The proposed bill, if enacted, would amend existing statutes by incorporating a new definition for "political subdivision entity" and expanding the scope of entities eligible to procure insurance or establish self-insurance programs. Specifically, it would add political subdivision entities to the definition of "public agency" for intergovernmental operations, allowing these entities to procure insurance from any insurer authorized by the Director of the Department of Insurance and Financial Institutions (DIFI). This change aims to enhance the ability of local governments and related entities to manage their insurance needs effectively.

Additionally, the bill would make several technical adjustments, including the removal of outdated references to "special health care districts" and the insertion of new language that clarifies the responsibilities and requirements for entities establishing self-insurance programs. It would require these entities to place all funds into a trust fund for direct payments of benefits, losses, or claims, and ensure that the trust is administered by a designated risk management consultant and a board of trustees. Overall, the bill seeks to modernize the legal framework governing insurance procurement for political subdivisions in Arizona.

Statutes affected:
Introduced Version: 32-573
Senate Engrossed Version: 32-573
House Engrossed Version: 11-951, 11-981, 38-711
Chaptered Version: 11-951, 11-981, 38-711