House of Representatives

SB 1039

school district insurance; procedures

Sponsors: Senators Gerard, Bennett

DPA	Committee on Education
X	Committee on Financial Institutions & Insurance
	Caucus and COW
	Third Read
	As Passed the House

SB 1039 expands the ability of school district governing boards to enter into contracts or agreements with public agencies for the purchase of insurance or pooling of the retention of risks, and exempts the procurement of reinsurance from the Arizona Procurement Code.

Current Status

SB 1039 was amended in the Education Committee to clarify that a worker’s compensation pool need not be operated separately from other risk retention pools. It also allows contractors with the state and its political subdivisions to create risk retention pools that offer life insurance, disability insurance, accident insurance and health benefits plan. It makes technical and conforming changes.

History

Currently, school district governing boards are authorized to enter into intergovernmental agreements or contracts for participation in programs offered by public agencies for the joint purchase of health benefit plans, insurance or the joint providing of health and medical services as provided by statute. SB 1039 expands the ability of school district governing boards to enter into joint purchases with other public agencies for the purchase of certain insurance plans and pooling of the retention of losses.

Provisions

· Allows two or more public agencies to enter into contracts or agreements for the joint purchase of disability insurance or accident insurance, and allows for the pooling of retention of risks for disability or accident claims.

· Allows two or more public agencies to enter into contracts or agreements for the joint purchase of insurance for property, liability or worker’s compensation losses, and allows for the pooling of retention of risks for property and liability loss.

· Allows school district governing boards to enter into intergovernmental agreements or contracts for participation in programs offered by public agency pools, including the joint purchasing of life or disability insurance or the pooling of the retention of losses for health, accident, life or disability claims.

· Exempts the procurement of reinsurance from the Arizona Procurement Code.

· Exempts school districts from the requirement of competitive bidding for the procurement of services and insurance in a similar manner as public agencies.

· Makes technical and conforming changes.

Amendments

· Clarifies that a worker’s compensation pool need not be operated separately from other risk retention pools.

· Allows contractors with the state and its political subdivisions to create risk retention pools that offer life insurance, disability insurance, accident insurance and health benefits plan.

· Makes technical and conforming changes.

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· 45th Legislature

· Second Regular Session 2 April 2, 2002

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