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ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1246

 

intergovernmental agreements; procedure

 

Purpose

 

Requires intergovernmental agreements (IGAs) to specify organizations that provide or may provide services to, administer, execute or be funded by the agreement for the parties to the agreement.

 

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.      Requires intergovernmental agreements and contracts to specify the precise organization, composition, title and nature of any separate legal entity, including a nonprofit corporation, that is or may be designated to:

 

a)      provide services to,

b)      administer,

c)      execute, or

d)      be funded by, the agreement for the parties to the agreement.

 

2.      Provides for a general effective date.

 

 

Prepared by Senate Staff

January 31, 2001