Assigned to COM FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1515
municipal firefighters; cancer fund; distributions
Purpose
Modifies requirements relating to the Municipal Firefighter Cancer Reimbursement Fund
(Fund) and the annual distribution of monies, the annual financial status report and withholdings
for delinquent assessments.
Background
In 2021, the Legislature established the Fund administered by the Industrial Commission
of Arizona (ICA) (Laws 2021, Ch. 411). The Fund consists of: 1) monies collected by the ICA
from cities and towns that receive state shared revenues; and 2) monies received from any other
source, including federal monies, investment income and private grants, gifts, contributions and
devises. The total amount of fees for all cities and towns may not exceed $15,000,000 in each
fiscal year. The share of fees in each fiscal year to each city and town must be based on the
population of the city or town as determined by the most recent population estimates of the U.S.
Census Bureau as of July 1 in proportion to the total population of all incorporated cities and towns.
The ICA must assess the fees no later than July 31 of each year, and the fees are payable
immediately on assessment. If a city or town fails to pay the assessment in full by September 30,
the ICA must notify the State Treasurer who must withhold the delinquent amount from the
distribution of state shared revenues to the appropriate city or town. The State Treasurer must
continue to withhold monies until the city or town has paid the entire amount of the assessment
(A.R.S. § 23-1703).
Monies in the Fund must be used to reimburse municipal payors for the compensation and
benefits paid by the municipal payors to municipal firefighters and fire investigators for:
1) compensation for temporary partial disability, permanent partial disability and lost earning
capacity; 2) compensation for temporary total disability and permanent total disability; 3) medical,
surgical and hospital benefits; and 4) death benefits. The ICA must annually distribute the monies
in the Fund on a prorated basis based on the amount of the individual compensation and benefits
paid by a municipal payor for compensation and benefits to a municipal firefighter or fire
investigator for disease, infirmity or impairment in proportion to the statewide aggregate of all
compensation and benefits paid for the fiscal year (A.R.S. § 23-1702).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Specifies that the ICA must annually distribute monies in the Fund by the end of the fiscal
year. FACT SHEET
S.B. 1515
Page 2
2. Prohibits the annual distributions of Fund monies from exceeding the statewide aggregate of
all compensation and benefits paid by municipal payors to municipal firefighters and fire
investigators for the relevant fiscal year.
3. Requires the annual report on the financial status of the Fund to include the number of
reimbursement claims, rather than the number of reimbursement claims approved.
4. Removes the requirement for the State Treasurer to continue to withhold from state shared
revenues any delinquent assessment amount until the city or town has paid the entire amount
of the assessment.
5. Makes technical changes.
6. Becomes effective on the general effective date.
Prepared by Senate Research
February 14, 2022
JT/sr