HB2205 proposes an amendment to section 20-466 of the Arizona Revised Statutes concerning the Insurance Fraud Unit (Fraud Unit) within the Department of Insurance and Financial Institutions (DIFI). The bill aims to make monies appropriated to the Fraud Unit exempt from lapsing, which means that any unspent funds would not revert back to the state General Fund at the end of the fiscal year as currently required by law.

Currently, the director of DIFI assesses each insurer authorized to do business in Arizona up to $1,050 for the operation of the Fraud Unit and the prosecution of fraud. These funds are deposited into the state general fund and are appropriated to the Fraud Unit as a separate line item in the general appropriations act. The proposed change would allow the Fraud Unit to retain any unspent appropriated funds beyond the fiscal year, potentially impacting the state General Fund if funds that would have otherwise lapsed are retained by the Fraud Unit.

Statutes affected:
Introduced Version: 20-466
House Engrossed Version: 20-466