AZ SB1173

Requires all requests for proposals for correctional services contracts to be provided to the joint legislative budget committee for review upon publication.

Establishes that proposals must offer cost savings based on a standard cost comparison model established by the director and must provide services at least functionally equal to those provided by the state.

Adds new requirements for biennial comparison of private contractor performance against state-operated facilities, considering security, inmate management, programs, safety, administration, food service, personnel, health services, discipline, and recidivism rates.

Requires the director to conduct a cost comparison of all privatization contracts once every five years and provide the results to the joint legislative budget committee for review.

Maintains existing contract requirements including initial terms of up to ten years with two optional five-year renewals, cancellation rights after the first year with ninety days' notice, and limitations on cost adjustments to the consumer price index.