 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
death benefits; burial costs
Purpose
Increases the amount of burial expenses, from $5,000 to $10,000, that are paid as a workers' compensation death benefit in the case of a workplace injury causing death. Applies the burial expenses increase for the spouses of first responders retroactive to January 1, 2024.
Background
The Industrial Commission of Arizona is the state regulatory agency responsible for processing and adjudicating a workers' compensation claim. Employees may receive workers’ compensation benefits, including medical treatment and lost wages, as a result of injuries or death caused by an accident arising out of and in the course of employment. Every injured employee and the dependents of every injured employee who is killed by an accident during employment is entitled to receive compensation for loss sustained as a result of the injury or death, unless the injury was purposely self-inflicted. The compensation, or death benefits, received by the employee or the employee's dependents is determined by the employee's average monthly wage at the time of the injury. The workers' compensation death benefits include compensation for burial expenses in an amount up to $5,000 (A.R.S. §§ 23-1021; 23-1046; and A.R.S. Title 23, Chapter 6).
There is no anticipated fiscal impact to the state General Fund associated with S.B. 1156. The Joint Legislative Budget Committee estimates that S.B. 1156 would create an annual cost of $35,000 to Arizona government employers beginning in FY 2026. Of the $35,000 annual cost, the annual impact to the state would be $5,000 from the Risk Management Fund and the annual local government impact would be $30,000. There would be an additional onetime cost to the Risk Management Fund and local governments due to the retroactive application of the increased cap for first responders (JLBC fiscal note).
Provisions
1. Increases, from $5,000 to $10,000, the death benefit for burial expenses.
2. Applies the increased burial expenses amount for the spouses of first responders retroactive to January 1, 2024.
3. Defines first responder as a law enforcement officer, firefighter or paramedic and includes a person who is a volunteer first responder operating in an official capacity on behalf of a governmental entity that is involved in an emergency or law enforcement response.
4. Makes technical changes.
5. Becomes effective on the general effective date, with a retroactive provision as noted.
Prepared by Senate Research
February 12, 2025
MG/AL/ci