AMENDING SECTION 23-908, ARIZONA REVISED STATUTES; AMENDING TITLE 23, CHAPTER
6, ARTICLE 3, ARIZONA REVISED STATUTES, BY ADDING SECTION 23-953; AMENDING
SECTIONS 23-1021 AND 23-1041, ARIZONA REVISED STATUTES; AMENDING TITLE 23,
CHAPTER 6, ARTICLE 8, ARIZONA REVISED STATUTES, BY ADDING SECTION 23-1043.03;
AMENDING SECTIONS 23-1044, 23-1045, 23-1046, 23-1061 AND 23-1065, ARIZONA REVISED STATUTES; RELATING TO WORKERS' COMPENSATION.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 23-908, Arizona Revised Statutes, is amended to read:
A. Every employer affected by the provisions of this chapter, and
every physician who attends an injured employee of such employer, shall file
with the commission and the employer's insurance carrier from time to time
a full and complete report of every known injury to the employee arising out
of or in the course of his employment and resulting in loss of life or
injury. Such report shall be furnished to the commission and such insurance
carrier at times and in the form and detail the commission prescribes, and
B. The commission shall fix a schedule of fees to be charged by
physicians
C. Notwithstanding
D. When an accident occurs to an employee, the employee shall forthwith report the accident and the injury resulting therefrom to the employer, and any physician employed by the injured employee shall forthwith report the accident and the injury resulting therefrom to the employer, the insurance carrier and the commission.
E. When an accident occurs to an employee, the employer may designate in writing a physician chosen by the employer, who shall be permitted by the employee, or any person in charge of the employee, to make one examination of the injured employee in order to ascertain the character and extent of the injury occasioned by the accident. The physician so chosen shall forthwith report to the employer, the insurance carrier and the commission the character and extent of the injury as ascertained by him. If the accident is not reported by the employee or his physician forthwith, as required, or if the injured employee or those in charge of him refuse to permit the employer's physician to make the examination, and the injured employee is a party to the refusal, no compensation shall be paid for the injury claimed to have resulted from the accident. The commission may relieve the injured person or his dependents from the loss or forfeiture of compensation if it believes after investigation that the circumstances attending the failure on the part of the employee or his physician to report the accident and injury are such as to have excused them.
F. Within ten days after receiving notice of an accident, the employer shall inform his insurance carrier and the commission on such forms and in such manner as may be prescribed by the commission.
G. Immediately upon notice to the employer of an accident resulting in an injury to an employee, the employer shall provide the employee with the name and address of the employer's insurance carrier, the policy number, and the expiration date.
H. Any person failing or refusing to comply with the provisions of this section is guilty of a petty offense.
Sec. 2. Title 23, chapter 6, article 3, Arizona Revised Statutes, is amended by adding section 23-953, to read:
Sec. 3. Section 23-1021, Arizona Revised Statutes, is amended to read:
A. Every employee coming within the provisions of this chapter who is
injured, and the dependents of every such employee who is killed by accident
arising out of and in the course of his employment, wherever the injury
occurred, unless the injury was purposely self-inflicted, shall be entitled
to receive and shall be paid such compensation for loss sustained on account
of the injury or death, such medical, nurse and hospital services and
medicines, and such amount of funeral expenses in
B. Every employee
C. An employee's injury or death shall not be considered a personal
injury by accident arising out of and in the course of employment and is not
compensable pursuant to this chapter
D. NOTWITHSTANDING SUBSECTION C OF THIS SECTION, IF THE EMPLOYER HAS
ESTABLISHED A POLICY OF DRUG TESTING OR ALCOHOL IMPAIRMENT TESTING IN
ACCORDANCE WITH CHAPTER 2, ARTICLE 14 OF THIS TITLE, IS MAINTAINING THAT
POLICY ON AN ONGOING MANNER AND, BEFORE THE DATE OF THE EMPLOYEE'S INJURY,
THE EMPLOYER FILES THE WRITTEN CERTIFICATION WITH THE INDUSTRIAL COMMISSION
AS REQUIRED BY SUBSECTION F OF THIS SECTION, AN EMPLOYEE'S INJURY OR DEATH
SHALL NOT BE CONSIDERED A PERSONAL INJURY BY ACCIDENT ARISING OUT OF AND IN
THE COURSE OF EMPLOYMENT AND IS NOT COMPENSABLE PURSUANT TO THIS CHAPTER, IF
THE EMPLOYEE OF SUCH AN EMPLOYER FAILS TO PASS, REFUSES TO COOPERATE WITH OR
REFUSES TO TAKE A DRUG TEST FOR THE UNLAWFUL USE OF ANY CONTROLLED SUBSTANCE
PROSCRIBED BY TITLE 13, CHAPTER 34 OR FAILS TO PASS, REFUSES TO COOPERATE
WITH OR REFUSES TO TAKE AN ALCOHOL IMPAIRMENT TEST THAT IS ADMINISTERED BY
OR AT THE REQUEST OF THE EMPLOYER NOT MORE THAN TWENTY-FOUR HOURS AFTER THE EMPLOYER RECEIVES ACTUAL NOTICE OF THE INJURY, UNLESS THE EMPLOYEE PROVES ANY
OF THE FOLLOWING:
1. THE EMPLOYEE'S USE OF ALCOHOL OR THE EMPLOYEE'S USE OF ANY UNLAWFUL
SUBSTANCE PROSCRIBED BY TITLE 13, CHAPTER 34 WAS NOT A CONTRIBUTING CAUSE OF
THE EMPLOYEE'S INJURY OR DEATH.
2. THE ALCOHOL IMPAIRMENT TEST INDICATES THAT THE EMPLOYEE'S ALCOHOL
CONCENTRATION WAS LOWER THAN THE ALCOHOL CONCENTRATION THAT WOULD CONSTITUTE
A VIOLATION OF SECTION 28-1381, SUBSECTION A AND WOULD NOT CREATE A
PRESUMPTION THAT THE EMPLOYEE WAS UNDER THE INFLUENCE OF INTOXICATING LIQUOR
PURSUANT TO SECTION 28-1381, SUBSECTION G.
3. THE DRUG TEST OR ALCOHOL IMPAIRMENT TEST USED CUTOFF LEVELS FOR THE
PRESENCE OF ALCOHOL, DRUGS OR METABOLITES THAT WERE LOWER THAN THE CUTOFF
LEVELS PRESCRIBED AT THE TIME OF THE TESTING FOR TRANSPORTATION WORKPLACE
DRUG AND ALCOHOL TESTING PROGRAMS UNDER 49 CODE OF FEDERAL REGULATIONS PART
40.
E. SUBSECTION D OF THIS SECTION DOES NOT APPLY IF THE EMPLOYER HAD
ACTUAL KNOWLEDGE OF AND PERMITTED OR CONDONED THE EMPLOYEE'S USE OF ALCOHOL
OR THE EMPLOYEE'S UNLAWFUL USE OF ANY CONTROLLED SUBSTANCE PROSCRIBED BY
TITLE 13, CHAPTER 34.
F. AN EMPLOYER THAT ESTABLISHES A POLICY OF DRUG TESTING OR ALCOHOL
IMPAIRMENT TESTING IN ACCORDANCE WITH CHAPTER 2, ARTICLE 14 OF THIS TITLE
SHALL FILE A WRITTEN CERTIFICATION TO THAT EFFECT WITH THE INDUSTRIAL
COMMISSION. ON OR BEFORE JANUARY 15 OF EACH YEAR, AN EMPLOYER THAT HAS
PREVIOUSLY ESTABLISHED A POLICY OF DRUG TESTING OR ALCOHOL IMPAIRMENT TESTING
AND IS MAINTAINING THAT POLICY SHALL BOTH FILE A WRITTEN CERTIFICATION TO
THAT EFFECT WITH THE INDUSTRIAL COMMISSION AND PROVIDE NOTIFICATION TO ITS
EMPLOYEES IN A MANNER CONSISTENT WITH SECTION 23-493.04, SUBSECTION A THAT
THE EMPLOYER IS MAINTAINING THAT POLICY.
G. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO ENHANCE OR
EXPAND THE REPORTING REQUIREMENTS PRESCRIBED IN SECTION 23-908, SUBSECTION D.
H. FOR PURPOSES OF THIS SECTION:
1. "REFUSES TO COOPERATE" MEANS THAT THE EMPLOYEE ENGAGES IN ANY ACT
OR OMISSION THAT IMPEDES THE ABILITY OF THE EMPLOYER, THE INSURANCE CARRIER
OR THE AGENTS OF THE EMPLOYER OR INSURANCE CARRIER TO OBTAIN AN ACCURATE
RESULT ON A DRUG TEST OR AN ALCOHOL IMPAIRMENT TEST.
2. "SUBSTANTIAL CONTRIBUTING CAUSE" MEANS ANYTHING MORE THAN A SLIGHT
CONTRIBUTING CAUSE.
Sec. 4. Section 23-1041, Arizona Revised Statutes, is amended to read:
A. Every employee of an employer within the provisions of this chapter who is injured by accident arising out of and in the course of employment, or his dependents in the event of his death, shall receive the compensation fixed in this chapter on the basis of such employee's average monthly wage at the time of injury.
B. If the injured or killed employee has not been continuously employed for the period of thirty days immediately preceding the injury or death, the average monthly wage shall be such amount as, having regard to the previous wage of the injured employee or of other employees of the same or most similar class working in the same or most similar employment in the same or neighboring locality, reasonably represents the monthly earning capacity of the injured employee in the employment in which he is working at the time of the accident.
C. If the employee is working under a contract by which he is guaranteed an amount per diem or per month, notwithstanding the contract price for such labor, the employee or his subordinates or employees working under the terms of such contract or his or their dependents in case of death shall be entitled to receive compensation on the basis only of the guaranteed wage as set out in the contract of employment, whether paid on a per diem or monthly basis, but in no event shall the basis be less than the wages paid to employees for similar work not under contract.
1. One thousand three hundred twenty-five dollars per month for employees injured before January 1, 1988.
2. One thousand six hundred fifty dollars per month for employees injured from and after December 31, 1987 but before July 1, 1989.
3. One thousand eight hundred dollars per month for employees injured from and after June 30, 1989 but before July 1, 1991.
4. Two thousand one hundred dollars per month for employees injured
from and after June 30, 1991
5. TWO THOUSAND FOUR HUNDRED DOLLARS PER MONTH FOR EMPLOYEES INJURED FROM AND AFTER THE EFFECTIVE DATE OF THIS AMENDMENT TO THIS SECTION.
Sec. 5. Title 23, chapter 6, article 8, Arizona Revised Statutes, is amended by adding section 23-1043.03, to read:
B. NOTWITHSTANDING ANY OTHER LAW, AN EMPLOYEE WHO SATISFIES THE
FOLLOWING CONDITIONS PRESENTS A PRIMA FACIE CLAIM FOR A CONDITION, INFECTION,
DISEASE OR DISABILITY INVOLVING OR RELATED TO HEPATITIS C IF THE MEDICAL
EVIDENCE SHOWS TO A REASONABLE DEGREE OF MEDICAL PROBABILITY THAT THE
EMPLOYEE SUSTAINED A SIGNIFICANT EXPOSURE WITHIN THE MEANING OF THIS SECTION:
1. THE EMPLOYEE'S REGULAR COURSE OF EMPLOYMENT INVOLVES HANDLING OF
OR EXPOSURE TO BLOOD OR BODY FLUIDS, OTHER THAN TEARS, SALIVA OR
PERSPIRATION, INCLUDING HEALTH CARE PROVIDERS AS DEFINED IN SECTION 36-661,
FORENSIC LABORATORY WORKERS, FIRE FIGHTERS, LAW ENFORCEMENT OFFICERS,
EMERGENCY MEDICAL TECHNICIANS, PARAMEDICS AND CORRECTIONAL OFFICERS.
2. WITHIN TEN CALENDAR DAYS AFTER A POSSIBLE SIGNIFICANT EXPOSURE THAT
ARISES OUT OF AND IN THE COURSE OF HIS EMPLOYMENT, THE EMPLOYEE REPORTS IN
WRITING TO THE EMPLOYER THE DETAILS OF THE EXPOSURE. THE EMPLOYER SHALL
NOTIFY ITS INSURANCE CARRIER OR CLAIMS PROCESSOR OF THE REPORT. FAILURE OF
THE EMPLOYER TO NOTIFY THE INSURANCE CARRIER IS NOT A DEFENSE TO A CLAIM BY
THE EMPLOYEE.
3. THE EMPLOYEE HAS BLOOD DRAWN WITHIN TEN DAYS AFTER THE POSSIBLE
SIGNIFICANT EXPOSURE, THE BLOOD IS TESTED FOR HEPATITIS C BY ANTIBODY TESTING
WITHIN THIRTY DAYS AFTER THE EXPOSURE AND THE TEST RESULTS ARE NEGATIVE.
4. THE EMPLOYEE IS TESTED OR DIAGNOSED, ACCORDING TO CLINICAL
STANDARDS ESTABLISHED BY THE CENTERS FOR DISEASE CONTROL OF THE UNITED STATES
PUBLIC HEALTH SERVICE, AS POSITIVE FOR THE PRESENCE OF HEPATITIS C WITHIN
SEVEN MONTHS AFTER THE DATE OF THE POSSIBLE SIGNIFICANT EXPOSURE.
C. ON PRESENTATION OR SHOWING OF A PRIMA FACIE CLAIM UNDER THIS
SECTION, THE EMPLOYER MAY PRODUCE SPECIFIC, RELEVANT AND PROBATIVE EVIDENCE
TO DISPUTE THE UNDERLYING FACTS, TO CONTEST WHETHER THE EXPOSURE WAS
SIGNIFICANT AS DEFINED IN THIS SECTION, OR TO ESTABLISH AN ALTERNATIVE
SIGNIFICANT EXPOSURE INVOLVING THE PRESENCE OF HEPATITIS C.
D. A PERSON ALLEGED TO BE A SOURCE OF A SIGNIFICANT EXPOSURE SHALL NOT
BE COMPELLED BY SUBPOENA OR OTHER COURT ORDER TO RELEASE CONFIDENTIAL
HEPATITIS C RELATED INFORMATION EITHER BY DOCUMENT OR BY ORAL TESTIMONY.
EVIDENCE OF THE ALLEGED SOURCE'S HEPATITIS C STATUS MAY BE INTRODUCED BY
EITHER PARTY IF THE ALLEGED SOURCE KNOWINGLY AND WILLINGLY CONSENTS TO THE
RELEASE OF THAT INFORMATION.
E. NOTWITHSTANDING TITLE 36, CHAPTER 6, ARTICLE 4, MEDICAL INFORMATION
REGARDING THE EMPLOYEE OBTAINED BY A PHYSICIAN OR SURGEON IS SUBJECT TO
SECTION 23-908, SUBSECTION C.
F. THE COMMISSION BY RULE SHALL PRESCRIBE REQUIREMENTS AND FORMS
REGARDING EMPLOYEE NOTIFICATION OF THE REQUIREMENTS OF THIS SECTION AND THE
PROPER DOCUMENTATION OF A SIGNIFICANT EXPOSURE.
G. FOR THE PURPOSES OF THIS SECTION, "SIGNIFICANT EXPOSURE" MEANS
CONTACT OF AN EMPLOYEE'S RUPTURED OR BROKEN SKIN OR MUCOUS MEMBRANE OR OTHER SIGNIFICANT UNBROKEN SURFACE AREA WITH A PERSON'S BLOOD OR BODY FLUIDS, OTHER
THAN TEARS, SALIVA OR PERSPIRATION, OF A MAGNITUDE THAT THE CENTERS FOR
DISEASE CONTROL HAVE EPIDEMIOLOGICALLY DEMONSTRATED CAN RESULT IN
TRANSMISSION OF HEPATITIS C. FOR PURPOSES OF FILING A CLAIM UNDER THIS
SECTION, SIGNIFICANT EXPOSURE DOES NOT INCLUDE SEXUAL ACTIVITY OR ILLEGAL
DRUG USE.
Sec. 6. Section 23-1044, Arizona Revised Statutes, is amended to read:
A. For temporary partial disability there shall be paid during the
period thereof sixty-six and two-thirds per cent of the difference between
the wages earned before the injury and the wages which the injured person is
able to earn thereafter. Unemployment benefits received during the period
of temporary partial disability
B. Disability shall be deemed permanent partial disability if caused by any of the following specified injuries, and compensation of fifty-five per cent of the average monthly wage of the injured employee, in addition to the compensation for temporary total disability, shall be paid for the period given in the following schedule:
1. For the loss of a thumb, fifteen months.
2. For the loss of a first finger, commonly called the index finger, nine months.
3. For the loss of a second finger, seven months.
4. For the loss of a third finger, five months.
5. For the loss of the fourth finger, commonly called the little finger, four months.
6. The loss of a distal or second phalange of the thumb or the distal or third phalange of the first, second, third or fourth finger, shall be considered equal to the loss of one-half of the thumb or finger, and compensation shall be one-half of the amount specified for the loss of the entire thumb or finger.
7. The loss of more than one phalange of the thumb or finger shall be considered as the loss of the entire finger or thumb, but in no event shall the amount received for more than one finger exceed the amount provided for the loss of a hand.
8. For the loss of a great toe, seven months.
9. For the loss of a toe other than the great toe, two and one-half months.
10. The loss of the first phalange of any toe shall be considered equal to the loss of one-half of the toe and compensation shall be one-half of the amount for one toe.
11. The loss of more than one phalange shall be considered as the loss of the entire toe.
12. For the loss of a major hand, fifty months, or of a minor hand, forty months.
13. For the loss of a major arm, sixty months, or of a minor arm, fifty months.
14. For the loss of a foot, forty months.
15. For the loss of a leg, fifty months.
16. For the loss of an eye by enucleation, thirty months.
17. For the permanent and complete loss of sight in one eye without enucleation, twenty-five months.
18. For permanent and complete loss of hearing in one ear, twenty months.
19. For permanent and complete loss of hearing in both ears, sixty months.
20. The permanent and complete loss of the use of a finger, toe, arm, hand, foot or leg may be deemed the same as the loss of any such member by separation.
21. For the partial loss of use of a finger, toe, arm, hand, foot or
leg, or partial loss of sight or hearing, fifty per cent of the average
monthly wage during that proportion of the number of months in the foregoing
schedule provided for the complete loss of use of such member, or complete
loss of sight or hearing, which the partial loss of use thereof bears to the
total loss of use of such member or total loss of sight or hearing. In this
paragraph, "loss of use" means a loss of physical function of the affected
member, sight or hearing. The effect on
22. For permanent disfigurement about the head or face, which shall include injury to or loss of teeth, the commission may, in accordance with the provisions of section 23-1047, allow such sum for compensation thereof as it deems just, in accordance with the proof submitted, for a period of not to exceed eighteen months.
C. In cases not enumerated in subsection B of this section,
D. In determining the amount which represents the reduced monthly earning capacity for the purposes of subsection C of this section, consideration shall be given, among other things, to any previous disability, the occupational history of the injured employee, the nature and extent of the physical disability, the type of work the injured employee is able to perform subsequent to the injury, any wages received for work performed subsequent to the injury and the age of the employee at the time of injury.
E. In case there is a previous disability, as the loss of one eye, one hand, one foot or otherwise, the percentage of disability for a subsequent injury shall be determined by computing the percentage of the entire disability and deducting therefrom the percentage of the previous disability as it existed at the time of the subsequent injury.
F. For the purposes of subsection C of this section, the commission
shall, in accordance with the provisions of section 23-1047 when the physical
condition of the injured employee becomes stationary, determine the amount
which represents the reduced monthly earning capacity
1. Upon a showing of a change in the physical condition of the
2. Upon a showing of a reduction in the earning capacity of the
3. Upon a showing that
G. The commission may adopt a schedule for rating loss of earning
capacity and reasonable and proper rules to carry out the provisions of this
section.
1.
2. In cases
H. Any single injury or disability
Sec. 7. Section 23-1045, Arizona Revised Statutes, is amended to read:
A. For temporary total disability the following compensation shall be paid:
1.
2. If there are persons
B. For permanent total disability, compensation of sixty-six and two-thirds per cent of the average monthly wage shall be paid during the life of the injured person.
C. In the absence of proof to the contrary, disability shall be deemed total and permanent if caused by:
1. The total and permanent loss of sight of both eyes.
2. The loss by separation of both feet.
3. The loss by separation of both hands.
4. An injury to the spine resulting in permanent and complete paralysis of both legs or both arms, or one leg and one arm.
5. An injury to the skull resulting in incurable imbecility or insanity.
6. The loss by separation of one hand and one foot.
D. The enumeration in this section is not exclusive, and in all other cases permanent total disability shall be determined in accordance with the facts and in accordance with the provisions of section 23-1047.
Sec. 8. Section 23-1046, Arizona Revised Statutes, is amended to read:
A. In case of an injury causing death, the compensation therefor shall
be known as a death benefit
1. Burial expenses, not to exceed
2. To the surviving spouse, if there
(a) If one of the brothers or sisters is wholly dependent upon the deceased employee for support at the time of injury causing death, twenty-five per cent of the average monthly wage until the age of eighteen years.
(b) If more than one brother or sister is wholly dependent, thirty-five per cent of the average monthly wage at the time of injury causing death, divided among such dependents share and share alike.
(c) If none of the brothers or sisters is wholly dependent, but one or more are partly dependent, fifteen per cent divided among such dependents share and share alike.
B. If the deceased employee leaves dependents only partially dependent upon his earnings for support at the time of the injury, the monthly compensation shall be equal to such proportion of the monthly payments for the benefit of persons totally dependent as the amount contributed by the employee to such partial dependents bears to the average wage of the deceased at the time of the injury resulting in his death. The duration of compensation to partial dependents shall be fixed by the commission in accordance with the facts shown, and in accordance with the provisions of section 23-1047, but shall in no case exceed compensation for one hundred months.
Sec. 9. Section 23-1061, Arizona Revised Statutes, is amended to read:
A. Notwithstanding
B. Failure of an employee or
C. If the commission receives a notification of the injury, the commission shall send a claim form to the employee.
D. The issue of failure to file a claim must be raised at the first hearing on a claim for compensation in respect to the injury or death.
E. Within ten days after receiving notice of an accident, the employer shall inform his insurance carrier and the commission on such forms as may be prescribed by the commission.
F. Each insurance carrier and self-insuring employer shall report to the commission a notice of the first payment of compensation and shall promptly report to the commission and to the employee by mail at his last known address any denial of a claim, any change in the amount of compensation and the termination thereof, except that claims for medical, surgical and hospital benefits which are not denied shall be reported to the commission in the form and manner determined by the commission. In all cases where compensation is payable, the carrier or self-insuring employer shall promptly determine the average monthly wage pursuant to section 23-1041. Within thirty days of the payment of the first installment of compensation, the carrier or self-insuring employer shall notify the employee and commission of the average monthly wage of the claimant as calculated, and the basis for such determination. The commission shall thereupon make its own independent determination of the average monthly wage pursuant to section 23-1041. The commission shall within thirty days after receipt of such notice notify the employee, employer and carrier of such determination. The amount determined by the commission shall be payable retroactive to the first date of entitlement. The first payment of compensation shall be accompanied by a notice on a form prescribed by the commission stating the manner in which the amount of compensation was determined.
G. Except as otherwise provided by law, the insurance carrier or self-insuring employer shall process and pay compensation and provide medical, surgical and hospital benefits, without the necessity for the making of an award or determination by the commission.
H. An employee may reopen
I. Upon the filing of a petition to reopen a claim the commission shall in writing notify the employer's insurance carrier or the self-insuring employer, which shall in writing notify the commission and the employee within twenty-one days after the date of such notice of its acceptance or denial of the petition. The reopened claim shall be processed thereafter in like manner as a new claim.
J. The commission shall investigate and review any claim in which it appears to the commission that the claimant has not been granted the benefits to which such claimant is entitled. If the commission determines that payment or denial of compensation is improper in any way, it shall hold a hearing pursuant to section 23-941 within sixty days after receiving notice of such impropriety.
K. When there is a dispute as to which employer, or insurance carrier,
is liable for the payment of a compensable claim, the commission may, by
order, designate the employer or insurance carrier which shall pay the claim.
Payment shall begin within fourteen days after the employer or insurance
carrier has been ordered by the commission to commence payment. When a final
determination has been made as to which employer or insurance carrier is
actually liable, the commission shall direct any necessary monetary
adjustment or reimbursement
L. Upon application to the commission, and for good cause shown, the commission may direct that a document filed as a claim for compensation benefits be designated as a petition to reopen, effective as of the original date of filing. In like manner upon application and good cause shown the commission may direct that a document filed as a petition to reopen be designated a claim for compensation benefits, effective as of the original date of filing.
M. If the insurance carrier or self-insurer does not issue a notice
of claim status denying the claim within twenty-one days from the date the
carrier is notified by the commission of a claim or of a petition to reopen,
the carrier shall pay immediately
Sec. 10. Section 23-1065, Arizona Revised Statutes, is amended to read:
A. The industrial commission may direct the payment into the state treasury of not to exceed one and one-half per cent of all premiums received by the state compensation fund and private insurance carriers during the immediately preceding calendar year. The same percentage shall be assessed against self-insurers based on the total cost to the self-insured employer as provided in section 23-961, subsection G. Such assessments shall be computed on the same premium basis as provided for in section 23-961, subsections G, H, I and J and shall be no more than is necessary to keep the special fund actuarially sound. Such payments shall be placed in a special fund within the administrative fund to provide, at the discretion of the commission, such additional awards as may be necessary to enable injured employees to accept the benefits of any law of the state or of the United States, or both jointly, for promotion of vocational rehabilitation of persons disabled in industry.
B. In claims involving an employee who has a preexisting industrially-related permanent physical impairment of the type specified in section 23-1044, subsection B and who thereafter suffers an additional permanent physical impairment of the type specified in such subsection, the claim involving the subsequent impairment is eligible for reimbursement, as provided by subsection D of this section, according to the following:
1. The employer in whose employ the subsequent impairment occurred or its insurance carrier is solely responsible for all temporary disability compensation to which the employee is entitled and for an amount equal to the permanent disability compensation provided by section 23-1044, subsection B for the subsequent impairment. If the employee is determined to have sustained no loss of earning capacity after the medically stationary date, the employer or carrier shall pay him as a vocational rehabilitation bonus the amount calculated under this paragraph as a lump sum, which shall be a credit against any permanent compensation benefits awarded in any subsequent proceeding. The amount of the vocational rehabilitation bonus for which the employer or carrier is responsible under this paragraph shall be calculated solely on physical, medically rated permanent impairment and not on occupational or other factors.
2. If the commission determines that the employee is entitled to compensation for loss of earning capacity under the provisions of section 23-1044, subsection C or permanent total disability under section 23-1045, subsection B, the total amount of permanent benefits for which the employer or carrier is solely responsible under paragraph 1 of this subsection shall be expended first, with monthly payments made according to the loss of earning capacity or permanent total disability award. The employer or carrier and the special fund are equally responsible for the remaining amount of compensation for loss of earning capacity under section 23-1044, subsection C or permanent total disability under section 23-1045, subsection B. This paragraph shall not be construed as requiring payment of any benefits under section 23-1044, subsection B in any case in which an employee is entitled to benefits for loss of earning capacity under section 23-1044, subsection C or permanent total disability benefits under section 23-1045, subsection B.
C. In claims involving an employee who has a preexisting physical impairment which is not industrially-related and, whether congenital or due to injury or disease, is of such seriousness as to constitute a hindrance or obstacle to employment or to obtaining reemployment if the employee becomes unemployed, and the impairment equals or exceeds a ten per cent permanent impairment evaluated in accordance with the American medical association guides to the evaluation of permanent impairment, and the employee thereafter suffers an additional permanent impairment not of the type specified in section 23-1044, subsection B, the claim involving the subsequent impairment is eligible for reimbursement, as provided by subsection D of this section, under the following conditions:
1. The employer in whose employ the subsequent impairment occurred or its carrier is solely responsible for all temporary disability compensation to which the employee is entitled.
2.
3. The employee's preexisting impairment is due to one or more of the following:
(a) Epilepsy.
(b) Diabetes.
(c) Cardiac disease.
(d) Arthritis.
(e) Amputated foot, leg, arm or hand.
(f) Loss of sight of one or both eyes or a partial loss of uncorrected vision of more than seventy-five per cent bilaterally.
(g) Residual disability from poliomyelitis.
(h) Cerebral palsy.
(i) Multiple sclerosis.
(j) Parkinson's disease.
(k) Cerebral vascular accident.
(l) Tuberculosis.
(m) Silicosis.
(n) Psychoneurotic disability following treatment in a recognized medical or mental institution.
(o) Hemophilia.
(p) Chronic osteomyelitis.
(q) Hyperinsulinism.
(r) Muscular dystrophies.
(s) Arteriosclerosis.
(t) Thrombophlebitis.
(u) Varicose veins.
(v) Heavy metal poisoning.
(w) Ionizing radiation injury.
(x) Compressed air sequelae.
(y) Ruptured intervertebral disk.
4. The employer or carrier and the special fund are equally responsible for the amount of compensation for loss of earning capacity under section 23-1044, subsection C or permanent total disability under section 23-1045, subsection B.
D. The employer or insurance carrier shall notify the commission of its intent to claim reimbursement for an eligible claim under subsection B or C of this section not later than the time the employer or insurance carrier notifies the commission pursuant to section 23-1047, subsection A. Upon receiving notice the commission may expend funds from the special fund created by this section for travel and discovery procedures and for the employment of such independent legal, medical, rehabilitation, claims or labor market consultants or experts as may be deemed necessary by the commission to assist in the determination of the liability of the special fund, if any, under subsection B or C of this section. In the event there is any dispute regarding liability to the special fund pursuant to subsection B or C of this section, the commission shall not delay the issuance of a permanent award pursuant to section 23-1047, subsection B.
E. If the special fund created by this section is determined to be liable under either subsection B or C of this section, the employer or insurance carrier which is primarily liable shall pay the entire amount of the award to the injured employee and the commission shall by rule provide for the reimbursement of the employer or insurance carrier on an annual basis. In any case arising out of subsection B or C of this section, the written approval of the special fund is required for the compromise of any claim made pursuant to section 23-1023. In any such case, written approval shall not be unreasonably withheld by the special fund, carrier, self-insured employer or other person responsible for the payment of compensation. Failure to obtain the written approval of the special fund shall not cause the injured worker to lose any benefits but ends the special fund's liability for reimbursement and makes the employer or carrier solely responsible for the payment of the remaining benefits.
F. The employer or insurance carrier shall make its claim for reimbursement to the commission no later than November 1 each year, for payments made pursuant to subsection B or C of this section during the twelve months prior to October 1 each year. Claims shall be paid before December 31 each year. If the total annual reserved liabilities of the special fund obligated under subsections B and C of this section exceed six million dollars, as determined by the annual actuarial study performed pursuant to subsection H of this section, the commission may, after notice and a hearing, levy an additional assessment under subsection A of this section of up to one-half per cent to meet such liabilities. Any insurance carrier or employer who may be adversely affected by the additional assessment may at any time prior to the sixtieth day after such additional assessment is ordered file a complaint challenging the validity of the additional assessment in the superior court in Maricopa county for a judicial review of the additional assessment. On judicial review the determination of the commission shall be upheld if supported by substantial evidence in the record considered as a whole.
G. In the event the injured employee is awarded additional compensation, under the provisions of subsection A of this section, the commission retains jurisdiction to amend, alter or change the award upon a change in the physical condition of the injured employee resulting from the injury.
H. The commission shall cause an annual actuarial study of the special award fund to be made by a qualified actuary who is a member of the society of actuaries. The actuary shall make specific recommendations for maintaining the fund on a sound actuarial basis. The actuarial study shall be completed on or before September 1.
I. The special fund of the commission consists of all monies from premiums and assessments except penalties assessed pursuant to this chapter received and paid into the fund, property and securities acquired by the use of monies in the fund, interest earned on monies in the fund and other monies derived from the sale, use or lease of properties belonging to the fund. The special fund created by this section shall be administered by the director of the industrial commission, subject to the authority of the industrial commission. The director of the commission with approval of the investment committee may, in the administration of the special fund, provide loans, subject to repayment, budgetary review and legislative appropriation, to the administrative fund for the purposes and subject to the provisions of section 23-1081, acquire real property and acquire or construct a building or other improvements on the real property as may be necessary to house, contain, furnish, equip and maintain offices and space for departmental and operational facilities of the commission. The commission when using space constructed pursuant to this section shall make equal payments of rent on a semiannual basis which shall be deposited in the special fund. The investment committee shall determine the amount of the rent which must be at least equal to or greater than that determined by the joint committee on capital review for buildings of similar design and construction as provided by section 41-792.01.
J. There is established an investment committee consisting of the director and the chairman of the commission and three persons knowledgeable in investments and economics appointed by the governor. Of the members appointed by the governor, one shall be a professional in the investment business, one shall represent workers' compensation insurers, and one shall represent self-insurers. The term of members appointed by the governor is three years which shall begin on July 1 and end on June 30 three years later. The committee shall prescribe by rule investment policies and supervise the investment activities of the special fund.
K. Each member of the investment committee, other than the director of the commission, is eligible to receive from the special fund:
1. Compensation of fifty dollars for each day while in actual attendance at meetings of the investment committee.
2. Reimbursement for expenses pursuant to title 38, chapter 4, article 2.
L. The investment committee shall meet at least once every month.
M. The investment committee shall periodically review and assess the investment strategy.
N. The investment committee may, by resolution, invest and reinvest the surplus or reserves in the funds established under this chapter in any legal investments authorized under section 38-719.
O. In addition to the investments authorized under section 38-719, the investment committee may approve the investment in real property and improvements on real property to house and maintain offices of the commission, including spaces for its departmental and operational facilities. Title to the real estate and improvements on the real estate vests in the special fund of the commission, and the assets become part of the fund as provided by this section.
P. The investment committee may appoint a custodian for the safekeeping of all or any portion of the investments owned by the special fund of the commission and may register stocks, bonds and other investments in the name of a nominee. Except for investments held by a custodian or in the name of a nominee, all securities purchased pursuant to subsection N of this section shall promptly be deposited with the state treasurer as custodian thereof, who shall collect the dividends, interest and principal thereof, and pay, when collected, into the special fund. The state treasurer shall pay all vouchers drawn for the purchase of securities. The director may sell any of the securities as the director deems appropriate, if authorized by resolution of the investment committee, and the proceeds therefrom shall be payable to the state treasurer for the account of the special fund upon delivery of the securities to the purchaser or the purchaser's agent.
Sec. 11.
Section 23-1046, Arizona Revised Statutes, as amended by this act, applies retroactively to from and after February 28, 1999.
APPROVED BY THE GOVERNOR MAY 19, 1999.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 19, 1999.
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