AZ HB2275

Requires cities and towns to submit settlement agreement reports to the governor, senate president, house speaker, and attorney general at least 90 days before entering into any settlement agreement of $500,000 or more.

Requires cities and towns to submit settlement agreements of $1,000,000 or more to the joint legislative budget committee for review and recommendations before finalizing; failure to submit makes the agreement not legally binding.

Applies identical reporting and approval requirements to counties, with the same $500,000 reporting threshold and $1,000,000 joint legislative budget committee review requirement.

Requires the attorney general to submit settlement agreement reports to the senate president and house speaker at least 30 days before entering into any state-level settlement agreement.

Defines "settlement agreement" to include consent decrees and legally binding documents resolving threatened or pending lawsuits, while excluding construction contract disputes, state land department disputes, personal injury claims, and construction contract claims by contractors.