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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2693: insurance; bona fide associations; qualifications
Sponsor: Representative Livingston, LD 28
Committee on Commerce
Overview
Revises the qualifications as a bona fide association.
History
Statute outlines the qualifications for an association to qualify as a path 1 and path 2 bona fide association. To qualifying as a path 2 bona fide association, an association had to meet the requirements outlined in federal law relating to the definition of employer under Section 3(5) of the Employee Retirement Income Security Act (ERISA)– Association Health Plans (A.R.S. § 20-2324).
ERISA regulates employee benefit plans, including private-sector job-based retirement plans, health plans, and other welfare benefit plans. Section 3(5) of ERISA defined the employer to include "any person acting directly as an employer, or indirectly in the interest of an employer, in relation to an employee benefit plan; and includes a group or association of employers acting for an employer in such capacity."
The U.S. Department of Labor adopted the 2018 AHP Rule, which established alternative criteria under ERISA section 3(5) for determining when employers may join together in a group that could be treated as the "employer" sponsor of a single multiple employer group health plan. The Department has since rescinded the 2018 AHP Rule.
Provisions
1. Removes the classification of and requirements for a path 2 bona fide association. (Sec. 1)
2. Stipulates an association that meets the requirements of an employer as defined by federal law qualifies as a bona fide association. (Sec. 1)
3. Restates that the bona fide association requirements do not limit or prohibit the operation of a self-funded multiple employer welfare arrangement, rather than the issuance of self-funded health benefits plans, through:
a. certain bona fide associations;
b. a statewide chamber of commerce or a statewide business league that meets outlined criteria; or
c. the statewide chamber of commerce or statewide business league is exempt from federal taxation. (Sec. 1)
4. Modifies the definition of small employer. (Sec. 1)
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8. Initials PB HB 2693
9. 1/22/2026 Page 0 Commerce
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