AZ SB1407

Expands definition of "employee" in workers' compensation law to include working members of limited liability companies owning less than 50 percent membership interest (automatic coverage) and those owning 50 percent or more (optional coverage with insurance carrier approval).

Establishes expedited hearing process for public safety employees regarding medical benefits or physician changes, requiring commission to schedule hearing within 15 days and administrative law judge to issue determination within 5 days after hearing completion.

Authorizes state, political subdivisions, and self-insurance pools of public entities to direct medical care for injured workers beginning December 1, 2017, requiring maintenance of provider lists with occupational health physicians and allowing workers to change physicians after initial visit.

Removes prohibition on self-insurance pools directing employees to specific medical providers after initial injury treatment and modifies claim filing procedures regarding employer notification of insurance carriers and claim status deadlines.

Requires Industrial Commission to establish panel with representatives from peace officers, firefighters, cities, counties, and school districts to develop guidelines for implementing directed medical care system for public sector entities.