ARIZONA STATE SENATE
Phoenix, Arizona
consent decrees; JLBC
approval
Requires approval by the
Attorney General and the Joint Legislative Budget Committee for any settlements
of consent decree, settlements that involve the State accepting liability for a
claim or the State accepting a change in any legislative funding formula.
State statute stipulates
that any claim against the State over $50,000 requires approval by the Director
of the Department of Administration, the Attorney General and the Joint
Legislative Budget Committee (JLBC) prior to settlement and payment. However, JLBC has the authority to establish
a higher settlement limit and has increased the limit to $250,000. In calendar
year 2000, 21 claims against the State came before JLBC for approval and ten
claims in the following year.
Currently, directors of
executive agencies and the Attorney General may enter into a consent decree to
end a lawsuit against the State by both parties agreeing with the plaintiff to
procedural changes without legislative approval. While most consent decrees do not include specific fiscal relief,
the consent order may contain provisions that have a fiscal impact to the state
general fund. The Attorney General, as legal advisor of the agencies of this
State, has entered into multiple consent decrees, including those in Flores vs. Arizona and Arnold vs. Sarn. This legislation requires JLBC approval for
any settlement by way of consent decree.
There is no known fiscal
impact to the state general fund associated with this legislation.
1. Requires the Attorney General and JLBC to approve any settlements that involve the state accepting liability for a claim or the state accepting a change in any statutory legislative funding formula. This includes any settlement by way of a consent decree.
2. Extends Attorney General and JLBC approval to any claim over $50,000, including those currently not covered by risk management, prior to settlement and payment. Authorizes JLBC to establish a higher settlement limit.
3. Stipulates that the settlement of these claims is the sole authority of the Attorney General and JLBC.
4. Makes technical and conforming changes.
5. Provides for a general effective date.
Prepared by Senate Staff
January 10, 2002