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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
industrial commission of Arizona; continuation
Purpose
Continues the Industrial Commission of Arizona (ICA) for three years and prescribes additional responsibilities for the ICA and its divisions related to inspections, violations and State Plan proposals.
Background
The ICA oversees various functions related to labor and
employment in Arizona, including occupational safety and health, youth
employment laws, wage dispute resolutions, minimum wage, vocational
rehabilitation and whistleblower discrimination complaints. Additionally, the
ICA implements the constitutional requirement to establish a workers’
compensation program. The policy-setting body for the ICA is a five-member commission.
Commissioners are appointed by the Governor and confirmed by the Senate to staggered
five-year terms. The ICA is a
self-supporting agency whose operations and other statutorily mandated
functions are funded through an annual assessment on workers' compensation
premiums (Ariz.
Const. art. 18 § 8; A.R.S.
Title 23).
A State Plan is a U.S. Occupational Safety and Health Administration (OSHA)-approved workplace safety and health program operated by an individual state or U.S. territory. State Plans are monitored by OSHA and must be at least as effective as OSHA in protecting workers and in preventing work-related injuries, illnesses and deaths. Arizona's State Plan, approved in 1985, is operated by the Arizona Division of Occupational Safety and Health (ADOSH), a division of the ICA, and covers most private sector workers and all state and local government workers (OSHA).
The Senate Government
Committee of Reference (COR) held a public meeting on January 17, 2024, to
review and evaluate the ICA's response to the sunset review factors and receive
public testimony. The COR recommended that the ICA be continued for two years
until July 1, 2026 (COR
Report). The ICA terminates on July 1, 2024, unless continued by the
Legislature (A.R.S
§ 41-3024.20).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Continues, retroactive to July 1, 2024, the ICA until January 1, 2027.
2. Requires the Joint Legislative Audit Committee to review any ADOSH State Plan proposal or proposed ICA State Plan adoption prior to the State Plan proposal or adoption being submitted to OSHA.
3. Requires state labor department determinations, penalties, and fines for labor violations to be considered, authorized and determined by a supermajority vote of ICA Commissioners present and voting.
4. Defines supermajority as an affirmative vote of two-thirds of ICA Commissioners present and voting.
5. Requires ICA Commissioners to consider whether a labor violation continues after the employer's course of conduct has ceased.
6. Prohibits the Director of the ICA from allowing an individual to accompany an inspector when conducting a workplace inspection for the ICA unless the individual is:
a) an employee of the employer being inspected;
b) a safety consultant, attorney or other agent of the employer or a person present with the consent of the employer;
c) an agent of a labor organization that has a collective bargaining relationship with the employer that represents employees who are members of the collective bargaining unit; or
d) otherwise required by law to be present, provided that the employer has the right to require:
i. that no more than one such individual be present;
ii. that the individual possess and use personal protective equipment and other safety equipment applicable to the place of employment to be inspected;
iii. that the individual be trained on any safety requirements applicable to the place of employment to be inspected;
iv. that the individual has workers' compensation insurance coverage that names the employer as an additional insured; and
v. that the individual execute a contract to prohibit the disclosure of any trade secrets or confidential, proprietary information of the employer that the person may acquire as a result of the inspection.
7. Repeals the ICA on January 1, 2028.
8. Declares the Legislature's intent to request the Joint Legislative Audit Committee to assign the sunset review of the ICA to the Office of the Auditor General to conduct a performance audit.
9. Contains a purpose statement.
10. Makes conforming changes.
11. Becomes effective on the general effective date, with a retroactive provision as noted.
House Action
WM 2/13/24 DP 10-0-0-0
3rd Read 2/29/24 28-30-1-0-1
3rd Read* 2/29/24 31-28-0-0-1
* On reconsideration
Prepared by Senate Research
March 14, 2024
MG/JC/cs