House of
Representatives
HB 2209
technical correction; administrative procedure; exemptions
Sponsor: Representative Reagan
HB 2209 as printed is a technical correction bill.
A strike-everything amendment was adopted in the Committee on Commerce.
History of Proposed Strike-Everything Amendment
The State Compensation Fund (SCF) is currently the largest workers’ compensation insurance carrier in Arizona, insuring approximately 54,000 employers, which reflects about 67 percent of the Arizona market. A five-member Board of Directors appointed by the Governor presides over the SCF. Although the SCF was statutorily created, they currently receive no state or public monies, deriving all funds from policyholder premiums and investments. The SCF has no regulatory power, and is governed by Title 20 of the Arizona Revised Statutes, and thus regulated by the Department of Insurance for insurance operations. As a workers’ compensation carrier it is subject to the regulatory and adjudicatory authority of the Industrial Commission to the same extent as any other insurance company writing workers’ compensation insurance in Arizona.
The SCF was under the jurisdiction of the Industrial Commission of Arizona until 1969, when it became a stand-alone and competitive entity. When the statutes were rewritten and the SCF was legislatively severed to be independent during this period of time, rulemaking and regulatory authority remained with the Industrial Commission. The SCF never promulgated rules by means of the Administrative Procedures Act.
The proposed strike-everything amendment to HB 2209 specifically exempts the State Compensation Fund from the Administrative Procedures Act to confirm their ability to perform in a manner consistent with a mutual insurance company.
Proposed Strike-Everything Amendment
· Exempts the State Compensation Fund from the Administrative Procedures Act.
Amendments
Committee on Commerce
· Adopted a strike-everything amendment that exempts the State Compensation Fund from the Administrative Procedures Act.
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Forty-seventh Legislature
Second Regular Session 2 February 17, 2006
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