State budget implementation; 2022-2023
Significant changes to the provision of insurance and risk management services for state agencies are anticipated. This bill also introduces the establishment of new funds, such as the construction insurance fund and the cyber risk insurance fund. These funds are aimed at managing the risks associated with state operations and ensuring that sufficient resources are available to handle liability claims. The bill addresses processes for settling claims and highlights the need for continued legislative oversight on funds appropriations, particularly in risk management contexts.
House Bill 2857 focuses on the implementation of the state budget for the fiscal years 2022-2023. The bill seeks to amend several existing sections of the Arizona Revised Statutes, specifically addressing how state funds are appropriated and managed in relation to insurance and risk management services. The bill proposes changes regarding provisions for the purchase of insurance for state-owned properties, including buildings and other assets, ensuring that state agencies are adequately covered against various risks involved in government operations.
Overall sentiment regarding HB2857 appears to be cautiously supportive among legislative members who acknowledge the necessity of a practical and robust risk management framework for the state. There are indications that while some legislators appreciate the structured approach taken towards risk management and insurance for state entities, there remain points of concern regarding how these changes would be administered in practice, particularly in relation to monitoring and accountability of the newly established funds.
The main points of contention are likely to arise from concerns about the implications of reduced legislative control over certain funds, as the bill allows for more administrative discretion in fund management. Additionally, there may be scrutiny over how the established funds, particularly for construction and cyber risks, will operate and whether they will effectively serve their intended purposes without unnecessary bureaucracy. Furthermore, the prior repeal of existing provisions might generate debate regarding the balance between modernization and the preservation of statutory protections.