Title
Municipal Firefighter Cancer Reimbursement Fund (Ordinance S-47944)
Description
Request to authorize the City Manager, or his designee, to authorize payment to the Industrial Commission of Arizona (ICA) to fund the Municipal Firefighter Cancer Reimbursement Fund (Fund) and contribute to associated operating costs in compliance with State of Arizona Senate Bill 1827 in the amount of $4,353,843.54. Further request to authorize the City Controller to disburse all funds related to this item.
Report
Summary
Arizona Revised Statutes section 23-1701 et seq., Senate Bill 1827 (Bill), was approved by the Governor on June 30, 2021. The Bill requires Arizona incorporated cities and towns, such as the City of Phoenix, to contribute to the Fund. The Fund, administered by the ICA, will reimburse municipal cities and towns on a prorated basis for paying workers’ compensation and benefits to firefighters and fire investigators who are diagnosed with a disease, infirmity or impairment caused by outlined cancers presumed to arise out of employment (occupational cancer). The City will be assessed a fee each fiscal year which is payable by Sept. 30. The City’s fee is a prorated amount of the $15,000,000 annual cap to the Fund and is based on the City’s population in proportion to all Arizona incorporated cities and towns.
This legislation follows the repeal of A.R.S. §42-5041, which required the assessment of costs for municipal administration of transaction privilege taxes to local government, councils, and authorities.
Financial Impact
The annual cost is $4,353,843.54 and is based on a current population share of 29.03 percent. If the population share changes, the contribution will change. Funds are available in the Human Resources Department's budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.