AZ HB2135

Amends Section 41-1609.01 of Arizona Revised Statutes to establish criteria for awarding adult incarceration contracts to private entities.

Requires proposing entities to demonstrate qualifications, experience managing secure facilities, compliance with correctional standards, and the ability to achieve cost savings compared to state operation.

Limits initial contracts to 10 years with options for two 5-year renewal periods, and allows annual price adjustments only up to the consumer price index change published by the U.S. Department of Labor.

Prohibits contractors from delegating authority over inmate release date calculations, sentence credit procedures, disciplinary actions, custody determinations, and work assignment approvals.

Removes sovereign immunity protections for private prison contractors and requires them to maintain insurance coverage for civil rights claims and reimburse the state for emergency or security services.