Suit Targets Arizona Worker Injury Fund Grab

April 13, 2009

An Arizona commission that oversees workers’ compensation is suing to keep the state from taking $4.6 million paid into a special fund by insurance companies and self-insured employers.

A budget-balancing law approved by the Legislature and Gov. Jan Brewer in January to close a $1.6 billion deficit included numerous transfers from special-purpose funds.

Those transfers included $4.6 million that the Industrial Commission contends is private money that does not belong to the state.

A lawsuit filed by the commission with the Arizona Supreme Court also contends that the transfer is unconstitutional because it is a prohibited government “taking” of property without compensation.

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