PLEASE NOTE: In most BUT NOT ALL instances, the page and line numbering of bills on this web site correspond to the page and line numbering of the official printed version of the bills.
------------------------------------------------- ¦ REFERENCE TITLE: counties; technical correction ¦ ------------------------------------------------- ¦ ¦ ¦ ¦ ¦ ¦ ¦ State of Arizona ¦ ¦ Senate ¦ ¦ Forty-fifth Legislature ¦ ¦ Second Regular Session ¦ ¦ 2002 ¦ ¦ ¦ ------------------------------------------------- ¦ SB 1103 ¦ ------------------------------------------------- ¦ Introduced by ¦ ¦ Senator Mitchell ¦ -------------------------------------------------
AN ACT
AMENDING SECTION 11-981, ARIZONA REVISED STATUTES; RELATING TO COUNTIES.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 11-981, Arizona Revised Statutes, is amended to read:
11-981. Payment of benefits, losses and claims; establishment of trust funds
A. In addition to authority granted pursuant to other provisions of law or city
charter, any city, town or county may procure insurance from any insurer authorized by
the director of the department of insurance or may establish a self-insurance program for
the management and administration of a system for direct payment of benefits, losses or
claims or any combination of insurance and direct payments, and including risk
management consultation, to provide:
1. Health, accident, life or disability benefits for employees and officers of the city, town or county and their dependents.
2. Payment of any property loss sustained or lawful claim of liability or fortuitous loss made against the city, town or county or its employees or officers if such employees or officers are acting within the scope of employment or authority.
B. If any city, town or county establishes a self-insurance program for the management and administration of a system for direct payment of benefits, losses or claims pursuant to subsection A, the governing body of such city, town or county shall place all funds into a trust fund for the purposes of this section in amounts as determined appropriate by the governing body of the city, town or county, except that any city, town or county establishing such a trust fund shall:
1. Designate a risk management consultant or insurance administrator licensed
pursuant to title 20, chapter 2, articles ARTICLE 3 or 9, and such license
shall be verified by the governing body of the city, town or county.
2. The trust shall be administered by at least five joint trustees, of whom no more than one may be a member of the governing body of the city, town or county and no more than one may be an employee of the city, town or county.
3. The trustees of the trust must be bonded, a stop-loss provision must be incorporated in the trust agreement, and an annual audit must be performed by an external auditor and a copy of the report kept on file in the offices of the governing body of the city, town or county for a period of not less than five years.
4. Not make any expenditure from the trust fund for any purpose not specified in this article.
C. Expenditures during the fiscal year from the trust fund and monies in the trust fund at the close of the fiscal year shall not be subject to the provisions of title 42, chapter 17, article 3.
D. In the event that such a trust fund is no longer used by the city, town or county for the purposes herein set forth, it shall revert during that fiscal year to the general fund of such city, town or county.
E. The authority granted to a city, town or county by this section is not subject to the provisions of title 20, except that any health, life, accident or disability benefit plan shall conform to the benefits required by the provisions of title 20.
F. This section shall not be construed to authorize any city, town or county to procure insurance from any insurer not authorized by the director of the department of insurance.