The bill HB2275 amends Arizona Revised Statutes by adding new requirements for cities, towns, and counties before they can enter into settlement agreements of certain monetary thresholds. Specifically, it mandates that a local government must submit a settlement agreement report to the Governor, the President of the Senate, the Speaker of the House of Representatives, and the Attorney General at least 90 days before entering into a settlement agreement that is $500,000 or more. For agreements that are $1,000,000 or more, the proposed settlement must also be submitted to the Joint Legislative Budget Committee (JLBC) for review, and the JLBC may recommend amendments to the settlement. If the local government does not submit the proposed settlement for review as required, the settlement agreement will not be legally binding.

The bill also defines "settlement agreement" and "settlement agreement report," and excludes certain types of agreements from the definition of a settlement agreement, such as those involving personal injury claims or certain disputes handled by the Arizona State Land Department. Additionally, the bill makes technical changes to gender-neutral language and clarifies the role of the Attorney General in compromising or settling actions or claims involving the state. The bill was vetoed by the Governor, who cited concerns about its necessity and potential infringement on the separation of powers.

Statutes affected:
Introduced Version: 9-500.50, 11-269.29, 41-192
House Engrossed Version: 9-500.50, 11-269.29, 41-192
Senate Engrossed Version: 9-500.50, 11-269.29, 41-192