ARIZONA STATE SENATE

CAILA YOUNG

LEGISLATIVE RESEARCH INTERN

JASON THEODOROU

LEGISLATIVE RESEARCH ANALYST

COMMERCE COMMITTEE

Telephone: (602) 926-3171

RESEARCH STAFF

TO:                  MEMBERS OF THE SENATE

COMMERCE COMMITTEE

DATE:            February 14, 2022

SUBJECT:      Strike everything amendment to S.B. 1403, relating to workers' compensation; industrial commission; claim

Purpose

            Outlines reporting requirements relating to when an insurance carrier or self-insured employer receives written notification of injury from an employee who was injured.

Background

The Industrial Commission of Arizona (ICA) is the state regulatory agency responsible for processing and adjudicating a compensation claim. A compensation claim may not be valid or enforceable unless the claim is filed with the ICA by the employee or, if resulting in death by the parties entitled to compensation, someone on their behalf in writing within one year after the injury occurred or the right thereto accrued. The ICA, on receiving a claim, must give notice to the insurance carrier. If the insurance carrier or self-insurer does not issue a notice of claim status denying the claim within 21 days after the date the insurance carrier is notified by the ICA of a claim or a petition to reopen, the insurance carrier must immediately pay compensation as if the claim was accepted, from the date the insurance carrier is notified by the ICA of a claim or petition to reopen until the date the insurance carrier issues a notice of claim status denying such claim. Failure of an employee or any other party entitled to compensation to file a claim with the ICA within one year or to comply with injury report requirements does not bar a claim if the insurance carrier or employer has commenced payment of certain compensation benefits (A.R.S. § 23-1061).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Requires an insurance carrier or self-insured employer, upon receipt of a written notification of injury from an employee who was injured, to:

a) forward the written notification of injury to the ICA within five business days; and

b) inform the employee of the employee's requirement to file a claim with the ICA.

2. Suspends the one-year period within which the employee or other entitled party may file a claim from the date the insurance carrier or self-insured employer received written notification of the injury until the date that the insurance carrier or self-insured employer forwards the written notification to the ICA.

3. Requires the ICA, upon receipt of notification of injury, to notify the employee of the employee's responsibility to file a claim with the ICA.

4. Makes technical changes.

5. Becomes effective on the general effective date.