Bill Text: AZ SB1101 | 2013 | Fifty-first Legislature 1st Regular | Engrossed
Bill Title: Procurement code; fraud; attorney general
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2013-03-11 - Referred to House JUD Committee [SB1101 Detail]
Download: Arizona-2013-SB1101-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fifty-first Legislature First Regular Session 2013
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SENATE BILL 1101 |
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AN ACT
amending section 41‑2616, Arizona Revised Statutes; amending title 41, chapter 23, article 9, Arizona Revised Statutes, by adding section 41‑2616.01; relating to the arizona procurement code.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 41-2616, Arizona Revised Statutes, is amended to read:
41-2616. Violation; classification; liability; civil penalty; enforcement authority
A. A person who contracts for or purchases any material, services, construction or construction services in a manner contrary to the requirements of this chapter, the rules adopted pursuant to this chapter, the rules adopted by the state board of education pursuant to section 15‑213 or rules adopted by the Arizona board of regents, the Arizona lottery commission or the judicial branch pursuant to section 41‑2501 is personally liable for the recovery of all public monies paid plus twenty per cent of such amount and legal interest from the date of payment, reasonable attorney fees and all costs and damages arising out of the violation.
B. A person who intentionally or knowingly contracts for or purchases any material, services, construction or construction services pursuant to a scheme or artifice to avoid the requirements of this chapter, rules adopted pursuant to this chapter, rules adopted by the state board of education pursuant to section 15‑213 or rules adopted by the state board of regents, the state lottery commission or the judicial branch pursuant to section 41‑2501 is guilty of a class 4 felony.
C. A person who serves on an evaluation committee for a procurement shall sign a statement before reviewing bids or proposals that the person has no interest in the procurement other than that disclosed and will have no contact with any representative of a competing vendor related to the particular procurement during the course of evaluation of bids or proposals, except those contacts specifically authorized by section 41‑2534, 41‑2537, 41‑2538, 41‑2578, 41‑2579 or 41‑2581. The person shall disclose on the statement any contact unrelated to the pending procurement that the person may need to have with a representative of a competing vendor and any contact with a representative of a competing vendor during evaluation of bids or proposals except those contacts specifically authorized by section 41‑2534, 41‑2537, 41‑2538, 41‑2578, 41‑2579 or 41‑2581. A person who serves on an evaluation committee and who fails to disclose contact with a representative of a competing vendor or who fails to provide accurate information on the statement is subject to a civil penalty of at least one thousand dollars but not more than ten thousand dollars.
D. The attorney general on behalf of this state shall enforce the provisions of this chapter.
Sec. 2. Title 41, chapter 23, article 9, Arizona Revised Statutes, is amended by adding section 41-2616.01, to read:
41-2616.01. Investigation; service of demand sanctions; confidentiality
A. If the attorney general has reasonable cause to believe that a person has information or is in possession, custody or control of any document or other tangible object relevant to an investigation for a violation of this chapter, the attorney general may serve on the person, before bringing any action in the superior court, a written demand to appear and be examined under oath, to answer written interrogatories under oath and to produce the document or object for inspection and copying. The demand shall:
1. Be served on the person in the manner required for service of process in this state or by certified mail with return receipt requested.
2. Describe the nature of the conduct constituting the violation under investigation.
3. Describe the class or classes of documents or objects with sufficient definiteness to permit them to be fairly identified.
4. Contain a copy of the written interrogatories.
5. Prescribe a reasonable time at which the person must appear to testify, within which to answer the written interrogatories and within which the document or object must be produced and advise the person that objections to or reasons for not complying with the demand may be filed with the attorney general on or before that time.
6. Specify a place for the taking of testimony or for production and designate a person who shall be custodian of the document or object.
7. Contain a copy of subsections B and C of this section.
B. If a person objects to or otherwise fails to comply with the written demand served on the person under subsection A of this section, the attorney general may file an action in the superior court for an order to enforce the demand. Venue for the action to enforce the demand shall be in the county in which the person resides or in which the person maintains a place of business or in which the event giving rise to jurisdiction occurred or in which the event had an effect. Notice of hearing the action to enforce the demand and a copy of the action shall be served on the person in the same manner as that prescribed in the Arizona rules of civil procedure. If the court finds that the demand is proper, that there is reasonable cause to believe there may have been a violation of this chapter and that the information sought or document or object demanded is relevant to the violation, the court shall order the person to comply with the demand, subject to modifications the court may prescribe. If the person fails to comply with the demand order, the court may issue any of the following orders until the person complies with the demand order:
1. Adjudging the person in contempt of court.
2. Granting injunctive relief against the person to whom the demand is issued to restrain the conduct that is the subject of the investigation.
3. Granting such other relief as the court may deem proper.
C. The court may award to the attorney general taxable costs and reasonable attorney fees as determined by the court against the person failing to obey the demand order. On motion by the person and for good cause shown, the court may make any further order in the proceedings that justice requires to protect the person from unreasonable annoyance, embarrassment, oppression, burden or expense.
D. If the attorney general determines that disclosure to the respondent of the evidence relied on to establish reasonable cause is not in the best interests of the investigation, the attorney general may request that the court examine the evidence in camera. If the attorney general makes this request, the court may examine the evidence in camera and then make its determination.
E. Any procedure, testimony taken or material produced under this section shall be kept confidential by the attorney general before bringing an action against a person under this chapter for the violation under investigation unless any of the following applies:
1. Confidentiality is waived by the person whose testimony is disclosed.
2. Confidentiality is waived by the person who produced to the attorney general the material being disclosed.
3. The testimony or material is disclosed solely to the person, or the person's attorney, who testified or provided the material to the attorney general.
4. Disclosure is authorized by court order.
F. The attorney general may disclose the testimony or material to a person employed by this state, the United States or any other state, if before disclosure to another state or the United States the receiving official agrees in writing to comply with the confidentiality restrictions of this section.
G. An individual conducting an examination pursuant to this section may exclude from the place of examination any person, except the person being examined and the person's counsel.
