AZ SB1254

Amends Arizona Revised Statutes section 41-1609.01 to prohibit contracts for correctional services that include a requirement or guarantee for a minimum number of inmates.

Requires any request for proposals for adult incarceration contracts to be provided to the joint legislative budget committee for review.

Establishes criteria for contract awards, including demonstrated qualifications, compliance with correctional standards, successful facility operation history, cost savings, and service quality at least equal to state-provided services.

Allows initial contracts for up to 10 years with options to renew for two additional 5-year periods, and permits state cancellation after the first year with 90 days' written notice.

Requires contractors to provide audited financial statements, adequate insurance coverage including civil rights liability, and assume costs for emergency services provided by the state or political subdivisions.