The proposed bill would amend current statutes regarding settlement agreements involving local governments and the state of Arizona. Under the new provisions, local governments must submit a settlement agreement report to key state officials at least 90 days prior to entering into any settlement agreement valued at $500,000 or more. For agreements of $1,000,000 or more, the proposed settlement must also be submitted to the Joint Legislative Budget Committee (JLBC) for review, which can recommend amendments. If a local government fails to submit the required agreement to the JLBC, the finalized settlement will not be legally binding. Additionally, the bill emphasizes that legally binding contracts entered into by local governments are a matter of statewide concern due to their impact on public finances.

The bill also introduces definitions for "settlement agreement" and "settlement agreement report," detailing what constitutes a settlement agreement and what information must be included in the report. It specifies exclusions from the definition of settlement agreements, such as those related to construction contract disputes and personal injury claims. Furthermore, the Attorney General is required to submit a settlement agreement report to legislative leaders at least 30 days before entering into any settlement agreement, ensuring greater oversight and transparency in the settlement process.

Statutes affected:
Introduced Version: 9-500.52, 11-269.30, 41-192
House Engrossed Version: 9-500.52, 11-269.30, 41-192