23-901

23-901. Definitions

In this chapter, unless the context otherwise requires:

1. "Award" means the finding or decision of an administrative law judge or the
commission as to the amount of compensation or benefit due an injured employee or the
dependents of a deceased employee.

2. "Client" means an individual, association, company, firm, partnership,
corporation or any other legally recognized entity that is subject to this chapter and
that enters into a professional employer agreement with a professional employer
organization.

3. "Co-employee" means every person employed by an injured employee's employer.

4. "Commission" means the industrial commission of Arizona.

5. "Compensation" means the compensation and benefits provided by this chapter.

6. "Employee", "workman", "worker" and "operative" means:

(a) Every person in the service of the state or a county, city, town, municipal
corporation or school district, including regular members of lawfully constituted police
and fire departments of cities and towns, whether by election, appointment or contract of
hire.

(b) Every person in the service of any employer subject to this chapter, including
aliens and minors legally or illegally permitted to work for hire, but not including a
person whose employment is both:

(i) Casual.

(ii) Not in the usual course of the trade, business or occupation of the employer.

(c) Lessees of mining property and their employees and contractors engaged in the
performance of work which is a part of the business conducted by the lessor and over
which the lessor retains supervision or control are within the meaning of this paragraph
employees of the lessor, and are deemed to be drawing wages as are usually paid employees
for similar work. The lessor may deduct from the proceeds of ores mined by the lessees
the premium required by this chapter to be paid for such employees.

(d) Regular members of volunteer fire departments organized pursuant to title 48,
chapter 5, article 1, regular firemen of any volunteer fire department, including private
fire protection service organizations, organized pursuant to title 10, chapters 24
through 40, volunteer firemen serving as members of a fire department of any incorporated
city or town or an unincorporated area without pay or without full pay and on a part-time
basis, and voluntary policemen and volunteer firemen serving in any incorporated city,
town or unincorporated area without pay or without full pay and on a part-time basis, are
deemed to be employees, but for the purposes of this chapter, the basis for computing
wages for premium payments and compensation benefits for regular members of volunteer
fire departments organized pursuant to title 48, chapter 5, article 1, or organized
pursuant to title 10, chapters 24 through 40, regular members of any private fire
protection service organization, volunteer firemen and volunteer policemen of these
departments or organizations shall be the salary equal to the beginning salary of the
same rank or grade in the full-time service with the city, town, volunteer fire
department or private fire protection service organization, provided if there is no
full-time equivalent then the salary equivalent shall be as determined by resolution of
the governing body of the city, town or volunteer fire department or corporation.

(e) Members of the department of public safety reserve, organized pursuant to
section 41-1715, are deemed to be employees. For the purposes of this chapter, the basis
for computing wages for premium payments and compensation benefits for a member of the
department of public safety reserve who is a peace officer shall be the salary received
by officers of the department of public safety for their first month of regular duty as
an officer. For members of the department of public safety reserve who are not peace
officers, the basis for computing premiums and compensation benefits is four hundred
dollars a month.

(f) Any person placed in on-the-job evaluation or in on-the-job training under the
department of economic security's temporary assistance for needy families program or
vocational rehabilitation program shall be deemed to be an employee of the department for
the purpose of coverage under the state workers' compensation laws only. The basis for
computing premium payments and compensation benefits shall be two hundred dollars per
month. Any person receiving vocational rehabilitation services under the department of
economic security's vocational rehabilitation program whose major evaluation or training
activity is academic, whether as an enrolled attending student or by correspondence, or
who is confined to a hospital or penal institution, shall not be deemed to be an employee
of the department for any purpose. Any dividend which the department's vocational
rehabilitation program may be entitled to receive from the state compensation fund
because of a favorable loss experience for any policy period shall not revert to the
state general fund but shall be applied to the department's current premium obligations
for workers' compensation coverage for such program.

(g) Regular members of a volunteer sheriff's reserve, which may be established by
resolution of the county board of supervisors, to assist the sheriff in the performance
of the sheriff's official duties. A roster of the current members shall monthly be
certified to the clerk of the board of supervisors by the sheriff and shall not exceed
the maximum number authorized by the board. Certified members of an authorized volunteer
sheriff's reserve shall be deemed to be employees of the county for the purpose of
coverage under the Arizona workers' compensation laws and occupational disease disability
laws and shall be entitled to receive the benefits of these laws for any compensable
injuries or disabling conditions which arise out of and occur in the course of the
performance of duties authorized and directed by the sheriff. Compensation benefits and
premium payments shall be based upon the salary received by a regular full-time deputy
sheriff of the county involved for the first month of regular patrol duty as an officer
for each certified member of a volunteer sheriff's reserve. This subdivision shall not be
construed to provide compensation coverage for any member of a sheriff's posse who is not
a certified member of an authorized volunteer sheriff's reserve except as a participant
in a search and rescue mission or a search and rescue training mission.

(h) A working member of a partnership may be deemed to be an employee entitled to
the benefits provided by this chapter upon written acceptance, by endorsement, at the
discretion of the insurance carrier for the partnership of an application for coverage by
the working partner. The basis for computing premium payments and compensation benefits
for the working partner shall be an assumed average monthly wage of not less than six
hundred dollars nor more than the maximum wage provided in section 23-1041 and is subject
to the discretionary approval of the insurance carrier. Any compensation for permanent
partial or permanent total disability payable to the partner shall be computed on the
lesser of the assumed monthly wage agreed to by the insurance carrier on the acceptance
of the application for coverage or the actual average monthly wage received by the
partner at the time of injury.

(i) The sole proprietor of a business subject to this chapter may be deemed to be
an employee entitled to the benefits provided by this chapter on written acceptance, by
endorsement, at the discretion of the insurance carrier of an application for coverage by
the sole proprietor. The basis for computing premium payments and compensation benefits
for the sole proprietor shall be an assumed average monthly wage of not less than six
hundred dollars nor more than the maximum wage provided by section 23-1041 and is subject
to the discretionary approval of the insurance carrier. Any compensation for permanent
partial or permanent total disability payable to the sole proprietor shall be computed on
the lesser of the assumed monthly wage agreed to by the insurance carrier on the
acceptance of the application for coverage or the actual average monthly wage received by
the sole proprietor at the time of injury.

(j) A member of the Arizona national guard, Arizona state guard or unorganized
militia shall be deemed a state employee and entitled to coverage under the Arizona
workers' compensation law at all times while the member is receiving the payment of the
member's military salary from the state of Arizona under competent military orders or
upon order of the governor. Compensation benefits shall be based upon the monthly
military pay rate to which the member is entitled at the time of injury, but not less
than a salary of four hundred dollars per month, nor more than the maximum provided by
the workers' compensation law. No Arizona compensation benefits shall inure to a member
compensable under federal law.

(k) Certified ambulance drivers and attendants who serve without pay or without
full pay on a part-time basis are deemed to be employees and entitled to the benefits
provided by this chapter and the basis for computing wages for premium payments and
compensation benefits for certified ambulance personnel shall be four hundred dollars per
month.

(l) Volunteer workers of a licensed health care institution may be deemed to be
employees and entitled to the benefits provided by this chapter upon written acceptance
by the insurance carrier of an application by the health care institution for coverage of
such volunteers. The basis for computing wages for premium payments and compensation
benefits for volunteers shall be four hundred dollars per month.

(m) Personnel who participate in a search or rescue operation or a search or rescue
training operation that carries a mission identifier assigned by the division of
emergency management as provided in section 35-192.01 and who serve without compensation
as volunteer state employees. The basis for computation of wages for premium purposes
and compensation benefits is the total volunteer man-hours recorded by the division of
emergency management in a given quarter multiplied by the amount determined by the
appropriate risk management formula.

(n) Personnel who participate in emergency management training, exercises or drills
that are duly enrolled or registered with the division of emergency management or any
political subdivision as provided in section 26-314, subsection C and who serve without
compensation as volunteer state employees. The basis for computation of wages for premium
purposes and compensation benefits is the total volunteer man-hours recorded by the
division of emergency management or political subdivision during a given training
session, exercise or drill multiplied by the amount determined by the appropriate risk
management formula.

(o) Regular members of the Arizona game and fish department reserve, organized
pursuant to section 17-214. The basis for computing wages for premium payments and
compensation benefits for a member of the reserve is the salary received by game rangers
and wildlife managers of the Arizona game and fish department for their first month of
regular duty.

(p) Every person employed pursuant to a professional employer agreement.

(q) Members of the department of administration capitol police reserve, organized
pursuant to section 41-794, are deemed to be employees. For the purposes of this chapter,
the basis for computing wages for premium payments and compensation benefits for a member
of the department of administration capitol police reserve who is a peace officer shall
be the salary received by officers of the department of administration for their first
month of regular duty as an officer.

7. "General order" means an order applied generally throughout the state to all
persons under jurisdiction of the commission.

8. "Heart-related or perivascular injury, illness or death" means myocardial
infarction, coronary thrombosis or any other similar sudden, violent or acute process
involving the heart or perivascular system, or any death resulting therefrom, and any
weakness, disease or other condition of the heart or perivascular system, or any death
resulting therefrom.

9. "Insurance carrier" means the state compensation fund and every insurance
carrier duly authorized by the director of insurance to write workers' compensation or
occupational disease compensation insurance in the state of Arizona.

10. "Interested party" means the employer, the employee, or if the employee is
deceased, the employee's estate, the surviving spouse or dependents, the commission, the
insurance carrier or their representative.

11. "Mental injury, illness or condition" means any mental, emotional, psychotic or
neurotic injury, illness or condition.

12. "Order" means and includes any rule, direction, requirement, standard,
determination or decision other than an award or a directive by the commission or an
administrative law judge relative to any entitlement to compensation benefits, or to the
amount thereof, and any procedural ruling relative to the processing or adjudicating of a
compensation matter.

13. "Personal injury by accident arising out of and in the course of employment"
means any of the following:

(a) Personal injury by accident arising out of and in the course of employment.

(b) An injury caused by the wilful act of a third person directed against an
employee because of the employee's employment, but does not include a disease unless
resulting from the injury.

(c) An occupational disease which is due to causes and conditions characteristic of
and peculiar to a particular trade, occupation, process or employment, and not the
ordinary diseases to which the general public is exposed, and subject to section
23-901.01.

14. "Professional employer agreement" means a written contract between a client and
a professional employer organization:

(a) In which the professional employer organization expressly agrees to co-employ
all or a majority of the employees providing services for the client. In determining
whether the professional employer organization employs all or a majority of the employees
of a client, any person employed pursuant to the terms of the professional employer
agreement after the initial placement of client employees on the payroll of the
professional employer organization shall be included.

(b) That is intended to be ongoing rather than temporary in nature.

(c) In which employer responsibilities for worksite employees, including hiring,
firing and disciplining, are expressly allocated between the professional employer
organization and the client in the agreement.

15. "Professional employer organization" means any person engaged in the business of
providing professional employer services. Professional employer organization does not
include a temporary help firm or an employment agency.

16. "Professional employer services" means the service of entering into
co-employment relationships under this chapter to which all or a majority of the
employees providing services to a client or to a division or work unit of a client are
covered employees.

17. "Special order" means an order other than a general order.

18. "State compensation fund" includes the state compensation fund, accident benefit
fund and occupational disease compensation fund in existence on January 2, 1969 and shall
thereafter include all funds under the jurisdiction of the board of directors of the
state compensation fund which have been derived from the assessment of premiums,
interest, penalties and investment earnings for the payment of all workers' compensation
and occupational disease compensation benefits.

19. "Weakness, disease or other condition of the heart or perivascular system" means
arteriosclerotic heart disease, cerebral vascular disease, peripheral vascular disease,
cardiovascular disease, angina pectoris, congestive heart trouble, coronary
insufficiency, ischemia and all other similar weaknesses, diseases and conditions, and
also previous episodes or instances of myocardial infarction, coronary thrombosis or any
similar sudden, violent or acute process involving the heart or perivascular system.

20. "Workers' compensation" means workmen's compensation as used in article XVIII,
section 8, Constitution of Arizona.