Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 11-1135, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1135. Transmitting affidavit or data to county assessor, Arizona state library, archives and public records and department of revenue

A. The county recorder shall:

1. Place the fee or recording number of the deed and the date of recording on the original affidavit.

2. Scan the affidavit and transmit an electronic copy to the department and the Arizona state library, archives and public records, and transmit either the original or an electronic copy of the original to the county assessor.

B. The county assessor shall transmit the data contained within the affidavit to the department.

C. The county shall transmit the original affidavit, when no longer in active use, to the Arizona state library, archives and public records. END_STATUTE

Sec. 2. Section 41-151.09, Arizona Revised Statutes, is amended to read:

START_STATUTE41-151.09. Depository of official archives

A. The state library is the central depository of all official books, records and documents, including electronic records, not in current use of the various state officers and departments of this state, the counties and incorporated cities and towns. These materials constitute the state archives. The state archives shall be carefully kept and preserved, classified, catalogued and made available for inspection under rules the director adopts.

B. State officers in possession of official state or territorial archives shall deposit those archives with the state library.

C. Any county, municipal or other public official shall either retain or deposit with the state library for permanent preservation pursuant to section 39-101 official books, records, documents and original papers not in current use.� The clerk of the superior court shall deposit and the state library shall preserve all permanent superior court case files pursuant to court rules.

D. The state library shall make birth and death records held in the state library archives available for inspection as follows:

1. Birth records if seventy‑five years have passed after the date of birth as recorded on the birth certificate.

2. Death records if fifty years have passed after the date of death.END_STATUTE

Sec. 3. Section 41-151.12, Arizona Revised Statutes, is amended to read:

START_STATUTE41-151.12. Records; records management; powers and duties of director; fees; records services fund

A. The director is responsible for the preservation and management of records. In addition to other powers and duties, the director shall:

1. Establish standards, procedures and techniques for effective management of records.

2. Make continuing surveys of record keeping operations and recommend improvements in current record management practices, including the use of space, equipment and supplies employed in creating, maintaining, storing and servicing records.

3. Establish standards and procedures for the preparation of schedules providing for the retention of records of continuing value and for the prompt and orderly disposal of records no longer possessing sufficient administrative, legal or fiscal value to warrant their further keeping.

4. Establish criteria for designation of essential records within the following general categories:

(a) Records containing information necessary to the operations of government in the emergency created by a disaster.

(b) Records containing information necessary to protect the rights and interests of persons or to establish and affirm the powers and duties of governments in the resumption of operations after a disaster.

5. Reproduce or cause to be reproduced essential records and prescribe the place and manner of their safekeeping.

6. Obtain such reports and documentation from agencies as are required for the administration of this program.

7. Request transmittal of the originals of records produced or reproduced by agencies of the state or its political subdivisions pursuant to section 41‑151.16 or certified negatives, films or electronic media of such the originals, or both, if in the director's judgment such records may be of historical or other value.

8. On request, assist and advise in the establishment of records management programs in the legislative and judicial branches of this state and provide program services similar to those available to the executive branch of state government pursuant to this article.

9. Establish a fee schedule to systematically charge state agencies, political subdivisions of this state, and other governmental units of this state and museums, historical societies, cultural institutions and other entities designated by the state librarian or state archivist or the state librarian's or state archivist's designee for services described in this section and section 41‑151.13 and deposit monies received from fees in the records services fund established by subsection B of this section.

10. Subject to approval of the secretary of state, establish a fee schedule to charge state agencies, political subdivisions of this state and other governmental units of this state for services and expenses incurred by the state library in obtaining copies of those reports, documents and publications that are required to be delivered, supplied or provided pursuant to sections 35‑103, 41‑151.05 and 41‑151.08 and deposit these monies in the records services fund established by subsection B of this section.

B. A records services fund is established consisting of monies deposited pursuant to subsection A, paragraphs 9 and 10 of this section.� The director shall administer the fund for the purposes provided in subsection A of this section.� Monies in the fund are subject to legislative appropriation and are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. END_STATUTE

Sec. 4. Section 41-151.15, Arizona Revised Statutes, is amended to read:

START_STATUTE41-151.15. Preservation of public records; repository

A. All records made or received by public officials or employees of this state or the counties and incorporated cities and towns of this state in the course of their public duties are the property of this state. Except as provided in this article, the director and every other custodian of public records shall carefully protect and preserve the records from deterioration, mutilation, loss or destruction and, when advisable, shall cause them to be properly repaired and renovated. All paper, ink and other materials used in public offices for the purpose of permanent records, including electronic records, shall be of durable quality and shall comply with the standards established pursuant to section 39‑101.� Additionally, the custodian of records that keeps photography, film, microfiche, digital imaging or other types of reproduction or electronic media pursuant to section 41‑151.16, subsection A shall protect records from loss or destruction pursuant to standards that are established by the director.

B. The state library shall establish, operate and maintain a trusted electronic records repository to keep, preserve, secure and make available the electronic and digitized records of the state archives and the state documents program and of any documents and public records received pursuant to section 41-2956, subject to legislative appropriation.

B. C. Records shall not be destroyed or otherwise disposed of by any agency of this state unless it is determined by the state library that the record has no further administrative, legal, fiscal, research or historical value. The original of any record produced or reproduced pursuant to section 41‑151.16 may be determined by the state library to have no further administrative, legal, fiscal, research or historical value.� A person who destroys or otherwise disposes of records without the specific authority of the state library is in violation of section 38‑421.END_STATUTE

Sec. 5. Section 41-151.16, Arizona Revised Statutes, is amended to read:

START_STATUTE41-151.16. Production and reproduction of records by agencies of the state and political subdivisions; admissibility; violation; classification

A. Each agency of this state or any of its political subdivisions may implement a program for the production or reproduction by photography or other method of reproduction on film, microfiche, digital imaging or other electronic media of records in its custody, whether obsolete or current, and classify, catalogue and index such records for convenient reference.� The agency, before the institution of any such program of production or reproduction, shall obtain approval from the director of the types of records to be produced or reproduced and of the methods of production, reproduction and storage and the equipment which the agency proposes to use in connection with the production, reproduction and storage. Approval pursuant to this subsection is necessary for digitizing programs but not for individual instances of digitization. On approval from the director, the source documents, except for permanent records, may be destroyed, but only after an administrative audit and after safeguards are in place to protect the public records pursuant to section� 41‑151.15, subsection A.

B. Except as otherwise provided by law, records that are produced or reproduced as provided in subsection A of this section are admissible in evidence.

C. A head of an agency of this state or a political subdivision of this state who violates this section is guilty of a class 2 misdemeanor. END_STATUTE

Sec. 6. Title 41, chapter 1, article 2.1, Arizona Revised Statutes, is amended by adding section 41-151.25, to read:

START_STATUTE41-151.25. Electronic records repository fund; exemption

A. The electronic records repository fund is established consisting of legislative appropriations, gifts, nonfederal grants, fees and donations.� The director shall administer the fund.� Monies in the fund are subject to legislative appropriation.� The director shall use the monies in the fund for operating expenses for the trusted electronic records repository established pursuant to section 41-151.15.�

B. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. END_STATUTE

Sec. 7. Section 41-2752, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2752. State competition with private enterprise prohibited; exceptions

A. A state agency shall not engage in the manufacturing, processing, sale, offering for sale, rental, leasing, delivery, dispensing, distributing or advertising of goods or services to the public that are also offered by private enterprise unless specifically authorized by law other than administrative law and executive orders.

B. A state agency shall not offer or provide goods or services to the public for or through another state agency or a local agency, including by intergovernmental or interagency agreement, in violation of this section or section 41‑2753.

C. The restrictions on activities that compete with private enterprise contained in this section do not apply to:

1. The development, operation and management of state parks, historical monuments and hiking or equestrian trails.

2. Correctional industries established and operated by the state department of corrections if the prices charged for products sold by the correctional industries are not less than the actual cost of producing and marketing the product plus a reasonable allowance for overhead and administrative costs.

3. The Arizona office of tourism.

4. The Arizona highways magazine, operated by the department of transportation.

5. Printing and distributing information to the public if the agency is otherwise authorized to do so, and printing or copying public records or other material relating to the public agency's public business and recovering through fees and charges the costs of such printing, copying and distributing.

6. The department of public safety.

7. The construction, maintenance and operation of state transportation facilities.

8. The development, distribution, maintenance, support, licensing, leasing or sale of computer software by the department of transportation.

9. Agreements executed by the Arizona health care cost containment system administration with other states to design, develop, install and operate information technology systems and related services or other administrative services pursuant to section 36‑2925.

10. Agreements executed by the department of economic security with other states to design, develop, install and operate support collection technology systems and related services.� The department shall deposit, pursuant to sections 35‑146 and 35‑147, monies received pursuant to this paragraph in the public assistance collections fund established by section 46‑295.

11. Educational, vocational, treatment, training or work programs of the department of juvenile corrections and contracts between the department of juvenile corrections and this state, a political subdivision of this state or a private entity in order to provide employment or vocational educational experience.

12. The aflatoxin control technologies of the cotton research and protection council.

13. The lease or sublease of lands or buildings by the department of economic security pursuant to section 41‑1958.

14. The Arizona commerce authority.

15. The Arizona game and fish commission, but only for the sale of goods or services and not firearms.

16. Records preservation services offered by the state library, archives and public records to museums, historical societies and cultural institutions and to any other entities designated by the state librarian or state archivist or the state librarian's or state archivist's designee.

D. The restrictions on activities that compete with private enterprise contained in subsection A of this section do not apply to community colleges and universities under the jurisdiction of a governing board. END_STATUTE

Sec. 8. Appropriations; electronic records repository; FTE positions

A. The sum of $931,938 is appropriated from the state general fund in fiscal year 2014-2015 to the electronic records repository fund for trusted electronic records repository and archives management software.

B. The sum of $472,000 and 5 FTE positions are appropriated from the state general fund in fiscal year 2014-2015 to the secretary of state for the purposes of this act.