23-981.01 - Arizona Statutes

23-981.01. Board of directors of state compensation fund; manager of state compensation fund; appointment and powers A. The state compensation fund shall be under the direct supervision of a board of directors which consists of five members appointed by the governor for staggered terms of five years. Each member shall be a policyholder or an employee of a policyholder of the state compensation fund. Appointment to fill a vacancy caused other than by expiration of a term is for the unexpired portion of the term. The term of office of the directors shall begin on January 8 of the year of appointment. Each member of the board is entitled to receive as compensation one hundred dollars per day while in actual attendance at meetings of the board and shall be reimbursed for mileage and subsistence as allowed by law in traveling from his regular place of residence to meetings of the board, or to the place where he discharges his duties, with the compensation and expenses paid out of the state compensation fund. The governor shall annually appoint the chairman from among the members of the board. The board may adopt rules, not inconsistent with law, as it deems proper for the conduct of its business and, by resolution, may declare the payment of dividends to policyholders from the surplus of the state compensation fund. The board may amend or change the rules and may cause them to be published and distributed. B. The board of directors of the state compensation fund shall appoint a manager of the state compensation fund, who has charge of the daily operation of the state compensation fund. The manager shall have proven successful experience as an insurance executive at the general management level. The manager is entitled to receive compensation as determined by the board and may be removed by the board. The manager has such powers as are necessary to carry out the functions of the state compensation fund, including: 1. The formulation and administration of a system of personnel administration and employee compensation that utilizes principles of personnel management and includes employee benefits and grievance procedures to include adequate safeguards for employee representation and hearing and appeal rights equal to or greater than those provided by the state personnel board. 2. The formulation and administration of an investment policy and the supervision of the investment activities of the state compensation fund. The manager may invest and reinvest the surplus or reserves of the state compensation fund as authorized under title 20, chapter 3, article 2. C. The state compensation fund is exempt from the provisions of title 41, chapter 1, article 5.