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HB2829 - 482R - H Ver

 

 

 

House Engrossed

 

 

 

 

State of Arizona

House of Representatives

Forty-eighth Legislature

Second Regular Session

2008

 

 

HOUSE BILL 2829

 

 

 

AN ACT

 

Amending sections 23-1044 and 23-1047, Arizona Revised Statutes; relating to workers' compensation.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 



Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 23-1044, Arizona Revised Statutes, is amended to read:

START_STATUTE23-1044.  Compensation for partial disability; computation; definition

A.  For temporary partial disability there shall be paid during the period thereof sixty‑six and two‑thirds per cent of the difference between the wages earned before the injury and the wages which the injured person is able to earn thereafter.  Unemployment benefits received during the period of temporary partial disability and fifty per cent of retirement and pension benefits received from the insured or self‑insured employer during the period of temporary partial disability shall be considered wages able to be earned. If employment is available to the employee through the current employer but for the misconduct of the employee, the wages that could have been earned from that employment shall be considered as wages earned by the employee.

B.  Disability shall be deemed permanent partial disability if caused by any of the following specified injuries, and compensation of fifty‑five per cent of the average monthly wage of the injured employee, in addition to the compensation for temporary total disability, shall be paid for the period given in the following schedule:

1.  For the loss of a thumb, fifteen months.

2.  For the loss of a first finger, commonly called the index finger, nine months.

3.  For the loss of a second finger, seven months.

4.  For the loss of a third finger, five months.

5.  For the loss of the fourth finger, commonly called the little finger, four months.

6.  The loss of a distal or second phalange of the thumb or the distal or third phalange of the first, second, third or fourth finger, shall be considered equal to the loss of one‑half of the thumb or finger, and compensation shall be one‑half of the amount specified for the loss of the entire thumb or finger.

7.  The loss of more than one phalange of the thumb or finger shall be considered as the loss of the entire finger or thumb, but in no event shall the amount received for more than one finger exceed the amount provided for the loss of a hand.

8.  For the loss of a great toe, seven months.

9.  For the loss of a toe other than the great toe, two and one‑half months.

10.  The loss of the first phalange of any toe shall be considered equal to the loss of one‑half of the toe and compensation shall be one‑half of the amount for one toe.

11.  The loss of more than one phalange shall be considered as the loss of the entire toe.

12.  For the loss of a major hand, fifty months, or of a minor hand, forty months.

13.  For the loss of a major arm, sixty months, or of a minor arm, fifty months.

14.  For the loss of a foot, forty months.

15.  For the loss of a leg, fifty months.

16.  For the loss of an eye by enucleation, thirty months.

17.  For the permanent and complete loss of sight in one eye without enucleation, twenty‑five months.

18.  For permanent and complete loss of hearing in one ear, twenty months.

19.  For permanent and complete loss of hearing in both ears, sixty months.

20.  The permanent and complete loss of the use of a finger, toe, arm, hand, foot or leg may be deemed the same as the loss of any such member by separation.

21.  For the partial loss of use of a finger, toe, arm, hand, foot or leg, or partial loss of sight or hearing, fifty per cent of the average monthly wage during that proportion of the number of months in the foregoing schedule provided for the complete loss of use of such member, or complete loss of sight or hearing, which the partial loss of use thereof bears to the total loss of use of such member or total loss of sight or hearing.  In this paragraph, "loss of use" means a loss of physical function of the affected member, sight or hearing.  The effect on an employee's ability to return to the employee's occupation at the time of the injury shall not be considered in establishing the percentage of loss under this section, except that if the employee is unable to return to the work the employee was performing at the time the employee was injured due to the total or partial loss of use, compensation pursuant to this section shall be calculated based on seventy‑five per cent of the average monthly wage.

22.  For permanent disfigurement about the head or face, which shall include injury to or loss of teeth, the commission may, in accordance with the provisions of section 23‑1047, allow such sum for compensation thereof as it deems just, in accordance with the proof submitted, for a period of not to exceed eighteen months.

C.  In cases not enumerated in subsection B of this section, if the injury causes permanent partial disability for work, the employee shall receive during such disability compensation equal to fifty‑five per cent of the difference between the employee's average monthly wages before the accident and the amount which represents the employee's reduced monthly earning capacity resulting from the disability, but the payment shall not continue after the disability ends, or the death of the injured employee, and in case the partial disability begins after a period of total disability, the period of total disability shall be deducted from the total period of compensation.

D.  If the employee is unable to return to or continue working in any employment after the injury due to the employee's misconduct, the commission may consider the wages the employee could have earned from that employment as representative of the employee's earning capacity.

D.  e.  In determining the amount which represents the reduced monthly earning capacity for the purposes of subsection C of this section, consideration shall be given, among other things, to any previous disability, the occupational history of the injured employee, the nature and extent of the physical disability, the type of work the injured employee is able to perform subsequent to the injury, any wages received for work performed subsequent to the injury and the age of the employee at the time of injury.

E.  f.  In case there is a previous disability, as the loss of one eye, one hand, one foot or otherwise, the percentage of disability for a subsequent injury shall be determined by computing the percentage of the entire disability and deducting therefrom the percentage of the previous disability as it existed at the time of the subsequent injury.

F.  g.  For the purposes of subsection C of this section, the commission shall, in accordance with the provisions of section 23‑1047 when the physical condition of the injured employee becomes stationary, shall determine the amount which represents the reduced monthly earning capacity and upon such determination make an award of compensation which shall be subject to change in any of the following events:

1.  Upon a showing of a change in the physical condition of the employee subsequent to such findings and award arising out of the injury resulting in the reduction or increase of the employee's earning capacity.

2.  Upon a showing of a reduction in the earning capacity of the employee arising out of such injury where there is no change in the employee's physical condition, subsequent to the findings and award.

3.  Upon a showing that the employee's earning capacity has increased subsequent to such findings and award.

G.  h.  The commission may adopt a schedule for rating loss of earning capacity and reasonable and proper rules to carry out the provisions of this section.  In all cases involving this section, except for cases under subsection B of this section, or in cases involving a request pursuant to section 23‑1061, subsection J for disability compensation, if any issue is raised regarding whether the injured employee has suffered a loss of earning capacity because of an inability to obtain or retain suitable work, the following apply:

1.  The employer or carrier may present evidence showing that the inability to obtain suitable work is due, in whole or in part, to economic or business conditions, or other factors unrelated to the industrial injury.  The injured employee may present evidence showing that the inability to obtain suitable work is due, in whole or in part, to the industrial injury or limitations resulting from the injury.  The administrative law judge shall consider all such evidence in determining whether and to what extent the injured employee has sustained any loss of earning capacity.

2.  In cases involving loss of employment, the employer or carrier may present evidence showing that the injured employee was terminated from employment or has not obtained suitable work, or both, due, in whole or in part, to economic or business conditions, or other factors unrelated to the injury.  The injured employee may present evidence showing that such termination or inability to obtain suitable work is due, in whole or in part, to the industrial injury or limitations resulting from the injury.  The administrative law judge shall consider all such evidence in determining whether and to what extent the injured employee has sustained any loss or additional loss of earning capacity.

H.  i.  Any single injury or disability that is listed in subsection B of this section and that is not converted into an injury or disability compensated under subsection C of this section by operation of this section shall be treated as scheduled under subsection B of this section regardless of its actual effect on the injured employee's earning capacity.

J.  For the purposes of this section, "misconduct" means any of the following:

1.  Absence from work without either notice to the employer or good cause for failing to give notice, repeated absence from work without good cause when warnings regarding repeated absence have been received from the employer, frequent absences from work without good cause, failure to return to work following an authorized leave, vacation, sick leave or other leave of absence when the failure is without permission from the employer or repeated failure without good cause to exercise due care for punctuality or attendance in regard to the scheduled hours of work established by the employer.

2.  Impairment, whether from the use of intoxicating liquor or the use of illegal drugs, on the employer's premises or when reporting to work.

3.  Failure to pass or the refusal to take a drug test or alcohol impairment test administered under chapter 2, article 14 of this title.

4.  Assault on another employee or repeated fighting, refusal to accept an assignment to work at certain times or to perform certain duties without good cause, refusal to follow the employer's reasonable and proper instructions or intentional destruction of the employer's property.

5.  Dishonesty, material falsification of employment applications or other written documents relating to obtaining or retaining employment, falsification of time records or work records, theft or conversion of property of the employer.

6.  Admission of or conviction for any felony or crime that is related to the employer's business or to the employment or that may have a substantial adverse effect on the employer's interest, public relations or trust unless the employer had actual knowledge of the admission or conviction at the commencement of the employment.

7.  Violating without good cause any safety rule or any federal or state occupational safety and health law, regulation or directive that is reasonably imposed and communicated by the employer pursuant to Chapter 2, article 10 of this title. END_STATUTE

Sec. 2.  Section 23-1047, Arizona Revised Statutes, is amended to read:

START_STATUTE23-1047.  Procedure for determining compensation for partial disability and permanent total disability in cases not enumerated; procedure for determining nonscheduled dependency and duration of compensation to partial dependents in death cases

A.  In cases of permanent partial disability under section 23‑1044, subsection B, paragraph 22 and subsections C and G, when the physical condition of the injured employee becomes stationary, or in the case of permanent total disability not enumerated in section 23‑1045, and under section 23‑1045, subsection D, or in death cases under section 23‑1046, subsection B, the employer or insurance carrier within thirty days shall notify the commission and request that the claim be examined and further compensation, if any, be determined.  A copy of all medical reports necessary to make such determination also shall be furnished to the commission.  The employer or insurance carrier may commence payment of a permanent disability award without waiting for a determination under subsection B of this section.

B.  Within thirty days after the commission receives the medical reports, the claims shall be examined and further compensation, including a permanent disability award, if any, determined under the commission's supervision.  If necessary, the commission may require additional medical or other information with respect to the claim and may postpone the determination for not more than sixty additional days.  Any determination under this subsection may include necessary adjustments in any compensation paid or payable.

C.  The commission shall mail a copy of the determination to all interested parties.  Any such party may request a hearing under section 23‑941 on the determination made under subsection B of this section within ninety days after copies of the determination are mailed.

D.  Any person receiving permanent compensation benefits shall report annually on the anniversary date of the award to the self‑insured employer or insurance carrier all of the person's earnings for the prior twelve‑month period.  In the event the person fails to make such report the self‑insured employer or insurance carrier shall notify the person that such report has not been received and that payment of further benefits will be suspended unless such report of earnings is filed within thirty days.  After thirty days have elapsed from the date of such notice, the self‑insured employer or insurance carrier may issue a notice to the person suspending payment of further benefits and no further payments need be made until such report of earnings is filed.

E.  Any person receiving permanent compensation benefits from the special fund established by section 23‑1065 shall report annually on the anniversary date of the award to the industrial commission all of the person's earnings for the prior twelve‑month period.  In the event the person fails to make such report the industrial commission shall notify the person that such report has not been received and that payment of further benefits will be suspended unless such report of earnings is filed within thirty days. After thirty days have elapsed from the date of such notice, the industrial commission may issue a notice to the person suspending payment of further benefits and no further payments need be made until such report of earnings is filed. END_STATUTE