settlement agreements; report; approval

This bill requires Arizona cities, towns, and counties to report large settlement agreements to state officials before they are finalized. Specifically, any settlement of $500,000 or more must be reported to the governor and legislative leaders, while agreements of $1,000,000 or more must also be reviewed by the joint legislative budget committee. If a local government fails to submit a proposed settlement of $1,000,000 or more for this review, the agreement cannot become legally binding. The law defines these settlements as legally binding documents resolving lawsuits but excludes personal injury claims and certain construction disputes. Additionally, the bill declares that such contracts are a matter of statewide concern due to their impact on public finances.