Ariz. Judge Rules Against State on Fund Raid

June 23, 2010

A new court ruling says the Arizona Legislature’s raid of nearly $4.7 million from a special fund for injured workers was illegal.

Maricopa County Superior Court Judge Larry Grant says the money to be transferred into the state general fund was private money held in trust by the state, not public property.

The ruling was filed Monday in a lawsuit filed by the Industrial Commission, the agency that oversees the state’s worker’s compensation program.

Several business groups supported the lawsuit that involved money paid by insurance companies and self-insured employers.

Intended uses included paying for vocational rehabilitation of injured workers and paying claims against insolvent insurers.

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