HB 2120 — injury reports; medical treatment

129 STAT.

599) for each day during which such failure or violation continues after the abatement date.

E.

Any employer who THAT knowingly violates the requirements of section 23-403 or any standard or regulation adopted pursuant to section 23-410 or 23-414 or any provision of this article and that violation causes death to an employee is guilty of a class 6 felony, except that if the conviction is for a second or subsequent violation the employer is guilty of a class 5 felony.

F.

Any person who knowingly gives advance notice of any inspection to be conducted under this article without authority from the director is guilty of a class 2 misdemeanor.

G.

Whoever A PERSON WHO knowingly makes any false statement, representation or certification in any application, record, report, plan or other document filed or required to be maintained pursuant to this article is guilty of a class 2 misdemeanor.

H.

Any employer who THAT violates any of the posting requirements of this article shall be assessed a civil penalty of up to seven thousand dollars for each violation OF NOT MORE THAN THE MAXIMUM CIVIL PENALTY FOR POSTING VIOLATIONS ADOPTED BY THE UNITED STATES OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION PURSUANT TO THE FEDERAL CIVIL PENALTIES INFLATION ADJUSTMENT ACT IMPROVEMENTS ACT OF 2015 (P.L.

114-74;

129 STAT.

599).

I.

The commission shall have authority to assess all civil penalties provided in this section, giving due consideration to the appropriateness of the penalty with respect to the gravity of the violation, the number of employees employed by the employer, the good faith of the employer and the history of previous violations under this article.

J.

Civil penalties owed under this article shall be paid to the commission for deposit in the state general fund.

After an order or decision on a civil penalty becomes final pursuant to section 23-417, 23-421 or 23-423, the civil penalty shall act as a judgment against the employer.

The commission shall file the civil penalty in the office of the clerk of the superior court in any county in this state and the clerk - 2 - H.B.

2120 shall enter the civil penalty in the civil order book and judgment docket.

When the civil penalty is filed and entered it is a lien for eight years from AFTER the date of the final order or decision on the property of the employer located in the county.

Execution may issue on the civil penalty within eight years in the same manner and with like effect as a judgment of the superior court.

The civil penalty judgment shall accrue interest pursuant to section 44-1201.

The commission may recover reasonable attorney fees incurred pursuant to this section.

Sec.

3.

notification;

public meeting;

C.- 3 - H.B.

2120 C.

If the commission considers the adoption of fee schedule provisions that involve specific prices, values or reimbursements for prescription drugs, the commission shall base the adoption on studies or practices that are validated and accepted in the industry, including the applicability of formulas that use average wholesale price, plus a -dispensing 1fee, -and H.B.that have been made publicly available for at least one hundred eighty days before any hearing conducted by the commission.

2120Before dispensingthe fee,commission andtakes thatfinal haveaction beenon madethe publiclyschedule availableof forfees atpursuant leastto onethis hundredsubsection eightyand dayssubsection beforeB anyof hearingthis conductedsection, byexcept during a public health emergency, the commission.commission shall:

1.

Prominently post on its publicly accessible website the proposed schedule of fees at least thirty days before conducting a public hearing on that proposed schedule of fees.

2.

Hold at least one meeting that all interested parties may jointly attend and interactively participate in after posting the proposed schedule of fees but before conducting the hearing on the proposed schedule of fees.

3.

At least seven business days in advance, prominently post on its publicly accessible website the final proposed schedule of fees to be acted on for adoption.

If the- accident4 is- notH.B. reported by the employee or the employee's physician forthwith, as required, or if the injured employee or those in charge of the employee refuse to allow the employer's physician to make the examination, and the injured employee is a party to the refusal, no compensation shall be paid for the injury claimed to have resulted from the accident.

2120 the accident is not reported by the employee or the employee's physician forthwith, as required, or if the injured employee or those in charge of the employee refuse to allow the employer's physician to make the examination, and the injured employee is a party to the refusal, no compensation shall be paid for the injury claimed to have resulted from the accident.

-J. 2 - H.B.

2120 J.

A healthcarehealth HEALTHcare CARE provider or pharmacy from entering into a separate contract or network that governs fees, in which case reimbursement shall be made according to the applicable contracted charge or negotiated rate.

An employer from directing medical, surgical or hospital care pursuant to the provisions of section 23-1070.

-Sec. 3 -

4.

Section 23-963.01, Arizona Revised Statutes, is amended to read:

23-963.01.

Policies with deductible coverage;

medical-only loss A.

Notwithstanding the provisions of section 23-963, an insurance carrier authorized to transact workers' compensation insurance in this state may offer deductible coverage to employers.

Deductible coverage shall be effected by attaching a benefits deductible endorsement to the policy.

The endorsement shall specify whether loss adjustment expenses are to be treated as advancements within the deductible to be reimbursed by the employer.

The policyholder exercising the deductible option shall choose only one deductible amount.

Premium reductions for deductibles shall be determined before application of APPLYING any experience modification, premium surcharge or premium discount.

If an insurance carrier offers deductible coverage to an employer, the employer shall submit a certified copy of the employer's most recent financial statement to the insurance carrier to justify the deductible amount the employer chooses.

The insurance carrier shall retain a copy of the financial statement for three years.

- 5 - H.B.

2120 B.

Any compensable claim for benefits shall be paid by the carrier.

The employer shall reimburse the carrier for any deductible amounts paid by the carrier.

The employer is liable for reimbursement up to the limit of the chosen deductible.

The payment or nonpayment of deductible amounts by the insured employer to the carrier shall be treated under the policy in the same manner as payment or nonpayment of premiums.

C.

The nonpayment of deductible amounts by the insured employer to the carrier under subsection B of this section shall not relieve the insurance carrier from payment of PAYING compensation for injuries or death sustained by an employee during the period of time the agreement, contract or policy was in effect.

No agreements, contracts or policies providing deductible amounts for workers' compensation coverage shall be terminated retroactively for nonpayment of deductible amounts.

D.

Losses subject to the deductible shall be reported and recorded as losses for purposes of calculating rates for a policyholder on the same basis as losses under policies providing first dollar coverage.

E.

NOTWITHSTANDING ANY OTHER LAW, FOR ANY CLAIM INVOLVING MEDICAL-ONLY LOSS, ANY EXPERIENCE RATING ADJUSTMENT AS DETERMINED BY A NATIONAL NONPROFIT INSURANCE RATING ORGANIZATION SHALL BE APPLIED TO REDUCE THE IMPACT OF THE LOSS IN THE EMPLOYER'S EXPERIENCE MODIFICATION CALCULATION.

FOR THE PURPOSES OF THIS SUBSECTION, "MEDICAL-ONLY LOSS" MEANS LOSS THAT HAS NO INDEMNITY VALUE REFLECTING LOST WAGES.

APPROVED BY THE GOVERNOR JULY 6, 2022.

FILED IN THE OFFICE OF THE SECRETARY OF STATE JULY 6, 2022.

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