiction of the Arizona board of regents.

2. The chief technology manager, or the manager's designee, of a community college district located in a county with a population of eight hundred thousand persons or more who has expertise in technology and who is appointed by the governor.

3. The chief technology manager, or the manager's designee, of a community college district located in a county with a population of less than eight hundred thousand persons who has expertise in technology and who is appointed by the governor.

4. The chief executive officer of the Arizona early childhood development and health board or the chief executive officer's designee.

5. An officer or employee of a school district located in a county with a population of eight hundred thousand persons or more who has expertise in technology and who is appointed by the governor.

6. An officer or employee of a school district located in a county with a population of less than eight hundred thousand persons who has expertise in technology and who is appointed by the governor.

7. An officer or employee of a charter school located in a county with a population of eight hundred thousand persons or more who has expertise in technology and who is appointed by the president of the senate.

8. An officer or employee of a charter school located in a county with a population of less than eight hundred thousand persons who has expertise in technology and who is appointed by the speaker of the house of representatives.

9. Two representatives of the business community, one of whom is appointed by the president of the senate and one of whom is appointed by the speaker of the house of representatives.

10. The superintendent of public instruction or the superintendent's designee.

B. The initial appointed members shall assign themselves by lot to terms of two, three and four years in office. All subsequent appointed members of the commission shall serve four year terms. The chairperson shall notify the governor, the speaker of the house of representatives and the president of the senate on appointments of these terms. Members of the commission shall elect a chairperson from among the members of the commission. Members of the commission shall not receive compensation. The department of education shall provide adequate staff support for the commission.

C. The commission shall:

1. Establish guidelines related to the following:

(a) Managed data access.

(b) Technology.

(d) Adequacy of training.

(e) Adequacy of data model implementation.

(f) Prioritization of funding opportunities.

(g) Resolution of data conflicts.

2. Provide recommendations on technology spending.

3. Provide analyses and recommendations of the following:

(a) The control of data confidentiality and data security for stored data and data in transmission.

(b) Access privileges and access management.

(d) Data standards for stored data and data in transmission, including rules for definition, format, source, provenance, element level and contextual integrity.

(e) Documentation standards for data elements and systems components.

(f) Data archival and retrieval management systems, including change control and change tracking.

(g) Publication of standard and ad hoc reports for state and local level use on student achievement.

(h) Publication of implementation timelines and progress.

4. Submit an annual report on or before December 1 regarding the commission's activities to the governor, the speaker of the house of representatives and the president of the senate. The data governance commission shall provide copies of this report to the secretary of state. END_STATUTE

Sec. 2. Task force on data privatization; delayed repeal

A. The task force on data privatization is established consisting of the following members, each of whom shall have expertise in educational technology:

1. Two members who are appointed by the state board of education.

2. Two members who are appointed by the Arizona board of regents.

3. One person who is employed by a community college district in this state and who is appointed by the state board of education.

4. One member who is appointed by the president of the senate.

5. One member who is appointed by the speaker of the house of representatives.

B. The state board of education shall select one of the appointed members to serve as the task force chairperson.

C. The task force shall:

1. Design a request for proposals form to be used by the department of education to solicit proposals from private entities to carry out the purposes of section 15‑249, Arizona Revised Statutes, as added by this act.

2. Submit the request for proposals form to the department of education by December 31, 2010.

D. The task force may use the services and expertise of the staff of the legislature and the staff of the department of education.

E. This section is repealed from and after April 30, 2011.