ARIZONA HOUSE OF REPRESENTATIVES Fifty-fourth Legislature Second Regular Session
	Senate: FIN DP 7-0-3-0 ׀ 3^rd Read 30-0-0-0 House: COM DP 8-0-0-1

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SB 1331: self-insured employers; deviation continuation

Sponsor:  Senator Livingston, LD 22

House Engrossed

Overview

Continues the deviation rate for calculating taxes or assessments paid by self-insured employers for two more years.

History

By law, employers are required to secure workers' compensation for their employees in one of two ways: 1) by insuring and keeping insured the payment of workers' compensation with an insurance carrier authorized by the Director of the Arizona Department of Insurance to write workers' compensation insurance in Arizona; or 2) furnishing to the Industrial Commission of Arizona (ICA) satisfactory proof of financial ability to pay the compensation directly or through a workers' compensation pool approved by the ICA.

Every self-insured employer, including workers' compensation pools, is required to pay an annual tax of not more than three percent of the premiums that would have been paid by the employer if the employer had been fully insured by an insurance carrier authorized to transact workers' compensation insurance during the preceding calendar year (A.R.S. § 23-961).

Laws 2011, Chapter 157 established a 10% deviation rate for calculating any tax or assessment to be paid by an authorized self-insured employer, including workers' compensation pools, for calendar years 2013, 2014 and 2015. Laws 2014, Chapter 35 continued the deviation rate through calendar year 2020.

Provisions

1. Extends the 10% deviation rate for calculating taxes or assessments paid by self-insured employers through calendar year 2022. (Sec. 1)

2. Makes a technical change. (Sec. 1)

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6.                   SB 1331

7. Initials PRB           Page 0 House Engrossed

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