 |
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
municipal firefighters; cancer fund; distributions
Purpose
Modifies requirements relating to the Municipal Firefighter Cancer Reimbursement Fund (Fund) and the annual distribution of monies, the annual financial status report and withholdings for delinquent assessments.
Background
In 2021, the Legislature established the Fund administered by the Industrial Commission of Arizona (ICA) (Laws 2021, Ch. 411). The Fund consists of: 1) monies collected by the ICA from cities and towns that receive state shared revenues; and 2) monies received from any other source, including federal monies, investment income and private grants, gifts, contributions and devises. The total amount of fees for all cities and towns may not exceed $15,000,000 in each fiscal year. The share of fees in each fiscal year to each city and town must be based on the population of the city or town as determined by the most recent population estimates of the U.S. Census Bureau as of July 1 in proportion to the total population of all incorporated cities and towns. The ICA must assess the fees no later than July 31 of each year, and the fees are payable immediately on assessment. If a city or town fails to pay the assessment in full by September 30, the ICA must notify the State Treasurer who must withhold the delinquent amount from the distribution of state shared revenues to the appropriate city or town. The State Treasurer must continue to withhold monies until the city or town has paid the entire amount of the assessment (A.R.S. § 23-1703).
Monies in the
Fund must be used to reimburse municipal payors for the compensation and
benefits paid by the municipal payors to municipal firefighters and fire
investigators for:
1) compensation for temporary partial disability, permanent partial disability
and lost earning capacity; 2) compensation for temporary total disability and
permanent total disability; 3) medical, surgical and hospital benefits; and 4)
death benefits. The ICA must annually distribute the monies in the Fund on a
prorated basis based on the amount of the individual compensation and benefits
paid by a municipal payor for compensation and benefits to a municipal
firefighter or fire investigator for disease, infirmity or impairment in
proportion to the statewide aggregate of all compensation and benefits paid for
the fiscal year (A.R.S.
§ 23-1702).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits the annual distributions of Fund monies from exceeding the statewide aggregate of all compensation and benefits paid by municipal payors to municipal firefighters and fire investigators for the relevant fiscal year.
2. Requires monies remaining undistributed at the end of the fiscal year to remain in the Fund and be available for annual distributions in future fiscal years.
3. Requires the annual report on the financial status of the Fund to include the number of reimbursement claims, rather than the number of reimbursement claims approved.
4. Requires the total amount of Fund assessments for all cities and towns to be $15,000,000, rather than to not exceed $15,000,000.
5. Removes the requirement for the State Treasurer to continue to withhold from state shared revenues any delinquent assessment amount until the city or town has paid the entire amount of the assessment.
6. Makes technical changes.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Removes the specification that Fund monies be annually distributed by the end of the fiscal year.
2. Requires monies remaining undistributed at the end of the fiscal year to remain in the Fund and be available for annual distributions in future fiscal years.
3. Requires the total amount of Fund assessments for all cities and towns to be $15,000,000, rather than to not exceed $15,000,000.
Senate Action
COM 2/16/22 DPA 8-0-1
Prepared by Senate Research
February 21, 2022
JT/sr