Chapter 0201 - 562R - H Ver of SB1670

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

Section 1. Section 41-2559, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2559. Public-private partnership contracts

A. The director may enter into public-private partnership contracts to finance the technology needs of the purchasing agency. The funding for services under a public-private partnership contract entered into pursuant to this section shall be contingent on and computed according to established performance standards and shall be attributable to the successful implementation of the technology program for the period specified in the contract. The director may issue requests for information and requests for proposals to solicit private partners that are interested in providing programs under a contract entered into pursuant to this section.

B. Each request for proposals issued pursuant to this section shall require each private partner to propose specific performance improvements and measurement approaches to be used to measure the value delivered by the vendor technology solution. The director shall include an assessment of the proposed value of the vendor technology solution in its evaluation criteria to select the best value solution for the purchasing agency.

C. A contract entered into between the director and an automated systems vendor or an information technology VENDOR shall provide for payment of fees on a contractually specific amount based on the achievement of measured performance improvements that are mutually agreed to by the contractor and the director and monies for payment of these fees are not subject to legislative appropriation. The following are subject to review and approval by the director:

1. The terms of contracts entered into pursuant to this section relating to the measurement of the performance improvement attributable to the vendor technology program.

2. Payment of fees based on the achievement of the established performance measures.

D. On legislative AUTHORIZATION, the director of the department of ADMINISTRATION and the director of the department of emergency and military affairs may issue a request for proposals and enter into a public-private partnership contract for military rotary wing aviation flight and maintenance training and services.

D. E. Before a public-private partnership contract is awarded pursuant to this section, the joint legislative budget committee staff shall be consulted with regard to the potential fiscal impact of the contract to the state. If the joint legislative budget committee staff finds a significant negative fiscal impact to the state, the staff shall report its findings to the joint legislative budget committee. END_STATUTE

Sec. 2. Public-private partnerships; department of emergency and military affairs; department of administration; private sector entities; proposals; delayed repeal

A. Notwithstanding any other law, the department of emergency and military affairs and the department of administration may jointly establish public-private partnerships for military rotary wing aviation flight and maintenance training and services at locations the department of emergency and military affairs owns, administers or controls property. If the department of emergency and military affairs determines to proceed with a public-private partnership pursuant to this subsection, the department of emergency and military affairs and the department of administration shall work together to develop a request for proposals. The procurement of a private sector entity may only be done through a request for proposals.

B. The department of emergency and military affairs and the department of administration shall jointly establish eligibility requirements for private sector entities to be considered and the services and duties to be performed by the selected private sector entity. Private sector entities working with other companies to meet the eligibility requirements shall provide evidence of executed contracts or agreements with those companies. Private sector entities are required to demonstrate actual experience and ability to perform all elements of the scope of the work and other duties contained in the request for proposals. The private sector entity that is selected must have provided evidence to the satisfaction of the department of emergency and military affairs and the department of administration that it has the capacity to operate all facets of the military aviation training partnership program under the oversight of the department of emergency and military affairs and the ability to do all of the following:

1. Deliver services without using any state monies.

2. Procure required or desired personnel, goods, services and construction at the entity's own expense using the entity's corporate systems, procedures and methods.

3. Administer all assigned aspects of the flight and maintenance training program under the oversight of the department of emergency and military affairs.

C. The department of emergency and military affairs may not use any state monies to pay for services rendered by the private sector entity to the United States or any foreign military personnel unless it has established written agreements regarding reimbursement for the expenditures. The department of emergency and military affairs shall ensure it has written agreements with the private sector entity regarding reimbursement or cost recovery and may include, at the department of emergency and military affair's discretion, accepting desired in-kind services for any allocated space or resources used by the private sector entity.

D. The department of administration and the department of emergency and military affairs shall comply with the requirements of section 41-2559, subsection E, Arizona Revised Statutes, before any public-private partnership contract is awarded pursuant to this section. The department of administration and the department of emergency and military affairs shall cooperate with and be responsive to the joint legislative budget committee staff on information requests made by the staff regarding the operation of the public-private partnership after a contract has been awarded.

E. The establishment of a military aviation training program public-private partnership by the department of emergency and military affairs is exempt from section 41-2752, Arizona Revised Statutes, if there is training only of military personnel and if there is use only of aircraft in the United States department of defense's inventory or procured by a foreign partner for military purposes through the United States foreign military sales program.

F. A public-private partnership contract executed pursuant to this section may not:

1. Cause this state to share in the liabilities of the private sector partner.

2. Exempt the private sector partner from state law and regulations unless such an exemption is specified under the laws of this state.

G. Notwithstanding any other law, the existing rules adopted pursuant to section 41-2514, Arizona Revised Statutes, including those that apply to section 41-2559, Arizona Revised Statutes, also apply to this section.

H. This section is repealed from and after September 30, 2026.

Sec. 3. Saving clause

The repeal of section 2 of this act does not affect any contractual rights, contractual obligations or contractual duties entered into pursuant to this act or any rules that apply to those contracts.

Sec. 4. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.