ARIZONA STATE SENATE
Phoenix, Arizona
intergovernmental
agreements; procedure
Purpose
Allows parties to an
intergovernmental agreement (IGA) to create a separate legal entity to perform
services specified in the IGA or to exercise the joint powers of the IGA parties.
Background
Presently, authorized public
agencies are allowed to enter IGAs to contract for services or to jointly
exercise common powers. Statute
requires any such contract or agreement to specify the duration of the contract
or agreement, the purpose, the manner of financing the joint or cooperative
undertaking and the permissible method to be used in ending the contract or
agreement. This legislation requires an
additional contractual element, when applicable, that involves designating a
separate entity that is not a party to the IGA yet which may participate in the
IGA contract.
Due to the variety of
potential IGAs, the fiscal impact of this legislation is unknown.
Provisions
1. Specifically allows parties to an IGA to form a separate legal entity, including a nonprofit corporation to: a) contract for, or perform, some or all of the services specified in an IGA, or
b) exercise the powers jointly held by the IGA parties.
2. Requires intergovernmental agreements and contracts that create separate entities to specify the precise organization, composition, title and nature of the entity.
.
3. Provides for a general effective date.
Amendments
Adopted by Committee
1. Specifically allows parties to an IGA to form a separate legal entity, including a nonprofit corporation to: a)contract for, or perform, some or all of the services specified in an IGA, or b) exercise the powers jointly held by the IGA parties
2. Removes specification of the additional IGA contract element.
Senate Action
GOV 2/05/01 DPA 6-0-0-0
Prepared by Senate Staff
February 7, 2001