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 before 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 a proposed settlement agreement to the JLBC for review and finalizes the agreement, it will not be legally binding.

Additionally, the bill stipulates that legally binding contracts entered into by local governments are a matter of statewide concern due to their impact on public finances. The Attorney General is also required to submit a settlement agreement report to legislative leaders at least 30 days before entering into a settlement agreement. The definitions of "settlement agreement" and "settlement agreement report" are clarified, detailing what constitutes a settlement agreement and what information must be included in the report. Certain types of agreements, such as those related to construction disputes or workers' compensation claims, are excluded from these requirements.

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