Ariz. Rev. Stat. § 31-474
The director of corrections may enter into such contracts on behalf of this state as may be appropriate to implement the participation of this state in the western interstate corrections compact pursuant to article III thereof. No such contract shall be of any force or effect until approved by the director of the department of administration. Such contracts may authorize confinement of inmates in, or transfer of inmates from, only such institutions in this state as are under the jurisdiction of the department of corrections. No such contract may authorize the confinement of an inmate, who is in the custody of the director of corrections, in an institution of a state other than a state specifically named in article VII of the western interstate corrections compact. The director of corrections shall determine, on the basis of an inspection made by his direction or otherwise, that an institution of another state is a suitable place for confinement of prisoners committed to his custody before entering into a contract permitting such confinement, and shall, at least annually, redetermine the suitability of such confinement. In determining the suitability of such institution of another state, the director shall assure himself that such institution maintains standards of care and discipline not incompatible with those of the state of Arizona and that all inmates therein are treated equitably, regardless of race, religion, color, creed or national origin.
A.R.S. § 31-474