HB2240 - 522R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 23-941, Arizona Revised Statutes, is amended to read:

START_STATUTE23-941. Hearing rights and procedure

A. Subject to the provisions of section 23‑947, any interested party may file a request for a hearing concerning a claim.

B. A request for a hearing shall be made in writing, be signed by or on behalf of the interested party and including his include the interested party's address, stating state that a hearing is desired, and be filed with the commission.

C. The commission shall refer the request for the hearing to the administrative law judge division for determination as expeditiously as possible. The presiding administrative law judge may dismiss a request for hearing when if it appears to his the presiding administrative law judge's satisfaction that the disputed issue or issues have been resolved by the parties. Any interested party who objects to such dismissal may request a review pursuant to section 23‑943.

D. At least twenty days' prior notice of the time and place of the hearing shall be given to all parties in interest by mail at their last known address. In the case of a hearing concerning suspension of benefits, pursuant to section 23‑1026, 23‑1027 or 23‑1071, only ten days' prior notice need be given is required. Hearings shall be held in the county where the workman resided at the time of the injury or such other another place selected by the administrative law judge.

E. A record of all proceedings at the hearing shall be made but need not be transcribed unless a party applies to the court of appeals for a writ of certiorari pursuant to section 23‑951. The record of the proceedings if not transcribed, shall be kept for at least two years but may be destroyed after such that time if a transcription is not requested.

F. Except as otherwise provided in this section and rules or of procedure established by the commission, the administrative law judge is not bound by common law or statutory rules of evidence or by technical or formal rules of procedure and may conduct the hearing in any manner that will achieve substantial justice.

G. Any party shall be entitled to issuance and service of subpoenas under the provisions of section 23‑921. Any party or his the party's representative may serve such subpoenas.

H. Any interested party or his the interested party's authorized agent shall be entitled to inspect any claims file of the commission, provided that such authorization is filed in writing with the commission.

I. Any interested party is entitled to one change of administrative law judge as a matter of right. To exercise the right to a change of administrative law judge, the interested party shall file a notice of change of administrative law judge. The notice of change of administrative law judge shall:

1. Be signed by the interested party or the interested party's authorized agent.

2. State the name of the administrative law judge to be changed.

3. Certify that the interested party or the interested party's authorized agent has timely filed the notice of change of administrative law judge. A notice of change of administrative law judge as a matter of right is timely if filed not more than thirty days after the date of the notice of hearing or not more than thirty days after a new administrative law judge is assigned to the claim if another interested party or the interested party's authorized agent has filed a notice of change of administrative law judge as a matter of right.

4. Certify that the interested party or the interested party's authorized agent has not previously been granted a change of administrative law judge as a matter of right for the claim.

I. J. Within thirty days after the date of notice of hearing Any interested party to a hearing before the commission or the interested party's authorized agent may file an affidavit for change of administrative law judge for cause against any hearing officer of the commission hearing such matters or commencing to hear such matter, setting a presiding administrative law judge that sets forth any of the grounds as provided in subsection J K of this section. , and The chief administrative law judge shall immediately transfer the matter to another officer of the commission who shall preside therein. Not more than one change of administrative law judge shall be granted to any one party. administrative law judge. An affidavit for change of administrative law judge for cause shall be filed within the time frames provided in subsection I of this section.

J. K. Grounds which that may be alleged as provided in subsection I J of this section for change of administrative law judge for cause are:

1. That the administrative law judge has been engaged as counsel in the hearing prior to before appointment as administrative law judge.

2. That the administrative law judge is otherwise interested in the hearing.

3. That the administrative law judge is of kin or otherwise related to a party to the hearing.

4. That the administrative law judge is a material witness in the hearing.

5. That the party filing the affidavit has cause to believe and does believe that on account of the bias, prejudice, or interest of the administrative law judge he the administrative law judge cannot obtain a fair and impartial hearing.

L. For the purposes of subsections I and J of this section, the employer and the employer's insurance carrier are considered a single party unless the employer's and the employer's insurance company's interests are in conflict.

K. M. After final disposition of the proceedings in which they are used, exhibits marked for identification or introduced as evidence at hearings or proceedings which that cannot be readily copied, photocopied, mechanically reproduced or otherwise preserved as a document for inclusion in the record of the proceedings may be disposed of in the following manner:

1. By written notice, the attorneys of record, or if none, the parties, shall be notified that the counsel or the party introducing such the exhibit may claim it at the industrial commission within sixty days.

2. After sixty days following notification, any such exhibit remaining in the custody of the industrial commission shall be disposed of as state surplus property pursuant to the direction of the department of administration, surplus property division. A written description of any such the exhibit shall be included in the record to preserve its the exhibit's identity. END_STATUTE

Sec. 2. Title 23, chapter 6, article 3, Arizona Revised Statutes, is amended by adding sections 23-941.02 and 23-954, to read:

START_STATUTE23-941.02. Vexatious litigants; designation; definitions

A. In a workers' compensation case before the commission, on the motion of a party, the chief administrative law judge or an administrative law judge designated by the chief administrative law judge may designate a pro se litigant a vexatious litigant. The pro se litigant shall respond within thirty days after the motion. The chief administrative law judge, or administrative law judge if designated by the chief administrative law judge, shall issue an order within thirty days after the pro se litigant's response is received or the time for response has elapsed.

B. A pro se litigant who is designated a vexatious litigant may not file a new request for hearing, pleading, motion or other document without prior leave of the administrative law judge. A designation of vexatious litigant is suspended during the period in which the litigant is represented by legal counsel.

C. A pro se litigant is a vexatious litigant if the commission finds the pro se litigant engaged in vexatious conduct.

D. For the purposes of this section:

1. "Vexatious conduct" includes any of the following:

(a) Repeated filing of requests for hearing, pleadings, motions or other documents solely or primarily for the purpose of harassment.

(b) Unreasonably expanding or delaying commission proceedings.

(d) Engaging in abuse of discovery or conduct in discovery that has resulted in the imposition of sanctions against the pro se litigant.

(e) A pattern of making unreasonable, repetitive and excessive requests for information.

(f) Repeated filing of documents or requests for relief that have been the subject of previous rulings by the commission in the same claim.

2. "Without substantial justification" has the same meaning prescribed in section 12‑349. END_STATUTE

START_STATUTE23-954. Payment of interest on awards

Interest on the payment of benefits shall be paid at a rate of interest at the lesser of ten percent per annum or a rate per annum that is equal to one percent plus the prime rate as published by the board of governors of the federal reserve system in statistical release h.15 or any publication that may supersede it on the date benefits are paid. Interest shall be paid only in the following instances:

1. On an award entered by the commission or by notice of claim status awarding permanent partial disability benefits pursuant to section 23-1044, subsection B or C or permanent total disability benefits pursuant to section 23-1045, subsection B or C, if benefits are not paid within ten days after the date the award or notice becomes final.

2. On a claim for dependent benefits, if the claim is denied and subsequently accepted or found compensable by award of the commission, from the date the claim for benefits was filed.

Sec. 3. Section 23-1070.01, Arizona Revised Statutes, is amended to read:

START_STATUTE23-1070.01. Request for early hearing; stipulation; action of commission

A. If a request for hearing filed in connection with a change of physician under section 23‑1070 alleges, by affidavit, that immediate and irreparable injury, loss or damage will result if such the hearing is not held prior to before the times otherwise prescribed by article 3 of this chapter or if all interested parties, in person or by counsel, stipulate in such the request for hearing that such the hearing should be held prior to before the times otherwise prescribed by article 3 of this chapter, the commission shall:

1. Immediately issue a notice to all parties setting a hearing date not more than fifteen days later.

2. Require that the administrative law judge, who shall not be subject to the notice or affidavit for change prescribed by section 23‑941, subsection I or J, determine the matter and make an award, if any, within five days after completion of the hearing.

B. All other procedures prescribed for subsequent actions with regard to such the hearing or award shall be as otherwise prescribed by law. END_STATUTE