Arizona: Lawmakers endorse privatization of state comp provider
The House Committee on Commerce unanimously approved S.B. 1045, which would require State Compensation Fund of Arizona to become a mutual insurance company owned by its policyholders. Sponsored by Senate President Bob Burns, R-Peoria, the bill stipulates the successor mutual insurer corporation would not be an agency or public entity of the state and could not use the term "state compensation fund" or "SCF" in its new name or logo after June 30, 2012.
Proponents of the legislation said it would help ensure that lawmakers could not dip into the insurer's surplus funds to balance any future budget crisis. Officials for SCF Arizona support the bill and said they believe it will be a positive step for the insurer and its customers.
The legislation now heads to the full House for consideration.
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May 27, 2010
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