The Arizona Court of Appeals recently ruled that Arizona lawmakers are free to raid cash for injured workers from the State Compensation Fund in order to balance the state budget.
Reversing a former court ruling, judges ruled that it is the Legislature that authorized the collection of money from employers, therefore law makers are free to take that money and use it elsewhere.
Judge Maurice Portley, who wrote for the unanimous court, recognized that the money in the account is designated to pay medical bills and worker compensation for employees injured on the job. However, Portlet says, throughout the court proceedings attorneys for the fund as well as a host of employer groups were unable to present evidence that taking $4.7 million from the fund would prevent it from meeting its obligations.
Arizona law states that all companies must provide health care coverage for employees injured or killed on the job. Some firms purchase private insurance while others self-insure.
Lawmakers, hoping to stabilize the 2009 state budget, voted to take money from different social accounts including the Central Arizona Project, tobacco-education funds, and The Industrial Commission which monitors workers? compensation laws in Arizona. The legislation was signed by Governor Jan Breweker which authorized the fund transfers.
Two years ago, Maricopa Superior Court Judge Larry Grant ruled that the legislators acted outside of the law. That decision was overturned.
Farrel Quinlan of the National Federation of Independent Business is upset about this outcome.
?The court agreed with NFIB and other plaintiffs that the special fund was never intended to be an optional piggy bank ready to be broken open when the state can?t balance its budget,? he said.
Source: http://www.azdisabilityattorney.com/2012/12/az-legislature-allowed-to-raid-workers-comp-fund/
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