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 the Governor, the President of the Senate, the Speaker of the House of Representatives, and the Attorney General 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 defines "settlement agreement" and "settlement agreement report," outlining the necessary contents of the report, such as the total amount of the settlement and the source of funds. It also clarifies that certain types of agreements, such as those related to construction disputes or workers' compensation claims, are excluded from these requirements. The Attorney General is similarly required to submit a report before entering into any settlement agreement, ensuring legislative oversight on significant financial commitments made by local governments and the state.

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