Assigned to FICO FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2209
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. FACT SHEET
H.B. 2209
Page 2
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
3
rd
Read 2/29/24 28-30-1-0-1
3
rd
Read* 2/29/24 31-28-0-0-1
* On reconsideration
Prepared by Senate Research
March 14, 2024
MG/JC/cs