ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

Senate: GOV DP 6-1-1-0 | 3rd Read 25-5-0-0
House: GOV DP 9-0-0-0  


SB 1670: public-private partnership contracts

Sponsor: Senator Gowan, LD 19

House Engrossed

Overview

An emergency measure that outlines requirements relating to public-private partnership contracts.

History

The Director (Director) of the Arizona Department of Administration (ADOA) is authorized to enter into public-private partnership contracts to finance the technology needs of a purchasing agency.  The Director may issue requests for information and requests for proposals to solicit private partners who are interested in providing programs under a contract.  A contract between the Director and an automated systems vendor must provide for payment of fees on a contractually specific amount based on the achievement of mutually agreed upon performance improvements.  Before a public-private partnership contract is awarded, the Joint Legislative Budget Committee (JLBC) staff must be consulted with regard to the potential fiscal impact of the contract to the state (A.R.S. § 41-2559).

Provisions

1.   Adds that a contract entered into between the Director and an information technology vendor must also provide for payment of fees on a contractually specific amount. (Sec. 1)

2.   Authorizes, on legislative authorization, the Director of ADOA and the Director of the Arizona Department of Emergency and Military Affairs (AZDEMA) to issue a request for proposals (RFP) and enter into a public-private partnership contract for military rotary wing aviation flight and maintenance training and services. (Sec. 1)

3.   Allows AZDEMA and ADOA to jointly establish public-private partnerships for military rotary wing aviation flight and maintenance training and services at locations on property owned, administered or controlled by AZDEMA. (Sec. 2)

4.   Requires AZDEMA and ADOA to work together to develop an RFP if AZDEMA determines to proceed with a public-private partnership. (Sec. 2)

5.   Specifies that the procurement of a private sector entity may only be done through an RFP. (Sec. 2)

6.   Directs AZDEMA and ADOA to jointly establish eligibility requirements for private sector entities to be considered and the services and duties to be performed by the selected entity. (Sec. 2)

7.   Mandates evidence of executed contracts or agreements with other companies when private sector companies work with other companies to meet the eligibility requirements. (Sec. 2)

8.   Requires private sector entities to demonstrate actual experience and ability to perform all elements of the scope of the work and other duties in the RFP. (Sec. 2)

9.   Establishes that the selected private sector entity must have provided evidence to the satisfaction of AZDEMA and ADOA that it has the capacity to operate all facets of the military aviation training partnership program under the oversight of AZDEMA and the ability to:

a)   deliver services without using any state monies;

b)   procure required or desired personnel, goods, services and construction at the entity's own expense using their corporate systems, procedures and methods; and

c) administer all assigned aspects of the flight and maintenance training program under the oversight of AZDEMA. (Sec. 2)

10.  Prohibits AZDEMA from using 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. (Sec. 2)

11.  Directs AZDEMA to ensure it has written agreements with the private sector entity regarding reimbursement or cost recovery and may include, at AZDEMA's discretion, accepting desired in-kind services for any allocated space or resources used. (Sec. 2)

12.  Maintains that ADOA and AZDEMA must comply with statute relating to the requirement of consultation with the Joint Legislative Budget Committee (JLBC) before awarding a public-private partnership contract. (Sec. 2)

13.  Requires ADOA and AZDEMA to cooperate with and be responsive to JLBC staff on information requests made by the staff regarding the operation of the public-private partnership after a contract has been awarded. (Sec. 2)

14.  Exempts the establishment of a military aviation training program public-private partnership by AZDEMA from statute relating to the prohibition on state competition with private enterprise if:

a)   there is training only of military personnel; and

b)   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. (Sec. 2)

15.  Prohibits a public-private partnership contract from:

a)   causing Arizona to share in the liabilities of the private sector partner; or

b)   exempting the private sector partner from state law and regulations unless such an exemption is specified under Arizona laws. (Sec. 2)

16.  Maintains that existing rules adopted for state procurement, including those that apply to public-private partnership contracts, also apply to this legislation. (Sec. 2)

17.  Contains a delayed repeal date of October 1, 2026. (Sec. 2)

18.  Clarifies that the repeal of statute relating to public-private partnership contracts does not affect any contractual rights, obligations or duties entered into. (Sec. 2)

19.  Makes a conforming change. (Sec. 1)

20.  ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☒ Emergency (40 votes)	☐ Fiscal NoteContains an emergency clause. (Sec. 4)

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24.                    SB 1670

25.  Initials SJ Page 0 House Engrossed

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