ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

House: COM DPA 10-0-0-0

HB 2209: industrial commission of Arizona; continuation

Sponsor: Representative Livingston, LD 28

House Engrossed

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteOverview

Adds certain responsibilities to the Industrial Commission of Arizona (ICA) relating to violations and inspections. Continues the ICA for three years.

History

Industrial Commission of Arizona

Established in 1925, the ICA is a regulatory agency responsible for labor-related issues regarding occupational safety and health, youth employment laws, resolution of wage related disputes, minimum wage, vocational rehabilitation, and workers’ compensation coverage. The ICA is composed of five members who are appointed by the Governor and confirmed by the Senate. The Director who oversees the daily operations and works with various agency divisions is also appointed by the Governor and confirmed by the Senate. The ICA is a self-supporting agency whose operations and other statutorily mandated functions are funded through an annual assessment on workers' compensation premiums (Title 23, A.R.S.)

Sunset Review Process

The sunset review process provides a system for the Legislature to evaluate the need to continue the existence of state agencies which are reviewed by a legislative committee of reference (COR). The COR is required to hold a public hearing, receive testimony from agency officials and the public and consider the agency's responses to the statutorily-outlined sunset factors in determining whether to recommend continuing, consolidating or terminating the agency (A.R.S 41-2954).

The House Commerce COR held a public meeting on January 16, 2024, and recommended that the Legislature continue the ICA for three years. The ICA terminates on July 1, 2024, unless continued by the Legislature (A.R.S. § 41-3024.20).

Provisions

1.   Includes a requirement for the determinations, penalties and fines for labor violations to be considered, authorized and determined by an affirmative vote of two-thirds of commissioners present and voting. (Sec. 1)

2.   Instructs the commissioners to consider whether a violation continues after the employer's course of conduct has ceased. (Sec. 1)

3.   Prohibits the Director from allowing any individual to accompany an inspector when conducting inspections for the ICA unless the individual meets specified criteria. (Sec. 2)

4.   Requires the Joint Legislative Audit Committee to review any Arizona Division of Occupational Safety and Health state plan proposal or proposed adoption by the ICA prior to the proposal or proposed adoption is submtited to the U.S. Occupational Safety and Health Administration. (Sec. 2)

5.   Continues, retroactive to July 1, 2024, the ICA for three years until July 1, 2027. (Sec. 3, 4, 7)

6.   Repeals the ICA governing statutes on January 1, 2028. (Sec. 4)

7.   Includes a purpose statement. (Sec. 5)

8.   Adds a Legislative Intent clause. (Sec. 6)

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12.                    HB 2209

13.  Initials PB           Page 0 House Engrossed

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