Arizona SB 1450: adult incarceration contracts; cost comparison

Bill Text

SB1450 - 542R - I Ver 

 REFERENCE TITLE: adult incarceration 
 contracts; cost comparison

 State of 
 Arizona

 Senate

 Fifty-fourth 
 Legislature

 Second Regular 
 Session

 2020

 SB 1450

 Introduced by 

 Senators Navarrete: Alston, Bowie, Bradley, Contreras, 
 Dalessandro, Gonzales, Mendez, Otondo, Peshlakai, Quezada, Rios, Steele; 
 Representatives Andrade, Jermaine, Teller, Ter�n

AN ACT

amending section 41‑1609.01, 
Arizona Revised Statutes; relating to private prisons.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 41-1609.01, Arizona Revised 
Statutes, is amended to read:

START_STATUTE41-1609.01. Adult incarceration contracts; criteria; cost comparison review

A. On publication, any request for proposals shall 
be provided to the joint legislative budget committee for its review.

B. To be considered for an award of a contract, the 
proposer must demonstrate that it has:

1. The qualifications, operations and management 
experience and experienced personnel necessary to carry out the terms of the 
contract.

2. The ability to comply with applicable 
correctional standards and any specific court order, if required.

3. A demonstrated history of successful operation 
and management of other secure facilities.

C. The proposer of a contract for correctional 
services must agree that this state may cancel the contract at any time after 
the first year of operation, without penalty to this state, on giving ninety 
days' written notice.

D. A 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 effective date of the 
contract. If any adjustment is made pursuant to the terms of the 
contract, it shall be applied to the total payments made to the contractor for 
the previous contract year and shall not exceed the per cent 
percent 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.

E. Any price or cost adjustments to a contract 
different than those authorized in subsection D of this section may be made 
only if the legislature specifically authorizes the adjustments and 
appropriates monies for that purpose, if required.

F. An award of a contract shall not be made unless 
an acceptable proposal is received pursuant to any request for 
proposals. For the purposes of this subsection, "acceptable 
proposal" means a proposal that substantially meets all of the 
requirements or conditions set forth in this section and that meets all of the 
requirements in the request for proposals.

G. A proposal shall not be accepted unless the 
proposal offers cost savings to this state. Cost 
savings shall be determined based on the standard cost comparison model for 
privatization established by the director.

H. A proposal shall not be accepted unless the 
proposal offers a level and quality of services that are at least functionally 
equal to those that would be provided by this state.

I. Notwithstanding section 41‑2546, a contract 
to provide correctional services as described in this section may be for an 
initial period of not more than ten years.

J. The initial contract may include an option to 
renew for two subsequent renewal periods of not more than five years each.

K. A contract for correctional services described in 
this section shall not be entered into unless the following requirements are 
met:

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

2. The contractor provides an adequate plan of 
insurance, specifically including coverage or insurance for civil rights claims 
and liabilities as approved by the risk management division of the department 
of administration.

3. The contractor agrees to be liable for the costs 
of any emergency, public safety or security services provided to the contractor 
by the state or any political subdivision of the state and to reimburse the 
state or any political subdivision of the state for the cost of any such 
services.

L. The sovereign immunity of this state does not 
apply to the contractor. Neither the contractor nor the insurer of 
the contractor may plead the defense of sovereign immunity in any action 
arising out of the performance of the contract.

M. A contract for correctional services shall not 
authorize, allow or imply a delegation of authority or responsibility to a 
prison contractor for any of the following:

1. Developing and implementing procedures for 
calculating inmate release dates.

2. Developing and implementing procedures for 
calculating and awarding sentence credits.

3. Approving the type of work inmates may pe