23-981. State compensation fund; purpose;
composition; administration; powers and duties
A. There is established the state compensation fund which shall be maintained for
the purpose of insuring employers against liability for workers' compensation,
occupational disease compensation and medical, surgical and hospital benefits pursuant to
the provisions of chapter 5 of this title and this chapter, and pursuant to the federal
longshoremen's and harbor workers' compensation act, the federal coal mine health and
safety act of 1969, as amended, and other workers' compensation or occupational disease
liability programs imposed upon Arizona employers by the federal government. The fund
may also indemnify an Arizona employer against his liability for workers' compensation
and occupational disease benefits under the laws of any other state for Arizona employees
temporarily working outside of this state if the fund insures the employer's other
employees who work within this state.
B. The assets of the state compensation fund consist of all premiums paid into the
fund, all real and personal property, securities and all income and interest earned upon
monies belonging to the fund.
C. A manager shall administer the state compensation fund, subject to the authority
of the board of directors, without liability of the state. The fund shall be applied to
insurance and to payment of compensation and expenses as provided in this chapter. The
manager has full authority over the fund and may do all things necessary or convenient in
the administration of the fund, or in connection with the compensation business to be
carried on by the manager under this chapter, may adopt rules for the collection,
maintenance and disbursement of the fund and may perform all other functions which the
laws of this state specifically authorize or which are necessary or appropriate to carry
out the functions so authorized.
D. The state compensation fund has the powers and privileges of a corporation and
in its name may sue and be sued. The manager, in the administration of the fund, may
lease or acquire real property and acquire or construct buildings or other improvements
on the property as are necessary to house, contain and maintain offices and space for its
departmental and operational facilities. Title to the real estate, buildings and
improvements vests in the state compensation fund. The manager may lease or rent space
not needed for the fund's immediate requirements. Any real and personal property owned
by the state compensation fund is subject to ad valorem taxes.
E. The operating and capital outlay budget of the state compensation fund for the
two ensuing calendar years, with each year separately delineated, shall be submitted for
review and approval on or before October 1 of each even-numbered year by the joint
legislative budget committee.
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