Assigned to BI                                                                                                               FOR COMMITTEE

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2430

 

fraud unit; peace officers status

 

Purpose

 

Grants peace officer status to the Department of Insurance (DOI) fraud unit investigators.

 

Background

 

            The fraud unit was established in the DOI in 1994. The fraud unit is charged with investigating insurance fraud and other related crimes. Currently, fraud unit investigators have the same administrative powers as the Department’s personnel who investigate licensing offenses. State law requires insurers to refer suspected cases of insurance fraud to the DOI Fraud Unit for investigation. When the fraud unit engages in an investigation that requires police authority, fraud unit investigators must work in conjunction with the Department of Public Safety to carry out those tasks. Tasks that must be performed by the Department of Public Safety include making arrests, serving search warrants and seizing evidence. Insurers are assessed for the administration and operation of the Unit, and for prosecution of fraud cases. The annual assessment must recoup between 95 percent to 110 percent of the Fraud Unit’s appropriated budget for the prior fiscal year.

 

            H.B. 2430 grants peace officer status to investigators, which will allow expedited and streamline investigations by DOI’s fraud unit, but shall not preempt other law enforcement agencies.

 

There is no fiscal impact associated with H.B. 2430 according to the Joint Legislative Budget Committee staff.

 

Provisions

 

1.      Authorizes the Director to employ investigators for the fraud unit who serve as peace officers while acting in the course of employment for the Department.

 

2.      Requires the Director to adopt DPS procedures regarding the conduct of its investigators who obtain peace officer status.

 

3.      Requires fraud unit investigators to meet qualifications by the Arizona Peace Officer Standards and Training Board.

 

4.      Prohibits fraud unit investigators from being eligible to participate in the public safety retirement system on the basis of being a part of the fraud unit alone.

 

 

 

House Action

 

RGO                3/9/01              DP       7-1-0-2

3rd Read           3/20/01            DP       44-11-5-0       

 

 

Prepared by Senate Staff

March 27, 2001