AZ HB2654

Prohibits county boards of supervisors from establishing group health and accident coverage for retired county employees receiving state retirement benefits.

Prohibits charter schools, school districts, community college districts, and universities participating in the Arizona State Retirement System from sponsoring retiree health insurance coverage for former employees receiving retirement benefits.

Establishes a five-member board of trustees to administer the special employee health insurance trust fund, replacing prior administration by the department of administration director.

Eliminates employer-sponsored retiree health insurance programs for public employees in ASRS, PSPRS, elected officials' retirement plan, and corrections officer retirement plan, directing retirees to the Arizona State Retirement System's group health coverage instead.

Repeals section 38-651.01 and directs the department of administration to study feasibility of allowing small employers and nonprofits to participate in state health insurance coverage.